Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1411 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize Secondary Market Services Corporation--Hawaii, the state designated student loan secondary market, to purchase student loan notes held by mainland financial institutions.

Your Committee finds that Secondary Market Services Corporation--Hawaii is a nonprofit corporation authorized by the Legislature to purchase student loans in 1992. Since that time, the internet has changed the pattern of student borrowing so that Hawaii students are increasingly obtaining loans from lenders located outside of the State.

Your Committee finds that this bill will allow Secondary Market Services Corporation--Hawaii to offer cost saving borrower benefits to all of Hawaii's students, regardless of the location of the student's lending institution.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1411 and recommends that it pass Third Reading.