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Regular Session, 2011
SENATE BILL NO. 178
BY SENATOR HEITMEIER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
MEDICAID. Creates a fund for the purpose of funding the out-of-state tuition of certain
students enrolled in certain medical education programs when such medical education
programs are not offered in Louisiana. (gov sig)
AN ACT1
To enact Part XL-A of Chapter 5 of Title 40 of the Louisiana Revised Statutes of 1950, to2
be comprised of R.S. 40:1300.8.1 through 1300.8.2, relative to a scholarship or loan3
program for certain students who enroll in certain out-of-state medical education4
programs which are not offered in the state; to provide for the creation and uses of5
a medical and Allied Health Professional Education Scholarship and Loan Fund; to6
provide for administration of the fund; to provide for qualifications and requirements7
of the applicants for the scholarship or loan; to provide for rules and regulations; and8
to provide for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. Part XL-A of Chapter 5 of Title 40 of the Louisiana Revised Statutes of11
1950, comprised of R.S. 40:1300.8.1 through 1300.8.2, is hereby enacted to read as follows:12
PART XL-A. MEDICAL AND ALLIED HEALTH 13
PROFESSIONAL EDUCATION SCHOLARSHIP AND LOAN PROGRAM14
§1300.8.1. Scholarship and loan program15
A. It is the intent of the legislature to insure that there are an adequate16
number of health care providers who practice in the state in areas of medicine17 SB NO. 178
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for which there are no associated medical educational programs offered in the1
state.2
B. The Board of Regents is hereby authorized to develop and administer3
through the promulgation of rules and regulations, pursuant to the4
Administrative Procedure Act, the Medical and Allied Health Professional5
Education Scholarship and Loan Program for students who choose to pursue6
certain out-of-state medical education because similar medical education7
programs are not offered in the state. The Board of Regents shall provide for8
the qualifications of the students and for the medical education programs to9
include in the program. The Board of Regents shall require that all recipients10
of scholarship or loan funds, pursuant to this program, agree in writing to11
return to the state to practice for a minimum of one and one-half years for each12
year the scholarship or loan is received and to maintain enrollment as a13
Medicaid provider during their service.14
C. The Board of Regents is hereby authorized to enter agreements with15
a public trust and public corporation duly organized pursuant to R.S. 9:234116
et seq., having for its beneficiary the state for the purpose of administering and17
providing for a loan program to provide low interest loans to students seeking18
medical education for which there are no associated medical educational19
programs offered in the state. Notwithstanding any provision of law to the20
contrary, the public trust and public corporation duly organized pursuant to21
R.S. 9:2341 et seq., having for its beneficiary the state, may issue bonds, notes,22
or other obligations to the public and others for the purposes of this Part.23
D. The Board of Regents may access state, federal, or grant funding24
made available to the Board of Regents for the purpose of fulfilling the25
scholarships offered in accordance with this Part.26
§1300.8.2. Medical and Allied Health Professional Education Scholarship and27
Loan Fund28
A. There is hereby created, as a special fund in the state treasury, the29 SB NO. 178
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Medical and Allied Health Professional Education Scholarship and Loan Fund,1
hereinafter sometimes referred to as "the fund". The Department of Health2
and Hospitals shall deposit into the state treasury on a quarterly basis at least3
twenty-five percent of all monies, not to exceed two hundred thousand dollars4
in any fiscal year, retained by the Department of Health and Hospitals from5
local intergovernmental transfers which are transferred for the purpose of6
making supplemental payments to physicians.7
B.(1) Notwithstanding any other provision of law, after compliance with8
the requirements of Article VII, Section 9(B) of the Constitution of Louisiana9
relative to the Bond Security and Redemption Fund, and after a sufficient10
amount is allocated from that fund to pay all of the obligations secured by the11
full faith and credit of the state which become due and payable within any fiscal12
year, the treasurer shall deposit into the fund those monies transferred to the13
treasurer from the Department of Health and Hospitals which were generated14
by the Department of Health and Hospitals through the use of any Medicaid15
upper payment limit financing mechanism created or maintained for16
physicians.17
(2) The monies in this fund shall be used solely for the provision of the18
Medical and Allied Health Professional Education and Loan Scholarship19
Program as provided for by this Part and only in the amounts appropriated by20
the legislature. All unexpended and unencumbered monies in the fund at the21
end of the fiscal year shall remain in the fund. The monies in the fund shall be22
invested by the state treasurer in the same manner as monies in the state23
general fund, and interest earned on the investment of these monies shall be24
credited to the fund following compliance with the requirements of Article VII,25
Section 9(B) relative to the Bond Security and Redemption Fund.26
Section 2. This Act shall become effective upon signature by the governor or, if not27
signed by the governor, upon expiration of the time for bills to become law without signature28
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If29 SB NO. 178
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vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following such approval.2
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Greg Waddell.
DIGEST
Heitmeier (SB 178)
Proposed law creates the Medical and Allied Health Professional Education Scholarship and
Loan Program to be created and administered by the Board of Regents.
Proposed law provides that the Board of Regents shall require that all recipients of
scholarship or loan funds, pursuant to this program, agree in writing to return to the state to
practice for a minimum of one and one-half years for each year receiving the scholarship and
to maintain enrollment in the Medicaid program during their service.
Proposed law provides that the Board of Regents may access state, federal, or grant funding
made available to the department for the purpose of fulfilling the scholarships or loans
offered in accordance with the provisions of proposed law.
Proposed law authorizes the Board of Regents to enter agreements with a public trust and
public corporation duly organized pursuant to present law, having for its beneficiary the state
for purpose of administering and providing for a loan program to provide low interest loans
to students seeking medical education for which there are no associated medical educational
programs offered in the state. Proposed law further provides that the public trust and public
corporation duly organized pursuant to present law, having for its beneficiary the State, may
issue bonds, notes, or other obligations to the public and others for the purposes of proposed
law.
Proposed law creates, as a special fund in the state treasury, the Medical and Allied Health
Professional Education Scholarship and Loan Fund.
Proposed law provides that the DHH shall deposit into the state treasury an amount no less
than 25 percent of the monies, not to exceed two hundred thousand dollars in any fiscal year,
retained by the DHH from local intergovernmental transfers which are transferred for the
purpose of making supplemental payments to physicians.
Proposed law provides that monies in this fund shall be used solely for the provision of the
Medical and Allied Health Professional Education Scholarship and Loan Program as
provided for by proposed law and only in the amounts appropriated by the legislature.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 40:1300.8.1 - 1300.8.2)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Health and Welfare to
the original bill.
1. Removes requirement that scholarship and loan recipients maintain an open
panel for Medicaid, Medicare, and uninsured patients and replaces it with the
requirement that the recipient maintain enrollment as a provider in the
Medicaid program. SB NO. 178
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2. Limits the annual deposit made by the Department of Health and Hospitals
to $200,000.