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Kansas House Bill HB2645

Kansas 2023-2024 Regular Session

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11 Session of 2024
22 HOUSE BILL No. 2645
33 By Committee on Education
44 Requested by Fred Patton on behalf of the State Board of Regents
55 1-31
66 AN ACT concerning postsecondary education; relating to the nursing
77 service scholarship program; removing limits on the amount of
88 scholarship awards and the number of scholarships; removing the
99 requirement to obtain a sponsor; modifying the terms and conditions
1010 for interest accrual on repayment obligations; abolishing the nursing
1111 service scholarship review committee; amending K.S.A. 74-3292, 74-
1212 3293, 74-3294, 74-3295, 74-3296, 74-3297 and 74-3298 and repealing
1313 the existing sections; also repealing K.S.A. 74-3299.
1414 Be it enacted by the Legislature of the State of Kansas:
1515 Section 1. K.S.A. 74-3292 is hereby amended to read as follows: 74-
1616 3292. As used in this act:
1717 (a) "Committee" means the nursing service scholarship review
1818 committee established under K.S.A. 74-3299, and amendments thereto.
1919 (b) "Executive officer" means the chief executive officer of the state
2020 board of regents appointed under K.S.A. 74-3203a, and amendments
2121 thereto.
2222 (c) "Mental health or treatment facility" means:
2323 (1) Any private treatment facility as such term is defined in K.S.A.
2424 59-29b46, and amendments thereto;
2525 (2) any public treatment facility as such term is defined in K.S.A. 59-
2626 29b46, and amendments thereto;
2727 (3) any community mental health center organized pursuant to the
2828 provisions of K.S.A. 19-4001 through 19-4015, and amendments thereto,
2929 and licensed pursuant to K.S.A. 39-2001 et seq., and amendments thereto;
3030 (4) any mental health clinic organized pursuant to the provisions of
3131 K.S.A. 65-211 through 65-215, and amendments thereto, and licensed
3232 pursuant to K.S.A. 39-2001 et seq., and amendments thereto;
3333 (5) any psychiatric hospital, psychiatric residential treatment facility
3434 or residential care facility as such terms are defined in K.S.A. 39-2002,
3535 and amendments thereto;
3636 (6) any hospital as defined in K.S.A. 65-425, and amendments
3737 thereto, provided: (A) The hospital has a psychiatric unit; and (B) the
3838 scholarship recipient is required to fulfill the nursing service scholarship's
3939 employment obligations as an employee in the psychiatric unit of the
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7575 hospital; or
7676 (7) Osawatomie state hospital, Rainbow mental health facility, Larned
7777 state hospital, Parsons state hospital and training center or the Kansas
7878 neurological institute.
7979 (d) "Rural area" means any county of this state other than Douglas,
8080 Johnson, Sedgwick, Shawnee and Wyandotte counties.
8181 (e)(b) "School of nursing" means a school within the state of Kansas
8282 which that is approved by the state board of nursing to grant an associate
8383 degree or a baccalaureate degree in professional nursing or a certificate of
8484 completion in practical nursing and is:
8585 (1) Under the control and supervision of the state board of regents;
8686 (2) a municipal university; or
8787 (3) a not-for-profit independent institution of higher education that
8888 has its main campus or principal place of operation in Kansas, maintains
8989 open enrollment as such term is defined in K.S.A. 74-32,120, and
9090 amendments thereto, and is operated independently and not controlled or
9191 administered by the state or any agency or subdivision thereof.
9292 (f) "Sponsor" means any adult care home licensed under the adult
9393 care home licensure act, any medical care facility licensed under K.S.A.
9494 65-425 et seq., and amendments thereto, any home health agency licensed
9595 under K.S.A. 65-5101 et seq., and amendments thereto, any local health
9696 department as defined in K.S.A. 65-241, and amendments thereto, any
9797 mental health or treatment facility and any state agency which employs
9898 licensed practical nurses or licensed professional nurses.
9999 Sec. 2. K.S.A. 74-3293 is hereby amended to read as follows: 74-
100100 3293. (a) There is hereby established the nursing service scholarship
101101 program. A scholarship may be awarded under the nursing service
102102 scholarship program to any qualified nursing student enrolled in or
103103 admitted to a school of nursing in a course of instruction leading to
104104 licensure as a licensed professional nurse or licensed practical nurse. A
105105 nursing student shall not be required to be a resident of Kansas to qualify
106106 for a scholarship under the nursing service scholarship program. The
107107 number of new scholarships awarded under the nursing service scholarship
108108 program in each year shall not exceed 250. Of this number, except as
109109 otherwise provided in this section, 100 scholarships shall be awarded to
110110 nursing students whose sponsors are located in rural areas and who are
111111 enrolled in a course of instruction leading to licensure as a registered
112112 professional nurse, 50 scholarships shall be awarded to nursing students
113113 enrolled in a course of instruction leading to licensure as a licensed
114114 practical nurse and the remaining 100 scholarships shall be awarded to any
115115 nursing students who have a sponsor and who are enrolled in a course of
116116 instruction leading to licensure as a registered professional nurse. If all
117117 scholarships authorized to be awarded under this section to nursing
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161161 students whose sponsors are located in rural areas have not been awarded
162162 by a date established by the state board of regents, the scholarships which
163163 have not been awarded by that date may be awarded to nursing students
164164 who have a sponsor and who are otherwise qualified to be awarded a
165165 scholarship under the nursing service scholarship program. The
166166 determination of the individuals qualified for such scholarships shall be
167167 made by the executive officer after seeking advice from the committee.
168168 Within each scholarship category prescribed by this subsection,
169169 Scholarships shall be awarded on a priority basis to qualified applicants:
170170 (1) Whose sponsor is a mental health or treatment facility; and (2) who
171171 have the greatest financial need for such scholarships. To the extent
172172 practicable and consistent with the other provisions of this section,
173173 consideration shall be given to minority applicants.
174174 (b) Scholarships awarded under the nursing service scholarship
175175 program shall be awarded for the length of the course of instruction
176176 leading to licensure as a licensed professional nurse or licensure as a
177177 licensed practical nurse which the student is enrolled in or admitted to
178178 unless otherwise terminated before the expiration of such period of time.
179179 Such scholarships shall provide to a nursing student:
180180 (1) If the nursing student is enrolled in a school of nursing operated
181181 by a state educational institution, an amount not to exceed 70% of the in-
182182 state tuition cost of attendance for an academic year at the school of
183183 nursing in which the nursing student is enrolled; or
184184 (2) if the nursing student is enrolled in a school of nursing not
185185 operated by a state educational institution, the lesser of: (A) An amount not
186186 to exceed 70% of the in-state tuition cost of attendance for a year at the
187187 school of nursing in which the nursing student is enrolled; or (B) an
188188 amount not to exceed 70% of the average amount of the in-state tuition
189189 cost of attendance for a year at the schools of nursing operated by the state
190190 educational institutions.
191191 (c) The amount of each scholarship shall be established annually by
192192 the executive officer and shall be financed equally by the sponsor of the
193193 nursing student and by the state of Kansas except if:
194194 (1) The sponsor is located in a rural area or is a health care facility
195195 which has less than 100 beds, and is not a mental health or treatment
196196 facility pursuant to K.S.A. 74-3292(c)(1), (c)(5) or (c)(6), and amendments
197197 thereto, the total amount of the scholarship financed by such sponsor shall
198198 not exceed $1,000 and the balance of such amount shall be paid by the
199199 state of Kansas; or
200200 (2) the sponsor is a mental health or treatment facility pursuant to
201201 K.S.A. 74-3292(c)(2), (c)(3), (c)(4) or (c)(7), and amendments thereto, the
202202 amount of the scholarship shall be paid by the state and such sponsor shall
203203 not finance any amount of the scholarship.
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247247 Sec. 3. K.S.A. 74-3294 is hereby amended to read as follows: 74-
248248 3294. (a) An applicant for a scholarship under the nursing service
249249 scholarship program shall provide to the executive officer, on forms
250250 supplied by the executive officer, the following information:
251251 (1) The name and address of the applicant;
252252 (2) the name and address of the school of nursing in which the
253253 applicant is enrolled or to which the applicant has been admitted; and
254254 (3) the name and address of the sponsor of the applicant and a
255255 verified copy of the agreement entered into by the applicant and the
256256 sponsor in accordance with the provisions of the nursing service
257257 scholarship program; and
258258 (4) any additional information which that may be required by the
259259 executive officer.
260260 (b) As a condition to awarding a scholarship under the nursing
261261 service scholarship program, the executive officer and the applicant for a
262262 scholarship shall enter into an agreement which that shall require that the
263263 scholarship recipient:
264264 (1) Complete the required course of instruction and, within six
265265 months after completion, attain licensure with the Kansas state board of
266266 nursing as a licensed professional nurse or a licensed practical nurse;
267267 (2) complete the free application for federal student aid for each
268268 academic year for which scholarship funds are awarded under the
269269 agreement;
270270 (3) within six months after attaining licensure, engage in the full-time
271271 practice of nursing, or the equivalent to full-time practice, in the
272272 employment of the sponsor in accordance with the agreement entered into
273273 by the scholarship recipient and the sponsor Kansas and continue such
274274 full-time practice, or the equivalent to full-time practice, for the total
275275 amount of time required under the agreement, which shall be for a period
276276 of not less than the length of the course of instruction for which
277277 scholarship assistance was provided, or engage in the part-time practice of
278278 nursing in the employment of the sponsor in accordance with the
279279 agreement entered into by the scholarship recipient and the sponsor
280280 Kansas and continue such part-time practice for the total amount of time
281281 required under the agreement, which shall be for a period of time that is
282282 equivalent to full time, as determined by the state board of regents,
283283 multiplied by the length of the course of instruction for which scholarship
284284 assistance was provided;
285285 (3)(4) commence the full-time practice of nursing, or the equivalent
286286 to full-time practice, or the part-time practice of nursing, within six months
287287 after registration in accordance with the agreement entered into by the
288288 scholarship recipient and the sponsor, continue such practice for the total
289289 amount of time required under the agreement, and comply with such other
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333333 terms and conditions as may be specified by such agreement;
334334 (4)(5) maintain records and make reports to the executive officer as
335335 may be required by the executive officer to document the satisfaction of
336336 the obligations under the nursing service scholarship program and under
337337 agreements entered into with the sponsor pursuant thereto; and
338338 (5)(6) upon failure to satisfy an agreement to engage in the full-time
339339 practice of nursing, or the equivalent to full-time practice, or the part-time
340340 practice of nursing, for the required period of time under any such
341341 agreement, the requirements of the agreement, to repay to the state and to
342342 the sponsor the amounts as provided in K.S.A. 74-3295, and amendments
343343 thereto.
344344 (c) Upon the awarding of a scholarship under the nursing service
345345 scholarship program, the sponsor shall pay to the executive officer the
346346 amount of such scholarship to be financed by the sponsor, if any. Each
347347 such amount shall be deposited in the nursing service scholarship program
348348 fund in accordance with K.S.A. 74-3298, and amendments thereto.
349349 (d) The sponsorship by a scholarship recipient may be transferred
350350 from one sponsor to another upon the agreement of the original sponsor,
351351 the scholarship recipient and the sponsor to which the sponsorship is to be
352352 transferred. The terms, conditions and obligations of the transferred
353353 agreement shall be substantially similar to the terms, conditions and
354354 obligations of the original agreement. No sponsorship shall be transferred
355355 unless the agreement transferring such sponsorship provides for service in
356356 a rural area or in a mental health or treatment facility and is approved by
357357 the executive officer as consistent with the provisions of the nursing
358358 service scholarship program and as consistent with any rules and
359359 regulations relating thereto adopted by the state board of regents in
360360 accordance with the provisions of K.S.A. 74-3297, and amendments
361361 thereto.
362362 Sec. 4. K.S.A. 74-3295 is hereby amended to read as follows: 74-
363363 3295. (a) Except as provided in K.S.A. 74-3296, and amendments thereto,
364364 upon the failure of any person to satisfy the obligation under any
365365 agreement entered into pursuant to the nursing service scholarship
366366 program, such person shall pay to the executive officer an amount equal to
367367 the total amount of money received by such person pursuant to such
368368 agreement which that was financed by the state of Kansas plus accrued
369369 interest at a rate which is equivalent to the interest rate applicable to loans
370370 made under the federal PLUS program at the time such person first entered
371371 into an agreement plus five percentage points and shall pay to the sponsor
372372 an amount equal to the total amount of money received by such person
373373 pursuant to such agreement which was financed by the sponsor plus
374374 accrued interest at a rate which is equivalent to the interest rate applicable
375375 to loans made under the federal PLUS program at the time such person
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419419 first entered into an agreement plus five percentage points of 5% per
420420 annum. Interest shall begin to accrue on the date of the action or
421421 circumstances that cause such person to fail to satisfy the obligations of
422422 such agreement, as determined by the executive officer based upon the
423423 circumstances of each individual case. Installment payments of any such
424424 amounts may be made in accordance with the provisions of agreements
425425 entered into by the scholarship recipient and the sponsor or if no such
426426 provisions exist in such agreements, in accordance with rules and
427427 regulations of the state board of regents, except that. Such installment
428428 payments shall commence six months after the date of the action or
429429 circumstances that cause the failure of the person to satisfy the obligations
430430 of such agreements, as determined by the executive officer based upon the
431431 circumstances of each individual case on which interest begins to accrue.
432432 Amounts paid under this section to the executive officer shall be deposited
433433 in the nursing service scholarship repayment fund in accordance with
434434 K.S.A. 74-3298, and amendments thereto.
435435 (b) The state board of regents is authorized to turn any repayment
436436 account arising under the nursing service scholarship program over to a
437437 designated loan servicer or collection agency, the state not being involved
438438 other than to receive payments from the loan servicer or collection agency
439439 at the interest rate prescribed under this section.
440440 Sec. 5. K.S.A. 74-3296 is hereby amended to read as follows: 74-
441441 3296. (a) (1) Except as otherwise specified in the agreement with the
442442 sponsor, An obligation under any agreement entered into under the nursing
443443 student scholarship program shall be postponed:
444444 (1)(A) During any required period of active military service;
445445 (2)(B) during any period of service as a part of volunteers in service
446446 to America (VISTA);
447447 (3)(C) during any period of service in the peace corps;
448448 (4)(D) during any period of service commitment to the United States
449449 public health service;
450450 (5)(E) during any period of religious missionary work conducted by
451451 an organization exempt from tax under section 501(c)(3) of the federal
452452 internal revenue code as in effect on December 31, 2000 July 1, 2024;
453453 (6)(F) during any period of time the person obligated is unable
454454 because of temporary medical disability to practice nursing;
455455 (7)(G) during any period of time the person obligated is enrolled and
456456 actively engaged on a full-time basis in a course of study leading to a
457457 degree in the field of nursing which that is higher than that attained
458458 formerly by the person obligated;
459459 (8)(H) during any period of time that the person obligated is on job-
460460 protected leave under the federal family and medical leave act of 1993; or
461461 (9)(I) during any period of time the state board of regents determines
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505505 that the person obligated is unable because of special circumstances to
506506 practice nursing.
507507 (2) Except for clauses (6), (8) and (9) paragraphs (1)(F), (1)(H) and
508508 (1)(I), an obligation under any agreement entered into as provided in the
509509 nursing service scholarship program shall not be postponed more than five
510510 years from the time the obligation was to have been commenced under any
511511 such agreement.
512512 (3) An obligation under any agreement entered into as provided in the
513513 nursing service scholarship program shall be postponed under clause (6)
514514 paragraph (1)(F) during the period of time the medical disability exists.
515515 (4) An obligation under any agreement entered into as provided in the
516516 nursing service scholarship program shall be postponed under clause (8)
517517 paragraph (1)(H) during the period of time the person obligated remains
518518 on FMLA leave.
519519 (5) An obligation under any agreement entered into as provided in the
520520 nursing service scholarship program shall be postponed under clause (9)
521521 paragraph (1)(I) during the period of time the state board of regents
522522 determines that the special circumstances exist.
523523 (6) The state board of regents shall adopt rules and regulations
524524 prescribing criteria or guidelines for determination of the existence of
525525 special circumstances causing an inability to satisfy an obligation under
526526 any agreement entered into as provided in the nursing service scholarship
527527 program, and shall determine the documentation required to prove the
528528 existence of such circumstances. Except for clauses (1), (6), (8) and (9), an
529529 obligation under any agreement entered into as provided in the nursing
530530 service scholarship program shall not be postponed unless the
531531 postponement is approved by the sponsor or is otherwise provided for in
532532 the agreement with the sponsor.
533533 (b) An obligation under any agreement entered into as provided in the
534534 nursing service scholarship program shall be satisfied:
535535 (1) If the obligation has been completed in accordance with the
536536 agreement;
537537 (2) if the person obligated dies;
538538 (3) if, because of permanent physical disability, the person obligated
539539 is unable to satisfy the obligation;
540540 (4) if the person obligated fails to satisfy the requirements for
541541 graduation from the school of nursing after making the best effort possible
542542 to do so; and
543543 (5) if the person obligated fails to satisfy all requirements for a
544544 permanent license to practice nursing in Kansas or has been denied a
545545 license after applying for a license and making the best effort possible to
546546 obtain such license; (6) if, because of bankruptcy, loss of licensure or
547547 certification or other failure in the operations of the sponsor, the sponsor
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591591 cannot or will not employ the person obligated; or (7) if the sponsor
592592 releases the person obligated from employment with the sponsor and the
593593 person obligated otherwise completes the terms, conditions and obligations
594594 of the agreement by engaging in the practice of nursing in Kansas.
595595 Sec. 6. K.S.A. 74-3297 is hereby amended to read as follows: 74-
596596 3297. (a) The state board of regents, after consultation with the committee,
597597 may adopt rules and regulations establishing minimum terms, conditions
598598 and obligations which shall be incorporated into the provisions of any
599599 agreement entered into between a sponsor and the recipient of a
600600 scholarship under the nursing service scholarship program. The terms,
601601 conditions and obligations shall be consistent with the provisions of law
602602 relating to the nursing service scholarship program. The terms, conditions
603603 and obligations so established shall include, but not be limited to, the
604604 terms of eligibility for financial assistance under the nursing service
605605 scholarship program, the amount of financial assistance to be offered, the
606606 length of employment with the sponsor required as a condition to the
607607 receipt of such financial assistance, the circumstances under which the
608608 employment obligation may be discharged or forgiven, the amount of
609609 money required to be repaid because of failure to satisfy the obligations
610610 under an agreement and the method of repayment and such other
611611 additional provisions as may be necessary to carry out the provisions of
612612 the nursing service scholarship program. The state board of regents, after
613613 consultation with the committee, shall adopt rules and regulations as
614614 necessary to administer the nursing service scholarship program.
615615 (b) The state board of regents shall provide an annual written report
616616 on the nursing service scholarship program to the senate and house
617617 committees on education.
618618 Sec. 7. K.S.A. 74-3298 is hereby amended to read as follows: 74-
619619 3298. (a) There is hereby created in the state treasury the nursing service
620620 scholarship program fund. The executive officer shall remit all moneys
621621 received from sponsors, which are paid under K.S.A. 74-3294, and
622622 amendments thereto, pursuant to scholarship awards, or from a school of
623623 nursing, which that are paid because of nonattendance or discontinued
624624 attendance by scholarship recipients, to the state treasurer in accordance
625625 with the provisions of K.S.A. 75-4215, and amendments thereto. Upon
626626 receipt of each such remittance, the state treasurer shall deposit the entire
627627 amount in the state treasury to the credit of the nursing service scholarship
628628 program fund. All expenditures from the nursing service scholarship
629629 program fund shall be for scholarships awarded under the nursing service
630630 scholarship program or refunds to sponsors and shall be made in
631631 accordance with appropriation acts upon warrants of the director of
632632 accounts and reports issued pursuant to vouchers approved by the
633633 executive officer or by a person designated by the executive officer.
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677677 (b) The nursing student scholarship discontinued attendance fund is
678678 hereby abolished. On the effective date of this act, the director of accounts
679679 and reports shall transfer all moneys remaining in the nursing student
680680 scholarship discontinued attendance fund to the nursing service
681681 scholarship program fund.
682682 (c) There is hereby created in the state treasury the nursing service
683683 scholarship repayment fund. The executive officer shall remit all moneys
684684 received for amounts paid under K.S.A. 74-3295, and amendments thereto,
685685 to the state treasurer in accordance with the provisions of K.S.A. 75-4215,
686686 and amendments thereto. Upon receipt of each such remittance the state
687687 treasurer shall deposit the entire amount in the state treasury to the credit
688688 of the nursing service scholarship repayment fund. All expenditures from
689689 the nursing service scholarship repayment fund shall be for scholarships
690690 awarded under the nursing service scholarship program and shall be made
691691 in accordance with appropriation acts upon warrants of the director of
692692 accounts and reports issued pursuant to vouchers approved by the
693693 executive officer or by a person designated by the executive officer.
694694 Sec. 8. K.S.A. 74-3292, 74-3293, 74-3294, 74-3295, 74-3296, 74-
695695 3297, 74-3298 and 74-3299 are hereby repealed.
696696 Sec. 9. This act shall take effect and be in force from and after its
697697 publication in the Kansas register.
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