Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 736 entitled:

begs leave to report as follows:

The purpose of this bill is to prohibit a loan administering entity from certifying to a licensing agency that a licensee or license applicant is in default or breach of a loan obligation, unless the agency has obtained a court judgment that specifies the exact amount of the default.

Your Committee received testimony in support of this measure from the Hawaii State Bar Association.

Your Committee finds that Act 226, Session Laws of Hawaii 2002, provided for the denial, suspension, or revocation of a professional or vocational license upon default of a student loan by a borrower.

Your Committee further finds that to ensure that professional and vocational licenses are being properly denied, suspended, or revoked and address concerns of a lack of due process protection for borrowers, an amendment is needed to necessitate proof of default before licensing sanctions for defaults of student loans are imposed. Your Committee believes that the amendment proposed in this bill achieves that purpose.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 736 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.