Regular Session 2021-2022 House Bill 0226 P.N. 0190

PRINTER'S NO. 190

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

226

Session of

2021

INTRODUCED BY KOSIEROWSKI, ZABEL, SANCHEZ, HILL-EVANS,

SCHLOSSBERG, KINSEY, HOWARD, SHUSTERMAN, GALLOWAY,

HOHENSTEIN, PASHINSKI, DRISCOLL, DeLUCA, ISAACSON, FREEMAN,

CIRESI, SCHWEYER AND WARREN, JANUARY 25, 2021

REFERRED TO COMMITTEE ON EDUCATION, JANUARY 25, 2021

AN ACT

Establishing the Nurse and Health Care Worker Loan Forgiveness

Program and providing for the 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 Nurse and

Health Care Worker Loan Forgiveness Program Act.

Section 2. 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.

"Program." The Nurse and Health Care Worker Loan Forgiveness

Program established under section 3.

"Qualified applicant." An individual who meets all of the

criteria under section 3(b)(1) and one of the criteria under

section 3(b)(2).

"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.

"Recipient." A qualified applicant who is selected for the

program and who enters into a contract with the Commonwealth

under the program.

Section 3. Nurse and Health Care Worker Loan Forgiveness

Program.

(a) Establishment.--The Nurse and Health Care Worker Loan

Forgiveness Program is established within the agency.

(b) Qualifications.--The following shall apply:

(1) To qualify for the program, an applicant must meet

all of the following criteria:

(i) Be a resident of this Commonwealth.

(ii) Have successfully completed a two-year or four-

year academic degree or diploma or graduate level

academic degree or diploma at an accredited college or

university.

(iii) Have been hired as a full-time employee of a

qualified health care facility in this Commonwealth.

(iv) Have successfully completed the first six

months of full-time employment as an employee of a

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qualified health care facility in this Commonwealth.

(v) Have borrowed through and has a current

outstanding balance with guaranteed Stafford or

consolidation loan programs administered by the agency.

(2) An applicant must also meet one of the following

criteria:

(i) Be employed as a certified nurse assistant,

licensed practical nurse, direct care staffer, personal

care home administrator or assisted living residence

administrator.

(ii) Be employed as a registered nurse.

(iii) Be employed as a certified registered nurse

practitioner or clinical nurse specialist.

(1) A qualified applicant who is selected for the

program in accordance with this act shall be eligible for

payment by the agency of a portion of the debt incurred by

the qualified applicant through the agency-administered

guaranteed Stafford or consolidation loan programs if the

recipient enters into a contract with the agency that

requires the recipient to remain employed at a qualified

health care facility in this Commonwealth for two years for

an applicant who qualifies under subsection (b)(2)(i) or for

four years for an applicant who qualifies under subsection

(b)(2)(ii) or (iii).

(2) The agency may forgive a proportional part of the

recipient's loan so that the loan may be forgiven as follows:

(i) Not more than $5,000 shall be forgiven in any

year and not more than $10,000 shall be forgiven for any

applicant who qualifies under subsection (b)(2)(i).

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(ii) Not more than $10,000 shall be forgiven in any

year and not more than $40,000 shall be forgiven for any

applicant who qualifies under subsection (b)(2)(ii).

(iii) Not more than $15,000 shall be forgiven in any

year and not more than $60,000 shall be forgiven for any

applicant who qualifies under subsection (b)(2)(iii).

(3) An applicant may only receive loan forgiveness under

paragraph (2).

(4) Payments shall be made in accordance with the

procedures established by the agency.

(5) The contract entered into with the agency under

paragraph (1) shall be considered a contract with the

Commonwealth and shall include the following terms:

(i) The recipient shall agree to be employed at a

qualified health facility for a period of no less than

two years for recipients qualifying under subsection (b)

(2)(i) and for no less than four years for recipients

qualifying under subsection (b)(2)(ii) or (iii).

(ii) The recipient shall permit the agency to

determine compliance with the work requirement and all

other terms of the contract.

(iii) Upon the recipient's death or total and

permanent disability, the agency shall nullify the

service obligation of the recipient.

(iv) If the recipient is convicted of or pleads

guilty or no contest to a felony, 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.

(v) A recipient who fails to begin or complete the

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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.

(d) Limitation.--A loan forgiveness award under this act

shall not be made for a loan that is in default at the time of

application. Loan forgiveness provided under this section shall

not be concurrently awarded to a recipient of another

Commonwealth provided loan forgiveness program.

Section 4. Tax applicability.

Loan forgiveness repayments under the program shall not be

considered taxable income for the purposes of Article II of the

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

of 1971.

Section 5. Annual report.

(a) General rule.--The agency shall publish a report by

October 1, 2022, and each 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 contracts executed and

renewed for qualified applicants.

(2) The number of defaulted contracts, reported by

cause.

(3) The number of full-time staff participating in the

program, reported by position title, level of education and

type of health care facility in which the recipient is

employed.

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

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the agency.

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

following:

(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.

(7) The chairperson and minority chairperson of the

Health Committee of the House of Representatives.

(8) The chairperson and minority chairperson of the

Human Services Committee of the House of Representatives.

Section 6. Appeals.

The provisions of this act shall be subject to 22 Pa. Code

Ch. 121 (relating to student financial aid).

Section 7. Loan forgiveness awards.

Loan forgiveness under this act shall be awarded to

recipients who are working in and have received a satisfactory

rating from a qualified health care facility. Recipients shall

submit documentation of eligibility as the agency may require,

including documentation to indicate full-time employment, as

full-time employment is defined by the qualified health care

facility. The documentation shall be presented to the agency in

the form of a letter from the recipient's employer stating that

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the recipient is employed by a qualified health care facility

and that the recipient performs duties in a satisfactory manner.

Section 8. Funding.

Loan forgiveness awards under this act shall be made to the

extent that money is appropriated by the General Assembly and is

sufficient to cover the administration of the program. In the

event that funding is insufficient to fully fund the

administration and all qualified applicants, priority shall be

given to renewal applicants. Thereafter, the agency shall

utilize a random lottery system for determining which qualified

applicants receive loan forgiveness awards.

Section 9. Responsibility of agency.

The agency shall administer the program and shall adopt

regulations, policies, procedures and forms as are necessary to

implement the program which are not inconsistent with the

provisions of this act.

Section 10. Effective date.

This act shall take effect in 60 days.

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