Kansas 2023-2024 Regular Session

Kansas House Bill HB2644 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Session of 2024
2	2	HOUSE BILL No. 2644
3	3	By Committee on Education
4	4	Requested by Fred Patton on behalf of the State Board of Regents
5	5	1-31
6	6	AN ACT concerning the state board of regents; relating to certain
7	7	scholarship programs administered by the board; establishing uniform
8	8	interest rate provisions for scholarship programs that include repayment
9	9	obligations as a condition of receipt of such financial assistance;
10	10	authorizing the board to recover the costs of collecting such repayment
11	11	obligations; authorizing the board to charge fees to cover the costs of
12	12	administering scholarship, grant and other financial assistance
13	13	programs; amending K.S.A. 74-3260, 74-3267, 74-3272, 74-3295, 74-
14	14	32,104, 74-32,116, 74-32,135, 74-32,153, 74-32,154 and 74-32,223 and
15	15	K.S.A. 2023 Supp. 74-32,276 and 74-32,286 and repealing the existing
16	16	sections.
17	17	Be it enacted by the Legislature of the State of Kansas:
18	18	New Section 1. (a) The applicable interest rate shall be 5% per
19	19	annum for any repayment obligation owed by an individual that:
20	20	(1) Arises under any scholarship, grant or other student financial aid
21	21	program established in article 32 of chapter 74 of the Kansas Statutes
22	22	Annotated, and amendments thereto, or under any agreement entered into
23	23	pursuant to any such scholarship, grant or other student financial aid
24	24	program; and
25	25	(2) requires the payment of interest pursuant to the terms of the
26	26	statute governing repayment obligations under such scholarship, grant or
27	27	other student financial aid program or any agreement entered into by
28	28	which the individual received the scholarship, grant or other student
29	29	financial aid moneys.
30	30	(b) The interest rate set forth in subsection (a) shall begin to accrue
31	31	not earlier than the date that the individual's obligation to repay such
32	32	scholarship, grant or other student financial aid moneys to the state board
33	33	of regents commences as determined by the state board of regents.
34	34	(c) The interest rate set forth in subsection (a) and the accrual date as
35	35	determined under subsection (b) shall apply to all repayment obligations
36	36	arising in relation to any scholarship, grant or other student financial aid
37	37	moneys distributed prior to July 1, 2024, pursuant to any scholarship, grant
38	38	or other student financial aid program established in article 32 of chapter
39	39	74 of the Kansas Statutes Annotated, and amendments thereto.
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75	75	(d) Nothing in this section shall be construed to:
76	76	(1) Impose an interest rate that is in excess of the interest rate
77	77	specified in applicable state law at the time an individual received the
78	78	scholarship, grant or other student financial aid moneys related to such
79	79	individual's repayment obligation or as specified in any agreement
80	80	between such individual and a state educational institution, a sponsor or
81	81	the state board of regents for the receipt of such scholarship, grant or other
82	82	student financial aid moneys; and
83	83	(2) grant any right, claim or other entitlement by any individual to a
84	84	refund of any portion of amounts paid by such individual as full or partial
85	85	fulfillment of such individual's repayment obligations.
86	86	New Sec. 2. The state board of regents may recover the reasonable
87	87	costs of collection, including, but not limited to, court costs, attorney fees
88	88	and collection agency fees, from any individual who is subject to a
89	89	repayment obligation arising under any scholarship, grant or other student
90	90	financial aid program established in article 32 of chapter 74 of the Kansas
91	91	Statutes Annotated, and amendments thereto, or under any agreement
92	92	entered into pursuant to any such scholarship, grant or other student
93	93	financial aid program.
94	94	New Sec. 3. The chief executive officer of the state board of regents
95	95	may fix, charge and collect fees for the processing of applications and
96	96	other activities related to the administration of student financial assistance
97	97	programs administered by the state board of regents. Such fees shall be
98	98	fixed in such amounts as to recover all or a part of the direct and indirect
99	99	operating expenses incurred for administering such programs. All moneys
100	100	received by the state board of regents from the payment of such fees shall
101	101	be deposited in the state treasury in accordance with K.S.A. 75-4215, and
102	102	amendments thereto, and shall be credited to the financial aid services fee
103	103	fund of the state board of regents.
104	104	Sec. 4. K.S.A. 74-3260 is hereby amended to read as follows: 74-
105	105	3260. (a) Upon the failure of any person, who as an eligible student
106	106	qualified for and received payments under an ROTC service scholarship,
107	107	to remain eligible and qualified or to satisfy the obligation to accept a
108	108	commission and serve as an officer in the Kansas national guard for the
109	109	required period of time under an agreement entered into pursuant to this
110	110	act, such person shall pay to the state of Kansas an amount equal to the
111	111	total amount of payments received by such person plus accrued interest
112	112	from the date such payments were received at a rate which is equivalent to
113	113	the interest rate applicable to loans made under the federal PLUS program
114	114	at the time such person first entered into an agreement plus five percentage
115	115	points accrual date as determined under section 1, and amendments
116	116	thereto, and at the rate prescribed in section 1, and amendments thereto.
117	117	Such payment shall commence within 30 days, and be completed within
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161	161	five years, after the date of the act or circumstance that causes the failure
162	162	of the person to remain eligible and qualified or to satisfy the obligation of
163	163	such agreement. Payments under this section shall be installment payments
164	164	and each such installment shall be not less than an amount equal to
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166	166	/5 of
167	167	the total amount which that would be required to be paid if paid in five
168	168	equal annual installments. If an installment payment becomes 91 days
169	169	overdue, the entire amount outstanding shall become immediately due and
170	170	payable, including all interest at the rate prescribed in section 1, and
171	171	amendments thereto. Amounts paid under this section shall be deposited in
172	172	the state treasury and credited to the ROTC service scholarship repayment
173	173	fund as provided in K.S.A. 74-3260a, and amendments thereto.
174	174	(b) The state board of regents is authorized to turn any repayment
175	175	account arising under the ROTC service scholarship program over to a
176	176	designated loan servicer or collection agency, the state not being involved
177	177	other than to receive payments from the loan servicer or collection agency
178	178	at the interest rate prescribed under this section in section 1, and
179	179	amendments thereto.
180	180	Sec. 5. K.S.A. 74-3267 is hereby amended to read as follows: 74-
181	181	3267. (a) (1) Except as otherwise provided in K.S.A. 74-3268, and
182	182	amendments thereto, upon the failure of any person to satisfy the
183	183	obligation to engage in the full-time or part-time practice of medicine and
184	184	surgery within the state of Kansas for the required period of time under an
185	185	agreement entered into as provided in K.S.A. 74-3266, and amendments
186	186	thereto, such person shall repay to the state board of regents an amount
187	187	equal to the total of (1):
188	188	(A) The amount of money received by such person pursuant to such
189	189	agreement; plus (2)
190	190	(B) accrued interest from the date such money was received at a rate
191	191	which is equivalent to the interest rate applicable to loans made under the
192	192	federal PLUS program at the time such person first entered into an
193	193	agreement plus five percentage points accrual date as determined under
194	194	section 1, and amendments thereto, and at the rate prescribed in section 1,
195	195	and amendments thereto.
196	196	(2) Any person who applies for and enters a postgraduate residency
197	197	training program that is not an approved program as provided in this
198	198	section shall be required to repay all moneys received as provided in an
199	199	agreement entered into under K.S.A. 74-3266, and amendments thereto,
200	200	plus accrued interest from the date such moneys were received at a rate
201	201	which is equivalent to the interest rate applicable to loans made under the
202	202	federal PLUS program at the time such person first entered into an
203	203	agreement plus five percentage points accrual date as determined under
204	204	section 1, and amendments thereto, and at the rate prescribed in section 1,
205	205	and amendments thereto, and shall commence such repayment in
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249	249	accordance with subsection (b) within 90 days of graduation from the
250	250	school of osteopathic medicine or upon termination or completion of a
251	251	residency training program which that does not comply with the
252	252	provisions of this act, whichever is later.
253	253	(3) Any person who enters and completes an approved postgraduate
254	254	residency training program but fails to satisfy the obligation to engage in
255	255	the full-time or part-time practice of medicine and surgery for the required
256	256	period of time shall be required to repay all money received pursuant to an
257	257	agreement entered into under K.S.A. 74-3266, and amendments thereto,
258	258	plus accrued interest from the date such money was received at a rate
259	259	which is equivalent to the interest rate applicable to loans made under the
260	260	federal PLUS program at the time such person first entered into an
261	261	agreement plus five percentage points accrual date as determined under
262	262	section 1, and amendments thereto, and at the rate prescribed in section 1,
263	263	and amendments thereto, and shall commence such repayment in
264	264	accordance with subsection (b) within 90 days of failure to satisfy the
265	265	obligation.
266	266	(b) Each person required to repay any amount under this section shall
267	267	repay an amount totaling the entire amount to be repaid under all such
268	268	agreements for which obligations are not satisfied, including all amounts
269	269	of interest at the rate prescribed in section 1, and amendments thereto.
270	270	Except as otherwise provided in this section, such repayment shall be in
271	271	installment payments and each such installment shall be not less than an
272	272	amount equal to
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274	274	/5 of the total amount which that would be required to be
275	275	paid if repaid in five equal annual installments.
276	276	(c) Except as otherwise provided in subparts (2) and (3) of subsection
277	277	(a) subsections (a)(2) and (a)(3), all installment payments under this
278	278	section shall commence six months after the date of the action or
279	279	circumstance that causes the failure of the person to satisfy the obligations
280	280	of such agreements, as determined by the state board of regents based
281	281	upon the circumstances of each individual case. If an installment payment
282	282	becomes 91 days overdue, the entire amount outstanding shall become
283	283	immediately due and payable, including all amounts of interest at the rate
284	284	prescribed in section 1, and amendments thereto.
285	285	(d) The total repayment obligation imposed under all agreements
286	286	entered into as provided in K.S.A. 74-3266, and amendments thereto, may
287	287	be satisfied at any time prior to graduation from the accredited school of
288	288	osteopathic medicine by making a single lump sum payment equal to the
289	289	total of:
290	290	(1) The entire amount to be repaid under all such agreements upon
291	291	failure to satisfy the obligations under such agreements to practice in
292	292	Kansas,; plus
293	293	(2) all amounts of interest accrued thereon at the rate prescribed
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337	337	under this section in section 1, and amendments thereto.
338	338	(e) The state board of regents is authorized to turn any repayment
339	339	account arising under the osteopathic medical service scholarship program
340	340	over to a designated loan servicer or collection agency, the state not being
341	341	involved other than to receive payments from the loan servicer or
342	342	collection agency at the interest rate prescribed under this section in
343	343	section 1, and amendments thereto.
344	344	Sec. 6. K.S.A. 74-3272 is hereby amended to read as follows: 74-
345	345	3272. (a) Except as otherwise provided in subsection (e) and in K.S.A. 74-
346	346	3273, and amendments thereto, upon the failure of any person to satisfy
347	347	the obligation to engage in the full-time or part-time practice of optometry
348	348	within the state of Kansas for the required period of time under an
349	349	agreement entered into pursuant to K.S.A. 74-3271, and amendments
350	350	thereto, such person shall repay to the state board of regents an amount
351	351	equal to the total of:
352	352	(1) The amount of money paid by the state board of regents for
353	353	guaranteed admission and continued enrollment of such person in an
354	354	accredited school or college of optometry pursuant to a contract entered
355	355	into therefor under K.S.A. 76-721a, and amendments thereto,; plus
356	356	(2) accrued interest from the date such money was paid pursuant to
357	357	such contract at a rate which is equivalent to the interest rate applicable to
358	358	loans made under the federal PLUS program at the time such person first
359	359	entered into an agreement plus five percentage points accrual date as
360	360	determined under section 1, and amendments thereto, and at the rate
361	361	prescribed in section 1, and amendments thereto.
362	362	(b) Each person required to repay any amount under this section shall
363	363	repay an amount totaling the entire amount to be repaid under such
364	364	agreement for which such obligation is not satisfied, including all interest
365	365	at the rate prescribed in section 1, and amendments thereto. Except as
366	366	otherwise provided in this section, such repayment shall be in installment
367	367	payments and each such installment shall be not less than an amount equal
368	368	to
369	369	1
370	370	/5 of the total amount which that would be required to be paid if repaid
371	371	in five equal annual installments.
372	372	(c) All installment payments under this section shall commence six
373	373	months after the date of the action or circumstance that causes the failure
374	374	of the person to satisfy the obligations of such agreement, as determined
375	375	by the state board of regents based upon the circumstances of each
376	376	individual case. If an installment payment becomes 91 days overdue, the
377	377	entire amount outstanding shall become immediately due and payable,
378	378	including all interest at the rate prescribed in section 1, and amendments
379	379	thereto.
380	380	(d) The total repayment obligation imposed under an agreement
381	381	entered into pursuant to K.S.A. 74-3271, and amendments thereto, may be
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425	425	satisfied at any time prior to graduation from the accredited school or
426	426	college of optometry by making a single lump-sum payment equal to the
427	427	total of:
428	428	(1) The entire amount to be repaid under such agreement upon failure
429	429	to satisfy the obligation to practice optometry in Kansas,; plus
430	430	(2) all interest thereon at the rate prescribed to the date of payment in
431	431	section 1, and amendments thereto.
432	432	(e) If a person fails to satisfy an obligation to engage in the full-time
433	433	or part-time practice of optometry in Kansas for the required period of
434	434	time under an agreement entered into pursuant to K.S.A. 74-3271, and
435	435	amendments thereto, because such person is engaged in the practice of
436	436	optometry in a state other than Kansas, and if such person is subject to or
437	437	currently making repayments under this section, and if such person
438	438	subsequently commences the practice of optometry in this state which
439	439	complies with the agreements entered into under such statute, the balance
440	440	of the repayment amount, including interest thereon, from the time of such
441	441	commencement of practice until the obligation of such person is satisfied,
442	442	or until the time such person again becomes subject to repayments, shall
443	443	be waived. All repayment amounts due prior to such commencement of
444	444	practice in this state, including interest thereon, shall continue to be
445	445	payable as provided in this section. If subsequent to such commencement
446	446	of practice, the person fails to satisfy such obligation, the person again
447	447	shall be subject to repayments, including interest thereon, as otherwise
448	448	provided in this section.
449	449	(f) The state board of regents is authorized to turn any repayment
450	450	account arising under the optometry service scholarship program over to a
451	451	designated loan servicer or collection agency, the state not being involved
452	452	other than to receive payments from the loan servicer or collection agency
453	453	at the interest rate prescribed under this section in section 1, and
454	454	amendments thereto.
455	455	Sec. 7. K.S.A. 74-3295 is hereby amended to read as follows: 74-
456	456	3295. (a) Except as provided in K.S.A. 74-3296, and amendments thereto,
457	457	upon the failure of any person to satisfy the obligation under any
458	458	agreement entered into pursuant to the nursing service scholarship
459	459	program, such person shall pay to the executive officer an amount equal to
460	460	the total amount of money received by such person pursuant to such
461	461	agreement which that was financed by the state of Kansas plus accrued
462	462	interest at a rate which is equivalent to the interest rate applicable to loans
463	463	made under the federal PLUS program at the time such person first entered
464	464	into an agreement plus five percentage points from the accrual date as
465	465	determined under section 1, and amendments thereto, and at the rate
466	466	prescribed in section 1, and amendments thereto, and shall pay to the
467	467	sponsor an amount equal to the total amount of money received by such
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511	511	person pursuant to such agreement which that was financed by the sponsor
512	512	plus accrued interest at a rate which is equivalent to the interest rate
513	513	applicable to loans made under the federal PLUS program at the time such
514	514	person first entered into an agreement plus five percentage points from the
515	515	accrual date as determined under section 1, and amendments thereto, and
516	516	at the rate prescribed in section 1, and amendments thereto. Installment
517	517	payments of any such amounts may be made in accordance with the
518	518	provisions of agreements entered into by the scholarship recipient and the
519	519	sponsor or if no such provisions exist in such agreements, in accordance
520	520	with rules and regulations of the state board of regents, except that such
521	521	installment payments shall commence six months after the date of the
522	522	action or circumstances that cause the failure of the person to satisfy the
523	523	obligations of such agreements, as determined by the executive officer
524	524	based upon the circumstances of each individual case. Amounts paid under
525	525	this section to the executive officer shall be deposited in the nursing
526	526	service scholarship repayment fund in accordance with K.S.A. 74-3298,
527	527	and amendments thereto.
528	528	(b) The state board of regents is authorized to turn any repayment
529	529	account arising under the nursing service scholarship program over to a
530	530	designated loan servicer or collection agency, the state not being involved
531	531	other than to receive payments from the loan servicer or collection agency
532	532	at the interest rate prescribed under this section in section 1, and
533	533	amendments thereto.
534	534	Sec. 8. K.S.A. 74-32,104 is hereby amended to read as follows: 74-
535	535	32,104. (a) Except as provided in K.S.A. 74-32,105, and amendments
536	536	thereto, upon the failure of any person to satisfy the obligation under any
537	537	agreement entered into pursuant to the teacher service scholarship
538	538	program, such person shall pay to the executive officer an amount equal to
539	539	the total amount of money received by such person pursuant to such
540	540	agreement plus accrued interest at a rate which is equivalent to the interest
541	541	rate applicable to loans made under the federal PLUS program at the time
542	542	such person first entered into an agreement plus five percentage points
543	543	from the accrual date as determined under section 1, and amendments
544	544	thereto, and at the rate prescribed in section 1, and amendments thereto.
545	545	Amounts of payment under this section shall be adjusted proportionately
546	546	for full years of the obligation that have been satisfied. Installment
547	547	payments of any such amounts may be made in accordance with the
548	548	provisions of the agreement entered into by the scholarship recipient or if
549	549	no such provisions exist in such agreement, in accordance with rules and
550	550	regulations of the state board of regents, except that such installment
551	551	payments shall commence six months after the date of the action or
552	552	circumstances that cause the failure of the person to satisfy the obligations
553	553	of such agreements, as determined by the executive officer based upon the
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597	597	circumstances of each individual case. Amounts paid under this section to
598	598	the executive officer shall be deposited in the teacher service scholarship
599	599	repayment fund in accordance with K.S.A. 74-32,107, and amendments
600	600	thereto.
601	601	(b) The state board of regents is authorized to turn any repayment
602	602	account arising under the teacher service scholarship program over to a
603	603	designated loan servicer or collection agency, the state not being involved
604	604	other than to receive payments from the loan servicer or collection agency
605	605	at the interest rate prescribed under this section in section 1, and
606	606	amendments thereto.
607	607	Sec. 9. K.S.A. 74-32,116 is hereby amended to read as follows: 74-
608	608	32,116. (a) Except as provided in K.S.A. 74-32,117, and amendments
609	609	thereto, upon the failure of a person to satisfy any obligation under an
610	610	agreement entered into in accordance with the Kansas ethnic minority
611	611	fellowship program, such person shall pay to the executive officer an
612	612	amount equal to the total amount of money received by such person
613	613	pursuant to such agreement plus accrued interest from the date such money
614	614	was received at a rate which is equivalent to the interest rate applicable to
615	615	loans made under the federal PLUS program at the time such person first
616	616	entered into an agreement plus five percentage points accrual date as
617	617	determined under section 1, and amendments thereto, and at the rate
618	618	prescribed in section 1, and amendments thereto. Amounts of payment
619	619	under this section shall be adjusted proportionately for full years of
620	620	performance of the obligations that have been satisfied. Installment
621	621	payments of any such amounts may be made in accordance with the
622	622	provisions of the agreement entered into by the fellowship recipient or if
623	623	no such provisions exist in such agreement, in accordance with rules and
624	624	regulations of the state board of regents, except that such installment
625	625	payments shall commence six months after the date of the action or
626	626	circumstances that cause the failure of the person to satisfy the obligations
627	627	of such agreements, as determined by the executive officer based upon the
628	628	circumstances of each individual case. Amounts paid under this section to
629	629	the executive officer shall be deposited in the Kansas ethnic minority
630	630	fellowship program fund in accordance with K.S.A. 74-32,119, and
631	631	amendments thereto.
632	632	(b) The state board of regents is authorized to turn any repayment
633	633	account arising under the Kansas ethnic minority fellowship program over
634	634	to a designated loan servicer or collection agency, the state not being
635	635	involved other than to receive payments from the loan servicer or
636	636	collection agency at the interest rate prescribed under this section in
637	637	section 1, and amendments thereto.
638	638	Sec. 10. K.S.A. 74-32,135 is hereby amended to read as follows: 74-
639	639	32,135. (a) Except as provided in K.S.A. 74-32,136, and amendments
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682	682	43 HB 2644 9
683	683	thereto, upon the failure of any person to satisfy the obligation under any
684	684	agreement entered into pursuant to this act, such person shall pay to the
685	685	executive officer an amount equal to the total amount of money received
686	686	by such person pursuant to such agreement which that is financed by the
687	687	state of Kansas plus accrued interest at a rate which is equivalent to the
688	688	interest rate applicable to loans made under the federal PLUS program at
689	689	the time such person first entered into an agreement plus five percentage
690	690	points from the accrual date as determined under section 1, and
691	691	amendments thereto, and at the rate prescribed in section 1, and
692	692	amendments thereto. Installment payments of such amounts may be made
693	693	in accordance with rules and regulations of the state board of regents,
694	694	except that such installment payments shall commence six months after
695	695	the date of the action or circumstances that cause the failure of the person
696	696	to satisfy the obligations of such agreements, as determined by the
697	697	executive officer based upon the circumstances of each individual case.
698	698	Amounts paid under this section to the executive officer shall be deposited
699	699	in the advanced practice registered nurse service scholarship program fund
700	700	in accordance with K.S.A. 74-32,138, and amendments thereto.
701	701	(b) The state board of regents is authorized to turn any repayment
702	702	account arising under the advanced practice registered nurse service
703	703	scholarship program over to a designated loan servicer or collection
704	704	agency, the state not being involved other than to receive payments from
705	705	the loan servicer or collection agency at the interest rate prescribed under
706	706	this section in section 1, and amendments thereto.
707	707	Sec. 11. K.S.A. 74-32,153 is hereby amended to read as follows: 74-
708	708	32,153. (a) Upon completion of the recipient's program of study, the
709	709	recipient shall be eligible for forgiveness of the loan by living and working
710	710	in Kansas.
711	711	(b) By annually providing to the board of regents the required
712	712	documentation certifying that the recipient worked and lived in Kansas
713	713	throughout the prior year. Such documentation shall be provided to the
714	714	board of regents within 30 days of the annual due date calculated from the
715	715	completion of the course of study.
716	716	(c) If the required documentation certifying that the recipient lived
717	717	and worked in Kansas is not received in the prescribed time by the board,
718	718	the remaining loan amount shall be due and payable as prescribed under
719	719	K.S.A. 74-32,154 and amendments thereto.
720	720	(d) Interest rates on the loan shall be determined by the state treasurer
721	721	according to the interest rate received on the state idle funds plus 3%.
722	722	Sec. 12. K.S.A. 74-32,154 is hereby amended to read as follows: 74-
723	723	32,154. (a) Except as otherwise provided in K.S.A. 74-32,155, and
724	724	amendments thereto, upon the failure of any person to satisfy an obligation
725	725	incurred under the loan agreement as provided in K.S.A. 74-32,152, and
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768	768	43 HB 2644 10
769	769	amendments thereto, such person shall repay to the state treasurer an
770	770	amount equal to the total of: (1) The amount of money received by such
771	771	person pursuant to such agreement,; plus (2) accrued interest, calculated at
772	772	the interest rate on the state idle funds plus 3%, from the date such money
773	773	was received from the accrual date as determined under section 1, and
774	774	amendments thereto, and at the rate prescribed in section 1, and
775	775	amendments thereto.
776	776	(b) Each person required to repay any amount under this section shall
777	777	repay an amount totaling the entire amount to be repaid under all such
778	778	agreements for which obligations are not satisfied, including all amounts
779	779	of interest at the rate prescribed in subsection (a) section 1, and
780	780	amendments thereto. Except as otherwise provided in this section, such
781	781	repayment shall be made in installment payments determined by the state
782	782	board of regents as provided in subsection (c) of the K.S.A. 74-32,152(c),
783	783	and amendments thereto.
784	784	(c) All installment payments under this section shall commence six
785	785	months after the date of the action or circumstance that causes the failure
786	786	of the person to satisfy the obligations of such agreements, as determined
787	787	by the state board of regents based upon the circumstances of each
788	788	individual case. If an installment payment becomes 91 days overdue, the
789	789	entire amount outstanding shall become immediately due and payable,
790	790	including all amounts of interest at the rate prescribed in section 1, and
791	791	amendments thereto.
792	792	(d) The total repayment obligation imposed under all agreements
793	793	entered into as provided in K.S.A. 74-32,152, and amendments thereto,
794	794	may be satisfied at any time prior to graduation by making a single lump-
795	795	sum payment equal to the total of: (1) The entire amount to be repaid
796	796	under all such agreements upon failure to satisfy the obligations under
797	797	such agreements to practice in Kansas,; plus (2) all amounts of interest
798	798	accrued thereon at the rate prescribed in subsection (a) section 1, and
799	799	amendments thereto.
800	800	(e) The state board of regents is authorized to turn any delinquent
801	801	repayment account arising under the workforce development loan program
802	802	to a designated loan servicer or collection agency, the state not being
803	803	involved other than to receive payments from the loan servicer or
804	804	collection agency at the interest rate prescribed under this section in
805	805	section 1, and amendments thereto.
806	806	Sec. 13. K.S.A. 74-32,223 is hereby amended to read as follows: 74-
807	807	32,223. (a) Except as provided in K.S.A. 74-32,224, and amendments
808	808	thereto, upon the failure of any person to satisfy the obligation under any
809	809	agreement entered into pursuant to the program, such person shall pay to
810	810	the executive officer an amount equal to the total amount of money
811	811	received by such person pursuant to such agreement plus accrued interest
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854	854	43 HB 2644 11
855	855	at a rate which is equivalent to the interest rate applicable to loans made
856	856	under the federal PLUS program at the time such person first entered into
857	857	an agreement plus five percentage points from the accrual date as
858	858	determined under section 1, and amendments thereto, and at the rate
859	859	prescribed in section 1, and amendments thereto. Installment payments of
860	860	any such amounts may be made in accordance with the provisions of
861	861	agreements entered into by the scholarship recipient and the executive
862	862	officer, in accordance with rules and regulations of the state board of
863	863	regents, except that such installment payments shall commence six months
864	864	after the date of the action or circumstances that cause the failure of the
865	865	person to satisfy the obligations of such agreements, as determined by the
866	866	executive officer based upon the circumstances of each individual case.
867	867	Amounts paid under this section to the executive officer shall be deposited
868	868	in the nurse educator service scholarship repayment fund in accordance
869	869	with K.S.A. 74-32,226, and amendments thereto.
870	870	(b) The state board of regents is authorized to turn any repayment
871	871	account arising under the program over to a designated loan servicer or
872	872	collection agency, the state not being involved other than to receive
873	873	payments from the loan servicer or collection agency at the interest rate
874	874	prescribed under this section in section 1, and amendments thereto.
875	875	Sec. 14. K.S.A. 2023 Supp. 74-32,276 is hereby amended to read as
876	876	follows: 74-32,276. (a) As a condition to receiving a Kansas promise
877	877	scholarship, an eligible student shall enter into a Kansas promise
878	878	scholarship agreement with the state board of regents. The eligible
879	879	postsecondary educational institution making the scholarship award to
880	880	such student shall counsel each eligible student on the requirements and
881	881	conditions of the promise scholarship agreement. Such agreement shall
882	882	require any student who receives a Kansas promise scholarship to:
883	883	(1) Enroll as a full-time or part-time student at the eligible
884	884	postsecondary educational institution from which the student is receiving a
885	885	Kansas promise scholarship and engage in and complete the required
886	886	promise eligible program within 36 months of the date the scholarship was
887	887	first awarded;
888	888	(2) within six months after graduation from the promise eligible
889	889	program:
890	890	(A) Reside in and commence work in the state of Kansas for at least
891	891	two consecutive years following completion of such program. A
892	892	scholarship recipient may use a form W-2 wage and tax statement showing
893	893	Kansas withholding or estimated income tax to the state of Kansas as
894	894	proof of work in Kansas; or
895	895	(B) enroll as a full-time or part-time student in any public or private
896	896	postsecondary educational institution with its primary location in Kansas
897	897	and upon graduation or failure to re-enroll, reside in and commence work
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940	940	43 HB 2644 12
941	941	in Kansas for at least two consecutive years following the completion of
942	942	such program;
943	943	(3) maintain records and make reports to the state board of regents on
944	944	such forms and in such manner as required by the state board of regents to
945	945	document the satisfaction of the requirements of this act; and
946	946	(4) upon failure to satisfy the requirements of a Kansas promise
947	947	scholarship agreement, repay the amount of the Kansas promise
948	948	scholarship the student received under the program as provided in
949	949	subsection (b) to the state board of regents.
950	950	(b) (1) Except as provided in subsection (c), if any student who
951	951	receives a Kansas promise scholarship fails to satisfy the requirements of a
952	952	Kansas promise scholarship agreement, such student shall pay an amount
953	953	equal to the total amount of money received by such student pursuant to
954	954	such agreement that is financed by the state of Kansas plus accrued
955	955	interest at a rate equivalent to the interest rate applicable to loans made
956	956	under the federal PLUS program at the time such student's first course
957	957	funded by a Kansas promise scholarship award began. Interest shall begin
958	958	accruing on the date the student is determined to be out of compliance with
959	959	the Kansas promise scholarship agreement from the accrual date as
960	960	determined under section 1, and amendments thereto, and at the rate
961	961	prescribed in section 1, and amendments thereto. Monthly installment
962	962	payments of such amounts may be made in accordance with rules and
963	963	regulations of the state board of regents. Such installment payments shall
964	964	begin six months after the date of the action or circumstances that cause
965	965	such student to fail to satisfy the requirements of a Kansas promise
966	966	scholarship agreement, as determined by the state board of regents upon
967	967	the circumstances of each individual case. All moneys received pursuant to
968	968	this subsection shall be remitted to the state treasurer in accordance with
969	969	the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt
970	970	of each such remittance, the state treasurer shall deposit the entire amount
971	971	in the state treasury to the credit of the Kansas promise scholarship
972	972	program fund.
973	973	(2) For any Kansas promise scholarship awarded on or after July 1,
974	974	2021, the state board of regents shall be the sole entity responsible for
975	975	collecting or recouping any Kansas promise scholarship funds required to
976	976	be repaid by a student who fails to satisfy the requirements of a Kansas
977	977	promise scholarship agreement pursuant to this section.
978	978	(3) The state board of regents is authorized to turn any repayment
979	979	account arising under this act to a designated loan servicer or collection
980	980	agency to collect on the state board's behalf, the state not being involved
981	981	other than to receive payments from the loan servicer or collection agency
982	982	at the interest rate prescribed under this subsection in section 1, and
983	983	amendments thereto.
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1026	1026	43 HB 2644 13
1027	1027	(4) Eligible postsecondary educational institutions and each state
1028	1028	agency are authorized to provide academic, employment, residency and
1029	1029	contact information regarding students who received a Kansas promise
1030	1030	scholarship to the state board of regents for the purposes of:
1031	1031	(A) Determining whether or not a student satisfied the requirements
1032	1032	of this act and the Kansas promise scholarship agreement; and
1033	1033	(B) aiding in the collection or recoupment of any funds required to be
1034	1034	repaid pursuant to this section.
1035	1035	(5) Eligible postsecondary educational institutions shall:
1036	1036	(A) Provide annually to the state board of regents the last known
1037	1037	contact information of each student who received a Kansas promise
1038	1038	scholarship until the requirements of the program and scholarship
1039	1039	agreement are complete; and
1040	1040	(B) notify the state board of regents when a student who received a
1041	1041	Kansas promise scholarship:
1042	1042	(i) Completes the program of study for which the student received the
1043	1043	scholarship or has exhausted scholarship benefits; and
1044	1044	(ii) exceeds the 36-month program completion requirement provided
1045	1045	in this section. This requirement shall apply to any Kansas promise
1046	1046	scholarship awarded on or after July 1, 2021.
1047	1047	(6) For any Kansas promise scholarship awarded on or after July 1,
1048	1048	2021, eligible postsecondary educational institutions shall not be
1049	1049	considered a contractor of the state nor shall such institutions be required
1050	1050	to participate in tracking, collecting or recouping any funds required to be
1051	1051	repaid by a student who fails to satisfy the requirements of a Kansas
1052	1052	promise scholarship agreement pursuant to this section.
1053	1053	(c) Any requirement of a Kansas promise scholarship agreement
1054	1054	entered into pursuant to this section may be postponed for good cause in
1055	1055	accordance with rules and regulations of the state board of regents.
1056	1056	(d) A scholarship recipient satisfies the requirements of the Kansas
1057	1057	promise scholarship program if such recipient:
1058	1058	(1) Completes the requirements of the scholarship agreement;
1059	1059	(2) commences service as a military servicemember after receiving a
1060	1060	Kansas promise scholarship;
1061	1061	(3) fails to satisfy the requirements after making the best possible
1062	1062	effort to do so as determined by the state board of regents;
1063	1063	(4) is unable to obtain employment or continue in employment after
1064	1064	making the best possible effort to do so; or
1065	1065	(5) is unable to satisfy the requirements due to disability or death of
1066	1066	the scholarship recipient.
1067	1067	Sec. 15. K.S.A. 2023 Supp. 74-32,286 is hereby amended to read as
1068	1068	follows: 74-32,286. (a) As a condition to receiving a grant under this act,
1069	1069	an eligible student shall enter into an agreement with the state board of
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1112	1112	43 HB 2644 14
1113	1113	regents. The eligible postsecondary educational institution that awarded
1114	1114	such grant. Such eligible postsecondary educational institution shall
1115	1115	counsel each eligible student on the requirements and conditions of the
1116	1116	agreement. Such agreement shall require any student who receives a grant
1117	1117	award to:
1118	1118	(1) Enroll as a full-time or part-time student at the eligible
1119	1119	postsecondary educational institution that made the grant award and
1120	1120	engage in and complete the adult learner grant eligible program;
1121	1121	(2) within six months after graduation from the adult learner grant
1122	1122	eligible program:
1123	1123	(A) Reside and commence work in the state of Kansas for at least two
1124	1124	consecutive years following completion of such program. A scholarship
1125	1125	recipient may use a form W-2 wage and tax statement showing Kansas
1126	1126	withholding or estimated income tax to the state of Kansas as proof of
1127	1127	work in Kansas; or
1128	1128	(B) enroll as a full-time or part-time student in any public or private
1129	1129	postsecondary educational institution with its primary location in Kansas
1130	1130	and upon graduation or failure to re-enroll, reside in and commence work
1131	1131	in Kansas for at least two consecutive years following the completion of
1132	1132	such program;
1133	1133	(3) maintain records and make reports to the state board of regents on
1134	1134	such forms and in such manner as required by the state board of regents to
1135	1135	document the satisfaction of the requirements of this act; and
1136	1136	(4) upon failure to satisfy the requirements of an agreement entered
1137	1137	into pursuant to this section, repay the amount of the grant award the
1138	1138	student received under the program as provided in subsection (b) to the
1139	1139	state board of regents.
1140	1140	(b) (1) Except as provided in subsection (c), if any student who
1141	1141	receives a grant award fails to satisfy the requirements of the agreement
1142	1142	entered into pursuant to this section, such student shall pay an amount
1143	1143	equal to the total amount of money received by such student pursuant to
1144	1144	such agreement plus accrued interest at a rate equivalent to the interest rate
1145	1145	applicable to loans made under the federal PLUS program at the time such
1146	1146	student's first course funded by a grant award began. Interest shall begin
1147	1147	accruing on the date the student is determined to be out of compliance with
1148	1148	the agreement from the accrual date as determined under section 1, and
1149	1149	amendments thereto, and at the rate prescribed in section 1, and
1150	1150	amendments thereto. Monthly installment payments of such amounts may
1151	1151	be made in accordance with rules and regulations of the state board of
1152	1152	regents. Such installment payments shall begin six months after the date of
1153	1153	the action or circumstances that cause such student to fail to satisfy the
1154	1154	requirements of the agreement, as determined by the state board of regents
1155	1155	upon the circumstances of each individual case. All moneys received
1156	1156	1
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1197	1197	42
1198	1198	43 HB 2644 15
1199	1199	pursuant to this subsection shall be remitted to the state treasurer in
1200	1200	accordance with the provisions of K.S.A. 75-4215, and amendments
1201	1201	thereto. Upon receipt of each such remittance, the state treasurer shall
1202	1202	deposit the entire amount in the state treasury to the credit of the Kansas
1203	1203	adult learner grant program fund.
1204	1204	(2) The state board of regents shall be the sole entity responsible for
1205	1205	collecting or recouping any grant moneys required to be repaid by a
1206	1206	student who fails to satisfy the requirements of an agreement entered into
1207	1207	pursuant to this section.
1208	1208	(3) The state board of regents is authorized to turn any repayment
1209	1209	account arising under this act to a designated loan servicer or collection
1210	1210	agency to collect on the state board's behalf. The state's involvement shall
1211	1211	only be to receive payments from the loan servicer or collection agency at
1212	1212	the interest rate prescribed under this subsection in section 1, and
1213	1213	amendments thereto.
1214	1214	(4) Eligible postsecondary educational institutions and each state
1215	1215	agency are authorized to provide academic, employment, residency and
1216	1216	contact information regarding students who received a grant award to the
1217	1217	state board of regents for the purposes of:
1218	1218	(A) Determining whether or not a student satisfied the requirements
1219	1219	of this act and the agreement entered into pursuant to this section; and
1220	1220	(B) aiding in the collection or recoupment of any funds required to be
1221	1221	repaid pursuant to this section.
1222	1222	(5) Eligible postsecondary educational institutions shall:
1223	1223	(A) Provide annually to the state board of regents the last known
1224	1224	contact information of each student who received a grant award until the
1225	1225	requirements of the program and the agreement are complete; and
1226	1226	(B) notify the state board of regents when a student who received a
1227	1227	grant award completes the program of study for which the student received
1228	1228	the grant or has exhausted the benefits available under this act.
1229	1229	(6) Eligible postsecondary educational institutions shall not be
1230	1230	considered a contractor of the state nor shall such institutions be required
1231	1231	to participate in tracking, collecting or recouping any moneys required to
1232	1232	be repaid by a student who fails to satisfy the requirements of an
1233	1233	agreement entered into pursuant to this section.
1234	1234	(c) Any requirement of an agreement entered into pursuant to this
1235	1235	section may be postponed for good cause in accordance with rules and
1236	1236	regulations of the state board of regents.
1237	1237	(d) A scholarship recipient satisfies the requirements of the adult
1238	1238	learner grant program if such recipient:
1239	1239	(1) Completes the requirements of the agreement entered into
1240	1240	pursuant to this section;
1241	1241	(2) commences service as a military servicemember after receiving a
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1282	1282	41
1283	1283	42
1284	1284	43 HB 2644 16
1285	1285	grant award;
1286	1286	(3) fails to satisfy the requirements after making the best possible
1287	1287	effort to do so as determined by the state board of regents;
1288	1288	(4) is unable to obtain employment or continue in employment after
1289	1289	making the best possible effort to do so; or
1290	1290	(5) is unable to satisfy the requirements due to disability or death of
1291	1291	the grant recipient.
1292	1292	Sec. 16. K.S.A. 74-3260, 74-3267, 74-3272, 74-3295, 74-32,104, 74-
1293	1293	32,116, 74-32,135, 74-32,153, 74-32,154 and 74-32,223 and K.S.A. 2023
1294	1294	Supp. 74-32,276 and 74-32,286 are hereby repealed.
1295	1295	Sec. 17. This act shall take effect and be in force from and after its
1296	1296	publication in the statute book.
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