SB-0649, As Passed Senate, March 11, 2014

SUBSTITUTE FOR

SENATE BILL NO. 649

     A bill to amend 1978 PA 368, entitled

"Public health code,"

by amending sections 2707 and 2723 (MCL 333.2707 and 333.2723), as

added by 1990 PA 16.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2707. (1) The department shall administer a grant program

for minority students enrolled in medical schools, dental schools,

nursing programs, or physician's assistant programs. Only minority

students who meet the financial resources eligibility standards for

federal student loan programs under title IV of the higher

education act of 1965, Public Law 89-329, are eligible to receive a

grant under this section.

     (2) The department may award a grant to a minority student

enrolled in a medical school who is training to become a designated

physician, to a minority student enrolled in a dental school who is

training to become a dentist, or to a minority student enrolled in

a nursing program or physician's assistant program. As a condition

for the award of the grant, the recipient of the grant shall enter

into a written contract with the department that requires the

recipient to provide, upon completion of training, full-time health

care services in a health resource shortage area to which he or she

is assigned by the department for a period equal to the number of

years for which a grant is accepted. or 2 years, whichever is

greater. In awarding grants, the department shall give priority to

students who are residents of this state and enrolled in a medical

school, dental school, nursing program, or physician's assistant

program in this state.

     (3) The department shall determine an appropriate grant amount

for each academic year for each health care profession.

     (4) An individual who incurs a service obligation under

subsection (2) and who completes the training program for which the

grant was awarded but fails to fulfill the service obligation shall

repay to the department an amount equal to 2 times the amount of

all grants the individual accepted under this section plus

interest. The interest shall be at a rate determined by the state

treasurer to reflect the cumulative annual percentage change in the

Detroit consumer price index. An individual who incurs a service

obligation under subsection (2) and who fails to complete the

training program for which the grant was awarded shall repay to the

department an amount equal to the actual amount of all grants the

individual accepted under this section. Repayment to the department

under this subsection shall be made within 3 years after the

repayment obligation is incurred. Amounts repaid under this

subsection shall be deposited with the state treasurer and credited

to the minority health profession grant fund created in section

2721.

     (5) An obligated individual shall be considered to have

fulfilled the service obligation incurred under subsection (2) if

any of the following occur:

     (a) Service has been rendered for the obligated period.

     (b) The obligated individual dies.

     (c) The obligated individual is unable, by reason of permanent

disability, to render the service.

     (d) The obligated individual fails to satisfy the academic

requirements for completion of the training program in which he or

she is enrolled after having made a good faith effort.

     (e) The obligated individual fails to satisfy the requirements

for licensure, certification, or other form of authorization to

practice the profession for which he or she has been trained.

     (f) Other circumstances occur that are considered by the

department to constitute a compelling reason to consider the

service obligation fulfilled.

     (6) The department may accept funds for the operation of the

grant program from any source and distribute those funds in a

manner consistent with this section.

     (7) As used in this section, "Detroit consumer price index"

means the most comprehensive index of consumer prices available for

the Detroit area from the bureau of labor statistics of the United

States department of labor.

     Sec. 2723. (1) The department may promulgate rules necessary

for the implementation of the department's functions under this

part.

     (2) The department shall report biennially to the legislature,

the governor, the state health planning council, and the public

health advisory council on the status of the Michigan essential

health provider recruitment strategy for the preceding 2 years. In

addition to the status report, the report shall include, but not be

limited to, all of the following:

     (a) Review of state and federal legislation, rules,

guidelines, and policy directives affecting the health personnel of

health resource shortage areas.

     (b) Recommendations concerning physician specialty areas or

other health professions for inclusion in the Michigan essential

health provider recruitment strategy based upon a determination of

the need for various types of health care providers in this state.

     (c) An assessment of whether the amount of debt or expense

repayment an individual may receive under section 2705(3) is

sufficient to facilitate the placement and retention of designated

professionals in health resource shortages, or whether that maximum

amount should be adjusted to reflect changes in tuition costs for

students enrolled in medical schools, dental schools, nursing

programs, or physician's assistant programs.