Senate Bill 2373

AN ACT TO CREATE THE HOSPITAL NURSES RETENTION LOAN REPAYMENT PROGRAM FOR NEW NURSING GRADUATES TO BE ADMINISTERED BY THE MISSISSIPPI POSTSECONDARY EDUCATION FINANCIAL ASSISTANCE BOARD; TO PROVIDE FOR THE ELIGIBILITY REQUIREMENTS; TO SET A MAXIMUM AMOUNT OF LOAN REPAYMENT; TO ESTABLISH THE PROCEDURES FOR THE LOAN PROCESS; TO REQUIRE THE MISSISSIPPI POSTSECONDARY EDUCATION FINANCIAL ASSISTANCE BOARD TO PROMULGATE REGULATIONS NECESSARY FOR THE PROPER ADMINISTRATION OF THE ACT, INCLUDING SETTING A FISCAL YEAR POLICY FOR THE PROGRAM AND APPLICATION DATES AND DEADLINES; TO ESTABLISH A SPECIAL FUND IN THE STATE TREASURY TO BE DESIGNATED THE HOSPITAL NURSES LOAN REPAYMENT PROGRAM FUND; TO REPEAL SECTIONS 37-106-59 AND 37-106-60, MISSISSIPPI CODE OF 1972, WHICH ESTABLISHES A FORGIVABLE LOAN PROGRAM FOR BACCALAUREATE AND GRADUATE STUDIES IN NURSING; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) There is established the "Hospital Nurses Retention Loan Repayment Program" for new nursing graduates to be administered by the Mississippi Postsecondary Education Financial Assistance Board.

(2) Subject to the availability of funds, an eligible applicant for an initial award must have:

(a) Legal residency in the State of Mississippi;

(b) Gained employment within the last year for the first time as a full-time licensed practical nurse or licensed registered nurse at a general acute care hospital in the State of Mississippi that is licensed by the Mississippi State Department of Health;

(d) Outstanding qualifying educational loans, received at any point during the recipients postsecondary education career, which may include the principal, interest and related expenses such as the required interest premium on the unpaid balances of government and commercial loans obtained by the recipient for educational expense.

(3) Persons who have received funds from state-forgivable loan programs established under Mississippi law, or who are in default or delinquent on any federal, state, local or commercial qualifying educational loan, shall not be eligible for this program.

(4) Recipients in the program shall be selected on a first-come, first-served basis from all eligible applicants. The Mississippi Postsecondary Education Financial Assistance Board shall renew eligible applicants approved in prior years only if the renewal applicant continues to meet the standards set forth in this act, and the renewal applicant has not received full funding provided by this subsection (4).

(5) Awards for recipients who are employed at a licensed general acute care hospital in the state may be a maximum of Six Thousand Dollars ($6,000.00) for each year of employment up to three (3) years.

(6) A recipient shall not be penalized for ending employment at a licensed general acute care hospital in the State of Mississippi if the recipient begins working for another licensed general acute care hospital in the State of Mississippi during the year on which the award is based.

(7) Awards shall be granted on a year-to-year basis, and recipients have no obligation to seek a subsequent award.

(8) Awards shall be paid annually, after the expiration of the year of employment for which the award was granted, to the recipient's lender or loan service provider, to be applied to the outstanding balance. Monies paid by the recipient or on the recipient's behalf toward qualifying educational loans before payment of the award shall not be eligible for reimbursement through the program.

(9) During the employment year for which the award is granted, a recipient shall at all times keep the State Financial Aid Board informed of any changes to the recipient's current, correct and complete employment information and status.

(10) Recipients who fail to maintain a relevant Mississippi professional license or fail to fulfill the year of employment on which the award was based forfeit any right to the award.

(11) The Mississippi Postsecondary Education Financial Assistance Board, in collaboration with the State Board of Nursing and any other applicable state agency as determined by the Mississippi Postsecondary Education Financial Assistance Board, shall attempt to track award recipients under this program through their third employment year, unless the recipient leaves employment at a licensed general acute care hospital in the state at an earlier date. Data collected shall include each recipients' place of employment and any other pertinent information necessary to determine the efficacy of the program in retaining nurses in licensed general acute care hospitals in the State of Mississippi.

(12) The Mississippi Postsecondary Education Financial Assistance Board shall promulgate regulations necessary for the proper administration of this section, including setting a fiscal year policy for the program and application dates and deadlines.

(13) There is established in the State Treasury a special fund to be designated the "Hospital Nurses Retention Loan Repayment Program Fund," into which shall be deposited those funds appropriated by the Legislature, and any other funds that may be made available, for the purpose of implementing the loan repayment program established herein. Money in the fund at the end of the fiscal year shall not lapse into the General Fund, and interest earned on any amounts deposited into the fund shall be credited to the special fund.

(14) This section shall stand repealed on July 1, 2027.

SECTION 2. Sections 37-106-59 and 37-106-60, Mississippi Code of 1972, which establishes a forgivable loan program for baccalaureate and graduate studies in nursing, is repealed from and after July 1, 2023.

SECTION 3. This act shall take effect and be in force from and after its passage.