[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 721 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 721

 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 SENATE OF THE UNITED STATES

                             April 5, 2001

 Mr. Hutchinson (for himself, Ms. Mikulski, Mr. Warner, Mr. Enzi, Mr. 
   Bingaman, Mr. Roberts, Mr. Frist, and Ms. Collins) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
 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.

    Be it enacted by the Senate and House of Representatives 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 preparation 
        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 Secretary 
                determines is experiencing a nursing shortage;
                    ``(B) a population that the Secretary determines 
                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 determination 
        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 nursing 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 participate 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 agreement; and
            ``(3) any other information that the individual needs to 
        understand the program, including a statement of all factors 
        considered in approving applications for the program.
    ``(g) Contract.--
            ``(1) In general.--The Secretary shall prepare 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 individual, during 
                        which period the individual is pursuing a 
                        course of study; and
                            ``(ii) accept the individual into the Corps 
                        (or for equivalent service as otherwise 
                        provided in this section); and
                    ``(B) the individual agrees to--
                            ``(i) accept provision of such a 
                        scholarship 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 academic 
                        standing (as determined under regulations of 
                        the Secretary by the educational institution 
                        offering such course of study); and
                            ``(iv) serve for required period of service 
                        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 nursing 
                        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 financial 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 laboratory 
                        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 participant 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 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 
                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 nursing 
                        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 individual 
                fails to provide health services in accordance with the 
                program for the required time period.
            ``(2) Waiver or suspension of liability.--The Secretary 
        shall waive liability under paragraph (1) if compliance by the 
        individual with the agreement involved is impossible, or would 
        involve extreme 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 Secretary shall distribute 
material regarding the program to junior and senior high schools, 
community colleges, universities, and schools of nursing. The Secretary 
shall encourage 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 program 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 participating 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 fiscal years 2003 and 2004.

                      ``PART I--NURSE RECRUITMENT

``SEC. 855. PUBLIC AWARENESS AND EDUCATION CAMPAIGN.

    ``(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 development 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 `eligible entity' 
                means a professional State nursing association, State 
                health care provider association, school of nursing, 
                and any other entity that provides similar services or 
                serves a like function.
                    ``(B) State health care provider association.--The 
                term `State health care provider association' means a 
                professional association of hospitals, nursing homes, 
                home health care agencies, hospices, consortia of said 
                associations, or other such entities deemed eligible by 
                the Secretary.
            ``(3) Limitation.--An eligible entity that receives a grant 
        under this subsection shall not use funds received through such 
        grant to advertise particular 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 Secretary may reasonably require.
            ``(5) Equitable broadcasting.--The campaigns described in 
        paragraph (1) shall be broadcast in such a manner as to inform 
        diverse populations throughout the State of nursing 
        opportunities, including 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 junior 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 establish programs to recruit and retain nurses.
    ``(b) Community-Based Partnerships.--The term `community-based 
partnerships' means a health care provider and a community partner, 
such as a school, nursing program, faith-based organization, 
university, community college, public health department, State health 
care provider 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 subsection (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, transportation, or others as deemed 
        appropriate by the Secretary.
    ``(d) Application.--A community-based partnership seeking a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and containing 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. 858. EDUCATIONAL ASSISTANCE IN NURSING REGARDING 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 opportunities for individuals from disadvantaged 
backgrounds, including 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 pursue additional nursing education 
and training.
    ``(b) Definitions.--
            ``(1) Eligible entity.--The term `eligible entity' means a 
        school of nursing or a health care facility, 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 personnel 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 containing 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 entity' means a 
        school of nursing or a health care facility, 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 individuals who 
        will provide long-term care; and
            ``(2) expand the enrollment in nursing programs, especially 
        programs that focus on training individuals 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 containing 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 PROGRAMS.

    ``(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 entity' 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 containing 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.

                  ``PART K--NURSE FACULTY DEVELOPMENT

``SEC. 865. FAST-TRACK NURSING FACULTY LOAN PROGRAM.

    ``(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 program 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 Federal 
        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 regulation or in the agreement with the school) to 
prevent the impairment of the capital of such fund while enabling the 
student to complete his course of study, except that--
            ``(1) such a loan may be made only to a student who--
                    ``(A) is in financial need of the amount of the 
                loan to pursue a full- or part-time course of study at 
                the school to obtain a masters degree with a 
                concentration in education or a doctoral degree; and
                    ``(B) is capable, in the opinion of the school, of 
                maintaining good standing in such course of study;
            ``(2) such a loan shall be repayable in equal or graduated 
        periodic installments (with the right of the borrower to 
        accelerate repayment) over the 10-year period which begins 9 
        months after the student ceases to pursue a full- or part-time 
        course of study at a school of nursing, excluding from such 10-
        year period all--
                    ``(A) periods (up to 3 years) of--
                            ``(i) active duty performed by the borrower 
                        as a member of a uniformed service; or
                            ``(ii) service as a volunteer under the 
                        Peace Corps Act; and
                    ``(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 canceled upon the 
        death of the borrower, or if the Secretary determines that the 
        borrower has become permanently and totally disabled;
            ``(4) such a loan shall bear interest on the unpaid 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 applicable 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 another 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 degree 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 consecutive payments and who, during the last 12 months 
        of the repayment period, has made at least 12 consecutive 
        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 Secretary shall pay to the school 
an amount equal to the school's proportionate share of the canceled 
portion, as determined 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 installments 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 further 
installments of the loans shall be withheld, as may be appropriate.
    ``(g) Charges.--Subject to regulations of the Secretary 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 evidence 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 fiscal years 2003 and 2004.

``SEC. 866. STIPEND AND SCHOLARSHIP PROGRAM.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary shall establish 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 program 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 scholarship or 
stipend under this section, an individual shall--
            ``(1) submit an application to the Secretary at such time, 
        in such manner, and containing such information as the 
        Secretary may reasonably require;
            ``(2) enter into an agreement with the Secretary to accept 
        the scholarship in consideration for remaining 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 fiscal 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 commission 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, retention of 
        nurses, workplace issues for nurses, funding for nursing 
        programs in this Act and the Social Security 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 recruitment 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 secondary 
                schools;
                    ``(D) representatives of the Departments of Health 
                and Human Services and Education;
                    ``(E) representatives of public health departments;
                    ``(F) representatives of employers and facilities, 
                such as hospitals, long term care facilities, and home 
                health agencies;
                    ``(G) patients and representatives of patients;
                    ``(H) representatives of professional nursing 
                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 subchapter 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 report that makes the recommendations described in 
subsection (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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