Bill Text: GA HB234 | 2009-2010 | Regular Session | Introduced

---

Bill Title: Educational loans; service cancelable; State Veterinary Education Board; change certain provisions

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2009-02-03 - House Second Readers [HB234 Detail]

Download: Georgia-2009-HB234-Introduced.html

---

09 LC 25 5337

House Bill 234

By: Representative Maddox of the 172nd

A BILL TO BE ENTITLED
AN ACT

To amend Article 7 of Chapter 3 of Title 20 of the Official Code of Georgia Annotated, relating to scholarships, loans, and grants, so as to change certain provisions relating to a service cancelable loan fund and authorized types of service cancelable educational loans; to provide for a State Veterinary Education Board and its membership, powers, and duties; to provide for service cancelable loans and scholarships to residents of Georgia who are enrolled in school in the field of veterinary medicine; to provide for purchase of loans made for educational purposes to students who have completed a veterinary medical degree program; to provide effective dates; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 7 of Chapter 3 of Title 20 of the Official Code of Georgia Annotated, relating to scholarships, loans, and grants, is amended by revising paragraph (3) of subsection (b) of Code Section 20-3-374, relating to a service cancelable loan fund and authorized types of service cancelable educational loans, as follows:

"(3) DOCTORS OF VETERINARY MEDICINE. The authority is authorized to make service cancelable educational loans to residents of Georgia who are enrolled in school in the field of doctor of veterinary medicine, including veterinary surgery, obstetrics, dentistry, and all other specialties of veterinary medicine. Loans may be made to students enrolled in a veterinary college or in a veterinary division of a university or college accredited by the American Veterinary Medical Association who are pursuing a program of study leading to the degree of doctor of veterinary medicine or its equivalent. The authority shall from time to time, by regulation, designate specialties within the veterinary science field that qualify for service cancelable loans under this paragraph. In designating the qualified specialties, the authority shall give preference to those specialties in which there are shortages of persons trained in that specialty in the State of Georgia. Loans made under this paragraph need not be limited to students attending a school located in the State of Georgia. However, any and all loans made under this paragraph shall be conditional upon the student agreeing that the loan shall be repaid by the student either:

(A) Practicing in the approved qualified field in a geographical area in the State of Georgia approved by the authority. For service repayment, the loan shall be repaid at a rate of one year of service for each academic year of study or its equivalent for which a loan is made to the student under this paragraph; or

(B) In cash repayment with assessed interest thereon in accordance with the terms and conditions of a promissory note that shall be executed by the student.

A geographical area for service repayment through services rendered shall not be approved unless the area is a rural or sparsely populated area of the state or in a community of 10,000 population or less according to the United States decennial census of 2000 or any future such census and experiencing a shortage of licensed veterinarians to meet the needs of owners or producers of farm animals used for or in connection with the production of commercial food products. If the loan is not repaid by services rendered, it must be repaid by the student in cash with interest thereon in accordance with the terms of the promissory note executed by the student Reserved; and"

SECTION 2.

Said article is further amended by adding a new part as follows:

"Part 6A

20-3-518.1.

As used in this part, the term:

(1) 'Board' means the State Veterinary Education Board created under Code Section 20-3-518.2.

(2) 'Commissioner' means the Commissioner of Agriculture.

(3) 'Department' means the Department of Agriculture.

20-3-518.2.

(a) There shall be a State Veterinary Education Board which shall consist of:

(1) The Commissioner of Agriculture or his or her designee;

(2) The Dean of the College of Veterinary Medicine of the University of Georgia or his or her designee;

(3) The Dean of the College of Agricultural and Environmental Sciences of the University of Georgia or his or her designee;

(4) A person actively engaged in the production of livestock in this state, to be appointed by the Governor, who shall serve for a term of four years and until his or her successor is qualified and appointed. The term of the initial member appointed under this paragraph shall commence on July 1, 2009; and

(5) A person actively engaged in the private practice of veterinary medicine in this state, whose practice includes but is not necessarily limited to food animals, to be appointed by the State Board of Veterinary Medicine, who shall serve for a term of four years and until his or her successor is qualified and appointed. The term of the initial member appointed under this paragraph shall commence on July 1, 2009.

(b) Any vacancies on the board shall be filled in the same manner as the original appointment.

(c) The board shall elect annually a chairperson and also a vice chairperson to serve in the absence or inability of the chairperson. The board shall meet at least once each year at such time and place as may be fixed by the board. Special meetings shall be held upon the call of the chairperson. Three members of the board shall constitute a quorum for the transaction of business. No official action shall be taken by the board except upon the affirmative vote of at least three members of the board.

(d) For attending meetings of the board and for traveling in carrying out the official duties, the members of the board shall receive the compensation and allowances specified by Code Section 45-7-21.

(e) The board shall be attached to the Department of Agriculture for administrative purposes only, pursuant to Code Section 50-4-3.

20-3-518.3.

(a) The board is authorized to make service cancelable educational loans or scholarships to residents of Georgia who are enrolled in school in the field of doctor of veterinary medicine, including veterinary surgery, obstetrics, dentistry, and all other specialties of veterinary medicine. Loans or scholarships may be made to students enrolled in a veterinary college or in a veterinary division of a university or college accredited by the American Veterinary Medical Association who are pursuing a program of study leading to the degree of doctor of veterinary medicine or its equivalent. Loans, scholarships, or loan purchases for veterinary medicine made under this part need not be limited to students who are attending or who attended a school located in the State of Georgia.

(b) The board may provide for the purchase of loans made to students for educational purposes who have completed a program of study in the field of doctor of veterinary medicine or its equivalent and are authorized to practice veterinary medicine in this state, with such purchase to be repaid by the practice of veterinary medicine while residing in this state.

(c) The board shall from time to time, by regulation, designate specialties within the veterinary science field that qualify for service cancelable loans or scholarships or loan purchases under this part. In designating the qualified specialties, the board shall give preference to food animal specialties or other specialties in which there are shortages of persons trained in such specialties in this state.

20-3-518.4.

(a) Persons whose applications are approved shall receive a loan, scholarship, or loan purchase in an amount to be determined by the board, but not exceeding $20,000.00 annually, to defray the tuition and other expenses of the applicant in a college or university as provided by Code Section 20-3-518.3. The loans, scholarships, or loan purchases shall be paid in such manner as the board shall determine. Loans and scholarships may be prorated so as to pay to the veterinary medicine college or school to which any applicant is admitted such funds as are required by that college or school with the balance being paid directly to the applicant, all of which shall be under such terms and conditions as may be provided under rules and regulations of the board. The loans, scholarships, or loan purchases to be granted to each applicant shall be based upon the condition that the full amount of such loans, scholarships, or loan purchases shall be repaid to the State of Georgia in services to be rendered by the applicant by practicing his or her profession in a board approved rural county in Georgia of 35,000 population or less according to the United States decennial census of 2000 or any future such census. For each year of practicing his or her profession in such board approved location, the applicant shall receive credit for the amount of the loan, scholarship, or loan purchase received during any one year, with the interest due on such amount.

(b) The board shall not enter into new loan, scholarship, or loan purchase agreements with more than five persons per year, and any such agreement may be renewed annually not more than three times; provided, however, that the total sum of service cancelable loan or scholarship or loan purchase payments made by the board in any fiscal year from state appropriations shall not exceed the amount of funds for such loan, scholarship, and loan purchase purposes specified in annual appropriations Acts. Funds in the veterinary service cancelable loan and scholarship and loan purchase fund account that are not expended by the board for veterinary service cancelable loans or scholarships or loan purchases during any fiscal year shall lapse.

20-3-518.5.

(a) Each applicant before being granted a loan, scholarship, or loan purchase shall enter into a contract with the board agreeing to the terms and conditions upon which the loan, scholarship, or loan purchase is granted, which contract shall include such terms and provisions as will carry out the full purpose and intent of this part. The form of such contract shall be prepared and approved by the Attorney General, and each contract shall be signed by the chairperson of the board and by the applicant. For the purposes of this part the disabilities of minority of all applicants granted loans, scholarships, or loan purchases pursuant to this part are removed, and the said applicants are declared to be of full lawful age for the purpose of entering into the contract provided for in this Code section, and such contract so executed by an applicant is declared to be a valid and binding contract the same as though the said applicant were of the full age of majority. The board is vested with full and complete authority to bring an action in its own name against any applicant for any balance due the board on any such contract.

(b) An applicant who has entered into a loan or scholarship contract with the board and who:

(1) Is dismissed for either academic or disciplinary reasons from the college or school of veterinary medicine he or she is attending; or

(2) Voluntarily terminates his or her training and education in that institution for any reason prior to completion of training

shall be immediately liable to the board for all sums advanced with interest at the minimum rate of 12 percent per annum from the date of each payment by the board and compounded annually to the date the loan is paid in full. The board is authorized to increase annually said rate of interest due on loans granted to new recipients; provided, however, that the increased rate of interest shall not exceed by more than 2 percent the prime rate published by the Board of Governors of the Federal Reserve System and in effect at the time of the increase.

(c) An applicant who has entered into a loan, scholarship, or loan purchase contract with the board and who breaches that contract by either failing to begin or failing to complete his or her service obligation under such contract shall be immediately liable to the board for three times the total uncredited amount of all such loan, scholarship, or loan purchase payments paid to or on behalf of the applicant, such uncredited sums to be prorated on a monthly basis respecting the applicant's actual service and total service obligation. The board may consent or agree to a lesser measure of damages for compelling reasons.

(d) The board shall have the authority to cancel the loan, scholarship, or loan purchase contract of any applicant at any time for any cause deemed sufficient by the board, provided that such authority shall not be arbitrarily or unreasonably exercised. Upon such cancellation by the board, the total uncredited amount of the loan, scholarship, or loan purchase paid to the applicant shall at once become due and payable to the board in cash with interest at the minimum rate of 12 percent per annum from the date of each payment by the board and compounded annually to the date the loan is paid in full. The board is authorized to increase annually such rate of interest, subject to the limitations set forth in subsection (b) of this Code section.

20-3-518.6.

It shall be the duty of the board to make inquiry of such veterinary medicine colleges or schools as it deems proper and make arrangements, with the limitations as to cost as provided in this part, for the payment of tuition or matriculation fees of enrolled students granted scholarships by the board.

20-3-518.7.

The funds necessary for the loans, scholarships, and loan purchases provided for by this part and to administer the terms of this part shall come from funds made available to the board from appropriations for such purpose.

20-3-518.8.

The board shall adopt such rules and regulations as are reasonable and necessary to implement this part."

SECTION 3.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval for purposes of appointment of members as provided in Code Section 20-3-518.2 as enacted by this Act; and for all other purposes, this Act shall become effective on July 1, 2009.

SECTION 4.

All laws and parts of laws in conflict with this Act are repealed.