SB494: Bill Text

LRB-3871/1

GMM:jld:rs

2011 - 2012 LEGISLATURE

2011 Senate BILL 494

February 20, 2012 - Introduced by Senators Hansen, Taylor, Shilling and King, cosponsored by Representatives Pasch, Molepske Jr, Grigsby, Richards, Pope-Roberts, Hebl, Sinicki, Bernard Schaber, Ringhand, Zepnick, E. Coggs, Mason, C. Taylor, Seidel, Turner, Thiesfeldt, Bies, Clark, Fields, Staskunas and Toles. Referred to Committee on Agriculture, Forestry, and Higher Education.

SB494,1,12 An Act to repeal 36.60 (1) (ad), 36.60 (1) (ae) and 36.60 (3) (am); to amend 20.285 (1) (qj) (title), 20.505 (8) (hm) 6r., 36.60 (title), 36.60 (2) (a) 1., 36.60 (2) (b), 36.60 (3) (am), 36.60 (5) (b) 1., 36.60 (5) (b) 2., 36.60 (5) (b) 3., 36.60 (5) (b) 4., 36.60 (5) (b) 5., 36.60 (5) (d), 36.60 (6m) (intro.), 36.60 (8) (b), 36.60 (8) (d), 36.60 (8) (e), 36.60 (8) (f), 36.60 (8) (h), 36.60 (9) (intro.), 36.60 (9) (intro.), 36.60 (9) (a), 36.60 (9) (b), 36.60 (9) (c) (intro.), 36.60 (9) (c) 2., 36.60 (9) (c) 3., 36.61 (1) (ag) and 36.62 (1); and to create 20.235 (1) (dd), 20.235 (1) (jd), 20.235 (1) (kd), 20.505 (8) (hm) 6t. and 39.465 of the statutes; relating to: grants for dental students, and loan assistance for dentists, who agree to practice in dental health shortage areas, or to provide services to Medical Assistance recipients, in this state, granting rule-making authority, and making appropriations.

Analysis by the Legislative Reference Bureau

Under current law, the Board of Regents of the University of Wisconsin System (Board of Regents) administers a physician and dentist loan assistance program under which the Board of Regents may repay up to $50,000 in educational loans made to a dentist who agrees to practice for three years in a dental health shortage area in this state.

This bill prohibits the Board of Regents from entering into any agreements after June 30, 2012, to repay the educational loans of a dentist. Instead, effective on July 1, 2012, the bill directs the Higher Educational Aids Board (HEAB) to establish a dental student grant and dentist loan assistance program under which HEAB provides grants to dental students, and repays the educational loans of dentists, who agree to practice dentistry in dental health shortage areas in this state or to provide dental services to individuals who are residents of this state and who are recipients of Medical Assistance (resident MA recipients).

Specifically, the bill requires HEAB to make grants to resident students who are enrolled full time in a program of study in this state leading to a doctor of dental surgery (D.D.S.) degree and who enter into an agreement with HEAB under which the student agrees to practice dentistry in a dental health shortage area for the same number of years as the student received a grant or to provide dental services to not less than 50 resident MA recipients in the first year of the agreement and to not less than an additional 50 resident MA recipients in each of the next three years of the agreement. Under the bill, the maximum amount of a grant that a student may receive during a fiscal year is $30,000 or an amount equal to the cost of tuition, fees, and expenses charged to attend the school of dentistry in which the student is enrolled for an academic year, whichever is less, and the maximum total amount of grants that a student may receive is $120,000 or an amount equal to that cost for four academic years, whichever is less.

The bill also requires HEAB to provide loan assistance to dentists who enter into an agreement with HEAB under which the dentist agrees to practice dentistry in a dental health shortage area for five years or to provide dental services to not less than 50 resident MA recipients in the first year of the agreement and to not less than an additional 50 resident MA recipients in each of the next four years of the agreement. The bill, however, permits either HEAB or the dentist, at the end of two years, to elect to terminate the agreement or to continue the agreement for the remaining three years of the agreement. Under the bill, the maximum amount of loan assistance that a dentist may receive during a fiscal year is $20,000 and the maximum total amount of loan assistance that a dentist may receive is $100,000.

In addition, the bill permits HEAB to repay the educational loans of a dentist under an expanded dentist loan assistance program that is funded through federal funds in addition to state matching funds. To be eligible for loan assistance under the expanded dentist loan assistance program, a dentist must be a U.S. citizen, may not have a judgment lien against his or her property for a debt to the United States, and must agree to practice dentistry at a public or private nonprofit entity in a dental health shortage area for five years, to accept Medicare assignment as payment in full for services or articles provided, and to use a sliding fee scale or a comparable method of determining payment arrangements for patients who are not eligible for Medicare or MA and who are unable to pay the customary fee for the dentist's services.

Finally, under the bill, if a grant or loan assistance recipient breaches his or her agreement, the recipient must: 1) repay the entire amount of grant or loan assistance provided, plus interest at a rate of 5 percent per year; and 2) pay a penalty of $5,000 for each year in which the recipient is in breach of his or her obligations under the agreement.

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:

SB494, s. 1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table - See PDF for table

SB494, s. 2 Section 2. 20.235 (1) (dd) of the statutes is created to read:

SB494,3,6 20.235 (1) (dd) Dental student grant and dentist loan assistance program. Biennially, the amounts in the schedule for dental student grants and dentist loan assistance under s. 39.465.

SB494, s. 3 Section 3. 20.235 (1) (jd) of the statutes is created to read:

SB494,4,2 20.235 (1) (jd) Dental student grant and dentist loan assistance program; repayments. All moneys received under s. 39.465 (5), to be used for dental student grants and dentist loan assistance under s. 39.465 and for costs associated with repayment of those grants and that loan assistance under s. 39.465 (5).

SB494, s. 4 Section 4. 20.235 (1) (kd) of the statutes is created to read:

SB494,4,10 20.235 (1) (kd) Dental student grant and dentist loan assistance program; Indian gaming receipts. Biennially, the amounts in the schedule for dental student grants and dentist loan assistance under s. 39.465. All moneys transferred from the appropriation account under s. 20.505 (8) (hm) 6t. shall be credited to this appropriation account. Notwithstanding s. 20.001 (3) (b), the unencumbered balance on June 30 of each odd-numbered year shall revert to the appropriation account under s. 20.505 (8) (hm).

SB494, s. 5 Section 5. 20.285 (1) (qj) (title) of the statutes is amended to read:

SB494,4,13 20.285 (1) (qj) (title) Physician and dentist and health care provider loan assistance programs; critical access hospital assessment fund.

SB494, s. 6 Section 6. 20.505 (8) (hm) 6r. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB494,4,18 20.505 (8) (hm) 6r. In each fiscal year $488,700 $278,700 to the Board of Regents of the University of Wisconsin System for loan repayments under ss. 36.60 and 36.61.

SB494, s. 7 Section 7. 20.505 (8) (hm) 6t. of the statutes is created to read:

SB494,4,21 20.505 (8) (hm) 6t. The amount transferred to s. 20.235 (1) (kd) shall be the amount in the schedule under s. 20.235 (1) (kd).

SB494, s. 8 Section 8. 36.60 (title) of the statutes is amended to read:

SB494,4,23 36.60 (title) Physician and dentist loan assistance program.

SB494, s. 9 Section 9. 36.60 (1) (ad) of the statutes is repealed.

SB494, s. 10 Section 10. 36.60 (1) (ae) of the statutes is repealed.

SB494, s. 11 Section 11. 36.60 (2) (a) 1. of the statutes is amended to read:

SB494,5,5 36.60 (2) (a) 1. Except as provided in subd. 2., the board may repay, on behalf of a physician or dentist, up to $50,000 in educational loans obtained by the physician or dentist from a public or private lending institution for education in an accredited school of medicine or dentistry or for postgraduate medical or dental training.

SB494, s. 12 Section 12. 36.60 (2) (b) of the statutes is amended to read:

SB494,5,10 36.60 (2) (b) A physician or dentist who is a participant in the national health service corps scholarship program under 42 USC 254n, or a physician or dentist who was a participant in that program and who failed to carry out his or her obligations under that program, is not eligible for loan repayment under this section.

SB494, s. 13 Section 13. 36.60 (3) (am) of the statutes is amended to read:

SB494,5,18 36.60 (3) (am) The board shall enter into a written agreement with the dentist, in which the dentist agrees to practice at least 32 clinic hours per week for 3 years in one or more dental health shortage areas in this state or in a rural area. The dentist shall also agree to care for patients who are insured or for whom dental health benefits are payable under medicare, medical assistance, or any other governmental program. The board may not enter into an agreement under this paragraph with a dentist after June 30, 2012.

SB494, s. 14 Section 14. 36.60 (3) (am) of the statutes, as affected by 2011 Wisconsin Act .... (this act), is repealed.

SB494, s. 15 Section 15. 36.60 (5) (b) 1. of the statutes is amended to read:

SB494,6,2 36.60 (5) (b) 1. The degree to which there is an extremely high need for medical care in the eligible practice area, health professional shortage area, or rural area in which a physician desires to practice and the degree to which there is an extremely high need for dental care in the dental health shortage area or rural area in which a dentist desires to practice.

SB494, s. 16 Section 16. 36.60 (5) (b) 2. of the statutes is amended to read:

SB494,6,7 36.60 (5) (b) 2. The likelihood that a physician will remain in the eligible practice area, health professional shortage area, or rural area, and that a dentist will remain in the dental health shortage area or rural area, in which he or she desires to practice after the loan repayment period.

SB494, s. 17 Section 17. 36.60 (5) (b) 3. of the statutes is amended to read:

SB494,6,11 36.60 (5) (b) 3. The per capita income of the eligible practice area, health professional shortage area, or rural area in which a physician desires to practice and of the dental health shortage area or rural area in which a dentist desires to practice.

SB494, s. 18 Section 18. 36.60 (5) (b) 4. of the statutes is amended to read:

SB494,6,18 36.60 (5) (b) 4. The financial or other support for physician recruitment and retention provided by individuals, organizations, or local governments in the eligible practice area, health professional shortage area, or rural area in which a physician desires to practice and for dentist recruitment and retention provided by individuals, organizations, or local governments in the dental health shortage area or rural area in which a dentist desires to practice.

SB494, s. 19 Section 19. 36.60 (5) (b) 5. of the statutes is amended to read:

SB494,6,24 36.60 (5) (b) 5. The geographic distribution of the physicians and dentists who have entered into loan repayment agreements under this section and the geographic distribution of the eligible practice areas, health professional shortage areas, dental health shortage areas, and rural areas in which the eligible applicants desire to practice.