STAND. COM. REP. NO.468-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2164

H.D. 2




Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Finance, to which was referred H.B. No. 2164, H.D. 1, entitled:


begs leave to report as follows:

The purpose of this bill is to support teacher education and retention by strengthening the Hawaii Educator Loan Program (Program) and the Hawaii Educator Loan Program Special Fund (Fund) by:

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

(2) Specifying a schedule of loan forgiveness to conform to the reduction in the loan forgiveness period;

(3) Authorizing additional sources of funding for the Fund;

(4) Establishing an appropriation ceiling for the Fund;

(5) Declaring that funds remaining at the end of each fiscal year shall remain in the Fund and shall not lapse to the general fund;

(6) Specifying that not more than 5 per cent of the total amount of outstanding loans may be used for administrative expenses of the Fund;

(7) Expediting the implementation of the Program by exempting the University of Hawaii (UH) from the public notice and public hearing requirements of chapter 91, Hawaii Revised Statutes, when adopting rules for the Program;

(8) Appropriating an unspecified amount to be deposited in the Fund; and

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

The Lieutenant Governor, Department of Education, Hawaii Teacher Standards Board, Hawaii State Teachers Association, and Hawaii Association of Independent Schools submitted testimony in support of this bill.

Your Committee has amended this measure by making technical, nonsubstantive amendments for purposes of style and clarity.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2164, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2164, H.D. 2.

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