CHAPTER 151
HOUSE BILL No. 2014
An  Act concerning higher education; relating to professional service scholarships for pro-
spective osteopaths, optometrists, nurses, teachers and national guard officers; amending
K.S.A. 74-3267a, 74-3268, 74-3268a, 74-3271, 74-3272, 74-3273, 74-3291, 74-3293, 74-
3294, 74-3297, 74-3299, 74-32,100, 74-32,101, 74-32,102, 74-32,103, 74-32,105 and 74-
32,106 and K.S.A. 2000 Supp. 74-3256, 74-3257, 74-3258, 74-3259, 74-3260, 74-3265,
74-3266, 74-3267, 74-3292, 74-3295, 74-3296, 74-3298, 74-32,104, 74-32,107, 74-
32,112, 74-32,113, 74-32,114, 74-32,115, 74-32,116, 74-32,117, 74-32,118, 74-32,131,
74-32,132, 74-32,133, 74-32,134, 74-32,135, 74-32,136, 74-32,137 and 74-32,138 and
repealing the existing sections; also repealing K.S.A. 74-3223, 74-3224, 74-3225, 74-
3226, 74-3227, 74-3228, 74-3246, 74-3247, 74-3248 and 74-3269.

Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2000 Supp. 74-3265 is hereby amended to read as
follows: 74-3265. (a) Within the limits of appropriations therefor for os-
teopathic medical service scholarships, and in accordance with the pro-
visions of this section, the state board of regents may award such schol-
arships in accordance with the provisions of this section to Kansas
residents who are undergraduate students enrolled in or admitted to ac-
credited schools of osteopathic medicine in a course of instruction leading
to the degree of doctor of osteopathy and who enter into a written agree-
ment with the state board of regents as provided in accordance with
K.S.A. 74-3266, and amendments thereto.

      (b) Osteopathic medical service scholarships awarded under this sec-
tion shall be in effect during for the period of time provided specified in
subsection (c) and shall provide to the person receiving the scholarship
the payment of all tuition and required fees for one year up to a maximum
of $15,000 an amount not to exceed the maximum amount of a loan au-
thorized to be made under the medical student loan act.

      (c) Osteopathic medical service scholarships awarded under this sec-
tion shall be awarded on an annual basis and shall be in effect for one
year unless otherwise terminated before the expiration of such period of
time. A Kansas resident who is an undergraduate student enrolled in or
admitted to an accredited school of osteopathic medicine in a course of
instruction leading to the degree of doctor of osteopathy may be awarded
a separate scholarship for each separate year the student enters into a
written agreement with the state board of regents under as provided in
K.S.A. 74-3266, and amendments thereto, up to a maximum of four years.
For each separate year a student is awarded a scholarship under this
section, the student shall engage in the full-time practice of medicine and
surgery in Kansas for a the period of 12 months time specified in subsec-
tion (a)(3) of K.S.A. 74-3266, and amendments thereto, unless such ob-
ligation is otherwise satisfied as provided in K.S.A. 74-3268, and amend-
ments thereto.

      (d) The state board of regents shall not award more than 15 osteo-
pathic medical service scholarships in any year to persons who have not
previously been awarded such a scholarship under this section and, in any
case, the state board shall not award more than 60 such scholarships under
this section in any year. In selecting Kansas residents to be awarded os-
teopathic medical service scholarships under this section, the state board
shall first consider give primary consideration to students commencing
their first year of instruction at accredited schools of osteopathic medicine
and thereafter shall consider students in later years of instruction.

      Sec.  2. K.S.A. 2000 Supp. 74-3266 is hereby amended to read as
follows: 74-3266. (a) An agreement entered into by the state board of
regents and a Kansas resident who is an undergraduate student enrolled
in or admitted to an accredited school of osteopathic medicine in a course
of instruction leading to the degree of doctor of osteopathy for the award-
ing of a an osteopathic medical service scholarship under K.S.A. 74-3265
and amendments thereto shall require that the person receiving the schol-
arship:

      (1) Complete the required course of instruction and receive the de-
gree of doctor of osteopathy;

      (2) apply for and obtain a license to practice medicine and surgery in
Kansas;

      (3) except as otherwise provided in subsection (c), engage in the full-
time practice of medicine and surgery in Kansas on a full-time basis for
a period of 12 months in Kansas for each year a scholarship was received
or on a part-time basis for a period equivalent to 12 months, as determined
by the state board of regents, for each year a scholarship was received;

      (4)  (A) with regard to persons entering into agreements entered into
prior to July 1, 1993 the effective date of this act, commence such full-
time or part-time practice of medicine and surgery within nine months
after licensure or within nine months after completion of a an approved
postgraduate residency training program and licensure, whichever is
later, and continue such full-time practice in Kansas for a consecutive
period of months equal to the total number of months required under
the agreement;

      (B) with regard to persons entering into agreements entered into af-
ter July 1, 1993 the effective date of this act, commence such full-time or
part-time practice of medicine and surgery within nine six months after
licensure or within nine six months after completion of an approved post-
graduate residency training program as defined in this section and licen-
sure, whichever is later, and continue such full-time practice in Kansas
for a consecutive period of months equal to the total number of months
required under the agreement;

      (5) agree that the service commitment for each agreement entered
into under this section is in addition to the service commitment contained
in any other agreement which has been or may be entered into under
this section for the purpose of obtaining scholarship aid;

      (6) maintain records and make reports to the state board of regents
to document the satisfaction of the obligation under such agreement to
engage in the full-time or part-time practice of medicine and surgery in
Kansas and to continue such full-time practice for a consecutive period
of months equal to the total number of months required under the agree-
ment; and

      (7) repay amounts to the state board of regents as provided in K.S.A.
74-3267, and amendments thereto, upon failure to satisfy an agreement
to engage in the full-time or part-time practice of medicine and surgery
in Kansas for the required period of time under any such agreement, the
person receiving a scholarship under K.S.A. 74-3265 and amendments
thereto shall repay amounts to the state board of regents as provided in
K.S.A. 74-3267 and amendments thereto entered into as provided in this
section.

      (b)  (1) Each Kansas student who enters into an agreement under this
section after June 30, 1988, shall serve the practice obligations incurred
by such student under such agreement within an area of the state des-
ignated as a service commitment area I pursuant to K.S.A. 76-375 and
amendments thereto. Such student shall select a service commitment area
I in accordance with the provisions of K.S.A. 76-375 and amendments
thereto and shall be subject to the provisions of subsections (c) and (d)
of such K.S.A. 76-375 and amendments thereto in the same manner and
to the same effect as a person required to engage in the full-time practice
of medicine and surgery in a service commitment area I pursuant to any
agreement under K.S.A. 76-373 through 76-377a and amendments
thereto, except that in lieu of informing or notifying the university of
Kansas school of medicine of certain matters under the provisions of
subsections (c) and (d) of such K.S.A. 76-375 and amendments thereto
such student shall inform and notify the state board of regents thereof.

      (2) Except as otherwise provided in subsection (c), each Kansas stu-
dent who enters into an agreement under as provided in this section after
June 30, 1993, shall serve the practice obligations incurred by such stu-
dent under such the agreement in any county of this state other than
Douglas, Johnson, Sedgwick, Shawnee or Wyandotte counties a rural
area or a medically underserved area.

      (c)  (1) A person awarded a an osteopathic medical service scholarship
in accordance with the provisions of K.S.A. 74-3265 through 74-3268 and
amendments thereto may satisfy the obligation to engage in the practice
of medicine and surgery, under an agreement entered into pursuant to
this section, even though such person is engaged in practice in an area
not designated a rural area or a medically underserved area by specialty,
or a critically medically underserved area by specialty, or is engaged in
practice in Douglas, Johnson, Sedgwick, Shawnee or Wyandotte counties,
through employment by the state of Kansas on a part-time basis by the
state of Kansas, which employment has been approved by the state board
of regents, for the practice of medicine and surgery at any state medical
care facility or institution.

      (d) (2) For all the purposes under of this section subsection, service
or employment after June 30, 1988, on a part-time basis at a state medical
care facility or institution shall be on the a part-time basis of at least the
equivalent of 1/2 time in order to shall satisfy practice obligations under
the obligation to engage in the full-time practice of medicine and surgery
in Kansas for a period of 12 months for each year a scholarship was
received as provided in an agreement entered into under this section.

      (e) (d) As used in this section and K.S.A. 74-3267 and amendments
thereto For the purposes of the osteopathic medical service scholarship
program (1) ``state medical care facility or institution'' has the meaning
ascribed thereto by in subsection (k) of K.S.A. 76-375, and amendments
thereto; and (2) ``approved postgraduate residency training program''
means a residency training program in general pediatrics, general internal
medicine, pediatrics, family medicine, family practice, obstetrics and gy-
necology, or emergency medicine; (3) ``medically underserved area''
means a practice location designated medically underserved by the state
board of regents; and (4) ``rural area'' means any county of this state other
than Douglas, Johnson, Sedgwick, Shawnee and Wyandotte counties.

      Sec.  3. K.S.A. 2000 Supp. 74-3267 is hereby amended to read as
follows: 74-3267. (a) (1) Except as otherwise provided in K.S.A. 74-3268,
and amendments thereto, upon the failure of any person to satisfy the
obligation to engage in the full-time or part-time practice of medicine
and surgery within the state of Kansas for the required period of time
under any an agreement entered into pursuant to as provided in K.S.A.
74-3265 and 74-3266, and amendments thereto, such person shall repay
to the state board of regents an amount equal to the total of (1) the
amount of money received by such person pursuant to such agreement
plus (2) annual accrued interest at a rate of 15% from the date such money
was received at a rate which is equivalent to the interest rate applicable
to loans made under the federal PLUS program at the time such person
first entered into an agreement plus five percentage points.

      (2) Any person who applies for and enters a postgraduate residency
training program that is not an approved program as provided in this
section shall be required to repay all moneys received pursuant to as
provided in an agreement entered into for any scholarship awarded under
K.S.A. 74-3265 74-3266, and amendments thereto, plus accumulated ac-
crued interest at an annual rate of 15% from the date such moneys were
received at a rate which is equivalent to the interest rate applicable to
loans made under the federal PLUS program at the time such person first
entered into an agreement plus five percentage points and shall commence
such repayment in accordance with subsection (b) within 90 days of grad-
uation from the school of osteopathic medicine or upon termination or
completion of a residency training program which does not comply with
the provisions of this act, whichever is later.

      (3) Any person who enters and completes an approved postgraduate
residency training program but fails to satisfy the obligation to engage in
the full-time or part-time practice of medicine and surgery within a serv-
ice commitment area of this state for the required period of time shall
be required to repay all money received pursuant to an agreement en-
tered into for any scholarship awarded under K.S.A. 74-3865 74-3266,
and amendments thereto, plus accumulated accrued interest at an annual
rate of 15% from the date such money was received at a rate which is
equivalent to the interest rate applicable to loans made under the federal
PLUS program at the time such person first entered into an agreement
plus five percentage points and shall commence such repayment in ac-
cordance with subsection (b) within 90 days of failure to commence qual-
ifying practice satisfy the obligation.

      (b) Each person required to repay any amount under this section shall
repay an amount totaling the entire amount to be repaid under all such
agreements for which such obligations are not satisfied, including all
amounts of interest at the rate prescribed. Except as otherwise provided
in this section, such repayment shall be in installment payments and each
such installment shall be not less than the an amount equal to 1/5 of the
total amount which would be required to be paid if repaid in five equal
annual installments.

      (c) Except as otherwise provided in this section subparts (2) and (3)
of subsection (a), all installment payments under this section shall com-
mence six months after the date of the action or circumstance that causes
the failure of the person to satisfy the obligations of such agreements, as
determined by the state board of regents based upon the circumstances
of each individual case. If an installment payment becomes 91 days over-
due, the entire amount outstanding shall become immediately due and
payable, including all amounts of interest at the rate prescribed.

      (d) The total repayment obligation imposed under all agreements en-
tered into under as provided in K.S.A. 74-3266, and amendments thereto,
may be satisfied at any time prior to graduation from the accredited school
of osteopathic medicine by making a single lump sum payment equal to
the total of (1) the entire amount to be repaid under all such agreements
upon failure to satisfy the obligations under such agreements to practice
in Kansas, plus (2) all amounts of interest accrued thereon at the rate
prescribed to the date of payment under this section.

      (e) The state board of regents is authorized to turn any repayment
account arising under the osteopathic medical service scholarship pro-
gram over to a designated loan servicer or collection agency, the state not
being involved other than to receive payments from the loan servicer or
collection agency at the interest rate prescribed under this section.

      Sec.  4. K.S.A. 74-3267a is hereby amended to read as follows: 74-
3267a. There is hereby created in the state treasury the osteopathic med-
ical service scholarship repayment fund. The state board of regents shall
remit all moneys received under K.S.A. 74-3247, 74-3248 and 74-3267,
and amendments thereto, to the state treasurer at least monthly. Upon
receipt of each such remittance the state treasurer shall deposit the entire
amount thereof in the state treasury, and such amount shall be credited
to the osteopathic medical service scholarship repayment fund. All ex-
penditures from the osteopathic medical service scholarship repayment
fund shall be for osteopathic medical service scholarships under K.S.A.
74-3265 and amendments thereto, and shall be made in accordance with
appropriation acts upon warrants of the director of accounts and reports
issued pursuant to vouchers approved by the executive officer of the state
board of regents or a person designated by the executive officer.

      Sec.  5. K.S.A. 74-3268 is hereby amended to read as follows: 74-
3268. (a) An obligation to engage in the practice of medicine and surgery
in accordance with an agreement under K.S.A. 74-3266, and amendments
thereto, shall be postponed: (1) During any required period of active
military service; (2) during any period of service as a part of volunteers
in service to America (VISTA); (3) during any period of service in the
peace corps; (4) during any period of service commitment to the United
States public health service; (5) during any period of religious missionary
work conducted by an organization exempt from tax under subsection (c)
of section 501(c)(3) of the federal internal revenue code of 1954, as
amended as in effect on December 31, 2000; (6) during the any period of
time the person obligated is engaged solely in the teaching of medicine;
(7) during the any period of time the person obligated is engaged solely
in medical research; or (8) during any period of temporary medical dis-
ability during which time the person obligated is unable because of such
temporary medical disability to practice medicine and surgery; (9) during
any period of time the person obligated is on job-protected leave under
the federal family and medical leave act of 1993; or (10) during any period
of time the state board of regents determines that the person obligated is
unable because of special circumstances to practice medicine and surgery.
Except for clause clauses (8) of this subsection (a), (9) and (10), an obli-
gation to engage in the practice of medicine and surgery in accordance
with an agreement under K.S.A. 74-3266, and amendments thereto, shall
not be postponed more than five years from the time the practice of
medicine and surgery was to have been commenced under any such
agreement. An obligation to engage in the practice of medicine and sur-
gery in accordance with an agreement under K.S.A. 74-3266, and amend-
ments thereto, shall be postponed under clause (8) of this subsection (a)
during the period of time the medical disability exists. An obligation to
engage in the practice of medicine and surgery in accordance with an
agreement under K.S.A. 74-3266, and amendments thereto, shall be post-
poned under clause (9) during the period of time the person obligated
remains on FMLA leave. An obligation to engage in the practice of med-
icine and surgery in accordance with an agreement under K.S.A. 74-3266,
and amendments thereto, shall be postponed under clause (10) during the
period of time the state board of regents determines that the special cir-
cumstances exist. The state board of regents shall adopt rules and regu-
lations prescribing criteria or guidelines for determination of the existence
of special circumstances causing an inability to practice medicine and
surgery, and shall determine the documentation required to prove the
existence of such circumstances.

      (b) An obligation to engage in the practice of medicine and surgery
in accordance with an agreement under K.S.A. 74-3266, and amendments
thereto, shall be satisfied: (1) If the obligation to engage in the practice
of medicine and surgery in accordance with an agreement under K.S.A.
74-3266 has been completed in accordance with the agreement; (2) if the
person obligated dies; (3) if, because of permanent physical disability, the
person obligated is unable to practice medicine and surgery; (4) if the
person obligated fails to satisfy the requirements for a degree of doctor
of osteopathy after such person has made their making the best efforts
effort possible to obtain such degree; or (5) if the person obligated fails
to satisfy all requirements for a permanent license to practice medicine
and surgery in Kansas or any other jurisdiction or has been denied a
license after such the person has applied for a license and has made their
the best efforts effort possible to obtain a license.

      Sec.  6. K.S.A. 74-3268a is hereby amended to read as follows: 74-
3268a. If a person fails to satisfy an obligation to engage in the full-time
practice of medicine and surgery in Kansas for the required period of
time under an agreement entered into pursuant to as provided in K.S.A.
74-3223 to 74-3228, inclusive, 74-3246 to 74-3248, inclusive, or 74-3265
to 74-3267, inclusive 74-3266, and amendments thereto, because such
person is engaged in the practice of medicine and surgery in a state other
than Kansas, and if such person is subject to or currently making repay-
ments under any such statutes agreement, and if such person subse-
quently commences the practice of medicine and surgery in this state
which complies in compliance with the agreements entered into under
such statutes agreement, the balance of the repayment amount, including
interest thereon, from the time of such commencement of the practice
of medicine and surgery in this state until the obligation of such person
is satisfied, or until the time such person again becomes subject to re-
payments, shall be waived. All repayment amounts due prior to such com-
mencement of practice in this state, including interest thereon, shall con-
tinue to be payable as provided in such statutes the agreement. If
subsequent to such commencement of practice in this state, the person
fails to satisfy such the obligation to practice for the period of time spec-
ified in the agreement, the person again shall be subject to repayments,
including interest thereon, as otherwise provided in such statutes the
agreement.

      Sec.  7. K.S.A. 74-3271 is hereby amended to read as follows: 74-
3271. An agreement entered into by the state board of regents and a
Kansas resident who is an undergraduate student enrolled in or admitted
to an accredited school or college of optometry pursuant to a contract
which provides for guaranteed admission and continued enrollment of
such person therein and which was entered into for such purpose under
K.S.A. 76-721a, and amendments thereto, shall require that the person:

      (a) Complete the required course of instruction in optometry and
receive the degree therefor;

      (b) apply for and obtain a license to practice optometry in Kansas;

      (c) engage in the full-time practice of optometry in Kansas on a full-
time basis for a period of 12 months in Kansas for each year in which
such person is so enrolled in the school or college of optometry and for
which an annual amount is paid therefor by the state board of regents
therefor pursuant to a contract under K.S.A. 76-721a, and amendments
thereto, or engage in the practice of optometry in Kansas on a part-time
basis for a period equivalent to 12 months, as determined by the state
board of regents, for each year in which such person is enrolled in the
school or college of optometry and for which an annual amount is paid
therefor by the state board of regents pursuant to a contract under K.S.A.
76-721a, and amendments thereto;

      (d)  (1) with regard to persons entering into an agreement prior to
the effective date of this act, commence such full-time or part-time prac-
tice of optometry within nine months after licensure and continue such
full-time practice in Kansas for a consecutive period of months equal to
the total number of months required under the agreement;

      (2) with regard to persons entering into an agreement after the effec-
tive date of this act, commence such full-time or part-time practice of
optometry within six months after licensure and continue such practice
in Kansas for a consecutive period of months equal to the total number
of months required under the agreement;

      (e) maintain records and make reports to the state board of regents
to document the satisfaction of the obligation under such agreement to
engage in the full-time or part-time practice of optometry in Kansas and
to continue such full-time practice for a consecutive period of months
equal to the total number of months required under the agreement; and

      (f) upon failure to satisfy an agreement to engage in the full-time or
part-time practice of optometry in Kansas for the required period of time
under such agreement, repay amounts to the state board of regents as
provided in K.S.A. 74-3272, and amendments thereto.

      Sec.  8. K.S.A. 74-3272 is hereby amended to read as follows: 74-
3272. (a) Except as otherwise provided in subsection (e) and in K.S.A.
74-3273, and amendments thereto, and subsection (e), upon the failure
of any person to satisfy the obligation to engage in the full-time or part-
time practice of optometry within the state of Kansas for the required
period of time under an agreement entered into pursuant to K.S.A. 74-
3271, and amendments thereto, such person shall repay to the state board
of regents an amount equal to the total of (1) the total amount of money
paid by the state board of regents in amounts for guaranteed admission
and continued enrollment of such person in an accredited school or col-
lege of optometry pursuant to a contract entered into therefor under
K.S.A. 76-721a, and amendments thereto, plus (2) annual accrued interest
at a rate of 15% from the date such money was paid pursuant to such
contract at a rate which is equivalent to the interest rate applicable to
loans made under the federal PLUS program at the time such person first
entered into an agreement plus five percentage points.

      (b) Each person required to repay any amount under this section shall
repay an amount totaling the entire amount to be repaid under such
agreement for which such obligation is not satisfied, including all interest
at the rate prescribed. Except as otherwise provided in this section, such
repayment shall be in installment payments and each such installment
shall be not less than the an amount equal to 1/5 of the total amount which
would be required to be paid if repaid in five equal annual installments.

      (c) All installment payments under this section shall commence six
months after the date of the action or circumstance that causes the failure
of the person to satisfy the obligations of such agreement, as determined
by the state board of regents based upon the circumstances of each in-
dividual case. If an installment payment becomes 91 days overdue, the
entire amount outstanding shall become immediately due and payable,
including all interest at the rate prescribed.

      (d) The total repayment obligation imposed under the an agreement
entered into under pursuant to K.S.A. 74-3271, and amendments thereto,
may be satisfied at any time prior to graduation from the accredited school
or college of optometry by making a single lump-sum payment equal to
the total of (1) the entire amount to be repaid under such agreement
upon failure to satisfy the obligation under such agreement to practice
optometry in Kansas, plus (2) all interest thereon at the rate prescribed
to the date of payment.

      (e) If a person fails to satisfy an obligation to engage in the full-time
or part-time practice of optometry in Kansas for the required period of
time under an agreement entered into pursuant to K.S.A. 74-3271, and
amendments thereto, because such person is engaged in the practice of
optometry in a state other than Kansas, and if such person is subject to
or currently making repayments under this section, and if such person
subsequently commences the practice of optometry in this state which
complies with the agreements entered into under such statute, the bal-
ance of the repayment amount, including interest thereon, from the time
of such commencement of practice until the obligation of such person is
satisfied, or until the time such person again becomes subject to repay-
ments, shall be waived. All repayment amounts due prior to such com-
mencement of practice in this state, including interest thereon, shall con-
tinue to be payable as provided in this section. If subsequent to such
commencement of practice, the person fails to satisfy such obligation, the
person again shall be subject to repayments, including interest thereon,
as otherwise provided in this section.

      (f) The state board of regents is authorized to turn any repayment
account arising under the optometry service scholarship program over to
a designated loan servicer or collection agency, the state not being in-
volved other than to receive payments from the loan servicer or collection
agency at the interest rate prescribed under this section.

      Sec.  9. K.S.A. 74-3273 is hereby amended to read as follows: 74-
3273. (a) An obligation to engage in the practice of optometry in accord-
ance with an agreement under K.S.A. 74-3271, and amendments thereto,
shall be postponed: (1) During any required period of active military
service; (2) during any period of service as a part of volunteers in service
to America (VISTA); (3) during any period of service in the peace corps;
(4) during any period of service commitment to the United States public
health service; (5) during any period of religious missionary work con-
ducted by an organization exempt from tax under subsection (c) of section
501(c)(3) of the federal internal revenue code of 1954, as amended as in
effect on December 31, 2000; (6) during the any period of time the person
obligated is engaged solely in the teaching of optometry; (7) during the
any period of time the person obligated is engaged solely in optometric
research; or (8) during any period of time the person obligated is actively
engaged on a full-time basis in an approved postgraduate residency train-
ing program; (9) during any period of temporary medical disability during
which time the person obligated is unable because of such temporary
medical disability to practice optometry; (10) during any period of time
the person obligated is on job-protected leave under the federal family
and medical leave act of 1993; or (11) during any period of time the state
board of regents determines that the person obligated is unable because
of special circumstances to practice optometry. Except for clause (8) of
this subsection (a), clauses (9), (10) and (11), an obligation to engage in
the practice of optometry in accordance with an agreement under K.S.A.
74-3271, and amendments thereto, shall not be postponed more than five
years from the time the practice of optometry was to have been com-
menced under any such agreement. An obligation to engage in the prac-
tice of optometry in accordance with an agreement under K.S.A. 74-3271,
and amendments thereto, shall be postponed under clause (8) (9) of this
subsection (a) during the period of time the medical disability exists. An
obligation to engage in the practice of optometry in accordance with an
agreement under K.S.A. 74-3271, and amendments thereto, shall be post-
poned under clause (10) during the period of time the person obligated
remains on FMLA leave. An obligation to engage in the practice of op-
tometry in accordance with an agreement under K.S.A. 74-3271, and
amendments thereto, shall be postponed under clause (11) during the
period of time the state board of regents determines that the special cir-
cumstances exist. The state board of regents shall adopt rules and regu-
lations prescribing criteria or guidelines for determination of the existence
of special circumstances causing an inability to practice optometry, and
shall determine the documentation required to prove the existence of such
circumstances.

      (b) An obligation to engage in the practice of optometry in accord-
ance with an agreement under K.S.A. 74-3271, and amendments thereto,
shall be satisfied: (1) If the obligation to engage in the practice of optom-
etry in accordance with an agreement under K.S.A. 74-3271, and amend-
ments thereto, has been completed; (2) if the person obligated dies; (3)
if, because of permanent physical disability, the person obligated is unable
to practice optometry; (4) if the person obligated fails to satisfy the
requirements for a degree from an accredited school or college of optom-
etry after such person has made their making the best efforts effort pos-
sible to obtain such degree; or (5) if the person obligated fails to satisfy
all requirements for a permanent license to practice optometry in Kansas
or any other jurisdiction or has been denied a license after such person
has applied for a license and has made their the best efforts effort possible
to obtain a license.

      Sec.  10. K.S.A. 74-3291 is hereby amended to read as follows: 74-
3291. This act shall be known and may be cited as the nursing student
service scholarship program.

      Sec.  11. K.S.A. 2000 Supp. 74-3292 is hereby amended to read as
follows: 74-3292. As used in this act:

      (a) ``Committee'' means the nursing service scholarship review com-
mittee established under K.S.A. 74-3299 and amendments thereto.

      (b) ``Executive officer'' means the chief executive officer of the state
board of regents appointed under K.S.A. 74-3203 2000 Supp. 74-3203a
and amendments thereto.

      (c) ``Rural area'' means any county of this state other than Douglas,
Johnson, Sedgwick, Shawnee and Wyandotte counties.

      (d) ``School of nursing'' means a school within the state of Kansas
which is approved by the state board of nursing to grant a diploma, an
associate degree or a baccalaureate degree in professional nursing or a
certificate of completion in practical nursing.

      (e) ``Sponsor'' means any adult care home licensed under the adult
care home licensure act, any medical care facility licensed under K.S.A.
65-425 et seq. and amendments thereto, any psychiatric hospital licensed
under K.S.A. 75-3307b, and amendments thereto, any home health
agency licensed under K.S.A. 65-5101 et seq. and amendments thereto,
any local health department as defined in K.S.A. 65-241, and amendments
thereto, and any state agency which employs licensed practical nurses or
licensed professional nurses.

      Sec.  12. K.S.A. 74-3293 is hereby amended to read as follows: 74-
3293. (a) There is hereby established the nursing student service schol-
arship program. A scholarship may be awarded under the nursing student
service scholarship program to any qualified nursing student enrolled in
or admitted to a school of nursing in a course of instruction leading to
licensure as a licensed professional nurse or licensed practical nurse. The
number of new scholarships awarded under the nursing student service
scholarship program in each year shall not exceed 250. Of this number,
except as otherwise provided in this section, 100 scholarships shall be
awarded to nursing students whose sponsors are located in rural areas
and who are enrolled in a course of instruction leading to licensure as a
registered professional nurse, 50 scholarships shall be awarded for to
nursing students enrolled in or admitted to a school of nursing operated
by a community college, area vocational-technical school or area voca-
tional school in a course of instruction leading to licensure as a licensed
practical nurse and the remaining 100 scholarships shall be awarded to
any nursing students who have a sponsor and who are enrolled in a course
of instruction leading to licensure as a registered professional nurse. If
all scholarships authorized to be awarded under this section to nursing
students whose sponsors are located in rural areas have not been awarded
by a date established by the state board of regents, the scholarships which
have not been awarded by that date may be awarded to nursing students
who have a sponsor and who are otherwise qualified to be awarded a
scholarship under the nursing student service scholarship program. The
determination of the individuals qualified for such scholarships shall be
made by the executive officer after seeking advice from the committee.
Within each scholarship category prescribed by this subsection, scholar-
ships shall be awarded on a priority basis to qualified applicants who have
the greatest financial need for such scholarships. To the extent practicable
and consistent with the other provisions of this section, consideration shall
be given to minority applicants.

      (b) Scholarships awarded under the nursing student service scholar-
ship program shall be awarded for the length of the course of instruction
leading to licensure as a licensed professional nurse or licensure as a
licensed practical nurse in which the student is enrolled in or admitted
to unless otherwise terminated before the expiration of such period of
time. Such scholarships shall provide to the a nursing student receiving
the scholarship the payment of tuition, fees, books, room and board in
an amount to not exceed the total of $3,500 annually (1) if the nursing
student is enrolled in a school of nursing operated by a state educational
institution, an amount not to exceed 70% of the cost of attendance for an
academic year at the school of nursing in which the nursing student is
enrolled or (2) if the nursing student is enrolled in a school of nursing not
operated by a state educational institution, the lesser of (A) an amount
not to exceed 70% of the cost of attendance for a year at the school of
nursing in which the nursing student is enrolled or (B) an amount not to
exceed 70% of the average amount of the cost of attendance for a year at
the schools of nursing operated by the state educational institutions. The
amount of each scholarship shall be established annually by the executive
officer and shall be financed equally by the sponsor of the nursing student
and by the state of Kansas except that if the sponsor is located in a rural
area or is a health care facility which has less than 100 beds, the total
amount of the scholarship financed by such sponsor shall not exceed
$1,000 and the balance of such amount shall be paid by the state of
Kansas.

      Sec.  13. K.S.A. 74-3294 is hereby amended to read as follows: 74-
3294. (a) An applicant for a scholarship under the nursing student service
scholarship program shall provide to the executive officer, on forms sup-
plied by the executive officer, the following information:

      (1) The name and address of the applicant;

      (2) the name and address of the school of nursing in which the ap-
plicant is enrolled in or to which the applicant has been admitted;

      (3) the name and address of the sponsor of the applicant and a ver-
ified copy of the agreement entered into by the applicant and the sponsor
in accordance with the provisions of this act the nursing service scholar-
ship program; and

      (4) any additional information which may be required by the execu-
tive officer.

      (b) As a condition to awarding a scholarship under this act the nursing
service scholarship program, the executive officer and the applicant for
a scholarship shall enter into an agreement which shall require that the
scholarship recipient:

      (1) Complete the required course of instruction and attain licensure
with the Kansas state board of nursing as a licensed professional nurse or
a licensed practical nurse;

      (2) engage in the full-time practice of nursing, or the equivalent to
full-time practice as specified by rules and regulations of the state board
of regents adopted in accordance with the provisions of K.S.A. 74-3297
and amendments thereto, in the employment of the sponsor in accord-
ance with the agreement entered into by the scholarship recipient and
the sponsor and comply with such other terms and conditions as may be
specified by such agreement; continue such full-time practice, or the
equivalent to full-time practice, for the total amount of time required
under the agreement, which shall be for a period of not less than the length
of the course of instruction for which scholarship assistance was provided,
or engage in the part-time practice of nursing in the employment of the
sponsor in accordance with the agreement entered into by the scholarship
recipient and the sponsor and continue such part-time practice for the
total amount of time required under the agreement, which shall be for a
period of time that is equivalent to full time, as determined by the state
board of regents, multiplied by the length of the course of instruction for
which scholarship assistance was provided;

      (3) commence the full-time practice of nursing, or the equivalent to
full-time practice as specified by rules and regulations of the state board
of regents adopted in accordance with the provisions of K.S.A. 74-3297
and amendments thereto, or the part-time practice of nursing, within six
months after registration in accordance with the agreement entered into
by the scholarship recipient and the sponsor and, continue such full-time
practice, or equivalent to full-time practice, for the total amount of time
required under the agreement, which shall be for a period of not less
than the length of the course of instruction for which the scholarship
assistance was provided and comply with such other terms and conditions
as may be specified by such agreement;

      (4) maintain records and make reports to the executive officer as may
be required by the executive officer to document the satisfaction of the
obligations under this act the nursing service scholarship program and
under agreements entered into with the sponsor; and

      (5) upon failure to satisfy an agreement to engage in the full-time
practice of nursing, or the equivalent to full-time practice as specified by
rules and regulations of the state board of regents adopted in accordance
with the provisions of K.S.A. 74-3297 and amendments thereto, or the
part-time practice of nursing, for the required period of time under any
such agreement, repay to the state and to the sponsor amounts as pro-
vided in K.S.A. 74-3295, and amendments thereto.

      (c) Upon the awarding of a scholarship under the nursing student
service scholarship program, the sponsor shall pay to the executive officer
the amount of such scholarship to be financed by the sponsor. Each such
amount shall be deposited in the nursing student service scholarship pro-
gram fund in accordance with K.S.A. 74-3298, and amendments thereto.

      (d) The sponsorship by a scholarship recipient may be transferred
from one sponsor to another upon the agreement of the original sponsor,
the scholarship recipient and the sponsor to which the sponsorship is to
be transferred. The terms, conditions and obligations of the transferred
agreement shall be substantially similar to the terms, conditions and ob-
ligations of the original agreement. No sponsorship shall be transferred
unless the agreement transferring such sponsorship provides for service
in a rural area and is approved by the executive officer as consistent with
the provisions of the nursing student service scholarship program and as
consistent with any rules and regulations relating thereto adopted by the
state board of regents in accordance with the provisions of K.S.A. 74-
3297, and amendments thereto.

      Sec.  14. K.S.A. 2000 Supp. 74-3295 is hereby amended to read as
follows: 74-3295. (a) Except as provided in K.S.A. 74-3296, and amend-
ments thereto, upon the failure of any person to satisfy the obligation
under any agreement entered into pursuant to the nursing student service
scholarship program, such person shall pay to the executive officer an
amount equal to the total amount of money received by such person
pursuant to such agreement which was financed by the state of Kansas
plus annual accrued interest at a rate of 15% which is equivalent to the
interest rate applicable to loans made under the federal PLUS program
at the time such person first entered into an agreement plus five percent-
age points and shall pay to the sponsor an amount equal to the total
amount of money received by such person pursuant to such agreement
which was financed by the sponsor plus annual accrued interest at a rate
of 15% which is equivalent to the interest rate applicable to loans made
under the federal PLUS program at the time such person first entered
into an agreement plus five percentage points. Installment payments of
any such amounts may be made in accordance with the provisions of
agreements entered into by the scholarship recipient and the sponsor or
if no such provisions exist in such agreements, in accordance with rules
and regulations of the state board of regents, except that such installment
payments shall commence six months after the date of the action or cir-
cumstances that cause the failure of the person to satisfy the obligations
of such agreements, as determined by the executive officer based upon
the circumstances of each individual case. Amounts paid under this sec-
tion to the executive officer shall be deposited in the nursing student
service scholarship repayment fund in accordance with K.S.A. 74-3298,
and amendments thereto.

      (b) The state board of regents is authorized to turn any repayment
account arising under the nursing service scholarship program over to a
designated loan servicer or collection agency, the state not being involved
other than to receive payments from the loan servicer or collection agency
at the interest rate prescribed under this section.

      Sec.  15. K.S.A. 2000 Supp. 74-3296 is hereby amended to read as
follows: 74-3296. (a) Except as otherwise specified in the agreement with
the sponsor, an obligation under any agreement entered into under the
nursing student scholarship program shall be postponed: (1) During any
required period of active military service; (2) during any period of service
as a part of volunteers in service to America (VISTA); (3) during any
period of service in the peace corps; (4) during any period of service
commitment to the United States public health service; (5) during any
period of religious missionary work conducted by an organization exempt
from tax under subsection (c) of section 501(c)(3) of the federal internal
revenue code of 1986 as in effect on January 1, 1989 December 31, 2000;
(6) during any period of temporary medical disability during which time
the person obligated is unable because of such temporary medical disa-
bility to practice professional nursing; or (7) during any period of time
the person obligated is enrolled and actively engaged on a full-time basis
in a course of study leading to a degree in the field of nursing which is
higher than that attained formerly by the person obligated; (8) during
any period of time the person obligated is on job-protected leave under
the federal family and medical leave act of 1993; or (9) during any period
of time the state board of regents determines that the person obligated is
unable because of special circumstances to practice nursing. Except for
clause clauses (6) of this subsection (a), (8) and (9), an obligation under
any agreement entered into under as provided in the nursing student
service scholarship program shall not be postponed more than five years
from the time the obligation was to have been commenced under any
such agreement. An obligation under any agreement under entered into
as provided in the nursing student service scholarship program shall be
postponed under clause (6) of this subsection (a) during the period of
time the medical disability exists. An obligation under any agreement
entered into as provided in the nursing service scholarship program shall
be postponed under clause (8) during the period of time the person obli-
gated remains on FMLA leave. An obligation under any agreement en-
tered into as provided in the nursing service scholarship program shall
be postponed under clause (9) during the period of time the state board
of regents determines that the special circumstances exist. The state board
of regents shall adopt rules and regulations prescribing criteria or guide-
lines for determination of the existence of special circumstances causing
an inability to satisfy an obligation under any agreement entered into as
provided in the nursing service scholarship program, and shall determine
the documentation required to prove the existence of such circumstances.
Except for clause clauses (1) or clause, (6) of this subsection (a), (8) and
(9), an obligation under any agreement entered into under as provided
in the nursing service scholarship program shall not be postponed unless
the postponement is approved by the sponsor or is otherwise provided
for in the agreement with the sponsor.

      (b) An obligation under any agreement under entered into as pro-
vided in the nursing student service scholarship program shall be satisfied:
(1) If the obligation in accordance with an agreement under the nursing
student scholarship program has been completed in accordance with the
agreement; (2) if the person obligated dies; (3) if, because of permanent
physical disability, the person obligated is unable to satisfy the obligation;
(4) if the person obligated fails to satisfy the requirements for graduation
from the school of nursing after making the best effort possible to do so;
(5) if the person obligated fails to satisfy all requirements for a permanent
license to practice nursing in Kansas or has been denied a license after
applying for a license and making the best effort possible to obtain such
license; (6) if, because of bankruptcy, loss of licensure or certification or
other failure in the operations of the sponsor, the sponsor cannot or will
not employ the person obligated; or (7) if the sponsor releases the person
obligated from employment with the sponsor and the person obligated
otherwise completes the terms, conditions and obligations of the agree-
ment under the nursing student scholarship program by engaging in the
practice of nursing in Kansas.

      Sec.  16. K.S.A. 74-3297 is hereby amended to read as follows: 74-
3297. The state board of regents, after consultation with the committee,
may adopt rules and regulations establishing minimum terms, conditions
and obligations which shall be incorporated into the provisions of any
agreement entered into between a sponsor and the recipient of a schol-
arship under the nursing student service scholarship program. The terms,
conditions and obligations shall be consistent with the provisions of law
relating to the nursing student service scholarship program. The terms,
conditions and obligations so established shall include, but not be limited
to, the terms of eligibility for financial assistance under the nursing stu-
dent service scholarship program, the amount of financial assistance to
be offered, the length of employment with the sponsor required as a
condition to the receipt of such financial assistance, the circumstances
under which such the employment obligation may be discharged or for-
given, the amount of money required to be repaid because of failure to
satisfy the obligations under an agreement and the method of repayment
and such other additional provisions as may be necessary to carry out the
provisions of the nursing student service scholarship program. The state
board of regents, after consultation with the committee, shall adopt rules
and regulations establishing criteria for evaluating the financial need of
applicants for scholarships and may adopt such other rules and regulations
as may be necessary to administer the nursing student service scholarship
program.

      Sec.  17. K.S.A. 2000 Supp. 74-3298 is hereby amended to read as
follows: 74-3298. (a) There is hereby created in the state treasury the
nursing student service scholarship program fund. The executive officer
shall remit all moneys received from sponsors, which are paid under
K.S.A. 74-3294, and amendments thereto, pursuant to scholarship
awards, or from a school of nursing, which are paid because of nonat-
tendance or discontinued attendance by scholarship recipients and which
are attributable to sponsors, under the nursing student scholarship pro-
gram to the state treasurer at least monthly. Upon receipt of each such
remittance, the state treasurer shall deposit the entire amount thereof in
the state treasury and such amount shall be credited to the nursing stu-
dent service scholarship program fund. All expenditures from the nursing
student service scholarship program fund shall be for scholarships
awarded under the nursing student service scholarship program or re-
funds to sponsors and shall be made in accordance with appropriation
acts upon warrants of the director of accounts and reports issued pursuant
to vouchers approved by the executive officer or by a person designated
by the executive officer.

      (b) There is hereby created in the state treasury The nursing student
scholarship discontinued attendance fund. The executive officer shall re-
mit all moneys received under the nursing student scholarship program
from a school of nursing, which are paid because of nonattendance or
discontinued attendance by scholarship recipients and which are attrib-
utable to sources other than sponsors, to the state treasurer at least
monthly. Upon receipt of each such remittance the state treasurer shall
deposit the entire amount thereof in the state treasury, and such amount
shall be credited to the nursing student scholarship discontinued attend-
ance fund. All expenditures from the nursing student scholarship discon-
tinued attendance fund shall be for scholarships awarded under the nurs-
ing student scholarship program and shall be made in accordance with
appropriation acts upon warrants of the director of accounts and reports
issued pursuant to vouchers approved by the executive officer or by a
person designated by the executive officer is hereby abolished. On the
effective date of this act, the director of accounts and reports shall transfer
all moneys remaining in the nursing student scholarship discontinued
attendance fund to the nursing service scholarship program fund.

      (c) There is hereby created in the state treasury the nursing student
service scholarship repayment fund. The executive officer shall remit all
moneys received for amounts paid under K.S.A. 74-3295, and amend-
ments thereto, to the state treasurer at least monthly. Upon receipt of
each such remittance the state treasurer shall deposit the entire amount
thereof in the state treasury, and such amount shall be credited to the
nursing student service scholarship repayment fund. All expenditures
from the nursing student service scholarship repayment fund shall be for
scholarships awarded under the nursing student service scholarship pro-
gram and shall be made in accordance with appropriation acts upon war-
rants of the director of accounts and reports issued pursuant to vouchers
approved by the executive officer or by a person designated by the ex-
ecutive officer.

      Sec.  18. K.S.A. 74-3299 is hereby amended to read as follows: 74-
3299. (a) There is hereby created the nursing service scholarship review
committee which shall consist of the following members appointed by
the governor: One member representing Kansas hospitals; one member
representing Kansas adult care homes; one member representing Kansas
registered nurses; one member representing nursing education programs
other than at a college or university under the control and supervision of
the state board of regents state educational institution; and the chief ex-
ecutive officer of a college or university under the control and supervision
of the state board of regents state educational institution which college
or university has a school of nursing.

      (b) The members of the nursing service scholarship review commit-
tee appointed by the governor shall be appointed for three-year terms
and shall serve until their successors are appointed and qualified. Upon
the vacancy of a position on the committee appointed by the governor,
the governor shall appoint a person of like qualifications to fill such po-
sition. If a vacancy occurs prior to the expiration of a term, the governor
shall appoint a person of like qualifications to fill such position for the
unexpired term.

      (c) The nursing service scholarship review committee shall elect an-
nually from among its members a chairperson. The committee shall meet
on the call of the chairperson or upon the request of a majority of the
members of the committee. A majority of the members of the committee
shall constitute a quorum.

      (d) The nursing service scholarship review committee shall provide
oversight of the nursing student service scholarship program and shall be
advisory to the executive officer and the state board of regents in the
administration of such program. The committee shall exercise such other
powers and duties as may be specified by law.

      (e) The executive officer and other office staff of the state board of
regents shall provide staff assistance to the nursing service scholarship
review committee.

      (f) The members of the nursing service scholarship review committee
who are not state officers or employees and who are attending meetings
of such committee, or attending a subcommittee meeting thereof au-
thorized by such committee, shall be paid eligible for amounts provided
in subsection (e) of K.S.A. 75-3223, and amendments thereto. Amounts
paid under this subsection (f) shall be from appropriations to the state
board of regents upon warrants of the director of accounts and reports
issued pursuant to vouchers approved by the executive officer or a person
designated by the executive officer.

      Sec.  19. K.S.A. 74-32,100 is hereby amended to read as follows: 74-
32,100. This act shall be known and may be cited as the teacher service
scholarship program.

      Sec.  20. K.S.A. 74-32,101 is hereby amended to read as follows: 74-
32,101. As used in this act:

      (a) ``Executive officer'' means the chief executive officer of the state
board of regents appointed under K.S.A. 74-3203 2000 Supp. 74-3203a,
and amendments thereto;

      (b) ``qualified student'' means a person who: (1) Is a resident of the
state of Kansas; (2) has been accepted for admission to or is enrolled full
time in a course of instruction leading to certification in a hard-to-fill
teaching discipline as a teacher; and (3) has qualified for the award of a
scholarship under the teacher service scholarship program on the basis
of having demonstrated scholastic ability, or who has previously so qual-
ified and remains qualified for renewal of the scholarship on the basis of
remaining in good standing and making satisfactory progress toward com-
pletion of the requirements of the course of instruction in which enrolled;

      (c) ``hard-to-fill teaching discipline'' means a teaching discipline in
which there is a critical shortage of teachers as determined and specified
by the state board of education.;

      (d) ``underserved area'' means a geographic area of the state in which
there is a critical shortage of teachers as determined and specified by the
state board of education.

      Sec.  21. K.S.A. 74-32,102 is hereby amended to read as follows: 74-
32,102. (a) There is hereby established the teacher service scholarship
program. A scholarship may be awarded under the teacher service schol-
arship program to any qualified student and may be renewed for each
such student who remains qualified for the scholarship. The number of
new scholarships awarded under the program in each year shall not ex-
ceed 50. Determination of the students qualified for such scholarships
shall be made by the executive officer. Scholastic ability shall be deter-
mined on the basis of any one or more of the following: (1) High ACT or
SAT score; (2) rank in high school graduation class; (3) cumulative high
school or college grade point average; or (4) any other indicator of scho-
lastic ability which the state board of regents determines to be demon-
strative of potential for successful completion of a course of instruction
leading to certification in a hard-to-fill teaching discipline as a teacher.
To the extent practicable and consistent with qualification factors, con-
sideration shall be given to students who are members of ethnic minority
groups.

      (b) A scholarship awarded under the program shall provide for pay-
ment to a qualified student of a stipend in the amount of $5,000 (1) an
amount not to exceed 70% of the cost of attendance for an academic year
at the teacher education school in which the qualified student is enrolled
if such teacher education school is maintained by a state educational in-
stitution or (2) an amount not to exceed 70% of the average amount of
the cost of attendance for an academic year at the teacher education
schools maintained by the state educational institutions if the teacher ed-
ucation school in which the qualified student is enrolled is not a state
educational institution. A qualified student may be awarded a scholarship
for not more than four academic years of undergraduate study, except
that a qualified student who is enrolled full time in a course of instruction
leading to certification in a hard-to-fill teaching discipline for which grad-
uate study is required may be awarded a scholarship for the duration of
the course of instruction.

      Sec.  22. K.S.A. 74-32,103 is hereby amended to read as follows: 74-
32,103. (a) An applicant for designation as a qualified student and for the
award of a scholarship under the teacher service scholarship program shall
provide to the executive officer, on forms supplied by the executive of-
ficer, information required by the executive officer.

      (b) As a condition to awarding a scholarship under this act, the ex-
ecutive officer and the applicant shall enter into an agreement which shall
require the applicant to:

      (1) Complete the required course of instruction leading to certifica-
tion in a hard-to-fill teaching discipline as a teacher;

      (2) engage in teaching in Kansas in an underserved area or in a hard-
to-fill teaching discipline in Kansas and comply with such other terms and
conditions as may be specified by such agreement;

      (3) commence teaching on a full-time basis in a hard-to-fill teaching
discipline in Kansas in an accredited public or private elementary or sec-
ondary school in accordance with the agreement, which shall be and con-
tinue teaching on a full-time basis for a period of not less than the length
of the course of instruction for which the scholarship was awarded or
commence teaching on a part-time basis in Kansas in an accredited public
or private elementary or secondary school in accordance with the agree-
ment and continue teaching on such a part-time basis for a period of time
that is equivalent to full time, as determined by the state board of regents,
multiplied by the length of the course of instruction for which the schol-
arship was awarded;

      (4) commence teaching in Kansas on a full-time or part-time basis
within six months after certification and continue teaching for the period
of time required by the agreement;

      (4) (5) maintain records and make reports to the executive officer as
required by the executive officer to document the satisfaction of the ob-
ligations under this act and the agreement; and

      (5) (6) upon failure to satisfy an agreement to engage in teaching in
an underserved area or in a hard-to-fill teaching discipline for the re-
quired period of time under any such agreement, repay to the state
amounts as provided in K.S.A. 74-32,104, and amendments thereto.

      Sec.  23. K.S.A. 2000 Supp. 74-32,104 is hereby amended to read as
follows: 74-32,104. (a) Except as provided in K.S.A. 74-32,105, and
amendments thereto, upon the failure of any person to satisfy the obli-
gation under any agreement entered into pursuant to the teacher service
scholarship program, such person shall pay to the executive officer an
amount equal to the total amount of money received by such person
pursuant to such agreement plus annual accrued interest at a rate of 15%,
which is equivalent to the interest rate applicable to loans made under
the federal PLUS program at the time such person first entered into an
agreement plus five percentage points. Amounts of payment under this
section shall be adjusted proportionately for full years of the obligation
that have been satisfied. Installment payments of any such amounts may
be made in accordance with the provisions of the agreement entered into
by the scholarship recipient or if no such provisions exist in such agree-
ment, in accordance with rules and regulations of the state board of re-
gents, except that such installment payments shall commence six months
after the date of the action or circumstances that cause the failure of the
person to satisfy the obligations of such agreements, as determined by
the executive officer based upon the circumstances of each individual
case. Amounts paid under this section to the executive officer shall be
deposited in the teacher service scholarship repayment fund in accord-
ance with K.S.A. 74-32,107, and amendments thereto.

      (b) The state board of regents is authorized to turn any repayment
account arising under the teacher service scholarship program over to a
designated loan servicer or collection agency, the state not being involved
other than to receive payments from the loan servicer or collection agency
at the interest rate prescribed under this section.

      Sec.  24. K.S.A. 74-32,105 is hereby amended to read as follows: 74-
32,105. (a) Except as otherwise specified in the agreement, an obligation
under any agreement entered into under the teacher service scholarship
program shall be postponed: (1) During any required period of active
military service; (2) during any period of service as a part of volunteers
in service to America (VISTA); (3) during any period of service in the
peace corps; (4) during any period of service commitment to the United
States public health service; (5) during any period of religious missionary
work conducted by an organization exempt from tax under section
501(c)(3) of the federal internal revenue code as in effect on December
31, 2000; (2) (6) during any period of temporary medical disability during
which time the person obligated is unable because of such temporary
medical disability to teach a hard-to-fill teaching discipline; or (3) (7)
during any period of time the person obligated is enrolled and actively
engaged on a full-time basis in a course of study leading to a degree in
the field of education as a hard-to-fill teaching discipline which is higher
than that formerly attained formerly by the person obligated; (8) during
any period of time the person obligated is on job-protected leave under
the federal family and medical leave act of 1993; or (9) during any period
of time the state board of regents determines that the person obligated is
unable because of special circumstances to teach. Except for clause (2) of
this subsection (a) clauses (6), (8) and (9), an obligation under any agree-
ment entered into under as provided in the teacher service scholarship
program shall not be postponed more than five years from the time the
obligation was to have been commenced under any such agreement. An
obligation under any agreement under entered into as provided in the
teacher service scholarship program shall be postponed under clause (2)
of this subsection (a) (6) during the period of time the medical disability
exists. Except for clause (1) or clause (2) of this subsection (a), An obli-
gation under any agreement entered into under as provided in the teacher
service scholarship program shall not be postponed unless the postpone-
ment is provided for in the agreement under clause (8) during the period
of time the person obligated remains on FMLA leave. An obligation to
engage in teaching in accordance with an agreement under the teacher
service scholarship program shall be postponed under clause (9) during
the period of time the state board of regents determines that the special
circumstances exist. The state board of regents shall adopt rules and reg-
ulations prescribing criteria or guidelines for determination of the exis-
tence of special circumstances causing an inability to teach, and shall
determine the documentation required to prove the existence of such cir-
cumstances.

      (b) An obligation under any agreement under entered into as pro-
vided in the teacher service scholarship program shall be satisfied: (1) If
the obligation in accordance with an agreement under the scholarship
program has been completed in accordance with the agreement; (2) if the
person obligated dies; (3) if, because of permanent physical disability, the
person obligated is unable to satisfy the obligation; or (4) if the person
obligated fails to satisfy all the requirements to enable the recipient to
teach a hard-to-fill teaching discipline for a graduation from a teacher
education program after making the best effort possible; (5) if the person
obligated fails to satisfy all requirements for certification to teach in Kan-
sas or has been denied certification after applying for a certificate to teach
and making the best effort possible to obtain such certificate; or (6) if the
person obligated is unable to obtain employment as a teacher in an un-
derserved area or in a hard-to-fill teaching discipline after making the
best effort possible to obtain such employment and the person obligated
otherwise completes the terms, conditions and obligations of the agree-
ment.

      Sec.  25. K.S.A. 74-32,106 is hereby amended to read as follows: 74-
32,106. The state board of regents shall adopt rules and regulations for
administration of the teacher service scholarship program and shall es-
tablish terms, conditions and obligations which shall be incorporated into
the provisions of any agreement entered into between the executive of-
ficer and an applicant for the award of a scholarship under the program.
The terms, conditions and obligations shall be consistent with the provi-
sions of law relating to the program and shall include, but not be limited
to, the circumstances under which eligibility for financial assistance under
the program may be terminated, the amount of financial assistance to be
provided, the circumstances under which obligations may be discharged
or forgiven, the amount of money required to be repaid because of failure
to satisfy the obligations under an agreement and the method of repay-
ment.

      Sec.  26. K.S.A. 2000 Supp. 74-32,107 is hereby amended to read as
follows: 74-32,107. (a) There is hereby created in the state treasury the
teacher service scholarship program fund. The executive officer shall re-
mit all moneys received under the teacher service scholarship program,
which are paid because of nonattendance or discontinuance by scholar-
ship recipients, to the state treasurer at least monthly. Upon receipt of
each such remittance the state treasurer shall deposit the entire amount
thereof in the state treasury, and such amount shall be credited to the
teacher service scholarship program fund. All expenditures from the
teacher service scholarship program fund shall be for scholarships
awarded under the teacher service scholarship program and shall be made
in accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the exec-
utive officer or by a person designated by the executive officer.

      (b) There is hereby created in the state treasury the teacher service
scholarship repayment fund. The executive officer shall remit all moneys
received under the teacher service scholarship program, which are for
payment of amounts pursuant to K.S.A. 74-32,104, and amendments
thereto, to the state treasurer at least monthly. Upon receipt of each such
remittance the state treasurer shall deposit the entire amount thereof in
the state treasury, and such amount shall be credited to the teacher serv-
ice scholarship repayment fund. All expenditures from the teacher service
scholarship repayment fund shall be for scholarships awarded under the
teacher service scholarship program and shall be made in accordance with
appropriation acts upon warrants of the director of accounts and reports
issued pursuant to vouchers approved by the executive officer or by a
person designated by the executive officer.

      Sec.  27. K.S.A. 2000 Supp. 74-32,112 is hereby amended to read as
follows: 74-32,112. (a) This act shall be known and may be cited as the
Kansas ethnic minority fellowship program.

      (b) The legislature hereby finds that: (1) The enrollment of certain
ethnic minority students in graduate programs is low and declining; and
(2) the ratio of graduate students who receive teaching and research as-
sistantships is lower for ethnic minority students than for Caucasian stu-
dents; and (3) the ethnic origin of faculty at institutions of higher edu-
cation is disproportionately Caucasoid.

      (c) The legislature hereby declares that it is the intention of this act
to provide for a program under which the state in cooperation with the
state educational institutions may award grants of financial assistance in
the form of fellowships to qualified ethnic minority graduate students as
a means of: (1) recruiting and retaining ethnic minority students in the
graduate programs of the state educational institutions; and (2) attracting
and retaining ethnic minority faculty members and educational leaders in
Kansas in order to enhance the diversity of the student population.

      Sec.  28. K.S.A. 2000 Supp. 74-32,113 is hereby amended to read as
follows: 74-32,113. As used in this act:

      (a) ``Kansas ethnic minority fellowship program'' means a program
under which grants of financial assistance in the form of fellowships are
awarded to qualified ethnic minority graduate students.

      (b) ``Qualified ethnic minority graduate student'' means a person
who: (1) Is a citizen of the United States; (2) is a member of an ethnic
minority group; (3) has been accepted for admission to or is enrolled full
time in a graduate program at a state educational institution; and (4) has
qualified for the award of a fellowship under the Kansas ethnic minority
fellowship program on the basis of having demonstrated scholastic ability,
or who has previously so qualified and remains qualified for renewal of
the fellowship on the basis of remaining in good standing and making
satisfactory progress toward completion of the requirements of the grad-
uate program in which enrolled.

      (c) ``Ethnic minority group'' means a group of persons categorized
as: (1) American Indian; (2) Asian or Pacific Islander; (3) Black, non-
Hispanic; or (4) Hispanic.

      (d) ``American Indian'' means a person having origins in the original
peoples of North America and who maintains cultural identification
through tribal affiliation or community recognition.

      (e) ``Asian'' or ``Pacific Islander'' means a person having origins in any
of the original peoples of Laos, Vietnam, Cambodia, or Korea the Far
East, Southeast Asia, the Indian Subcontinent, or Pacific Islands, includ-
ing, but not by way of limitation, persons from China, Japan, Korea, the
Philippine Islands, Samoa, India, Laos, Vietnam, or Cambodia.

      (f) ``Black, non-Hispanic'' means a person having origins in any of the
black racial groups of Africa (except those of Hispanic origin).

      (g) ``Hispanic'' means a person of Mexican, Puerto Rican, Cuban,
Central or South American or other Spanish culture or origin, regardless
of race.

      (h) ``State educational institution'' has the meaning ascribed thereto
in K.S.A. 76-711, and amendments thereto.

      (i) ``Executive officer'' means the executive officer of the state board
of regents, appointed under K.S.A. 74-3203 2000 Supp. 74-3203a, and
amendments thereto.

      Sec.  29. K.S.A. 2000 Supp. 74-32,114 is hereby amended to read as
follows: 74-32,114. (a) A fellowship may be awarded under the Kansas
ethnic minority fellowship program to any qualified ethnic minority grad-
uate student and may be renewed for each such student who remains
qualified for the fellowship. Subject to appropriations therefor, the num-
ber of new fellowships awarded under the program in each year shall not
exceed 40. Determination of the graduate students qualified for such
fellowships shall be made by the executive officer in consultation with the
chief academic officers of the state educational institutions. The state
board of regents shall establish, by rules and regulations, indicators of
scholastic ability for determination of the qualifications of ethnic minority
graduate students for the award of fellowships under the program.

      (b) A fellowship awarded under the program shall provide for pay-
ment to a qualified ethnic minority graduate student of a stipend in the
an amount of $8,000 not to exceed the amount of the cost of attendance
for an academic year at the state educational institution in which the
graduate student is enrolled. Such stipends may be enhanced by the state
educational institutions. A qualified ethnic minority graduate student may
be awarded a fellowship in each academic year until the requirements of
the graduate program in which the student is enrolled are completed.

      Sec.  30. K.S.A. 2000 Supp. 74-32,115 is hereby amended to read as
follows: 74-32,115. (a) An applicant for designation as a qualified ethnic
minority graduate student and for the award of a fellowship under the
Kansas ethnic minority fellowship program shall provide such information
to the executive officer as the executive officer may require.

      (b) As a condition to awarding a fellowship under this act, the exec-
utive officer and the applicant shall enter into an agreement which shall
require the applicant to:

      (1) Complete the requirements of the graduate program in which
enrolled;

      (2) enter into the employ full-time employment in Kansas of an ac-
credited educational elementary or secondary school or an accredited
institution in Kansas of postsecondary education and continue in such
employment for a period of time not less than the period for which fi-
nancial assistance was provided under the program or enter into the part-
time employment in Kansas of an accredited elementary or secondary
school or an accredited institution of postsecondary education and con-
tinue in such employment for a period of time that is equivalent to full
time, as determined by the state board of regents, multiplied by the period
for which financial assistance was provided under the program;

      (3) enter into the full-time or part-time employment in Kansas of an
accredited elementary or secondary school or an accredited institution of
postsecondary education within six months after completion of the
requirements of the graduate program in which enrolled or within six
months after completion of the requirements of such program and certi-
fication to teach if necessary, whichever is later, and continue such em-
ployment for the period of time required by the agreement;

      (3) (4) maintain records and make reports to the executive officer as
required by the executive officer to document the satisfaction of the ob-
ligations under this act and the agreement; and

      (4) (5) upon failure to satisfy any obligation under this act or the
agreement, repay to the state amounts as provided in K.S.A. 2000 Supp.
74-32,116, and amendments thereto.

      Sec.  31. K.S.A. 2000 Supp. 74-32,116 is hereby amended to read as
follows: 74-32,116. (a) Except as provided in K.S.A. 2000 Supp. 74-
32,117, and amendments thereto, upon the failure of a person to satisfy
any obligation under an agreement entered into pursuant to in accordance
with the Kansas ethnic minority fellowship program, such person shall
pay to the executive officer an amount equal to the total amount of money
received by such person pursuant to such agreement plus annual accrued
interest from the date such money was received at a rate of 15%, which
is equivalent to the interest rate applicable to loans made under the federal
PLUS program at the time such person first entered into an agreement
plus five percentage points. Amounts of payment under this section shall
be adjusted proportionately for full years of performance of the obliga-
tions that have been satisfied. Installment payments of any such amounts
may be made in accordance with the provisions of the agreement entered
into by the fellowship recipient or if no such provisions exist in such
agreement, in accordance with rules and regulations of the state board of
regents, except that such installment payments shall commence six
months after the date of the action or circumstances that cause the failure
of the person to satisfy the obligations of such agreements, as determined
by the executive officer based upon the circumstances of each individual
case. Amounts paid under this section to the executive officer shall be
deposited in the Kansas ethnic minority fellowship program fund in ac-
cordance with K.S.A. 2000 Supp. 74-32,119, and amendments thereto.

      (b) The state board of regents is authorized to turn any repayment
account arising under the Kansas ethnic minority fellowship program over
to a designated loan servicer or collection agency, the state not being
involved other than to receive payments from the loan servicer or collec-
tion agency at the interest rate prescribed under this section.

      Sec.  32. K.S.A. 2000 Supp. 74-32,117 is hereby amended to read as
follows: 74-32,117. (a) Except as otherwise specified in the agreement,
an obligation under any agreement entered into under in accordance with
the Kansas ethnic minority fellowship program shall be postponed: (1)
During any required period of active military service; (2) during any pe-
riod of service as a part of volunteers in service to America (VISTA); (3)
during any period of service in the peace corps; (4) during any period of
service commitment to the United States public health service; (5) during
any period of religious missionary work conducted by an organization
exempt from tax under section 501(c)(3) of the federal internal revenue
code as in effect on December 31, 2000; (2) (6) during any period of
temporary medical disability time in which the person obligated is unable
because of such temporary medical disability to commence or continue
performance in satisfaction of the obligation; or (3) (7) during any period
of time the person obligated is enrolled and actively engaged on a full-
time basis in a graduate program leading to a degree which is higher than
that formerly attained formerly by the person obligated; (8) during any
period of time the person obligated is on job-protected leave under the
federal family and medical leave act of 1993; or (9) during any period of
time the state board of regents determines that the person obligated is
unable because of special circumstances to commence or continue per-
formance in satisfaction of the obligation. Except for clause (2) of this
subsection (a) clauses (6), (8) and (9), an obligation under any agreement
entered into under in accordance with the Kansas ethnic minority fellow-
ship program shall not be postponed more than five years from the time
performance of the obligation was to have been commenced under any
such agreement. An obligation under any agreement under entered into
in accordance with the program shall be postponed under clause (2) of
this subsection (a) (6) during the period of time the medical disability
exists. Except for clause (1) or clause (2) of this subsection (a), An obli-
gation under any agreement entered into under in accordance with the
program shall not be postponed unless the postponement is provided for
in the agreement under clause (8) during the period of time the person
obligated remains on FMLA leave. An obligation to commence or continue
performance in satisfaction of the obligation in accordance with an agree-
ment under the Kansas ethnic minority fellowship program shall be post-
poned under clause (9) during the period of time the state board of regents
determines that the special circumstances exist. The state board of regents
shall adopt rules and regulations prescribing criteria or guidelines for
determination of the existence of special circumstances causing an inabil-
ity to commence or continue performance in satisfaction of the obligation,
and shall determine the documentation required to prove the existence of
such circumstances.

      (b) An obligation under any agreement under entered into in accord-
ance with the Kansas ethnic minority fellowship program shall be satis-
fied: (1) If performance of the obligation in accordance with an agreement
entered into under the program has been completed in accordance with
the agreement; (2) if the person obligated dies; (3) if, because of perma-
nent physical disability, the person obligated is unable to satisfy the ob-
ligation; or (4) if the person obligated fails to satisfy all the requirements
to enable the person to enter into the employ of of the graduate program
in which enrolled after making the best effort possible; (5) if the person
obligated fails to satisfy all requirements for certification to teach in Kan-
sas, if certification is necessary to obtain employment as provided in the
agreement; or (6) if the person obligated is unable to obtain employment
in an accredited elementary or secondary school or an accredited edu-
cational institution of postsecondary education in Kansas and to continue
in such employment after making the best effort possible.

      Sec.  33. K.S.A. 2000 Supp. 74-32,118 is hereby amended to read as
follows: 74-32,118. (a) The state board of regents shall adopt rules and
regulations for administration of the Kansas ethnic minority fellowship
program and shall establish terms, conditions and obligations which shall
be incorporated into the provisions of any agreement entered into be-
tween the executive officer and an applicant for the award of a fellowship
under the program. The terms, conditions and obligations shall be con-
sistent with the provisions of law relating to the program and shall include,
but not be limited to, the circumstances under which eligibility for finan-
cial assistance under the program may be terminated, the amount of fi-
nancial assistance to be provided, the circumstances under which obli-
gations may be discharged or forgiven, the amount of money required to
be repaid because of failure to satisfy the obligations under an agreement
and the method of repayment.

      (b) The state board of regents shall review the Kansas ethnic minority
fellowship program annually to determine if the program is meeting the
intention of the legislature and to make recommendations to the legislature
for continuance, discontinuance, expansion, or contraction of the pro-
gram.

      Sec.  34. K.S.A. 2000 Supp. 74-3256 is hereby amended to read as
follows: 74-3256. (a) The state board of regents shall:

      (1) Adopt rules and regulations for the administration of this act;

      (2) provide for enrollment without charge of tuition at each ROTC
institution of the award of ROTC service scholarships to eligible students
who qualify therefor, as determined by the selection committee, for not
to exceed in any academic year a total of 40 eligible students in any
academic year if the at each ROTC institution is a state educational in-
stitution and if the ROTC institution is a municipal university, for not to
exceed a total of 10 eligible students in the 1996-97 academic year, 20
eligible students in the 1997-98 academic year, 30 eligible students in the
1998-99 academic year and 40 eligible students in the 1999-2000 aca-
demic year and in academic years thereafter. This provision is subject to
the provisions of subsection (c);

      (3) publicize provide information regarding application procedures
and provide application forms;

      (4) require any ROTC institution to promptly furnish upon request
any information which relates to the administration or effect of this act.

      (b) Any If the ROTC institution at which enrollment of an eligible
students without charge of tuition is provided for under subsection (a)(2)
may file a claim with the state board of regents for reimbursement of the
amount of such tuition student who qualifies for an ROTC service schol-
arship is enrolled is a state educational institution, the scholarship shall
provide to the student an amount not to exceed 70% of the cost of at-
tendance at the institution for an academic year. If the ROTC institution
at which an eligible student who qualifies for an ROTC service scholarship
is enrolled is a municipal university, the amount of reimbursement for
each eligible student for whom enrollment is provided without charge of
tuition shall be at a rate not greater than the maximum rate of tuition
that would be charged by scholarship shall provide to the student an
amount not to exceed 70% of the average amount of the cost of attendance
at the state educational institutions for enrollment of the eligible student
an academic year. Within the limitations of appropriations therefor, the
state board of regents shall be responsible for payment of reimbursements
to ROTC institutions upon certification by each such institution of the
amount of reimbursement to which entitled. Payments to of ROTC in-
stitutions service scholarships shall be made upon pursuant to vouchers
approved by the state board of regents and upon warrants of the director
of accounts and reports. Payments may be made by issuance of a single
warrant to each ROTC institution at which one or more eligible students
are enrolled for the total amount of tuition not charged scholarships for
all eligible students for enrollment enrolled at that institution. The direc-
tor of accounts and reports shall cause such warrant to be delivered to
the ROTC institution at which such eligible student or students are en-
rolled. If an eligible student discontinues attendance before the end of
any academic year, after the ROTC institution has received payment un-
der this subsection, the institution shall pay to the state the entire amount
which such eligible student would otherwise qualify to have refunded,
not to exceed the amount of the payment made by the state in behalf of
such student under the ROTC service scholarship for the academic year.
All amounts paid to the state by ROTC institutions under this subsection
shall be deposited in the state treasury and credited to the state general
ROTC service scholarship program fund.

      (c) If all ROTC service scholarships authorized to be awarded to el-
igible students at each ROTC institution have not been awarded by a date
established by the state board of regents, the scholarships that have not
been awarded by that date may be awarded to eligible students at any
ROTC institution if such students are qualified for such scholarships as
determined by the appropriate selection committee. The determination to
award ROTC service scholarships under this subsection to eligible stu-
dents who are qualified for such scholarships shall be made by the state
board of regents after consultation with the adjutant general.

      Sec.  35. K.S.A. 2000 Supp. 74-3257 is hereby amended to read as
follows: 72-3457. Every eligible student who qualifies therefor for the
award of an ROTC service scholarship, as determined by the appropriate
selection committee, may enroll annually for both the fall and spring
semesters, not to exceed eight semesters, in an ROTC institution without
charge of tuition. Once an eligible student qualifies for the benefits pro-
vided for under this act, such eligible student shall remain qualified for
not to exceed eight semesters of undergraduate study unless the appro-
priate selection committee determines that such eligible student is dis-
qualified for failure to meet any or all of the requirements imposed under
the provisions of this act.

      Sec.  36. K.S.A. 2000 Supp. 74-3258 is hereby amended to read as
follows: 74-3258. The selection committee of each ROTC institution shall:

      (a) Receive and register the names of all eligible students who apply
for the benefits provided for under this act ROTC service scholarships;

      (b) select methods for determining which eligible students are to be
recipients of the benefits under this act ROTC service scholarships;

      (c) designate and notify the eligible students selected to receive the
benefits provided for under this act ROTC service scholarships.

      Sec.  37. K.S.A. 2000 Supp. 74-3259 is hereby amended to read as
follows: 74-3259. In order to apply for qualification for the benefits pro-
vided for under this act an ROTC service scholarship, an eligible student,
if selected to receive benefits under this act such a scholarship, shall agree
to:

      (a) Maintain standards of academic excellence and other standards
required to remain in good standing;

      (b) maintain minimum full-time enrollment of at least 12 credit hours
each semester;

      (c) participate in the reserve officers' training corps program;

      (d) demonstrate the qualities required in a commissioned officer;

      (e) immediately upon graduation from an ROTC institution, accept
a commission as a second lieutenant and serve for not less than four years
as a commissioned officer in the Kansas national guard.; and

      (f) upon failure to satisfy an agreement to serve as a commissioned
officer in the Kansas national guard for the required four-year period,
repay to the state amounts as provided in K.S.A. 74-3260, and amend-
ments thereto.

      Sec.  38. K.S.A. 2000 Supp. 74-3260 is hereby amended to read as
follows: 74-3260. (a) Upon the failure of any person, who as an eligible
student qualified for and received benefits provided for under this act
payments under an ROTC service scholarship, to remain eligible and
qualified or to satisfy the obligation to accept a commission and serve as
an officer in the Kansas national guard for the required period of time
under an agreement entered into pursuant to this act, such person shall
serve for not less than four years as an enlisted member of the Kansas
national guard, or pay to the state of Kansas an amount equal to the total
amount of benefits payments received by such person plus accrued in-
terest from the date such payments were received at a rate which is equiv-
alent to the interest rate applicable to loans made under the federal PLUS
program at the time such person first entered into an agreement plus five
percentage points. Such payment shall commence within 30 days, and be
completed within five years, after the date of the act or circumstance that
causes the failure of the person to remain eligible and qualified or to
satisfy the obligation of such agreement. Payments under this section shall
be installment payments and each such installment shall be not less than
an amount equal to 1/5 of the total amount which would be required to be
paid if paid in five equal annual installments. If an installment payment
becomes 91 days overdue, the entire amount outstanding shall become
immediately due and payable, including all interest at the rate prescribed.
Amounts paid under this section shall be deposited in the state treasury
and credited to the ROTC service scholarship repayment fund as provided
in section 39, and amendments thereto.

      (b) The state board of regents is authorized to turn any repayment
account arising under the ROTC service scholarship program over to a
designated loan servicer or collection agency, the state not being involved
other than to receive payments from the loan servicer or collection agency
at the interest rate prescribed under this section.

      New Sec.  39. (a) There is hereby created in the state treasury the
ROTC service scholarship program fund. The state board of regents shall
remit all moneys received under the ROTC service scholarship program,
which are paid because of nonattendance or discontinuance by scholar-
ship recipients, to the state treasurer at least monthly. Upon receipt of
each such remittance the state treasurer shall deposit the entire amount
thereof in the state treasury, and such amount shall be credited to the
ROTC service scholarship program fund. All expenditures from the
ROTC service scholarship program fund shall be for ROTC service schol-
arships and shall be made in accordance with appropriation acts upon
warrants of the director of accounts and reports issued pursuant to vouch-
ers approved by the state board of regents or by a person designated by
the state board.

      (b) There is hereby created in the state treasury the ROTC service
scholarship repayment fund. The state board of regents shall remit all
moneys received under the ROTC service scholarship program, which
are for payment of amounts pursuant to K.S.A. 74-3260, and amendments
thereto, to the state treasurer at least monthly. Upon receipt of each such
remittance the state treasurer shall deposit the entire amount thereof in
the state treasury, and such amount shall be credited to the ROTC service
scholarship repayment fund. All expenditures from the ROTC service
scholarship repayment fund shall be for scholarships awarded under the
ROTC service scholarship program and shall be made in accordance with
appropriation acts upon warrants of the director of accounts and reports
issued pursuant to vouchers approved by the state board of regents or by
a person designated by the state board.

      New Sec.  40. (a) Except as otherwise specified in the agreement, an
obligation under any agreement entered into in accordance with the
ROTC service scholarship program shall be postponed: (1) During any
period of service as a part of volunteers in service to America (VISTA);
(2) during any period of service in the peace corps; (3) during any period
of service commitment to the United States public health service; (4)
during any period of religious missionary work conducted by an organi-
zation exempt from tax under section 501(c)(3) of the federal internal
revenue code as in effect on December 31, 2000; (5) during any period
of time in which the person obligated is unable because of temporary
medical disability to commence or continue performance in satisfaction
of the obligation; (6) during any period of time the person obligated is
enrolled and actively engaged on a full-time basis in a graduate program
leading to a degree which is higher than that formerly attained; (7) during
any period of time the person obligated is on job-protected leave under
the federal family and medical leave act of 1993; or (8) during any period
of time the state board of regents determines that the person obligated
is unable because of special circumstances to commence or continue per-
formance in satisfaction of the obligation. Except for clauses (5), (7) and
(8), an obligation under any agreement entered into in accordance with
the ROTC service scholarship program shall not be postponed more than
five years from the time performance of the obligation was to have been
commenced under any such agreement. An obligation under any agree-
ment entered into in accordance with the program shall be postponed
under clause (5) during the period of time the medical disability exists.
An obligation under any agreement entered into in accordance with the
program shall be postponed under clause (7) during the period of time
the person obligated remains on FMLA leave. An obligation to commence
or continue performance in satisfaction of the obligation in accordance
with an agreement under the ROTC service scholarship program shall be
postponed under clause (8) during the period of time the state board of
regents determines that the special circumstances exist. The state board
of regents shall adopt rules and regulations prescribing criteria or guide-
lines for determination of the existence of special circumstances causing
an inability to commence or continue performance in satisfaction of the
obligation, and shall determine the documentation required to prove the
existence of such circumstances.

      (b) An obligation under any agreement entered into in accordance
with the ROTC service scholarship program shall be satisfied: (1) If per-
formance of the obligation has been completed in accordance with the
agreement; (2) if the person obligated serves for not less than four years
as an enlisted member of the Kansas national guard; (3) if the person
obligated dies; (4) if, because of permanent physical disability, the person
obligated is unable to satisfy the obligation; (5) if the person obligated
fails to satisfy the requirements of the academic program in which en-
rolled after making the best effort possible; (6) if the person obligated
fails to satisfy all requirements for participation in the reserve officers'
training corps program after making the best effort possible; or (7) if the
person obligated fails to satisfy all requirements for commission as a sec-
ond lieutenant in the Kansas national guard after making the best effort
possible.

      Sec.  41. K.S.A. 2000 Supp. 74-32,131 is hereby amended to read as
follows: 74-32,131. This act shall be known and may be cited as the ad-
vanced registered nurse practitioner student service scholarship program.

      Sec.  42. K.S.A. 2000 Supp. 74-32,132 is hereby amended to read as
follows: 74-32,132. As used in this act:

      (a) ``Committee'' means the nursing service scholarship review com-
mittee established under K.S.A. 74-3299, and amendments thereto.

      (b) ``Executive officer'' means the chief executive officer of the state
board of regents appointed under K.S.A. 74-3203 2000 Supp. 74-3203a,
and amendments thereto.

      (c) ``Educational and training program for advanced registered nurse
practitioners'' means a post-basic nursing education program a graduate
of which meets the education requirements of the board of nursing for a
certificate of qualification as an advanced registered nurse practitioner.

      (d) ``Medically underserved area'' means an area of this state desig-
nated a medically underserved area by specialty or critically medically
underserved area by specialty under K.S.A. 76-375 and amendments
thereto a practice location designated medically underserved by the state
board of regents.

      (e) ``Rural area'' means any county in of this state which has a pop-
ulation of not more than 20,000 people at the time of application other
than Douglas, Johnson, Sedgwick, Shawnee and Wyandotte counties.

      Sec.  43. K.S.A. 2000 Supp. 74-32,133 is hereby amended to read as
follows: 74-32,133. (a) There is hereby established the advanced regis-
tered nurse practitioner student service scholarship program. Within the
limits of appropriations therefor, a scholarship may be awarded under
this the program to any qualified student enrolled in or admitted to an
educational and training program for advanced registered nurse practi-
tioners. The number of scholarships awarded under this scholarship the
program in any year shall not exceed 12.

      (b) The determination of the individuals qualified for such scholar-
ships shall be made by the executive officer after seeking advice from the
committee. Scholarships shall be awarded on a priority basis to qualified
applicants in the advanced registered nurse practitioner categories of
nurse clinician or nurse practitioner or clinical specialist who have the
greatest financial need for such scholarships and who are residents of this
state. To the extent practicable and consistent with the other provisions
of this section, consideration shall be given to minority applicants.

      (c) Scholarships awarded under this scholarship the program shall be
awarded for the length of the course of instruction required for gradua-
tion as an advanced registered nurse practitioner unless terminated be-
fore expiration of such period of time. Such scholarships shall provide (1)
to the a student receiving the scholarship enrolled in or admitted to an
educational and training program for advanced registered nurse practi-
tioners operated by a state educational institution the payment of tuition,
fees, books, room and board in an amount not to exceed the total of
$15,000 annually an amount not to exceed 70% of the cost of attendance
for a year, and (2) to a student enrolled in or admitted to an educational
and training program for advanced registered nurse practitioners oper-
ated by an independent institution of higher education the payment of an
amount not to exceed 70% of the average amount of the cost of attendance
for a year in educational and training programs for advanced registered
nurse practitioners operated by the state educational institutions. The
amount of each scholarship shall be established annually by the executive
officer and shall be financed by the state of Kansas.

      Sec.  44. K.S.A. 2000 Supp. 74-32,134 is hereby amended to read as
follows: 74-32,134. (a) An applicant for a scholarship under this the ad-
vanced registered nurse practitioner service scholarship program shall
provide to the executive officer, on forms supplied by the executive of-
ficer, the following information:

      (1) The name and address of the applicant;

      (2) the name and address of the educational and training program for
advanced registered nurse practitioners in which the applicant is enrolled
in or to which the applicant has been admitted; and

      (3) any additional information which may be required by the execu-
tive officer.

      (b) As a condition to awarding a scholarship under this act, the ex-
ecutive officer and the applicant for a scholarship shall enter into an
agreement which shall require that the scholarship recipient:

      (1) Engage in as a full-time student in and complete the required
course of instruction leading to the certificate of qualification as an ad-
vanced registered nurse practitioner;

      (2) engage in within six months after graduation from the educational
and training program for advanced registered nurse practitioners, com-
mence full-time practice as an advanced registered nurse practitioner, or
commence the equivalent to full-time practice as specified by rules and
regulations of the state board of regents adopted in accordance with the
provisions of K.S.A. 2000 Supp. 74-32,137 and amendments thereto, or
commence part-time practice as an advanced registered nurse practi-
tioner, in a rural area or a medically underserved area, continue such
practice for the total amount of time required under the agreement, and
comply with such other terms and conditions as may be specified by such
the agreement;

      (3) commence full-time practice, or the equivalent to full-time prac-
tice as specified by rules and regulations of the state board of regents
adopted in accordance with the provisions of K.S.A. 2000 Supp. 74-32,137
and amendments thereto, as an advanced registered nurse practitioner
in a rural area or medically underserved area within six months after
graduation from the educational and training program for advanced reg-
istered nurse practitioners in accordance with the agreement entered into
by the scholarship recipient and continue such full-time practice, or the
equivalent to full-time practice, in a rural area or medically underserved
area for the total amount of time required under the agreement, which
shall be for a period of not less than the length of the course of instruction
for which the scholarship assistance was provided, or commence part-time
practice in a rural area or medically underserved area and continue such
part-time practice in a rural area or medically underserved area for the
total amount of time required under the agreement, which shall be for a
period of time that is equivalent to full time, as determined by the state
board of regents, multiplied by the length of the course of instruction for
which the scholarship assistance was provided;

      (4) maintain records and make reports to the executive officer as may
be required by the executive officer to document the satisfaction of the
obligation under this act; and

      (5) upon failure to satisfy an agreement to engage in full-time practice
as an advanced registered nurse practitioner, or the equivalent to full-
time practice as specified by rules and regulations of the state board of
regents adopted in accordance with the provisions of K.S.A. 2000 Supp.
74-32,137 and amendments thereto, or in part-time practice, in a rural
area or medically underserved area for the required period of time under
any such agreement, repay to the state amounts as provided in K.S.A.
2000 Supp. 74-32,135, and amendments thereto.

      Sec.  45. K.S.A. 2000 Supp. 74-32,135 is hereby amended to read as
follows: 74-32,135. (a) Except as provided in K.S.A. 2000 Supp. 74-
32,136, and amendments thereto, upon the failure of any person to satisfy
the obligation under any agreement entered into pursuant to this act,
such person shall pay to the executive officer an amount equal to the total
amount of money received by such person pursuant to such agreement
which is financed by the state of Kansas plus annual accrued interest at
a rate of 15% which is equivalent to the interest rate applicable to loans
made under the federal PLUS program at the time such person first en-
tered into an agreement plus five percentage points. Installment payments
of such amounts may be made in accordance with rules and regulations
of the state board of regents, except that such installment payments shall
commence six months after the date of the action or circumstances that
cause the failure of the person to satisfy the obligations of such agree-
ments, as determined by the executive officer based upon the circum-
stances of each individual case. Amounts paid under this section to the
executive officer shall be deposited in the advanced registered nurse prac-
titioner student service scholarship program fund in accordance with
K.S.A. 2000 Supp. 74-32,138 and amendments thereto.

      (b) The state board of regents is authorized to turn any repayment
account arising under the advanced registered nurse practitioner service
scholarship program over to a designated loan servicer or collection
agency, the state not being involved other than to receive payments from
the loan servicer or collection agency at the interest rate prescribed under
this section.

      Sec.  46. K.S.A. 2000 Supp. 74-32,136 is hereby amended to read as
follows: 74-32,136. (a) An obligation under any agreement entered into
under the advanced registered nurse practitioner student service schol-
arship program shall be postponed: (1) During any required period of
active military service; (2) during any period of service in the peace corps;
(3) during any period of service as a part of volunteers in service to Amer-
ica (VISTA); (4) during any period of service commitment to the United
States public health service; (5) during any period of religious missionary
work conducted by an organization exempt from tax under subsection (c)
of section 501(c)(3) of the federal internal revenue code of 1986 as in
effect on January 1 December 31, 1993 2000; (6) during any period of
temporary medical disability during which time the person obligated is
unable because of such temporary medical disability to practice as an
advanced registered nurse practitioner; or (7) during any period of time
the person obligated is enrolled and actively engaged on a full-time basis
in a course of study leading to a graduate degree in a field in for which
such person was awarded a scholarship under this act which degree is
higher than that formerly attained formerly by the person obligated; (8)
during any period of time the person obligated is on job-protected leave
under the federal family and medical leave act of 1993; or (9) during any
period of time the state board of regents determines that the person ob-
ligated is unable because of special circumstances to practice as an ad-
vanced registered nurse practitioner. Except for clauses (6), (8) and (9),
an obligation under any agreement entered into as provided in the ad-
vanced registered nurse practitioner service scholarship program shall not
be postponed more than five years from the time the obligation was to
have been commenced under any such agreement. An obligation under
any agreement as provided in the advanced registered nurse practitioner
service scholarship program shall be postponed under clause (6) during
the period of time the medical disability exists. An obligation to engage in
practice as an advanced registered nurse practitioner in accordance with
an agreement under the advanced registered nurse practitioner service
scholarship program shall be postponed under clause (8) during the pe-
riod of time the person obligated remains on FMLA leave. An obligation
to engage in practice as an advanced registered nurse practitioner in ac-
cordance with an agreement under the advanced registered nurse prac-
titioner service scholarship program shall be postponed under clause (9)
during the period of time the state board of regents determines that the
special circumstances exist. The state board of regents shall adopt rules
and regulations prescribing criteria or guidelines for determination of the
existence of special circumstances causing an inability to practice as an
advanced registered nurse practitioner, and shall determine the docu-
mentation required to prove the existence of such circumstances.

      (b) An obligation under any agreement under entered into in accord-
ance with the advanced registered nurse practitioner student service
scholarship program shall be satisfied: (1) If the obligation in accord-
ance with an agreement under the scholarship program has been com-
pleted in accordance with the agreement; (2) if the person obligated dies;
(3) if, because of permanent physical disability, the person obligated is
unable to satisfy the obligation; or (4) if the person obligated fails to satisfy
the requirements for completion of the educational and training program
after making the best effort possible to do so; or (5) if the person obligated
is unable to obtain employment as an advanced registered nurse practi-
tioner and continue in such employment after making the best effort pos-
sible to do so.

      Sec.  47. K.S.A. 2000 Supp. 74-32,137 is hereby amended to read as
follows: 74-32,137. The state board of regents, after consultation with the
committee, may adopt rules and regulations establishing minimum terms,
conditions and obligations which shall be incorporated into the provisions
of any agreement under the advanced registered nurse practitioner stu-
dent service scholarship program. The terms, conditions and obligations
shall be consistent with the provisions of law relating to the advanced
registered nurse practitioner student service scholarship program. The
terms, conditions and obligations so established shall include, but not be
limited to, the terms of eligibility for financial assistance under the ad-
vanced registered nurse practitioner student service scholarship program,
the amount of financial assistance to be offered, the length of practice in
a rural area or medically underserved area required as a condition to the
receipt of such financial assistance to be offered, the amount of money
required to be repaid because of failure to satisfy the obligations under
an agreement and the method of repayment and such other additional
provisions as may be necessary to carry out the provisions of the advanced
registered nurse practitioner student service scholarship program. The
state board of regents, after consultation with the committee, shall adopt
rules and regulations establishing criteria for evaluating the financial need
of applicants for scholarships and may adopt such other rules and regu-
lations as may be necessary to administer the advanced registered nurse
practitioner student service scholarship program.

      Sec.  48. K.S.A. 2000 Supp. 74-32,138 is hereby amended to read as
follows: 74-32,138. There is hereby created in the state treasury the ad-
vanced registered nurse practitioner student service scholarship program
fund. The executive officer shall remit all moneys received under this act
to the state treasurer at least monthly. Upon receipt of each such remit-
tance the state treasurer shall deposit the entire amount thereof in the
state treasury, and such amount shall be credited to the advanced regis-
tered nurse practitioner student service scholarship program fund. All
expenditures from the advanced registered nurse practitioner student
service scholarship program fund shall be for scholarships awarded under
this act and shall be made in accordance with appropriation acts upon
warrants of the director of accounts and reports issued pursuant to vouch-
ers approved by the executive officer or by a person designated by the
executive officer.

      New Sec.  49. (a) There is hereby established the professional service
scholarship advisory committee which shall consist of the following mem-
bers appointed by the state board of regents: One member representing
osteopaths; one member representing teachers; one member represent-
ing optometrists; one member representing ethnic minority graduate stu-
dents; one member representing reserve officer candidates; one member
representing nurses; and the chairperson of the nursing service scholar-
ship review committee or a designee of the chairperson.

      (b) The professional service scholarship advisory committee shall
make recommendations to the state board of regents regarding budget
requests for and administration of professional service scholarships.

      (c) The members of the professional service scholarship advisory
committee shall be appointed for three-year terms and shall serve until
their successors are appointed and qualified. If a vacancy occurs prior to
the expiration of a term, the appointing authority shall appoint a person
to fill such position for the unexpired term. Persons appointed to the
committee may be reappointed by the appointing authority for succeed-
ing terms.

      (d) The executive officer of the state board of regents or a designee
of the executive officer shall provide relevant information, staff assistance,
and meeting arrangements for the professional service scholarship advi-
sory committee which shall meet at least once per year.

      (e) Members of the professional service advisory committee shall be
eligible for amounts provided in subsection (e) of K.S.A. 75-3223, and
amendments thereto, for attendance at any meeting of the committee or
any subcommittee meeting authorized by the committee. Amounts paid
under this subsection shall be from appropriations to the state board of
regents upon warrants of the director of accounts and reports issued pur-
suant to vouchers approved by the state board or a person designated by
the state board.

      Sec.  50. K.S.A. 74-3223, 74-3224, 74-3225, 74-3226, 74-3227, 74-
3228, 74-3246, 74-3247, 74-3248, 74-3267a, 74-3268, 74-3268a, 74-3269,
74-3271, 74-3272, 74-3273, 74-3291, 74-3293, 74-3294, 74-3297, 74-
3299, 74-32,100, 74-32,101, 74-32,102, 74-32,103, 74-32,105 and 74-
32,106 and K.S.A. 2000 Supp. 74-3256, 74-3257, 74-3258, 74-3259, 74-
3260, 74-3265, 74-3266, 74-3267, 74-3292, 74-3295, 74-3296, 74-3298,
74-32,104, 74-32,107, 74-32,112, 74-32,113, 74-32,114, 74-32,115, 74-
32,116, 74-32,117, 74-32,118, 74-32,131, 74-32,132, 74-32,133, 74-
32,134, 74-32,135, 74-32,136, 74-32,137 and 74-32,138 are hereby re-
pealed.

      Sec.  51. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 7, 2001.
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