RELATING TO THE WORKFORCE PELL GRANT PROGRAM.

HB2383

HOUSE OF REPRESENTATIVES

H.B. NO.

2383

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the workforce pell grant program
.

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 the United
States Congress has authorized a federal workforce Pell grant program under title
IV of the Higher Education Act of 1965, as amended, to expand access to
short-term workforce education and training aligned with in-demand and
high-wage occupations.
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The federal
workforce Pell grant program assigns the states a formal role in identifying
and approving eligible short-term workforce education programs and requires
coordination among state workforce agencies, postsecondary institutions, and
the United States Department of Education.

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The
legislature further finds that effective participation in the federal workforce
Pell grant program requires clear state definitions, a transparent
authorization process, safeguards to protect students and taxpayers, and secure
data-sharing mechanisms to meet federal performance and accountability
requirements.
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The legislature believes
that Hawaii must modernize its workforce credential pathways and data systems
to ensure that residents can access federal workforce Pell grant funding and
that participating programs remain eligible under federal law.

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The
purpose of this Act is to establish a comprehensive statewide framework for
workforce Pell grant program implementation that:

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(1)
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Creates a formal state authorization and
approval process for workforce Pell-eligible programs;

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(2)
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Defines key terms for the implementation of
the workforce Pell grant program, including in-demand and high-wage occupations
and stackable credentials;

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(3)
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Requires stackable credential pathways within
the university of Hawaii system;

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(4)
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Enables secure, privacy-protected data sharing
and outcomes reporting;

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(5)
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Establishes student and consumer protections
consistent with federal intent; and

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(6)
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Positions the State to respond efficiently to
federal regulations and timelines.

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SECTION 2.
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The Hawaii Revised Statutes is amended by
adding a new chapter to be appropriately designated and to read as follows:

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Chapter

Workforce pell grant program implementation

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�
-1
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Definitions.
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As used in this chapter, unless the context
clearly requires otherwise:

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"Authorized
state entity" means the workforce development council, acting through the
workforce Pell grant program approval committee established pursuant to section
� -2.

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"Correspondence
course" shall have the same meaning as in title 34 Code of Federal
Regulations section 600.2.

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"High-wage
occupation" means an occupation for which the median wage in the relevant
geographic region of the State is at or above the statewide median wage for all
occupations, as determined annually by the department of labor and industrial
relations.

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"In-demand
industry sector or occupation" means an industry sector or occupation
identified as in demand by the workforce development council pursuant to the
federal Workforce Innovation and Opportunity Act, as amended, and updated at
least annually.

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"Participating
institution" means a title IV-eligible postsecondary institution that
offers a short-term workforce education program in the State or enrolls a
resident of the State in such a program, regardless of whether the institution
maintains a physical presence in the State.

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"Short-term
workforce education program" means an education or training program
offered by an accredited, title IV-eligible institution that:

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(1)
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Is at least eight weeks in length but no more
than fifteen weeks in length;

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(2)
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Consists of not fewer than one hundred fifty
and not more than five hundred ninety-nine clock hours, or the equivalent as
permitted under federal law;

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(3)
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Is not a correspondence course; and

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(4)
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Otherwise meets applicable federal workforce
Pell requirements.

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"Stackable
credential" means a recognized postsecondary credential that:

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(1)
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Is industry-validated and portable across more
than one employer;

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(2)
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Articulates for academic credit into a
certificate, associate degree, or baccalaureate degree within the university of
Hawaii system; and

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(3)
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Is part of a documented career pathway
approved by the authorized state entity.

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"Title
IV" means the title IV of the Higher Education Act of 1965, as amended.

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"Workforce
Pell grant program" means the federal workforce Pell grant program
established under title IV of the Higher Education Act of 1965, as amended.

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� -2

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Workforce Pell grant program approval committee;
establishment; composition; duties.
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(a)

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There is established within the
workforce development council, constituted pursuant to section 202-1, the workforce
Pell grant program approval committee.

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(b)
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The committee shall consist of:

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(1)
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The director of labor and industrial
relations, or the director's designee;

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(2)
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The president of the university of Hawaii, or
the president's designee;

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(3)
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The superintendent of education, or the
superintendent's designee;

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(4)
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Two employer representatives, to be appointed
by the chair of the workforce development council; and

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(5)
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The members of the senate and the house of
representatives of the legislature who serve on the workforce development
council, who shall serve in a nonvoting advisory capacity.

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(c)
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The committee shall:

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(1)
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Establish an application and review process
for short-term workforce education programs seeking workforce Pell grant program
eligibility;

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(2)
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Review programs submitted by participating
institutions and determine whether each program:

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(A)
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Prepares students for an in-demand or
high-wage occupation;

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(B)
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Confers a stackable credential;

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(C)
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Meets federal requirements relating to program
length, accreditation, institutional eligibility, and operational history;

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(D)
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Satisfies applicable educational prerequisites
for professional licensure or certification in industries where such licensure
or certification is required or customary; and

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(E)
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Is supported by employer validation of
required skills and competencies;

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(3)
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Recommend approved programs to the governor
for submission to the United States Department of Education;

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(4)
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Require annual renewal or update of state
authorization; and

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(5)
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Conduct ongoing monitoring and review of
authorized programs.

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� -3

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Authorization required; prohibited acts.
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(a)
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A
participating institution shall not:

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(1)
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Disburse workforce Pell grant program funds
for a short-term workforce education program to a student residing in the
State; nor

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(2)
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Advertise, market, or represent that workforce
Pell grant program funding is available for the short-term workforce education
program, unless the program has received authorization from the authorized
state entity and all required federal approvals.

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(b)
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A violation of this section shall constitute
grounds for withdrawal of state authorization under section � -5.

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� -4

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Conditions of authorization; student
protections.
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The authorized state
entity shall not authorize a short-term workforce education program unless the
entity determines that:

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(1)
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Instruction is not provided by an unaccredited
third-party provider;

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(2)
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The participating institution does not offer
or promote private education loans or income-share agreements for the program,
except for institutional no-interest payment plans;

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(3)
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Tuition and mandatory fees charged to a
student are reasonable and proportionate to the program length, expected
earnings outcomes, and market comparables, and are fully disclosed to students,
except where excess costs are paid by an employer, labor-management
partnership, or other third party;

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(4)
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The short-term workforce education program has
been offered for at least one year prior to application for authorization;

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(5)
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The institution publicly posts program
information, including the credential awarded, occupations prepared for,
competencies taught, and any third-party endorsements;

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(6)
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The institution provides written disclosures
to prospective students and obtains documented acknowledgement of receipt;

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(7)
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Students have access to academic transcripts
for completed coursework; provided that nothing in this paragraph shall
prohibit an institution from charging a reasonable fee for the processing of
official transcript copies; and

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(8)
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The short-term workforce education program is
credit-bearing, or the institution demonstrates how the program will be
transcribed and accepted for credit toward the next credential in the pathway.

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� -5

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Withdrawal of authorization.
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The authorized state entity shall
withdraw authorization if a participating institution:

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(1)
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Fails to submit required annual updates or
renewals;

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(2)
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No longer satisfies any condition of
authorization under this chapter; or

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(3)
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Is found by a court, administrative tribunal,
or the attorney general to have engaged in an unfair or deceptive act or
practice related to the program.

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� -6

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University of Hawaii; stackable
credential pathways; establishment.
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(a)

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The university of Hawaii shall develop
and maintain system-wide stackable credential pathways linking short-term
workforce credentials to higher-level certificates and degrees.

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(b)
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The university of Hawaii shall annually
publish pathway maps by industry sector and report updates to the workforce
development council.

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� -7
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Data sharing; outcomes reporting;
confidentiality.
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(a)
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The department of labor and industrial
relations shall, pursuant to written data-sharing agreements and applicable
privacy protections, provide wage record data to the university of Hawaii for workforce
Pell grant program compliance and evaluation.

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(b)
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The university of Hawaii shall collect and
report program-level data on enrollment, completion, job placement, and
earnings as required under applicable federal law.

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(c)
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The workforce development council shall
publish an annual workforce Pell grant program outcomes report; provided that
outcomes may be aggregated where necessary to protect student privacy or comply
with federal disclosure limitations.

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(d)
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Information produced pursuant to this section
and designated as confidential shall be protected from public disclosure
consistent with chapter 92F.

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� -8

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Early warning system; corrective action.
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(a)
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The
university of Hawaii shall monitor program performance against federal
workforce Pell grant program benchmarks, including completion, job placement,
and earnings thresholds, as defined under applicable federal law and
regulations.

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(b)
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Programs at risk of noncompliance shall submit
corrective action plans within sixty days.

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� -9

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Program limitations; requirements.
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Nothing in this chapter shall be construed to
impose or increase occupational licensing or certification requirements beyond
those otherwise required by law.

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� -10

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Rulemaking authority.
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The workforce development council may
adopt rules pursuant to chapter 91 as necessary to implement this chapter."

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SECTION 3.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Workforce
Development; Workforce Pell Grant Program; University of Hawaii; Department of
Labor and Industrial Relations

Description:

Establishes
a statewide framework for the implementation of the federal Workforce Pell
Grant Program to provide financial aid for certain short-term workforce
education and training programs.
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Establishes
a Workforce Pell Grant Program Approval Committee within the Workforce
Development Council.

The summary description
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not legislation or evidence of legislative intent.