72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 3190
 
                         House Bill 3012
 
Sponsored by Representative MONNES ANDERSON; Representatives
  ACKERMAN, BATES, BERGER, DALTO, FARR, GREENLICK, KRUSE, MARCH,
  VERGER, WESTLUND
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Expands Nursing Services Program to include higher education
loan repayment for nurses who receive graduate degrees and teach
in nursing programs.
  Declares emergency, effective July 1, 2003.
 
                        A BILL FOR AN ACT
Relating to Nursing Services Program; creating new provisions;
  amending ORS 348.570, 442.535 and 442.540; and declaring an
  emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 442.535 is amended to read:
  442.535. As used in ORS 442.540 and 442.545 { +  and section 2
of this 2003 Act + }:
  (1) 'Commission' means the Oregon Student Assistance
Commission.
  (2) 'Nurse' means any person who is licensed under ORS 678.010
to 678.410 as a registered nurse.
  (3) 'Nursing critical shortage area' means a locality or
practice specialty identified as such by the Oregon State Board
of Nursing, in consultation with the Office of Rural Health,
under ORS 442.540.
  (4) 'Qualifying loan' means any loan made to a nursing student
under:
  (a) Programs under Title IV, parts B, D and E, of the Higher
Education Act of 1965, as amended; or
  (b) The Nursing Student Loan and Health Education Assistance
Loan programs administered by the United States Department of
Health and Human Services.
  SECTION 2.  { + (1) A nurse with a masters or doctorate degree
in a field related to nursing who wishes to participate in the
Nursing Services Program established under ORS 442.540 shall
agree to the following:
  (a) For each year of post-graduate school leading to the
masters or doctorate degree, the nurse will designate an agreed
amount, not to exceed the total amount of all qualifying loans
that the nurse received while acquiring the masters or doctorate
degree, as a qualifying loan for the program.
  (b) In the four years following the execution of a Nursing
Services Program agreement with the Oregon Student Assistance
Commission, the nurse will teach full-time or part-time for at
least two full years in an accredited nursing program in Oregon.
  (c) For not less than two nor more than four years that the
nurse teaches in an accredited nursing program in Oregon, the
commission will annually pay an amount equal to 25 percent of the
total of all qualifying loans that the nurse received while
acquiring the masters or doctorate degree.
  (d) If the nurse does not complete the full service obligation
set forth in paragraph (b) of this subsection, the commission
shall collect 100 percent of any payments made by the commission
to the nurse under the Nursing Services Program. In addition, the
commission shall assess against the nurse a penalty equal to 50
percent of the qualifying loans and interest paid by the
commission.
  (2) To qualify for participation in the Nursing Services
Program under this section, a nurse must execute the agreement
under ORS 442.540 (2) and subsection (1) of this section within
two years of receiving the masters or doctorate degree. + }
  SECTION 3.  { + Loan repayments under the Nursing Services
Program made available under section 2 of this 2003 Act shall
first be available to nurses who graduate with a masters or
doctorate degree in a field related to nursing on or after
January 1, 2002. + }
  SECTION 4. ORS 442.540 is amended to read:
  442.540. (1) There is created the Nursing Services Program, to
be administered by the Oregon Student Assistance Commission
pursuant to rules adopted by the commission. The purpose of the
program is to provide loan repayments on behalf of nurses who
agree to practice in nursing critical shortage areas { +  or who
agree to teach in accredited nursing programs in Oregon + }.
  (2) To be eligible to participate in the program, a nurse or
prospective nurse shall submit a letter of interest to the
commission. Applicants who are selected for participation
according to criteria adopted by the commission under subsection
(3) of this section shall sign a letter of agreement stipulating
that the applicant agrees to abide by the terms of the program
described in ORS 442.545 { +  or section 2 of this 2003 Act + }.
  (3) The commission shall by rule adopt, in consultation with
the Oregon State Board of Nursing and the Office of Rural Health,
criteria for participation in the program.
  (4) The Oregon State Board of Nursing by rule shall annually
identify, in consultation with the Office of Rural Health, those
areas that are considered nursing critical shortage areas.
  (5) Amounts paid to the commission as penalties under ORS
442.545  { + or section 2 of this 2003 Act + } shall be credited
and deposited in the Nursing Services Account created under ORS
348.570. The commission, in consultation with the Oregon State
Board of Nursing, by rule shall allow waiver of all or part of
any fees or penalties owed to the commission due to circumstances
that prevent a nurse from fulfilling a service obligation under
ORS 442.545 { +  or section 2 of this 2003 Act + }.
  SECTION 5. ORS 348.570 is amended to read:
  348.570. (1) There is established in the State Treasury a fund,
separate and distinct from the General Fund, to be known as the
Oregon Student Assistance Fund for investment as provided by ORS
293.701 to 293.820 and for the payment of the expenses of the
Oregon Student Assistance Commission in carrying out the purposes
of ORS 348.210 to 348.250, 348.505 to 348.615, 348.696 and
348.992. Interest earned by the fund shall be credited to the
fund.
  (2) There is established in the State Treasury a fund, separate
and distinct from the General Fund, to be known as the Student
Loan Guarantee Fund, which may be invested in the same manner as
the Oregon Student Assistance Fund. This fund shall receive funds
from federal, state or private sources for the purpose of
guarantying payment of loans made by eligible lending
institutions to student residents of the State of Oregon who are
enrolled or accepted for enrollment at any eligible institution,
nonresident students enrolled or accepted for enrollment in an
institution of higher education or community college in Oregon,
and parents of those students, under the provisions of the Higher
Education Act of 1965 as amended and for administrative expenses
of guarantying loans. This fund, including the interest earnings
on the fund, if any, is continuously appropriated to the
commission for those purposes for which such funds were provided
to, received or collected by the commission.
  (3) There is established in the State Treasury a fund, separate
and distinct from the General Fund, to be known as the
Alternative Student Loan Program Fund for investment as provided
by ORS 293.701 to 293.820 and for the payment of expenses of the
commission in carrying out the purposes of ORS 348.625 to
348.695.  This fund, including the interest earnings on the fund,
if any, is continuously appropriated to the commission for those
purposes for which such funds were provided to, received or
collected by the commission.
  (4)(a) There is established in the General Fund an account to
be known as the Nursing Services Account. Funds in the account
shall be used for the payment of expenses of the Nursing Services
Program created in ORS 442.540.
  (b) The account shall consist of:
  (A) Funds appropriated to the Oregon Student Assistance
Commission for deposit into the account;
  (B) Collections and penalties received by the commission under
ORS 442.545 { +  or section 2 of this 2003 Act + }; and
  (C) Any donations or grants received by the commission for
purposes of the Nursing Services Program.
  (c) Any funds in the account that are not expended in any
biennium shall be retained in the account and may be expended in
the next biennium.
  (5) There is established in the State Treasury a fund, separate
and distinct from the General Fund, to be known as the Former
Foster Youth Scholarship Fund. Moneys received from
appropriations, donations and grants shall be credited to the
fund. Moneys in the fund are continuously appropriated to the
Oregon Student Assistance Commission for the purposes of
investment, as provided by ORS 293.701 to 293.820, and for
carrying out the provisions of ORS 348.270 (1)(b). Interest
earned by the fund shall be credited to the fund.
  SECTION 6.  { + This 2003 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2003 Act takes effect July 1,
2003. + }
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