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.