CHAPTER 20-I. HEALTH CARE EMPLOYMENT REINVESTMENT

OPPORTUNITY FUND

§3050.11. Health Care Employment Reinvestment Opportunity (H.E.R.O.) Fund

            A. There is hereby established in the state treasury a special fund, to be known as the Health Care Employment Reinvestment Opportunity (H.E.R.O.) Fund, referred to in this Chapter as the "fund". The fund shall consist of monies received by legislative appropriation and from grants and donations. Deposits into the fund shall comply with the provisions of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption Fund.

            B. Monies in the fund shall be invested by the state treasurer in the same manner as monies in the state general fund, and interest earned on the investment of monies in the fund shall be credited to the fund. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

            C.(1) Subject to legislative appropriation, the Louisiana Department of Health, office of the secretary, hereinafter referred to in this Section as "department", is hereby authorized and directed to determine how monies in the fund are allocated and expended through a multiple year plan, solely and exclusively for the following purposes:

            (a) Meet the current and growing employment demands for nursing and allied health professionals by increasing the capacity of nursing and allied health training programs through supporting initiatives such as increasing faculty positions and clinical preceptors in nursing and allied health schools.

            (b) Support the nursing and allied health professions by providing incentives that financially support student financial stipends and tuition forgiveness contingent upon employment in Louisiana healthcare facilities or nursing or allied health schools.

            (c) Provide incentives for nursing and allied healthcare professionals to practice in Louisiana with an emphasis on medically underserved areas of the state.

            (d) Support dual enrollment and pathway programs between high school career and technical programs and other healthcare programs.

            (e) Support strategies for healthcare organizations to increase career pathways and apprenticeship programs.

            (f) Raise awareness of and interest in a broad variety of healthcare occupations and reduce the barriers to access to the healthcare programs necessary to pursue these occupations, including financial barriers.

            (2) Monies in the fund shall not be used for construction, maintenance, repair, or improvement of structures.

            D.(1) The department may utilize monies in the fund for funding grant proposals that support efforts with training and education programs and institutions for the purpose of increasing educational opportunities and training of Louisiana residents who are seeking enrollment or are currently enrolled in healthcare training or education programs in Louisiana. Such grant proposals may include financial incentives to support Louisiana students in nursing and allied health profession training or education programs.

            (2) The department may utilize monies in the fund in order to fund nursing or allied health internships at licensed healthcare providers in Louisiana, including healthcare providers owned or operated by the state of Louisiana.

            (3) The department may utilize monies in the fund for funding grant proposals that support joint efforts between healthcare industry partners and education programs for the purpose of increasing training opportunities for Louisiana residents who are seeking enrollment or are currently enrolled in healthcare education programs in Louisiana.

            (4) The department may utilize monies in the fund, not to exceed ten percent of the fund annually, for administrative costs to implement grant proposals or programs that meet the purposes of this Section and fulfill the provisions of this Section.

            (5) At least annually, the department shall publish a notice of funding opportunity on its website for not less than sixty days prior to the deadline to submit a notice of intent to apply for a grant. The notification of funding opportunity shall include all of the following:

            (a) The grant period.

            (b) The date by which to submit a notice of intent to apply for a grant.

            (c) The deadline to apply for the grant. Proposals shall be accepted as early as thirty days following the notice of intent deadline.

            (d) The dollar amount of available grant awards.

            (6) Grant proposals shall include the following components which shall be used to prioritize funding along with the evaluation criteria established in Paragraph (7) of this Subsection:

            (a) The total amount of funds requested and a detailed budget for the expenditure of these funds, including personnel, operating expenses, equipment acquisitions, training expenses, and other allowable expenses as outlined in the administrative rules and regulations promulgated pursuant to this Section.

            (b) A narrative explaining how the grant award will increase training of nursing and allied healthcare providers and specific deliverables of the healthcare industry partner and the education program.

            (c) A declaration that statutory requirements shall be satisfied.

            (d) A statement that the healthcare industry partner shall match, with monies or in-kind contributions, at least an amount equal to the grant award. The statement shall indicate the cash or in-kind amounts that the healthcare partner plans to contribute.

            (7) The department shall evaluate and rank each completed and timely submitted proposal. The department shall consider the strength of the proposed programs, the geographic location of the proposals, and statewide workforce demands in order to promote the distribution of grant awards and avoid a concentration of grant awards in any single region of the state. The department shall evaluate the proposals on all of the following minimum criteria:

            (a) Whether the funds committed by the healthcare industry partner will contribute to an eligible purpose.

            (b) How the funds will be utilized to increase enrollment and program completion.

            (c) How the healthcare industry partner will onboard and retain graduates.

            (d) How the funds will expand nursing and allied health education programs to meet local, regional, or state workforce demands. If applicable, this shall include advanced education nursing programs and how the funds will increase the number of faculty and clinical preceptors.

            (8) Prior to issuing a notice of award to any grantee, the department shall submit the proposed grant awards to the Joint Legislative Committee on the Budget for approval. The department shall award grant funding in response to eligible grant proposals based on Paragraphs (6) and (7) of this Subsection and any applicable rules and regulations promulgated pursuant to this Section. The department shall notify the grant applicant of the approved proposals and award amounts.

            (9) Prior to the release of a grant award, the grantee shall provide to the department documentation of the grantee's cash or in-kind contribution.

            (10) Awards shall be released on no more than a quarterly basis.

            (11) Each grantee shall submit a report to the department on performance metrics and outcomes pursuant to the rules and regulations promulgated pursuant to this Section.

            E. On or before March first of each calendar year, the department shall submit a plan of fund allocation for the next fiscal year to the House Committee on Health and Welfare, the Senate Committee on Health and Welfare, and the Joint Legislative Committee on the Budget.

            F. The department shall submit a comprehensive annual report to the Joint Legislative Committee on the Budget, the Senate Committee on Health and Welfare, and the House Committee on Health and Welfare no later than sixty days after the end of the fiscal year in which monies were appropriated pursuant to the provisions of this Section.

            G. The department may enter into any contract, memorandum of understanding, or cooperative endeavor agreement with a grantee, healthcare industry partner, or education program that may be necessary to effectuate the provisions of this Section.

            H. The department shall promulgate rules and adopt regulations, in accordance with the Administrative Procedure Act, to implement the provisions of this Section.

            I. To effectuate the provisions of this Section, the Louisiana Board of Regents shall assist the department with information and documentation on training and education programs and institutions related to nursing and allied health professions and related matters.

            Acts 2021, No. 109, §1; Acts 2022, No. 374, §1; Acts 2024, No. 607, §1, eff. July 1, 2024.