SB 327: Department of Labor and Industrial Relations; Private Sector; Internships; Workforce Development; Workers' Compensation Coverage; Appropriation

A BILL FOR AN ACT

RELATING TO INTERNSHIPS.

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

     SECTION 1.  The legislature finds that internship and mentorship programs give students the chance to build communication skills, relationships, confidence, and gain valuable work experience that will build a stronger workforce.  The legislature further finds that expanding state-funded internships to include private-sector positions will benefit the State by promoting economic growth, fostering public-private collaborations, and supporting job creation.  State-funded private-sector internships will also create additional opportunities for interns to gain practical work experience and prepare for their future careers.

     The legislature recognizes that article VII, section 4, of the Hawaii State Constitution requires the legislature to appropriate moneys "for a public purpose".  The courts have found that what constitutes a public purpose "is generally a question for the legislature to decide" and that the legislature should be given "wide discretion" in this matter (State ex. rel. Amemiya v. Anderson, 56 Haw. 566, 574 (1976)).

     The legislature believes that permitting state-funded private sector internships is in the best interests of the State, and serves a public purpose of supporting health, safety, and welfare.

     The legislature further recognizes that the department of labor and industrial relation's Hele Imua internship program connects public high school students and graduates with structured, work—based learning opportunities in high-demand career fields, including education, health, and building and construction.  The program gives students the chance to experience public sector jobs.  The Hele Imua internship program also helps create a pipeline to fill vacancies in state and county governments, gives interns the opportunity to gain on-the-job experience, prepares interns for possible careers in jobs that are in high demand, and helps to develop relationships between students and recent graduates with potential employers.  The legislature believes that a similar program to the Hele Imua program that connects students and recent graduates with private sector employers who commit to cost-sharing in the program will help address the projected shortage of positions in the State's building and construction industry.

     Accordingly, the purpose of this Act is to authorize and appropriate funds for the department of labor and industrial relations to administer an on-the-job training work experience program for eligible interns that partners with private entities to increase opportunities for high school and college and university students to participate in summer internship programs and allow internships with private sector employers through a cost sharing strategy.

     SECTION 2.  Chapter 394, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

     "§394-     On-the-job training work experience program; private sector.  (a)  The department of labor and industrial relations may enter into contracts with employers or registered apprenticeship program sponsors in the private sector to provide on-the-job training to eligible interns; provided that any participating apprenticeship program sponsor in the private sector shall only offer to eligible interns on-the-job training in public sector projects.  The department may provide to the employers or sponsors up to $20.00 per hour in reimbursements for wages only for the costs of training and supervising an intern.  The employers or sponsors shall not be required to provide documentation of these costs.

     (b)  Eligible employers or sponsors shall demonstrate compliance with Hawaii compliance express or any successor program established to facilitate compliance with section 103D‑310(c).

     (c)  Contracts under this section shall be limited to a period of twelve weeks for college or university students, with an extension of up to twelve additional weeks if approved by the director of labor and industrial relations, and six weeks for high school students, with an extension of up to eight weeks during the summer break.  In determining the appropriate length of the contract, the director shall consider the:

     (1)  Occupation's skill requirements;

     (2)  Intern's existing academic and occupational skill levels; and

     (3)  Intern's prior work experience.

     (d)  The employer or sponsor shall comply with state and federal employment laws pursuant to chapter 387 and the Fair Labor Standards Act of 1938, as amended.

     (e)  The department of labor and industrial relations shall adopt interim rules, which shall be exempt from chapter 91, to develop and implement the program; provided that the interim rules shall remain in effect until the adoption of rules pursuant to chapter 91 to allow the department to:

     (1)  Ensure that participating interns are eligible pursuant to subsection (f) and participating employers or sponsors are eligible pursuant to subsection (g);

     (2)  Ensure that interns are referred by the department to employers or sponsors and not directly by the employers or sponsors;

     (3)  Reimburse employers or sponsors up to $20.00 per hour for wages only for the extraordinary costs of providing intern training and supervision;

     (4)  Develop a training plan for participating interns of the program in collaboration with the intern and employer or sponsor;

     (5)  Monitor each intern's progress in the program to ensure that training plan objectives are being met;

     (6)  Consult with interns and onsite supervisors to address any problems affecting the training plan;

     (7)  Terminate an internship, if necessary, due to problems at the worksite caused by either the intern or the employer or sponsor; and

     (8)  Limit employer or sponsor participation to no more than five interns at one time, as tracked by the federal employer identification number of the employer or sponsor.

     (f)  The department of labor and industrial relations shall develop eligibility criteria for interns, including requirements that the intern:

     (1)  Be sixteen years of age or older;

     (2)  Be a Hawaii resident;

     (3)  Be currently enrolled:

          (A)  In a public high school or have earned a high school diploma or its equivalent within one year of applying for the internship; or

          (B)  In an accredited college or university or has earned a college or university degree within one year of applying for the internship;

     (4)  Is not an apprentice in a registered apprenticeship program or journey worker; and

     (5)  Pass a criminal history record check in accordance with section 846-2.7.

     (g)  The department of labor and industrial relations shall develop eligibility criteria for employers or sponsors, including requirements that the employer or sponsor:

     (1)  Provide onsite work experience that complies with each intern's training plan and includes the daily supervision, training, and guidance necessary to enable each intern to develop work habits and job‑specific skills that are essential for employment;

     (2)  Provide interns with the same working conditions as other employees in similar occupations;

     (3)  Consult the department to obtain assistance when an intern requires support services to effectively complete an assigned task;

     (4)  Pay no less than $20.00 per hour for a maximum of thirty hours per week for high school students; provided that the maximum hours may be increased to forty hours during the summer break;

     (5)  Pay no less than $20.00 per hour for a maximum of forty hours per week; provided that the maximum hours for college or university students who are enrolled in at least two college or university courses shall not exceed twenty hours;

     (6)  Provide each intern with a mentor to give on-the-job guidance and to answer routine questions about the workplace;

     (7)  Ensure that interns do not displace currently employed workers, reduce the hours of those currently employed, infringe on the opportunities for promotion of regular employees, or replace the work of employees who have experienced layoffs;

     (8)  Ensure that interns' on-the-job training does not impair existing contracts for services or collective bargaining agreements;

     (9)  Ensure that the worksite, supervisor, and participants are available for monitoring by the department;

    (10)  Ensure that the worksite complies with all occupational safety and health standards established under state and federal law;

    (11)  Maintain time sheets and attendance records for each intern and prepare intern evaluations and any other reports required by the department;

    (12)  Notify the department on a timely basis if an intern:

          (A)  Is injured at the worksite;

          (B)  Is absent without good cause;

          (C)  Performs poorly on job assignments;

          (D)  Refuses to participate in work or work-related activities; or

          (E)  Is not making satisfactory progress in the program or on the job;

    (13)  For private sponsors, contribute fifty per cent in cost sharing benefits, including wages and fringe benefits; and

    (14)  Indemnify and hold harmless the State of Hawaii and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided under this section and procure sufficient insurance to provide this indemnification.

     §394-     Work experience; private and public sector; annual report.  The department of labor and industrial relations shall submit an annual report on state-funded internship programs for the private and public sectors to the legislature no later than twenty days prior to the convening of each regular session.  At a minimum, each report shall include:

     (1)  Outcomes and successes of the program;

     (2)  The number of interns who enrolled in the program and exited the program during the previous fiscal year;

     (3)  Information on the progress of the program; and

     (4)  Any proposed legislation."

     SECTION 3.  Section 302A-430, Hawaii Revised Statutes, is amended to read as follows:

     "§302A-430  Coverage for workers' compensation.  [Whenever a student participating in a school-approved work-based learning program sponsored by the department of education or the University of Hawaii undertakes to perform work for a private or public employer as part of the student's work-based learning program, whether paid or unpaid, the] The State shall be deemed [to be] the responsible employer for the purposes of workers' compensation coverage, [that shall be the student's exclusive remedy to the same extent] as provided for in chapter 386 [as against the State and the private employer participating in the program.], when a student or recent graduate performs paid or unpaid work for a private or public employer as part of a school-approved, work-based learning internship program sponsored by the department of education or university of Hawaii or as part of the on-the-job training work experience program established in section 394-   ."

     SECTION 4.  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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the department of labor and industrial relations to administer the on-the-job training work experience program under this Act.

     The sums appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act. SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 3000.

Report Title:

Department of Labor and Industrial Relations; Private Sector; Internships; Workforce Development; Workers' Compensation Coverage; Appropriation

Description:

Permits the Department of Labor and Industrial Relations to enter into contracts with eligible employers or registered apprenticeship programs in the private sector to provide on-the-job training to eligible interns.  Provides that the State shall be the responsible employer for purposes of workers' compensation coverage for students or recent graduates in the on-the-job-training work experience program, subject to certain limitations.  Appropriates funds.  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 INTERNSHIPS.

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

PART I

     SECTION 1.  The legislature finds that expanding state‑funded internships to include private-sector positions will benefit the State by promoting economic growth, fostering public-private collaborations, and supporting job creation.  State-funded private-sector internships will also create additional opportunities for interns to gain practical work experience and prepare for their future careers.

     The legislature recognizes that article VII, section 4, of the Hawaii State Constitution requires the legislature to appropriate moneys "for a public purpose".  The courts have found that "what constitutes a public purpose is generally a question for the legislature to decide" and that the legislature "is given wide discretion" in this matter.  State ex. rel. Amemiya v. Anderson, 56 Haw. 566, 574 (1976).

     The legislature finds that permitting state‑funded private‑sector internships is in the best interest of the State and serves the public purpose of supporting the health, safety, and welfare of its residents.

     Accordingly, the purpose of this part is to authorize and appropriate moneys for the department of labor and industrial relations to administer an on-the-job training work experience program for eligible interns.

     SECTION 2.  Chapter 394, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

     "§394-A  On-the-job training work experience program; private sector.  (a)  The department of labor and industrial relations may enter into contracts with employers or registered apprenticeship program sponsors in the private sector to provide on-the-job training to eligible interns.  The department may provide to the employers or sponsors up to $20.00 per hour in reimbursements for wages only, but not for fringe benefits or other costs, for the extraordinary costs of training and supervising an intern.  The employers or sponsors shall not be required to provide documentation of these extraordinary costs.

     (b)  Eligible employers or sponsors shall demonstrate compliance with Hawaii compliance express or any successor program established to facilitate compliance with section 103D‑310(c).

     (c)  Contracts entered into pursuant to this section shall be limited to a period of twelve weeks, with an extension of up to twelve additional weeks if approved by the director of labor and industrial relations; provided that the term of the internship shall be sufficient to allow the participant to gain relevant skills and experience in the occupation for which training is provided.  In determining the appropriate length of the contract, the director shall consider the:

     (1)  Occupation's skill requirements;

     (2)  Intern's existing academic and occupational skill levels; and

     (3)  Intern's prior work experience.

     (d)  The employer or sponsor shall comply with state and federal minimum wage rates and overtime requirements pursuant to chapter 387 and the Fair Labor Standards Act of 1938, as amended.

     (e)  The department of labor and industrial relations shall adopt rules pursuant to chapter 91 and systems, as necessary, to develop and implement the program, including rules and systems allowing the department to:

     (1)  Ensure that participating interns are eligible pursuant to subsection (f) and participating employers or sponsors are eligible pursuant to subsection (g);

     (2)  Ensure that interns are referred by the department to employers or sponsors and not directly by the employers or sponsors;

     (3)  Reimburse employers or sponsors up to $20.00 per hour for wages only for the extraordinary costs of providing intern training and supervision;

     (4)  Develop a training plan for each intern in collaboration with the intern and employer or sponsor;

     (5)  Monitor each intern's progress in the program to ensure that training plan objectives are being met;

     (6)  Consult with interns and on-site supervisors to address any problems affecting the training plan;

     (7)  Terminate an internship, if necessary, due to problems at the worksite caused by either the intern or the employer or sponsor; and

     (8)  Limit employer or sponsor participation to not more than five interns at one time, as tracked by the federal employer identification number of the employer or sponsor.

     (f)  The department of labor and industrial relations shall develop eligibility criteria for interns, including requirements that each intern:

     (1)  Be sixteen years of age or older;

     (2)  Be a Hawaii resident;

     (3)  Be currently enrolled in a public high school or have earned a high school diploma or its equivalent; and

     (4)  If a student or recent graduate of a college or university:

          (A)  Be currently enrolled in an accredited college or university and anticipating the attainment of a degree within one year, or has earned a college or university degree within one year of applying for the internship; and

          (B)  Have a cumulative college grade point average of 2.5 or higher, on a scale of 4.0 or its equivalent.

     (g)  The department of labor and industrial relations shall develop eligibility criteria for employers or sponsors, including requirements that each employer or sponsor:

     (1)  Provide onsite work experience that complies with each intern's training plan and includes the daily supervision, training, and guidance necessary to enable each intern to develop work habits and job‑specific skills that are essential for employment;

     (2)  Pay each intern not less than $20.00 per hour for a maximum of forty hours per week; provided that interns enrolled in two or more college or university courses shall not work for more than twenty hours per week;

     (3)  Provide each intern with a mentor to give on-the-job guidance and answer routine questions about the workplace;

     (4)  Provide interns with the same working conditions as other employees in similar jobs;

     (5)  Ensure that interns do not displace currently employed workers, reduce the hours of those currently employed, infringe on the opportunities for promotion of regular employees, or replace the work of employees who have experienced layoffs;

     (6)  Ensure that interns' on-the-job training does not impair existing contracts for services or collective bargaining agreements;

     (7)  Ensure that the work site, supervisor, and participants are available for monitoring by the department;

     (8)  Ensure that the work site complies with all occupational safety and health standards established under state and federal law;

     (9)  Maintain time sheets and attendance records for each intern and prepare intern evaluations and any other reports required by the department;

    (10)  Consult with and obtain assistance from the department if an intern requires support services to carry out a work assignment effectively;

    (11)  Notify the department on a timely basis if an intern:

          (A)  Is injured at the work site;

          (B)  Is absent without good cause;

          (C)  Performs poorly on job assignments;

          (D)  Refuses to participate in work or work-related activities; or

          (E)  Is not making satisfactory progress in the program or on the job; and

    (12)  Indemnify and hold harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided under this section, and procure sufficient insurance to provide this indemnification.

     (h)  The department of labor and industrial relations shall submit an annual report on the program to the legislature no later than twenty days prior to the convening of each regular session.  At a minimum, each report shall include:

     (1)  Outcomes and successes of the program;

     (2)  The number of interns who enrolled in the program and exited the program during the previous fiscal year;

     (3)  The names of the private or public sector organizations that the interns were placed at; and

     (4)  Information on the progress of the program.

     §394-B  Placement of interns in state executive branch departments; agencies, or programs; interagency collaboration.  (a)  The department of labor and industrial relations shall collaborate with the department of human resources development to process all public program applications and place interns in temporary or permanent positions at state executive branch departments, agencies, or programs.

     (b)  Before the first day of each internship, the department of labor and industrial relations shall provide the department of human resources development with:

     (1)  The name of the intern;

     (2)  The state executive branch department, agency, or program to which the intern is assigned;

     (3)  The expected start and end dates of the internship; and

     (4)  Any other relevant information that the department of human resources development may require to assist the intern in pursuing future employment with the state executive branch."

PART II

     SECTION 3.  Section 302A-430, Hawaii Revised Statutes, is amended to read as follows:

     "§302A-430  Coverage for workers' compensation.  [Whenever a student participating in a school-approved work-based learning program sponsored by the department of education or the University of Hawaii undertakes to perform work for a private or public employer as part of the student's work-based learning program, whether paid or unpaid, the] The State shall be deemed to be the responsible employer for the purposes of workers' compensation coverage, [that shall be the student's exclusive remedy to the same extent] as provided for in chapter 386 [as against the State and the private employer participating in the program.], when a student or recent graduate performs paid or unpaid work for a private or public employer as part of a school-approved, work-based learning program sponsored by the department of education or university of Hawaii or as part of the on-the-job training work experience program established in section 394-A; provided that workers' compensation coverage for a recent graduate shall lapse on the last day of February following the graduating year or the date the internship ends, whichever occurs earlier."

     SECTION 4.  In codifying the new sections added by section 2 and referenced in section 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval.

Report Title:

DLIR; DHRD; On-the-Job Training Work Experience Program; Internships; Private Sector; State Executive Branch Departments, Agencies, Programs; Workforce Development; Workers' Compensation Coverage

Description:

Permits the Department of Labor and Industrial Relations to enter into contracts with eligible employers or registered apprenticeship programs in the private sector to provide on‑the‑job training to eligible interns.  Requires the Department of Labor and Industrial Relations to collaborate with the Department of Human Resources Development for certain portions of the on-the-job-training work experience program.  Provides that the State shall be the responsible employer for purposes of workers' compensation coverage for students or recent graduates in the on-the-job-training work experience program, subject to certain limitations.  (SD2)

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 INTERNSHIPS.

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

PART I

     SECTION 1.  The legislature finds that expanding state‑funded internships to include private-sector positions will benefit the State by promoting economic growth, fostering public-private collaborations, and supporting job creation.  State-funded private-sector internships will also create additional opportunities for interns to gain practical work experience and prepare for their future careers.

     The legislature recognizes that article VII, section 4, of the Hawaii State Constitution requires the legislature to appropriate moneys "for a public purpose".  The courts have found that "what constitutes a public purpose is generally a question for the legislature to decide" and that the legislature "is given wide discretion" in this matter.  State ex. rel. Amemiya v. Anderson, 56 Haw. 566, 574 (1976).

     The legislature finds that permitting state‑funded private‑sector internships is in the best interest of the State and serves the public purpose of supporting the health, safety, and welfare of its residents.

     Accordingly, the purpose of this part is to authorize and appropriate moneys for the department of labor and industrial relations to administer an on-the-job training work experience program for eligible interns.

     SECTION 2.  Chapter 394, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

     "§394-A  On-the-job training work experience program; private sector.  (a)  The department of labor and industrial relations may enter into contracts with employers or registered apprenticeship program sponsors in the private sector to provide on-the-job training to eligible interns.  The department may provide to the employers or sponsors up to $20.00 per hour in reimbursements for wages only, but not for fringe benefits or other costs, for the extraordinary costs of training and supervising an intern.  The employers or sponsors shall not be required to provide documentation of these extraordinary costs.

     (b)  Eligible employers or sponsors shall demonstrate compliance with Hawaii compliance express or any successor program established to facilitate compliance with section 103D‑310(c).

     (c)  Contracts entered into pursuant to this section shall be limited to a period of twelve weeks, with an extension of up to twelve additional weeks if approved by the director of labor and industrial relations; provided that the term of the internship shall be sufficient to allow the participant to gain relevant skills and experience in the occupation for which training is provided.  In determining the appropriate length of the contract, the director shall consider the:

     (1)  Occupation's skill requirements;

     (2)  Intern's existing academic and occupational skill levels; and

     (3)  Intern's prior work experience.

     (d)  The employer or sponsor shall comply with state and federal minimum wage rates and overtime requirements pursuant to chapter 387 and the Fair Labor Standards Act of 1938, as amended.

     (e)  The department of labor and industrial relations shall adopt rules pursuant to chapter 91 and systems, as necessary, to develop and implement the program, including rules and systems allowing the department to:

     (1)  Ensure that participating interns are eligible pursuant to subsection (f) and participating employers or sponsors are eligible pursuant to subsection (g);

     (2)  Ensure that interns are referred by the department to employers or sponsors and not directly by the employers or sponsors;

     (3)  Reimburse employers or sponsors up to $20.00 per hour for wages only for the extraordinary costs of providing intern training and supervision;

     (4)  Develop a training plan for each intern in collaboration with the intern and employer or sponsor;

     (5)  Monitor each intern's progress in the program to ensure that training plan objectives are being met;

     (6)  Consult with interns and on-site supervisors to address any problems affecting the training plan;

     (7)  Terminate an internship, if necessary, due to problems at the worksite caused by either the intern or the employer or sponsor; and

     (8)  Limit employer or sponsor participation to not more than five interns at one time, as tracked by the federal employer identification number of the employer or sponsor.

     (f)  The department of labor and industrial relations shall develop eligibility criteria for interns, including requirements that each intern:

     (1)  Be sixteen years of age or older;

     (2)  Be a Hawaii resident;

     (3)  Be currently enrolled in a public high school or have earned a high school diploma or its equivalent; and

     (4)  If a student or recent graduate of a college or university:

          (A)  Be currently enrolled in an accredited college or university and anticipating the attainment of a degree within one year, or has earned a college or university degree within one year of applying for the internship; and

          (B)  Have a cumulative college grade point average of 2.5 or higher.

     (g)  The department of labor and industrial relations shall develop eligibility criteria for employers or sponsors, including requirements that each employer or sponsor:

     (1)  Provide onsite work experience that complies with each intern's training plan and includes the daily supervision, training, and guidance necessary to enable each intern to develop work habits and job‑specific skills that are essential for employment;

     (2)  Pay each intern not less than $20.00 per hour for a maximum of forty hours per week; provided that interns enrolled in two or more college or university courses shall not work for more than twenty hours per week;

     (3)  Provide each intern with a mentor to give on-the-job guidance and answer routine questions about the workplace;

     (4)  Provide interns with the same working conditions as other employees in similar jobs;

     (5)  Ensure that interns do not displace currently employed workers, reduce the hours of those currently employed, infringe on the opportunities for promotion of regular employees, or replace the work of employees who have experienced layoffs;

     (6)  Ensure that interns' on-the-job training does not impair existing contracts for services or collective bargaining agreements;

     (7)  Ensure that the work site, supervisor, and participants are available for monitoring by the department;

     (8)  Ensure that the work site complies with all occupational safety and health standards established under state and federal law;

     (9)  Maintain time sheets and attendance records for each intern and prepare intern evaluations and any other reports required by the department;

    (10)  Consult with and obtain assistance from the department if an intern requires support services to carry out a work assignment effectively;

    (11)  Notify the department on a timely basis if an intern:

          (A)  Is injured at the work site;

          (B)  Is absent without good cause;

          (C)  Performs poorly on job assignments;

          (D)  Refuses to participate in work or work-related activities; or

          (E)  Is not making satisfactory progress in the program or on the job; and

    (12)  Indemnify and hold harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided under this section, and procure sufficient insurance to provide this indemnification.

     (h)  The department of labor and industrial relations shall submit an annual report on the program to the legislature no later than twenty days prior to the convening of each regular session.  At a minimum, each report shall include:

     (1)  Outcomes and successes of the program;

     (2)  The number of interns who enrolled in the program and exited the program during the previous fiscal year;

     (3)  The names of the private or public sector organizations that the interns were placed at; and

     (4)  Information on the progress of the program.

     §394-B  Placement of interns in state executive branch departments; agencies, or programs; interagency collaboration.  (a)  The department of labor and industrial relations shall collaborate with the department of human resources development to process all public program applications and place interns in temporary or permanent positions at state executive branch departments, agencies, or programs.

     (b)  Before the first day of each internship, the department of labor and industrial relations shall provide the department of human resources development with:

     (1)  The name of the intern;

     (2)  The state executive branch department, agency, or program to which the intern is assigned;

     (3)  The expected start and end dates of the internship; and

     (4)  Any other relevant information that the department of human resources development may require to assist the intern in pursuing future employment with the state executive branch."

     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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the department of labor and industrial relations to administer the on-the-job training work experience program under this part.

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

PART II

     SECTION 4.  Section 302A-430, Hawaii Revised Statutes, is amended to read as follows:

     "§302A-430  Coverage for workers' compensation.  [Whenever a student participating in a school-approved work-based learning program sponsored by the department of education or the University of Hawaii undertakes to perform work for a private or public employer as part of the student's work-based learning program, whether paid or unpaid, the] The State shall be deemed to be the responsible employer for the purposes of workers' compensation coverage, [that shall be the student's exclusive remedy to the same extent] as provided for in chapter 386 [as against the State and the private employer participating in the program.], when a student or recent graduate performs paid or unpaid work for a private or public employer as part of a school-approved, work-based learning program sponsored by the department of education or university of Hawaii or as part of the on-the-job training work experience program established in section 394-A; provided that workers' compensation coverage for a recent graduate shall lapse on the last day of February following the graduating year or the date the internship ends, whichever occurs earlier."

     SECTION 5.  In codifying the new sections added by section 2 and referenced in section 4 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2050.

Report Title:

DLIR; DHRD; On-the-Job Training Work Experience Program; Internships; Private Sector; State Executive Branch Departments, Agencies, Programs; Workforce Development; Workers' Compensation Coverage; Appropriations

Description:

Permits the Department of Labor and Industrial Relations to enter into contracts with eligible employers or registered apprenticeship programs in the private sector to provide on‑the‑job training to eligible interns.  Requires the Department of Labor and Industrial Relations to collaborate with the Department of Human Resources Development for certain portions of the on-the-job-training work experience program.  Provides that the State shall be the responsible employer for purposes of workers' compensation coverage for students or recent graduates in the on-the-job-training work experience program, subject to certain limitations.  Appropriates funds.  Effective 7/1/2050.  (SD1)

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 Internships.

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

PART I

     SECTION 1.  The legislature finds that expanding state‑funded internships to include private-sector positions will benefit the State by promoting economic growth, fostering public-private collaborations, and supporting job creation.  State-funded private-sector internships will also create additional opportunities for interns to gain practical work experience and prepare for their future careers.

     The legislature recognizes that article VII, section 4, of the Hawaii State Constitution requires the legislature to appropriate moneys "for a public purpose".  The courts have found that what constitutes a public purpose "is generally a question for the legislature to decide" and that the legislature should be given "wide discretion" in this matter (State ex. rel. Amemiya v. Anderson, 56 Haw. 566, 574 (1976)).

     Therefore, the legislature finds that permitting state‑funded private‑sector internships is in the best interest of the State and serves the public purpose of supporting health, safety, and welfare.

     Accordingly, the purpose of this part is to authorize and appropriate moneys for the department of labor and industrial relations to administer an on-the-job training work experience program for eligible interns.

     SECTION 2.  Chapter 394, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§394-     On-the-job training work experience program.  (a)  The department of labor and industrial relations may enter into contracts with employers or registered apprenticeship program sponsors in the private sector to provide on-the-job training to eligible interns.  The department may provide to the employers or sponsors up to $20.00 per hour in reimbursements for wages only, but not for fringe benefits or other costs, for the extraordinary costs of training and supervising an intern.  The employers or sponsors shall not be required to provide documentation of these extraordinary costs.

     (b)  Eligible employers or sponsors shall demonstrate compliance with Hawaii compliance express or any successor program established to facilitate compliance with section 103D‑310(c).

     (c)  Contracts under this section shall be limited to a period of twelve weeks, with an extension of up to twelve additional weeks if approved by the director of labor and industrial relations; provided that the term of training shall be sufficient to allow the participant to become proficient in the occupation for which training is provided.  In determining the appropriate length of the contract, the director shall consider the:

     (1)  Occupation's skill requirements;

     (2)  Intern's existing academic and occupational skill levels; and

     (3)  Intern's prior work experience.

     (d)  The employer or sponsor shall comply with state and federal minimum wage rates and overtime requirements pursuant to chapter 387 and the Fair Labor Standards Act of 1938, as amended.

     (e)  The department of labor and industrial relations shall adopt systems and rules pursuant to chapter 91, as necessary, to develop and implement the program, including systems and rules allowing the department to:

     (1)  Ensure that participating interns are eligible pursuant to subsection (f) and participating employers or sponsors are eligible pursuant to subsection (g);

     (2)  Ensure that interns are referred by the department to employers or sponsors and not directly by the employers or sponsors;

     (3)  Reimburse employers or sponsors up to $20.00 per hour for wages only for the extraordinary costs of providing intern training and supervision;

     (4)  Develop a training plan for each intern in collaboration with the intern and employer or sponsor;

     (5)  Monitor each intern's progress in the program to ensure that training plan objectives are being met;

     (6)  Consult with interns and on-site supervisors to address any problems affecting the training plan;

     (7)  Terminate an internship, if necessary, due to problems at the worksite caused by either the intern or the employer or sponsor; and

     (8)  Limit employer or sponsor participation to no more than five interns at one time, as tracked by the federal employer identification number of the employer or sponsor.

     (f)  The department of labor and industrial relations shall develop eligibility criteria for interns, including requirements that each intern:

     (1)  Be sixteen years of age or older;

     (2)  Pass a criminal history record check pursuant to section 846-2.7;

     (3)  Be a Hawaii resident;

     (4)  Be currently enrolled in a public high school or have earned a high school diploma or its equivalent; and

     (5)  If a student or recent graduate of a college or university:

          (A)  Be currently enrolled in an accredited college or university and anticipating the attainment of a degree within one year, or has earned a college or university degree within one year of applying for the internship; and

          (B)  Have a cumulative college grade point average of 2.5 or higher.

     (g)  The department of labor and industrial relations shall develop eligibility criteria for employers or sponsors, including requirements that each employer or sponsor:

     (1)  Provide onsite work experience that complies with each intern's training plan and includes the daily supervision, training, and guidance necessary to enable each intern to develop work habits and job‑specific skills that are essential for employment;

     (2)  Pay no less than $20.00 per hour for a maximum of forty hours per week;

     (3)  Provide each intern with a mentor to give on-the-job guidance and answer routine questions about the workplace;

     (4)  Provide interns with the same working conditions as other employees in similar jobs;

     (5)  Ensure that interns do not displace currently employed workers, reduce the hours of those currently employed, infringe on the opportunities for promotion of regular employees, or replace the work of employees who have experienced layoffs;

     (6)  Ensure that interns' on-the-job training does not impair existing contracts for services or collective bargaining agreements;

     (7)  Ensure that the work site, supervisor, and participants are available for monitoring by the department;

     (8)  Ensure that the work site complies with all occupational safety and health standards established under state and federal law;

     (9)  Maintain time sheets and attendance records for each intern and prepare intern evaluations and any other reports required by the department;

    (10)  Consult with and obtain assistance from the department if an intern requires support services to carry out a work assignment effectively;

    (11)  Notify the department on a timely basis if an intern:

          (A)  Is injured at the work site;

          (B)  Is absent without good cause;

          (C)  Performs poorly on job assignments;

          (D)  Refuses to participate in work or work-related activities; or

          (E)  Is not making satisfactory progress in the program or on the job; and

    (12)  Indemnify and hold harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided under this section, and procure sufficient insurance to provide this indemnification.

     (h)  The department of labor and industrial relations shall collaborate with the department of human resources development to process program applications and place interns in temporary or permanent positions at a department, business, or organization within the State.

     (i)  Before the first day of each internship, the department of labor and industrial relations shall provide the department of human resources development with:

     (1)  The following information:

          (A)  The name of the intern;

          (B)  The department, business, or organization to which the intern is assigned;

          (C)  The assigned employee number of the intern;

          (D)  The expected start and end dates of the internship; and

          (E)  Any other relevant information that the department of human resources development may require to process the intern; and

     (2)  Access to the intern's Hawaii information portal account or the intern's account of the Hawaii information portal's successor system.

     (j)  The department of labor and industrial relations shall submit an annual report on the program to the legislature no later than twenty days prior to the convening of each regular session.  At a minimum, each report shall include:

     (1)  Outcomes and successes of the program;

     (2)  The number of interns who enrolled in the program and exited the program during the previous fiscal year; and

     (3)  Information on the progress of the program."

     SECTION 3.  Section 846-2.7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Criminal history record checks may be conducted by:

     (1)  The department of health or its designee on operators of adult foster homes for individuals with developmental disabilities or developmental disabilities domiciliary homes and their employees, as provided by section 321-15.2;

     (2)  The department of health or its designee on prospective employees, persons seeking to serve as providers, or subcontractors in positions that place them in direct contact with clients when providing non-witnessed direct mental health or health care services as provided by section 321-171.5;

     (3)  The department of health or its designee on all applicants for licensure or certification for, operators for, prospective employees, adult volunteers, and all adults, except adults in care, at healthcare facilities as defined in section 321-15.2;

     (4)  The department of education on employees, prospective employees, and teacher trainees in any public school in positions that necessitate close proximity to children as provided by section 302A-601.5;

     (5)  The counties on employees and prospective employees who may be in positions that place them in close proximity to children in recreation or child care programs and services;

     (6)  The county liquor commissions on applicants for liquor licenses as provided by section 281-53.5;

     (7)  The county liquor commissions on employees and prospective employees involved in liquor administration, law enforcement, and liquor control investigations;

     (8)  The department of human services on operators and employees of child caring institutions, child placing organizations, and resource family homes as provided by section 346-17;

     (9)  The department of human services on prospective adoptive parents as established under section 346-19.7;

    (10)  The department of human services or its designee on applicants to operate child care facilities, household members of the applicant, prospective employees of the applicant, and new employees and household members of the provider after registration or licensure as provided by section 346-154, and persons subject to section 346-152.5;

    (11)  The department of human services on persons exempt pursuant to section 346-152 to be eligible to provide child care and receive child care subsidies as provided by section 346-152.5;

    (12)  The department of health on operators and employees of home and community-based case management agencies and operators and other adults, except for adults in care, residing in community care foster family homes as provided by section 321-15.2;

    (13)  The department of human services on staff members of the Hawaii youth correctional facility as provided by section 352-5.5;

    (14)  The department of human services on employees, prospective employees, and volunteers of contracted providers and subcontractors in positions that place them in close proximity to youth when providing services on behalf of the office or the Hawaii youth correctional facility as provided by section 352D-4.3;

    (15)  The judiciary on employees and applicants at detention and shelter facilities as provided by section 571-34;

    (16)  The department of corrections and rehabilitation on employees and prospective employees, volunteers, contract service providers, and subcontract service providers who are directly involved with the treatment and care of, or directly involved in providing correctional programs and services to, persons committed to a correctional facility, or placed in close proximity to persons committed when providing services on behalf of the department or the correctional facility, as provided by section 353-1.5 and the department of law enforcement on employees and prospective employees whose duties involve or may involve the exercise of police powers including the power of arrest as provided by section 353C-5;

    (17)  The board of private detectives and guards on applicants for private detective or private guard licensure as provided by section 463-9;

    (18)  Private schools and designated organizations on employees and prospective employees who may be in positions that necessitate close proximity to children; provided that private schools and designated organizations receive only indications of the states from which the national criminal history record information was provided pursuant to section 302C-1;

    (19)  The public library system on employees and prospective employees whose positions place them in close proximity to children as provided by section 302A‑601.5;

    (20)  The State or any of its branches, political subdivisions, or agencies on applicants and employees holding a position that has the same type of contact with children, vulnerable adults, or persons committed to a correctional facility as other public employees who hold positions that are authorized by law to require criminal history record checks as a condition of employment as provided by section 78-2.7;

    (21)  The department of health on licensed adult day care center operators, employees, new employees, subcontracted service providers and their employees, and adult volunteers as provided by section 321-15.2;

    (22)  The department of human services on purchase of service contracted and subcontracted service providers and their employees and volunteers, as provided by sections 346-2.5 and 346-97;

    (23)  The department of human services on foster grandparent program, senior companion program, and respite companion program participants as provided by section 346-97;

    (24)  The department of human services on contracted and subcontracted service providers and their current and prospective employees that provide home and community-based services under section 1915(c) of the Social Security Act, title 42 United States Code section 1396n(c), or under any other applicable section or sections of the Social Security Act for the purposes of providing home and community-based services, as provided by section 346-97;

    (25)  The department of commerce and consumer affairs on proposed directors and executive officers of a bank, savings bank, savings and loan association, trust company, and depository financial services loan company as provided by section 412:3-201;

    (26)  The department of commerce and consumer affairs on proposed directors and executive officers of a nondepository financial services loan company as provided by section 412:3-301;

    (27)  The department of commerce and consumer affairs on the original chartering applicants and proposed executive officers of a credit union as provided by section 412:10-103;

    (28)  The department of commerce and consumer affairs on:

          (A)  Each principal of every non-corporate applicant for a money transmitter license;

          (B)  Each person who upon approval of an application by a corporate applicant for a money transmitter license will be a principal of the licensee; and

          (C)  Each person who upon approval of an application requesting approval of a proposed change in control of licensee will be a principal of the licensee,

          as provided by sections 489D-9 and 489D-15;

    (29)  The department of commerce and consumer affairs on applicants for licensure and persons licensed under title 24;

    (30)  The Hawaii health systems corporation on:

          (A)  Employees;

          (B)  Applicants seeking employment;

          (C)  Current or prospective members of the corporation board or regional system board; or

          (D)  Current or prospective volunteers, providers, or contractors,

          in any of the corporation's health facilities as provided by section 323F-5.5;

    (31)  The department of commerce and consumer affairs on:

          (A)  An applicant for a mortgage loan originator license, or license renewal; and

          (B)  Each control person, executive officer, director, general partner, and managing member of an applicant for a mortgage loan originator company license or license renewal,

          as provided by chapter 454F;

    (32)  The state public charter school commission or public charter schools on employees, teacher trainees, prospective employees, and prospective teacher trainees in any public charter school for any position that places them in close proximity to children, as provided in section 302D-33;

    (33)  The counties on prospective employees who work with children, vulnerable adults, or senior citizens in community-based programs;

    (34)  The counties on prospective employees for fire department positions that involve contact with children or vulnerable adults;

    (35)  The counties on prospective employees for emergency medical services positions that involve contact with children or vulnerable adults;

    (36)  The counties on prospective employees for emergency management positions and community volunteers whose responsibilities involve planning and executing homeland security measures including viewing, handling, and engaging in law enforcement or classified meetings and assisting vulnerable citizens during emergencies or crises;

    (37)  The State and counties on employees, prospective employees, volunteers, and contractors whose position responsibilities require unescorted access to secured areas and equipment related to a traffic management center;

    (38)  The State and counties on employees and prospective employees whose positions involve the handling or use of firearms for other than law enforcement purposes;

    (39)  The State and counties on current and prospective systems analysts and others involved in an agency's information technology operation whose position responsibilities provide them with access to proprietary, confidential, or sensitive information;

    (40)  The department of commerce and consumer affairs on:

          (A)  Applicants for real estate appraiser licensure or certification as provided by chapter 466K;

          (B)  Each person who owns more than ten per cent of an appraisal management company who is applying for registration as an appraisal management company, as provided by section 466M-7; and

          (C)  Each of the controlling persons of an applicant for registration as an appraisal management company, as provided by section 466M-7;

    (41)  The department of health or its designee on:

          (A)  Individual applicants or individuals acting on behalf of applying entities for hemp processor permits as provided under section 328G-2; and

          (B)  All license applicants, licensees, employees, contractors, and prospective employees of medical cannabis dispensaries, and individuals permitted to enter and remain in medical cannabis dispensary facilities as provided under sections 329D-15(a)(4) and 329D-16(a)(3);

    (42)  The department of commerce and consumer affairs on applicants for nurse licensure or license renewal, reactivation, or restoration as provided by sections 457-7, 457-8, 457-8.5, and 457-9;

    (43)  The county police departments on applicants for permits to acquire firearms pursuant to section 134-2, on individuals registering their firearms pursuant to section 134-3, and on applicants for new or renewed licenses to carry a pistol or revolver and ammunition pursuant to section 134-9;

    (44)  The department of commerce and consumer affairs on:

          (A)  Each of the controlling persons of the applicant for licensure as an escrow depository, and each of the officers, directors, and principals who will be in charge of the escrow depository's activities upon licensure; and

          (B)  Each of the controlling persons of an applicant for proposed change in control of an escrow depository licensee, and each of the officers, directors, and principals who will be in charge of the licensee's activities upon approval of the application,

          as provided by chapter 449;

    (45)  The department of taxation on current or prospective employees or contractors who have access to federal tax information in order to comply with requirements of federal law, regulation, or procedure, as provided by section 231-1.6;

    (46)  The department of labor and industrial relations on [current]:

          (A)  Current or prospective employees or contractors who have access to federal tax information in order to comply with requirements of federal law, regulation, or procedure, as provided by section 383-110; and

          (B)  Prospective interns pursuant to the on-the-job training work experience program under section 394-   ;

    (47)  The department of human services on current or prospective employees or contractors who have access to federal tax information in order to comply with requirements of federal law, regulation, or procedure, and on current or prospective employees, volunteers, contractors, or contractors' employees or volunteers, subcontractors, or subcontractors' employees or volunteers, whose position places or would place them in close proximity to minors, young adults, or vulnerable adults, as provided by section 346-2.5;

    (48)  The child support enforcement agency on current or prospective employees, or contractors who have access to federal tax information in order to comply with federal law, regulation, or procedure, as provided by section 576D-11.5;

    (49)  The department of the attorney general on current or prospective employees or employees or agents of contractors who have access to federal tax information to comply with requirements of federal law, regulation, or procedure, as provided by section 28‑17;

    (50)  The department of commerce and consumer affairs on each control person, executive officer, director, general partner, and managing member of an installment loan licensee, or an applicant for an installment loan license, as provided in chapter 480J;

    (51)  The university of Hawaii on current and prospective employees and contractors whose duties include ensuring the security of campus facilities and persons; and

    (52)  Any other organization, entity, or the State, its branches, political subdivisions, or agencies as may be authorized by state law."

     SECTION 4.  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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the department of labor and industrial relations to administer the on-the-job training work experience program under this part.

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

PART II

     SECTION 5.  Section 302A-430, Hawaii Revised Statutes, is amended to read as follows:

     "§302A-430  Coverage for workers' compensation.  [Whenever a student participating in a school-approved work-based learning program sponsored by the department of education or the University of Hawaii undertakes to perform work for a private or public employer as part of the student's work-based learning program, whether paid or unpaid, the] The State shall be deemed to be the responsible employer for the purposes of workers' compensation coverage, [that shall be the student's exclusive remedy to the same extent] as provided for in chapter 386 [as against the State and the private employer participating in the program.], when a student or recent graduate performs paid or unpaid work for a private or public employer as part of a school-approved, work-based learning program sponsored by the department of education or university of Hawaii or as part of the on-the-job training work experience program established in section 394-   ; provided that workers' compensation coverage for a recent graduate shall lapse on the last day of February following the graduating year or the date the internship ends, whichever occurs earlier."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2025.

Report Title:

DLIR; DHRD; Private Sector; Internships; Workforce Development; Workers' Compensation Coverage; Appropriation

Description:

Permits the Department of Labor and Industrial Relations to enter into contracts with eligible employers or registered apprenticeship programs in the private sector to provide on-the-job training to eligible interns.  Requires the Department of Human Resources Development to collaborate with the Department of Labor and Industrial Relations for certain portions of the on-the-job-training work experience program.  Provides that the State shall be the responsible employer for purposes of workers' compensation coverage for students or recent graduates in the on-the-job-training work experience program, subject to certain limitations.  Appropriates moneys.

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.  1468

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 327

      S.D. 2

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Labor, to which was referred S.B. No. 327, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO INTERNSHIPS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Authorize the Department of Labor and Industrial Relations to administer an on-the-job training work experience program for eligible interns and appropriates funds for the establishment of this program;

     (2)  Require the Department of Labor and Industrial Relations to collaborate with the Department of Human Resources Development to place interns within executive branch departments, agencies, and programs; and

     (3)  Clarify that the State is the responsible employer for providing workers' compensation coverage for students or recent graduates participating in the internship program.

     Your Committee received testimony in support of this measure from the Department of Education; Department of Labor and Industrial Relations; Department of Human Resources Development; University of Hawaiʻi System; Hawaii State Council on Developmental Disabilities; Hawaiʻi P-20 Partnerships for Education; Healthcare Association of Hawaii; Hawaiʻi Alliance of Nonprofit Organizations; Kohala Coast Resort Association; Purple Maia Foundation; Hawaiʻi Pacific Health; Chamber of Commerce Hawaii; Liberty Dialysis Hawaiʻi; Kapolei Chamber of Commerce; Hawaii Food Industry Association; Maui Chamber of Commerce; and Hawaiian Lifeguard Association.  Your Committee received comments on this measure from the Department of the Attorney General and Department of Business, Economic Development, and Tourism.

     Your Committee finds that expanding state-funded internships to include private-sector positions will benefit the State by promoting economic growth, fostering public-private collaborations, and supporting job creation.  Your Committee also finds that state-funded private-sector internships create opportunities for students to gain practical work experience and prepare them for the workforce.  Future employers will also benefit from this measure by having a larger pool of skilled applicants who can fill critical roles in Hawaii's labor market.  Your Committee believes that this measure is a strategic investment in the State's economic future by supporting students and local businesses, developing a skilled workforce, and ensuring that Hawaii remains competitive in the global economy.

     Your Committee further finds that H.B. No. 430, H.D.2 (Regular Session of 2025), a substantially similar measure, was previously passed by the House.

     Your Committee has amended this measure by deleting its contents and inserting the contents of H.B. 430 H.D.2, a measure that:

     (1)  Authorizes and appropriates funds for the Department of Labor and Industrial Relations to administer an on—the—job training work experience program that partners with private entities to increase opportunities for eligible high school and college and university students to participate in summer internship programs and allow internships with private sector employers through a cost-sharing strategy;

     (2)  Requires certain reporting by the Department of Labor and Industrial Relations;

     (3)  Clarifies that the State is the responsible employer for purposes of workers' compensation coverage for students or recent graduates participating as interns in the work experience program, with certain limitations; and

     (4)  Contains an effective date of July 1, 3000, to encourage further discussion.

     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 S.B. No. 327, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 327, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

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

STAND. COM. REP. NO. 686

Honolulu, Hawaii

RE:    S.B. No. 327

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 327, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INTERNSHIPS,"

begs leave to report as follows:

     The purpose and intent of this measure is to expand state-funded internships to include private-sector positions.

Specifically, this measure:

     (1)  Establishes an on-the-job training work experience program to authorize the Department of Labor and Industrial Relations to contract with private employers for on-the-job training for eligible interns;

     (2)  Requires the Department of Labor and Industrial Relations to collaborate with the Department of Human Resources Development for the processing and placement of interns in state offices;

     (3)  Expands state workers' compensation coverage for students and interns to include coverage until the end of February of the student's or intern's graduating year; and

     (4)  Appropriates moneys for the on-the-job training work experience program.

     Your Committee received comments in support of this measure from the Department of Human Resources Development, Department of Labor and Industrial Relations, Department of Education, Hawaii State Council on Developmental Disabilities, University of Hawaii System, Healthcare Association of Hawaii, Kohala Coast Resort Association, Hawaii Primary Care Association, Hawaii P-20 Partnerships for Education, Hawaii Pacific Health, Hawai‘i Alliance of Nonprofit Organizations, Hawaii Forest Industry Association, Kapolei Chamber of Commerce, Maui Chamber of Commerce, Hawaii Food Industry Association, The Chamber of Commerce of Hawaii, and one individual.

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

     Your Committee finds that expanding state-funded internships to include private-sector training will strengthen Hawaii's workforce by providing more individuals with practical experience and skills necessary for future employment.

     Your Committee has amended this measure by:

     (1)  Deleting the section appropriating an unspecified sum;

     (2)  Making the measure effective upon its approval; and

     (3)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 327, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 327, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 53

Honolulu, Hawaii

RE:    S.B. No. 327

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Labor and Technology, to which was referred S.B. No. 327 entitled:

"A BILL FOR AN ACT RELATING TO INTERNSHIPS,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish an On-the-Job Work Experience Training Program under which the Department of Labor and Industrial Relations may enter into contracts with eligible employers or registered apprenticeship program sponsors in the private sector to provide on-the-job training to eligible interns;

     (2)  Require the Department of Labor and Industrial Relations to collaborate with the Department of Human Resources Development for certain portions of the On-the-Job Work Experience Training Program;

     (3)  Designate the State as the responsible employer for purposes of workers' compensation coverage for students or recent graduates performing paid or unpaid work for a private or public employer as part of the On-the-Job Training Work Experience Program; and

     (4)  Appropriate funds for the On-the-Job Training Work Experience Program.

     Your Committee received testimony in support of this measure from the Department of Education, Department of Human Resources Development, Department of Labor and Industrial Relations, University of Hawaiʻi System, Chamber of Commerce Hawaii, Hawaii Food Industry Association, Hawaiʻi P-20 Partnerships for Education, Hawaiʻi Primary Care Association, Hawaiian Electric, Healthcare Association of Hawaii, Kapolei Chamber of Commerce, Maui Chamber of Commerce, and one individual.

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

     Your Committee finds that internships provide students and new graduates with critical exposure and training in the fields they aspire to work in, preparing them to achieve long-term success.  Internships can offer training in high-demand occupations, supplementing labor shortages, fostering innovation, and fueling economic growth in the State.  Your Committee recognizes that cultivating a skilled workforce is central to supporting local communities, and therefore, a shared responsibility of both public and private sectors.  Your Committee further finds that funding internships in the private sector will increase access to these opportunities for students facing greater barriers to entry, thereby facilitating the training of a larger, more diverse labor pool.

     Your Committee acknowledges the concerns raised in testimony regarding whether the term of the internships will be sufficient for the interns to gain relevant skills and experiences in the occupation for which they are training and the balance between the interns' work hours and courses of study.  Your Committee also recognizes the concerns raised by the Department of Labor and Industrial Relations regarding the lack of clarity in the provisions that apply to placement of interns in the private sector and those applicable to the public sector.  Your Committee further notes the testimony of the Department of Human Resources Development raising concerns regarding its lack of expertise and capacity to place interns in private sector positions.  The Department also noted that the interns would be subject to the name-based criminal history record check process applied to other state employees under the State's Employment Practices Law, rather than the background checks applicable to employees in specific positions, as currently proposed in this measure.  Therefore, there is a need to amend this measure to address these concerns.

     Accordingly, your Committee has amended this measure by:

     (1)  Clarifying the provisions applicable to the placement of interns in the private sector and those applicable to the placement of interns at state executive departments, agencies, and programs;

     (2)  Clarifying that the term of the internships shall be sufficient to allow the participant to gain relevant skills and experiences in the occupation for which training is provided;

     (3)  Prohibiting interns who are enrolled in two or more college or university courses from working under the program for more than twenty hours per week;

     (4)  Limiting the Department of Labor and Industrial Relations' collaboration and information sharing with the Department of Human Resources Development to placement of interns at state executive branch departments, agencies, and programs;

     (5)  Deleting language that would have required the interns to be subject to criminal history record checks applicable to employees in specific positions;

     (6)  Requiring the Department of Labor and Industrial Relations' annual report to the Legislature to include the names of the private or public sector organizations at which interns are placed;

     (7)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

     Your Committee notes the concerns expressed by the Department of Business, Economic Development, and Tourism regarding the finite administrative capacity of the Department of Human Resources Development; the program's lack of matching contributions for the interns' wages that may lead to the misuse of the program for inexpensive labor; and the need for post‑internship support and outcomes.  Your Committee finds that these issues merit further consideration and respectfully requests that subsequent Committees to which this measure is referred examine them.

     As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 327, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 327, S.D. 1, and be referred to your Committee on Ways and Means.

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