txt

Enrolled HB 18: 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 Enrolled HB 18                                                                                                          
01 Amending the functions and powers of the Alaska Commission on Postsecondary Education;                                  
02 and relating to the repayment provisions for medical education and postsecondary degree                                 
03 program participants.                                                                                                   
04                           _______________                                                                               
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(b) is amended to read:                                                                      
19            (b)  If a program participant under (a) of this section has graduated from the                               
20       medical education program for which the financial support was received and is                                     
21       employed in the state in the field for which the person received the financial support,                           
22       including employment in the state in a medical residency program, the repayment                                   
23       obligation shall be forgiven and considered a grant in an amount equal to the                                     
24       following percentages plus accrued interest:                                                                      
25                 (1)  for employment in rural areas of the state,                                                    
26                      (A)  one year employment, 33 1/3 percent;                                                      
27                      (B)  two years employment, an additional 33 1/3 percent;                                       
28                      (C)  three years employment, an additional 33 1/3 percent;                                     
29                 (2)  for employment in areas of the state that are not rural,                                       
30                      (A) [(1)]  one year employment, 20 percent;                                                    
31                      (B) [(2)]  two years employment, an additional 20 percent;                                     
01                      (C) [(3)]  three years employment, an additional 20 percent;                                   
02                      (D) [(4)]  four years employment, an additional 20 percent;                                    
03                      (E) [(5)]  five years employment, an additional 20 percent.                                  
04    * Sec. 4. AS 14.43.510(c) is amended to read:                                                                      
05            (c)  Repayment under (a) of this section is required to begin not later than six                             
06       months after the person terminates studies under the medical education program                                    
07       except that repayment shall be deferred for a person who (1) qualifies for forgiveness                            
08       under (b) of this section for as long as the person remains qualified for forgiveness                             
09       under (b) of this section; (2) is employed in a medical residency program [IN THE                                 
10       STATE] for as long as the person remains in the medical residency program; or (3) is                              
11       performing a service obligation imposed by the National Health Service Corps, the                                 
12       Indian Health Service, or the Uniformed Service Scholarship Program for as long as                                
13       the person is performing the service. Forgiveness under (b) of this section only applies                          
14       to that portion of the repayment obligation that has not been repaid to the state.                                
15    * Sec. 5. AS 14.43.510 is amended by adding a new subsection to read:                                              
16            (i)  In this section, "rural" means a community with a population of 7,500 or                                
17       less that is not connected by road or rail to Anchorage or Fairbanks or with a                                    
18       population of 3,500 or less that is connected by road or rail to Anchorage or Fairbanks.