STAND. COM. REP. NO. 3144

Honolulu, Hawaii

RE: H.B. No. 2411

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Economic Development and Tourism, to which was referred H.B. No. 2411, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish and appropriate funds into and out of the Hawaii Employer-Led Sector Partnerships Special Fund; and

(2) Require the Department of Business, Economic Development, and Tourism to coordinate its sector partnership activities with the Workforce Development Council.

Your Committee received testimony in support of this measure from the University of Hawaiʻi System, Chamber of Commerce Hawaii, Kupu, Retail Merchants of Hawaii, Hawaiian Electric, Kohala Coast Resort Association, Simonpietri Enterprises LLC, IBEW Local 1260, Maui Chamber of Commerce, Hawaiʻi Island Chamber of Commerce, Makai Ocean Engineering, and one individual.

Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism.

Your Committee finds that since introduced by the Chamber of Commerce of Hawaii in 2017, the employer-driven sector partnership model has grown into seven dynamic workforce development collaboratives that align education and training with industry needs. Despite its success, the future of the sector partnerships program is now threatened due to the termination of its federal grant funding. This measure institutionalizes the State's existing sector partnerships and provides for expansion into other economic sectors to support the continued implementation of this national best practice in workforce development.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 3050, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2411, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2411, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,

________________________________

LYNN DECOITE, Chair