PRINTER'S NO. 2728
No. 1987 Session of 2005
INTRODUCED BY LaGROTTA, ALLEN, BARRAR, BEBKO-JONES, BELARDI, BELFANTI, BIANCUCCI, BISHOP, BOYD, BUNT, CALTAGIRONE, CAWLEY, COSTA, CRAHALLA, CREIGHTON, CURRY, DeLUCA, FABRIZIO, FICHTER, FREEMAN, GEIST, GEORGE, GERGELY, GOOD, GOODMAN, GRUCELA, HARHAI, HARPER, HARRIS, JAMES, JOSEPHS, LEACH, LEDERER, LEVDANSKY, MANDERINO, MANN, MARKOSEK, McCALL, McGEEHAN, MICOZZIE, MUNDY, PALLONE, PETRARCA, PISTELLA, READSHAW, REICHLEY, SAINATO, SANTONI, SCAVELLO, SHANER, SOLOBAY, STABACK, SURRA, TANGRETTI, TIGUE, TURZAI, WALKO, WHEATLEY, WILT, YOUNGBLOOD, YUDICHAK AND WANSACZ, SEPTEMBER 27, 2005
REFERRED TO COMMITTEE ON EDUCATION, SEPTEMBER 27, 2005
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 20050H1987B2728 - 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. 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 Facilities 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. 20050H1987B2728 - 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 20050H1987B2728 - 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 (relating to eligibility) 5 shall be eligible to receive up to $3,000 in loan repayments 6 based on the following repayment 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 (relating to amount of loan forgiveness). 27 (2) The applicant shall agree to practice on a full-time 28 basis. 29 (3) The nurse shall permit the agency to monitor 30 compliance with the work requirement. 20050H1987B2728 - 5 -
1 (4) The agency shall certify compliance with the terms 2 of the contract for purposes of receipt by the nurse of loan 3 repayment awards for years subsequent to the initial year of 4 the loan. 5 (5) The contract shall be renewable on an annual basis 6 upon certification by the agency that the nurse has complied 7 with the terms of the contract. 8 (6) Upon the recipient's death or total or permanent 9 disability, the agency shall nullify the work requirement of 10 the recipient. 11 (7) If the board has determined that the recipient has 12 committed an act of gross negligence or has suspended or 13 revoked the license to practice, the agency shall have the 14 authority to terminate the recipient's service in the program 15 and demand repayment of the assistance rendered to date. 16 (8) Loan recipients who fail to begin or complete the 17 obligations contracted for shall reimburse to the 18 Commonwealth all amounts received under this chapter and 19 interest thereon as determined by the agency. Falsification 20 or misrepresentation on an application or in verification of 21 service shall be construed to be a default. Determination as 22 to the time of breach of contract shall be made by the 23 agency. Both the recipient and the agency shall make every 24 effort to resolve conflicts in order to prevent a breach of 25 contract. 26 (b) Contract enforcement.--The agency shall have the 27 authority to seek garnishment of wages for the collection of 28 damages provided for in subsection (a)(8). 29 (c) Ineligibility.--The agency may deny loan forgiveness to 30 a student who is convicted under section 8.2 of the act of 20050H1987B2728 - 6 -
1 January 25, 1966 (1965 P.L.1546, No.541), referred to as the 2 Higher Education Scholarship Law. 3 (d) Fraud.--Any person who knowingly or intentionally 4 procures, obtains or aids another to procure or obtain loan 5 forgiveness under this chapter through fraudulent means shall be 6 disqualified from participation and shall be liable to the 7 agency for an amount equal to three times the amount obtained. 8 (e) Verification.--The agency shall monitor and verify a 9 student's fulfillment of all requirements under this chapter. 10 (f) Tax.--Loan forgiveness repayments received by a student 11 shall not be considered taxable income for purposes of Article 12 III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax 13 Reform Code of 1971. 14 CHAPTER 5 15 SCHOLARSHIP PROGRAM 16 Section 501. Pennsylvania Nurse Scholarship Program. 17 (a) Establishment.--There is hereby established the 18 Pennsylvania Nurse Scholarship Program within the agency, to 19 consist of the Nursing Baccalaureate Degree Scholarship and the 20 Nursing Program Scholarship. 21 (b) Issuance of grants.--The agency may provide scholarship 22 grants to an eligible student who is a resident of this 23 Commonwealth upon confirmation from an approved educational 24 institution that the student is enrolled in an approved course 25 of study. Scholarship grants shall only be for the amount set 26 forth in sections 502(a) (relating to nursing baccalaureate 27 degree scholarship) and 503(a) (relating to nursing program 28 scholarship) and shall only be used for educational costs as 29 determined by the agency. 30 (c) Other funding.--Prior to making a grant under this act, 20050H1987B2728 - 7 -
1 the agency shall first apply Federal Pell Grant and State grants 2 available for educational costs related to an undergraduate 3 program prior to determining the amount of the scholarship 4 grant. 5 (d) Eligibility.--To receive a scholarship grant under this 6 chapter, a student shall meet all of the following requirements: 7 (1) Graduation from a high school in this Commonwealth, 8 or earned general educational development (GED) diploma or 9 the equivalent thereof. 10 (2) Maintenance of domicile in Pennsylvania during the 11 term of the scholarship grants. 12 (3) Compliance with any conditions placed on the 13 scholarship grant by the agency. 14 (4) Maintenance of satisfactory progress as established 15 by the approved educational institution's written policies. 16 (5) Entrance into a written agreement with the agency 17 to: 18 (i) Complete an approved course of study. 19 (ii) Commence employment involving direct patient 20 care with a licensed health care facility in this 21 Commonwealth within one year after completion of an 22 approved course of study for a period of one year for 23 each academic year the student received a scholarship 24 grant under this chapter unless the agency determines 25 that there are extenuating circumstances. 26 (iii) Reimburse the Commonwealth all amounts 27 received under this chapter and interest thereon, as 28 determined by the agency, if the student fails to comply 29 with subparagraphs (i) and (ii). 30 (e) Application.--A student shall apply to the agency for a 20050H1987B2728 - 8 -
1 scholarship grant as prescribed by the agency, to include the 2 provision of all information and documentation required by the 3 agency. The application of a student under 18 years of age shall 4 include the signature of a parent or guardian. 5 (f) Work requirement.--The work requirement under subsection 6 (d)(5)(ii) shall begin after completion of the approved course 7 of study. 8 (g) Termination.--If a student terminates enrollment in the 9 approved educational institution during the academic year or 10 prior to completion of the approved course of study, the 11 approved education institution shall notify the agency in 12 writing and shall return all unused portions of the scholarship 13 grant. Returned amounts shall be used to fund other scholarship 14 grants under this chapter. 15 (h) Transfer.--A scholarship under this chapter is only 16 transferrable to another educational institution if approved by 17 the agency. 18 (i) Limitation.--Grants awarded under the Pennsylvania Nurse 19 Scholarship Program shall be limited to funds appropriated for 20 that purpose. First priority for awarding grants shall be given 21 to renewal applicants. Thereafter, grants shall be awarded on a 22 first-come, first-served basis. 23 (j) Minors.--A person under 18 years of age who otherwise 24 qualifies for scholarship grants under this section shall not be 25 disqualified based upon age. 26 (k) Ineligibility.--The agency may deny a scholarship grant 27 to a student who is convicted under section 8.2 of the act of 28 January 25, 1966 (1965 P.L.1546, No.541), referred to as the 29 Higher Education Scholarship Law. 30 (l) Fraud.--Any person who knowingly or intentionally 20050H1987B2728 - 9 -
1 procures, obtains or aids another to procure or obtain a grant 2 under this chapter through fraudulent means shall be 3 disqualified from participation in the Pennsylvania Nurse 4 Scholarship Program and shall be liable to the agency for an 5 amount equal to three times the amount obtained. 6 Section 502. Nursing Baccalaureate Degree Scholarship. 7 (a) Amount of grants.--The agency shall award a Nursing 8 Baccalaureate Degree Scholarship in the amount of $3,000 per 9 academic year, or a lesser amount following application of 10 Federal and State grants under section 501(c) (relating to 11 Pennsylvania Nurse Scholarship Program) to a student enrolled 12 full time in an approved educational institution pursuing a 13 bachelor's degree in nursing. The student shall take at least 12 14 semester hours, or its equivalent, in an approved course of 15 study. 16 (b) Term of grant.--The grant shall be for a maximum of four 17 academic years. 18 Section 503. Nursing Program Scholarship. 19 (a) Amount of grants.--The agency shall award a Nursing 20 Program Scholarship in the amount of $1,500 per academic year or 21 a lesser amount following application of Federal or State grants 22 under section 501(c) (relating to Pennsylvania Nurse Scholarship 23 Program) to a student enrolled full time in an approved 24 educational institution pursuing an associate's degree, diploma 25 or certificate. A student who is enrolled part time and is 26 pursuing an associate's degree, diploma or certificate is 27 eligible for a grant of 50% of educational costs as determined 28 by the agency. 29 (b) Term of grant.--The grant shall be for a maximum of two 30 academic years or for up to three academic years if the student 20050H1987B2728 - 10 -
1 is enrolled in an approved course of study that, according to 2 the board, requires three academic years to complete. In order 3 to qualify for a grant in a third academic year, the student 4 must be in compliance with section 501(d) and the institution 5 must determine that the student is making satisfactory progress 6 toward completing an associate's degree or the requirements of 7 the diploma or certificate program. 8 Section 504. Administration. 9 (a) Verification.--The agency shall monitor and verify a 10 student's fulfillment of all work requirements under this 11 chapter. 12 (b) Enforcement.--The agency shall enforce repayment of all 13 scholarship grants for a student who does not comply with the 14 provisions of this chapter, to include use of all lawful 15 collection procedures and the use of private collection 16 agencies. 17 (c) Tax.--Scholarship grants received by a student under 18 this chapter shall not be considered taxable income for purposes 19 of Article III of the act of March 4, 1971 (P.L.6, No.2), known 20 as the Tax Reform Code of 1971. 21 (d) Financial assistance.--Scholarship grants received by a 22 student under this chapter shall not be considered financial 23 assistance or appropriations to the approved educational 24 institution. 25 (e) Customized job training.--No funds under this chapter 26 shall be granted to a person enrolled in a customized job 27 training partnership program or continuing education course from 28 a postsecondary educational institution for which an employer is 29 providing over 50% of the financial support, directly or 30 indirectly, and for which the student is not being charged 20050H1987B2728 - 11 -
1 tuition or fees. 2 CHAPTER 49 3 MISCELLANEOUS PROVISIONS 4 Section 4901. Annual report. 5 (a) Development of report.--The agency shall publish a 6 report by September 1, 2006, and every year thereafter for the 7 immediately preceding fiscal year. The report shall include 8 information regarding the operation of the programs established 9 under this act, including: 10 (1) The number of applications received for the Nursing 11 Baccalaureate Degree Scholarship, the Nursing Program 12 Scholarship and the Pennsylvania Nurse Loan Forgiveness 13 Program. 14 (2) The number, type and amount of Nursing Baccalaureate 15 Degree Scholarships and Nursing Program Scholarships awarded. 16 (3) The number and amount of nursing loan forgiveness 17 contracts executed and contracts renewed for licensed 18 practical nurses and registered nurses. 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 participating in the loan 30 forgiveness program, reported by type of institution 20050H1987B2728 - 12 -
1 attended, including four-year educational institutions, 2 community colleges, independent two-year colleges, private 3 licensed schools, hospital-based courses of study and 4 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. 21 (b) Information.--The information to be collected as part of 22 the routine licensure renewal process on nurses shall include, 23 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: 20050H1987B2728 - 13 -
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 or other. 18 (iv) Setting of secondary employer: hospital, long- 19 term care, ambulatory care, physician office, public 20 health care, home health care or other. 21 (v) Type of position: staff nurse, educator, 22 management, utilization/case management, advanced 23 practice or other. 24 (vi) Zip code of primary employer. 25 (vii) Currently unemployed in nursing: student; 26 seeking nursing employment; seeking employment in other 27 health-related field; seeking employment in other field; 28 employed in other health-related field; employed in other 29 field; not seeking nursing employment; not seeking 30 employment or retired. 20050H1987B2728 - 14 -
1 (viii) Intention to remain employed in nursing, one 2 to three years; three to five years; five to ten years or 3 greater than ten years. 4 (5) Licensure, including: 5 (i) State issuing first license. 6 (ii) Year first license issued. 7 (iii) States where current licensure is held. 8 (iv) Name under which license issued or number of 9 license for each state in which nurse is licensed. 10 (c) Duty of Department of Labor and Industry.--It shall be 11 the duty of the Department of Labor and Industry, through its 12 Center for Workforce Information and Analysis, to regularly 13 analyze and publish the information collected by the board in 14 combination with information obtained from employers to better 15 understand the supply and demand for nurses in this Commonwealth 16 and to assist in work force planning and development. 17 Section 4903. Appeals. 18 The provisions of this act shall be subject to 22 Pa. Code 19 Ch. 121 (relating to student financial aid). 20 Section 4904. Regulations. 21 The agency shall adopt regulations and procedures necessary 22 to carry out the purposes of this act. 23 Section 4905. Funding. 24 Loan forgiveness repayments and scholarship awards shall be 25 made to the extent that funds are appropriated by the General 26 Assembly for this act. 27 Section 4906. Effective date. 28 This act shall take effect in 90 days. D5L24MRD/20050H1987B2728 - 15 -