Hawaii-2015-HB488-Introduced

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

HAWAII GIVE BACK FOR PAYBACK LOAN FORGIVENESS program

§ -1 Hawaii give back for payback loan forgiveness program; purpose. The Hawaii give back for payback loan forgiveness program is established to encourage newly graduated professionals to pursue public service in a not-for-profit organization designated as tax-exempt by the Internal Revenue Service under section 501(c)(3) of the Internal Revenue Code, as amended.

§ -2 Definitions. As used in this chapter, unless the context clearly indicates otherwise:

"Department" means the department of budget and finance.

"Director" means the director of budget and finance.

"Loan repayment" means the payment, per year, of up to per cent of a program participant's professional training costs, for a maximum of 10 years.

"Program" means the Hawaii give back for payback loan forgiveness program.

§ -3 Hawaii give back for payback loan forgiveness program; established. (a) There is established the Hawaii give back for payback loan forgiveness program to be administered by the department. The program shall provide student loan repayments to professionals employed by a not-for-profit organization designated as tax-exempt by the Internal Revenue Service under section 501(c)(3) of the Internal Revenue Code, as amended, and who make the public service commitments required by this chapter. The department shall prioritize student loan repayments in accordance with the greatest need for public service work.

(b) The program shall provide student loan repayments on behalf of a professional who agrees to serve for at least consecutive years, as determined by the department.

(1) Establish criteria and a certification process for what constitutes eligible public service work;

(2) Establish criteria for the selection of college graduates employed by a not-for-profit organization designated as tax-exempt by the Internal Revenue Service under section 501(c)(3) of the Internal Revenue Code, as amended;

(3) Collect and manage reimbursements from program participants who do not meet their service commitments under the program; and

(4) Solicit and accept grants and donations from public and private sources for the program, including maximizing the use of federal matching funds.

(d) Eligible participants in the program shall be determined by the department on a competitive basis.

(e) If a program participant fails to satisfy the participant's service commitment under subsection (b), the program participant shall be liable for the repayment of the outstanding balance of the loan to the appropriate lending financial institution.

§ -4 Rules. The department shall adopt rules to administer this chapter.

§ -5 Hawaii give back for payback loan forgiveness program revolving fund. (a) There is established in the treasury of the State a Hawaii give back for payback loan forgiveness program revolving fund, which shall be administered by the department and into which shall be deposited:

(1) Appropriations made by the legislature to the fund;

(2) Gifts, donations, and grants from government agencies and private individuals;

(3) Moneys received as reimbursements of loan repayments under the program;

(4) Interest earned or accrued on moneys deposited into the fund; and

(5) Any other moneys made available to the program from other sources.

(b) The department may expend moneys from the fund for the purposes of this chapter, including operational expenses required to administer the program.

§ -6 Report. Beginning with the regular session of 2017, the director shall report to the legislature on the status of the program no later than twenty days prior to the convening of each regular session."

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 2015-2016 for deposit into the Hawaii give back for payback loan forgiveness program revolving fund.

SECTION 3. There is appropriated out of the Hawaii give back for payback loan forgiveness program revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2015-2016 to establish and administer the Hawaii give back for payback loan forgiveness program.

The sum appropriated shall be expended by the department of budget and finance for the purposes of this Act.

SECTION 4. The department of budget and finance shall implement the Hawaii give back for payback loan forgiveness program required by section 1 of this Act no later than June 30, 2016.
SECTION 5. This Act shall take effect on July 1, 2015.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	488
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII