New Jersey-2022-S3054-Introduced

An Act establishing the New Jersey Veterinarians Loan Redemption Program and supplementing chapter 71C of Title 18A of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. This act shall be known and may be cited as the "New Jersey Veterinarian Loan Redemption Act."

2. The Legislature finds and declares that:

a. Veterinarians play a critical role in society as they are educated and trained to protect the health and welfare needs of every species of animal.

b. In addition to caring for the needs of all animals, veterinarians also contribute significantly to the fields of environmental protection, research, food safety, and public health.

c. The need for veterinary medicine services in the State and across the country is increasing, with national data showing that the number of appointments for veterinarians has grown since 2019.

d. The Association of American Veterinary Medical Colleges has previously predicted a shortage of 15,000 veterinarians across the country by 2026.

e. While there is a need to provide a more adequate level of veterinary care across New Jersey, the State remains an attractive location in which to practice as it provides the fifth-highest annual mean wage for veterinarians, according to the United States Bureau of Labor Statistics.

f. In response to the increased demand for veterinarians and workforce shortages, Rowan University is establishing a new School of Veterinary Medicine that will offer New Jersey's first Doctor of Veterinary Medicine degree, as well as graduate and undergraduate degrees, accelerated and dual M.S., M.B.A. and Ph.D. degree programs, an A.S. to B.S. degree pathway, and internship and residency opportunities.

g. The School of Veterinary Medicine will aid efforts to address the need for veterinarians in the State as many graduates of the school choose to work and establish practices in New Jersey.

h. It is fitting and proper that the State implement additional strategies to attract veterinarians to the State, including the provision of student loan debt relief to students graduating from veterinary medicine programs.

3. As used in this act:

"Authority" means the Higher Education Student Assistance Authority.

"Eligible qualifying loan expenses" means the cumulative outstanding balance of qualifying student loans, including interest paid or due, covering the cost of attendance at an institution of higher education for a doctor of veterinary medicine degree program.

"Executive director" means the executive director of the Higher Education Student Assistance Authority.

"Program participant" means a person who contracts with the authority to participate in the New Jersey's Own Veterinarians Loan Redemption Program established pursuant to section 4 of this act and the New Jersey Veterinarians Loan Redemption Program established pursuant to section 12 of this act in exchange for the redemption of eligible qualifying loan expenses.

"Qualifying student loan" means a State or federal loan for the actual costs paid for tuition and reasonable education and living expenses relating to obtaining a doctor of veterinary medicine degree.

"Total and permanent disability" means a physical or mental disability that is expected to continue indefinitely or result in death and renders a program participant unable to perform that person's employment obligation, as determined by the executive director or his designee.

4. There is established in the Higher Education Student Assistance Authority the New Jersey's Own Veterinarians Loan Redemption Program, the purpose of which is to increase the number of veterinarians in the State and to encourage those who graduate from doctor of veterinary medicine degree programs in the State to work and establish practices in the State.

5. a. The New Jersey's Own Veterinarians Loan Redemption Program established pursuant to section 4 of this act shall provide for the redemption of eligible qualifying loan expenses for individuals graduating with a doctor of veterinary medicine degree from an institution of higher education in New Jersey. As a condition of the receipt of loan redemption under this program, a program participant shall commit to being licensed and practicing as a veterinarian full-time in the State for one year following graduation from a doctor of veterinary medicine degree program at an institution of higher education in the State. Loan redemption provided under this section shall begin with service completed after the one year of service required under this subsection.

b. (1) The annual amount of loan redemption under the New Jersey's Own Veterinarians Loan Redemption Program shall not exceed $10,000 of a program participant's eligible qualifying loan expenses for each consecutive year of participation in the program, up to a maximum of five consecutive years. The total amount of eligible qualifying loan expenses which may be redeemed under the loan redemption program by a program participant, for five full years of participation, shall not exceed $50,000.

(2) As a condition of eligibility to participate in the New Jersey's Own Veterinarians Loan Redemption Program, a program participant shall commit to being licensed and practicing as a veterinarian full-time in the State for an equal period of time in which the participant received loan redemption, following the completion of the period of time under which a program participant receives loan redemption. In the event that the program participant does not satisfactorily fulfill this obligation, the participant shall be required to repay in full the amount of loan redemption provided to the program participant, as a debt to the State.

c. The New Jersey's Own Veterinarians Loan Redemption Program that is established pursuant to section 4 of this act shall first accept applicants beginning January 1 of the year following the year in which the first class of students graduates from a doctor of veterinary medicine program at an institution of higher education in the State. Such students, however, shall be provided the opportunity to begin applying for the program beginning February 1 of the year in which they graduate from the doctor of veterinary medicine program and the authority may accept and approve applications on a rolling basis prior to January 1 of the year following the year in which the first class of students graduates from a doctor of veterinary medicine program at an institution of higher education in the State. The New Jersey's Own Veterinarians Loan Redemption Program shall conclude June 30 of the sixth year following the year in which the first class of students graduate from a doctor of veterinary medicine program at an institution of higher education in the State, except that the Governor may continue to renew the program pursuant to section 11 of this act.

6. To be eligible to participate in the New Jersey's Own Veterinarians Loan Redemption Program, an applicant shall:

a. be a resident of the State and maintain residency during program participation;

b. have graduated with a doctor of veterinary medicine degree from an institution of higher education located in the State;

c. have an outstanding balance on a qualifying student loan and not be in default on any qualifying student loan;

d. have been licensed and employed as a veterinarian practicing full-time in the State for one year following graduation from a doctor of veterinary medicine degree program at an institution of higher education located in the State;

e. agree to be licensed and employed as a veterinarian practicing full-time in the State during the period of loan redemption;

f. continue to be employed as a veterinarian practicing full-time in the State for an equal period of time in which the participant received loan redemption after the completion of the loan redemption period; and

g. satisfy any additional criteria the authority may establish.

7. The executive director of the authority or the executive director's designee shall select program participants from among those applicants who meet the eligibility criteria established pursuant to section 6 of this act, subject to the availability of funds appropriated or otherwise made available for the purposes of the program.

8. A person who meets the eligibility requirements under section 6 of this act and has been selected by the executive director of the executive director's designee for participation in the New Jersey's Own Veterinarians Loan Redemption Program shall enter into a written contract with the authority. The contract shall, at a minimum, specify the dates of required employment by the program participant and shall specify the total amount of debt to be redeemed by the State in return for the number of years of service.

9. a. A program participant under the New Jersey's Own Veterinarians Loan Redemption Program, who has previously entered into a contract with the authority, may nullify the agreement by notifying the authority in writing and reassuming full responsibility for the remaining outstanding balance of the loan debt. In no event shall employment for less than the full calendar year entitle the program participant to any benefits under the program.

b. In the case of a program participant's death or total and permanent disability, the authority shall nullify the employment obligation of the program participant. The nullification shall terminate the authority's obligations under the loan redemption contract. When continued enforcement of the contract may result in extreme hardship, the authority may nullify or suspend the employment obligation of the program participant.

c. In the case of a program participant's conviction of a crime or an act of gross negligence in the performance of employment obligations, the executive director or the executive director's designee is authorized to terminate the program participant's participation in the New Jersey's Own Veterinarians Loan Redemption Program.

10. A person who knowingly or willfully furnishes any false or misleading information for the purpose of receiving loan redemption benefits under the New Jersey's Own Veterinarians Loan Redemption Program that is established pursuant to section 4 of this act is guilty of a crime of the fourth degree.

11. The Governor, in consultation with the Office of the Secretary of Higher Education and the New Jersey State Board of Veterinary Medical Examiners, may continue to renew the New Jersey's Own Veterinarians Loan Redemption Program until such time as it is deemed that there is a sufficient supply of veterinarians practicing in the State.

12. a. There is established in the Higher Education Student Assistance Authority the New Jersey Veterinarians Loan Redemption Program that shall provide for the redemption of eligible qualifying loan expenses for individuals with a doctor of veterinary medicine degree from an out-of-State accredited institution of higher education who meet the eligibility criteria established pursuant to section 13 of this act.

b. (1) The annual amount of loan redemption under the New Jersey Veterinarians Loan Redemption Program shall not exceed $5,000 of a program participant's eligible qualifying loan expenses for each consecutive year of participation, up to a maximum of five consecutive years. The total amount of eligible qualifying loan expenses which may be redeemed under the program by a program participant, for five full years of participation, shall not exceed $25,000.

(2) As a condition of eligibility to participate in the New Jersey Veterinarians Loan Redemption Program, a program participant shall commit to continuing to practice as a veterinarian full-time in the State for an equal period of time in which the participant received loan redemption, following the completion of the period of time under which a program participant receives loan redemption. In the event that the program participant does not satisfactorily fulfill this obligation, the participant shall be required to repay in full the amount of loan redemption provided to the program participant, as a debt to the State.

c. The New Jersey Veterinarians Loan Redemption Program shall first accept applicants beginning January 1 of the first year following the date of enactment of this act. This program shall cease to accept applicants upon the graduation of the first class of students from a doctor of veterinary medicine program at an institution of higher education in the State. The program shall conclude five years following the acceptance of the last cohort of program applicants pursuant to this subsection, except that the Governor may continue to renew the program pursuant to section 18 of this act.

13. To be eligible to participate in the New Jersey Veterinarians Loan Redemption Program that is established pursuant to section 12 of this act, an applicant shall:

a. be a resident of the State and maintain residency during program participation;

b. (1) have graduated high school in New Jersey or was a resident of New Jersey upon graduation from high school;

(2) have graduated from an undergraduate degree program at an institution of higher education in New Jersey; or

(3) have graduated high school in New Jersey or was a resident of New Jersey upon graduation from high school and maintained residency in the State during the applicant's undergraduate course of study and during the time in which the applicant attended an institution of higher education located outside of the State for a doctor of veterinary medicine program;

c. have graduated with a doctor of veterinary medicine degree from an institution of higher education located outside of the State;

d. have an outstanding balance on a qualifying student loan and not be in default on any qualifying student loan;

e. be licensed to practice veterinary medicine in the State and be currently employed as a veterinarian practicing full-time in the State;

f. agree to be licensed and employed as a veterinarian practicing full-time in the State during the period of loan redemption;

g. continue to be licensed and employed as a veterinarian practicing full-time in the State for an equal period of time in which the participant received loan redemption, after the completion of the loan redemption period; and

h. satisfy any additional criteria the authority may establish.

14. The executive director of the authority or the executive director's designee shall select program participants under the New Jersey Veterinarians Loan Redemption Program from among those applicants who meet the eligibility criteria established pursuant to section 13 of this act, subject to the availability of funds appropriated or otherwise made available for the purposes of the program.

15. A person who meets the eligibility requirements under section 13 of this act and has been selected by the executive director of the executive director's designee for participation in the New Jersey Veterinarians Loan Redemption Program shall enter into a written contract with the authority. The contract shall specify the dates of required employment by the program participant and shall specify the total amount of debt to be redeemed by the State in return for the number of years of service.

16. a. A program participant under the New Jersey Veterinarians Loan Redemption Program, who has previously entered into a contract with the authority, may nullify the agreement by notifying the authority in writing and reassuming full responsibility for the remaining outstanding balance of the loan debt. In no event shall employment for less than the full calendar year entitle the program participant to any benefits under the program.

17. A person who knowingly or willfully furnishes any false or misleading information for the purpose of receiving loan redemption benefits under the New Jersey Veterinarians Loan Redemption Program is guilty of a crime of the fourth degree.

18. The Governor, in consultation with the Office of the Secretary of Higher Education and the New Jersey State Board of Veterinary Medical Examiners, may continue to renew the New Jersey Veterinarians Loan Redemption Program that is established pursuant to section 12 of this act until such time as it is deemed that there is a sufficient supply of veterinarians practicing in the State.

19. The authority shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to implement the provisions of this act.

20. This act shall take effect immediately.

STATEMENT

This bill establishes two loan redemption programs aimed at increasing the number of veterinarians practicing in the State, namely the New Jersey's Own Veterinarians Loan Redemption Program and the New Jersey Veterinarians Loan Redemption Program.

The New Jersey's Own Loan Redemption Program would provide for the redemption of eligible qualifying loan expenses for individuals graduating with a doctor of veterinary medicine degree from an institution of higher education in New Jersey. As a condition of the receipt of loan redemption under this loan redemption program, a program participant is required to commit to practicing as a veterinarian full-time in the State for one year following graduation from a doctor of veterinary medicine degree program at an institution of higher education in the State. Loan redemption would begin with service completed after the one year of service following graduation. The annual amount of loan redemption under this loan redemption program would not exceed $10,000 of a program participant's eligible qualifying loan expenses for each consecutive year of participation in the program, up to a maximum of five consecutive years. The maximum total amount of loan redemption under this program would be $50,000.

To be eligible to participate in the New Jersey's Own Veterinarians Loan Redemption Program, an applicant would be required to:

� be a resident of the State and maintain residency during program participation;

� have graduated with a doctor of veterinary medicine degree from an institution of higher education located in the State;

� have an outstanding balance on a qualifying student loan and not be in default on any qualifying student loan;

� have been employed as a veterinarian practicing full-time in the State for one year following graduation from a doctor of veterinary medicine degree program at an institution of higher education located in the State;

� agree to be employed as a veterinarian practicing full-time in the State during the period of loan redemption; and

� continue to be employed as a veterinarian practicing full-time in the State for an equal period of time in which the participant received loan redemption after the completion of the loan redemption period.

The second program established by the bill, the New Jersey Veterinarians Loan Redemption Program would provide for an annual loan redemption amount not to exceed $5,000 of a program participant's eligible qualifying loan expenses for each consecutive year of employment as a veterinarian practicing full-time in the State, up to a maximum of five consecutive years. The maximum total amount of loan redemption under this program would be $25,000. To be eligible for this loan redemption program, a participant is required to:

� be a resident of the State and maintain residency during program participation;

� meet any of the following conditions:

o have graduated high school in New Jersey or was a resident of New Jersey upon graduation from high school;

o have graduated from an undergraduate degree program at an institution of higher education in New Jersey; or

o have graduated high school in New Jersey or was a resident of New Jersey upon graduation from high school and maintained residency in the State during the applicant's undergraduate course of study and during the time in which the applicant attended an institution of higher education located outside of the State for a doctor of veterinary medicine program;

� have graduated with a doctor of veterinary medicine degree from an institution of higher education located outside of the State;

� have an outstanding balance on a qualifying student loan and not be in default on any qualifying student loan;

� be currently employed as a veterinarian practicing full-time in the State;

� agree to be employed as a veterinarian practicing full-time in the State during the period of loan redemption;

� continue to be employed as a veterinarian practicing full-time in the State for an equal period of time in which the participant received loan redemption, after the completion of the loan redemption period.

The New Jersey's Own Veterinarians Loan Redemption Program would first accept applicants beginning January 1 of the year following the year in which the first class of students graduate from a doctor of veterinary medicine program at an institution of higher education in the State. However, these students would be provided the opportunity to begin applying for the program beginning February 1 of the year in which they graduate from the doctor of veterinary medicine program and the Higher Education Student Assistance Authority may accept and approve applications on a rolling basis prior to January 1 of the year following the year in which the first class of students graduates from a doctor of veterinary medicine program at an institution of higher education in the State. The program would conclude June 30 of the sixth year following the year in which the first class of students graduate from a doctor of veterinary medicine program at an institution of higher education in the State.

The New Jersey Veterinarians Loan Redemption Program would first accept applicants beginning January 1 of the first year following the date of enactment. The program would cease to accept applicants upon the graduation of the first class of students from a doctor of veterinary medicine program at an institution of higher education in the State. The program would conclude five years following the acceptance of the last cohort of applicants.

For both programs established under the bill, the Governor, in consultation with the Office of the Secretary of Higher Education and the New State Board of Veterinary Medical Examiners, may continue to renew the loan redemption programs until such time as it is deemed that there is a sufficient supply of veterinarians practicing in the State.