2019 -- H 5318

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO EDUCATION -- NURSING LOAN REPAYMENT PROGRAM

     Introduced By: Representatives McLaughlin, Corvese, Tanzi, McNamara, and Hull

     Date Introduced: February 07, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 16 of the General Laws entitled "EDUCATION" is hereby amended

by adding thereto the following chapter:

CHAPTER 62.2

NURSING LOAN REPAYMENT PROGRAM

     16-62.2-1. Legislative findings.

     The purpose of this chapter is to provide an incentive, in the form of interest reduction on

certain types of education loans, to students who desire to serve the health care needs of

individuals in Rhode Island by enrolling in a registered nurse training program. The general

assembly has found and hereby declares that it is in the public interest and essential to the welfare

and well being of the inhabitants of the state that a sufficient number of registered nurses be

attracted to Rhode Island to serve the health care needs of our population. The general assembly

further finds that there is a growing shortage of qualified registered nurses to meet the needs of

the state's population. The general assembly determines that it is vital to the welfare of the state's

citizenry that an incentive be provided to attract and retain registered nurses in the state to meet

their needs.

     16-62.2-2. Definitions.

     For the purpose of this chapter, the following terms shall have the following meanings

unless the context clearly requires otherwise:

     (1) "Authority" means the governmental agency and public instrumentality authorized,

created and established pursuant to § 16-62-4.

     (2) "Eligible employment" means employment as a registered nurse responsible for

patient care at any Rhode Island licensed health care facility, including, but not limited to,

hospitals, nursing homes and home nursing care providers.

     (3) "Eligible registered nurse" means an individual who holds a valid Rhode Island

license to practice as a professional registered nurse and who works as a registered nurse in this

state and can document that they work at least half time (average of twenty (20) hours per week).

     (4) "Loan" means a federal Stafford (FFELP) loan made by the authority or one of its

participating lenders, issued after July 1, 2020, and not in default.

     16-62.2-3. Interest forgiveness on loans.

     An eligible registered nurse shall be eligible to have the interest on their loan forgiven for

each year they have eligible employment in the state up to a maximum of four (4) years.

     16-62.2-4. Application for loan interest forgiveness.

     Any individual seeking interest forgiveness pursuant to the provisions of this chapter

shall apply to the authority on forms prescribed by the authority containing any information that

the authority deems advisable to fulfill the provisions of this program. The authority's executive

director, or designee, shall determine the eligibility of each applicant.

     16-62.2-5. Continued eligibility.

     Any individual deemed eligible shall submit to the authority, not less than annually, any

information that the authority may prescribe to determine the individual's continued eligibility for

the interest forgiveness on their eligible loan under this chapter.

     16-62.2-6. Penalty for failure to maintain eligibility.

     In the event the authority determines that an individual is no longer eligible for the

interest forgiveness on their loan as provided in this chapter, that individual shall be required to

pay the holder of their loan forthwith all accrued interest and any late payment penalties which

have accrued during the period of the ineligibility.

     16-62.2-7. Regulations.

     The authority may promulgate any regulations that it deems necessary to implement the

provisions of this interest forgiveness program.

     16-62.2-8. No adverse effect on authority's bond issues or rating.

     Notwithstanding any provision of this chapter to the contrary, to the extent, if any, that

this interest forgiveness program shall have any material adverse effect on the authority's ability

to issue negotiable bonds and notes, the authority shall be empowered to suspend this program on

a prospective basis, provided that any individual who has previously been determined to be

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eligible for the program's benefits shall retain their eligibility up to the maximum period

prescribed in this chapter.

     16-62.2-9. Severability of provisions.

     The provisions of this chapter are severable. If any provisions are deemed invalid by a

court of competent jurisdiction, that determination shall not affect the validity of the remaining

provisions.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION -- NURSING LOAN REPAYMENT PROGRAM

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     This act would reestablish a nursing loan interest forgiveness program that had sunset on

December 31, 2010.

     This act would take effect upon passage.

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