SB227 Alabama 2016 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Greg J. Reed
Republican
Session: Regular Session 2016
Title: Advanced Practice Nurses, Loan-Repayment Program established for, to pay for education of, Secs. 34-21-94 to 34-21-99, inclusive, added
Summary: SB227 would create a state loan-repayment program for Alabama advanced-practice nurses to repay education costs while agreeing to work in areas of critical need, funded by the Education Trust Fund and paired with a tax credit.
What This Bill Does
The bill creates the Alabama Loan-Repayment Program for Advanced-Practice Nursing, managed by the Board of Nursing. It offers loans up to $15,000 per year for up to 3 years for a master's degree or 4 years for a doctorate, with annual amounts adjustable based on in-state tuition increases. Participants must sign contracts to work full-time in an area of critical need for 18 months for each year of loan received; penalties and potential license actions apply for default, while hardship, death, or disability can excuse repayment. It also provides a $5,000-per-year state income tax credit for participants in critical-need areas, defines eligible areas, and requires the Board to report annually on program progress; funding comes from the Education Trust Fund.

Who It Affects
Advanced-practice nurses pursuing CRNP, CNM, or CRNA degrees in Alabama who would receive loans and must work in areas of critical need after graduation (with eligibility for the tax credit).
Residents of Alabama living in areas designated as areas of critical need, who would benefit from increased access to primary care as more APNs practice there.

Key Provisions
Creates the Alabama Loan-Repayment Program for Advanced-Practice Nursing, administered by the Alabama Board of Nursing.
Funding provided by direct appropriation from the Education Trust Fund.
Defines terms: area of critical need, participant, and program.
Loans for CRNP, CNM, and CRNA students; up to $15,000 per year; up to 3 years for a master's and up to 4 years for a doctorate; annual loan amounts adjustable for tuition increases.
Participants must sign contracts to repay by working full-time in an area of critical need for 18 months per year of loan received.
Ability to change the area of critical need with a minimum of 3 years in the new area.
Tax credit of $5,000 per tax year for participants; credit continues in the same area after repayment; capped at 10 years; regulatory rules to be issued by the Department of Revenue.
Areas of critical need defined as primary care HPSA areas or FQHCs with HPSA score of 14+ in Alabama.
Default or failure to honor contracts triggers immediate repayment with interest (8% or prime rate, whichever higher) and penalties (20% after 1 year, 30% after 2 years, 40% after 3+ years; 100% if default after graduation before completing repayment).
License revocation possible for failing to honor the contract.
Hardship exemptions may forgive repayment in cases of death, disability, or other extreme hardship not caused by the participant.
Annual reporting by the Board on program status and loan locations; repayments and penalties fund further loans.
Effective immediately upon governor approval; Board to establish rules for administration.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Nurses and Nursing