House File 784 - Introduced HOUSE FILE 784 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HSB 255) A BILL FOR An Act providing for loan repayment under the rural Iowa 1 primary care loan repayment program to physicians who are 2 national guard members and practice full-time in service 3 commitment areas. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2801HV (2) 88 kh/jh

H.F. 784 Section 1. Section 261.86, subsection 6, Code 2019, is 1 amended to read as follows: 2 6. a. Notwithstanding section 8.33 , funds appropriated 3 for purposes of this section which remain unencumbered or 4 unobligated at the close of the fiscal year for which the funds 5 were appropriated shall not revert but shall be available for 6 expenditure for the following fiscal year for purposes of this 7 section . 8 b. Notwithstanding paragraph “a” , if a physician meets 9 the requirements for loan repayment under section 261.113, 10 subsection 7, paragraph “b” , moneys which remain unencumbered 11 or unobligated at the close of the fiscal year shall be 12 transferred to the rural Iowa primary care trust fund created 13 under section 261.113, subsection 10, in an amount necessary to 14 make payments in accordance with section 261.113, subsection 15 7, paragraph “b” . 16 Sec. 2. Section 261.113, subsection 7, Code 2019, is amended 17 to read as follows: 18 7. Rules for additional loan repayment. The commission shall 19 adopt rules to provide, in addition to loan repayment provided 20 to eligible students pursuant to this section and subject to 21 the availability of surplus funds , for loan repayment to a 22 physician if either of the following conditions are met: 23 a. Subject to the availability of surplus funds, the 24 physician who received a doctor of medicine or doctor of 25 osteopathic medicine degree from an eligible university as 26 provided in subsection 2 , obtained a license to practice 27 medicine and surgery or osteopathic medicine and surgery 28 in this state, completed the physician’s residency program 29 requirement with an Iowa-based residency program, and is 30 engaged in the full-time practice of medicine and surgery or 31 osteopathic medicine and surgery as specified in subsection 3 , 32 paragraph “d” . 33 b. Subject to the availability of funds transferred in 34 accordance with section 261.86, subsection 6, paragraph 35 -1- LSB 2801HV (2) 88 kh/jh 1/ 4

H.F. 784 “b” , and deposited in accordance with subparagraph (2), the 1 physician obtained a license to practice medicine and surgery 2 or osteopathic medicine and surgery in this state, is engaged 3 in full-time practice of medicine and surgery or osteopathic 4 medicine and surgery in a service commitment area for a period 5 of five consecutive years, and is a member of the Iowa national 6 guard. 7 (1) Notwithstanding subsection 5, paragraph “a” , the amount 8 of loan repayment a physician who meets the requirements of 9 this paragraph “b” shall receive shall not exceed thirty 10 thousand dollars annually for an eligible loan. Payments 11 under this paragraph “b” may be made for each year of eligible 12 practice during a period of five consecutive years and shall 13 not exceed a total of one hundred fifty thousand dollars. 14 (2) Notwithstanding subsection 11, paragraph “c” , the 15 service commitment area shall provide a fifteen thousand 16 dollar matching contribution for deposit in the rural Iowa 17 primary care trust fund for each physician in the community 18 who is participating in the loan repayment program under this 19 paragraph “b” for the purposes of this paragraph. 20 Sec. 3. Section 261.113, subsection 10, Code 2019, is 21 amended to read as follows: 22 10. Trust fund established. A rural Iowa primary care 23 trust fund is created in the state treasury as a separate fund 24 under the control of the commission. The commission shall 25 remit all repayments made pursuant to this section to the 26 rural Iowa primary care trust fund. All moneys deposited or 27 paid into the trust fund are appropriated and made available 28 to the commission to be used for meeting the requirements of 29 this section . However, moneys transferred to the rural Iowa 30 primary care trust fund pursuant to section 261.86, subsection 31 6, paragraph “b” , or deposited pursuant to subsection 7, 32 paragraph “b” , subparagraph (2), are appropriated and shall be 33 available to provide loan repayment for physicians who meet 34 the requirements of subsection 7, paragraph “b” . Moneys in 35 -2- LSB 2801HV (2) 88 kh/jh 2/ 4

H.F. 784 the fund up to the total amount that an eligible student may 1 receive for an eligible loan in accordance with this section 2 and upon fulfilling the requirements of subsection 3 , shall be 3 considered encumbered for the duration of the agreement entered 4 into pursuant to subsection 3 . Notwithstanding section 8.33 , 5 any balance in the fund on June 30 of each fiscal year shall not 6 revert to the general fund of the state, but shall be available 7 for purposes of this section in subsequent fiscal years. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill expands the rural Iowa primary care loan repayment 12 program to provide that, subject to the availability of 13 transferred or deposited funds, a physician licensed in this 14 state who is a member of the Iowa national guard and is engaged 15 in full-time practice of medicine and surgery or osteopathic 16 medicine and surgery in a service commitment area for a period 17 of five years qualifies for eligible educational loan repayment 18 of up to $30,000 annually. 19 If a physician in the Iowa national guard meets the 20 requirements for loan repayment as provided in the bill, 21 moneys that were appropriated for purposes of the national 22 guard educational assistance program that remain unencumbered 23 or unobligated at the close of the fiscal year shall be 24 transferred to the rural Iowa primary care trust fund in an 25 amount necessary to make loan repayments for the physician. 26 The total amount of loan repayment over the five-year period 27 is limited to not more than $150,000. “Service commitment 28 area” is defined for purposes of the program as a city in Iowa 29 with a population of less than 26,000 that is located more 30 than 20 miles from a city with a population of 50,000 or more 31 and which provides a $20,000 contribution for deposit in the 32 rural Iowa primary care trust fund for each physician in the 33 community who is participating in the loan repayment program. 34 Under the bill, the service commitment area’s contribution for 35 -3- LSB 2801HV (2) 88 kh/jh 3/ 4

H.F. 784 a physician who is a national guard member is $15,000. 1 -4- LSB 2801HV (2) 88 kh/jh 4/ 4