Title of Regulation: 12VAC5-545. Regulations for the Nurse Educator Scholarship Program (adding 12VAC5-545-10 through 12VAC5-545-90).

Statutory Authority: § 32.1-122.6:01 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: January 2, 2013.

Effective Date: January 17, 2013.

Agency Contact: Michael Royster, M.D., M.P.H., Director, Office of Minority Health/Health Equity, Department of Health, 109 Governor Street, Richmond, VA 23219, telephone (804) 864-7425, or email michael.royster@vdh.virginia.gov.

Basis: Section 23-35.9 of the Code of Virginia establishes annual nursing scholarships for part-time and full-time students enrolled in undergraduate and graduate nursing programs to be awarded by an advisory committee appointed by the State Board of Health.

Section 32.1-122.6:01 of the Code of Virginia authorizes the Board of Health to establish criteria for awarding nursing scholarships to eligible part-time and full-time students pursuant to the procedures for the administration of the scholarships awarded through § 23-35.9.

Item 289 C of Chapter 3 of the 2012 Acts of Assembly, Special Session I, appropriates funds to the Department of Health to provide scholarships and loan repayments for nursing students pursuing an advanced degree towards becoming nursing faculty at the college level and provides that priority be given to master's degree candidates who will teach in the community colleges.

Purpose: Beginning in 2009, the General Assembly included funds in the appropriation act for scholarships and loan repayments for nursing students pursuing an advanced degree towards becoming nursing faculty at the college level. Priority is given to master's degree candidates who commit to teaching in the community colleges. Pursuant to this legislative mandate, regulations have been developed for the Virginia Nurse Educator Scholarship Program. The intent of this program is to increase the number of nurse educators by providing masters and doctoral level nursing students with financial support for advanced degree programs. Up to 10 nurse educator scholarships are planned to be awarded annually.

Rationale for Using Fast-Track Process: The Administrative Process Act (APA) provides for expedited rulemaking for noncontroversial regulatory actions. The regulation as proposed is noncontroversial because the scholarship was provided for in the 2009 appropriation act and implementing the resulting program is expected to be straightforward. The Virginia General Assembly recognized a need for increasing the number of nurse educators. The regulations are patterned after other existing scholarship programs, which have not been controversial.

Substance: The proposed regulation provides for the administration of the Virginia Nurse Educator Scholarship Program. The provisions include definitions, purpose, administration, eligible applicants, scholarship amount, distribution of scholarships, contract provisions, repayment of scholarships, repayment by practice, cash repayment, cash repayment amount, cash repayment schedule, and reporting requirements.

Issues: The advantage to the public is an increase in nursing educators and a subsequent increase in access to quality nursing services within medical practices throughout the Commonwealth. The purpose of the regulation is to comply with the Code of Virginia. There are no known disadvantages to the public, the regulated entities, business entities, or the Commonwealth.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. Pursuant to Code of Virginia Sections 23-35.9 and 32.1-122.6:01, the Board of Health (Board) awards scholarships to students enrolled in undergraduate and graduate nursing programs. Current regulations exist for 1) nursing scholarships that require service in a long-term-care facility, 2) General Assembly nursing scholarships, and 3) nurse practitioner/nurse midwife scholarships. Beginning in 2009, the General Assembly included funds in the Appropriation Act for scholarships and loan repayments for nursing students pursuing an advanced degree towards becoming nursing faculty at the college level. The Board proposes these regulations to manage the "Virginia Nurse Educator Scholarship Program."

Result of Analysis. The benefits likely exceed the costs for all proposed changes.

Estimated Economic Impact. The proposed regulations establish sections relating to definitions, purpose, administration, eligible applicants, scholarship amounts, scholarship distribution, contract provisions, repayment of scholarships, repayment by practice, cash repayment, cash repayment amount, cash repayment schedule, and reporting requirements. All of the proposed language is consistent with current statutes and practice. Placing the requirements of the Nurse Educator Scholarship Program in regulation will be beneficial in that it will reduce uncertainty for potential scholarship candidates.

Businesses and Entities Affected. Approximately ten nurse educator candidates will receive scholarships per year. Graduate level nursing programs in Virginia are also potentially affected.

Localities Particularly Affected. The proposed amendments do not disproportionately affect particular localities.

Projected Impact on Employment. The Virginia Nurse Educator Scholarship Program may increase the number of nurse educators in Virginia nursing programs.

Effects on the Use and Value of Private Property. Placing the requirements of the Nurse Educator Scholarship Program in regulation may marginally increase the likelihood that some individuals will pursue a career as a nurse educator by reducing uncertainty.

Small Businesses: Costs and Other Effects. The proposed amendments are unlikely to significantly affect small businesses.

Small Businesses: Alternative Method that Minimizes Adverse Impact. The proposed amendments are unlikely to significantly affect small businesses.

Real Estate Development Costs. The proposed amendments are unlikely to significantly affect real estate development costs.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 14 (10). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB's best estimate of these economic impacts.

Agency's Response to Economic Impact Analysis: The proposed regulations establish the nursing educator scholarship program consistent with current Virginia statutes and practice. This program and its regulations will allow students enrolled in master's or doctoral degree nursing programs to receive scholarships in exchange for a period of faculty service in nursing education in Virginia. Placing the requirements of the Nurse Educator Scholarship Program in regulation is necessary in order to implement the program and provide appropriate guidelines for potential scholarship candidates.

Virginia Department of Health concurs with the conclusion reached by the Department of Planning and Budget's economic impact analysis that the benefits for the proposed regulations will exceed the costs for the proposed changes.

Summary:

The proposed regulation establishes the nursing educator scholarship program consistent with Virginia law. The program and its regulations will allow students enrolled in master's or doctoral degree nursing programs to receive scholarships in exchange for a period of faculty service in nursing education in Virginia.

CHAPTER 545
REGULATIONS FOR THE NURSE EDUCATOR SCHOLARSHIP PROGRAM

12VAC5-545-10. General information.

This chapter has been prepared to familiarize scholarship applicants, deans and directors of nursing programs, and financial aid officers with the Virginia Nurse Educator Scholarship Program. The appropriation act empowers the State Board of Health to promulgate regulations. All scholarships are awarded without regard to race, color, religion, sex, or national origin.

All scholarship awards will be made by the commissioner after receiving recommendations from a Nursing Scholarship Advisory Committee appointed by the board.

This chapter sets forth the basis for determining scholarship recipients. The committee will review applications against the set of criteria set forth in this chapter and recommend the scholarship recipients, with due regard given to scholastic attainment, financial need, character, and adaptability to the nurse educator profession.

12VAC5-545-20. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Board" or "Board of Health" means the State Board of Health.

"Commissioner" means the State Health Commissioner.

"Committee" means a group that advises the commissioner on the awarding of the nurse educator scholarships.

"Department" means the department that manages and administers the program.

"Interest" means the prime lending rate as published in the Wall Street Journal on the last day of the month in which the recipient is determined to be in default, plus two percentage points.

"Penalty" means an amount of money equal to one times the amount of all monetary scholarship awards paid to the scholarship recipient.

"Recipient" or "scholarship recipient" means an eligible registered nurse who enters into a contract with the commissioner and receives one or more scholarship awards via the Virginia Nurse Educator Scholarship Program.

"Restitution" means the amount of monetary reimbursement, including repayment of all pertinent scholarship awards plus penalty and applicable interest that will be owed to the Commonwealth of Virginia by a scholarship recipient who is in default of his contractual obligation.

"Teaching service" means to teach as a nurse educator in a Virginia nursing school for two years for each year of a scholarship award.

12VAC5-545-30. Administration.

The commissioner shall act as fiscal agent for the board in administration of the scholarship program. The commissioner shall make scholarship awards after receiving the recommendations of the committee.

The committee shall consist of seven members: four faculty members representing nurse practitioner, nurse midwife, or nurse educator education programs; one nurse practitioner currently engaged in practice; one former nurse practitioner or nurse midwife scholarship recipient; and one nurse educator scholarship recipient. If an appointed member is unable to serve, the board shall appoint a replacement. Committee appointments shall be for two years and members may not serve more than two consecutive terms.

12VAC5-545-40. Eligible applicants.

To be considered eligible for the Virginia Nurse Educator Scholarship Program, all applicants must meet the following criteria:

1. Be a U.S. citizen;

2. Be a Virginia resident;

3. Be a full-time or part-time student in a master's or doctoral level nursing program in Virginia who will complete the degree requirements within two years or less;

4. Have submitted a completed application;

5. Have submitted all other required materials (such as transcript, curriculum vitae, and letters of reference); and

6. Have signed and submitted a written contract agreeing to serve via teaching in a school of nursing in the Commonwealth of Virginia.

Priority shall be given to master's degree candidates who will teach at one of the colleges within the Virginia Community College System.

Failure to comply with any of this section will cause the applicant to be ineligible to participate in the Virginia Nurse Educator Scholarship Program. Applicants will be evaluated and ranked by the committee. The committee will forward the names of the recommended award recipients to the commissioner for review and final decision.

12VAC5-545-50. Scholarship amount.

The amount available each year for Virginia nurse educator scholarships shall be as provided by the Virginia General Assembly in the appropriation act. Scholarships shall be awarded to the recipients upon or following the recipient's execution of a contract with the commissioner for scholarship repayment.

12VAC5-545-60. Distribution of scholarships.

The committee shall inform nursing schools of the availability of the nurse educator scholarships through staff to the committee by March 1 of the same year the scholarship will be awarded. The committee shall convene annually for the purpose of reviewing applications and making recommendations on the awarding of scholarships as funding allows. Scholarship recommendations shall be based upon majority vote of the committee and awards will be made by the commissioner.

Persons dissatisfied with the award or denial of an application to become a scholarship recipient must notify staff to the committee (identified in application materials) within 14 days of receiving notification of the award or denial of an application.

12VAC5-545-70. Contract provisions and default.

A. Prior to the payment of money to a scholarship recipient, the commissioner shall enter into a contract with the recipient. The contract shall:

1. Provide that the recipient shall pursue a nurse educator program of the designated school until graduation and shall begin full-time (as determined by the institution) teaching service as a nurse educator within one year (12 months) following completion of training and for a period of two years per annual scholarship award. Employment must be at a Virginia nursing school program.

2. Provide that the recipient shall not voluntarily obligate himself for military service prior to completion of the repayment period.

3. Provide that the recipient shall notify the commissioner in writing of his proposed teaching location within 30 days of his employment at a teaching location.

4. Provide that the recipient may request approval of a change of teaching location. The commissioner in his discretion may approve such a request.

5. Provide that if the recipient (i) fails to maintain satisfactory academic progress; (ii) is placed on academic or other probation; (iii) is suspended or expelled from school; or (iv) voluntarily withdraws from school, the recipient may, upon certification by the commissioner, be relieved of the contract obligation to engage in full-time teaching service upon repayment to the Commonwealth of the total amount of scholarship funds received plus applicable interest.

6. Provide that if the recipient defaults while still in a nursing education program and notifies the commissioner in writing that the recipient will not provide teaching services in a nursing program as required, the recipient will make restitution to the Commonwealth of Virginia by repayment of all scholarship award or awards plus applicable interest on the amount of such restitution.

7. Provide that if the recipient is in default due to death or permanent disability so as not to be able to engage in teaching service, the recipient, or his personal representative, may be relieved of the obligation under the contract to engage in full-time teaching service upon repayment to the Commonwealth of the total amount of scholarship funds received plus applicable interest. For recipients completing part of the teaching obligation prior to becoming permanently disabled, or in the event of death, the total amount of scholarship funds owed shall be reduced by the proportion of obligated years served.

8. Provide that if the recipient is in default due to death or permanent disability so as not to be able to engage in full-time teaching service at a Virginia nursing school program, the obligation to make restitution may be waived by the commissioner upon application of the recipient or the recipient's estate to the commissioner.

9. Provide that individual cases of hardship may be considered by the commissioner for forgiveness of payment or service.

10. Provide that any recipient of a scholarship who defaults by evasion or refusal to fulfill the obligation to teach full time at a Virginia nursing school program for the full number of years required at any time following completion of his nurse educator program shall make restitution by repaying all monetary scholarship awards, plus penalty and applicable interest on such restitution to the Commonwealth of Virginia.

11. Provide that partial fulfillment of the recipient's obligation shall reduce the amount of restitution plus penalty and applicable interest due by an amount of money equal to the same percentage of time employed.

B. With respect to default, the contract shall provide that a recipient will be considered to be in default on the date:

1. The commissioner is notified in writing by the recipient that he does not intend to fulfill the contractual obligation;

2. The recipient has not accepted a placement and commenced the period of obligated practice as provided for in subdivision A 1 of this section; or

3. The recipient leaves without the consent of the commissioner the place of full-time teaching service that the commissioner has approved for fulfillment of the contractual obligation.

12VAC5-545-80. Repayment of scholarships.

Unless repayment is forgiven as specified in 12VAC5-545-70, all scholarships shall be repaid to the Commonwealth, either by the recipient's teaching service as a nurse educator or through cash repayments.

12VAC5-545-90. Reporting requirements.

Reporting requirements of nursing schools and scholarship recipients are as follows:

1. Each nursing school shall maintain accurate records of the status of scholarship recipients until the recipients graduate. The schools shall provide a report listing the academic status of each recipient annually to the committee.

2. Each scholarship recipient shall, at any time, provide information as requested by the commissioner to verify compliance with the teaching requirements of the scholarship contract. The recipient shall report any change of mailing address, change of academic standing, change of intent to fulfill his contractual obligation, and any other information that may be relevant to the contract at such time as changes or information may occur. The recipient shall promptly respond with such information as may be requested by the commissioner.

3. The committee shall report annually to the board the following: number of applicants for scholarships, number of scholarships awarded, number of minorities and students from medically underserved areas awarded, total funding awarded, teaching sites of former scholarship recipients, and number of students making monetary repayment of scholarship with reasons for failure to practice identified.

4. Monitoring of teaching service by recipients shall be conducted on an on-going basis by department staff. Teaching service verification forms shall be submitted by the recipient to the department semi-annually (every six months) and countersigned by a representative of the teaching location or site certifying continuous full-time service by recipients.

FORMS (12VAC5-545)

Nurse Education Scholarship Program Application (rev. 11/12).