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SB-155 Student financial aid: State Nursing Assumption Program of Loans for Education: school nurses. (2009-2010)

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Amended  IN  Senate  April 27, 2009
Amended  IN  Senate  March 26, 2009

CALIFORNIA LEGISLATURE— 2009–2010 REGULAR SESSION

Senate Bill
No. 155


Introduced  by  Senator Wright
(Coauthor(s): Senator Alquist, Wiggins, Wyland)

February 12, 2009


An act to add and repeal Article 3 (commencing with Section 70130) of Chapter 3 of Part 42 of Division 5 of Title 3 of the Education Code, relating to student financial aid.


LEGISLATIVE COUNSEL'S DIGEST


SB 155, as amended, Wright. Student financial aid: State Nursing Assumption Program of Loans for Education: school nurses.
Existing law establishes within the State Nursing Assumption Program of Loans for Education (SNAPLE), a program under which any person who is enrolled in an eligible institution, and who agrees to work full time as a registered nurse in a state-operated 24-hour facility, including a prison, psychiatric hospital, or veterans home, that employs registered nurses, is eligible to receive a conditional loan assumption agreement, to be redeemed upon becoming employed as a clinical registered nurse in an eligible facility.
This bill would establish a program within the SNAPLE, under which a student who is enrolled in an eligible program, and who agrees to be employed as a school nurse in an eligible school or school district, would be eligible to receive a conditional loan assumption agreement, to be redeemed upon becoming employed as a school nurse in an eligible public elementary school or secondary school. The bill would provide for a progressive assumption of the amount of a qualifying loan over 4 consecutive years of qualifying employment as a school nurse, up to a total loan assumption of $11,000. The program would be repealed on January 1, 2016.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Article 3 (commencing with Section 70130) is added to Chapter 3 of Part 42 of Division 5 of Title 3 of the Education Code, to read:
Article  3. School Nurses

70130.
 As used in this article, the following terms have the following meanings:
(a) “Commission” means the Student Aid Commission.
(b) “Eligible institution” means a postsecondary institution that is determined by the Student Aid Commission to meet both of the following requirements:
(1) The institution is eligible to participate in state and federal financial aid programs.
(2) The institution maintains a program of professional preparation for the clear school nurse services credential that has been approved by the Commission on Teacher Credentialing.
(c) “Eligible school” means a school that meets any of the following criteria:
(1) It serves a large population of pupils from low-income families, as designated by the Superintendent.
(2) The institution has 20 percent or more teachers holding emergency-type permits including, but not limited to, any of the following:
(A) Provisional internships.
(B) Short-term staff permits.
(C) Credential waivers.
(D) Substitute permits.
(3) It is a school that is ranked in the lowest two deciles on the Academic Performance Index.
(4) It is a school that serves a rural area.

70131.
 (a) Program participants shall meet all of the following eligibility criteria prior to selection in the program and shall continue to meet these criteria, as appropriate, during the payment periods:
(1) The applicant is enrolled in a program to complete training or coursework in order to obtain a clear school nurse services credential and agrees to work as a school nurse in an eligible school.
(2) The applicant is currently enrolled in, or has been admitted to, a program in which he or she will be enrolled on at least a half-time basis, as determined by the participating institution. The applicant shall agree to maintain satisfactory academic progress and a minimum of half-time enrollment, as defined by the participating eligible institution.
(A) Except as provided in subparagraphs (B) and (C), if a person participating in the program fails to maintain at least half-time enrollment, as required by this article, under the terms of the agreement pursuant to paragraph (2), the loan assumption agreement shall be invalidated and the participant shall be fully liable for all student loan obligations. This subparagraph shall not apply if the participant is in his or her final semester or quarter in school and has no additional coursework required to obtain his or her professional clear school nurse services credential.
(B) Notwithstanding subparagraph (A), if a program participant is unable to maintain at least half-time enrollment due to serious illness, pregnancy, or other natural causes, or is called to active military duty status, the participant is not required to assume full liability for the student loan obligation for a period not to exceed one calendar year, unless approved by the commission for a longer period.
(C) If a natural disaster prevents a program participant from maintaining at least half-time enrollment due to the interruption of instruction at the eligible institution, the term of the loan assumption agreement shall be extended for a period not to exceed one calendar year, unless approved by the commission for a longer period.
(3) The applicant has been judged by his or her postsecondary institution, school district, or county office of education to have outstanding ability on the basis of criteria that may include, but need not be limited to, any of the following:
(A) Grade point average.
(B) Test scores.
(C) Faculty evaluations.
(D) Interviews.
(E) Other recommendations.
(4) The applicant has received, or is approved to receive, a loan under one or more of the following designated loan programs:
(A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071 et seq.).
(B) Any educational loan program approved by the commission.
(5) The applicant has agreed to be employed full time, for at least four consecutive academic years after obtaining a clear school nurse services credential, in a public elementary or secondary school in this state that, at the time that the school nurse is hired, is an eligible school, or in a public elementary or secondary school district in this state that has within it at least one school, that is in the school nurse’s service territory, that at the time the school nurse is hired, is an eligible school.
(b) For the purpose of calculating eligible years of school nurse service for the redemption of an award, the designation by the Superintendent of a newly opened school pursuant to Section 52056 shall apply retroactively from the date the school first opened.
(c) A person participating in the program pursuant to this section shall not enter into more than one agreement.
(d) A person participating in the program pursuant to this section shall not owe a refund on any state or federal educational grant nor have defaulted on any student loan.

70132.
 The commission shall commence loan assumption payments, as specified in Section 70133, upon verification that the applicant has fulfilled all of the following:
(a) The applicant has received a California clear school nurse services credential, or an equivalent credential from another state, authorizing school nurse services for kindergarten or any of grades 1 to 12, inclusive.
(b) The applicant has provided full-time employment as a school nurse, or the equivalent on a part-time basis, in a public elementary or secondary school for the equivalent of one school year.
(c) The applicant has met the requirements of the agreement and all other pertinent conditions of this article.

70133.
 (a) The terms of a loan assumption granted under this article shall be as follows, subject to the specific terms of each agreement:
(1) After a program participant has completed one school year of employment as a school nurse pursuant to Section 70132, the commission shall assume up to two thousand dollars ($2,000) of the participant’s outstanding liability under one or more of the designated educational loan programs.
(2) After a program participant has completed two consecutive school years of employment as a school nurse, the commission shall assume up to an additional three thousand dollars ($3,000) of the participant’s outstanding liability under one or more of the designated educational loan programs, for a total loan assumption of up to five thousand dollars ($5,000).
(3) After a program participant has completed three consecutive school years of employment as a school nurse, the commission shall assume up to a maximum of an additional three thousand dollars ($3,000) of the participant’s outstanding liability under one or more of the designated educational loan programs, for a total loan assumption of up to eight thousand dollars ($8,000).
(4) After a program participant has completed four consecutive school years of employment as a school nurse, the commission shall assume up to a maximum of an additional three thousand dollars ($3,000) of the participant’s outstanding liability under one or more of the designated educational loan programs, for a total loan assumption of up to eleven thousand dollars ($11,000).
(b) For purposes of this section, “school year” means at least 175 school days or its equivalent.
(c) An applicant who is employed on less than a full-time basis may participate in the program, but shall not be eligible for loan repayment until that person completes employment as a school nurse for the equivalent of a full-time academic year.

70134.
 (a) Except as provided in subdivision (b), if a program participant fails to complete a minimum of four consecutive school years of employment as a school nurse on a full-time basis, or the equivalent on a part-time basis, as required by this article, under the terms of the agreement pursuant to paragraph (5) of subdivision (a) of Section 70131, the participant shall be fully liable for all student loan obligations remaining after the commission’s assumption of loan liability for the last year of qualifying service pursuant to Section 70131.
(b) Notwithstanding subdivision (a), if a program participant becomes unable to complete one of the four consecutive years of employment as a school nurse on a full-time basis, or the equivalent on a part-time basis, due to serious illness, pregnancy, or other natural causes, or is called to active military duty status, the participant shall receive a deferral of the resumption of full liability for the loan for a period not to exceed one calendar year, unless approved by the commission for a longer period. The commission shall make no further payments under the loan assumption agreement until the applicable requirements specified in Section 70132 have been satisfied.
(c) (1) Notwithstanding subdivision (a), a program participant shall receive a deferral of the resumption of full liability for the loan for a period not to exceed one calendar year, unless approved by the commission for a longer period, if the participant becomes unable to complete one of the four consecutive years of employment as a school nurse due to being laid off, reassigned, or other reasons beyond the control of the participant, as determined by the commission.
(2) The commission shall make no further payments under the loan assumption agreement until the applicable requirements specified in Section 70132 have been satisfied.
(d) If a program participant fails to redeem an agreement for student loan assumption within 10 years of the agreement’s issuance, the participant shall be fully liable for all student loan obligations.

70135.
 (a) The commission shall administer this article, and shall adopt rules and regulations for that purpose. The rules and regulations shall include, but need not be limited to, provisions regarding the period of time during which an agreement shall remain valid, the reallocation of resources in light of agreements that are not utilized by program participants, the failure, for any reason, of a program participant to complete a minimum of four consecutive years of employment as a school nurse, and the development of projections for funding purposes.
(b) The commission shall solicit the advice of representatives from postsecondary education institutions, the State Department of Education, the Commission on Teacher Credentialing, school districts, and county offices of education regarding proposed rules and regulations.

70137.
 The commission shall report annually to the Legislature on the program established under this article. The report shall include, but shall not be limited to, all of the following:
(a) The total number of loan assumption agreements offered, by education level and institution.
(b) The number of loan assumption agreements paid out, by education level and institution.
(c) The number of loan assumption agreements that are redeemed, by year of service.
(d) The annual and cumulative attrition rate of participants, by education level and institution.

70139.
 (a) It is the intent of the Legislature that, in any fiscal year, the commission should award the number of loan assumption agreements authorized by the Governor and the Legislature in the annual Budget Act for that year for the assumption of loans pursuant to this article.
(b) It is further the intent of the Legislature that funding for the award of loan assumption agreements pursuant to the undersubscribed loan assumption program in Article 2 (commencing with Section 70120) should be shifted to the loan assumption program in this article, and that an authorization to award loan assumption agreements pursuant to this article should not result in a decrease in the number of loan assumption agreements authorized for purposes of Article 5 (commencing with Section 69612) of Chapter 2.

70140.
 This article shall become inoperative on July 1, 2015, and, as of January 1, 2016, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2016, deletes or extends the dates on which it becomes inoperative and is repealed.