Honolulu, Hawaii

, 2002

RE: H.B. No. 2164

H.D. 2

S.D. 1



Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Education, to which was referred H.B. No. 2164, H.D. 2, entitled:


begs leave to report as follows:

The purpose of this measure is to amend the Hawaii Educator Loan Program law by:

(1) Reducing the repayment schedule from ten years to six years;

(2) Exempting the rules from the public notice and public hearing requirements of chapter 91, Hawaii Revised Statutes;

(3) Establishing an appropriation ceiling for the loan program;

(4) Authorizing up to five per cent of outstanding loans for administrative costs; and

(5) Requesting supplemental funds for the program.

Your Committee received testimony in support of this measure from the Lieutenant Governor, University of Hawaii, Superintendent of Education, Hawaii State Teachers Association, the Hawaii Business Roundtable, and an individual.

Your Committee finds that the current teacher shortage and high attrition rate must be addressed. Research indicates that new teachers usually leave the profession between the first three to five years of teaching. However, retention increases significantly if a teacher stays in the system past five years. Rather than requiring ten years of service, this measure reflects a more realistic time frame of six years, after which the likelihood of staying in the profession increases.

Further, exempting the new rules from the public notice and public hearing requirements of chapter 91, Hawaii Revised Statutes, will expedite the time it takes for these loans to be made available to the students. Supplemental funds are necessary to expand the program to include more students, committing more graduates to the Department of Education as teachers.

Your Committee has amended this measure by making technical amendments to add an appropriation from the Educator Loan Program Special Fund to the University of Hawaii to allow the University to expend funds to implement the Hawaii Educator Loan Program, and to include a reference to the Hawaii Revised Statutes.

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

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