Chapter 357 Oregon Laws 2005

AN ACT

SB 404

Relating to Rural Health Services Program; creating new provisions; amending ORS 442.550, 442.555 and 442.560; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 442.555 is amended to read:

442.555. (1) There is created the Rural Health Services Program, to be administered by the Oregon Student Assistance Commission, pursuant to rules adopted by the commission. The purpose of the program is to provide loan repayments on behalf of physicians, physician assistants, pharmacists and nurse practitioners who agree to practice in a rural hospital as defined in ORS 442.470, in a rural health clinic, in a medically underserved rural community in Oregon as determined in subsection (4) of this section or in a pharmacy that is located in a medically underserved rural community in Oregon or a federally designated health professional shortage area and that is not part of a group of six or more pharmacies under common ownership.

(2) To be eligible to participate in the program, a prospective physician, physician assistant, pharmacist or nurse practitioner shall submit a letter of interest to the commission. Applicants who are selected for participation according to criteria adopted by the commission in consultation with the Office of Rural Health shall sign a letter of agreement stipulating that the applicant agrees to abide by the terms stated in ORS 442.560.

(3) Subject to available resources, the commission may enter into agreements with not to exceed 10 prospective physicians, 10 prospective physician assistants, 10 prospective pharmacists and 10 prospective nurse practitioners each year.

(4) The Office of Rural Health shall adopt criteria to be applied to determine medically underserved communities for purposes of ORS [316.143, 316.144, 316.146, 353.450, 442.470, 442.503,] 442.550 to 442.570 and for the purposes of compliance with federal Public Law 95-210, establishing rural health clinics.

SECTION 2. ORS 442.560 is amended to read:

442.560. (1) Prospective physicians, physician assistants, pharmacists and nurse practitioners who wish to participate in the Rural Health Services Program shall agree that:

[(1)] (a) For each year of medical, physician assistant, pharmacy or graduate school, the applicant designates an agreed amount, not to exceed $25,000, as a qualifying loan subject to ORS [316.143, 316.144, 316.146, 353.450, 442.470, 442.503 and] 442.550 to 442.570.

[(2)] (b) In the five years following the completion of all residency requirements or the five years following the execution of a Rural Health Services agreement with the Oregon Student Assistance Commission, whichever comes later, a physician agrees to practice for at least three full years in a rural hospital as defined in ORS 442.470, in a rural health clinic or in a medically underserved rural community in Oregon.

[(3)] (c) For not less than three nor more than five years that a physician serves in a rural hospital as defined in ORS 442.470, in a rural health clinic or in a medically underserved rural [area] community, the [Oregon Student Assistance] commission shall annually pay an amount equal to 20 percent of the total of all qualifying loans made to the physician through the programs described in ORS 442.550.

[(4)] (d) In the four years following the completion of physician assistant or graduate school or the four years following the execution of a Rural Health Services agreement with the commission, whichever comes later, a physician assistant or nurse practitioner agrees to practice for at least two years in a rural hospital as defined in ORS 442.470, in a rural health clinic or in a medically underserved rural community in Oregon.

[(5)] (e) For not less than two nor more than four years that a physician assistant or nurse practitioner practices in a rural hospital as defined in ORS 442.470, in a rural health clinic or in a medically underserved rural [area] community, the commission shall annually pay an amount equal to 25 percent of the total of all qualifying loans made to the physician assistant or nurse practitioner through the programs described in ORS 442.550.

(f) In the five years following the completion of all pharmacy residency requirements or the five years following the execution of a Rural Health Services agreement with the commission, whichever comes later, a pharmacist agrees to practice for at least three full years in a rural hospital as defined in ORS 442.470, in a rural health clinic, in a medically underserved rural community in Oregon or in a pharmacy that is located in a medically underserved rural community in Oregon or a federally designated health professional shortage area and that is not part of a group of six or more pharmacies under common ownership.

(g) For not less than three nor more than five years that a pharmacist serves in a rural hospital as defined in ORS 442.470, in a rural health clinic, in a medically underserved rural community or in a pharmacy that is located in a medically underserved rural community or a federally designated health professional shortage area and that is not part of a group of six or more pharmacies under common ownership, the commission shall annually pay an amount equal to 20 percent of the total of all qualifying loans made to the pharmacist through the programs described in ORS 442.550.

[(6)] (2) If the participant does not complete the full service obligation set forth in subsection [(2) or (4)] (1)(b), (d) or (f) of this section, the commission shall collect 100 percent of any payments made by the commission to the participant under this program. In addition, a penalty equal to 50 percent of the qualifying loans and interest paid by the commission shall be assessed by the commission, to be credited to and deposited in the Rural Health Services Fund established under ORS 442.570.

[(7)] (3) The Oregon Student Assistance Commission, in consultation with the Office of Rural Health, shall establish rules to allow waiver of all or part of the fees and penalties owed to the commission due to circumstances that prevent the participant from fulfilling the service obligation.

SECTION 3. ORS 442.550 is amended to read:

442.550. As used in ORS 442.550 to 442.570:

(1) “Commission” means the Oregon Student Assistance Commission.

(2) “Nurse practitioner” means any person who is licensed under ORS 678.375.

(3) “Pharmacist” means any person licensed as a pharmacist under ORS chapter 689.

[(3)] (4) “Physician” means any person licensed to practice medicine under ORS chapter 677.

[(4)] (5) “Physician assistant” means any [such] person licensed under ORS 677.495 and 677.505 to 677.525.

[(5)] (6) “Qualifying loan” means any loan made to a medical student, physician assistant student, pharmacy student or nursing student under:

(a) Common School Fund loan program under ORS 348.040 to 348.090;

(b) Programs under Title IV parts B, D and E, of the Higher Education Act of 1965, as amended; and

(c) The Health Professions Student Loan, Nursing Student Loan, Health Education Assistance Loan and Primary Care Loan programs administered by the United States Department of Health and Human Services.

SECTION 4. The amendments to ORS 442.550, 442.555 and 442.560 by sections 1 to 3 of this 2005 Act apply to applicants who submit a letter of interest to the Oregon Student Assistance Commission on or after the effective date of this 2005 Act.

SECTION 5. This 2005 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2005 Act takes effect July 1, 2005.

Approved by the Governor June 29, 2005

Filed in the office of Secretary of State June 29, 2005

Effective date July 1, 2005

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