Report Title:
Loan Incentives; Rural Areas; Teachers
Description:
Establishes interest-free home purchase loan programs for teachers to provide them with an incentive to work in hard-to-staff rural areas.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2437 |
|
TWENTY-THIRD LEGISLATURE, 2006 |
||
|
STATE OF HAWAII |
||
|
|
A BILL FOR AN ACT
relating to loans for teachers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§302A- Loans to teachers; rural area schools; rural area teachers loan fund. (a) The department shall establish a loan program to provide interest-free home purchase loans to qualified teachers.
(b) The department may adopt rules pursuant to chapter 91 to establish eligibility requirements for teachers applying for a loan under this section.
(c) Loans made under this section shall be interest-free and used by the qualified teacher exclusively for the purchase of homes, including apartments, townhouses, and condominiums. In addition, loans made under this section shall be:
(1) Repaid with a payment plan specified by the department; provided that additional payments in any sums, or the payment of the entire principal, may be made at any date within the time period of the loan;
(2) Secured in a manner to be determined by the department; and
(3) Subject to penalties for delinquency or late payments as specified by the department and including subsection (d).
The department shall negotiate the terms and conditions of each loan to ensure that each loan complies with the provisions of this section.
(d) During the time period of the loan, if at any time a person receiving the loan fails to comply with the requirements established in the definition of "qualified teacher" under this section, the loan shall be considered forfeit and all principal amounts outstanding, plus penalties, shall become due and payable. If the principal amounts outstanding and penalties are not remitted, the department may initiate foreclosure proceedings on the home purchased through the proceeds from the loan. This section shall not apply in cases where the qualified teacher fails to comply with the requirements because of circumstances beyond the qualified teacher's control, as determined by the department.
(e) Loans provided under this section shall not exceed
$ per qualified teacher. Each qualified teacher shall receive no more than one loan under this section.
(f) There is established in the state treasury a special fund to be known as the rural area teachers loan fund. Moneys in this fund shall be loaned by the department pursuant to this section. The rural area teachers loan fund shall be funded by:
(1) Legislative appropriations;
(2) Federal funds if available; and
(3) All principal payments, fees, penalties, and any other proceeds derived by the department pursuant to this section.
(g) For the purposes of this section:
"Qualified rural area school" means a public or private primary school, secondary school, high school, college preparatory school, or new century charter school that:
(1) Has demonstrated difficulty in hiring and retaining teachers, according to standards and criteria specified by the department; and
(2) Is located in a rural area that is characterized by a low population density and the absence of "city-like" concentration of structures, streets, and urban services; provided that the department may establish more specific criteria and standards to further define "rural area".
"Qualified teacher" means a teacher working at least forty hours per week in a qualified rural area school who fulfills the eligibility requirements, if any, specified under subsection (b)."
SECTION 2. 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 2006-2007 to be deposited into the rural area teachers loan fund.
The sum appropriated shall be expended by the department of budget and finance for the purposes of this Act.
SECTION 3. There is appropriated out of the rural area teachers loan fund the sum of $ or so much thereof as may be necessary for fiscal year 2006-2007 to be used for the purposes of the fund.
The sum appropriated shall be expended by the department of education for the purposes of this Act.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2006.
|
INTRODUCED BY: |
_____________________________ |