RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.

HB2411

HOUSE OF REPRESENTATIVES

H.B. NO.

2411

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the department of business, economic development, and tourism
.

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

����
SECTION 1.
�
The legislature finds that Hawaii's long
‑
term
economic competitiveness depends on a skilled, adaptable, and locally trained
workforce aligned with the needs of the State
'
s priority growth industries.
�
Employer
‑
led, demand
‑
driven
sector partnerships are nationally recognized for aligning education, training,
and workforce systems with real
‑
time industry needs and
strengthening workforce readiness.

����
The legislature further finds that
sector partnerships in Hawaii began in 2017, when the Chamber of Commerce
Hawaii, in partnership with the university of Hawaii and philanthropic funders,
launched an employer
‑
driven model to address skills gaps, workforce
shortages, and misalignment between employers and education and training
systems.
�
Since then, Hawaii
'
s sector partnerships have
grown into six active, employer
‑
led industry collaboratives
that convene employers, industry associations, education and training
providers, workforce agencies, and community partners to identify real
‑
time
skill needs, define in
‑
demand occupations, and advance industry
‑
informed
workforce solutions.

����
The legislature also finds that the
State has recently invested in jobseeker
‑
focused workforce programs,
including internship and placement initiatives that help individuals gain work
experience and employment.
�
These
programs are important but differ from employer
‑
led sector partnerships,
which organize employer engagement, assess workforce needs, and align education
and training systems with actual labor
‑
market demand.

����
The
legislature additionally finds that sector partnerships strengthen the
workforce ecosystem by improving employer participation, ensuring programs
reflect industry needs, and supporting worker retention and advancement�not
only initial job placement.
�
Effective
sector partnerships also generate fiscal and economic benefits by reducing
reliance on out
‑
of
‑
state recruitment, improving
retention of local workers, leveraging private and federal funding, and
strengthening local talent pipelines.

����
Furthermore, the legislature finds
that these coordination and alignment activities are ongoing and cannot be
effectively supported through one
‑
time or episodic general
‑
fund
appropriations.

����
Accordingly, the purpose of this Act
is to establish within the department of business, economic development, and
tourism a Hawaii employer-led sector partnerships special fund to provide
stable and diversified funding for employer-led, demand-driven sector
partnerships aligned with the State's economic priorities.

����
SECTION 2.
�
Chapter 201, Hawaii Revised Statutes, is
amended by adding two new sections to part I to be appropriately designated and
to read as follows:

����
"
�201-A
�
Hawaii
employer-led sector partnerships special fund.
�
(a)
�
There is established within the state
treasury the Hawaii employer-led sector partnerships special fund to be
administered by the department.
�
The special
fund shall consist of:

����
(1)
�
Moneys
appropriated by the legislature;

����
(2)
�
Federal funds
and reimbursements;

����
(3)
�
Grants, gifts,
donations, and private contributions; and

����
(4)
�
Any other moneys
received for the purposes of this section.

����
(b)
�
Moneys in the Hawaii employer-led sector
partnerships special fund shall be used to support employer-led, demand‑driven
sector partnerships, including but not limited to:

����
(1)
�
Funding
employer-led sector partnership activities and workforce pipeline development;

����
(2)
�
Supporting
curriculum development, credentialing, internships, apprenticeships, and other
work-based learning aligned with industry demand;

����
(3)
�
Providing
technical assistance, convening support, and capacity building to
industry-driven partnerships and intermediaries;

����
(4)
�
Data
collection, labor-market analysis, performance measurement, and evaluation;

����
(5)
�
Leveraging
federal or private matching funds; and

����
(6)
�
Supporting
industry and employer partners that assist in convening sector partnerships,
including stipends, coordination support, meeting facilitation, or other modest
resources necessary to engage employers and advance sector-specific workforce
initiatives.

����
(c)
�
Moneys in the Hawaii employer-led sector
partnerships special may be expended directly by the department or through
contracts, grants, or memoranda of understanding with public or private
entities, including chambers of commerce, industry associations, employer
organizations, nonprofit organizations, labor organizations, and educational
institutions, to carry out the purposes of this section.

����
(d)
�
The department shall enter into memoranda of
understanding, contracts, or grants with public or private entities, including
chambers of commerce, industry associations, nonprofit organizations, labor
organizations, and educational institutions, to carry out the purposes of this
section.

����
(e)
�
The department may coordinate with the
following to ensure alignment with statewide plans and to avoid duplication of
workforce service delivery:

����
(1)
�
The department
of labor and industrial relations;

����
(2)
�
The department
of education;

����
(3)
�
The workforce
development council;

����
(4)
�
The university
of Hawaii system; and

����
(5)
�
Any other state
agency.

����
(f)
�
No later than twenty days prior to the
convening of each regular session, the department shall submit an annual report
to the legislature that includes:

����
(1)
�
Expenditures
from the fund;

����
(2)
�
Outcomes of
sector partnership activities; and

����
(3)
�
Performance
measures demonstrating progress in workforce alignment with priority
industries.

����
�
201-B
�
United workforce plan; sector
partnerships.
�
The department
shall coordinate its sector partnership activities with the workforce
development council established under chapter 202 to ensure alignment with the
State's unified workforce plan and prevent duplication of workforce training
and employment services while retaining administrative responsibility for the
Hawaii employer-led sector partnerships special fund under section 201-A.
"

����
SECTION
3
.
�
There
is appropriated out of the general revenues of the State of Hawaii the sum of $
or so much thereof as may be necessary for fiscal year 2026-2027 to be
deposited into the Hawaii employer-led sector partnerships special fund.

����
SECTION
4
.
�
There
is appropriated out of the Hawaii employer-led sector partnerships special fund
the sum of $ or so
much thereof as may be necessary for fiscal year 2026-2027 for the purposes of
the special fund.

����
The sum appropriated shall be expended by
the department of business, economic development, and tourism for the purposes
of this Act.

����
SECTION 5.
�
In codifying the new sections added by
section 2 of this Act, the revisor of statutes shall substitute appropriate
section numbers for the letters used in designating the new sections in this
Act.

����
SECTION
6.
�
New statutory material is
underscored.

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SECTION 7.
�
This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

DBEDT;
Hawaii Employer-Led Sector Partnerships Special Fund; Appropriation

Description:

Establishes
and appropriates funds into and out of the Hawaii Employer-Led Sector
Partnerships Special Fund.
�
Requires the
Department
of Business, Economic Development, and Tourism to coordinate its sector
partnership activities with the Workforce Development Council.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.