Establishes and appropriates moneys for the Nursing Scholarship Program to satisfy the growing demand for nurses in the State.

A BILL FOR AN ACT

SECTION 1. The legislature finds that Hawaii is experiencing a significant shortage in the number of registered nurses it needs. In 2005, the projected shortage of registered nurses is 1,518, and this is expected to grow to 2,267 by 2010.

Hawaii's registered nurse workforce is aging, and as an increasing number retire, educating more registered nurses is critical. Yet at a time when we need more applicants, Hawaii's nursing schools are turning away qualified applicants. One of the primary causes is a lack of budgeted faculty positions. Thus, there is a serious need to increase the number of graduate students, who will then be qualified to become nurse educators upon completion of their advanced degree. Increasing faculty positions is an essential step in training the next generation of nurses, enabling nursing schools to admit a larger number of students, and reversing the nursing shortage.

The faculty shortage is caused by various factors, including: limited financial incentives to pursue a career in nursing education; significant tuition and loan expenses for nurses who pursue graduate study; the need for employed nurses to maintain their income while pursuing a graduate degree; and a diminishing supply of qualified faculty members. Many nursing faculty members are fifty years of age or older.

Immediate action is necessary to expand the current and future pool of qualified nursing faculty if Hawaii is to meet the demand for registered nurses in the next decade and beyond. Moreover, without proactive intervention, the nursing shortage would have serious consequences that may threaten the health and welfare of Hawaii's citizens.

The purpose of this Act is to establish a program to attract baccalaureate prepared nurses into master's and doctoral programs that will prepare them for academic careers.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

§   -1 Short title. This chapter shall be known and may be cited as the Nursing Scholars Program Act.

§   -2 Definitions. As used in this chapter, 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 of Hawaii board of nursing and a course of study in a graduate nursing program approved by the State of Hawaii board of nursing.

"Approved educational institution" means a public or private 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 postsecondary educational institution located in this State leading to a master's degree or other higher degree in nursing and who intends to teach in a nursing program in Hawaii designed to prepare students for licensure as registered nurses. Awarding preference will be given to Hawaii residents.

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

§   -3 Nursing scholars program; establishment, administration. (a) There is established a program to be known as the nursing scholars program to be placed under the University of Hawaii.

(b) Under the parameters of the scholarship program, the department may provide scholarship grants to an eligible student who is a resident of this State upon confirmation from an approved educational institution that the student has been accepted for enrollment in an approved graduate course of study. Scholarship grants shall only be for the amounts set forth in section    -4(a) and shall only be used for tuition, books, laboratory fees, and any other required fees.

(c) The department shall establish lists of approved courses of study for the various types of approved educational institutions to be addressed by the program.

(d) To receive a scholarship grant under this chapter, a student shall meet all of the following requirements:

(e) A student shall apply to the department and include all information and documentation required by the department. The application shall include a verified statement of grade point average from the appropriate approved educational institution.

(f) The teaching requirement under subsection (d)(5)(B) shall begin after the receipt of the master's or doctoral degree.

(g) If a student terminates enrollment in the approved educational institution during the academic year or prior to completion of the approved graduate course of study and is eligible to have all or a portion of the tuition payments refunded under the refund policies of the institution, the approved educational institution shall notify the department in writing and shall return all unused portions of the scholarship grant. Returned amounts shall be used to fund other scholarship grants under this chapter.

(h) A scholarship under this chapter is only transferable to another approved educational institution if approved by the department.

(i) Grants awarded under the program shall be limited to funds appropriated for the purpose or funds otherwise matched by external entities. First priority for awarding grants shall be given to renewal applicants.

§   -4 Scholarships; nursing degree programs. (a) The department shall award a scholarship grant in an amount up to $10,000 per academic year to a student enrolled full-time in an approved educational institution pursuing a graduate degree in nursing through an approved course of study.

(b) The grant shall be for a maximum of three academic years for a master's degree or for up to four academic years if the student is enrolled in a doctoral program approved course of study. To qualify for renewals beyond three years, the student must be in compliance with the requirements of section    -3(d) and the department must determine that the student is making satisfactory progress toward completing a doctoral degree.

§   -5 Program administration. (a) The department shall monitor and verify a student's fulfillment of all requirements under this chapter.

(b) The department may enter into a contract with a private or public entity to administer the program.

(c) The department shall enforce repayment of all scholarship grants for a student who does not comply with this chapter. Repayment shall include the use of all lawful collection procedures and the use of private collection agencies.

(d) Scholarship grants received by a student from the program shall not be considered taxable income under chapter 235.

(e) Scholarship grants received by a student from the program shall not be considered financial assistance or appropriations to the approved educational institution.

(f) Any person who knowingly or intentionally procures, obtains, or aids another to procure or obtain a grant under this chapter through fraudulent means shall be disqualified from participation in the program and shall be liable to the department for an amount equal to three times the amount obtained.

(h) Any appeal under this chapter shall be subject to chapter 91.

§   -6 Annual report. (a) The department shall publish a report by September 1, 2006, and every year thereafter. The report shall include information regarding the operation of the program including:

(b) The annual report shall be submitted to the governor and the legislature not later than twenty days prior to the convening of each regular session."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000 or so much thereof as may be necessary for fiscal year 2005-2006, and the same sum, or so much thereof as may be necessary for fiscal year 2006-2007, to establish and implement the nursing scholars program.

The sums appropriated shall be expended by the University of Hawaii for the purposes of this Act.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $1, or so much thereof as may be necessary for fiscal year 2005–2006, and the same sum, or so much thereof as may be necessary for fiscal year 2006-2007, to increase the staff to administer the nursing scholars program.

The sums appropriated shall be expended by the University of Hawaii for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2005.