HB2572 HD1

SECTION 1. The legislature finds that providing a high-quality education to Hawaii's students allows future generations to succeed. However, the high cost of living in the State is a significant concern that contributes to the State's chronic teacher shortage. Teachers often incur higher expenses to purchase essential and additional classroom supplies, often with personal funds, to support their students. Additionally, as Hawaii's teachers are among the lowest paid in the United States when considering the cost of living, the department of education experiences persistent difficulties with teacher recruitment and retention.

The legislature further finds that recruiting teachers to fill vital positions in Hawaii's schools is extremely difficult. Due to the high cost of living in the State, acquiring housing can be a significant obstacle to accepting a position as a teacher. Additionally, the payroll lag that new state employees experience exasperates the difficulty in finding teachers to fill these essential positions. A program that incentivizes teachers to move to areas having hard-to-fill positions will give the students at Hawaii's public schools a better educational experience.

Accordingly, the purpose of this Act is to provide for the repayment of student loans for teachers who teach in a hard-to-staff teaching positions, and to forgive these loans if the teacher becomes a licensed teacher in Hawaii or if the teacher commits to teach or has taught for three years at a Hawaii public school or public charter school.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a two new sections to be appropriately designated and to read as follows:

"§302A-A Teacher loans; forgiveness. (a) There is established the teacher loan forgiveness program to be administered by the department, in partnership with a financial institution whose operations are principally conducted in Hawaii, to provide financial support to teachers who have obtained student loans to attend a college in the university of Hawaii system and become, or have become, a licensed teacher in Hawaii or to teachers who commit to teach as a full-time teacher for three years in:

(1) The Hawaii public school system, including public charter schools, in a hard-to-staff position including special education, regular education shortage categories, or Title 1 schools, and in one of the following capacities:

(A) As an elementary school teacher teaching in the field of elementary education who has met licensing standards as set forth by the Hawaii teacher standards board; or

(B) As a secondary school teacher who has met licensing standards as set forth by the Hawaii teacher standards board; or

(2) At a school located in a rural area in the State, as determined by the superintendent.

(b) Eligibility shall be determined by the department with priority for teachers who:

(1) Are teaching in, or accept a position in, a hard-to-staff area, complex, or school; or

(2) Accept a position at a hard-to-staff school in a different complex area in Hawaii.

(c) Amounts to be distributed to each recipient shall be determined by the department and shall not exceed $50,000 per recipient; provided that the maximum allowable amount to be distributed to a recipient shall be determined by the amount borrowed for the recipient's student loans.

(d) Liability for repayment of a distribution shall be canceled upon the death or permanent total disability of the borrower.

(e) Upon a showing of proof that the borrower became a licensed teacher in Hawaii or has committed to teach in the Hawaii public school system pursuant to subsection (a)(1) or (2) for three years, the funds distributed to repay the student loans shall be forgiven.

(f) If a loan forgiveness recipient fails to become a licensed teacher in Hawaii or commit to teach in the Hawaii public school system for three years, then the loan forgiveness recipient shall repay the funds distributed for the repayment of student loans at terms determined by the department; provided that the terms shall be disclosed before the distribution is made, the interest rate shall not exceed per cent, and the repayment term shall not exceed years.

(g) In accordance with chapter 103D, the department may enter into written contracts with collection agencies for the purpose of collecting delinquent loans. All payments collected, exclusive of a collection agency's commissions, shall revert, and be credited, to the teacher loan program revolving fund. A collection agency that enters into a written contract with the department for the collection of delinquent loans pursuant to this section may collect a commission from the debtor in accordance with the terms of, and up to the amounts authorized in, the written contract.

§302A-B Teacher loan program revolving fund. There is established the teacher loan program revolving fund, for the purpose of providing loans pursuant to section 302A‑A. Appropriations made by the legislature, private contributions, repayment of loans, including interest and payments received on account of principal, and moneys from other sources shall be deposited into the revolving fund and shall be expended by the department. An amount from the revolving fund not exceeding five per cent of the total amount of outstanding loans may be used by the department for administrative expenses incurred in administering the revolving fund."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for deposit into the teacher loan program revolving fund.

SECTION 4. There is appropriated out of the teacher loan program revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for the teacher loan program established pursuant to section 2 of this Act.

The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 5. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act.

SECTION 6. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 7. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	2572
THIRTY-SECOND LEGISLATURE, 2024		H.D. 1
STATE OF HAWAII