Senate Committee Substitute

HEALTH PROFESSIONAL LOAN REPAYMENT PROGRAM (SECTIONS 191.430 TO 191.831)

The act repeals current law relating to student loans for certain health professional students and establishes the "Health Professional Loan Repayment Program". Under this program, the Department of Health and Senior Services shall provide forgivable loans in order to repay existing loans for eligible educational expenses for health professional students.

The Director of the Department shall have the discretion to select the health professionals who are eligible for the forgivable loans in accordance with the greatest need in the best interest of the public. Individuals receiving loans under this program shall agree to serve at least 2 years in an area of defined need as a condition of receipt of the funds, among other criteria that must be met as delineated in the act. An individual who fails to uphold the loan agreement shall be liable for the amount paid to the individual by the Department under this program. Furthermore, if an individual breaches a written contract executed pursuant to this provision by failing to begin or complete his or her service obligation, the state shall be entitled to recover from such person an amount equal to:

· The total amount of the loan awarded by the Department or, if the Department had already awarded partial forgiveness at the time of the breach, the amount of the loan not yet forgiven;

· The interest on the amount that would be payable if at the time the loan was awarded it was a loan bearing interest at the maximum prevailing rate as determined by the Treasurer of the United States;

· An amount equal to any damages incurred by the Department as a result of the breach; and

· Any legal fees or associated costs incurred by the Department or the state of Missouri in the collection of damages.

The act additionally creates the Health Professional Loan Incentive Fund for the purpose of allowing the Department to provide loans under this provision. The fund will consist of funds appropriated to it by the General Assembly.

These provisions are identical to HB 542 (2023) and substantially similar to SB 555 (2023).

NURSING EDUCATION INCENTIVES (SECTIONS 335.203 TO 335.257)

The act modifies the Nursing Education Incentive Program. Under current law, grant awards made under the program are limited to $150,000. This act repeals that limit. Additionally, the State Board of Nursing is required to collect, at the time of any license application or license renewal application, a Nursing Education Incentive Program surcharge from each person licensed or relicensed as a nurse under Missouri law. Such surcharge shall be equal to $1 for practical nurses and $5 for registered professional nurses.

The act repeals the Nursing Student Loan Program and the Nursing Student Loan Repayment Program.

These provisions are identical to HB 775 (2023).

UPSKILL CREDENTIALS (SECTION 620.500)

This act creates new provisions allowing the Department of Economic Development (DED) to disburse grants to qualifying employers for each employee or prospective employee who obtains upskill credentials, as defined in the act. In order to receive such grants a qualifying employer is required to submit an application to DED, as provided in the act. Applications are evaluated on a competitive basis using the following criteria:

· The pledged average wage increase that employees or prospective employees will realize after obtaining an upskill credential in relation to the cost of obtaining the credential;

· The level of economic distress to the qualifying employer's region and the balance of awards made to the various regions of the state; and

· The contribution made by the qualifying employer toward the cost of obtaining the upskill credential.

At the close of each application period, to be determined by DED, applications will be evaluated and preliminary awards for reimbursement may be made.

In making preliminary awards of reimbursement, one-third of the awards shall be reserved for employers with 1-50 employees and one-third of the awards shall be reserved for employers with 51-200 employees. If any reserved moneys are not awarded by March 1 of the fiscal year, the moneys may thereafter be awarded to any qualifying employer.

Upon being given a preliminary award for reimbursement, each qualifying employer must sponsor a current or prospective employee to obtain an upskill credential within 12 months of the preliminary award. Employees may not commence the process of obtaining the credential until after a preliminary award has been made. Upon obtaining a credential, the employer shall submit proof of the same to DED along with proof that the individual who completed the training is a Missouri resident with a verifiable Missouri address.

The act prohibits qualifying employers from receiving funds under this act for an employee's upskill credential if:

· The qualifying employer is receiving funds under the Missouri One Start Program for the same upskill credential; or

· The employee is receiving a Fast Track Workforce Incentive Grant for the same upskill credential.

The Upskill Credential Fund is established, consisting of moneys appropriated to it by the General Assembly, not exceeding $6 million in any fiscal year, as well as moneys accepted from any other source. Any funds not expended remain in the fund.

The act contains a sunset clause.

These provisions are substantially similar to SB 53 (2023), SB 760 (2022), and HB 2550 (2022).

SCOTT SVAGERA