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SENATE BILL No. 50
AN A CT concerning postsecondary education; relating to the financing therefor;
establishing uniform interest rate provisions for scholarship programs that include
repayment obligations as a condition of receiving a scholarship; authorizing the board
to recover the costs of collecting such repayment obligations and to charge fees for
the costs of administering scholarship, grant and other financial assistance programs;
requiring eligible students to enter into agreements with the state board of regents
instead of a postsecondary educational institution as a condition to receiving a grant
under the adult learner grant act; reducing the number of grants available and audits
required under the low-income family postsecondary savings accounts incentive
program; providing the audit process for certain withdrawals made under such
program; amending K.S.A. 74-3260, 74-3267, 74-3272, 74-32,104, 74-32,116, 74-
32,135, 74-32,153, 74-32,154, 74-32,223 and 75-650 and K.S.A. 2024 Supp. 74-
3295, 74-32,276 and 74-32,286 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) On and after July 1, 2025, for any repayment
obligation owed by an individual, the applicable interest rate shall be
5% per annum if such repayment obligation:
(1) Arises under any scholarship, grant or other student financial
aid program established in article 32 of chapter 74 of the Kansas
Statutes Annotated, and amendments thereto, or under any agreement
entered into pursuant thereto; and
(2) requires the payment of interest pursuant to the terms of the
statute or agreement under which the individual received the
scholarship, grant or other student financial aid.
(b) No interest for such scholarship, grant, or other student
financial aid shall begin to accrue earlier than the date that the
individual becomes required to repay such scholarship, grant or other
student financial aid to the state board of regents, as determined by the
state board of regents.
(c) The interest rate established in subsection (a) and the accrual
date determined under subsection (b) shall apply to repayment
obligations arising in relation to any scholarship, grant or other student
financial aid distributed prior to July 1, 2025, pursuant to any
scholarship, grant or other student financial aid program established in
article 32 of chapter 74 of the Kansas Statutes Annotated, and
amendments thereto.
(d) Nothing in this section shall be construed to impose an interest
rate:
(1) In excess of the interest rate specified in either the applicable
statute at the time an individual received the scholarship, grant or other
student financial aid relating to the repayment obligation or the
agreement between the individual and an educational institution, a
sponsor or the state board of regents; or
(2) upon amounts owed to the state board of regents by
educational institutions, sponsors or amounts owed to educational
institutions or sponsors by the state board of regents.
(e) No individual shall be entitled to a refund for amounts paid to
the state board of regents before July 1, 2025.
New Sec. 2. The state board of regents may recover the reasonable
costs of collection, including, but not limited to, court costs, attorney
fees and collection agency fees, from any individual who is subject to a
repayment obligation arising under any scholarship, grant or other
student financial aid program established in article 32 of chapter 74 of
the Kansas Statutes Annotated, and amendments thereto, or under any
agreement entered into pursuant thereto.
New Sec. 3. The chief executive officer of the state board of
regents may fix, charge and collect fees for the processing of
applications and other activities related to the administration of student
financial assistance programs administered by the state board of
regents. Such fees shall be fixed in amounts to recover all or a part of
the direct and indirect operating expenses incurred for administering
SENATE BILL No. 50—page 2
such programs. All moneys received by the state board of regents from
the payment of such fees shall be deposited in the state treasury in
accordance with K.S.A. 75-4215, and amendments thereto, and shall be
credited to the financial aid services fee fund of the state board of
regents.
Sec. 4. K.S.A. 74-3260 is hereby amended to read as follows: 74-
3260. (a) Upon the failure of any person, who as an eligible student
qualified for and received payments under an ROTC service
scholarship, to remain eligible and qualified or to satisfy the obligation
to accept a commission and serve as an officer in the Kansas national
guard for the required period of time under an agreement entered into
pursuant to this act, such person shall pay to the state of Kansas an
amount equal to the total amount of payments received by disbursed on
behalf of such person plus accrued interest from the date such payments
were received at a rate which is equivalent to the interest rate
applicable to loans made under the federal PLUS program at the time
such person first entered into an agreement plus five percentage points
accrual date determined under section 1, and amendments thereto, and
at the rate prescribed in section 1, and amendments thereto. Such
payment shall commence within 30 days, and be completed within five
years, after the date of the act or circumstance that causes the failure of
the person to remain eligible and qualified or to satisfy the obligation of
such agreement. Payments under this section shall be installment
payments and each such installment shall be not less than an amount
equal to 1/5 of the total amount which that would be required to be paid
if paid in five equal annual installments. If an installment payment
becomes 91 days overdue, the entire amount outstanding shall become
immediately due and payable, including all interest at the rate
prescribed in section 1, and amendments thereto . Amounts paid under
this section shall be deposited in the state treasury and credited to the
ROTC service scholarship repayment fund as provided in K.S.A. 74-
3260a, and amendments thereto.
(b) The state board of regents is authorized to turn any repayment
account arising under the ROTC service scholarship program over to a
designated loan servicer or collection agency, the state not being
involved other than to receive payments from the loan servicer or
collection agency at the interest rate prescribed under this section in
section 1, and amendments thereto.
Sec. 5. K.S.A. 74-3267 is hereby amended to read as follows: 74-
3267. (a) (1) Except as otherwise provided in K.S.A. 74-3268, and
amendments thereto, upon the failure of any person to satisfy the
obligation to engage in the full-time or part-time practice of medicine
and surgery within the state of Kansas for the required period of time
under an agreement entered into as provided in K.S.A. 74-3266, and
amendments thereto, such person shall repay to the state board of
regents an amount equal to the total of (1):
(A) The amount of money received by such person pursuant to
such agreement; plus (2)
(B) accrued interest from the date such money was received at a
rate which is equivalent to the interest rate applicable to loans made
under the federal PLUS program at the time such person first entered
into an agreement plus five percentage points accrual date determined
under section 1, and amendments thereto, and at the rate prescribed in
section 1, and amendments thereto.
(2) Any person who applies for and enters a postgraduate
residency training program that is not an approved program as provided
in this section shall be required to repay all moneys received disbursed
on behalf of such person as provided in an agreement entered into
under K.S.A. 74- 3266, and amendments thereto, plus accrued interest
SENATE BILL No. 50—page 3
from the date such moneys were received at a rate which is equivalent
to the interest rate applicable to loans made under the federal PLUS
program at the time such person first entered into an agreement plus
five percentage points accrual date determined under section 1, and
amendments thereto, and at the rate prescribed in section 1, and
amendments thereto, and shall commence such repayment in
accordance with subsection (b) within 90 days of graduation from the
school of osteopathic medicine or upon termination or completion of a
residency training program which that does not comply with the
provisions of this act, whichever is later.
(3) Any person who enters and completes an approved
postgraduate residency training program but fails to satisfy the
obligation to engage in the full-time or part-time practice of medicine
and surgery for the required period of time shall be required to repay all
money received disbursed on behalf of such person pursuant to an
agreement entered into under K.S.A. 74-3266, and amendments thereto,
plus accrued interest from the date such money was received at a rate
which is equivalent to the interest rate applicable to loans made under
the federal PLUS program at the time such person first entered into an
agreement plus five percentage points accrual date determined under
section 1, and amendments thereto, and at the rate prescribed in
section 1, and amendments thereto, and shall commence such
repayment in accordance with subsection (b) within 90 days of failure
to satisfy the obligation.
(b) Each person required to repay any amount under this section
shall repay an amount totaling the entire amount to be repaid under all
such agreements for which obligations are not satisfied, including all
amounts of interest at the rate prescribed in section 1, and amendments
thereto. Except as otherwise provided in this section, such repayment
shall be in installment payments and each such installment shall be not
less than an amount equal to 1/5 of the total amount which that would be
required to be paid if repaid in five equal annual installments.
(c) Except as otherwise provided in subparts (2) and (3) of
subsection (a) subsections (a)(2) and (a)(3) , all installment payments
under this section shall commence six months after the date of the
action or circumstance that causes the failure of the person to satisfy
the obligations of such agreements, as determined by the state board of
regents based upon the circumstances of each individual case. If an
installment payment becomes 91 days overdue, the entire amount
outstanding shall become immediately due and payable, including all
amounts of interest at the rate prescribed in section 1, and amendments
thereto.
(d) The total repayment obligation imposed under all agreements
entered into as provided in K.S.A. 74-3266, and amendments thereto,
may be satisfied at any time prior to graduation from the accredited
school of osteopathic medicine by making a single lump sum payment
equal to the total of:
(1) The entire amount to be repaid under all such agreements upon
failure to satisfy the obligations under such agreements to practice in
Kansas,; plus
(2) all amounts of interest accrued thereon at the rate prescribed
under this section in section 1, and amendments thereto.
(e) The state board of regents is authorized to turn any repayment
account arising under the osteopathic medical service scholarship
program over to a designated loan servicer or collection agency, the
state not being involved other than to receive payments from the loan
servicer or collection agency at the interest rate prescribed under this
section in section 1, and amendments thereto.
Sec. 6. K.S.A. 74-3272 is hereby amended to read as follows: 74-
SENATE BILL No. 50—page 4
3272. (a) Except as otherwise provided in subsection (e) and in K.S.A.
74-3273, and amendments thereto, upon the failure of any person to
satisfy the obligation to engage in the full-time or part-time practice of
optometry within the state of Kansas for the required period of time
under an agreement entered into pursuant to K.S.A. 74-3271, and
amendments thereto, such person shall repay to the state board of
regents an amount equal to the total of:
(1) The amount of money paid by the state board of regents for
guaranteed admission and continued enrollment of such person in an
accredited school or college of optometry pursuant to a contract entered
into therefor under K.S.A. 76-721a, and amendments thereto,; plus
(2) accrued interest from the date such money was paid pursuant
to such contract at a rate which is equivalent to the interest rate
applicable to loans made under the federal PLUS program at the time
such person first entered into an agreement plus five percentage points
accrual date determined under section 1, and amendments thereto, and
at the rate prescribed in section 1, and amendments thereto.
(b) Each person required to repay any amount under this section
shall repay an amount totaling the entire amount to be repaid under
such agreement for which such obligation is not satisfied, including all
interest at the rate prescribed in section 1, and amendments thereto .
Except as otherwise provided in this section, such repayment shall be in
installment payments and each such installment shall be not less than
an amount equal to 1/5 of the total amount which that would be required
to be paid if repaid in five equal annual installments.
(c) All installment payments under this section shall commence
six months after the date of the action or circumstance that causes the
failure of the person to satisfy the obligations of such agreement, as
determined by the state board of regents based upon the circumstances
of each individual case. If an installment payment becomes 91 days
overdue, the entire amount outstanding shall become immediately due
and payable, including all interest at the rate prescribed in section 1,
and amendments thereto.
(d) The total repayment obligation imposed under an agreement
entered into pursuant to K.S.A. 74-3271, and amendments thereto, may
be satisfied at any time prior to graduation from the accredited school
or college of optometry by making a single lump-sum payment equal to
the total of:
(1) The entire amount to be repaid under such agreement upon
failure to satisfy the obligation to practice optometry in Kansas,; plus
(2) all interest thereon at the rate prescribed to the date of payment
in section 1, and amendments thereto.
(e) If a person fails to satisfy an obligation to engage in the full-
time or part-time practice of optometry in Kansas for the required
period of time under an agreement entered into pursuant to K.S.A. 74-
3271, and amendments thereto, because such person is engaged in the
practice of optometry in a state other than Kansas, and if such person is
subject to or currently making repayments under this section, and if
such person subsequently commences the practice of optometry in this
state which complies with the agreements entered into under such
statute, the balance of the repayment amount, including interest
thereon, from the time of such commencement of practice until the
obligation of such person is satisfied, or until the time such person
again becomes subject to repayments, shall be waived. All repayment
amounts due prior to such commencement of practice in this state,
including interest thereon, shall continue to be payable as provided in
this section. If subsequent to such commencement of practice, the
person fails to satisfy such obligation, the person again shall be subject
to repayments, including interest thereon, as otherwise provided in this
SENATE BILL No. 50—page 5
section.
(f) The state board of regents is authorized to turn any repayment
account arising under the optometry service scholarship program over
to a designated loan servicer or collection agency, the state not being
involved other than to receive payments from the loan servicer or
collection agency at the interest rate prescribed under this section in
section 1, and amendments thereto.
Sec. 7. K.S.A. 2024 Supp. 74-3295 is hereby amended to read as
follows: 74-3295. (a) Except as provided in K.S.A. 74-3296, and
amendments thereto, upon the failure of any person to satisfy the
obligation under any agreement entered into pursuant to the nursing
service scholarship program, such person shall pay to the executive
officer an amount equal to the total amount of money received by
disbursed on behalf of such person pursuant to such agreement that was
financed by the state of Kansas plus accrued interest at a rate of 5% per
annum. Interest shall begin to accrue on the date of the action or
circumstances that cause such person to fail to satisfy the obligations of
such agreement, as determined by the executive officer based upon the
circumstances of each individual case from the accrual date determined
under section 1, and amendments thereto, and at the rate prescribed in
section 1, and amendments thereto. Installment payments of any such
amounts may be made in accordance with rules and regulations of the
state board of regents. Such installment payments shall commence six
months after the date on which interest begins to accrue. Amounts paid
under this section to the executive officer shall be deposited in the
nursing service scholarship repayment fund in accordance with K.S.A.
74-3298, and amendments thereto.
(b) The state board of regents is authorized to turn any repayment
account arising under the nursing service scholarship program over to a
designated loan servicer or collection agency, the state not being
involved other than to receive payments from the loan servicer or
collection agency at the interest rate prescribed under this in section 1,
and amendments thereto.
Sec. 8. K.S.A. 74-32,104 is hereby amended to read as follows:
74-32,104. (a) Except as provided in K.S.A. 74-32,105, and
amendments thereto, upon the failure of any person to satisfy the
obligation under any agreement entered into pursuant to the teacher
service scholarship program, such person shall pay to the executive
officer an amount equal to the total amount of money received by
disbursed on behalf of such person pursuant to such agreement plus
accrued interest at a rate which is equivalent to the interest rate
applicable to loans made under the federal PLUS program at the time
such person first entered into an agreement plus five percentage points
from the accrual date determined under section 1, and amendments
thereto, and at the rate prescribed in section 1, and amendments
thereto. Amounts of payment under this section shall be adjusted
proportionately for full years of the obligation that have been satisfied.
Installment payments of any such amounts may be made in accordance
with the provisions of the agreement entered into by the scholarship
recipient or if no such provisions exist in such agreement, in
accordance with rules and regulations of the state board of regents,
except that such installment payments shall commence six months after
the date of the action or circumstances that cause the failure of the
person to satisfy the obligations of such agreements, as determined by
the executive officer based upon the circumstances of each individual
case. Amounts paid under this section to the executive officer shall be
deposited in the teacher service scholarship repayment fund in
accordance with K.S.A. 74-32,107, and amendments thereto.
(b) The state board of regents is authorized to turn any repayment
SENATE BILL No. 50—page 6
account arising under the teacher service scholarship program over to a
designated loan servicer or collection agency, the state not being
involved other than to receive payments from the loan servicer or
collection agency at the interest rate prescribed under this section in
section 1, and amendments thereto.
Sec. 9. K.S.A. 74-32,116 is hereby amended to read as follows:
74-32,116. (a) Except as provided in K.S.A. 74-32,117, and
amendments thereto, upon the failure of a person to satisfy any
obligation under an agreement entered into in accordance with the
Kansas ethnic minority fellowship program, such person shall pay to
the executive officer an amount equal to the total amount of money
received by disbursed on behalf of such person pursuant to such
agreement plus accrued interest from the date such money was received
at a rate which is equivalent to the interest rate applicable to loans made
under the federal PLUS program at the time such person first entered
into an agreement plus five percentage points accrual date determined
under section 1, and amendments thereto, and at the rate prescribed in
section 1, and amendments thereto . Amounts of payment under this
section shall be adjusted proportionately for full years of performance
of the obligations that have been satisfied. Installment payments of any
such amounts may be made in accordance with the provisions of the
agreement entered into by the fellowship recipient or if no such
provisions exist in such agreement, in accordance with rules and
regulations of the state board of regents, except that such installment
payments shall commence six months after the date of the action or
circumstances that cause the failure of the person to satisfy the
obligations of such agreements, as determined by the executive officer
based upon the circumstances of each individual case. Amounts paid
under this section to the executive officer shall be deposited in the
Kansas ethnic minority fellowship program fund in accordance with
K.S.A. 74-32,119, and amendments thereto.
(b) The state board of regents is authorized to turn any repayment
account arising under the Kansas ethnic minority fellowship program
over to a designated loan servicer or collection agency, the state not
being involved other than to receive payments from the loan servicer or
collection agency at the interest rate prescribed under this section in
section 1, and amendments thereto.
Sec. 10. K.S.A. 74-32,135 is hereby amended to read as follows:
74-32,135. (a) Except as provided in K.S.A. 74-32,136, and
amendments thereto, upon the failure of any person to satisfy the
obligation under any agreement entered into pursuant to this act, such
person shall pay to the executive officer an amount equal to the total
amount of money received by disbursed on behalf of such person
pursuant to such agreement which that is financed by the state of
Kansas plus accrued interest at a rate which is equivalent to the interest
rate applicable to loans made under the federal PLUS program at the
time such person first entered into an agreement plus five percentage
points from the accrual date determined under section 1, and
amendments thereto, and at the rate prescribed in section 1, and
amendments thereto . Installment payments of such amounts may be
made in accordance with rules and regulations of the state board of
regents, except that such installment payments shall commence six
months after the date of the action or circumstances that cause the
failure of the person to satisfy the obligations of such agreements, as
determined by the executive officer based upon the circumstances of
each individual case. Amounts paid under this section to the executive
officer shall be deposited in the advanced practice registered nurse
service scholarship program fund in accordance with K.S.A. 74-32,138,
and amendments thereto.
SENATE BILL No. 50—page 7
(b) The state board of regents is authorized to turn any repayment
account arising under the advanced practice registered nurse service
scholarship program over to a designated loan servicer or collection
agency, the state not being involved other than to receive payments
from the loan servicer or collection agency at the interest rate
prescribed under this section in section 1, and amendments thereto.
Sec. 11. K.S.A. 74-32,153 is hereby amended to read as follows:
74-32,153. (a) Upon completion of the recipient's program of study, the
recipient shall be eligible for forgiveness of the loan by living and
working in Kansas.
(b) By annually providing to the board of regents the required
documentation certifying that the recipient worked and lived in Kansas
throughout the prior year. Such documentation shall be provided to the
board of regents within 30 days of the annual due date calculated from
the completion of the course of study.
(c) If the required documentation certifying that the recipient lived
and worked in Kansas is not received in the prescribed time by the
board, the remaining loan amount shall be due and payable as
prescribed under K.S.A. 74-32,154 and amendments thereto.
(d) Interest rates on the loan shall be determined by the state
treasurer according to the interest rate received on the state idle funds
plus 3%.
Sec. 12. K.S.A. 74-32,154 is hereby amended to read as follows:
74-32,154. (a) Except as otherwise provided in K.S.A. 74-32,155, and
amendments thereto, upon the failure of any person to satisfy an
obligation incurred under the loan agreement as provided in K.S.A. 74-
32,152, and amendments thereto, such person shall repay to the state
treasurer an amount equal to the total of : (1) The amount of money
received by disbursed on behalf of such person pursuant to such
agreement,; plus (2) accrued interest, calculated at the interest rate on
the state idle funds plus 3%, from the date such money was received
from the accrual date determined under section 1, and amendments
thereto, and at the rate prescribed in section 1, and amendments
thereto.
(b) Each person required to repay any amount under this section
shall repay an amount totaling the entire amount to be repaid under all
such agreements for which obligations are not satisfied, including all
amounts of interest at the rate prescribed in subsection (a) section 1,
and amendments thereto. Except as otherwise provided in this section,
such repayment shall be made in installment payments determined by
the state board of regents as provided in subsection (c) of the K.S.A.
74-32,152(c), and amendments thereto.
(c) All installment payments under this section shall commence
six months after the date of the action or circumstance that causes the
failure of the person to satisfy the obligations of such agreements, as
determined by the state board of regents based upon the circumstances
of each individual case. If an installment payment becomes 91 days
overdue, the entire amount outstanding shall become immediately due
and payable, including all amounts of interest at the rate prescribed in
section 1, and amendments thereto.
(d) The total repayment obligation imposed under all agreements
entered into as provided in K.S.A. 74-32,152, and amendments thereto,
may be satisfied at any time prior to graduation by making a single
lump-sum payment equal to the total of : (1) The entire amount to be
repaid under all such agreements upon failure to satisfy the obligations
under such agreements to practice in Kansas ,; plus (2) all amounts of
interest accrued thereon at the rate prescribed in subsection (a) section
1, and amendments thereto.
(e) The state board of regents is authorized to turn any delinquent
SENATE BILL No. 50—page 8
repayment account arising under the workforce development loan
program to a designated loan servicer or collection agency, the state not
being involved other than to receive payments from the loan servicer or
collection agency at the interest rate prescribed under this section in
section 1, and amendments thereto.
Sec. 13. K.S.A. 74-32,223 is hereby amended to read as follows:
74-32,223. (a) Except as provided in K.S.A. 74-32,224, and
amendments thereto, upon the failure of any person to satisfy the
obligation under any agreement entered into pursuant to the program,
such person shall pay to the executive officer an amount equal to the
total amount of money received by disbursed on behalf of such person
pursuant to such agreement plus accrued interest at a rate which is
equivalent to the interest rate applicable to loans made under the federal
PLUS program at the time such person first entered into an agreement
plus five percentage points from the accrual date determined under
section 1, and amendments thereto, and at the rate prescribed in
section 1, and amendments thereto . Installment payments of any such
amounts may be made in accordance with the provisions of agreements
entered into by the scholarship recipient and the executive officer, in
accordance with rules and regulations of the state board of regents,
except that such installment payments shall commence six months after
the date of the action or circumstances that cause the failure of the
person to satisfy the obligations of such agreements, as determined by
the executive officer based upon the circumstances of each individual
case. Amounts paid under this section to the executive officer shall be
deposited in the nurse educator service scholarship repayment fund in
accordance with K.S.A. 74-32,226, and amendments thereto.
(b) The state board of regents is authorized to turn any repayment
account arising under the program over to a designated loan servicer or
collection agency, the state not being involved other than to receive
payments from the loan servicer or collection agency at the interest rate
prescribed under this section in section 1, and amendments thereto.
Sec. 14. K.S.A. 2024 Supp. 74-32,276 is hereby amended to read
as follows: 74-32,276. (a) As a condition to receiving a Kansas promise
scholarship, an eligible student shall enter into a Kansas promise
scholarship agreement with the state board of regents. The eligible
postsecondary educational institution making the scholarship award to
such student shall counsel each eligible student on the requirements and
conditions of the promise scholarship agreement. Such agreement shall
require any student who receives a Kansas promise scholarship to:
(1) Enroll as a full-time or part-time student at the eligible
postsecondary educational institution from which the student is
receiving a Kansas promise scholarship and engage in and complete the
required promise eligible program within 36 months of the date the
scholarship was first awarded;
(2) within six months after graduation from the promise eligible
program:
(A) Reside in and commence work in the state of Kansas for at
least two consecutive years following completion of such program. A
scholarship recipient may use a form W-2 wage and tax statement
showing Kansas withholding or estimated income tax to the state of
Kansas as proof of work in Kansas; or
(B) enroll as a full-time or part-time student in any public or
private postsecondary educational institution with its primary location
in Kansas and upon graduation or failure to re-enroll, reside in and
commence work in Kansas for at least two consecutive years following
the completion of such program;
(3) maintain records and make reports to the state board of regents
on such forms and in such manner as required by the state board of
SENATE BILL No. 50—page 9
regents to document the satisfaction of the requirements of this act; and
(4) upon failure to satisfy the requirements of a Kansas promise
scholarship agreement, repay the amount of the Kansas promise
scholarship the student received under the program as provided in
subsection (b) to the state board of regents.
(b) (1) Except as provided in subsection (c), if any student who
receives a Kansas promise scholarship fails to satisfy the requirements
of a Kansas promise scholarship agreement, such student shall pay an
amount equal to the total amount of money received by disbursed on
behalf of such student pursuant to such agreement that is financed by
the state of Kansas plus accrued interest at a rate equivalent to the
interest rate applicable to loans made under the federal PLUS program
at the time such student's first course funded by a Kansas promise
scholarship award began. Interest shall begin accruing on the date the
student is determined to be out of compliance with the Kansas promise
scholarship agreement from the accrual date determined under section
1, and amendments thereto, and at the rate prescribed in section 1, and
amendments thereto. Monthly installment payments of such amounts
may be made in accordance with rules and regulations of the state
board of regents. Such installment payments shall begin six months
after the date of the action or circumstances that cause such student to
fail to satisfy the requirements of a Kansas promise scholarship
agreement, as determined by the state board of regents upon the
circumstances of each individual case. All moneys received pursuant to
this subsection shall be remitted to the state treasurer in accordance
with the provisions of K.S.A. 75-4215, and amendments thereto. Upon
receipt of each such remittance, the state treasurer shall deposit the
entire amount in the state treasury to the credit of the Kansas promise
scholarship program fund.
(2) For any Kansas promise scholarship awarded on or after July
1, 2021, the state board of regents shall be the sole entity responsible
for collecting or recouping any Kansas promise scholarship funds
required to be repaid by a student who fails to satisfy the requirements
of a Kansas promise scholarship agreement pursuant to this section.
(3) The state board of regents is authorized to turn any repayment
account arising under this act to a designated loan servicer or collection
agency to collect on the state board's behalf, the state not being
involved other than to receive payments from the loan servicer or
collection agency at the interest rate prescribed under this subsection in
section 1, and amendments thereto.
(4) Eligible postsecondary educational institutions and each state
agency are authorized to provide academic, employment, residency and
contact information regarding students who received a Kansas promise
scholarship to the state board of regents for the purposes of:
(A) Determining whether or not a student satisfied the
requirements of this act and the Kansas promise scholarship agreement;
and
(B) aiding in the collection or recoupment of any funds required to
be repaid pursuant to this section.
(5) Eligible postsecondary educational institutions shall:
(A) Provide annually to the state board of regents the last known
contact information of each student who received a Kansas promise
scholarship until the requirements of the program and scholarship
agreement are complete; and
(B) notify the state board of regents when a student who received
a Kansas promise scholarship:
(i) Completes the program of study for which the student received
the scholarship or has exhausted scholarship benefits; and
(ii) exceeds the 36-month program completion requirement
SENATE BILL No. 50—page 10
provided in this section. This requirement shall apply to any Kansas
promise scholarship awarded on or after July 1, 2021.
(6) For any Kansas promise scholarship awarded on or after July
1, 2021, eligible postsecondary educational institutions shall not be
considered a contractor of the state nor shall such institutions be
required to participate in tracking, collecting or recouping any funds
required to be repaid by a student who fails to satisfy the requirements
of a Kansas promise scholarship agreement pursuant to this section.
(c) Any requirement of a Kansas promise scholarship agreement
entered into pursuant to this section may be postponed for good cause
in accordance with rules and regulations of the state board of regents.
(d) A scholarship recipient satisfies the requirements of the Kansas
promise scholarship program if such recipient:
(1) Completes the requirements of the scholarship agreement;
(2) commences service as a military servicemember after
receiving a Kansas promise scholarship;
(3) fails to satisfy the requirements after making the best possible
effort to do so as determined by the state board of regents;
(4) is unable to obtain employment or continue in employment
after making the best possible effort to do so; or
(5) is unable to satisfy the requirements due to disability or death
of the scholarship recipient.
Sec. 15. K.S.A. 2024 Supp. 74-32,286 is hereby amended to read
as follows: 74-32,286. (a) As a condition to receiving a grant under this
act, an eligible student shall enter into an agreement with the state
board of regents. The eligible postsecondary educational institution that
awarded such grant. Such eligible postsecondary educational institution
shall counsel each eligible student on the requirements and conditions
of the agreement. Such agreement shall require any student who
receives a grant award to:
(1) Enroll as a full-time or part-time student at the eligible
postsecondary educational institution that made the grant award and
engage in and complete the adult learner grant eligible program;
(2) within six months after graduation from the adult learner grant
eligible program:
(A) Reside and commence work in the state of Kansas for at least
two consecutive years following completion of such program. A
scholarship recipient may use a form W-2 wage and tax statement
showing Kansas withholding or estimated income tax to the state of
Kansas as proof of work in Kansas; or
(B) enroll as a full-time or part-time student in any public or
private postsecondary educational institution with its primary location
in Kansas and upon graduation or failure to re-enroll, reside in and
commence work in Kansas for at least two consecutive years following
the completion of such program;
(3) maintain records and make reports to the state board of regents
on such forms and in such manner as required by the state board of
regents to document the satisfaction of the requirements of this act; and
(4) upon failure to satisfy the requirements of an agreement
entered into pursuant to this section, repay the amount of the grant
award the student received under the program as provided in subsection
(b) to the state board of regents.
(b) (1) Except as provided in subsection (c), if any student who
receives a grant award fails to satisfy the requirements of the agreement
entered into pursuant to this section, such student shall pay an amount
equal to the total amount of money received by disbursed on behalf of
such student pursuant to such agreement plus accrued interest at a rate
equivalent to the interest rate applicable to loans made under the federal
PLUS program at the time such student's first course funded by a grant
SENATE BILL No. 50—page 11
award began. Interest shall begin accruing on the date the student is
determined to be out of compliance with the agreement from the
accrual date determined under section 1, and amendments thereto, and
at the rate prescribed in section 1, and amendments thereto . Monthly
installment payments of such amounts may be made in accordance with
rules and regulations of the state board of regents. Such installment
payments shall begin six months after the date of the action or
circumstances that cause such student to fail to satisfy the requirements
of the agreement, as determined by the state board of regents upon the
circumstances of each individual case. All moneys received pursuant to
this subsection shall be remitted to the state treasurer in accordance
with the provisions of K.S.A. 75-4215, and amendments thereto. Upon
receipt of each such remittance, the state treasurer shall deposit the
entire amount in the state treasury to the credit of the Kansas adult
learner grant program fund.
(2) The state board of regents shall be the sole entity responsible
for collecting or recouping any grant moneys required to be repaid by a
student who fails to satisfy the requirements of an agreement entered
into pursuant to this section.
(3) The state board of regents is authorized to turn any repayment
account arising under this act to a designated loan servicer or collection
agency to collect on the state board's behalf. The state's involvement
shall only be to receive payments from the loan servicer or collection
agency at the interest rate prescribed under this subsection in section 1,
and amendments thereto.
(4) Eligible postsecondary educational institutions and each state
agency are authorized to provide academic, employment, residency and
contact information regarding students who received a grant award to
the state board of regents for the purposes of:
(A) Determining whether or not a student satisfied the
requirements of this act and the agreement entered into pursuant to this
section; and
(B) aiding in the collection or recoupment of any funds required to
be repaid pursuant to this section.
(5) Eligible postsecondary educational institutions shall:
(A) Provide annually to the state board of regents the last known
contact information of each student who received a grant award until
the requirements of the program and the agreement are complete; and
(B) notify the state board of regents when a student who received
a grant award completes the program of study for which the student
received the grant or has exhausted the benefits available under this act.
(6) Eligible postsecondary educational institutions shall not be
considered a contractor of the state nor shall such institutions be
required to participate in tracking, collecting or recouping any moneys
required to be repaid by a student who fails to satisfy the requirements
of an agreement entered into pursuant to this section.
(c) Any requirement of an agreement entered into pursuant to this
section may be postponed for good cause in accordance with rules and
regulations of the state board of regents.
(d) A scholarship recipient satisfies the requirements of the adult
learner grant program if such recipient:
(1) Completes the requirements of the agreement entered into
pursuant to this section;
(2) commences service as a military servicemember after
receiving a grant award;
(3) fails to satisfy the requirements after making the best possible
effort to do so as determined by the state board of regents;
(4) is unable to obtain employment or continue in employment
after making the best possible effort to do so; or
SENATE BILL No. 50—page 12
(5) is unable to satisfy the requirements due to disability or death
of the grant recipient.
Sec. 16. K.S.A. 75-650 is hereby amended to read as follows: 75-
650. (a) As used in this section:
(1) "Federal poverty level" means the most recent poverty income
guidelines published in the calendar year by the United States
department of health and human services.
(2) "Program" means the low-income family postsecondary
savings accounts incentive program established by this section.
(3) "Qualified individual or family" means an individual or family
who resides within the state of Kansas and whose household income is
positive and not more than 200% of the federal poverty level for the tax
year prior to the year in which the application is submitted.
(4) "Participant" means a qualified individual or family who has
been approved for a matching grant under the program.
(5) "District" means a congressional district of the state of Kansas.
(6) "Application" means an application for a matching grant under
the program.
(7) "Third-party contributor" means any individual or organization
who contributes money moneys to a family postsecondary savings
account established pursuant to K.S.A. 75-640 et seq., and amendments
thereto, other than the account owner who established such family
postsecondary savings account for the benefit of the participant.
(8) Words and phrases have the meanings provided by K.S.A. 75-
643, and amendments thereto, unless otherwise provided by this
section.
(b) There is hereby established the low-income family
postsecondary savings accounts incentive program. The purpose of the
program is to encourage the establishment of family postsecondary
savings accounts pursuant to K.S.A. 75-640, and amendments thereto,
by qualified individuals and families.
(c) The treasurer shall:
(1) Implement and administer the program;
(2) develop marketing plans and promotional material for the
program;
(3) prescribe the procedure for , and requirements relating to , the
submission and approval of applications;
(4) do all things necessary and proper to carry out the purposes of
this act; and
(5) adopt any rules and regulations and policies deemed necessary
for implementation and administration of the program.
(d) Applications shall be submitted to the treasurer in the manner
and form required by the treasurer. Applications shall be accompanied
by any information deemed necessary by the treasurer. Applications
must shall be submitted each year using the applicant's household
income from the previous tax year.
(e) Beginning in calendar year 2009 In calendar years 2025, 2026
and 2027, the treasurer may approve no not more than 300 250
applications from a single district. If 300 250 applications from
residents of a district are not approved in each such calendar year 2009
or any year thereafter, the treasurer may approve additional applications
submitted by residents of the remaining districts of up to the program
total of 1,200 1,000 applications per year. Applications shall be
approved on a first come, first served basis. The treasurer shall provide
written notice, to an applicant , of the approval or nonapproval of such
person's application. For calendar year 2028, and each calendar year
thereafter, the treasurer shall not accept nor approve any application
for the program.
(f) The amount of contributions made to an account by an account
SENATE BILL No. 50—page 13
owner who establishes a family postsecondary savings account for the
benefit of a participant pursuant to K.S.A. 75-640 et seq., and
amendments thereto, shall be matched by the state on a dollar-for-dollar
basis if the account owner contributes at least $100 to a family
postsecondary education savings account for the benefit of the
participant during the calendar year any of the calendar years 2025,
2026 and 2027 for which the application has been approved. The
aggregate of all matching amounts for any family postsecondary
savings account shall not exceed $600 in for any calendar year. All
contributions by a third-party contributor shall be deposited in the
matching grant account for the participant established by the treasurer
or another similar account for which the withdrawals are restricted as
required by subsection (h).
(g) Between January 1 and January 31 of each state fiscal year, the
director of accounts and reports shall transfer from the state general
fund to the Kansas postsecondary education savings program trust fund
the amount, as certified by the treasurer, necessary to meet the
matching obligations under subsection (f) for the preceding calendar
year, except that the amount transferred from the state general fund to
the Kansas postsecondary education savings program trust fund shall
not exceed the maximum amount specified by appropriation act for
such purpose for that state fiscal year. On or before January 31 of each
year, the treasurer shall transfer from the Kansas postsecondary
education savings program trust fund to the account of each participant
the amount determined by the treasurer to meet the matching obligation
due to such participant under subsection (f) for the preceding calendar
year.
(h) (1) The treasurer shall ensure that all withdrawals of matching
funds are used for qualified withdrawals under K.S.A. 75-640 et seq.,
and amendments thereto.The treasurer shall not be required to
prospectively approve any withdrawals under the program.
Withdrawals of matching funds under the program shall be subject to
audit as provided in this subsection.
(2) The treasurer shall retrospectively audit at least 10
withdrawals of matching funds under the program made during each of
the calendar years 2025, 2026 and 2027 to determine whether each
such withdrawal was a qualified withdrawal or a nonqualified
withdrawal under K.S.A. 75- 640 et seq., and amendments thereto. The
treasurer shall notify any participant whose withdrawal was selected
for audit and request such participant to provide to the treasurer any
documentation and information deemed necessary by the treasurer to
facilitate the audit and determine whether the withdrawal was a
qualified withdrawal or a nonqualified withdrawal under K.S.A. 75-
640 et seq., and amendments thereto. Such documentation and
information shall be submitted to the treasurer in the manner and form
required by the treasurer on or before a deadline established by the
treasurer and specified in the notice. If the participant does not timely
respond to the notice of the audit, the audited withdrawal shall be
conclusively presumed to be a nonqualified withdrawal. If the
participant does not timely respond to the notice of audit or the
treasurer otherwise determines that the audited withdrawal was a
nonqualified withdrawal, then the treasurer shall provide notice thereof
to the Kansas department of revenue or other appropriate taxing
authorities as determined by the treasurer and the participant.
(3) The treasurer's determination that a withdrawal is a
nonqualified withdrawal under K.S.A. 75-640 et seq., and amendments
thereto, shall be conclusive for the purposes of this act, absent manifest
error.
(4) If the treasurer determines that the audited withdrawal was a
SENATE BILL No. 50—page 14
nonqualified withdrawal under K.S.A. 75-640 et seq., and amendments
thereto, then the participant shall refund the matching portion of the
withdrawal by paying such portion to the treasurer, on payment terms
established by the treasurer. Any such amounts that remain due and
unpaid after the date prescribed by the treasurer for the payment
thereof shall be subject to interest at the rate of 5% per annum,
compounded monthly, from the date prescribed by the treasurer for the
payment thereof. To collect such refund and interest from the
participant, the treasurer is authorized to certify the amount due for
setoff pursuant to K.S.A. 75-6201 et seq., and amendments thereto, and
to exercise any other enforcement right otherwise available to the
treasurer. The refund requirement under this act is in addition to and
not in substitution for any other fine, penalty, interest or other
consequence otherwise imposed by law in connection with withdrawals
from the Kansas postsecondary education savings program.
(i) The treasurer shall deposit all refunds and interest received
under subsection (h) in the state treasury to the credit of the state
general fund.
(i)(j) The treasurer shall prepare and submit to the governor and
the legislature a report on the program on or before January 31 of each
year 2026, 2027 and 2028 . Such report shall include the number of
accounts opened under the program, the amount of moneys contributed
to such accounts by the participants, the amount of matching moneys
transferred by the treasurer pursuant to subsection (g), the average
income of the participants, an analysis of the success of the program in
meeting the purpose of the program the number and results of any
audit performed pursuant to subsection (h) and any other information
deemed appropriate by the treasurer.
(j)(k) The provisions of this section shall be a part of and
supplemental to the Kansas postsecondary education savings program.
Sec. 17. K.S.A. 74-3260, 74-3267, 74-3272, 74-32,104, 74-
32,116, 74-32,135, 74-32,153, 74-32,154, 74-32,223 and 75-650 and
K.S.A. 2024 Supp. 74-3295, 74-32,276 and 74-32,286 are hereby
repealed.
SENATE BILL No. 50—page 15
Sec. 18. This act shall take effect and be in force from and after its
publication in the Kansas register.
I hereby certify that the above BILL originated in the
SENATE, and passed that body
__________________________
SENATE adopted
Conference Committee Report ________________
_________________________
President of the Senate.
_________________________
Secretary of the Senate.
Passed the HOUSE
as amended _________________________
HOUSE adopted
Conference Committee Report ________________
_________________________
Speaker of the House.
_________________________
Chief Clerk of the House.
APPROVED _____________________________
_________________________
Governor.