S T A T E   O F   N E W   Y O R K
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                                  10339

                          I N  A S S E M B L Y

                              May 23, 2012
                               ___________

Introduced  by  M.  of A. GUNTHER, GRAF -- read once and referred 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.
              

                                                           LBD09770-05-2

A. 10339                            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.