RELATING TO WORKFORCE DEVELOPMENT.

HB1859

HOUSE OF REPRESENTATIVES

H.B. NO.

1859

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to Workforce development.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
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The legislature finds that Hawaii is at a
critical demographic and economic crossroads.
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The 2025 Holomua Collective Affordability
Survey surveyed over three thousand two hundred local working residents, and
found that seventy-five per cent of respondents are currently considering, or
are unsure if they will have to, relocate to a less expensive state, with
fifty-seven per cent of those considering a move within the next five years.
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These numbers exemplify the widening gap
between local wages and the cost of living.
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In 2023, the asset limited, income
constrained, employed (ALICE) household survival budget for a family of four
was $110,112, and forty-five per cent of households fell below this threshold.

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The
legislature further finds that the State's youth face a precarious future.
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The Hawaii Workforce Funders Collaborative
reports that nearly thirty per cent of the approximately one hundred seventy
thousand young residents estimated to enter the State's workforce over the next
decade will lack viable opportunities to build a sustainable career in the
state.
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To prevent a permanent loss of
local talent, the State must bridge the gap between education and employment by
investing in robust career counseling infrastructure and work-based learning opportunities
that connect students to high-quality, local opportunities.

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The
legislature recognizes that efforts from multiple state departments and
agencies, nonprofit partners, and labor unions have made, and continue to make
significant foundational progress in increasing workforce development
opportunities for local working residents, including through the adoption of
the State Unified Plan by the department of labor and industrial relations and
the workforce development council.
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This
collaborative framework has begun to bring together education, industry, labor,
and social services to connect federal Workforce Innovation and Opportunity Act
funding with state resources.
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However,
achieving the vision of a resilient, inclusive economy requires transitioning
from a temporary collaborative effort to a codified, long-term aligned strategy
and goal.

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The
legislature further finds that successful models in states such as Idaho,
Maine, Minnesota, and Virginia demonstrate that comprehensive workforce
strategies anchored by a common, statewide North Star goal are essential for
long-term alignment and accountability.
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By
establishing clear metrics and a whole‑of‑government approach,
these states have integrated funding streams and established momentum through
data collection, sharing, and analysis.

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Despite
considerable effort and growth over the past decade, the State's workforce
development landscape lacks a common long-term strategy.
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The establishment of a common long‑term
strategy can provide the framework, funding, and motivation for all
stakeholders to move in concert toward a shared definition of success, and will
improve the State's talent pipelines in high-demand, high-wage occupations.

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Accordingly,
the purpose of this Act is to require the workforce development council to:

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(1)
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Recommend to the governor, for
inclusion into the state unified plan, a comprehensive statewide workforce
strategy; and

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(2)
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Facilitate
the alignment of workforce development efforts and programs conducted by state
departments and agencies to achieve the state unified plan and the
comprehensive statewide workforce strategy.

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SECTION

2
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Section 202-2,
Hawaii Revised Statutes, is amended to read as follows:

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�202-2
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Duties of council.
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(a)
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In accordance with
P.L.
113-128 (29 U.S.C. section 3111)
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the
workforce development council shall assist the governor in:

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(1)
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The
development, implementation, and modification of the state plan consistent with
P.L. 113-128 (29 U.S.C. section 3112);

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(2)
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The
review of statewide policies, statewide programs, and recommendations on
actions that should be taken by the State to align workforce development
programs in a manner that supports a comprehensive and streamlined workforce
development system in the State, including consideration of programs and
activities of one-stop partners that are not core programs;

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(3)
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The
development and continuous improvement of the workforce development system in
the State;

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(4)
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The
development and updating of comprehensive state performance accountability
measures, including state adjusted levels of performance, to assess the
effectiveness of the core programs in the State as required under P.L. 113-128
(29 U.S.C. section 3141(b));

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(5)
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The
identification and dissemination of information on best practices for the
effective operation of one-stop centers, and the development of effective local
boards and effective training programs;

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(6)
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The
development and review of statewide policies affecting the coordinated
provision of services through the State's one-stop delivery system;

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(7)
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The
development of strategies for technological improvements to facilitate access
to, and improve the quality of, services and activities provided through the
one-stop delivery system;

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(8)
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The
development of strategies for aligning technology and data systems across
one-stop partner programs to enhance service delivery and improve efficiencies
in reporting on performance accountability measures, including the design and
implementation of common intake, data collection, case management information,
and performance accountability measurement and reporting processes, and the
incorporation of local input into the design and implementation, to improve
coordination of services across one-stop partner programs;

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(9)
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The
development of allocation formulas for the distribution of funds for employment
and training activities for adults, and youth workforce investment activities,
to local areas as permitted under P.L. 113-128 (29 U.S.C. sections 3163(b)(3),
3173(b)(3));

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(10)
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The
preparation of annual reports as described in P.L. 113-128 (29 U.S.C. section
3141(d));

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(11)
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The
development of the statewide workforce and labor market information system
described in the Wagner‑Peyser Act (29 U.S.C. section 49l-2(e));

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(12)
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The
development of other policies as may promote statewide objectives for, and
enhance the performance of, the workforce development system;

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(13)
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Creating
public awareness and understanding of the State's workforce development plans,
policies, programs, and activities, and promoting the plans, policies,
programs, and activities as economic investments;

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(14)
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Submitting
annual reports of the council's activities and recommendations to the governor
and the legislature, and posting the annual reports electronically on the
council's website no later than twenty days before the convening of each
regular session.
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Annual reports shall
include:

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(A)
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The
status of the comprehensive state plan for workforce development; and

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(B)
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Information
regarding the workforce development programs offered throughout the State, the
number of individuals placed in high-demand or high‑growth employment
through workforce development programs by departments, the type or category of
employment garnered, and allocations of state, federal, and other funding to
achieve placements into higher-skilled jobs;

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(15)
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Evaluating
the state workforce development plan in terms of how its purposes, goals, and
objectives have been carried out throughout the State;

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(16)
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Providing
technical assistance to local workforce development boards and other similar
organizations;

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(17)
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Carrying
out required functions and duties related to workforce development of any
advisory body required or made optional by federal legislation;

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(18)
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The
review and certification of local workforce development boards and plans
prepared by local workforce development boards for the use of federal workforce
development funds as provided in P.L. 113‑128 (29 U.S.C. section
3122(b)-(c)); and

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(19)
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Commenting
on the measures taken pursuant to section 122(c)(17) of the Carl D. Perkins
Career and Technical Education Act of 2006, P.L. 109-270.

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(b)
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Notwithstanding any law to the contrary, in
carrying out its duties pursuant to subsection (a), the workforce development
council shall recommend to the governor, for inclusion in the state unified
plan, a comprehensive statewide workforce strategy to ensure that all people of
the State have a pathway to a career that enables them to learn, work, and
thrive in the State and contribute to a vibrant local economy grounded in
community values by 2045.

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The
comprehensive statewide workforce strategy shall serve as a long-term framework
to unify state and county workforce efforts under a common goal with aligned
priorities and shall be incorporated into, and guide, each state unified plan
and any modification thereof, regardless of the applicable planning period.

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The
comprehensive statewide workforce strategy shall include, at a minimum,
specific plans to achieve and metrics to evaluate progress in the following
areas:

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(1)
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Increasing work-based learning
infrastructure and access;

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(2)
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Increasing economic resilience and
opportunity;

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(3)
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Reducing underemployment and
improving job quality;

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(4)
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Expanding living-wage employment
opportunities;

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(5)
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Expanding industry-led sectoral
partnerships; and

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(6)
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Increasing job retention.
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SECTION

3
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Section 202-5,
Hawaii Revised Statutes, is amended to read as follows:

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�202-5
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Organizational relationships
.
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(a)
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The workforce
development council is placed within the department of labor and industrial
relations for administrative purposes and shall act in an advisory capacity to
the governor.

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(b)
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The workforce development council shall be
responsible for facilitating the alignment of workforce development efforts and
programs conducted by state departments and agencies to achieve the state
unified plan and the comprehensive statewide workforce strategy recommended
pursuant to section 202-2(b).
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State
departments and agencies shall, to the extent permitted by law, assist the
workforce development council by providing data and information necessary to
support periodic evaluation of the comprehensive statewide workforce strategy.

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As
used in this section, "facilitating the alignment" includes convening
and supporting interagency planning, identifying duplicative or complementary
efforts, and recommending policy or administrative changes consistent with the
state unified plan and the comprehensive workforce strategy.
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SECTION 4.
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New statutory material is underscored.

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SECTION 5.
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This Act shall take effect upon its approval.

INTRODUCED
BY:

_____________________________

Report Title:

WDC;
Workforce Development; Comprehensive Statewide Workforce Strategy; Interagency
Alignment; Facilitation

Description:

Requires the Workforce Development Council to recommend to the
Governor, a comprehensive Statewide Workforce Strategy to inclusion in the
State Unified Plan and be responsible for facilitating the alignment of
workforce development efforts and programs conducted by state departments and
agencies to achieve the State Unified Plan and the Comprehensive Statewide
Workforce Strategy.

The summary description
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not legislation or evidence of legislative intent.