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Joint Judiciary–Education committee advances SB 3123 after debate over donor intent and 'conditional gifts'
Summary
In a joint hearing, the committees advanced SB 3123, which clarifies that donor-funded scholarships and tuition-free programs at private institutions are conditional gifts rather than contracts. Supporters said the bill protects donor intent and stabilizes aid; some members raised concerns about potential effects on contractual obligations and selectivity for Native Hawaiian students.
The joint Judiciary and Education committees on SB 3123 moved the bill out of committee after testimony and extended questioning about whether donor-funded scholarships and tuition-free programs at private institutions should be treated as conditional gifts rather than contracts.
Supporters from private and independent-school groups, including the Hawaii Association of Independent Schools, Kamehameha Schools representatives and other community organizations, testified the bill "is fundamentally about protecting the spirit of the gift," ensuring that donor-funded scholarships and tuition-free educational pathways are treated as charitable educational gifts and not commercial contracts. Sienna Jolie, executive director of the Hawaii Association of…
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