PRINTER'S NO. 3825
No. 2802 Session of 1978
INTRODUCED BY McCLATCHY, L. E. SMITH, O'CONNELL, HELFRICK,
E. Z. TAYLOR, NOYE, PETERSON, FISCHER, LASHINGER, HALVERSON,
D. S. HAYES, POTT, MADIGAN, WENGER, VROON, W. D. HUTCHINSON,
SALVATORE, GREENLEAF AND PITTS, SEPTEMBER 20, 1978
REFERRED TO COMMITTEE ON EDUCATION, SEPTEMBER 20, 1978
AN ACT
1 Amending the act of August 7, 1963 (P.L.549, No.290), entitled,
2 as amended, "An act creating the Pennsylvania Higher
3 Education Assistance Agency; defining its powers and duties;
4 conferring powers and imposing duties on the Governor,
5 President Pro Tempore of the Senate, Speaker of the House of
6 Representatives, Superintendent of Public Instruction and the
7 Department of Auditor General; and making appropriations,"
8 providing for the establishment of a loan fund for medical,
9 osteopathic, dental and optometrical students and for
10 granting credits for repayment to the fund for loans to
11 persons who practice medicine in medically deprived areas or
12 in the field of primary care and making an appropriation.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 4, act of August 7, 1963 (P.L.549,
16 No.290), entitled, as amended, "An act creating the Pennsylvania
17 Higher Education Assistance Agency; defining its powers and
18 duties; conferring powers and imposing duties on the Governor,
19 President Pro Tempore of the Senate, Speaker of the House of
20 Representatives, Superintendent of Public Instruction and the
21 Department of Auditor General; and making appropriations," is
22 amended by adding clauses to read:
1 Section 4. Powers and Duties.--In furtherance of the
2 purposes set forth in this act, the board of directors shall
3 have the following powers:
4 * * *
5 (12) To establish a special account in the Higher Education
6 Assistance Fund to guarantee loans of up to four thousand
7 dollars ($4,000) per year for students in medical, osteopathic,
8 dental or optometrical schools. The agency shall pay annually
9 from such account to the bank making the loan, an amount equal
10 to five percent for each year the recipient of the loan
11 practices medicine in a medically deprived area as determined by
12 the Secretary of Health in the Commonwealth and an amount equal
13 to five percent for each year the recipient engages in primary
14 care medical, osteopathic, dental or optometrical practice.
15 (13) Those recent medical, osteopathic, dental and
16 optometrical school graduates currently in residency training
17 programs shall be allowed to convert that portion of their
18 personal indebtedness directly attributed to medical,
19 osteopathic, dental or optometrical school tuitions up to four
20 thousand dollars ($4,000) into agency loans. The agency shall
21 pay annually from such account to the bank making the loan, an
22 amount equal to five percent for each year the recipient of the
23 loan practices medicine in a medically deprived area as
24 determined by the Secretary of Health in the Commonwealth and an
25 amount equal to five percent for each year the recipient engages
26 in primary care medical, osteopathic, dental or optometrical
27 practice.
28 (14) Primary care medical, osteopathic, dental or
29 optometrical practitioners currently in practice in nonmedically
30 deprived area's shall be eligible for loan forgiveness under the
19780H2802B3825 - 2 -
1 provisions of this act if they move their practice to a
2 medically deprived area in the Commonwealth. The agency shall
3 pay annually from such account to the bank making the loan, an
4 amount equal to five percent for each year the recipient of the
5 loan practices medicine in a medically deprived area as
6 determined by the Secretary of Health in the Commonwealth and an
7 amount equal to five percent for each year the recipient engages
8 in primary care medical, osteopathic, dental or optometrical
9 practice.
10 Section 2. The sum of $1,000,000, or as much thereof as may
11 be necessary, is hereby appropriated to the Pennsylvania Higher
12 Education Assistance Agency for the fiscal year July 1, 1978 to
13 June 30, 1979 to carry out the purposes of this act.
14 Section 3. This act shall take effect January 1, 1979.
H23L53RW/19780H2802B3825 - 3 -