CONFERENCE COMMITTEE REP. 20

Honolulu, Hawaii

, 2003

RE: H.B. No. 736

H.D. 1

S.D. 2

C.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 736, H.D. 1, S.D. 2, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to provide professional and vocational licensees and license applicants with due process protection, by requiring that before a licensing entity imposes license sanctions under chapter 436C, Hawaii Revised Statutes (HRS), for a student loan default, the default and other bases for the sanctions must be certified by the loan administering entity pursuant to an administrative order.

Your Committee on Conference finds that Act 226, Session Laws of Hawaii 2002, codified as chapter 436C, HRS, requires a professional or vocational licensing authority, upon receipt of a certification by a loan administering entity, to immediately deny, suspend, or revoke the license of an individual who has defaulted on or breached their student loan contract.

This bill addresses the perception that the Act does not afford license applicants and licensees sufficient due process protections, and fails to make allowance for those who lack the financial ability to fulfil their student loan commitments. The bill does so by requiring that the loan administering entity base its certification of a licensee or license applicant's default on administrative findings to that effect.

Your Committee on Conference has amended this bill by:

(1) Replacing the requirement that the certification be based on an administrative order, with the requirement that certification be based on the judgment of a district or circuit court in this State;

(2) Making technical amendments centralizing the certification requirements in chapter 436C, HRS, removing specific references to the requirements from the individual statutes of licensing authorities, and replacing them with the general requirement that certification be made pursuant to chapter 436C, HRS;

(3) Providing that the court must find that the education of the licensee or license applicant was financed by the student loan, student loan repayment contract, or scholarship contract that is in default;

(4) Listing the factors and other information that a court may consider in determining whether repayment of the loan would impose financial hardship on the defaulting licensee or license applicant;

(5) Providing that the court need not make findings concerning financial hardship if the defaulter does not claim financial hardship, or there is a default judgment;

(6) Removing the term "applicable" from the definition of "applicable licensing authority," and making amendments to reflect the change; and

(7) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 736, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 736, H.D. 1, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________

RON MENOR, Chair

____________________________

KENNETH T. HIRAKI, Co-Chair

____________________________

COLLEEN HANABUSA, Co-Chair

____________________________

ERIC G. HAMAKAWA, Co-Chair