SB2530.DOC

SECTION 1. The legislature finds that although community colleges offer vocational, technical, and professional courses and programs that prepare students for immediate employment and career advancement, Hawaii will still have a twenty-seven per cent shortage of skilled workers by the year 2020. Despite the nationally competitive tuition and course-related costs of community colleges in Hawaii, Hawaii's high cost of living makes community college an unaffordable financial expenditure for many prospective students. Governments across the country have made significant investments in workforce development programs by providing financial assistance to students seeking in-demand occupational skills. Financial assistance for students participating in certificate programs for in-demand occupations will ensure a growing skilled workforce while increasing the graduation and retention rates of Hawaii's community colleges.

The purpose of this Act is to establish the gap tuition assistance program to provide grants for need-based tuition assistance to applicants to enable completion of continuing education certificate training programs at the community colleges for in-demand occupations.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

gap tuition assistance program

§ -1 Definitions. As used in this chapter:

"Department" means the department of education.

"Eligible certificate program" means a program at a community college that offers training or a credential in an in-demand occupation and is not offered for credit, but is aligned with a certificate, diploma, or degree for credit, and does any of the following:

(1) Offers a state, national, or locally recognized certificate;

(2) Offers preparation for a professional examination or licensure;

(3) Provides endorsement for an existing credential or license;

(4) Represents recognized skill standards defined by an industrial sector; or

(5) Offers a similar credential or training.

"In-demand occupation" includes occupations in the following industries:

(1) Information technology;

(2) Health care;

(3) Advanced manufacturing;

(4) Transportation and logistics; and

(5) Cybersecurity.

§ -2 Gap tuition assistance program; gap tuition assistance program special fund. (a) There is established the gap tuition assistance program within the department to provide grants for need-based tuition assistance to applicants to enable completion of continuing education certificate training programs at the community colleges for in-demand occupations. The department shall adopt rules pursuant to chapter 91 necessary to carry out the purposes of this chapter.

(b) There is established a gap tuition assistance program special fund within the state treasury to be administered by the department and into which shall be deposited all appropriations made by the legislature to the fund. Moneys in the gap tuition assistance program special fund shall be used by the department for the gap tuition assistance program.

§ -3 Applicant eligibility; program requirements. (a) The department, in consultation with the department of business, economic development, and tourism, shall adopt rules pursuant to chapter 91 to define the eligibility criteria for persons applying to receive tuition assistance. Eligibility for tuition assistance shall be based on financial need. Criteria to be assessed in determining financial need shall include but is not limited to the applicant's:

(1) Family income for the twelve months prior to the date of application;

(2) Family size; and

(3) County of residence.

(b) The department shall only approve an applicant for tuition assistance if the community college receiving the application determines the applicant has demonstrated a capacity and has a strong likelihood to achieve the following outcomes:

(1) The ability to complete an eligible certificate program;

(2) The ability to enter a postsecondary certificate, diploma, or degree program for credit;

(3) The ability to gain full-time employment; and

(4) The ability to maintain full-time employment over time.

(c) In considering the capacity and likelihood of an applicant to achieve the outcomes in subsection (b), the community college receiving the application shall consider factors including but not limited to barriers that may prevent an applicant from completing the certificate program or gaining employment in an in-demand occupation. Applicants may be found eligible for partial or total tuition assistance. Tuition assistance shall not be approved if the community college receiving the application determines that funding for an applicant's participation in an eligible certificate program is available from any other public or private funding source.

(d) An applicant for tuition assistance shall provide to the community college receiving the application documentation of all sources of income. Only an applicant eligible to work in the United States shall be approved for tuition assistance. An application shall be valid for six months from the date of signature on the application. A person shall not be approved for tuition assistance for more than one eligible certificate program. Eligibility for tuition assistance shall not be construed to guarantee enrollment in any community college certificate program and shall be limited to persons earning incomes at or below two hundred fifty per cent of the federal poverty level as defined by the most recently revised poverty income guidelines published by the United States Department of Health and Human Services.

(e) Costs of a certificate program eligible for coverage by tuition assistance shall include but are not limited to:

(1) Tuition;

(2) Direct training costs;

(3) Required books and equipment; and

(4) Fees, including but not limited to fees for industry testing services and background check testing services.

(f) An applicant for tuition assistance shall complete an initial assessment administered by the community college receiving the application to determine the applicant's readiness to complete an eligible certificate program. The assessment shall include assessments for completion of a national career readiness certificate, including the areas of reading for information, applied mathematics, and locating information. An applicant shall achieve a bronze-level certificate or the minimum score required for an eligible certificate program, whichever is higher, in order to be approved for tuition assistance. An applicant shall complete any additional assessments and occupational research required by an eligible certificate program.

(g) An applicant for tuition assistance shall meet with a member of the staff for an eligible certificate program offered by the community college receiving the application. The staff member shall discuss the relevant industry, any applicable occupational research, and any applicable training relating to the eligible certificate program. The discussion shall include an evaluation of the applicant's capabilities, needs, family situation, work history, educational background, attitude and motivation, employment skills, vocational potential, and employment barriers. The discussion shall also include potential start dates, support needs, and other requirements for an eligible certificate program.

(h) A participant in an eligible certificate program who receives tuition assistance pursuant to this chapter shall do all of the following:

(1) Maintain regular contact with staff members for the certificate program to document the applicant's progress in the program;

(2) Sign a release form to provide relevant information to community college faculty or case managers;

(3) Discuss with staff members for the certificate program any issues that may impact the participant's ability to complete the certificate program, obtain employment, and maintain employment over time;

(4) Attend all required courses regularly; and

(5) Meet with staff members for the certificate program to develop a job search plan.

(i) A community college may terminate tuition assistance for a participant who fails to meet the requirements of this section.

§ -4 Gap tuition assistance program steering committee; report. (a) The department, in coordination with the community colleges, shall establish a steering committee. The steering committee shall determine if the performance measures of the gap tuition assistance program are being met and shall take necessary steps to correct any deficiencies. The steering committee shall meet at least quarterly to evaluate and monitor the performance of the gap tuition assistance program.

(b) The department, in coordination with the community colleges, shall develop a common intake tracking system that shall be implemented consistently by each participating community college.

(c) The department shall report its findings and recommendations on the gap tuition assistance program, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2016-2017 to be deposited into the gap tuition assistance program special fund established pursuant to section -2, Hawaii Revised Statutes.

SECTION 4. There is appropriated out of the gap tuition assistance program special fund the sum of $ or so much thereof as may be necessary for fiscal year 2016-2017 for the establishment of the gap tuition assistance program.

The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 5. This Act shall take effect upon its approval; provided that sections 3 and 4 shall take effect on July 1, 2016.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2530
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII