SB2931

SECTION 1. The legislature finds that the University of Hawaii's graduation initiative is a systemwide strategic initiative endorsed by the board of regents with a goal to increase the educational capital of the State by increasing the participation and completion of students, particularly native Hawaiians, low-income students, and those from underserved regions and populations, and preparing them for success in the workforce and their communities.

The legislature further finds that an educated labor force and engaged citizenry are essential in today's global, knowledge-based economy. Across the nation, states have set ambitious goals to boost college completion rates. Hawaii's 55 by '25 campaign goal focuses on increasing the percentage of working age adults with two- or four-year degrees to fifty-five per cent by 2025. According to the most recent data available, forty-five per cent of Hawaii's working age adults have a postsecondary degree. As the State's sole public higher education system, the University of Hawaii is committed to doing its part to close the State's projected educational attainment gap.

In April 2016, the Institute for Research on Higher Education at the University of Pennsylvania Graduate School of Education issued a study that analyzed college costs in relation to family income level. The study revealed how higher education has gone from expensive to unaffordable for most low- and middle-income families. According to the study, Hawaii ranked third in the nation for overall college affordability and the University of Hawaii community colleges are the most affordable public two-year institutions in the nation.

The study further acknowledged that despite Hawaii's overall high affordability ranking, attending college was a big expense for families earning less than $30,000 annually; that Hawaii's financial aid policies did little to alleviate costs for these families; and that the State provided minimal need-based aid to students attending public institutions which would provide support for tuition assistance and living expenses based on individual students' financial needs. Since this study, with the support of the legislature, the University of Hawaii implemented the Hawaii community college promise program, which provides scholarships for the unmet direct cost needs of qualified students enrolled at any community college campus of the University of Hawaii. Awards are contingent upon funding and amounts are equal to the student's unmet direct cost need, based on the Free Application for Federal Student Aid calculation of need, less the amounts available to the student from Pell grants and other scholarships.

Despite financial aid through federal Pell Grants, University of Hawaii and private scholarships, the Post 9/11 GI Bill Yellow Ribbon Program for service members and veterans, and employers, cost is still a barrier for certain need-based students, especially for those who do not qualify for the Hawaii promise program because they are enrolled at one of the University of Hawaii's four-year campuses.

The purpose of this Act is to expand the Hawaii community college promise program to provide scholarships intended to be applied toward the unmet need of qualified undergraduate students enrolled at the University of Hawaii at Manoa, University of Hawaii at Hilo, and University of Hawaii-West Oahu, and to provide an appropriation to establish and implement the program.

SECTION 2. Section 304A-506, Hawaii Revised Statutes, is amended to read as follows:

"[[]§304A-506[]] Hawaii [~~community college~~] promise program; established. (a) Notwithstanding section 304A-501, there is established the Hawaii [~~community college~~] promise program to be administered by the board of regents. The program shall provide scholarships for the unmet [~~direct cost needs of~~] costs associated with enrollment at any University of Hawaii campus for qualified students [~~enrolled at any community college campus of the University of Hawaii~~].

(b) A student enrolled at a University of Hawaii community college campus shall be eligible for scholarship consideration for a maximum of [~~eight semesters~~] 66 credits if the student:

(1) Qualifies for Hawaii resident tuition;

(2) Completes and submits the Free Application for Federal Student Aid 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~~] Maintains enrollment in a classified degree or certificate program with six 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.

(c) A student enrolled at a University of Hawaii four-year campus shall be eligible for scholarship consideration for a maximum of 132 credits if the student:

(1) Qualifies for Hawaii resident tuition;

(2) Completes and submits the Free Application for Federal Student Aid for each academic year and receives a federal Pell grant;

(3) Maintains enrollment in a baccalaureate degree program;

(5) Has been determined by the campus to have tuition and fees unmet needs.

(d) A student who transfers from a University of Hawaii community college campus to a University of Hawaii four-year campus to pursue a baccalaureate degree may be eligible for scholarship consideration for a maximum of 132 credits less the number of credits for which they received a Hawaii promise scholarship at the community college campus if the student meets the qualifications specified in subsection (c).

[~~(c)~~] (e) Scholarships shall be awarded to the extent possible based on available funds and on a greatest need basis. [An award granted to a student enrolled at a community college shall be equal to the student's unmet direct cost need, based on the Free Application for Federal Student Aid calculation of need, less the amounts available to the student from Pell grants and other scholarships.

~~(d) To maintain a scholarship under this section, a student shall meet the requirements of subsection (b).~~

(e) As used in this section, "direct cost" means any cost directly related to a student's education, including tuition; educational fees; and the costs of books, supplies, and transportation between the student's dwelling and the student's campus.]

(f) The University of Hawaii shall establish policies and procedures to effectuate this section."

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 2021-2022 for the purposes of this Act.

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

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

SECTION 5. This Act, upon its approval, shall take effect on July 1, 2020.

INTRODUCED BY:

_____________________________

BY REQUEST

THE SENATE	S.B. NO.	2931
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII