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PRINTER'S NO. 4126
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2685
Session of
2020
INTRODUCED BY BOBACK, MADDEN, MILLARD, POLINCHOCK, MURT,
YOUNGBLOOD, HANBIDGE, DELLOSO, PASHINSKI, PYLE, CIRESI,
SCHWEYER, READSHAW, HILL-EVANS, DeLUCA AND DONATUCCI,
JULY 14, 2020
REFERRED TO COMMITTEE ON EDUCATION, JULY 14, 2020
AN ACT
Providing for the Student Loan Forgiveness for Nurses Program
and imposing duties on 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 Student Loan
Forgiveness for Nurses Act.
Section 2. Declaration of purpose.
The General Assembly declares that the purpose of this act is
to provide an incentive for individuals to pursue higher
education and training in nursing 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
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Agency.
"Award recipient." An eligible individual who receives
student loan forgiveness under the program.
"Eligible individual." An individual who meets all of the
criteria under section 4(c).
"Program." Student Loan Forgiveness for Nurses Program
established under section 4(a).
"Qualified health care facility." Any of the following
facilities:
(1) Assisted living facilities.
(2) Personal care homes.
(3) Long-term care nursing facilities.
(4) Home care agencies.
(5) Home health agencies.
(6) Hospice agencies.
(7) Hospitals.
Section 4. Student Loan Forgiveness for Nurses Program.
(a) Establishment.--The Student Loan Forgiveness for Nurses
Program is established within the agency.
(b) Administration.--The agency shall administer the program
for the purpose of providing student loan forgiveness for
eligible individuals who enter into an agreement with the agency
as provided under subsection (d).
(c) Qualifications.--To qualify for the program, an
applicant must meet all of the following criteria:
(1) Be employed as a registered nurse, certified
registered nurse practitioner or clinical nurse specialist.
(2) Be a resident of this Commonwealth.
(3) Hold an undergraduate academic degree or graduate
level academic degree from an accredited college or
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university.
(4) Have been hired as a full-time employee of a
qualified health care facility in this Commonwealth.
(5) Have successfully completed the first six months of
full-time employment as an employee of a qualified health
care facility in this Commonwealth.
(d) Loan forgiveness.--The agency shall forgive 50% of an
eligible individual's student loans, not to exceed $100,000, if
the eligible individual enters into an agreement with the agency
to remain employed at a qualified health care facility in this
Commonwealth for a period of three years.
(e) Agreement provisions.--The agreement under subsection
(d) shall include the following terms:
(1) The award recipient shall agree to be employed at a
qualified health care facility in this Commonwealth for a
period of no less than three years.
(2) The award recipient shall permit the agency to
determine compliance with the work requirement and all other
terms of the contract.
(3) Upon the award recipient's death or total or
permanent disability, the agency shall not be required to
provide student loan forgiveness under the program.
(4) The agency may terminate student loan forgiveness
and demand repayment of the amount of student loans forgiven
if:
(i) the award recipient is convicted of or pleads
guilty or no contest to a felony; or
(ii) the State Board of Nursing has determined that
the award recipient has committed an act of gross
negligence in the practice of nursing or has suspended or
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revoked the award recipient's license to practice.
(5) An award recipient who fails to begin or complete
the obligations contracted for shall pay to the agency the
amount of the loan received under the terms of the contract.
Providing false information or misrepresentation on an
application or verification of service shall be deemed a
default. Determination as to the time of the default shall be
made by the agency. The award recipient and the agency shall
make every effort to resolve conflicts in order to prevent a
breach of the agreement.
(f) Agreement enforcement.--Notwithstanding 42 Pa.C.S. ยง
8127 (relating to personal earnings exempt from process), the
agency may seek garnishment of wages of an award recipient who
fails to comply with the agreement under subsection (d) for the
amount of student loan forgiveness provided to the award
recipient.
Section 5. Tax applicability.
Student loan forgiveness received under this act 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.--By September 1, 2021, and each
September 1 thereafter, the agency shall compile a report
regarding the operation of the program for the immediately
preceding fiscal year. The report shall include the following
information:
(1) The number and amount of student loan forgiveness
agreements executed and renewed for eligible individuals.
(2) The number of defaulted student loan forgiveness
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agreements and the cause for the defaults.
(3) The number of eligible individuals participating in
the program.
(4) The number and type of enforcement actions taken by
the agency regarding the implementation of the program.
(b) Submission.--The agency shall submit the report under
subsection (a) to the following individuals:
(1) The Governor.
(2) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(3) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(4) The chairperson and minority chairperson of the
Education Committee of the Senate.
(5) The chairperson and minority chairperson of the
Education Committee of the House of Representatives.
(6) The chairperson and minority chairperson of the
Health and Human Services Committee of the Senate.
Section 7. Funding.
Student loan forgiveness payments under this act shall be
made only to the extent that funds are appropriated for the
program and are sufficient to cover administration of the
program. Student loan forgiveness under this act shall not
constitute an entitlement derived from the Commonwealth or a
claim on any funds of the Commonwealth.
Section 8. Regulations.
The agency shall promulgate regulations necessary to
administer this act.
Section 9. Effective date.
This act shall take effect in 90 days.
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