Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred S.B. No. 2351, S.D. 2, entitled:

begs leave to report as follows:

The purpose of this bill is to establish a Nursing Education Loan Program (Program) at the University of Hawaii (UH).

The Hawaii Nurses' Association, University of Phoenix, and an individual submitted testimony in support of this bill. The Hawaii Government Employees Association submitted testimony in support of the intent of this bill.

Your Committee finds that there is a serious nursing shortage, worldwide and locally. This situation is expected to worsen as much of the aging nurse workforce retires. This Program will encourage students to enter the nursing education program at UH, and offering to forgive loans for those who serve as nurses in Hawaii will help persuade nursing graduates to remain in Hawaii.

Upon further consideration, your Committee has amended this bill by specifying that that one tenth of a loan provided under the Program and accrued interest shall be waived for each of the first five years that a loan recipient serves as a nurse in Hawaii, and the remaining loan amount shall be waived after the sixth year.

Other technical, nonsubstantive amendments were made for clarity, consistency, and style.

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. 2351, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2351, S.D. 2, H.D. 1, and be referred to the Committee on Finance.