Bill Text: HI HB2475 | 2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Maritime Industry Grant Program; Workforce Development; Appropriation ($)

Spectrum: Partisan Bill (Democrat 13-0)

Status: (Engrossed - Dead) 2016-03-24 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [HB2475 Detail]

Download: Hawaii-2016-HB2475-Introduced.html

HOUSE OF REPRESENTATIVES

H.B. NO.

2475

TWENTY-EIGHTH LEGISLATURE, 2016

 

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.  Ship repair is a critical industry in our maritime dependent state.  Ship repair capability ensures the safe and timely operation of ships and barges supplying the Hawaiian Islands.  Without this capability, many ships are required to travel to the mainland for dry docking and repair which in turn reduces revenues for the State.  The ship repair industry provides critical industrial services, including repair of engines and generators, welding and metal fabrication, ventilation and air conditioning, and critical servicing of oil product transfer buoys and well-paying industrial and technical job opportunities for the State.   However, ship repair companies in Hawaii have a significant cost competitive disadvantage with mainland and foreign ship repair entities due to higher labor and material shipping costs.  Sustaining and supporting a strong maritime repair industry is critical to the quality of life and prosperity of the State of Hawaii.

     The Hawaii shipbuilding and repair industry is comprised of establishments that are primarily engaged in operating small shipyards, which are fixed facilities with dry docks and fabrication equipment.  Shipyard activities include ship construction, repair, conversion and alteration, the production of prefabricated ships, boats, barge sections, and other specialized services.  Hawaii's shipbuilding and repair industry utilizes local manufacturing and other trades outside of the shipyard, providing vital jobs that are economically beneficial to Hawaii.

     The purpose of this Act is to enhance maritime productivity and workforce development by establishing a maritime industry grant program.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

Maritime Industry grant program

     §   -1  Definitions.  As used in this chapter:

     "Department" means the department of labor and industrial relations.

     "Qualified shipyard" means a shipyard facility located in Honolulu Harbor comprised of not more than one thousand two hundred employees.

     §   -2  Maritime industry grant program established.  There is established within the department a maritime industry grant program to be developed and administered by the department and under which the department shall award grants to qualified shipyards.  The department shall accept applications for grants on forms prescribed and prepared by the department.

     §   -3  Eligibility for grants.  (a)  The department shall award grants for the maritime industry grant program based on criteria that shall be developed by the department; provided that no grant shall be awarded to a qualified shipyard that has been in operation for less than five years.

     (b)  Projects eligible to receive grants from the maritime industry grant program shall include:

     (1)  Capital improvement projects to foster efficiency, competitive operations, and quality ship construction, repair, and ship reconfiguration by qualified shipyards; and

     (2)  Workforce development and training projects to improve employee skills in the maritime industry.

     (c)  Grants may also be awarded by the department for the purchase of machinery and equipment; provided that the machinery and equipment is used in ship repair, ship construction, or ship reconfiguration.

     (d)  The grant shall not exceed $         in any year and only one grant shall be awarded to a qualified shipyard in any given year.

     (e)  In reviewing grant applications submitted pursuant to this chapter, the department shall analyze each application to determine the economic viability of the grant request and the benefits that will be realized by the State should the grant be awarded.  If the department determines through its analysis that the grant request is not economically viable or will not be beneficial to the State, the grant shall not be awarded.

     §   -4  Reports.  The department shall submit a report to the legislature no later than twenty days prior to the convening of each regular session held in an even-numbered year.  The report shall include:

     (1)  The total number of grant applications received;

     (2)  The total number of grants awarded;

     (3)  The projected economic and workforce development benefits expected from the awarding of the grant;

     (4)  The actual economic and workforce development benefits realized from awarding of each grant;

     (5)  The total amount of money awarded for each grant; and

     (6)  Any other information about the maritime industry grant program the department deems necessary.

     §   -5  Rules.  The department shall adopt rules, pursuant to chapter 91, to implement this chapter.

     §   -6  Exemption from chapter 42F.  The provisions of chapter 42F shall not apply to the grants made pursuant to this chapter, but all grants shall be made only in accordance with standards and conditions specified in section    -3."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2016-2017 for the awarding of grants under the maritime industry grant program established pursuant to this Act.

     The sum appropriated shall be expended by the department of labor and industrial for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2016.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Maritime Industry Grant Program; Workforce Development; Appropriation

 

Description:

Establishes a maritime industry grant program within the department of labor and industrial relations.  Establishes criteria for the awarding of grants.  Appropriates funds.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

 

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