I
107TH CONGRESS
1ST SESSION
H. R. 3020
To amend the Public Health Service Act to establish a Nurse Corps and
recruitment and retention strategies to address the nursing shortage,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 4, 2001
Mrs. KELLY introduced the following bill; which was referred to the
Committee on Energy and Commerce
A BILL
To amend the Public Health Service Act to establish a Nurse
Corps and recruitment and retention strategies to ad-
dress the nursing shortage, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Nursing Employment
and Education Development Act’’ or the ‘‘NEED Act’’.
SEC. 2. AMENDMENTS TO THE PUBLIC HEALTH SERVICE
ACT.
(a) NURSE CORPS LOAN REPAYMENT PROGRAM.—
Section 846 of the Public Health Service Act (42 U.S.C.
297n) is amended by—
(1) in subsection (a)(3), by inserting ‘‘in a
skilled nursing facility, in a home health agency, in
a public health department, in a nurse-managed
health center,’’ after ‘‘in a public hospital,’’; and
(2) in subsection (g), by striking ‘‘$5,000,000’’
and all that follows to the period and inserting
‘‘$10,000,000 for fiscal year 2002 and $15,000,000
in 2003 and 2004.’’
(b) GRANT PROGRAMS.—Title VIII of the Public
Health Service Act (42 U.S.C. 296 et seq.) is amended
by adding at the end the following:
‘‘PART H—NURSE CORPS SCHOLARSHIP
PROGRAM
‘‘SEC. 851. NURSE CORPS SCHOLARSHIP PROGRAM.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall
establish a Nurse Corps Scholarship program (referred to
in this section as the ‘program’) to provide scholarships
to individuals seeking nursing education in exchange for
service from such individuals in a critical nursing shortage
area upon completion of such education.
‘‘(b) PURPOSE.—The purpose of the program is to
assure that—
‘‘(1) an adequate supply of nurses, at all prepa-
ration levels up to the doctoral level, are available to
meet the nursing needs in critical nursing shortage
areas;
‘‘(2) an adequate supply of nurse educators are
available to meet the nursing education needs of the
Nation; and
‘‘(3) preference will be given to the preparation
of minority nurses and individuals who demonstrate
greatest financial need for nursing and nurse faculty
scholarships.
‘‘(c) CRITICAL NURSING SHORTAGE AREA.—
‘‘(1) IN GENERAL.—The term ‘critical nursing
shortage area’ means—
‘‘(A) an urban or rural area that the Sec-
retary determines is experiencing a nursing
shortage;
‘‘(B) a population that the Secretary deter-
mines has such a shortage; or
‘‘(C) a medical facility or other public or
private facility that the Secretary determines
has a shortage.
‘‘(2) FACTORS TO CONSIDER.—In making a de-
termination regarding a critical nursing shortage
area, the Secretary shall use the criteria in section
846 for not more than 12 months, and after such
period, the following:
‘‘(A) The ratio of available nurses to the
number of individuals in the area or population
group.
‘‘(B) The demonstrated need of a medical
facility or other public health facility in the
area.
‘‘(C) The presence of innovative retention
strategies utilized by eligible facilities.
‘‘(d) ELIGIBILITY.—To be eligible for the program an
individual shall—
‘‘(1) be accepted for enrollment, or be enrolled,
as a full- or part-time student in an accredited nurs-
ing program; and
‘‘(2) submit an application for the program;
and
‘‘(3) submit a written contract, at the time of
submitting the application, accepting payment of a
scholarship in exchange for providing the required
service in a critical nursing shortage area.
‘‘(e) PREFERENCE.—In selecting individuals to par-
ticipate in the program, the Secretary shall give priority
to any application submitted by an individual—
‘‘(1) who has characteristics that increase the
probability that the individual will continue to serve
in a critical nursing shortage area after the period
of obligated service is complete;
‘‘(2) who has an interest in a practice area of
nursing, including teaching nursing, that has unmet
needs; and
‘‘(3) who is from a disadvantaged background
or demonstrates the greatest financial need.
‘‘(f) APPLICATION.—The Secretary shall create an
application form for any individual desiring to participate
in the program, and include in such form—
‘‘(1) a summary of the rights and liabilities of
an individual whose application is approved (and
whose contract is accepted) by the Secretary;
‘‘(2) information respecting meeting a service
obligation through private practice under an agree-
ment; and
‘‘(3) any other information that the individual
needs to understand the program, including a state-
ment of all factors considered in approving applica-
tions for the program.
‘‘(g) CONTRACT.—
‘‘(1) IN
GENERAL.—The Secretary shall pre-
pare a written contract for the program that shall
be provided to any individual desiring to participate
in the program at the time that an application is
provided to such individual.
‘‘(2) CONTENT.—The contract described in
paragraph (1) shall be an agreement between the
Secretary and individual that states that, subject to
paragraph (3)—
‘‘(A) the Secretary agrees to—
‘‘(i) provide the individual with a
scholarship in each such school year or
years for a period of years (not to exceed
4 school years) determined by the indi-
vidual, during which period the individual
is pursuing a course of study; and
‘‘(ii) accept the individual into the
Corps (or for equivalent service as other-
wise provided in this section); and
‘‘(B) the individual agrees to—
‘‘(i) accept provision of such a schol-
arship to the individual;
‘‘(ii) maintain enrollment in a course
of study until the individual completes the
course of study;
‘‘(iii) while enrolled in such course of
study, maintain an acceptable level of aca-
demic standing (as determined under regu-
lations of the Secretary by the educational
institution offering such course of study);
and
‘‘(iv) serve for required period of serv-
ice equal to—
‘‘(I) 1 year for each school year
for which the individual was provided
a scholarship under the program, or
‘‘(II) 2 years,
whichever is greater, as a provider of nurs-
ing services in a critical nursing shortage
area to which he or she is assigned by the
Secretary as a member of the program, or
as otherwise provided in this section.
‘‘(3) LIMITATION.—The contract described in
paragraph (1) shall contain a provision that any fi-
nancial obligation of the United States arising out of
a contract entered into under this section and any
obligation of the individual which is conditioned
thereon, is contingent upon funds being appropriated
for scholarships under this section.
‘‘(h) PAYMENT.—
‘‘(1) IN GENERAL.—A scholarship provided to a
student for a school year under a written contract
under the program shall consist of—
‘‘(A) payment to, or (in accordance with
paragraph (2)) on behalf of, the student of the
amount of—
‘‘(i) the tuition of the student in such
school year; and
‘‘(ii) all other reasonable educational
expenses, including fees, books, and labora-
tory expenses, incurred by the student in
such school year; and
‘‘(B) payment to the student of a stipend
of $400 per month (adjusted in accordance with
paragraph (3)) for each month the student is
enrolled.
‘‘(2) CONTRACT.—The Secretary may contract
with an educational institution, in which a partici-
pant in the program is enrolled, for the payment to
the educational institution of the amounts of tuition
and other reasonable educational expenses described
in paragraph (1)(A).
‘‘(3) MONTHLY STIPEND.—The amount of the
monthly stipend, specified in paragraph (1)(B) and
as previously adjusted (if at all) in accordance with
this paragraph, shall be increased by the Secretary
as the Secretary determines to be reasonable.
‘‘(i) BREACH OF AGREEMENT.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
if an individual participates in the program under
this section and agrees to provide health services for
a period of time in consideration for receipt of an
award of Federal funds for education as a nurse, the
following applies:
‘‘(A) FAILURE REGARDING EDUCATION.—
The individual is liable to the Federal Govern-
ment for the amount of such award (including
amounts provided for expenses related to such
attendance), and for interest on such amount at
the maximum legal prevailing rate, if the
individual—
‘‘(i) fails to maintain an acceptable
level of academic standing in the nursing
program (as indicated by the program in
accordance with requirements established
by the Secretary);
‘‘(ii) is dismissed from the nursing
program for disciplinary reasons; or
‘‘(iii) voluntarily terminates the nurs-
ing program.
‘‘(B) FAILURE REGARDING SERVICE.—The
individual is liable to the Federal Government
for the amount of such award (including
amounts provided for expenses related to such
attendance), and for interest on such amount at
the maximum legal prevailing rate, if the indi-
vidual fails to provide health services in accord-
ance with the program for the required time pe-
riod.
‘‘(2) WAIVER OR SUSPENSION OF LIABILITY.—
The Secretary shall waive liability under paragraph
(1) if compliance by the individual with the agree-
ment involved is impossible, or would involve ex-
treme hardship to the individual, and if enforcement
of the agreements with respect to the individual or
facility would be unconscionable.
‘‘(j) INFORMATION
OF
THE PROGRAM.—The Sec-
retary shall distribute material regarding the program to
junior and senior high schools, community colleges, uni-
versities, and schools of nursing. The Secretary shall en-
courage such schools to disseminate such material to the
students of such schools.
‘‘(k) SERVICE INFORMATION.—The Secretary shall
provide to an individual who has participated in the pro-
gram and is nearing the conclusion of his or her service
obligation, information regarding other opportunities for
nursing in critical nursing shortage areas.
‘‘(l) REPORT.—Not later than 18 months after the
first loan cycle, and annually thereafter, the Secretary
shall prepare and submit to Congress a report describing
the program, including statements regarding—
‘‘(1) the number of enrollees, scholarship, and
grant recipients by year of study;
‘‘(2) the number of graduates;
‘‘(3) the amount of scholarship payments made
for each of tuition, stipends, and other expenses;
‘‘(4) which educational institutions the scholar
attended;
‘‘(5) the number and placement location of the
scholars;
‘‘(6) the default rate and actions required;
‘‘(7) the amount of outstanding default funds;
‘‘(8) to the extent that can be determined, the
reason for the default;
‘‘(9) the demographics of the individuals par-
ticipating in the scholarship program; and
‘‘(10) recommendations for future modifications
of the scholarship program.
‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section,
$10,000,000 for fiscal year 2002 and $15,000,000 for fis-
cal years 2003 and 2004.
‘‘PART I—NURSE RECRUITMENT
‘‘SEC. 855. PUBLIC AWARENESS AND EDUCATION CAM-
PAIGN.
‘‘(a) NATIONAL CAMPAIGN.—
‘‘(1) IN GENERAL.—The Secretary shall develop
and administer a comprehensive national multi-
media public education campaign to enhance the
image of the nursing profession, promote diversity in
the workforce, encourage individuals to enter the
nursing profession, and encourage career develop-
ment for individuals in the nursing profession.
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this subsection, $5,0000,000 for fiscal year 2002,
and such sums as may be necessary for fiscal years
2003 and 2004.
‘‘(b) STATE CAMPAIGNS.—
‘‘(1) IN GENERAL.—The Secretary shall award
grants to eligible entities to establish the multi-
media campaigns described in subsection (a) at a
State level.
‘‘(2) DEFINITIONS.—
‘‘(A) ELIGIBLE ENTITY.—The term ‘eligi-
ble entity’ means a professional State nursing
association, State health care provider associa-
tion, school of nursing, and any other entity
that provides similar services or serves a like
function.
‘‘(B) STATE HEALTH CARE PROVIDER AS-
SOCIATION.—The term ‘State health care pro-
vider association’ means a professional associa-
tion of hospitals, nursing homes, home health
care agencies, hospices, consortia of said asso-
ciations, or other such entities deemed eligible
by the Secretary.
‘‘(3) LIMITATION.—An eligible entity that re-
ceives a grant under this subsection shall not use
funds received through such grant to advertise par-
ticular employment opportunities or recruit members
or affiliates of such entity.
‘‘(4) APPLICATION.—Each eligible entity that
desires a grant under this subsection shall submit an
application to the Secretary at such time, in such
manner, and containing such information as the Sec-
retary may reasonably require.
‘‘(5) EQUITABLE
BROADCASTING.—The cam-
paigns described in paragraph (1) shall be broadcast
in such a manner as to inform diverse populations
throughout the State of nursing opportunities, in-
cluding rural populations.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section,
$5,000,000 for fiscal year 2002, and such sums as may
be necessary for fiscal years 2003 and 2004.
‘‘SEC. 856. AREA HEALTH EDUCATION CENTERS PROGRAM.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall
award grants to schools of nursing to expand the operation
of area health education centers under section 751 to work
in communities to develop models of excellence for school
nurses, public health nurses, perinatal outreach nurses,
and other community-based nurses, or to expand any jun-
ior and senior high school mentoring programs to include
a nurse mentoring program.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section,
$5,000,000 for fiscal year 2002, and such sums as may
be necessary for fiscal years 2003 and 2004.
‘‘SEC. 857. COMMUNITY NURSE OUTREACH GRANTS.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary, acting
through the Director of the Office of Rural Health Policy
(of the Health Resources and Services Administration)
shall award grants to community-based partnerships to es-
tablish programs to recruit and retain nurses.
‘‘(b) COMMUNITY-BASED PARTNERSHIPS.—The term
‘community-based partnerships’ means a health care pro-
vider and a community partner, such as a school, nursing
program, faith-based organization, university, community
college, public health department, State health care pro-
vider association, professional State nursing association,
hospice care program or other entity deemed eligible by
the Secretary, that forms a partnership with not less than
2 other entities in the community to develop a network
to recruit and retain nurses in the community.
‘‘(c) PRIORITY.—In awarding grants under sub-
section (a), the Secretary shall give priority to—
‘‘(1) community-based partnerships seeking to
recruit and retain nurses in rural communities and
medically underserved urban communities, and other
communities experiencing a nursing shortage; and
‘‘(2) community-based partnerships seeking to
address such needs as dependent care, transpor-
tation, or others as deemed appropriate by the Sec-
retary.
‘‘(d) APPLICATION.—A community-based partnership
seeking a grant under this section shall submit an applica-
tion to the Secretary at such time, in such manner, and
containing such information as the Secretary may reason-
ably require.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section,
$10,000,000 for fiscal year 2002, and such sums as may
be necessary for fiscal years 2003 and 2004.
‘‘SEC. 858. EDUCATIONAL ASSISTANCE IN NURSING RE-
GARDING INDIVIDUALS FROM DIVERSE OR
DISADVANTAGED BACKGROUNDS.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall
award grants to eligible entities to assist individuals from
disadvantaged backgrounds to pursue nursing education
opportunities and nursing career positions.
‘‘(b) ELIGIBLE ENTITY.—In this section, the term
‘eligible entity’ has the same meaning given such term in
section 801(1).
‘‘(c) USE OF FUNDS.—An eligible entity that receives
a grant under subsection (a) shall use funds received
under such grant to increase nursing education opportuni-
ties for individuals from disadvantaged backgrounds, in-
cluding by providing student scholarships, stipends, pre-
entry preparation, and retention activities.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section,
$10,000,000 for fiscal year 2002, and such sums as may
be necessary for fiscal years 2003 and 2004.
‘‘PART J—STRENGTHENING THE NURSE
WORKFORCE
‘‘SEC. 861. GRANTS FOR CAREER LADDER PROGRAMS.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall
award grants to eligible entities to develop programs that
aid and encourage individuals in nursing programs to pur-
sue additional nursing education and training.
‘‘(b) DEFINITIONS.—
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means a school of nursing or a health care fa-
cility, or a partnership of such school and facility.
‘‘(2) HEALTH
CARE
FACILITY.—The term
‘health care facility’ means a hospital, nursing home,
home health care agency, hospice, federally qualified
health center, federally qualified community health
center, rural health clinic, or public health clinic.
‘‘(c) USE OF FUNDS.—An eligible entity that receives
a grant under subsection (a) shall use such funds received
through such grant to—
‘‘(1) provide career counseling to individuals
seeking to advance within the nursing profession;
‘‘(2) promote career mobility for nursing per-
sonnel by providing training in a variety of settings
and specialty training; and
‘‘(3) develop programs to facilitate educational
advancement for individuals with existing degrees or
health care training.
‘‘(d) APPLICATION.—An eligible entity seeking a
grant under subsection (a) shall submit an application to
the Secretary at such time, in such a manner, and con-
taining such information as the Secretary may reasonably
require.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section,
$10,000,000 for fiscal year 2002, and such sums as may
be necessary for fiscal years 2003 and 2004.
‘‘SEC. 862. GRANTS FOR NURSE TRAINING.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall
award grants to eligible entities to encourage individuals
to enter the nursing profession with a focus on providing
long-term care.
‘‘(b) DEFINITIONS.—
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means a school of nursing or a health care fa-
cility, or a partnership of such school and facility.
‘‘(2) HEALTH
CARE
FACILITY.—The term
‘health care facility’ means a hospital, nursing home,
home health care agency, hospice, federally qualified
health center, federally qualified community health
center, rural health clinic, or public health clinic.
‘‘(c) USE OF FUNDS.—An eligible entity that receives
a grant under subsection (a) shall use such funds received
through such grant to—
‘‘(1) provide education and training to individ-
uals who will provide long-term care; and
‘‘(2) expand the enrollment in nursing pro-
grams, especially programs that focus on training in-
dividuals in the provision of long-term care.
‘‘(d) APPLICATION.—An eligible entity seeking a
grant under subsection (a) shall submit an application to
the Secretary at such time, in such a manner, and con-
taining such information as the Secretary may reasonably
require.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section,
$10,000,000 for fiscal year 2002, and such sums as may
be necessary for fiscal years 2003 and 2004.
‘‘SEC. 863. GRANTS FOR INTERNSHIP AND RESIDENCY PRO-
GRAMS.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall
award grants to an eligible entity to develop internship
and residency programs that encourage mentoring and the
development of specialties.
‘‘(b) DEFINITIONS.—
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means a health care facility, or a partnership
of a school of nursing and health care facility.
‘‘(2) HEALTH
CARE
FACILITY.—The term
‘health care facility’ means a hospital, nursing home,
home health care agency, hospice, federally qualified
health center, federally qualified community health
center, rural health clinic, or public health clinic.
‘‘(c) USE OF FUNDS.—An eligible entity that receives
a grant under subsection (a) shall use such funds received
through such grant to—
‘‘(1) develop internship and residency programs
and curriculum and training programs for graduates
of a nursing program;
‘‘(2) provide funding for faculty and mentors;
and
‘‘(3) provide funding for nurses participating in
internship and residency programs on both a full-
time and part-time basis.
‘‘(d) APPLICATION.—An eligible entity seeking a
grant under subsection (a) shall submit an application to
the Secretary at such time, in such a manner, and con-
taining such information as the Secretary may reasonably
require.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section,
$10,000,000 for fiscal year 2002, and such sums as may
be necessary for fiscal years 2003 and 2004.
‘‘SEC. 864. GRANTS FOR EDUCATION OF REGISTERED
NURSES ON CURRENT TRENDS IN NURSING.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall
award grants to eligible entities to develop curricula and
sponsor courses to educate registered nurses (including
those whose licenses have lapsed) on current trends in
nursing.
‘‘(b) DEFINITIONS.—
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means a school of nursing or a health care fa-
cility, or a partnership of such school and facility.
‘‘(2) HEALTH
CARE
FACILITY.—The term
‘health care facility’ means a hospital, nursing home,
home health care agency, hospice, federally qualified
health center, federally qualified community health
center, rural health clinic, or public health clinic.
‘‘(c) APPLICATION.—An eligible entity seeking a
grant under subsection (a) shall submit an application to
the Secretary at such time, in such a manner, and con-
taining such information as the Secretary may reasonably
require.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section,
$10,000,000 for fiscal year 2002, and such sums as may
be necessary for fiscal years 2003 and 2004.
‘‘PART K—NURSE FACULTY DEVELOPMENT
‘‘SEC. 865. FAST-TRACK NURSING FACULTY LOAN PRO-
GRAM.
‘‘(a) PROGRAM AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary is authorized
to enter into an agreement for the establishment and
operation of a student loan fund with any public or
nonprofit private school of nursing to aid masters or
doctoral level students.
‘‘(2) LIMITATION.—Assistance provided under
paragraph (1) for a part-time masters degree pro-
gram shall be provided for not more than 6 years
and for a part-time doctoral degree program for not
more than 7 years.
‘‘(b) AGREEMENT.—Each agreement entered into
under this section shall—
‘‘(1) provide for the establishment of a student
loan fund by the school;
‘‘(2) provide for the deposit in the fund of Fed-
eral contributions, additional amounts received from
other sources, collections of principal and interest on
loans made from the fund, and any other earnings
of the fund;
‘‘(3) provide that the fund shall only be used
for loans to students of the school in accordance
with the agreement and for costs of collection of
such loans and interest thereon; and
‘‘(4) provide that the loan shall only be used to
meet the costs of projects that help individuals seek
a masters degree or a doctoral degree.
‘‘(c) LIMITATIONS.—The total of the loans for any
academic year made by schools of nursing from loan funds
established pursuant to agreements under this section may
not exceed $35,000 in the case of any student. In the
granting of such loans, a school shall give preference to
persons with exceptional financial need.
‘‘(d) TERMS AND CONDITIONS OF LOANS.—Loans
from any student loan fund by any school shall be made
on such terms and conditions as the school may determine,
subject to limitations the Secretary may prescribe (by reg-
ulation or in the agreement with the school) to prevent
‘‘(B) periods (up to 10 years) during which
the borrower is pursuing a full-time or half-time
course of study in advanced nursing education
at a school of nursing;
‘‘(3) the liability to repay the unpaid balance of
such loan and accrued interest thereon shall be can-
celed upon the death of the borrower, or if the Sec-
retary determines that the borrower has become per-
manently and totally disabled;
‘‘(4) such a loan shall bear interest on the un-
paid balance of the loan, computed only for periods
during which the loan is repayable, at the rate of 5
percent per annum;
‘‘(5) such a loan shall be made without security
or endorsement, except that if the borrower is a
minor and the note or other evidence of obligation
executed by the borrower would not, under the appli-
cable law, create a binding obligation, either security
or endorsement may be required;
‘‘(6) no note or other evidence of any such loan
may be transferred or assigned by the school making
the loan except that, if the borrower transfers to an-
other school participating in the program, such note
or other evidence of a loan may be transferred to
such other school;
‘‘(7) any student receiving a loan shall agree to
teach at an accredited school of nursing for each
year of assistance after the masters or doctoral de-
gree has been obtained; and
‘‘(8) pursuant to uniform criteria established by
the Secretary, the repayment period established
under paragraph (2) for any student borrower who
during the repayment period failed to make consecu-
tive payments and who, during the last 12 months
of the repayment period, has made at least 12 con-
secutive payments may be extended for a period not
to exceed 10 years.
‘‘(e) CANCELED LOAN.—Where all or any part of a
loan, or interest, is canceled under this section, the Sec-
retary shall pay to the school an amount equal to the
school’s proportionate share of the canceled portion, as de-
termined by the Secretary.
‘‘(f) PAYMENTS.—Any loan for any year by a school
from a student loan fund established pursuant to an
agreement under this section shall be made in such install-
ments as the Secretary determines, and, upon notice to
the Secretary by the school that any recipient of a loan
is failing to maintain satisfactory standing, any or all fur-
ther installments of the loans shall be withheld, as may
be appropriate.
‘‘(g) CHARGES.—Subject to regulations of the Sec-
retary and in accordance with this section, a school shall
assess a charge with respect to a loan from the loan fund
established pursuant to an agreement under this section
for failure of the borrower to pay all or any part of an
installment when it is due and, in the case of a borrower
who is entitled to deferment of the loan under subsection
(d)(2), for any failure to file timely and satisfactory evi-
dence of such entitlement. No such charge may be made
if the payment of such installment or the filing of such
evidence is made within 60 days after the date on which
such installment or filing is due. The amount of any such
charge may not exceed an amount equal to 6 percent of
the amount of such installment. The school may elect to
add the amount of any such charge to the principal
amount of the loan as of the first day after the day on
which such installment or evidence was due, or to make
the amount of the charge payable to the school not later
than the due date of the next installment after receipt by
the borrower of notice of the assessment of the charge.
‘‘(h) REPAYMENT.—Upon application by a person
who received and is under an obligation to repay, any loan
made under this section, the Secretary may repay (without
liability to the applicant) all or a part of such loan, and
any interest or portion outstanding, if the applicant—
‘‘(1) failed to complete the nursing studies with
respect to which such loan was made;
‘‘(2) is in exceptionally needy circumstances;
and
‘‘(3) has not resumed, or cannot reasonably be
expected to resume, such nursing studies within 2
years following the date upon which the applicant
terminated the studies with respect to which such
loan was made.
‘‘(i) APPLICATIONS.—The Secretary shall from time
to time set dates by which schools of nursing must file
applications for Federal capital contributions.
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section,
$10,000,000 for fiscal year 2002 and $15,000,000 for fis-
cal years 2003 and 2004.
‘‘SEC. 866. STIPEND AND SCHOLARSHIP PROGRAM.
‘‘(a) PROGRAM AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a scholarship and stipend program to encourage
individuals to seek a masters degree or a doctoral
degree at a school of nursing.
‘‘(2) LIMITATION.—Assistance provided under
paragraph (1) for a part-time masters degree pro-
gram shall be provided for not more than 6 years
and for a part-time doctoral degree program not
more than 7 years.
‘‘(b) ELIGIBILITY.—To be eligible to receive a schol-
arship or stipend under this section, an individual shall—
‘‘(1) submit an application to the Secretary at
such time, in such manner, and containing such in-
formation as the Secretary may reasonably require;
‘‘(2) enter into an agreement with the Secretary
to accept the scholarship in consideration for re-
maining enrolled in a nursing school and teaching at
an accredited school of nursing for 1 year for each
year of assistance with a course load determined by
the school of nursing where the teaching will take
place.
‘‘(c) APPLICATION.—The Secretary shall disseminate
application forms to individuals and in such forms,
include—
‘‘(1) a summary of the rights and liabilities of
an individual whose application is approved by the
Secretary; and
‘‘(2) information respecting meeting the service
obligation described in subsection (b)(2).
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section,
$10,000,000 for fiscal year 2002 and $15,000,000 for fis-
cal years 2003 and 2004.
‘‘PART L—NATIONAL COMMISSION ON NURSING
CRISIS
‘‘SEC. 871. NATIONAL COMMISSION ON NURSING CRISIS.
‘‘(a) IN GENERAL.—There is established a commis-
sion known as the National Commission on the Nursing
Crisis (referred to in this section as the ‘Commission’).
‘‘(b) DUTIES.—The Commission shall meet at least
four times and shall study and make recommendations to
the appropriate committees of Congress regarding—
‘‘(1) agency initiatives and legislative actions
that are necessary to address the nursing shortage
in the short and long term;
‘‘(2) nurse training, nurse recruitment, reten-
tion of nurses, workplace issues for nurses, funding
for nursing programs in this Act and the Social Se-
curity Act, and infrastructure issues;
‘‘(3) the facilitation of career advancement
within the nursing profession;
‘‘(4) attracting middle and high school students
into nursing careers;
‘‘(5) nurse education issues; and
‘‘(6) the effectiveness of current nursing re-
cruitment and retention programs, and what
changes might be needed.
‘‘(c) MEMBERSHIP.—Not later than 3 months after
the date of enactment of this section, the Comptroller
General shall appoint members of the Commission (taking
into account rural and urban areas, geographic diversity,
and the diversity of the patient population within such
areas) which shall be composed of 19 members of whom—
‘‘(1) at least 2⁄3 of such members shall be
nurses and nursing assistants with different levels of
education, and a significant portion of such shall be
currently practicing as nurses; and
‘‘(2) the other portion of such members shall
be—
‘‘(A) representatives of schools of nursing;
‘‘(B) nursing students;
‘‘(C) representatives of primary and sec-
ondary schools;
‘‘(D) representatives of the Departments of
Health and Human Services and Education;
‘‘(E) representatives of public health de-
partments;
‘‘(F) representatives of employers and fa-
cilities, such as hospitals, long term care facili-
ties, and home health agencies;
‘‘(G) patients and representatives of pa-
tients;
‘‘(H) representatives of professional nurs-
ing associations;
‘‘(I) representatives of health plans or
health insurance issuers;
‘‘(J) union representatives who are nurses;
and
‘‘(K) representatives of other health care
provider groups.
‘‘(d) CHAIRPERSON.—The Secretary shall serve as
the chairperson of the Commission.
‘‘(e) SUBCOMMITTEES.—The Chairperson shall have
the authority to create subcommittees as the Chairperson
determines is necessary.
‘‘(f) STAFF.—The Secretary shall provide any staff
that the Commission shall require.
‘‘(g) QUORUM.—Nine members of the Commission
shall constitute a quorum.
‘‘(h) VACANCIES.—Any vacancy in the Commission
shall not affect the powers of the Commission, but shall
be filled in the same manner as the original appointment
and shall be made not later than 30 days after the date
on which the Commission is given notice of such vacancy.
‘‘(i) COMPENSATION.—Members of the Commission
shall receive no additional compensation by reason of their
service to the Commission. Each member shall be allowed
travel expenses, including per diem in lieu of subsistence,
at rates authorized for employees of agencies under sub-
chapter I of chapter 57 of title 5, United States Code,
while away from their homes or regular places of business
in the performance of services for the Commission.
‘‘(j) REPORT.—Not later than 15 months after the
date of enactment of this section, the Commission shall
prepare and submit to Congress and the Secretary, a re-
port that makes the recommendations described in sub-
section (b) and reports on any best practices that such
Commission determines.
‘‘(k) SUNSET.—This section shall be effective for 15
months from the date of enactment of this section.
‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section,
$500,000 for fiscal year 2002.’’.
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