Report Title:

Nursing Teachers; Loan Forgiveness

 

Description:

Creates a nursing teacher loan forgiveness pilot program at the University of Hawaii.  Creates the nursing teacher loan forgiveness special fund.  (HB 2133 HD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

2133

TWENTY-FOURTH LEGISLATURE, 2008

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO NURSING.

 

 

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

 


     SECTION 1.  Chapter 304A, Hawaii Revised Statutes, is amended by adding a new subpart to part VII to be appropriately designated and to read as follows:

"    .  NURSING TEACHER LOAN FORGIVENESS PROGRAM

     §304A-    Definitions.  As used in this subpart, unless the context otherwise requires:

     "Program" means the nursing teacher loan forgiveness pilot program authorized under this subpart.

     "Qualified loan" means a student loan incurred while earning a master's degree in nursing or a doctoral degree in nursing or related field from a private or public institution of higher education located in this state.

     "Qualified position" means full-time employment by a private or public institution of higher education located in this state to teach classes required to earn a degree or certificate in nursing.

     "Student" means any individual domiciled in this state who attends or is about to attend a private or public post-secondary educational institution located in this state leading to a master's or doctoral degree in nursing and who intends to teach in a nursing program in Hawaii designed to prepare students for licensure as registered nurses.

     §304A-    Nursing teacher loan forgiveness program; establishment; administration; qualifications.  (a)  There is established a program to be known as the nursing teacher loan forgiveness program to be placed within the University of Hawaii for administrative purposes.  The program shall be funded by the nursing teacher loan forgiveness special fund created in part V.

     (b)  The University of Hawaii shall develop and maintain a nursing teacher loan forgiveness program for implementation beginning in the fall semester of the 2009-2010 academic year.  The program shall provide for payment of up to $20,000 for all or part of the principal of and interest on a qualified loan if the person is hired for a qualified position and stays in a qualified position for a period of not less than five consecutive academic years after the person has earned an advanced degree in nursing.  Repayment of loans through the program may be made using moneys in the nursing teacher loan forgiveness special fund.

     (c)  A nursing teacher shall meet the following conditions to qualify for the program:

     (1)  Earn a master's or doctoral degree in nursing;

     (2)  Be liable for any outstanding balance on a qualified loan;

     (3)  Agree to teach in a qualified position for a period of not less than five consecutive academic years after completion of the advanced degree;

     (4)  Teach in a qualified position for not less than five consecutive academic years after completion of the advanced degree; and

     (5)  Agree that, if the nursing teacher leaves the qualified position prior to teaching for five consecutive academic years, the nursing teacher shall be liable to repay the amount of the qualified loan paid or forgiven through the program plus interest; provided that if the nursing teacher leaves the qualified position involuntarily, the nursing teacher shall not be liable to repay the amount paid or forgiven, but shall be responsible for paying the amount remaining due on a qualified loan.

     (d)  The program shall provide that, following each of the five consecutive academic years that the nursing teacher is employed in a qualified position, the lesser of one-fifth or $4,000 of the nursing teacher's qualified loan shall be paid or forgiven.

     §304A-    Annual report.  (a)  The University of Hawaii shall publish a report every year commencing September 1, 2009.  The report shall include information regarding the operation of the program, including:

     (1)  The total number of participants in the program;

     (2)  The amount of funds applied toward loan repayment or forgiveness; and

     (3)  The source of those funds.

     (b)  The annual report shall be submitted to the governor and the legislature no later than twenty days prior to the convening of each regular session."

     SECTION 2.  Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to subpart C of part V to be appropriately designated and to read as follows:

     "§304A-    Nursing teacher loan forgiveness special fund.  There is created in the state treasury the nursing teacher loan forgiveness special fund.  The fund shall consist of all moneys appropriated to the fund by the legislature and any gifts, grants, and donations received in conjunction with the administration of the nursing teacher loan forgiveness program established in part VII.  Moneys deposited in the special fund shall be expended for the administration of the nursing teacher loan forgiveness program."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $1 or so much thereof as may be necessary for fiscal year 2008-2009 to be deposited into the nursing teacher loan forgiveness special fund.

     SECTION 4.  There is appropriated out of the nursing teacher loan forgiveness special fund the sum of $1 or so much thereof as may be necessary for fiscal year 2008-2009 for the nursing teacher loan forgiveness program established by this Act.

     The sum appropriated shall be expended by the University of Hawaii for the purposes of this Act.

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2008.