HB1654 HD1

SECTION 1. The legislature finds that students should have an opportunity to participate in a high-quality work-based learning experience before they graduate from high school. While partnerships between schools and employers have expanded in the past decade, the legislature also finds that equitable access to a diverse range of industries will require significantly greater employer participation in these programs.

The legislature further finds that to drastically increase work-based learning experience opportunities, offering additional resources for employers will incentivize companies to offer work-based learning opportunities and increase capacity to host student interns. Without crucial assistance to support work-based learning experiences, many employers, especially small- to medium-sized companies, may lack the resources necessary to hire and retain student interns and youth will be unable to gain invaluable work experience before entering the workforce.

Accordingly, the purpose of this Act is to establish a qualified internship grant program, to be administered by an eligible and qualified non-profit organization in partnership with the department of education.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- Qualified internship grant program; administration; requirements. (a) There is established within the department a qualified internship grant program. The qualified internship grant program shall provide grants to businesses and organizations providing qualified interns with work-based learning experiences through a qualified internship program, which shall be a highly structured, time-limited professional internship program with a workplace mentor that provides a qualified intern the opportunity to apply technical and employability skills in an authentic workplace environment that:

(1) Compensates the qualified intern no less than the minimum wage as prescribed in section 382-2;

(2) Schedules the qualified intern to work for no more than fifteen hours per week during the academic year and no more than forty hours per week during winter, spring, and summer holiday periods;

(3) Employs the qualified intern for no more than one hundred and fifty hours; and

(4) Complies with the child labor provisions of the federal Fair Labor Standards Act, title 29 United States Code 212(c), the federal Fair Labor Standards Act regulations at title 29 Code of Federal Regulations part 570, and chapter 390, including obtaining the appropriate work permit certification.

(b) The qualified internship grant program shall be administered by an eligible and qualified non-profit organization selected by the department through a competitive bid process and in compliance with chapter 103D. The eligible and qualified non-profit organization shall:

(1) Verify that internship applicants have provided the following information:

(A) The name of the applicant requesting program funds;

(B) The amount of program funds being requested;

(D) Expected student learning outcomes to be achieved by the completion of the internship period; and

(E) Confirmation that the internship has been approved as part of a department approved work-based learning program; and

(2) Report the following to the department at the conclusion of the internship:

(A) Confirmation that each qualified intern was employed and supervised in the State in a position in which the qualified intern received training and experience in the intern's chosen field of study;

(B) Total wages paid to each qualified intern and each qualified intern's hourly wage rate; and

(c) An internship applicant may be eligible for program funds under the grant program if the applicant uses the funds to:

(1) Compensate qualified interns for work performed during the qualified internship program; and

(2) Cover the cost of additional labor or materials required to operate the qualified internship program.

(d) Program funds shall be distributed as follows:

(1) Up to $ for the employment of the qualified intern for up to hours; or

(2) Up to $ for the employment of the qualified intern for up to hours.

(e) Any grant of program funds shall be used exclusively for the purposes under this section.

(f) An internship applicant shall have applied for or received all applicable licenses or permits necessary for the operation of its business, and for the employment of personnel.

(g) The internship applicant or recipient of program funds shall comply with other requirements or conditions as the department may prescribe, including those prescribed by the department to implement the program.

(h) The recipient of the program funds shall comply with all federal, state, or county statutes, rules, or ordinances, necessary to conduct the activities for which program funding is given.

(i) The internship applicant or recipient of the program funds shall comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability, or any other characteristic protected under applicable law.

(j) The internship applicant or recipient of the program funds shall allow the department, and its staff or contractor, and the auditor full access to the applicant's or recipient's records, reports, files, and other related documents and information for purposes of monitoring and ensuring the proper expenditure of program funds.

(k) The recipient of the program funds shall indemnify and save 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 hereunder and procure sufficient insurance to provide this indemnification.

(l) The department or its contractor shall not release the public funds approved for an internship applicant unless a contract is entered into between the department or its contractor and the recipient of the program funds. The department shall develop and determine, in consultation with and subject to the review and approval of the attorney general, the specific contract form to be used. Each such contract shall be monitored by the department or its contractor to ensure compliance with this section. Each such contract shall be evaluated annually to determine whether the program funds attained the intended results in the manner contemplated.

(m) The internship applicant shall satisfy any other standards that may be required by the source of funding.

(n) Any recipient of program funds who withholds or omits any material fact or deliberately misrepresents facts to the department shall be in violation of this section. In addition to any other penalties provided by law, any recipient found by the department to have violated this section or the terms of its contract shall be prohibited from applying for any department grants for a period of five years from the date of termination.

(o) The department shall report to the legislature no later than twenty days prior to the convening of each regular session. The report shall include:

(1) The total value of qualified internship grants provided in the previous calendar year;

(2) The total number of qualified interns who participated in the program in the previous calendar year;

(3) Information on the department's process in administering the qualified internship grant program; and

(4) An analysis of the effectiveness of the qualified internship grant program as an incentive to encourage employment of qualified interns.

(p) For the purposes of this section:

"Eligible and qualified non-profit organization" means an organization that is registered with the State and has been certified by the Internal Revenue Service as a charitable or otherwise tax-exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

"Internship applicant" means a business or employer who applies to participate in the qualified internship grant program.

"Qualified intern" means an individual who is at least sixteen years of age and enrolled in a public school."

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 2024-2025 for the establishment and implementation of the qualified internship grant program.

The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 4. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act.

SECTION 5. New statutory material is underscored.

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

HOUSE OF REPRESENTATIVES	H.B. NO.	1654
THIRTY-SECOND LEGISLATURE, 2024		H.D. 1
STATE OF HAWAII