CSHB 18(HES): "An Act amending the functions and powers of the Alaska Commission on Postsecondary Education; and relating to the repayment provisions for medical education and postsecondary degree program participants."

00                       CS FOR HOUSE BILL NO. 18(HES)                                                                     
01 "An Act amending the functions and powers of the Alaska Commission on                                                   
02 Postsecondary Education; and relating to the repayment provisions for medical                                           
03 education and postsecondary degree program participants."                                                               
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 14.42.030(d) is amended to read:                                                                   
06            (d)  The commission shall [MAY] enter into agreements with government or                                 
07       postsecondary education officials of this state or other states to provide postsecondary                          
08       educational services and programs to Alaska residents pursuing a medical education                                
09       degree sufficient to accommodate at least 20 new program participants each year.                              
10       An agreement with another state must be limited to services and programs that are                                 
11       unavailable in Alaska. The commission shall require a person participating in a                                   
12       medical education program offered under this subsection to agree to the repayment                                 
13       condition imposed under AS 14.43.510.                                                                             
14    * Sec. 2. AS 14.43.510(a) is amended to read:                                                                      
01            (a)  Except as provided under (b) and (c) of this section, as a condition of                                 
02       participating in a medical education program under AS 14.42.030(d), a program                                     
03       participant shall agree to either return to the state and actively engage in                                  
04       professional medical practice or repay [THE] financial support provided by the state                          
05       on behalf of the program participant [STUDENT]. The financial support to be                                   
06       repaid is equal to 50 percent of the amount paid for each program participant by                              
07       the state to the contracting postsecondary institution, plus interest [THE                                    
08       DIFFERENCE BETWEEN RESIDENT AND NONRESIDENT TUITION AT THE                                                        
09       CONTRACTING POSTSECONDARY INSTITUTION, PLUS INTEREST,                                                             
10       INCLUDING ANY DIFFERENTIAL FOR THE FIRST YEAR OF THE PROGRAM                                                      
11       DELIVERED AT THE UNIVERSITY OF ALASKA, ANCHORAGE]. The rate of                                                    
12       interest is equal to the 12th Federal Reserve District discount rate in effect on March 1                         
13       of the year in which the financial support is provided plus two percentage points.                                
14       Interest imposed under this subsection begins to accrue at the later of termination of                        
15       the program participant's [WHEN THE PERSON TERMINATES] studies under                                          
16       the medical education program or at the conclusion of the program participant's                               
17       residency or fellowship training program, military service, United States Public                              
18       Health Service, or Indian Health Service obligation. Accrued interest shall be                                
19       added to the principal balance of the repayment obligation at the time the borrower is                            
20       obligated to commence repayment and at the end of a deferment period.                                             
21    * Sec. 3. AS 14.43.510(c) is amended to read:                                                                      
22            (c)  Repayment under (a) of this section is required to begin not later than six                             
23       months after the person terminates studies under the medical education program                                    
24       except that repayment shall be deferred for a person who (1) qualifies for forgiveness                            
25       under (b) of this section for as long as the person remains qualified for forgiveness                             
26       under (b) of this section; (2) is employed in a medical residency program [IN THE                                 
27       STATE] for as long as the person remains in the medical residency program; or (3) is                              
28       performing a service obligation imposed by the National Health Service Corps, the                                 
29       Indian Health Service, or the Uniformed Service Scholarship Program for as long as                                
30       the person is performing the service. Forgiveness under (b) of this section only applies                          
31       to that portion of the repayment obligation that has not been repaid to the state.