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HB2304
HOUSE OF REPRESENTATIVES
H.B. NO.
2304
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
RELATING
TO PRIVATE SUPPORT OF EDUCATION
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The
legislature finds that conditional gifts made for purposes to support private
educational efforts, including both schooling and scholarships, promotes
learning, access, and academic advancement, and are not intended to create
contractual obligations.
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Treating such
awards as contractual obligations may undermine donor intent, discourage
charitable giving, and create uncertainty and inconsistent legal treatment of
these awards.
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The legislature further finds that
donor-conditioned awards customarily include specified eligibility criteria, such
as academic performance minimums, standards of conduct, and enrollment status,
and require compliance with the donor's stated requirements for the
continuation of the award.
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The legislature further finds that
recognizing and providing guidance about the nature and benefits of these
conditional educational gifts is a public purpose, and will preserve and
promote donors' intentions, will encourage flexibility, innovation, and additional
philanthropic educational support across the State for students, and will
promote uniform statewide treatment.
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The legislature finds that private
pre-schools and private K-12 schools in Hawaii have long played an important
role in the community and that confirming that treating free education and
scholarships as
gifts
will encourage
private support for education.
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The legislature further finds that
establishing statewide uniformity in the treatment of private conditional gifts
will be beneficial and avoid potentially conflicting treatment for private
sponsors of educational programs.
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The legislature also finds that through this approach, students
in private pre-K and K-12 education institutions and students receiving
scholarships for such schooling will enjoy stronger support and be able to
benefit from these educational resources, opportunities, and activities without
the fear of legal penalties for any perceived contractual obligations to the
student or the institution.
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The purpose of the Act is to clarify and
establish uniformity regarding the relationship between private schools where
no tuition is required, students, and donors concerning educational awards
conditioned on donor-specified requirements, and to provide that such awards
are considered conditional gifts rather than contractual obligations.
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SECTION 2.
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The Hawaii Revised Statutes is amended by
adding a new chapter to be appropriately designated and to read as follows:
"
CHAPTER
EDUCATIONAL
GIFTS
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Donor-conditioned
educational awards; conditional gift.
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(a)
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A donor-conditioned educational award for
attendance at a private pre-school, elementary, middle, or high school for
which no tuition or other monetary consideration is required or paid by the
recipient shall be considered to be a conditional gift and not a contract,
notwithstanding that the school operator may require the student or the
student's parents or guardians to:
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(1)
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Pay
for any optional extra-curricular benefits, goods, or services;
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(2)
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Permit
use of the student's name, image, likeness, or work product for non-commercial
purposes; or
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(3)
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Sign
waivers, consents, or similar agreements as a condition of participation in any
school-related activity.
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(b)
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A conditional gift under this section may be subject to reasonable
conditions, including eligibility criteria, academic performance minimums,
standards of conduct, enrollment status, or other donor-imposed or educational
institution requirements, and the continuation of the award shall be contingent
upon the satisfaction of those conditions.
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(c)
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The modification or termination of a
donor-conditioned educational award for failure to satisfy the applicable
conditions shall not give rise to a contractual claim; provided that the
conditions are applied in a manner consistent with the terms of the award and
applicable law.
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(d)
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As used in this section,
"donor-conditioned educational award" means a scholarship, grant,
tuition waiver, or similar educational benefit funded in whole or in part by a
private donation, endowment, or charitable contribution and subject to donor-imposed
conditions.
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SECTION 3.
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This Act shall apply only to
donor-conditioned educational awards made on or after its effective date.
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SECTION 4.
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If any provision of this Act or the
application thereof to any person or circumstance is held invalid, the
invalidity does not affect other provisions or applications of the Act that can
be given effect without the invalid provision or application, and to this end
the provisions of this Act are severable.
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SECTION 5.
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This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
BY REQUEST
Report Title:
Educational
Gifts; Donor-Conditioned Educational Awards; Conditional Gifts; Contractual
Relationships
Description:
Clarifies
that free tuition at private educational institutions are to be considered
conditional gifts that support educational advancements rather than contractual
obligations.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.