A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE "GRADUATE NURSING SCHOLARSHIP AND FORGIVABLE LOAN PROGRAM ACT" BY ADDING ARTICLE 8 TO CHAPTER 111, TITLE 59 SO AS TO ADDRESS PRIMARY CARE SHORTAGES IN UNDERSERVED AREAS BY INCREASING ACCESS TO GRADUATE-LEVEL NURSING EDUCATION THROUGH FORGIVABLE LOANS, TO PROVIDE ELIGIBILITY REQUIREMENTS, AND TO PROVIDE FOR IMPLEMENTATION AND ADMINISTRATION OF THE PROGRAM BY THE DEPARTMENT OF HEALTH.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

Whereas, South Carolina continues to experience a significant shortage of primary care providers, particularly in rural and underserved communities; and

 

Whereas, Advanced Practice Registered Nurses (APRNs) and nurses with graduate-level education play a critical and expanding role in serving as primary care providers in communities with limited access to physicians; and

 

Whereas, graduate degrees in nursing are required for registered nurses to become APRNs, and such degrees are necessary to strengthen the State's primary care workforce; and

 

Whereas, increased access to scholarships, loans, and grants for graduate-level nursing education will enhance the ability of South Carolina residents to pursue these advanced degrees; and

 

Whereas, expanding the number of APRNs and graduate-prepared nurses will help alleviate provider shortages, improve health outcomes, and increase access to essential healthcare services in underserved areas across the State; Now, therefore,

 

SECTION 1.  This act may be cited as the "Graduate Nursing Scholarship and Forgivable Loans Act."

 

SECTION 2.  Chapter 111, Title 59 of the S.C. Code is amended by adding:

 

Article 8

 

Graduate Nursing Scholarship and Forgivable Loans

 

    Section 59-111-810.  As used in this article:

       (1) "Advanced Practice Registered Nurse" or "APRN" has the same meaning as provided in Section 40-33-20(5).

       (2) "Department" means the South Carolina Department of Health.

       (3) "Graduate nursing program" means an accredited master's or doctoral program in nursing or advanced practice nursing approved by the department.

       (4) "Designated nursing shortage area" means an area determined by the department to have a shortage of nurses or APRNs or nurses with graduate degree credentials, or otherwise designated as meeting a critical healthcare need.

 

    Section 59-111-820.  (A) The department shall aid, assist, promote, and administer a fund to be known as the "South Carolina Graduate Nursing Scholarship and Forgivable Loan Fund," with such funds as may be appropriated by the General Assembly.

    (B) The department shall receive and consider applications submitted by students who:

       (1) have been legal residents of South Carolina for at least one year immediately preceding their application;

       (2) seek to enroll in or continue enrollment in a graduate nursing program; and

       (3) have been accepted for enrollment in an accredited graduate nursing program within the United States that is approved by the department.

    (C) The department shall conduct a full investigation of each applicant's academic qualifications, financial need, character, professional goals, and fitness to receive an award.

    (D) In selecting recipients, the department shall consider the applicant's stated intent to practice as an APRN or as a graduate-prepared registered nurse in a designated nursing shortage area or in another location or assignment that meets a critical state need.

    (E) The department may grant scholarships or forgivable loans to qualified applicants upon the terms and conditions established under this article.

 

    Section 59-111-830.  (A) No award may exceed ten thousand dollars per academic year for up to four years. Awards may be used to defray tuition, fees, books, supplies, living expenses, clinical training costs, and other costs related to graduate nursing education.

    (B) As a condition of receiving funds, a recipient shall:

       (1) apply for and maintain the appropriate nursing or APRN licensure required under Title 40 at the earliest practicable time; and

       (2) within six months after obtaining such licensure or completing required clinical training, engage in the practice of nursing or advanced practice nursing in a designated nursing shortage area or other site deemed to meet a critical state need.

    (C) The department shall annually prepare and publish a list of designated nursing shortage areas using current demographic, workforce, and public-health data. Every area of the State must be included within at least one service designation.

    (D) Recipients shall provide one year of full-time service for each year of funding received. If a recipient receives awards for four years, completion of three years of qualifying service constitutes full forgiveness.

    (E) Before receiving funds, a recipient shall enter into a written contract with the department, which constitutes a contract with the State of South Carolina. The contract must include provisions implementing Section 59-111-830 and must be signed by the director of the department, countersigned by the executive secretary, and signed by the applicant.

    (F) The department may approve deferments during periods of full-time graduate study, clinical training, or for other good cause as determined by the department.

 

    Section 59-111-840.  The department may inquire into, coordinate with, and enter into agreements or contracts with graduate nursing programs approved for attendance by recipients. The department, upon proper notice, may cancel any such agreement.

 

    Section 59-111-850.  (A) If a recipient fails, without justifiable cause, to fulfill the service obligation required by the contract, the department shall impose a penalty consisting, at minimum, of repayment of the total amount received plus per-annum interest at the prevailing prime rate of the largest bank by deposits in South Carolina plus two percent.

    (B) At maximum, the department may require repayment of three times the total amount received, together with interest at the prevailing prime rate of the largest bank by deposits in South Carolina.

    (C) The department shall mail the demand for repayment to the recipient's last known address, and the amount demanded becomes immediately due and payable.

    (D) If the department determines that good cause exists for failure to serve, it may release the recipient from the service obligation and establish repayment terms it considers proper, including interest at the prevailing prime rate.

    (E) Upon request of the department, the Attorney General shall institute proceedings to recover any amount owed.

 

    Section 59-111-860.  All funds appropriated for the purposes of this article and all sums received in repayment must be deposited in the State Treasury to the credit of the South Carolina Graduate Nursing Scholarship and Forgivable Loan Fund and disbursed upon voucher signed by the director of the department or his designee.

 

    Section 59-111-870.  The department may promulgate regulations necessary to carry out the provisions of this article.

 

SECTION 3.  This act takes effect on July 1, 2027.

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