LRB-4300/1
GMM:kjf:rs
2005 - 2006 LEGISLATURE
February 2, 2006 - Introduced by Representatives Mursau, Rhoades, Ainsworth,
Albers, Boyle, Davis, Freese, Gielow, Gronemus, Gunderson, Hahn, Hines,
Hundertmark, Jeskewitz, Krawczyk, F. Lasee, LeMahieu, Loeffelholz,
McCormick, Meyer, Molepske, Montgomery, Musser, Nischke, Ott, Owens,
Petrowski, Pettis, Wood and Van Roy, cosponsored by Senators Roessler,
Erpenbach, Hansen and
Wirch. Referred to Committee on Public Health.
AB976,1,3
1An Act to create 20.235 (1) (cp) and 39.397 of the statutes;
relating to: a loan
2program for medical students who agree to practice medicine in rural areas,
3requiring the exercise of rule-making authority, and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, the Higher Educational Aids Board (HEAB) administers
various student loan programs under which certain percentages of the loans are
forgiven for each year that a loan recipient is employed in certain professions after
the completion of the recipient's program of study. Those programs include a
program under which loans are forgiven after the recipient has been employed in this
state as a nurse, a program under which loans are forgiven after the recipient has
been employed as a teacher in the Milwaukee Public Schools, a program under which
loans are forgiven after the recipient has been employed in this state as a teacher of
visually impaired pupils or as an orientation and mobility instructor, and a program
under which loans are forgiven after the recipient has been employed as a teacher
in a school district in this state in which minority students constitute at least 29
percent of the membership of the school district.
This bill creates a loan program, to be administered by HEAB, to defray the cost
of tuition, fees, and expenses for residents of this state who are enrolled in a program
at the University of Wisconsin-Madison Medical School or at the Medical College of
Wisconsin, Inc., leading to the degree of doctor of medicine and who agree to practice
medicine for not less than two years in an area of the state outside a metropolitan
statistical area, as defined by the federal Executive Office of Management and
Budget (rural area). The maximum amount of a loan that a person may receive
during any fiscal year is $3,000 and the maximum amount that a person may receive
under the program is $15,000. After a loan recipient has completed his or her
program of study, HEAB must forgive 25 percent of the loan's principal and interest
after the first full year and 25 percent of the loan's principal and interest after the
second full year that the recipient has been employed full time as a doctor of medicine
in a rural area.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB976, s. 1
1Section
1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated:
-
See PDF for table 
AB976, s. 2
3Section
2. 20.235 (1) (cp) of the statutes is created to read:
AB976,2,54
20.235
(1) (cp)
Loan program for rural physicians. The amounts in the
5schedule for the loan program for rural physicians under s. 39.397.
AB976, s. 3
6Section
3. 39.397 of the statutes is created to read:
AB976,3,2
739.397 Rural physicians loan program. (1) The board shall establish a
8loan program to defray the cost of tuition, fees, and expenses for residents of this
9state who are enrolled in a program at the University of Wisconsin-Madison Medical
10School or at the Medical College of Wisconsin, Inc., leading to the degree of doctor of
11medicine and who agree to practice medicine for not less than 2 years in an area of
1the state outside a metropolitan statistical area, as specified under
42 CFR 412.62 2(f) (1) (ii) (A).
AB976,3,8
3(2) The board shall make loans under sub. (1) from the appropriation account
4under s. 20.235 (1) (cp). The maximum amount of a loan that a person may receive
5during any fiscal year is $3,000. The maximum amount that a person may receive
6under this section is $15,000. The terms of a loan shall provide that the loan recipient
7is not required to repay the loan while the recipient is enrolled in a program described
8in sub. (1).
AB976,3,14
9(3) After the recipient of a loan under sub. (1) has completed the program
10described in sub. (1), the board shall forgive 25 percent of the loan's principal and
11interest after the first full year and 25 percent of the loan's principal and interest
12after the 2nd full year that the recipient has been employed full time as a doctor of
13medicine in an area described in sub. (1). The board may forgive loans on a prorated
14basis for persons who are employed less than full time.
AB976,3,16
15(4) The board shall deposit in the general fund as general purpose revenue —
16earned all repayments of loans made under sub. (1) and the interest on those loans.
AB976,3,17
17(5) The board shall promulgate rules to implement and administer this section.
