SB493

SECTION 1. The legislature finds that there is a critical need for more licensed veterinarians in the State. In 2020, there were three hundred twenty veterinarians working in Hawaii. However, the existing growth rate will not be sustainable to meet the current and future demand of veterinary services in the State, as the number of veterinarians is expected to grow only by approximately 1.6 per cent each year through 2030.

Presently, there are a myriad of issues that limit the potential to increase the number of licensed veterinarians in the State. For one, the State does not have a veterinary school, requiring individuals interested in pursuing a career in veterinary medicine to advance their education out-of-state, where many often remain after graduation. Without an educational option in Hawaii, veterinary graduates who do return to the State encounter financial barriers such as higher out-of-state tuition and relocation costs, higher costs of living due to geographical isolation, and considerable student loan debt.

The legislature further finds that, in the United States, the pursuit of a doctor of veterinary medicine degree is a costly undertaking, with total program costs ranging from $150,000 to $400,000 for private out-of-state programs. Average program costs in the United States range from $200,000 to $275,000. The average graduates accumulates anywhere from $150,000 to $200,000 in student loan debt, with certain graduate accumulating more debt based on their chosen program. Therefore, it is imperative to incentivize practicing and future veterinarians to practice in the State by offering benefits to help lessen tuition burdens.

The legislature additionally finds that the university of Hawaii John A. Burns school of medicine administers the Hawaii state loan repayment program that provides debt repayment assistance to health care professionals who commit to working in certain rural and underserved parts of the State. There are also a number of scholarship programs available for qualifying medical students. These options have successfully incentivized more physicians to remain in Hawaii to practice medicine, closing health care gaps through wider availability of health care services. Offering prospective students and current veterinarians a similar opportunity will catalyze growth and expansion of the field of veterinary medicine, enhance the agricultural industry, address the shortage of veterinarians in the State, incentivize the interests of individuals seeking entry into the profession, and assist qualified individuals who hold student debt.

Accordingly, the purpose of this Act is to:

(1) Establish the veterinary workforce development special fund;

(2) Establish a fee to be assessed on individuals obtaining or renewing a veterinary license; and

(3) Establish the veterinary workforce development loan repayment and scholarship program to assist veterinarians in the State with loan repayments and completion of veterinary medicine educations.

SECTION 2. Chapter 471, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows:

"§471-A Veterinary workforce development special fund. (a) There is established the veterinary workforce development special fund, to be administered and expended by the board.

(b) The following shall be deposited into the special fund:

(1) Appropriations by the legislature;

(2) Veterinary workforce development fees established pursuant to section 471-B;

(3) Grants, donations, gifts, or other income received for the purposes of the special fund; and

(4) Interest earned or accrued on moneys in the special fund.

(c) Moneys in the special fund shall be used to support the veterinary workforce development loan repayment and scholarship program established pursuant to section 471-C; provided that the veterinary workforce development fee shall be used for purposes identified by the board to support veterinary workforce assessment and planning efforts, including the recruitment and retention of veterinarians in the State. This shall include but not be limited to:

(1) Maintaining accurate veterinarian workforce assessment information and providing or updating personal and professional information, that shall be maintained in a secure database;

(2) Providing loan repayment to veterinarians who commit to working in shortage areas of the State as part of the veterinarian workforce loan repayment and scholarship program administered by the board; and

(3) Providing scholarships to qualifying veterinarians to be determined by the board.

The board may disclose information specific to any veterinarian only with the express written consent of that veterinarian.

"§471-B Veterinary workforce development; license fee. (a) Beginning July 1, 2025, when a license is issued or renewed pursuant to section 471-9, each veterinarian shall be assessed a fee of $60 that shall be transferred and deposited into the veterinary workforce development special fund established under section 471-A to support ongoing assessment and planning of the veterinarian workforce in the State, consistent with the purposes established in section 471-A. Payment of the veterinarian workforce development fee shall be required for license issuance or renewal.

"§471-C Veterinary workforce development loan repayment and scholarship program. (a) There is established a veterinary workforce development loan repayment and scholarship program to be administered by the board to provide financial support to veterinary students and practicing veterinarians who agree to work as a full-time veterinarian in shortage areas of the State for a period of time to be determined by the board.

(b) The veterinary workforce development loan repayment and scholarship program shall offer:

(1) Loan repayments to veterinarians who commit to working in shortage areas of the State for a minimum period of time determined by the board; and

(2) Scholarships to veterinary students attending veterinary colleges that meet standards established by the board; provided that the scholarship recipients commit to work in the State after graduation for a minimum period of time determined by the board.

(c) An individual who received a loan repayment or scholarship pursuant to this section and who does not work in the State for the minimum time period specified by the board shall repay the total amount of the loan or scholarship received to the veterinarian workforce development special fund; provided that the board may waive this requirement upon good cause shown.

(d) The board shall adopt rules in accordance with chapter 91 necessary to implement and administer the veterinarian workforce development loan repayment and scholarship program, including eligibility requirements and procedures."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the veterinary workforce development special fund.

SECTION 4. There is appropriated out of the veterinary workforce development special fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for scholarships and loan repayments to qualified individuals working as veterinarians in the State pursuant to the requirements of section 471-A.

The sums appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 5. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 6. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2025.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	493
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII