STAND. COM. REP. NO. 303

Honolulu, Hawaii

, 2023

RE: H.B. No. 1223

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 1223 entitled:

"A BILL FOR AN ACT RELATING TO TEACHER LOANS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish a Teacher Loan Program to encourage individuals to become teachers in hard-to-fill positions of Department of Education Schools;

(2) Allow the loans to be forgiven after five years if the individual remains a teacher in the hard-to-fill teaching position;

(3) Establish a Teacher Loan Revolving Fund to provide loans for the Teacher Loan Program; and

(4) Appropriate funds into and out of the Teacher Loan Revolving Fund for the Teacher Loan Program.

Your Committee received testimony in support of this measure from the Hawaii State Teachers Association, Democratic Party of Hawai‘i Education Caucus, and one individual. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of Education, Department of Budget and Finance, and one individual.

Your Committee finds that the high cost of living in Hawaii is a significant concern that contributes to the State's chronic teacher shortage. Additionally, to support their students, teachers often incur higher expenses and use personal funds to purchase essential and additional classroom supplies. Your Committee further finds that acquiring housing is another significant obstacle for individuals to accept a position as a teacher. This measure would substantially reduce the financial burden in becoming a teacher by providing loans for individuals to move to areas and teach in a hard-to-fill position and allowing for the forgiveness of those loans after teachers remain committed to the position for five years.

Your Committee has amended this measure by:

(1) Deleting language that would have required the Department of Education to enter into written contracts with collection agencies for the purpose of collecting delinquent loans;

(2) Clarifying that the Department of Education shall administer a Department of Education Teacher Loan Program and Department of Education Teacher Revolving Fund;

(3) Requiring the State Public Charter School Commission to establish and administer a Public Charter School Teacher Loan Program and Public Charter School Revolving Fund to provide loans to teachers who agree to teach in hard-to-fill positions in public charter schools and allow for the forgiveness of loans after five years of teaching in those positions;

(4) Appropriating an unspecified amount of funds into and out of the Public Charter School Teacher Revolving Fund for the Public Charter School Teacher Loan Program;

(5) Changing its effective date to June 30, 3000; and

(6) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, 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 H.B. No. 1223, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1223, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

JUSTIN H. WOODSON, Chair