LRBs0576/1
GMM:jld&kjf:jf
2005 - 2006 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2005 ASSEMBLY BILL 976
March 2, 2006 - Offered by Representatives Mursau and Wasserman.
AB976-ASA1,1,4
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 health
3professional shortage areas, requiring the exercise of rule-making authority,
4and 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 substitute amendment 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 School of Medicine
and Public Health 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 six years
in a health professional shortage area, which is defined under current law as an area
designated by the federal Department of Health and Human Services as having a
shortage of medical care professionals. The maximum amount of a loan that a person
may receive during any fiscal year is $10,000 and the maximum amount that a
person may receive under the program is $50,000. After a loan recipient has
completed his or her program of study, HEAB must forgive 10 percent of the loan's
principal and interest after the first full year, 10 percent of the loan's principal and
interest after the second full year, 10 percent of the loan's principal and interest after
the third full year, 10 percent of the loan's principal and interest after the fourth full
year, 20 percent of the loan's principal and interest after the fifth full year, and 20
percent of the loan's principal and interest after the sixth full year that the recipient
has been employed full time as a doctor of medicine in a health professional shortage
area.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB976-ASA1, 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 ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
AB976-ASA1, s. 2
3Section
2. 20.235 (1) (cp) of the statutes is created to read:
AB976-ASA1,2,54
20.235
(1) (cp)
Loan program for physicians in shortage areas. The amounts
5in the schedule for the loan program for physicians in shortage areas under s. 39.397.
AB976-ASA1,3,5
739.397 Loan program for physicians in shortage areas. (1) The board
8shall establish a loan program to defray the cost of tuition, fees, and expenses for
1residents of this state who are enrolled in a program at the University of
2Wisconsin-Madison School of Medicine and Public Health or at the Medical College
3of Wisconsin, Inc., leading to the degree of doctor of medicine and who agree to
4practice medicine for not less than 6 years in a health professional shortage area, as
5defined in s. 560.183 (1) (aj).
AB976-ASA1,3,11
6(2) The board shall make loans under sub. (1) from the appropriation account
7under s. 20.235 (1) (cp). The maximum amount of a loan that a person may receive
8during any fiscal year is $10,000. The maximum amount that a person may receive
9under this section is $50,000. The terms of a loan shall provide that the loan recipient
10is not required to repay the loan while the recipient is enrolled in a program described
11in sub. (1).
AB976-ASA1,3,20
12(3) After the recipient of a loan under sub. (1) has completed the program
13described in sub. (1), the board shall forgive 10 percent of the loan's principal and
14interest after the first full year, 10 percent of the loan's principal and interest after
15the 2nd full year, 10 percent of the loan's principal and interest after the 3rd full year,
1610 percent of the loan's principal and interest after the 4th full year, 20 percent of the
17loan's principal and interest after the 5th full year, and 20 percent of the loan's
18principal and interest after the 6th full year that the recipient has been employed full
19time as a doctor of medicine in an area described in sub. (1). The board may forgive
20loans on a prorated basis for persons who are employed less than full time.
AB976-ASA1,3,22
21(4) The board shall deposit in the general fund as general purpose revenue —
22earned all repayments of loans made under sub. (1) and the interest on those loans.
AB976-ASA1,3,23
23(5) The board shall promulgate rules to implement and administer this section.