PRINTER'S NO. 1188
No. 1019 Session of 2007
INTRODUCED BY GERGELY, BARRAR, BELFANTI, BENNINGHOFF, BIANCUCCI, CALTAGIRONE, CAPPELLI, COSTA, CREIGHTON, CURRY, CUTLER, DeLUCA, DePASQUALE, FABRIZIO, FREEMAN, GEIST, GEORGE, GIBBONS, GOODMAN, GRUCELA, HARHAI, HARPER, HARRIS, JAMES, JOSEPHS, M. KELLER, KING, KIRKLAND, KORTZ, KOTIK, MANN, MUNDY, MURT, PALLONE, PAYNE, PETRARCA, RAYMOND, READSHAW, SHAPIRO, McILVAINE SMITH, K. SMITH, SOLOBAY, SONNEY, SURRA, THOMAS, TRUE, WALKO, WANSACZ, WHEATLEY AND WOJNAROSKI, APRIL 3, 2007
REFERRED TO COMMITTEE ON EDUCATION, APRIL 3, 2007
AN ACT 1 Establishing a nursing and nursing educator loan forgiveness and 2 scholarship program. 3 TABLE OF CONTENTS 4 Chapter 1. Preliminary Provisions 5 Section 101. Short title. 6 Section 102. Purpose. 7 Section 103. Definitions. 8 Chapter 3. Pennsylvania Nurse and Nursing Educator Loan 9 Forgiveness Program 10 Section 301. Establishment. 11 Section 302. Repayment assistance. 12 Section 303. Eligibility. 13 Section 304. Amount of loan forgiveness. 14 Section 305. Administration.
1 Chapter 5. Scholarship Program 2 Section 501. Pennsylvania Nurse and Nursing Education 3 Scholarship Program. 4 Section 502. Nursing Postbaccalaureate Degree Scholarship. 5 Section 503. Nursing Baccalaureate Degree Scholarship. 6 Section 504. Nursing Program Scholarship. 7 Section 505. Administration. 8 Chapter 49. Miscellaneous Provisions 9 Section 4901. Annual report. 10 Section 4902. Minimum nursing data set. 11 Section 4903. Appeals. 12 Section 4904. Regulations. 13 Section 4905. Funding. 14 Section 4906. Effective date. 15 The General Assembly of the Commonwealth of Pennsylvania 16 hereby enacts as follows: 17 CHAPTER 1 18 PRELIMINARY PROVISIONS 19 Section 101. Short title. 20 This act shall be known and may be cited as the Nursing and 21 Nursing Educator Loan Forgiveness and Scholarship Act. 22 Section 102. Purpose. 23 The purpose of this act is to provide an incentive to 24 Pennsylvania students to pursue higher education and training in 25 nursing and nursing education which are essential to the 26 delivery of quality health care services in this Commonwealth. 27 Section 103. Definitions. 28 The following words and phrases when used in this act shall 29 have the meanings given to them in this section unless the 30 context clearly indicates otherwise: 20070H1019B1188 - 2 -
1 "Agency." The Pennsylvania Higher Education Assistance 2 Agency. 3 "Approved course of study." A program or curriculum offered 4 by an approved educational institution that provides instruction 5 in nursing and has been approved by the State Board of Nursing. 6 "Approved educational institution." A postsecondary 7 educational institution located in this Commonwealth that is 8 authorized to provide approved courses of study and diplomas or 9 certificates approved by the Pennsylvania Higher Education 10 Assistance Agency as an institution in which students may enroll 11 to participate in the Pennsylvania Nurse and Nursing Education 12 Scholarship Program. 13 "Board." The State Board of Nursing. 14 "Licensed health care facility." A health care facility that 15 is enrolled in the Commonwealth's medical assistance program and 16 is licensed pursuant to the act of July 19, 1979 (P.L.130, 17 No.48), known as the Health Care Facilities Act, or Article X of 18 the act of June 13, 1967 (P.L.31, No.21), known as the Public 19 Welfare Code. 20 "Licensed practical nurse." An individual licensed under the 21 laws of this Commonwealth to practice practical nursing. 22 "Nurse." A licensed practical or registered nurse. 23 "Nursing educator." An individual eligible under the laws of 24 this Commonwealth to serve as a nurse faculty member. 25 "Registered nurse." An individual licensed under the laws of 26 this Commonwealth to practice professional nursing. 27 "Student." An individual domiciled in this Commonwealth who 28 attends or is about to attend a postsecondary educational 29 institution located in this Commonwealth. 30 "Work requirement." Postgraduate, full-time employment in 20070H1019B1188 - 3 -
1 this Commonwealth either in direct patient care with a licensed 2 health care facility in an occupation related to an approved 3 course of study under this act or as a nursing educator in an 4 approved educational institution. The term does not include a 5 paid student internship, a paid fellowship, volunteer service or 6 employment before graduation. 7 CHAPTER 3 8 PENNSYLVANIA NURSE AND NURSING EDUCATOR 9 LOAN FORGIVENESS PROGRAM 10 Section 301. Establishment. 11 There is hereby established in this Commonwealth the 12 Pennsylvania Nurse and Nursing Educator Loan Forgiveness 13 Program. The Pennsylvania Nurse and Nursing Educator Loan 14 Forgiveness Program shall be for repayment of student loans for 15 nurses providing direct patient care in licensed health care 16 facilities and nursing educators and shall be administered by 17 the agency. 18 Section 302. Repayment assistance. 19 The agency may provide assistance for the repayment of an 20 agency-administered student loan for education at an institution 21 of higher learning received by a nurse or nursing educator. 22 Repayment assistance may not be made for a loan that is in 23 default at the time of the application or for an agency- 24 administered loan being repaid through any other loan repayment 25 assistance program. Repayment shall be made by the agency to the 26 lending institution on behalf of the loan recipient. 27 Section 303. Eligibility. 28 Consideration for loan repayment assistance shall be as 29 follows: 30 (1) The applicant must be an individual who: 20070H1019B1188 - 4 -
1 (i) has completed an approved course of study; 2 (ii) has been licensed by the board as a licensed 3 practical nurse or a registered nurse; 4 (iii) is employed full time as a nurse in the 5 provision of direct patient care in a licensed health 6 care facility or nursing educator in an approved 7 educational institution; and 8 (iv) is a resident of this Commonwealth. 9 (2) An applicant who is qualified under paragraph (1) 10 must agree to practice in a licensed health care facility as 11 a nurse or in an approved educational institution as a 12 nursing educator for not less than three years. 13 Section 304. Amount of loan forgiveness. 14 (a) Licensed practical nurse.--A licensed practical nurse 15 who is eligible under section 303 shall be eligible to receive 16 up to $3,000 in loan repayments based on the following repayment 17 schedule: 18 (1) Year one, 30%. 19 (2) Year two, 35%. 20 (3) Year three, 35%. 21 (b) Registered nurse.--A registered nurse who is eligible 22 under section 303 shall be eligible to receive up to $20,000 in 23 loan repayments based on the following repayment schedule: 24 (1) Year one, 25%. 25 (2) Year two, 25%. 26 (3) Year three, 25%. 27 (4) Year four, 25%. 28 (c) Nursing educator.--A nursing educator who is eligible 29 under section 303 shall be eligible to receive up to $30,000 in 30 loan repayments based on the following repayment schedule: 20070H1019B1188 - 5 -
1 (1) Year one, 25%. 2 (2) Year two, 25%. 3 (3) Year three, 25%. 4 (4) Year four, 25%. 5 Section 305. Administration. 6 (a) Contracts.--A recipient of loan repayment assistance 7 shall enter into a contract with the agency which shall be 8 considered a contract with the Commonwealth. The contract shall 9 include, but not be limited to, the following terms and 10 conditions: 11 (1) The applicant shall agree to practice not less than 12 three full years in a licensed health care facility or 13 approved educational institution at a repayment assistance 14 schedule as provided in section 304. 15 (2) The applicant shall agree to practice on a full-time 16 basis. 17 (3) The nurse or nursing educator shall permit the 18 agency to monitor compliance with the work requirement. 19 (4) The agency shall certify compliance with the terms 20 of the contract for purposes of receipt by the nurse or 21 nursing educator of loan repayment awards for years 22 subsequent to the initial year of the loan. 23 (5) The contract shall be renewable on an annual basis 24 upon certification by the agency that the nurse or nursing 25 educator has complied with the terms of the contract. 26 (6) Upon the recipient's death or total or permanent 27 disability, the agency shall nullify the work requirement of 28 the recipient. 29 (7) If the board has determined that the recipient has 30 committed an act of gross negligence or has suspended or 20070H1019B1188 - 6 -
1 revoked the license to practice, the agency shall have the 2 authority to terminate the recipient's service in the program 3 and demand repayment of the assistance rendered to date. 4 (8) Loan recipients who fail to begin or complete the 5 obligations contracted for shall reimburse to the 6 Commonwealth all amounts received under this chapter and 7 interest thereon as determined by the agency. Falsification 8 or misrepresentation on an application or in verification of 9 service shall be construed to be a default. Determination as 10 to the time of breach of contract shall be made by the 11 agency. Both the recipient and the agency shall make every 12 effort to resolve conflicts in order to prevent a breach of 13 contract. 14 (b) Contract enforcement.--The agency shall have the 15 authority to seek garnishment of wages for the collection of 16 damages provided for in subsection (a)(8). 17 (c) Ineligibility.--The agency may deny loan forgiveness to 18 a student who is convicted under section 8.2 of the act of 19 January 25, 1966 (1965 P.L.1546, No.541), referred to as the 20 Higher Education Scholarship Law. 21 (d) Fraud.--Any person who knowingly or intentionally 22 procures, obtains or aids another to procure or obtain loan 23 forgiveness under this chapter through fraudulent means shall be 24 disqualified from participation and shall be liable to the 25 agency for an amount equal to three times the amount obtained. 26 (e) Verification.--The agency shall monitor and verify a 27 student's fulfillment of all requirements under this chapter. 28 (f) Tax.--Loan forgiveness repayments received by a student 29 shall not be considered taxable income for purposes of Article 30 III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax 20070H1019B1188 - 7 -
1 Reform Code of 1971. 2 CHAPTER 5 3 SCHOLARSHIP PROGRAM 4 Section 501. Pennsylvania Nurse and Nursing Education 5 Scholarship Program. 6 (a) Establishment.--There is hereby established the 7 Pennsylvania Nurse and Nursing Education Scholarship Program 8 within the agency, to consist of the Nursing Postbaccalaureate 9 Degree Scholarship, the Nursing Baccalaureate Degree Scholarship 10 and the Nursing Program Scholarship. 11 (b) Issuance of grants.--The agency may provide scholarship 12 grants to an eligible student who is a resident of this 13 Commonwealth upon confirmation from an approved educational 14 institution that the student is enrolled in an approved course 15 of study. Scholarship grants shall only be for the amount set 16 forth in sections 502(a), 503(a) and 504(a) and shall only be 17 used for educational costs as determined by the agency. 18 (c) Other funding.--Prior to making a grant under this act, 19 the agency shall first apply Federal Pell Grant and State grants 20 available for educational costs related to an approved program 21 prior to determining the amount of the scholarship grant. 22 (d) Eligibility.--To receive a scholarship grant under this 23 chapter, a student shall meet all of the following requirements: 24 (1) Graduation from a high school in this Commonwealth, 25 or earned general educational development (GED) diploma or 26 the equivalent thereof. 27 (2) Maintenance of domicile in Pennsylvania during the 28 term of the scholarship grants. 29 (3) Compliance with any conditions placed on the 30 scholarship grant by the agency. 20070H1019B1188 - 8 -
1 (4) Maintenance of satisfactory progress as established 2 by the approved educational institution's written policies. 3 (5) Entrance into a written agreement with the agency 4 to: 5 (i) Complete an approved course of study. 6 (ii) Commence employment involving direct patient 7 care with a licensed health care facility or in an 8 approved educational institution in this Commonwealth 9 within one year after completion of an approved course of 10 study for a period of one year for each academic year the 11 student received a scholarship grant under this chapter 12 unless the agency determines that there are extenuating 13 circumstances. 14 (iii) Reimburse the Commonwealth all amounts 15 received under this chapter and interest thereon, as 16 determined by the agency, if the student fails to comply 17 with subparagraphs (i) and (ii). 18 (e) Application.--A student shall apply to the agency for a 19 scholarship grant as prescribed by the agency, to include the 20 provision of all information and documentation required by the 21 agency. The application of a student under 18 years of age shall 22 include the signature of a parent or guardian. 23 (f) Work requirement.--The work requirement under subsection 24 (d)(5)(ii) shall begin after completion of the approved course 25 of study. 26 (g) Termination.--If a student terminates enrollment in the 27 approved educational institution during the academic year or 28 prior to completion of the approved course of study, the 29 approved educational institution shall notify the agency in 30 writing and shall return all unused portions of the scholarship 20070H1019B1188 - 9 -
1 grant. Returned amounts shall be used to fund other scholarship 2 grants under this chapter. 3 (h) Transfer.--A scholarship under this chapter is only 4 transferrable to another educational institution if approved by 5 the agency. 6 (i) Limitation.--Grants awarded under the Pennsylvania Nurse 7 and Nursing Education Scholarship Program shall be limited to 8 funds appropriated for that purpose. First priority for awarding 9 grants shall be given to renewal applicants. Thereafter, grants 10 shall be awarded on a first-come, first-served basis. 11 (j) Minors.--A person under 18 years of age who otherwise 12 qualifies for scholarship grants under this section shall not be 13 disqualified based upon age. 14 (k) Ineligibility.--The agency may deny a scholarship grant 15 to a student who is convicted under section 8.2 of the act of 16 January 25, 1966 (1965 P.L.1546, No.541), referred to as the 17 Higher Education Scholarship Law. 18 (l) Fraud.--Any person who knowingly or intentionally 19 procures, obtains or aids another to procure or obtain a grant 20 under this chapter through fraudulent means shall be 21 disqualified from participation in the Pennsylvania Nurse and 22 Nursing Education Scholarship Program and shall be liable to the 23 agency for an amount equal to three times the amount obtained. 24 Section 502. Nursing Postbaccalaureate Degree Scholarship. 25 (a) Amount of grants.--The agency shall award a Nursing 26 Postbaccalaureate Degree Scholarship in the amount of $6,000 per 27 academic year or a lesser amount following application of 28 Federal and State grants under section 501(c) to a student 29 enrolled full time in an approved educational institution 30 pursuing a master's degree in nursing education. The student 20070H1019B1188 - 10 -
1 shall take at least 12 semester hours, or its equivalent, in an 2 approved course of study. 3 (b) Term of grant.--The grant shall be for a maximum of two 4 academic years. 5 Section 503. Nursing Baccalaureate Degree Scholarship. 6 (a) Amount of grants.--The agency shall award a Nursing 7 Baccalaureate Degree Scholarship in the amount of $3,000 per 8 academic year, or a lesser amount following application of 9 Federal and State grants under section 501(c) to a student 10 enrolled full time in an approved educational institution 11 pursuing a bachelor's degree in nursing or nursing education. 12 The student shall take at least 12 semester hours, or its 13 equivalent, in an approved course of study. 14 (b) Term of grant.--The grant shall be for a maximum of four 15 academic years. 16 Section 504. Nursing Program Scholarship. 17 (a) Amount of grants.--The agency shall award a Nursing 18 Program Scholarship in the amount of $1,500 per academic year or 19 a lesser amount following application of Federal or State grants 20 under section 501(c) to a student enrolled full time in an 21 approved educational institution pursuing an associate's degree, 22 diploma or certificate. A student who is enrolled part time and 23 is pursuing an associate's degree, diploma or certificate is 24 eligible for a grant of 50% of educational costs as determined 25 by the agency. 26 (b) Term of grant.--The grant shall be for a maximum of two 27 academic years or for up to three academic years if the student 28 is enrolled in an approved course of study that, according to 29 the board, requires three academic years to complete. In order 30 to qualify for a grant in a third academic year, the student 20070H1019B1188 - 11 -
1 must be in compliance with section 501(d) and the institution 2 must determine that the student is making satisfactory progress 3 toward completing an associate's degree or the requirements of 4 the diploma or certificate program. 5 Section 505. Administration. 6 (a) Verification.--The agency shall monitor and verify a 7 student's fulfillment of all work requirements under this 8 chapter. 9 (b) Enforcement.--The agency shall enforce repayment of all 10 scholarship grants for a student who does not comply with the 11 provisions of this chapter, to include use of all lawful 12 collection procedures and the use of private collection 13 agencies. 14 (c) Tax.--Scholarship grants received by a student under 15 this chapter shall not be considered taxable income for purposes 16 of Article III of the act of March 4, 1971 (P.L.6, No.2), known 17 as the Tax Reform Code of 1971. 18 (d) Financial assistance.--Scholarship grants received by a 19 student under this chapter shall not be considered financial 20 assistance or appropriations to the approved educational 21 institution. 22 (e) Customized job training.--No funds under this chapter 23 shall be granted to a person enrolled in a customized job 24 training partnership program or continuing education course from 25 a postsecondary educational institution for which an employer is 26 providing over 50% of the financial support, directly or 27 indirectly, and for which the student is not being charged 28 tuition or fees. 29 CHAPTER 49 30 MISCELLANEOUS PROVISIONS 20070H1019B1188 - 12 -
1 Section 4901. Annual report. 2 (a) Development of report.--The agency shall publish a 3 report by September 1, 2007, and every year thereafter for the 4 immediately preceding fiscal year. The report shall include 5 information regarding the operation of the programs established 6 under this act, including: 7 (1) The number of applications received for the Nursing 8 Postbaccalaureate Degree Scholarship, the Nursing 9 Baccalaureate Degree Scholarship, the Nursing Program 10 Scholarship and the Pennsylvania Nurse and Nursing Educator 11 Loan Forgiveness Program. 12 (2) The number, type and amount of Nursing 13 Postbaccalaureate Degree Scholarships, Nursing Baccalaureate 14 Degree Scholarships and Nursing Program Scholarships awarded. 15 (3) The number and amount of nursing and nursing 16 educator loan forgiveness contracts executed and contracts 17 renewed for licensed practical nurses, registered nurses and 18 nursing educators. 19 (4) The number of scholarship grantees who withdraw from 20 the scholarship programs, reported by cause. 21 (5) The number of defaulted loan forgiveness program 22 contracts, reported by cause. 23 (6) The number of full-time and part-time students 24 receiving scholarships, reported by type of institution 25 attending, including four-year educational institutions, 26 community colleges, independent two-year colleges, private 27 licensed schools, hospital-based courses of study and 28 certificate programs. 29 (7) The number of nurses and nursing educators 30 participating in the loan forgiveness program, reported by 20070H1019B1188 - 13 -
1 type of institution attended, including four-year educational 2 institutions, community colleges, independent two-year 3 colleges, private licensed schools, hospital-based courses of 4 study and certificate programs. 5 (8) The number and type of enforcement actions taken by 6 the agency. 7 (b) Submission.--The annual report shall be submitted to the 8 Governor, the chairman and minority chairman of the 9 Appropriations Committee of the Senate, the chairman and 10 minority chairman of the Appropriations Committee of the House 11 of Representatives, the chairman and minority chairman of the 12 Education Committee of the Senate, the chairman and minority 13 chairman of the Public Health and Welfare Committee of the 14 Senate and the chairman and minority chairman of the Health and 15 Human Services Committee of the House of Representatives. 16 Section 4902. Minimum nursing data set. 17 (a) Duty of State Board of Nursing.--It shall be the duty of 18 the State Board of Nursing to collect, store and make available 19 nursing work force information regarding all of the categories 20 of nurses and nursing educators. 21 (b) Information.--The information to be collected as part of 22 the routine licensure renewal process on nurses and nursing 23 educators shall include, but not be limited to: 24 (1) Demographics, including: 25 (i) Year of birth. 26 (ii) Ethnicity: Hispanic/Latino; Native Americans; 27 Alaska Native; Asian; Pacific Islander; African American, 28 not of Hispanic origin; White, not of Hispanic origin. 29 (iii) Zip code of residence. 30 (2) Basic education, including: 20070H1019B1188 - 14 -
1 (i) Program type: LPN, hospital-based, ADN, BSN and 2 MS. 3 (ii) Year graduated. 4 (iii) State in which basic program is located. 5 (3) Highest education attained, including: 6 (i) Program type: LPH, hospital-based, AA/AND, 7 BS/BSN, MS/MSN and PhD/EdD. 8 (ii) Year graduated. 9 (iii) Preparation as advanced nurse practitioner, 10 nurse practitioner, nurse-midwife, clinical nurse 11 specialist and nurse anesthetist. 12 (4) Employment, including: 13 (i) Current employment. 14 (ii) Number of hours worked in typical week. 15 (iii) Setting of primary employer: hospital, long- 16 term care, ambulatory care, physician office, public 17 health, home health care, approved educational 18 institution or other. 19 (iv) Setting of secondary employer: hospital, long- 20 term care, ambulatory care, physician office, public 21 health care, home health care, approved educational 22 institution or other. 23 (v) Type of position: staff nurse, educator, 24 management, utilization/case management, advanced 25 practice or other. 26 (vi) Zip code of primary employer. 27 (vii) Whether currently unemployed in nursing or 28 nursing education; a full-time or part-time student; 29 seeking nursing or nursing education employment; seeking 30 employment in another health-related field; seeking 20070H1019B1188 - 15 -
1 employment in another field; employed in another health- 2 related field; employed in another field; not seeking 3 nursing or nursing education employment; not seeking 4 employment or retired. 5 (viii) Intention to remain employed in nursing, one 6 to three years; three to five years; five to ten years; 7 or greater than ten years. 8 (5) Licensure, including: 9 (i) State issuing first license. 10 (ii) Year first license issued. 11 (iii) States where current licensure is held. 12 (iv) Name under which license issued or number of 13 license for each state in which nurse is licensed. 14 (c) Duty of Department of Labor and Industry.--It shall be 15 the duty of the Department of Labor and Industry, through its 16 Center for Workforce Information and Analysis, to regularly 17 analyze and publish the information collected by the board in 18 combination with information obtained from employers to better 19 understand the supply and demand for nurses and nursing 20 educators in this Commonwealth and to assist in work force 21 planning and development. 22 Section 4903. Appeals. 23 The provisions of this act shall be subject to 22 Pa. Code 24 Ch. 121 (relating to student financial aid). 25 Section 4904. Regulations. 26 The agency shall adopt regulations and procedures necessary 27 to carry out the purposes of this act. 28 Section 4905. Funding. 29 Loan forgiveness repayments and scholarship awards shall be 30 made to the extent that funds are appropriated by the General 20070H1019B1188 - 16 -
1 Assembly for this act. 2 Section 4906. Effective date. 3 This act shall take effect in 90 days. B26L24SFL/20070H1019B1188 - 17 -