Legislature(2003 - 2004)
05/14/2003 08:50 AM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 211
An Act relating to a student loan repayment program for
nurses, and amending the duties of the Board of Nursing
that relate to this program and providing for an
effective date.
REPRESENTATIVE PEGGY WILSON explained that Alaska and the
nation are experiencing a severe shortage of nurses. HB 211
would establish the Alaska Nurse Recruitment Loan Repayment
Program, which could help to change that. The program would
offer up to $2,000 per year, not to exceed $10,000 total for
nurses to repay nursing loans. Hopefully the incentive will
attract new nurses to the State and encourage Alaskans to
pursue nursing vocations here in Alaska.
In 2002, the Alaska Colleagues in Caring, in collaboration
with the Alaska Hospital and Nursing Home Association
(AHNHA), surveyed facilities in Alaska regarding nursing
workforce needs. Results showed that vacancy rates for
Registered Nurses (RN) had increased from 5.7% in 2000 to
11.5% in 2002, with increasing vacancy rates projected into
the future. Facilities in western and northern Alaska
reported a vacancy rate of over 20% and according to
information from other sources, the vacancy rate in some
remote areas of Alaska is as high as 35 percent.
Representative Wilson stated that to qualify for loan
reimbursement, the individual must be hired as a nurse in
Alaska on or after July 1, 2003, be licensed to practice as
a nurse in Alaska, work as a nurse in the State throughout
the loan repayment period, and have outstanding educational
loans from a recognized lending institution. Additional
eligibility criteria and guidelines for the loan program
would be set in regulations adopted by the Board of Nursing,
in consultation with the Alaska Commission on Postsecondary
Education. That could include guidelines on establishing
priorities for participation in the loan repayment program
if funding for the program was not adequate to meet the
need. The guidelines may include determinations based on
areas of the State and nursing specialties affected by
shortages.
Representative Wilson commented that funding for the program
might be appropriated from the Student Loan Corporation
dividend (the return of contributed capital authorized in AS
14.42.295(a)) or alternate State, federal, and/or other
sources. The executive director of the Alaska Commission on
Postsecondary Education would administer the program.
Vice Chair Meyer noted that outside testimony had been
closed on HB 211 and if there were questions, the Department
could respond.
Representative Hawker understood that the legislation would
provide a fund to repay qualifying educational loans for
students entering the nursing program. He asked if there
were any "sidebars" regarding what education loans might be
paid. Representative Wilson replied that they would have to
be nursing loans for classes to become a nurse. There is a
criterion established. The guidelines would be determined
by the Board of Nursing in consultation with the Alaska
Commission on Postsecondary Education. If the funds are not
available, then who receives the loans would be limited to
the areas most critical need.
Representative Hawker asked if it would make any difference
at what institution the nurse received their degree.
Representative Wilson explained that the regulations are not
yet known and that the Board of Nursing and Alaska
Postsecondary would address those concerns.
DIANE BARRANS, EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION
COMMISSION, DEPARTMENT OF EDUCATION, advised that there are
no constraints on where the student goes, however, they
would have to be pursuing education in nursing. It would be
a loan to an individual to attend wherever they choose if it
were an accredited institution that leads to the nursing
credential.
Representative Hawker inquired if there was any incentive to
achieve their education in an Alaskan facility. Ms. Barrans
replied that language had not been specifically included
because of the University of Alaska's ability to compete on
a low cost basis with other institutions.
Representative Hawker inquired if there were an anticipated
number of people applying for the benefits under the bill.
Ms. Barrans responded that nurses in the program at the
University of Alaska would 100% qualify as long as they
remain in Alaska and practice in the State.
Representative Hawker noted the costs associated with the
program. He agreed with the overriding social need and
seriousness of the consideration, but questioned the fiscal
reimbursement estimate for education from the University of
Alaska.
TAPE HFC 03 - 91, Side A
Ms. Barrans replied that 25% would be an educated guess of
the number of nursing professionals that the University
currently has capacity for. In the current graduating year,
there may be 150 nurses. That number is progressively
increasing to 220 within the next three years. The numbers
reflect the capacity of Alaska to produce nurses.
Representative Berkowitz pointed out that one of the
critical components of the University's budget this year had
to do the expansion of the nursing program. He emphasized
that it is critical that the State should help subsidize the
nursing crisis. The State needs more nurses.
Representative Hawker pointed out that the fiscal note
indicates an escalation of costs in the future. He
questioned how the escalation had been determined and how
much of that would come from the University of Alaska. Ms.
Barrans expected that number to remain at the 25% level.
The fiscal note projects the number of new nurses entering
the program to be 459 the first year and to grow at a
slightly larger participation rate during the next four
years. To the extent that the University can produce some
portion of that, in 2004, perhaps 200 nurses would graduate
from the program. The maximum capacity would be 220 per
year.
Representative Berkowitz voiced appreciation for the work
done on the proposed legislation.
Ms. Barrans advised that the funding for the fiscal note
would come from general funds. Those funds would be
earmarked on an annual basis and appropriated to that fund.
Finances for FY04 have been otherwise appropriated through
the Capital budget. She reiterated that for at least the
first year, the fiscal note calls for general funds to
capitalize the project.
Representative Hawker questioned if there would be a sunset
on the program. Ms. Barrans responded that the program
would continue to operate as long as the appropriations were
placed into the fund.
Representative Hawker recommended a sunset clause be added
in order that the Legislative Budget and Audit Committee
could provide an evaluation of program performance. He
inquired if the sponsor would be receptive to adding that
language.
Representative Kerttula interjected that the State could
always repeal the program. Placing a sunset could
discourage participants from becoming a nurse; when the
students see that possibly coming, they might opt out.
Representative Wilson emphasized that studies indicate that
in the next seven years, the State is going to need another
4,100 nurses. She pointed out that this is a crisis
situation and the legislation is conditional if the funding
is there.
CAMILLE SOLEIL, (TESTIFIED VIA TELECONFERENCE), ALASKA NURSE
ASSOCIATION, ANCHORAGE, offered to answer questions of the
Committee.
Representative Foster MOVED to report CS HB 211 (HESS) out
of Committee with individual recommendations and with the
accompanying fiscal notes.
Representative Hawker OBJECTED for a comment. He noted that
he would consider prior comments made by Representative
Kerttula. Representative Hawker WITHDREW his OBJECTION.
There being NO further OBJECTION, it was so ordered.
CS HB 211 (HESS) was reported out of Committee with a "do
pass" recommendation and with zero note #1 by the Department
of Community & Economic Development and a new fiscal note by
the Alaska Postsecondary Commission.
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