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, SPONSOR, provided information about the legislation. She emphasized the nursing shortage in the state of Alaska. She noted that the vacancy rate was 11.5 percent. Traveling nurses from other states were being used to fill these vacancies. The bill would create an incentive in assisting nurses in repaying their school loans. To qualify for the loan reimbursement program an individual would have to be hired as a nurse in Alaska after July 1 of 2003, be licensed in the state, work in Alaska and have an outstanding school loan from a recognized institution. The program would reimburse $2 thousand per year, up to a total of $10 thousand. She noted that this amount would not cover a nurse's entire education expense, but would serve as a tool in recruitment. She explained that the State Board of Nursing would adopt the criteria guidelines for the loan program in consultation with the Alaska Commission on Post-secondary Education. She added that it would be appropriated from the student loan corporation dividend. Representative Wilson pointed out that currently 5,200 nurses are working in Alaska and that the university produced 110 nurses per year. The intent is to double the amount (220 per year). In next seven years, due to growth in health care needs, Alaska will need an additional 1,400 nurses. She maintained that the proposed bill is crucial to meeting that need. Co-Chair Harris asked whether loan reimbursement programs were being created for any other groups, such as teachers. Representative Wilson stated that a program already existed for teachers, which was used as a model for the proposed program for nurses. Co-Chair Harris asked for an explanation of the repayment program. Representative Wilson explained that if a hospital were attempting to hire a nurse into the state, the reimbursement program would be an additional incentive in providing reimbursement of $2 thousand per year, up to $10 thousand, of their outstanding student loans. She also noted that if a new nurse lived in Alaska, they might choose to stay in the state and take advantage of the program. Co-Chair Harris observed that the student loan program, would incur a cost of $918,000 in FY 04, up to a possible $5.1 million in FY 09. Representative Wilson noted that if the state of Alaska could not recruit nurses, then nurses would be brought in from other states. She emphasized that since the traveling nurses cost nearly double the salary of instate nurses, this would escalate health care costs in the state. In response to a question by Co-Chair Harris, Representative Wilson noted that nearly every hospital, from small to large, was paying large amounts for traveling nurses. She speculated that in Southeast Alaska some hospitals pay over $100 per year just on traveling nurses. She noted that these nurses demanded higher salaries. Co-Chair Harris asked if there was a provision offering benefits to students who attended school in Alaska. Representative Wilson noted that there was no provision, but added that there were enough vacancies to fill with nurses from any location. DIANE BARRANS, EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION COMMISSION, DEPARTMENT OF EDUCATION pointed out a correction in the analysis of the fiscal note that inaccurately totaled the number of nurses (2,525). Representative Croft asked for explanation of the progression in the number of nurses. Ms. Barrans explained that they used projections from the Department of Labor from a report of trends for April 2003. The figures were extracted based on new positions, estimating that they would be most likely to have student loans outstanding. LINDA FINK, ASSISTANT DIRECTOR, ALASKA STATE HOSPITAL AND NURSING HOME ASSOCIATION testified in support of the legislation. She stated that they had worked closely with the University of Alaska to double the number of nurses, but emphasized that this would not meet projected needs. She also noted their work to develop distance delivery programs and other training programs. They also work with advance training programs for nurses, K-12 education, and job centers to increase health care opportunities. She observed that the bill presents another avenue to increase retention and recruitment for nurses. HB 211 was heard and HELD in Committee for further consideration.