§383-128  Employment and training fund
established.  (a)  Effective January 1, 1992, there is established in the
state treasury, apart from all other funds in this State, a special fund to be
known as the employment and training fund.  All assessments collected pursuant
to section 383-129 and all other moneys received by the fund from any other
source shall be deposited into the employment and training fund.



(b)  The moneys in the employment and training
fund may be used for funding:



(1)  The operation of the state employment service for
which no federal funds have been allocated;



(2)  Business-specific training programs to create a
more diversified job base and to carry out the purposes of the new industry
training program pursuant to section 394-8;



(3)  Industry or employer-specific training programs
where there are critical skill shortages in high growth occupational or
industry areas;



(4)  Training and retraining programs to assist
workers who have become recently unemployed or likely to be unemployed;



(5)  Programs to assist residents who do not otherwise
qualify for federal or state job training programs to overcome employment
barriers; and



(6)  Training programs to provide job-specific skills
for individuals in need of assistance to improve career employment prospects.



(c)  The director shall require employers who
use or who are assisted by any of these programs to contribute fifty per cent
of the cost of the assistance in cash or in-kind contributions.



(d)  The department may contract for employment,
education, and training services from public and private agencies and nonprofit
corporations.  Contracts, pursuant to subsection (b), shall be exempt from
chapter 103F so funds for these services may be expended in a timely manner to
effectuate the purposes of this section.  All other disbursements shall be in
accordance with chapters 103D and 103F.



(e)  The department shall ensure the proper
administration of the employment and training fund program by:



(1)  Standardizing contractual language and requirements
for all grantees and vendors;



(2)  Expediting the program's macro grant application
process by either eliminating the county advisory committees' review or by
formalizing, defining, and including specific time frames related to these
committees;



(3)  Providing evidence that grant applications are
treated in accordance with fund policies by documenting the reasons for
acceptance and denial of each proposed grant;



(4)  Improving the program's monitoring of funds
disbursed by, at a minimum:



(A)  Establishing and implementing an organized
filing system;



(B)  Requiring documentation of all contact
made with grant applicants and recipients; and



(C)  Ensuring that staff in all branch offices
are familiar with the various reports and submittals required of the different
fund recipients;



(5)  Developing and disseminating the state
participant evaluation form to the program's vendors;



(6)  Developing and implementing strategies for
evaluating the program's overall success that include but are limited to:



(A)  Assessing whether the program is improving
the long-term employability of Hawaii's people;



(B)  Measuring program outcomes related to work
unit and company performance; and



(C)  Collecting and comparing wage data from
workers who have utilized the fund versus those who have not;



(7)  Increasing awareness of the fund and its programs
by strengthening publicity;



(8)  Establishing consistent attendance-reporting
requirements for both macro grant projects and micro vendors and comparing
attendance rates for projects and vendors who charge additional fees to
participants versus those who do not; and



(9)  Reporting as encumbrances only those obligations
for which the fund has entered into bona fide contracts.



(f)  For purposes of grants and subsidies
awarded under subsection (d), any organization requesting a grant or subsidy
shall:



(1)  Be licensed and accredited, as applicable, under
the laws of the State;



(2)  Have at least one year's experience with the
project or in the program area for which the request or proposal is being made;
except that the director may grant an exception where the project or program
area deals with new industry training; and



(3)  Be, employ, or have under contract persons who
are qualified to engage in the program or activity to be funded by the State.



(g)  Recipients of grants or subsidies shall be
subject to the following conditions:



(1)  Any organization requesting a grant or subsidy
shall submit its request together with all the information required by the
director on an application form provided by the department;



(2)  The recipient of a grant or subsidy shall not use
public funds for purposes of entertainment or perquisites;



(3)  The recipient of a grant or subsidy shall comply
with applicable federal, state, and county laws;



(4)  The recipient of a grant or subsidy shall comply
with any other requirements the director may prescribe;



(5)  The recipient of a grant or subsidy shall allow
the director, the legislative bodies, and the legislative auditor full access
to records, reports, files, and other related documents so that the program,
management, and fiscal practices of the grant recipient may be monitored and
evaluated to assure the proper and effective expenditure of public funds;



(6)  Every grant or subsidy shall be monitored
according to rules established by the director to ensure compliance with this
section; and



(7)  Any recipient of a grant or subsidy under this
section who withholds or omits any material fact or deliberately misrepresents
facts to the director or who violates the terms of the recipient's contract
shall be in violation of this section and, in addition to any other penalties
provided by law, shall be prohibited from applying for a grant or subsidy under
this section for a period of five years from the date of termination.



(h)  The director shall submit a report to the
legislature on the status of the employment and training fund, including
expenditures and program results, at least twenty days prior to the convening
of each regular legislative session.



(i)  The director of finance shall act as the
treasurer and custodian of the employment and training fund, invest those
moneys in accordance with applicable laws and rules, and disburse the moneys in
the employment and training fund in accordance with directions by the director
of labor and industrial relations; provided that if administrative encumbrances
are executed, then any portions thereof that are unexpended at the close of
each fiscal year shall be lapsed into the employment and training fund.  All interest
earned from investment of moneys in the employment and training fund shall be
deposited in the fund.  The director of finance shall be liable on the
director's official bond for the faithful performance of all duties in
connection with the employment and training fund.  All sums recovered on the
surety bond for losses sustained by the employment and training fund shall be
deposited in the fund.



(j)  Administrative costs for the collection of
employment and training fund contributions and for costs related to the
establishment and maintenance of the employment and training fund shall be
borne by the fund beginning with fiscal year 1992-1993 and thereafter.



(k)  The director may establish positions and
hire necessary personnel to establish and administer the employment and
training fund in accordance with chapter 76. [L 1991, c 68, pt of §2; am
L 1996, c 223, §3; am L 1997, c 190, §6; am L 1999, c 230, §1; am L 2000, c
253, §150; am L 2002, c 248, §1; am L 2004, c 216, §41; am L 2006, c 300, §13]



 



Note



 



  Transfer of certain interest earnings to general fund until
June 30, 2015.  L 2009, c 79, §30(a)(35).