SB1691 100TH GENERAL ASSEMBLY

LRB100 10552 KTG 20768 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1691

Introduced 2/9/2017, by Sen. Kwame Raoul

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.878 new
305 ILCS 5/12-4.51 new

Amends the State Finance Act. Creates the Safety-Net Hospital Service Loan Forgiveness Program Fund. Amends the Illinois Public Aid Code. Requires the Department of Healthcare and Family Services to establish the Safety-Net Hospital Service Loan Forgiveness Program to make loan repayment disbursements to physicians and medical residents, as defined, who agree to practice in a Safety-Net Hospital. Requires physicians and medical residents who are selected to participate in the Program to agree, by contract, to serve a minimum 3-year full-time service obligation. Requires the Department to make annual disbursements directly to the selected physician or medical resident equivalent to 35% of the average educational debt for indebted graduates in his or her profession not to exceed the balance of the physician or medical resident's qualifying educational loans. Provides that before receiving loan repayment disbursements and as requested, the physician or medical resident must complete a confirmation of practice form verifying that he or she is practicing as required under the Program. Provides that if a physician or medical resident fails to fulfill the required minimum commitment of service, the Department shall collect the total amount paid to the physician or medical resident under the Program plus interest and shall deposit such moneys into the Safety-Net Hospital Service Loan Forgiveness Program Fund. Requires the Department to adopt any rules necessary to implement the Program.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public aid.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. The State Finance Act is amended by adding Section 5.878 as follows:

(30 ILCS 105/5.878 new)

Sec. 5.878. The Safety-Net Hospital Service Loan Forgiveness Program Fund.

Section 5. The Illinois Public Aid Code is amended by adding Section 12-4.51 as follows:

(305 ILCS 5/12-4.51 new)

Sec. 12-4.51. Safety-Net Hospital Service Loan Forgiveness Program.

(a) As used in this Section:

"Medical resident" means an individual participating in an accredited medical residency program in the area of family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.

"Physician" means a person licensed under the Medical Practice Act of 1987 to practice medicine in all its branches and practices in the area of family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.

"Program" means the Safety-Net Hospital Service Loan Forgiveness Program established under this Section.

"Qualified educational loan" means a government, commercial, or foundation loan for actual costs paid for tuition, reasonable education expenses, and reasonable living expenses related to the graduate or undergraduate education of a physician or medical resident.

"Safety-Net Hospital" has the meaning ascribed to it in Section 5-5e.1 of this Code.

(b) The Department of Healthcare and Family Services shall establish a Safety-Net Hospital Service Loan Forgiveness Program to make loan repayment disbursements to physicians and medical residents who agree to practice in a Safety-Net Hospital.

(c) To be eligible to participate in the Program, an individual must:

(1) be a physician or medical resident at the time of application; and

(2) submit an application to the Department of Healthcare and Family Services as prescribed by rule.

(d) In considering applications, the Department shall give preference to applicants who document diverse cultural competencies. Applicants are responsible for securing their own qualified educational loans. The Department shall select applicants based on their suitability for practice serving a Safety-Net Hospital, as indicated by experience or training.

(e) A physician or medical resident who is selected to participate in the Program must sign a contract to agree to serve a minimum 3-year full-time service obligation.

(f) For each year that a selected physician or medical resident meets the service obligation required under subsection (e), up to a maximum of 4 years, the Department shall make annual disbursements directly to the physician or medical resident equivalent to 35% of the average educational debt for indebted graduates in his or her profession in the year closest to his or her selection for which information is available, not to exceed the balance of his or her qualifying educational loans. Before receiving loan repayment disbursements and as requested, the selected physician or medical resident must complete and return to the Department a confirmation of practice form provided by the Department verifying that he or she is practicing as required under subsection (c) and (e). The selected physician or medical resident must provide the Department with verification that the full amount of the loan repayment disbursement received by him or her has been applied toward the designated loans. After each disbursement, verification must be received by the Department and approved before the next loan repayment disbursement is made.

(g) If a physician or medical resident selected to participate in the Program fails to fulfill the required minimum commitment of service according to subsection (e), the Department shall collect from the physician or medical resident the total amount paid to him or her under the Program plus interest at a rate established by the Department by rule. The Department shall deposit the moneys collected under this Section into the Safety-Net Hospital Service Loan Forgiveness Program Fund established under subsection (h). The Department shall allow waivers of all or part of the money owed the Department as a result of a nonfulfillment penalty if emergency circumstances prevented fulfillment of the minimum service commitment.

(h) The Safety-Net Hospital Service Loan Forgiveness Program Fund is created as a special fund in the State treasury. All moneys deposited into the Fund shall be used by the Department to make loan repayment disbursements to physicians or medical residents selected to participate in the Program. The Fund shall consist of the following:

(1) Moneys appropriated to the Fund by the General Assembly.

(2) Moneys collected under subsection (g).

(3) Earnings attributable to moneys in the Fund.

(i) The Department shall adopt any rules necessary to implement the provisions of this Section.