SF 1422

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to higher education; providing assistance to
expand the supply of trained nurses; creating a
nursing education loan program; appropriating money;
proposing coding for new law in Minnesota Statutes,
chapter 144.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [144.1498] NURSING LOW-INCOME LOAN REPAYMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section,
"qualifying educational loans" means government, commercial, and
foundation loans for actual costs paid for tuition, reasonable
education expenses, and reasonable living expenses related to
the graduate or undergraduate education of a licensed practical
nurse or registered nurse.
new text end

new text begin Subd. 2. new text end

new text begin Creation of account; loan repayment program. new text end

new text begin A
low-income nursing education account is created in the general
fund. The commissioner of health shall use money from the
account to establish a loan repayment program for licensed
practical or registered nurses who agree to practice in a
Minnesota nursing home or work in a position in Minnesota as a
nurse educator. Appropriations made to the account do not
cancel and are available until expended.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin (a) To be eligible to apply to
participate in the loan repayment program, an individual must:
new text end

new text begin (1) be a resident of Minnesota;
new text end

new text begin (2) currently be attending a program leading to a degree in
practical or registered nursing or a graduate nursing degree in
a public or private postsecondary education institution located
in Minnesota; and
new text end

new text begin (3) submit an application to the commissioner of health.
new text end

new text begin (b) An applicant selected to participate must sign a
contract to agree to serve a minimum three-year, full-time
service obligation in a position or place of employment
described in subdivision 2. The service must begin no later
than March 31 following completion of required training. If
fewer applications are submitted by nursing students than there
are participant slots available, the commissioner may consider
applications submitted by nursing program graduates who are
licensed or registered nurses or nurses who are nurse
educators. Nurses selected for loan repayment assistance must
comply with this section.
new text end

new text begin Subd. 4. new text end

new text begin Loan repayment. new text end

new text begin The commissioner of health may
accept applicants each year for participation in the loan
repayment program, within the limits of available funding.
Applicants are responsible for securing their own loans. The
commissioner shall select participants in a priority based upon
lowest family income, followed in order of ascending family
income. Family income may be determined in the same manner as
for state grants under section 136A.121 or in another manner the
commissioner determines fairly represents family income. The
commissioner shall give preference to applicants closest to
completing their training. For each year that a participant
meets the service obligation required under subdivision 3, up to
a maximum of four years, the commissioner shall make annual
disbursements directly to the participant equivalent to 15
percent of the average educational debt for indebted nursing
school graduates in the year closest to the applicant's
selection for which information is available or the balance of
the qualifying educational loans, whichever is less. The
maximum annual loan repayment for a participant is $2,500.
Before receiving loan repayment disbursements and as requested,
the participant must complete and return to the commissioner an
affidavit of practice form provided by the commissioner
verifying that the participant is practicing as required under
subdivision 3. The participant must provide the commissioner
with verification that the full amount of loan repayment
disbursement received by the participant has been applied toward
the designated loans. After each disbursement, verification
must be received by the commissioner and approved before the
next loan repayment disbursement is made. Participants remain
eligible for loan repayment as long as they practice as required
under subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Penalty for nonfulfillment. new text end

new text begin If a participant
does not fulfill the service commitment under subdivision 3, the
commissioner of health shall collect from the participant 100
percent of any payments made for qualified educational loans and
interest at a rate established according to section 270.75. The
commissioner shall deposit the money collected in the low-income
nursing education account established under subdivision 2.
new text end

new text begin Subd. 6. new text end

new text begin Suspension or waiver of obligation. new text end

new text begin Payment or
service obligations cancel in the event of a participant's
death. The commissioner of health may waive or suspend payment
or service obligations in cases of total and permanent
disability or long-term temporary disability lasting for more
than two years. The commissioner shall evaluate all other
requests for suspension or waivers on a case-by-case basis and
may grant a waiver of all or part of the money owed as a result
of a nonfulfillment penalty if emergency circumstances prevented
fulfillment of the required service commitment.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2006 and $....... in fiscal year
2007 are appropriated from the general fund to the commissioner
of health to administer section 1.
new text end