Senate Study Bill 1060 - IntroducedA Bill ForAn Act 1relating to educational assistance programs administered
2by the college student aid commission for nurses, physician
3assistants, advanced registered nurse practitioners, and
4nurse educators.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 261.2, subsection 8, Code 2017, is
2amended to read as follows:
   38.  Submit by January 15 annually a report to the general
4assembly which provides, by program, the number of individuals
5who received loan forgiveness or loan repayment in the previous
6fiscal year, the amount amounts paid to or on behalf of
7 individuals under sections 261.73, 261.112, and 261.116, and
8the institutions from which individuals graduated, and that
9includes any proposed statutory changes and the commission’s
10findings and recommendations.
11   Sec. 2.  Section 261.114, subsection 3, unnumbered paragraph
121, Code 2017, is amended to read as follows:
   13A program agreement shall be entered into by an eligible
14student and the commission when the eligible student begins
15the final year of study in an academic program leading to
16eligibility for licensure as a nurse practitioner or physician
17assistant. The commission shall not enter into any new
18program agreement under this section on or after July 1, 2017.

19 Under the agreement, to receive loan repayments pursuant to
20subsection 5, an eligible student shall agree to and shall
21fulfill all of the following requirements:
22   Sec. 3.  Section 261.114, subsection 8, Code 2017, is amended
23by striking the subsection.
24   Sec. 4.  Section 261.114, subsection 9, Code 2017, is amended
25to read as follows:
   269.  Postponement and satisfaction Satisfaction of service
27obligation.
   28a.  The obligation to engage in practice in accordance with
29subsection 3 shall be postponed for the following purposes:
   30(1)  Active duty status in the armed forces, the armed forces
31military reserve, or the national guard.
   32(2)  Service in volunteers in service to America.
   33(3)  Service in the federal peace corps.
   34(4)  A period of service commitment to the United States
35public health service commissioned corps.
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   1(5)  A period of religious missionary work conducted by an
2organization exempt from federal income taxation pursuant to
3section 501(c)(3) of the Internal Revenue Code.
   4(6)  Any period of temporary medical incapacity during which
5the person obligated is unable, due to a medical condition, to
6engage in full-time practice as required under subsection 3.
   7b.  Except for a postponement under paragraph “a”,
8subparagraph (6), an obligation to engage in practice under an
9agreement entered into pursuant to subsection 3, shall not be
10postponed for more than two years from the time the full-time
11practice was to have commenced under the agreement.
   12c.    a.  An obligation to engage in full-time practice under
13an agreement entered into pursuant to subsection 3 shall be
14considered satisfied when any of the following conditions are
15met:
   16(1)  The terms of the agreement are completed.
   17(2)  The person who entered into the agreement dies.
   18(3)  The person who entered into the agreement, due to a
19permanent disability, is unable to practice as an advanced
20registered nurse practitioner or physician assistant.
   21d.    b.  If a loan repayment recipient fails to fulfill
22the obligation to engage in practice in accordance with
23subsection 3, the recipient shall be subject to repayment to
24the commission of the loan amount plus interest as specified
25by rule. A loan repayment recipient who fails to meet the
26requirements of the obligation to engage in practice in
27accordance with subsection 3 may also be subject to repayment
28of moneys advanced by the service commitment area as provided
29in any agreement with the service commitment area.
30   Sec. 5.  Section 261.114, subsection 10, Code 2017, is
31amended to read as follows:
   3210.  Trust fund established.  A rural Iowa advanced
33registered nurse practitioner and physician assistant trust
34fund is created in the state treasury as a separate fund under
35the control of the commission. The commission shall remit all
-2-1repayments made pursuant to this section to the rural Iowa
2advanced registered nurse practitioner and physician assistant
3trust fund. All moneys deposited or paid into the trust fund
4are appropriated and made available to the commission to be
5used for meeting the requirements of this section. Moneys in
6the fund up to the total amount that an eligible student may
7receive for an eligible loan in accordance with this section
8and upon fulfilling the requirements of subsection 3 shall be
9considered encumbered for the duration of the agreement entered
10into pursuant to subsection 3. Notwithstanding section 8.33,
11any balance in the fund on June 30 of each fiscal year shall not
12revert to the general fund of the state, but shall be available
13for purposes of this section in subsequent fiscal years.
 14Notwithstanding section 8.33, any balance in the fund on June
1530, 2023, shall not revert to the general fund of the state but
16shall be transferred to the health care loan repayment fund
17established pursuant to section 261.116 to be used for purposes
18of the health care loan repayment program.

19   Sec. 6.  Section 261.114, Code 2017, is amended by adding the
20following new subsection:
21   NEW SUBSECTION.  10A.  This section is repealed July 1, 2023.
22   Sec. 7.  Section 261.116, Code 2017, is amended to read as
23follows:
   24261.116  Registered nurse and nurse educator Health care loan
25forgiveness repayment program.
   261.   Definitions.  For purposes of this section, unless the
27context otherwise requires:

   28a.  “Advanced registered nurse practitioner” means a person
29licensed as a registered nurse under chapter 152 or 152E who
30is licensed by the board of nursing as an advanced registered
31nurse practitioner.
   32b.  “Nurse educator” means a registered nurse who holds
33a master’s degree or doctorate degree and is employed by a
34community college, an accredited private institution, or an
35institution of higher education governed by the state board
-3-1of regents as a faculty member to teach nursing at a nursing
2education program approved by the board of nursing pursuant to
3section 152.5.
   4c.  “Physician assistant” means a person licensed as a
5physician assistant under chapter 148C.
   6d.  “Qualified student loan” means a loan that was made,
7insured, or guaranteed under Tit.IV of the federal Higher
8Education Act of 1965, as amended, or under Tit.VII or VIII
9of the federal Public Health Service Act, as amended, directly
10to the borrower for attendance at an approved postsecondary
11educational institution.
   12e.  “Service commitment area” means a city in Iowa with a
13population of less than twenty-six thousand that is located
14more than fifty miles from a city with a population of fifty
15thousand or more.
   162.  Program established.  A registered nurse and nurse
17educator
 health care loan forgiveness repayment program is
18established to be administered by the commission. The program
19shall consist of loan forgiveness for eligible federally
20guaranteed
 for purposes of repaying the qualified student
21 loans for of registered nurses, advanced registered nurse
22practitioners, physician assistants,
and nurse educators who
23practice full-time in a service commitment area or teach in
24this state, as appropriate, and who are selected for the
25program in accordance with this section
. For purposes of
26this section, unless the context otherwise requires, “nurse
27educator”
means a registered nurse who holds a master’s degree
28or doctorate degree and is employed as a faculty member who
29teaches nursing as provided in 655 IAC 2.6(152) at a community
30college, an accredited private institution, or an institution
31of higher education governed by the state board of regents.
 An
32applicant who is a member of the Iowa national guard is exempt
33from the service commitment area requirement, but shall submit
34an affidavit verifying the applicant is practicing full-time
35in this state.

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   12.    3.  Application requirements.  Each applicant for loan
2forgiveness repayment shall, in accordance with the rules of
3the commission, do the following:
   4a.  Complete and file an application for registered nurse
5or nurse educator
loan forgiveness repayment. The individual
6shall be responsible for the prompt submission of any
7information required by the commission.
   8b.  File a new application and submit information as
9required by the commission annually on the basis of which
10the applicant’s eligibility for the renewed loan forgiveness
11
 repayment will be evaluated and determined.
   12c.  Complete and return, on a form approved by the
13commission, an affidavit of practice verifying that the
14applicant is a registered nurse, an advanced registered nurse
15practitioner, or a physician assistant who is
practicing
 16full-time in a service commitment area in this state or is a
17nurse educator teaching at a community college, an accredited
18private institution, or an institution of higher learning
19governed by the state board of regents
 who teaches full-time
20in this state
If practice in a service commitment area is
21required as a condition of receiving loan repayment, the
22affidavit shall specify the service commitment area in which
23the applicant is practicing full-time.

   243.    4.  Loan repayment amounts.
  25a.  The annual amount of registered nurse loan forgiveness
26for a registered nurse who completes a course of study, which
27leads to a baccalaureate or associate degree of nursing,
28diploma in nursing, or a graduate or equivalent degree in
29nursing, and who practices in this state,
 repayment provided to
30a recipient under this section
shall not exceed the resident
31tuition rate established for institutions of higher learning
32governed by the state board of regents for the first year
33following the registered nurse’s graduation from a nursing
34education program approved by the board of nursing pursuant to
35section 152.5
 six thousand dollars, or twenty percent of the
-5-1registered nurse’s total federally guaranteed Stafford loan
2amount under the federal family education loan program or the
3federal direct loan program, including principal and interest
4
 recipient’s total qualified student loan, whichever amount is
5less. A registered nurse shall be recipient is eligible for
6the loan forgiveness repayment program for not more than five
7consecutive years.
   8b.  The annual amount of nurse educator loan forgiveness
9shall not exceed the resident tuition rate established for
10institutions of higher learning governed by the state board
11of regents for the first year following the nurse educator’s
12graduation from an advanced formal academic nursing education
13program approved by the board of nursing pursuant to section
14152.5, or twenty percent of the nurse educator’s total
15federally guaranteed Stafford loan amount under the federal
16family education loan program or the federal direct loan
17program, including principal and interest, whichever amount
18is less. A nurse educator shall be eligible for the loan
19forgiveness program for not more than five consecutive years.
   204.    5.  Selection criteria.  The commission shall establish
21by rule the evaluation criteria to be used in evaluating
22applications submitted under this section. Priority shall be
23given to applicants who are residents of Iowa and, if requested
24by the adjutant general, to applicants who are members of the
25Iowa national guard.

   266.  Health care loan repayment fund.  A registered nurse and
27nurse educator
 health care loan forgiveness repayment fund is
28created for deposit of moneys appropriated to or received by
29the commission for use under the program. Notwithstanding
30section 8.33, moneys deposited in the health care loan
31repayment
fund shall not revert to any fund of the state
32at the end of any fiscal year but shall remain in the loan
33forgiveness repayment fund and be continuously available for
34loan forgiveness repayment under the program. Notwithstanding
35section 12C.7, subsection 2, interest or earnings on moneys
-6-1deposited in the health care loan fund shall be credited to the
2fund.
   35.    7.  Report.  The commission shall submit in a report
4to the general assembly by January 1, annually, the number of
5individuals who received loan forgiveness repayment pursuant to
6this section, where the participants practiced or taught, the
7amount paid to each program participant, and other information
8identified by the commission as indicators of outcomes from of
9 the program.
   106.    8.  Rules.  The commission shall adopt rules pursuant to
11chapter 17A to administer this section.
12   Sec. 8.  REPEAL.  Section 261.129, Code 2017, is repealed.
13EXPLANATION
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
   16This bill combines and repeals certain educational
17assistance programs administered by the college student aid
18commission for the benefit of registered nurses, physician
19assistants, advanced registered nurse practitioners, and nurse
20educators.
   21RURAL IOWA ADVANCED REGISTERED NURSE PRACTITIONER AND
22PHYSICIAN ASSISTANT LOAN REPAYMENT PROGRAM — FUNDS. The bill
23modifies the rural Iowa advanced registered nurse practitioner
24and physician assistant loan repayment program by prohibiting
25the commission from entering into any new program agreements on
26or after July 1, 2017; striking a provision to allow a person
27who entered into a program agreement to practice part-time;
28striking language relating to the postponement of program
29obligations; repealing the program July 1, 2023; and providing
30for the transfer of any balance in the rural Iowa advanced
31registered nurse practitioner and physician assistant trust
32fund on June 30, 2023, to the health care loan repayment fund
33established for purposes of the health care loan repayment
34program.
   35COMBINED LOAN PROGRAM. The bill expands the current
-7-1registered nurse and nurse educator program by adding advanced
2registered nurse practitioners and physician assistants to the
3program. The bill changes the name of the program, and of the
4program fund, to the health care loan repayment program and the
5health care loan repayment fund.
   6To qualify for the program, applicants who are registered
7nurses, advanced registered practitioners, or physician
8assistants must complete and return an affidavit of practice
9verifying that the applicant is or will be practicing full-time
10in a service commitment area in this state or is a nurse
11educator teaching full-time in this state. The affidavit must
12specify the service commitment area in which the applicant will
13practice as a condition of receiving loan repayment. Nurse
14educators are not required to teach in service commitment
15areas. An applicant who is a member of the Iowa national guard
16is exempt from the service commitment area requirement, but
17must submit an affidavit verifying the applicant is practicing
18in this state. The bill defines a service commitment area as
19a city in Iowa with a population of less than 26,000 that is
20located more than 50 miles from a city with a population of
2150,000 or more.
   22Currently, the annual amount of loan repayment for a
23registered nurse or nurse educator shall not exceed the
24resident tuition rate established for regents universities or
2520 percent of the registered nurse’s total federally determined
26loan amount, including principal and interest, whichever
27amount is less. The bill limits the annual amount of loan
28repayment to a program applicant to $6,000 or 20 percent of
29the recipient’s total qualified student loan, whichever amount
30is less. The bill defines qualified student loan as a loan
31that was made, insured, or guaranteed under Tit.IV of the
32federal Higher Education Act of 1965, as amended, or under
33Tit.VII or VIII of the federal Public Health Service Act, as
34amended, directly to the borrower for attendance at an approved
35postsecondary educational institution.
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   1The commission is required to establish by rule the criteria
2to be used in evaluating applications, and to give highest
3priority to applicants who are residents of Iowa, then, if
4requested by the adjutant general, to applicants who are
5members of the Iowa national guard.
   6The bill repeals Code section 261.129, which establishes
7the Iowa needs nurses now initiative. The initiative never
8received funding.
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