00                              HOUSE BILL NO. 18                                                                          
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 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. An agreement with another state must be limited to services and programs that                             
10       are unavailable in Alaska and provide services and programs for Alaska residents.                             
11       The commission may enter into a separate agreement with government or                                         
12       postsecondary education officials to expand the number of Alaska residents able                               
13       to participate in the medical education program. The commission shall require a                               
14       person participating in a medical education program offered under this subsection to                              
01       agree to the repayment condition imposed under AS 14.43.510.                                                      
02    * Sec. 2. AS 14.43.510(a) is amended to read:                                                                      
03            (a)  Except as provided under (b) and (c) of this section, as a condition of                                 
04       participating in a medical education program under AS 14.42.030(d), a program                                     
05       participant shall agree to either return to the state and actively engage in                                  
06       professional medical practice or repay [THE] financial support provided by the state                          
07       on behalf of the student. The financial support to be repaid is equal to one-third of the                     
08       amount paid for each student by the state to the contracting postsecondary                                    
09       institution, plus interest [THE DIFFERENCE BETWEEN RESIDENT AND                                               
10       NONRESIDENT TUITION AT THE CONTRACTING POSTSECONDARY                                                              
11       INSTITUTION, PLUS INTEREST, INCLUDING ANY DIFFERENTIAL FOR THE                                                    
12       FIRST YEAR OF THE PROGRAM DELIVERED AT THE UNIVERSITY OF                                                          
13       ALASKA, ANCHORAGE]. The rate of interest is equal to the 12th Federal Reserve                                     
14       District discount rate in effect on March 1 of the year in which the financial support is                         
15       provided plus two percentage points. Interest imposed under this subsection begins to                             
16       accrue at the later of termination of the student's [WHEN THE PERSON                                          
17       TERMINATES] studies under the medical education program or at the conclusion of                               
18       the student's residency or fellowship training program, military service, United                              
19       States Public Health Service, or Indian Health Service obligation. If the                                     
20       commission finds that the student has withdrawn from the medical education,                                   
21       residency, or fellowship program, or that the student is otherwise failing to make                            
22       adequate progress toward completion of the program, the commission may start                                  
23       the accrual of interest after notifying the student. Accrued interest shall be added to                       
24       the principal balance of the repayment obligation at the time the borrower is obligated                           
25       to commence repayment and at the end of a deferment period.                                                       
26    * Sec. 3. AS 14.43.510(c) is amended to read:                                                                      
27            (c)  Repayment under (a) of this section is required to begin not later than six                             
28       months after the person terminates studies under the medical education program or on                          
29       completion of a residency or fellowship training program, military service,                                   
30       United States Public Health Service, or Indian Health Service except that                                     
31       repayment shall be deferred for a person who (1) qualifies for forgiveness under (b) of                           
01       this section for as long as the person remains qualified for forgiveness under (b) of this                        
02       section; (2) is employed in a medical residency program in the state for as long as the                           
03       person remains in the medical residency program; or (3) is performing a service                                   
04       obligation imposed by the National Health Service Corps, the Indian Health Service,                               
05       or the Uniformed Service Scholarship Program for as long as the person is performing                              
06       the service. Forgiveness under (b) of this section only applies to that portion of the                            
07       repayment obligation that has not been repaid to the state.