Bill Text: IL SB1691 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: 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.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2017-08-04 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB1691 Detail]

Download: Illinois-2017-SB1691-Introduced.html


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.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning public aid.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. The State Finance Act is amended by adding
5Section 5.878 as follows:
6 (30 ILCS 105/5.878 new)
7 Sec. 5.878. The Safety-Net Hospital Service Loan
8Forgiveness Program Fund.
9 Section 5. The Illinois Public Aid Code is amended by
10adding Section 12-4.51 as follows:
11 (305 ILCS 5/12-4.51 new)
12 Sec. 12-4.51. Safety-Net Hospital Service Loan Forgiveness
13Program.
14 (a) As used in this Section:
15 "Medical resident" means an individual participating in an
16accredited medical residency program in the area of family
17practice, internal medicine, obstetrics and gynecology,
18pediatrics, or psychiatry.
19 "Physician" means a person licensed under the Medical
20Practice Act of 1987 to practice medicine in all its branches
21and practices in the area of family practice, internal

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1medicine, obstetrics and gynecology, pediatrics, or
2psychiatry.
3 "Program" means the Safety-Net Hospital Service Loan
4Forgiveness Program established under this Section.
5 "Qualified educational loan" means a government,
6commercial, or foundation loan for actual costs paid for
7tuition, reasonable education expenses, and reasonable living
8expenses related to the graduate or undergraduate education of
9a physician or medical resident.
10 "Safety-Net Hospital" has the meaning ascribed to it in
11Section 5-5e.1 of this Code.
12 (b) The Department of Healthcare and Family Services shall
13establish a Safety-Net Hospital Service Loan Forgiveness
14Program to make loan repayment disbursements to physicians and
15medical residents who agree to practice in a Safety-Net
16Hospital.
17 (c) To be eligible to participate in the Program, an
18individual must:
19 (1) be a physician or medical resident at the time of
20 application; and
21 (2) submit an application to the Department of
22 Healthcare and Family Services as prescribed by rule.
23 (d) In considering applications, the Department shall give
24preference to applicants who document diverse cultural
25competencies. Applicants are responsible for securing their
26own qualified educational loans. The Department shall select

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1applicants based on their suitability for practice serving a
2Safety-Net Hospital, as indicated by experience or training.
3 (e) A physician or medical resident who is selected to
4participate in the Program must sign a contract to agree to
5serve a minimum 3-year full-time service obligation.
6 (f) For each year that a selected physician or medical
7resident meets the service obligation required under
8subsection (e), up to a maximum of 4 years, the Department
9shall make annual disbursements directly to the physician or
10medical resident equivalent to 35% of the average educational
11debt for indebted graduates in his or her profession in the
12year closest to his or her selection for which information is
13available, not to exceed the balance of his or her qualifying
14educational loans. Before receiving loan repayment
15disbursements and as requested, the selected physician or
16medical resident must complete and return to the Department a
17confirmation of practice form provided by the Department
18verifying that he or she is practicing as required under
19subsection (c) and (e). The selected physician or medical
20resident must provide the Department with verification that the
21full amount of the loan repayment disbursement received by him
22or her has been applied toward the designated loans. After each
23disbursement, verification must be received by the Department
24and approved before the next loan repayment disbursement is
25made.
26 (g) If a physician or medical resident selected to

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1participate in the Program fails to fulfill the required
2minimum commitment of service according to subsection (e), the
3Department shall collect from the physician or medical resident
4the total amount paid to him or her under the Program plus
5interest at a rate established by the Department by rule. The
6Department shall deposit the moneys collected under this
7Section into the Safety-Net Hospital Service Loan Forgiveness
8Program Fund established under subsection (h). The Department
9shall allow waivers of all or part of the money owed the
10Department as a result of a nonfulfillment penalty if emergency
11circumstances prevented fulfillment of the minimum service
12commitment.
13 (h) The Safety-Net Hospital Service Loan Forgiveness
14Program Fund is created as a special fund in the State
15treasury. All moneys deposited into the Fund shall be used by
16the Department to make loan repayment disbursements to
17physicians or medical residents selected to participate in the
18Program. The Fund shall consist of the following:
19 (1) Moneys appropriated to the Fund by the General
20 Assembly.
21 (2) Moneys collected under subsection (g).
22 (3) Earnings attributable to moneys in the Fund.
23 (i) The Department shall adopt any rules necessary to
24implement the provisions of this Section.
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