REPORT TITLE:
Technology Scholarship Program


DESCRIPTION:
Adds a new chapter to establish the New Economy Technology
Scholarship Act.  (SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
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                     A BILL FOR AN ACT

RELATING TO TECHNOLOGY.


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

 1      SECTION 1.  The legislature finds that in the last fifteen
 
 2 years a "New Economy" has emerged in the United States.  This
 
 3 change has fundamentally altered industrial and occupational
 
 4 order, introduced unprecedented levels of entrepreneurial
 
 5 dynamism and competition, as well as a dramatic trend toward
 
 6 globalization.  This "New Economy" has been spurred by advances
 
 7 in technologies and has effectively restructured the way
 
 8 businesses operate in today's marketplace.
 
 9      The legislature further finds that a recent report, "The
 
10 State New Economy Index, Benchmarking Economic Transformations in
 
11 the States", by the Progressive Policy Institute, has begun to
 
12 assess how the fifty states have responded to -- and encouraged
 
13 -- these fundamental changes.  In this report, Hawaii has
 
14 attained an overall rank of twenty-six among the fifty states.
 
15 While Hawaii does well in some areas -- foreign direct
 
16 investment, workforce education, and education technology in the
 
17 schools -- it ranks poorly in a number of critical areas,
 
18 particularly new business startups and high technology jobs.
 
19      The legislature believes that if Hawaii's businesses and
 
20 residents are to compete successfully in this "New Economy", the
 

 
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 1 State must encourage and support growth in technology.
 
 2 Currently, there is a demand for highly trained technology
 
 3 workers.  For example, CISCO Networking Systems urgently needs a
 
 4 highly skilled workforce and is committing substantial energies
 
 5 toward training and developing technology workers.  It has helped
 
 6 prepare over 70,000 students worldwide during the past three
 
 7 years in its networking academies; of these, just 684 students
 
 8 are from Hawaii.
 
 9      The purpose of this Act is to establish a new economy
 
10 technology scholarship program on a pilot basis to create a
 
11 sustained pool of highly trained technology workers, in the
 
12 shortest time possible, in order to improve this State's ability
 
13 to attract and retain business.  Further, this Act is intended to
 
14 encourage Hawaii students to pursue higher education and training
 
15 in science and technology fields that are essential to economic
 
16 development in this State.
 
17      SECTION 2.  The Hawaii Revised Statutes is amended by adding
 
18 a new chapter to be appropriately designated and to read as
 
19 follows:
 
20                             "CHAPTER
 
21              NEW ECONOMY TECHNOLOGY SCHOLAR PROGRAM
 
22      §   -1  Short title.  This chapter shall be known and may be
 
23 cited as the New Economy Technology Scholarship Act.
 

 
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 1      §   -2 Definitions.  As used in this chapter, unless the
 
 2 context otherwise requires:
 
 3      "Approved course of study" means a program or curriculum
 
 4 offered by an approved post-secondary educational institution
 
 5 that provides instruction in science, technology, and related
 
 6 fields, and that is on the list of approved courses of study
 
 7 established by the department in    -3(c).
 
 8      "Approved educational institution" means a public or private
 
 9 post-secondary educational institution located in this State that
 
10 has been accredited by a nationally recognized accrediting agency
 
11 that is listed by the United States Secretary of Education, or
 
12 vendor educational programs provided by vendor certified training
 
13 organizations.
 
14      "Council" means the Hawaii workforce development council.
 
15      "Department" means the department of business, economic
 
16 development, and tourism.
 
17      "Incumbent worker" means any person who has been a resident
 
18 of this State for one year and who has been employed full-time in
 
19 this State for a period of one year while pursuing an associate
 
20 degree or its equivalent.
 
21      "Program" means the new economy technology scholarship
 
22 program established under section    -3.
 
23      "Student" means any individual domiciled in this State who
 

 
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 1 attends or is about to attend a secondary school or post-
 
 2 secondary educational institution located in this State.
 
 3      "Vendor educational programs" means those courses offered by
 
 4 technology businesses, resulting in a professional certification
 
 5 to provide services within that vendor's business.
 
 6      "Work requirement" means postgraduate, full-time employment
 
 7 with an employer located in this State in an occupation related
 
 8 to an approved course of study required under    -3.  The term
 
 9 does not include a paid student internship, a paid fellowship,
 
10 volunteer service, or employment before graduation.
 
11      §   -3 New economy technology scholarship pilot program;
 
12 establishment, administration.(a)  There is established a five
 
13 year pilot program to be known as the new economy technology
 
14 scholarship program to be placed in the department of business,
 
15 economic development and tourism.
 
16      (b)  Under the parameters of the scholarship program, the
 
17 department may provide scholarship grants to an eligible student
 
18 who is a resident of this State upon confirmation from an
 
19 approved educational institution that the student has been
 
20 accepted for enrollment in an approved course of study.
 
21 Scholarship grants shall only be for the amount set forth in
 
22 sections    -4(a) and    -5(a) and shall only be used for tuition
 
23 and mandatory fees.
 

 
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 1      (c) The department, in cooperation with the council, shall
 
 2 establish lists of approved courses of study for the various
 
 3 types of approved educational institutions to be addressed by the
 
 4 program.  The lists shall be based on areas of business demand
 
 5 and expected contribution to economic development and shall be
 
 6 reviewed and updated on an annual basis.
 
 7      (d)  Prior to making a grant under this chapter, the
 
 8 department, in cooperation with approved educational
 
 9 institutions, shall apply Federal Pell Grant and state grants
 
10 available for tuition and mandatory fees related to an
 
11 undergraduate program for the student prior to determining the
 
12 amount of the scholarship grant.
 
13      (e)  To receive a scholarship grant under this chapter, a
 
14 student shall meet all of the following requirements:
 
15      (1)  Graduation from a high school in this State, or earned
 
16           a general educational development (GED) diploma or the
 
17           equivalent thereof;
 
18      (2)  Maintenance of domicile in Hawaii during the term of
 
19           the scholarship grants;
 
20      (3)  Compliance with any conditions placed on the
 
21           scholarship grant by the department;
 
22      (4)  For those attending a post-secondary education
 
23           institution, maintenance of a grade point average of
 

 
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 1           3.0 or higher, on a scale of 4.0, or its equivalent,
 
 2           beginning with the first semester of the freshman year
 
 3           and through the term of the scholarship or in the last
 
 4           year of high school if the student is applying under
 
 5           section    -4 or    -5; or if enrolled in a vendor
 
 6           educational program maintenance of a passing rate in
 
 7           the program; and
 
 8      (5)  Enter into a written agreement with the department to:
 
 9           (A)  Satisfy all degree, diploma, or certificate
 
10                requirements and other requirements under this
 
11                chapter;
 
12           (B)  Commence employment in this State within one year
 
13                after completion of an approved undergraduate
 
14                degree or certificate program for a period of one
 
15                year for each academic year the student received a
 
16                scholarship grant under this chapter unless the
 
17                department determines that there are extenuating
 
18                circumstances;
 
19           (C)  Reimburse the State all amounts received under
 
20                this chapter and interest thereon, as determined
 
21                by the department, if the student fails to comply
 
22                with subparagraphs (A) and (B).
 
23      (f)  A student shall apply to the department for a
 

 
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 1 scholarship grant as prescribed by the department, and include
 
 2 all information and documentation required by the department.
 
 3 The application of a student under eighteen years of age shall
 
 4 include the signature of a parent or guardian.  The application
 
 5 shall include a verified statement of grade point average from
 
 6 the appropriate approved educational institution.
 
 7      (g)  The work requirement under subsection (e)(5)(B) shall
 
 8 begin after the receipt of bachelor's or associate's degree or
 
 9 other appropriate certificate from an approved educational
 
10 institution.
 
11      (h)  If a student terminates enrollment in the approved
 
12 educational institution during the academic year or prior to
 
13 completion of the approved course of study, the approved
 
14 educational institution shall notify the department in writing
 
15 and shall return all unused portions of the scholarship grant.
 
16 Returned amounts shall be used to fund other scholarship grants
 
17 under this chapter.
 
18      (i)  A scholarship under this chapter is only transferrable
 
19 to another approved educational institution if approved by the
 
20 department.
 
21      (j)  Grants awarded under the program shall be limited to
 
22 funds appropriated for that purpose or funds otherwise matched by
 
23 external entities.  First priority for awarding grants shall be
 

 
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 1 given to renewal applicants.  Thereafter, grants shall be awarded
 
 2 on a first-come, first-served basis.
 
 3      §   -4 Scholarships; bachelor's degree programs.(a)  The
 
 4 department shall award a scholarship in the amount of $          
 
 5 per academic year, or a lesser amount following application of
 
 6 federal and state grants under section    -3(d) to a student
 
 7 enrolled full-time in an approved educational institution
 
 8 pursuing a bachelor's degree in an approved course of study.
 
 9      (b)  A grant shall be awarded beginning no earlier than the
 
10 second academic year of enrollment in an approved educational
 
11 institution.  The grant shall be for a maximum of three academic
 
12 years or for up to four academic years if the student is enrolled
 
13 in an approved course of study that, according to the department,
 
14 requires five academic years to complete.  In order to qualify
 
15 for renewals beyond three years, the student must be in
 
16 compliance with the requirements of section    -3(e) and the
 
17 department must determine that the student is making satisfactory
 
18 progress toward completing a degree.
 
19      (c)  A student who accepts a grant under this section shall
 
20 complete a college-approved or university-approved internship or
 
21 work experience in a science, technology, or related field with
 
22 an employer located in this State prior to receiving a bachelor's
 
23 degree.  The student shall comply with any conditions placed upon
 

 
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 1 the internship by the department.  Proof of completion of the
 
 2 internship or work experience requirements must be submitted to
 
 3 the department prior to graduation, unless otherwise authorized
 
 4 by the department.
 
 5      §   -5 Scholarships; associate and certificate programs.
 
 6 (a)  The department shall award a scholarship in the amount of
 
 7 $           per academic year or a lesser amount following
 
 8 application of federal or state grants under section    -3(d) to
 
 9 a student enrolled full-time in an approved educational
 
10 institution pursuing an associate's degree or a certificate
 
11 provided by a vendor educational program, or in a degree-granting
 
12 institution subject to chapter 446E in an academic program
 
13 approved by the department.  A student who is enrolled part time
 
14 and is an incumbent worker pursuing an associate's degree,
 
15 certification, or other specialized program approved by the
 
16 department is eligible for a grant of twenty per cent tuition and
 
17 mandatory fees.
 
18      (b)  The grant shall be for a maximum of two academic years
 
19 or for up to three academic years if the student is enrolled in
 
20 an approved course of study that, according to the department,
 
21 requires three academic years to complete.  In order to qualify
 
22 for a grant three times, the student must be in compliance with
 
23 section    -3(e), and the approved educational institution must
 

 
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 1 determine that the student is making satisfactory progress toward
 
 2 completing an associate's degree or the requirements of the
 
 3 certificate program.
 
 4      (c)  The department may waive the one-year employment
 
 5 requirement for an incumbent worker for extenuating circumstances
 
 6 related to the student's employment within the last year.
 
 7      §   -6 Program administration.(a)  The department shall
 
 8 monitor and verify a student's fulfillment of all internship and
 
 9 work requirements under this chapter.
 
10      (b)  The department shall enforce repayment of all
 
11 scholarship grants for a student who does not comply with this
 
12 chapter.  Repayment shall include the use of all lawful
 
13 collection procedures and the use of private collection agencies.
 
14      (c)  Scholarship grants received by a student from the
 
15 program shall not be considered taxable income under chapter 235.
 
16      (d)  Scholarship grants received by a student from the
 
17 program shall not be considered financial assistance or
 
18 appropriations to the approved educational institution.
 
19      (e)  No funds under this chapter shall be granted to a
 
20 person enrolled in a customized job training partnership program
 
21 or continuing education course from a post-secondary educational
 
22 institution for which an employer is providing over fifty per
 
23 cent of the financial support, directly or indirectly, and for
 

 
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 1 which the student is not being charged tuition or fees.
 
 2      (f)  Any person who knowingly or intentionally procures,
 
 3 obtains, or aids another to procure or obtain a grant under this
 
 4 chapter through fraudulent means shall be disqualified from
 
 5 participation in the program and shall be liable to the
 
 6 department for an amount equal to three times the amount
 
 7 obtained.
 
 8      (g)  Any appeal under this chapter shall be subject to
 
 9 chapter 91.
 
10      (h)  The department shall adopt rules under chapter 91
 
11 necessary to carry out the purposes of this chapter.
 
12      §   -7 Annual report.(a)  The department shall publish a
 
13 report by September 1, 2001, and every year thereafter.  The
 
14 report shall include information regarding the operation of the
 
15 program to include:
 
16      (1)  The total number of students receiving scholarship
 
17           grants;
 
18      (2)  The total amount of scholarship funds awarded;
 
19      (3)  The number of full-time and part-time students
 
20           receiving scholarship grants attending four-year
 
21           educational institutions, community colleges,
 
22           independent two-year colleges, degree-granting
 
23           institutions, vendor educational programs, and
 

 
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 1           certificate programs reported by institution and
 
 2           category of institution;
 
 3      (4)  The amount of scholarship funds awarded to students
 
 4           attending four-year educational institutions, community
 
 5           colleges, independent two-year colleges, degree-
 
 6           granting institutions, vendor educational programs, and
 
 7           certificate programs reported by institution and
 
 8           category of institution; and 
 
 9      (5)  The total number of students who withdraw from the
 
10           program or internship or work requirements.
 
11      (b)  The annual report shall be submitted to the governor
 
12 and the legislature."
 
13      SECTION 3.  There is appropriated out of the general
 
14 revenues of the State of Hawaii the sum of $          , or so
 
15 much thereof as may be necessary for fiscal year 2000-2001 to
 
16 establish and implement the new economy technology scholar
 
17 program.  The sum appropriated shall be expended by the
 
18 department of business, economic development, and tourism for the
 
19 purposes of this Act, including administration thereof.
 
20      SECTION 4.  This Act shall take effect on July 1, 2000, and
 
21 shall be repealed on June 30, 2005.