STAND. COM. REP. NO. 1635

Honolulu, Hawaii

RE:    H.B. No. 777

       H.D. 2

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 777, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EDUCATOR LOAN PROGRAM,"

begs leave to report as follows:

     The purpose of this measure is to recruit and retain qualified teachers for employment in rural schools in the State.

Specifically, this measure creates a new educator loan forgiveness program within the Department of Education similar to the educator loan program within the University of Hawaii that seeks to recruit and retain teachers for employment in hard-to-fill positions in the Hawaii public schools.

     Your Committee received comments in support of this measure from the Hawaii State Teachers Association.  The Department of Budget and Finance offered comments in opposition.  The Department of Education and the University of Hawaii offered comments.

     Your Committee finds that this measure will result in creating a program and special fund within the Department of Education that are parallel to an existing program and special fund within the University of Hawaii.

Accordingly, upon further consideration, your Committee has amended this measure to:

(1)  Delete the proposed educator loan forgiveness program and special fund;

(2)  Expand the existing Hawaii educator loan program within the University of Hawaii by adding to it the new features of the deleted educator loan forgiveness program;

(3)  Deleting the redundant forgiveness, repayment, and collection provisions of the Hawaii educator loan program in section 304A‑702, Hawaii Revised Statutes, as they are now contained in section 304A-701;

(4)  Deleting the appropriations for the erstwhile educator loan forgiveness program special fund; and

(5)  Making technical nonsubstantive amendments for the purposes of clarity and style.

As a result of these amendments, the State will avoid inefficiency and confusion of having two parallel programs operate within the Department of Education and the University of Hawaii.  Your Committee finds that the consolidated and expanded Hawaii educator loan program incorporates the recruitment and retention of teachers to teach in rural areas of the State.

     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. 777, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 777, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair