October 20, 2005, Introduced by Senator SWITALSKI and referred to the Committee on Appropriations.
A bill to amend 2002 PA 591, entitled
"Michigan nursing scholarship act,"
by amending the title and sections 1, 2, 3, 4, 5, 6, 7, 8, and 9
(MCL 390.1181, 390.1182, 390.1183, 390.1184, 390.1185, 390.1186,
390.1187, 390.1188, and 390.1189) and by adding sections 7a and 7b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to establish an educational scholarship program for
eligible
resident students enrolled in certain nursing programs
schools; to prescribe conditions for repayment of the scholarships;
to provide grants to support nursing schools in this state; to
provide
for the administration of the Michigan nursing
scholarship program and nursing school grant program; and to
prescribe certain powers and duties of certain state officers,
agencies, and departments.
Sec. 1. This act shall be known and may be cited as the
"Michigan "nursing
scholarship education incentives act".
Sec. 2. As used in this act:
(a) "Authority" means the Michigan higher education assistance
authority created by 1960 PA 77, MCL 390.951 to 390.961.
(b) "Eligible costs" means tuition and fees charged by an
eligible institution; related costs for room, board, books,
supplies, transportation, or day care; and other costs determined
by the authority.
(c) "Eligible employment" means a registered nurse or licensed
practical nurse providing full-time nursing care, or part-time
nursing care if section 7 applies, in a ward, emergency department,
emergency room, operating room, or trauma center of a hospital
licensed under article 17 of the public health code, 1978 PA 368,
MCL 333.20101 to 333.22260, in a nursing home or hospice licensed
under article 17 of the public health code, 1978 PA 368, MCL
333.20101 to 333.22260, in a health facility or agency licensed
under article 17 of the public health code, 1978 PA 368, MCL
333.20101 to 333.22260, that provides nonemergency health care to
patients without receiving compensation for providing that
nonemergency health care, or in a clinic or other health care
program operated by a local health department that provides 1 or
more required services under part 24 of the public health code,
1978 PA 368, MCL 333.2401 to 333.2498, or as an employee of a home
health care agency providing home patient care.
(d) "Eligible institution" means a degree or certificate
granting public or independent nonprofit college or university,
junior college, or community college in this state.
(e) "Licensed practical nurse" means an individual licensed to
engage in the practice of nursing as a licensed practical nurse as
defined in section 17201 of the public health code, 1978 PA 368,
MCL 333.17201.
(f)
"Nursing program school" means a
program for the
training of individuals to become registered nurses or licensed
practical nurses operated in this state by an eligible institution
and approved by the Michigan board of nursing.
(g) "Registered professional nurse" means that term as defined
in section 17201 of the public health code, 1978 PA 368, MCL
333.17201.
Sec.
3. The Michigan nursing scholarship program is created,
to be administered by the authority. The authority shall do all of
the following:
(a) Award scholarships to eligible students pursuant to this
act.
(b) Develop a scholarship agreement to be entered into by a
scholarship recipient and the authority that contains the terms of
a scholarship made under this act and the rights and obligations of
the scholarship recipient and the authority.
(c) Collect repayment of scholarships if required under
section 7.
(d) Conduct periodic audits of scholarship recipients to
ensure compliance with the terms of the scholarship agreement and
take necessary steps to enforce the terms of the scholarship
agreement.
(e)
Publicize the Michigan nursing scholarship program and
recruit
qualifying students to participate in the Michigan
nursing scholarship program.
(f) Promulgate rules, as necessary to implement this act,
pursuant to the administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328. The rules may include additional standards of
eligibility for students to receive scholarships under this act.
Sec. 4. The authority may award a scholarship under this act
to an individual determined by the authority to meet all of the
following eligibility criteria:
(a) Is a United States citizen or permanent resident of the
United States.
(b) Has resided continuously in this state for the 12 months
immediately preceding the date of his or her application and is not
a resident of any other state.
(c)
Is enrolled or has been accepted into a nursing program
school.
(d) Has signed a written scholarship agreement with the
authority stating the individual's intention to pursue nursing as a
career and to serve in eligible employment in this state for not
less than 1 of the following periods:
(i) One year if the individual received scholarship assistance
under this act in 1 academic year of full-time enrollment in a
nursing program
school.
(ii) Two years if the individual received scholarship
assistance under this act in 2 academic years of full-time
enrollment
in a nursing program school.
(iii) Three years if the individual received scholarship
assistance under this act in 3 academic years of full-time
enrollment
in a nursing program school.
(iv) Four years if the individual received scholarship
assistance under this act in 4 academic years of full-time
enrollment
in a nursing program school.
(e) Is in compliance with this act and the rules promulgated
under this act.
(f) Has not been convicted of a felony involving an assault,
physical injury, or death.
(g) Meets any other standards established in rules promulgated
by the authority under section 3.
Sec.
5. (1) Subject to subsection (2) (3)
and section 8(2),
each
scholarship recipient shall receive a $4,000.00 scholarship
of not more than $4,000.00 for 1 academic year of full-time
enrollment, or a partial scholarship for part-time enrollment, in a
nursing
program school.
(2) The authority shall determine the amount of a partial
scholarship
by multiplying $4,000.00 the scholarship amount for
full-time enrollment in that state fiscal year by the number of
credit hours for which a student enrolls in an academic year, and
dividing
the product by 30 if the nursing program school uses
semester
credits or by 45 if the nursing program school uses term
credits.
(3) (2)
A scholarship described in subsection (1) shall not
exceed an amount equal to the recipient's eligible costs minus any
other grants or scholarships the recipient receives in any academic
year
in a nursing program school.
(4) (3)
An individual shall not receive scholarship
assistance for more than 4 academic years.
Sec. 6. Recipients of scholarship assistance under this act
shall continue to receive scholarship payments only during periods
that the authority finds that the recipient is both of the
following:
(a)
Enrolled as a full-time or part-time student in a nursing
program
school.
(b) Maintaining satisfactory progress as determined by the
eligible institution.
Sec. 7. (1) An individual shall not receive a scholarship
under this act unless he or she enters into a written agreement
with the authority, in which he or she agrees to all of the
following:
(a) To obtain a license from this state as a registered
professional nurse or licensed practical nurse within 1 year after
completing
the nursing program school for which the
scholarship
was awarded.
(b)
Beginning within 1 year after completing the nursing
program
school for which the scholarship was awarded, to serve for
the period of eligible employment applicable to the individual
under section 4(d) in this state.
(c) To provide the authority evidence of compliance with
section 6 as required by the authority.
(d) Except as provided in subsection (4), (5), (6), or (7), if
the conditions in subdivisions (a) and (b) are not satisfied, to
repay all or part of a scholarship award received under this act
plus interest and, if applicable, reasonable collection fees, in
compliance with rules promulgated by the authority.
(2) The agreement described in subsection (1) must fully
disclose the terms and conditions under which scholarship
assistance under this act is provided and under which repayment may
be required. The agreement must include a description of both of
the following:
(a) The appeals procedures established by the authority under
which a recipient may appeal a determination of noncompliance with
any provision under this act.
(b) The procedures under which a recipient of assistance
received under this act who serves in eligible employment in this
state for less than the period required under subsection (1) may
have the repayment requirements extended under subsection (4) or
excused under subsection (5), (6), or (7).
(3) The authority shall require recipients found by the
authority to be in noncompliance with the agreement entered into
under this section to repay the scholarship awards received, plus
interest, but in no event at an interest rate higher than the rate
applicable to other student loans made or guaranteed by the
authority in that time period and, where applicable, reasonable
collection fees, on a schedule and at a rate of interest to be
prescribed by the authority by rule.
(4) A recipient is not in violation of the agreement entered
into pursuant to subsection (1) and any repayment obligation is
deferred during any period in which the recipient meets 1 of the
following:
(a) Is pursuing a full-time course of study related to the
field of nursing at an eligible institution.
(b) Is serving as a member of the armed services of the United
States for a period of 3 years or less.
(c) Is temporarily totally disabled for a period of 3 years or
less, as established by sworn affidavit of a qualified physician.
(d) Satisfies the provisions of any other repayment exceptions
prescribed by the authority by rule.
(5) A recipient is not in violation of the agreement entered
into pursuant to subsection (1), and the recipient may be excused
from repayment of any scholarship assistance received under this
act, if the recipient is employed providing part-time nursing care
and all of the following are met:
(a)
The department authority by rule has
established a
minimum average number of hours per week a recipient must be
employed providing nursing care to qualify as providing part-time
nursing care for the purposes of this subsection, and the recipient
meets this requirement.
(b) The recipient is engaged in eligible employment in this
state.
(c) The recipient provides part-time nursing care for not less
than 1 of the following periods:
(i) Two years if the recipient received a
$4,000.00 1
scholarship under this act for 1 academic year of full-time
enrollment
in a nursing program school. If the recipient
received
a partial scholarship for 1 academic year of part-time enrollment,
this 2-year time period is reduced to a time period determined by
multiplying 2 years by a fraction, the numerator of which is the
dollar amount of the partial scholarship and the denominator of
which
is $4,000.00 the scholarship amount for full-time
enrollment in that state fiscal year.
(ii) Four years if the recipient received two
$4,000.00 2
scholarships under this act for 2 academic years of full-time
enrollment
in a nursing program school. If the recipient
received
partial scholarships for 2 academic years of part-time enrollment,
this 4-year time period is reduced to a time period determined by
multiplying 4 years by a fraction, the numerator of which is the
dollar amount of the partial scholarships and the denominator of
which
is $8,000.00 200% of the scholarship amount for full-time
enrollment in that state fiscal year.
(iii) Six years if the recipient received three
$4,000.00 3
scholarships under this act for 3 academic years of full-time
enrollment
in a nursing program school. If the recipient
received
partial scholarships for 3 academic years of part-time enrollment,
this 6-year time period is reduced to a time period determined by
multiplying 6 years by a fraction, the numerator of which is the
dollar amount of the partial scholarships and the denominator of
which
is $12,000.00 300% of the scholarship amount for full-time
enrollment in that state fiscal year.
(iv) Eight years if the recipient received four
$4,000.00 4
scholarships under this act for 4 academic years of full-time
enrollment
in a nursing program school. If the recipient
received
partial scholarships for 4 academic years of part-time enrollment,
this 8-year time period is reduced to a time period determined by
multiplying 8 years by a fraction, the numerator of which is the
dollar amount of the partial scholarships and the denominator of
which
is $16,000.00 400% of the scholarship amount for full-time
enrollment in that state fiscal year.
(6) A recipient is not in violation of the agreement entered
into pursuant to subsection (1), and the recipient may be excused
from repayment of any scholarship assistance received under this
act, if the recipient meets both of the following:
(a) Received 1 or more partial scholarships under this act for
part-time
enrollment in a nursing program school.
(b) Is engaged in full-time, eligible employment in this state
for not less than 1 of the following time periods:
(i) If the recipient received a partial scholarship for 1
academic year of part-time enrollment, a time period determined by
multiplying 1 year by a fraction, the numerator of which is the
dollar amount of the partial scholarship and the denominator of
which
is $4,000.00 the scholarship amount for full-time
enrollment in that state fiscal year.
(ii) If the recipient received partial scholarships for 2
academic years of part-time enrollment, a time period determined by
multiplying 2 years by a fraction, the numerator of which is the
dollar amount of the partial scholarships and the denominator of
which
is $8,000.00 200% of the scholarship amount for full-time
enrollment in that state fiscal year.
(iii) If the recipient received partial scholarships for 3
academic years of part-time enrollment, a time period determined by
multiplying 3 years by a fraction, the numerator of which is the
dollar amount of the partial scholarships and the denominator of
which
is $12,000.00 300% of the scholarship amount for full-time
enrollment in that state fiscal year.
(iv) If the recipient received partial scholarships for 4
academic years of part-time enrollment, a time period determined by
multiplying 4 years by a fraction, the numerator of which is the
dollar amount of the partial scholarships and the denominator of
which
is $16,000.00 400% of the scholarship amount for full-time
enrollment in that state fiscal year.
(7) A recipient is excused from repayment of any scholarship
assistance received under this act if the recipient becomes
permanently and totally disabled as established by sworn affidavit
of a qualified physician or dies or if circumstances occur that the
authority considers as a compelling reason to excuse repayment.
Sec. 7a. The nursing school grant program is created, to be
administered by the authority. The authority shall do all of the
following:
(a) Award grants to nursing schools pursuant to this act.
(b) Develop a form of grant application for use by a nursing
school seeking a grant under this act that contains the terms of
the grant and the rights and obligations of the nursing school if
it is awarded a grant.
(c) Conduct periodic audits of grant recipients to ensure
compliance with the terms of the grant and take necessary steps to
enforce the terms of the grant.
(d) Publicize the nursing school grant program.
(e) Promulgate rules as necessary to implement this act
pursuant to the administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328. The rules may include additional standards of
eligibility for nursing schools to receive grants under this act.
Sec. 7b. (1) The authority may award a grant under this act to
a nursing school determined by the authority to meet all of the
following eligibility criteria:
(a) The nursing school is engaged in training of individuals
to become registered nurses or licensed practical nurses.
(b) The nursing school is operated in this state by an
eligible institution.
(c) The nursing school is approved by the Michigan board of
nursing.
(d) The nursing school has enrolled more students in the
academic year when the grant application is submitted than in the
previous academic year.
(e) The nursing school has submitted a written grant
application to the authority in the form established by the
department under section 7a(b).
(f) The nursing school is in compliance with this act and the
rules promulgated under this act.
(g) The nursing school meets any other standards established
in rules promulgated by the department under section 7a.
(2) A nursing school may only submit 1 grant application in an
academic year.
(3) A nursing school may only use grant money received under
this act for any of the following purposes:
(a) Employment of full-time and part-time faculty and support
personnel.
(b) Providing clinical supervision at hospitals and other
health care facilities.
(c) Purchasing instructional equipment, materials, supplies,
and software.
(d) Providing special preparation classes for nursing
graduates taking a state-approved licensing examination.
(e) Producing marketing and recruitment materials aimed at
attracting qualified students to the nursing school.
Sec. 8. (1) The department of treasury shall establish and
administer
a restricted account in the general fund for the
Michigan nursing scholarship program and nursing school grant
programs established in this act, named the "nursing education
incentive fund". The department of treasury shall credit to the
account money appropriated from the Michigan merit award trust fund
established in section 3 of the Michigan merit award scholarship
act, 1999 PA 94, MCL 390.1453, or appropriated or received from any
other source including, but not limited to, amounts repaid to the
authority on scholarships awarded under this act and earnings in
the account. The department of treasury shall use the money in the
account only to provide money to the authority for scholarships and
grants awarded under this act.
(2) Before each state fiscal year, from money appropriated for
that fiscal year for the nursing scholarship and nursing school
grant programs, the authority shall determine the amount allocated
to each of the programs; the amount it intends to distribute from
money allocated to the nursing school grant programs to individual
nursing schools; and the scholarship amount for full-time
enrollment for that state fiscal year, based on its determination
of available resources and amounts appropriated.
(3) (2)
Money in the account at the end of a state fiscal
year shall not revert to the general fund but shall be carried over
in the account to the next state fiscal year.
Sec. 9. Not later than November 1, the authority shall
annually submit a report to the state budget director, the house
and senate appropriation subcommittees on higher education, and the
house and senate fiscal agencies for the preceding state fiscal
year on the nursing scholarship program. The report shall include,
but is not limited to, the amount allocated to each of the
programs, the number of full and partial scholarships, the total
dollar amount of scholarships awarded, the type of eligible
institutions in which the scholarship recipients enrolled, and the
number of scholarships, if any, for which students have incurred a
repayment obligation under section 7(3).