Session of 2024
HOUSE BILL No. 2644
By Committee on Education
Requested by Fred Patton on behalf of the State Board of Regents
1-31
AN ACT concerning the state board of regents; relating to certain
scholarship programs administered by the board; establishing uniform
interest rate provisions for scholarship programs that include repayment
obligations as a condition of receipt of such financial assistance;
authorizing the board to recover the costs of collecting such repayment
obligations; authorizing the board to charge fees to cover the costs of
administering scholarship, grant and other financial assistance
programs; amending K.S.A. 74-3260, 74-3267, 74-3272, 74-3295, 74-
32,104, 74-32,116, 74-32,135, 74-32,153, 74-32,154 and 74-32,223 and
K.S.A. 2023 Supp. 74-32,276 and 74-32,286 and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) The applicable interest rate shall be 5% per
annum for any repayment obligation owed by an individual that:
(1) Arises under any scholarship, grant or other student financial aid
program established in article 32 of chapter 74 of the Kansas Statutes
Annotated, and amendments thereto, or under any agreement entered into
pursuant to any such scholarship, grant or other student financial aid
program; and
(2) requires the payment of interest pursuant to the terms of the
statute governing repayment obligations under such scholarship, grant or
other student financial aid program or any agreement entered into by
which the individual received the scholarship, grant or other student
financial aid moneys.
(b) The interest rate set forth in subsection (a) shall begin to accrue
not earlier than the date that the individual's obligation to repay such
scholarship, grant or other student financial aid moneys to the state board
of regents commences as determined by the state board of regents.
(c) The interest rate set forth in subsection (a) and the accrual date as
determined under subsection (b) shall apply to all repayment obligations
arising in relation to any scholarship, grant or other student financial aid
moneys distributed prior to July 1, 2024, pursuant to any scholarship, grant
or other student financial aid program established in article 32 of chapter
74 of the Kansas Statutes Annotated, and amendments thereto.
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(d) Nothing in this section shall be construed to:
(1) Impose an interest rate that is in excess of the interest rate
specified in applicable state law at the time an individual received the
scholarship, grant or other student financial aid moneys related to such
individual's repayment obligation or as specified in any agreement
between such individual and a state educational institution, a sponsor or
the state board of regents for the receipt of such scholarship, grant or other
student financial aid moneys; and
(2) grant any right, claim or other entitlement by any individual to a
refund of any portion of amounts paid by such individual as full or partial
fulfillment of such individual's repayment obligations.
New Sec. 2. The state board of regents may recover the reasonable
costs of collection, including, but not limited to, court costs, attorney fees
and collection agency fees, from any individual who is subject to a
repayment obligation arising under any scholarship, grant or other student
financial aid program established in article 32 of chapter 74 of the Kansas
Statutes Annotated, and amendments thereto, or under any agreement
entered into pursuant to any such scholarship, grant or other student
financial aid program.
New Sec. 3. The chief executive officer of the state board of regents
may fix, charge and collect fees for the processing of applications and
other activities related to the administration of student financial assistance
programs administered by the state board of regents. Such fees shall be
fixed in such amounts as to recover all or a part of the direct and indirect
operating expenses incurred for administering such programs. All moneys
received by the state board of regents from the payment of such fees shall
be deposited in the state treasury in accordance with K.S.A. 75-4215, and
amendments thereto, and shall be credited to the financial aid services fee
fund of the state board of regents.
Sec. 4. K.S.A. 74-3260 is hereby amended to read as follows: 74-
3260. (a) Upon the failure of any person, who as an eligible student
qualified for and received payments under an ROTC service scholarship,
to remain eligible and qualified or to satisfy the obligation to accept a
commission and serve as an officer in the Kansas national guard for the
required period of time under an agreement entered into pursuant to this
act, such person shall pay to the state of Kansas an amount equal to the
total amount of payments received by such person plus accrued interest
from the date such payments were received at a rate which is equivalent to
the interest rate applicable to loans made under the federal PLUS program
at the time such person first entered into an agreement plus five percentage
points accrual date as determined under section 1, and amendments
thereto, and at the rate prescribed in section 1, and amendments thereto.
Such payment shall commence within 30 days, and be completed within
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five years, after the date of the act or circumstance that causes the failure
of the person to remain eligible and qualified or to satisfy the obligation of
such agreement. Payments under this section shall be installment payments
and each such installment shall be not less than an amount equal to
1
/5 of
the total amount which that would be required to be paid if paid in five
equal annual installments. If an installment payment becomes 91 days
overdue, the entire amount outstanding shall become immediately due and
payable, including all interest at the rate prescribed in section 1, and
amendments thereto. Amounts paid under this section shall be deposited in
the state treasury and credited to the ROTC service scholarship repayment
fund as provided in K.S.A. 74-3260a, and amendments thereto.
(b) The state board of regents is authorized to turn any repayment
account arising under the ROTC service scholarship program over to a
designated loan servicer or collection agency, the state not being involved
other than to receive payments from the loan servicer or collection agency
at the interest rate prescribed under this section in section 1, and
amendments thereto.
Sec. 5. K.S.A. 74-3267 is hereby amended to read as follows: 74-
3267. (a) (1) Except as otherwise provided in K.S.A. 74-3268, and
amendments thereto, upon the failure of any person to satisfy the
obligation to engage in the full-time or part-time practice of medicine and
surgery within the state of Kansas for the required period of time under an
agreement entered into as provided in K.S.A. 74-3266, and amendments
thereto, such person shall repay to the state board of regents an amount
equal to the total of (1):
(A) The amount of money received by such person pursuant to such
agreement; plus (2)
(B) accrued interest from the date such money was received at a rate
which is equivalent to the interest rate applicable to loans made under the
federal PLUS program at the time such person first entered into an
agreement plus five percentage points accrual date as determined under
section 1, and amendments thereto, and at the rate prescribed in section 1,
and amendments thereto.
(2) Any person who applies for and enters a postgraduate residency
training program that is not an approved program as provided in this
section shall be required to repay all moneys received as provided in an
agreement entered into under K.S.A. 74-3266, and amendments thereto,
plus accrued interest from the date such moneys were received at a rate
which is equivalent to the interest rate applicable to loans made under the
federal PLUS program at the time such person first entered into an
agreement plus five percentage points accrual date as determined under
section 1, and amendments thereto, and at the rate prescribed in section 1,
and amendments thereto, and shall commence such repayment in
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accordance with subsection (b) within 90 days of graduation from the
school of osteopathic medicine or upon termination or completion of a
residency training program which that does not comply with the
provisions of this act, whichever is later.
(3) Any person who enters and completes an approved postgraduate
residency training program but fails to satisfy the obligation to engage in
the full-time or part-time practice of medicine and surgery for the required
period of time shall be required to repay all money received pursuant to an
agreement entered into under K.S.A. 74-3266, and amendments thereto,
plus accrued interest from the date such money was received at a rate
which is equivalent to the interest rate applicable to loans made under the
federal PLUS program at the time such person first entered into an
agreement plus five percentage points accrual date as determined under
section 1, and amendments thereto, and at the rate prescribed in section 1,
and amendments thereto, and shall commence such repayment in
accordance with subsection (b) within 90 days of failure to satisfy the
obligation.
(b) Each person required to repay any amount under this section shall
repay an amount totaling the entire amount to be repaid under all such
agreements for which obligations are not satisfied, including all amounts
of interest at the rate prescribed in section 1, and amendments thereto.
Except as otherwise provided in this section, such repayment shall be in
installment payments and each such installment shall be not less than an
amount equal to
1
/5 of the total amount which that would be required to be
paid if repaid in five equal annual installments.
(c) Except as otherwise provided in subparts (2) and (3) of subsection
(a) subsections (a)(2) and (a)(3), all installment payments under this
section shall commence six months after the date of the action or
circumstance that causes the failure of the person to satisfy the obligations
of such agreements, as determined by the state board of regents based
upon the circumstances of each individual case. If an installment payment
becomes 91 days overdue, the entire amount outstanding shall become
immediately due and payable, including all amounts of interest at the rate
prescribed in section 1, and amendments thereto.
(d) The total repayment obligation imposed under all agreements
entered into as provided in K.S.A. 74-3266, and amendments thereto, may
be satisfied at any time prior to graduation from the accredited school of
osteopathic medicine by making a single lump sum payment equal to the
total of:
(1) The entire amount to be repaid under all such agreements upon
failure to satisfy the obligations under such agreements to practice in
Kansas,; plus
(2) all amounts of interest accrued thereon at the rate prescribed
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under this section in section 1, and amendments thereto.
(e) The state board of regents is authorized to turn any repayment
account arising under the osteopathic medical service scholarship program
over to a designated loan servicer or collection agency, the state not being
involved other than to receive payments from the loan servicer or
collection agency at the interest rate prescribed under this section in
section 1, and amendments thereto.
Sec. 6. K.S.A. 74-3272 is hereby amended to read as follows: 74-
3272. (a) Except as otherwise provided in subsection (e) and in K.S.A. 74-
3273, and amendments thereto, upon the failure of any person to satisfy
the obligation to engage in the full-time or part-time practice of optometry
within the state of Kansas for the required period of time under an
agreement entered into pursuant to K.S.A. 74-3271, and amendments
thereto, such person shall repay to the state board of regents an amount
equal to the total of:
(1) The amount of money paid by the state board of regents for
guaranteed admission and continued enrollment of such person in an
accredited school or college of optometry pursuant to a contract entered
into therefor under K.S.A. 76-721a, and amendments thereto,; plus
(2) accrued interest from the date such money was paid pursuant to
such contract at a rate which is equivalent to the interest rate applicable to
loans made under the federal PLUS program at the time such person first
entered into an agreement plus five percentage points accrual date as
determined under section 1, and amendments thereto, and at the rate
prescribed in section 1, and amendments thereto.
(b) Each person required to repay any amount under this section shall
repay an amount totaling the entire amount to be repaid under such
agreement for which such obligation is not satisfied, including all interest
at the rate prescribed in section 1, and amendments thereto. Except as
otherwise provided in this section, such repayment shall be in installment
payments and each such installment shall be not less than an amount equal
to
1
/5 of the total amount which that would be required to be paid if repaid
in five equal annual installments.
(c) All installment payments under this section shall commence six
months after the date of the action or circumstance that causes the failure
of the person to satisfy the obligations of such agreement, as determined
by the state board of regents based upon the circumstances of each
individual case. If an installment payment becomes 91 days overdue, the
entire amount outstanding shall become immediately due and payable,
including all interest at the rate prescribed in section 1, and amendments
thereto.
(d) The total repayment obligation imposed under an agreement
entered into pursuant to K.S.A. 74-3271, and amendments thereto, may be
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satisfied at any time prior to graduation from the accredited school or
college of optometry by making a single lump-sum payment equal to the
total of:
(1) The entire amount to be repaid under such agreement upon failure
to satisfy the obligation to practice optometry in Kansas,; plus
(2) all interest thereon at the rate prescribed to the date of payment in
section 1, and amendments thereto.
(e) If a person fails to satisfy an obligation to engage in the full-time
or part-time practice of optometry in Kansas for the required period of
time under an agreement entered into pursuant to K.S.A. 74-3271, and
amendments thereto, because such person is engaged in the practice of
optometry in a state other than Kansas, and if such person is subject to or
currently making repayments under this section, and if such person
subsequently commences the practice of optometry in this state which
complies with the agreements entered into under such statute, the balance
of the repayment amount, including interest thereon, from the time of such
commencement of practice until the obligation of such person is satisfied,
or until the time such person again becomes subject to repayments, shall
be waived. All repayment amounts due prior to such commencement of
practice in this state, including interest thereon, shall continue to be
payable as provided in this section. If subsequent to such commencement
of practice, the person fails to satisfy such obligation, the person again
shall be subject to repayments, including interest thereon, as otherwise
provided in this section.
(f) The state board of regents is authorized to turn any repayment
account arising under the optometry service scholarship program over to a
designated loan servicer or collection agency, the state not being involved
other than to receive payments from the loan servicer or collection agency
at the interest rate prescribed under this section in section 1, and
amendments thereto.
Sec. 7. K.S.A. 74-3295 is hereby amended to read as follows: 74-
3295. (a) Except as provided in K.S.A. 74-3296, and amendments thereto,
upon the failure of any person to satisfy the obligation under any
agreement entered into pursuant to the nursing service scholarship
program, such person shall pay to the executive officer an amount equal to
the total amount of money received by such person pursuant to such
agreement which that was financed by the state of Kansas plus accrued
interest at a rate which is equivalent to the interest rate applicable to loans
made under the federal PLUS program at the time such person first entered
into an agreement plus five percentage points from the accrual date as
determined under section 1, and amendments thereto, and at the rate
prescribed in section 1, and amendments thereto, and shall pay to the
sponsor an amount equal to the total amount of money received by such
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person pursuant to such agreement which that was financed by the sponsor
plus accrued interest at a rate which is equivalent to the interest rate
applicable to loans made under the federal PLUS program at the time such
person first entered into an agreement plus five percentage points from the
accrual date as determined under section 1, and amendments thereto, and
at the rate prescribed in section 1, and amendments thereto. Installment
payments of any such amounts may be made in accordance with the
provisions of agreements entered into by the scholarship recipient and the
sponsor or if no such provisions exist in such agreements, in accordance
with rules and regulations of the state board of regents, except that such
installment payments shall commence six months after the date of the
action or circumstances that cause the failure of the person to satisfy the
obligations of such agreements, as determined by the executive officer
based upon the circumstances of each individual case. Amounts paid under
this section to the executive officer shall be deposited in the nursing
service scholarship repayment fund in accordance with K.S.A. 74-3298,
and amendments thereto.
(b) The state board of regents is authorized to turn any repayment
account arising under the nursing service scholarship program over to a
designated loan servicer or collection agency, the state not being involved
other than to receive payments from the loan servicer or collection agency
at the interest rate prescribed under this section in section 1, and
amendments thereto.
Sec. 8. K.S.A. 74-32,104 is hereby amended to read as follows: 74-
32,104. (a) Except as provided in K.S.A. 74-32,105, and amendments
thereto, upon the failure of any person to satisfy the obligation under any
agreement entered into pursuant to the teacher service scholarship
program, such person shall pay to the executive officer an amount equal to
the total amount of money received by such person pursuant to such
agreement plus accrued interest at a rate which is equivalent to the interest
rate applicable to loans made under the federal PLUS program at the time
such person first entered into an agreement plus five percentage points
from the accrual date as determined under section 1, and amendments
thereto, and at the rate prescribed in section 1, and amendments thereto.
Amounts of payment under this section shall be adjusted proportionately
for full years of the obligation that have been satisfied. Installment
payments of any such amounts may be made in accordance with the
provisions of the agreement entered into by the scholarship recipient or if
no such provisions exist in such agreement, in accordance with rules and
regulations of the state board of regents, except that such installment
payments shall commence six months after the date of the action or
circumstances that cause the failure of the person to satisfy the obligations
of such agreements, as determined by the executive officer based upon the
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circumstances of each individual case. Amounts paid under this section to
the executive officer shall be deposited in the teacher service scholarship
repayment fund in accordance with K.S.A. 74-32,107, and amendments
thereto.
(b) The state board of regents is authorized to turn any repayment
account arising under the teacher service scholarship program over to a
designated loan servicer or collection agency, the state not being involved
other than to receive payments from the loan servicer or collection agency
at the interest rate prescribed under this section in section 1, and
amendments thereto.
Sec. 9. K.S.A. 74-32,116 is hereby amended to read as follows: 74-
32,116. (a) Except as provided in K.S.A. 74-32,117, and amendments
thereto, upon the failure of a person to satisfy any obligation under an
agreement entered into in accordance with the Kansas ethnic minority
fellowship program, such person shall pay to the executive officer an
amount equal to the total amount of money received by such person
pursuant to such agreement plus accrued interest from the date such money
was received at a rate which is equivalent to the interest rate applicable to
loans made under the federal PLUS program at the time such person first
entered into an agreement plus five percentage points accrual date as
determined under section 1, and amendments thereto, and at the rate
prescribed in section 1, and amendments thereto. Amounts of payment
under this section shall be adjusted proportionately for full years of
performance of the obligations that have been satisfied. Installment
payments of any such amounts may be made in accordance with the
provisions of the agreement entered into by the fellowship recipient or if
no such provisions exist in such agreement, in accordance with rules and
regulations of the state board of regents, except that such installment
payments shall commence six months after the date of the action or
circumstances that cause the failure of the person to satisfy the obligations
of such agreements, as determined by the executive officer based upon the
circumstances of each individual case. Amounts paid under this section to
the executive officer shall be deposited in the Kansas ethnic minority
fellowship program fund in accordance with K.S.A. 74-32,119, and
amendments thereto.
(b) The state board of regents is authorized to turn any repayment
account arising under the Kansas ethnic minority fellowship program over
to a designated loan servicer or collection agency, the state not being
involved other than to receive payments from the loan servicer or
collection agency at the interest rate prescribed under this section in
section 1, and amendments thereto.
Sec. 10. K.S.A. 74-32,135 is hereby amended to read as follows: 74-
32,135. (a) Except as provided in K.S.A. 74-32,136, and amendments
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thereto, upon the failure of any person to satisfy the obligation under any
agreement entered into pursuant to this act, such person shall pay to the
executive officer an amount equal to the total amount of money received
by such person pursuant to such agreement which that is financed by the
state of Kansas plus accrued interest at a rate which is equivalent to the
interest rate applicable to loans made under the federal PLUS program at
the time such person first entered into an agreement plus five percentage
points from the accrual date as determined under section 1, and
amendments thereto, and at the rate prescribed in section 1, and
amendments thereto. Installment payments of such amounts may be made
in accordance with rules and regulations of the state board of regents,
except that such installment payments shall commence six months after
the date of the action or circumstances that cause the failure of the person
to satisfy the obligations of such agreements, as determined by the
executive officer based upon the circumstances of each individual case.
Amounts paid under this section to the executive officer shall be deposited
in the advanced practice registered nurse service scholarship program fund
in accordance with K.S.A. 74-32,138, and amendments thereto.
(b) The state board of regents is authorized to turn any repayment
account arising under the advanced practice registered nurse service
scholarship program over to a designated loan servicer or collection
agency, the state not being involved other than to receive payments from
the loan servicer or collection agency at the interest rate prescribed under
this section in section 1, and amendments thereto.
Sec. 11. K.S.A. 74-32,153 is hereby amended to read as follows: 74-
32,153. (a) Upon completion of the recipient's program of study, the
recipient shall be eligible for forgiveness of the loan by living and working
in Kansas.
(b) By annually providing to the board of regents the required
documentation certifying that the recipient worked and lived in Kansas
throughout the prior year. Such documentation shall be provided to the
board of regents within 30 days of the annual due date calculated from the
completion of the course of study.
(c) If the required documentation certifying that the recipient lived
and worked in Kansas is not received in the prescribed time by the board,
the remaining loan amount shall be due and payable as prescribed under
K.S.A. 74-32,154 and amendments thereto.
(d) Interest rates on the loan shall be determined by the state treasurer
according to the interest rate received on the state idle funds plus 3%.
Sec. 12. K.S.A. 74-32,154 is hereby amended to read as follows: 74-
32,154. (a) Except as otherwise provided in K.S.A. 74-32,155, and
amendments thereto, upon the failure of any person to satisfy an obligation
incurred under the loan agreement as provided in K.S.A. 74-32,152, and
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amendments thereto, such person shall repay to the state treasurer an
amount equal to the total of: (1) The amount of money received by such
person pursuant to such agreement,; plus (2) accrued interest, calculated at
the interest rate on the state idle funds plus 3%, from the date such money
was received from the accrual date as determined under section 1, and
amendments thereto, and at the rate prescribed in section 1, and
amendments thereto.
(b) Each person required to repay any amount under this section shall
repay an amount totaling the entire amount to be repaid under all such
agreements for which obligations are not satisfied, including all amounts
of interest at the rate prescribed in subsection (a) section 1, and
amendments thereto. Except as otherwise provided in this section, such
repayment shall be made in installment payments determined by the state
board of regents as provided in subsection (c) of the K.S.A. 74-32,152(c),
and amendments thereto.
(c) All installment payments under this section shall commence six
months after the date of the action or circumstance that causes the failure
of the person to satisfy the obligations of such agreements, as determined
by the state board of regents based upon the circumstances of each
individual case. If an installment payment becomes 91 days overdue, the
entire amount outstanding shall become immediately due and payable,
including all amounts of interest at the rate prescribed in section 1, and
amendments thereto.
(d) The total repayment obligation imposed under all agreements
entered into as provided in K.S.A. 74-32,152, and amendments thereto,
may be satisfied at any time prior to graduation by making a single lump-
sum payment equal to the total of: (1) The entire amount to be repaid
under all such agreements upon failure to satisfy the obligations under
such agreements to practice in Kansas,; plus (2) all amounts of interest
accrued thereon at the rate prescribed in subsection (a) section 1, and
amendments thereto.
(e) The state board of regents is authorized to turn any delinquent
repayment account arising under the workforce development loan program
to a designated loan servicer or collection agency, the state not being
involved other than to receive payments from the loan servicer or
collection agency at the interest rate prescribed under this section in
section 1, and amendments thereto.
Sec. 13. K.S.A. 74-32,223 is hereby amended to read as follows: 74-
32,223. (a) Except as provided in K.S.A. 74-32,224, and amendments
thereto, upon the failure of any person to satisfy the obligation under any
agreement entered into pursuant to the program, such person shall pay to
the executive officer an amount equal to the total amount of money
received by such person pursuant to such agreement plus accrued interest
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at a rate which is equivalent to the interest rate applicable to loans made
under the federal PLUS program at the time such person first entered into
an agreement plus five percentage points from the accrual date as
determined under section 1, and amendments thereto, and at the rate
prescribed in section 1, and amendments thereto. Installment payments of
any such amounts may be made in accordance with the provisions of
agreements entered into by the scholarship recipient and the executive
officer, in accordance with rules and regulations of the state board of
regents, except that such installment payments shall commence six months
after the date of the action or circumstances that cause the failure of the
person to satisfy the obligations of such agreements, as determined by the
executive officer based upon the circumstances of each individual case.
Amounts paid under this section to the executive officer shall be deposited
in the nurse educator service scholarship repayment fund in accordance
with K.S.A. 74-32,226, and amendments thereto.
(b) The state board of regents is authorized to turn any repayment
account arising under the program over to a designated loan servicer or
collection agency, the state not being involved other than to receive
payments from the loan servicer or collection agency at the interest rate
prescribed under this section in section 1, and amendments thereto.
Sec. 14. K.S.A. 2023 Supp. 74-32,276 is hereby amended to read as
follows: 74-32,276. (a) As a condition to receiving a Kansas promise
scholarship, an eligible student shall enter into a Kansas promise
scholarship agreement with the state board of regents. The eligible
postsecondary educational institution making the scholarship award to
such student shall counsel each eligible student on the requirements and
conditions of the promise scholarship agreement. Such agreement shall
require any student who receives a Kansas promise scholarship to:
(1) Enroll as a full-time or part-time student at the eligible
postsecondary educational institution from which the student is receiving a
Kansas promise scholarship and engage in and complete the required
promise eligible program within 36 months of the date the scholarship was
first awarded;
(2) within six months after graduation from the promise eligible
program:
(A) Reside in and commence work in the state of Kansas for at least
two consecutive years following completion of such program. A
scholarship recipient may use a form W-2 wage and tax statement showing
Kansas withholding or estimated income tax to the state of Kansas as
proof of work in Kansas; or
(B) enroll as a full-time or part-time student in any public or private
postsecondary educational institution with its primary location in Kansas
and upon graduation or failure to re-enroll, reside in and commence work
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in Kansas for at least two consecutive years following the completion of
such program;
(3) maintain records and make reports to the state board of regents on
such forms and in such manner as required by the state board of regents to
document the satisfaction of the requirements of this act; and
(4) upon failure to satisfy the requirements of a Kansas promise
scholarship agreement, repay the amount of the Kansas promise
scholarship the student received under the program as provided in
subsection (b) to the state board of regents.
(b) (1) Except as provided in subsection (c), if any student who
receives a Kansas promise scholarship fails to satisfy the requirements of a
Kansas promise scholarship agreement, such student shall pay an amount
equal to the total amount of money received by such student pursuant to
such agreement that is financed by the state of Kansas plus accrued
interest at a rate equivalent to the interest rate applicable to loans made
under the federal PLUS program at the time such student's first course
funded by a Kansas promise scholarship award began. Interest shall begin
accruing on the date the student is determined to be out of compliance with
the Kansas promise scholarship agreement from the accrual date as
determined under section 1, and amendments thereto, and at the rate
prescribed in section 1, and amendments thereto. Monthly installment
payments of such amounts may be made in accordance with rules and
regulations of the state board of regents. Such installment payments shall
begin six months after the date of the action or circumstances that cause
such student to fail to satisfy the requirements of a Kansas promise
scholarship agreement, as determined by the state board of regents upon
the circumstances of each individual case. All moneys received pursuant to
this subsection shall be remitted to the state treasurer in accordance with
the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt
of each such remittance, the state treasurer shall deposit the entire amount
in the state treasury to the credit of the Kansas promise scholarship
program fund.
(2) For any Kansas promise scholarship awarded on or after July 1,
2021, the state board of regents shall be the sole entity responsible for
collecting or recouping any Kansas promise scholarship funds required to
be repaid by a student who fails to satisfy the requirements of a Kansas
promise scholarship agreement pursuant to this section.
(3) The state board of regents is authorized to turn any repayment
account arising under this act to a designated loan servicer or collection
agency to collect on the state board's behalf, the state not being involved
other than to receive payments from the loan servicer or collection agency
at the interest rate prescribed under this subsection in section 1, and
amendments thereto.
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(4) Eligible postsecondary educational institutions and each state
agency are authorized to provide academic, employment, residency and
contact information regarding students who received a Kansas promise
scholarship to the state board of regents for the purposes of:
(A) Determining whether or not a student satisfied the requirements
of this act and the Kansas promise scholarship agreement; and
(B) aiding in the collection or recoupment of any funds required to be
repaid pursuant to this section.
(5) Eligible postsecondary educational institutions shall:
(A) Provide annually to the state board of regents the last known
contact information of each student who received a Kansas promise
scholarship until the requirements of the program and scholarship
agreement are complete; and
(B) notify the state board of regents when a student who received a
Kansas promise scholarship:
(i) Completes the program of study for which the student received the
scholarship or has exhausted scholarship benefits; and
(ii) exceeds the 36-month program completion requirement provided
in this section. This requirement shall apply to any Kansas promise
scholarship awarded on or after July 1, 2021.
(6) For any Kansas promise scholarship awarded on or after July 1,
2021, eligible postsecondary educational institutions shall not be
considered a contractor of the state nor shall such institutions be required
to participate in tracking, collecting or recouping any funds required to be
repaid by a student who fails to satisfy the requirements of a Kansas
promise scholarship agreement pursuant to this section.
(c) Any requirement of a Kansas promise scholarship agreement
entered into pursuant to this section may be postponed for good cause in
accordance with rules and regulations of the state board of regents.
(d) A scholarship recipient satisfies the requirements of the Kansas
promise scholarship program if such recipient:
(1) Completes the requirements of the scholarship agreement;
(2) commences service as a military servicemember after receiving a
Kansas promise scholarship;
(3) fails to satisfy the requirements after making the best possible
effort to do so as determined by the state board of regents;
(4) is unable to obtain employment or continue in employment after
making the best possible effort to do so; or
(5) is unable to satisfy the requirements due to disability or death of
the scholarship recipient.
Sec. 15. K.S.A. 2023 Supp. 74-32,286 is hereby amended to read as
follows: 74-32,286. (a) As a condition to receiving a grant under this act,
an eligible student shall enter into an agreement with the state board of
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regents. The eligible postsecondary educational institution that awarded
such grant. Such eligible postsecondary educational institution shall
counsel each eligible student on the requirements and conditions of the
agreement. Such agreement shall require any student who receives a grant
award to:
(1) Enroll as a full-time or part-time student at the eligible
postsecondary educational institution that made the grant award and
engage in and complete the adult learner grant eligible program;
(2) within six months after graduation from the adult learner grant
eligible program:
(A) Reside and commence work in the state of Kansas for at least two
consecutive years following completion of such program. A scholarship
recipient may use a form W-2 wage and tax statement showing Kansas
withholding or estimated income tax to the state of Kansas as proof of
work in Kansas; or
(B) enroll as a full-time or part-time student in any public or private
postsecondary educational institution with its primary location in Kansas
and upon graduation or failure to re-enroll, reside in and commence work
in Kansas for at least two consecutive years following the completion of
such program;
(3) maintain records and make reports to the state board of regents on
such forms and in such manner as required by the state board of regents to
document the satisfaction of the requirements of this act; and
(4) upon failure to satisfy the requirements of an agreement entered
into pursuant to this section, repay the amount of the grant award the
student received under the program as provided in subsection (b) to the
state board of regents.
(b) (1) Except as provided in subsection (c), if any student who
receives a grant award fails to satisfy the requirements of the agreement
entered into pursuant to this section, such student shall pay an amount
equal to the total amount of money received by such student pursuant to
such agreement plus accrued interest at a rate equivalent to the interest rate
applicable to loans made under the federal PLUS program at the time such
student's first course funded by a grant award began. Interest shall begin
accruing on the date the student is determined to be out of compliance with
the agreement from the accrual date as determined under section 1, and
amendments thereto, and at the rate prescribed in section 1, and
amendments thereto. Monthly installment payments of such amounts may
be made in accordance with rules and regulations of the state board of
regents. Such installment payments shall begin six months after the date of
the action or circumstances that cause such student to fail to satisfy the
requirements of the agreement, as determined by the state board of regents
upon the circumstances of each individual case. All moneys received
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pursuant to this subsection shall be remitted to the state treasurer in
accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount in the state treasury to the credit of the Kansas
adult learner grant program fund.
(2) The state board of regents shall be the sole entity responsible for
collecting or recouping any grant moneys required to be repaid by a
student who fails to satisfy the requirements of an agreement entered into
pursuant to this section.
(3) The state board of regents is authorized to turn any repayment
account arising under this act to a designated loan servicer or collection
agency to collect on the state board's behalf. The state's involvement shall
only be to receive payments from the loan servicer or collection agency at
the interest rate prescribed under this subsection in section 1, and
amendments thereto.
(4) Eligible postsecondary educational institutions and each state
agency are authorized to provide academic, employment, residency and
contact information regarding students who received a grant award to the
state board of regents for the purposes of:
(A) Determining whether or not a student satisfied the requirements
of this act and the agreement entered into pursuant to this section; and
(B) aiding in the collection or recoupment of any funds required to be
repaid pursuant to this section.
(5) Eligible postsecondary educational institutions shall:
(A) Provide annually to the state board of regents the last known
contact information of each student who received a grant award until the
requirements of the program and the agreement are complete; and
(B) notify the state board of regents when a student who received a
grant award completes the program of study for which the student received
the grant or has exhausted the benefits available under this act.
(6) Eligible postsecondary educational institutions shall not be
considered a contractor of the state nor shall such institutions be required
to participate in tracking, collecting or recouping any moneys required to
be repaid by a student who fails to satisfy the requirements of an
agreement entered into pursuant to this section.
(c) Any requirement of an agreement entered into pursuant to this
section may be postponed for good cause in accordance with rules and
regulations of the state board of regents.
(d) A scholarship recipient satisfies the requirements of the adult
learner grant program if such recipient:
(1) Completes the requirements of the agreement entered into
pursuant to this section;
(2) commences service as a military servicemember after receiving a
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grant award;
(3) fails to satisfy the requirements after making the best possible
effort to do so as determined by the state board of regents;
(4) is unable to obtain employment or continue in employment after
making the best possible effort to do so; or
(5) is unable to satisfy the requirements due to disability or death of
the grant recipient.
Sec. 16. K.S.A. 74-3260, 74-3267, 74-3272, 74-3295, 74-32,104, 74-
32,116, 74-32,135, 74-32,153, 74-32,154 and 74-32,223 and K.S.A. 2023
Supp. 74-32,276 and 74-32,286 are hereby repealed.
Sec. 17. This act shall take effect and be in force from and after its
publication in the statute book.
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