HB 2383: Workforce Development; Workforce Pell Grant Program; Department of Labor and Industrial Relations

A BILL FOR AN ACT

RELATING TO THE WORKFORCE PELL GRANT PROGRAM.

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

     SECTION 1.  The legislature finds that the United States Congress has authorized a federal workforce Pell grant program under title IV of the Higher Education Act of 1965, as amended, to expand access to short-term workforce education and training aligned with in-demand and high-wage occupations.  The federal workforce Pell grant program assigns the states a formal role in identifying and approving eligible short-term workforce education programs and requires coordination among state workforce agencies, postsecondary institutions, and the United States Department of Education.

     The legislature further finds that effective participation in the federal workforce Pell grant program requires clear state definitions, a transparent authorization process, safeguards to protect students and taxpayers, and secure data-sharing mechanisms to meet federal performance and accountability requirements.  The legislature believes that Hawaii must modernize its workforce credential pathways and data systems to ensure that residents can access federal workforce Pell grant funding and that participating programs remain eligible under federal law.

     The legislature believes that ensuring equitable access to high‑quality workforce training and aligning credential pathways with federal standards is a matter of statewide concern.

     The purpose of this Act is to establish a comprehensive statewide framework for workforce Pell grant program implementation that:

     (1)  Creates a formal state authorization and approval process for workforce Pell-eligible programs;

     (2)  Defines key terms for the implementation of the workforce Pell grant program, including in-demand and high-wage occupations and stackable credentials;

     (3)  Requires stackable credential pathways within participating institutions;

     (4)  Enables secure, privacy-protected data sharing and outcomes reporting;

     (5)  Establishes student and consumer protections consistent with federal intent; and

     (6)  Positions the State to respond efficiently to federal regulations and timelines.

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

"Chapter

Workforce pell grant program implementation

     §   -1  Definitions.  As used in this chapter, unless the context clearly requires otherwise:

     "Authorized state entity" means the workforce development council, acting through the workforce Pell grant program approval committee established pursuant to section    -2.

     "Correspondence course" has the same meaning as in title 34 Code of Federal Regulations section 600.2.

     "High-wage occupation" means an occupation for which the median wage in the relevant geographic region of the State is at or above the statewide median wage for all occupations, as determined annually by the department of labor and industrial relations.

     "In-demand industry sector or occupation" means an industry sector or occupation identified as in demand by the workforce development council pursuant to the federal Workforce Innovation and Opportunity Act, as amended, and updated annually.

     "Participating institution" means a title IV-eligible postsecondary institution that offers a short-term workforce education program in the State or enrolls a resident of the State in such a program, regardless of whether the institution maintains a physical presence in the State.

     "Short-term workforce education program" means an education or training program offered by an accredited, title IV-eligible institution that:

     (1)  Is at least eight weeks in length but no more than fifteen weeks in length;

     (2)  Consists of no fewer than one hundred fifty and no more than five hundred ninety-nine clock hours, or the equivalent as permitted under federal law;

     (3)  Is not a correspondence course; and

     (4)  Otherwise meets applicable federal workforce Pell requirements.

     "Stackable credential" means a recognized postsecondary credential that:

     (1)  Is industry-validated and portable across more than one employer;

     (2)  Articulates for academic credit into a certificate, associate degree, or baccalaureate degree; and

     (3)  Is part of a documented career pathway approved by the authorized state entity.

     "Title IV" means the title IV of the Higher Education Act of 1965, as amended.

     "Workforce Pell grant program" means the federal workforce Pell grant program established under title IV of the Higher Education Act of 1965, as amended.

     §   -2  Workforce Pell grant program approval committee; establishment; composition; duties.  (a)  There is established within the workforce development council, constituted pursuant to section 202-1, the workforce Pell grant program approval committee.

     (b)  The committee shall consist of:

     (1)  The director of labor and industrial relations, or the director's designee;

     (2)  The president of the university of Hawaii, or the president's designee;

     (3)  The superintendent of education, or the superintendent's designee;

     (4)  The president of Hawaii Pacific University, or the president's designee;

     (5)  The president of Chaminade University, or the president's designee;

     (6)  Two employer representatives, to be appointed by the chair of the workforce development council; and

     (7)  The members of the senate and the house of representatives of the legislature who serve on the workforce development council, who shall serve in a nonvoting advisory capacity.

     (c)  The committee shall:

     (1)  Establish an application and review process for short-term workforce education programs seeking workforce Pell grant program eligibility;

     (2)  Review programs submitted by participating institutions and determine whether each program:

          (A)  Prepares students for an in-demand or high-wage occupation;

          (B)  Confers a stackable credential;

          (C)  Meets federal requirements relating to program length, accreditation, institutional eligibility, and operational history;

          (D)  Satisfies applicable educational prerequisites for professional licensure or certification in industries where such licensure or certification is required or customary; and

          (E)  Is supported by employer validation of required skills and competencies;

     (3)  Recommend approved programs to the governor for submission to the United States Department of Education;

     (4)  Require annual renewal or update of state authorization; and

     (5)  Conduct ongoing monitoring and review of authorized programs.

     §   -3  Authorization required; prohibited acts.  (a)  A participating institution shall not:

     (1)  Disburse workforce Pell grant program funds for a short-term workforce education program to a student residing in the State; or

     (2)  Advertise, market, or represent that workforce Pell grant program funding is available for the short-term workforce education program,

unless the program has received authorization from the authorized state entity and all required federal approvals.

     (b)  A violation of this section shall constitute grounds for withdrawal of state authorization under section    -5.

     §   -4  Conditions of authorization; student protections.  The authorized state entity shall not authorize a short-term workforce education program unless the entity determines that:

     (1)  Instruction is not provided by an unaccredited third-party provider;

     (2)  The participating institution does not offer or promote private education loans or income-share agreements for the program, except for institutional no-interest payment plans;

     (3)  Tuition and mandatory fees charged to a student are reasonable and proportionate to the program length, expected earnings outcomes, and market comparables, and are fully disclosed to students, except where excess costs are paid by an employer, labor-management partnership, or other third party;

     (4)  The short-term workforce education program has been offered for at least one year prior to application for authorization;

     (5)  The institution publicly posts program information, including the credential awarded, occupations prepared for, competencies taught, and any third-party endorsements;

     (6)  The institution provides written disclosures to prospective students and obtains documented acknowledgement of receipt;

     (7)  Students have access to academic transcripts for completed coursework; provided that nothing in this paragraph shall prohibit an institution from charging a reasonable fee for the processing of official transcript copies; and

     (8)  The short-term workforce education program is credit-bearing, or the institution demonstrates how the program will be transcribed and accepted for credit toward the next credential in the pathway.

     §   -5  Withdrawal of authorization.  The authorized state entity shall withdraw authorization if a participating institution:

     (1)  Fails to submit required annual updates or renewals;

     (2)  No longer satisfies any condition of authorization under this chapter; or

     (3)  Is found by a court, administrative tribunal, or the attorney general to have engaged in an unfair or deceptive act or practice related to the program.

     §   -6  Participating institutions; stackable credential pathways; establishment.  (a)  Each participating institution shall develop and maintain system-wide stackable credential pathways linking short-term workforce credentials to higher-level certificates and degrees.

     (b)  Each participating institution shall annually publish pathway maps by industry sector and report updates to the workforce development council.

     §   -7  Data sharing; outcomes reporting; confidentiality.  (a)  The department of labor and industrial relations shall, pursuant to written data-sharing agreements and applicable privacy protections, provide wage record data to participating institutions for workforce Pell grant program compliance and evaluation.

     (b)  Each participating institution shall collect and report program-level data on enrollment, completion, job placement, and earnings as required under applicable federal law.

     (c)  The workforce development council shall publish an annual workforce Pell grant program outcomes report; provided that outcomes may be aggregated where necessary to protect student privacy or comply with federal disclosure limitations.

     (d)  Information produced pursuant to this section and designated as confidential shall be protected from public disclosure to the extent authorized by chapter 92F.

     §   -8  Early warning system; corrective action.  (a)  Each participating institution shall monitor program performance against federal workforce Pell grant program benchmarks, including completion, job placement, and earnings thresholds, as defined under applicable federal law and regulations.

     (b)  Programs at risk of noncompliance shall submit corrective action plans within sixty days.

     §   -9  Program limitations; requirements.  Nothing in this chapter shall be construed to impose or increase occupational licensing or certification requirements beyond those otherwise required by law.

     §   -10  Rulemaking authority.  The workforce development council may adopt rules pursuant to chapter 91 as necessary to implement this chapter."

     SECTION 3.  This Act shall take effect on July 1, 3000.

Report Title:

Workforce Development; Workforce Pell Grant Program; Department of Labor and Industrial Relations

Description:

Establishes a statewide framework for the implementation of the federal Workforce Pell Grant Program to provide financial aid for certain short-term workforce education and training programs.  Establishes a Workforce Pell Grant Program Approval Committee within the Workforce Development Council.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

relating to the workforce pell grant program.

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

     SECTION 1.  The legislature finds that the United States Congress has authorized a federal workforce Pell grant program under title IV of the Higher Education Act of 1965, as amended, to expand access to short-term workforce education and training aligned with in-demand and high-wage occupations.  The federal workforce Pell grant program assigns the states a formal role in identifying and approving eligible short-term workforce education programs and requires coordination among state workforce agencies, postsecondary institutions, and the United States Department of Education.

     The legislature further finds that effective participation in the federal workforce Pell grant program requires clear state definitions, a transparent authorization process, safeguards to protect students and taxpayers, and secure data-sharing mechanisms to meet federal performance and accountability requirements.  The legislature believes that Hawaii must modernize its workforce credential pathways and data systems to ensure that residents can access federal workforce Pell grant funding and that participating programs remain eligible under federal law.

     The purpose of this Act is to establish a comprehensive statewide framework for workforce Pell grant program implementation that:

     (1)  Creates a formal state authorization and approval process for workforce Pell-eligible programs;

     (2)  Defines key terms for the implementation of the workforce Pell grant program, including in-demand and high-wage occupations and stackable credentials;

     (3)  Requires stackable credential pathways within the university of Hawaii system;

     (4)  Enables secure, privacy-protected data sharing and outcomes reporting;

     (5)  Establishes student and consumer protections consistent with federal intent; and

     (6)  Positions the State to respond efficiently to federal regulations and timelines.

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

"Chapter

Workforce pell grant program implementation

     §   -1  Definitions.  As used in this chapter, unless the context clearly requires otherwise:

     "Authorized state entity" means the workforce development council, acting through the workforce Pell grant program approval committee established pursuant to section §   -2.

     "Correspondence course" shall have the same meaning as in title 34 Code of Federal Regulations section 600.2.

     "High-wage occupation" means an occupation for which the median wage in the relevant geographic region of the State is at or above the statewide median wage for all occupations, as determined annually by the department of labor and industrial relations.

     "In-demand industry sector or occupation" means an industry sector or occupation identified as in demand by the workforce development council pursuant to the federal Workforce Innovation and Opportunity Act, as amended, and updated at least annually.

     "Participating institution" means a title IV-eligible postsecondary institution that offers a short-term workforce education program in the State or enrolls a resident of the State in such a program, regardless of whether the institution maintains a physical presence in the State.

     "Short-term workforce education program" means an education or training program offered by an accredited, title IV-eligible institution that:

     (1)  Is at least eight weeks in length but no more than fifteen weeks in length;

     (2)  Consists of not fewer than one hundred fifty and not more than five hundred ninety-nine clock hours, or the equivalent as permitted under federal law;

     (3)  Is not a correspondence course; and

     (4)  Otherwise meets applicable federal workforce Pell requirements.

     "Stackable credential" means a recognized postsecondary credential that:

     (1)  Is industry-validated and portable across more than one employer;

     (2)  Articulates for academic credit into a certificate, associate degree, or baccalaureate degree within the university of Hawaii system; and

     (3)  Is part of a documented career pathway approved by the authorized state entity.

     "Title IV" means the title IV of the Higher Education Act of 1965, as amended.

     "Workforce Pell grant program" means the federal workforce Pell grant program established under title IV of the Higher Education Act of 1965, as amended.

     §   -2  Workforce Pell grant program approval committee; establishment; composition; duties.  (a)  There is established within the workforce development council, constituted pursuant to section 202-1, the workforce Pell grant program approval committee.

     (b)  The committee shall consist of:

     (1)  The director of labor and industrial relations, or the director's designee;

     (2)  The president of the university of Hawaii, or the president's designee;

     (3)  The superintendent of education, or the superintendent's designee;

     (4)  Two employer representatives, to be appointed by the chair of the workforce development council; and

     (5)  The members of the senate and the house of representatives of the legislature who serve on the workforce development council, who shall serve in a nonvoting advisory capacity.

     (c)  The committee shall:

     (1)  Establish an application and review process for short-term workforce education programs seeking workforce Pell grant program eligibility;

     (2)  Review programs submitted by participating institutions and determine whether each program:

          (A)  Prepares students for an in-demand or high-wage occupation;

          (B)  Confers a stackable credential;

          (C)  Meets federal requirements relating to program length, accreditation, institutional eligibility, and operational history;

          (D)  Satisfies applicable educational prerequisites for professional licensure or certification in industries where such licensure or certification is required or customary; and

          (E)  Is supported by employer validation of required skills and competencies;

     (3)  Recommend approved programs to the governor for submission to the United States Department of Education;

     (4)  Require annual renewal or update of state authorization; and

     (5)  Conduct ongoing monitoring and review of authorized programs.

     §   -3  Authorization required; prohibited acts.  (a)  A participating institution shall not:

     (1)  Disburse workforce Pell grant program funds for a short-term workforce education program to a student residing in the State; nor

     (2)  Advertise, market, or represent that workforce Pell grant program funding is available for the short-term workforce education program, unless the program has received authorization from the authorized state entity and all required federal approvals.

     (b)  A violation of this section shall constitute grounds for withdrawal of state authorization under section §   -5.

     §   -4  Conditions of authorization; student protections.  The authorized state entity shall not authorize a short-term workforce education program unless the entity determines that:

     (1)  Instruction is not provided by an unaccredited third-party provider;

     (2)  The participating institution does not offer or promote private education loans or income-share agreements for the program, except for institutional no-interest payment plans;

     (3)  Tuition and mandatory fees charged to a student are reasonable and proportionate to the program length, expected earnings outcomes, and market comparables, and are fully disclosed to students, except where excess costs are paid by an employer, labor-management partnership, or other third party;

     (4)  The short-term workforce education program has been offered for at least one year prior to application for authorization;

     (5)  The institution publicly posts program information, including the credential awarded, occupations prepared for, competencies taught, and any third-party endorsements;

     (6)  The institution provides written disclosures to prospective students and obtains documented acknowledgement of receipt;

     (7)  Students have access to academic transcripts for completed coursework; provided that nothing in this paragraph shall prohibit an institution from charging a reasonable fee for the processing of official transcript copies; and

     (8)  The short-term workforce education program is credit-bearing, or the institution demonstrates how the program will be transcribed and accepted for credit toward the next credential in the pathway.

     §   -5  Withdrawal of authorization.  The authorized state entity shall withdraw authorization if a participating institution:

     (1)  Fails to submit required annual updates or renewals;

     (2)  No longer satisfies any condition of authorization under this chapter; or

     (3)  Is found by a court, administrative tribunal, or the attorney general to have engaged in an unfair or deceptive act or practice related to the program.

     §   -6  University of Hawaii; stackable credential pathways; establishment.  (a)  The university of Hawaii shall develop and maintain system-wide stackable credential pathways linking short-term workforce credentials to higher-level certificates and degrees.

     (b)  The university of Hawaii shall annually publish pathway maps by industry sector and report updates to the workforce development council.

     §   -7  Data sharing; outcomes reporting; confidentiality.  (a)  The department of labor and industrial relations shall, pursuant to written data-sharing agreements and applicable privacy protections, provide wage record data to the university of Hawaii for workforce Pell grant program compliance and evaluation.

     (b)  The university of Hawaii shall collect and report program-level data on enrollment, completion, job placement, and earnings as required under applicable federal law.

     (c)  The workforce development council shall publish an annual workforce Pell grant program outcomes report; provided that outcomes may be aggregated where necessary to protect student privacy or comply with federal disclosure limitations.

     (d)  Information produced pursuant to this section and designated as confidential shall be protected from public disclosure consistent with chapter 92F.

     §   -8  Early warning system; corrective action.  (a)  The university of Hawaii shall monitor program performance against federal workforce Pell grant program benchmarks, including completion, job placement, and earnings thresholds, as defined under applicable federal law and regulations.

     (b)  Programs at risk of noncompliance shall submit corrective action plans within sixty days.

     §   -9  Program limitations; requirements.  Nothing in this chapter shall be construed to impose or increase occupational licensing or certification requirements beyond those otherwise required by law.

     §   -10  Rulemaking authority.  The workforce development council may adopt rules pursuant to chapter 91 as necessary to implement this chapter."

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

Workforce Development; Workforce Pell Grant Program; University of Hawaii; Department of Labor and Industrial Relations

Description:

Establishes a statewide framework for the implementation of the federal Workforce Pell Grant Program to provide financial aid for certain short-term workforce education and training programs.  Establishes a Workforce Pell Grant Program Approval Committee within the Workforce Development Council.

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

STAND. COM. REP. NO.  405-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 2383

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Higher Education, to which was referred H.B. No. 2383, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE WORKFORCE PELL GRANT PROGRAM,"

begs leave to report as follows:

     The purpose of this measure is to establish:

     (1)  A statewide framework for the implementation of the federal Workforce Pell Grant Program to provide financial aid for certain short-term workforce education and training programs; and

     (2)  A Workforce Pell Grant Program Approval Committee within the Workforce Development Council.

     Your Committee received testimony in support of this measure from the University of Hawaiʻi System and Maui Chamber of Commerce.  Your Committee received comments on this measure from the Department of Labor and Industrial Relations; Office of Information Practices; and Workforce Development Council.

     Your Committee finds that the United States Congress has authorized a federal Workforce Pell Grant Program to expand access to short-term workforce education and training; however federal guidance and final program parameters are still emerging.  This measure allows the State to have a statutory framework in place once federal rules are finalized.

     As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2383, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Higher Education,

STAND. COM. REP. NO.  182-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 2383

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Labor, to which was referred H.B. No. 2383 entitled:

"A BILL FOR AN ACT RELATING TO THE WORKFORCE PELL GRANT PROGRAM,"

begs leave to report as follows:

     The purpose of this measure is to establish:

     (1)  A statewide framework for the implementation of the federal Workforce Pell Grant Program to provide financial aid for certain short‑term workforce education and training programs; and

     (2)  The Workforce Pell Grant Program Approval Committee within the Workforce Development Council.

     Your Committee received testimony in support of this measure from the University of Hawaiʻi System; Workforce Development Council; and Chamber of Commerce Hawaii.  Your Committee received comments on this measure from the Department of the Attorney General; Department of Labor and Industrial Relations; and Office of Information Practices.

     Your Committee finds that Hawaii lacks a unified system to evaluate, authorize, and monitor short‑term workforce education programs that may qualify for federal Workforce Pell Grant funding.  Without clear pathways and data‑sharing procedures, the State risks losing access to federal funds and may be unable to ensure accountability for participating institutions.  This measure creates a comprehensive statewide authorization, oversight, and data‑integration framework that enables Hawaii residents to access federal Workforce Pell Grants while ensuring program quality.

     Your Committee has amended this measure by:

     (1)  Specifying that this measure is a matter of statewide concern;

     (2)  Clarifying the definition of "in-demand sector or occupation";

     (3)  Expanding the membership of the Workforce Pell Grant Program Approval Committee;

     (4)  Clarifying that the responsibility for developing stackable credential pathways and related data‑sharing, reporting and compliance requirements extends to all eligible postsecondary institutions rather than solely to the University of Hawaii System;

     (5)  Clarifying that information produced under the Workforce Pell Grant Program that is designated as confidential is protected from public disclosure to the extent authorized by the Uniform Information Practices Act;

     (6)  Changing the effective date to July 1, 3000, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2383, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2383, H.D. 1, and be referred to your Committee on Higher Education.

Respectfully submitted on behalf of the members of the Committee on Labor,