SB57C6FGQJ-1 ENROLLED: W1PS9E-3 By Senator Weaver RFD:

Finance4/5/2023 and: Taxation Education First Read:

07-Mar-23KMS 2023AMENDMENT RegularTO SessionSB57 PageOFFERED 0BY SB57FINANCE EnrolledAND Enrolled,TAXATION AnEDUCATION Act,OFFERED 3IN RelatingCOMMITTEE toBY theDAN BoardROBERTS of2 Nursing;4 Replace lines 95 through 96 on page 4 with the following:

tohonor add a new Article 8 to Title 34, Chapter 21, Code of Alabama 1975, to create the Alabamacontract. Loan Repayment Program for Nursing Education;

(b) If, for any reason, after graduation with a graduate degree to establishbecome a nurse educator and describeprior to completion of the program;repayment obligation set forth in Section 34-21-152, a participant defaults on or otherwise fails to honor a loan repayment contract with the board, the participant shall pay an additional penalty equal to 20 percent of the total principal amount of all loans received by the participant.

(c) Failure of a participant to providehonor forhis programor fundingher fromReplace theline Education100 Truston Fund;page 4 with the following:

to(d) provideThe definitions;board may excuse repayment of a loan, in whole Replace lines 110 through 111 on page 4 with the Page 1 C6FGQJ-1 :

to4/5/2023 outline: the procedure for the board to award loans to applicants who contract with the board to work as an instructor in a prelicense nursing education program;

andKMS toAMENDMENT provideTO furtherSB57 forOFFERED theBY powersFINANCE ofAND theTAXATION boardEDUCATION underOFFERED theIN program.COMMITTEE BY DAN ROBERTS following:

BESenate ITHealth ENACTEDCommittees. BY THE LEGISLATURE OF ALABAMA:

Section 1.

A heading for Article 8, commencing with Section 34-21-150, Chapter 21, Title 34, is added to the Code of Alabama 1975, to read as follows:

"Article 8.

Loan Repayment Program for Nursing Education." Section 2.

Article 8, commencing with Section 34-21-150, is added to Chapter 21, Title 34 of the Code of Alabama 1975, to read as follows:

§34-21-150 The Alabama Loan Repayment Program for Nursing Education is created.

The program shall be administered by the board and funded by direct appropriation from the Education Trust Fund.

§34-21-151 As used in this article, the following terms shall have the following meanings:

Page 1 SB57 Enrolled (1) PARTICIPANT.

Any individual who applies for and is awarded a loan pursuant to this article.

(2) PROGRAM.

The Alabama Loan Repayment Program for Nursing Education.

(3) QUALIFIED NURSING EDUCATION PROGRAM.

An accredited prelicensure nursing education program conducted by a public two-year or four-year institution of higher education in this state.

§34-21-152 (a)(1) The board shall establish and award loans to any of the following qualified individuals:

a.

An applicant for admission to a qualified nursing education program approved by the board, who has signed a contract as provided in subsection (b).

b.

A student attending a qualified nursing education program approved by the board who is pursuing, or has completed within the five years immediately preceding the current loan term, a graduate degree to become a nurse educator in a qualified nursing education program, who has signed a contract as provided in subsection (b).

(2) An application for a nursing education loan under the program may be submitted to the board for any scholastic year, including previously completed scholastic years.

(3) A loan may be granted by the board to an individual who is pursuing or holding an eligible master's degree for up to three years and to an individual pursuing or holding an eligible doctorate degree for up to four years.

(4) For the first year of operation of the program, the Page 2 SB57 Enrolled maximum annual loan amount shall not exceed fifteen thousand dollars ($15,000).

For subsequent years, the board may increase the maximum annual loan amount by no more than five percent annually.

(5) The board shall conduct a careful and thorough investigation of the ability, character, and qualifications of each loan applicant and shall award loans pursuant to the requirements of the program.

(6) An individual who has signed a contract with the board may postpone his or her choice of qualified nursing education programs to work with until a time set by the board.

(b) A loan may only be awarded under the program to those individuals who have signed a contract with the board to repay all amounts received under the program by working following graduation as a full-time nursing instructor in a qualified nursing education program, for a period of 24 months for each annual loan received under the program.

§34-21-153 (a) If, for any reason, a participant defaults on or otherwise fails to honor a loan repayment contract with the board, the individual shall be liable for immediate repayment of the total principal loan amount, plus interest, at the rate of eight percent, or the prime lending rate, whichever is greater, accruing from the date of default or other failure to honor the contract.

(b) If, for any reason, after graduation with a graduate degree to become a nurse educator and prior to completion of the repayment obligation set forth in Section Page 3 SB57 Enrolled 34-21-152, a participant defaults on or otherwise fails to honor a loan repayment contract with the board, the participant shall pay an additional penalty equal to 20 percent of the total principal amount of all loans received by the participant.

(c) Failure of a participant to honor his or her contract with the board or to pay the amount he or she is liable for under this article shall constitute grounds for the revocation of his or her license to practice nursing.

(d) The board may excuse repayment of a loan, in whole 95 or in part, upon the death of a participant, or upon the participant becoming disabled to the extent that he or she is no longer able to engage in the practice of nursing, or upon some other extreme hardship not the fault of the participant.