Second Regular Session Sixty-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 06-0695.01 Jerry Barry SENATE BILL 06-136 SENATE SPONSORSHIP Tapia, and Tochtrop HOUSE SPONSORSHIP Butcher, and Cerbo Senate Committees House Committees Education A BILL FOR AN ACT Concerning authorization of a nursing teacher loan forgiveness pilot program. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Authorizes the Colorado commission on higher education to establish a nursing teacher loan forgiveness pilot program ("pilot program") for persons who teach courses in nursing at a Colorado public institution of higher education for a period of at least 5 consecutive academic years after receipt of an advanced degree. Specifies other required conditions for the loan forgiveness. Establishes a fund. Repeals the program effective July 1, 2018. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Title 23, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW ARTICLE to read: ARTICLE 3.6 Nursing Teacher Loan Forgiveness Pilot Program 23-3.6-101. Definitions. As used in this article, unless the context otherwise requires: (1) "Commission" means the Colorado commission on higher education. (2) "Program" means the nursing teacher loan forgiveness pilot program authorized pursuant to section 23-3.6-102. (3) "Public institution of higher education" means a postsecondary educational institution established and existing pursuant to law as an agency of the state of Colorado and supported wholly or in part by tax revenues. (4) "Qualified loan" means a student loan incurred while obtaining a master or doctorate degree in nursing from a public institution of higher education. (5) "Qualified position" means full-time employment by a public institution of higher education to teach classes required to obtain a degree or certificate in nursing. 23-3.6-102. Nursing teacher loan forgiveness pilot program - administration - fund - conditions. (1) (a) The general assembly hereby authorizes the commission to develop and maintain a nursing teacher loan forgiveness pilot program for implementation beginning in the fall semester of the 2006-07 academic year. The program shall provide for payment of up to twenty thousand dollars for all or part of the principal of and interest on a qualified loan if the person is hired for a qualified position and stays in a qualified position for a period of not less than five consecutive academic years after the person obtained an advanced degree in nursing. Repayment of loans through the program may be made using moneys in the nursing teacher loan forgiveness fund, created in paragraph (b) of this subsection (1), or moneys allocated to the program by collegeinvest. The commission is authorized to receive and expend gifts, grants, and donations for the purpose of implementing the program. Only persons whose loans have collegeinvest eligibility may receive repayment of their loans from moneys allocated to the program by collegeinvest. (b) There is hereby created in the state treasury the nursing teacher loan forgiveness fund, which shall consist of all moneys appropriated by the general assembly for the program and any gifts, grants, and donations received for said purpose. Moneys in the fund are hereby continuously appropriated to the department of higher education for the program. Any moneys in the fund not expended for the purpose of this article may be invested by the state treasurer as provided by law. All interest and income derived from the investment and deposit of moneys in the fund shall be credited to the fund. At the end of any fiscal year, all unexpended and unencumbered moneys in the fund shall remain in the fund and shall not be credited or transferred to the general fund or any other fund. (2) In addition to any qualifications specified by the commission, to qualify for the program, a nursing teacher shall: (a) Obtain a masters or doctorate degree in nursing; (b) Be liable for an outstanding balance on a qualified loan; (c) Agree to teach in a qualified position for a period of not less than five consecutive academic years after completion of the advanced degree; (d) Teach in a qualified position for not less than five consecutive academic years after completion of the advanced degree; and (e) Agree that, if the nursing teacher leaves the qualified position prior to teaching for five consecutive academic years, the nursing teacher shall be liable to repay the amount of the qualified loan paid or forgiven through the program plus interest. (3) The program shall provide that, following each of the five consecutive academic years that the nursing teacher is employed in a qualified position, the lesser of one-fifth or four thousand dollars of the nursing teacher's qualified loan shall be paid or forgiven. 23-3.6-103. Reporting. On or before December 15, 2008, and on or before each December 15 thereafter, the commission shall prepare an annual report that includes, but is not limited to, the number of participants in the program, the amount of funds applied toward loan repayment or forgiveness, and the sources of those funds. The commission shall provide notice to the education committees of the senate and the house of representatives, or any successor committees, that the report is available to the members of the committees upon request. 23-3.6-104. Repeal of article. This article is repealed, effective July 1, 2018. SECTION 2. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.