Today's Law As Amended


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AB-638 Student financial aid: California Physician Assistant Loan Assumption Program.(2007-2008)



As Amends the Law Today


SECTION 1.

 Article 9 (commencing with Section 69660) is added to Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, to read:

Article  9. California Physician Assistant Loan Assumption Program
69660.
 (a) The Legislature finds and declares all of the following:
(1) There is a growing shortage of physician assistants and there is a need for qualified physician assistants throughout California.
(2) The physician assistant shortage is most serious in medically underserved areas.
(3) Many medically underserved areas have difficulty recruiting and retaining high-quality physician assistants.
(4) The rising costs of higher education, coupled with a shift in available financial aid from scholarships and grants to loans, make loan repayment options an important consideration in a student’s decision to pursue a postsecondary education.
(5) The availability of financial aid and loan repayment assistance are important considerations for many students in making their educational decisions.
(b) It is, therefore, the intent of the Legislature that all of the following occur:
(1) The California Physician Assistant Loan Assumption Program be designed to encourage persons to become licensed physician assistants and work in medically underserved areas.
(2) That the enactment of this article accomplish all of the following:
(A) Provide outstanding postsecondary students with the assurance of financial assistance to encourage them to complete a physician assistant program, obtain a physician assistant license, and seek employment as a physician assistant in a medically underserved area.
(B) Provide persons who agree to become licensed physician assistants with the assurance of financial assistance to encourage them to complete the additional coursework necessary to become a licensed physician assistant.
(C) Identify medically underserved areas.
(3) All persons eligible to enter into agreements for loan assumption pursuant to this article be persons who need to complete training or coursework in order to become a licensed physician assistant, and who agree to work in a medically underserved area.
(4) Funding necessary for the administration of this article be included within the annual budget of the Student Aid Commission in an amount necessary to meet the student loan obligations incurred by the commission.
69661.
 The California Physician Assistant Loan Assumption Program is hereby established. The program shall assume the qualifying educational loans of physician assistants who agree to practice in designated medically underserved areas, as provided in this article.
69661.5.
 For the purposes of this article, the following terms have the following meanings:
(a) “Commission” means the Student Aid Commission.
(b) “Eligible institution” means a postsecondary institution that is determined by the Student Aid Commission to meet both of the following requirements:
(1) The institution is eligible to participate in state and federal financial aid programs.
(2) The institution maintains an accredited physician assistant program.
(c) “Medically undeserved area” means an area defined as a health professional shortage area in Part 5 of Subchapter A of Chapter 1 of Title 42 of the Code of Federal Regulations or an area of the state where unmet priority needs for physicians exist as determined by the California Healthcare Workforce Policy Commission pursuant to Section 128225 of the Health and Safety Code.
(d) “Program” means the California Physician Assistant Loan Assumption Program.
69662.
 (a) Any person enrolled in an eligible institution, may be eligible to enter into an agreement for loan assumption, to be redeemed pursuant to Section 69665 upon becoming employed as a licensed physician assistant.
(b) In order to be eligible to enter into an agreement for loan assumption, an applicant shall satisfy all of the following conditions:
(1) The applicant is enrolled in or admitted to a physician assistant program at an eligible institution.
(2) The applicant is currently enrolled in a program, or has been admitted to a program in which he or she will be enrolled, on at least a half-time basis, as determined by the eligible institution. The applicant shall agree to maintain satisfactory academic progress and a minimum of half-time enrollment, as defined by the participating eligible institution.
(A) Except as provided in subparagraph (B), if a program participant fails to maintain half-time enrollment as required by this article and, under the terms of the agreement pursuant to paragraph (2) of subdivision (b) of Section 69662, the loan assumption agreement shall be deemed invalid. The participant is excused from the half-time enrollment requirement if he or she is in his or her final term in school and has no additional coursework required to become a physician assistant.
(B) Notwithstanding subparagraph (A), a program participant shall be excused from the half-time enrollment requirement for a period not to exceed one calendar year, unless approved by the commission for a longer period, if a program participant becomes unable to maintain half-time enrollment due to any of the following:
(i) Serious illness, pregnancy, or other natural causes.
(ii) The participant is called to military active duty status.
(iii) A natural disaster prevents a program participant from maintaining half-time enrollment due to the interruption of instruction at the eligible institution.
(3) The person has submitted an application to participate in the program and has been recommended by his or her postsecondary institution to have outstanding ability on the basis of criteria that may include, but need not be limited to, any of the following:
(A) Grade point average.
(B) Test scores.
(C) Faculty evaluations.
(D) Interviews.
(E) Other recommendations.
(4) The applicant has received, or is approved to receive, a loan under one or more of the following designated loan programs:
(A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071 et seq.).
(B) Any educational loan program approved by the Student Aid Commission.
(5) The applicant has agreed to work full time for at least four consecutive years, or on a part-time basis for the equivalent of four full-time years, as a physician assistant in this state and in a designated medically underserved area.
(c) The agreements entered into each year pursuant to subdivision (b) shall be with applicants who need to complete training or coursework in order to become a licensed physician assistant and agree to practice at a site located in an area of the state where unmet priority needs exist for primary care family physicians, as determined by the California Healthcare Workforce Policy Commission. An agreement shall remain valid even if the primary medical care facilities at which the applicant is employed ceases to be listed as a medically underserved area after the applicant is employed there.
(d) A person participating in the program pursuant to this article shall not enter into more than one agreement under this article.
69663.
 (a) The commission shall accept nominations from eligible institutions received pursuant to this article.
(b) The commission shall choose from among those nominations of students enrolled at least half time in a physician assistant program with outstanding student loans, based upon criteria that may include, but not necessarily be limited to, all of the following:
(1) Length of time remaining in physician assistant program.
(2) Grade point average in physician assistant program.
(3) Number of graduate and undergraduate degrees the applicant has obtained.
69664.
 On January 1, 2009, and each January 1 thereafter, the California Healthcare Workforce Policy Commission shall furnish the commission with both of the following:
(a) A list of medically underserved areas.
(b) A list of eligible schools that qualify for this program.
69665.
 The commission shall commence loan assumption payments, as specified in Section 69666, upon verification that the participant has fulfilled all of the following:
(a) The participant has become a physician assistant licensed to practice in California.
(b) The participant has provided the equivalent of full-time employment as a physician assistant in a designated medically underserved area.
(c) The participant has met the requirements of the agreement and all other applicable conditions of this article.
69666.
 (a) The terms of a loan assumption granted under this article shall be as follows, subject to the specific terms of each agreement:
(1) After a program participant has completed one year of full-time employment pursuant to Section 69665, the commission shall assume up to five thousand dollars ($5,000) of the participant’s outstanding liability under one or more of the designated educational loan programs.
(2) After a program participant has completed two consecutive years of full-time employment pursuant to Section 69665, the commission shall assume up to an additional five thousand dollars ($5,000) of the participant’s outstanding liability under one or more of the designated educational loan programs, for a total loan assumption of up to ten thousand dollars ($10,000).
(3) After a program participant has completed three consecutive years of full-time employment pursuant to Section 69665, the commission shall assume up to a maximum of an additional five thousand dollars ($5,000) of the participant’s outstanding liability under one or more of the designated educational loan programs, for a total loan assumption of up to fifteen thousand dollars ($15,000).
(4) After a program participant has completed four consecutive years of full-time employment pursuant to Section 69665, the commission shall assume up to a maximum of an additional five thousand dollars ($5,000) of the participant’s outstanding liability under one or more of the designated educational loan programs, for a total loan assumption of up to twenty thousand dollars ($20,000).
(b) The commission may assume liability for loans approved by the commission and disbursed prior to the date of the program participant being licensed as a physician assistant.
(c) Loans with the highest interest rate shall be given assumption priority, then loans with the earliest deadlines, and then all other loans.
(d) The term of the loan assumption agreement shall be not more than 10 years from the date on which the agreement was executed by the program participant and the commission.
(e) A grace period for loan assumption under this program shall be established, as determined necessary by the commission, in consultation with the community of health professionals and representatives of the Health Professions Education Foundation, Physician Assistant Committee of the Medical Board of California, and the California Academy of Physician Assistants.
69667.
 (a) Except as provided in subdivision (b), if a program participant fails to complete a minimum of four consecutive years of service as a physician assistant on a full-time basis or the equivalent on a part-time basis in a medically underserved area of the state as required by this article, under the terms of the agreement pursuant to paragraph (5) of subdivision (b) of Section 69662, the participant shall assume full liability for all student loan obligations remaining after the commission’s assumption of loan liability for the last year of qualifying service pursuant to Section 69662.
(b) Notwithstanding subdivision (a), a program participant shall be excused from the consecutive years of service requirement for a period not to exceed one calendar year, unless approved by the commission for a longer period, if a program participant becomes unable to complete one of the four consecutive years of service as a physician assistant on a full-time basis or the equivalent on a part-time basis due to any of the following:
(1) Serious illness, pregnancy, or other natural causes.
(2) The participant is called to military active duty status.
(3) A natural disaster prevents a program participant from maintaining half-time enrollment due to the interruption of instruction at the eligible institution.
(c) The commission shall make no further payments under the loan assumption agreement until the applicable service requirements specified in Section 69665 have been satisfied.
69668.
 The commission shall encourage physician assistant education programs in the state, whose students are eligible under this program, to distribute applications for loan assumption and refer them to the commission for selection.
69669.
 The commission shall administer this article and shall adopt rules and regulations for that purpose. In developing those rules and regulations, the commission shall solicit the advice of representatives of the Health Professions Education Foundation, Physician Assistant Committee of the Medical Board of California, and the California Academy of Physician Assistants. The rules and regulations shall include, but need not be limited to, the development of projections for funding purposes. The commission shall adopt initial regulations for the program within 12 months of the appropriation of operational funds for the program.
69670.
 On or before January 1, 2012, and annually thereafter, the commission shall submit a report to the Legislature. The report shall include all of the following:
(a) The number of participants in the program.
(b) The locations where the participants practice or attend school.
(c) The amount expended for the program’s operation and the amount collected in donations for the program.
On or before January 1, 2013, the Legislative Analyst’s Office, in consultation with the Health Professions Education Foundation, Physician Assistant Committee of the Medical Board of California, and the California Academy of Physician Assistants, shall submit a report to the Legislature that describes the experience of the program since its inception, evaluates its effectiveness in improving access to health care for underserved populations, and makes recommendations for maintaining or expanding its operation regarding all of the following:
69671.
 (a) The approximate number of students enrolled in each physician assistant education program in the state.
(b) The approximate number of students who graduate annually from each physician assistant education program in the state.
(c) The average tuition and other associated expenses incurred by students who complete a physician assistant education program in the state.
(d) The average educational debt of a student who completes a physician assistant program in the state.
(e) The average salary range of a physician assistant employed in the state.
(f) Any other information that the Legislative Analyst’s Office deems necessary to prepare an accurate report on the effectiveness of the program.
69672.
 (a) The California Physician Assistant Loan Assumption Program Fund is hereby established in the State Treasury.
(b) The commission shall accept private funds that are offered to the commission to support the mission or operation of the program.
(c) Private or public funds made available for purposes of the program shall be deposited into the fund. Upon appropriation by the Legislature, moneys in the fund shall be available for expenditure by the commission for purposes of implementing the program pursuant to this article.
(d) The commission shall be under no obligation to administer the program under this article until sufficient moneys have been accumulated in the fund and appropriated to the commission by the Legislature.
69673.
 This article shall be implemented only to the extent that sufficient moneys are available to administer the program.
69674.
 (a) Commencing with the 2009–10 fiscal year, the commission shall issue loan assumption agreements for up to 100 student loans for program participants eligible under this article.
(b) Priority for these agreements shall be given to applicants who have obtained a probationary license but have not graduated from a physician assistant program.
(c) The issuance of loan assumption agreements under this article in any fiscal year shall be subject to the provision of funding in the annual Budget Act.
69675.
 This article shall remain in effect only until January 1, 2014, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2014, deletes or extends that date.