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    AN ACT concerning education.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Nursing Education Scholarship Law is amended  
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by changing Sections 2 and 3 and  by adding Section 6.5  as 
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follows:
 



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    (110 ILCS 975/2)  (from Ch. 144, par. 2752)



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    Sec. 2. Legislative finding and declaration of policy. 
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    (a) The General Assembly finds and hereby declares that the 
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provision of a
higher education leading to an associate degree 
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in nursing, an
associate
degree in applied sciences in nursing, 
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a hospital-based diploma
in nursing, a
baccalaureate degree in 
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nursing, a graduate degree in nursing, or a certificate in 
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practical nursing for
persons of this State
who desire such an 
15
education is important to the health, welfare and
security of 
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this State and Nation, and consequently is an important public

17
purpose.  Many qualified and potential nurses
are deterred by 
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financial considerations from pursuing their nursing

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education, with consequent irreparable loss to the State and 
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Nation of
talents vital to health, welfare and security.  A 
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system of scholarships,
repayment of which may be excused if 
22
the individual is employed as a
registered professional
nurse 
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or a licensed practical nurse after
obtaining an associate 
 


 






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degree in
nursing, associate degree in applied sciences in 
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nursing, hospital-based
diploma in nursing, baccalaureate 
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degree in nursing, graduate degree in nursing, or certificate

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in practical nursing, will enable such individuals
to attend 
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approved institutions of their choice in the State,
public or

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private.

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    (b)  The General Assembly finds that there is a critical 
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shortage of nursing instructors in this State, and such a 
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shortage will only worsen the shortage of available nurses in 
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this State and jeopardize the quality of healthcare citizens of 
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this State have every right to enjoy.  In order to provide for 
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the health, safety, and welfare of the citizens of this State, 
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the General Assembly declares that there is a need for an 
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increase in skilled nurse educators in this State. 
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(Source: P.A. 92-43, eff. 1-1-02; 93-879, eff. 1-1-05.)

 



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    (110 ILCS 975/3)  (from Ch. 144, par. 2753)


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    Sec. 3. Definitions. 

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    The following terms, whenever used or referred to, have the 
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following
meanings except where the context clearly indicates 
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otherwise:

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    (1) "Board" means the Board of Higher Education created by 
22
the Board
of Higher Education Act.

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    (2) "Department" means the Illinois Department of Public 
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Health.

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    (3) "Approved institution" means a public community 
 


 






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college, private
junior college, hospital-based diploma in 
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nursing
program, or public or private
college or university 
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located in this State that has approval by the Department of 
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Professional
Regulation for an associate degree in nursing

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program,
associate degree in applied
sciences in nursing 
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program, hospital-based diploma in nursing
program,

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baccalaureate degree in nursing program, graduate degree in 
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nursing program, or
certificate in practical
nursing program.

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    (4) "Baccalaureate degree in nursing program" means a 
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program offered by
an
approved institution and leading to a 
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bachelor of science degree in nursing.

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    (5) "Enrollment" means the establishment and maintenance 
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of an
individual's status as a student in an approved 
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institution, regardless of
the terms used at the institution to 
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describe such status.

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    (6) "Academic year" means the period of time from September 
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1 of one
year through August 31 of the next year or as 
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otherwise defined by the
academic institution.

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    (7) "Associate degree in nursing program or hospital-based 
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diploma in
nursing program" means a program
offered by an 
21
approved institution and leading to an associate
degree in

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nursing, associate degree in applied sciences in nursing, or

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hospital-based diploma in nursing.

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    (8) "Graduate degree in nursing program" means a program 
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offered by an approved institution and leading to a master of 
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science degree in nursing or a doctorate of philosophy or 
 


 






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doctorate of nursing degree in nursing.

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    (9) "Director" means the Director of the Illinois 
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Department of Public
Health.

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    (10) "Accepted for admission" means a student has completed 
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the
requirements for entry into an associate degree in nursing 
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program,
associate degree in applied sciences in nursing 
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program, hospital-based
diploma in nursing program,

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baccalaureate degree in nursing program, graduate degree in 
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nursing program, or
certificate in practical nursing program at 
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an approved institution, as
documented by the
institution.

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    (11) "Fees" means those mandatory charges, in addition to 
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tuition, that
all enrolled students must pay, including 
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required course or lab fees.

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    (12) "Full-time student" means a student enrolled for at 
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least 12 hours
per
term or as otherwise determined by the 
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academic institution.

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    (13) "Law" means the Nursing Education Scholarship Law.

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    (14) "Nursing employment obligation" means employment in 
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this State as a
registered
professional
nurse, or licensed 
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practical nurse, or advanced practice nurse in direct patient 
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care
or as a nurse educator in the case of a graduate degree in 
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nursing program recipient for at least one year for each year 
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of scholarship assistance received through
the Nursing

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Education Scholarship Program.

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    (15) "Part-time student" means a person who is enrolled for 
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at least
one-third of the number of hours required per term by 
 


 






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a school for its
full-time students.

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    (16) "Practical nursing program" means a program offered by 
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an approved
institution leading to a certificate in practical 
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nursing.

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    (17) "Registered professional nurse" means a
person who is 
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currently licensed as a registered professional nurse
by the 
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Department of Professional
Regulation under the Nurse Practice 
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Act.

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    (18) "Licensed practical nurse" means a
person who is 
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currently licensed as a licensed practical nurse
by the 
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Department of Professional
Regulation under the Nurse Practice 
12
Act.

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    (19) "School term" means an academic term, such as a 
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semester, quarter,
trimester, or number of clock hours, as 
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defined by an approved institution.

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    (20) "Student in good standing" means a student maintaining 
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a cumulative
grade point average equivalent to at least the 
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academic grade of a "C".

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    (21) "Total and permanent disability" means a physical or 
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mental impairment,
disease, or loss of a permanent nature that 
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prevents nursing employment with or
without reasonable 
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accommodation.  Proof of disability shall be a declaration
from 
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the social security administration, Illinois Workers' 
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Compensation Commission,
Department of Defense, or an insurer 
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authorized to transact business in
Illinois who is providing 
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disability insurance coverage to a contractor.

 


 






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    (22) "Tuition" means the established charges of an 
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institution of higher
learning for instruction at that 
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institution.

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    (23) "Nurse educator" means a person who is currently 
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licensed as a registered nurse by the Department of 
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Professional Regulation under the Nurse Practice Act, who has a 
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graduate degree in nursing, and who is employed by an approved 
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academic institution to educate registered nursing students, 
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licensed practical nursing students, and registered nurses 
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pursuing graduate degrees.

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    (24) "Nurse educator employment obligation" means 
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employment in this State as a nurse educator for at least 2 
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years for each year of scholarship assistance received under 
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Section 6.5 of this Law. 
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    Rulemaking authority to implement this amendatory Act of 
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the 96th General Assembly, if any, is conditioned on the rules 
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being adopted in accordance with all provisions of the Illinois 
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Administrative Procedure Act and all rules and procedures of 
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the Joint Committee on Administrative Rules; any purported rule 
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not so adopted, for whatever reason, is unauthorized. 
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(Source: P.A. 95-331, eff. 8-21-07; 95-639, eff. 10-5-07.)

 
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    (110 ILCS 975/6.5  new)
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    Sec. 6.5. Nurse educator scholarships.
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    (a)  Beginning with the fall term of the 2009-2010 academic 
25
year, the Department shall provide scholarships to individuals 
 


 






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selected from among those applicants who qualify for 
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consideration by showing the following:
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        (1) that he or she has been a resident of this State 
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    for at least one year prior to application and is a citizen 
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    or a lawful permanent resident alien of the United States;
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        (2) that he or she is enrolled in or accepted for 
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    admission to a graduate degree in nursing program at an 
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    approved institution; and
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        (3) that he or she agrees to meet the nurse educator 
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    employment obligation.
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    (b) If in any year the number of qualified applicants 
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exceeds the number of scholarships to be awarded under this 
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Section, the Department shall, in consultation with the Center 
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for Nursing Advisory Board, consider the following factors in 
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granting priority in awarding scholarships:
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        (1) Financial need, as shown on a standardized 
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    financial needs assessment form used by an approved 
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    institution, of students who will pursue their education on 
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    a full-time or close to full-time basis and who already 
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    have a diploma in nursing and are pursuing a higher degree.
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        (2) A student's status as a registered nurse who is 
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    pursuing a graduate degree in nursing to pursue employment 
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    in an approved institution that educates licensed 
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    practical nurses and that educates registered nurses in 
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    undergraduate and graduate nursing programs.
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        (3) A student's merit, as shown through his or her 
 


 






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    grade point average, class rank, experience as a nurse, 
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    including supervisory experience, experience as a nurse in 
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    the United States military, and other academic and 
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    extracurricular activities.
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    (c)  Unless otherwise indicated, scholarships under this 
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Section shall be awarded to recipients at approved institutions 
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for a period of up to 3 years.
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    (d)  Within 12 months after graduation from a graduate 
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degree in nursing program for nurse educators, any recipient 
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who accepted a scholarship under this Section shall begin 
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meeting the required nurse educator employment obligation. In 
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order to defer his or her continuous employment obligation, a 
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recipient must request the deferment in writing from the 
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Department. A recipient shall receive a deferment if he or she 
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notifies the Department, within 30 days after enlisting, that 
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he or she is spending up to 4 years in military service. A 
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recipient shall receive a deferment if he or she notifies the 
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Department, within 30 days after enrolling, that he or she is 
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enrolled in an academic program leading to a graduate degree in 
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nursing.  The recipient must begin meeting the required nurse 
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educator employment obligation no later than 6 months after the 
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end of the deferment or deferments.
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    Any person who fails to fulfill the nurse educator 
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employment obligation shall pay to the Department an amount 
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equal to the amount of scholarship funds received per year for 
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each unfulfilled year of the nurse educator employment 
 


 






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obligation, together with interest at 7% per year on the unpaid 
2
balance. Payment must begin within 6 months following the date 
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of the occurrence initiating the repayment. All repayments must 
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be completed within 6 years from the date of the occurrence 
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initiating the repayment. However, this repayment obligation 
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may be deferred and re-evaluated every 6 months when the 
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failure to fulfill the nurse educator employment obligation 
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results from involuntarily leaving the profession due to a 
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decrease in the number of nurses employed in this State or when 
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the failure to fulfill the nurse educator employment obligation 
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results from total and permanent disability. The repayment 
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obligation shall be excused if the failure to fulfill the nurse 
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educator employment obligation results from the death or 
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adjudication as incompetent of the person holding the 
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scholarship. No claim for repayment may be filed against the 
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estate of such a decedent or incompetent.
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    The Department may allow a nurse educator employment 
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obligation fulfillment alternative if the nurse educator 
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scholarship recipient is unsuccessful in finding work as a 
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nurse educator.  The Department shall maintain a database of all 
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available nurse educator positions in this State.
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    (e)  Each person applying for a scholarship under this 
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Section must be provided with a copy of this Section at the 
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time of application for the benefits of this scholarship.
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    (f) Rulemaking authority to implement this amendatory Act 
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of the 96th General Assembly, if any, is conditioned on the 
 


 






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rules being adopted in accordance with all provisions of the 
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Illinois Administrative Procedure Act and all rules and 
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procedures of the Joint Committee on Administrative Rules; any 
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purported rule not so adopted, for whatever reason, is 
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unauthorized. 
 
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    Section 10. The Nurse Practice Act is amended  by changing 
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Section 70-50 as follows:
 



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    (225 ILCS 65/70-50)
  (was 225 ILCS 65/20-40)

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    (Section scheduled to be repealed on January 1, 2018)

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    Sec. 70-50. Fund. 
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    (a) There is hereby created within the State Treasury the

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Nursing Dedicated and Professional Fund.  The monies in the Fund 
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may be
used by and at the direction of the Department for the 
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administration and
enforcement of this Act, including but not 
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limited to:


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        (1) Distribution and publication of this Act and rules.


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        (2) Employment of secretarial, nursing, 
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    administrative, enforcement, and
other staff for the 
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    administration of this Act.


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    (b) Disposition of fees:

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        (1)  $5 of every licensure fee shall be placed in a fund 
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    for assistance to nurses enrolled in a diversionary program 
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    as approved by the Department.


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        (2) All of the fees, fines, and penalties
collected 
 


 






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    pursuant to
this Act shall be deposited in the Nursing 
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    Dedicated and Professional Fund.


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        (3) Each fiscal year, the moneys deposited
in the 
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    Nursing Dedicated and Professional Fund shall be 
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    appropriated to the
Department for expenses of the 
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    Department and the Board in the
administration of this Act.  
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    All earnings received from investment of
moneys in the 
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    Nursing Dedicated and Professional Fund shall be
deposited 
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    in the Nursing Dedicated and Professional Fund and shall be 
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    used
for the same purposes as fees deposited in the Fund.


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        (4) For the fiscal year beginning July 1, 2009 2004 and 
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    for
each fiscal
year thereafter, $2,000,000 $1,200,000 of 
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    the moneys deposited in the
Nursing Dedicated
and 
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    Professional Fund each year shall be set aside and 
15
    appropriated to the

Department of Public Health for nursing 
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    scholarships awarded pursuant to
the Nursing Education 
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    Scholarship Law.
Representatives
of the Department and the 
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    Nursing Education Scholarship Program Advisory
Council 
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    shall review this requirement and
the scholarship awards 
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    every 2 years.


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        (5) Moneys in the Fund may be transferred to the 
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    Professions
Indirect Cost Fund as authorized under Section 
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    2105-300 of the
Department of Professional Regulation Law 
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    (20 ILCS 2105/2105-300).

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    (c)
(f) Moneys set aside for nursing scholarships awarded 
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pursuant to
the Nursing Education Scholarship Law as provided 
 


 






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in item (4)
(iv) of subsection (b)
(e) of this Section may not 
2
be transferred under Section 8h of the State Finance Act.
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(Source: P.A. 95-331, eff. 8-21-07; 95-639, eff. 10-5-07; 
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revised 10-23-08.)

 

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    Section 99. Effective date. This Act takes effect upon 
6
becoming law.