STAND. COM. REP. NO.899-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2033

S.D. 2

H.D. 1




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 S.B. No. 2033, S.D. 2, entitled:


begs leave to report as follows:

The purpose of this bill is to amend the Hawaii Educator Loan Program (Program) by:

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

(2) Specifying that ten percent of the loan amount is forgiven in each of the first five years of service, and the remaining amount is forgiven after the sixth year;

(3) Establishing an appropriation ceiling for the Hawaii Educator Loan Program Special Fund (Special Fund), provided that moneys remaining in the Special Fund at the end of each fiscal year shall not lapse into the general fund;

(4) Authorizing up to five percent of the total amount of outstanding loans to be spent for administrative expenses;

(5) Appropriating an unspecified amount to the Program; and

(6) Exempting the University of Hawaii (UH) from the public notice and hearing requirements of the Hawaii Administrative Procedure Act, in its adoption of rules to implement the Program.

The Lieutenant Governor, UH, Department of Education, and Hawaii Association of Independent Schools submitted testimony in support of this bill.

Your Committee finds that this bill makes several amendments to this worthy loan Program to improve its administration and make it more attractive to future teachers. With the shortage of teachers throughout the State, the Legislature should make every attempt possible to ensure that there is a reliable source of teachers, trained locally, who will stay in Hawaii to teach. This Program and the changes proposed in this bill will go a long way toward fulfilling that goal.

Upon further consideration, your Committee has amended this bill by:

(1) Allowing collection agencies that enter into contracts with UH to collect delinquent loans from students, to pass its fees on to the debtors; and

(2) Making other technical, nonsubstantive changes for purposes of style and clarity.

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 S.B. No. 2033, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2033, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

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