HF 1447

1st Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:28 p.m.

1.1A bill for an act 1.2relating to higher education; establishing a veterinarian education loan 1.3forgiveness program; appropriating money;proposing coding for new law in 1.4Minnesota Statutes, chapter 136A. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6    Section 1. new text begin [136A.1795] LARGE ANIMAL VETERINARIAN LOAN new text end 1.7 new text begin FORGIVENESS PROGRAM. new text end 1.8     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 1.9 new text begin have the meanings given. new text end 1.10 new text begin (b) "Veterinarian" means an individual who has been awarded a doctor of veterinary new text end 1.11 new text begin medicine degree from the College of Veterinary Medicine, University of Minnesota. new text end 1.12 new text begin (c) "Designated rural area" means an area in Minnesota outside the counties of new text end 1.13 new text begin Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, excluding the cities of new text end 1.14 new text begin Duluth, Mankato, Moorhead, Rochester, and St. Cloud. new text end 1.15 new text begin (d) "Emergency circumstances" means those conditions that make it impossible for new text end 1.16 new text begin the participant to fulfill the service commitment, including death, total and permanent new text end 1.17 new text begin disability, or temporary disability lasting more than two years. new text end 1.18 new text begin (e) "Qualified educational loan" means a government, commercial, or foundation new text end 1.19 new text begin loan for actual costs paid for tuition, reasonable education expenses, and reasonable living new text end 1.20 new text begin expenses related to the education of a veterinarian. new text end 1.21     new text begin Subd. 2. new text end new text begin Establishment; administration. new text end new text begin (a) The director of the Minnesota Office new text end 1.22 new text begin of Higher Education shall establish and administer a loan forgiveness program for large new text end 1.23 new text begin animal veterinarians who: new text end 1.24 new text begin (1) agree to practice in designated rural areas that are considered underserved; and new text end 2.1 new text begin (2) work full time in a practice that is at least 50 percent involved with the care of new text end 2.2 new text begin food animals. new text end 2.3 new text begin (b) Appropriations made to the program do not cancel and are available until new text end 2.4 new text begin expended. new text end 2.5     new text begin Subd. 3. new text end new text begin Eligibility. new text end new text begin (a) To be eligible to participate in the loan forgiveness program, new text end 2.6 new text begin an individual must: new text end 2.7 new text begin (1) be a veterinarian who has been awarded a veterinary medicine degree within new text end 2.8 new text begin three years of submitting an application under this section, or be enrolled in the new text end 2.9 new text begin veterinarian degree program and making satisfactory progress in the College of Veterinary new text end 2.10 new text begin Medicine, University of Minnesota; and new text end 2.11 new text begin (2) submit an application to the director of the Minnesota Office of Higher Education new text end 2.12 new text begin in the form and manner prescribed by the director. new text end 2.13 new text begin (b) An applicant selected to participate must sign a contract agreeing to complete a new text end 2.14 new text begin five-year service obligation to practice as required under subdivision 2, paragraph (a). new text end 2.15     new text begin Subd. 4. new text end new text begin Loan forgiveness. new text end new text begin (a) The director of the Minnesota Office of Higher new text end 2.16 new text begin Education may select a maximum of five applicants each year for participation in the loan new text end 2.17 new text begin forgiveness program, within the limits of available funding. Applicants are responsible for new text end 2.18 new text begin securing their own qualified educational loans. new text end 2.19 new text begin (b) The director must select participants based on their suitability for practice serving new text end 2.20 new text begin the designated rural area, as indicated by experience or training. The director must give new text end 2.21 new text begin preference to applicants closest to completing their training. new text end 2.22 new text begin (c) The director must make annual disbursements directly to the participant of new text end 2.23 new text begin $15,000 or the balance of the participant's qualifying educational loans, whichever is less, new text end 2.24 new text begin for each year that a participant meets the service obligation required under subdivision 3, new text end 2.25 new text begin paragraph (b), up to a maximum of five years. new text end 2.26 new text begin (d) Before receiving loan repayment disbursements and as requested, the participant new text end 2.27 new text begin must complete and return to the director an affidavit of practice form provided by the new text end 2.28 new text begin director verifying that the participant is practicing as required under subdivision 2, new text end 2.29 new text begin paragraph (a). The participant must provide the director with verification that the full new text end 2.30 new text begin amount of loan repayment disbursement received by the participant has been applied new text end 2.31 new text begin toward the designated loans. After each disbursement, verification must be received by new text end 2.32 new text begin the director and approved before the next loan repayment disbursement is made. new text end 2.33 new text begin (e) Participants who move their practice remain eligible for loan repayment as long new text end 2.34 new text begin as they practice as required under subdivision 2, paragraph (a). new text end 2.35     new text begin Subd. 5. new text end new text begin Penalty for nonfulfillment. new text end new text begin If a participant does not fulfill the required new text end 2.36 new text begin minimum commitment of service required under subdivision 3, paragraph (b), the director new text end 3.1 new text begin of the Minnesota Office of Higher Education must collect from the participant the total new text end 3.2 new text begin amount paid to the participant under the loan forgiveness program plus interest at a rate new text end 3.3 new text begin established according to section 270C.40. The director must deposit the money collected new text end 3.4 new text begin in the state general fund. The director must allow waivers of all or part of the money owed new text end 3.5 new text begin the director as a result of a nonfulfillment penalty if emergency circumstances prevented new text end 3.6 new text begin fulfillment of the service obligation. new text end 3.7     new text begin Subd. 6. new text end new text begin Rules. new text end new text begin The director may adopt rules to implement this section. new text end 3.8    Sec. 2. new text begin APPROPRIATION. new text end 3.9 new text begin $225,000 is appropriated from the general fund to the director of the Minnesota new text end 3.10 new text begin Office of Higher Education in fiscal year 2010 for the large animal loan forgiveness new text end 3.11 new text begin program. This appropriation is available until expended. new text end