Report Title:

Education; Trust Fund

Description:

Creates a trust fund to fund scholarships as a requirement of the State's participation in the federal Gaining Early Awareness and Readiness for Undergraduate Program. (HB1893 HD2)

HOUSE OF REPRESENTATIVES

H.B. NO.

1893

TWENTY-SECOND LEGISLATURE, 2004

H.D. 2

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO EDUCATION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The University of Hawaii (UH) is the designated recipient of funds granted by the United States Department of Education to the State under the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP), established pursuant to the 1998 amendments to the federal Higher Education Act of 1985.

To award scholarships in a manner consistent with the requirements for scholarships under GEAR UP, UH must establish a separate charitable trust fund to hold moneys received under the GEAR UP program until those moneys can be awarded to students.

The purpose of this Act is to:

(1) Confirm the authority of UH to establish a charitable trust, consistent with the requirements of GEAR UP, to hold moneys received under the GEAR UP program;

(2) Exempt the trust, and the specification of scholarship recipient eligibility under the trust, from the requirements of chapter 91, Hawaii Revised Statutes; and

(3) Confirm the private nature of the trust.

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

"304-      GEAR UP Hawaii scholarship trust fund. (a) The University of Hawaii may, in its sole discretion, establish a charitable trust, recognized as tax-exempt under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, to be known as the GEAR UP Hawaii scholarship trust fund. The trust fund shall be used to establish and maintain a financial assistance program to:

(1) Receive funds from the United States Department of Education under the Gaining Early Awareness and Readiness for Undergraduate Programs established pursuant to 20 U.S.C. 107a-21; and

(2) Award scholarships to eligible students.

Scholarships shall be awarded and funds shall be transferred to the trust fund in accordance with the requirements of the federal Gaining Early Awareness and Readiness for Undergraduate Programs and as the University of Hawaii, as settlor of the trust, may determine in its discretion.

(b) The establishment and management of the trust fund by the University of Hawaii shall not be subject to chapter 91.

(c) The trust fund and any trustee of the trust fund shall not be considered a public or quasi-public entity. The initial funding and any future transfer of moneys to the trust fund shall not constitute a state grant or subsidy. The trust fund shall not be subject to laws, rules, and regulations governing the State and other public or quasi-public entities, including but not limited to chapters 23, 36, 37, 38, 40, 42F, 76, 78, 84, 89, 91, 92, 92F, 103, and 103D.

(d) This section shall be liberally construed so as not to hinder or impede the University of Hawaii in its participation in the Gaining Early Awareness and Readiness for Undergraduate Programs, including the establishment and operation of the trust fund."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2004.