October 20, 2005, Introduced by Senators BROWN, SWITALSKI, GEORGE, TOY and BIRKHOLZ and referred to the Committee on Appropriations.
A bill to establish an educational scholarship program for
eligible resident students enrolled in certain nursing faculty
programs; to prescribe conditions for repayment of the
scholarships; to provide for the administration of the nursing
faculty scholarship program; and to prescribe certain powers and
duties of certain state officers, agencies, and departments.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"nursing faculty scholarship act".
Sec. 3. 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 reasonable living
expenses that the authority determines are appropriate for a
student in a nursing faculty program.
(c) "Eligible employment" means teaching in a nursing program
at an eligible institution.
(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) "Nursing faculty program" means a graduate school of
nursing, or a program at a graduate school of teaching that focuses
on preparing faculty for nursing programs, approved by the Michigan
board of nursing and operated by an eligible institution.
(f) "Nursing program" means a program that meets all of the
following:
(i) Trains individuals to become registered nurses.
(ii) Awards an associate or bachelor's degree for successful
completion.
(iii) Is operated in this state by an eligible institution.
(iv) Is 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. 5. The nursing faculty scholarship program is created, to
be administered by the authority. The authority shall do all of the
following:
(a) Award scholarships to eligible students under 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 11.
(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 nursing faculty scholarship program and
recruit qualifying students to participate in the nursing faculty
scholarship program.
(f) Promulgate any rules 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. 7. 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 faculty
program.
(d) Has signed a written scholarship agreement with the
authority stating the individual's intention to serve in eligible
employment in this state for 3 continuous years after completion of
the graduate nursing program.
(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 5.
Sec. 9. (1) Subject to subsection (2), each scholarship
recipient shall receive a $4,000.00 scholarship upon enrollment in
a nursing faculty program.
(2) A scholarship described in subsection (1) shall not exceed
an amount equal to the scholarship recipient's eligible costs minus
any other grants or scholarships the scholarship recipient receives
upon enrollment in a nursing faculty program.
Sec. 11. (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) Beginning within 1 year after completing the nursing
faculty program for which the scholarship was awarded, to serve for
3 years of continuous eligible employment in this state.
(b) Except as provided in subsection (4) or (5), if he or she
does not meet the condition described in subdivision (a), 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) shall fully
disclose the terms and conditions under which scholarship
assistance under this act is provided and under which repayment may
be required. The agreement shall include a description of both of
the following:
(a) The appeals procedures established by the authority under
which a scholarship recipient may appeal a determination of
noncompliance with any provision under this act.
(b) The procedures under which a scholarship recipient who
serves in eligible employment in this state for less than the
period required under subsection (1) may have the repayment
requirement extended under subsection (4) or excused under
subsection (5).
(3) The authority shall require a scholarship recipient found
by the authority to be in noncompliance with the agreement entered
into under this section to repay the scholarship awards received,
plus interest at a rate that does not exceed the rate applicable to
other student loans 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 scholarship recipient is not in violation of the
agreement entered into under subsection (1) and any repayment
obligation is deferred during any period in which the scholarship
recipient meets 1 of the following:
(a) Is serving as a member of the armed services of the United
States for a period of 3 years or less.
(b) Is temporarily totally disabled for a period of 3 years or
less, as established by sworn affidavit of a qualified physician.
(c) Satisfies the provisions of any other repayment exceptions
prescribed by the authority by rule.
(5) A scholarship recipient is excused from repayment of any
scholarship assistance received under this act if the scholarship
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. 13. (1) The department of treasury shall establish and
administer a restricted account in the general fund for the nursing
faculty scholarship program. The department of treasury shall
credit to the account money 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.
(2) The department of treasury shall use the money in the
account only to provide money to the authority for scholarships
awarded under this act.
(3) Money in the account at the end of a fiscal year shall not
revert to the general fund but shall be carried over in the account
to the next fiscal year.
Sec. 15. 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 fiscal year on
the nursing faculty scholarship program. The report shall include,
but is not limited to, the number of scholarships awarded under
this act, 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 11(3).