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.