Report Title:

Rapid response; Custom training

 

Description:

Establishes a rapid response, custom training program and revolving fund in DBEDT to facilitate rapid, custom training for emerging growth industry and high priority business investments.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

3076

TWENTY-FOURTH LEGISLATURE, 2008

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO WORKFORCE DEVELOPMENT.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that the limited supply of workers in Hawaii with the technical skills needed by existing and emerging growth enterprise is a deterrent to the start up and expansion of such operations.

     In addition to facing skill shortages, Hawaii firms are being buffeted by the rapid pace of changing technology, which is requiring frequent skills upgrade training for incumbent workers in order to keep Hawaii's growth industries expanding and competitive.

     Skills shortages and the need for upgrading of skills are particularly critical for such sectors as high technology, biotechnology, life science, information technology and key military installations like the Pearl Harbor naval shipyard.  The type of training needs that these sectors face tend to be among specialized, technical skills training that can be developed and delivered within a few weeks or months at most, and held at times and places that are most convenient to the firms and workers.  Examples of such skills range from certification training in the emerging, next-generation internet protocol (IPv6), to titanium welding techniques.

     Unfortunately, Hawaii's major technical training institutions, such as the community college system, are not designed to develop technical training programs in a short period of time.  In the case of the community college system, a fixed, two-year budget cycle provides little flexibility for developing and staffing new or custom training programs in a short time frame.  New training programs usually must await a new budget cycle, which could be two years away.

     This inability to respond in a timely manner to emerging training needs may result in the loss of many potential new or expanded businesses in technical areas essential to the State's economic development.

     Many places around the country have developed special programs with flexible funding for rapid, customized training, that address important industry and company needs as they emerge.  Among the more notable programs are the Georgia 'quick start' program and Alabama industrial development training (AIDT) program.  Such programs are effective at funding the up-front costs of assembling curriculum, instructors and venues and delivering fast, efficient, short-term training programs that keep growing firms in the state and attract new firms.

     To its credit, the University of Hawaii community college system has taken steps to develop an internal capacity to respond to rapid response custom training needs and received a modest legislative appropriation in 2007 to launch the effort.  The community college system has found a ready demand for this capacity and is now engaged in assisting the Pearl Harbor naval shipyard and other important clients to meet pressing training needs.

     The Hawaii science and technology council has also identified opportunities and needs for training in the high technology sector that must be met to help keep these companies in Hawaii.  The community college system may be able to address some of these needs as well as the needs it is already addressing.  However, it would be in Hawaii's interest to utilize the broad spectrum of training resources in both the public and private sector to provide effective and timely rapid response, custom training for emerging growth industry.

     To ensure that the need for fast custom training is met there is a need for an additional source of leadership and resources to complement the community college outreach effort and focus on assisting emerging growth industry firms. 

     SECTION 2.  This Act establishes a rapid response, technical training development program and revolving fund within the department of business, economic development, and tourism.  The goal of the program shall be to work with employers, business and industry organizations, economic development agencies, workforce development agencies, and training providers to develop rapid response, custom training programs for firms needing trained workers in critical technical skill sets that cannot be adequately addressed by existing training programs.

     SECTION 3.  Chapter 201, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part ___.  RAPID RESPONSE, CUSTOM TRAINING

     §201-____ Rapid response, custom training program.  (a)  There is established the rapid response, custom training program in the department of business, economic development, and tourism.  The purpose of the program shall be to facilitate the development of a rapid response training capacity in Hawaii that will be capable of developing and delivering, for businesses and industries, short-term customized training programs, that are not offered through existing standard curricula at established institutions of education and training.

(b)  The program shall achieve its purpose by:

(1)  Working with the workforce development community, education and training community, county economic development boards, business and industry associations, and other appropriate entities to identify and offer rapid response custom training to the business community;

(2)  Contracting with firms, and other entities requesting customized training to provide for the development and delivery of such training; and collecting fees from contracted firms upon the delivery of such training;

(3)  Contracting with appropriate training providers for the development of customized training programs.

(c)  The department may contract for the development of custom training programs with the University of Hawaii, including the community college system, and other educational and training resources in the public and private sectors throughout the State, as may be appropriate to accomplish the purposes of the program;

(d)  The program shall place a priority on training for jobs paying more than the Hawaii median wage in new or expanding businesses, and for which the rapid development and delivery of customized training is important to the decision of the firms or industry to make or continue business investments in Hawaii.  The program shall also place priority on business expansions that propose to train or retrain workers unemployed or facing unemployment due to mass-layoff events;

(e)  The program shall develop measures of program performance to assess the impact of the training provided under the rapid response program on the supply of high skilled workers in the economy and the impact on the development of sustained, new business activity.

     SECTION 4.  Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§201-___.  Rapid response, custom training revolving fund.  (a) There is established in the state treasury the rapid response, custom training revolving fund into which shall be deposited:

     (1)  Appropriations by the legislature;

     (2)  Training fees paid by firms or other agencies and organizations related to training services;

     (3)  Donations and contributions made by private individuals or organizations for deposit into the fund; and,

     (4)  Grants or transfers of funds provided by governmental agencies or any other source, including the federal government.

(b)  Moneys in the rapid response, custom training revolving fund may be used by the department:

     (1)  To contract with appropriate training providers for the development of rapid response custom training programs, and;

     (2)  For administrative expenses including, but not limited to, supplies, equipment, and services necessary for the appropriate administration of the rapid response training program.″

     SECTION 5.  Sums deposited in the rapid response, custom training revolving fund may be expended by the department of business, economic development, and tourism for the purposes of the fund and purposes of the rapid response, custom training program.

     SECTION. 6  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION. 7  This Act shall take effect on July 1, 2008.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST