HB4843 95TH GENERAL ASSEMBLY

LRB095 16041 RAS 42059 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4843

Introduced , by Rep. David Reis

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.708 new

Creates the Veterinary Loan Repayment Program Act. Requires the Department of Agriculture to establish the Veterinary Loan Repayment Program to increase the number of veterinarians practicing in designated veterinary resource shortage areas in the State by providing educational loan repayment assistance grants to veterinarians. Sets forth eligibility requirements under the Program and the service obligation required for assistance under the Program. Provides for the assessment of damages by the Department upon the failure of a recipient to fulfill the terms of the service obligation. Requires the Department to submit an annual report. Creates the Veterinary Loan Repayment Program Fund as a special fund in the State treasury. Amends the State Finance Act to establish the Fund. Effective July 1, 2008.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning education.

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

Section 1. Short title. This Act may be cited as the Veterinary Loan Repayment Program.

Section 5. Findings. The General Assembly finds and declares each of the following:

(1) The number of veterinarians willing to move into and work in rural communities is dwindling.

(2) New veterinary graduates are not engaging in food animal practice, and the result is a shortage of veterinarians in rural Illinois.

(3) This reduced number of veterinarians in rural areas puts Illinois' food supply at risk, and could make the State more vulnerable to bioterrorism.

(4) Many students begin veterinary school with the intention of entering rural practice, but the disparity between starting salaries in rural practice compared to urban practice, coupled with the average educational debt on graduation from veterinary school, makes it difficult to attract new graduates to a rural setting.

(5) The State of Illinois needs to establish a loan forgiveness program to help veterinarians to meet the needs of livestock producers in underserved areas of Illinois.

Section 10. Purpose. The purpose of the Act is to establish a program within the Department of Agriculture to increase the number of veterinarians practicing in designated veterinary resource shortage areas in this State by providing educational loan repayment assistance grants to veterinarians.

Section 15. Definitions. In this Act:

"Department" means the Department of Agriculture.

"Veterinary resource shortage area" means an area designated by rule as having limited access to large animal veterinary services or veterinary services necessary to enforce the law or protect public health.

Section 20. Veterinarian Loan Repayment Program.

(a) Subject to appropriation, there is established the Veterinarian Loan Repayment Program to be administered by the Department of Agriculture. The Program shall provide educational loan repayment assistance grants to veterinarians who practice in designated shortage areas in this State. Up to 5% of the appropriation for the Program may be used by the Department for the administration and promotion of veterinarian incentive programs.

(b) Beginning July 1, 2008, the Department shall, on an annual basis, consider 5 applications for grant assistance under the Program. The form of application and the information required to be set forth in the application shall be determined by the Department, and the applicants shall be required to submit with their applications any supporting documents that the Department deems necessary.

Section 25. Eligibility. An applicant is eligible for a grant under the Program if he or she meets all of the following qualifications:

(1) He or she must be a citizen or permanent resident of the United States.

(2) He or she must be a resident of Illinois; however if there are fewer than 5 qualified applicants for the Program who are residents of Illinois, then non-residents may be considered for the Program.

(3) He or she must be either enrolled in his or her final year of a veterinary medical program at a veterinary college accredited by the American Veterinary Medical Association or have been engaged in the practice of veterinary medicine in Illinois for less than 3 years prior to applying for the Program.

(4) He or she must provide proof to the Department of having educational loans incurred while enrolled in a veterinary medical program at a veterinary college accredited by the American Veterinary Medical Association.

(5) He or she must meet all other requirements that the Department deems necessary.

Section 30. Award of grants; maximum amount; service requirements.

(a) Subject to appropriation, for each year that a grant recipient practices full-time in this State in a designated veterinary resource shortage area as a veterinarian, the Department shall award a grant to that person in an amount equal to the amount that the person must repay in educational loans that year. However, the total amount in grants that a person may be awarded under the Program may not exceed $20,000 per year. A recipient may be awarded a grant under the Program for a period of up to 4 years.

(b) All grant funds distributed under the Program shall be paid to the educational lender on behalf of the grant recipient.

Section 35. Service obligation. Prior to receiving grant assistance under the Program, each grant recipient must sign an agreement pledging that, within the one-year period following the completion of the veterinary medical program for which he or she was awarded assistance, he or she shall:

(1) begin practicing full-time in this State in a designated shortage area for a period of not less than 4 years, while providing services for at least 40 hours per week, with at least 60% of the total monthly veterinary services that he or she provides devoted to large animal veterinary services or services necessary to implement or enforce the law or protect public health, as applicable; and

(2) upon request of the Department, provide the Department with evidence that he or she is fulfilling or has fulfilled the terms of the service obligation required under this Section.

(b) In adopting rules under this Act, the Department shall consult with the Veterinary Licensing and Disciplinary Board.

Section 40. Repayment upon default. If a grant recipient under the Program fails to fulfill the service obligation required under the Program, the Department shall assess damages against the recipient and require him or her to repay the Department in the following amounts:

(1) if the failure occurs during the first 2 years of the fulfillment of the service obligation, the recipient shall repay the Department 2 times the total amount that the Department agreed to pay on the recipient's behalf; and

(2) if the failure occurs during the final 2 years of the fulfillment of the service obligation, the recipient shall repay the Department 2 times the remaining total amount that the Department has obligated itself to repay.

Section 45. Reporting. The Department, on or before March 1 of each year, shall submit a report to the Governor and the General Assembly describing the operations of the Veterinary Loan Repayment Program during the previous calendar year. The report shall include information on all of the following:

(1) The number of requests received by the Department that a particular area be designated as a veterinary resource shortage area.

(2) The areas that have been designated as veterinary resource shortage areas and the priorities that have been assigned to them.

(3) The number of applicants for participation in the Veterinarian Loan Repayment Program.

(4) The number of veterinarians assigned to veterinary resource shortage areas and the payments made on behalf of those veterinarians under the Program.

(5) The veterinary resource shortage areas that have not been matched with all the veterinarians they need.

(6) The number of veterinarians failing to complete their service obligations, the amount of damages owed, and the amount of damages collected.

Section 50. Veterinary Loan Repayment Program Fund. All moneys appropriated for the purposes of and collected under this Act shall be deposited into the Veterinary Loan Repayment Program Fund, which is hereby created as a special fund in the State treasury. The Department may accept grants, fees, and other appropriations from governmental entities, private sources, foundations, trade associations, industry organizations, and not-for-profit organizations for deposit in the Fund for use in furthering the Veterinary Loan Repayment Program. The Department shall receive for deposit into the Fund $10 from each veterinary license renewal fee collected by the Department of Financial and Professional Regulation.

Section 55. Rulemaking. The Department shall adopt all rules necessary for the implementation and administration of this Act, including rules concerning each of the following:

(1) The definition of "large animal veterinary services", "veterinary services necessary to implement or enforce the law", and "veterinary services necessary to protect the public health".

(2) The designation of veterinary resource shortage areas comprised of areas in this State that have limited access to (i) large animal veterinary services; (ii) veterinary services necessary to implement or enforce the law; and (iii) veterinary services necessary to protect the public health. These designations may apply to geographic area, one or more facilities within a particular area, or a population group of animals within a particular area.

(3) The establishment of priorities among veterinary resource shortage areas for use in recruiting veterinarians under the Program.

(4) The establishment of priorities for use in determining eligibility among applicants for participation in the Program.

Section 95. The State Finance Act is amended by adding Section 5.708 as follows:

(30 ILCS 105/5.708 new)

Sec. 5.708. The Veterinary Loan Repayment Program Fund.

Section 99. Effective date. This Act takes effect July 1, 2008.