HB5566 94TH GENERAL ASSEMBLY

LRB094 18401 LJB 53712 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5566

Introduced 1/27/2006, by Rep. Naomi D. Jakobsson

SYNOPSIS AS INTRODUCED:

New Act

Creates the Loan Repayment Assistance for Nurses Act. Requires the Department of Public Health to establish an educational loan repayment assistance program for nurses who practice in Illinois in Designated Shortage Areas. Provides that beginning July 1, 2007, the Department shall consider applications for assistance under the program. Sets forth eligibility requirements for applicants. Provides that for each year that a qualified applicant practices full-time as a nurse in a Designated Shortage Area, the Department shall, subject to appropriation, award a grant to that person in an amount equal to 5% of the total amount in educational loans that the person must repay. Provides that the total amount in grants that a person may be awarded shall not exceed $25,000. Provides that loan payment recipients who fail to practice full-time in Illinois in Designated Shortage Areas for 5 years shall repay the Department a sum equal to 3 times the amount received under the program.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning loan repayment assistance for nurses.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Loan Repayment Assistance for Nurses Act.

Section 5. Purpose. The purpose of this Act is to establish a program in the Department of Public Health to increase the total number of nurses in this State by providing educational loan repayment assistance grants to nurses.

Section 10. Definitions. In this Act, unless the context otherwise requires:

"Department" means the Department of Public Health.

"Designated Shortage Area" means an area designated by the Director of Public Health as a nurse shortage area, a medically underserved area, or a critical health manpower shortage area, as defined by the United States Department of Health and Human Services or as further defined by the Department.

"Educational loans" means higher education student loans that a person has incurred in attending a nurse education program.

"Nurse" means a person licensed under the Nursing and Advanced Practice Nursing Act.

"Program" means the educational loan repayment assistance program for nurses established by the Department under this Act.

Section 15. Establishment of program. The Department shall establish an educational loan repayment assistance program for nurses who practice in Illinois in Designated Shortage Areas. The Department shall administer the program and make all necessary and proper rules not inconsistent with this Act for the program's effective implementation. The Department may use up to 5% of the appropriation for this program for administration and promotion of nurse incentive programs.

Section 20. Application. Beginning July 1, 2007, the Department shall, each year, consider applications for assistance under the program. The form of application and the information required to be set forth in the application shall be determined by the Department, and the Department shall require applicants to submit with their applications such supporting documents as the Department deems necessary.

Section 25. Eligibility. To be eligible for assistance under the program, an applicant must meet all of the following qualifications:

(1) He or she must be a citizen or permanent resident of the United States.

(2) He or she must be a resident of Illinois.

(3) He or she must be practicing full-time in Illinois as a nurse.

(4) He or she must currently be repaying educational loans.

(5) He or she must agree to continue full-time practice in Illinois in a Designated Shortage Area for at least 5 consecutive years.

Section 30. The award of grants. Under the program, for each year that a qualified applicant practices full-time in Illinois in a Designated Shortage Area as a nurse, the Department shall, subject to appropriation, award a grant to that person in an amount equal to 5% of the total amount in educational loans that the person must repay. However, the total amount in grants that a person may be awarded under the program shall not exceed $25,000. The Department shall require recipients to use the grants to pay off their educational loans.

Section 35. Penalty for failure to fulfill obligation. Loan repayment recipients who fail to practice full-time in Illinois in a Designated Shortage Area for 5 years shall repay the Department a sum equal to 3 times the amount received under the program.