HB 159: "An Act relating to repayment conditions for medical education program participants."

00                             HOUSE BILL NO. 159                                                                          
01 "An Act relating to repayment conditions for medical education program participants."                                   
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 14.43.510(a) is amended to read:                                                                   
04 (a)  Except as provided under (b) and (c) of this section, as a condition of                                            
05 participating in a medical education program under AS 14.42.033, a program                                              
06 participant shall agree to either return to the state and actively engage in professional                               
07 medical practice or repay the total amount of the financial support provided by the                                 
08 state to the contracting postsecondary institution on behalf of the program                                         
09 participant, plus interest [. THE FINANCIAL SUPPORT TO BE REPAID IS                                                 
10 EQUAL TO 50 PERCENT OF THE AMOUNT PAID FOR EACH PROGRAM                                                                 
11 PARTICIPANT BY THE STATE TO THE CONTRACTING POSTSECONDARY                                                               
12 INSTITUTION, PLUS INTEREST]. The rate of interest is equal to the 12th Federal                                          
13 Reserve District discount rate in effect on March 1 of the year in which the financial                                  
14 support is provided plus two percentage points. Interest imposed under this subsection                                  
15 begins to accrue when the person terminates studies under the medical education                                         
01       program. Accrued interest shall be added to the principal balance of the repayment                                
02       obligation at the time the borrower is obligated to commence repayment and at the end                             
03       of a deferment period.                                                                                            
04    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
05 read:                                                                                                                   
06       APPLICABILITY. This Act applies to participants in a medical education program                                    
07 under AS 14.42.033 who enter into an agreement under AS 14.43.510 on or after the effective                             
08 date of this Act.