SB327 authorizes the Department of Labor and Industrial Relations to create and administer a state-funded on-the-job training and internship program that includes private-sector employers and registered apprenticeship sponsors. The bill is aimed at expanding internship opportunities for Hawaii high school, college, and university students, with the stated goals of workforce development, job creation, and building pipelines into high-demand industries such as construction, education, and health. It is modeled in part on the existing Hele Imua program, but extends the concept to private employers through a cost-sharing structure.
Under the bill, the department may contract with eligible private employers or apprenticeship sponsors and reimburse them up to $20 per hour for wage-related training and supervision costs. The bill sets eligibility rules for interns, including age, Hawaii residency, enrollment or recent graduation requirements, and a criminal history record check. It also establishes employer requirements such as supervision, mentoring, safety compliance, recordkeeping, non-displacement of existing workers, and a 50 percent cost-sharing contribution for private sponsors. Contracts are limited in duration, and the department must adopt interim rules to implement the program and monitor intern progress.
The bill also amends Hawaii’s workers’ compensation law to make the State the responsible employer for workers’ compensation coverage when a student or recent graduate participates in the new internship program or certain school-approved work-based learning programs, subject to chapter 386. In addition, it requires annual reporting to the Legislature on program outcomes, participation, and proposed legislation, and it includes an appropriation from general revenues for fiscal years 2025-2026 and 2026-2027 to fund administration of the program.
The general sentiment reflected in the bill text and committee votes is favorable. The Legislature’s findings emphasize public purpose, workforce preparation, and economic development, and the bill advanced through Senate Labor and Technology and Senate Ways and Means with unanimous votes. That suggests broad support for expanding internship access and using state resources to leverage private-sector training opportunities.
The main points of potential contention are the use of public funds for private-sector internships, the State’s assumption of workers’ compensation responsibility, and the administrative requirements placed on employers and the department. The bill addresses these concerns by requiring cost sharing from private sponsors, limiting participation, requiring compliance with labor and safety laws, and tying the program to a public-purpose rationale. The delayed effective date of July 1, 3000 also stands out as unusual and may indicate the bill is a placeholder or draft rather than an immediately operative measure.
SB327 would add new provisions to chapter 394, Hawaii Revised Statutes, creating a private-sector on-the-job training work experience program administered by the Department of Labor and Industrial Relations. It would also amend section 302A-430 to extend workers’ compensation coverage rules to students and recent graduates in the new program, making the State the responsible employer for coverage purposes. The bill further requires annual reporting to the Legislature and appropriates general funds for program administration, thereby expanding state involvement in internship placement, oversight, and funding.
The bill appears to have strong support in committee, passing Senate Labor and Technology 3-0 and Senate Ways and Means 13-0, both with amendments. The findings section frames the measure as a workforce-development and economic-growth initiative, and the lack of recorded opposition in the available vote history suggests a generally positive reception. Overall, the tone is pro-internship, pro-workforce pipeline, and supportive of public-private collaboration.
The most notable issues are whether state money should subsidize private-sector internships, how much risk the State should assume by providing workers’ compensation coverage, and whether the reimbursement and reporting structure is sufficiently controlled. Employers may also view the supervision, mentoring, recordkeeping, and non-displacement requirements as burdensome, while labor or worker-protection concerns could focus on ensuring internships do not replace regular jobs or weaken collective bargaining rights. The bill attempts to balance these concerns through cost sharing, eligibility limits, safety and labor-law compliance, and departmental oversight.