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                               CORRECTIVE REPRINT
        PRIOR PRINTER'S NOS. 1324, 1659               PRINTER'S NO. 1662

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1093 Session of 2007


        INTRODUCED BY SHAPIRO, GERBER, BAKER, BELFANTI, BIANCUCCI,
           BISHOP, CUTLER, DePASQUALE, FABRIZIO, GEORGE, GOODMAN, HELM,
           HENNESSEY, JAMES, LEACH, MARKOSEK, McILHATTAN, MOYER, MUSTIO,
           NAILOR, PETRONE, REED, STABACK, WHEATLEY, MAHONEY, SCAVELLO,
           MURT, SOLOBAY, WALKO, BOYD, GERGELY, KORTZ, M. SMITH, SURRA,
           GINGRICH, YOUNGBLOOD, KING, RAPP, LONGIETTI, OLIVER, KILLION,
           SAINATO, McILVAINE SMITH, HARHAI, CALTAGIRONE AND GALLOWAY,
           APRIL 18, 2007

        AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
           MAY 23, 2007

                                     AN ACT

     1  Establishing the Physician Retention Loan Forgiveness Program in
     2     the Pennsylvania Higher Education Assistance Agency; and
     3     providing for powers and duties of the Pennsylvania Higher
     4     Education Assistance Agency.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Short title.
     8     This act shall be known and may be cited as the Physician
     9  Retention Loan Forgiveness Act.
    10  Section 2.  Purpose.
    11     The purpose of this act is to improve patient access to
    12  health care by assisting the Commonwealth with recruitment and
    13  retention of physicians.
    14  Section 3.  Definitions.
    15     The following words and phrases when used in this act shall

     1  have the meanings given to them in this section unless the
     2  context clearly indicates otherwise:
     3     "Agency."  The Pennsylvania Higher Education Assistance
     4  Agency.
     5     "Health care facility."  As defined in section 103 of the act
     6  of July 19, 1979 (P.L.130, No.48), known as the Health Care
     7  Facilities Act.
     8     "Physician."  A medical doctor or doctor of osteopathy.
     9     "Program."  The Physician Retention Loan Forgiveness Program
    10  established by this act.
    11  Section 4.  Program.
    12     (a)  Establishment.--The Physician Retention Loan Forgiveness
    13  Program is established in the agency.
    14     (b)  Applications.--The agency shall promulgate guidelines
    15  for the selection of candidates to the program based upon the
    16  following criteria:
    17         (1)  Demonstrated need.
    18         (2)  Willingness to continue practicing as a physician in
    19     this Commonwealth after completing the program.
    20     (c)  Eligibility.--A program applicant must be:
    21         (1)  A citizen of the United States.
    22         (2)  Licensed to practice medicine in this Commonwealth.
    23     (d)  Selection.--The agency shall give preference to
    24  physicians in the following order:
    25         (1)  RECIPIENTS OF LOANS WHO BY CONTRACT WITH THE AGENCY   <--
    26     AGREE TO PRACTICE MEDICINE IN AN AREA OF THIS COMMONWEALTH
    27     THAT IS REPORTED BY THE DEPARTMENT OF HEALTH AS MEDICALLY
    28     UNDERSERVED OR IN A PRIMARY CARE HEALTH PROFESSIONAL SHORTAGE
    29     AREA.
    30         (1) (2)  Commonwealth physicians completing training in    <--
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     1     this Commonwealth.
     2         (2) (3)  Out-of-State applicants completing training in    <--
     3     this Commonwealth.
     4         (3) (4)  Commonwealth natives completing out-of-State      <--
     5     training.
     6         (4) (5)  Out-of-State candidates completing out-of-State   <--
     7     training.
     8     (e)  Verification.--The agency shall monitor and verify a
     9  physician's fulfillment of all requirements under this act.
    10  Section 5.  Amount of loan forgiveness.
    11     (a)  Physicians practicing full time.--A physician accepted
    12  into the program practicing full time may be reimbursed an
    13  amount up to 100% of the total loan for physician training based
    14  upon the following repayment assistance schedule:
    15         (1)  First year of service, 10%.
    16         (2)  Second year of service, 10%.
    17         (3)  Third year of service, 10%.
    18         (4)  Fourth year of service, 10%.
    19         (5)  Fifth year of service, 10%.
    20         (6)  Sixth year of service, 10%.
    21         (7)  Seventh year of service, 10%.
    22         (8)  Eighth year of service, 10%.
    23         (9)  Ninth year of service, 10%.
    24         (10)  Tenth year of service, 10%.
    25     (b)  Physicians practicing part time.--A physician accepted
    26  into the program practicing part time may be reimbursed an
    27  amount directly proportional to the number of hours worked of
    28  the total loan for physician training based upon the following
    29  repayment assistance schedule:
    30         (1)  First year of service, 10%.
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     1         (2)  Second year of service, 10%.
     2         (3)  Third year of service, 10%.
     3         (4)  Fourth year of service, 10%.
     4         (5)  Fifth year of service, 10%.
     5         (6)  Sixth year of service, 10%.
     6         (7)  Seventh year of service, 10%.
     7         (8)  Eighth year of service, 10%.
     8         (9)  Ninth year of service, 10%.
     9         (10)  Tenth year of service, 10%.
    10  Section 6.  Contract.
    11     (a)  General rule.--Physicians receiving loan forgiveness
    12  shall enter into a contract with the agency. The contract shall
    13  include, but not be limited to, the following terms and
    14  conditions:
    15         (1)  The physician shall agree to practice not fewer than
    16     ten full consecutive years in a licensed health care facility
    17     in this Commonwealth immediately following completion of
    18     training pursuant to the schedule provided in section 5.
    19         (2)  The physician shall agree to accept Medicare and
    20     Medicaid patients.
    21         (3)  The physician shall agree not to discriminate
    22     against patients based on the ability to pay.
    23         (4)  The physician shall permit the agency to monitor
    24     compliance with the work requirement.
    25         (5)  The agency shall certify compliance of the physician
    26     receiving a loan forgiveness award for years subsequent to
    27     the initial year of the loan.
    28         (6)  The contract shall be renewable on an annual basis
    29     upon certification by the agency that the physician has
    30     complied with the terms of the contract.
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     1         (7)  The contract shall terminate if the physician dies,
     2     is not able to perform the duties of a physician or is not
     3     able to maintain the physician's license to practice medicine
     4     due to physical or mental disability.
     5         (8)  If the physician's license to practice is suspended
     6     or revoked, the agency shall have the authority to terminate
     7     the physician's participation in the program and demand
     8     repayment of all loan forgiveness payments rendered to date.
     9         (9)  A physician who fails to begin or complete the
    10     obligations contracted for shall reimburse the Commonwealth
    11     all amounts received under this act and interest thereon as
    12     determined by the agency. Both the physician and the agency
    13     shall make every effort to resolve conflicts in order to
    14     prevent a breach of contract.
    15     (b)  Contract enforcement.--The agency shall have the
    16  authority to seek garnishment of wages for the collection of
    17  damages provided for in subsection (a)(9).
    18  Section 7.  Disqualification.
    19     Any person who knowingly or intentionally procures, obtains
    20  or aids another to procure or obtain loan forgiveness under this
    21  act through fraudulent means shall be disqualified from
    22  participation and shall be liable to the agency for an amount
    23  equal to three times the amount obtained.
    24  Section 8.  Tax consequences.
    25     Loan forgiveness payments received by a physician shall not
    26  be considered taxable income for purposes of Article III of the
    27  act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
    28  of 1971.
    29  Section 9.  Regulations.
    30     The agency shall adopt regulations and procedures necessary
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     1  to carry out the purposes of this act.
     2  Section 10.  Funding.
     3     Loan forgiveness payments shall be made to the extent that
     4  funds are appropriated to the Physician Retention Loan
     5  Forgiveness Program by the General Assembly.
     6  Section 11.  Effective date.
     7     This act shall take effect in 90 days.
















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