H.F. _____ Section 1. NEW SECTION . 261.21 Allopathic physician 1 recruitment program. 2 1. Program established. An allopathic physician recruitment 3 program is established to be administered by the college 4 student aid commission for, and in conjunction with, the state 5 university of Iowa college of medicine. The program shall 6 consist of a forgivable loan program, a tuition scholarship 7 program, and a loan repayment program. The maximum amount of 8 assistance a person may qualify to receive under the program is 9 one hundred thousand dollars. 10 2. Forgivable loan program. A forgivable loan may be 11 awarded to a resident of Iowa who is enrolled at the state 12 university of Iowa college of medicine in a program leading 13 to a doctor of medicine degree if the individual agrees to 14 practice general internal medicine, general surgery, family 15 medicine, obstetrics and gynecology, pediatrics, or psychiatry 16 in an eligible community for a period of four years under 17 rules adopted by the commission. The state university of 18 Iowa college of medicine shall provide recommendations to 19 the commission for individuals who meet the eligibility 20 requirements of the forgivable loan program. Forgivable loans 21 shall not become due until after the individual completes 22 a residency program. Interest on the loans shall begin to 23 accrue the day following the individual’s graduation date. 24 The individual’s total loan amount, including principal and 25 interest, shall be reduced by twenty-five percent for each year 26 in which the individual remains an Iowa resident and practices 27 in the area of specialization in an eligible community as 28 agreed pursuant to the requirements of this subsection. If the 29 individual completes the four-year period of practice agreed to 30 by the individual, the total loan amount, including principal 31 and interest, shall be forgiven. The individual shall repay 32 the loan amount, including remaining principal and interest, 33 for any year in the four-year period in which the individual 34 fails to practice as required under the forgivable loan 35 -1- LSB 6006YC (3) 84 kh/nh 1/ 5

H.F. _____ agreement. If the commission determines that the individual 1 who entered into the forgivable loan agreement with the 2 commission does not meet the criteria for forgiveness of the 3 principal and interest payments, the commission shall establish 4 a plan for repayment of the principal and interest over a 5 ten-year period. If the individual required to make repayment 6 does not make the required payments, the commission shall 7 provide for payment collection. 8 3. Tuition scholarship. A student enrolled at the state 9 university of Iowa college of medicine in a program leading to 10 a doctor of medicine degree shall be eligible for a tuition 11 scholarship for the student’s study at the university. The 12 scholarship shall be for an amount not to exceed the annual 13 tuition for the university’s college of medicine. A student 14 who receives a tuition scholarship may also be eligible for the 15 loan repayment program pursuant to subsection 4. A student who 16 receives a tuition scholarship shall agree to practice general 17 internal medicine, general surgery, family medicine, obstetrics 18 and gynecology, pediatrics, or psychiatry in an eligible 19 community for a period of four years under rules adopted by 20 the commission. The student shall repay the scholarship to 21 the commission if the student fails to practice in an eligible 22 community as agreed to for the required period of time. 23 4. Loan repayment. A physician who graduates from the state 24 university of Iowa college of medicine by December 31, 2016, 25 shall be eligible for the physician loan repayment program if 26 the physician agrees to practice general internal medicine, 27 general surgery, family medicine, obstetrics and gynecology, 28 pediatrics, or psychiatry in an eligible community for a period 29 of four years under rules adopted by the commission. The state 30 university of Iowa college of medicine shall assist eligible 31 communities to identify and recruit physicians eligible for 32 the loan repayment program. The contract for loan repayment 33 shall stipulate that the physician repay any funds paid on the 34 physician’s loan by the commission if the physician fails to 35 -2- LSB 6006YC (3) 84 kh/nh 2/ 5

H.F. _____ practice in an eligible community for the required period of 1 time. 2 5. Eligible community. For purposes of this section, 3 “eligible community” means any area in this state that is not 4 located within twenty miles of the boundary of a city having 5 a population of twenty thousand or more. The physician shall 6 choose the practice location and the eligible community may 7 offer additional benefits to the physician. 8 6. Revolving fund. An allopathic physician recruitment 9 revolving fund is created in the state treasury as a separate 10 fund under the control of the commission. The commission shall 11 deposit payments made by allopathic physician recruitment 12 program assistance recipients and the proceeds from the sale 13 of allopathic physician loans into the allopathic physician 14 recruitment revolving fund. Moneys credited to the fund 15 shall be used to supplement moneys appropriated for the 16 allopathic physician recruitment program and to pay for loan or 17 interest repayment defaults by program assistance recipients. 18 Notwithstanding section 8.33, any balance in the fund on June 19 30 of any fiscal year shall not revert to the general fund of 20 the state. 21 Sec. 2. COLLEGE STUDENT AID COMMISSION. There is 22 appropriated from the general fund of the state to the college 23 student aid commission for the fiscal year beginning July 1, 24 2012, and ending June 30, 2013, the following amount, or so 25 much thereof as is necessary, to be used for the purposes 26 designated: 27 For purposes of the allopathic physician recruitment program 28 established pursuant to section 261.21: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 400,000 30 EXPLANATION 31 This bill establishes an allopathic physician recruitment 32 program to be administered by the college student aid 33 commission for, and in conjunction with, the state university 34 of Iowa college of medicine. The bill also establishes a 35 -3- LSB 6006YC (3) 84 kh/nh 3/ 5

H.F. _____ revolving fund for the program in the state treasury under 1 the control of the commission. The allopathic physician 2 recruitment program consists of a forgivable loan program and 3 a tuition scholarship program for students enrolled at the 4 university’s college of medicine in a program leading to a 5 doctor of medicine degree, and a loan repayment program for 6 physicians who graduated from the university’s college of 7 medicine. The maximum amount of program assistance a person 8 may qualify to receive is $100,000. The bill appropriates 9 $400,000 from the general fund of the state to the commission 10 for the 2012-2013 fiscal year for the program. 11 To receive any kind of assistance under the program each 12 student or physician must agree to practice general internal 13 medicine, general surgery, family medicine, obstetrics and 14 gynecology, pediatrics, or psychiatry in an eligible community 15 for a period of four years. 16 Forgivable loans to students, who must be residents, do 17 not become due until after the student completes a residency 18 program. Interest on the loans shall begin to accrue the day 19 following the student’s graduation date. The individual’s 20 total loan amount, including principal and interest, shall be 21 reduced by 25 percent for each year in which the individual 22 remains an Iowa resident and practices as agreed. The 23 individual shall repay the loan amount, including remaining 24 principal and interest, for any year in the four-year period 25 in which the individual fails to practice as required. If the 26 commission determines that the individual who entered into the 27 forgivable loan agreement with the commission does not meet the 28 criteria for loan forgiveness, the commission shall establish a 29 plan for repayment of the principal and interest over a 10-year 30 period. If the individual required to make repayment does not 31 make the required payments, the commission shall provide for 32 payment collection. 33 The tuition scholarship shall be for an amount not to exceed 34 the annual tuition for the university’s college of medicine. A 35 -4- LSB 6006YC (3) 84 kh/nh 4/ 5

H.F. _____ student who receives a tuition scholarship may also be eligible 1 for the loan repayment program. The student shall repay the 2 scholarship to the commission if the student fails to practice 3 as agreed to in an eligible community for the required period 4 of time. 5 To be eligible for the physician loan repayment program, 6 a physician must graduate from the university’s college of 7 medicine by December 31, 2016. The university’s college of 8 medicine must assist eligible communities to identify and 9 recruit physicians eligible for the program. The contract for 10 loan repayment shall stipulate that the physician repay any 11 funds paid on the physician’s loan by the commission if the 12 physician fails to practice in an eligible community for the 13 required period of time. 14 “Eligible community” is defined as any area in this state 15 that is not located within 20 miles of the boundary of a city 16 having a population of 20,000 or more. The physician shall 17 choose the practice location and the eligible community may 18 offer additional benefits to the physician. 19 Moneys in the allopathic physician recruitment revolving 20 fund shall be used to supplement moneys appropriated for the 21 program and to pay for loan or interest repayment defaults by 22 program assistance recipients. Any balance in the fund on June 23 30 of any fiscal year shall not revert to the general fund of 24 the state. 25 -5- LSB 6006YC (3) 84 kh/nh 5/ 5