Session of 1998
                   
HOUSE BILL No. 2753
         
By Committee on Appropriations
         
1-30
            9             AN ACT concerning educational loans; relating to forgivable loans for
10             persons engaged in the practice of osteopathic medicine, optometry,
11             nursing and teaching; amending K.S.A. 74-3267a, 74-3268a, 74-3269,
12             74-3271, 74-3272, 74-3291, 74-3293, 74-3294, 74-3297, 74-3299, 74-
13             32,100, 74-32,101, 74-32,102, 74-32,103, 74-32,105 and 74-32,106 and
14             K.S.A. 1997 Supp. 74-3265, 74-3266, 74-3267, 74-3292, 74-3295, 74-
15             3296, 74-3298, 74-32,104 and 74-32,107 and repealing the existing
16             sections; also repealing K.S.A. 74-3246, 74-3247 and 74-3248.
17            
18       Be it enacted by the Legislature of the State of Kansas:
19           Section 1. K.S.A. 1997 Supp. 74-3265 is hereby amended to read as
20       follows: 74-3265. (a) Within the limits of appropriations therefor and in
21       accordance with this section, the state board of regents may award schol-
22       arships forgivable loans in accordance with the provisions of this section
23       to Kansas residents who are undergraduate students enrolled in or ad-
24       mitted to accredited schools of osteopathic medicine in a course of in-
25       struction leading to the degree of doctor of osteopathy who enter into a
26       written agreement with the state board of regents in accordance with
27       K.S.A. 74-3266 and amendments thereto.
28           (b) Scholarships Forgivable loans awarded under this section shall be
29       in effect during the period of time provided in subsection (c) and shall
30       provide to the person receiving the scholarship forgivable loan the pay-
31       ment of all tuition and required fees for one year up to a maximum of
32       $15,000.
33           (c) Scholarships Forgivable loans awarded under this section shall be
34       awarded on an annual basis and shall be in effect for one year unless
35       otherwise terminated before such period of time. A Kansas resident who
36       is an undergraduate student enrolled in or admitted to an accredited
37       school of osteopathic medicine in a course of instruction leading to the
38       degree of doctor of osteopathy may be awarded a separate scholarship
39       forgivable loan for each separate year the student enters into a written
40       agreement with the state board of regents under K.S.A. 74-3266 and
41       amendments thereto, up to a maximum of four years. For each separate
42       year a student is awarded a scholarship forgivable loan under this section,
43       the student shall engage in the full-time practice of medicine and surgery

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  1       in Kansas in a service commitment area I or II as defined in K.S.A. 76-
  2       381 and amendments thereto for a period of 12 months unless such ob-
  3       ligation is otherwise satisfied as provided in K.S.A. 74-3268 and amend-
  4       ments thereto.
  5           (d) The state board of regents shall not award more than 15 schol-
  6       arships forgivable loans in any year to persons who have not previously
  7       been awarded a scholarship forgivable loan under this section and, in any
  8       case, the board shall not award more than 60 scholarships forgivable loans
  9       under this section in any year. In selecting Kansas residents to be awarded
10       scholarships forgivable loans under this section, the board shall first con-
11       sider students commencing their first year of instruction at accredited
12       schools of osteopathic medicine and thereafter shall consider students in
13       later years of instruction.
14           Sec. 2. K.S.A. 1997 Supp. 74-3266 is hereby amended to read as
15       follows: 74-3266. (a) An agreement entered into by the state board of
16       regents and a Kansas resident who is an undergraduate student enrolled
17       in or admitted to an accredited school of osteopathic medicine in a course
18       of instruction leading to the degree of doctor of osteopathy for the award-
19       ing of a scholarship forgivable loan under K.S.A. 74-3265 and amend-
20       ments thereto shall require that the person receiving the scholarship for-
21       givable loan:
22           (1) Complete the required course of instruction and receive the de-
23       gree of doctor of osteopathy;
24           (2) apply for and obtain a license to practice medicine and surgery in
25       Kansas;
26           (3) engage in the full-time practice of medicine and surgery for a
27       period of 12 months in Kansas for each year a forgivable loan was granted;
28           (4) (A) with regard to agreements entered into prior to July 1, 1993
29       1998, commence such full-time practice of medicine and surgery within
30       nine months after licensure or within nine months after completion of a
31       residency program and licensure, whichever is later, and continue such
32       full-time practice in Kansas for a consecutive period of months equal to
33       the total number of months required under the agreement;
34           (B) with regard to agreements entered into on or after July 1, 1993
35       1998, commence and verify such proper full-time practice of medicine
36       and surgery within nine six months after licensure or within nine six
37       months after completion of an approved residency program as defined in
38       this section and licensure, whichever is later, and continue such full-time
39       practice in Kansas for a consecutive period of months equal to the total
40       number of months required under the agreement;
41           (5) agree that the service commitment for each agreement entered
42       into under this section is in addition to the service commitment contained
43       in any other agreement which has been or may be entered into under

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  1       this section for the purpose of obtaining scholarship aid a forgivable loan;
  2           (6) maintain records and make reports to the state board of regents
  3       to document and verify the satisfaction of the obligation under such
  4       agreement to engage in the proper full-time practice of medicine and
  5       surgery in Kansas and to continue such full-time practice for a consecutive
  6       period of months equal to the total number of months required under
  7       the agreement; and
  8           (7) upon failure to verify and satisfy an agreement to engage in the
  9       full-time practice of medicine and surgery in Kansas for the required
10       period of time under any such agreement, the person receiving a schol-
11       arship forgivable loan under K.S.A. 74-3265 and amendments thereto
12       shall repay amounts to the state board of regents as provided in K.S.A.
13       74-3267 and amendments thereto.
14           (b) (1) Each Kansas student who enters into an agreement under this
15       section after June 30, 1988 1998, shall serve the practice obligations in-
16       curred by such student under such agreement within an area of the state
17       designated as a service commitment area I or II pursuant to K.S.A. 76-
18       375 and amendments thereto within six months of completion of intern
19       training or primary care residency training. Such student shall select a
20       service commitment area I or II in accordance with the provisions of
21       K.S.A. 76-375 and amendments thereto and shall be subject to the pro-
22       visions of subsections (c) and (d) of such K.S.A. 76-375 and amendments
23       thereto in the same manner and to the same effect as a person required
24       to engage in the full-time practice of medicine and surgery in a service
25       commitment area I or II pursuant to any agreement under K.S.A. 76-373
26       through 76-377a and amendments thereto, except that in lieu of inform-
27       ing or notifying the university of Kansas school of medicine of certain
28       matters under the provisions of subsections (c) and (d) of such K.S.A. 76-
29       375 and amendments thereto such student shall inform and notify the
30       state board of regents thereof.
31           (2) Each Kansas student who enters into an agreement under this
32       section after June 30, 1993 1998, shall serve who fulfills the practice
33       obligations incurred by such student under such agreement ;n any county
34       of this state other than Douglas, Johnson, Sedgwick, Shawnee or Wyan-
35       dotte counties as set out in subsection (b)(1) of this section shall verify
36       the completion of one full year of practice in Kansas under this act for
37       each year the student was granted a loan.
38           (c) A person awarded a scholarship forgivable loan in accordance with
39       the provisions of K.S.A. 74-3265 through 74-3268 and amendments
40       thereto may satisfy the obligation to engage in the practice of medicine
41       and surgery, under an agreement entered into pursuant to this section,
42       even though such person is engaged in practice in an area not designated
43       a service commitment area I or II (medically underserved area by spe-

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  1       cialty, or a critically medically underserved area by specialty), or is en-
  2       gaged in practice in Douglas, Johnson, Sedgwick, Shawnee or Wyandotte
  3       counties, through verified employment on a part-time basis by the state
  4       of Kansas which has been approved by the state board of regents, for the
  5       practice of medicine and surgery at any state medical care facility or
  6       institution. For each year that such student was granted a forgivable loan
  7       the rate of forgiveness under this subsection shall be 11/2 years of part-
  8       time practice of medicine and surgery for each year the student was
  9       granted a forgivable loan.
10           (d) For all purposes under this section, service or employment after
11       June 30, 1988, on a part-time basis at a state medical care facility or
12       institution shall be on the basis of at least the equivalent of 1/2 time in
13       order to satisfy practice obligations under an agreement entered into un-
14       der this section.
15           (e) As used in this section and K.S.A. 74-3267 and amendments
16       thereto, (1) ``state medical care facility or institution'' has the meaning
17       ascribed thereto by subsection (k) of K.S.A. 76-375 and amendments
18       thereto; and (2) ``approved postgraduate residency training program''
19       means a residency training program in general pediatrics, general internal
20       medicine, family medicine, family practice or emergency medicine.
21           Sec. 3. K.S.A. 1997 Supp. 74-3267 is hereby amended to read as
22       follows: 74-3267. (a) (1) Except as otherwise provided in K.S.A. 74-3268
23       and amendments thereto, upon the failure of any person to satisfy the
24       obligation to engage in the proper verified full-time practice of medicine
25       and surgery within the state of Kansas for the required period of time
26       under any agreement entered into pursuant to K.S.A. 74-3265 and 74-
27       3266 and amendments thereto, such person shall repay to the state board
28       of regents an amount equal to the total of (1) the amount of money
29       received plus accumulated interest by such person pursuant to such agree-
30       ment ; + us (2) annual interest at a rate of 15% from the date such money
31       was received at a variable interest rate in an amount equal to the average
32       yield before taxes received on 52-week United States treasury bills as
33       determined by the federal reserve banks as fiscal agents of the United
34       States at its most recent public offering of such bills prior to the time of
35       such payment.
36           (2) Any person who applies for and enters a postgraduate residency
37       training program that is not an approved program as provided in this
38       section shall be required to repay all moneys received pursuant to an
39       agreement entered into for any scholarship forgivable loan awarded under
40       K.S.A. 74-3265 and amendments thereto, plus accumulated interest at an
41       annual rate of 15% a variable interest rate in an amount equal to the
42       average yield before taxes received on 52-week United States treasury bills
43       as determined by the federal reserve banks as fiscal agents of the United

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  1       States at its most recent public offering of such bills prior to the time of
  2       such payment and shall commence such repayment in accordance with
  3       subsection (b) within 90 days of graduation from the school of osteopathic
  4       medicine or upon termination or completion of a residency training pro-
  5       gram which does not comply with the provisions of this act, whichever is
  6       later.
  7           (3) Any person who enters and completes an approved postgraduate
  8       residency training program but fails to satisfy the obligation to engage in
  9       the full-time practice of medicine and surgery within a service commit-
10       ment area or other area of this state for the required period of time shall
11       be required to repay all money received pursuant to an agreement en-
12       tered into for any scholarship forgivable loan awarded under K.S.A. 74-
13       3865 and amendments thereto,. ; + us accumulated interest at an annual
14       rate of 15% At such time, the account shall be turned over to a designated
15       lender or loan servicer; the state not being involved other than to receive
16       quarterly payments from the loan servicer at a variable interest rate as
17       described in subsection (a) and shall commence such repayment ;n ac-
18       cordance with subsection (b) within 90 days of failure to commence qual-
19       ifying practice.
20           (b) Each person required to repay any amount under this section shall
21       repay an amount totaling the entire amount to be repaid under all such
22       agreements for which such obligations are not satisfied, including all
23       amounts of interest at the rate prescribed. Except as otherwise provided
24       in this section, such repayment shall be in installment payments and each
25       such installment shall be not less than the amount equal to 1/5 of the
26       total amount which would be required to be paid if repaid in five equal
27       annual installments.
28           (c) Except as otherwise provided in this section, all installment pay-
29       ments under this section shall commence six months after the date of the
30       action or circumstance that causes the failure of the person to satisfy the
31       obligations of such agreements, as determined by the state board of re-
32       gents based upon the circumstances of each individual case. If an install-
33       ment payment becomes 91 days overdue, the entire amount outstanding
34       shall become immediately due and payable, including all amounts of in-
35       terest at the rate prescribed.
36           (d) (c) The total repayment obligation imposed under all agreements
37       entered into under K.S.A. 74-3266 and amendments thereto, may be
38       satisfied at any time prior to graduation from the accredited school of
39       osteopathic medicine by making a single lump sum payment equal to the
40       total of (1) the entire amount to be repaid under all such agreements
41       upon failure to satisfy the obligations under such agreements to practice
42       in Kansas, plus (2) all amounts of interest thereon at the variable interest
43       rate prescribed in this section to the date of payment.

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  1           (d) All Kansas students entering into a forgivable loan agreement,
  2       previously called a ``scholarship'', under the provisions of this act prior
  3       to July 1, 1998, shall be governed by the statutory provisions in effect at
  4       the time the agreement was entered into.
  5           Sec. 4. K.S.A. 74-3267a is hereby amended to read as follows: 74-
  6       3267a. There is hereby created in the state treasury the osteopathic schol-
  7       arship forgivable loan repayment fund. The state board of regents shall
  8       remit all moneys received under K.S.A. 74-3247, 74-3248 and 74-3267
  9       74-3265, 74-3266 and 74-3267, and amendments thereto, to the state
10       treasurer at least monthly. Upon receipt of each such remittance the state
11       treasurer shall deposit the entire amount thereof in the state treasury,
12       and such amount shall be credited to the osteopathic scholarship forgiv-
13       able loan repayment fund. All expenditures from the osteopathic schol-
14       arship forgivable loan repayment fund shall be for scholarships forgivable
15       loans under K.S.A. 74-3265 and amendments thereto, and shall be made
16       in accordance with appropriation acts upon warrants of the director of
17       accounts and reports issued pursuant to vouchers approved by the exec-
18       utive officer of the state board of regents or a person designated by the
19       executive officer.
20           Sec. 5. K.S.A. 74-3268a is hereby amended to read as follows: 74-
21       3268a. If a person fails to satisfy an obligation to engage in the full-time
22       practice of medicine and surgery in Kansas for the required period of
23       time under an agreement entered into pursuant to K.S.A. 74-3223 to 74-
24       3228, inclusive, 74-3246 to 74-3248, inclusive, or 74-3265 to 74-3267,
25       inclusive, and amendments thereto, because such person is engaged in
26       the practice of medicine and surgery in a state other than Kansas, and if
27       such person is subject to or currently making repayments under any such
28       statutes and if such person subsequently ;c/ommences verifies the com-
29       mencement of the practice of medicine and surgery in this state which
30       complies with the agreements entered into under such statutes, the bal-
31       ance of the repayment amount, including interest thereon, from the time
32       of such commencement of practice until the obligation of such person is
33       satisfied, or until the time such person again becomes subject to repay-
34       ments, shall be waived. All repayment amounts due prior to such com-
35       mencement of practice in this state, including interest thereon, shall con-
36       tinue to be payable as provided in such statutes. If subsequent to such
37       commencement of practice, the person fails to satisfy such obligation, the
38       person again shall be subject to repayments, including interest thereon,
39       as otherwise provided in such statutes.
40           Sec. 6. K.S.A. 74-3269 is hereby amended to read as follows: 74-
41       3269. (a) The state board of regents may finance or assist in the financing
42       of postgraduate training programs in primary care osteopathic medicine
43       and may provide financial assistance to persons engaged in such post-

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  1       graduate training programs who have agreed to enter the full-time prac-
  2       tice of osteopathic medicine in Kansas pursuant to an agreement under
  3       this section. The state board of regents may contract with one or more
  4       hospitals or one or more medical groups, or both, in Kansas. Each such
  5       contract shall provide that the hospital or medical group provide post-
  6       graduate training in primary care osteopathic medicine and that the state
  7       board of regents shall pay specific amounts from appropriations to be
  8       used in financing such postgraduate training, including stipends, com-
  9       pensation and expenses related thereto. Each hospital or medical group
10       entering into a contract with the state board of regents under this section
11       shall indemnify the state board of regents against the failure of any person
12       who engaged in a postgraduate training program provided by such hos-
13       pital or medical group under the contract to repay to the state board of
14       regents the total amount of money plus annual interest required under
15       subsection (f) upon the failure of such person to satisfy the obligation to
16       engage in the full-time practice of osteopathic medicine in accordance
17       with an agreement under this section.
18           (b) The amount of each stipend provided to a person engaged in a
19       postgraduate training program in primary care osteopathic medicine un-
20       der this section shall not be less than any stipend provided to persons
21       engaged in a postgraduate training program in allopathic medicine under
22       K.S.A. 76-825, and amendments thereto.
23           (c) The stipends and other financing provided for under this section
24       are intended to improve medical education in Kansas and to encourage
25       retention of primary care physicians in Kansas. To be eligible to engage
26       in a postgraduate training program in osteopathic medicine and to receive
27       a stipend under this section, each person shall enter into a written agree-
28       ment with the state board of regents which requires such person to: (1)
29       Become prepared for the practice of osteopathic medicine by completion
30       of such person's postgraduate training, and (2) enter the full-time practice
31       of osteopathic medicine in Kansas in accordance with this section within
32       six months after completion of such person's postgraduate training and
33       continue such full-time practice for a consecutive period of months equal
34       to the total number of months in which such person engaged in a post-
35       graduate training program under this section.
36           (d) Each person who enters into an agreement under this section
37       shall fulfill such practice obligations by practice in Kansas within an area
38       of the state designated as a service commitment area II pursuant to K.S.A.
39       76-375, and amendments thereto. Such person shall select a service com-
40       mitment area II in accordance with the provisions of K.S.A. 76-375, and
41       amendments thereto, and shall be subject to the provisions of subsections
42       (c) and (d) of such K.S.A. 76-375, and amendments thereto, in the same
43       manner and to the same effect as a person required to engage in the full-

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  1       time practice of medicine and surgery in a service commitment area II
  2       pursuant to any agreement under K.S.A. 76-373 to 76-377, inclusive, and
  3       amendments thereto, except that in lieu of informing or notifying the
  4       university of Kansas school of medicine of certain matters under the pro-
  5       visions of subsections (c) and (d) of such K.S.A. 76-375, and amendments
  6       thereto, such person shall inform and notify the state board of regents
  7       thereof.
  8           (e) The practice obligations incurred by a person under this section
  9       are cumulative and consecutive obligations to any practice obligations
10       incurred by such person under K.S.A. 74-3223 to 74-3228, inclusive, and
11       amendments thereto, or K.S.A. 74-3246, 74-3247 and 74-3248 74-3265,
12       74-3266 and 74-3267, and amendments thereto, or any other law of this
13       state, and the practice obligations under this section are specifically de-
14       termined not to be concurrent obligations with any other of such practice
15       obligations.
16           (f) Except as otherwise provided in this section, upon the failure of
17       any person to satisfy the obligation to engage in ;(tri-stars)e verified full-time
18       practice of osteopathic medicine within the appropriate service commit-
19       ment area of this state for the required period of time under any agree-
20       ment entered into pursuant to this section, such person shall repay to the
21       state board of regents an amount equal to the amount of money received
22       by such person as a stipend during such person's postgraduate training
23       program under this section plus annual interest from the date such money
24       was received at the rate prescribed under K.S.A. 76-376, and amend-
25       ments thereto, for the repayment obligation imposed under that statute
26       and such person shall be subject to the other provisions of such K.S.A.
27       76-376, and amendments thereto, in the same manner and to the same
28       effect as a person required to repay moneys received pursuant to any
29       agreement under K.S.A. 76-373 to 76-377, inclusive, and amendments
30       thereto.
31           (g) An obligation to engage in ;(tri-stars)e verified full-time practice of oste-
32       opathic medicine in accordance with an agreement under this section
33       shall be postponed or shall be satisfied in the same manner and to the
34       same effect as an obligation to engage in the practice of medicine and
35       surgery pursuant to any agreement under K.S.A. 76-373 to 76-377, inclu-
36       sive, and amendments thereto, shall be postponed or shall be satisfied in
37       accordance with the provisions of K.S.A. 76-377, and amendments
38       thereto. In addition, an obligation to engage in ;(tri-stars)e verified full-time prac-
39       tice of osteopathic medicine in accordance with an agreement under this
40       section shall be postponed during the period in which the person, who
41       completed the first portion of such person's postgraduate training in a
42       postgraduate training program under this section, completes the remain-
43       ing portion of such person's postgraduate training at a location in another

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  1       state.
  2           (h) If a person fails to satisfy an obligation to engage in ;(tri-stars)e verified
  3       full-time practice of osteopathic medicine in Kansas for the required pe-
  4       riod of time under an agreement entered into under this section because
  5       such person is engaged in the practice of osteopathic medicine in a state
  6       other than Kansas, and if such person is subject to or currently making
  7       repayments under this section and if such person subsequently com-
  8       mences the practice of osteopathic medicine in this state which complies
  9       with the agreements entered into under this section, the balance of the
10       repayment amount, including interest thereon, from the time of such
11       commencement of practice until the obligation of such person is satisfied,
12       or until the time such person again becomes subject to repayments, shall
13       be waived. All repayment amounts due prior to such commencement of
14       practice in this state, including interest thereon, shall continue to be pay-
15       able as provided in this section. If subsequent to such the verified com-
16       mencement of practice, the person fails to satisfy such obligation, the
17       person again shall be subject to repayments, including interest thereon,
18       as otherwise provided in this section.
19           (i) As used in this section, ``primary care'' means the medical spe-
20       cialties of general internal medicine, pediatrics, family practice and ob-
21       stetrics and gynecology.
22           Sec. 7. K.S.A. 74-3271 is hereby amended to read as follows: 74-
23       3271. An agreement entered into by the state board of regents and a
24       Kansas resident who is an undergraduate student enrolled in or admitted
25       to an accredited school or college of optometry pursuant to a contract
26       which provides for guaranteed admission and continued enrollment of
27       such person therein and which was entered into for such purpose under
28       K.S.A. 76-721a and amendments thereto shall require that the person:
29           (a) Complete the required course of instruction in optometry and
30       receive the degree therefor;
31           (b) apply for and obtain a license to practice optometry in Kansas;
32           (c) engage in ;(tri-stars)e verified full-time practice of optometry for a period
33       of 12 months in Kansas for each year in which such person is so enrolled
34       and for which an annual amount is paid by the state board of regents
35       therefor pursuant to a contract under K.S.A. 76-721a and amendments
36       thereto;
37           (d) commence such verified full-time practice of optometry within
38       nine six months after licensure and continue such full-time practice in
39       Kansas for a consecutive period of months equal to the total number of
40       months required under the agreement;
41           (e) maintain records and make reports to the state board of regents
42       to document the satisfaction of the obligation under such agreement to
43       engage in the full-time practice of optometry in Kansas and to continue

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  1       such full-time practice for a consecutive period of months equal to the
  2       total number of months required under the agreement; and
  3           (f) upon failure to satisfy an agreement to engage in the full-time
  4       practice of optometry in Kansas for the required period of time under
  5       such agreement, repay amounts to the state board of regents as provided
  6       in K.S.A. 74-3272.
  7           Sec. 8. K.S.A. 74-3272 is hereby amended to read as follows: 74-
  8       3272. (a) Except as otherwise provided in K.S.A. 74-3273, and amend-
  9       ments thereto, and subsection (e), upon the failure of any person to satisfy
10       the obligation to engage in ;(tri-stars)e verified full-time practice of optometry
11       within the state of Kansas for the required period of time under an agree-
12       ment entered into pursuant to K.S.A. 74-3271, and amendments thereto,
13       such person shall repay to the state board of regents an amount equal to
14       the total of (1) the total amount of money paid by the state board of
15       regents in amounts for guaranteed admission and continued enrollment
16       of such person in an accredited school or college of optometry pursuant
17       to a contract entered into therefor under K.S.A. 76-721a and amendments
18       thereto plus (2) annual accumulated interest at a rate of 15% from the
19       date such money was paid pursuant to such contract variable interest rate
20       in an amount equal to the average yield before taxes received on 52-week
21       United States treasury bills as determined by the federal reserve banks as
22       fiscal agents of the United States at its most recent public offering of such
23       bills prior to the time of such payment.
24           (b) Each person required to repay any amount under this section shall
25       repay an amount totaling the entire amount to be repaid under such
26       agreement for which such obligation is not satisfied, including all interest
27       at the rate prescribed in subsection (a). Except as otherwise provided in
28       this section, such repayment shall be in installment payments and each
29       such installment shall be not less than the amount equal to 1/5 of the
30       total amount which would be required to be paid if repaid in five equal
31       annual installments. At such time, the account shall be turned over to a
32       designated lender or loan servicer; the state not being involved other than
33       to receive quarterly payments from the loan servicer at the variable in-
34       terest rate described in subsection (a).
35           (c) All installment payments under this section shall commence six
36       months after the date of the action or circumstance that causes the failure
37       of the person to satisfy the obligations of such agreement, as determined
38       by the state board of regents based upon the circumstances of each in-
39       dividual case. If an installment payment becomes 91 days overdue, the
40       entire amount outstanding shall become immediately due and payable,
41       including all interest at the rate prescribed.
42           (d) The total repayment obligation imposed under the agreement en-
43       tered into under K.S.A. 74-3271 and amendments thereto may be satis-

HB 2753

11

  1       fied at any time prior to graduation from the accredited school or college
  2       of optometry by making a single lump-sum payment equal to the total of
  3       (1) the entire amount to be repaid under such agreement upon failure to
  4       satisfy the obligation under such agreement to practice in Kansas, plus
  5       (2) all interest thereon at the variable rate prescribed in subsection (a) of
  6       this section to the date of payment.
  7           (e) If a person fails to satisfy an obligation to engage in ;(tri-stars)e verified
  8       full-time practice of optometry in Kansas for the required period of time
  9       under an agreement entered into pursuant to K.S.A. 74-3271 and amend-
10       ments thereto because such person is engaged in the practice of optom-
11       etry in a state other than Kansas, and if such person is subject to or
12       currently making repayments under this section and if such person sub-
13       sequently ;c/ommences verifies the commencement of the practice of op-
14       tometry in this state which complies with the agreements entered into
15       under such statute, the balance of the repayment amount, including in-
16       terest thereon, from the time of such commencement of practice until
17       the obligation of such person is satisfied, or until the time such person
18       again becomes subject to repayments, shall be waived. All repayment
19       amounts due prior to such commencement of practice in this state, in-
20       cluding interest thereon, shall continue to be payable as provided in this
21       section. If subsequent to such commencement of practice, the person
22       fails to satisfy such obligation, the person again shall be subject to repay-
23       ments, including interest thereon, as otherwise provided in this section.
24           (f) All recipients of forgivable loans, previously called ``guaranteed
25       admission'' agreements, prior to July 1, 1998, shall be governed by the
26       statutory provisions in effect at the time the agreement was entered into.
27           Sec. 9. K.S.A. 74-3291 is hereby amended to read as follows: 74-
28       3291. This act shall be known and may be cited as the nursing student
29       scholarship forgivable loan program.
30           Sec. 10. K.S.A. 1997 Supp. 74-3292 is hereby amended to read as
31       follows: 74-3292. As used in this act:
32           (a) ``Committee'' means the nursing scholarship review committee
33       established under K.S.A. 74-3299 and amendments thereto.
34           (b) ``Executive officer'' means the executive officer of the state board
35       of regents appointed under K.S.A. 74-3203 and amendments thereto.
36           (c) ``Rural area'' means any county of this state other than Douglas,
37       Johnson, Sedgwick, Shawnee and Wyandotte counties.
38           (d) ``School of nursing'' means a school within the state of Kansas
39       which is approved by the state board of nursing to grant a diploma, as-
40       sociate degree or baccalaureate degree in professional nursing or practical
41       nursing.
42           (e) ``Sponsor'' means any adult care home licensed under the adult
43       care home licensure act, any medical care facility licensed under K.S.A.

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  1       65-425 et seq. and amendments thereto, any psychiatric hospital licensed
  2       under K.S.A. 75-3307b and amendments thereto and any state agency
  3       which employs licensed practical nurses or licensed professional nurses.
  4           Sec. 11. K.S.A. 74-3293 is hereby amended to read as follows: 74-
  5       3293. (a) There is hereby established the nursing student scholarship
  6       forgivable loan program. A scholarship forgivable loan may be awarded
  7       under the nursing student scholarship forgivable loan program to any
  8       qualified nursing student enrolled in or admitted to a school of nursing
  9       in a course of instruction leading to licensure as a licensed professional
10       nurse or licensed practical nurse. The number of new scholarships for-
11       givable loans awarded under the nursing student scholarship forgivable
12       loan program in each year shall not exceed 250. Of this number, except
13       as otherwise provided in this section, 100 scholarships 200 forgivable
14       loans shall be awarded to nursing students whose sponsors are located in
15       rural areas and who are enrolled in a course of instruction leading to
16       licensure as a registered professional nurse, 50 scholarships forgivable
17       loans shall be awarded for nursing students enrolled in or admitted to a
18       school of nursing operated by a community college, technical college, area
19       vocational-technical school or area vocational school in a course of instruc-
20       tion leading to licensure as a licensed practical nurse and the remaining
21       100 scholarships shall be awarded to any nursing students who have a
22       sponsor and who are enrolled in a course of instruction leading to licen-
23       sure as a registered professional nurse. If all scholarships forgivable loans
24       authorized to be awarded under this section to nursing students whose
25       sponsors are located in rural areas have not been awarded by a date
26       established by the state board of regents, the scholarships forgivable loans
27       which have not been awarded by that date may be awarded to nursing
28       students who have a sponsor and who are otherwise qualified to be
29       awarded a scholarship forgivable loan under the nursing student schol-
30       arship forgivable loan program. The determination of the individuals
31       qualified for such scholarships forgivable loans shall be made by the ex-
32       ecutive officer after seeking advice from the committee. Within each
33       scholarship forgivable loan category prescribed by this subsection, schol-
34       arships forgivable loans shall be awarded on a priority basis to qualified
35       applicants who have the greatest financial need for such scholarships for-
36       givable loans. To the extent practicable and consistent with the other
37       provisions of this section, consideration shall be given to minority appli-
38       cants.
39           (b) Scholarships Forgivable loans awarded under the nursing student
40       scholarship forgivable loan program shall be awarded for the length of
41       the course of instruction leading to licensure as a licensed professional
42       nurse or licensure as a licensed practical nurse in which the student is
43       enrolled in or admitted to unless otherwise terminated before such period

HB 2753

13

  1       of time. Such scholarships forgivable loans shall provide to the nursing
  2       student receiving the scholarship loan the payment of tuition, fees, books,
  3       room and board in an amount to not exceed the total of $3,500 annually.
  4       The amount of each scholarship forgivable loan shall be established an-
  5       nually by the executive officer and shall be financed equally by the spon-
  6       sor of the nursing student and by the state of Kansas except that if the
  7       sponsor is located in a rural area or is a health care facility which has less
  8       than 100 beds,. The total amount of the scholarship forgivable loan fi-
  9       nanced by such sponsor shall not exceed $1,000 and the balance of such
10       amount shall be paid financed by the state of Kansas.
11           (c) Scholarship recipients with sponsors who received such scholar-
12       ships prior to July 1, 1998, shall be governed by the provisions of the
13       nursing student scholarship program in effect at the time the scholarship
14       was entered into.
15           Sec. 12. K.S.A. 74-3294 is hereby amended to read as follows: 74-
16       3294. (a) An applicant for a scholarship forgivable loan under the nursing
17       student scholarship forgivable loan program shall provide to the executive
18       officer, on forms supplied by the executive officer, the following infor-
19       mation:
20           (1) The name and address of the applicant;
21           (2) the name and address of the school of nursing which the applicant
22       is enrolled in or to which the applicant has been admitted; and
23           (3) ;(tri-stars)e name and address of the sponsor of the applicant and a ver-
24       ified copy of the agreement entered into by the applicant and the sponsor
25       in accordance with the provisions of this act; and
26           (4) any additional information which may be required by the execu-
27       tive officer.
28           (b) As a condition to awarding a scholarship forgivable loan under
29       this act, the executive officer and the applicant for a scholarship forgivable
30       loan shall enter into an agreement which shall require that the scholarship
31       forgivable loan recipient:
32           (1) Complete the required course of instruction and attain licensure
33       with the Kansas state board of nursing as a licensed professional nurse or
34       a licensed practical nurse;
35           (2) engage in the full-time practice of nursing, or the equivalent to
36       full-time practice as specified by rules and regulations of the state board
37       of regents adopted in accordance with the provisions of K.S.A. 74-3297
38       and amendments thereto, ;n the employment of the sponsor in accor-
39       dance with the agreement entered into by the scholarship recipient and
40       the sponsor and comply with such other terms and conditions as may be
41       specified by such agreement;
42           (3) commence the full-time practice of nursing, or the equivalent to
43       full-time practice as specified by rules and regulations of the state board

HB 2753

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  1       of regents adopted in accordance with the provisions of K.S.A. 74-3297
  2       and amendments thereto, within six months after registration in ac-
  3       cordance with the agreement entered into by the scholarship forgivable
  4       loan recipient and the sponsor and continue such full-time practice, or
  5       equivalent to full-time practice, for the total amount of time required
  6       under the agreement, which shall be for a period of not less than the
  7       length of the course of instruction for which the scholarship forgivable
  8       loan assistance was provided;
  9           (4) maintain records and make reports to the executive officer as may
10       be required by the executive officer to document the satisfaction of the
11       obligations under this act and under agreements entered into with the
12       sponsor; and
13           (5) upon failure to satisfy an agreement to engage in the full-time
14       practice of nursing, or the equivalent to full-time practice as specified by
15       rules and regulations of the state board of regents adopted in accordance
16       with the provisions of K.S.A. 74-3297 and amendments thereto, for the
17       required period of time under any such agreement, repay to the state and
18       to the sponsor amounts as provided in K.S.A. 74-3295 and amendments
19       thereto.
20           (c) Upon the awarding of a scholarship under the nursing student
21       scholarship program, the sponsor shall pay to the executive officer the
22       amount of such scholarship to be financed by the sponsor. Each such
23       amount shall be deposited in the nursing student scholarship program
24       fund in accordance with K.S.A. 74-3298 and amendments thereto.
25           (d) The sponsorship by a scholarship recipient may be transferred
26       from one sponsor to another upon the agreement of the original sponsor,
27       the scholarship recipient and the sponsor to which the sponsorship is to
28       be transferred. The terms, conditions and obligations of the transferred
29       agreement shall be substantially similar to the terms, conditions and ob-
30       ligations of the original agreement. No sponsorship shall be transferred
31       unless the agreement transferring such sponsorship provides for service
32       in a rural area and is approved by the executive officer as consistent with
33       the provisions of the nursing student scholarship program and as consis-
34       tent with any rules and regulations relating thereto adopted by the state
35       board of regents in accordance with the provisions of K.S.A. 74-3297 and
36       amendments thereto.
37           Sec. 13. K.S.A. 1997 Supp. 74-3295 is hereby amended to read as
38       follows: 74-3295. (a) Except as provided in K.S.A. 74-3296 and amend-
39       ments thereto, recipients of a forgivable loan received prior to July 1,
40       1998, formerly called a ``scholarship'', upon the failure of any person such
41       recipient to satisfy the obligation under any agreement entered into pur-
42       suant to the nursing student scholarship forgivable loan program, such
43       person shall pay to the executive officer an amount equal to the total

HB 2753

15

  1       amount of money received by such person pursuant to such agreement
  2       which was financed by the state of Kansas plus annual interest at a rate
  3       of 15% and shall pay to the sponsor an amount equal to the total amount
  4       of money received by such person pursuant to such agreement which was
  5       financed by the sponsor plus annual interest at a rate of 15%. Installment
  6       payments of any such amounts may be made in accordance with the
  7       provisions of agreements entered into by the scholarship recipient and
  8       the sponsor or if no such provisions exist in such agreements, in accor-
  9       dance with rules and regulations of the state board of regents, except that
10       such installment payments shall commence six months after the date of
11       the action or circumstances that cause the failure of the person to satisfy
12       the obligations of such agreements, as determined by the executive officer
13       based upon the circumstances of each individual case. Amounts paid un-
14       der this section to the executive officer shall be deposited in the nursing
15       student scholarship repayment fund in accordance with K.S.A. 74-3298
16       and amendments thereto shall be governed by the statutory provisions in
17       effect at the time the agreement was entered into.
18           (b) Recipients of a forgivable loan received after June 30, 1998, who
19       fail to satisfy the obligation under any agreement entered into pursuant
20       to the nursing student forgivable loan program shall be required to repay
21       all money received pursuant to this act. At such time, the account shall
22       be turned over to a designated lender or loan servicer; the state not being
23       involved other than to receive quarterly payments from the loan servicer
24       at a variable interest rate in an amount equal to the average yield before
25       taxes received on 52-week United States treasury bills as determined by
26       the federal reserve banks as fiscal agents of the United States at its most
27       recent public offering of such bills prior to the time of such payment.
28           Sec. 14. K.S.A. 1997 Supp. 74-3296 is hereby amended to read as
29       follows: 74-3296. (a) Except as otherwise specified ;n the agreement with
30       the sponsor, an obligation under any agreement entered into under the
31       nursing student scholarship forgivable loan program shall be postponed:
32       (1) During any required period of active military service; (2) during any
33       period of service as a part of volunteers in service to America (VISTA);
34       (3) during any period of service in the peace corps; (4) during any period
35       of service commitment to the United States public health service; (5)
36       during any period of religious missionary work conducted by an organi-
37       zation exempt from tax under subsection (c) of section 501 of the internal
38       revenue code of 1986 as in effect on January 1, 1989; (6) during any period
39       of temporary medical disability during which the person obligated is un-
40       able because of such medical disability to practice professional nursing;
41       or (7) during any period of time the person obligated is enrolled and
42       actively engaged on a full-time basis in a course of study leading to a
43       degree in the field of nursing which is higher than that attained formerly

HB 2753

16

  1       by the person obligated. Except for clause (6) of this subsection (a), an
  2       obligation under any agreement entered into under the nursing student
  3       scholarship forgivable loan program shall not be postponed more than
  4       five years from the time the obligation was to have been commenced
  5       under any such agreement. An obligation under any agreement under the
  6       nursing student scholarship forgivable loan program shall be postponed
  7       under clause (6) of this subsection (a) during the period of time the med-
  8       ical disability exists. Except for clause (1) or clause (6) of this subsection
  9       (a), an obligation under any agreement entered into under the nursing
10       scholarship forgivable loan program shall not be postponed unless the
11       postponement is approved by the sponsor or is otherwise provided for in
12       the agreement with the sponsor.
13           (b) An obligation under any agreement under the nursing student
14       scholarship forgivable loan program shall be satisfied: (1) If the obligation
15       in accordance with an agreement under the nursing student scholarship
16       forgivable loan program has been verified as completed; (2) if the person
17       obligated dies; (3) if, because of permanent physical disability, the person
18       obligated is unable to satisfy the obligation; (4) if the person obligated
19       fails to satisfy the requirements for graduation from the school of nursing
20       after making the best effort possible to do so; or (5) if the person obligated
21       fails to satisfy all requirements for a permanent license to practice nursing
22       in Kansas or has been denied a license after applying for a license and
23       making the best effort possible to obtain such license; (6) if, because of
24       bankruptcy, loss of licensure or certification or other failure in the op-
25       erations of the sponsor, the sponsor cannot or will not employ the person
26       obligated; or (7) if the sponsor releases the person obligated from em-
27       ployment with the sponsor and the person obligated otherwise completes
28       the terms, conditions and obligations of the agreement under the nursing
29       student scholarship program by engaging in the practice of nursing in
30       Kansas.
31           Sec. 15. K.S.A. 74-3297 is hereby amended to read as follows: 74-
32       3297. The state board of regents, after consultation with the committee,
33       ;(male symbol)y shall adopt rules and regulations establishing minimum terms, con-
34       ditions and obligations which shall be incorporated into the provisions of
35       any agreement entered into between a sponsor and by the recipient of a
36       scholarship forgivable loan under the nursing student scholarship forgiv-
37       able loan program. The terms, conditions and obligations shall be consis-
38       tent with the provisions of law relating to the nursing student scholarship
39       forgivable loan program. The terms, conditions and obligations so estab-
40       lished shall include, but not be limited to, the terms of eligibility for
41       financial assistance under the nursing student scholarship forgivable loan
42       program, the amount of financial assistance to be offered, the length of
43       employment with the sponsor as a full-time professional nurse in Kansas

HB 2753

17

  1       required as a condition to the receipt of such financial assistance, the
  2       circumstances under which such employment obligation may be dis-
  3       charged or forgiven, the amount of money required to be repaid because
  4       of failure to satisfy the obligations under an agreement and the method
  5       of repayment and such other additional provisions as may be necessary
  6       to carry out the provisions of the nursing student scholarship forgivable
  7       loan program. The state board of regents, after consultation with the
  8       committee, shall adopt rules and regulations establishing criteria for eval-
  9       uating the financial need of applicants for scholarships and may adopt
10       such other rules and regulations forgivable loans as may be necessary to
11       administer the nursing student scholarship forgivable loan program.
12           Sec. 16. K.S.A. 1997 Supp. 74-3298 is hereby amended to read as
13       follows: 74-3298. (a) There is hereby created in the state treasury the
14       nursing student scholarship forgivable loan program fund. The executive
15       officer shall remit all moneys received from sponsors, which are paid
16       under K.S.A. 74-3294 and amendments thereto pursuant to scholarship
17       awards, or from a school of nursing, which are paid because of nonat-
18       tendance or discontinued attendance by scholarship forgivable loan re-
19       cipients and which are attributable to sponsors, under the nursing student
20       scholarship forgivable loan program to the state treasurer at least
21       monthly. Upon receipt of each such remittance, the state treasurer shall
22       deposit the entire amount thereof in the state treasury and such amount
23       shall be credited to the nursing student scholarship forgivable loan pro-
24       gram fund. All expenditures from the nursing student scholarship forgiv-
25       able loan program fund shall be for scholarships forgivable loans awarded
26       under the nursing student scholarship forgivable loan program or refunds
27       to sponsors and shall be made in accordance with appropriation acts upon
28       warrants of the director of accounts and reports issued pursuant to vouch-
29       ers approved by the executive officer or by a person designated by the
30       executive officer.
31           (b) There is hereby created in the state treasury the nursing student
32       scholarship discontinued attendance fund. The executive officer shall re-
33       mit all moneys received under the nursing student scholarship program
34       from a school of nursing, which are paid because of nonattendance or
35       discontinued attendance by scholarship recipients and which are attrib-
36       utable to sources other than sponsors, to the state treasurer at least
37       monthly. Upon receipt of each such remittance the state treasurer shall
38       deposit the entire amount thereof in the state treasury, and such amount
39       shall be credited to the nursing student scholarship discontinued atten-
40       dance fund. All expenditures from the nursing student scholarship dis-
41       continued attendance fund shall be for scholarships awarded under the
42       nursing student scholarship program and shall be made in accordance
43       with appropriation acts upon warrants of the director of accounts and

HB 2753

18

  1       reports issued pursuant to vouchers approved by the executive officer or
  2       by a person designated by the executive officer.
  3           (c) There is hereby created in the state treasury the nursing student
  4       scholarship forgivable loan repayment fund. The executive officer shall
  5       remit all moneys received for amounts paid under K.S.A. 74-3295 and
  6       amendments thereto, to the state treasurer at least monthly. Upon receipt
  7       of each such remittance the state treasurer shall deposit the entire amount
  8       thereof in the state treasury, and such amount shall be credited to the
  9       nursing student scholarship forgivable loan repayment fund. All expend-
10       itures from the nursing student scholarship forgivable loan repayment
11       fund shall be for scholarships forgivable loans awarded under the nursing
12       student scholarship forgivable loan program and shall be made in ac-
13       cordance with appropriation acts upon warrants of the director of ac-
14       counts and reports issued pursuant to vouchers approved by the executive
15       officer or by a person designated by the executive officer.
16           Sec. 17. K.S.A. 74-3299 is hereby amended to read as follows: 74-
17       3299. (a) There is hereby created the nursing scholarship forgivable loan
18       review committee which shall consist of the following members appointed
19       by the governor: One member representing Kansas hospitals; one mem-
20       ber representing Kansas adult care homes; one member representing
21       Kansas registered nurses; one member representing nursing education
22       programs other than at a college or university under the control and
23       supervision of the state board of regents; and the chief executive officer
24       of a college or university under the control and supervision of the state
25       board of regents which college or university has a school of nursing.
26           (b) The members of the nursing scholarship forgivable loan review
27       committee appointed by the governor shall be appointed for three-year
28       terms and until their successors are appointed and qualified. Upon the
29       vacancy of a position on the committee appointed by the governor, the
30       governor shall appoint a person of like qualifications to fill such position.
31       If a vacancy occurs prior to the expiration of a term, the governor shall
32       appoint a person of like qualifications to fill such position for the unex-
33       pired term.
34           (c) The nursing scholarship forgivable loan review committee shall
35       elect annually from among its members a chairperson. The committee
36       shall meet on the call of the chairperson or upon the request of a majority
37       of the members of the committee. A majority of the members of the
38       committee shall constitute a quorum.
39           (d) The nursing scholarship forgivable loan review committee shall
40       provide oversight of the nursing student scholarship forgivable loan pro-
41       gram and shall be advisory to the executive officer and the state board of
42       regents in the administration of such program. The committee shall ex-
43       ercise such other powers and duties as may be specified by law.

HB 2753

19

  1           (e) The executive officer and other office staff of the state board of
  2       regents shall provide staff assistance to the nursing scholarship forgivable
  3       loan review committee.
  4           (f) The members of the nursing scholarship forgivable loan review
  5       committee who are not state officers or employees and who are attending
  6       meetings of such committee, or attending a subcommittee meeting
  7       thereof authorized by such committee, shall be paid amounts provided
  8       in subsection (e) of K.S.A. 75-3223 and amendments thereto. Amounts
  9       paid under this subsection (f) shall be from appropriations to the state
10       board of regents upon warrants of the director of accounts and reports
11       issued pursuant to vouchers approved by the executive officer or a person
12       designated by the executive officer.
13           Sec. 18. K.S.A. 74-32,100 is hereby amended to read as follows:
14       74-32,100. This act shall be known and may be cited as the teacher schol-
15       arship forgivable loan program.
16           Sec. 19. K.S.A. 74-32,101 is hereby amended to read as follows:
17       74-32,101. As used in this act:
18           (a) ``Executive officer'' means the executive officer of the state board
19       of regents appointed under K.S.A. 74-3203, and amendments thereto;
20           (b) ``qualified student'' means a person who: (1) Is a resident of the
21       state of Kansas; (2) has been accepted for admission to or is enrolled full
22       time in a course of instruction leading to certification in a hard-to-fill
23       teaching discipline; and (3) has qualified for the award of a scholarship
24       forgivable loan under the teacher scholarship forgivable loan program on
25       the basis of having demonstrated scholastic ability, or who has previously
26       so qualified and remains qualified for renewal of the scholarship forgiv-
27       able loan on the basis of remaining in good standing and making satisfac-
28       tory progress toward completion of the requirements of the course of
29       instruction in which enrolled;
30           (c) ``hard-to-fill teaching discipline'' means a teaching discipline in
31       which there is a critical shortage of teachers as determined and specified
32       by the state board of education.
33           Sec. 20. K.S.A. 74-32,102 is hereby amended to read as follows:
34       74-32,102. (a) There is hereby established the teacher scholarship forgiv-
35       able loan program. A scholarship forgivable loan may be awarded under
36       the teacher scholarship forgivable loan program to any qualified student
37       and may be renewed for each such student who remains qualified for the
38       scholarship forgivable loan. The number of new scholarships forgivable
39       loans awarded under the program in each year shall not exceed 50. De-
40       termination of the students qualified for such scholarships forgivable
41       loans shall be made by the executive officer. Scholastic ability shall be
42       determined on the basis of any one or more of the following: (1) High
43       ACT or SAT score; (2) rank in high school graduation class; (3) cumulative

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  1       high school or college grade point average; or (4) any other indicator of
  2       scholastic ability which the state board of regents determines to be de-
  3       monstrative of potential for successful completion of a course of instruc-
  4       tion leading to certification in a hard-to-fill teaching discipline. To the
  5       extent practicable and consistent with qualification factors, consideration
  6       shall be given to students who are members of ethnic minority groups.
  7           (b) A scholarship forgivable loan awarded under the program shall
  8       provide for payment to a qualified student of a stipend in the amount of
  9       $5,000 for an academic year. A qualified student may be awarded a schol-
10       arship forgivable loan for not more than four academic years of under-
11       graduate study, except that a qualified student who is enrolled full time
12       in a course of instruction leading to certification in a hard-to-fill teaching
13       discipline for which graduate study is required may be awarded a schol-
14       arship forgivable loan for the duration of the course of instruction.
15           Sec. 21. K.S.A. 74-32,103 is hereby amended to read as follows:
16       74-32,103. (a) An applicant for designation as a qualified student and for
17       the award of a scholarship forgivable loan under the teacher scholarship
18       forgivable loan program shall provide to the executive officer, on forms
19       supplied by the executive officer, information required by the executive
20       officer.
21           (b) As a condition to awarding a scholarship forgivable loan under
22       this act, the executive officer and the applicant shall enter into an agree-
23       ment which shall require the applicant to:
24           (1) Complete the required course of instruction leading to certifica-
25       tion in a hard-to-fill teaching discipline;
26           (2) engage in teaching in a hard-to-fill teaching discipline in Kansas
27       and comply with such other terms and conditions as may be specified by
28       such agreement;
29           (3) commence teaching in a hard-to-fill teaching discipline in Kansas
30       in an accredited public or private elementary or secondary school in ac-
31       cordance with the agreement, which shall be for a period of not less than
32       the length of the course of instruction for which the scholarship forgivable
33       loan was awarded;
34           (4) maintain records and make reports to the executive officer as re-
35       quired by the executive officer to document the satisfaction of the obli-
36       gations under this act and the agreement; and
37           (5) upon failure to satisfy an agreement to engage in teaching in a
38       hard-to-fill teaching discipline for the required period of time under any
39       such agreement, repay to the state amounts as provided in K.S.A. 74-
40       32,104, and amendments thereto.
41           Sec. 22. K.S.A. 1997 Supp. 74-32,104 is hereby amended to read as
42       follows: 74-32,104. (a) Except as provided in K.S.A. 74-32,105 and
43       amendments thereto, after June 30, 1998, upon ;(tri-stars)e a recipient's failure

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  1       of any person to satisfy the obligation under any agreement entered into
  2       pursuant to the teacher scholarship forgivable loan program, such person
  3       shall pay to the executive officer an amount equal to the total amount of
  4       money received by such person pursuant to such agreement plus annual
  5       interest at a rate of 15%, the account shall be turned over to a designated
  6       lender or loan servicer; the state not being involved other than to receive
  7       quarterly payments from the loan servicer. The forgiven loans shall be
  8       adjusted proportionately for full years of the obligation that have been
  9       verified as satisfied. Installment payments of any such amounts may be
10       made in accordance with the provisions of the agreement entered into by
11       the scholarship recipient or if no such provisions exist in such agreement,
12       in accordance with rules and regulations of the state board of regents,
13       except that such installment payments shall commence six months after
14       the date of the action or circumstances that cause the failure of the person
15       to satisfy the obligations of such agreements, as determined by the ex-
16       ecutive officer based upon the circumstances of each individual case. The
17       balance of the forgiven loans plus accumulated interest due shall be repaid
18       at a variable interest rate in an amount equal to the average yield before
19       taxes received on 52-week United States treasury bills as determined by
20       the federal reserve banks as fiscal agents of the United States at its most
21       recent public offering of such bills prior to the time of such payment.
22       Amounts paid under this section to the executive officer shall be depos-
23       ited in the teacher scholarship forgivable loan repayment fund in accor-
24       dance with K.S.A. 74-32,107 and amendments thereto.
25           (b) All Kansas students entering into a forgivable loan agreement,
26       previously called a ``scholarship'', under the provisions of this act prior
27       to July l, 1998, shall be governed by the statutory provisions in effect at
28       the time the agreement was entered into.
29           Sec. 23. K.S.A. 74-32,105 is hereby amended to read as follows:
30       74-32,105. (a) Except as otherwise specified in the agreement, an obli-
31       gation under any agreement entered into under the teacher scholarship
32       forgivable loan program shall be postponed: (1) During any required pe-
33       riod of active military service; (2) during any period of temporary medical
34       disability during which the person obligated is unable because of such
35       medical disability to teach a hard-to-fill teaching discipline; or (3) during
36       any period of time the person obligated is enrolled and actively engaged
37       on a full-time basis in a course of study leading to a degree in education
38       as a hard-to-fill teaching discipline which is higher than that attained
39       formerly by the person obligated. Except for clause (2) of this subsection
40       (a), an obligation under any agreement entered into under the teacher
41       scholarship forgivable loan program shall not be postponed more than
42       five years from the time the obligation was to have been commenced
43       under any such agreement. An obligation under any agreement under the

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  1       teacher scholarship forgivable loan program shall be postponed under
  2       clause (2) of this subsection (a) during the period of time the medical
  3       disability exists. Except for clause (1) or clause (2) of this subsection (a),
  4       an obligation under any agreement entered into under the teacher schol-
  5       arship forgivable loan program shall not be postponed unless the post-
  6       ponement is provided for in the agreement.
  7           (b) An obligation under any agreement under the teacher scholarship
  8       forgivable loan program shall be satisfied: (1) If the obligation in ac-
  9       cordance with an agreement under the scholarship forgivable loan pro-
10       gram has been verified as completed; (2) if the person obligated dies; (3)
11       if, because of permanent physical disability, the person obligated is unable
12       to satisfy the obligation; or (4) if the person obligated fails to satisfy all
13       requirements to enable the recipient to teach a hard-to-fill teaching dis-
14       cipline after making the best effort possible.
15           Sec. 24. K.S.A. 74-32,106 is hereby amended to read as follows:
16       74-32,106. The state board of regents shall adopt rules and regulations
17       for administration of the teacher scholarship forgivable loan program and
18       shall establish terms, conditions and obligations which shall be incorpo-
19       rated into the provisions of any agreement entered into between the ex-
20       ecutive officer and an applicant for the award of a scholarship forgivable
21       loan under the program. The terms, conditions and obligations shall be
22       consistent with the provisions of law relating to the program and shall
23       include, but not be limited to, the circumstances under which eligibility
24       for financial assistance under the program may be terminated, the amount
25       of financial assistance to be provided, the circumstances under which
26       obligations may be discharged or forgiven, the amount of money required
27       to be repaid because of failure to satisfy the obligations under an agree-
28       ment and the method of repayment.
29           Sec. 25. K.S.A. 1997 Supp. 74-32,107 is hereby amended to read as
30       follows: 74-32,107. (a) There is hereby created in the state treasury the
31       teacher scholarship forgivable loan program fund. The executive officer
32       shall remit all moneys received under the teacher scholarship forgivable
33       loan program, which are paid because of nonattendance or discontinu-
34       ance by scholarship forgivable loan recipients, to the state treasurer at
35       least monthly. Upon receipt of each such remittance the state treasurer
36       shall deposit the entire amount thereof in the state treasury, and such
37       amount shall be credited to the teacher scholarship forgivable loan pro-
38       gram fund. All expenditures from the teacher scholarship forgivable loan
39       program fund shall be for scholarships forgivable loans awarded under
40       the teacher scholarship forgivable loan program and shall be made in
41       accordance with appropriation acts upon warrants of the director of ac-
42       counts and reports issued pursuant to vouchers approved by the executive
43       officer or by a person designated by the executive officer.

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  1           (b) There is hereby created in the state treasury the teacher schol-
  2       arship forgivable loan repayment fund. The executive officer shall remit
  3       all moneys received under the teacher scholarship forgivable loan pro-
  4       gram, which are for payment of amounts pursuant to K.S.A. 74-32,104
  5       and amendments thereto, to the state treasurer at least monthly. Upon
  6       receipt of each such remittance the state treasurer shall deposit the entire
  7       amount thereof in the state treasury, and such amount shall be credited
  8       to the teacher scholarship forgivable loan repayment fund. All expendi-
  9       tures from the teacher scholarship forgivable loan repayment fund shall
10       be for scholarships forgivable loans awarded under the teacher scholar-
11       ship forgivable loan program and shall be made in accordance with ap-
12       propriation acts upon warrants of the director of accounts and reports
13       issued pursuant to vouchers approved by the executive officer or by a
14       person designated by the executive officer.
15           Sec. 26. K.S.A. 74-3246, 74-3247, 74-3248, 74-3267a, 74-3268a, 74-
16       3269, 74-3271, 74-3272, 74-3291, 74-3293, 74-3294, 74-3297, 74-3299,
17       74-32,100, 74-32,101, 74-32,102, 74-32,103, 74-32,105 and 74-32,106 and
18       K.S.A. 1997 Supp. 74-3265, 74-3266, 74-3267, 74-3292, 74-3295, 74-
19       3296, 74-3298, 74-32,104 and 74-32,107 are hereby repealed.
20           Sec. 27. This act shall take effect and be in force from and after its
21       publication in the statute book.
22      
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