S. 4708 2
IN ASSOCIATION WITH THE EMPIRE STATE DEVELOPMENT CORPORATION. THE
DEPARTMENT IS ALSO DIRECTED TO CONSULT WITH THE FORT DRUM REGIONAL
HEALTH PLANNING ORGANIZATION AND THE IROQUOIS HEALTHCARE ASSOCIATION AS
IT DEEMS APPROPRIATE. FUNDS SHALL BE TRANSFERRED BY THE COMMISSIONER OF
TAXATION AND FINANCE TO THE DEPARTMENT FOR USE AS DESCRIBED HEREIN.
§ 2999-KK. ADMINISTRATION OF FUNDS. MONIES IN THE FUND SHALL BE:
1. HELD BY THE DEPARTMENT PURSUANT TO THIS SECTION AS CUSTODIAN PURSU-
ANT TO AN AGREEMENT WITH THE COMMISSIONER OF TAXATION AND FINANCE, AND
THE EMPIRE STATE DEVELOPMENT CORPORATION, UNTIL TRANSFERRED PURSUANT TO
THIS SECTION; AND
2. INVESTED BY THE DEPARTMENT IN ACCORDANCE WITH THE INVESTMENT GUIDE-
LINES OF THE COMPTROLLER DURING SAID CUSTODIAL PERIOD. ALL INVESTMENT
INCOME SHALL BE CREDITED TO, AND SHALL BE DEPOSITED IN, THE FUND.
§ 2999-LL. ADMINISTRATION AGREEMENT. THE COMMISSIONER OF TAXATION AND
FINANCE, THE EMPIRE STATE DEVELOPMENT CORPORATION, AND THE DEPARTMENT
SHALL ENTER INTO AN AGREEMENT, SUBJECT TO THE APPROVAL OF THE DIRECTOR
OF THE BUDGET, FOR THE PURPOSE OF ADMINISTERING THE FUND. A COPY OF SUCH
AGREEMENT, AND ANY AMENDMENTS THERETO, SHALL BE PROVIDED TO THE CHAIR OF
THE SENATE FINANCE COMMITTEE, THE DIRECTOR OF THE DIVISION OF BUDGET,
AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. THE AGREEMENT
SHALL SPECIFY THAT THE DEPARTMENT SHALL ADMINISTER THE FUND IN A MANNER
THAT WILL BENEFIT THE PUBLIC BY ENCOURAGING THE AVAILABILITY OF PROFES-
SIONAL SERVICE PROVIDERS, IN COMPLIANCE WITH ALL APPLICABLE LAWS, RULES,
REGULATIONS AND OTHER REQUIREMENTS.
§ 2999-MM. RESPONSIBILITIES UPON EFFECTIVE DATE OF AGREEMENT. UPON THE
EFFECTIVE DATE OF THE AGREEMENT, CUSTODY OF, AND RESPONSIBILITY FOR, THE
FUND SHALL BE TAKEN UP BY THE DEPARTMENT, SUBJECT TO THE REQUIREMENTS OF
ITS AGREEMENT WITH THE COMMISSIONER OF TAXATION AND FINANCE AND THE
EMPIRE STATE DEVELOPMENT CORPORATION. SUCH AGREEMENT SHALL INCLUDE, BUT
NOT BE LIMITED TO, THE FOLLOWING PROVISIONS:
1. THE DEPARTMENT SHALL BE RESPONSIBLE FOR THE RECEIPT, MANAGEMENT AND
EXPENDITURE OF MONIES HELD IN THE FUND;
2. THE DEPARTMENT SHALL MAINTAIN BOOKS AND RECORDS PERTAINING TO ALL
MONIES RECEIVED AND DISBURSED PURSUANT TO THIS SECTION AND THE AGREE-
MENT;
3. MONIES IN SUCH FUND SHALL BE UTILIZED FOR THE PURPOSE OF PROVIDING
STUDENT LOAN REPAYMENT FUNDING TO QUALIFYING PROFESSIONALS;
4. PARTICIPATING PROFESSIONALS SHALL BE CHOSEN BY THE DEPARTMENT
THROUGH AN APPLICATION PROCESS APPROVED BY THE DEPARTMENT, THE EMPIRE
STATE DEVELOPMENT CORPORATION, AND THE COMPTROLLER;
5. THE DEPARTMENT SHALL REPORT QUARTERLY ON TRANSACTIONS PERTAINING TO
THE FUND IN A FORM AND MANNER SPECIFIED BY THE COMPTROLLER IN CONSULTA-
TION WITH THE COMMISSIONER OF TAXATION AND FINANCE, AND THE EMPIRE STATE
DEVELOPMENT CORPORATION, INCLUDING BUT NOT LIMITED TO: RECEIPTS OR
DEPOSITS TO THE FUND, DISBURSEMENTS, LOANS OR CREDIT ENHANCEMENT MADE
FROM THE FUND, INVESTMENT INCOME, AND THE BALANCE ON HAND AS OF THE END
OF THE MONTH FOR EACH SUCH QUARTER;
6. THE DEPARTMENT SHALL BE REQUIRED TO INVEST MONIES ON DEPOSIT IN THE
FUND IN ACCORDANCE WITH INVESTMENT GUIDELINES MEETING THE REQUIREMENTS
OF THE COMPTROLLER, AND ALL INVESTMENT INCOME SHALL BE CREDITED TO THE
FUND, AND SPENT THEREFROM ONLY FOR THE PURPOSES SET FORTH IN THIS
SECTION;
7. FUND MONIES SHALL BE HELD IN TRUST AND USED FOR THE BENEFIT OF
PARTICIPATING PROFESSIONALS;
S. 4708 3
8. AFTER TWO YEARS, THE DEPARTMENT SHALL SUBMIT A REPORT TO THE GOVER-
NOR AND LEGISLATURE DETAILING THE PERFORMANCE PARTICIPATION AND IMPACT
OF THE PILOT PROGRAM; AND
9. ANY OTHER TERM OR CONDITION AS DETERMINED BY THE DEPARTMENT, IN
CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE AND THE
EMPIRE STATE DEVELOPMENT CORPORATION.
§ 2999-NN. DOCUMENTATION. PAYMENTS FROM THE FUND SHALL BE MADE PURSU-
ANT TO A WRITTEN AGREEMENT BETWEEN THE DEPARTMENT AND THE PARTICIPATING
PROFESSIONAL, SPECIFYING THE TERMS OF THE PAYMENTS. THE AGREEMENT SHALL
BE IN SUCH FORM AND CONTENT AS SHALL BE ACCEPTABLE TO THE COMPTROLLER
AND DEPARTMENT, AND MAY INCLUDE SUCH FURTHER WRITTEN DOCUMENTATION
AND/OR AGREEMENTS AS SHALL BE REQUIRED IN THE JUDGMENT OF THE COMP-
TROLLER AND DEPARTMENT. TERMS MAY INCLUDE RESCISSION OF PAYMENTS IF A
PARTICIPATING PROFESSIONAL DOES NOT COMPLY WITH THIS SECTION OR THE
TERMS OF THE PARTICIPATING PROFESSIONAL'S AGREEMENT WITH THE DEPARTMENT.
§ 2999-OO. COMMITMENT. PROFESSIONALS SHALL BE ELIGIBLE TO PARTICIPATE
IN THIS PROGRAM PROVIDED THAT IN ADDITION TO ANY OTHER REQUIREMENTS SET
FORTH IN THIS ARTICLE THEY:
1. MAKE A TWO YEAR COMMITMENT TO PRACTICE IN A TRACT OR COUNTY DEFINED
BY THE HEALTH RESOURCES AND SERVICES ADMINISTRATION AS BEING "RURAL" OR
ELIGIBLE FOR A RURAL HEALTH GRANT; AND
2. SUCH TRACT IS SITUATED, IN WHOLE OR IN PART, IN THE COUNTIES OF
MADISON, CLINTON, ESSEX, FRANKLIN, HAMILTON, HERKIMER, JEFFERSON, LEWIS,
OSWEGO, OR ST. LAWRENCE.
§ 2999-PP. PARTICIPATING PROFESSIONALS. THE FOLLOWING PROFESSIONALS
SHALL BE ELIGIBLE TO RECEIVE THE BENEFITS OF THIS FUND:
1. HOME CARE SERVICE WORKERS, CLINICAL LABORATORY PRACTITIONERS, CLIN-
ICAL LABORATORY TECHNOLOGISTS, CLINICAL LABORATORY CYTOTECHNOLOGISTS,
CLINICAL LABORATORY TECHNICIANS, OR HISTOLOGICAL TECHNICIANS;
2. LICENSED PSYCHOLOGISTS, LICENSED MASTER SOCIAL WORKERS, LICENSED
CLINICAL SOCIAL WORKERS, LICENSED MENTAL HEALTH COUNSELORS, LICENSED
MARRIAGE AND FAMILY THERAPISTS, LICENSED PSYCHOANALYSTS AND LICENSED
CREATIVE ARTS THERAPISTS;
3. MIDLEVEL PRACTITIONERS SUCH AS A PHYSICAL THERAPIST, PHYSIOTHERA-
PIST, MECHANOTHERAPIST, DENTIST, DENTAL HYGIENIST, DENTAL ASSISTANT,
NURSE PRACTITIONER, PSYCHIATRIC NURSE PRACTITIONER, PHYSICIAN ASSISTANT,
OR PSYCHIATRIST WHO IS A DIPLOMATE OF THE AMERICAN BOARD OF PSYCHIATRY
AND NEUROLOGY OR IS ELIGIBLE TO BE CERTIFIED BY THAT BOARD OR IS CERTI-
FIED BY THE AMERICAN OSTEOPATHIC BOARD OF NEUROLOGY AND PSYCHIATRY OR IS
ELIGIBLE TO BE CERTIFIED BY THAT BOARD;
4. SPEECH-LANGUAGE PATHOLOGISTS OR AUDIOLOGISTS, OCCUPATIONAL THERA-
PISTS, OR RESPIRATORY THERAPISTS;
5. LICENSED PHARMACISTS;
6. NURSES IN NURSING HOMES, SUCH AS REGISTERED PROFESSIONAL NURSES,
LICENSED PRACTICAL NURSES, OR CLINICAL NURSE SPECIALISTS, PROVIDED THAT
THEIR SERVICE COMMITMENT, IN ADDITION TO ANY OTHER CRITERIA LISTED IN
THIS ARTICLE, WILL ALSO BE IN A LICENSED NURSING HOME, INTERMEDIATE CARE
FACILITY FOR THE DEVELOPMENTALLY DISABLED, OR HOSPITAL IF IT OWNS OR
OPERATES A LICENSED NURSING HOME, AND THE PROFESSIONAL WILL SPEND AT
LEAST HALF OF THEIR WORKING HOURS IN THE NURSING HOME; AND
7. OPTOMETRISTS, AS DEFINED IN SECTION SEVENTY-ONE HUNDRED ONE OF THE
EDUCATION LAW.
§ 2999-QQ. COMPENSATION. PARTICIPATING PROFESSIONALS SHALL BE COMPEN-
SATED IN THE FORM OF PAYMENTS AGAINST THEIR STUDENT LOANS MADE IN THE
FOLLOWING AMOUNTS:
S. 4708 4
1. FIFTY PERCENT OF TOTAL QUALIFYING DEBT ANNUALLY, UP TO A MAXIMUM
ANNUAL AMOUNT OF FIVE THOUSAND DOLLARS FOR PROFESSIONALS LISTED IN
SUBDIVISION ONE OF SECTION TWENTY-NINE HUNDRED NINETY-NINE-PP OF THIS
ARTICLE;
2. FIFTY PERCENT OF TOTAL QUALIFYING DEBT ANNUALLY, UP TO A MAXIMUM
ANNUAL AMOUNT OF TEN THOUSAND DOLLARS FOR PROFESSIONALS LISTED IN SUBDI-
VISION TWO OF SECTION TWENTY-NINE HUNDRED NINETY-NINE-PP OF THIS ARTI-
CLE;
3. FIFTY PERCENT OF TOTAL QUALIFYING DEBT ANNUALLY, UP TO A MAXIMUM
ANNUAL AMOUNT OF TWENTY THOUSAND DOLLARS FOR PROFESSIONALS LISTED IN
SUBDIVISION THREE OF SECTION TWENTY-NINE HUNDRED NINETY-NINE-PP OF THIS
ARTICLE;
4. FIFTY PERCENT OF TOTAL QUALIFYING DEBT ANNUALLY, UP TO A MAXIMUM
ANNUAL AMOUNT OF TWELVE THOUSAND DOLLARS FOR PROFESSIONALS LISTED IN
SUBDIVISION FOUR OF SECTION TWENTY-NINE HUNDRED NINETY-NINE-PP OF THIS
ARTICLE;
5. FIFTY PERCENT OF TOTAL QUALIFYING DEBT ANNUALLY, UP TO A MAXIMUM
ANNUAL AMOUNT OF FIFTEEN THOUSAND DOLLARS FOR PROFESSIONALS LISTED IN
SUBDIVISION FIVE OF SECTION TWENTY-NINE HUNDRED NINETY-NINE-PP OF THIS
ARTICLE;
6. FIFTY PERCENT OF TOTAL QUALIFYING DEBT ANNUALLY, UP TO A MAXIMUM
ANNUAL AMOUNT OF FIVE THOUSAND DOLLARS FOR PROFESSIONALS LISTED IN
SUBDIVISION SIX OF SECTION TWENTY-NINE HUNDRED NINETY-NINE-PP OF THIS
ARTICLE; AND
7. FIFTY PERCENT OF TOTAL QUALIFYING DEBT ANNUALLY, UP TO A MAXIMUM
ANNUAL AMOUNT OF TWELVE THOUSAND DOLLARS FOR PROFESSIONALS LISTED IN
SUBDIVISION SEVEN OF SECTION TWENTY-NINE HUNDRED NINETY-NINE-PP OF THIS
ARTICLE.
§ 2999-RR. CONTINUED QUALIFICATION. PROVIDED THAT A PROFESSIONAL
CONTINUES TO QUALIFY FOR THIS PROGRAM AFTER TWO YEARS AND SUCH PILOT
PROGRAM IS STILL IN OPERATION, THEN LOAN PAYMENT AMOUNTS WILL BE THE
BALANCE OF ANY QUALIFYING DEBT UP TO THE MAXIMUM AMOUNTS LISTED IN
SECTION TWO THOUSAND NINE HUNDRED NINETY-NINE-QQ OF THIS ARTICLE.
§ 2999-SS. CONDITIONS BARRING PARTICIPATION. PARTICIPATING PROFES-
SIONALS SHALL NOT:
1. HAVE ANY OUTSTANDING SERVICE OBLIGATIONS TO THE FEDERAL GOVERNMENT,
STATE, OR OTHER ENTITY; OR
2. HAVE ANY JUDGMENT LIENS ARISING FROM FEDERAL OR STATE DEBT, AND
MUST NOT BE DELINQUENT IN CHILD SUPPORT PAYMENTS.
§ 2999-TT. MINIMUM QUALIFICATIONS FOR PARTICIPATION. PARTICIPATING
PROFESSIONALS MUST POSSESS A FULLY-EXECUTED EMPLOYMENT CONTRACT, OR MUST
BE ABLE TO SUBMIT SUFFICIENT EVIDENCE OF INTENT TO ESTABLISH A PRIVATE
PRACTICE AND SUBSEQUENTLY DO SO, AND MUST POSSESS ALL LICENSES REQUIRED
TO PRACTICE THEIR CHOSEN PROFESSION IN THE STATE OF NEW YORK. PARTIC-
IPATING PROFESSIONALS MUST ALSO BE A U.S. CITIZEN OR PERMANENT RESIDENT,
AND BECOME A LEGAL RESIDENT OF NEW YORK STATE WITHIN NINETY DAYS OF
BEGINNING EMPLOYMENT.
§ 2999-UU. APPLICATION CRITERIA. THE ENTITIES INVOLVED IN THIS PROGRAM
MAY ESTABLISH ADDITIONAL APPLICATION CRITERIA AT THEIR DISCRETION,
PROVIDED THAT SUCH CRITERIA DOES NOT NARROW THE AVAILABILITY OF FUNDS OR
CONFLICT WITH THE INTENT OF THIS ARTICLE.
§ 2999-VV. HEALTHCARE PROVIDER SCORING AND COHORT SIZE. REGARDLESS OF
FUNDING LEVELS, NO MORE THAN THIRTY-TWO PARTICIPATING PROFESSIONALS MAY
ENTER THE PROGRAM IN ANY FISCAL YEAR. APPLICATIONS SHALL BE COLLECTED
THROUGHOUT THE YEAR, WITH A NEW COHORT OF NO MORE THAN EIGHT PARTICIPAT-
S. 4708 5
ING PROFESSIONALS APPROVED EACH QUARTER. EACH APPLICATION RECEIVED SHALL
RECEIVE A SCORE WHICH WILL BE CALCULATED AS DESCRIBED HEREIN:
1. THE MAXIMUM SCORE AN APPLICANT MAY RECEIVE IS FIFTY. TWO INDEPEND-
ENT REVIEWERS, BLIND TO EACH OTHER'S EVALUATION, WILL SCORE EACH APPLI-
CANT. THE AVERAGE OF THE SCORES GIVEN BY EACH REVIEWER WILL BE THE
APPLICANT'S FINAL SCORE. IN THE EVENT ANY TWO APPLICANTS FOR THE SAME
COHORT RECEIVE THE SAME SCORE, EACH OF THEIR APPLICATIONS WILL BE
REVIEWED A THIRD TIME AND A NEW AVERAGE SCORE COMPUTED FROM ALL THREE
SCORES RECEIVED;
2. SCORES WILL BE CALCULATED BY TAKING THE DISCIPLINE SPECIFIC HEALTH
PROFESSIONAL SHORTAGE AREAS SCORE FOR THE APPLICANT'S PRACTICE LOCATION,
AND ADDING A MAXIMUM OF TEN POINTS BASED ON THE DIVERSITY OF MEDICAL
CASES OR ISSUES TREATED AT THE PRACTICE LOCATION, AND ADDING A MAXIMUM
OF FIFTEEN POINTS BASED ON THE DIVERSITY OF THE PATIENT POPULATION IN
THE TRACT OR COUNTY WHERE THE APPLICANT INTENDS TO PRACTICE; AND
3. IF A HEALTH PROFESSIONAL SHORTAGE AREAS SCORE IS NOT AVAILABLE FOR
THE APPLICANT'S INTENDED PRACTICE LOCATION THEN THE DEPARTMENT SHALL
ATTEMPT TO ESTIMATE ONE BASED ON THE SAME DISCIPLINE SPECIFIC CRITERIA
USED BY THE HEALTH RESOURCES AND SERVICES ADMINISTRATION TO GENERATE A
HEALTH PROFESSIONAL SHORTAGE AREAS SCORE.
§ 2999-WW. ANNOUNCEMENT OF RESULTS. ALL APPLICANTS GRANTED ADMISSION
TO THE PROGRAM WILL BE NOTIFIED BY EMAIL AND UNITED STATES MAIL WITHIN
TWENTY-ONE BUSINESS DAYS FOLLOWING THE CONCLUSION OF THE QUARTER DURING
WHICH THEIR APPLICATION WAS RECEIVED. FOLLOWING THE ANNOUNCEMENT OF
AWARDS, APPLICANTS MAY REQUEST A DEBRIEFING FROM THE DEPARTMENT NO LATER
THAN TEN CALENDAR DAYS FROM THE DATE OF THE ANNOUNCEMENT. THIS DEBRIEF-
ING WILL BE LIMITED TO THE POSITIVE AND NEGATIVE ASPECTS OF THE SPECIFIC
APPLICANT'S APPLICATION. IN THE EVENT UNSUCCESSFUL APPLICANTS WISH TO
PROTEST THEIR RESULTS THEY MUST FOLLOW THE PROTEST PROCEDURES ESTAB-
LISHED BY THE OFFICE OF THE STATE COMPTROLLER IN EFFECT AT THE TIME
THEIR PROTEST IS ENTERED.
§ 2999-XX. PAYMENTS AND DEFAULT. TOTAL ANNUAL PAYMENTS SHALL BE
DISBURSED IN EQUAL AMOUNTS ON A MONTHLY BASIS.
1. IN THE EVENT OF DEFAULT BY A PARTICIPATING PROFESSIONAL, WITHIN ONE
YEAR OF DEFAULTING THE PARTICIPATING PROFESSIONAL SHALL REPAY THE STATE
OF NEW YORK THE GREATER OF EITHER THIRTY-ONE THOUSAND DOLLARS, OR THE
VALUE OF THE PAST SEVEN MONTHS OF LOAN PAYMENTS MADE BY THE STATE ON
BEHALF OF THE PARTICIPATING PROFESSIONAL. THE OUTSTANDING BALANCE AFTER
ONE YEAR SHALL ACCRUE INTEREST AT A RATE EQUAL TO THAT OWED ON UNDERPAY-
MENTS OF NEW YORK STATE INCOME TAX. UNCOLLECTABLE AMOUNTS WILL BE
REFERRED TO THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE FOR POSSIBLE
LEGAL ACTION.
2. WHERE DEFAULT RESULTS FROM AN ACTION MADE BY THE DEPARTMENT THE
PARTICIPATING PROFESSIONAL WILL NOT BE PENALIZED.
§ 2. This act shall take effect on the ninetieth day after it shall
have become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.
