Bill Text: HI SB694 | 2011 | Regular Session | Introduced

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Bill Title: Loan Incentives; Rural Areas; Teachers

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2011-01-24 - (S) Referred to EDU, WAM. [SB694 Detail]

Download: Hawaii-2011-SB694-Introduced.html

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THE SENATE	S.B. NO.	694
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to loans for teachers.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§302A-    Rural area teachers' home loan program subaccount.  (a)  There is established within the teachers' housing revolving fund, a rural area teachers' home loan program subaccount, into which shall be deposited:

     (1)  Legislative appropriations;

     (2)  Federal funds, if available; and

     (3)  All principal payments, fees, penalties, and any other proceeds derived by the department pursuant to this section.

The department shall expend the moneys from the rural area teachers' home loan program to provide interest-free home purchase loans to qualified teachers.

     (b)  Loans made under this section shall be interest-free and used by the qualified teacher exclusively for the purchase of a home, including an apartment, townhouse, or condominium, in the rural area in which the teacher is employed by the department.  In addition, loans made under this section shall be:

     (1)  Repaid under a payment plan specified by the department; provided that additional payments, in any sum, or the payment of the entire principal, may be made at any time within the period of the loan;

     (2)  Secured in a manner to be determined by the department; and

     (3)  Subject to penalties for delinquency or late payments as specified by the department as provided in subsection (c).

     (c)  During the period of the loan, if at any time a person receiving the loan fails to comply with the requirements established in the definition of "qualified teacher" under this section, the loan shall be considered forfeit and the principal amount outstanding, plus penalties, shall become due and payable.  If the principal amount outstanding and penalties are not remitted, the department may initiate foreclosure proceedings on the home purchased through the proceeds from the loan.  This section shall not apply in cases where the qualified teacher fails to comply with the requirements because of circumstances beyond the qualified teacher's control, as determined by the department.

     (d)  Loans provided under this section shall not exceed

$           per qualified teacher.  Each qualified teacher shall receive no more than one loan under this section.

     (e)  The department may adopt rules pursuant to chapter 91 to establish eligibility requirements for teachers applying for a loan under this section.

     (f)  For purposes of this section:

     "Qualified rural area school" means a public or private primary school, secondary or middle school, high school, college preparatory school, or start-up charter school that:

     (1)  Has demonstrated difficulty in hiring and retaining teachers, according to standards and criteria specified by the department; and

     (2)  Is located in a rural area that is characterized by a low population density and the absence of "city-like" concentration of structures, streets, and urban services; provided that the department may establish more specific criteria and standards to further define "rural area".

     "Qualified teacher" means a teacher, working at least forty hours per week in a qualified rural area school, who fulfills the eligibility requirements, if any, specified under subsection (e)."

     SECTION 2.  Section 302A-832, Hawaii Revised Statutes, is amended by amending its title and subsection (a) to read as follows:

     "[[]§302A-832[]]  Teachers' housing program; administration.  (a)  The department shall administer the teachers' housing program under this subpart.  The department shall:

     (1)  Administer the teachers' housing revolving fund under section 302A-833;

     (2)  Administer the rural area teachers' home loan program under section 302A-  ;

    [(2)] (3)  Provide annual statements under section 302A-834;

    [(3)] (4)  Conduct annual reviews of units under section 302A-835; and

    [(4)] (5)  Perform any other duty necessary to effectuate this subpart.

     (b)  The department may adopt rules pursuant to chapter 91 to effectuate this subpart."

     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 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 to be deposited into the rural area teachers loan program subaccount of the teachers' housing revolving fund.

     SECTION 4.  There is appropriated out of the rural area teachers' house loan program subaccount of the teachers' housing revolving fund the sum of $            or so much thereof as may be necessary for fiscal year 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 for the purposes of this fund.

     The sums appropriated shall be expended by the department of education for the purposes of this Act.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2011.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Loan Incentives; Rural Areas; Teachers

 

Description:

Establishes interest-free home purchase loan programs for teachers to provide an incentive to work in hard-to-staff rural areas.

 

 

 

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