STAND. COM. REP. NO. 2267

Honolulu, Hawaii

RE:    S.B. No. 2109

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Education, to which was referred S.B. No. 2109 entitled:

"A BILL FOR AN ACT RELATING TO NURSING,"

begs leave to report as follows:

     The purpose of this measure is to address the shortage of nursing teachers in the State by establishing a Nursing Teacher Loan Forgiveness Program to provide a financial incentive for more students to study to become nursing educators.

     This measure also establishes the Nursing Teacher Loan Forgiveness Special Fund to college all moneys received in conjunction with the administration of the Program.

     Testimony in support of the measure was submitted by the Hawaii Government Employees Association.  Testimony in opposition of the measure was submitted by the Department of Budget and Finance and the University of Hawai‘i System.

     Your Committee finds that the current shortage of nurses nationwide is projected to increase to a twenty per cent shortfall by the year 2020.  In Hawaii, it is estimated that thirty-one per cent of Hawaii's nursing workforce will retire by 2015, with sixty-one per cent expected to retire by 2020.  The demand for nurses exceeds the current supply and the gap will continue to grow as nurses retire and our population continues to age.  The health of our residents and the quality of care that they can expect to receive is in jeopardy, and measures must be taken to thwart the ongoing problem.

     Your Committee believes that the University of Hawaii can address the problem through efforts to grow the current nursing workforce through various initiatives.  This measure establishes the Nursing Teacher Loan Forgiveness Program to address the shortage of nursing teachers in the State by providing financial assistance for more students to study to become nursing educators.  This program is similar to the Hawaii Educator Loan Program, which has provided assistance to many students.  Your Committee determines that the framework, including work requirements, should more closely follow that of the Hawaii Educator Loan Program.

     Accordingly, your Committee has amended this measure by:

     (1)  Changing the number of years required to work in a qualified position in order to receive loan forgiveness under the Nursing Teacher Loan Forgiveness Program;

     (2)  Changing the loan forgiveness schedule for the Nursing Teacher Loan Forgiveness Program to ten per cent for the first five years and twenty-five per cent of the total amount of the loan and interest to be waived every year for the sixth and seventh years of repayment; and

     (3)  Making technical, nonsubstantive changes for purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2109, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2109, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Education,

____________________________

NORMAN SAKAMOTO, Chair