HB2082

SECTION 1. Research predicts that the some of the greatest future employment growth in Hawaii lies in the fields of registered nursing, elementary and secondary education, and civil engineering. At the same time, Hawaii is currently facing some of its most severe shortages of trained professionals in these fields.

Although the State does not budget for scholarships, University of Hawaii policy requires that a minimum percentage of tuition revenue be set aside for need-based scholarships, including 8.8 per cent at the community colleges. The University of Hawaii provided $46,700,000 in tuition-funded financial aid during 2014-2015, including $6,300,000 at the community colleges. Even though financial aid through Pell grants, University of Hawaii and private scholarships, the GI Bill for service members and veterans, and employers cover much of the cost for need-based students, cost is still a barrier for certain students with financial need.

The legislature finds that this issue is a matter of statewide concern that falls under its purview pursuant to article X, section 6, of the Hawaii State Constitution. The purpose of this Act is to:

(1) Establish the Hawaii promise program to provide scholarships for the unmet direct cost needs of qualified students who are pursuing undergraduate degrees in registered nursing, elementary or secondary education, and civil engineering and who are enrolled at any University of Hawaii campus; and

(2) Appropriate funds to establish and implement the program.

SECTION 2. Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to part IV, subpart A, subdivision 1 to be appropriately designated and to read as follows:

"§304A- Hawaii promise program; established. (a) Notwithstanding section 304A-502, there is established the Hawaii promise program to be administered by the board of regents. The program shall provide scholarships for the unmet direct cost needs of qualified students who are:

(1) Pursuing undergraduate degrees in registered nursing, elementary or secondary education, and civil engineering; and

(2) Enrolled at any University of Hawaii campus.

(b) A student enrolled in an undergraduate degree in registered nursing, elementary or secondary education, or civil engineering at a University of Hawaii campus is eligible for scholarship consideration for a maximum of eight semesters if the student:

(1) Qualifies for Hawaii resident tuition;

(2) Completes and submits the FAFSA for each academic year, and accepts all federal and state aid, grants, scholarships, and other funding sources that do not require repayment;

(3) Is enrolled in the degree program with twelve or more credits per semester;

(4) Maintains satisfactory academic progress, as defined by federal requirements established pursuant to Title IV of the Higher Education Act of 1965, as amended, and determined by the campus at which the student is enrolled; and

(5) Has been determined by the campus to have unmet direct cost needs.

(1) On a first-come, first-served basis;

(2) In an amount equal to the studentꞌs unmet direct cost need based on the FAFSA calculation of need minus what is available from Pell grants and other funding sources specified in subsection (b)(2); and

(3) To the extent funds are available to support the scholarship award.

(d) To continue to qualify for a scholarship under this section, a student shall:

(1) Maintain a grade point average of 2.5 or higher, on a scale of 4.0 or its equivalent;

(2) Earn a minimum of twenty-four credits in each academic year; and

(3) Comply with any other conditions placed on the scholarship by the University of Hawaii.

(e) A student who fails to comply with the requirements of this section shall be placed on scholarship probation. Social, economic, and other factors, or other extenuating circumstances as determined by the University of Hawaii, shall be considered in determining probationary status.

During the probationary period, the student shall demonstrate satisfactory progress toward meeting completion of the degree and satisfying the requirements of the scholarship. Failure to meet the probationary period requirements in this section shall result in revocation of the student's scholarship, with the student responsible for reimbursing the University of Hawaii for up to two semesters of scholarship amounts received under the program. A student may be placed on scholarship probation for no more than one semester during an eight-semester period at a University of Hawaii campus.

(f) As used in this section:

"Direct cost" includes tuition, fees, books, supplies, and transportation.

"FAFSA" means the Free Application for Federal Student Aid."

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 2018-2019 to establish and implement the Hawaii promise program, including the provision of the program's scholarships.

The sum appropriated shall be expended by the University of Hawaii for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2018.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2082
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII