00 SENATE BILL NO. 154 01 "An Act relating to a student loan repayment program for nurses, and amending the 02 duties of the Board of Nursing that relate to this program; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 FINDINGS; PURPOSE. (a) The legislature finds that a shortage of qualified nurses 08 exists in this state. 09 (b) The purpose of this Act is to establish the Alaska nurse recruitment loan 10 repayment program to provide financial incentives through the repayment, in whole or part, 11 by the state of education loans for nurses upon the nurse's completing a term of employment 12 as a nurse in the state. 13  * Sec. 2. AS 08.68.100(a) is amended by adding a new paragraph to read: 14 (10) establish standards and eligibility criteria for the Alaska nurse 01 recruitment loan repayment program under AS 14.43.530 - 14.43.590, including the 02 adoption of necessary regulations and determination of areas of the state that have a 03 shortage of nurses. 04  * Sec. 3. AS 14.42.030(b) is amended to read: 05 (b) The commission shall 06 (1) administer the financial aid and interstate education compact 07 programs under AS 14.43.091 - 14.43.920 and 14.43.990, and AS 14.44; 08 (2) administer the provisions of AS 14.48 concerning regulation of 09 postsecondary educational institutions; 10 (3) resolve disputes under a consortium or other cooperative agreement 11 between institutions of public and private higher education in the state; [AND] 12 (4) serve as the state agency required under 20 U.S.C. 1001 - 1155;  13 and  14 (5) perform duties assigned under AS 14.43.530 - 14.43.590  15 (Alaska nurse recruitment loan repayment program). 16  * Sec. 4. AS 14.42.040 is amended by adding a new subsection to read: 17 (c) The executive director of the commission shall administer the Alaska nurse 18 recruitment loan repayment program under AS 14.43.530 - 14.43.590 in accordance 19 with standards and eligibility criteria set by the Board of Nursing under AS 08.68.100. 20  * Sec. 5. AS 14.42.295(a) is amended to read: 21 (a) The board may elect to pay the state a return of contributed capital, or a 22 dividend, for each base fiscal year that the corporation's net income equals or exceeds 23 $2,000,000. The payment may not be less than 10 percent nor more than 35 percent, 24 as approved by the board, of the corporation's net income for the base fiscal year, and 25 is subject to the provisions of any applicable bond indentures of the corporation. If a 26 payment is authorized under this section, payment must be made available by the 27 corporation before the end of the fiscal year in which payment has been authorized. 28 The corporation shall notify the commissioner of revenue when the amount of the 29 payment authorized under this section is available for appropriation. The money  30 made available under this subsection may be appropriated for the Alaska nurse  31 recruitment loan repayment program under AS 14.43.530 - 14.43.590.  01  * Sec. 6. AS 14.43 is amended by adding new sections to read: 02 Article 9A. Alaska Nurse Recruitment Loan Repayment Program.  03 Sec. 14.43.530. Program established. (a) There is established the Alaska 04 nurse recruitment loan repayment program to provide financial incentives for qualified 05 nurses to work in this state through the repayment of education loans. 06 (b) The program is not a financial obligation of the corporation. 07 Sec. 14.43.540. Alaska nurse recruitment loan repayment program  08 account. (a) The Alaska nurse recruitment loan repayment program account is 09 created in the general fund. The account shall be used to provide financial awards for 10 the repayment of education loans under the program and to pay for the costs of 11 administering the program. 12 (b) The account includes money that the legislature appropriates from the 13 corporation's dividend to the state under AS 14.42.295 and the interest and earnings on 14 money that are appropriated to the account. If money available is inadequate to 15 finance the requests from eligible nurses under this program for a fiscal year, 16 additional money may be requested from the general fund and appropriated to the 17 account for the program. 18 Sec. 14.43.550. Administration. (a) The Alaska nurse recruitment loan 19 repayment program shall be administered by the executive director using 20 (1) the standards and eligibility criteria of the program established by 21 the Board of Nursing under AS 08.68.100 and the eligibility criteria established under 22 AS 14.43.560; and 23 (2) the financial management standards for proper administration of 24 the Alaska nurse recruitment loan repayment program account as established by the 25 commission. 26 (b) After consultation with the Board of Nursing, the commission may adopt 27 regulations to carry out its duties and the executive director's duties under the 28 program. 29 Sec. 14.43.560. Eligibility criteria. (a) In addition to program standards and 30 eligibility criteria established under AS 08.68.100, an applicant must meet the 31 following criteria: 01 (1) the applicant was hired as a nurse in this state on or after July 1, 02 2003; 03 (2) the applicant has the required license to practice as a nurse in this 04 state; 05 (3) the applicant shall agree to fulfill any requirement of the program; 06 (4) the applicant has outstanding education loans from a recognized 07 entity to be repaid under the program; 08 (5) if the applicant does not fulfill obligations under the program, the 09 applicant shall repay the money paid under this section and may not receive further 10 loan repayments under the program. 11 (b) The executive director shall distribute information regarding the program 12 (1) to hospitals in the state; and 13 (2) to others upon request. 14 Sec. 14.43.570. Conditions and limitations on loan payments. (a) The total 15 amount of financial awards for repayment of educational loans and interest on loans 16 may not exceed $10,000 in a lifetime for a nurse. The annual amount eligible to be 17 repaid under this section is equal to the following percentages of the total amount 18 received by the applicant plus interest, up to a total of 100 percent of the total amount 19 plus interest: 20 (1) one year employment in the state as a nurse, 20 percent; 21 (2) two years employment in the state as a nurse, an additional 20 22 percent; 23 (3) three years employment in the state as a nurse, an additional 20 24 percent; 25 (4) four years employment in the state as a nurse, an additional 20 26 percent; 27 (5) five years employment in the state as a nurse, an additional 20 28 percent. 29 (b) A financial award must be conditioned on the availability of money for the 30 program. The executive director shall monitor the outstanding financial awards made 31 under the program to ensure the adequacy of the balance of the account to meet 01 program needs. If the executive director finds that the balance of the account is 02 insufficient to pay for existing awards and incur additional obligations to new 03 applicants, the executive director shall advise the commission and the Board of 04 Nursing. Until the commission and the Board of Nursing determine the account is 05 sufficient to incur additional obligations, the executive director shall 06 (1) prorate the money available in the account among all existing 07 award recipients, except as required under (d) of this section; and 08 (2) suspend the acceptance of new applications and the processing of 09 pending applications under the program. 10 (c) The provisions of AS 14.43.920 apply to the repayment of a loan under the 11 program. 12 (d) An educational loan or interest on a loan is not eligible for repayment 13 under the program if the loan or interest is eligible for repayment under another 14 source, including another loan repayment or forgiveness program. 15 (e) If the executive director prorates money under (b)(1) of this section, a 16 priority shall be given to recipients who work in an area of the state or a specialty that 17 the Board of Nursing determines has a shortage of nurses. 18 Sec. 14.43.590. Definitions. In AS 14.43.530 - 14.43.590, unless the context 19 otherwise requires, 20 (1) "account" means the Alaska nurse recruitment loan repayment 21 program account established in AS 14.43.540; 22 (2) "executive director" means the executive director of the 23 commission; 24 (3) "nurse" means a person licensed as a registered or practical nurse 25 under AS 08.68.170; 26 (4) "program" means the Alaska nurse recruitment loan repayment 27 program. 28  * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 TRANSITION: REGULATIONS. Notwithstanding sec. 9 of this Act, the state Board 31 of Nursing and the Alaska Commission on Postsecondary Education may immediately 01 proceed to adopt regulations necessary to implement their respective duties under this Act. 02 The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before 03 July 1, 2003. 04  * Sec. 8. Section 7 of this Act takes effect immediately under AS 01.10.070(c) 05  * Sec. 9. Except as provided in sec. 8 of this Act, this Act takes effect July 1, 2003.