RELATING TO INTERNSHIP PROGRAMS.

HB2468

HOUSE OF REPRESENTATIVES

H.B. NO.

2468

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to Internship Programs
.

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

����
SECTION
1
.
�
Section 76-16, Hawaii Revised Statutes, is
amended by amending subsection (h) to read as follows:

����
"(h)
�

The director shall establish rules to implement this section that shall
be in accordance with the following:

����
(1)
�
Whenever
a position exempted under subsection (b) or (c) is no longer exempted from the
civil service, normal civil service recruitment procedures shall apply, unless
the incumbent is to be retained without the necessity for examination by action
of the legislature; provided that in such event, the incumbent shall be
retained, but only if the incumbent meets the minimum qualification
requirements of the position; [
and
]

����
(2)
�
The
manner for setting the compensation of incumbents upon their inclusion in the
classification systems shall be fair and equitable in comparison to the
compensation of other incumbents with comparable experience in the same or
essentially similar classes; provided that the compensation of incumbents who
are in the same bargaining unit, prior to and after their inclusion in the
classification systems, shall be in accordance with the applicable collective
bargaining agreement[
.
]
; and

����
(3)
�
Experience
gained by an intern participating in the internship program established
pursuant to section 394-11 shall be applied towards the experience needed to
meet the minimum qualification requirements under this chapter for civil
service positions of a similar level and scope to the internship.
"

����
SECTION
2
.
�
Section 394-10, Hawaii Revised Statutes, is
amended to read as follows:

����
"
[
[
]
�394-10[
]
]
�
On-the-job training work experience program;
private sector.
�
(a)
�

The department of labor and industrial relations may enter into
contracts with employers or
[
registered
apprenticeship program
] sponsors

and trade organizations
in the
private sector to provide on-the-job training to eligible interns; provided
that any participating [
apprenticeship program
] sponsor in the private
sector shall only offer to eligible interns on-the-job training in [
public
]

private
sector projects.
�
The
department may provide to the employers or sponsors up to $20.00 per hour in
reimbursements for
an intern's
wages only for the costs of training and
supervising an intern.
�
The employers or
sponsors shall not be required to provide documentation of these costs.

����
(b)
�

Eligible employers or sponsors shall demonstrate compliance with Hawaii
compliance express or any successor program established to facilitate
compliance with section 103D‑310(c).

����
(c)
�
Contracts
with employers or sponsors

under this section shall be limited to a period of twelve weeks for college or
university students, with an extension of up to twelve additional weeks if
approved by the director of labor and industrial relations, and six weeks for
high school students, with an extension of up to eight weeks during the summer
break.
�
In determining the appropriate
length of the contract, the director shall consider the:

����
(1)
�
Occupation's
skill requirements;

����
(2)
�
Intern's
existing academic and occupational skill levels; and

����
(3)
�
Intern's
prior work experience.

����
(d)
�
The employer or sponsor shall comply with
state and federal employment laws pursuant to chapter 387 and the Fair Labor
Standards Act of 1938, as amended.

����
(e)
�
The department of labor and industrial
relations shall adopt interim rules, which shall be exempt from chapter 91, to
develop and implement the program; provided that the interim rules shall remain
in effect until the adoption of rules pursuant to chapter 91 to allow the
department to:

����
(1)
�
Ensure
that participating interns are eligible pursuant to subsection (f) and
participating employers or sponsors are eligible pursuant to subsection (g);

����
(2)
�
Ensure
that interns are referred by the department to employers or sponsors and not
directly by the employers or sponsors;

����
(3)
�
Reimburse
employers or sponsors up to $20.00 per hour for
an intern's
wages only
for the extraordinary costs of providing intern training and supervision;

����
(4)
�
Develop
a training plan for participating interns of the program in collaboration with
the intern and employer or sponsor;

����
(5)
�
Monitor
each intern's progress in the program to ensure that training plan objectives
are being met;

����
(6)
�
Consult
with interns and onsite supervisors to address any problems affecting the
training plan;

����
(7)
�
Terminate
an internship, if necessary, due to problems at the worksite caused by either
the intern or the employer or sponsor; and

����
(8)
�
[
Limit
]

Determine the maximum number of interns an
employer or sponsor [
participation
to no more than five interns
]
may retain
at one time, as tracked by
the federal employer identification number of the employer or sponsor.

����
(f)
�
The department of labor and industrial
relations shall develop eligibility criteria for interns, including
requirements that the intern:

����
(1)
�
Be
sixteen years of age or older;

����
(2)
�
Be
a Hawaii resident;

����
(3)
�
Be
currently enrolled:

���������
(A)
�
In
a public high school
,
or has earned a high school diploma or its
equivalent [
within one year of applying for the internship
]; or

���������
(B)
�
In
an accredited college or university
,
or has earned a college or
university degree [
within one year of applying for the internship
];

����
(4)
�
Have, or has graduated with, a cumulative
grade point average of 2.5 or higher, on a scale of 4.0 or its equivalent; and

����
(5)
�
Is
not an apprentice in a registered apprenticeship program or journey worker;

provided
that the department of labor and industrial relations may conduct criminal
history background checks as appropriate.

����
(g)
�
The department of labor and industrial
relations shall develop eligibility criteria for employers or sponsors,
including requirements that the employer or sponsor:

����
(1)
�
Provide
onsite work experience that complies with each intern's training plan and
includes the daily supervision, training, and guidance necessary to enable each
intern to develop work habits and job‑specific skills that are essential
for employment;

����
(2)
�
Provide
interns with the same working conditions as other employees in similar
occupations;

����
(3)
�
Consult
the department to obtain assistance when an intern requires support services to
effectively complete an assigned task;

����
(4)
�
Pay
[
no
]
not
less than $20.00 per hour for a maximum of thirty hours
per week for high school students; provided that the maximum hours may be
increased to forty hours during the summer break;

����
(5)
�
Pay
[
no
]
not
less than $20.00 per hour for a maximum of forty hours
per week; provided that the maximum hours for college or university students
who are enrolled in at least two college or university courses shall not exceed
twenty hours;

����
(6)
�
Provide
each intern with a mentor to give on-the-job guidance and to answer routine
questions about the workplace;

����
(7)
�
Ensure
that interns do not displace currently employed workers, reduce the hours of
those currently employed, infringe on the opportunities for promotion of
regular employees, or replace the work of employees who have experienced
layoffs;

����
(8)
�
Ensure
that interns' on-the-job training does not impair existing contracts for
services or collective bargaining agreements;

����
(9)
�
Ensure
that the worksite, supervisor, and participants are available for monitoring by
the department;

���
(10)
�
Ensure
that the worksite complies with all occupational safety and health standards
established under state and federal law;

���
(11)
�
Maintain
time sheets and attendance records for each intern and prepare intern
evaluations and any other reports required by the department;

���
(12)
�
Notify
the department on a timely basis if an intern:

���������
(A)
�
Is
injured at the worksite;

���������
(B)
�
Is
absent without good cause;

���������
(C)
�
Performs
poorly on job assignments;

���������
(D)
�
Refuses
to participate in work or work-related activities; or

���������
(E)
�
Is
not making satisfactory progress in the program or on the job;

���
(13)
�
For
[
private
] sponsors, contribute fifty per cent [
in cost sharing
benefits, including wages and fringe benefits;
]
of each intern's wages;

and

���
(14)
�
Indemnify
and hold harmless the State of Hawaii and its officers, agents, and employees
from and against any and all claims arising out of or resulting from activities
carried out or projects undertaken with funds provided under this section and
procure sufficient insurance to provide this indemnification.

����
(h)
�

The department of labor and industrial relations may contract with trade
organizations for different industry sectors without regard to chapters 103D
and 103F to:

����
(1)
�
Coordinate
internship placements with the department of labor and industrial relations and
employers or sponsors; and

����
(2)
�
Provide
administrative support to employers or sponsors who would otherwise lack the
capacity to participate in the program;

provided
that each contract shall expressly state that the trade organization shall
indemnify and hold harmless the State of Hawaii and its officers, agents, and
employees from and against any and all claims arising out of or resulting from
activities carried out or projects undertaken by the trade organization with
funds provided under this section and procure sufficient insurance to provide
this indemnification.

����
(i)
�

As used in this section:

����
"Sponsor" means any person,
employer, association, committee, or organization operating an apprenticeship
program and in whose name the program is registered with the department of
labor and industrial relations.

����
"Trade organization" means a
not-for-profit entity registered with the division of business registration of
the department of commerce and consumer affairs, that supports and represents
companies in a particular industry.
"

����
SECTION
3
.
�
Section 394-11, Hawaii Revised Statutes, is
amended to read as follows:

����
"
[
[
]
�394-11[
]
]
�
State internship and workforce development program.
�
(a)
�

There is established within the department of labor and industrial
relations the state internship and workforce development program.
�
The department of labor and industrial
relations shall collaborate with the department of human resources development
to process all public program applications and place interns in temporary or
permanent positions at state executive branch departments, agencies, or
programs.
�
The program shall:

����
(1)
�
Provide
paid internship opportunities within various state departments and agencies;

����
(2)
�
Prioritize
placement in departments with significant workforce shortages; and

����
(3)
�
Include
comprehensive training, mentorship, and evaluation components.

����
(b)
�

Selection of internship participants shall be based upon:

����
(1)
�
Academic
achievement or relevant work experience;

����
(2)
�
Interest
in public service careers; and

����
(3)
�
Alignment
with departmental workforce needs.

����
(c)
�

As part of the program, internship participants shall:

����
(1)
�
Attend
and actively participate in all required work experience training sessions;

����
(2)
�
Perform
assigned duties and responsibilities in accordance with program guidelines; and

����
(3)
�
Adhere
to workplace policies and procedures.

����
(d)
�

As part of the program, coordinating agency work sites shall:

����
(1)
�
Provide
meaningful and adequate work experience to help interns meet the
minimum
qualification
requirements for employment in the relevant position[
;
]
,
including employment pursuant to chapter 76;

����
(2)
�
Conduct
regular performance evaluations of interns and provide feedback to the
coordinating agency;

����
(3)
�
Collaborate
with the department of labor and industrial relations to create career pathways
for interns; and

����
(4)
�
Ensure
that viable and vacant positions relative to the interns' field of study are
available for them to participate in this program.

����
(e)
�

The department of [
labor and industrial relations
]
human
resources development
shall:

����
(1)
�
Ensure
that the experience gained through the program [
qualifies
]
helps

participants to [
apply
]
qualify
for vacant positions of a similar
level and scope within the hosting department[
;
]
, including recognizing
the experience as meeting part of the minimum qualification requirements of
employment in a position pursuant to chapter 76;

����
(2)
�
Develop
standardized guidelines to align internship duties with the qualifications
required for full-time employment;

����
(3)
�
Provide
ongoing support to coordinating agencies to ensure compliance with program
objectives; and

����
(4)
�
Collaborate
with coordinating agencies to create career pathways for interns.

����
(f)
�

As part of the program, participants shall receive opportunities for
professional development and skills training.

����
(g)
�

Before the first day of each internship, the department of labor and
industrial relations shall provide the department of human resources
development with:

����
(1)
�
The
name of the intern;

����
(2)
�
The
state executive branch department, agency, or program to which the intern is
assigned;

����
(3)
�
The
expected start and end dates of the internship; and

����
(4)
�
Any
other relevant information that the department of human resources development
may require to assist the intern in pursuing future employment with the state
executive branch.

����
(h)
�

The department of labor and industrial relations and department of human
resources development shall develop guidelines for participation in the
program, including requirements that the intern:

����
(1)
�
Be
sixteen years of age or older;

����
(2)
�
Be
a Hawaii resident;

����
(3)
�
Be
currently enrolled:

���������
(A)
�
In a public high school, or has earned a high school diploma or
its equivalent; or

���������
(B)
�
In an accredited college or university, or has earned a college
or university degree;

����
(4)
�
Have,
or has graduated with, a cumulative grade point average of 2.5 or higher on a
scale of 4.0 or its equivalent; and

����
(5)
�
Is
not an apprentice in a registered apprenticeship program or journey worker;

provided
that the department of labor and industrial relations or department of human
resources development may conduct criminal history background checks as
appropriate.

����
(i)
�

The director of human resources development shall apply the experience
gained by an intern participating in the program towards the experience needed
to meet the minimum qualification requirements under chapter 76 for civil
service positions of a similar level and scope to the internship.

����
[
(h)
]
(j)
�
For the purposes of this section:

����
"Coordinating agency" means the
participating State of Hawaii department, agency, or office hosting and
employing an intern program participant.

����
"Eligible participant" means an
individual who meets established guidelines for participation in the program[
,
]

developed pursuant to subsection (h),
including [
recent
]
public
high school students,
high school graduates, college students, and [
post-graduate
students, and individuals seeking to transition into public service careers.
]

college graduates.

����
"Internship program" or
"program" means the state internship and workforce development
program established pursuant to this section.

����
"Minimum qualification" means
the minimum experience, education, licensing, or other special requirements essential
to performance in a class of work or a position.

����
"Participant" means an individual
accepted into the internship program."

����
SECTION 4.
�

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 allocated as follows:

����
(1)
�
$
���������
for the implementation and operation
of the on-the-job training work experience program for the private sector
established pursuant to section 394-10, Hawaii Revised Statutes, including
contracting with trade organizations; and

����
(2)
�
$
���������
for the operation of the state
internship and workforce development program established pursuant to section
394-11, Hawaii Revised Statutes.

����
The sum appropriated shall be expended by
the department of labor and industrial relations for the purposes of this Act.

����
SECTION 5.
�

Statutory material to be repealed is bracketed and stricken.
�
New statutory material is underscored.

����
SECTION 6.
�

This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

DLIR;
DHRD; Internship Programs; Workforce Development; Hele Imua; On-the-Job
Training Work Experience Program; State Internship and Workforce Development
Program; Minimum Qualifications; Civil Service; Appropriation

Description:

Expands
the on-the-job training work experience program for the private sector by
authorizing the Department of Labor and Industrial Relations to enter into contracts
with trade organizations to provide on-the-job training to participating
interns.
�
Removes the requirement that
high school, college, or university graduates have graduated within 1 year of
applying for the on-the-job training work experience program and state internship
and workforce development program.
�

Repeals the requirement that participating sponsors contribute 50 per
cent of each intern's fringe benefits.
�

Amends the state internship and workforce development program for the
public sector by requiring the coordinating agency work sites to provide work experience
that helps interns meet the minimum qualification requirements for employment
in the relevant positions, including civil service positions.
�
Transfers certain duties from the Department
of Labor and Industrial Relations to the Department of Human Resources Development.
�
Requires the Department of Human Resources
Development to apply the internship experience towards the minimum
qualification requirements for similar civil service positions.
�
Appropriates moneys.

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