S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   420

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced by M. of A. GUNTHER, LIFTON -- Multi-Sponsored by -- M. of A.
  HEASTIE,  McKEVITT,  PHEFFER, SWEENEY -- read once and referred to the
  Committee on Higher Education

AN ACT to amend the education law, in relation to including dentists  in
  the regents physician loan forgiveness program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 9 of section  605  of  the  education  law,  as
amended  by  chapter  523  of  the  laws  of 1992, is amended to read as
follows:
  9. Regents physician AND DENTIST  loan  forgiveness  program.  Regents
physician  AND DENTIST loan forgiveness awards shall be awarded annually
to physicians AND DENTISTS who agree to practice medicine  OR  DENTISTRY
in an area of New York state designated by the regents as having a shor-
tage  of  physicians  OR  DENTISTS.  Such awards shall be classified and
allocated in accordance with regents rules.
  a. Eligibility. (1) The applicant must be a resident of New York state
and licensed to practice medicine OR DENTISTRY.
  (2) The applicant must have completed a professional residency program
within the five years immediately preceding the  period  for  which  the
first award would be granted, or be within two years of completion of an
accredited  residency  program in a primary care specialty designated in
short supply by the board  of  regents,  OR  BE  WITHIN  FIVE  YEARS  OF
COMPLETION OF A DENTAL DEGREE PROGRAM.
  (3)  The  applicant must agree to practice medicine OR DENTISTRY in an
area in New York state designated as having a shortage of physicians  OR
DENTISTS.  The  regents,  after  consultation  with the commissioners of
health, correctional services, mental health, and mental retardation and
developmental disabilities, shall designate those regions and facilities

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02083-01-1
              

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of New York state which have a shortage of physicians  OR  DENTISTS  for
the purposes of this section and establish relative rankings thereof.
  b.  Selection. The commissioner, in consultation with the commissioner
of health, shall establish criteria for the selection of participants in
the program. An applicant must satisfy at  least  one  of  the  criteria
established.  A  priority  shall  be  accorded  to  any applicant who is
completing the second year of the service requirement and is  reapplying
for  a  new  award. The criteria shall include but not be limited to the
following:
  (i) reapplication for a new award by a person who  is  completing  the
second year of a service requirement;
  (ii)  receipt  of  specific  training  in  a primary care specialty or
obstetrics, determined by the regents to be in short supply;
  (iii) receipt of specific training or experience in serving a shortage
area;
  (iv) receipt of specific training or experience  matching  a  specific
medical OR DENTAL need existing in a shortage area; and
  (v)  agreement  pursuant  to  [subdivision  (d)]  PARAGRAPH  D of this
[section] SUBDIVISION to practice in an area determined by  the  regents
to  have  a  severe  shortage  of primary care physician OR PRIMARY CARE
DENTIST services.
  c. Notification. (1) The  commissioner  shall  then  forward  approved
applications to the president and shall notify unsuccessful applicants;
  (2) The president shall verify the approved applicants':
  (i) eligibility; and
  (ii) total undergraduate and medical OR DENTAL school student expense;
  (3) The president shall notify applicants of their award entitlement.
  d.  Service requirement. Within such time as the commissioner shall by
regulation provide, a recipient of an award shall have agreed  to  prac-
tice  medicine  OR  DENTISTRY  in a specific area designated as having a
shortage of physicians OR DENTISTS for a period  of  twelve  months  for
each  annual  payment  to  be  received by the recipient. Physicians AND
DENTISTS in training who receive  an  award  shall  not  receive  credit
toward  their  required service for time spent in a training program. In
no case shall the total number of months of  service  required  be  less
than  twenty-four. The president shall, in consultation with the commis-
sioner, develop and secure from each award recipient, a  written  agree-
ment to:
  (i) practice medicine OR DENTISTRY in the designated shortage area;
  (ii)  to  accept  Medicare  [and],  Medicaid,  CHILD HEALTH AND FAMILY
HEALTH PLUS payments; and
  (iii) to provide thirty-five hours per week of direct patient care  in
the  designated  shortage  area being served, or to the designated popu-
lation being served.
If a recipient fails to comply fully with such conditions, the president
shall be entitled to receive from such recipient an amount to be  deter-
mined by the formula:
                              A = 2B (t-s)
                                     -----
                                       t
in  which "A" is the amount the president is entitled to recover; "B" is
the sum of all payments made to the recipient and the interest  on  such
amount which would be payable if at the times such awards were paid they
were  loans  bearing interest at the maximum prevailing rate; "t" is the
total number of months in the recipient's period of obligated  services;
and  "s"  is  the  number  of months of service actually rendered by the

A. 420                              3

recipient. Any amount which the president is entitled to  recover  under
this  paragraph  shall  be paid within the five-year period beginning on
the date that the recipient failed to comply with  this  service  condi-
tion. Nothing in the written agreement shall affect the terms of employ-
ment  of the individual who shall negotiate, separate and apart from the
program, his or her salary and other forms of employment with an agency,
institution or a program in which he or she shall be employed.
  Any obligation to comply with such  provisions  as  outlined  in  this
section  shall be cancelled upon the death of the recipient. The commis-
sioner shall make regulations to provide for the waiver or suspension of
any financial obligation which would involve extreme hardship.
  e. Reporting. A recipient of an award shall report annually to the New
York state higher education services corporation, and the department  of
health  on  forms  prescribed by the president, as to the performance of
the required services, commencing with the calendar year  in  which  the
recipient  begins  to  practice medicine OR DENTISTRY in a shortage area
and continuing until the recipient shall have completed, or it is deter-
mined that he or she shall not be obligated to  complete,  the  required
services. If the recipient shall fail to file any report required [here-
under]  PURSUANT  TO THIS PARAGRAPH within thirty days of written notice
to the recipient, mailed to the address shown on  the  last  application
for  an award or last report filed, whichever is later, the president of
the corporation may impose a fine of up to  one  thousand  dollars.  The
president  shall  have  the  discretion to waive the filing of a report,
excuse a delay in filing or a failure to file  a  report,  or  waive  or
reduce any fine imposed for good cause shown.
  f.  Other  awards. Award recipients shall be eligible to apply for one
additional award.
  S 2. Section 677 of the education law, as added by chapter 31  of  the
laws  of  1985,  subdivision  1 as amended by chapter 439 of the laws of
1988, is amended to read as follows:
  S 677. Regents physician AND  DENTIST  loan  forgiveness  program.  1.
Number  and  certification.  Eighty  regents  physician AND DENTIST loan
forgiveness awards shall be awarded each  year.  Such  awards  shall  be
allocated  as  provided  in  article thirteen of this [chapter] TITLE to
eligible physicians AND DENTISTS as certified to the  president  by  the
commissioner.
  2.  Calculation  of  award  amounts.  Each  award shall consist of two
consecutive  annual  loan  forgiveness  payments.  Each  of  the  annual
payments  shall be for an amount equal to the total of undergraduate and
medical OR DENTAL school student loan expense or  ten  thousand  dollars
whichever  is  less.  The president shall be responsible for calculating
the dollar amount of each award that [eligibile] ELIGIBLE candidates may
receive from this program. For the purposes  of  this  section,  student
loan expense shall mean the cumulative total of the annual student loans
covering  the  cost of attendance at an undergraduate institution and/or
medical OR DENTAL school.  Interest paid or due on student loans that an
applicant has taken out for use in paying for such undergraduate  and/or
medical  OR DENTAL education shall be considered eligible for reimburse-
ment under this program.
  3. Award disbursement. a. Annual  award  disbursements  shall  be  the
responsibility  of  the president and shall occur prior to the beginning
of each of the required terms of service as  specified  in  the  service
contract.  The board of trustees of the higher education services corpo-
ration shall adopt rules and regulations regarding criteria  for  deter-
mining  successful  completion  of  the  service contract and any appeal

A. 420                              4

process that may be required to implement this paragraph upon  recommen-
dation of the president in consultation with the commissioner.
  b. The disbursement of the second annual award shall be dependent upon
successful  completion  of  the  first  year  requirement of the service
contract as defined by the president, as  well  as  other  criteria  set
forth in this section.
  S  3.  This act shall take effect on the first of July next succeeding
the date on which it shall have become a law, provided that  the  amend-
ments  to  subdivision  9  of  section 605 of the education law, made by
section one of this act, and to section 677 of the education  law,  made
by  section  two  of  this  act shall not affect the termination of such
provisions of the education law pursuant to section 17 of chapter 31  of
the laws of 1985, as amended, and shall terminate therewith.