HB1859

SECTION 1. The legislature finds that Hawaii is at a critical demographic and economic crossroads. The 2025 Holomua Collective Affordability Survey surveyed over three thousand two hundred local working residents, and found that seventy-five per cent of respondents are currently considering, or are unsure if they will have to, relocate to a less expensive state, with fifty-seven per cent of those considering a move within the next five years. These numbers exemplify the widening gap between local wages and the cost of living. In 2023, the asset limited, income constrained, employed (ALICE) household survival budget for a family of four was $110,112, and forty-five per cent of households fell below this threshold.

The legislature further finds that the State's youth face a precarious future. The Hawaii Workforce Funders Collaborative reports that nearly thirty per cent of the approximately one hundred seventy thousand young residents estimated to enter the State's workforce over the next decade will lack viable opportunities to build a sustainable career in the state. To prevent a permanent loss of local talent, the State must bridge the gap between education and employment by investing in robust career counseling infrastructure and work-based learning opportunities that connect students to high-quality, local opportunities.

The legislature recognizes that efforts from multiple state departments and agencies, nonprofit partners, and labor unions have made, and continue to make significant foundational progress in increasing workforce development opportunities for local working residents, including through the adoption of the State Unified Plan by the department of labor and industrial relations and the workforce development council. This collaborative framework has begun to bring together education, industry, labor, and social services to connect federal Workforce Innovation and Opportunity Act funding with state resources. However, achieving the vision of a resilient, inclusive economy requires transitioning from a temporary collaborative effort to a codified, long-term aligned strategy and goal.

The legislature further finds that successful models in states such as Idaho, Maine, Minnesota, and Virginia demonstrate that comprehensive workforce strategies anchored by a common, statewide North Star goal are essential for long-term alignment and accountability. By establishing clear metrics and a whole‑of‑government approach, these states have integrated funding streams and established momentum through data collection, sharing, and analysis.

Despite considerable effort and growth over the past decade, the State's workforce development landscape lacks a common long-term strategy. The establishment of a common long‑term strategy can provide the framework, funding, and motivation for all stakeholders to move in concert toward a shared definition of success, and will improve the State's talent pipelines in high-demand, high-wage occupations.

Accordingly, the purpose of this Act is to require the workforce development council to:

(1) Recommend to the governor, for inclusion into the state unified plan, a comprehensive statewide workforce strategy; and

(2) Facilitate the alignment of workforce development efforts and programs conducted by state departments and agencies to achieve the state unified plan and the comprehensive statewide workforce strategy.

SECTION 2. Section 202-2, Hawaii Revised Statutes, is amended to read as follows:

"§202-2 Duties of council. (a) In accordance with P.L. 113-128 (29 U.S.C. section 3111), the workforce development council shall assist the governor in:

(1) The development, implementation, and modification of the state plan consistent with P.L. 113-128 (29 U.S.C. section 3112);

(2) The review of statewide policies, statewide programs, and recommendations on actions that should be taken by the State to align workforce development programs in a manner that supports a comprehensive and streamlined workforce development system in the State, including consideration of programs and activities of one-stop partners that are not core programs;

(3) The development and continuous improvement of the workforce development system in the State;

(4) The development and updating of comprehensive state performance accountability measures, including state adjusted levels of performance, to assess the effectiveness of the core programs in the State as required under P.L. 113-128 (29 U.S.C. section 3141(b));

(5) The identification and dissemination of information on best practices for the effective operation of one-stop centers, and the development of effective local boards and effective training programs;

(6) The development and review of statewide policies affecting the coordinated provision of services through the State's one-stop delivery system;

(7) The development of strategies for technological improvements to facilitate access to, and improve the quality of, services and activities provided through the one-stop delivery system;

(8) The development of strategies for aligning technology and data systems across one-stop partner programs to enhance service delivery and improve efficiencies in reporting on performance accountability measures, including the design and implementation of common intake, data collection, case management information, and performance accountability measurement and reporting processes, and the incorporation of local input into the design and implementation, to improve coordination of services across one-stop partner programs;

(9) The development of allocation formulas for the distribution of funds for employment and training activities for adults, and youth workforce investment activities, to local areas as permitted under P.L. 113-128 (29 U.S.C. sections 3163(b)(3), 3173(b)(3));

(10) The preparation of annual reports as described in P.L. 113-128 (29 U.S.C. section 3141(d));

(11) The development of the statewide workforce and labor market information system described in the Wagner‑Peyser Act (29 U.S.C. section 49l-2(e));

(12) The development of other policies as may promote statewide objectives for, and enhance the performance of, the workforce development system;

(13) Creating public awareness and understanding of the State's workforce development plans, policies, programs, and activities, and promoting the plans, policies, programs, and activities as economic investments;

(14) Submitting annual reports of the council's activities and recommendations to the governor and the legislature, and posting the annual reports electronically on the council's website no later than twenty days before the convening of each regular session. Annual reports shall include:

(A) The status of the comprehensive state plan for workforce development; and

(B) Information regarding the workforce development programs offered throughout the State, the number of individuals placed in high-demand or high‑growth employment through workforce development programs by departments, the type or category of employment garnered, and allocations of state, federal, and other funding to achieve placements into higher-skilled jobs;

(15) Evaluating the state workforce development plan in terms of how its purposes, goals, and objectives have been carried out throughout the State;

(16) Providing technical assistance to local workforce development boards and other similar organizations;

(17) Carrying out required functions and duties related to workforce development of any advisory body required or made optional by federal legislation;

(18) The review and certification of local workforce development boards and plans prepared by local workforce development boards for the use of federal workforce development funds as provided in P.L. 113‑128 (29 U.S.C. section 3122(b)-(c)); and

(19) Commenting on the measures taken pursuant to section 122(c)(17) of the Carl D. Perkins Career and Technical Education Act of 2006, P.L. 109-270.

(b) Notwithstanding any law to the contrary, in carrying out its duties pursuant to subsection (a), the workforce development council shall recommend to the governor, for inclusion in the state unified plan, a comprehensive statewide workforce strategy to ensure that all people of the State have a pathway to a career that enables them to learn, work, and thrive in the State and contribute to a vibrant local economy grounded in community values by 2045.

The comprehensive statewide workforce strategy shall serve as a long-term framework to unify state and county workforce efforts under a common goal with aligned priorities and shall be incorporated into, and guide, each state unified plan and any modification thereof, regardless of the applicable planning period.

The comprehensive statewide workforce strategy shall include, at a minimum, specific plans to achieve and metrics to evaluate progress in the following areas:

(1) Increasing work-based learning infrastructure and access;

(2) Increasing economic resilience and opportunity;

(3) Reducing underemployment and improving job quality;

(4) Expanding living-wage employment opportunities;

(5) Expanding industry-led sectoral partnerships; and

(6) Increasing job retention."

SECTION 3. Section 202-5, Hawaii Revised Statutes, is amended to read as follows:

"§202-5 Organizational relationships. (a) The workforce development council is placed within the department of labor and industrial relations for administrative purposes and shall act in an advisory capacity to the governor.

(b) The workforce development council shall be responsible for facilitating the alignment of workforce development efforts and programs conducted by state departments and agencies to achieve the state unified plan and the comprehensive statewide workforce strategy recommended pursuant to section 202-2(b). State departments and agencies shall, to the extent permitted by law, assist the workforce development council by providing data and information necessary to support periodic evaluation of the comprehensive statewide workforce strategy.

As used in this section, "facilitating the alignment" includes convening and supporting interagency planning, identifying duplicative or complementary efforts, and recommending policy or administrative changes consistent with the state unified plan and the comprehensive workforce strategy."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1859
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII