STAND. COM. REP. 795

Honolulu, Hawaii

, 2003

RE: H.B. No. 736

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 736 entitled:

"A BILL FOR AN ACT RELATING TO PROFESSIONAL AND VOCATIONAL LICENSES,"

begs leave to report as follows:

The purpose of this bill is to prohibit a professional or vocational licensing board from taking adverse action based on a student loan default without first requiring an entity that administers student loans to obtain a court order that specifies the amount of the default.

The University of Hawaii testified in support of the bill and offered an amendment. The Committee on Student Loan Legislation and the Young Lawyers Division of the Hawaii State Bar Association supported the intent of the bill. The Department of Commerce and Consumer Affairs submitted comments.

Your Committee has amended the bill by:

(1) Limiting license sanctions to a borrower who defaults on a student loan that financed the borrower's education;

 

(2) Requiring the lender who certifies the student loan default to obtain a court order that specifies the amount of the default and includes a finding that the borrower has the financial means to cure the default without undue hardship;

(3) Permitting the licensing board to suspend a license based on a certification by the lender of a student loan;

(4) Permitting the licensing authority for insurance producers to suspend or deny licensure due to a certification of a student loan default; and

(5) Making technical, nonsubstantive changes for style, clarity, and consistency.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 736, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 736, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

 

____________________________

ERIC G. HAMAKAWA, Chair