Bill Text: PA SB738 | 2011-2012 | Regular Session | Introduced

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Bill Title: In medical education loan assistance, further providing for definitions and for Pennsylvania Medical Education Loan Assistance Program; and establishing a loan forgiveness program for physician assistants.

Spectrum: Slight Partisan Bill (Republican 5-3)

Status: (Introduced - Dead) 2011-03-04 - Referred to EDUCATION [SB738 Detail]

Download: Pennsylvania-2011-SB738-Introduced.html

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PRINTER'S NO. 751
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 738 Session of2011
INTRODUCED BY RAFFERTY, BROWNE, LEACH, STACK, ERICKSON, ALLOWAY, COSTA AND GREENLEAF, MARCH 4, 2011
REFERRED TO EDUCATION, MARCH 4, 2011
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," in medical education loan assistance,
further providing for definitions and for Pennsylvania
Medical Education Loan Assistance Program; and establishing a
loan forgiveness program for physician assistants.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2203-A of the act of March 10, 1949
(P.L.30, No.14), known as the Public School Code of 1949, is
amended by adding a definition to read:
Section 2203-A. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Physician assistant." An individual licensed to practice as
a physician assistant under the act of October 5, 1978
(P.L.1109, No. 261), known as the Osteopathic Medical Practice
Act, or the act of December 20, 1985 (P.L.457, No.112), known as
the Medical Practice Act of 1985.
* * *
Section 2. Sections 2211-A and 2213-A of the act, added
October 30, 2001 (P.L.828, No.83), are amended to read:
Section 2211-A. Pennsylvania Medical Education Loan Assistance
Program.
The agency shall establish and administer the Pennsylvania
Medical Education Loan Assistance Program as set forth in
sections 2212-A and 2213-A to provide financial assistance to
individuals who acquire the required degree or diploma in
medicine, professional nursing, biomedicine or life sciences
and the education required by law for licensure as physician
assistants and to recruit these individuals to practice their
professions in Pennsylvania.
Section 2213-A. Loan forgiveness program.
(a) Establishment of program.--
(1) The agency shall administer a loan forgiveness
program for nursing school 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 professional nursing in this
Commonwealth upon attainment of the required license.
(2) The agency shall administer a loan forgiveness
program for applicants enrolled at schools in this
Commonwealth to become licensed physician assistants on a
Statewide basis or applicants who graduated from schools in
this Commonwealth from January 1, 2005, and are employed as
licensed physician assistants. The agency may provide loan
forgiveness as provided in subsection (c) for recipients of
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loans who by contract with the agency agree to practice as
physician assistants in this Commonwealth as provided in
subsection (c).
(b) Loan forgiveness for nursing.--Agency-administered,
federally insured student loans for higher education provided to
a nursing school applicant may be forgiven by the agency as
follows:
(1) The agency may forgive 50% of the loan, not to
exceed $50,000, if a loan recipient enters into a contract
with the agency that requires the recipient upon successful
completion of an approved nursing program and licensure as a
registered nurse to practice nursing in this Commonwealth for
a period of not less than three consecutive years.
(2) Loan forgiveness awards made pursuant to paragraph
(1) shall be forgiven over a period of three years at an
annual rate of 33 1/3% of the award and shall be made from
funds appropriated for this purpose.
(3) The contract entered into with the agency pursuant
to paragraph (1) shall be considered a contract with the
Commonwealth and shall include the following terms:
(i) An unlicensed recipient shall apply for a
registered nurse's license to practice in this
Commonwealth at the earliest practicable opportunity upon
successfully completing a degree in nursing.
(ii) Within six months after licensure, a recipient
shall engage in the practice of nursing in this
Commonwealth according to the terms of the loan
forgiveness award.
(iii) The recipient shall agree to practice in a
licensed health care facility in the provision of direct
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patient care on a full-time basis.
(iv) The recipient shall permit the agency to
determine compliance with the work requirement for nurses
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
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) Loan recipients who fail to begin or complete
the obligations contracted for shall pay to the agency
the amount of the loan received under the terms of the
contract pursuant to this section. Providing false
information or misrepresentation on an application or
verification of service shall be deemed a default.
Determination as to the time of default shall be made by
the agency.
(4) Notwithstanding 42 Pa.C.S. § 8127 (relating to
personal earnings exempt from process), the agency may seek
garnishment of wages in order to collect the amount of the
loan following default under paragraph (3)(vii).
(c) Loan forgiveness for physician assistants.--Agency-
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administered, federally insured student loans for higher
education provided to an applicant enrolled at a school in this
Commonwealth to become a licensed physician assistant in this
Commonwealth may be forgiven by the agency as follows:
(1) The agency may forgive 50% of the loan, if a loan
recipient enters into a contract with the agency that
requires the recipient:
(i) upon successful completion of an approved
physician assistant program and licensure as a physician
assistant to practice in this Commonwealth for a period
of not less than seven consecutive years; or
(ii) who graduated after January 1, 2005, from such
program and is employed as a licensed physician assistant
in this Commonwealth to practice in this Commonwealth for
a period of not less than seven consecutive years.
(2) Loan forgiveness awards made pursuant to paragraph
(1) shall be forgiven over a period of ten years at an annual
rate of 10% of the award and shall be made from funds
appropriated for this purpose.
(3) The contract entered into with the agency pursuant
to paragraph (1) shall be considered a contract with the
Commonwealth and shall include the following terms:
(i) An unlicensed recipient shall apply for a
physician assistant license to practice in this
Commonwealth at the earliest practicable opportunity upon
successfully completing a relevant degree.
(ii) Within six months after licensure, a recipient
shall be employed as a physician assistant in this
Commonwealth according to the terms of the loan
forgiveness award.
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(iii) The recipient shall agree to practice in a
licensed health care facility in the provision of direct
patient care on a full-time basis.
(iv) The recipient shall donate 40 hours of
volunteer time over the term of the contract.
(v) The recipient shall permit the agency to
determine compliance with the terms of the contract.
(vi) Upon the recipient's death or total or
permanent disability, the agency shall nullify the
service obligation of the recipient.
(vii) 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
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.
(viii) Loan recipients who fail to begin or complete
the obligations contracted for shall pay to the agency
the amount of the loan received under the terms of the
contract pursuant to this section. Providing false
information or misrepresentation on an application or
verification of service shall be deemed a default.
Determination as to the time of default shall be made by
the agency.
(4) Notwithstanding 42 Pa.C.S. § 8127, the agency may
seek garnishment of wages in order to collect the amount of
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the loan following default under paragraph (3)(viii).
Section 3. This act shall take effect in 60 days.
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