STAND. COM. REP. NO. 3394

Honolulu, Hawaii

RE: H.B. No. 1574

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Education and Health and Human Services, to which was referred H.B. No. 1574, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HEALTHCARE EDUCATION LOAN REPAYMENT PROGRAM,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Formally codify the Healthcare Education Loan Repayment Program; and

(2) Require 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.

Your Committees received testimony in support of this measure from the University of Hawaiʻi at Mānoa John A. Burns School of Medicine, State Health Planning and Development Agency, Office of the Governor, Office of Hawaiian Affairs, State Council on Mental Health, Kaiser Permanente, Hawaiʻi State Center for Nursing, Hawaii Substance Abuse Coalition, Healthcare Association of Hawaii, Hawaii Dental Association, Hina Mauka, Hawaii Medical Association, The Queen's Health Systems, Local 996, Navian Hawaii, Hawaiʻi American Nurses Association, Hawaii Medical Service Association, Hawaiʻi Pacific Health, Waianae Coast Comprehensive Health Center, Hawaii Dental Service, and three individuals.

Your Committees find that the Healthcare Education Loan Repayment Program was created to help address the State's severe health care workforce shortage. By helping health care professionals to repay their educational loans in exchange for providing health care services locally, the Repayment Program seeks to compensate for the State's high cost of living. Since its inception, the Repayment Program has assisted nine hundred twenty-one resident health care professionals. This measure strengthens the Repayment Program as a workforce retention tool by aligning service commitments with the level of state support provided, therefore contributing to the improvement of continuity of care.

Your Committees have amended this measure by:

(1) Inserting an effective date of July 31, 2055, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Education and Health and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1574, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1574, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Education and Health and Human Services,

________________________________ JOY A. SAN BUENAVENTURA, Chair

________________________________ DONNA MERCADO KIM, Chair