1Amending Title 51 (Military Affairs) of the Pennsylvania
2Consolidated Statutes, providing for retention incentives for
3medical resident physicians of the Pennsylvania National
4Guard; conferring powers and duties on the Adjutant General
5and Department of Military and Veterans Affairs; and making
6editorial changes.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. The heading of Chapter 32 of Title 51 of the
10Pennsylvania Consolidated Statutes is amended and the chapter is
11amended by adding a subchapter heading to read:

12CHAPTER 32

13[EDUCATIONAL ASSISTANCE PROGRAM]

14MILITARY EDUCATIONAL PROGRAMS

15SUBCHAPTER A

16EDUCATIONAL ASSISTANCE PROGRAM

17Section 2. The introductory paragraph and definitions of
<-18"department," "fund" "department" and "program" in section 3201

1of Title 51 are amended to read:

2§ 3201. Definitions.

3The following words and phrases when used in this [chapter]
4subchapter shall have the meanings given to them in this section
5unless the context clearly indicates otherwise:

6* * *

7["Department." The Department of Military and Veterans
8Affairs of the Commonwealth.]

9* * *

<-10["Fund." The Educational Assistance Program Fund.]

11* * *

12"Program." The Educational Assistance Program established in
13this [chapter] subchapter.

14* * *

<-15Section 3. Title 51 is amended by adding a section to read:

16§ 3201.1. Establishment of program.

17The Educational Assistance Program is established within the
18agency to provide public service educational grants to eligible
19Pennsylvania National Guard members in accordance with the
20provisions of this subchapter.

21Section <-4 3. Sections 3202(a) and (c), 3204(a), 3205(a),
22(b), (b.1) and (c), 3206(a)(1) and (b)(1) and 3207(a) of Title
2351 are amended to read:

24§ 3202. Eligibility.

25(a) General rule.--A Pennsylvania National Guard member is
26eligible to receive a public service educational grant under
27this [chapter] subchapter if the member meets all of the
28following eligibility criteria:

29(1) The member is a qualified resident of this
30Commonwealth.

1(2) Except as otherwise provided in subsection (c) and
2section 3206(b)(relating to limitations), the member is a
3member in good standing and has been a satisfactory
4participant in Pennsylvania National Guard activities for a
5minimum service period established by the Adjutant General.

6(3) The member has enrolled as a student in an approved
7program of education at an approved institution of higher
8learning.

9* * *

10(c) Discharge for disability incurred in the line of duty.--
11A Pennsylvania National Guard member who is discharged for
12medical disability after September 11, 2001, shall remain
13eligible to receive a public service educational grant under
14this [chapter] subchapter if the member meets all of the
15following eligibility criteria:

16(1) The medical disability was incurred in the line of
17duty and was not the result of misconduct.

18(2) The medical condition giving rise to the discharge
19did not exist prior to the member entering service in the
20Pennsylvania National Guard.

21(3) The medical disability was incurred while performing
22authorized military duty other than basic training, advanced
23individual training or other equivalent initial training.

24(4) The former member received an honorable discharge
25for medical reasons.

26(5) The former member had accepted an obligation to
27serve in the Pennsylvania National Guard for a minimum period
28of service established by the Adjutant General and was
29qualified to have fulfilled such service obligation but for
30the medical disability that resulted in discharge.

1(6) The former member commences a full-time or part-time
2course of study within two years of medical discharge or
3within two years of the effective date of this subsection,
4such course of study having a completion date of not more
5than six years following the date of medical discharge for
6members discharged for medical disability on or after the
7effective date of this subsection or of not more than six
8years following the effective date of this subsection for
9members discharged for a medical disability after September
1011, 2001, and before the effective date of this subsection.
11The Adjutant General may for good cause extend these
12deadlines when the former member's disability is shown to
13require additional time for the former member to commence or
14complete a course of study.

15(7) The former member meets all eligibility criteria
16specified in subsections (a) and (b) except membership in the
17Pennsylvania National Guard.

18§ 3204. Grants.

19(a) General rule.--From the funds appropriated
20[specifically] for the purposes of this [chapter] subchapter,
21grants shall be provided to eligible members for the purpose of
22pursuing approved programs of education.

23* * *

24§ 3205. Amount of grants.

25(a) Full-time student assistance grants.--Grants awarded
26under this [chapter] subchapter to full-time students shall be
27determined by the agency without regard to financial need and
28shall not exceed for each academic year the lesser of:

29(1) the tuition of the approved institution of higher
30learning for the approved program of education in which the

1member is enrolled; or

2(2) the tuition charged to a resident of this
3Commonwealth at a member institution of the State System of
4Higher Education for the same academic year.

5(b) Part-time student assistance grants.--Grants awarded
6under this [chapter] subchapter to part-time students who do not
7possess a baccalaureate degree shall be determined by the agency
8without regard to financial need and shall not exceed for each
9academic year or period the lesser of:

10(1) the tuition for the part-time course of study in
11which the member is enrolled; or

12(2) two-thirds of the tuition charged to a resident of
13the Commonwealth at a member institution of the State System
14of Higher Education for the same academic year or period.

15(b.1) Part-time student assistance grants for students
16possessing baccalaureate degrees.--Grants awarded under this
17[chapter] subchapter to part-time students who possess a
18baccalaureate degree shall be determined by the agency without
19regard to financial need and shall not exceed for each academic
20year or period the lesser of:

21(1) one-half of the tuition for the part-time course of
22study in which the member is enrolled; or

23(2) one-third of the tuition charged to a resident of
24this Commonwealth at a member institution of the State System
25of Higher Education for the same academic year or period.

26(c) Other grants.--The agency shall not reduce the amount of
27other agency grants or aid for which the eligible member
28qualifies on account of the member's eligibility for or receipt
29of grants under this [chapter] subchapter.

30* * *

1§ 3206. Limitations.

2(a) Time.--

3(1) Except as otherwise provided in paragraph (2), no
4member shall be eligible for full-time or part-time student
5assistance grants or a combination thereof under this
6[chapter] subchapter for a total of more than five academic
7years or their equivalent as determined by the agency.

8* * *

9(b) Active duty.--

10(1) Except as otherwise provided in paragraph (2) or
11(3), no grant payments shall be made under this [chapter]
12subchapter except during the eligible member's term of
13service as a member in good standing of the Pennsylvania
14National Guard.

15* * *

16§ 3207. Recoupment of grant payments.

17(a) General rule.--An eligible member who fails to meet the
18requirements of this [chapter] subchapter as a result of
19participation in this program or to meet other requirements
20established by the Adjutant General or the agency is liable to
21the Commonwealth for repayment of all grant payments made. The
22Adjutant General shall notify the agency if an eligible member
23fails to complete the service obligation, and the promissory
24note under section 3204(b) (relating to grants) shall be payment
25in full upon demand by the agency on a schedule as the agency
26may determine.

27* * *

<-28Section 5. Sections 3208, 3209 and 3210 of Title 51 are
29repealed:

30[§ 3208. Regulations.

1The Adjutant General and the agency may promulgate
2regulations to carry out the provisions of this chapter.

3§ 3209. Administration.

4The General Assembly shall appropriate funds to pay full-time
5and part-time student assistance grants under this chapter. A
6portion of the funds appropriated may be used to pay the costs
7of the administration of this chapter. Administrative costs for
8the 1996-1997 fiscal year shall not exceed 5% of the total
9amount of funds appropriated. Administrative costs in subsequent
10years shall not exceed 4% of the total amount of funds
11appropriated and shall be based on the processing fee for the
12total number of applications.

13§ 3210. Educational Assistance Program Fund.

14All moneys appropriated for the purposes of this chapter and
15all investment income earned on those moneys shall be deposited
16in the Educational Assistance Program Fund, which is hereby
17established as a special nonlapsing fund in the State Treasury.
18All moneys placed in the fund and the investment income it
19accrues are hereby appropriated on a continuing basis to the
20Department of Military and Veterans Affairs and shall be used
21solely for the purposes of the program.]

22Section <-6 4. Chapter 32 of Title 51 is amended by adding
23subchapters to read:

24SUBCHAPTER B

25MILITARY PHYSICIAN INCENTIVE PROGRAM

26Sec.

273211. Definitions.

283212. Establishment of program.

293213. Military resident physician stipend.

303214. Additional military physician incentives.

13215. Promissory note.

23216. Recoupment of incentive payments.

33217. Adjustment of stipend amounts.

4§ 3211. Definitions.

5The following words and phrases when used in this subchapter
6shall have the meanings given to them in this section unless the
7context clearly indicates otherwise:

8"Adjutant General." The Adjutant General of the
9Commonwealth.

10"Member in good standing." A member of the Pennsylvania
11National Guard who meets all medical, training, physical and
12educational requirements for service and who is a satisfactory
13participant in all scheduled duties and training periods.

14"Military physician." A licensed medical doctor or doctor of
15osteopathy who is <-a an officer who is a member in good standing
16of the Pennsylvania National Guard assigned to and serving in an
17authorized Army Medical Corps or Air Force Medical Corps
18position.

19"Military resident physician." An officer who is a member in
20good standing of the Pennsylvania National Guard, is a graduate
21of an accredited school of medicine and is a holder of a medical
22license and enrolled in an accredited medical residency program.

23"Program." The Military Physician Incentive Program
24established in this subchapter.

25§ 3212. Establishment of program.

26The Military Physician Incentive Program is established
27within the department to provide educational stipends to
28eligible <-Pennsylvania National Guard members military resident
29physicians in accordance with the provisions of this subchapter.

30§ 3213. Military resident physician stipend.

1(a) General rule.--A military resident physician is eligible
2to receive a stipend of $15,000 per year for up to four years of
3medical residency if the member meets all of the eligibility
4requirements under subsection (b).

5(b) Requirements.--In order to qualify for the military
6resident physician stipend, a military resident physician must
7meet all of the following:

8(1) Be assigned to an appropriate medical position in
9the Pennsylvania National Guard.

10(2) Agree to serve as a military physician in the
11Pennsylvania National Guard after completion of residency for
12one year for each annual stipend received. This service
13obligation shall be concurrent with any other military
14service obligation of the applicant.

15(c) Receipt of stipend.--Stipends will be paid to an
16eligible military resident physician whose application for the
17stipend is approved at the completion of each year of residency.

18(d) Adjustments.--If the Adjutant General determines that
19the amount available for the program in any year will be
20insufficient to provide stipends in the amount described in this
21section to all applicants, he may place a cap on the number of
22military resident physicians eligible to receive stipends or may
23adjust the amount of the annual stipend.

24§ 3214. Additional military physician incentives.

25To the extent that funds are appropriated and available, the
26Adjutant General may, by military regulation, establish
27additional incentives to aid in the recruitment and retention of
28military physicians in the Pennsylvania National Guard, provided
29that payment of such additional incentives shall not result in a
30cap on participation or reduction in the amount of stipends paid

1under section 3213 (relating to military resident physician
2stipend).

3§ 3215. Promissory note.

4Any recipient of a stipend or other incentive payment under
5this subchapter shall sign, as part of the application for the
6incentive payment, a promissory note in a form prescribed by the
7Adjutant General by which the recipient promises to repay all
8amounts received if the recipient fails to complete the service
9obligation required by this subchapter or to meet other
10requirements established by the Adjutant General.

11§ 3216. Recoupment of incentive payments.

12(a) General rule.--A recipient of a stipend or other
13incentive payment under this subchapter who fails to complete
14his service obligation or to meet other requirements established
15by the Adjutant General is liable to the Commonwealth for
16repayment of all incentive payments made. The Adjutant General
17shall notify the department if the recipient fails to complete
18the service obligation, and the promissory note under section
193215 (relating to promissory note) shall be called to secure
20payment in full upon demand on a schedule as the department may
21determine.

22(b) Forgiveness of recoupment.-- The Adjutant General may
23forgive recoupment of all or part of a recipient's stipend or
24other incentive payment if the Adjutant General determines that
25his failure to fulfill the service obligation was the result of
26his death, discharge because of disability incurred in line of
27duty, discharge because of a medical determination that he is
28medically unfit for duty when the medical condition is outside
29his control and is not due to his misconduct, mandatory
30discharge, release or retirement for age or years of service, or

1discharge, release, transfer or retirement because of other
2compelling circumstances outside his control.

3§ 3217. Adjustment of stipend amounts.

4Beginning on January 1, 2016, and every two years thereafter,
5the Adjutant General may adjust, by notice published in the
6Pennsylvania Bulletin, the amounts of the stipends set forth in
7this subchapter by an amount equal to the change in the
8applicable Consumer Price Index in the preceding two years
9provided that the Adjutant General finds sufficient funds are
10appropriated and available to pay for the adjusted stipends.

11SUBCHAPTER C

12MISCELLANEOUS PROVISIONS

13Sec.

143221. Regulations.

153222. Administration.

<-163223. Military Educational Programs Fund.

17§ 3221. Regulations.

18The Adjutant General <-may shall promulgate regulations to
19carry out the provisions of this chapter.

20§ 3222. Administration.

21The General Assembly <-shall may appropriate funds to pay for
22grants under <-Subchapters A (relating to Educational Assistance
23Program) and <-Subchapter B (relating to Military Physician
24Incentive Program). <-A portion of the funds appropriated may be
25used to pay the costs of the administration of this chapter.
26Administrative costs in a fiscal year shall not exceed 4% of the
27total amount of funds appropriated and shall be based on the
28processing fee for the total number of applications.

29§ 3223. Military Educational Programs Fund.

30All moneys appropriated for the purposes of Subchapters A

1(relating to Educational Assistance Program) and B (relating to
2Military Physician Incentive Program) and all investment income
3earned on those moneys shall be deposited in the Military
4Educational Programs Fund, which is established as a special
5nonlapsing fund in the State Treasury. All moneys placed in the
6fund and the investment income it accrues are appropriated on a
7continuing basis to the department and shall be used solely for
8the purposes of the programs.

9Section 7 5. This act shall take effect July 1, <-2013 2014,
10or immediately, whichever is later.