PRINTER'S NO. 4093
No. 2718 Session of 2004
INTRODUCED BY LaGROTTA, DeWEESE, BELARDI, COY, LESCOVITZ,
GEORGE, LEDERER, STERN, ARMSTRONG, MANN, STURLA, GERGELY,
HERMAN, HENNESSEY, SAYLOR, LEVDANSKY, WALKO, McILHATTAN,
DALEY, BARRAR, CURRY, GOOD, FICHTER, MARKOSEK, TRAVAGLIO,
SANTONI, FABRIZIO, KOTIK, PISTELLA, HUTCHINSON, CORRIGAN,
LAUGHLIN, BEBKO-JONES, GOODMAN, HARHAI, CAWLEY, PETRARCA,
DeLUCA, SAINATO, COSTA, FAIRCHILD, REICHLEY, TANGRETTI,
SHANER, BOYD, J. TAYLOR, BROWNE, RUBLEY, MYERS, SOLOBAY,
CREIGHTON, B. SMITH, THOMAS, KIRKLAND, SURRA, WASHINGTON,
JOSEPHS, GRUCELA, LEACH, YOUNGBLOOD, PALLONE, CIVERA AND
HORSEY, JUNE 16, 2004
REFERRED TO COMMITTEE ON HEALTH AND HUMAN SERVICES,
JUNE 16, 2004
AN ACT
1 Establishing a nursing loan forgiveness and scholarship program.
2 TABLE OF CONTENTS
3 Chapter 1. Preliminary Provisions
4 Section 101. Short title.
5 Section 102. Purpose.
6 Section 103. Definitions.
7 Chapter 3. Pennsylvania Nurse Loan Forgiveness Program
8 Section 301. Establishment.
9 Section 302. Repayment assistance.
10 Section 303. Eligibility.
11 Section 304. Amount of loan forgiveness.
12 Section 305. Administration.
1 Chapter 5. Scholarship Program
2 Section 501. Pennsylvania Nurse Scholarship Program.
3 Section 502. Nursing Baccalaureate Degree Scholarship.
4 Section 503. Nursing Program Scholarship.
5 Section 504. Administration.
6 Chapter 49. Miscellaneous Provisions
7 Section 4901. Annual report.
8 Section 4902. Minimum nursing data set.
9 Section 4903. Appeals.
10 Section 4904. Regulations.
11 Section 4905. Funding.
12 Section 4906. Effective date.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 CHAPTER 1
16 PRELIMINARY PROVISIONS
17 Section 101. Short title.
18 This act shall be known and may be cited as the Nursing Loan
19 Forgiveness and Scholarship Act.
20 Section 102. Purpose.
21 The purpose of this act is to provide an incentive to
22 Pennsylvania students to pursue higher education and training in
23 nursing which is essential to the delivery of quality health
24 care services in this Commonwealth.
25 Section 103. Definitions.
26 The following words and phrases when used in this act shall
27 have the meanings given to them in this section unless the
28 context clearly indicates otherwise:
29 "Agency." The Pennsylvania Higher Education Assistance
30 Agency.
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1 "Approved course of study." A program or curriculum offered
2 by a postsecondary educational institution that provides
3 instruction in nursing and has been approved by the State Board
4 of Nursing.
5 "Approved educational institution." A postsecondary
6 educational institution located in this Commonwealth that is
7 authorized to provide approved courses of study and diplomas or
8 certificates approved by the Pennsylvania Higher Education
9 Assistance Agency as an institution in which students may enroll
10 to participate in the Pennsylvania Nurse Scholarship Program.
11 "Board." The State Board of Nursing.
12 "Licensed health care facility." A health care facility that
13 is enrolled in the Commonwealth's medical assistance program and
14 is licensed pursuant to the act of July 19, 1979 (P.L.130,
15 No.48), known as the Health Care Facilities Act, or Article X of
16 the act of June 13, 1967 (P.L.31, No.21), known as the Public
17 Welfare Code.
18 "Licensed practical nurse." An individual licensed under the
19 laws of this Commonwealth to practice practical nursing.
20 "Nurse." A licensed practical or registered nurse.
21 "Registered nurse." An individual licensed under the laws of
22 this Commonwealth to practice professional nursing.
23 "Student." An individual domiciled in this Commonwealth who
24 attends or is about to attend a postsecondary educational
25 institution located in this Commonwealth.
26 "Work requirement." Postgraduate, full-time employment in
27 direct patient care with a licensed health care facility located
28 in this Commonwealth in an occupation related to an approved
29 course of study under this act. The term does not include a paid
30 student internship, a paid fellowship, volunteer service or
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1 employment before graduation.
2 CHAPTER 3
3 PENNSYLVANIA NURSE LOAN FORGIVENESS PROGRAM
4 Section 301. Establishment.
5 There is hereby established in this Commonwealth the
6 Pennsylvania Nurse Loan Forgiveness Program. The Pennsylvania
7 Nurse Loan Forgiveness Program shall be for repayment of student
8 loans for nurses providing direct patient care in licensed
9 health care facilities and shall be administered by the agency.
10 Section 302. Repayment assistance.
11 The agency may provide assistance for the repayment of an
12 agency-administered student loan for education at an institution
13 of higher learning received by a nurse. Repayment assistance may
14 not be made for a loan that is in default at the time of the
15 application or for an agency-administered loan being repaid
16 through any other loan repayment assistance program. Repayment
17 shall be made by the agency to the lending institution on behalf
18 of the loan recipient.
19 Section 303. Eligibility.
20 Consideration for loan repayment assistance shall be as
21 follows:
22 (1) The applicant must be an individual who:
23 (i) has completed an approved course of study;
24 (ii) has been licensed by the board as a licensed
25 practical nurse or a registered nurse;
26 (iii) is employed full time as a nurse in the
27 provision of direct patient care in a licensed health
28 care facility; and
29 (iv) is a resident of this Commonwealth.
30 (2) An applicant who is qualified under paragraph (1)
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1 must agree to practice in a licensed health care facility as
2 a nurse for not less than three years.
3 Section 304. Amount of loan forgiveness.
4 (a) Licensed practical nurse.--A licensed practical nurse
5 who is eligible under section 303 shall be eligible to receive
6 up to $3,000 in loan repayments based on the following repayment
7 schedule:
8 (1) Year one, 30%.
9 (2) Year two, 35%.
10 (3) Year three, 35%.
11 (b) Registered nurse.--A registered nurse who is eligible
12 under section 303 shall be eligible to receive up to $20,000 in
13 loan repayments based on the following repayment schedule:
14 (1) Year one, 25%.
15 (2) Year two, 25%.
16 (3) Year three, 25%.
17 (4) Year four, 25%.
18 Section 305. Administration.
19 (a) Contracts.--A recipient of loan repayment assistance
20 shall enter into a contract with the agency which shall be
21 considered a contract with the Commonwealth. The contract shall
22 include, but not be limited to, the following terms and
23 conditions:
24 (1) The applicant shall agree to practice not less than
25 three full years in a licensed health care facility at a
26 repayment assistance schedule as provided in section 304.
27 (2) The applicant shall agree to practice on a full-time
28 basis.
29 (3) The nurse shall permit the agency to monitor
30 compliance with the work requirement.
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1 (4) The agency shall certify compliance with the terms
2 of the contract for purposes of receipt by the nurse of loan
3 repayment awards for years subsequent to the initial year of
4 the loan.
5 (5) The contract shall be renewable on an annual basis
6 upon certification by the agency that the nurse has complied
7 with the terms of the contract.
8 (6) Upon the recipient's death or total or permanent
9 disability, the agency shall nullify the work requirement of
10 the recipient.
11 (7) If the board has determined that the recipient has
12 committed an act of gross negligence or has suspended or
13 revoked the license to practice, the agency shall have the
14 authority to terminate the recipient's service in the program
15 and demand repayment of the assistance rendered to date.
16 (8) Loan recipients who fail to begin or complete the
17 obligations contracted for shall reimburse to the
18 Commonwealth all amounts received under this chapter and
19 interest thereon as determined by the agency. Falsification
20 or misrepresentation on an application or in verification of
21 service shall be construed to be a default. Determination as
22 to the time of breach of contract shall be made by the
23 agency. Both the recipient and the agency shall make every
24 effort to resolve conflicts in order to prevent a breach of
25 contract.
26 (b) Contract enforcement.--The agency shall have the
27 authority to seek garnishment of wages for the collection of
28 damages provided for in subsection (a)(8).
29 (c) Ineligibility.--The agency may deny loan forgiveness to
30 a student who is convicted under section 8.2 of the act of
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1 January 25, 1966 (1965 P.L.1546, No.541), referred to as the
2 Higher Education Scholarship Law.
3 (d) Fraud.--Any person who knowingly or intentionally
4 procures, obtains or aids another to procure or obtain loan
5 forgiveness under this chapter through fraudulent means shall be
6 disqualified from participation and shall be liable to the
7 agency for an amount equal to three times the amount obtained.
8 (e) Verification.--The agency shall monitor and verify a
9 student's fulfillment of all requirements under this chapter.
10 (f) Tax.--Loan forgiveness repayments received by a student
11 shall not be considered taxable income for purposes of Article
12 III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
13 Reform Code of 1971.
14 CHAPTER 5
15 SCHOLARSHIP PROGRAM
16 Section 501. Pennsylvania Nurse Scholarship Program.
17 (a) Establishment.--There is hereby established the
18 Pennsylvania Nurse Scholarship Program within the agency, to
19 consist of the Nursing Baccalaureate Degree Scholarship and the
20 Nursing Program Scholarship.
21 (b) Issuance of grants.--The agency may provide scholarship
22 grants to an eligible student who is a resident of this
23 Commonwealth upon confirmation from an approved educational
24 institution that the student is enrolled in an approved course
25 of study. Scholarship grants shall only be for the amount set
26 forth in sections 502(a) and 503(a) and shall only be used for
27 educational costs as determined by the agency.
28 (c) Other funding.--Prior to making a grant under this act,
29 the agency shall first apply Federal Pell Grant and State grants
30 available for educational costs related to an undergraduate
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1 program prior to determining the amount of the scholarship
2 grant.
3 (d) Eligibility.--To receive a scholarship grant under this
4 chapter, a student shall meet all of the following requirements:
5 (1) Graduation from a high school in this Commonwealth,
6 or earned general educational development (GED) diploma or
7 the equivalent thereof.
8 (2) Maintenance of domicile in Pennsylvania during the
9 term of the scholarship grants.
10 (3) Compliance with any conditions placed on the
11 scholarship grant by the agency.
12 (4) Maintenance of satisfactory progress as established
13 by the approved educational institution's written policies.
14 (5) Entrance into a written agreement with the agency
15 to:
16 (i) Complete an approved course of study.
17 (ii) Commence employment involving direct patient
18 care with a licensed health care facility in this
19 Commonwealth within one year after completion of an
20 approved course of study for a period of one year for
21 each academic year the student received a scholarship
22 grant under this chapter unless the agency determines
23 that there are extenuating circumstances.
24 (iii) Reimburse the Commonwealth all amounts
25 received under this chapter and interest thereon, as
26 determined by the agency, if the student fails to comply
27 with subparagraphs (i) and (ii).
28 (e) Application.--A student shall apply to the agency for a
29 scholarship grant as prescribed by the agency, to include the
30 provision of all information and documentation required by the
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1 agency. The application of a student under 18 years of age shall
2 include the signature of a parent or guardian.
3 (f) Work requirement.--The work requirement under subsection
4 (d)(5)(ii) shall begin after completion of the approved course
5 of study.
6 (g) Termination.--If a student terminates enrollment in the
7 approved educational institution during the academic year or
8 prior to completion of the approved course of study, the
9 approved education institution shall notify the agency in
10 writing and shall return all unused portions of the scholarship
11 grant. Returned amounts shall be used to fund other scholarship
12 grants under this chapter.
13 (h) Transfer.--A scholarship under this chapter is only
14 transferrable to another educational institution if approved by
15 the agency.
16 (i) Limitation.--Grants awarded under the Pennsylvania Nurse
17 Scholarship Program shall be limited to funds appropriated for
18 that purpose. First priority for awarding grants shall be given
19 to renewal applicants. Thereafter, grants shall be awarded on a
20 first-come, first-served basis.
21 (j) Minors.--A person under 18 years of age who otherwise
22 qualifies for scholarship grants under this section shall not be
23 disqualified based upon age.
24 (k) Ineligibility.--The agency may deny a scholarship grant
25 to a student who is convicted under section 8.2 of the act of
26 January 25, 1966 (1965 P.L.1546, No.541), referred to as the
27 Higher Education Scholarship Law.
28 (l) Fraud.--Any person who knowingly or intentionally
29 procures, obtains or aids another to procure or obtain a grant
30 under this chapter through fraudulent means shall be
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1 disqualified from participation in the Pennsylvania Nurse
2 Scholarship Program and shall be liable to the agency for an
3 amount equal to three times the amount obtained.
4 Section 502. Nursing Baccalaureate Degree Scholarship.
5 (a) Amount of grants.--The agency shall award a Nursing
6 Baccalaureate Degree Scholarship in the amount of $3,000 per
7 academic year, or a lesser amount following application of
8 Federal and State grants under section 501(c) to a student
9 enrolled full time in an approved educational institution
10 pursuing a bachelor's degree in nursing. The student shall take
11 at least 12 semester hours, or its equivalent, in an approved
12 course of study.
13 (b) Term of grant.--The grant shall be for a maximum of four
14 academic years.
15 Section 503. Nursing Program Scholarship.
16 (a) Amount of grants.--The agency shall award a Nursing
17 Program Scholarship in the amount of $1,500 per academic year or
18 a lesser amount following application of Federal or State grants
19 under section 501(c) to a student enrolled full time in an
20 approved educational institution pursuing an associate's degree,
21 diploma or certificate. A student who is enrolled part time and
22 is pursuing an associate's degree, diploma or certificate is
23 eligible for a grant of 50% of educational costs as determined
24 by the agency.
25 (b) Term of grant.--The grant shall be for a maximum of two
26 academic years or for up to three academic years if the student
27 is enrolled in an approved course of study that, according to
28 the board, requires three academic years to complete. In order
29 to qualify for a grant in a third academic year, the student
30 must be in compliance with section 501(d) and the institution
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1 must determine that the student is making satisfactory progress
2 toward completing an associate's degree or the requirements of
3 the diploma or certificate program.
4 Section 504. Administration.
5 (a) Verification.--The agency shall monitor and verify a
6 student's fulfillment of all work requirements under this
7 chapter.
8 (b) Enforcement.--The agency shall enforce repayment of all
9 scholarship grants for a student who does not comply with the
10 provisions of this chapter, to include use of all lawful
11 collection procedures and the use of private collection
12 agencies.
13 (c) Tax.--Scholarship grants received by a student under
14 this chapter shall not be considered taxable income for purposes
15 of Article III of the act of March 4, 1971 (P.L.6, No.2), known
16 as the Tax Reform Code of 1971.
17 (d) Financial assistance.--Scholarship grants received by a
18 student under this chapter shall not be considered financial
19 assistance or appropriations to the approved educational
20 institution.
21 (e) Customized job training.--No funds under this chapter
22 shall be granted to a person enrolled in a customized job
23 training partnership program or continuing education course from
24 a postsecondary educational institution for which an employer is
25 providing over 50% of the financial support, directly or
26 indirectly, and for which the student is not being charged
27 tuition or fees.
28 CHAPTER 49
29 MISCELLANEOUS PROVISIONS
30 Section 4901. Annual report.
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1 (a) Development of report.--The agency shall publish a
2 report by September 1, 2005, and every year thereafter for the
3 immediately preceding fiscal year. The report shall include
4 information regarding the operation of the programs established
5 under this act, including:
6 (1) The number of applications received for the Nursing
7 Baccalaureate Degree Scholarship, the Nursing Program
8 Scholarship and the Pennsylvania Nurse Loan Forgiveness
9 Program.
10 (2) The number, type and amount of Nursing Baccalaureate
11 Degree Scholarships and Nursing Program Scholarships awarded.
12 (3) The number and amount of nursing loan forgiveness
13 contracts executed and contracts renewed for licensed
14 practical nurses and registered nurses.
15 (4) The number of scholarship grantees who withdraw from
16 the scholarship programs, reported by cause.
17 (5) The number of defaulted loan forgiveness program
18 contracts, reported by cause.
19 (6) The number of full-time and part-time students
20 receiving scholarships, reported by type of institution
21 attending, including four-year educational institutions,
22 community colleges, independent two-year colleges, private
23 licensed schools, hospital-based courses of study and
24 certificate programs.
25 (7) The number of nurses participating in the loan
26 forgiveness program, reported by type of institution
27 attended, including four-year educational institutions,
28 community colleges, independent two-year colleges, private
29 licensed schools, hospital-based courses of study and
30 certificate programs.
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1 (8) The number and type of enforcement actions taken by
2 the agency.
3 (b) Submission.--The annual report shall be submitted to the
4 Governor, the chairman and minority chairman of the
5 Appropriations Committee of the Senate, the chairman and
6 minority chairman of the Appropriations Committee of the House
7 of Representatives, the chairman and minority chairman of the
8 Education Committee of the Senate, the chairman and minority
9 chairman of the Public Health and Welfare Committee of the
10 Senate and the chairman and minority chairman of the Health and
11 Human Services Committee of the House of Representatives.
12 Section 4902. Minimum nursing data set.
13 (a) Duty of State Board of Nursing.--It shall be the duty of
14 the State Board of Nursing to collect, store and make available
15 nursing work force information regarding all of the categories
16 of nurses.
17 (b) Information.--The information to be collected as part of
18 the routine licensure renewal process on nurses shall include,
19 but not be limited to:
20 (1) Demographics, including:
21 (i) Year of birth.
22 (ii) Ethnicity: Hispanic/Latino; Native Americans;
23 Alaska Native; Asian; Pacific Islander; African American,
24 not of Hispanic origin; White, not of Hispanic origin.
25 (iii) Zip code of residence.
26 (2) Basic education, including:
27 (i) Program type: LPN, hospital-based, ADN, BSN and
28 MS.
29 (ii) Year graduated.
30 (iii) State in which basic program is located.
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1 (3) Highest education attained, including:
2 (i) Program type: LPH, hospital-based, AA/AND,
3 BS/BSN, MS/MSN and PhD/EdD.
4 (ii) Year graduated.
5 (iii) Preparation as advanced nurse practitioner,
6 nurse practitioner, nurse-midwife, clinical nurse
7 specialist and nurse anesthetist.
8 (4) Employment, including:
9 (i) Current employment.
10 (ii) Number of hours worked in typical week.
11 (iii) Setting of primary employer: hospital, long-
12 term care, ambulatory care, physician office, public
13 health, home health care or other.
14 (iv) Setting of secondary employer: hospital, long-
15 term care, ambulatory care, physician office, public
16 health care, home health care or other.
17 (v) Type of position: staff nurse, educator,
18 management, utilization/case management, advanced
19 practice or other.
20 (vi) Zip code of primary employer.
21 (vii) Currently unemployed in nursing: student;
22 seeking nursing employment; seeking employment in other
23 health-related field; seeking employment in other field;
24 employed in other health-related field; employed in other
25 field; not seeking nursing employment; not seeking
26 employment or retired.
27 (viii) Intention to remain employed in nursing, one
28 to three years; three to five years; five to ten years or
29 greater than ten years.
30 (5) Licensure, including:
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1 (i) State issuing first license.
2 (ii) Year first license issued.
3 (iii) States where current licensure is held.
4 (iv) Name under which license issued or number of
5 license for each state in which nurse is licensed.
6 (c) Duty of Department of Labor and Industry.--It shall be
7 the duty of the Department of Labor and Industry, through its
8 Center for Workforce Information and Analysis, to regularly
9 analyze and publish the information collected by the board in
10 combination with information obtained from employers to better
11 understand the supply and demand for nurses in this Commonwealth
12 and to assist in work force planning and development.
13 Section 4903. Appeals.
14 The provisions of this act shall be subject to 22 Pa. Code
15 Ch. 121 (relating to student financial aid).
16 Section 4904. Regulations.
17 The agency shall adopt regulations and procedures necessary
18 to carry out the purposes of this act.
19 Section 4905. Funding.
20 Loan forgiveness repayments and scholarship awards shall be
21 made to the extent that funds are appropriated by the General
22 Assembly for this act.
23 Section 4906. Effective date.
24 This act shall take effect in 90 days.
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