Establishes a high technology mentorship program as a pilot project for high school students to develop hands on high technology skills. Allows businesses that participate in training high school students to claim a credit against their employment and training fund assessment.

A BILL FOR AN ACT

SECTION 1. (a) Notwithstanding any law to the contrary, a qualified high technology business that is subject to the employment and training assessment required under section 383-129, Hawaii Revised Statutes, and that establishes and operates a high technology mentorship program for high school students in the State, approved by the department of labor and industrial relations in accordance with subsection (c), shall qualify for a credit against its employment and training assessment for the succeeding calendar year.

(b) The employment and training assessment credit provided under this Act shall be equal to the wages of one full-time equivalent employee of the qualified high technology business paid at the lowest pay rate or salary paid by the business for each high school student participating in the business's high technology mentorship program and shall apply against the business's total taxable wages calculation as specified in section 383-61, Hawaii Revised Statutes. The employment and training assessment credit shall only apply against assessments under section 383-129, Hawaii Revised Statutes, and may be credited against the qualified high technology business's employment and training assessment liability for the succeeding calendar year.

If a qualified high technology business's employment and training assessment credit is greater than the business's employment and training assessment liability in a given calendar year, the business may apply the remaining credit to its future employment and training assessment liability until the credit is exhausted. A qualified high technology business whose employment and training assessment credit is greater than the business's employment and training assessment liability shall not be entitled to a refund of past assessments under this Act.

(c) The department of labor and industrial relations, in consultation with the workforce development council, shall establish criteria for approving high technology mentorship programs. The criteria shall include but not be limited to:

The criteria shall be adopted in accordance with chapter 91, Hawaii Revised Statutes.

(d) The department of labor and industrial relations shall review a qualified high technology business's high technology mentorship program proposal and, if the department determines that the business's mentorship program meets the criteria established pursuant to subsection (c), the department shall provide the business with a written approval of the mentorship program. Prior to the end of each calendar year following the approval of a qualified high technology business's mentorship program, the qualified high technology business shall submit all information regarding its mentorship program required by the department of labor and industrial relations to verify student participation and to calculate the business's employment and training assessment credit.

The department of labor and industrial relations shall prepare and provide the necessary forms for qualified high technology businesses to establish high technology mentorship programs and to apply for and claim the employment and training assessment credit.

(e) For the purposes of this Act, "qualified high technology business" has the same meaning as defined in section 235-110.9(g), Hawaii Revised Statutes.

SECTION 2. The department of labor and industrial relations shall adopt rules in accordance with chapter 91, Hawaii Revised Statutes, to effectuate this Act.

SECTION 3. The department of labor and industrial relations shall submit an initial progress report on the implementation of this Act not later than twenty days prior to the convening of the 2007 regular session and shall annually thereafter submit progress reports to the legislature not later than twenty days prior to the convening of each succeeding regular session. Not later than twenty days prior to the convening of the 2011 regular session, the department of labor and industrial relations shall submit a final report on the implementation of this Act that shall include but not be limited to its findings on how the high technology mentorship program established under this Act has impacted the high technology education of high school students in the State, the revenue lost to the employment and training fund due the employment and training assessment credit, and recommendations on whether the high technology mentorship program and employment and training assessment credit should be made permanent.

SECTION 4. This Act shall take effect upon its approval and shall be repealed on June 30, 2011.