STAND. COM. REP. NO74

Honolulu, Hawaii

, 2001

RE: H.B. No. 1411

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred H.B. No. 1411 entitled:

"A BILL FOR AN ACT RELATING TO SECONDARY MARKET SERVICES CORP.--HAWAII,"

begs leave to report as follows:

The purpose of this bill is to allow the Secondary Market Services Corp.--Hawaii (SMS-Hawaii) to acquire student loan notes held by brokers outside of the State, as well as from local financial institutions.

The University of Hawaii, SMS-Hawaii, Pacific Financial Aid Association, HawaiiUSA Federal Credit Union, Hawaii Credit Union League, and American Savings Bank supported this bill.

Your Committee finds that SMS-Hawaii, a nonprofit corporation formed in 1992 at the request of the Legislature and the Governor, helps to ensure that the supply of private capital for low interest education loans is continually replenished by purchasing loans from lenders, who can then reinvest in new education loans. Since only 45 percent of loans to students in Hawaii are from local financial institutions, deleting language restricting SMS-Hawaii would enable it to offer its benefits to all of Hawaii's students regardless of the lending institution.

As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1411 and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection and Commerce.

 

Respectfully submitted on behalf of the members of the Committee on Higher Education,

____________________________

ROY TAKUMI, Chair