REPORT TITLE:
Technology Scholarship Program


DESCRIPTION:
Adds a new chapter to establish the new economy technology
scholarship act.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2372
HOUSE OF REPRESENTATIVES                H.B. NO.           
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
 

 
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 1 residents are to compete successfully in this "New Economy", the
 
 2 State must encourage and support growth in technology.
 
 3      The purpose of this Act is to provide an incentive to Hawaii
 
 4 students to pursue higher education and training in science and
 
 5 technology fields that are essential to economic development in
 
 6 this State.  Further, this Act is intended to create a sustained
 
 7 pool of highly trained technology workers that will improve this
 
 8 State's ability to attract and retain business.
 
 9      SECTION 2.  The Hawaii Revised Statutes is amended by adding
 
10 a new chapter to be appropriately designated and to read as
 
11 follows:
 
12                             "CHAPTER
 
13              NEW ECONOMY TECHNOLOGY SCHOLAR PROGRAM
 
14      §   -1  Short title.  This chapter shall be known and may be
 
15 cited as the New Economy Technology Scholarship Act.
 
16      §   -2 Definitions.  As used in this chapter, unless the
 
17 context otherwise requires:
 
18      "Approved course of study" means a program or curriculum
 
19 offered by an approved post-secondary educational institution
 
20 that provides instruction in science, technology, and related
 
21 fields, and that is on the list of approved courses of study
 
22 established by the commission in    -3(c).
 
23      "Approved educational institution" means a post-secondary
 

 
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 1 educational institution located in this State that has been
 
 2 accredited by a nationally recognized accrediting agency that is
 
 3 listed by the United States Secretary of Education.
 
 4      "Commission" means the state post-secondary education
 
 5 commission.
 
 6      "Council" means the Hawaii workforce development council.
 
 7      "Incumbent worker" means any person who has been a resident
 
 8 of this State for one year and who has been employed full-time in
 
 9 this State for a period of one year while pursuing an associate
 
10 degree or its equivalent.
 
11      "Program" means the new economy technology scholarship
 
12 program established under section    -3.
 
13      "Student" means any individual domiciled in this State who
 
14 attends or is about to attend a secondary school or post-
 
15 secondary educational institution located in this State.
 
16      "Work requirement" means postgraduate, full-time employment
 
17 with an employer located in this State in an occupation related
 
18 to an approved course of study required under    -3.  The term
 
19 does not include a paid student internship, a paid fellowship,
 
20 volunteer service, or employment before graduation.
 
21      §   -3 New economy technology scholarship program;
 
22 establishment, administration.(a)  There is established the new
 
23 economy technology scholarship program within the commission.
 

 
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 1      (b)  The commission may provide scholarship grants to an
 
 2 eligible student who is a resident of this State upon
 
 3 confirmation from an approved educational institution that the
 
 4 student has been accepted for enrollment in an approved course of
 
 5 study.  Scholarship grants shall only be for the amount set forth
 
 6 in sections    -4(a) and    -5(a) and shall only be used for
 
 7 tuition and mandatory fees.
 
 8      (c)  The commission, in cooperation with the council, shall
 
 9 establish a list of approved courses of study for the program.
 
10 This list shall be based on areas of state need and expected
 
11 contribution to economic development and shall be reviewed and
 
12 updated on an annual basis.
 
13      (d)  Prior to making a grant under this chapter, the
 
14 commission shall first apply Federal Pell Grant and state grants
 
15 available for tuition and mandatory fees related to an
 
16 undergraduate program for the student prior to determining the
 
17 amount of the scholarship grant.
 
18      (e)  To receive a scholarship grant under this chapter, a
 
19 student shall meet all of the following requirements:
 
20      (1)  Graduation from a high school in this State, or earned
 
21           a general educational development (GED) diploma or the
 
22           equivalent thereof;
 
23      (2)  Maintenance of domicile in Hawaii during the term of
 

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

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

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

 
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 1 degree.  The student shall comply with any conditions placed upon
 
 2 the internship by the commission.  Proof of completion of the
 
 3 internship or work experience requirements must be submitted to
 
 4 the commission prior to graduation, unless otherwise authorized
 
 5 by the commission.
 
 6      §   -5 Scholarships; associate and certificate programs.
 
 7 (a)  The commission shall award a scholarship in the amount of
 
 8 $           per academic year or a lesser amount following
 
 9 application of federal or state grants under section    -3(d) to
 
10 a student enrolled full-time in an approved educational
 
11 institution pursuing an associate's degree or in a degree-
 
12 granting institution subject to chapter 446E in an academic
 
13 program approved by the commission.  A student who is enrolled
 
14 part time and is an incumbent worker pursuing an associate's
 
15 degree or other specialized program approved by the commission is
 
16 eligible for a grant of twenty per cent tuition and mandatory
 
17 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 commission,
 
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 institution must determine that the
 

 
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 1 student is making satisfactory progress toward completing an
 
 2 associate's degree or the requirements of the certificate
 
 3 program.
 
 4      (c)  The commission 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 commission shall
 
 8 monitor and verify a student's fulfillment of all internship and
 
 9 work requirements under this chapter.
 
10      (b)  The commission 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 commission 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 commission shall adopt rules under chapter 91
 
11 necessary to carry out the purposes of this chapter.
 
12      §   -7 Annual report.(a)  The commission 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, and certificate programs reported by
 

 
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 1           institution and category of institution;
 
 2      (4)  The amount of scholarship funds awarded to students
 
 3           attending four-year educational institutions, community
 
 4           colleges, independent two-year colleges, degree-
 
 5           granting institutions, and certificate programs
 
 6           reported by institution and category of institution;
 
 7           and 
 
 8      (5)  The total number of students who withdraw from the
 
 9           program or internship or work requirements.
 
10      (b)  The annual report shall be submitted to the governor
 
11 and the legislature."
 
12      SECTION 3.  There is appropriated out of the general
 
13 revenues of the State of Hawaii the sum of $          , or so
 
14 much thereof as may be necessary for fiscal year 2000-2001.  The
 
15 sum appropriated shall be expended by the University of Hawaii
 
16 for the purposes of this Act, including administration thereof.
 
17      SECTION 4.  Section 305H-2, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§305H-2 Commission's powers and authority.  (a)  The
 
20 commission may cooperate with the federal government in order to
 
21 qualify the State to receive funds made available under the
 
22 Higher Education Act of 1965, as amended by Public Law 92-318,
 
23 and as it may be amended from time to time and in addition may
 

 
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 1 serve as the state agency for the receipt of federal funds where
 
 2 the federal legislation dealing with higher education or post-
 
 3 secondary education requires as a condition of state receipt of
 
 4 such funds, the designation of a state agency which is broadly
 
 5 representative of the general public and of post-secondary
 
 6 education in the State and where agencies other than the
 
 7 commission created by this chapter may not qualify.  The
 
 8 commission shall establish appropriate rules and regulations not
 
 9 inconsistent with this chapter as may be required to administer
 
10 this chapter.  The rules shall be adopted in accordance with
 
11 chapter 91.
 
12      (b)  No funds appropriated by the legislature may be used to
 
13 aid a person attending an institution not owned or exclusively
 
14 controlled by the State or a department of the State or to pay
 
15 for any staff work distributing federal or private funds to
 
16 students attending such schools.  The maximum amount of any grant
 
17 awarded under the Hawaii state incentive grant program shall be
 
18 equal to the maximum allowed by federal law.
 
19      (c)  Subsection (b) to the contrary notwithstanding, the
 
20 commission shall carry out the powers and duties set forth in
 
21 chapter        .  This shall include the establishment of a
 
22 approved course of study as defined in section    -2 and the
 
23 expenditure of appropriations for scholarships under sections
 

 
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 1    -4 and    -5."
 
 2      SECTION 5.  New statutory material is underscored.
 
 3      SECTION 6.  This Act shall take effect on July 1, 2000.
 
 4 
 
 5                              INTRODUCED BY:______________________
 
 6 
 
 7                                            ______________________