Amends technology scholarship program to eliminate onerous conditions such as the work, internship, and incumbent worker category requirements to increase participation in the program. (HB9 HD1)

A BILL FOR AN ACT

SECTION 1. The legislature finds that the new economy technology scholar program is not as accessible to students as it was intended. The program was designed to create a pool of highly trained technology workers, in the shortest time possible, to invigorate, diversify, and expand the State's high technology economy. Further, this program was intended to encourage Hawaii students to pursue higher education and training in science and technology fields. The program has not met its potential nor begun to fulfill its larger goals because program qualifications are too rigid.

The purpose of this Act is to restructure the new economy technology scholar program into a more flexible and workable tool for high technology students.

SECTION 2. Act 237, Session Laws of Hawaii 2000, is amended as follows:

1. By deleting the definition of "incumbent worker" of section -2 of the chapter established in section 2 of the Act.

[""Incumbent worker" means any person who has been a resident of this State for one year and who has been employed full-time in this State for a period of one year while pursuing an associate degree or its equivalent."]

2. By deleting the definition of "work requirement" of section -2 of the chapter established in section 2 of the Act.

[""Work requirement" means postgraduate, full-time employment with an employer located in this State in an occupation related to an approved course of study required under 3. The term does not include a paid student internship, a paid fellowship, volunteer service, or employment before graduation."]

3. By amending sections    -3,    -4, and    -5 of the chapter established in section 2 of the Act to read:

"§   -3 New economy technology scholarship pilot program; establishment, administration. (a) There is established a five-year pilot program to be known as the new economy technology scholarship program to be placed in the department of business, economic development, and tourism for administrative purposes.

(b) Under the parameters of the scholarship program, the department may provide scholarship grants to an eligible student who is a resident of this State upon confirmation from an approved educational institution that the student has been accepted for enrollment in an approved course of study. Scholarship grants shall only be for the amount set forth in sections    -4(a) and    -5(a) and shall only be used for tuition and mandatory fees.

(c) The department shall establish lists of approved courses of study for the various types of approved educational institutions to be addressed by the program. The lists shall be based on areas of business demand and expected contribution to economic development and shall be reviewed and updated [on an annual basis.] periodically, as necessary.

(d) To receive a scholarship grant under this chapter, a student shall meet all of the following requirements:

(e) A student shall apply to the department for a scholarship grant as prescribed by the department, and include all information and documentation required by the department. The application of a student under eighteen years of age shall include the signature of a parent or guardian. The application shall include a verified statement of grade point average from the appropriate approved educational institution.

[(f) The work requirement under subsection (d)(5)(B) shall begin after the receipt of bachelor's or associate's degree or other appropriate certificate from an approved educational institution.

(g)] (f) If a student terminates enrollment in the approved educational institution during the academic year or prior to completion of the approved course of study[,] and within the time frame of refund policies of the institution, the approved educational institution shall notify the department in writing and shall return all unused portions of the scholarship grant. Returned amounts shall be used to fund other scholarship grants under this chapter.

[(h)] (g) A scholarship under this chapter is only transferrable to another approved educational institution if approved by the department.

[(i)] (h) Grants awarded under the program shall be limited to funds appropriated for that purpose or funds otherwise matched by external entities. First priority for awarding grants shall be given to renewal applicants.

§   -4 Scholarships; bachelor's degree programs. (a) The department shall award a scholarship in an amount up to per academic year to a student enrolled full-time in an approved educational institution pursuing a bachelor's degree in an approved course of study.

(b) A grant shall be awarded beginning no earlier than the second academic year of enrollment in an approved educational institution. The grant shall be for a maximum of three academic years or for up to four academic years if the student is enrolled in an approved course of study that, according to the department, requires five academic years to complete. To qualify for renewals beyond three years, the student must be in compliance with the requirements of section    -3(d) and the department must determine that the student is making satisfactory progress toward completing a degree.

[(c) A student who accepts a grant under this section shall complete a college-approved or university-approved internship or work experience in a science, technology, or related field with an employer located in this State prior to receiving a bachelor's degree. The student shall comply with any conditions placed upon the internship by the department. Proof of completion of the internship or work experience requirements must be submitted to the department prior to graduation, unless otherwise authorized by the department.]

§   -5 Scholarships; associate and certificate programs. (a) The department shall award a scholarship in an amount up to $2,000 per academic year to a student enrolled full-time in an approved educational institution pursuing an associate's degree or a certificate provided by a vendor educational program, or in a degree-granting institution subject to chapter 446E in an academic program approved by the department. A student who is enrolled part time [and is an incumbent worker] pursuing an associate's degree, certification, or other specialized program approved by the department is eligible for a grant of twenty per cent tuition and mandatory fees.

(b) The grant shall be for a maximum of two academic years or for up to three academic years if the student is enrolled in an approved course of study that, according to the department, requires three academic years to complete. To qualify for a grant three times, the student must be in compliance with section    -3(d), and the approved educational institution must determine that the student is making satisfactory progress toward completing an associate's degree or the requirements of the certificate program.

[(c) The department may waive the one-year employment requirement for an incumbent worker for extenuating circumstances related to the student's employment within the last year.]"

4. By amending subsection (a) of section    -6 of the chapter established in section 2 of the Act to read:

"(a) The department shall monitor and verify a student's fulfillment of all [internship and work] requirements under this chapter."

5. By amending subsections (h) and (i) of section -6 of the chapter established in section 2 of the Act to read:

"(h) Any appeal under this chapter shall not be subject to chapter 91.

(i) The department shall adopt rules [under] not subject to chapter 91 necessary to carry out the purposes of this chapter."

6. By amending subsection (a) of section    -7 of the chapter established in section 2 to read:

"(a) The department shall publish a report by [September 1, 2000] October 31, 2001, and every year thereafter. The report shall include information regarding the operation of the program to include:

7. By amending sections 3 and 4 to read:

"SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $1 or so much thereof as may be necessary for fiscal year [2000-2001] 2001-2002 to establish and implement the new economy technology scholar program.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2000, and shall be repealed on June 30, [2005.] 2006."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2001.