HB406 HD2

SECTION 1. The legislature finds that continued advancement of technology with the growth of automation and artificial intelligence is poised to fundamentally reshape our local and global economy. Some reports predict that automation may eliminate one-third of the nation’s jobs by 2030, and that as much as forty-five per cent of current business tasks could potentially be automated. As such, future generations will be required to possess the skills and adaptability to thrive in this new economy. Projections show that approximately sixty-five per cent of students in school will hold jobs that do not exist yet.

The legislature further finds that although Hawaii has one of the lowest unemployment rates in the nation, many existing jobs are lower wage jobs in the visitor industry. Moreover, high housing costs and the high cost of living are outpacing wages. In addition, there are not enough job opportunities in the State for high-wage, skilled workers. Consequently, the United States Census Bureau recently found that there are thirty-seven more people per day who are moving out of Hawaii than are moving into the State.

Given this looming challenge, the legislature finds that the State must develop a strategic, forward-looking approach toward work-based learning to better prepare students for college and their careers. Accordingly, the department of business, economic development, and tourism should be required to develop annual regional economic plans for each county based on the boundaries of development or community plans in each county. The workforce development council, in partnership with the department of education and the University of Hawaii, can use this data to provide K-16 pathways and internship programs in each public and public charter school to match the specific industry needs of the State. These pathways and qualified internship programs will serve as the foundation for developing work-based learning opportunities in public schools that reflect high-growth, high-need industries, which are often concentrated in healthcare, technical roles, business and finance, information technology, and management.

Accordingly, the purpose of this Act is to:

(1) Require the department of business, economic development, and tourism to develop annual regional economic plans for each county based on the boundaries of the development or community plans in each county; and

(2) Appropriate funds.

SECTION 2. Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201- Regional economic plans. (a) The department of business, economic development, and tourism shall develop annual regional economic plans to provide jobs in urban and rural areas in each county based on the development or community boundaries of each respective county.

(b) These plans shall be published by January 31 annually commencing after July 1, 2020, on the department's website and include a list of regional economic priorities and industry clusters, and jobs within these priorities and industry clusters.

(c) Based on the findings of these regional economic plans, the workforce development council may consult the department of education and the University of Hawaii to develop and provide K-12 pathways, programs, and qualified internships in each public school that:

(1) Emphasize the skills necessary to meet the specific industry needs of the State;

(2) Relate to employment in jobs identified by the department as priority jobs, concentrated in healthcare, technical roles, business and finance, information technology, and management; and

(3) Result in a degree or credential that meets entry-level requirements of employers in relevant priority industries.

(d) The priority jobs identified shall be in high-growth positions that provide a living wage for an average family of three persons with one working adult.

(e) "Qualified internship programs" means programs that prepare students for jobs that are identified by regional economic plans as a priority in the geographical area.

(f) Schools shall communicate opportunities to enroll in these pathways or qualified internship programs to students and parents.

(g) For budget year 2020-2021 and each budget year thereafter, each participating public school and public charter school may receive up to $1,000 in bonus incentives for each student who has successfully completed a qualified internship program in the preceding budget year. Bonus incentive funds may be used to pay for costs of administering these programs and any testing fees incurred by students in attaining credentials.

(h) The department of education shall maintain records and shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session beginning in 2020. The report shall include:

(1) Types of credentials being earned and internships being completed;

(2) The schools offering these pathways and programs;

(3) Aggregated demographics of student participants; and

(4) The completion rate of enrolled students."

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 2020-2021 for the department of business, economic development, and tourism to develop regional economic plans pursuant to section 2 of this Act. The appropriation shall be divided between $ for administrative costs and $ for school incentive bonuses pursuant to section 2 of this Act.

The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 4. The department of business, economic development, and tourism shall submit a report of its findings, recommendations, and status on developing regional economic plans pursuant to section 2 of this Act, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2021.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2050; provided that sections 2, 3, and 4 of this Act shall take effect on July 1, 2020.

HOUSE OF REPRESENTATIVES	H.B. NO.	406
THIRTIETH LEGISLATURE, 2019		H.D. 2
STATE OF HAWAII