PRINTER'S NO. 1898
No. 1552 Session of 2001
INTRODUCED BY LaGROTTA, COY, BELARDI, SAINATO, WANSACZ, LEDERER,
WALKO, CURRY, STERN, BEBKO-JONES, CALTAGIRONE, CAPPABIANCA,
SANTONI, BENNINGHOFF, LAUGHLIN, MELIO, WATSON, CAPPELLI,
McCALL, MARKOSEK, J. TAYLOR, SOLOBAY, GRUCELA, CIVERA,
BROWNE, DALEY, KIRKLAND, HARHAI, PISTELLA, DeLUCA, MANDERINO,
J. WILLIAMS, JAMES, M. BAKER, BUTKOVITZ, L. I. COHEN,
MACKERETH, STURLA, THOMAS, FREEMAN, HERMAN, READSHAW,
JOSEPHS, SAYLOR, SHANER, FLICK, PETRARCA, YUDICHAK, STABACK,
MUNDY, BELFANTI, C. WILLIAMS, WOGAN, SURRA, HENNESSEY,
WOJNAROSKI, CORRIGAN, CREIGHTON AND SCHRODER, MAY 8, 2001
REFERRED TO COMMITTEE ON HEALTH AND HUMAN SERVICES, MAY 8, 2001
AN ACT
1 Establishing a nursing loan forgiveness and scholarship program.
2 TABLE OF CONTENTS
3 Chapter 1. Preliminary Provisions
4 Section 101. Short title.
5 Section 102. Purpose.
6 Section 103. Definitions.
7 Chapter 3. Pennsylvania Nurse Loan Forgiveness Program
8 Section 301. Establishment.
9 Section 302. Repayment assistance.
10 Section 303. Eligibility.
11 Section 304. Amount of loan forgiveness.
12 Section 305. Administration.
13 Chapter 5. Scholarship Program
1 Section 501. Pennsylvania Nurse Scholarship Program.
2 Section 502. Nursing Baccalaureate Degree Scholarship.
3 Section 503. Nursing Program Scholarship.
4 Section 504. Administration.
5 Chapter 49. Miscellaneous Provisions
6 Section 4901. Annual report.
7 Section 4902. Minimum nursing data set.
8 Section 4903. Appeals.
9 Section 4904. Regulations.
10 Section 4905. Funding.
11 Section 4906. Effective date.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 CHAPTER 1
15 PRELIMINARY PROVISIONS
16 Section 101. Short title.
17 This act shall be known and may be cited as the Nursing Loan
18 Forgiveness and Scholarship Act.
19 Section 102. Purpose.
20 The purpose of this act is to provide an incentive to
21 Pennsylvania students to pursue higher education and training in
22 nursing which is essential to the delivery of quality health
23 care services in this Commonwealth.
24 Section 103. Definitions.
25 The following words and phrases when used in this act shall
26 have the meanings given to them in this section unless the
27 context clearly indicates otherwise:
28 "Agency." The Pennsylvania Higher Education Assistance
29 Agency.
30 "Approved course of study." A program or curriculum offered
20010H1552B1898 - 2 -
1 by a postsecondary educational institution that provides
2 instruction in nursing and has been approved by the State Board
3 of Nursing.
4 "Approved educational institution." A postsecondary
5 educational institution located in this Commonwealth that is
6 authorized to provide approved courses of study and diplomas or
7 certificates approved by the Pennsylvania Higher Education
8 Assistance Agency as an institution in which students may enroll
9 to participate in the Pennsylvania Nurse Scholarship Program.
10 "Board." The State Board of Nursing of the Commonwealth.
11 "Licensed health care facility." A health care facility that
12 is enrolled in the Commonwealth's Medical Assistance program and
13 is licensed pursuant to the act of July 19, 1979 (P.L.130,
14 No.48), known as the Health Care Facility Act, or Article X of
15 the act of June 13, 1967 (P.L.31, No.21), known as the Public
16 Welfare Code.
17 "Licensed practical nurse." An individual licensed under the
18 laws of this Commonwealth to practice practical nursing.
19 "Nurse." A licensed practical or registered nurse.
20 "Registered nurse." An individual licensed under the laws of
21 this Commonwealth to practice professional nursing.
22 "Student." An individual domiciled in this Commonwealth who
23 attends or is about to attend a postsecondary educational
24 institution located in this Commonwealth.
25 "Work requirement." Postgraduate, full-time employment in
26 direct patient care with a licensed health care facility located
27 in this Commonwealth in an occupation related to an approved
28 course of study under this act. The term does not include a paid
29 student internship, a paid fellowship, volunteer service or
30 employment before graduation.
20010H1552B1898 - 3 -
1 CHAPTER 3
2 PENNSYLVANIA NURSE LOAN FORGIVENESS PROGRAM
3 Section 301. Establishment.
4 There is hereby established in this Commonwealth the
5 Pennsylvania Nurse Loan Forgiveness Program. The Pennsylvania
6 Nurse Loan Forgiveness Program shall be for repayment of student
7 loans for nurses providing direct patient care in licensed
8 health care facilities and shall be administered by the agency.
9 Section 302. Repayment assistance.
10 The agency may provide assistance for the repayment of an
11 agency-administered student loan for education at an institution
12 of higher learning received by a nurse. Repayment assistance may
13 not be made for a loan that is in default at the time of the
14 application or for an agency-administered loan being repaid
15 through any other loan repayment assistance program. Repayment
16 shall be made by the agency to the lending institution on behalf
17 of the loan recipient.
18 Section 303. Eligibility.
19 Consideration for loan repayment assistance shall be as
20 follows:
21 (1) The applicant must be an individual who:
22 (i) has completed an approved course of study;
23 (ii) has been licensed by the board as a licensed
24 practical nurse or a registered nurse;
25 (iii) is employed full time as a nurse in the
26 provision of direct patient care in a licensed health
27 care facility; and
28 (iv) is a resident of this Commonwealth.
29 (2) An applicant who is qualified under paragraph (1)
30 must agree to practice in a licensed health care facility as
20010H1552B1898 - 4 -
1 a nurse for not less than three years.
2 Section 304. Amount of loan forgiveness.
3 (a) Licensed practical nurse.--A licensed practical nurse
4 who is eligible under section 303 shall be eligible to receive
5 up to $3,000 in loan repayments based on the following repayment
6 schedule:
7 (1) Year one, 30%.
8 (2) Year two, 35%.
9 (3) Year three, 35%.
10 (b) Registered nurse.--A registered nurse who is eligible
11 under section 303 shall be eligible to receive up to $20,000 in
12 loan repayments based on the following repayment schedule:
13 (1) Year one, 25%.
14 (2) Year two, 25%.
15 (3) Year three, 25%.
16 (4) Year four, 25%.
17 Section 305. Administration.
18 (a) Contracts.--A recipient of loan repayment assistance
19 shall enter into a contract with the agency which shall be
20 considered a contract with the Commonwealth. The contract shall
21 include, but not be limited to, the following terms and
22 conditions:
23 (1) The applicant shall agree to practice not less than
24 three full years in a licensed health care facility at a
25 repayment assistance schedule as provided in section 304.
26 (2) The applicant shall agree to practice on a full-time
27 basis.
28 (3) The nurse shall permit the agency to monitor
29 compliance with the work requirement.
30 (4) The agency shall certify compliance with the terms
20010H1552B1898 - 5 -
1 of the contract for purposes of receipt by the nurse of loan
2 repayment awards for years subsequent to the initial year of
3 the loan.
4 (5) The contract shall be renewable on an annual basis
5 upon certification by the agency that the nurse has complied
6 with the terms of the contract.
7 (6) Upon the recipient's death or total or permanent
8 disability, the agency shall nullify the work requirement of
9 the recipient.
10 (7) If the board has determined that the recipient has
11 committed an act of gross negligence or has suspended or
12 revoked the license to practice, the agency shall have the
13 authority to terminate the recipient's service in the program
14 and demand repayment of the assistance rendered to date.
15 (8) Loan recipients who fail to begin or complete the
16 obligations contracted for shall reimburse to the
17 Commonwealth all amounts received under this chapter and
18 interest thereon as determined by the agency. Falsification
19 or misrepresentation on an application or in verification of
20 service shall be construed to be a default. Determination as
21 to the time of breach of contract shall be made by the
22 agency. Both the recipient and the agency shall make every
23 effort to resolve conflicts in order to prevent a breach of
24 contract.
25 (b) Contract enforcement.--The agency shall have the
26 authority to seek garnishment of wages for the collection of
27 damages provided for in subsection (a)(8).
28 (c) Ineligibility.--The agency may deny loan forgiveness to
29 a student who is convicted under section 8.2 of the act of
30 January 25, 1966 (1965 P.L.1546, No.541).
20010H1552B1898 - 6 -
1 (d) Fraud.--Any person who knowingly or intentionally
2 procures, obtains or aids another to procure or obtain loan
3 forgiveness under this chapter through fraudulent means shall be
4 disqualified from participation and shall be liable to the
5 agency for an amount equal to three times the amount obtained.
6 (e) Verification.--The agency shall monitor and verify a
7 student's fulfillment of all requirements under this chapter.
8 (f) Tax.--Loan forgiveness repayments received by a student
9 shall not be considered taxable income for purposes of Article
10 III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
11 Reform Code of 1971.
12 CHAPTER 5
13 SCHOLARSHIP PROGRAM
14 Section 501. Pennsylvania Nurse Scholarship Program.
15 (a) Establishment.--There is hereby established the
16 Pennsylvania Nurse Scholarship Program within the agency, to
17 consist of the Nursing Baccalaureate Degree Scholarship and the
18 Nursing Program Scholarship.
19 (b) Issuance of grants.--The agency may provide scholarship
20 grants to an eligible student who is a resident of this
21 Commonwealth upon confirmation from an approved educational
22 institution that the student is enrolled in an approved course
23 of study. Scholarship grants shall only be for the amount set
24 forth in sections 502(a) and 503(a) and shall only be used for
25 educational costs as determined by the agency.
26 (c) Other funding.--Prior to making a grant under this act,
27 the agency shall first apply Federal Pell Grant and State grants
28 available for educational costs related to an undergraduate
29 program prior to determining the amount of the scholarship
30 grant.
20010H1552B1898 - 7 -
1 (d) Eligibility.--To receive a scholarship grant under this
2 chapter, a student shall meet all of the following requirements:
3 (1) Graduation from a high school in this Commonwealth,
4 or earned general educational development (GED) diploma or
5 the equivalent thereof.
6 (2) Maintenance of domicile in Pennsylvania during the
7 term of the scholarship grants.
8 (3) Compliance with any conditions placed on the
9 scholarship grant by the agency.
10 (4) Maintenance of satisfactory progress as established
11 by the approved educational institution's written policies.
12 (5) Enter into a written agreement with the agency to:
13 (i) Complete an approved course of study.
14 (ii) Commence employment involving direct patient
15 care with a licensed health care facility in this
16 Commonwealth within one year after completion of an
17 approved course of study for a period of one year for
18 each academic year the student received a scholarship
19 grant under this chapter unless the agency determines
20 that there are extenuating circumstances.
21 (iii) Reimburse the Commonwealth all amounts
22 received under this chapter and interest thereon, as
23 determined by the agency, if the student fails to comply
24 with subparagraphs (i) and (ii).
25 (e) Application.--A student shall apply to the agency for a
26 scholarship grant as prescribed by the agency, to include the
27 provision of all information and documentation required by the
28 agency. The application of a student under 18 years of age shall
29 include the signature of a parent or guardian.
30 (f) Work requirement.--The work requirement under subsection
20010H1552B1898 - 8 -
1 (d)(5)(ii) shall begin after completion of the approved course
2 of study.
3 (g) Termination.--If a student terminates enrollment in the
4 approved educational institution during the academic year or
5 prior to completion of the approved course of study, the
6 approved education institution shall notify the agency in
7 writing and shall return all unused portions of the scholarship
8 grant. Returned amounts shall be used to fund other scholarship
9 grants under this chapter.
10 (h) Transfer.--A scholarship under this chapter is only
11 transferrable to another educational institution if approved by
12 the agency.
13 (i) Limitation.--Grants awarded under the Pennsylvania Nurse
14 Scholarship Program shall be limited to funds appropriated for
15 that purpose. First priority for awarding grants shall be given
16 to renewal applicants. Thereafter, grants shall be awarded on a
17 first-come, first-served basis.
18 (j) Minors.--A person under 18 years of age who otherwise
19 qualifies for scholarship grants under this section shall not be
20 disqualified based upon age.
21 (k) Ineligibility.--The agency may deny a scholarship grant
22 to a student who is convicted under section 8.2 of the act of
23 January 25, 1966 (1965 P.L.1546, No.541), known as Providing
24 Scholarships to Qualified Students.
25 (l) Fraud.--Any person who knowingly or intentionally
26 procures, obtains or aids another to procure or obtain a grant
27 under this chapter through fraudulent means shall be
28 disqualified from participation in the Pennsylvania Nurse
29 Scholarship Program and shall be liable to the agency for an
30 amount equal to three times the amount obtained.
20010H1552B1898 - 9 -
1 Section 502. Nursing Baccalaureate Degree Scholarship.
2 (a) Amount of grants.--The agency shall award a Nursing
3 Baccalaureate Degree Scholarship in the amount of $3,000 per
4 academic year, or a lesser amount following application of
5 Federal and State grants under section 501(c) to a student
6 enrolled full time in an approved educational institution
7 pursuing a bachelor's degree in nursing. The student shall take
8 at least 12 semester hours, or its equivalent, in an approved
9 course of study.
10 (b) Term of grant.--The grant shall be for a maximum of four
11 academic years.
12 Section 503. Nursing Program Scholarship.
13 (a) Amount of grants.--The agency shall award a Nursing
14 Program Scholarship in the amount of $1,500 per academic year or
15 a lesser amount following application of Federal or State grants
16 under section 501(c) to a student enrolled full time in an
17 approved educational institution pursuing an associate's degree,
18 diploma or certificate. A student who is enrolled part time and
19 is pursuing an associate's degree, diploma or certificate is
20 eligible for a grant of 50% of educational costs as determined
21 by the agency.
22 (b) Term of grant.--The grant shall be for a maximum of two
23 academic years or for up to three academic years if the student
24 is enrolled in an approved course of study that, according to
25 the board, requires three academic years to complete. In order
26 to qualify for a grant in a third academic year, the student
27 must be in compliance with section 501(d) and the institution
28 must determine that the student is making satisfactory progress
29 toward completing an associate's degree or the requirements of
30 the diploma or certificate program.
20010H1552B1898 - 10 -
1 Section 504. Administration.
2 (a) Verification.--The agency shall monitor and verify a
3 student's fulfillment of all work requirements under this
4 chapter.
5 (b) Enforcement.--The agency shall enforce repayment of all
6 scholarship grants for a student who does not comply with the
7 provisions of this chapter, to include use of all lawful
8 collection procedures and the use of private collection
9 agencies.
10 (c) Tax.--Scholarship grants received by a student under
11 this chapter shall not be considered taxable income for purposes
12 of Article III of the act of March 4, 1971 (P.L.6, No.2), known
13 as the Tax Reform Code of 1971.
14 (d) Financial assistance.--Scholarship grants received by a
15 student under this chapter shall not be considered financial
16 assistance or appropriations to the approved educational
17 institution.
18 (e) Customized job training.--No funds under this chapter
19 shall be granted to a person enrolled in a customized job
20 training partnership program or continuing education course from
21 a postsecondary educational institution for which an employer is
22 providing over 50% of the financial support, directly or
23 indirectly, and for which the student is not being charged
24 tuition or fees.
25 CHAPTER 49
26 MISCELLANEOUS PROVISIONS
27 Section 4901. Annual report.
28 (a) Development of report.--The agency shall publish a
29 report by September 1, 2002, and every year thereafter for the
30 immediately preceding fiscal year. The report shall include
20010H1552B1898 - 11 -
1 information regarding the operation of the programs established
2 under this act, including:
3 (1) The number of applications received for the Nursing
4 Baccalaureate Degree Scholarship, the Pennsylvania Nursing
5 Program Scholarship and the Pennsylvania Nursing Loan
6 Forgiveness Program.
7 (2) The number, type and amount of Nursing Baccalaureate
8 Degree Scholarships and Nursing Program Scholarships awarded.
9 (3) The number and amount of Nursing Loan Forgiveness
10 contracts executed and contracts renewed for licensed
11 practical nurses and registered nurses.
12 (4) The number of scholarship grantees who withdraw from
13 the scholarship programs, reported by cause.
14 (5) The number of defaulted loan forgiveness program
15 contracts, reported by cause.
16 (6) The number of full-time and part-time students
17 receiving scholarships, reported by type of institution
18 attending, including four-year educational institutions,
19 community colleges, independent two-year colleges, private
20 licensed schools, hospital-based courses of study and
21 certificate programs.
22 (7) The number of nurses participating in the loan
23 forgiveness program, reported by type of institution
24 attended, including four-year educational institutions,
25 community colleges, independent two-year colleges, private
26 licensed schools, hospital-based courses of study and
27 certificate programs.
28 (8) The number and type of enforcement actions taken by
29 the agency.
30 (b) Submission.--The annual report shall be submitted to the
20010H1552B1898 - 12 -
1 Governor, the chairman and minority chairman of the
2 Appropriations Committee of the Senate, the chairman and
3 minority chairman of the Appropriations Committee of the House
4 of Representatives, the chairman and minority chairman of the
5 Education Committee of the Senate, the chairman and minority
6 chairman of the Public Health and Welfare Committee of the
7 Senate and the chairman and minority chairman of the Health and
8 Human Services Committee of the House of Representatives.
9 Section 4902. Minimum nursing data set.
10 (a) Duty of State Board of Nursing.--It shall be the duty of
11 the State Board of Nursing to collect, store and make available
12 nursing work force information regarding all of the categories
13 of nurses.
14 (b) Information.--The information to be collected as part of
15 the routine licensure renewal process on nurses shall include,
16 but not be limited to:
17 (1) Demographics, including:
18 (i) Year of birth.
19 (ii) Ethnicity, Hispanic/Latino; Native Americans;
20 Alaskan Native; Asian; Pacific Islander; African
21 American/Black, not of Hispanic origin; White, not of
22 Hispanic origin.
23 (iii) Zip code of residence.
24 (2) Basic education, including:
25 (i) Program type, LPN, hospital-based, ADN, BSN and
26 MS.
27 (ii) Year graduated.
28 (iii) State in which basic program is located.
29 (3) Highest education attained, including:
30 (i) Program type, LPH, hospital-based, AA/AND,
20010H1552B1898 - 13 -
1 BS/BSN, MS/MSN and PhD/EdD.
2 (ii) Year graduated.
3 (iii) Preparation as Advanced Nurse Practitioner,
4 Nurse Practitioner, Nurse Midwife, Clinical Nurse
5 Specialist and Nurse Anesthetist.
6 (4) Employment, including:
7 (i) Current employment.
8 (ii) Number of hours worked in typical week.
9 (iii) Setting of primary employer, hospital, long-
10 term care, ambulatory care, physician office, public
11 health, home health or other.
12 (iv) Setting of secondary employer, hospital, long-
13 term care, ambulatory care, physician office, public
14 health, home health or other.
15 (v) Type of position, staff nurse, educator,
16 management, utilization/case management, advanced
17 practice or other.
18 (vi) Zip code of primary employer.
19 (vii) Currently unemployed in nursing, student,
20 seeking nursing employment, seeking employment in other
21 health-related field; seeking employment in other field;
22 employed in other health-related field, employed in other
23 field, not seeking nursing employment; not seeking
24 employment or retired.
25 (viii) Intention to remain employed in nursing, one
26 to three years; three to five years; five to ten years or
27 greater than ten years.
28 (5) Licensure, including:
29 (i) State issuing first license.
30 (ii) Year first license issued.
20010H1552B1898 - 14 -
1 (iii) States where current licensure is held.
2 (iv) Name under which license issued or number of
3 license for each state in which nurse is licensed.
4 (c) Duty of Department of Labor and Industry.--It shall be
5 the duty of the Department of Labor and Industry, through its
6 Center for Workforce Information and Analysis, to regularly
7 analyze and publish the information collected by the State Board
8 of Nursing in combination with information obtained from
9 employers to better understand the supply and demand for nurses
10 in Pennsylvania and to assist in work force planning and
11 development.
12 Section 4903. Appeals.
13 The provisions of this act shall be subject to 22 Pa. Code
14 Ch. 121 (relating to student financial aid).
15 Section 4904. Regulations.
16 The agency shall adopt regulations and procedures necessary
17 to carry out the purposes of this act.
18 Section 4905. Funding.
19 Loan forgiveness repayments and scholarship awards shall be
20 made to the extent that funds are appropriated by the General
21 Assembly for this act.
22 Section 4906. Effective date.
23 This act shall take effect in 90 days.
C23L35MSP/20010H1552B1898 - 15 -