House of Representatives

SB 1109

medical student loans

Sponsor: Senator Smith

 

DP

Committee on Health

DP

Caucus and COW

 

X

As Passed the House

SB 1109 makes changes to the statutes that govern the Board of Medical Student Loans (Board) and continues the Board for 10 years.

 

History

In 1977, laws were passed establishing the Board of Medical Student Loans to provide financial assistance to Arizona-residing medical students who agree to practice medicine in rural and other medically underserved areas once school and residency training are complete.  The state forgives one year’s worth of loan for each year spent in a rural or medically underserved areas of the state.  

 

In May 2000, the Arizona Office of the Auditor General (OAG) conducted a performance audit of the Board and reported to the Legislature.  The OAG recommended the Board propose legislation that would: 1) include additional areas where doctors can fulfill service obligations as approved by the Board; 2) define rural or give the Board rule-making authority to adopt a definition; and 3) include the amount of time the Board tracks doctors who have completed their service obligations, yet continue to practice in rural and medically underserved areas.

 

Provisions

·                      Expands the definition of medically underserved area and defines medically underserved population and rural.

 

·                      Stipulates that the Board may grant loans to students who intend to enter and complete an approved residency program to become certified in the following:

                        -family practice

                        -general pediatrics

                        -obstetrics and gynecology

                        -general internal medicine

                        -combined medicine and pediatrics

 

·                      Specifies Arizona residency shall be determined by the same criteria used to determine in-state status, (A.R.S. §15-1802).

 

·                      Clarifies that loans adjusted by the inflation formula, which began in 1993-1994 and continued each year after, shall end June 30, 2002.

 

·                      Limits the amount provided for tuition to not exceed registration costs.

 

·                      Stipulates that loans beginning in 2002-2003 and each year after shall provide tuition plus up to $16,000 for each student and specifies that loans beginning in 2003-2004 and each year after shall be adjusted by a prescribed calculation (based on the Gross Domestic Product price deflator).

 

·                      Authorizes the Board to approve service locations in this state that may be rural and medically underserved areas, medically underserved areas, medically underserved population, or any Indian reservation. 

 

·                      Allows the Board to record in the student’s contract an approved location and permits the student to seek employment in the area as a physician and makes it permissible for the approved location to be noted in subsequent contracts as such.

 

·                      Requires the Board to collect and maintain data for 10 years on the retention of doctors in service locations. 

 

·                      Extends the time period from four to five years for which an applicant may be granted a loan.

 

·                      Eliminates the prohibition that a loan total shall not exceed the costs of a medical education at an approved university.

 

·                      Removes the prohibition of granting loans for courses conducted outside of Arizona.

 

·                      Permits the Board upon good reason to provide extensions for loan repayments and allows the Board to waive the payment of principal if death or permanent physical disability of the recipient occurs.

 

·                      Substitutes United States Public Health Service for National Health Service Corps.

 

·                      Allows the Board for good cause to defer recipient’s service or payment obligations, enter into repayment arrangements with the recipient, or accept service that is equivalent to full-time service based on the Board’s determination of circumstances.

 

·                      Continues the Board for 10 years (until July 1, 2011)

 

·                      Grandfathers service locations that were approved by the Board prior to July 1, 2000.

 

·                      Contains a retroactivity clause pertaining to the Board’s authority to approve service locations and loan repayment arrangements, (June 30, 1978). 

 

·                      Contains a purpose clause.

 

·                      Contains a retroactivity clause relating to the continuation of the Board, (July 1, 2001).

 

·                      Makes technical and conforming changes.

 

SB 1109 passed the House of Representative as introduced.

 

 

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45th Legislature                    

First Regular Session            3          March 30, 2001

 

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