HB1188 HD1

SECTION 1. The legislature finds that teachers are fundamental to shaping the future of Hawaiʻi's keiki and communities. However, areas in the State with schools that are hard to staff still face significant challenges in attracting and retaining qualified educators due to limited affordable housing options and the State's high cost of living.

The legislature further finds that challenges with teacher retention have resulted in a growing reliance on emergency hires and long-term substitutes, which can negatively affect the quality of education for students and place additional financial strain on the department of education. Addressing teacher retention is critical to reducing educational disparities and ensuring equitable access to high-quality learning opportunities for all students in public and charter schools.

The legislature therefore finds that providing financial assistance for housing through a teacher workforce housing stipend program would support teacher retention in communities with schools that are hard to staff. Additionally, a stipend program would help alleviate economic burdens and encourage educators to make long-term commitments to teaching in communities with schools designated as hard-to-staff.

Accordingly, the purpose of this Act is to establish a teacher workforce housing stipend program to support teacher retention at any public school and charter school designated as hard-to-staff, which will strengthen the teaching profession, support educational equity, and invest in the success of Hawaii's students and schools.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part III, subpart E, to be appropriately designated and to read as follows:

"§302A- Teacher workforce housing; stipend program; hard-to-staff schools. (a) There is established a teacher workforce housing stipend program to be administered by the department to support teacher retention at any public school and charter school designated as hard-to-staff.

(b) An individual shall be eligible for stipend consideration if the individual:

(1) Is employed full-time in a public school or charter school in an area designated as hard-to-staff; and

(2) Does not own a residence.

(c) Stipend recipients shall receive $ per month; provided that stipends awarded shall be used only for rent or utilities. Stipend recipients shall submit annual documentation verifying the stipend was used only for the purposes allowed pursuant to this subsection to the department.

(d) Immediately following an award of a stipend, the recipient shall commit to teaching at a school in an area designated as hard-to-staff for a minimum of three years. A stipend recipient may continue to receive a stipend pursuant to this section following the completion of the designated number of years; provided that the recipient continues to meet eligibility requirements pursuant to subsection (b).

(e) If the recipient fails to satisfy the work requirements in accordance with subsection (d), the recipient shall repay the total amount of the stipend received as a loan repayable to the department. The repayment shall be subject to terms and conditions set by the department, including circumstances under which recipients may be eligible for deferment or forgiveness due to hardship or inability to secure employment, as well as potential fees for the collection of delinquent repayment.

(f) Stipends repaid by a stipend recipient pursuant to subsection (e) shall be deposited into the teachers' housing revolving fund established pursuant to section 302A-833.

(g) The department may accept federal funds to support the teacher workforce housing stipend program.

(h) In accordance with chapter 103D, the department may enter into written contracts with collection agencies to collect delinquent repayment of stipends owed to the department pursuant to subsection (e). A collection agency that enters into a written contract with the department to collect delinquent stipend repayments pursuant to this section may collect a fee from the debtor in accordance with the terms of, and up to the amounts authorized in, the written contract.

(i) The department may adopt rules pursuant to chapter 91 to implement and administer the stipend program, including the terms of repayment pursuant to subsection (e).

(j) The department shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature on the stipend program no later than twenty days prior to the convening of the regular session for every odd-numbered year, beginning with the regular session of 2027."

SECTION 3. Section 302A-833, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) There is established in the state treasury a revolving fund to be known as the teachers' housing revolving fund to be administered by the department of education. The director of finance shall transfer any moneys appropriated for the purposes of teacher housing to the teachers' housing revolving fund. All unexpended balances of appropriations, allocations, allotments, special revolving funds, or other funds heretofore created and made available for the purposes of developing or administering teachers' housing projects shall be transferred to the teachers' housing revolving fund. Notwithstanding any law to the contrary, all moneys, including refunds, reimbursements, and rentals, for housing from teacher tenants, and all moneys received by the department pursuant to 302A- (f) shall be deposited in the revolving fund.

(b) The revolving fund may be used by the department of education for any and all of the purposes of teachers' housing, including the planning, construction, maintenance, and operation of teachers' housing, as well as for the salaries of the necessary personnel in charge thereof[.], and for the teacher workforce housing stipend program established pursuant to section 302A- ."

SECTION 4. 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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment and administration of the teacher workforce housing stipend program established pursuant to section 2 of this Act.

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

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	1188
THIRTY-THIRD LEGISLATURE, 2025		H.D. 1
STATE OF HAWAII