| 47 | | - | SECTION 1. The legislature finds that the Hawaii educator loan program was established to recruit college students to become educators and ensure that these graduates teach in the State's public schools. The program provides loans to students who agree to teach in hard-to-fill positions at public schools or at public schools located in rural areas. Loan recipients who successfully complete their teaching education program and go on to teach in a position that meets the requirements of the program are eligible for forgiveness of the loan. The legislature further finds that the State continues to face a growing shortage of qualified teachers. The legislature believes that reducing the service requirement for total loan forgiveness under the Hawaii educator loan program will increase participation in the program. The legislature additionally believes that increasing the amount of funds available to issue loans under the Hawaii educator loan program will help to encourage more students to teach in hard-to-fill positions within the department of education or in public charter schools, including those at rural schools. The purpose of this Act is to: (1) Amend the Hawaii educator loan program to: (A) Open eligibility for students and teachers who agree to teach as a full-time teacher in a public charter school; (B) Decrease the service requirement for total loan forgiveness to five years; and (C) Increase the percent of the total loan award to be waived annually to twenty percent; and (2) Appropriate funds for the Hawaii educator loan program. SECTION 2. Section 304A-701, Hawaii Revised Statutes, is amended as follows: 1. By amending subsections (a) and (b) to read: "(a) There is created the Hawaii educator loan program to be administered by the University of Hawaii, in partnership with a financial institution whose operations are principally conducted in Hawaii, to provide financial support to students and teachers who complete a state-approved teacher education program and who agree to teach as a full-time teacher for a period of time to be determined by the university prior to the award of a loan, in: (1) The Hawaii public school system, including public charter schools, in a hard-to-fill position including special education, regular education shortage categories, or Title 1 schools, and in one of the following capacities: (A) As an elementary school teacher teaching in the field of elementary education who has met standards as set forth by the Hawaii teacher standards board; or (B) As a secondary school teacher teaching in the subject area that is relevant to the loan recipient's academic major as certified by the department of education who has met standards as set forth by the Hawaii teacher standards board; or (2) At a school located in a rural area in the State, as determined by the superintendent of education. Eligibility shall be determined by the university on a competitive basis. The amount to be loaned to a student shall be determined by the board of regents based on need for financial aid and proof of acceptance into a state-approved teacher education program at the university. The maximum amount of loans that a student may receive under this program shall be an aggregate amount equivalent to tuition payments and costs of textbooks and other instructional materials necessary to complete a state-approved teacher education program. (b) All loans made under this subpart shall bear interest at five per cent simple interest. Repayment of principal and interest charges shall commence one year after graduation or three months after a loan recipient ceases to be enrolled in a state-approved teacher education program and shall be paid in periodic installments within a [seven-year] five-year period. The university may charge late fees and all other reasonable costs for the collection of delinquent loans." 2. By amending subsection (e) to read: "(e) Upon a showing of proof that the loan recipient has completed a state-approved teacher education program and for each year that the loan award recipient teaches in the Hawaii public school system pursuant to subsection (a)(1) or (2), loan forgiveness shall be provided to the recipient as follows: (1) [Ten] Twenty per cent of the total amount of the loan award and interest shall be waived every year for the [first] five years of repayment[; and (2) Twenty-five per cent of the total amount of the loan award and interest shall be waived every year for the sixth and seventh years of repayment]." SECTION 3. 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 2024-2025 to be deposited into the Hawaii educator loan program revolving fund. SECTION 4. There is appropriated out of the Hawaii educator loan program revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2024‑2025 to be used for the Hawaii educator loan program. The sum appropriated shall be expended by the university of Hawaii for the purposes of this Act. SECTION 5. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that: (1) The appropriation made in this Act is necessary to serve the public interest; and (2) The appropriation made in this Act meets the needs addressed by this Act. SECTION 6. This Act shall take effect on July 1, 3000. |
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| 47 | + | SECTION 1. The legislature finds that the Hawaii educator loan program was established to recruit college students to become educators and ensure that these graduates teach in the State's public schools. The program provides loans to students who agree to teach in hard-to-fill positions at public schools or at public schools located in rural areas. Loan recipients who successfully complete their teaching education program and go on to teach in a position that meets the requirements of the program are eligible for forgiveness of the loan. The legislature further finds that the State continues to face a growing shortage of qualified teachers. The legislature believes that increasing the amount of funds available to issue loans under the Hawaii educator loan program will help to encourage more students to teach in hard-to-fill positions within the department of education, including those at rural schools. The purpose of this Act is to appropriate funds for the Hawaii educator loan program. 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 2024-2025 to be deposited into the Hawaii educator loan program revolving fund. SECTION 3. There is appropriated out of the Hawaii educator loan program revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2024‑2025 to be used for the Hawaii educator loan program. The sum appropriated shall be expended by the university of Hawaii for the purposes of this Act. SECTION 4. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that: (1) The appropriation made in this Act is necessary to serve the public interest; and (2) The appropriation made in this Act meets the needs addressed by this Act. SECTION 5. This Act shall take effect on July 1, 2024. INTRODUCED BY: _____________________________ |
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| 57 | | - | (A) Open eligibility for students and teachers who agree to teach as a full-time teacher in a public charter school; |
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| 58 | | - | |
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| 59 | | - | (B) Decrease the service requirement for total loan forgiveness to five years; and |
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| 60 | | - | |
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| 61 | | - | (C) Increase the percent of the total loan award to be waived annually to twenty percent; and |
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| 62 | | - | |
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| 63 | | - | (2) Appropriate funds for the Hawaii educator loan program. |
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| 64 | | - | |
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| 65 | | - | SECTION 2. Section 304A-701, Hawaii Revised Statutes, is amended as follows: |
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| 66 | | - | |
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| 67 | | - | 1. By amending subsections (a) and (b) to read: |
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| 68 | | - | |
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| 69 | | - | "(a) There is created the Hawaii educator loan program to be administered by the University of Hawaii, in partnership with a financial institution whose operations are principally conducted in Hawaii, to provide financial support to students and teachers who complete a state-approved teacher education program and who agree to teach as a full-time teacher for a period of time to be determined by the university prior to the award of a loan, in: |
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| 70 | | - | |
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| 71 | | - | (1) The Hawaii public school system, including public charter schools, in a hard-to-fill position including special education, regular education shortage categories, or Title 1 schools, and in one of the following capacities: |
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| 72 | | - | |
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| 73 | | - | (A) As an elementary school teacher teaching in the field of elementary education who has met standards as set forth by the Hawaii teacher standards board; or |
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| 74 | | - | |
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| 75 | | - | (B) As a secondary school teacher teaching in the subject area that is relevant to the loan recipient's academic major as certified by the department of education who has met standards as set forth by the Hawaii teacher standards board; or |
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| 76 | | - | |
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| 77 | | - | (2) At a school located in a rural area in the State, as determined by the superintendent of education. |
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| 78 | | - | |
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| 79 | | - | Eligibility shall be determined by the university on a competitive basis. The amount to be loaned to a student shall be determined by the board of regents based on need for financial aid and proof of acceptance into a state-approved teacher education program at the university. The maximum amount of loans that a student may receive under this program shall be an aggregate amount equivalent to tuition payments and costs of textbooks and other instructional materials necessary to complete a state-approved teacher education program. |
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| 80 | | - | |
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| 81 | | - | (b) All loans made under this subpart shall bear interest at five per cent simple interest. Repayment of principal and interest charges shall commence one year after graduation or three months after a loan recipient ceases to be enrolled in a state-approved teacher education program and shall be paid in periodic installments within a [seven-year] five-year period. The university may charge late fees and all other reasonable costs for the collection of delinquent loans." |
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| 82 | | - | |
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| 83 | | - | 2. By amending subsection (e) to read: |
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| 84 | | - | |
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| 85 | | - | "(e) Upon a showing of proof that the loan recipient has completed a state-approved teacher education program and for each year that the loan award recipient teaches in the Hawaii public school system pursuant to subsection (a)(1) or (2), loan forgiveness shall be provided to the recipient as follows: |
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| 86 | | - | |
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| 87 | | - | (1) [Ten] Twenty per cent of the total amount of the loan award and interest shall be waived every year for the [first] five years of repayment[; and |
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| 88 | | - | |
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| 89 | | - | (2) Twenty-five per cent of the total amount of the loan award and interest shall be waived every year for the sixth and seventh years of repayment]." |
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| 90 | | - | |
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| 91 | | - | SECTION 3. 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 2024-2025 to be deposited into the Hawaii educator loan program revolving fund. |
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| 92 | | - | |
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| 93 | | - | SECTION 4. There is appropriated out of the Hawaii educator loan program revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2024‑2025 to be used for the Hawaii educator loan program. |
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| 57 | + | SECTION 3. There is appropriated out of the Hawaii educator loan program revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2024‑2025 to be used for the Hawaii educator loan program. |
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