THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BAKER, REICHLEY, CUTLER, WATSON, BARRAR, BELFANTI, BRENNAN, BRIGGS, CALTAGIRONE, CAUSER, DONATUCCI, FAIRCHILD, FLECK, GEIST, GINGRICH, GROVE, HARHAI, HARKINS, HENNESSEY, HUTCHINSON, KAUFFMAN, M. KELLER, KORTZ, KULA, LONGIETTI, MILLARD, OBERLANDER, M. O'BRIEN, PASHINSKI, PETRARCA, PICKETT, QUINN, REED, SANTONI, SCAVELLO, STERN, TRUE, VULAKOVICH, J. TAYLOR, CREIGHTON, RAPP AND MELIO, MARCH 12, 2009

REFERRED TO COMMITTEE ON EDUCATION, MARCH 12, 2009  

AN ACT

Establishing a nursing and nursing educator loan forgiveness and

scholarship program.

TABLE OF CONTENTS

Chapter 1.  Preliminary Provisions

Section 101.  Short title.

Section 102.  Purpose.

Section 103.  Definitions.

Chapter 3.  Pennsylvania Nurse and Nursing Educator Loan

Forgiveness Program

Section 301.  Establishment.

Section 302.  Repayment assistance.

Section 303.  Eligibility.

Section 304.  Amount of loan forgiveness.

Section 305.  Administration.

Chapter 5.  Scholarship Program

Section 501.  Pennsylvania Nurse and Nursing Education

Scholarship Program.

Section 502.  Nursing Postbaccalaureate Degree Scholarship.

Section 503.  Nursing Baccalaureate Degree Scholarship.

Section 504.  Nursing Program Scholarship.

Section 505.  Administration.

Chapter 49.  Miscellaneous Provisions

Section 4901.  Annual report.

Section 4902.  Minimum nursing data set.

Section 4903.  Appeals.

Section 4904.  Regulations.

Section 4905.  Funding.

Section 4906.  Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 101.  Short title.

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

Nursing Educator Loan Forgiveness and Scholarship Act.

Section 102.  Purpose.

The purpose of this act is to provide an incentive to

Pennsylvania students to pursue higher education and training in

nursing and nursing education which are essential to the

delivery of quality health care services in this Commonwealth.

Section 103.  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.

"Approved course of study."  A program or curriculum offered

by an approved educational institution that provides instruction

in nursing and has been approved by the State Board of Nursing.

"Approved educational institution."  A postsecondary

educational institution located in this Commonwealth that is

authorized to provide approved courses of study and diplomas or

certificates approved by the Pennsylvania Higher Education

Assistance Agency as an institution in which students may enroll

to participate in the Pennsylvania Nurse and Nursing Education

Scholarship Program.

"Board."  The State Board of Nursing.

"Licensed health care facility."  A health care facility that

is enrolled in the Commonwealth's medical assistance program and

is licensed pursuant to the act of July 19, 1979 (P.L.130,

No.48), known as the Health Care Facilities Act, or Article X of

the act of June 13, 1967 (P.L.31, No.21), known as the Public

Welfare Code.

"Licensed practical nurse."  An individual licensed under the

laws of this Commonwealth to practice practical nursing.

"Nurse."  A licensed practical or registered nurse.

"Nursing educator."  An individual eligible under the laws of

this Commonwealth to serve as a nurse faculty member.

"Registered nurse."  An individual licensed under the laws of

this Commonwealth to practice professional nursing.

"Student."  An individual domiciled in this Commonwealth who

attends or is about to attend a postsecondary educational

institution located in this Commonwealth.

"Work requirement."  Postgraduate, full-time employment in

this Commonwealth either in direct patient care with a licensed

health care facility in an occupation related to an approved

course of study under this act or as a nursing educator in an

approved educational institution. The term does not include a

paid student internship, a paid fellowship, volunteer service or

employment before graduation.

CHAPTER 3

PENNSYLVANIA NURSE AND NURSING EDUCATOR

LOAN FORGIVENESS PROGRAM

Section 301.  Establishment.

There is hereby established in this Commonwealth the

Pennsylvania Nurse and Nursing Educator Loan Forgiveness

Program. The Pennsylvania Nurse and Nursing Educator Loan

Forgiveness Program shall be for repayment of student loans for

nurses providing direct patient care in licensed health care

facilities and nursing educators and shall be administered by

the agency.

Section 302.  Repayment assistance.

The agency may provide assistance for the repayment of an

agency-administered student loan for education at an institution

of higher learning received by a nurse or nursing educator.

Repayment assistance may not be made for a loan that is in

default at the time of the application or for an agency-

administered loan being repaid through any other loan repayment

assistance program. Repayment shall be made by the agency to the

lending institution on behalf of the loan recipient.

Section 303.  Eligibility.

Consideration for loan repayment assistance shall be as

follows:

(1)  The applicant must be an individual who:

(i)  has completed an approved course of study;

(ii)  has been licensed by the board as a licensed

practical nurse or a registered nurse;

(iii)  is employed full time as a nurse in the

provision of direct patient care in a licensed health

care facility or nursing educator in an approved

educational institution; and

(iv)  is a resident of this Commonwealth.

(2)  An applicant who is qualified under paragraph (1)

must agree to practice in a licensed health care facility as

a nurse or in an approved educational institution as a

nursing educator for not less than three years.

Section 304.  Amount of loan forgiveness.

(a)  Licensed practical nurse.--A licensed practical nurse

who is eligible under section 303 shall be eligible to receive

up to $3,000 in loan repayments based on the following repayment

schedule:

(1)  Year one, 30%.

(2)  Year two, 35%.

(3)  Year three, 35%.

(b)  Registered nurse.--A registered nurse who is eligible

under section 303 shall be eligible to receive up to $20,000 in

loan repayments based on the following repayment schedule:

(1)  Year one, 25%.

(2)  Year two, 25%.

(3)  Year three, 25%.

(4)  Year four, 25%.

(c)  Nursing educator.--A nursing educator who is eligible

under section 303 shall be eligible to receive up to $30,000 in

loan repayments based on the following repayment schedule:

(1)  Year one, 25%.

(2)  Year two, 25%.

(3)  Year three, 25%.

(4)  Year four, 25%.

Section 305.  Administration.

(a)  Contracts.--A recipient of loan repayment assistance

shall enter into a contract with the agency which shall be

considered a contract with the Commonwealth. The contract shall

include, but not be limited to, the following terms and

conditions:

(1)  The applicant shall agree to practice not less than

three full years in a licensed health care facility or

approved educational institution at a repayment assistance

schedule as provided in section 304.

(2)  The applicant shall agree to practice on a full-time

basis.

(3)  The nurse or nursing educator shall permit the

agency to monitor compliance with the work requirement.

(4)  The agency shall certify compliance with the terms

of the contract for purposes of receipt by the nurse or

nursing educator of loan repayment awards for years

subsequent to the initial year of the loan.

(5)  The contract shall be renewable on an annual basis

upon certification by the agency that the nurse or nursing

educator has complied with the terms of the contract.

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

disability, the agency shall nullify the work requirement of

the recipient.

(7)  If the board has determined that the recipient has

committed an act of gross negligence 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 assistance rendered to date.

(8)  Loan recipients who fail to begin or complete the

obligations contracted for shall reimburse to the

Commonwealth all amounts received under this chapter and

interest thereon as determined by the agency. Falsification

or misrepresentation on an application or in verification of

service shall be construed to be a default. Determination as

to the time of breach of contract shall be made by the

agency. Both the recipient and the agency shall make every

effort to resolve conflicts in order to prevent a breach of

contract.

(b)  Contract enforcement.--The agency shall have the

authority to seek garnishment of wages for the collection of

damages provided for in subsection (a)(8).

(c)  Ineligibility.--The agency may deny loan forgiveness to

a student who is convicted under section 8.2 of the act of

January 25, 1966 (1965 P.L.1546, No.541), referred to as the

Higher Education Scholarship Law.

(d)  Fraud.--Any person who knowingly or intentionally

procures, obtains or aids another to procure or obtain loan

forgiveness under this chapter through fraudulent means shall be

disqualified from participation and shall be liable to the

agency for an amount equal to three times the amount obtained.

(e)  Verification.--The agency shall monitor and verify a

student's fulfillment of all requirements under this chapter.

(f)  Tax.--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.

CHAPTER 5

SCHOLARSHIP PROGRAM

Section 501.  Pennsylvania Nurse and Nursing Education

Scholarship Program.

(a)  Establishment.--There is hereby established the

Pennsylvania Nurse and Nursing Education Scholarship Program

within the agency, to consist of the Nursing Postbaccalaureate

Degree Scholarship, the Nursing Baccalaureate Degree Scholarship

and the Nursing Program Scholarship.

(b)  Issuance of grants.--The agency may provide scholarship

grants to an eligible student who is a resident of this

Commonwealth upon confirmation from an approved educational

institution that the student is enrolled in an approved course

of study. Scholarship grants shall only be for the amount set

forth in sections 502(a), 503(a) and 504(a) and shall only be

used for educational costs as determined by the agency.

(c)  Other funding.--Prior to making a grant under this act,

the agency shall first apply Federal Pell Grant and State grants

available for educational costs related to an approved program

prior to determining the amount of the scholarship grant.

(d)  Eligibility.--To receive a scholarship grant under this

chapter, a student shall meet all of the following requirements:

(1)  Graduation from a high school in this Commonwealth,

or earned general educational development (GED) diploma or

the equivalent thereof.

(2)  Maintenance of domicile in Pennsylvania during the

term of the scholarship grants.

(3)  Compliance with any conditions placed on the

scholarship grant by the agency.

(4)  Maintenance of satisfactory progress as established

by the approved educational institution's written policies.

(5)  Entrance into a written agreement with the agency

to:

(i)  Complete an approved course of study.

(ii)  Commence employment involving direct patient

care with a licensed health care facility or in an

approved educational institution in this Commonwealth

within one year after completion of an approved course of

study for a period of one year for each academic year the

student received a scholarship grant under this chapter

unless the agency determines that there are extenuating

circumstances.

(iii)  Reimburse the Commonwealth all amounts

received under this chapter and interest thereon, as

determined by the agency, if the student fails to comply

with subparagraphs (i) and (ii).

(e)  Application.--A student shall apply to the agency for a

scholarship grant as prescribed by the agency, to include the

provision of all information and documentation required by the

agency. The application of a student under 18 years of age shall

include the signature of a parent or guardian.

(f)  Work requirement.--The work requirement under subsection

(d)(5)(ii) shall begin after completion of the approved course

of study.

(g)  Termination.--If a student terminates enrollment in the

approved educational institution during the academic year or

prior to completion of the approved course of study, the

approved educational institution shall notify the agency in

writing and shall return all unused portions of the scholarship

grant. Returned amounts shall be used to fund other scholarship

grants under this chapter.

(h)  Transfer.--A scholarship under this chapter is only

transferrable to another educational institution if approved by

the agency.

(i)  Limitation.--Grants awarded under the Pennsylvania Nurse

and Nursing Education Scholarship Program shall be limited to

funds appropriated for that purpose. First priority for awarding

grants shall be given to renewal applicants. Thereafter, grants

shall be awarded on a first-come, first-served basis.

(j)  Minors.--A person under 18 years of age who otherwise

qualifies for scholarship grants under this section shall not be

disqualified based upon age.

(k)  Ineligibility.--The agency may deny a scholarship grant

to a student who is convicted under section 8.2 of the act of

January 25, 1966 (1965 P.L.1546, No.541), referred to as the

Higher Education Scholarship Law.

(l)  Fraud.--Any person who knowingly or intentionally

procures, obtains or aids another to procure or obtain a grant

under this chapter through fraudulent means shall be

disqualified from participation in the Pennsylvania Nurse and

Nursing Education Scholarship Program and shall be liable to the

agency for an amount equal to three times the amount obtained.

Section 502.  Nursing Postbaccalaureate Degree Scholarship.

(a)  Amount of grants.--The agency shall award a Nursing

Postbaccalaureate Degree Scholarship in the amount of $6,000 per

academic year or a lesser amount following application of

Federal and State grants under section 501(c) to a student

enrolled full time in an approved educational institution

pursuing a master's degree in nursing education. The student

shall take at least 12 semester hours, or its equivalent, in an

approved course of study.

(b)  Term of grant.--The grant shall be for a maximum of two

academic years.

Section 503.  Nursing Baccalaureate Degree Scholarship.

(a)  Amount of grants.--The agency shall award a Nursing

Baccalaureate Degree Scholarship in the amount of $3,000 per

academic year, or a lesser amount following application of

Federal and State grants under section 501(c) to a student

enrolled full time in an approved educational institution

pursuing a bachelor's degree in nursing or nursing education.

The student shall take at least 12 semester hours, or its

equivalent, in an approved course of study.

(b)  Term of grant.--The grant shall be for a maximum of four

academic years.

Section 504.  Nursing Program Scholarship.

(a)  Amount of grants.--The agency shall award a Nursing

Program Scholarship in the amount of $1,500 per academic year or

a lesser amount following application of Federal or State grants

under section 501(c) to a student enrolled full time in an

approved educational institution pursuing an associate's degree,

diploma or certificate. A student who is enrolled part time and

is pursuing an associate's degree, diploma or certificate is

eligible for a grant of 50% of educational costs as determined

by the agency.

(b)  Term of grant.--The grant shall be for a maximum of two

academic years or for up to three academic years if the student

is enrolled in an approved course of study that, according to

the board, requires three academic years to complete. In order

to qualify for a grant in a third academic year, the student

must be in compliance with section 501(d) and the institution

must determine that the student is making satisfactory progress

toward completing an associate's degree or the requirements of

the diploma or certificate program.

Section 505.  Administration.

(a)  Verification.--The agency shall monitor and verify a

student's fulfillment of all work requirements under this

chapter.

(b)  Enforcement.--The agency shall enforce repayment of all

scholarship grants for a student who does not comply with the

provisions of this chapter, to include use of all lawful

collection procedures and the use of private collection

agencies.

(c)  Tax.--Scholarship grants received by a student under

this chapter 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.

(d)  Financial assistance.--Scholarship grants received by a

student under this chapter shall not be considered financial

assistance or appropriations to the approved educational

institution.

(e)  Customized job training.--No funds under this chapter

shall be granted to a person enrolled in a customized job

training partnership program or continuing education course from

a postsecondary educational institution for which an employer is

providing over 50% of the financial support, directly or

indirectly, and for which the student is not being charged

tuition or fees.

CHAPTER 49

MISCELLANEOUS PROVISIONS

Section 4901.  Annual report.

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

report on the date exactly one year following the effective date

of this act, and every year thereafter for the immediately

preceding fiscal year. The report shall include information

regarding the operation of the programs established under this

act, including:

(1)  The number of applications received for the Nursing

Postbaccalaureate Degree Scholarship, the Nursing

Baccalaureate Degree Scholarship, the Nursing Program

Scholarship and the Pennsylvania Nurse and Nursing Educator

Loan Forgiveness Program.

(2)  The number, type and amount of Nursing

Postbaccalaureate Degree Scholarships, Nursing Baccalaureate

Degree Scholarships and Nursing Program Scholarships awarded.

(3)  The number and amount of nursing and nursing

educator loan forgiveness contracts executed and contracts

renewed for licensed practical nurses, registered nurses and

nursing educators.

(4)  The number of scholarship grantees who withdraw from

the scholarship programs, reported by cause.

(5)  The number of defaulted loan forgiveness program

contracts, reported by cause.

(6)  The number of full-time and part-time students

receiving scholarships, reported by type of institution

attending, including four-year educational institutions,

community colleges, independent two-year colleges, private

licensed schools, hospital-based courses of study and

certificate programs.

(7)  The number of nurses and nursing educators

participating in the loan forgiveness program, reported by

type of institution attended, including four-year educational

institutions, community colleges, independent two-year

colleges, private licensed schools, hospital-based courses of

study and certificate programs.

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

the agency.

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

Governor, the chairman and minority chairman of the

Appropriations Committee of the Senate, the chairman and

minority chairman of the Appropriations Committee of the House

of Representatives, the chairman and minority chairman of the

Education Committee of the Senate, the chairman and minority

chairman of the Public Health and Welfare Committee of the

Senate and the chairman and minority chairman of the Health and

Human Services Committee of the House of Representatives.

Section 4902.  Minimum nursing data set.

(a)  Duty of State Board of Nursing.--It shall be the duty of

the State Board of Nursing to collect, store and make available

nursing work force information regarding all of the categories

of nurses and nursing educators.

(b)  Information.--The information to be collected as part of

the routine licensure renewal process on nurses and nursing

educators shall include, but not be limited to:

(1)  Demographics, including:

(i)  Year of birth.

(ii)  Ethnicity: Hispanic/Latino; Native Americans;

Alaska Native; Asian; Pacific Islander; African American,

not of Hispanic origin; White, not of Hispanic origin.

(iii)  Zip code of residence.

(2)  Basic education, including:

(i)  Program type: LPN, hospital-based, ADN, BSN and

MS.

(ii)  Year graduated.

(iii)  State in which basic program is located.

(3)  Highest education attained, including:

(i)  Program type: LPH, hospital-based, AA/AND,

BS/BSN, MS/MSN and PhD/EdD.

(ii)  Year graduated.

(iii)  Preparation as advanced nurse practitioner,

nurse practitioner, nurse-midwife, clinical nurse

specialist and nurse anesthetist.

(4)  Employment, including:

(i)  Current employment.

(ii)  Number of hours worked in typical week.

(iii)  Setting of primary employer: hospital, long-

term care, ambulatory care, physician office, public

health, home health care, approved educational

institution or other.

(iv)  Setting of secondary employer: hospital, long-

term care, ambulatory care, physician office, public

health care, home health care, approved educational

institution or other.

(v)  Type of position: staff nurse, educator,

management, utilization/case management, advanced

practice or other.

(vi)  Zip code of primary employer.

(vii)  Whether currently unemployed in nursing or

nursing education; a full-time or part-time student;

seeking nursing or nursing education employment; seeking

employment in another health-related field; seeking

employment in another field; employed in another health-

related field; employed in another field; not seeking

nursing or nursing education employment; not seeking

employment or retired.

(viii)  Intention to remain employed in nursing, one

to three years; three to five years; five to ten years;

or greater than ten years.

(5)  Licensure, including:

(i)  State issuing first license.

(ii)  Year first license issued.

(iii)  States where current licensure is held.

(iv)  Name under which license issued or number of

license for each state in which nurse is licensed.

(c)  Duty of Department of Labor and Industry.--It shall be

the duty of the Department of Labor and Industry, through its

Center for Workforce Information and Analysis, to regularly

analyze and publish the information collected by the board in

combination with information obtained from employers to better

understand the supply and demand for nurses and nursing

educators in this Commonwealth and to assist in work force

planning and development.

Section 4903.  Appeals.

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

Ch. 121 (relating to student financial aid).

Section 4904.  Regulations.

The agency shall adopt regulations and procedures necessary

to carry out the purposes of this act.

Section 4905.  Funding.

Loan forgiveness repayments and scholarship awards shall be

made to the extent that funds are appropriated by the General

Assembly for this act.

Section 4906.  Effective date.

This act shall take effect in 90 days.