THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HORNAMAN, STERN, BARBIN, BROWNLEE, CALTAGIRONE, COHEN, CURRY, CUTLER, DALEY, J. EVANS, FABRIZIO, FREEMAN, GALLOWAY, GEORGE, GIBBONS, HARHAI, HARKINS, JOSEPHS, KORTZ, NEUMAN, M. O'BRIEN, PAYTON, PRESTON, SAINATO AND VULAKOVICH, MAY 9, 2012

REFERRED TO COMMITTEE ON EDUCATION, MAY 9, 2012  

AN ACT

Establishing the Loan Forgiveness for Dentists Program in the

Pennsylvania Higher Education Assistance Agency; and

providing for powers and duties of the Pennsylvania Higher

Education Assistance Agency.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Loan

Forgiveness for Dentists Act.

Section 2.  Purpose.

The purpose of this act is to provide an incentive to

Pennsylvania students to pursue higher education and training in

dentistry in order to maintain the delivery of quality dentistry

in this Commonwealth.

Section 3.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Agency."  The Pennsylvania Higher Education Assistance

Agency.

"Dentist."  An individual licensed to practice dentistry

within the scope of the act of May 1, 1933 (P.L.216, No.76),

known as The Dental Law.

"Designated area."  Any of the following:

(1)  A geographic area of this Commonwealth that is

designated by the Secretary of Health as having a shortage of

dentists.

(2)  A geographic area of this Commonwealth designated by

the United States Department of Health and Human Services as

a Dental Care Health Professional Shortage Area (HPSA) or

designated to have an underserved population of dentists.

"Eligible applicant."  An individual who holds an

undergraduate degree from an institution of higher learning and

is enrolled in an accredited dental school.

"Program."  The Loan Forgiveness for Dentists Program

established by this act.

Section 4.  Program.

(a)  Establishment of program.--The Loan Forgiveness for

Dentists Program is established. The agency shall administer the

program for eligible applicants on a Statewide basis. The agency

may provide loan forgiveness as provided in subsection (b) for

recipients of loans who by contract with the agency agree to

practice dentistry in this Commonwealth upon attainment of the

required license.

(b)  Loan forgiveness.--Agency-administered, federally

insured student loans for higher education provided to an

eligible applicant may be forgiven by the agency as follows:

(1)  The agency may forgive 50% of the loan, not to

exceed $100,000, if a loan recipient enters into a contract

with the agency that requires the recipient upon successful

completion of an approved dental program and licensure as a

dentist to practice dentistry in this Commonwealth for a

period of not less than four consecutive years.

(2)  Loan forgiveness awards made pursuant to paragraph

(1) shall be forgiven over a period of four years at an

annual rate of 25% of the award and shall be made from funds

appropriated for this purpose.

(3)  The contract entered into with the agency pursuant

to paragraph (1) shall be considered a contract with the

Commonwealth and shall include the following terms:

(i)  An unlicensed recipient shall apply for a dental

license to practice in this Commonwealth at the earliest

practicable opportunity upon successfully completing a

degree in dentistry.

(ii)  Within six months after licensure, a recipient

shall engage in the practice of dentistry in this

Commonwealth according to the terms of the loan

forgiveness award.

(iii)  The recipient shall agree to practice

dentistry on a full-time basis.

(iv)  The recipient shall permit the agency to

determine compliance with the work requirement for

dentists and all other terms of the contract.

(v)  Upon the recipient's death or total or permanent

disability, the agency shall nullify the service

obligation of the recipient.

(vi)  If the recipient is convicted of or pleads

guilty or no contest to a felony or if the licensing

board has determined that the recipient has committed an

act of gross negligence in the performance of service

obligations or has suspended or revoked the license to

practice, the agency shall have the authority to

terminate the recipient's service in the program and

demand repayment of the amount of the loan as of the date

of the conviction, determination, suspension or

revocation.

(vii)  A dentist who fails to begin or complete the

obligations contracted for shall reimburse the

Commonwealth all amounts received under this act and

interest thereon as determined by the agency. Both the

dentist and the agency shall make every effort to resolve

conflicts in order to prevent a breach of contract.

(c)  Contract enforcement.--Notwithstanding 42 Pa.C.S. § 8127

(relating to personal earnings exempt from process), the agency

may seek garnishment of wages for the collection of damages

provided for in subsection (b)(3)(vii).

Section 5.  Tax applicability.

Loan forgiveness repayments received by a student shall not

be considered taxable income for purposes of Article III of the

act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code

of 1971.

Section 6.  Annual report.

(a)  Development of report.--The agency shall publish a

report by September 1, 2013, and every year thereafter, for the

immediately preceding fiscal year. The report shall include

information regarding the operation of the program, including:

(1)  The number and amount of dental loan forgiveness

contracts executed and renewed for eligible applicants.

(2)  The number of defaulted dental loan forgiveness

contracts, reported by cause.

(3)  The number of dentists participating in the program

reported by institution attended.

(4)  The number and type of enforcement actions taken by

the agency.

(b)  Submission.--The annual report shall be submitted to:

(1)  The Governor.

(2)  The chairman and minority chairman of the

Appropriations Committee of the Senate.

(3)  The chairman and minority chairman of the

Appropriations Committee of the House of Representatives.

(4)  The chairman and minority chairman of the Education

Committee of the Senate.

(5)  The chairman and minority chairman of the Education

Committee of the House of Representatives.

(6)  The chairman and minority chairman of the Public

Health and Welfare Committee of the Senate.

(7)  The chairman and minority chairman of the Health

Committee of the House of Representatives.

Section 7.  Regulations.

The agency shall adopt regulations and procedures necessary

to carry out the purposes of this act.

Section 8.  Funding.

Loan forgiveness repayments shall be made only to the extent

that funds are appropriated for that purpose and are sufficient

to cover administration of the program. The receipt of a loan

under this act shall not constitute an entitlement derived from

the Commonwealth or a claim on any funds of the Commonwealth.

Section 9.  Effective date.

This act shall take effect in 90 days.