STAND. COM. REP. NO. 1322-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3123

S.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred S.B. No. 3123, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PRIVATE SUPPORT OF EDUCATION,"

begs leave to report as follows:

The purpose of this measure is to clarify that donor-conditioned educational awards and school-conditioned enrollment at private educational institutions, for which no tuition or other monetary consideration is required or paid by the recipient, are to be considered conditional gifts rather than contractual obligations, unless the parties agree otherwise in writing.

Your Committee received testimony in support of this measure from the Office of the Governor; Hawaiʻi Community Foundation; Hawaiʻi Children's Action Network Speaks!; Association of Hawaiian Civic Clubs; Hawaiian Civic Club of Honolulu; Le Jardin Academy; Hawaiian Council; Aliʻi Pauahi Hawaiian Civic Club; Hawaiʻi School for Girls at La Pietra; Nation of Hawaiʻi; Kamehameha Schools; Saint Louis School; St. Andrew's Schools; Hawaiʻi Association of Independent Schools; Prince Kūhiō Hawaiian Civic Club; Hawaiian Affairs Caucus of the Democratic Party of Hawaiʻi; and nine individuals.

Your Committee finds that donor-conditioned educational awards that support private educational efforts are conditional gifts and do not create contractual obligations. Your Committee further finds that treating such awards as contractual obligations may undermine donor intent, discourage charitable giving, and create uncertainty and inconsistent legal treatment of these awards. This measure clarifies and promotes uniformity regarding the treatment of donor-conditioned educational awards to encourage the continued availability of privately funded educational assistance.

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3123, S.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair