STAND

 

STAND. COM. REP. 3141

Honolulu, Hawaii

, 2004

RE: H.B. No. 1893

H.D. 2

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1893, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose of this measure is to outline the components necessary to comply with the federal stipulations for receiving funds under the Gaining Early Access and Readiness for Undergraduate Programs (GEAR UP).

Specifically, this measure,

(1) Confirms the authority of the University of Hawaii to establish a separate charitable trust to hold funds received under GEAR UP until they can be awarded to individual students from among the class of eligible scholarship recipients;

(2) Exempts the establishment of the trust and specification of scholarship recipient eligibility criteria under the trust from the definitions of "rules" or "rulemaking" within the meaning of and subject to the provisions of chapter 91, Hawaii Revised Statutes (the Hawaii Administrative Procedure Act), and the processes and procedures mandated for rulemaking;

(3) Confirms the private nature of the trust;

(4) Confirms that the charitable trust is not part of the State or any of its political subdivisions, or otherwise deemed a public or quasi-public entity; and

(5) Confirms that the initial funding of or a future transfer to the trust by the University of Hawaii, or any of its subdivisions, does not constitute a state grant or subsidy.

Your Committee finds that scholarships can be valuable tools to motivate students by rewarding progress and providing incentives for them to persevere in their efforts to obtain a higher education. GEAR UP grants will make a substantial contribution to the scholarship funds available in Hawaii. Your Committee further finds that the scholarship component of all GEAR UP grants requires the University to comply with several federal stipulations. This measure will help ensure that these stipulations are complied with so that the GEAR UP grants are disbursed properly.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1893, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

		____________________________ BRIAN T. TANIGUCHI, Chair