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 S.B. No. 1216, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish the Hawaii educator loan program and its special fund to be administered by the University of Hawaii.

Specifically, this measure authorizes the University of Hawaii to make loans to financially needy students at the university who complete a teacher education program approved by the Department of Education and who agree to teach in the Hawaii public school system.

Furthermore, this measure requires the University to forgive one-tenth of the loan principal and interest on an annual basis up to ten years for students who teach in a Hawaii public school in hard-to-fill positions.

Furthermore, this measure transfer funds from the general fund to the loan program special fund.

Your Committee finds that this measure is necessary to create financial incentives for students at the University of Hawaii to pursue a career of teaching in the Hawaii public school system. Your Committee finds that these incentives are necessary to stem the tide of college graduates turning away from teaching as a profession.

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

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 S.B. No. 1216, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1216, S.D. 2.