STAND. COM. REP. NO. 1559

Honolulu, Hawaii

RE: S.C.R. No. 126

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Labor and Technology, to which was referred S.C.R. No. 126 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM AND THE DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS TO CO-CONVENE A WORKING GROUP TO DEVELOP A COMPREHENSIVE PLAN FOR WORKFORCE DEVELOPMENT WITH A FOCUS ON THE PRIORITY ECONOMIC CLUSTERS ESTABLISHED BY THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM, TO MEET THE NEEDS OF THE STATE'S NEW ECONOMY,"

beg leave to report as follows:

The purpose and intent of this measure is to request the Department of Business, Economic Development, and Tourism and the Department of Labor and Industrial Relations to co-convene a working group to develop a comprehensive plan for workforce development with a focus on the priority economic clusters established by the Department of Business, Economic Development, and Tourism to meet the needs of the State's new economy.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Department of Labor and Industrial Relations; University of Hawai‘i System; Hawai‘i Gas; and Hawaiian Telcom.

Your Committees find that the economic conditions resulting from the coronavirus disease 2019 (COVID-19) pandemic have given rise to workforce trends such as "the Great Resignation", "the Great Reshuffle", and "the Great Re-Think", and have motivated businesses to automate and find alternative solutions for driving business productivity. Your Committees further find that the Internet, the acceleration and proliferation of automation, and the digitization of business practices, along with the advancements in sensor technology, edge analytics, machine learning, and artificial intelligence, have globally given rise to the fourth Industrial Revolution, coined "Industry 4.0". Your Committees believe that the Department of Business, Economic Development, and Tourism and Department of Labor and Industrial Relations are well-equipped to support workforce development in the Industry 4.0-era due to their economic development and diversification plans and programs supporting the State's students and workers seeking employment, training, reemployment, and improved employment opportunities. This measure will help the State's economy adjust and respond to the new and uncertain economic conditions caused by the COVID-19 pandemic.

Your Committees have amended this measure by:

(1) Amending the membership composition of the working group by:

(A) Replacing the President of the University of Hawaii with a representative from the Shidler College of Business at the University of Hawaii at Manoa, to be appointed by the President of the University of Hawaii; and

(B) Adding a member from each county's Office of Economic Development, or equivalent office or department, to be appointed by each county's respective mayor; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Labor and Technology that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 126, as amended herein, and recommend its adoption in the form attached hereto as S.C.R. No. 126, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Labor and Technology,

________________________________ SHARON MORIWAKI, Chair

________________________________ LYNN DECOITE, Chair