An Act to establish scholarships for individuals pursuing careers in the behavioral health field, to make an appropriation therefor, and to declare an emergency.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. There is hereby appropriated from the general fund the sum of $5,000,000 for the purpose of administering and funding the first five years of behavioral health scholarships described in sections 5 to 13, inclusive, of this Act.

Section 2. The state treasurer shall transfer from the general fund the sum of $15,000,000 to the behavioral health scholarship fund, established in section 14 of this Act.

Section 3. The executive director of the Board of Regents shall approve vouchers and the state auditor shall draw warrants to pay expenditures from the fund.

Section 4. Any amounts appropriated in section 1 of this Act not lawfully expended or obligated by June 30, 2028, shall revert in accordance with the procedures prescribed in chapter 4-8.

Section 5. That chapter 13-55 be amended with a NEW SECTION:

The Board of Regents shall award annual behavioral health scholarships to undergraduate students having a declared major in, and students pursuing graduate degrees for:

(1) Psychology;

(2) Counseling;

(3) Therapy;

(4) Social work; or

(5) Any other field related to behavioral health, as determined by the Board of Regents.

Section 6. That chapter 13-55 be amended with a NEW SECTION:

To be eligible for a behavioral health scholarship, a student must:

(1) Be a resident of this state, or a resident of Iowa, Minnesota, Montana, Nebraska, North Dakota, or Wyoming;

(2) Be continuously enrolled in:

(a) An institution under the control of the Board of Regents;

(b) An institution under the control of the Board of Technical Education; or

(c) A regionally accredited private institution of higher education or tribal college, having a physical location in this state;

(3) Have achieved a grade point average of at least 2.8 on a 4.0 grading scale in the preceding academic year, or in the last year of enrollment as a full-time student prior to application; and

(4) Maintain an annual grade point average of at least 2.8 during the academic year to which the scholarship is applicable.

Section 7. That chapter 13-55 be amended with a NEW SECTION:

The Board of Regents shall develop, and make available on the Board of Regent's website, forms for use in the behavioral health scholarship application process. The Board of Regents shall determine the final date by which all applications must be submitted.

Section 8. That chapter 13-55 be amended with a NEW SECTION:

Applications submitted to the Board of Regents must be reviewed by a behavioral health scholarship advisory committee, consisting of:

(1) One member appointed by the speaker of the House of Representatives;

(2) One member appointed by the president pro tempore of the Senate;

(3) One behavioral health professional appointed by the secretary of the Department of Health;

(4) One school behavioral professional appointed by the secretary of the Department of Education; and

(5) One member appointed by the executive director of the Board of Regents.

Section 9. That chapter 13-55 be amended with a NEW SECTION:

The advisory committee shall verify the contents of each behavioral health scholarship application and recommend scholarship recipients to the Board of Regents. The advisory committee shall give priority to residents of this state. The Board of Regents shall annually award scholarships in an amount not exceeding the lesser of:

(1) The total amount payable by the student for tuition and mandatory fees at the institution in which the student is enrolled; or

(2) The total amount payable for tuition and mandatory fees for a comparable program at an institution under the control of the Board of Regents.

The Board of Regents may reduce a scholarship by the amount of any scholarship or grant available to the student.

Section 10. That chapter 13-55 be amended with a NEW SECTION:

A behavioral health scholarship awarded pursuant to sections 5 to 13, inclusive, of this Act is automatically renewed upon verification by the Board of Regents that the student is pursuing an eligible major or program and maintains eligibility pursuant to section 6 of this Act.

If a student is no longer pursuing an eligible major or program or does not maintain eligibility, the Board of Regents shall notify the student that the total amount of scholarship funds awarded to the student are converted to an interest-bearing loan.

The Board of Regents may grant an exception, upon application of the student and for good cause shown, to the continuous enrollment requirement in section 6 of this Act.

Section 11. That chapter 13-55 be amended with a NEW SECTION:

As a condition of accepting a behavioral health scholarship, a student shall agree, in writing:

(1) To serve in a field related to behavioral health, as referenced in section 5 of this Act, in this state for a period of five years following graduation or completion of the academic program being pursued; and

(2) That failure to pursue an eligible major or program, or to maintain the eligibility requirements in section 6 of this Act, shall result in the scholarship being converted to an interest-bearing loan.

If the student is unable to meet the employment requirements of this section within six years following graduation or completion of the academic program being pursued, the Board of Regents shall initiate collection proceedings for the purpose of recouping a pro rata share of the total amount of behavioral health scholarships awarded to the student, based on the percentage of the five-year period during which the student was not engaged in the field of behavioral health.

The Board of Regents may, upon application of the student and for good cause shown, delay or elect to waive the loan or collection proceedings.