A Hawaii bill that would provide state funding to reimburse private employers for on-the-job training has moved through a House committee after passing in the House.  

“The legislature finds that internship and mentorship programs give students the chance to build communication skills, relationships, confidence, and gain valuable work experience that will build a stronger workforce,” the bill says. “The legislature further finds that expanding state-funded internships to include private-sector positions will benefit the State by promoting economic growth, fostering public-private collaborations, and supporting job creation.  State-funded private-sector internships will also create additional opportunities for interns to gain practical work experience and prepare for their future careers.”

The bill, SB327, was introduced Jan. 15 and passed the Senate Feb. 27. It was approved in the House Labor Committee on March 18 and was passed to the House Finance Committee March 21. 

Private sector businesses would be reimbursed up to $20 per hour for wages paid to train and supervise interns. 

Contracts via the Department of Labor and Industrial Relations shall be limited to 12 weeks for college or university students with an extension of up to 12 weeks if approved by the director of labor and industrial relations. Contracts for high school students would be six weeks with an extension of up to eight weeks during the summer break. 

The director will review an occupation’s skill requirements, the intern’s existing academic or occupational level, and the intern’s prior work experience when determining the length of the contract. 

An employer would be limited to five interns at a time, according to the bill. Businesses also would be required to pay workers at least $20 an hour for up to 30 hours a week for high school students or 40 hours during the summer break. 

College students would also be paid at least $20 per hour for a maximum of 40 hours per week. Students enrolled in at least two college or university courses wouldn’t be able to work more than 20 hours.  

Private sponsors would have to contribute 50% in cost sharing for benefits, including wages and fringe benefits. 

The Department of Labor and Industrial Relations would be required to submit an annual report to the legislature on state-funded internship programs for the private and public sectors. 

The reports would include outcomes, successes, and progress of the program, the number of interns who are enrolled in and have exited the program, and proposed legislation.

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Feature photo of Hawaii Capital building courtesy of jewhyte/iStock