Bill Text: IA SSB3168 | 2017-2018 | 87th General Assembly | Introduced


Bill Title: A bill for an act relating to educational assistance programs administered by the college student aid commission for certain physicians, nurses, physician assistants, advanced registered nurse practitioners, doctors of nursing practice, and nurse educators.

Spectrum: Committee Bill

Status: (N/A - Dead) 2018-02-13 - Subcommittee recommends amendment and passage. [SSB3168 Detail]

Download: Iowa-2017-SSB3168-Introduced.html
Senate Study Bill 3168 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON HUMAN RESOURCES BILL BY CHAIRPERSON SEGEBART) A BILL FOR An Act relating to educational assistance programs administered 1 by the college student aid commission for certain 2 physicians, nurses, physician assistants, advanced 3 registered nurse practitioners, doctors of nursing practice, 4 and nurse educators. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 6156XC (2) 87 kh/jh
S.F. _____ Section 1. Section 261.113, subsection 5, paragraph a, Code 1 2018, is amended to read as follows: 2 a. (1) The amount of loan repayment an eligible student who 3 enters into an agreement pursuant to subsection 3 prior to July 4 1, 2018, shall receive if in compliance with obligations under 5 the agreement shall not exceed forty thousand dollars annually 6 for an eligible loan. Payments under this section and pursuant 7 to agreements entered into prior to July 1, 2018, may be made 8 for each year of eligible practice during a period of five 9 consecutive years and shall not exceed a total of two hundred 10 thousand dollars. 11 (2) The amount of loan repayment an eligible student who 12 enters into an agreement pursuant to subsection 3 on or after 13 July 1, 2018, shall receive if in compliance with obligations 14 under the agreement shall not exceed twenty thousand dollars 15 annually for an eligible loan. Payments under this section and 16 pursuant to agreements entered into on or after July 1, 2018, 17 may be made for each year of eligible practice during a period 18 of five consecutive years and shall not exceed a total of one 19 hundred thousand dollars. 20 Sec. 2. Section 261.114, subsection 3, unnumbered paragraph 21 1, Code 2018, is amended to read as follows: 22 A program agreement shall be entered into by an eligible 23 student and the commission when the eligible student begins 24 the final year of study in an academic program leading to 25 eligibility for licensure as a nurse practitioner or physician 26 assistant. The commission shall not enter into any new 27 program agreement under this section on or after July 1, 2018. 28 Under the agreement, to receive loan repayments pursuant to 29 subsection 5 , an eligible student shall agree to and shall 30 fulfill all of the following requirements: 31 Sec. 3. Section 261.114, subsection 8, Code 2018, is amended 32 by striking the subsection. 33 Sec. 4. Section 261.114, subsection 9, Code 2018, is amended 34 to read as follows: 35 -1- LSB 6156XC (2) 87 kh/jh 1/ 9
S.F. _____ 9. Postponement and satisfaction Satisfaction of service 1 obligation. 2 a. The obligation to engage in practice in accordance with 3 subsection 3 shall be postponed for the following purposes: 4 (1) Active duty status in the armed forces, the armed forces 5 military reserve, or the national guard. 6 (2) Service in volunteers in service to America. 7 (3) Service in the federal peace corps. 8 (4) A period of service commitment to the United States 9 public health service commissioned corps. 10 (5) A period of religious missionary work conducted by an 11 organization exempt from federal income taxation pursuant to 12 section 501(c)(3) of the Internal Revenue Code . 13 (6) Any period of temporary medical incapacity during which 14 the person obligated is unable, due to a medical condition, to 15 engage in full-time practice as required under subsection 3 . 16 b. Except for a postponement under paragraph “a” , 17 subparagraph (6), an obligation to engage in practice under an 18 agreement entered into pursuant to subsection 3 , shall not be 19 postponed for more than two years from the time the full-time 20 practice was to have commenced under the agreement. 21 c. a. An obligation to engage in full-time practice under 22 an agreement entered into pursuant to subsection 3 shall be 23 considered satisfied when any of the following conditions are 24 met: 25 (1) The terms of the agreement are completed. 26 (2) The person who entered into the agreement dies. 27 (3) The person who entered into the agreement, due to a 28 permanent disability, is unable to practice as an advanced 29 registered nurse practitioner or physician assistant. 30 d. b. If a loan repayment recipient fails to fulfill 31 the obligation to engage in practice in accordance with 32 subsection 3 , the recipient shall be subject to repayment to 33 the commission of the loan amount plus interest as specified 34 by rule. A loan repayment recipient who fails to meet the 35 -2- LSB 6156XC (2) 87 kh/jh 2/ 9
S.F. _____ requirements of the obligation to engage in practice in 1 accordance with subsection 3 may also be subject to repayment 2 of moneys advanced by the service commitment area as provided 3 in any agreement with the service commitment area. 4 Sec. 5. Section 261.114, subsection 10, Code 2018, is 5 amended to read as follows: 6 10. Trust fund established. A rural Iowa advanced 7 registered nurse practitioner and physician assistant trust 8 fund is created in the state treasury as a separate fund under 9 the control of the commission. The commission shall remit all 10 repayments made pursuant to this section to the rural Iowa 11 advanced registered nurse practitioner and physician assistant 12 trust fund. All moneys deposited or paid into the trust fund 13 are appropriated and made available to the commission to be 14 used for meeting the requirements of this section . Moneys in 15 the fund up to the total amount that an eligible student may 16 receive for an eligible loan in accordance with this section 17 and upon fulfilling the requirements of subsection 3 shall be 18 considered encumbered for the duration of the agreement entered 19 into pursuant to subsection 3 . Notwithstanding section 8.33 , 20 any balance in the fund on June 30 of each fiscal year shall not 21 revert to the general fund of the state, but shall be available 22 for purposes of this section in subsequent fiscal years. 23 Notwithstanding section 8.33, any balance in the fund on June 24 30, 2023, shall not revert to the general fund of the state but 25 shall be transferred to the health care loan repayment fund 26 established pursuant to section 261.116 to be used for purposes 27 of the health care loan repayment program. 28 Sec. 6. Section 261.114, Code 2018, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION . 10A. This section is repealed July 1, 2023. 31 Sec. 7. Section 261.116, Code 2018, is amended to read as 32 follows: 33 261.116 Registered nurse and nurse educator Health care loan 34 forgiveness repayment program. 35 -3- LSB 6156XC (2) 87 kh/jh 3/ 9
S.F. _____ 1. Definitions. For purposes of this section, unless the 1 context otherwise requires: 2 a. “Advanced registered nurse practitioner” means a person 3 licensed as a registered nurse under chapter 152 or 152E who 4 is licensed by the board of nursing as an advanced registered 5 nurse practitioner. 6 b. “Nurse educator” means a registered nurse who holds 7 a master’s degree or doctorate degree and is employed by a 8 community college, an accredited private institution, or an 9 institution of higher education governed by the state board 10 of regents as a faculty member to teach nursing at a nursing 11 education program approved by the board of nursing pursuant to 12 section 152.5. 13 c. “Physician assistant” means a person licensed as a 14 physician assistant under chapter 148C. 15 d. “Qualified student loan” means a loan that was made, 16 insured, or guaranteed under Tit. IV of the federal Higher 17 Education Act of 1965, as amended, or under Tit. VII or VIII 18 of the federal Public Health Service Act, as amended, directly 19 to the borrower for attendance at an approved postsecondary 20 educational institution. 21 e. “Service commitment area” means a city in Iowa with a 22 population of less than twenty-six thousand that is located 23 more than fifty miles from a city with a population of fifty 24 thousand or more. 25 2. Program established. A registered nurse and nurse 26 educator health care loan forgiveness repayment program 27 is established to be administered by the commission . The 28 program shall consist of loan forgiveness for eligible 29 federally guaranteed for purposes of repaying the qualified 30 student loans for of registered nurses , advanced registered 31 nurse practitioners, doctors of nursing practice, physician 32 assistants, and nurse educators who practice full-time in a 33 service commitment area or teach in this state , as appropriate, 34 and who are selected for the program in accordance with this 35 -4- LSB 6156XC (2) 87 kh/jh 4/ 9
S.F. _____ section . For purposes of this section , unless the context 1 otherwise requires, “nurse educator” means a registered nurse 2 who holds a master’s degree or doctorate degree and is employed 3 as a faculty member who teaches nursing as provided in 655 4 IAC 2.6 (152) at a community college, an accredited private 5 institution, or an institution of higher education governed by 6 the state board of regents. An applicant who is a member of 7 the Iowa national guard is exempt from the service commitment 8 area requirement, but shall submit an affidavit verifying the 9 applicant is practicing full-time in this state. 10 2. 3. Application requirements. Each applicant for loan 11 forgiveness repayment shall, in accordance with the rules of 12 the commission, do the following: 13 a. Complete and file an application for registered nurse 14 or nurse educator loan forgiveness repayment . The individual 15 shall be responsible for the prompt submission of any 16 information required by the commission. 17 b. File a new application and submit information as 18 required by the commission annually on the basis of which 19 the applicant’s eligibility for the renewed loan forgiveness 20 repayment will be evaluated and determined. 21 c. Complete and return, on a form approved by the 22 commission, an affidavit of practice verifying that the 23 applicant is a registered nurse , an advanced registered nurse 24 practitioner, a doctor of nursing practice, or a physician 25 assistant who is practicing full-time in a service commitment 26 area in this state or is a nurse educator teaching at a 27 community college, an accredited private institution, or an 28 institution of higher learning governed by the state board of 29 regents who teaches full-time in this state . If practice in a 30 service commitment area is required as a condition of receiving 31 loan repayment, the affidavit shall specify the service 32 commitment area in which the applicant is practicing full-time. 33 3. 4. Loan repayment amounts. 34 a. The annual amount of registered nurse loan forgiveness 35 -5- LSB 6156XC (2) 87 kh/jh 5/ 9
S.F. _____ for a registered nurse who completes a course of study, which 1 leads to a baccalaureate or associate degree of nursing, 2 diploma in nursing, or a graduate or equivalent degree in 3 nursing, and who practices in this state, repayment provided to 4 a recipient under this section shall not exceed the resident 5 tuition rate established for institutions of higher learning 6 governed by the state board of regents for the first year 7 following the registered nurse’s graduation from a nursing 8 education program approved by the board of nursing pursuant to 9 section 152.5 six thousand dollars , or twenty percent of the 10 registered nurse’s total federally guaranteed Stafford loan 11 amount under the federal family education loan program or the 12 federal direct loan program, including principal and interest 13 recipient’s total qualified student loan , whichever amount is 14 less. A registered nurse shall be recipient is eligible for 15 the loan forgiveness repayment program for not more than five 16 consecutive years. 17 b. The annual amount of nurse educator loan forgiveness 18 shall not exceed the resident tuition rate established for 19 institutions of higher learning governed by the state board 20 of regents for the first year following the nurse educator’s 21 graduation from an advanced formal academic nursing education 22 program approved by the board of nursing pursuant to section 23 152.5 , or twenty percent of the nurse educator’s total 24 federally guaranteed Stafford loan amount under the federal 25 family education loan program or the federal direct loan 26 program, including principal and interest, whichever amount 27 is less. A nurse educator shall be eligible for the loan 28 forgiveness program for not more than five consecutive years. 29 4. 5. Selection criteria. The commission shall establish 30 by rule the evaluation criteria to be used in evaluating 31 applications submitted under this section. Priority shall be 32 given to applicants who are residents of Iowa and, if requested 33 by the adjutant general, to applicants who are members of the 34 Iowa national guard. 35 -6- LSB 6156XC (2) 87 kh/jh 6/ 9
S.F. _____ 6. Health care loan repayment fund. A registered nurse and 1 nurse educator health care loan forgiveness repayment fund is 2 created for deposit of moneys appropriated to or received by 3 the commission for use under the program. Notwithstanding 4 section 8.33 , moneys deposited in the health care loan 5 repayment fund shall not revert to any fund of the state 6 at the end of any fiscal year but shall remain in the loan 7 forgiveness repayment fund and be continuously available for 8 loan forgiveness repayment under the program. Notwithstanding 9 section 12C.7, subsection 2 , interest or earnings on moneys 10 deposited in the health care loan fund shall be credited to the 11 fund. 12 5. 7. Report. The commission shall submit in a report 13 to the general assembly by January 1, annually, the number of 14 individuals who received loan forgiveness repayment pursuant to 15 this section , where the participants practiced or taught, the 16 amount paid to each program participant, and other information 17 identified by the commission as indicators of outcomes from of 18 the program. 19 6. 8. Rules. The commission shall adopt rules pursuant to 20 chapter 17A to administer this section . 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill combines and repeals certain educational 25 assistance programs administered by the college student aid 26 commission for the benefit of registered nurses, physician 27 assistants, advanced registered nurse practitioners, doctors of 28 nursing practice, and nurse educators. The bill reduces the 29 amount of loan repayment an individual may qualify for under 30 the rural Iowa primary care loan repayment program. 31 RURAL IOWA PRIMARY CARE LOAN REPAYMENT PROGRAM. Currently, 32 an individual who enters into an agreement is eligible to 33 receive up to $40,000 annually or a total of $200,000 in loan 34 repayment. The bill reduces these amounts by half for an 35 -7- LSB 6156XC (2) 87 kh/jh 7/ 9
S.F. _____ individual who enters into an agreement on or after July 1, 1 2018. 2 RURAL IOWA ADVANCED REGISTERED NURSE PRACTITIONER AND 3 PHYSICIAN ASSISTANT LOAN REPAYMENT PROGRAM —— FUNDS. The bill 4 modifies the rural Iowa advanced registered nurse practitioner 5 and physician assistant loan repayment program by prohibiting 6 the commission from entering into any new program agreements on 7 or after July 1, 2018; striking a provision to allow a person 8 who entered into a program agreement to practice part-time; 9 striking language relating to the postponement of program 10 obligations; repealing the program July 1, 2023; and providing 11 for the transfer of any balance in the rural Iowa advanced 12 registered nurse practitioner and physician assistant trust 13 fund on June 30, 2023, to the health care loan repayment fund 14 established for purposes of the health care loan repayment 15 program. 16 COMBINED LOAN PROGRAM. The bill expands the current 17 registered nurse and nurse educator program by adding advanced 18 registered nurse practitioners, doctors of nursing practice, 19 and physician assistants to the program. The bill changes the 20 name of the program, and of the program fund, to the health 21 care loan repayment program and the health care loan repayment 22 fund. 23 To qualify for the program, applicants who are registered 24 nurses, advanced registered nurse practitioners, doctors of 25 nursing practice, or physician assistants must complete and 26 return an affidavit of practice verifying that the applicant is 27 or will be practicing full-time in a service commitment area 28 in this state or is a nurse educator teaching full-time in 29 this state. The affidavit must specify the service commitment 30 area in which the applicant will practice as a condition of 31 receiving loan repayment. Nurse educators are not required 32 to teach in service commitment areas. An applicant who is a 33 member of the Iowa national guard is exempt from the service 34 commitment area requirement, but must submit an affidavit 35 -8- LSB 6156XC (2) 87 kh/jh 8/ 9
S.F. _____ verifying the applicant is practicing in this state. The bill 1 defines a service commitment area as a city in Iowa with a 2 population of less than 26,000 that is located more than 50 3 miles from a city with a population of 50,000 or more. 4 Currently, the annual amount of loan repayment for a 5 registered nurse or nurse educator shall not exceed the 6 resident tuition rate established for regents universities or 7 20 percent of the registered nurse’s total federally determined 8 loan amount, including principal and interest, whichever 9 amount is less. The bill limits the annual amount of loan 10 repayment to a program applicant to $6,000 or 20 percent of 11 the recipient’s total qualified student loan, whichever amount 12 is less. The bill defines qualified student loan as a loan 13 that was made, insured, or guaranteed under Tit. IV of the 14 federal Higher Education Act of 1965, as amended, or under 15 Tit. VII or VIII of the federal Public Health Service Act, as 16 amended, directly to the borrower for attendance at an approved 17 postsecondary educational institution. 18 The commission is required to establish by rule the criteria 19 to be used in evaluating applications, and to give highest 20 priority to applicants who are residents of Iowa, then, if 21 requested by the adjutant general, to applicants who are 22 members of the Iowa national guard. 23 -9- LSB 6156XC (2) 87 kh/jh 9/ 9
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