EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb1133* HOUSE BILL 1133 M4, F2 3lr1154 By: Delegates Lehman, Bartlett, Foley, Kaiser, R. Lewis, McComas, Ruth, and Terrasa Introduced and read first time: February 10, 2023 Assigned to: Appropriations A BILL ENTITLED AN ACT concerning 1 Agriculture – Veterinary Practitioners – Student Loan Forgiveness Program 2 FOR the purpose of establishing the Veterinary Practitioner Student Loan Forgiveness 3 Program to be administered by the Secretary of Agriculture; establishing eligibility 4 requirements for the Program, including requiring participants to complete a service 5 obligation to practice in the State for at least a certain number of years; requiring 6 the Secretary to make an annual disbursement of a certain sum to a veterinary 7 practitioner who meets the service obligation, up to a maximum number of years; 8 and generally relating to the establishment of the Veterinary Practitioner Student 9 Loan Forgiveness Program. 10 BY adding to 11 Article – Agriculture 12 Section 2–306.1 13 Annotated Code of Maryland 14 (2016 Replacement Volume and 2022 Supplement) 15 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16 That the Laws of Maryland read as follows: 17 Article – Agriculture 18 2–306.1. 19 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 20 INDICATED. 21 (2) “PROGRAM” MEANS THE VETERINARY PRACTITIONER STUDENT 22 LOAN FORGIVENESS PROGRAM. 23 2 HOUSE BILL 1133 (3) “QUALIFIED EDUCATIONAL LOAN” MEANS A GOVERNMENT , 1 COMMERCIAL , OR FOUNDATION LOAN F OR ACTUAL COSTS PAID FOR TUITION, 2 REASONABLE EDUCATION EXPENSES, AND REASONABLE LIVIN G EXPENSES 3 RELATED TO THE POSTG RADUATE EDUCATION OF A VETERINARIAN . 4 (4) “VETERINARIAN” HAS THE MEANING STAT ED IN § 2–301 OF THIS 5 SUBTITLE. 6 (5) “VETERINARY PRACTITIONER ” HAS THE MEANING STAT ED IN § 7 2–301 OF THIS SUBTITLE . 8 (B) (1) THERE IS A VETERINARY PRACTITIONER STUDENT LOAN 9 FORGIVENESS PROGRAM. 10 (2) THE SECRETARY SHALL ADMINISTER THE PROGRAM. 11 (C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE QUALIFIED 12 EDUCATIONAL LOAN FORGIVENESS FOR VETERINARY PRACTITIO NERS IN THE 13 STATE. 14 (D) TO BE ELIGIBLE TO PAR TICIPATE IN THE PROGRAM, AN INDIVIDUAL 15 SHALL: 16 (1) BE A VETERINARY PRACTITIONER WHO HAS AT LEAST $40,000 IN 17 OUTSTANDING EDUCATIO NAL LOANS FROM VETER INARY SCHOOL AT THE TIME OF 18 SUBMITTING AN APPLICATION IN ACCORDANCE WITH THIS SECTION; AND 19 (2) SUBMIT AN APPLICATION TO THE SECRETARY IN THE FORM AND 20 MANNER PRESCRIBED BY THE SECRETARY. 21 (E) AN APPLICANT SELECTED TO PARTICIPATE IN THE PROGRAM SHALL 22 SIGN A CONTRACT AGRE EING TO COMPLETE A SERVICE OBLIGATION T O PRACTICE 23 AS A VETERINARIAN IN THE STATE FOR AT LEAST 2 YEARS. 24 (F) (1) EACH FISCAL YEAR, THE SECRETARY MAY SELECT ELIGIBLE 25 APPLICANTS FOR PARTI CIPATION IN THE PROGRAM WITHIN THE LI MITS OF 26 AVAILABLE FUNDING . 27 (2) THE SECRETARY SHALL SELECT PARTICIPANTS BASED ON: 28 (I) EXPERIENCE; 29 HOUSE BILL 1133 3 (II) TRAINING; AND 1 (III) AVAILABILITY TO PRACTICE IN HIGH–NEED AREAS , 2 INCLUDING: 3 1. RURAL AREAS; 4 2. LOW–INCOME AREAS ; 5 3. EMERGENCY PRACTICES ; 6 4. NONPROFIT SHELTERS ; 7 5. MUNICIPAL SHELTERS ; AND 8 6. OTHER UNDERSERVED ARE AS AS DETERMINED BY 9 THE SECRETARY. 10 (3) THE SECRETARY SHALL PRIORITIZE ADMINISTE RING GRANTS TO 11 APPLICANTS SERVING THE AREAS LI STED UNDER PARAGRAPH (2)(III) OF THIS 12 SUBSECTION. 13 (G) (1) FOR EACH YEAR THAT A PARTICIPATING VETERI NARY 14 PRACTITIONER MEETS T HE SERVICE OBLIGATIO N REQUIRED UNDER SUBSECTION 15 (E) OF THIS SECTION , THE SECRETARY SHALL MAKE AN ANNUAL DISBURSEMENT 16 DIRECTLY TO THE PRACTITIONER OF $20,000 OR THE BALANCE OF TH E 17 PARTICIPANT’S QUALIFIED EDUCATIONAL LOANS , WHICHEVER IS LESS . 18 (2) DISBURSEMENTS UNDER T HE PROGRAM: 19 (I) MAY BE PAID TO A PARTICIPAN T FOR A MAXIMUM OF 5 20 YEARS; AND 21 (II) ARE SUBJECT TO APPLIC ABLE LAWS ON LOCAL , STATE, AND 22 FEDERAL TAXATION . 23 (H) (1) THE SECRETARY MAY WAIVE A VETERINARY PRACTITIONER ’S 24 SERVICE OBLIGATION U NDER THE PROGRAM IF EMERGENCY CIRCUMSTANCES 25 PREVENT THE PRACTITIONER ’S FULFILLMENT OF THE S ERVICE OBLIGATION , 26 INCLUDING DEATH , TOTAL AND PERMANENT DISABILITY, OR TEMPORARY 27 DISABILITY LASTING M ORE THAN 2 YEARS. 28 4 HOUSE BILL 1133 (2) IF A VETERINARY P RACTITIONER PARTICIPATING IN THE 1 PROGRAM FAILS TO COMPLETE A FULL YEAR OF THE SERVICE OBLIGATI ON, THE 2 SECRETARY MAY PRORATE THE LOAN FORGIVENESS PAYMENT FOR THAT SER VICE 3 YEAR. 4 (I) (1) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER , 5 THE GOVERNOR SH ALL INCLUDE IN THE A NNUAL BUDGET BILL AN APPROPRIATION 6 OF $2,000,000 TO THE PROGRAM. 7 (2) THE APPROPRIATION REQUIR ED UNDER PARAGRAPH (1) OF THIS 8 SUBSECTION SHALL BE USED ONLY FOR : 9 (I) PROVIDING LOAN FORGIV ENESS UNDER THE PROGRAM; 10 AND 11 (II) ADMINISTERING THE PROGRAM. 12 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13 1, 2023. 14