Stricken language would be deleted from and underlined language would be added to present law. *TNL304* 04-03-2023 13:04:55 TNL304 State of Arkansas As Engrossed: H4/3/23 1 94th General Assembly A Bill 2 Regular Session, 2023 HOUSE BILL 1747 3 4 By: Representative McAlindon 5 6 For An Act To Be Entitled 7 AN ACT TO AMEND THE LAW CONCERNING RURAL MEDICAL 8 PRACTICE STUDENT LOA NS AND SCHOLARSHIPS; TO AMEND THE 9 LAW TO INCLUDE STUDE NTS ENROLLED IN ADDI TIONAL 10 MEDICAL PROGRAMS AS ELIGIBLE FOR RECEIPT OF RURAL 11 MEDICAL PRACTICE LOA NS; AND FOR OTHER PURPOSES. 12 13 14 Subtitle 15 TO AMEND THE LAW CONCERNING RURAL MEDICAL 16 PRACTICE STUDENT LOANS AND SCHOLARSHIPS; 17 AND TO AMEND THE LAW TO INCLUDE STUDENTS 18 ENROLLED IN ADDITIONAL MEDICAL PROGRAMS 19 AS ELIGIBLE FOR RECEIPT OF RURAL MEDICAL 20 PRACTICE LOANS. 21 22 23 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24 25 SECTION 1. Arkansas Code § 6 -81-703 is amended to read as follows: 26 6-81-703. Loan applications — Medical students and medical school 27 graduates Eligible applicants. 28 (a) Any student accepted for admission to or enrolled in good standing 29 in the College of Medicine of the University of Arkansas for Medical Sciences 30 in studies leading to the degree of Doctor of Medicine who is a bona fide 31 resident of Arkansas and meets at least one (1) of the fo llowing eligibility 32 criteria may apply for a loan under this subchapter on forms prescribed by 33 the Arkansas Rural Medical Practice Student Loan and Scholarship Board : 34 (1) A student who has been accepted for admission to or is 35 enrolled in good standing i n the College of Medicine of the University of 36 As Engrossed: H4/3/23 HB1747 2 04-03-2023 13:04:55 TNL304 Arkansas for Medical Sciences in studies leading to the degree of Doctor of 1 Medicine; 2 (2) A student who has been accepted for admission to or is 3 enrolled in good standing in an educational program for physi cian assistants 4 accredited by the Accreditation Review Commission on Education for the 5 Physician Assistant, Inc. or its successor, as required for licensing 6 purposes under § 17-105-101 et seq.; or 7 (3) A student who has been accepted for admission to or is 8 enrolled in good standing in a regionally accredited United States college or 9 university with a program in human nutrition, food and nutrition, dietetics, 10 or food systems management, as required for licensing purposes under § 17 -87-11 301 et seq. 12 (b) A graduate of the College of Medicine of the University of 13 Arkansas for Medical Sciences or any accredited medical school in the United 14 States may apply for the community match income incentive program under this 15 subchapter on forms prescribed by the board so long as the applicant 16 satisfies the criteria set forth in § 6 -81-715. 17 18 SECTION 2. Arkansas Code § 6 -81-706 is amended to read as follows: 19 6-81-706. Medical students Applicants — Eligibility for initial and 20 renewal loans. 21 (a) The Arkansas Rural Medical Practice Student Loan and Scholarship 22 Board may make rural medical practice loans to the an applicant, each rural 23 medical practice loan being expressly made subject to the provisions of § 6 -24 81-708(c) and § 6-81-710, if it finds that: 25 (1) The applicant is a bona fide resident of Arkansas; 26 (2) The applicant has been accepted for admission to or is 27 enrolled in good standing in the College of Medicine of the University of 28 Arkansas for Medical Sciences in studies leading to the degree of Doctor of 29 Medicine is a student who has been accepted for admission to or is enrolled 30 in good standing in: 31 (A) The College of Medicine of the University of Arkansas 32 for Medical Sciences in studies leading to the degree of Doctor of Medicine; 33 (B) An educational program for physician assistants 34 located in the State of Arkansas and accredited by the Accreditation Review 35 Commission on Education for the Physician Assistant, Inc. or its successor, 36 As Engrossed: H4/3/23 HB1747 3 04-03-2023 13:04:55 TNL304 as required for licensing purposes under § 17 -105-101 et seq.; or 1 (C) A regionally accredited United States college or 2 university located in the State of Arkansas with a program in human 3 nutrition, food and nutrition, dietetics, or food systems management, as 4 required for licensing purposes under § 17 -87-301 et seq.; 5 (3) The applicant is enrolled in a medically underserved and 6 rural practice curriculum, as applicable to the college or educational 7 program for which an applicant has been accepted for admission or in which an 8 applicant is enrolled in go od standing; 9 (4) The applicant needs financial assistance to complete his or 10 her medical studies; 11 (5) The applicant desires to practice medicine in an eligible 12 qualified rural community; and 13 (6) The applicant is a person of good moral character an d one 14 who has the talent and capacity to profit by medical studies. 15 (b) Subject to the availability of funds, an initial rural medical 16 practice loan for one (1) academic year shall be renewable annually for the 17 number of years required to complete studie s leading to the Doctor of 18 Medicine a degree necessary for an eligible profession under this subchapter 19 or for additional amounts, not to exceed the maximum amounts specified in § 20 6-81-707, but all subsequent rural medical practice loans shall be granted 21 only upon application by the recipient and a finding by the board that: 22 (1) The applicant has completed successfully the medical 23 required studies of the preceding academic year and remains in good standing 24 as an enrolled student in the college or educational program; 25 (2) The applicant is enrolled or participating in a medically 26 underserved and rural practice curriculum, as applicable to the college or 27 educational program for which an applicant has been accepted for admission or 28 in which an applicant is enrolled in good standing ; 29 (3) The applicant continues to be a resident of Arkansas; and 30 (4) The applicant's financial situation continues to warrant 31 financial assistance made under the conditions of this section. 32 33 SECTION 3. Arkansas Code § 6 -81-708(c), concerning obligations and 34 conditions incorporated into a written loan contract granted by the Arkansas 35 Rural Medical Practice Student Loan and Scholarship Board, is amended to read 36 As Engrossed: H4/3/23 HB1747 4 04-03-2023 13:04:55 TNL304 as follows: 1 (c) Each applicant to whom a rural medical practice loan or loans is 2 granted by the Arkansas Rural Medical Practice Student Loan and Scholarship 3 Board shall execute a written loan contract that incorporates the following 4 obligations and conditions: 5 (1)(A) The recipient of a rural medical practice loan or loans 6 shall bindingly contract that he or she shall practice primary care medicine 7 full time in a qualified rural community upon completion of: 8 (i) For students who have been accepted for 9 admission to or are enrolled in good standing in the College of Medicine of 10 the University of Arkansas for Medical Sciences in studies leading to the 11 degree of Doctor of Medicine: 12 (i)(a) His or her medical internship of one (1) year 13 undertaken immediately following the earning of the degree of Doctor of 14 Medicine; 15 (ii)(b) Four (4) additional years of medical 16 training beyond the internship if the training has been approved in advance 17 by the Arkansas Rural Medical Practice Student Loan and Scholarship Board and 18 includes practice experience in a rural community; or 19 (iii)(c) At the request of the recipient of a rural medical practice 20 loan, the Arkansas Rural Medical Practice Student Loan and Scholarship Board 21 may approve the recipient's request to practice in more than one (1) 22 qualified rural community to meet his or her obligation to practice full time 23 if the Arkansas Rural Medical Practice Student Loan and Scholarship Board 24 determines, based upon guidelines established by the Arkansas Rural Medical 25 Practice Student Loan and Sc holarship Board, that the physician need in the 26 rural communities cannot sustain a full -time medical practice or that other 27 compelling circumstances exist ; and 28 (ii) For students who have been accepted for 29 admission to or are enrolled in good standing in a college or educational 30 program under §§ 6-81-706(a)(2)(B) or (C), the educational program and 31 accompanying requirements in which the students are enrolled . 32 (B) The recipient of a rural medical practice loan or 33 loans shall bindingly contract that for each year's loan he or she shall 34 practice medicine in accordance with subdivision (c)(1)(A) of this section 35 for a whole year. 36 As Engrossed: H4/3/23 HB1747 5 04-03-2023 13:04:55 TNL304 (C) For each continuous whole year of medical practice, in 1 accordance with subdivision (c)(1)(A) of this section, subject to reasonable 2 leave periods, including without limitation vacation, sick leave, continuing 3 medical education, jury duty, funerals, holidays, or military service, the 4 Arkansas Rural Medical Practice Student Loan and Scholarship Board shall 5 cancel, by converting to a scholarship grant, the full amount of one (1) 6 year's loan plus accrued interest; 7 (2)(A) The recipient of a rural medical practice loan or loans 8 shall bindingly contract that not engaging in the practice of medicine in 9 accordance with the loan contract and with this subchapter may result in 10 suspension of his or her license to practice medicine in this state. 11 (B) For any contract entered into after August 1, 2007, 12 the recipient's medical license may shall not be suspended unless the 13 recipient's contract : 14 (i) Contract contained a specific term that loss of 15 license was is a consequence of breach ; and the recipient 16 (ii) Recipient signed a written acknowledgment of 17 understanding that the suspension of licens e was explained to him or her 18 orally as a potential consequence of breach of the contractual provisions. 19 (C) The suspension may be for a period of years equivalent 20 to the number of years that the recipient is obligated to practice medicine 21 in a rural area but has not so practiced and until the loan with interest 22 together with any civil money penalties, as reduced by each full year of 23 medical practice according to the terms of the loan contract, is paid in 24 full; 25 (3) Any communication from the Universi ty of Arkansas College of 26 Medicine with any state medical licensing board shall include a notation that 27 the recipient of a rural medical practice loan has a contract with the State 28 of Arkansas to practice medicine in a rural community and that breach of that 29 contract may result in suspension of the recipient's Arkansas medical 30 license; 31 (4)(A) In the event that a rural medical practice loan recipient 32 under this subchapter does not engage in the practice of medicine in 33 accordance with the terms of this sec tion and of his or her loan contract in 34 order to have the loan contract recognized as a scholarship, the recipient 35 shall remain obligated to repay the loan or loans received, together with 36 As Engrossed: H4/3/23 HB1747 6 04-03-2023 13:04:55 TNL304 interest at the maximum rate allowed by Arkansas law or the federal discount 1 rate plus five percent (5%) per annum, whichever is the lesser, the interest 2 to accrue from the date each payment of funds was received by the recipient. 3 (B) Neither interest nor the obligation to repay the 4 principal sums accrued shall accrue during any one (1) period of time that 5 the recipient involuntarily serves on active duty in the United States Armed 6 Forces. 7 (C) Repayment of principal with interest shall be due and 8 payable in full at the earliest to occur of the following events: 9 (i) Failure to remain enrolled in a medically 10 underserved and rural practice curriculum , as applicable to the college or 11 educational program for which an applicant has been accepted for admission or 12 in which an applicant is enrolled in good standing ; 13 (ii) Failure to remain in enrollment status 14 continuously to completion of the a degree of Doctor of Medicine necessary to 15 meet eligibility criteria under this subchapter for any reason other than 16 temporary personal illness; 17 (iii) Failure For students who have been accepted 18 for admission to or are enrolled in good standing in the College of Medicine 19 of the University of Arkansas for Medical Sciences in studies leading to the 20 degree of Doctor of Medicine, failure to complete internship; 21 (iv)(a) Failure to engage in the a full-time 22 practice of medicine while residing in a qualified rural community in 23 Arkansas as defined in § 6 -81-701. 24 (b) However, the Arkansas Rural Medical 25 Practice Student Loan and Scholarship Board may waive the residency 26 requirement on a case-by-case basis; and 27 (v) Failure to establish a practice as described 28 under subdivision (c)(4)(C)(iv)(a) of this section within six (6) months 29 following either: 30 (a) Either internship or four (4) additional 31 years of medical education that includes practice experience in a rural 32 community; or 33 (b) The completion of an educational program 34 in which a student is enrolled and as described under §§ 6 -81-706(a)(2)(B) 35 and (C) and any additional licensure requirements, as applica ble; 36 As Engrossed: H4/3/23 HB1747 7 04-03-2023 13:04:55 TNL304 (5) If an alternate on the waiting list for acceptance to the 1 University of Arkansas College of Medicine enters into a rural medical 2 practice program contract conditioned only upon the applicant's being 3 accepted for admission to the college and oth erwise meets the requirements of 4 § 6-81-706 and if the applicant is moved to the top of the waiting list under 5 § 6-81-718, the alternate's A contract for an alternate on the waiting list 6 for acceptance to the University of Arkansas College of Medicine shall 7 contain an additional term that breach of the contract may result in civil 8 money penalties in the amount of one hundred percent (100%) of the loan 9 amount if the applicant who is an alternate on the waiting list for 10 acceptance: 11 (A) Has been accepted f or admission to the college; 12 (B) Meets the requirements of § 6 -81-706, as applicable; 13 and 14 (C) Is moved to the top of the waiting list under § 6 -81-15 718. 16 (6) This subsection shall not prohibit the Arkansas Rural 17 Medical Practice Student Loan and Scholarship Board from considering and 18 entering into a negotiated settlement with the rural medical practice loan 19 recipient involving the license suspension, the amount of the civil money 20 penalty, and the terms of repayment of the loan. 21 22 /s/McAlindon 23 24 25 26 27 28 29 30 31 32 33 34 35 36