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BILL NUMBER:S6353                REVISED 02/02/12

TITLE OF BILL: An act to amend the public health law, in relation to establishing the nurse loan repayment program

PURPOSE: Nursing homes face a shortage of Registered nurses per patient ratio. This bill will add nursing homes to the list of work locations to participate in the loan forgiveness program to help address this disparity.

SUMMARY OF PROVISIONS: This bill adds nurses working in nursing homes to expand the loan repayment program and authorizes the commissioner to make loan repayment awards beginning January 1, 2013.

JUSTIFICATION: According to the New York State Department of Health, approximately one in four New Yorkers - over five million people - live in health professional shortage areas, defined by the federal government as areas with less than one physician for every 3,500 residents. Of New York's 62 counties, 49 have areas with physician shortages. The shortages are seen in rural and inner city areas.

To help address these shortages, in 2008 the Legislature enacted the Doctors Across New York initiative as part of the budget. This program included the Physician Loan Repayment Program which provides up to $150,000 for physicians to use in repayment of educational debt in exchange for a five-year service obligation in an underserved area. This bill is designed to be an expansion of that program to include nurse practitioners working in underserved areas.

Due to pay differential, nursing homes throughout the State are faced with nursing shortages. Nursing homes are staffed with an inadequate ratio of registered nurses, putting patient safety at risk due to the disparity in pay that nursing homes can offer. This bill is meant to give assistance to those that would be willing to work in geriatric facilities, by adding them to the list of those eligible for the loan repayment program.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately.

Text

STATE OF NEW YORK
________________________________________________________________________

6353

IN SENATE

January 31, 2012
___________

Introduced  by  Sen. JOHNSON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Health

AN ACT to amend the public health law, in relation to  establishing  the
  nurse loan repayment program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 2807-m of the  public  health  law  is  amended  by
adding a new subdivision 5-c to read as follows:
  5-C.  REGISTERED  NURSE  LOAN REPAYMENT PROGRAM. (A) BEGINNING JANUARY
FIRST, TWO THOUSAND THIRTEEN, THE  COMMISSIONER  IS  AUTHORIZED,  WITHIN
AMOUNTS  AVAILABLE  PURSUANT  TO  SUBDIVISION FIVE-A OF THIS SECTION, TO
MAKE LOAN REPAYMENT AWARDS:
  (I) TO REGISTERED PROFESSIONAL  NURSES  OR  OTHER  LICENSED  PRACTICAL
NURSES  SPECIALITIES  DETERMINED  BY  THE  COMMISSIONER  TO  BE IN SHORT
SUPPLY, LICENSED TO PRACTICE NURSING PURSUANT  TO  ARTICLE  ONE  HUNDRED
THIRTY-NINE  OF  THE  EDUCATION  LAW, WHO AGREE TO PRACTICE FOR AT LEAST
FIVE YEARS IN AN UNDERSERVED AREA OR NURSING HOME, AS DETERMINED BY  THE
COMMISSIONER.   SUCH REGISTERED PROFESSIONAL NURSE OR LICENSED PRACTICAL
NURSE SHALL BE ELIGIBLE FOR A LOAN REPAYMENT AWARD OF UP TO ONE  HUNDRED
FIFTY  THOUSAND  DOLLARS OVER A FIVE YEAR PERIOD DISTRIBUTED AS FOLLOWS:
FIFTEEN PERCENT OF TOTAL LOAN DEBT NOT TO EXCEED TWENTY THOUSAND DOLLARS
FOR THE FIRST YEAR; FIFTEEN PERCENT OF TOTAL LOAN  DEBT  NOT  TO  EXCEED
TWENTY-FIVE  THOUSAND  DOLLARS  FOR  THE  SECOND YEAR; TWENTY PERCENT OF
TOTAL LOAN DEBT NOT TO EXCEED THIRTY-FIVE THOUSAND DOLLARS FOR THE THIRD
YEAR;  AND  TWENTY-FIVE  PERCENT  OF  TOTAL  LOAN  DEBT  NOT  TO  EXCEED
THIRTY-FIVE  THOUSAND DOLLARS PER YEAR FOR THE FOURTH AND FIFTH YEARS OF
PRACTICE IN SUCH AREA; AND
  (II) TO GENERAL HOSPITALS AND OTHER HEALTH CARE PROVIDERS TO  ADMINIS-
TER  AS  PART OF THEIR RECRUITMENT PACKAGES; PROVIDED THE LOAN REPAYMENT
AWARDS SHALL BE ADMINISTERED CONSISTENT  WITH  THE  PROVISIONS  OF  THIS
SUBDIVISION.
  (B)  LOAN  REPAYMENT AWARDS MADE TO A REGISTERED PROFESSIONAL NURSE OR
LICENSED PRACTICAL NURSE PURSUANT TO PARAGRAPH (A) OF  THIS  SUBDIVISION
SHALL NOT EXCEED THE TOTAL QUALIFYING OUTSTANDING DEBT OF THE REGISTERED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09770-03-2
S. 6353                             2

PROFESSIONAL  NURSE  OR  LICENSED  PRACTICAL NURSE FROM STUDENT LOANS TO
COVER TUITION AND OTHER RELATED EDUCATIONAL EXPENSES, MADE BY OR GUARAN-
TEED BY THE FEDERAL OR STATE GOVERNMENT, OR MADE BY A LENDING OR  EDUCA-
TIONAL  INSTITUTION APPROVED UNDER TITLE IV OF THE FEDERAL HIGHER EDUCA-
TION ACT.  LOAN REPAYMENT AWARDS SHALL BE  USED  SOLELY  TO  REPAY  SUCH
OUTSTANDING DEBT.
  (C)  ANY RECIPIENT OF FUNDS PURSUANT TO THIS SUBDIVISION WHO PRACTICES
LESS THAN TWO YEARS IN AN UNDERSERVED AREA OR NURSING  HOME,  AS  DETER-
MINED  BY  THE COMMISSIONER, SHALL REPAY ALL FUNDS PAID IN AMOUNTS TO BE
DETERMINED BY THE COMMISSIONER PURSUANT TO THIS SUBDIVISION,  AND  SHALL
NO  LONGER  BE  ELIGIBLE FOR FUTURE PAYMENTS UNDER THIS SUBDIVISION. THE
RATE OF INTEREST APPLIED SHALL BE DETERMINED BY  THE  COMMISSIONER,  BUT
WILL  NOT  BE  LESS THAN THE RATE OF INTEREST SET BY THE COMMISSIONER OF
TAXATION AND FINANCE WITH RESPECT TO UNDERPAYMENTS  OF  PERSONAL  INCOME
TAX PURSUANT TO SECTION SIX HUNDRED EIGHTY-FOUR OF THE TAX LAW.
  (D)  THE  COMMISSIONER  IS AUTHORIZED TO APPLY ANY FUNDS AVAILABLE FOR
PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION FOR USE AS MATCHING  FUNDS
FOR FEDERAL GRANTS FOR THE PURPOSE OF ASSISTING STATES IN OPERATING LOAN
REPAYMENT  PROGRAMS  PURSUANT TO SECTION THREE HUNDRED THIRTY-EIGHT I OF
THE PUBLIC HEALTH SERVICE ACT.
  (E) THE COMMISSIONER MAY, IN HIS OR  HER  SOLE  DISCRETION,  POSTPONE,
CHANGE  OR WAIVE THE SERVICE OBLIGATION SET FORTH IN SUBPARAGRAPH (I) OF
PARAGRAPH (A) OF THIS SUBDIVISION.
  S 2. This act shall take effect immediately.