STAND. COM. REP. NO. 3687

Honolulu, Hawaii

RE: H.B. No. 1574

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1574, H.D. 2, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to help address Hawaii's healthcare industry workforce shortage by making loan repayments on behalf of healthcare workers who commit to working in Hawaii.

Specifically, this measure:

(1) Codifies the Healthcare Education Loan Repayment Program; and

(2) Requires participants in the Healthcare Education Loan Repayment Program who receive an award between $1,000 and $50,000 to practice in the State for not less than two years and participants who receive an award of $50,001 or more to practice in the State for not less than three years.

Your Committee received written comments in support of this measure from the Office of the Governor, University of Hawaii at Manoa John A. Burns School of Medicine, State Council on Mental Health, Office of Hawaiian Affairs, State Health Planning and Development Agency, Healthcare Association of Hawaii, Hawaii Medical Association, Hawaii State Center for Nursing, Hawaii Pacific Health, The Queen's Health Systems, Kaiser Permanente, and one individual.

Your Committee received written comments on this measure from the Department of the Attorney General.

Your Committee finds that Hawaii continues to experience a shortage of healthcare workers. Your Committee further finds that the Healthcare Education Loan Repayment Program made permanent by this measure will provide much-needed financial assistance to improve the lives of healthcare professionals, making it easier for those individuals to practice in the State.

Your Committee has amended this measure to reflect the recommendations of the Department of the Attorney General, specifically by:

(1) Determining that the establishment of a healthcare education loan repayment program within the University of Hawaii John A. Burns School of Medicine is a matter of statewide concern pursuant to Article X, section 6, of the Hawaii State Constitution;

(2) Requiring that a healthcare professional's commitment to practice in the State be made pursuant to a contract between the healthcare professional and the University of Hawaii John A. Burns School of Medicine, instead of rules adopted by the University of Hawaii John A. Burns School of Medicine;

(3) Opening the program to all healthcare professional applicants regardless of the educational institution the applicant attended;

(4) Changing from two years to five years the minimum commitment for participants in the program who receive total loan repayment assistance in an amount between $1,000 and $50,000 to remain in the State and practice within their licensed profession, and from three years to seven years the minimum commitment for participants who receive a total loan repayment assistance in an amount of $50,001 or more; and

(5) Requiring that participants in the program agree to certain conditions before receiving an award.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1574, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1574, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair