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PRINTER'S NO. 2271
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1681
Session of
2019
INTRODUCED BY KORTZ, JAMES, SAYLOR AND McCLINTON, JUNE 27, 2019
REFERRED TO COMMITTEE ON EDUCATION, JUNE 27, 2019
AN ACT
Establishing the Loan Forgiveness for Dentists Program in the
Pennsylvania Higher Education Assistance Agency; and
providing for 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 Loan
Forgiveness for Dentists Act.
Section 2. Purpose.
The purpose of this act is to provide an incentive to
Pennsylvania students to pursue higher education and training in
dentistry in order to maintain the delivery of quality dentistry
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.
"Dentist." An individual licensed to practice dentistry
within the scope of the act of May 1, 1933 (P.L.216, No.76),
known as The Dental Law.
"Designated area." Any of the following:
(1) A geographic area of this Commonwealth that is
designated by the Secretary of Health as having a shortage of
dentists.
(2) A geographic area of this Commonwealth designated by
the United States Department of Health and Human Services as
a Dental Care Health Professional Shortage Area (HPSA) or
designated to have an underserved population of dentists.
"Eligible applicant." An individual who holds an
undergraduate degree from an institution of higher learning and
is enrolled in an accredited dental school.
"Program." The Loan Forgiveness for Dentists Program
established by this act.
Section 4. Program.
(a) Establishment of program.--The Loan Forgiveness for
Dentists Program is established. The agency shall administer the
program for eligible applicants on a Statewide basis. The agency
may provide loan forgiveness as provided in subsection (b) for
recipients of loans who by contract with the agency agree to
practice dentistry in this Commonwealth upon attainment of the
required license.
(b) Loan forgiveness.--Agency-administered, federally
insured student loans for higher education provided to an
eligible applicant may be forgiven by the agency as follows:
(1) The agency may forgive 50% of the loan, not to
exceed $100,000, if a loan recipient enters into a contract
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with the agency that requires the recipient upon successful
completion of an approved dental program and licensure as a
dentist to practice dentistry in this Commonwealth for a
period of not less than four consecutive years.
(2) Loan forgiveness awards made under paragraph (1)
shall be forgiven over a period of four years at an annual
rate of 25% of the award and shall be made from funds
appropriated for this purpose.
(3) 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) An unlicensed recipient shall apply for a dental
license to practice in this Commonwealth at the earliest
practicable opportunity upon successfully completing a
degree in dentistry.
(ii) Within six months after licensure, a recipient
shall engage in the practice of dentistry in this
Commonwealth according to the terms of the loan
forgiveness award.
(iii) The recipient shall agree to practice
dentistry on a full-time basis.
(iv) The recipient shall permit the agency to
determine compliance with the work requirement for
dentists and all other terms of the contract.
(v) Upon the recipient's death or total or permanent
disability, the agency shall nullify the service
obligation of the recipient.
(vi) If the recipient is convicted of or pleads
guilty or no contest to a felony or if the licensing
board has determined that the recipient has committed an
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act of gross negligence in the performance of service
obligations 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 amount of the loan as of the date
of the conviction, determination, suspension or
revocation.
(vii) A dentist who fails to begin or complete the
obligations contracted for shall reimburse the
Commonwealth all amounts received under this act and
interest on those amounts as determined by the agency.
Both the dentist and the agency shall make every effort
to resolve conflicts in order to prevent a breach of
contract.
(c) Contract enforcement.--Notwithstanding 42 Pa.C.S. ยง 8127
(relating to personal earnings exempt from process), the agency
may seek garnishment of wages for the collection of damages
provided for in subsection (b)(3)(vii).
Section 5. Tax applicability.
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.
Section 6. Annual report.
(a) Development of report.--The agency shall publish a
report by September 1, 2020, and every 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 dental loan forgiveness
contracts executed and renewed for eligible applicants.
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(2) The number of defaulted dental loan forgiveness
contracts reported by cause.
(3) The number of dentists participating in the program
reported by institution attended.
(4) The number and type of enforcement actions taken by
the agency.
(b) Submission.--The annual report shall be submitted to:
(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
Public Health and Welfare Committee of the Senate.
(7) The chairperson and minority chairperson of the
Health Committee of the House of Representatives.
Section 7. Regulations.
The agency shall adopt regulations and procedures necessary
to carry out the purposes of this act.
Section 8. Funding.
Loan forgiveness repayments shall be made only to the extent
that funds are appropriated for that purpose and are sufficient
to cover administration of the program. The receipt of a loan
under this act shall not constitute an entitlement derived from
the Commonwealth or a claim on any funds of the Commonwealth.
Section 9. Effective date.
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This act shall take effect in 90 days.
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