SB3262

SECTION 1. The legislature finds that there is a need for more licensed veterinarians in the State. Specifically, as of 2020, only about three hundred twenty veterinarians were working in Hawaii. This number is expected to grow by only about 1.6 per cent each year through 2030, which is not enough to meet the State's growing demand for veterinarians.

The legislature further finds that there are a number of issues that limit the potential to increase the number of licensed veterinarians in the State. First, there is currently no in-state veterinary school. Therefore, residents who wish to pursue careers as veterinarians must leave the State to obtain the necessary education and training. In addition, students wishing to attend a public veterinary school will likely need to pay tuition at the rate applicable to out-of-state students. Accordingly, the cost to obtain a veterinary education may exceed $250,000. Although there are likely many residents who aspire to become licensed veterinarians, these factors make this goal too expensive for many to attain. Finally, Hawaii's high cost of living may deter some veterinarians from opening practices in the State. In light of these foregoing issues, the legislature finds that steps must be taken to incentivize veterinarians to practice in Hawaii.

The legislature further finds that the John A. Burns School of Medicine administers a state loan repayment and scholarship program that provides loan repayments to physicians who commit to working in certain parts of the State, and awards scholarships to qualifying medical students. This program has successfully incentivized more physicians to remain in Hawaii to practice medicine. The legislature finds that expanding this program to include scholarships and loan repayments for current and future veterinarians is a potential way to grow that profession in Hawaii.

Accordingly, the purpose of this Act is to expand the current state loan repayment and scholarship program for physicians to include veterinarians by:

(1) Renaming the John A. Burns school of medicine special fund as the physician and veterinarian special fund;

(2) Expanding the authorized uses of special fund moneys to include providing loan repayments to veterinarians and scholarships for students attending a veterinary college; provided that the recipient commits to working in the State for a minimum period of time;

(3) Requiring the Hawaii board of veterinary medicine to establish and administer a loan repayment and scholarship program;

(4) Establishing a fee to be assessed on persons obtaining or renewing a veterinary license;

(5) Providing for the deposit of fee revenues into the physician and veterinarian special fund;

(6) Requiring the university of Hawaii and Hawaii board of veterinary medicine to enter into an intergovernmental agreement or memorandum of understanding regarding the administration and use of the physician and veterinarian special fund; and

(7) Appropriating moneys into and out of the physician and veterinarian special fund.

SECTION 2. Chapter 471, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§471- Veterinary workforce development fee; scholarship and loan repayment program. (a) In addition to any other fee authorized under this chapter, the board shall assess a veterinary workforce development fee of $60 on each person obtaining a license or renewing a license. The fee revenue shall be transferred and deposited into the physician and veterinarian special fund established under section 304A-2171 and expended to support the loan repayment and scholarship program established by subsection (b). Payment of the veterinary workforce development fee shall be required to obtain or renew a license.

(b) The board shall establish and administer a loan repayment and scholarship program that provides:

(1) Loan repayments to veterinarians who commit to working in Hawaii for a minimum period of time determined by the board; and

(2) Scholarships to students attending a veterinary college that meets standards established by the board; provided that the scholarship recipient commits to work in the State after graduation for a minimum period of time determined by the board.

(c) A person who received a loan repayment or scholarship pursuant to subsection (b) and who does not work in Hawaii for the minimum time period specified by the board shall repay the amount of the loan repayment or scholarship received to the physician and veterinarian special fund; provided that the board may waive this requirement upon good cause shown.

(d) The board shall adopt rules in accordance with chapter 91 necessary to implement and administer the loan repayment and scholarship program, including eligibility requirements and procedures."

SECTION 3. Section 304A-2171, Hawaii Revised Statutes, is amended to read as follows:

"§304A-2171 [~~John A. Burns school of medicine~~] Physician and veterinarian special fund. (a) There is established the [~~John A. Burns school of medicine~~] physician and veterinarian special fund, to be administered and expended by the University of Hawaii[.], subject to the university of Hawaii's intergovernmental agreement or memorandum of understanding with the Hawaii board of veterinary medicine pursuant to subsection (d).

(b) The following shall be deposited into the special fund:

(1) Appropriations by the legislature;

(2) Physician workforce assessment fees established pursuant to section 453-8.8;

(3) Veterinary workforce development fees established pursuant to section 471- ;

[~~(3)~~] (4) Grants, donations, gifts, or other income received for the purposes of the special fund; and

[~~(4)~~] (5) Interest earned or accrued on moneys in the special fund.

(c) Moneys in the special fund shall be used to support the John A. Burns school of medicine's activities related to physician workforce assessment and planning within Hawaii[;] and the Hawaii board of veterinary medicine's scholarship and loan repayment program pursuant to section 471- ; provided that the physician workforce assessment fees transferred and deposited into the special fund pursuant to section 453-8.8 shall be used for purposes identified by the Hawaii medical education council to support physician workforce assessment and planning efforts, including the recruitment and retention of physicians, for rural and medically underserved areas of the State[~~. This~~]; provided further that the veterinary workforce development fees transferred and deposited pursuant to section 471- shall be kept in a separate account within the special fund and expended by the Hawaii board of veterinary medicine for the purposes of section 471- . The purposes of the special fund shall include but not be limited to:

(1) Maintaining accurate physician workforce assessment information and providing or updating personal and professional information, that shall be maintained in a secure database;

(2) Providing loan repayment to physicians who commit to working in medically underserved areas of the State as part of the Hawaii state loan repayment program administered by the John A. Burns school of medicine; [~~and~~]

(3) Providing scholarships to qualifying medical students to be determined by the John A. Burns school of medicine[.];

(4) Providing loan repayment to veterinarians who commit to work in the State as part of a loan repayment program administered by the Hawaii board of veterinary medicine pursuant to section 471- ; and

(5) Providing scholarships to qualifying students attending a veterinary college and who commit to work in the State pursuant to section 471- .

The John A. Burns school of medicine may disclose information specific to any physician only with the express written consent of that physician.

(d) The university of Hawaii and Hawaii board of veterinary medicine shall execute an intergovernmental agreement or memorandum of understanding that establishes each agency's rights and responsibilities regarding the administration and use of moneys in the special fund."

SECTION 4. Section 453-8.8, Hawaii Revised Statutes, is amended to read as follows:

"§453-8.8 Physician workforce assessment fee; license; physician workforce information. When a license is renewed, each physician or surgeon and each osteopathic physician or surgeon shall be assessed a fee of $60 that shall be transferred and deposited into the [~~John A. Burns school of medicine~~] physician and veterinarian special fund established under section 304A-2171 to support ongoing assessment and planning of the physician workforce in Hawaii, including:

(1) Ongoing assessment and planning, as well as the recruitment and retention of physicians, especially for the physician workforce serving rural and medically underserved areas of the State;

(3) Providing scholarships to qualifying medical students to be determined by the John A. Burns school of medicine.

Payment of the physician workforce assessment fee shall be required for license renewal."

SECTION 5. In accordance with section 9 of article VII, of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriation contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ , or per cent. The reasons for exceeding the general fund expenditure ceiling are that the appropriation made in this Act is necessary to serve the public interest and to meet the need provided for by this Act.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the physician and veterinarian special fund.

SECTION 7. There is appropriated out of the physician and veterinarian special fund the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 to provide loan repayments and scholarships to persons who commit to working as veterinarians in the State.

The sum appropriated shall be expended by the board of veterinary medicine for the purposes of this Act.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3262
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII