STAND. COM. REP. NO. 914

Honolulu, Hawaii

RE:    S.B. No. 1162

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1162, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII PROMISE PROGRAM,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide financial assistance to qualified students enrolled at any University of Hawaii campus for their unmet direct cost needs.

     More specifically, this measure:

     (1)  Establishes the Hawaii promise program to provide scholarships to those students;

     (2)  Establishes the Hawaii promise program special fund to provide financial assistance to students who qualify for the Hawaii promise program; and

     (3)  Appropriates $13,587,000 for the establishment and implementation of the Hawaii promise program.

     The University of Hawaii; Faculty Senate, Leeward Community College; Philippine Studies Program, Leeward Community College; Associated Students of the University of Hawaii West Oahu; Filipino American Citizens League; Hawaii Filipino Lawyers Association; Hawaii Pacific Health; Kamehameha Schools; KASAMA, Leeward Community College; National Federation of Filipino American Associations Region 12; Nursing Advocates and Mentors, Inc.; and fifty-four individuals submitted written comments in support of this measure.

     Your Committee received written comments on this measure from seven individuals.

     Your Committee finds that an educated labor force and engaged citizenry are essential in today's global, knowledge-based economy.  Your Committee finds that the University of Hawaii graduation initiative has a goal of growing and strengthening the educational capital of the State by increasing the number of students who are Native Hawaiians, have low incomes, or represent other underserved regions or populations.  Your Committee also finds that Hawaii has a "55 by '25 goal," which aspires to increase the percentage of working-age adults with two- or four-year degrees to fifty-five percent by 2025.  Your Committee believes that this measure will encourage more students to attend a University of Hawaii campus and, therefore, will help the State meet its 55 by '25 goal.

     Your Committee has amended this measure by:

     (1)  Specifying that a student enrolled at a University of Hawaii campus shall be eligible for scholarship consideration for a maximum of eight semesters;

     (2)  Replacing the use of the acronym "FAFSA" with the complete term, "Free Application for Federal Student Aid," to facilitate clarity;

     (3)  Clarifying that a student enrolled at a community college campus, to be eligible for scholarship consideration, shall be enrolled in a classified degree or certificate program, among other requirements;

     (4)  Clarifying a reference to the Higher Education Act of 1965, as amended, by citing the full name of the Act;

     (5)  Inserting language that clarifies that students enrolled at community college campuses are required to meet different scholarship requirements than students enrolled in non-community college campuses within the University of Hawaii system;

     (6)  Clarifying how scholarships are awarded;

     (7)  Inserting an internal cross reference to clarify that a student who fails to comply with enumerated academic requirements shall be placed on scholarship probation;

     (8)  Inserting language to clarify that if a student is returned to good standing after a period of probation, but subsequently fails to comply with the academic requirements at any time within an eight-semester period, after the return to good standing, the student's scholarship shall be revoked;

     (9)  Clarifying the definition of "direct cost";

    (10) Deleting the appropriated amounts and leaving them unspecified;

    (11) Creating two appropriation sections that appropriate moneys from the Hawaii promise program special fund to separately fund scholarships at four-year campuses and community colleges;

    (12) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

    (13) Making technical nonsubstantive amendments for clarity, consistency, and style.

     Your Committee is considering appropriating $13,587,000 for the Hawaii promise program, which would be allocated among the campuses of the University of Hawaii as follows:

     (1)  $9,387,000 to the University of Hawaii at Manoa;

     (2)  $1,279,000 to the University of Hawaii at Hilo;

     (3)  $1,092,000 to the University of Hawaii-West Oahu; and

     (4)  $1,829,000 to the community colleges.

     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 S.B. No. 1162, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1162, S.D. 2.

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

________________________________

JILL N. TOKUDA, Chair