75th OREGON LEGISLATIVE ASSEMBLY--2009 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 1623
Senate Bill 701
Sponsored by Senator DEVLIN, Representative GALIZIO; Senators
MONNES ANDERSON, NELSON, Representatives STIEGLER, WHISNANT
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.
Changes Nursing Services Program to Nursing Faculty Loan
Repayment Program. Changes terms of loan repayment.
A BILL FOR AN ACT
Relating to a loan repayment program for nurse educators;
amending ORS 348.570, 442.535, 442.540 and 442.545.
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:
{ - (1) 'Commission' means the Oregon Student Assistance
Commission. - }
{ - (2) - } { + (1) + } '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) - } { + (2) + } '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. ORS 442.540 is amended to read:
442.540. (1) There is created the Nursing { - Services - }
{ + Faculty Loan Repayment + } 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. - } { + nurse
educators at nursing schools in Oregon who have earned master's
or doctoral degrees from accredited nursing programs. + }
{ - (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. - }
{ - (3) - } { + (2) + } The commission shall by rule adopt,
in consultation with the Oregon State Board of Nursing and the
{ - Office of Rural Health - } { + Oregon Center for
Nursing + }, 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 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. - }
SECTION 3. ORS 442.545 is amended to read:
442.545. (1) { - A nurse or prospective nurse applicant who
is a graduate of an accredited nursing program with a
baccalaureate or associate degree and who wishes to participate
in the Nursing Services Program established under ORS 442.540
shall agree that: - } { + To be eligible to participate in the
Nursing Faculty Loan Repayment Program, a nurse educator or
prospective nurse educator shall submit a letter of interest to
the Oregon Student Assistance Commission. An applicant who is
selected for participation according to rules adopted under ORS
442.540 shall sign a letter of agreement stipulating that the
applicant agrees to practice for a minimum of five calendar years
as a full-time nurse educator in Oregon. + }
{ - (a) - } { + (2) + } For each { - year of nursing
school - } { + of the five years of instruction + }, the
applicant { + shall designate + } { - designates - } an
agreed amount { + of loan repayment + }, not to exceed
{ - $8,800 or the amount determined under subsection (2) of this
section, as a qualifying loan for the program. - } { + the
lesser of 20 percent of the total of the applicant's outstanding
qualifying loans or $12,000 as adjusted under subsection (3) of
this section. The commission shall pay the amount designated to
the nurse educator annually. + }
{ - (b) In the four years following the execution of a
Nursing Services Program agreement with the Oregon Student
Assistance Commission, a nurse agrees to practice for at least
two full years in a nursing critical shortage area in Oregon. - }
{ - (c) For not less than two nor more than four years that
the nurse practices in a nursing critical shortage area, the
commission shall annually pay: - }
{ - (A) For full-time practice, an amount equal to 25 percent
of the total of all qualifying loans made to the nurse. - }
{ - (B) For half-time practice, an amount equal to 12.5
percent of the total of all qualifying loans made to the
nurse. - }
{ - (d) If the nurse does not complete the full service
obligation set forth in paragraphs (b) and (c) 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)(a) - } { + (3)(a) + } On July 1 of each year,
beginning in { - 2002 and ending in 2007 - } { + 2010 + },
the Oregon Student Assistance Commission shall adjust the maximum
dollar amount allowed under subsection
{ - (1)(a) - } { + (2) + } of this section as a qualifying
loan by multiplying the amount by a cost-of-living adjustment as
specified in this subsection.
(b) The cost-of-living adjustment applied on July 1 each year
by the commission shall be equal to the ratio of the seasonally
adjusted United States City Average Consumer Price Index for All
Urban Consumers as published by the Bureau of Labor Statistics of
the United States Department of Labor for April of the calendar
year divided by the value of the same index for April 2001.
(c) Beginning on July 1, { - 2008 - } { + 2010 + }, the
commission shall use the cost-of-living adjustment calculated for
July 1, { - 2007 - } { + 2010 + }.
(d) If the value of the dollar amount determined under
paragraph (a) of this subsection is not a multiple of $100, the
commission shall round the dollar amount to the next lower
multiple of $100.
SECTION 4. 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
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.
{ - (3)(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; 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. - }
{ - (4) - } { + (3) + } 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.
{ - (5) - } { + (4) + } There is established in the State
Treasury a fund, separate and distinct from the General Fund, to
be known as the ASPIRE Program Fund. Moneys received from
donations and grants shall be credited to the ASPIRE Program
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 348.500. Interest earned by
the fund shall be credited to the fund.
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