HF 784 (LSB 2801HV (2) 88)

HOUSE FILE 784

BY  COMMITTEE ON APPROPRIATIONS

(SUCCESSOR TO HSB 255)

A BILL FOR

An Act providing for loan repayment under the rural Iowa primary care loan repayment program to physicians who are national guard members and practice full-time in service commitment areas.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 261.86, subsection 6, Code 2019, is amended to read as follows:
   6.  a.  Notwithstanding section 8.33, funds appropriated for purposes of this section which remain unencumbered or unobligated at the close of the fiscal year for which the funds were appropriated shall not revert but shall be available for expenditure for the following fiscal year for purposes of this section.
   b.  Notwithstanding paragraph “a”, if a physician meets the requirements for loan repayment under section 261.113, subsection 7, paragraph “b”, moneys which remain unencumbered or unobligated at the close of the fiscal year shall be transferred to the rural Iowa primary care trust fund created under section 261.113, subsection 10, in an amount necessary to make payments in accordance with section 261.113, subsection 7, paragraph “b”.
    Sec. 2.  Section 261.113, subsection 7, Code 2019, is amended to read as follows:
   7.  Rules for additional loan repayment.  The commission shall adopt rules to provide, in addition to loan repayment provided to eligible students pursuant to this section and subject to the availability of surplus funds, for loan repayment to a physician if either of the following conditions are met: 
   a.  Subject to the availability of surplus funds, the physician who received a doctor of medicine or doctor of osteopathic medicine degree from an eligible university as provided in subsection 2, obtained a license to practice medicine and surgery or osteopathic medicine and surgery in this state, completed the physician’s residency program requirement with an Iowa-based residency program, and is engaged in the full-time practice of medicine and surgery or osteopathic medicine and surgery as specified in subsection 3, paragraph “d”.
   b.  Subject to the availability of funds transferred in accordance with section 261.86, subsection 6, paragraph “b”, and deposited in accordance with subparagraph (2), the physician obtained a license to practice medicine and surgery or osteopathic medicine and surgery in this state, is engaged in full-time practice of medicine and surgery or osteopathic medicine and surgery in a service commitment area for a period of five consecutive years, and is a member of the Iowa national guard.
   (1)  Notwithstanding subsection 5, paragraph “a”, the amount of loan repayment a physician who meets the requirements of this paragraph “b” shall receive shall not exceed thirty thousand dollars annually for an eligible loan. Payments under this paragraph “b” may be made for each year of eligible practice during a period of five consecutive years and shall not exceed a total of one hundred fifty thousand dollars.
   (2)  Notwithstanding subsection 11, paragraph “c”, the service commitment area shall provide a fifteen thousand dollar matching contribution for deposit in the rural Iowa primary care trust fund for each physician in the community who is participating in the loan repayment program under this paragraph “b” for the purposes of this paragraph.
    Sec. 3.  Section 261.113, subsection 10, Code 2019, is amended to read as follows:
   10.  Trust fund established.  A rural Iowa primary care trust fund is created in the state treasury as a separate fund under the control of the commission. The commission shall remit all repayments made pursuant to this section to the rural Iowa primary care trust fund. All moneys deposited or paid into the trust fund are appropriated and made available to the commission to be used for meeting the requirements of this section.  However, moneys transferred to the rural Iowa primary care trust fund pursuant to section 261.86, subsection 6, paragraph “b”, or deposited pursuant to subsection 7, paragraph “b”, subparagraph (2), are appropriated and shall be available to provide loan repayment for physicians who meet the requirements of subsection 7, paragraph “b”. Moneys in the fund up to the total amount that an eligible student may receive for an eligible loan in accordance with this section and upon fulfilling the requirements of subsection 3, shall be considered encumbered for the duration of the agreement entered into pursuant to subsection 3. Notwithstanding section 8.33, any balance in the fund on June 30 of each fiscal year shall not revert to the general fund of the state, but shall be available for purposes of this section in subsequent fiscal years.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill expands the rural Iowa primary care loan repayment program to provide that, subject to the availability of transferred or deposited funds, a physician licensed in this state who is a member of the Iowa national guard and is engaged in full-time practice of medicine and surgery or osteopathic medicine and surgery in a service commitment area for a period of five years qualifies for eligible educational loan repayment of up to $30,000 annually.
   If a physician in the Iowa national guard meets the requirements for loan repayment as provided in the bill, moneys that were appropriated for purposes of the national guard educational assistance program that remain unencumbered or unobligated at the close of the fiscal year shall be transferred to the rural Iowa primary care trust fund in an amount necessary to make loan repayments for the physician.
   The total amount of loan repayment over the five-year period is limited to not more than $150,000. “Service commitment area” is defined for purposes of the program as a city in Iowa with a population of less than 26,000 that is located more than 20 miles from a city with a population of 50,000 or more and which provides a $20,000 contribution for deposit in the rural Iowa primary care trust fund for each physician in the community who is participating in the loan repayment program. Under the bill, the service commitment area’s contribution for a physician who is a national guard member is $15,000.