Report Title:

Rural Nursing Program

Description:

Establishes the Rural Nursing Program within the University of Hawaii to provide financial assistance to students who commit to serving in rural areas of the state following completion of nursing degree programs.

HOUSE OF REPRESENTATIVES

H.B. NO.

2162

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to rural health care.

 

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

SECTION 1. The legislature finds that Hawaii is experiencing a nursing shortage in a time when the increasing aging population demands quality nursing care. The legislature responded to this shortage with the enactment of Act 116, Session Laws of Hawaii 2005, which encourages nurses to enroll in a master or doctoral program to prepare them for careers in nursing education.

However, the legislature also finds that the rural areas of the state are particularly the hardest hit by the acute shortages of nurses and other health care professionals. In addition, rural areas experience a high turnover rate, an aging workforce population, and difficulty in recruitment and retention.

The legislature further finds that, currently, Hawaii has the following federal designations: five Medically Underserved Populations, one Medically Underserved Area, and six primary care Health Professional Shortage Areas. The legislature believes it is necessary to offer financial incentives to increase the number of students who will pursue degrees in nursing and commit to working in rural areas.

The purpose of this Act is to establish a program to encourage students to enroll in nursing programs that will prepare them for careers that will provide nursing service in rural areas.

SECTION 2. Chapter 304E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . rural nursing program

§304E- Definitions: As used in this part, unless the context otherwise requires:

"Department" means the University of Hawaii.

"Eligible expenses" means reasonable expenses associated with the costs of acquiring an education such as tuition, books, equipment, fees, room and board, and other expenses determined by the department.

"Eligible student" means a student who has been accepted into the training program and has declared an intention to serve in a rural area upon completion of the education or training program.

"Major medical hospital" refers to a facility containing more than fifty beds and licensed as a hospital by the department of health and accredited by the Joint Commission on Accreditation of Health Care Organizations.

"Nurse" shall have the same meaning as defined in section 457-2.

"Program" means the rural nursing program.

"Rural area" means any site located more than fifty miles from a major medical hospital.

"Rural nursing loan" means a loan that is forgiven in whole or in part if the recipient renders nursing services in a rural area.

"Training program" means education and training programs approved by the department for purposes of this chapter that lead to eligibility for a license as a licensed practical nurse, registered nurse, or advanced practice registered nurse.

§304E- Rural nursing program. (a) There is established a program to be known as the rural nursing program to be placed within the department.

(b) The department may provide a rural nursing loan within the program to eligible students. Awarding preference shall be given to Hawaii residents. Rural nursing loans shall be granted to cover eligible expenses.

(c) The department shall establish lists of approved courses of study for the eligible student to become a licensed nurse.

(d) To receive a rural nursing loan under this part, an eligible student shall:

    1. Have graduated from high school;
    2. Maintain domicile in Hawaii during the term of the rural nursing loan;
    3. Comply with any conditions placed on the rural nursing loan by the department; and
    4. Enter into a written contract with the department agreeing to:

(A) Satisfy all degree requirements and other requirements under this part;

(B) Begin required nursing service obligation in a rural area in this state within one year after completion of the training program and receipt of a nursing degree for a period of one year for each academic year the eligible student receives a rural nursing loan under this part, unless the department determines that there are extenuating circumstances; and

(C) Reimburse the State for all amounts received under this part and interest thereon, as determined by the department, if the student fails to comply with this subsection.

(e) An eligible student applying for the rural nursing loan shall apply to the department and include all information and documentation required by the department.

(f) Rural nursing loans awarded under the program shall be limited to funds appropriated for the purpose of awarding loans or funds otherwise matched by external entities.

§304E- Rural nursing loans. (a) The department shall award a rural nursing loan in an amount up to $5,000 per academic year to an eligible student enrolled full-time in the department's approved nursing course of study.

(b) The rural nursing loan shall be for the maximum number of years it takes to complete the approved course of study required for the nursing degree.

(c) The rural nursing loan, including interest, shall be forgiven on a year for year basis while the recipient is employed in a rural area; provided the recipient works a full calendar year for each year the loan is forgiven.

§304E- Program administration. (a) The department shall monitor and verify a student's fulfillment of all requirements for a rural nursing loan under this part.

(b) If a student does not comply with the requirements of the rural nursing loan, a default interest rate of       per cent shall be imposed and the department shall enforce repayment of all amounts received under this part and interest thereon. Enforcement shall include the use of all lawful collection procedures, including private collection agencies.

(c) Rural nursing loans received by a student under the program shall not be considered taxable income under chapter 235.

(d) Rural nursing loans received by a student under the program shall not be considered financial assistance or appropriations to the department.

(e) Any person who knowingly or intentionally procures, obtains, or aids another to procure or obtain a rural nursing loan under the program through fraudulent means shall be disqualified from participation in the program and shall be liable to the department to repay the loan and a penalty of twice the amount of the loan.

§304E- Annual report. The department shall submit an annual report to the governor and the legislature no later than twenty days prior to the convening of each regular session, to include information regarding the operation of the program, such as:

    1. The total number of students receiving rural nursing loans;

(2) The total amount of rural nursing loans awarded; and

(3) The total number of students who withdraw from the program."

SECTION 3. Chapter 304E, Hawaii Revised Statutes, is amended as follows:

1. By amending its title to read:

"NURSING [SCHOLARS PROGRAM] PROGRAMS"

2. By designating sections 304E-1 to 304E-5 as part I and inserting a title before section 304E-1 to read:

"PART I. NURSING SCHOLARS PROGRAM"

3. By amending section 304E-1, to read:

"[[]§304E-1[]] Definitions. As used in this [chapter,] part, unless the context otherwise requires:

"Approved course of study" means a course of study that leads to enrollment in a graduate nursing program approved by the state board of nursing or a course of study in a graduate nursing program approved by the state board of nursing.

"Approved educational institution" means a public post-secondary educational institution located in this State that has been accredited by a nationally recognized accrediting agency that is listed by the United States Secretary of Education.

"Department" means the University of Hawaii.

"Program" means the nursing scholars program established under this chapter.

"Student" means any individual domiciled in this State who attends or is about to attend a 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.

"Work requirement" means teaching at a school of nursing located in Hawaii after receiving a master's degree or doctoral degree in nursing."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2006.

INTRODUCED BY:

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