STAND

STAND. COM. REP. NO.1267

Honolulu, Hawaii

, 2003

RE: H.B. No. 736

H.D. 1

S.D. 2

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred H.B. No. 736, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROFESSIONAL AND VOCATIONAL LICENSES,"

begs leave to report as follows:

The purpose of this measure is to require licensing authorities to suspend the licenses of applicants or licensees upon receipt of an administering entity's court based certification that the applicant or licensee is in default of a student loan, or that the student loan is at least sixty days in arrears.

Testimony in support of this measure was received from the Hawaii State Bar Association. The State Representative from the 16^th house district supported the measure and requested amendments.

Your Committee finds that in 2002, Act 226 was enacted to provide for the suspension or revocation of professional and vocational licenses for those in default or arrears on their student loans. Act 226, however, did not afford applicants or licensees the due process protection guaranteed by article I, section 5 of the State Constitution. Moreover, the intent of Act 226 was to penalize applicants or licensees wilfully refusing to honor their repayment obligation. It was not the legislative intent to punish applicants or licensees lacking the financial ability to fulfill the commitment on their student loans.

Based on testimony received, your Committee amended the bill by:

(1) Amending §189-2, Hawaii Revised Statutes, by adding provisions authorizing the Department of Land and Natural Resources to suspend, refuse to renew, or deny any license upon receipt of certification by an administering entity that the licensee or applicant is in default or breach of an obligation under any student loan, or an obligation is at least sixty days past due under a repayment plan; and the certification is based on a district or circuit court judgment. The Department must issue, renew, reinstate, or restore a license upon authorization from the administering entity that the licensee or applicant is making payments or taking other action satisfying the terms of the student loan. Licensing fees paid prior to denial, suspension, or revocation of license is forfeited, and the Department may charge fees for reinstating a license;

(2) Redefining "applicable licensing authority" to include any unit of state government, including agencies, departments, boards, commissions, authorities, the supreme court, or any other entity within the State authorized by statute to grant or deny a license;

(3) Replacing all references to the requirement that certifications be based on a court judgment from a district or circuit court in this State, or court judgment, with the requirement that certifications be based on an administrative order;

(4) Replacing all references to findings by the court with findings by the administrative hearings officer; and

(5) Reordering and renumbering the sections of the bill, and making technical, nonsubstantive amendments for clarity and style.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 736, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 736, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Hawaiian Affairs,

		____________________________ COLLEEN HANABUSA, Chair