STAND. COM. REP. NO. 2469

Honolulu, Hawaii

, 2006

RE: S.B. No. 3022

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Labor and Intergovernmental Affairs, to which was referred S.B. No. 3022 entitled:

"A BILL FOR AN ACT RELATING TO EMPLOYMENT SECURITY LAW,"

beg leave to report as follows:

The purpose of this measure is to repeal portions of Act 249, Session Laws of Hawaii, 2005, to ensure funding to the county workforce investment boards.

Specifically, this measure:

(1) Removes the requirement that funds appropriated to the county of Hawaii workforce investment board be expended for the eradication of coqui frogs and other invasive species;

(2) Repeals the appropriation of funds for fiscal year 2005-2006;

(3) Amends the appropriation amounts for fiscal year 2006-2007 by providing:

(A) $9,590,000 to the Honolulu Workforce Investment Board;

(B) $2,505,550 to the Maui Workforce Investment Board;

(C) $2,000,000 to the Kauai Workforce Investment Board;

(D) $3,300,000 to the Hawaii Workforce Investment Board; and

(E) $2,604,450 to the Department of Labor and Industrial Relations (DLIR); and

(4) Repeals section 4 of Act 249, SLH 2005, which specified a timeline for the release of funds by DLIR.

Testimony in support of this measure was submitted by the four county Workforce Investment Boards. Testimony in opposition to this measure was submitted by the DLIR, the Maui Outdoor Circle, and one individual. The Department of the Attorney General offered comments on the measure.

Your Committees find that pursuant to Act 249, SLH 2005, the law was amended to allow for the utilization of 2002 Reed Act funds. Additionally, Act 249 provided for the appropriation of funds from the unemployment trust fund to improve the services of the unemployment insurance and workforce development divisions of DLIR. Within the appropriations made to the several county workforce investment boards, the moneys appropriated to the County of Hawaii were directed to be expended on the eradication of coqui frogs and other invasive species. No funds appropriated under the Act have been expended by the specified entities.

The Attorney General has opined that Act 249 did not become law; however, it is the Legislature's position that the Governor's veto of Senate Bill 813 was defective and that Act 249 is good law. Therefore, your Committees believe that, in order to avoid further delays in the expenditure of the funds, the portions of Act 249 that appropriate funds for the eradication of coqui frogs and other invasive species and establish restrictions on the release of funds by DLIR should be repealed. These changes to the law should facilitate the quick release of funds to the appropriate entities so that they may begin to make necessary improvements and changes to workforce developing services.

As affirmed by the records of votes of the members of your Committees on Labor and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3022 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Labor and Intergovernmental Affairs,

____________________________

DAVID Y. IGE, Chair

____________________________

BRIAN KANNO, Chair