AN ACT

 

1Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2act relating to the public school system, including certain
3provisions applicable as well to private and parochial
4schools; amending, revising, consolidating and changing the
5laws relating thereto," in medical education loan assistance,
6further providing for definitions and for Pennsylvania
7Medical Education Loan Assistance Program; and establishing a
8loan forgiveness program for physician assistants.

9The General Assembly of the Commonwealth of Pennsylvania
10hereby enacts as follows:

11Section 1. Section 2203-A of the act of March 10, 1949 
12(P.L.30, No.14), known as the Public School Code of 1949, is
13amended by adding a definition to read:

14Section 2203-A. Definitions.

15The following words and phrases when used in this article
16shall have the meanings given to them in this section unless the
17context clearly indicates otherwise:

18* * *

19"Physician assistant." An individual licensed to practice as
20a physician assistant under the act of October 5, 1978

1(P.L.1109, No. 261), known as the Osteopathic Medical Practice
2Act, or the act of December 20, 1985 (P.L.457, No.112), known as
3the Medical Practice Act of 1985.

4* * *

5Section 2. Sections 2211-A and 2213-A of the act, added
6October 30, 2001 (P.L.828, No.83), are amended to read:

7Section 2211-A. Pennsylvania Medical Education Loan Assistance
8Program.

9The agency shall establish and administer the Pennsylvania
10Medical Education Loan Assistance Program as set forth in
11sections 2212-A and 2213-A to provide financial assistance to
12individuals who acquire the required degree or diploma in
13medicine, professional nursing, biomedicine or life sciences
14and the education required by law for licensure as physician 
15assistants and to recruit these individuals to practice their
16professions in Pennsylvania.

17Section 2213-A. Loan forgiveness program.

18(a) Establishment of program.--

19(1) The agency shall administer a loan forgiveness 
20program for nursing school applicants on a Statewide basis. 
21The agency may provide loan forgiveness as provided in 
22subsection (b) for recipients of loans who by contract with 
23the agency agree to practice professional nursing in this 
24Commonwealth upon attainment of the required license.

25(2) The agency shall administer a loan forgiveness
26program for applicants enrolled at schools in this
27Commonwealth to become licensed physician assistants on a
28Statewide basis or applicants who graduated from schools in
29this Commonwealth from January 1, 2007, and are employed as
30licensed physician assistants. The agency may provide loan

1forgiveness as provided in subsection (c) for recipients of
2loans who by contract with the agency agree to practice as
3physician assistants in this Commonwealth as provided in
4subsection (c).

5(b) Loan forgiveness for nursing.--Agency-administered,
6federally insured student loans for higher education provided to
7a nursing school applicant may be forgiven by the agency as
8follows:

9(1) The agency may forgive 50% of the loan, not to
10exceed $50,000, if a loan recipient enters into a contract
11with the agency that requires the recipient upon successful
12completion of an approved nursing program and licensure as a
13registered nurse to practice nursing in this Commonwealth for
14a period of not less than three consecutive years.

15(2) Loan forgiveness awards made pursuant to paragraph
16(1) shall be forgiven over a period of three years at an
17annual rate of 33 1/3% of the award and shall be made from
18funds appropriated for this purpose.

19(3) The contract entered into with the agency pursuant
20to paragraph (1) shall be considered a contract with the
21Commonwealth and shall include the following terms:

22(i) An unlicensed recipient shall apply for a
23registered nurse's license to practice in this
24Commonwealth at the earliest practicable opportunity upon
25successfully completing a degree in nursing.

26(ii) Within six months after licensure, a recipient
27shall engage in the practice of nursing in this
28Commonwealth according to the terms of the loan
29forgiveness award.

30(iii) The recipient shall agree to practice in a

1licensed health care facility in the provision of direct
2patient care on a full-time basis.

3(iv) The recipient shall permit the agency to
4determine compliance with the work requirement for nurses
5and all other terms of the contract.

6(v) Upon the recipient's death or total or permanent
7disability, the agency shall nullify the service
8obligation of the recipient.

9(vi) If the recipient is convicted of or pleads
10guilty or no contest to a felony or if the licensing
11board has determined that the recipient has committed an
12act of gross negligence in the performance of service
13obligations or has suspended or revoked the license to
14practice, the agency shall have the authority to
15terminate the recipient's service in the program and
16demand repayment of the amount of the loan as of the date
17of the conviction, determination, suspension or
18revocation.

19(vii) Loan recipients who fail to begin or complete
20the obligations contracted for shall pay to the agency
21the amount of the loan received under the terms of the
22contract pursuant to this section. Providing false
23information or misrepresentation on an application or
24verification of service shall be deemed a default.
25Determination as to the time of default shall be made by
26the agency.

27(4) Notwithstanding 42 Pa.C.S. § 8127 (relating to 
28personal earnings exempt from process), the agency may seek 
29garnishment of wages in order to collect the amount of the 
30loan following default under paragraph (3)(vii).

1(c) Loan forgiveness for physician assistants.--Agency-
2administered, federally insured student loans for higher
3education provided to an applicant enrolled at a school in this
4Commonwealth to become a licensed physician assistant in this
5Commonwealth may be forgiven by the agency as follows:

6(1) The agency may forgive 50% of the loan, if a loan
7recipient enters into a contract with the agency that
8requires the recipient:

9(i) upon successful completion of an approved
10physician assistant program and licensure as a physician
11assistant to practice in this Commonwealth for a period
12of not less than seven consecutive years; or

13(ii) who graduated after January 1, 2007, from such
14program and is employed as a licensed physician assistant
15in this Commonwealth to practice in this Commonwealth for
16a period of not less than seven consecutive years.

17(2) Loan forgiveness awards made pursuant to paragraph
18(1) shall be forgiven over a period of ten years at an annual
19rate of 10% of the award and shall be made from funds
20appropriated for this purpose.

21(3) The contract entered into with the agency pursuant
22to paragraph (1) shall be considered a contract with the
23Commonwealth and shall include the following terms:

24(i) An unlicensed recipient shall apply for a
25physician assistant license to practice in this
26Commonwealth at the earliest practicable opportunity upon
27successfully completing a relevant degree.

28(ii) Within six months after licensure, a recipient
29shall be employed as a physician assistant in this
30Commonwealth according to the terms of the loan

1forgiveness award.

2(iii) The recipient shall agree to practice in a
3licensed health care facility in the provision of direct
4patient care on a full-time basis.

5(iv) The recipient shall donate 40 hours of
6volunteer time over the term of the contract.

7(v) The recipient shall permit the agency to
8determine compliance with the terms of the contract.

9(vi) Upon the recipient's death or total or
10permanent disability, the agency shall nullify the
11service obligation of the recipient.

12(vii) If the recipient is convicted of or pleads
13guilty or no contest to a felony or if the licensing
14board has determined that the recipient has committed an
15act of gross negligence in the performance of service
16obligations or has suspended or revoked the license to
17practice, the agency shall have the authority to
18terminate the recipient's service in the program and
19demand repayment of the amount of the loan as of the date
20of the conviction, determination, suspension or
21revocation.

22(viii) Loan recipients who fail to begin or complete
23the obligations contracted for shall pay to the agency
24the amount of the loan received under the terms of the
25contract pursuant to this section. Providing false
26information or misrepresentation on an application or
27verification of service shall be deemed a default.
28Determination as to the time of default shall be made by
29the agency.

30(4) Notwithstanding 42 Pa.C.S. § 8127, the agency may
 

1seek garnishment of wages in order to collect the amount of 
2the loan following default under paragraph (3)(viii).

3Section 3. This act shall take effect in 60 days.