Chairman Erickson opened the hearing on SB50.

Tamera Lawrence, Assistant Revisor, Office the of the Revisor of Statutes, gave an overview of the bill.(Attachment 12)

Elaine Frisbie, Vice President for Finance and Administration Kansas Board of Regents, said this legislation was proposed by the Board of Regents to streamline the administration of seven of the Legislature's scholarship programs administered by the Board that carries a service requirement and an interest rate when a student goes into repayment. This bill would standardize the interest rate on these repayments to a flat 5% which would provide predictability to students and eliminate the variable rates contained in existing laws that fluctuate annually. The bill would also standardize the date at which interest begins to accrue across the programs as the date when the repayment obligation commences. The bill also would amend the Adult Learner Grant Act, which was enacted in the 2023 Legislative Session to align the Act's requirement surrounding students' grant agreements with the Promise Scholarship Act. (Attachment 13)

Christopher A. Morrissey, General Surgeon in Cowley County, Faculty Preceptor, Kansas Health Science University's Kansas College of Osteopathic Medicine, strongly supports this bill to reduce the interest rate to 5% instead of the current 20%. The current rate places an excessive financial burden on those who have chosen specialties outside of the initial agreement. The lower interest rate would be a more reasonable and fair approach allowing dedicated physicians to continue providing care without undue financial strain.(Attachment 14)

The Chair closed the hearing on SB50.

The meeting was adjourned at 2:30 pm.

The next Senate Education Committee meeting will be held February 5, 2025 at 1:30 pm in Room 144-S.