HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON HUMAN RESOURCES BILL BY CHAIRPERSON L. MILLER)

A BILL FOR

An Act establishing an allopathic physician recruitment program and revolving fund and making an appropriation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  261.21  Allopathic physician recruitment program.
   1.  Program established.  An allopathic physician recruitment program is established to be administered by the college student aid commission for, and in conjunction with, the state university of Iowa college of medicine. The program shall consist of a forgivable loan program, a tuition scholarship program, and a loan repayment program. The maximum amount of assistance a person may qualify to receive under the program is one hundred thousand dollars.
   2.  Forgivable loan program.  A forgivable loan may be awarded to a resident of Iowa who is enrolled at the state university of Iowa college of medicine in a program leading to a doctor of medicine degree if the individual agrees to practice general internal medicine, general surgery, family medicine, obstetrics and gynecology, pediatrics, or psychiatry in an eligible community for a period of four years under rules adopted by the commission. The state university of Iowa college of medicine shall provide recommendations to the commission for individuals who meet the eligibility requirements of the forgivable loan program. Forgivable loans shall not become due until after the individual completes a residency program. Interest on the loans shall begin to accrue the day following the individual’s graduation date. The individual’s total loan amount, including principal and interest, shall be reduced by twenty-five percent for each year in which the individual remains an Iowa resident and practices in the area of specialization in an eligible community as agreed pursuant to the requirements of this subsection. If the individual completes the four-year period of practice agreed to by the individual, the total loan amount, including principal and interest, shall be forgiven. The individual shall repay the loan amount, including remaining principal and interest, for any year in the four-year period in which the individual fails to practice as required under the forgivable loan agreement. If the commission determines that the individual who entered into the forgivable loan agreement with the commission does not meet the criteria for forgiveness of the principal and interest payments, the commission shall establish a plan for repayment of the principal and interest over a ten-year period. If the individual required to make repayment does not make the required payments, the commission shall provide for payment collection. 
   3.  Tuition scholarship.  A student enrolled at the state university of Iowa college of medicine in a program leading to a doctor of medicine degree shall be eligible for a tuition scholarship for the student’s study at the university. The scholarship shall be for an amount not to exceed the annual tuition for the university’s college of medicine. A student who receives a tuition scholarship may also be eligible for the loan repayment program pursuant to subsection 4. A student who receives a tuition scholarship shall agree to practice general internal medicine, general surgery, family medicine, obstetrics and gynecology, pediatrics, or psychiatry in an eligible community for a period of four years under rules adopted by the commission. The student shall repay the scholarship to the commission if the student fails to practice in an eligible community as agreed to for the required period of time.
   4.  Loan repayment.  A physician who graduates from the state university of Iowa college of medicine by December 31, 2016, shall be eligible for the physician loan repayment program if the physician agrees to practice general internal medicine, general surgery, family medicine, obstetrics and gynecology, pediatrics, or psychiatry in an eligible community for a period of four years under rules adopted by the commission. The state university of Iowa college of medicine shall assist eligible communities to identify and recruit physicians eligible for the loan repayment program. The contract for loan repayment shall stipulate that the physician repay any funds paid on the physician’s loan by the commission if the physician fails to practice in an eligible community for the required period of time. 
   5.  Eligible community.  For purposes of this section, “eligible community” means any area in this state that is not located within twenty miles of the boundary of a city having a population of twenty thousand or more. The physician shall choose the practice location and the eligible community may offer additional benefits to the physician. 
   6.  Revolving fund.  An allopathic physician recruitment revolving fund is created in the state treasury as a separate fund under the control of the commission. The commission shall deposit payments made by allopathic physician recruitment program assistance recipients and the proceeds from the sale of allopathic physician loans into the allopathic physician recruitment revolving fund. Moneys credited to the fund shall be used to supplement moneys appropriated for the allopathic physician recruitment program and to pay for loan or interest repayment defaults by program assistance recipients. Notwithstanding section 8.33, any balance in the fund on June 30 of any fiscal year shall not revert to the general fund of the state.
    Sec. 2.  COLLEGE STUDENT AID COMMISSION.  There is appropriated from the general fund of the state to the college student aid commission for the fiscal year beginning July 1, 2012, and ending June 30, 2013, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For purposes of the allopathic physician recruitment program established pursuant to section 261.21:
   .................................................. $    400,000
EXPLANATION
   This bill establishes an allopathic physician recruitment program to be administered by the college student aid commission for, and in conjunction with, the state university of Iowa college of medicine. The bill also establishes a revolving fund for the program in the state treasury under the control of the commission. The allopathic physician recruitment program consists of a forgivable loan program and a tuition scholarship program for students enrolled at the university’s college of medicine in a program leading to a doctor of medicine degree, and a loan repayment program for physicians who graduated from the university’s college of medicine. The maximum amount of program assistance a person may qualify to receive is $100,000. The bill appropriates $400,000 from the general fund of the state to the commission for the 2012-2013 fiscal year for the program. 
   To receive any kind of assistance under the program each student or physician must agree to practice general internal medicine, general surgery, family medicine, obstetrics and gynecology, pediatrics, or psychiatry in an eligible community for a period of four years. 
   Forgivable loans to students, who must be residents, do not become due until after the student completes a residency program. Interest on the loans shall begin to accrue the day following the student’s graduation date. The individual’s total loan amount, including principal and interest, shall be reduced by 25 percent for each year in which the individual remains an Iowa resident and practices as agreed. The individual shall repay the loan amount, including remaining principal and interest, for any year in the four-year period in which the individual fails to practice as required. If the commission determines that the individual who entered into the forgivable loan agreement with the commission does not meet the criteria for loan forgiveness, the commission shall establish a plan for repayment of the principal and interest over a 10-year period. If the individual required to make repayment does not make the required payments, the commission shall provide for payment collection. 
   The tuition scholarship shall be for an amount not to exceed the annual tuition for the university’s college of medicine. A student who receives a tuition scholarship may also be eligible for the loan repayment program. The student shall repay the scholarship to the commission if the student fails to practice as agreed to in an eligible community for the required period of time.
   To be eligible for the physician loan repayment program, a physician must graduate from the university’s college of medicine by December 31, 2016. The university’s college of medicine must assist eligible communities to identify and recruit physicians eligible for the program. The contract for loan repayment shall stipulate that the physician repay any funds paid on the physician’s loan by the commission if the physician fails to practice in an eligible community for the required period of time. 
   “Eligible community” is defined as any area in this state that is not located within 20 miles of the boundary of a city having a population of 20,000 or more. The physician shall choose the practice location and the eligible community may offer additional benefits to the physician. 
   Moneys in the allopathic physician recruitment revolving fund shall be used to supplement moneys appropriated for the program and to pay for loan or interest repayment defaults by program assistance recipients. Any balance in the fund on June 30 of any fiscal year shall not revert to the general fund of the state.