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Regular Session, 2011 ENROLLED
SENATE BILL NO. 178
BY SENATOR HEITMEIER AND REPRESENTATIVE KATZ
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
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 ensure that there are an adequate16
number of health care providers who practice in the state in areas of medicine17
for which there are no associated medical educational programs offered in the18
state.19
B. The Board of Regents is hereby authorized to develop and administer20
through the promulgation of rules and regulations, pursuant to the21
Administrative Procedure Act, the Medical and Allied Health Professional22
Education Scholarship and Loan Program for students who choose to pursue23
certain out-of-state medical education because similar medical education24
programs are not offered in the state. The Board of Regents shall provide for25
the qualifications of the students and for the medical education programs to be26 SB NO. 178 ENROLLED
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included in the program. The Board of Regents shall require that all recipients1
of scholarship or loan funds, pursuant to this program, agree in writing to2
return to the state to practice for a minimum of one and one-half years for each3
year the scholarship or loan is received and to maintain enrollment as a4
Medicaid provider during their service.5
C. The Board of Regents is hereby authorized to enter into agreements6
with a public trust and public corporation duly organized pursuant to R.S.7
9:2341 et seq., having for its beneficiary the state for the purpose of8
administering and providing for a loan program to provide low interest loans9
to students seeking medical education for which there are no associated medical10
educational programs offered in the state. Notwithstanding any provision of11
law to the contrary, the public trust and public corporation duly organized12
pursuant to R.S. 9:2341 et seq., having for its beneficiary the state, may issue13
bonds, notes, or other obligations to the public and others for the purposes of14
this Part.15
D. The Board of Regents may access state, federal, or grant funding16
made available to the Board of Regents for the purpose of fulfilling the17
scholarships offered in accordance with this Part.18
§1300.8.2. Medical and Allied Health Professional Education Scholarship and19
Loan Fund20
A. There is hereby created, as a special fund in the state treasury, the21
Medical and Allied Health Professional Education Scholarship and Loan Fund,22
hereinafter sometimes referred to as "the fund". The Department of Health23
and Hospitals shall deposit into the state treasury on a quarterly basis at least24
twenty-five percent of all monies, not to exceed two hundred thousand dollars25
in any fiscal year, retained by the Department of Health and Hospitals from26
local intergovernmental transfers which are transferred for the purpose of27
making supplemental payments to physicians.28
B.(1) Notwithstanding any other provision of law, after compliance with29
the requirements of Article VII, Section 9(B) of the Constitution of Louisiana30 SB NO. 178 ENROLLED
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relative to the Bond Security and Redemption Fund, and after a sufficient1
amount is allocated from that fund to pay all of the obligations secured by the2
full faith and credit of the state which become due and payable within any fiscal3
year, the treasurer shall deposit into the fund those monies transferred to the4
treasurer from the Department of Health and Hospitals which were generated5
by the Department of Health and Hospitals through the use of any Medicaid6
upper payment limit financing mechanism created or maintained for7
physicians.8
(2) The monies in this fund shall be used solely for the provision of the9
Medical and Allied Health Professional Education and Loan Scholarship10
Program as provided for by this Part and only in the amounts appropriated by11
the legislature. All unexpended and unencumbered monies in the fund at the12
end of the fiscal year shall remain in the fund. The monies in the fund shall be13
invested by the state treasurer in the same manner as monies in the state14
general fund, and interest earned on the investment of these monies shall be15
credited to the fund following compliance with the requirements of Article VII,16
Section 9(B) relative to the Bond Security and Redemption Fund.17
Section 2. This Act shall become effective upon signature by the governor or, if not18
signed by the governor, upon expiration of the time for bills to become law without signature19
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If20
vetoed by the governor and subsequently approved by the legislature, this Act shall become21
effective on the day following such approval.22
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: