STAND. COM. REP. NO.35-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2164

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred H.B. No. 2164 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EDUCATOR LOAN PROGRAM,"

begs leave to report as follows:

The purpose of this bill is to amend the Hawaii Educator Loan Program (Program) and Special Fund (Fund) by:

(1) Reducing the loan forgiveness period from ten to six years;

(2) Specifying that ten percent of the loan amount is forgiven in each of the first five years of service, and the remaining amount is forgiven after the sixth year;

(3) Establishing an appropriation ceiling for the Fund, provided that moneys remaining in the Fund at the end of each fiscal year shall remain in the Fund;

(4) Authorizing the expenditure of up to five percent of the amount of outstanding loans for administrative costs of the Fund;

(5) Appropriating $200,000 to the Program; and

(6) Exempting the University of Hawaii (UH) from public notice and hearing requirements in adopting rules for the implementation of the Program.

The Department of Education, UH, Lieutenant Governor, Hawaii Teacher Standards Board, Hawaii Association of Independent Schools, and the Hawaii Business Roundtable submitted testimony in support of this bill.

Your Committee finds that this bill makes several amendments to this worthy loan program to improve its administration and make it more attractive to future teachers. With the shortage of teachers throughout the State, the Legislature should make every attempt possible to ensure that there is a reliable source of teachers, trained locally, who will stay to teach. This Program and the changes proposed in this bill will go a long way toward fulfilling that goal.

Upon further consideration, your Committee has amended this bill by:

(1) Allowing collection agencies who enter into contracts with UH to collect delinquent loans from students to pass its fees on to the debtors;

(2) Replacing the amount of the appropriation with and unspecified amount to facilitate further discussion; and

(3) Making other technical, nonsubstantive amendments for purposes of style and clarity.

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. 2164, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2164, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

ROY TAKUMI, Chair