ARIZONA STATE SENATE
Phoenix, Arizona
health care providers; defaulted loans
Authorizes health profession regulatory boards to suspend the license or certificate of a person who is in default on a government education loan or service conditioned scholarship.
According to the U.S. Department of Health and Human Services (DHHS), 186 health professionals in Arizona are in default on their DHHS education loans or have failed to fulfill a service conditioned scholarship. These individuals owe an aggregate of $15,507,994 to the government, and include allopathic physicians, osteopathic physicians, chiropractic physicians, dentists and podiatrists.
According to the National Conference of State Legislatures, 11 other states have enacted legislation to penalize health professionals who default on government education loans. Punishment for defaulters on government education loans or failure to fulfill a service conditioned scholarship in those states includes denial of a license application, denial of license renewal, monetary penalties and other disciplinary actions. Four states have enacted laws to specifically suspend or revoke the licenses of loan and scholarship defaulters of federal programs.
During the past interim, DHHS contacted state legislators, requesting legislation to suspend or revoke the license of scholarship and loan defaulters. S.B. 1017 attempts to reduce the number of health professionals who default on their loans or scholarships by requiring health profession regulatory boards to initiate disciplinary action to suspend a health professional’s license or certificate if that person has defaulted on a student loan or service obligation.
There is no discernable fiscal impact related to the provisions of this bill.
1. Specifies defaulting on a government education loan or service conditioned scholarship constitutes unprofessional conduct for a health care professional.
2. Requires a health profession regulatory board to notify a licensed or certified person that the board will initiate disciplinary action to suspend that person’s license or certificate unless the person has paid off or is making payments on the loan.
3. Prohibits health profession regulatory boards from issuing a license or certificate to an applicant who is in default on a government education loan.
4. Provides for a general effective date.
Prepared by Senate Staff
January 18, 2002