HB916

SECTION 1. The legislature finds that Hawaii's economy depends on a highly skilled workforce to stay competitive and that new means have to be explored and applied to ensure meeting the constantly increasing demands on the workforce.

The legislature believes that in support of a national effort to foster workforce development and to deal with the lack of skilled workers, particularly health care workers, lifelong learning accounts can be the means to develop the workforce properly, and at the same time to fulfill an employer's needs and to accomplish an individual's career goals. Lifelong learning accounts are employer-matched, portable, individual savings accounts used to finance education and training--similar to an employer-sponsored retirement plan or 401(k) plan, but used for skill building and career advancement. Lifelong learning accounts provide tax incentives for both the employer and the employee.

The purpose of this Act is to authorize the department of business, economic development, and tourism to establish a pilot program to test the use of lifelong learning accounts for workers in the State's health care sector.

SECTION 2. Chapter 202, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§202- Lifelong learning accounts; pilot program. (a) The department of business, economic development, and tourism may establish and maintain a pilot program to provide for and test the use of lifelong learning accounts for workers in the State's health care sector.

(b) For purposes of this section, "lifelong learning account" means an individual asset account held by a trustee, custodian, or fiduciary approved by the department on behalf of an employee in the health care sector, the moneys in which may be used only to pay education expenses incurred by or on behalf of the account owner.

(1) May serve up to five hundred health care workers;

(2) Shall encourage the participation in the program of low-income and low-skilled health care workers;

(3) Shall implement the program in diverse geographic and economic areas and include healthcare workers in urban, suburban, and rural areas of the State;

(4) Shall include in the program health care employers of different sizes that choose to participate in the program;

(5) Shall provide matching grants in an amount equal to fifty per cent of the annual aggregate contribution made by an employer and employee to the employee's lifelong learning account, up to a maximum of $500 annually for each grant; and

(6) Shall make available:

(A) Technical assistance to companies; and

(B) Educational and career advising to individual participants.

(d) The establishment of a program under this section is within the department's discretion and is subject to legislative appropriation.

(e) The department may adopt rules necessary to administer the section."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	916
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII