PRINTER'S NO. 1642
No. 1256 Session of 2001
INTRODUCED BY MOWERY, RHOADES, MURPHY, EARLL, KUKOVICH,
HELFRICK, ORIE, WAUGH, MADIGAN, STACK, TARTAGLIONE, HOLL,
LOGAN, MUSTO, PUNT, CORMAN, STOUT, TOMLINSON, WAGNER,
BOSCOLA, COSTA, GERLACH, O'PAKE, D. WHITE, LEMMOND, ROBBINS,
ERICKSON, DENT, SCARNATI, THOMPSON, GREENLEAF, KASUNIC,
MELLOW, SCHWARTZ AND M. WHITE, DECEMBER 21, 2001
REFERRED TO EDUCATION, DECEMBER 21, 2001
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," further providing for definitions and
6 for nursing loan forgiveness program; establishing the
7 Pennsylvania Nurse Scholarship Program; providing for
8 administration of the program; further providing for annual
9 report; and providing for minimum nursing data set.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. The definitions of "approved nursing program" and
13 "nursing school applicant" in section 2203-A of the act of March
14 10, 1949 (P.L.30, No.14), known as the Public School Code of
15 1949, added October 30, 2001 (P.L.828, No.83), are amended and
16 the section is amended by adding definitions to read:
17 Section 2203-A. Definitions.
18 The following words and phrases when used in this article
19 shall have the meanings given to them in this section unless the
1 context clearly indicates otherwise:
2 * * *
3 "Approved course of study." A program or curriculum offered
4 by a postsecondary educational institution that provides
5 instruction in nursing and has been approved by the State Board
6 of Nursing.
7 * * *
8 ["Approved nursing program." An institution located in this
9 Commonwealth and accredited to grant professional and academic
10 degrees or diplomas in nursing as defined in the act of May 22,
11 1951 (P.L.317, No.69), known as The Professional Nursing Law.]
12 "Board." The State Board of Nursing of the Commonwealth.
13 * * *
14 "Licensed practical nurse." An individual licensed under the
15 laws of this Commonwealth to practice practical nursing.
16 ["Nursing school applicant." An individual who is a resident
17 of this Commonwealth and is enrolled in an approved nursing
18 program.]
19 * * *
20 Section 2. Section 2213-A of the act, added October 30, 2001
21 (P.L.828, No.83), is amended to read:
22 Section 2213-A. [Loan forgiveness program.] Pennsylvania Nurse
23 Loan Forgiveness Program.
24 [(a) Establishment of program.--The agency shall administer
25 a loan forgiveness program for nursing school applicants on a
26 Statewide basis. The agency may provide loan forgiveness as
27 provided in subsection (b) for recipients of loans who by
28 contract with the agency agree to practice professional nursing
29 in this Commonwealth upon attainment of the required license.
30 (b) Loan forgiveness.--Agency-administered, federally
20010S1256B1642 - 2 -
1 insured student loans for higher education provided to a nursing
2 school applicant may be forgiven by the agency as follows:
3 (1) The agency may forgive 50% of the loan, not to
4 exceed $50,000, if a loan recipient enters into a contract
5 with the agency that requires the recipient upon successful
6 completion of an approved nursing program and licensure as a
7 registered nurse to practice nursing in this Commonwealth for
8 a period of not less than three consecutive years.
9 (2) Loan forgiveness awards made pursuant to paragraph
10 (1) shall be forgiven over a period of three years at an
11 annual rate of 33 1/3% of the award and shall be made from
12 funds appropriated for this purpose.
13 (3) The contract entered into with the agency pursuant
14 to paragraph (1) shall be considered a contract with the
15 Commonwealth and shall include the following terms:
16 (i) An unlicensed recipient shall apply for a
17 registered nurse's license to practice in this
18 Commonwealth at the earliest practicable opportunity upon
19 successfully completing a degree in nursing.
20 (ii) Within six months after licensure, a recipient
21 shall engage in the practice of nursing in this
22 Commonwealth according to the terms of the loan
23 forgiveness award.
24 (iii) The recipient shall agree to practice in a
25 licensed health care facility in the provision of direct
26 patient care on a full-time basis.
27 (iv) The recipient shall permit the agency to
28 determine compliance with the work requirement for nurses
29 and all other terms of the contract.
30 (v) Upon the recipient's death or total or permanent
20010S1256B1642 - 3 -
1 disability, the agency shall nullify the service
2 obligation of the recipient.
3 (vi) If the recipient is convicted of or pleads
4 guilty or no contest to a felony or if the licensing
5 board has determined that the recipient has committed an
6 act of gross negligence in the performance of service
7 obligations or has suspended or revoked the license to
8 practice, the agency shall have the authority to
9 terminate the recipient's service in the program and
10 demand repayment of the amount of the loan as of the date
11 of the conviction, determination, suspension or
12 revocation.
13 (vii) Loan recipients who fail to begin or complete
14 the obligations contracted for shall pay to the agency
15 the amount of the loan received under the terms of the
16 contract pursuant to this section. Providing false
17 information or misrepresentation on an application or
18 verification of service shall be deemed a default.
19 Determination as to the time of default shall be made by
20 the agency.
21 (4) Notwithstanding 42 Pa.C.S. § 8127 (relating to
22 personal earnings exempt from process), the agency may seek
23 garnishment of wages in order to collect the amount of the
24 loan following default under paragraph (3)(vii).]
25 (a) Establishment of program.--There is hereby established
26 in this Commonwealth the Pennsylvania Nurse Loan Forgiveness
27 Program. The Pennsylvania Nurse Loan Forgiveness Program shall
28 be for repayment of student loans for nurses providing direct
29 patient care in licensed health care facilities and shall be
30 administered by the agency.
20010S1256B1642 - 4 -
1 (b) Repayment assistance.--The agency may provide assistance
2 to a nurse who has borrowed through and has a current
3 outstanding balance with the agency-guaranteed Stafford or
4 Consolidation Loan programs for education at an approved
5 institution of higher learning. Repayment assistance may not be
6 made for a loan that is in default at the time of the
7 application or for an agency-administered federally insured
8 student loan being repaid through any other loan repayment
9 assistance program. Repayment shall be made by the agency to the
10 lending institution on behalf of the loan recipient.
11 (c) Eligibility.--Consideration for loan repayment
12 assistance shall be as follows:
13 (1) The applicant must be an individual who:
14 (i) has completed an approved course of study;
15 (ii) has been licensed by the board as a licensed
16 practical nurse or a registered nurse;
17 (iii) is employed full time as a nurse in the
18 provision of direct patient care in a licensed health
19 care facility; and
20 (iv) is a resident of this Commonwealth.
21 (2) An applicant who is qualified under paragraph (1)
22 must agree to practice in a licensed health care facility as
23 a nurse for not less than three years.
24 (d) Amount of loan forgiveness.--
25 (1) A licensed practical nurse who is eligible under
26 subsection (c) shall be eligible to receive up to $3,000 in
27 loan repayments based on the following repayment schedule:
28 (i) Year one, 30% of the total loan amount, not to
29 exceed $900.
30 (ii) Year two, 35% of the total loan amount, not to
20010S1256B1642 - 5 -
1 exceed $1,050.
2 (ii) Year three, 35% of the total loan amount, not
3 to exceed $1,050.
4 (2) A registered nurse who is eligible under subsection
5 (c) shall be eligible to receive up to $20,000 in loan
6 repayments based on the following repayment schedule:
7 (i) Year one, 25% of the total loan amount, not to
8 exceed $5,000.
9 (ii) Year two, 25% of the total loan amount, not to
10 exceed $5,000.
11 (iii) Year three, 25% of the total loan amount, not
12 to exceed $5,000.
13 (iv) Year four, 25% of the total loan amount, not to
14 exceed $5,000.
15 (e) Administration.--
16 (1) A recipient of loan repayment assistance shall enter
17 into a contract with the agency which shall be considered a
18 contract with the Commonwealth. The contract shall include,
19 but not be limited to, the following terms and conditions:
20 (i) The applicant shall agree to practice not less
21 than three full years in a licensed health care facility
22 at a repayment assistance schedule as provided in
23 subsection (d).
24 (ii) The applicant shall agree to practice on a
25 full-time basis.
26 (iii) The nurse shall permit the agency to monitor
27 compliance with the work requirement.
28 (iv) The agency shall certify compliance with the
29 terms of the contract for purposes of receipt by the
30 nurse of loan repayment awards for years subsequent to
20010S1256B1642 - 6 -
1 the initial year of the loan.
2 (v) The contract shall be renewable on an annual
3 basis upon certification by the agency that the nurse has
4 complied with the terms of the contract.
5 (vi) Upon the recipient's death or total or
6 permanent disability, the agency shall nullify the work
7 requirement of the recipient.
8 (vii) If the board has determined that the recipient
9 has committed an act of gross negligence or has suspended
10 or revoked the license to practice, the agency shall have
11 the authority to terminate the recipient's service in the
12 program and demand repayment of the assistance rendered
13 to date.
14 (viii) Loan recipients who fail to begin or complete
15 the obligations contracted for shall reimburse to the
16 Commonwealth all amounts received under this article and
17 interest thereon as determined by the agency.
18 Falsification or misrepresentation on an application or
19 in verification of service shall be construed to be a
20 default. Determination as to the time of breach of
21 contract shall be made by the agency. Both the recipient
22 and the agency shall make every effort to resolve
23 conflicts in order to prevent a breach of contract.
24 (2) The agency shall have the authority to seek
25 garnishment of wages for the collection of damages provided
26 for in paragraph (1)(viii).
27 (3) The agency may deny loan forgiveness to a student
28 who is convicted under section 8.2 of the act of January 25,
29 1966 (1965 P.L.1546, No.541) referred to as the Higher
30 Education Scholarship Law.
20010S1256B1642 - 7 -
1 (4) Any person who knowingly or intentionally procures,
2 obtains or aids another to procure or obtain loan forgiveness
3 under this article through fraudulent means shall be
4 disqualified from participation and shall be liable to the
5 agency for an amount equal to three times the amount
6 obtained.
7 (5) The agency shall monitor and verify a student's
8 fulfillment of all requirements under this article.
9 (6) Loan repayment assistance awarded under the
10 Pennsylvania Nurse Loan Forgiveness Program shall be limited
11 to funds appropriated for that purpose. First priority for
12 awarding loan repayment assistance shall be given to renewal
13 applicants. In the event that funding is insufficient to
14 fully fund loan forgiveness for all eligible applicants, the
15 agency shall utilize a random lottery system for determining
16 which applicants receive loan forgiveness.
17 Section 3. The act is amended by adding a section to read:
18 Section 2213.1-A. Pennsylvania Nurse Scholarship Program.
19 (a) Establishment.--There is hereby established the
20 Pennsylvania Nurse Scholarship Program within the agency, to
21 consist of the Nursing Baccalaureate Degree Scholarship and the
22 Nursing Program Scholarship.
23 (b) Issuance of grants.--The agency may provide scholarship
24 grants to an eligible student who is a resident of this
25 Commonwealth upon confirmation from an approved institution of
26 higher education that the student is enrolled in an approved
27 course of study. Scholarship grants shall only be for the amount
28 set forth in sections 2213.2-A(a) and 2213.3-A(a) and shall only
29 be used for educational costs as determined by the agency.
30 (c) Other funding.--Prior to making a grant under this
20010S1256B1642 - 8 -
1 article, the agency shall first apply Federal Pell Grant and
2 State grants available for educational costs as determined by
3 the agency related to an undergraduate program prior to
4 determining the amount of the scholarship grant.
5 (d) Eligibility.--To receive a scholarship grant under this
6 article, a student shall meet all of the following requirements:
7 (1) Graduation from a high school in this Commonwealth,
8 or earned general educational development (GED) diploma or
9 the equivalent thereof.
10 (2) Maintenance of domicile in Pennsylvania during the
11 term of the scholarship grants.
12 (3) Compliance with any conditions placed on the
13 scholarship grant by the agency.
14 (4) Maintenance of satisfactory progress as established
15 by the approved institution of higher education's written
16 policies.
17 (5) Enter into a written agreement with the agency to:
18 (i) Complete an approved course of study.
19 (ii) Commence employment involving direct patient
20 care with a licensed health care facility in this
21 Commonwealth within one year after completion of an
22 approved course of study for a period of one year for
23 each academic year the student received a scholarship
24 grant under this article unless the agency determines
25 that there are extenuating circumstances.
26 (iii) Reimburse the Commonwealth all amounts
27 received under this article and interest thereon, as
28 determined by the agency, if the student fails to comply
29 with subparagraphs (i) and (ii).
30 (e) Application.--A student shall apply to the agency for a
20010S1256B1642 - 9 -
1 scholarship grant as prescribed by the agency, to include the
2 provision of all information and documentation required by the
3 agency. The application of a student under 18 years of age shall
4 include the signature of a parent or guardian.
5 (f) Work requirement.--The work requirement under subsection
6 (d)(5)(ii) shall begin after completion of the approved course
7 of study.
8 (g) Termination.--If a student terminates enrollment in the
9 approved institution of higher education during the academic
10 year or prior to completion of the approved course of study, the
11 approved institution of higher education shall notify the agency
12 in writing and shall return all unused portions of the
13 scholarship grant. Returned amounts shall be used to fund other
14 scholarship grants under this article.
15 (h) Transfer.--A scholarship under this article may only be
16 transferrable to another approved institution of higher
17 education if approved by the agency.
18 (i) Limitation.--Grants awarded under the Pennsylvania Nurse
19 Scholarship Program shall be limited to funds appropriated for
20 that purpose. First priority for awarding grants shall be given
21 to renewal applicants. In the event that funding is insufficient
22 to fully fund grant awards for all eligible applicants, the
23 agency shall utilize a random lottery system for determining
24 which applicants receive grant awards.
25 (j) Minors.--A person under 18 years of age who otherwise
26 qualifies for scholarship grants under this section shall not be
27 disqualified based upon age.
28 (k) Ineligibility.--The agency may deny a scholarship grant
29 to a student who is convicted under section 8.2 of the act of
30 January 25, 1966 (1965 P.L.1546, No.541), referred to as the
20010S1256B1642 - 10 -
1 Higher Education Scholarship Law.
2 (l) Fraud.--Any person who knowingly or intentionally
3 procures, obtains or aids another to procure or obtain a grant
4 under this article through fraudulent means shall be
5 disqualified from participation in the Pennsylvania Nurse
6 Scholarship Program and shall be liable to the agency for an
7 amount equal to three times the amount obtained.
8 Section 2213.2-A. Nursing Baccalaureate Degree Scholarship.
9 (a) Amount of grants.--The agency shall award a Nursing
10 Baccalaureate Degree Scholarship in the amount of $3,000 per
11 academic year, or a lesser amount following application of
12 Federal and State grants under section 2213.1-A(c) to a student
13 enrolled full time in an approved institution of higher
14 education pursuing a bachelor's degree in nursing. The student
15 shall take at least 12 semester hours per semester, or its
16 equivalent, in an approved course of study.
17 (b) Term of grant.--The grant shall be for a maximum of four
18 academic years.
19 Section 2213.3-A. Nursing Program Scholarship.
20 (a) Amount of grants.--The agency shall award a Nursing
21 Program Scholarship in the amount of $1,500 per academic year or
22 a lesser amount following application of Federal or State grants
23 under section 2213.1-A(c) to a student enrolled full time in an
24 approved institution of higher education pursuing an associate's
25 degree, diploma or certificate. A student who is enrolled part
26 time and is pursuing an associate's degree, diploma or
27 certificate is eligible for a grant of 50% of educational costs
28 per academic year as determined by the agency, not to exceed
29 $1,500 per academic year.
30 (b) Term of grant.--The grant shall be for a maximum of two
20010S1256B1642 - 11 -
1 academic years or for up to three academic years if the student
2 is enrolled in an approved course of study that, according to
3 the board, requires three academic years to complete. In order
4 to qualify for a grant in a third academic year, the student
5 must be in compliance with section 2213.1-A(d) and the
6 institution must determine that the student is making
7 satisfactory progress toward completing an associate's degree or
8 the requirements of the diploma or certificate program.
9 Section 2213.4-A. Administration.
10 (a) Verification.--The agency shall monitor and verify a
11 student's fulfillment of all work requirements under this
12 article.
13 (b) Enforcement.--The agency shall enforce repayment of all
14 scholarship grants for a student who does not comply with the
15 provisions of this article, to include use of all lawful
16 collection procedures and the use of private collection
17 agencies.
18 (c) Financial assistance.--Scholarship grants received by a
19 student under this article shall not be considered financial
20 assistance or appropriations to the approved institution of
21 higher education.
22 (d) Customized job training.--No funds under this article
23 shall be granted to a person enrolled in a customized job
24 training partnership program or continuing education course from
25 a postsecondary educational institution for which an employer is
26 providing over 50% of the financial support, directly or
27 indirectly, and for which the student is not being charged
28 tuition or fees.
29 Section 4. Sections 2214-A and 2231-A of the act, added
30 October 30, 2001 (P.L.828, No.83), are amended to read:
20010S1256B1642 - 12 -
1 Section 2214-A. Tax applicability.
2 Loan forgiveness repayments and scholarships received by a
3 student under this article shall not be considered taxable
4 income for purposes of Article III of the act of March 4, 1971
5 (P.L.6, No.2), known as the Tax Reform Code of 1971.
6 Section 2231-A. Annual report.
7 (a) Development of report.--The agency shall publish a
8 report by September 1, 2002, and every year thereafter for the
9 immediately preceding fiscal year. The report shall include
10 information regarding the operation of the programs established
11 under this article, including:
12 (1) The number of applications received, and the number
13 and amount of loan guarantees and loan contracts executed and
14 renewed and scholarships awarded for eligible applicants in
15 medicine, biomedicine or life sciences and under the nursing
16 loan forgiveness program and nursing scholarship program.
17 (2) The number and amount of nursing loan forgiveness
18 contracts executed and renewed for nursing school applicants.
19 (3) The number of defaulted nursing loan forgiveness
20 contracts, reported by cause.
21 (4) The number, type and amount of Nursing Baccalaureate
22 Degree Scholarships and Nursing Program Scholarships awarded.
23 (5) The number of scholarship grantees who withdraw from
24 the scholarship programs, reported by cause.
25 [(4)] (6) The number of nurses participating in the
26 nursing loan forgiveness program and full-time and part-time
27 students receiving scholarships under this article, reported
28 by type of institution attended, including four-year
29 educational institutions, community colleges, independent
30 two-year colleges, private licensed schools, hospital-based
20010S1256B1642 - 13 -
1 courses of study and certificate programs.
2 [(5)] (7) The number and type of enforcement actions
3 taken by the agency.
4 (b) Submission.--The annual report shall be submitted to the
5 Governor, the chair and minority chair of the Appropriations
6 Committee of the Senate, the chair and minority chair of the
7 Appropriations Committee of the House of Representatives, the
8 chair and minority chair of the Education Committee of the
9 Senate, the chair and minority chair of the Education Committee
10 of the House of Representatives, the chair and minority chair of
11 the Public Health and Welfare Committee of the Senate and the
12 chair and minority chair of the Health and Human Services
13 Committee of the House of Representatives.
14 Section 5. The act is amended by adding a section to read:
15 Section 2235-A. Minimum nursing data set.
16 (a) Duty of State Board of Nursing.--It shall be the duty of
17 the State Board of Nursing to collect, store and make available
18 nursing work force information regarding all of the categories
19 of nurses.
20 (b) Information.--The information to be collected as part of
21 the routine licensure renewal process on nurses shall include,
22 but not be limited to:
23 (1) Demographics, including:
24 (i) Year of birth.
25 (ii) Ethnicity, Hispanic/Latino; Native Americans;
26 Alaskan Native; Asian; Pacific Islander; African
27 American/Black, not of Hispanic origin; White, not of
28 Hispanic origin.
29 (iii) Zip code of residence.
30 (2) Basic education, including:
20010S1256B1642 - 14 -
1 (i) Program type, LPN, hospital-based, ADN, BSN and
2 MS.
3 (ii) Year graduated.
4 (iii) State in which basic program is located.
5 (3) Highest education attained, including:
6 (i) Program type, LPH, hospital-based, AA/AND,
7 BS/BSN, MS/MSN and PhD/EdD.
8 (ii) Year graduated.
9 (iii) Preparation as Advanced Nurse Practitioner,
10 Nurse Practitioner, Nurse Midwife, Clinical Nurse
11 Specialist and Nurse Anesthetist.
12 (4) Employment, including:
13 (i) Current employment.
14 (ii) Number of hours worked in typical week.
15 (iii) Setting of primary employer, hospital, long-
16 term care, ambulatory care, physician office, public
17 health, home health or other.
18 (iv) Setting of secondary employer, hospital, long-
19 term care, ambulatory care, physician office, public
20 health, home health or other.
21 (v) Type of position, staff nurse, educator,
22 management, utilization/case management, advanced
23 practice or other.
24 (vi) Zip code of primary employer.
25 (vii) Currently unemployed in nursing, student,
26 seeking nursing employment, seeking employment in other
27 health-related field; seeking employment in other field;
28 employed in other health-related field, employed in other
29 field, not seeking nursing employment; not seeking
30 employment or retired.
20010S1256B1642 - 15 -
1 (viii) Intention to remain employed in nursing, one
2 to three years; three to five years; five to ten years or
3 greater than ten years.
4 (5) Licensure, including:
5 (i) State issuing first license.
6 (ii) Year first license issued.
7 (iii) States where current licensure is held.
8 (iv) Name under which license issued or number of
9 license for each state in which nurse is licensed.
10 (c) Duty of Department of Labor and Industry.--It shall be
11 the duty of the Department of Labor and Industry, through its
12 Center for Workforce Information and Analysis, to regularly
13 analyze and publish the information collected by the State Board
14 of Nursing in combination with information obtained from
15 employers to better understand the supply and demand for nurses
16 in Pennsylvania and to assist in work force planning and
17 development.
18 Section 6. This act shall take effect in 60 days.
L19L24DMS/20010S1256B1642 - 16 -