1.1                          A bill for an act 
  1.2             relating to health occupations; providing for 
  1.3             reporting of and penalties against health-related 
  1.4             licensees who fail to fulfill certain contractual and 
  1.5             loan repayment obligations; amending Minnesota 
  1.6             Statutes 2000, section 144.1491, subdivision 1; 
  1.7             proposing coding for new law in Minnesota Statutes, 
  1.8             chapter 214. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2000, section 144.1491, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [PENALTIES FOR BREACH OF CONTRACT.] A 
  1.13  program participant who fails to complete two years of obligated 
  1.14  service shall repay the amount paid, as well as a financial 
  1.15  penalty based upon the length of the service obligation not 
  1.16  fulfilled.  If the participant has served at least one year, the 
  1.17  financial penalty is the number of unserved months multiplied by 
  1.18  $1,000.  If the participant has served less than one year, the 
  1.19  financial penalty is the total number of obligated months 
  1.20  multiplied by $1,000.  The commissioner shall report to the 
  1.21  appropriate health-related licensing board a participant who 
  1.22  fails to complete obligated service and fails to repay the 
  1.23  amount paid or fails to pay a financial penalty owed under this 
  1.24  subdivision. 
  1.25     Sec. 2.  [214.105] [HEALTH-RELATED LICENSING BOARDS; 
  1.26  DEFAULT ON FEDERAL LOANS OR SERVICE OBLIGATIONS.] 
  1.27     A health-related licensing board may refuse to grant a 
  2.1   license or may impose disciplinary action against a person 
  2.2   regulated by the board if the person is intentionally in 
  2.3   nonpayment, default, or breach of a repayment or service 
  2.4   obligation under any federal educational loan, loan repayment, 
  2.5   or service conditional scholarship program.