HB2575

SECTION 1. The legislature finds that addressing the growing shortage in the State's construction trades workforce is in the public interest and a key priority of the State. The department of business, economic development, and tourism reported in December 2023 that the State's construction near-term outlook is favorable. For Hawaii residents to capitalize on this opportunity, the State needs to find ways to effectively recruit, incentivize, train, and support individuals to join the construction trades in order to build the affordable housing and renewable energy projects needed, thereby creating a more sustainable economy that allows our residents to afford the rising cost of living and raise families in the State.

The legislature further finds that according to the university of Hawaii Economic Research Organization (UHERO), there will be a need for an additional two thousand construction workers for Maui in the aftermath of the Lahaina wildfires, and another three thousand construction workers for Oahu due to several large projects, including the expansion of the Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility, which is critical to national security.

The purpose of this Act is to support construction trades by establishing a construction trades workforce development program in the department of labor and industrial relations to prepare high school students for careers in the construction trades that pay living wages with benefits and provide high quality training through a state-approved apprenticeship program.

SECTION 2. Chapter 371, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§371- Construction trades workforce development program. (a) There is established a construction trades workforce development program in the department to develop, establish, and implement a construction trades career pathway program for high school students in the State. The department shall collaborate with the department of education and stakeholders in the industry to develop the program.

(b) The program shall:

(1) Develop and implement curriculum standards for the construction trades training program; provided that the curriculum standards are aligned with national certification standards and industry needs;

(2) Authorize and enable construction industry trade professionals to teach and administer training classes at schools and assist in course development;

(3) Assist public high schools in establishing or expanding construction trade classrooms and workshops;

(4) Facilitate public-private partnerships between schools and construction companies and industry professionals for program participants and internship opportunities;

(5) Prioritize the development of internship opportunities for program participants with construction companies; provided that:

(A) Internship experiences shall be aligned with program curriculum and provide participants with hands-on training and skill development in a professional setting; and

(B) Paid internships shall be encouraged whenever possible, but internships may be unpaid; and

(6) Collaborate with community colleges and training organizations to create seamless pathways for program graduates to pursue further education and industry certifications.

(1) Accept and utilize private funding for renovations and equipment in the establishment of construction trades classrooms and workshops at public high schools;

(2) Enter into memoranda of agreements or memoranda of understanding with private funding providers and schools where the program classes are to be administered; provided that the private funding providers may have input regarding:

(A) The selection of construction trades to be offered in the program;

(B) The curriculum development process, including whether the private funding provider may provide instructors as a condition to the program; and

(3) Provide intermediate school outreach and educational opportunities in the construction trades, including field trip opportunities to training centers for the trades within the State.

(d) The director shall submit an annual report on the status of the program and findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session."

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 construction trades workforce development program.

The sum appropriated shall be expended by the department of labor and industrial relations 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, 2024.

INTRODUCED BY:

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HOUSE OF REPRESENTATIVES	H.B. NO.	2575
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII