STAND. COM. REP. NO.191-02
RE: H.B. No. 2752
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Higher Education, to which was referred H.B. No. 2752 entitled:
"A BILL FOR AN ACT RELATING TO PROFESSIONAL AND VOCATIONAL LICENSES,"
begs leave to report as follows:
The purpose of this bill is to encourage repayment of student loans by authorizing the licensing authority to suspend the license of any professional who has defaulted on a student loan, or breached or failed to perform the service requirements of a student loan repayment or scholarship contract.
The University of Hawaii and Hawaii Credit Counseling Service submitted testimony in support of this bill. The Department of Commerce and Consumer Affairs submitted comments on this bill.
Your Committee finds that professionals who default on federal and state student loans create a significant taxpayer liability. All taxpayers must pay the cost for these individuals' failure to adhere to their loan payment schedule or service commitment. This bill will provide a powerful means by which those who default on their loans can be held accountable for their actions, and deter those who might default in the future.
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. 2752 and recommends that it pass Second Reading and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Higher Education,
ROY TAKUMI, Chair