1.1                          A bill for an act 
  1.2             relating to health; modifying terms of physician loan 
  1.3             forgiveness programs; amending Minnesota Statutes 
  1.4             1996, section 136A.1355. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 136A.1355, is 
  1.7   amended to read: 
  1.8      136A.1355 [RURAL PHYSICIANS.] 
  1.9      Subdivision 1.  [CREATION OF ACCOUNT.] A rural physician 
  1.10  education account is established in the health care access 
  1.11  fund.  The higher education services office shall use money from 
  1.12  the account to establish a loan forgiveness program for 
  1.13  medical ~~students~~ residents agreeing to practice in designated 
  1.14  rural areas, as defined by the commissioner.  
  1.15     Subd. 2.  [ELIGIBILITY.] To be eligible to participate in 
  1.16  the program, a prospective physician must submit a letter of 
  1.17  interest to the higher education services office.  A ~~student or~~ 
  1.18  resident who is accepted must sign a contract to agree to serve 
  1.19  at least three of the first five years following residency in a 
  1.20  designated rural area. 
  1.21     Subd. 3.  [LOAN FORGIVENESS.] For fiscal years beginning on 
  1.22  and after July 1, 1995, the higher education services office may 
  1.23  accept up to ~~four applicants who are fourth year medical~~ 
  1.24  ~~students, three~~ 12 applicants who are medical residents, four 
  1.25  applicants who are pediatric residents, and ~~four~~ six applicants 
  2.1   who are family practice residents, and ~~one applicant who is~~ 
  2.2   ~~an~~ two applicants who are internal medicine ~~resident~~ residents, 
  2.3   per fiscal year for participation in the loan forgiveness 
  2.4   program.  If the higher education services office does not 
  2.5   receive enough applicants per fiscal year to fill the number of 
  2.6   residents in the specific areas of practice, the resident 
  2.7   applicants may be from any area of practice.  The ~~eight~~ 12 
  2.8   resident applicants may be in any year of training; however, 
  2.9   priority must be given to the following categories of residents 
  2.10  in descending order:  third year residents, second year 
  2.11  residents, and first year residents.  Applicants are responsible 
  2.12  for securing their own loans.  Applicants chosen to participate 
  2.13  in the loan forgiveness program may designate for each year of 
  2.14  medical school, up to a maximum of four years, an agreed amount, 
  2.15  not to exceed $10,000, as a qualified loan.  For each year that 
  2.16  a participant serves as a physician in a designated rural area, 
  2.17  up to a maximum of four years, the higher education services 
  2.18  office shall annually pay an amount equal to one year of 
  2.19  qualified loans.  Participants who move their practice from one 
  2.20  designated rural area to another remain eligible for loan 
  2.21  repayment.  In addition, if a resident participating in the loan 
  2.22  forgiveness program serves at least four weeks during a year of 
  2.23  residency substituting for a rural physician to temporarily 
  2.24  relieve the rural physician of rural practice commitments to 
  2.25  enable the rural physician to take a vacation, engage in 
  2.26  activities outside the practice area, or otherwise be relieved 
  2.27  of rural practice commitments, the participating resident may 
  2.28  designate up to an additional $2,000, above the $10,000 maximum, 
  2.29  for each year of residency during which the resident substitutes 
  2.30  for a rural physician for four or more weeks. 
  2.31     Subd. 4.  [PENALTY FOR NONFULFILLMENT.] If a participant 
  2.32  does not fulfill the required three-year minimum commitment of 
  2.33  service in a designated rural area, the higher education 
  2.34  services office shall collect from the participant the amount 
  2.35  paid by the commissioner under the loan forgiveness program.  
  2.36  The higher education services office shall deposit the money 
  3.1   collected in the rural physician education account established 
  3.2   in subdivision 1.  The commissioner shall allow waivers of all 
  3.3   or part of the money owed the commissioner if emergency 
  3.4   circumstances prevented fulfillment of the three-year service 
  3.5   commitment.  
  3.6      Subd. 5.  [LOAN FORGIVENESS; UNDERSERVED URBAN 
  3.7   COMMUNITIES.] For fiscal years beginning on and after July 1, 
  3.8   1995, the higher education services office may accept up to four 
  3.9   applicants who are ~~either fourth year medical students, or~~ 
  3.10  residents in family practice, pediatrics, or internal medicine 
  3.11  per fiscal year for participation in the urban primary care 
  3.12  physician loan forgiveness program.  The resident applicants may 
  3.13  be in any year of residency training; however, priority will be 
  3.14  given to the following categories of residents in descending 
  3.15  order:  third year residents, second year residents, and first 
  3.16  year residents.  If the higher education services office does 
  3.17  not receive enough qualified applicants per fiscal year to fill 
  3.18  the number of slots for urban underserved communities, the slots 
  3.19  may be allocated to ~~students or~~ residents who have applied for 
  3.20  the rural physician loan forgiveness program in subdivision 1.  
  3.21  Applicants are responsible for securing their own loans.  For 
  3.22  purposes of this provision, "qualifying educational loans" are 
  3.23  government and commercial loans for actual costs paid for 
  3.24  tuition, reasonable education expenses, and reasonable living 
  3.25  expenses related to the graduate or undergraduate education of a 
  3.26  health care professional.  Applicants chosen to participate in 
  3.27  the loan forgiveness program may designate for each year of 
  3.28  medical school, up to a maximum of four years, an agreed amount, 
  3.29  not to exceed $10,000, as a qualified loan.  For each year that 
  3.30  a participant serves as a physician in a designated underserved 
  3.31  urban area, up to a maximum of four years, the higher education 
  3.32  services office shall annually pay an amount equal to one year 
  3.33  of qualified loans.  Participants who move their practice from 
  3.34  one designated underserved urban community to another remain 
  3.35  eligible for loan repayment.