2002 -- S 2275

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LC01256

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2002

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A N A C T

RELATING TO HEALTH AND SAFETY -- THE NURSING EDUCATION LOAN

REPAYMENT PROGRAM

     Introduced By: Senators Polisena, Graziano, and Damiani

     Date Introduced: January 29, 2002

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 23 of the General Laws entitled "Health and Safety" is hereby

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amended by adding thereto the following chapter:

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     CHAPTER 14.2

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NURSING EDUCATION LOAN REPAYMENT PROGRAM

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     23-14.2-1. Legislative findings. -- The general assembly finds and hereby declares that:

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(1) there is a growing shortage of qualified nurses available to meet the needs of patients in health

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care facilities in Rhode Island; (2) health care facilities serving the citizens of the state are

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experiencing increasing difficulty in attracting and retaining nurses to administer to their patients;

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(3) quality health care depends, in part, on the availability of nurses; (4) it is in the public interest

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and essential to the welfare and well-being of the inhabitants of the state that there be a sufficient

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number of nurses in the state to serve the health care needs of patients; and (5) it is vital to the

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welfare of the state's citizenry that an incentive be provided to attract and retain nurses to provide

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service in health care facilities throughout the state. Therefore, it is the general assembly's intent

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to provide an incentive, in the form of loan repayment, to nurses who desire to serve the health

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care needs of patients receiving care in health care facilities in Rhode Island.

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     23-14.2-2. Definitions. -- For the purpose of this chapter, the following words and terms

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shall have the following meanings unless the context clearly requires otherwise:

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     (1) "Authority" means the higher education assistance authority.

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     (2) "Board" means the nursing education loan repayment board.

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     (3) "Health care facility" means a health care facility licensed pursuant to chapter 17 or

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17.4 of title 23.

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     (4) "Director" means the director of the Rhode Island higher education assistance

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authority.

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     (5) "Nurse" means a professional (registered) or practical nurse licensed pursuant to

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chapter 34 of title 5 who has entered into a contract with the board to work in a health care

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facility.

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     (6) "Loan repayment" means an amount of money to be repaid to satisfy loan obligations

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to any governmental or private agency, organization, or institution incurred to obtain a degree or

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certification as a nurse as defined in subdivision (5). The entities that may make loans and the

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types of loans that are eligible for loan repayment may be further defined and/or restricted by

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regulation of the authority.

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     (7) "Eligible employment" shall mean employment as a professional (registered) or

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practical nurse responsible for providing patient care at a health care facility.

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     (8) "Nursing education" means (i) an educational program, approved pursuant to chapter

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34 of title 5, of basic professional nursing or practical nursing; or (ii) an accredited educational

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program resulting in a master's or doctoral degree in nursing.

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     23-14.2-3. Nursing education loan repayment program established. -- There is hereby

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established within the higher education assistance authority, to be administered by the director or

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his/her designee, the nursing education loan repayment program whose purpose shall be to

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provide loan repayment to eligible nursing students to defray the cost of their nursing education.

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     23-14.2-4. Nursing education loan repayment board. -- (a) There is hereby created the

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nursing education loan repayment board, which shall consist of eleven (11) members and be

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constituted as follows: one (1) health care consumer and two (2) non-administrative clinical

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nurses currently employed by a health care facility, one (1) of whom is a member of a collective

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bargaining agent, each to be appointed by the governor; one (1) member of the Rhode Island state

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nurses association appointed by its president; one (1) member of the house of representatives

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appointed by the speaker; one (1) member of the senate appointed by the majority leader; two (2)

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members of Rhode Island colleagues in caring groups appointed by its co-chairs; the president of

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the hospital association of Rhode Island or his/her designee; the executive director of the Rhode

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Island higher education assistance authority, or his/her designee; and the chair of the state board

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of nurse registration and nursing education, or his/her designee. All members shall serve at the

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pleasure of the appointing authority and shall receive no compensation for their services.

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     (b) The director shall serve as chairperson. All meetings shall be called by the

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chairperson.

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     23-14.2-5. Duties of the board. -- The board, or a duly authorized committee thereof,

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shall:

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     (1) receive and consider all applications for loan repayment made by eligible nurses;

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     (2) conduct a careful and full investigation of the academic record, clinical ability,

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character, financial needs, and other qualifications of each applicant;

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     (3) consider the applicant's work history and experience, both paid and unpaid, in the

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health care field;

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     (4) consider the intent of the applicant to practice in a licensed health care facility and to

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adhere to all the requirements for participation in the loan repayment program;

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     (5) submit to the director a list of those individuals eligible for loan repayment and

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amount of loan repayment to be granted;

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     (6) promulgate rules and regulations to ensure the effective implementation and

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administration of the program.

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     23-14.2-6. Duties of the director. -- The director shall:

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     (1) grant loan repayments to successful applicants as determined by the board;

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     (2) enter into contracts, on behalf of the higher education assistance authority with each

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successful applicant, reflecting the purpose and intent of this chapter.

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     23-14.2-7. Conditions of loan repayment. -- (a) Loan repayments under the provisions

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of this chapter shall be based on condition that the recipient: (1) apply for a license as a nurse

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pursuant to chapter 34 of title 5 at the earliest practicable opportunity but no later than six (6)

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months after completing the educational program for which the loan repayment was granted; and

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(2) can document that he/she works in eligible employment at least half-time (average of twenty

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(20) hours per week) for a minimum of two (2) years after licensure.

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     23-14.2-8. Contracts required. -- Prior to being granted loan repayment each eligible

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nurse shall enter into a contract with the authority agreeing to the terms and conditions on which

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the loan repayment is granted. The contract shall include such provisions as are required to fulfill

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the purposes of this chapter and those deemed advisable by the director.

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     23-14.2-9. Penalty for failure to complete contract. -- (a) If a recipient of a loan

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repayment fails, without justifiable cause, to complete the period of obligated service in

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accordance with the terms and conditions of his/her contract with the authority, he/she shall be

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liable to the state of Rhode Island for an amount equal to the total paid on behalf of the recipient

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plus interest at the rate set pursuant to section 44-1-7, as amended.

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     (b) Any amount owed shall be paid to the state of Rhode Island within one (1) year of the

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date that the recipient is in breach of contract, provided, however, that the director, for justifiable

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cause shown by the recipient and subject to the approval of the board, may extend, up to an

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additional four (4) years, the deadline for the payment of amounts owed.

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     (c) Where the director, subject to the approval of the board, determines that there exists

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justifiable cause for the failure of a recipient to serve pursuant to the terms and conditions of the

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contract, he/she may relieve the recipient of the obligation to fulfill any or all of the terms of the

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contract.

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     23-14.2-10. Severability. -- The provisions of this chapter are severable. If any of its

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provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of

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the court shall not affect or impair any of the remaining provisions.

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     23-14.2-11. Appropriation. -- The general assembly shall annually appropriate two

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hundred fifty thousand dollars ($250,000) for the purpose of repayment of nursing education

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loans as outlined herein. Funds in this account shall be used only for the purpose of repayment of

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nursing education loans as outlined in this chapter. The state controller is hereby authorized and

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directed to draw his/her orders on the general treasurer for the payment of such sum, or so much

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thereof, as may be required from time to time, on the receipt by him/her of duly authenticated

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vouchers. Implementation of this program is contingent on the appropriation of the required

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resources.

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     23-14.2-12. Authorization to accept and receive funds. -- The higher education

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assistance authority is authorized to accept and receive funds from the United States of America,

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the cities and towns of the state, and from individuals, organizations, corporations, and other

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funding sources that may desire to contribute to the nursing education loan repayment program.

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Any funds received shall be deposited in the account established pursuant to section 23-14.2-11

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and shall be used only for the purpose of repayment of nursing education loans as outlined in this

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chapter.

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     SECTION 2. This act shall take effect upon passage.

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LC01256

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO HEALTH AND SAFETY -- THE NURSING EDUCATION LOAN

REPAYMENT PROGRAM

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     This act would help address the shortage of nurses in health care facilities by establishing

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a nursing education repayment program to provide loan repayment for nurses who agree to serve

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in health care facilities for designated periods of time.

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     This act would take effect upon passage.

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LC01256

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