Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 2067 entitled:

begs leave to report as follows:

The purpose of this measure is to fund University of Hawaii activities to recruit and retain students from underrepresented ethnic groups.

The University of Hawaii testified in support of this measure.

Your Committee finds that certain ethnic groups are underrepresented in the University of Hawaii's student population, and that the University requires funding to conduct recruitment and retention activities directed at these groups, including the provision of financial assistance, academic support, and student support services.

This measure proposes to provide the necessary funding by repealing the Hawaii Opportunity Program in Education (HOPE) endowment special fund and transferring the balance of the fund to the University of Hawaii student tuition and fees special fund. The transferred funds would be used to recruit and retain financially needy students with priority given to students from underrepresented ethnic groups.

The HOPE endowment special fund was originally established to provide scholarships for financially needy students from underrepresented ethnic groups through the use of interest income. But a limited fund corpus generates insufficient interest to support the provision of scholarships. By authorizing the transfer of the fund balance to the University of Hawaii tuition and fees special fund, the University will be better able to utilize these moneys to support activities aimed at achieving student diversification.

Your Committee has amended this measure to provide that the University of Hawaii, rather than the Director of Finance, is responsible for transferring the balance of the HOPE endowment special fund to the University of Hawaii tuition and fees special fund.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2067, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2067, S.D. 1, and be referred to the Committee on Ways and Means.