LCO No. 3389 1 of 6 General Assembly Raised Bill No. 449 February Session, 2022 LCO No. 3389 Referred to Committee on PUBLIC HEALTH Introduced by: (PH) AN ACT CONCERNING THE RECRUITMENT AND RETENTION OF PHYSICIANS IN THE STATE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective July 1, 2022) (a) For the fiscal year ending 1 June 30, 2023, and each fiscal year thereafter, the Office of Higher 2 Education, in collaboration with the Department of Public Health, shall 3 administer, within available appropriations, a physician loan 4 reimbursement grant program to persons who meet the eligibility 5 requirements described in subsection (b) of this section. 6 (b) The program shall provide student loan reimbursement grants to 7 any physician licensed pursuant to chapter 370 of the general statutes 8 who (1) graduated from a medical school in the state or completed his 9 or her medical residency program at a hospital licensed under chapter 10 368v of the general statutes, and (2) is employed as a physician in the 11 state. 12 (c) Any physician who satisfies the eligibility requirements 13 prescribed in subsection (b) of this section shall receive a grant for 14 reimbursement of all federal and state educational loans in an amount 15 Raised Bill No. 449 LCO No. 3389 2 of 6 equal to twenty per cent of the balance of such loans per year for each 16 year the physician is employed as a physician in the state. A physician 17 qualifying under subsection (b) of this section shall only be reimbursed 18 for loan payments made while such physician continues to satisfy such 19 eligibility requirements. 20 (d) Physicians may apply to the Office of Higher Education for grants 21 under this section at such time and in such manner as the executive 22 director of the Office of Higher Education prescribes. 23 (e) Any unexpended funds appropriated for purposes of this section 24 shall not lapse at the end of the fiscal year but shall be available for 25 expenditure during the next fiscal year. 26 Sec. 2. Section 20-14p of the general statutes is repealed and the 27 following is substituted in lieu thereof (Effective July 1, 2022): 28 (a) For purposes of this section: (1) "Covenant not to compete" means 29 any provision of an employment or other contract or agreement that 30 creates or establishes a professional relationship with a physician, 31 including, but not limited to, a partnership or employment relationship, 32 and restricts the right of a physician to practice medicine in any 33 geographic area of the state for any period of time after the termination 34 or cessation of such [partnership, employment or other] professional 35 relationship; (2) "physician" means an individual licensed to practice 36 medicine under this chapter; and (3) "primary site where such physician 37 practices" means (A) the office, facility or location where a majority of 38 the revenue derived from such physician's services is generated, or (B) 39 any other office, facility or location where such physician practices and 40 mutually agreed to by the parties and identified in the covenant not to 41 compete. 42 (b) (1) A covenant not to compete is valid and enforceable only if it is: 43 (A) Necessary to protect a legitimate business interest; (B) reasonably 44 limited in time, geographic scope and practice restrictions as necessary 45 to protect such business interest; and (C) otherwise consistent with the 46 law and public policy. The party seeking to enforce a covenant not to 47 Raised Bill No. 449 LCO No. 3389 3 of 6 compete shall have the burden of proof in any proceeding. 48 (2) A covenant not to compete in an employment contract, other 49 contract or agreement that is entered into, amended, extended or 50 renewed on or after July 1, 2016, shall not: (A) Restrict the physician's 51 competitive activities (i) for a period of more than one year, and (ii) in a 52 geographic region of more than fifteen miles from the primary site 53 where such physician practices; or (B) be enforceable against a physician 54 if (i) such employment contract, other contract or agreement was not 55 made in anticipation of, or as part of, a partnership or ownership 56 agreement and such contract or agreement expires and is not renewed, 57 unless, prior to such expiration, the [employer] party seeking to enforce 58 the covenant not to compete makes a bona fide offer to renew the 59 contract or agreement on the same or similar terms and conditions, or 60 (ii) the employment [or contractual relationship] contract, other contract 61 or agreement is terminated by the [employer] party seeking to enforce 62 the covenant not to compete, unless such employment [or contractual 63 relationship] contract, other contract or agreement is terminated for 64 cause. 65 (3) Each covenant not to compete in an employment contract, other 66 contract or agreement entered into, amended or renewed on and after 67 July 1, 2016, shall be separately and individually signed by the 68 physician. 69 (4) A covenant not to compete that is entered into, amended, 70 extended or renewed on or after July 1, 2022, shall not be enforceable 71 against a physician if the other party to such employment contract, other 72 contract or agreement that contains the covenant not to compete is a 73 medical practice comprised of sixteen or more physicians. 74 (c) The remaining provisions of any contract or agreement that 75 includes a covenant not to compete that is rendered void and 76 unenforceable, in whole or in part, under the provisions of this section 77 shall remain in full force and effect, including provisions that require 78 the payment of damages resulting from any injury suffered by reason of 79 Raised Bill No. 449 LCO No. 3389 4 of 6 termination of such contract or agreement. 80 Sec. 3. (Effective July 1, 2022) From July 1, 2022, until June 30, 2025, the 81 Department of Public Health shall waive the payment of the fees for a 82 license renewal described in subsection (b) of section 19a-88 of the 83 general statutes for each physician licensed under chapter 370 of the 84 general statutes. 85 Sec. 4. (Effective from passage) (a) There is established a task force to 86 study the ways in which medical malpractice policies and certain 87 insurance industry practices result in an increased workload for 88 physicians and limit a physician's ability to provide basic care to the 89 physician's patients. Such study shall include, but need not be limited 90 to, an examination of opportunities for reforming such policies and 91 practices, including, but not limited to, establishing homestead 92 protections. 93 (b) The task force shall consist of the following members: 94 (1) Two appointed by the speaker of the House of Representatives; 95 (2) Two appointed by the president pro tempore of the Senate; 96 (3) One appointed by the majority leader of the House of 97 Representatives; 98 (4) One appointed by the majority leader of the Senate; 99 (5) One appointed by the minority leader of the House of 100 Representatives; 101 (6) One appointed by the minority leader of the Senate; 102 (7) The Insurance Commissioner, or the commissioner's designee; 103 and 104 (8) The Commissioner of Public Health, or the commissioner's 105 designee. 106 Raised Bill No. 449 LCO No. 3389 5 of 6 (c) Any member of the task force appointed under subdivision (1), 107 (2), (3), (4), (5) or (6) of subsection (b) of this section may be a member 108 of the General Assembly. 109 (d) All initial appointments to the task force shall be made not later 110 than thirty days after the effective date of this section. Any vacancy shall 111 be filled by the appointing authority. 112 (e) The speaker of the House of Representatives and the president pro 113 tempore of the Senate shall select the chairpersons of the task force from 114 among the members of the task force. Such chairpersons shall schedule 115 the first meeting of the task force, which shall be held not later than sixty 116 days after the effective date of this section. 117 (f) The administrative staff of the joint standing committee of the 118 General Assembly having cognizance of matters relating to insurance 119 shall serve as administrative staff of the task force. 120 (g) Not later than January 1, 2023, the task force shall submit a report 121 on its findings and recommendations to the joint standing committees 122 of the General Assembly having cognizance of matters relating to 123 insurance and public health, in accordance with the provisions of 124 section 11-4a of the general statutes. The task force shall terminate on 125 the date that it submits such report or January 1, 2023, whichever is later. 126 Sec. 5. (NEW) (Effective July 1, 2022) (a) Not later than January 1, 2023, 127 the Commissioner of Public Health shall establish a Physician 128 Recruitment grant program. The program shall provide an incentive 129 grant in the amount of twenty thousand dollars for physicians who 130 relocate to this state and practice full-time as a physician in this state for 131 not less than two years after relocating. The commissioner shall define 132 the nature, description and systems designed for grant proposals. 133 (b) The commissioner may adopt regulations, in accordance with the 134 provisions of chapter 54 of the general statutes, to carry out the 135 provisions of this section. 136 Raised Bill No. 449 LCO No. 3389 6 of 6 Sec. 6. (Effective from passage) The Department of Public Health shall 137 study, in consultation with medical schools and teaching hospitals 138 affiliated with a medical school in the state, methods for supporting and 139 increasing medical residency programs in the fields of internal 140 medicine, family practice, pediatrics, psychiatry, obstetrics and 141 gynecology and rural health care. Not later than January 1, 2023, the 142 Commissioner of Public Health shall report, in accordance with the 143 provisions of section 11-4a of the general statutes to the joint standing 144 committee of the General Assembly having cognizance of matters 145 relating to public health regarding the results of such study. 146 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2022 New section Sec. 2 July 1, 2022 20-14p Sec. 3 July 1, 2022 New section Sec. 4 from passage New section Sec. 5 July 1, 2022 New section Sec. 6 from passage New section Statement of Purpose: To recruit and retain physicians in the state. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]