Nurse loan repayment program

§ 2807-aa. Nurse loan repayment program. 1.(a) Monies shall be made
available, subject to appropriations, for purposes of loan repayment
awards in accordance with the provisions of this section for registered
professional nurses licensed to practice under section sixty-nine
hundred five of the education law and licensed practical nurses licensed
under section sixty-nine hundred six of the education law.
Notwithstanding sections one hundred twelve and one hundred sixty-three
of the state finance law and sections one hundred forty-two and one
hundred forty-three of the economic development law, or any other
contrary provision of law, such funding shall be allocated regionally
with one-third of available funds going to New York city and two-thirds
of available funds going to the rest of the state and shall be
distributed in a manner to be determined by the commissioner without a
competitive bid or request for proposals.

(i) Loan repayment awards made under this section shall be awarded to
repay student loans of nurses who work in areas determined to be
underserved areas in New York state and who agree to work in such areas
for a period of three consecutive years. A nurse may be deemed to be
practicing in an underserved area if they practice in a facility,
physician's office, nurse practitioner's office, or physician
assistant's office that primarily serves an underserved population,
without regard to whether the population or the facility or office is
located in an underserved area. For purposes of this section,
"underserved areas" shall be located in New York state and shall
include, but not be limited to, areas designated by the federal
government as a health professional shortage area, a medically
underserved area, or medically underserved population, non-profit
diagnostic and treatment centers which primarily serve Medicaid eligible
or uninsured patients, and other areas and populations as determined by
the commissioner.

(ii) Loan repayment awards made under this section shall not exceed
the total qualifying outstanding debt of the nurse from student loans to
cover tuition and other related educational expenses, made by or
guaranteed by the federal or state government, or made by a lending or
educational institution approved under title IV of the federal higher
education act. Loan repayment awards shall be used solely to repay such
outstanding debt.

(iii) Nurses shall be eligible for a loan repayment award to be
determined by the commissioner over a three-year period distributed as
follows: thirty percent of total award for the first year; thirty
percent of total award for the second year; and any unpaid balance of
the total award not to exceed the maximum award amount for the third
year.

(iv) In the event that a three-year commitment under this section is
not fulfilled, the recipient shall be responsible for repayment of
amounts paid which shall be calculated in accordance with the formula
set forth in subdivision (b) of section two hundred fifty-four-o of
title forty-two of the United States Code, as amended, or any
regulations made thereunder.

(b) The commissioner may postpone, change or waive the service
obligation and repayment amounts set forth in subparagraphs (i) and (iv)
of paragraph (a) of this subdivision in individual circumstances where
there is compelling need or hardship.

2. To develop a streamlined application process for the nurse loan
repayment program set forth under this section, the department shall
appoint a stakeholder work group from recommendations made by
associations representing nurses, general hospitals and other health
care facilities. Such recommendations shall be made by September
thirtieth, two thousand twenty-two.

3. In the event there are undistributed funds within amounts made
available for distributions under this section, such funds shall be
reallocated and distributed in current or subsequent distribution
periods in a manner determined by the commissioner for the purpose set
forth in this section.