HB1574 HD2

SECTION 1. The legislature finds that a persistent workforce shortage in the healthcare industry has created difficulties for patients in accessing care, including specialized care such as behavioral health services. One reason providers often cite for the difficulty of practicing in Hawaii is financial hardship, with the high cost of living frequently driving providers to leave the State.

The legislature further finds that, for fiscal years 2024 and 2025, the legislature appropriated a total of $30,000,000 to fund the healthcare education loan repayment program. This program supports healthcare professionals across most fields of practice in Hawaii by helping them repay their educational loans in exchange for providing healthcare services in the State. For fiscal years 2026 and 2027, the legislature appropriated an additional $30,000,000 to continue this support. The healthcare education loan repayment program has been successful in improving the lives of healthcare professionals in the State and making it easier for these professionals to remain and practice in Hawaii.

The legislature also finds that, since the inception of the healthcare education loan repayment program, nine hundred twenty-eight resident healthcare professionals have been assisted by the program. The average amount of indebtedness for certain disciplines who were awarded ranges from $179,400 (physicians), $93,500 (advanced practice registered nurses), $138,400 (physician assistants), $170,600 (psychologists), $41,300 (nurses), and $94,600 (other healthcare professionals). The average loan repayment amount for all recipients to date is $49,000. All participants in the healthcare education loan repayment program are required to commit to remaining in Hawaii for two years to work within their profession, regardless of the amount of assistance they receive through the program.

The legislature believes that establishing a sliding scale of work commitments, based on the amount of loan repayment assistance participants receive, is in the best interest of the State. Healthcare professionals who receive greater loan repayment assistance should be required to serve for a longer period in Hawaii, thereby promoting continuity of care for residents and enabling providers to better understand and address community needs.

Accordingly, the purpose of this Act is to:

(1) Formally codify the healthcare education loan repayment program; and

(2) Establish minimum service requirements for participants in the healthcare education loan repayment program receiving new awards on or after July 1, 2027, with the duration of required service determined by the total amount of loan repayment assistance received.

SECTION 2. Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to part IV, subpart M, to be appropriately designated and to read as follows:

"§304A- Healthcare education loan repayment program; established. (a) There is established the healthcare education loan repayment program within the university of Hawaii John A. Burns school of medicine.

(b) The purpose of the program is to provide financial assistance to health care professionals licensed, or otherwise certified, to practice in and provide care to patients in the State, for loan repayment, in exchange for a commitment to practice in certain areas of the State for a specified period pursuant to rules adopted by the university of Hawaii John A. Burns school of medicine.

(c) Any healthcare professional who participates in the healthcare education loan repayment program by receiving a new award on or after July 1, 2027, shall be required to remain and practice within their licensed profession in the State for a minimum period as follows:

(1) No less than two years for healthcare professionals who receive total loan repayment assistance in an amount between $1,000 and $50,000; and

(2) No less than three years for healthcare professionals who receive total loan repayment assistance in an amount of $50,001 and above.

(d) The university of Hawaii John A. Burns school of medicine shall develop program requirements and rules in order to administer the program.

(e) For the purposes of this section:

"Healthcare professional" means an individual who is licensed, certified, or otherwise authorized under the laws of the State to provide healthcare services, including but not limited to physicians, physician assistants, advanced practice registered nurses, nurses, psychologists, dentists, and other allied health care providers.

"Licensed profession" means the healthcare occupation or field in which a healthcare professional is licensed, certified, or otherwise authorized to practice under the laws and regulations of the State.

"Loan repayment" means funds provided to a healthcare professional under the healthcare education loan repayment program for the purpose of repaying outstanding educational loans related to their health care training."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 3000.

Report Title:

Healthcare Education Loan Repayment Program; Healthcare Professionals; Minimum Service Requirements

Description:

Formally codifies the Healthcare Education Loan Repayment Program. Requires a participant in the Healthcare Education Loan Repayment Program who receives a new award on or after July 1, 2027, to remain and work in the State for a certain number of years based on the amount of financial assistance received. Effective 7/1/3000. (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

HOUSE OF REPRESENTATIVES	H.B. NO.	1574
THIRTY-THIRD LEGISLATURE, 2026		H.D. 2
STATE OF HAWAII