STAND. COM. REP. NO. 1803

Honolulu, Hawaii

RE: H.B. No. 430

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 430, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INTERNSHIPS,"

begs leave to report as follows:

The purpose and intent of this measure is to support internships and increase the number of individuals participating in internships.

Specifically, this measure:

(1) Authorizes the Department of Labor and Industrial Relations to expand on contracts with eligible private‑sector employers or registered apprenticeship programs to provide on-the-job training work experience; and

(2) Designates the State as the responsible employer for workers' compensation coverage for students and recent graduates in apprenticeship programs.

Your Committee received written comments in support of this measure from the University of Hawaii System, Department of Labor and Industrial Relations, Office of Hawaiian Affairs, Hawaii State Council on Developmental Disabilities, Department of Education, Hawaii Primary Care Association, Hawaii Pacific Health Hawaii, P‑20 Partnerships for Education, Kohala Coast Resort Association, Liberty Dialysis/Fresenius Kidney Care, The Chamber of Commerce of Hawaii, Hawaiian Lifeguard Association, Hawaii Forest Industry Association, Maui Chamber of Commerce, Hawaii Food Industry Association, Hawaii Lodging & Tourism Association, and one individual.

Your Committee finds that providing paid internships is one of several nationally recognized practices that correlates with student success beyond graduation by helping students build self‑confidence, acclimate to workplace culture, and develop essential industry-based skills.

Your Committee has amended this measure by:

(1) Establishing the State Internship and Workforce Development Program and specifying requirements for the program;

(2) Requiring the annual report on the program to include data on intern performance and retention rates along with program costs;

(3) Specifying that the appropriation in the measure shall be allocated for the following:

(A) The On-The-Job Training Work Experience Program;

(B) Implementation of the State Internship and Workforce Development Program;

(C) Ninety full-time equivalent staff positions in the Department of Education to support the internship programs for department high school students; and

(D) An unspecified number of full-time equivalent staff positions in the Department of Labor and Industrial Relations to support the internship programs; and

(4) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 430, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 430, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair