Bill Text: IA SF2176 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act establishing a rural veterinarian loan repayment program for veterinary students and certain licensed veterinarians and a rural veterinary care trust fund, and making appropriations. (See SF 2398.)

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-03-02 - Committee report approving bill, renumbered as SF 2398. S.J. 484. [SF2176 Detail]

Download: Iowa-2019-SF2176-Introduced.html
Senate File 2176 - Introduced SENATE FILE 2176 BY EDLER A BILL FOR An Act establishing a rural veterinarian loan repayment 1 program for veterinary students and certain licensed 2 veterinarians and a rural veterinary care trust fund, and 3 making appropriations. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5338XS (5) 88 kh/jh
S.F. 2176 Section 1. NEW SECTION . 261.120 Rural veterinarian loan 1 repayment program —— fund —— appropriations. 2 1. Definitions. For purposes of this section, unless the 3 context otherwise requires: 4 a. “Eligible loan” means the veterinarian’s total federally 5 guaranteed Stafford loan amount under the federal family 6 education loan program or the federal direct loan program, the 7 recipient’s federal grad plus loans, or the recipient’s federal 8 Perkins loan, including principal and interest. 9 b. “Practice of food supply veterinary medicine” includes 10 corporate and private practices devoted to food animal 11 medicine, mixed animal medicine located in a rural area, food 12 safety, epidemiology, public health, animal health, and other 13 public and private practices that contribute to the production 14 of a safe and wholesome food supply. 15 c. “Rural service commitment area” means a city in Iowa 16 with a population of less than twenty-six thousand that is 17 located more than twenty miles from a city with a population of 18 fifty thousand or more and which provides a dollar contribution 19 equivalent to twelve and one-half percent of the veterinarian’s 20 total eligible loan amount upon graduation for deposit in the 21 rural veterinary care trust fund. 22 d. Veterinary shortage area” means a designated veterinary 23 service shortage situation in Iowa identified and nominated 24 by the state veterinarian, and recommended for designation in 25 accordance with the federal National Veterinary Medical Service 26 Act, 7 U.S.C. §3101 et seq., and published by the United States 27 department of agriculture. 28 2. Program established. A rural veterinarian loan 29 repayment program is established to be administered by the 30 college student aid commission for purposes of providing 31 loan repayments for individuals who agree to practice 32 as veterinarians in rural service commitment areas or in 33 veterinary shortage areas in Iowa for four years and meet the 34 requirements of this section. The commission shall adopt 35 -1- LSB 5338XS (5) 88 kh/jh 1/ 8
S.F. 2176 rules pursuant to chapter 17A to administer this section. 1 The commission may accept gifts, grants, bequests, and other 2 private contributions, as well as state or federal moneys, for 3 deposit in the fund created under subsection 10. 4 3. Eligibility. An individual is eligible to apply to enter 5 into a program agreement with the commission if the individual 6 meets any of the following requirements: 7 a. Is enrolled in the final year of a veterinary degree 8 program at a college of veterinary medicine accredited by the 9 American veterinary medical association council on education. 10 b. Is a veterinarian licensed pursuant to chapter 169 11 who, within five years of applying for this program, received 12 a veterinary medicine degree from a college of veterinary 13 medicine accredited by the American veterinary medical 14 association council on education. 15 4. Program agreements. A program agreement shall be entered 16 into by an individual and the commission if the individual 17 meets the requirements of subsection 3. Under the agreement, 18 to receive loan repayments pursuant to subsection 6, the 19 individual shall fulfill all of the following requirements: 20 a. Receive or possess a doctor of veterinary medicine, 21 or the equivalent, from a college of veterinary medicine 22 accredited by the American veterinary medical association 23 council on education. 24 b. Possess, or apply for and obtain, a license to practice 25 veterinary medicine under chapter 169. 26 c. Secure an offer of employment or establish and maintain 27 a practice in a veterinary shortage situation or rural service 28 commitment area and engage in the full-time practice of 29 veterinary medicine for a period of four consecutive years 30 after entering into the agreement in the veterinary shortage 31 area or rural service commitment area, unless the loan 32 repayment recipient receives a waiver from the commission to 33 complete the years of practice required under the agreement in 34 another veterinary shortage area or rural service commitment 35 -2- LSB 5338XS (5) 88 kh/jh 2/ 8
S.F. 2176 area pursuant to subsection 7. 1 5. Priority to certain applicants. The commission shall 2 give priority to applicants who graduated from a high school in 3 Iowa or completed private instruction under chapter 299A. 4 6. Loan repayment amounts. 5 a. Unless the agreement entered into under subsection 6 4 stipulates otherwise, the amount of loan repayment an 7 individual who enters into an agreement shall receive if in 8 compliance with obligations under the agreement shall not 9 exceed fifteen thousand dollars annually for an eligible 10 loan. Payments under this section may be made for each year 11 of eligible practice during a period of four consecutive years 12 and shall not exceed a total of sixty thousand dollars or the 13 amount of outstanding eligible loans, whichever amount is less. 14 b. Subject to the availability of funding for this 15 purpose, the commission shall enter into at least five program 16 agreements annually. 17 7. Selection of rural service commitment area or veterinary 18 shortage area. A loan repayment recipient shall notify the 19 commission of the recipient’s rural service commitment area 20 or veterinary shortage area prior to beginning practice in 21 the area in accordance with subsection 4, paragraph “c” . The 22 commission may waive the requirement that the loan repayment 23 recipient practice in the same rural service commitment area or 24 veterinary shortage area for all four years. 25 8. Rural service commitment area or veterinarian shortage 26 area priority. When possible, the commission shall enter into 27 agreements under subsection 4 with individuals who agree to 28 practice in areas in the following priority order: 29 a. Private practice food supply veterinary medicine in any 30 veterinary shortage area. 31 b. Private practice food supply veterinary medicine in a 32 city in Iowa with a population of less than twenty-six thousand 33 that is located more than twenty miles from a city with a 34 population of fifty thousand or more, especially in remote or 35 -3- LSB 5338XS (5) 88 kh/jh 3/ 8
S.F. 2176 economically depressed rural areas. 1 c. Animal veterinary medicine in a rural service commitment 2 area. 3 9. Postponement and satisfaction of service obligation. 4 a. The obligation to engage in practice in accordance with 5 subsection 4 shall be postponed for the following purposes: 6 (1) Active duty status in the armed forces, the armed forces 7 military reserve, or the national guard. 8 (2) Service in volunteers in service to America. 9 (3) Service in the federal peace corps. 10 (4) A period of rural service commitment to the United 11 States public health service commissioned corps. 12 (5) A period of religious missionary work conducted by an 13 organization exempt from federal income taxation pursuant to 14 section 501(c)(3) of the Internal Revenue Code. 15 (6) Any period of temporary medical incapacity during which 16 the person obligated is unable, due to a medical condition, to 17 engage in full-time practice as required under subsection 4, 18 paragraph “c” . 19 b. Except for a postponement under paragraph “a” , 20 subparagraph (6), an obligation to engage in practice under an 21 agreement entered into pursuant to subsection 4 shall not be 22 postponed for more than two years from the time the full-time 23 practice was to have commenced under the agreement. 24 c. An obligation to engage in full-time practice under 25 an agreement entered into pursuant to subsection 4 shall be 26 considered satisfied when any of the following conditions are 27 met: 28 (1) The terms of the agreement are completed. 29 (2) The person who entered into the agreement dies. 30 (3) The person who entered into the agreement, due to 31 a permanent disability, is unable to practice veterinary 32 medicine. 33 (4) The commission waives the requirement that the person 34 who entered into the agreement fulfill the obligation to engage 35 -4- LSB 5338XS (5) 88 kh/jh 4/ 8
S.F. 2176 in practice. 1 d. If a loan repayment recipient fails to fulfill 2 the obligation to engage in practice in accordance with 3 subsection 4, the recipient shall be subject to repayment to 4 the commission of the loan amount plus interest as specified 5 by rule. A loan repayment recipient who fails to meet the 6 requirements of the obligation to engage in practice in 7 accordance with subsection 4 may also be subject to repayment 8 of moneys advanced by the rural service commitment area as 9 provided in any agreement with the rural service commitment 10 area. 11 10. Trust fund established. A rural veterinary care trust 12 fund is created in the state treasury as a separate fund under 13 the control of the commission. The commission may accept 14 gifts, grants, bequests, and other private contributions, as 15 well as state or federal moneys, for deposit in the fund. The 16 commission shall remit all repayments made pursuant to this 17 section to the rural veterinary care trust fund. All moneys 18 deposited or paid into the trust fund are appropriated and 19 made available to the commission to be used for meeting the 20 requirements of this section and increasing the number of 21 veterinarians participating in the program. Moneys in the 22 fund up to the total amount that an eligible individual may 23 receive for an eligible loan in accordance with this section 24 and upon fulfilling the requirements of subsection 4, shall be 25 considered encumbered for the duration of the agreement entered 26 into pursuant to subsection 4. Notwithstanding section 8.33, 27 any balance in the fund on June 30 of each fiscal year shall not 28 revert to the general fund of the state, but shall be available 29 for purposes of this section and to increase the number of 30 veterinarians participating in the program in subsequent fiscal 31 years. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -5- LSB 5338XS (5) 88 kh/jh 5/ 8
S.F. 2176 This bill establishes a rural veterinarian loan repayment 1 program in the college student aid commission to provide 2 loan repayments for individuals who agree to practice as 3 licensed veterinarians in rural service commitment areas or 4 in veterinary shortage areas in Iowa for four years, and 5 establishes in the state treasury a rural veterinary care trust 6 fund under the control of the commission. 7 “Rural service commitment area” means a city in Iowa with 8 a population of less than 26,000 that is located more than 9 20 miles from a city with a population of 50,000 or more 10 and which provides a contribution for deposit in the rural 11 veterinary care trust fund equivalent to 12.5 percent of the 12 veterinarian’s total eligible loan amount upon graduation. 13 “Veterinary shortage area” means a designated veterinary 14 service shortage situation in Iowa identified and nominated 15 by the state veterinarian, and recommended for designation in 16 accordance with the federal National Veterinary Medical Service 17 Act, 7 U.S.C. §3101 et seq., and published by the United States 18 department of agriculture. 19 An individual is eligible to enter into an agreement with 20 the commission for loan repayment if the individual is either 21 enrolled in the final year of a veterinary degree program 22 at an accredited college of veterinary medicine or is a 23 licensed veterinarian who, within five years of applying for 24 the program, received a veterinary medicine degree from an 25 accredited college of veterinary medicine. 26 To receive loan repayments, in addition to being or becoming 27 a licensed veterinarian, the individual must secure an offer of 28 employment or establish and maintain a practice in a veterinary 29 shortage situation or rural service commitment area and engage 30 in the full-time practice of veterinary medicine for a period 31 of four consecutive years in the veterinary shortage area or 32 rural service commitment area. 33 The commission shall give priority to applicants who 34 graduated from an Iowa high school or completed private 35 -6- LSB 5338XS (5) 88 kh/jh 6/ 8
S.F. 2176 instruction in Iowa. The bill also directs the commission, 1 when possible, to enter into agreements with individuals 2 who agree to practice in areas in the following priority 3 order: private practice food supply veterinary medicine in 4 any veterinary shortage area; private practice food supply 5 veterinary medicine in a city in Iowa with a population 6 of less than 26,000 located more than 20 miles from a city 7 with a population of 50,000 or more, especially in remote or 8 economically depressed rural areas; and animal veterinary 9 medicine in a rural service commitment area. 10 The bill defines “practice of food supply veterinary 11 medicine” to include corporate and private practices devoted to 12 food animal medicine, mixed animal medicine located in a rural 13 area, food safety, epidemiology, public health, animal health, 14 and other public and private practices that contribute to the 15 production of a safe and wholesome food supply. 16 Unless the agreement stipulates otherwise, the amount of 17 loan repayment shall not exceed $15,000 annually and shall not 18 exceed a total of $60,000 or the amount of outstanding eligible 19 loans, whichever amount is less. 20 Subject to funding, the commission must enter into at least 21 five program agreements annually. 22 The commission may waive the requirement that the loan 23 repayment recipient practice in the same veterinary shortage 24 area or rural service commitment area for all four years. 25 The bill establishes the conditions under which the service 26 obligation may be postponed and terms for satisfaction of the 27 service obligation. Except for a postponement for a medical 28 condition, the service obligation shall not be postponed for 29 more than two years. The commission is authorized to waive 30 the requirement that the person who entered into the agreement 31 fulfill the obligation to engage in practice. 32 If a loan repayment recipient fails to fulfill their 33 obligation, the recipient shall be subject to repayment of 34 moneys paid by the commission and may also be subject to 35 -7- LSB 5338XS (5) 88 kh/jh 7/ 8
S.F. 2176 repayment of moneys advanced by the rural service commitment 1 area. 2 A rural veterinary care trust fund is created in the 3 state treasury as a separate fund under the control of the 4 commission. All moneys deposited or paid into the trust 5 fund are appropriated and made available to the commission 6 to be used for the program and to increase the number of 7 veterinarians in the program and do not revert to the general 8 fund of the state at the end of the fiscal year. The commission 9 may accept gifts, grants, bequests, and other private 10 contributions, as well as state or federal moneys, for deposit 11 in the fund. 12 -8- LSB 5338XS (5) 88 kh/jh 8/ 8
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