STAND. COM. REP. NO. 795

Honolulu, Hawaii

RE: S.B. No. 245

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 245 entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose and intent of this measure is to increase the number of high school students who complete the Free Application for Federal Student Aid (FAFSA).

More specifically, this measure requires the Department of Education's existing working group dedicated to increasing FAFSA awareness and completion to:

(1) Create a state plan to make FAFSA completion, or an opt-out waiver for FAFSA completion, a statewide graduation requirement by the 2023-2024 school year; and

(2) Submit a report to the 2022 Legislature.

Your Committee received written comments in support of this measure from the Chamber of Commerce Hawaii, Maui Chamber of Commerce, HawaiiKidsCAN, and five individuals.

Written comments in opposition were received from four individuals.

The Department of Education and Office of Information Practices submitted written comments on the measure.

Your Committee finds that facilitating FAFSA completion will allow more high school graduates to make use of federal financial aid for higher education and thus reduce the need for private student loans that often have higher interest rates and lack consumer protections.

Your Committee has amended this measure by:

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

(2) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

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. 245, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 245, S.D. 1.

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

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DONOVAN M. DELA CRUZ, Chair