STAND. COM. REP. NO. 36-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1654

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 1654 entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish the Qualified Internship Grant Program to provide grants to businesses and organizations that provide qualified interns with work-based learning experiences through a qualified internship program; and

(2) Appropriate funds for the establishment and implementation of the Qualified Internship Grant Program.

Your Committee received testimony in support of this measure from the State Council on Developmental Disabilities; Hawaiʻi State Teachers Association; Hawaiʻi Primary Care Association; HawaiiKidsCAN; Chamber of Commerce Hawaii; Watanabe Floral, Inc.; Barzman Consulting; West Kauai Business Professional Association; Isei Consulting, LLC; Kona-Kohala Chamber of Commerce; Hawaii Food Industry Association; Kauaʻi Chamber of Commerce; Hispanic Chamber of Commerce Hawaii; Hawaiʻi Farm Bureau; Maui Chamber of Commerce; Kapolei Chamber of Commerce; and two individuals. Your Committee received comments on this measure from the Department of the Attorney General; Department of Education; and Department of Labor and Industrial Relations.

Your Committee finds that students should have an opportunity to participate in a high-quality work-based learning experience before they graduate from high school. Your Committee further finds that offering additional resources for employers will incentivize companies to offer work-based learning opportunities and increase capacity to host student interns will greatly increase work-based learning experience opportunities. However, 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. This measure will encourage more employers to offer paid internships for students by offering financial incentives through the awarding of grants.

Your Committee has amended this measure by:

(1) Requiring businesses and employers participating in the Qualified Internship Grant Program to compensate qualified interns no less than the state minimum wage established pursuant to section 382-2, Hawaii Revised Statutes;

(2) Requiring qualified internship programs to comply 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, Hawaii Revised Statutes, including obtaining the appropriate work permit certification;

(3) Inserting language establishing standards for the distribution of the funds appropriated in this measure as grants under the Qualified Internship Grant Program;

(4) Amending the definition of "qualified intern" to mean an individual who is at least sixteen years of age and enrolled in a public school;

(5) Changing the effective date to July 1, 3000; and

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

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1654, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1654, H.D. 1, and be referred to your Committee on Labor & Government Operations.

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

____________________________

JUSTIN H. WOODSON, Chair