October 18, 2013 - Introduced by Representatives Petersen, Nerison, Petryk,
Severson, Jagler, Tittl, Sanfelippo, Steineke, Bies, Murphy, Strachota,
Swearingen, Kolste, Williams, Czaja, Tauchen, Berceau, Mursau, Johnson,
Pasch, Kaufert, Brooks, Tranel, Hebl, A. Ott, Wachs, Bernier, Wright,
Riemer, LeMahieu, Danou, Billings, Bewley, Genrich and Hulsey,
cosponsored by Senators Olsen, Petrowski, Carpenter, Shilling, Lasee,
Harris, Lehman, Wirch, Hansen, Schultz and Darling. Referred to
Committee on Health.
AB454,1,4 1An Act to create 20.235 (1) (fp), 39.385 and 71.05 (6) (b) 51. of the statutes;
2relating to: creation of a primary care and psychiatry shortage grant program,
3exempting from taxation amounts received from such a grant program,
4granting 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 financial aid programs, including programs to assist students
preparing for certain health care professions, such as nursing and dentistry.
This bill establishes, under the administration of HEAB, a primary care and
psychiatry shortage grant program (grant program) to encourage primary care
physicians and psychiatrists to practice primary care medicine or psychiatry in
underserved areas in this state. A physician or psychiatrist is eligible to participate
in the grant program if he or she meets all of the following requirements:
1. He or she practices primary care medicine or psychiatry, including child
psychiatry (psychiatry), in an underserved area in this state. The bill defines
"primary care medicine" as any of the following medical specialities: 1) family
practice; 2) internal medicine; 3) pediatrics; or 4) general surgery. The bill defines
an "underserved area" as a health professional shortage area certified by DHHS, a
health service shortage area designated by the governor and certified by the
secretary of health and human services, or a medically underserved area, as defined
in regulations promulgated by DHHS.

2. He or she graduated from a school of medicine located in this state and from
a graduate medical education training program in this state with an emphasis on
primary care medicine or psychiatry (GME training program).
The bill appropriates $1,500,000 in fiscal year 2014-15 as a continuing
appropriation for the grant program and requires HEAB to allocate not more than
$750,000 of that amount for financial assistance to physicians and not more than
$750,000 of that amount for financial assistance to psychiatrists. The bill permits
HEAB to grant financial assistance under the grant program to no more than 12
physicians and no more than 12 psychiatrists in a fiscal year and provides that, if
more than 12 physicians or more than 12 psychiatrists apply for participation in the
grant program in a fiscal year, HEAB must consider the order in which those
applications are received and the health professional shortage area score, as
determined by the Health Resources and Services Administration of DHHS, of the
underserved area in which the applicant is practicing primary care medicine or
psychiatry in selecting participants in the grant program. In addition, the bill: 1)
provides that an individual physician or psychiatrist may receive financial
assistance under the grant program in no more than three fiscal years; and 2)
prohibits HEAB from requesting continued funding for the grant program in its
2015-17 biennial budget request.
To participate in the grant program, a physician or psychiatrist may apply to
HEAB while he or she is participating in a GME training program, but must apply
to HEAB no later than the date on which he or she accepts employment or any other
affiliation as a primary care physician or psychiatrist in an underserved area in this
state.
To receive a payment of financial assistance under the grant program, a
physician or psychiatrist who has been accepted for participation in the grant
program must submit a claim to HEAB that includes: 1) the signature of the
physician or psychiatrist and of a representative of the practice in which the
physician or psychiatrist is employed or otherwise affiliated certifying that during
the period for which financial assistance is claimed the physician or psychiatrist
practiced primary care medicine or psychiatry in an underserved area in this state;
and 2) such other information as HEAB may require by rule to verify the eligibility
of the physician or psychiatrist for financial assistance.
Under the bill, any amount of financial assistance received under the grant
program by a physician or psychiatrist is exempt from taxation.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
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:
AB454,1
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
AB454,2 3Section 2. 20.235 (1) (fp) of the statutes is created to read:
AB454,3,64 20.235 (1) (fp) Primary care and psychiatry shortage grant program. As a
5continuing appropriation, the amounts in the schedule for the primary care and
6psychiatry shortage grant program under s. 39.385.
AB454,3 7Section 3. 39.385 of the statutes is created to read:
AB454,3,9 839.385 Primary care and psychiatry shortage grant program. (1)
9Definitions. In this section:
AB454,3,1010 (a) "Graduate medical education training program" means any of the following:
AB454,3,1311 1. A program of education in a medical speciality following the completion of
12medical school that prepares a physician for the independent practice of medicine in
13that speciality.
AB454,3,1614 2. A program of education in a medical subspeciality following the completion
15of education in a medical speciality that prepares a physician for the independent
16practice of medicine in that subspeciality.
AB454,3,1817 (b) "Grant program" means the primary care and psychiatry shortage grant
18program under this section.
AB454,4,2
1(c) "Health professional shortage area" has the meaning given in s. 36.60 (1)
2(aj).
AB454,4,53 (d) "Health service shortage area" means an area designated by the governor
4and certified by the federal secretary of health and human services under 42 USC
51395x
as an area with a shortage of personal health services.
AB454,4,76 (e) "Medically underserved area" has the meaning given in 42 CFR Part 51c,
7section 102 (e).
AB454,4,88 (f) "Primary care medicine" means any of the following medical specialities:
AB454,4,99 1. Family practice.
AB454,4,1010 2. Internal medicine.
AB454,4,1111 3. Pediatrics.
AB454,4,1212 4. General surgery.
AB454,4,1313 (g) "Psychiatry" includes child psychiatry.
AB454,4,1514 (h) "Underserved area" means a health professional shortage area, a health
15service shortage area, or a medically underserved area.
AB454,4,21 16(2) Establishment of program. There is established, to be administered by the
17board, a primary care and psychiatry shortage grant program to encourage primary
18care physicians and psychiatrists who meet the eligibility requirements specified in
19sub. (3) to practice primary care medicine and psychiatry in underserved areas in
20this state by providing grants of financial assistance to those physicians and
21psychiatrists as provided in sub. (4).
AB454,4,24 22(3) Eligibility. A physician or psychiatrist is eligible for financial assistance
23as provided under sub. (4) if the physician or psychiatrist meets all of the following
24requirements:
AB454,5,2
1(a) He or she practices primary care medicine or psychiatry in an underserved
2area in this state.
AB454,5,53 (b) He or she graduated from a school of medicine located in this state and from
4a graduate medical education training program in this state with an emphasis on
5primary care medicine or psychiatry.
AB454,5,96 (c) He or she does not appear on the statewide support lien docket under s.
749.854 (2) (b), unless the physician provides to the board a payment agreement that
8has been approved by the county child support agency under s. 59.53 (5) and that is
9consistent with rules promulgated under s. 49.858 (2) (a).
AB454,5,17 10(4) Financial assistance. (a) 1. From the appropriation account under s.
1120.235 (1) (fp), the board shall grant financial assistance to physicians and
12psychiatrists who meet the eligibility requirements specified in sub. (3), who apply
13for participation in the grant program as provided in par. (b), and who submit claims
14for that financial assistance as provided in par. (c). From s. 20.235 (1) (fp), the board
15shall allocate not more than $750,000 for financial assistance under the grant
16program to physicians and not more than $750,000 for financial assistance under the
17grant program to psychiatrists.
AB454,6,218 2. The board may grant financial assistance under the grant program to no
19more than 12 physicians and no more than 12 psychiatrists in a fiscal year. If more
20than 12 physicians or more than 12 psychiatrists apply for participation in the grant
21program in a fiscal year, the board shall consider the order in which those
22applications are received and the health professional shortage area score, as
23determined by the health resources and services administration of the federal
24department of health and human services, of the underserved area in which the

1applicant is practicing primary care medicine or psychiatry in selecting participants
2in the grant program.
AB454,6,43 3. An individual physician or psychiatrist may receive financial assistance
4under the grant program in no more than 3 fiscal years.
AB454,6,145 (b) A physician or psychiatrist may apply for participation in the grant program
6by submitting an application to the board in a form prescribed by the board. A
7physician or psychiatrist may submit that application while the physician or
8psychiatrist is participating in a graduate medical education training program
9described in sub. (3) (b), but must submit that application before accepting
10employment or any other affiliation as a primary care physician or psychiatrist in
11an underserved area in this state. The application shall include such information
12as the board may require to establish that the physician or psychiatrist meets the
13eligibility requirements specified in sub. (3) for participation in the grant program
14and any other information the board may require by rule promulgated under sub. (5).
AB454,6,2415 (c) After each year in which a physician or psychiatrist who has been accepted
16for participation in the grant program practices primary care medicine or psychiatry
17in an underserved area in this state, the physician or psychiatrist may submit to the
18board a claim for financial assistance. The claim shall include the signature of the
19physician or psychiatrist and of a representative of the practice in which the
20physician or psychiatrist is employed or otherwise affiliated certifying that during
21the period for which financial assistance is claimed the physician or psychiatrist
22practiced primary care medicine or psychiatry in an underserved area in this state
23and such other information as the board may require by rule promulgated under sub.
24(5) to verify the physician's or psychiatrist's eligibility for tuition assistance.
AB454,7,4
1(d) If the board determines that a physician or psychiatrist who submits a claim
2for financial assistance under par. (c) is eligible to receive that assistance, the board
3shall provide that assistance, subject to the amounts available in the appropriation
4account under s. 20.235 (1) (fp).
AB454,7,8 5(5) Rules. The board shall promulgate rules to implement and administer this
6section. Those rules shall include rules specifying the information a physician or
7psychiatrist must include in an application for participation in the grant program
8under sub. (4) (b) and in a claim for financial assistance under sub (4) (c).
AB454,4 9Section 4. 71.05 (6) (b) 51. of the statutes is created to read:
AB454,7,1310 71.05 (6) (b) 51. For taxable years beginning after December 31, 2013, any
11amount received by a physician or psychiatrist, in the taxable year to which the
12subtraction relates, from the primary care and psychiatry shortage grant program
13under s. 39.385.
AB454,5 14Section 5. Nonstatutory provisions.
AB454,7,2015 (1) Primary care and psychiatry shortage grant program. Notwithstanding
16section 16.42 (1) (e) of the statutes, in submitting information under section 16.42
17of the statutes for purposes of the 2015-17 biennial budget bill, the higher
18educational aids board shall submit information concerning the appropriation under
19section 20.235 (1) (fp) of the statutes, as created by this act, as though that
20appropriation had not been made.
AB454,6 21Section 6. Initial applicability.
AB454,8,222 (1) Primary care and psychiatry shortage grant program. This act first
23applies to a physician or psychiatrist who graduates from a graduate medical

1education training program in this state with an emphasis on primary care medicine
2or psychiatry in 2014.
AB454,8,33 (End)
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