Report Title:

Work-related education commission

Description:

Creates a temporary commission to establish a pilot program for work-related education for high school students. Provides a nonrefundable income tax credit for the cost of providing work-related education to each high school student; provided that the costs are borne by the taxpayer and the tax credit shall not exceed $500 per student. Amends the employment and training fund to allow use of those funds to support the vocational and apprenticeship training program.

HOUSE OF REPRESENTATIVES

H.B. NO.

1274

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to WORK-RELATED EDUCATION.

 

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

SECTION 1. The legislature finds that students who choose not to pursue higher education must be prepared to enter the work force after high school. These students might benefit from work-related education, including vocational training, apprenticeship programs, and career-related courses of study.

The purpose of this Act is to help train Hawaii's future work force by promoting work-related education through a variety of initiatives. This Act:

(1) Provides an income tax credit for the cost of providing work-related education to each high school student; provided that the costs are borne by the taxpayer and the tax credit shall not exceed $500 per student;

(2) Creates a temporary commission to establish a pilot program for vocational training and apprenticeship in the public school system; and

(3) Allows the employment training fund to be used to establish work-related education for high school students.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is

amended by adding a new section to be appropriately designated

and to read as follows:

"§235-    Work-related education tax credit. (a) There shall be allowed to each taxpayer, subject to the taxes imposed by this chapter, a work-related education tax credit that shall be deductible from the taxpayer's gross income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

(b) The amount of the tax credit claimed under this section by the taxpayer in all years for which the credit is available shall be limited to the actual cost incurred by the taxpayer to provide work-related education for each high school student; provided that the tax credit shall not exceed $500 per student.

(c) If the tax credit claimed by the taxpayer under this section exceeds the taxpayer's income tax liability, the excess of credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims, including amended claims, for a tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(d) The director of taxation shall prepare forms that may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

(e) The tax credit allowed under this section shall be available for taxable years beginning after December 31, , and shall not be available for taxable years beginning after December 31, .

(f) To qualify for the tax credit, the taxpayer shall be in compliance with all applicable federal, state, and county statutes, rules, and regulations.

(g) As used in this section:

"Work-related education" means any vocational training or apprenticeship programs to instruct in any trade, occupation, or vocation for high school students. The term shall also include instruction in any career-related courses of study for high school students."

SECTION 3. Section 383-128, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The moneys in the employment and training fund may be used for funding:

(1) The operation of the state employment service for which no federal funds have been allocated;

(2) Business-specific training programs to create a more diversified job base and to carry out the purposes of the new industry training program pursuant to section 394-8;

(3) Industry or employer-specific training programs where there are critical skill shortages in high growth occupational or industry areas;

(4) Training and retraining programs to assist workers who have become recently unemployed or likely to be unemployed;

(5) Programs to assist residents who do not otherwise qualify for federal or state job training programs to overcome employment barriers; [and]

(6) Training programs to provide job-specific skills for individuals in need of assistance to improve career employment prospects[.];

(7) Work-related education, including vocational training, apprenticeship programs, and career-related courses of study for high school students."

SECTION 4. There is established a temporary commission to be known as the work-related education commission (commission), which shall be placed within the department of education for administrative purposes and shall cease to operate after one year after its first meeting, but no later than June 30, 2004.

The commission shall consist of five members. The members of the commission shall be appointed as follows:

(1) One member shall be appointed by the governor;

(2) One member shall be appointed by the speaker of the house of representatives;

(3) One member shall be appointed by the president of the senate;

(4) One member shall be appointed by the majority leaders of the house of representatives and the senate; and

(5) One member shall be appointed by the minority leaders of the house of representatives and the senate.

The members of the commission shall select the chair of the commission.

The members shall not receive compensation for their services but shall be reimbursed for necessary expenses, including travel expenses, incurred in the performance of their duties under this Act.

Any member of the commission shall be immune from civil liability for any act done in connection with the performance of their duties as provided in section 26-35.5, Hawaii Revised Statutes.

The commission shall:

(1) Develop, plan, and coordinate a work-related education pilot program within the department of education for high school students;

(2) Consult and work with the board of education to determine what type of work-related education should be offered in public high schools;

(3) Consult and work with the board of education to create requirements that will allow students participating in work-related education to receive credit to graduate from high school;

(4) Develop language to be included in contracts with persons, organizations, or companies that will be participating in work-related education; and

(5) Submit a report to the legislature no later than twenty days before the before the beginning of the regular session of 2004 on its findings and proposed legislation on work-related education.

SECTION 5. The department of taxation shall submit a yearly report to the legislature no later than twenty days before the beginning of each regular session beginning with the 2004 session. The reports shall contain:

(1) The name and business address of every taxpayer that claimed the work-related education tax credit in the previous year;

(2) The number of tax credits each taxpayer claimed in the previous year;

(3) The cost of these tax credits on the State for the previous year; and

(4) The sum of each of these for all the years since the tax credit became available.

The report shall also include:

(1) An analysis of the economic impact of this tax credit on the State; and

(2) Recommendations for amending the availability or caps on the credit if warranted.

The department of taxation shall work with the department of education and the department of labor and industrial relations for this analysis.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on upon its approval.

INTRODUCED BY:

_____________________________