PRINTER'S NO. 266
No. 262 Session of 2005
INTRODUCED BY ROBBINS, D. WHITE, RHOADES, COSTA, MUSTO,
THOMPSON, WENGER, KITCHEN, LEMMOND, PUNT, O'PAKE, TOMLINSON,
ARMSTRONG, KASUNIC, EARLL, ORIE, LAVALLE, PILEGGI, GREENLEAF,
STACK, RAFFERTY, GORDNER, WOZNIAK, WONDERLING, MADIGAN,
BOSCOLA, ERICKSON, STOUT AND LOGAN, FEBRUARY 14, 2005
REFERRED TO EDUCATION, FEBRUARY 14, 2005
AN ACT
1 Amending Title 51 (Military Affairs) of the Pennsylvania
2 Consolidated Statutes, providing for the establishment of a
3 nursing loan forgiveness program for persons employed in the
4 nursing profession at veterans' homes operated by the
5 Department of Military and Veterans Affairs.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Title 51 of the Pennsylvania Consolidated
9 Statutes is amended by adding a chapter to read:
10 CHAPTER 90
11 STATE VETERANS' HOME NURSING LOAN FORGIVENESS PROGRAM
12 Sec.
13 9001. Purpose.
14 9002. Definitions.
15 9003. Loan forgiveness.
16 9004. Administration.
17 9005. Recoupment of loan forgiveness.
18 9006. Regulations.
1 9007. Annual report.
2 9008. Funding and administrative costs.
3 § 9001. Purpose.
4 The purpose of this chapter is to provide an incentive for
5 nurses to serve veterans through full-time employment at State
6 veterans' homes.
7 § 9002. Definitions.
8 The following words and phrases when used in this chapter
9 shall have the meanings given to them in this section unless the
10 context indicates otherwise:
11 "Agency." The Pennsylvania Higher Education Assistance
12 Agency.
13 "Approved nursing curriculum." A qualifying program at an
14 accredited educational institution approved by the Pennsylvania
15 Higher Education Assistance Agency and located in this
16 Commonwealth leading to the awarding of a degree, diploma or
17 certification as a registered nurse or a licensed practical
18 nurse as defined in the act of act of May 22, 1951 (P.L.317,
19 No.69), known as The Professional Nursing Law, or the act of
20 March 2, 1956 (1955 P.L.1211, No.376), known as the Practical
21 Nurse Law, respectively.
22 "Loan." A Pennsylvania Higher Education Assistance Agency-
23 guaranteed Stafford or consolidation loan on which the borrower
24 has a current outstanding balance.
25 "Qualified applicant." An individual who meets all of the
26 criteria outlined in section 9004 (relating to administration).
27 "Renewal applicant." A qualified applicant who has received
28 after the effective date of this chapter an award under the
29 State Veterans' Home Nursing Loan Forgiveness Program in the
30 last program year in which money was appropriated for the
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1 program.
2 "State veterans' homes." The Hollidaysburg Veterans Home,
3 Hollidaysburg, the Pennsylvania Soldiers' and Sailors' Home,
4 Erie, the Southeastern Veterans Center, Spring City, the Gino J.
5 Merli (Northeastern) Veterans Center, Scranton, the Southwestern
6 Veterans Center, Pittsburgh, the Delaware Valley Veterans Home,
7 Philadelphia, and such other long-term care facilities hereafter
8 established to be administered by the Department of Military and
9 Veterans Affairs to care for eligible Pennsylvania veterans.
10 § 9003. Loan forgiveness.
11 (a) Establishment.--There is hereby established in this
12 Commonwealth the State Veterans' Home Nursing Loan Forgiveness
13 Program. The program shall be for the repayment of student loans
14 for qualified applicants employed in State veterans' homes.
15 Repayment of the loan shall be made by the agency to the lending
16 institution on behalf of the loan recipient.
17 (b) General rule.--The agency shall provide loan forgiveness
18 to qualified applicants from the funds appropriated specifically
19 for the purposes of this chapter in amounts to be determined by
20 the agency.
21 (c) Maximum loan forgiveness.--The maximum amount of loan
22 forgiveness under this chapter shall not exceed the average
23 undergraduate Stafford loan indebtedness of the State System of
24 Higher Education graduates based on the Stafford loans
25 guaranteed by the agency for the fiscal year immediately
26 preceding the program year rounded to the nearest $100. The
27 maximum amount of loan forgiveness shall be adjusted annually
28 for all recipients. The annual loan forgiveness payment shall
29 not exceed 20% of the maximum amount of loan forgiveness and
30 shall be paid for up to five years.
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1 (d) Priority apportionment.--Loan forgiveness payments may
2 be made to the extent that funds are appropriated by the General
3 Assembly. In the event that funding is insufficient to fully
4 fund loan forgiveness payments to all qualified applicants,
5 preference shall be given to renewal applicants. To every extent
6 possible, loan forgiveness payments to renewal applicants shall
7 not be less than payments made to such applicants in the
8 preceding year. Loan forgiveness payments to qualified
9 applicants who are not renewal applicants may be prorated based
10 on the resources available and the number of qualified
11 applicants who are not renewal applicants.
12 (e) Purpose.--Loan forgiveness under this program shall be
13 used only for approved nursing curricula completed up to five
14 years prior to the application for the loan forgiveness program.
15 The qualified applicant must have borrowed through and have a
16 current outstanding balance with the agency-guaranteed Stafford
17 or consolidation loan programs and must demonstrate to the
18 satisfaction of the agency that the loan for which forgiveness
19 is sought is an educational loan used to pay for an approved
20 nursing curriculum.
21 § 9004. Administration.
22 (a) Eligibility.--An individual must meet the following
23 eligibility requirements to be classified as a qualified
24 applicant to apply to the agency for loan forgiveness:
25 (1) The individual is employed by a State veterans' home
26 as a licensed practical nurse or registered nurse and was
27 hired after the effective date of this chapter.
28 (2) The individual has successfully completed an
29 approved nursing curriculum.
30 (3) The individual must have passed or must pass the
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1 Pennsylvania licensure examination for a license to work as a
2 licensed practical nurse or registered nurse within one year
3 of completing an approved nursing curriculum.
4 (b) Contract.--A qualified applicant who is approved by the
5 agency for loan forgiveness shall enter into a contract with the
6 agency, which shall be considered a contract with the
7 Commonwealth. The contract shall include, but not be limited to,
8 the following terms and conditions:
9 (1) The applicant shall agree to work at a State
10 veterans' home for a period of five consecutive years after
11 commencing employment at a State veterans' home. This
12 requirement does not preclude the individual from
13 transferring to another State veterans' home in Pennsylvania
14 to honor this commitment.
15 (2) The applicant shall agree to practice on a full-time
16 basis.
17 (3) The applicant shall permit the agency to monitor
18 compliance with the work requirement.
19 (4) The agency shall certify compliance with the terms
20 of the contract for purposes of receipt by the nurse of loan
21 repayment awards for years subsequent to the initial year of
22 the loan.
23 (5) The contract shall be renewable on an annual basis
24 upon certification by the agency that the renewal applicant
25 has complied with the terms of the contract.
26 § 9005. Recoupment of loan forgiveness.
27 (a) Recoupment.--An individual recipient of loan forgiveness
28 under this chapter who fails to meet the requirements for
29 participation in the program or to fulfill his employment
30 obligation is liable to the Commonwealth for the repayment of
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1 the loan forgiveness. The department shall notify the agency if
2 a loan forgiveness recipient fails to comply with the
3 requirements of this chapter, and the agency shall take action
4 to recoup the payments described in the promissory note on a
5 schedule the agency may determine.
6 (b) Forgiveness of recoupment.--The department may advise
7 the agency to forgive recoupment of all or part of the
8 recipient's loan forgiveness if, following administrative
9 proceedings, the department, in its sole discretion, determines
10 that failure to complete the employment obligation should be
11 forgiven. Forgiveness shall be granted in the case of the death
12 of the recipient.
13 § 9006. Regulations.
14 The agency may promulgate regulations in consultation with
15 the department to carry out the provisions of this chapter.
16 § 9007. Annual report.
17 (a) Development of report.--The agency shall publish a
18 report by September 1, 2005, and every year thereafter. The
19 report shall include information regarding the operation of the
20 program established under this chapter, including:
21 (1) The number of applications received for the State
22 Veterans' Home Nursing Loan Forgiveness Program.
23 (2) The number of program contracts executed and
24 contracts renewed for licensed practical nurses and
25 registered nurses.
26 (3) The number of defaulted loan forgiveness contracts.
27 (b) Submission.--The annual report shall be submitted to the
28 Governor, the chairman and minority chairman of the
29 Appropriations Committee of the Senate, the chairman and
30 minority chairman of the Appropriations Committee of the House
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1 of Representatives, the chairman and minority chairman of the
2 Veterans Affairs and Emergency Preparedness Committee of the
3 Senate and the chairman and minority chairman of the Veterans
4 Affairs and Emergency Preparedness Committee of the House of
5 Representatives.
6 § 9008. Funding and administrative costs.
7 The General Assembly shall appropriate funds for loan
8 forgiveness paid under this chapter.
9 Section 2. This act shall take effect July 1, 2004, or
10 immediately, whichever is later.
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