HB542 HD1

SECTION 1. The legislature finds that the cost of attendance remains a significant barrier for many of Hawaii's residents pursuing higher education.

In the 2021-2022 academic year, 5,590 students from the Manoa, Hilo, and West Oahu four-year campuses experienced a gap between the direct cost of their education and what was provided by scholarships or grants. For these three universities, unmet need totaled $14,112,400. These students averaged a gap of $2,524.58 that could not cover the entirety of the costs associated with tuition, fees, books, supplies, and transportation.

In 2017, the university of Hawaii implemented the Hawaii promise program, which provides need-based awards intended to be applied toward the unmet need of qualified students enrolled at any community college campus of the university of Hawaii. Awards are contingent upon funding. Amounts are determined by the individual student's Free Application for Federal Student Aid information. Evidence from the early implementation of the Hawaii promise program demonstrates that students who receive the funding earned more credits and continued toward graduation at a higher rate than students who did not receive the funding.

Even though financial aid provided by federal Pell grants, university of Hawaii and private scholarships, the GI Bill for service members and veterans, and employers covers much of the cost for need-based students, cost is still a barrier for certain need-based students, especially 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 legislature further finds that an educated labor force and engaged citizenry are essential in today's global, knowledge-based economy. Thus, increasing the number of students who enroll and earn degrees, particularly those from underserved regions and populations, to prepare them for success in the workforce and their communities is a matter of statewide concern. However, according to the most recent data available, only forty-eight per cent of Hawaii's working-age adults have a postsecondary degree.

The purpose of this Act is to expand the Hawaii promise program to provide scholarships for the unmet needs of qualified undergraduate students enrolled at the university of Hawaii at Manoa, the university of Hawaii at Hilo, and the university of Hawaii-West Oahu, and to provide an appropriation to establish and implement the expanded 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 qualified students enrolled at any [~~community college~~] campus of the [~~University~~] university of Hawaii.

(b) A student enrolled at a community college campus shall be eligible for scholarship consideration for a maximum of eight semesters 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; provided that this paragraph shall not apply to a student who enrolls in a certificate program;

(3) Is enrolled 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 in an undergraduate program at a university of Hawaii campus, other than a community college campus, shall be eligible for scholarship consideration for a maximum of eight semesters if the student:

(1) Qualifies for Hawaii resident tuition;

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

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

[~~(c)~~] (d) Scholarships shall be awarded to the extent possible based on available funds and on a greatest need basis. An award granted to a student shall be [~~equal to~~] no higher than 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; provided that the unmet direct cost need for a student who enrolls in a community college certificate program shall be based on a suitable instrument, as determined by the university of Hawaii, less the amounts available to the student from grants and other scholarships.

[~~(d)~~] (e) To maintain a scholarship under this section, a student shall meet the requirements of subsection (b)(4)[.] or (c)(4), as applicable.

[~~(e)~~] (f) 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."

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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to carry out the purposes of this Act, including the provision of Hawaii promise program scholarships.

The sums 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 shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	542
THIRTY-THIRD LEGISLATURE, 2025		H.D. 1
STATE OF HAWAII