UNAPPROVED DRAFT BILL -- Subject to Change Without Notice!
BILL NO.
INTRODUCED BY
(Primary Sponsor)
A BILL FOR AN ACT ENTITLED: "AN ACT CREATING A HEALTH PROFESSIONAL LOAN FORGIVENESS PROGRAM; ESTABLISHING A STATUTORY APPROPRIATION FOR THE HEALTH PROFESSIONAL LOAN FORGIVENESS PROGRAM; AMENDING SECTION 17-7-502, MCA; AND PROVIDING AN EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 17-7-502, MCA, is amended to read:
"17-7-502. Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.
(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:
(a) The law containing the statutory authority must be listed in subsection (3).
(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.
(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 5-11-407; 5-13-403; 10-2-603; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-1-111; 15-1-113; 15-1-121; 15-23-706; 15-31-906; 15-35-108; 15-36-332; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 15-70-369; 15-70-601; 16-11-509; 17-3-106; 17-3-212; 17-3-222; 17-3-241; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-404; 19-6-410; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 19-20-604; 20-8-107; 20-9-534; 20-9-622; [section 6]; 20-26-1503; 22-3-1004; 23-4-105; 23-4-202; 23-4-204; 23-4-302; 23-4-304; 23-5-306; 23-5-409; 23-5-612; 23-7-301; 23-7-402; 37-43-204; 37-51-501; 39-71-503; 41-5-2011; 42-2-105; 44-1-504; 44-12-206; 44-13-102; 50-4-623; 53-1-109; 53-6-703; 53-24-108; 53-24-206; 60-11-115; 61-3-415; 69-3-870; 75-1-1101; 75-5-1108; 75-6-214; 75-11-313; 77-2-362; 80-2-222; 80-4-416; 80-5-510; 80-11-518; 82-11-161; 87-1-513; 90-1-115; 90-1-205; 90-3-1003; and 90-9-306.
(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to Ch. 422, L. 1997, the inclusion of 15-1-111 terminates on July 1, 2008, which is the date that section is repealed; pursuant to sec. 10, Ch. 360, L. 1999, the inclusion of 19-20-604 terminates when the amortization period for the teachers' retirement system's unfunded liability is 10 years or less; pursuant to sec. 4, Ch. 497, L. 1999, the inclusion of 15-38-202 terminates July 1, 2014; pursuant to sec. 10(2), Ch. 10, Sp. L. May 2000, and secs. 3 and 6, Ch. 481, L. 2003, the inclusion of 15-35-108 terminates June 30, 2010; pursuant to sec. 7, Ch. 314, L. 2005, the inclusion of 23-4-105, 23-4-202, 23-4-204, 23-4-302, and 23-4-304 becomes effective July 1, 2007; and pursuant to sec. 17, Ch. 593, L. 2005, the inclusion of 15-31-906 terminates January 1, 2010.)"
NEW SECTION. Section 2. Health professional loan forgiveness program. There is a health professional loan forgiveness program administered through the office of the commissioner of higher education. The program must provide for the direct repayment of educational loans of eligible health professionals in accordance with [sections 2 through 6].
NEW SECTION. Section 3. Definitions. For purposes of [sections 2 through 6], unless the context requires otherwise, the following definitions apply:
(1) "Educational loans" means all loans made pursuant to a federal loan program, except federal PLUS loans, as provided in 20 U.S.C. 1078-2.
(2) "Federal loan program" means educational loans authorized by 20 U.S.C. 1071, et seq., 20 U.S.C. 1087a, et seq., and 20 U.S.C. 1087aa, et seq.
(3) "Health professional" means a person who:
(a) resides in Montana;
(b) is licensed by the state to engage in the practice of medicine, dentistry, osteopathy, podiatry, or optometry or a licensed practical nurse, registered nurse, or certified advanced practice registered nurse as defined in 37-8-102; and
(c) practices a profession referred to in subsection (3)(b) in Montana.
NEW SECTION. Section 4. Loan repayment assistance. Loan repayment assistance may be provided on behalf of a qualified health professional who has an educational loan, which is not in default, with a minimum unpaid current balance of at least $3,000 at the time of the application.
NEW SECTION. Section 5. Loan repayment assistance documentation. (1) A qualified health professional shall submit an application for loan repayment assistance to the commissioner of higher education in accordance with adopted policies and procedures. The application must include official verification or proof of the applicant's total unpaid accumulated educational loan debt and other documentation required by the commissioner of higher education that is necessary for verification of the applicant's eligibility.
(2) A qualified health professional is eligible for loan repayment assistance for up to a maximum of 3 consecutive years. The total annual loan repayment assistance for an eligible health professional may not exceed $3,000, and the total loan repayment assistance for an individual may not exceed $9,000. The commissioner of higher education may require an eligible health professional to provide documentation that the health professional has exhausted repayment assistance from other federal, state, or local loan forgiveness, discharge, or repayment incentive programs.
(3) The commissioner of higher education may remit payment of the loan on behalf of the qualified health professional in accordance with the requirements of [sections 2 through 6] and policies and procedures adopted by the commissioner of higher education.
(4) The commissioner of higher education shall provide loan repayment assistance to qualified applicants in the order received. Loan repayment assistance may not exceed the amount of available funding. The commissioner of higher education may use up to 3% of available funds for the administration of the loan repayment assistance program.
NEW SECTION. Section 6. Funding -- priorities. (1) If the funding for [sections 2 through 6] in any year is less than the total amount for which health professionals qualify, the commissioner of higher education shall provide loan repayment assistance to qualified applicants in the order in which applications are received.
(2) [Sections 2 through 6] may not be construed to require the provisions of loan repayment assistance without an express appropriation for that purpose. [Sections 2 through 6] may not be construed to require loan repayment assistance for fiscal years prior to [the effective date of this act].
(3) Funding for the health professional loan forgiveness program is statutorily appropriated, as provided in 17-7-502, from the general fund to the commissioner of higher education for distribution to qualified health professionals in an amount not to exceed $1 million each fiscal year.
NEW SECTION. Section 7. Codification instruction. [Sections 2 through 6] are intended to be codified as an integral part of Title 20, chapter 26, and the provisions of Title 20, chapter 26, apply to [sections 2 through 6].
NEW SECTION. Section 8. Effective date. [This act] is effective July 1, 2007.
- END -
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