SB2975

SECTION 1. The legislature finds that students should have an opportunity to participate in a high-quality work-based learning experience before they graduate from high school. While partnerships between schools and employers have expanded in the past decade, the legislature also finds that equitable access to a diverse range of industries will require significantly greater employer participation in these programs.

The legislature further finds that to drastically increase work-based learning experience opportunities, offering additional resources for employers will incentivize companies to offer work-based learning opportunities and increase capacity to host student interns. Without crucial assistance to support work-based learning experiences, 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.

Accordingly, the purpose of this Act is to establish a qualified internship grant program, to be administered by an eligible and qualified non-profit organization in partnership with the department of education.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- Qualified internship program; administration; requirements. (a) There is established within the department a qualified internship grant program. The qualified internship grant program shall provide grants to businesses and organizations providing qualified interns with work-based learning experiences through a qualified internship program.

(b) The qualified internship grant program shall be administered by an eligible and qualified non-profit organization selected by the department through a competitive bid process and in compliance with chapter 103D. The eligible and qualified non-profit organization shall:

(1) Verify that internship applicants have provided the following information:

(A) A description of the daily tasks to be completed by the qualified intern;

(B) Expected student learning outcomes to be achieved by the completion of the internship period; and

(2) Report the following to the department at the conclusion of the internship:

(A) Confirmation that each qualified intern was employed and supervised in the State in a position in which the qualified intern received training and experience in the intern's chosen field of study;

(B) Total wages paid to each qualified intern and each qualified intern's hourly wage rate; and

(c) The department shall report to the legislature no later than twenty days prior to the convening of each regular session. The report shall include:

(1) The total value of qualified internship grants provided in the previous calendar year;

(2) The total number of qualified interns who participated in the program in the previous calendar year;

(3) Information on the department's process in administering the qualified internship grant program; and

(4) An analysis of the effectiveness of the qualified internship grant program as an incentive to encourage employment of qualified interns.

(d) For the purposes of this section:

"Eligible and qualified non-profit organization" means an organization that is registered with the State and has been certified by the Internal Revenue Service as a charitable or otherwise tax-exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

"Internship applicant" means a business or employer who applies to participate in the qualified internship grant program.

"Qualified intern" means an individual enrolled in a public school.

"Qualified internship program" means a highly structured, time-limited professional internship program with a workplace mentor that provides a qualified intern the opportunity to apply technical and employability skills in an authentic workplace environment that:

(1) Compensates the qualified intern no less than $12 per hour;

(2) Schedules the qualified intern to work for no more than fifteen hours per week during the academic year and no more than forty hours per week during winter, spring, and summer holiday periods; and

(3) Employs the qualified intern for no more than one hundred and fifty hours."

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 2024-2025 for the establishment and implementation of the qualified internship grant program.

The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 4. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2975
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII