Bill Text: OR HB2397 | 2011 | Regular Session | Enrolled
Bill Title: Relating to a loan forgiveness program for primary care health practitioners; appropriating money; and declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2011-08-02 - Chapter 651, (2011 Laws): Effective date August 2, 2011. [HB2397 Detail]
Download: Oregon-2011-HB2397-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 2397
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Health Care
for Oregon Academy of Family Physicians)
CHAPTER ................
AN ACT
Relating to a loan forgiveness program for primary care health
practitioners; appropriating money; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) As used in this section:
(a) 'Participant' means a person who has been selected by the
Office of Rural Health to receive a loan under subsection (4) of
this section.
(b) 'Primary care practitioner' means a:
(A) Physician licensed under ORS chapter 677;
(B) Physician assistant licensed under ORS 677.505 to 677.525;
or
(C) Nurse practitioner licensed under ORS 678.375.
(c) 'Prospective primary care practitioner' means a person who
is enrolled in a medical education program that meets the
educational requirements for licensure as a physician, physician
assistant or nurse practitioner.
(d) 'Service agreement' means the agreement executed by a
prospective primary care practitioner under subsection (3) of
this section.
(2) There is created the Primary Health Care Loan Forgiveness
Program, to be administered by the office pursuant to rules
adopted by the office.
(3) A prospective primary care practitioner who wishes to
participate in the program shall submit an application to the
office in accordance with rules adopted by the office. To be
eligible to be a participant in the program, a prospective
primary care practitioner must:
(a) Have completed the first year of the prospective primary
care practitioner's medical education;
(b) Be enrolled in a medical education program in Oregon that
emphasizes training rural health care practitioners and is
approved by the office;
(c) Execute a service agreement stating that, immediately upon
the prospective primary care practitioner's completion of
residency or training as established by the office by rule, the
prospective primary care practitioner will practice as a primary
care practitioner in a rural setting in this state approved by
the office for at least as many years as the number of years for
which the practitioner received loans from the Primary Health
Care Loan Forgiveness Program; and
Enrolled House Bill 2397 (HB 2397-A) Page 1
(d) Meet other requirements established by the office by rule.
(4) The office may select participants from among the
prospective primary care practitioners who submit applications as
provided in subsection (3) of this section. The office shall give
preference to a prospective primary care practitioner who agrees
to practice in a community that agrees to contribute funds to the
Primary Health Care Loan Forgiveness Program Fund established in
section 2 of this 2011 Act.
(5) The office shall provide an annual loan of up to $35,000 to
each participant to cover expenses related to the participant's
medical education, on terms established by the office by rule.
The loan must be evidenced by a written obligation but no
additional security may be required.
(6) Repayment of loans provided under subsection (5) of this
section is deferred while a participant is in compliance with the
service agreement.
(7) At the end of each full year that a participant complies
with the service agreement, the office shall forgive one annual
loan provided to the participant under subsection (5) of this
section.
(8)(a) A person receiving a loan under subsection (5) of this
section who fails to complete the residency or training as
required by the office by rule shall repay the amount received to
the Primary Health Care Loan Forgiveness Program plus 10 percent
interest on the unpaid balance, accrued from the date the loan
was granted.
(b) A person receiving a loan under subsection (5) of this
section who completes the residency or training required by the
office by rule but fails to fulfill the obligations required by
the service agreement shall repay the amount received to the
Primary Health Care Loan Forgiveness Program plus 10 percent
interest on the unpaid balance, accrued from the date the loan
was granted. Additionally, a penalty fee equal to 25 percent of
the amount received shall be assessed against the person. No
interest accrues on the penalty. The office shall establish rules
to allow waiver of all or part of the penalty owed to the program
due to circumstances that prevent the participant from fulfilling
the service obligation.
(9) Payments on loans provided under subsection (5) of this
section shall be deposited in the Primary Health Care Loan
Forgiveness Program Fund established in section 2 of this 2011
Act.
(10) If a participant defaults on a loan provided under section
(5) of this section:
(a) Any amounts due may be collected by the Collections Unit in
the Department of Revenue under ORS 293.250; or
(b) The Oregon Health and Science University may contract with
a collections agency to collect any amounts due.
(11) Any amounts collected under subsection (10) of this
section shall be deposited in the Primary Health Care Loan
Forgiveness Program Fund established in section 2 of this 2011
Act.
(12) The office may accept funds from any public or private
source for the purposes of carrying out the provisions of this
section. + }
SECTION 2. { + The Primary Health Care Loan Forgiveness
Program Fund is established in the State Treasury, separate and
distinct from the General Fund. Interest earned by the Primary
Health Care Loan Forgiveness Program Fund shall be credited to
the fund. Moneys in the fund are continuously appropriated to
Enrolled House Bill 2397 (HB 2397-A) Page 2
the Oregon Department of Administrative Services for distribution
to the Office of Rural Health for the purposes of carrying out
the provisions of section 1 of this 2011 Act. + }
SECTION 3. { + In addition to and not in lieu of any other
appropriation, there is appropriated to the Oregon Department of
Administrative Services, for the biennium beginning July 1, 2011,
out of the General Fund, the amount of $525,000, for distribution
to the Office of Rural Health for purposes of the Primary Health
Care Loan Forgiveness Program created in section 1 of this 2011
Act. + }
SECTION 4. { + (1) Section 1 of this 2011 Act becomes
operative on January 1, 2012.
(2) The Office of Rural Health may take any action before the
operative date specified in subsection (1) of this section that
is necessary to enable the office to exercise, on and after the
operative date specified in subsection (1) of this section, all
the duties, functions and powers conferred on the office by
section 1 of this 2011 Act. + }
SECTION 5. { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
----------
Passed by House June 16, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate June 23, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2397 (HB 2397-A) Page 3
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2397 (HB 2397-A) Page 4
