THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

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

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

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-

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.

(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

the loan following default under paragraph (3)(viii).

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