00 SENATE CS FOR CS FOR HOUSE BILL NO. 18(SED)
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 when the person terminates
15 studies under the medical education program. Accrued interest shall be added to the
16 principal balance of the repayment obligation at the time the borrower is obligated to
17 commence repayment and at the end of a deferment period.
18 * Sec. 3. AS 14.43.510(c) is amended to read:
19 (c) Repayment under (a) of this section is required to begin not later than six
20 months after the person terminates studies under the medical education program
21 except that repayment shall be deferred for a person who (1) qualifies for forgiveness
22 under (b) of this section for as long as the person remains qualified for forgiveness
23 under (b) of this section; (2) is employed in a medical residency program [IN THE
24 STATE] for as long as the person remains in the medical residency program; or (3) is
25 performing a service obligation imposed by the National Health Service Corps, the
26 Indian Health Service, or the Uniformed Service Scholarship Program for as long as
27 the person is performing the service. Forgiveness under (b) of this section only applies
28 to that portion of the repayment obligation that has not been repaid to the state.