Report Title:

Rehabilitative and Related Services Graduate School Loan Program; Loan Forgiveness; Appropriation

 

Description:

Establishes a graduate school loan program and corresponding special fund for qualified individuals in the areas of occupational therapy, physical therapy, speech language pathology, and school psychology.  Provides for a loan forgiveness schedule for individuals who maintain approved employment.  Appropriates funds for the program.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

2585

TWENTY-FOURTH LEGISLATURE, 2008

 

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to graduate loan programs.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that over the past several years, Hawaii's need for licensed physical therapists, registered occupational therapists, licensed speech language pathologists, and school psychologists has exponentially grown to service infants and toddlers, from birth to age three, school-aged children, working adults, and the aging population.  However, there are currently no graduate programs in physical therapy or occupational therapy in the State and recruitment and retention of quality staff challenges the entire educational, social services, and related industries in Hawaii.  Although the University of Hawaii does maintain a graduate degree program in speech and audiology, the program is currently under probation making future accreditation questionable.  Additionally, there is one graduate program in school psychology, but it is currently not accredited.  As a result, many Hawaii residents are not only seeking further education in the areas of physical, occupational, and speech therapy outside of the State, but are also continuing to pursue their careers outside of Hawaii.  The legislature further finds that the need to establish incentives to recruit qualified individuals for the provision of necessary rehabilitative, therapeutic, and other related services in Hawaii will help to build the State's workforce and ensure our residents receive proper care and treatment.

     The purpose of this Act is to establish a rehabilitative and related services graduate school loan program for licensed therapists and related service providers enrolled in accredited programs.  The program shall also provide for loan forgiveness based upon employment in Hawaii with the State or another qualifying institution following completion of the graduate program.

     SECTION 2.  Chapter 304A, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part    .  REHABILITATIVE and related

SERVICES graduate school loan program

     §304A-A  Definitions.  As used in this part, unless the context otherwise requires:

     "Approved course of study" means a course of study in occupational therapy, physical therapy, or speech language pathology approved by the board of physical therapy, the director of commerce and consumer affairs, and the board of speech pathology and audiology, as appropriate, or a school psychology program that is professionally accredited.

     "Approved employment" means employment with the State or a nonprofit agency or health care organization that satisfies the work requirement under the program in the field of physical therapy, occupational therapy, speech language pathology, or school psychology.  Approved employment does not include volunteer services or employment before graduation.

     "Program" means the rehabilitative and related services graduate school loan program established under this part.

     "Rehabilitative services" means medical or remedial services provided for the reduction of a physical or mental disability that helps recipients to reach a better functional level and includes services provided in the fields of physical therapy, occupational therapy, and speech language pathology.

     "Related services" means services that are intended to address the individual needs of students with disabilities in order that they may benefit from their educational program.

     "Student" means any resident domiciled in this State, who:

     (1)  Is a United States citizen or a permanent resident alien; and

     (2)  Is a college graduate or a full-time student in good standing in a graduate program in physical therapy, occupational therapy, or speech pathology and audiology at a United States accredited university or college.

     "University" means the University of Hawaii.

     §304A-B  Rehabilitative and related services graduate school loan program; established; administration.  (a)  There is established a five‑year pilot program to be known as the rehabilitative and related services graduate school loan program to provide financial support to individuals who complete graduate programs in the fields of physical therapy, occupational therapy, speech language pathology, and school psychology and who agree to work in those fields in the State for at least three years after completion of the graduate programs.  The program shall be administered by the University of Hawaii center for disability studies.

     (b)  The center for disability studies may provide loans up to $10,000 per academic year to an eligible student upon confirmation from an approved educational institution that the student has been accepted for enrollment in an approved course of study.  Loans shall not exceed the amount set forth herein and shall only be used for tuition, books, laboratory fees, and any other required fees necessary to complete a rehabilitative and related services graduate school program.  The loan shall be renewable for one additional year. 

     (c)  Eligibility shall be determined by the center for disability studies on a competitive basis; provided that each applicant shall meet all of the following requirements:

     (1)  Show proof of admission to an approved course of study;

     (2)  Comply with any conditions placed on the loan by the center for disability studies;

     (3)  Demonstrate an overall grade point average of at least 3.0 in the student's undergraduate studies, or maintain an overall grade point average of at least 3.0 in the student's graduate program; and

     (4)  Enter into a written agreement with the center for disability studies to:

         (A)  Satisfy all degree requirements and other requirements under this part;

         (B)  Commence employment in this State within six months after completion of an approved degree in physical therapy, occupational therapy, speech language pathology, or school psychology and continue employment for a period of three years for each year a loan is awarded, unless the center for disability studies determines that there are extenuating circumstances for noncompletion; and

         (C)  Reimburse the center for disability studies all amounts received under this chapter and interest thereon, as determined by the center for disability studies, if the student fails to comply with subparagraphs (A) and (B).

     (d)  A student shall apply to the center for disability studies, and include all information and documentation required by the center for disability studies.

     (e)  A student who receives a loan under the program shall commence approved employment no later than six months after the receipt of the degree sought.  The student shall continue approved employment for a period of three years for each year a loan was awarded to qualify for loan forgiveness under section §304A-C.

     (f)  If a student terminates enrollment in a qualifying rehabilitative or related services graduate school program during the academic year or prior to completion of the approved course of study, the approved educational institution shall notify the center for disability studies in writing and shall return all unused portions of the loan.  Returned amounts shall be used to fund other loans under this part.

     (g)  Loans awarded under the program shall be limited to funds contained in the rehabilitative and related services graduate school loan program special fund under section 304A-F.

     (h)  The university shall adopt policies and procedures in accordance with chapter 91 to implement the program; provided that the center for disability studies shall be exempt from the public notice and public hearing requirements of chapter 91 with regard to this part.

     §304A-C  Repayment of loans; loan forgiveness.  (a)  All loans made under this part shall bear interest at five per cent simple interest.  Repayment of principal and interest charges shall commence no later than six months following the receipt of a rehabilitative or related services graduate degree unless the center for disability studies determines there are extenuating circumstances that would delay repayment or the loan recipient's continuation of the loan recipient's rehabilitative or related services graduate education, not to exceed an additional three years. 

     (b)  The repayment period for all loans received from the center for disability studies shall be ten years from the date of the initial payment.  The center for disability studies may charge late fees and all other reasonable costs for the collection of delinquent loans.  Repayment of the loan shall begin six months following graduation from the rehabilitative or related services graduate school program unless the loan recipient meets the requirements of this section.

     (c)  Upon a showing of proof that the loan recipient has completed a state-approved rehabilitative or related services graduate school program and for each of the three years per loan awarded that the loan recipient is employed in approved employment, one-third of the outstanding loan amount shall be forgiven for each year of approved employment or a pro rata amount for approved employment during part-time employment or other eligible part-time work.

     (d)  If a loan recipient who is a graduate of a state‑approved rehabilitative or related services graduate school program fails to be employed in approved employment for at least three years for each year a loan was awarded, from the loan recipient's original date of qualifying employment, excluding temporary leaves of absence, the loan recipient shall repay the original loan amount at the rate of ten per cent simple interest.

     (e)  Liability for repayment of a loan shall be cancelled upon the death or permanent total disability of the borrower.

     §304A-D  Program administration.  (a)  The center for disability studies shall monitor and verify a student's or loan recipient's eligibility and fulfillment of all work requirements under this part.

     (b)  The center for disability studies shall enforce repayment of all loans for a loan recipient who does not comply with this part.  In accordance with chapter 103D, the center for disability studies may enter into written contracts with collection agencies for the purpose of collecting delinquent loans.  All payments collected, exclusive of a collection agency's commissions, shall revert, and be credited, to the rehabilitative and related services graduate school loan program special fund.  A collection agency that enters into a written contract with the center for disability studies for the collection of delinquent loans pursuant to this section may collect a commission from the debtor in accordance with the terms of, and up to the amounts authorized in, the written contract.

     §304A-E  Annual report.  (a)  The center for disability studies shall publish an annual report that shall include information regarding the operation of the program and other relevant information, including:

     (1)  The total number of students receiving loans;

     (2)  The total amount of loans provided;

     (3)  The number of full-time and part-time students receiving loans, reported by institution;

     (4)  The amount of funds awarded to students; and

     (5)  The total number of students who withdraw from the program.

     (b)  The annual report shall be submitted to the governor and the legislature not later than twenty days prior to the convening of the regular session of 2009 and each regular session thereafter."

     SECTION 3.  Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to subpart C of part V to be appropriately designated and to read as follows:

     "§304A-F  Rehabilitative and related services graduate school loan program special fund.  There is established the rehabilitative and related services graduate school loan program special fund, for the purpose of providing loans pursuant to section 304A-B.  Appropriations made by the legislature, private contributions, repayment of loans, including interest and payments received on account of principal, and moneys from other sources may be deposited into the special fund; provided that:

     (1)  Moneys on balance in the special fund at the close of each fiscal year shall remain in that fund and shall not lapse to the credit of the general fund; and

     (2)  An amount from the special fund not exceeding five per cent of the total amount of outstanding loans may be set by the center for disability studies to be used for administrative expenses incurred in administering the special fund."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $350,000 or so much thereof as may be necessary for fiscal year 2008-2009 to the rehabilitative and related services graduate school loan program special fund.

     SECTION 5.  There is appropriated out of the rehabilitative and related services graduate school loan program special fund of the State of Hawaii the sum of $350,000 or so much thereof as may be necessary for fiscal year 2008-2009 to the center for disability studies of the University of Hawaii for the administration of the rehabilitative and related services graduate school loan program.

     The sum appropriated shall be expended by the University of Hawaii for the purposes of this Act.

     SECTION 6.  In codifying the new sections added by sections 2 and 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 7.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 2008; provided that sections 2 and 3 of this Act shall be repealed on June 30, 2013.

 

INTRODUCED BY:

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