SENATE BILL NO. 139 "An Act establishing a loan repayment program and employment incentive program for certain health care professionals employed in the state; and providing for an effective date." 11:07:53 AM Senator Ellis proposed committee substitute, work draft #26-LS0503\U, Mischel, 4/9/10. Co-Chair Stedman OBJECTED. DENISE LICCIOLI, STAFF, SENATOR OLSON noted that the CS before the committee makes four significant changes to the bill. The new Section 1, Page 1 was added to reinforce the primary purpose of the bill of making health care providers available to rural areas of the state. In addition, areas that serve the uninsured, Medicare recipients, and those with tribal medical benefits are also targeted. She highlighted a rewording on Page 4, Line 19 added with the same intent which states that the "commissioner shall prioritize eligible sights based on the remoteness of the site and the percentage of patients treated at the site." The previous Section 1 which held loan repayments as incentive was removed. It was decided that the loan repayment piece required further research best done in future legislative sessions. The applicable sections referencing Section 1 were also updated to reflect the change. She introduced the third change on Page 4, Lines 4- 6. The section was reworded to direct the department to reserve funding with which to make payments as it provided a clear statement. The final change is found on Page 4, Lines 23-25 and implements a sunset which directs the department to cease the writing of new three year contracts after June 10, 2017. Page 5, Lines 17-25 further guide a request for a final report and provide a sunset date. Co-Chair Stedman REMOVED his OBJECTION. Version U was adopted. 11:13:28 AM Senator Olson stated that the bill establishes incentive regulations that allow licensed health care providers to arrive in Alaska and treat patients, especially in urban inner-city or rural parts of the state. Co-Chair Stedman mentioned one zero fiscal note from the Department of Education and Early Development (DEED) and one fiscal impact note from the Department of Health and Social Services (DHSS) for $2,847,300 in general funds to cover the estimated cost of incentive payments and to hire one additional full time staff person to administer the program. Senator Thomas asked about the last change considered on Page 4, Line 23-25. He asked if the purpose was for Alaskan residents to become more engaged in the system. Ms. Liccioli responded that the profits from the Washington Alaska Montana Idaho (WAMI) program would be available in seven years allowing the contracts to play out. Senator Olson expressed appreciation for the hearing. 11:16:14 AM Co-Chair Hoffman MOVED to report CS SB 139 out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CS SB 139 was REPORTED out of Committee with a "do pass" recommendation and with one new fiscal impact note from the Department of Health and Social Services.