SB 456-FN - AS INTRODUCED
2024 SESSION
24-3007
05/10
SENATE BILL 456-FN
AN ACT relative to establishing a nurse retention school loan debt relief program.
SPONSORS: Sen. Gannon, Dist 23; Sen. Perkins Kwoka, Dist 21; Sen. Watters, Dist 4; Sen. Lang, Dist 2; Sen. Bradley, Dist 3; Sen. Pearl, Dist 17; Sen. Avard, Dist 12; Sen. Carson, Dist 14; Sen. Ricciardi, Dist 9; Sen. Ward, Dist 8; Sen. Fenton, Dist 10; Rep. M. Pearson, Rock. 34; Rep. L. Walsh, Rock. 15
COMMITTEE: Health and Human Services
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ANALYSIS
This bill establishes a nurse retention school loan debt relief program in the department of health and human services. The bill also establishes a dedicated fund and makes an appropriation to the fund for this purpose.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-3007
05/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to establishing a nurse retention school loan debt relief program.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; Department of Health and Human Services; Nurse Retention School Loan Debt Relief Program. Amend RSA 126-A by inserting after section 105 the following new subdivision:
Nurse Retention School Loan Debt Relief Program
126-A:106 Nurse Retention School Loan Debt Relief Program.
I. There is hereby established the New Hampshire nurse school loan debt relief program to address the nursing shortage in New Hampshire. The program shall provide financial incentives to nurses, through student loan repayment assistance upon completion of a term of employment as a nurse in the state of New Hampshire. The program shall be administered by the department of health and human services, division of public health, as a separate program from the student loan repayment program. The program shall be a private/public partnership, operated in conjunction with private employers.
II. Applicants shall have completed nursing school in New Hampshire, be licensed as an RN or LPN, and be contracted to work in a hospital in New Hampshire for a term of 4 years. Applicants awarded contracts shall receive a one-time, tax free, disbursement towards their student loan debt equal to 20 percent of their student loan balance.
III. There is established in the treasury a fund to be known as the nurse retention school loan debt relief fund. The fund shall include any sums appropriated for such purpose. In addition, the department of health and human services may accept public sector and private sector grants, gifts, or donations of any kind for the purpose of funding the provisions of this section. The moneys in this fund shall be nonlapsing and shall be continually appropriated to the department. The fund shall be expended by the department to administer the program and to award student loan repayment assistance in accordance with this section. The state treasurer may invest moneys in the fund as provided by law, with interest received on such investment credited to the fund.
IV. The commissioner shall adopt rules under RSA 541-A, relative to program administration, including application procedures, eligibility criteria, and fund disbursement.
2 New Subparagraph; Dedicated Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (394) the following new subparagraph:
(395) Moneys deposited in the nurse retention school loan debt relief fund under RSA 126-A:106.
3 Appropriation. For the biennium ending June 30, 2025, the sum of $1 is appropriated to the department of health and human services for deposit in the nurse retention school loan debt relief fund under RSA 126-A:106. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
4 Effective Date. This act shall take effect July 1, 2024.
24-3007
Revised 1/10/24
SB 456-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to establishing a nurse retention school loan debt relief program.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Funding Source(s) | General funds; gifts, grants, donations | |||||
Appropriations | $0 | $1 | $0 | $0 | ||
Funding Source(s) | General Fund | |||||
• Does this bill provide sufficient funding to cover estimated expenditures? [X] See Below • Does this bill authorize new positions to implement this bill? [X] No | ||||||
METHODOLOGY:
This bill establishes a Nurse Retention School Loan Debt Relief Program as a new program separate from the existing State Loan Repayment Program (SLRP) administered by the Department of Health and Human Services. The program would provide financial incentives to nurses, through student repayment of assistance upon completion of a term of employment as a nurse in the State of New Hampshire. The program would be a private/public partnership operated in conjunction with private employers. In addition, the bill establishes a dedicated, non-lapsing fund known as the “Nurse Retention School Loan Debt Relief Fund.” In addition to any state funds appropriated, the Department would be able to accept public sector and private sector grants, gifts or donations of any kind for the purposes of funding the bill's provisions.
The bill stipulates the following requirements for individuals applying to the proposed program:
- Applicants must have completed nursing school in New Hampshire and be licensed as a Registered Nurse (RN) or Licensed Practical Nurse (LPN).
- Applicants shall be contracted to work in a hospital in NH for a term of 4 years.
- Nurses awarded a contract will receive a one -time, tax free disbursement towards their student loan debt to equal to 20 percent of their student loan balance.
The Department notes that over the course of a four-year bachelor’s in science degree program at the University of New Hampshire, tuition, fees, room and board would total $130,016 per student. Twenty percent of that figure (the amount of loan repayment authorized by the bill) totals $26,003 per person. Based on uptake in the existing SLRP and National Health Service Corps (172 current participants), as well as the number of RNs and LPNs in the state (roughly four times as many as the number of physicians), the Department estimates that the new program may serve approximately 688 individuals per year. At $26,003 per person, this results in an annual cost of $17,890,064 per year. In addition, the Department assumes the positions below will be needed to administer the new program.
Administrator I, LG27, Step 5: $74,276; Benefits: $36,985; Equipment: $3,000
Compliance Officer II, LG21, Step 5: $57,116; Benefits: $33,296; Equipment: $3,000
Administrative Assistant I, LG16, Step 5: $46,527; Benefits: $31,019; Equipment: $3,000
Combined costs (program plus position-related costs) would therefore total approximately $18.2 million per year if all eligible applicants received funding.
The bill includes an appropriation of $1 for the FY24/25 biennium.
AGENCIES CONTACTED:
Department of Health and Human Services