senate Bill S1318

Enhances enforcement of primary care physician loan and scholarship programs

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 09 / Jan / 2013
    • REFERRED TO HEALTH
  • 08 / Jan / 2014
    • REFERRED TO HEALTH

Summary

Enhances enforcement of primary care physician loan and scholarship programs by authorizing the commissioner of health to initiate proceedings to suspend the license of a loan repayment award or scholarship recipient who has failed to provide the required primary care service in an underserved area; also authorizes the commissioner to report the amount of such award or scholarship to the department of taxation and finance as income of the recipient.

do you support this bill?

Bill Details

Versions:
S1318
Legislative Cycle:
2013-2014
Current Committee:
Senate Health
Law Section:
Public Health Law
Laws Affected:
Amd ยงยง903 & 904, Pub Health L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S3355
2009-2010: S1753

Sponsor Memo

BILL NUMBER:S1318

TITLE OF BILL:
An act
to amend the public health law, in relation to enhanced
enforcement of
the primary care physician loan and scholarship programs

PURPOSE OR GENERAL IDEA OF BILL:
To enforce the provisions of loan and scholarship programs against
doctors who are found to have violated agreements to serve as primary
care physicians in under-served areas in exchange for subsidized
tuition.

SUMMARY OF SPECIFIC PROVISIONS:
Subdivision 4 of section 903 of the public health law as amended by
chapter 639 of the laws of 1996, is amended to state that any loan or
scholarship money shall become due and shall be paid in full upon a
determination that the recipient failed to comply with the conditions
of the program. The Commissioner of Health shall initiate proceedings
that could lead to the suspension of the recipients license to
practice medicine in the State of New York and shall file a report
with the New York State Department of Taxation and Finance indicating
the total amount of a recipient's unearned loan repayment award so
that such award may be considered income for the purpose of article
twenty-two of the tax law.

Section 903 of the public health law is amended by adding a new
subdivision 4-a that states: The recipient of a loan repayment award
shall report annually to the NYS Higher Education Services
Corporation as to the performance of the required services, beginning
with the calendar year in which the recipient begins to provide
primary care services in an under served area and continuing until
the recipient completes, or until it is determined that he or she is
not obligated to complete, the required service. If the recipient
fails to file any required report within 30 days of written notice,
the president of HESC may impose a fine of up to $5,000. The
president shall have the discretion to waive the filing of a report,
excuse a delay in filing or failure to report, or waive or reduce any
fine imposed for good cause.

Every two years when the recipient of an award registers with the NYS
Education Department's Division of Professional Licensing, as
required by law, he or she shall file a report as to the performance
of the required services.

Subdivisions 6 and 7 of section 904 of the public health law, as
amended by chapter 255 of the laws of 1994, are amended to address if
the recipient fails to comply fully with such conditions, a formula
is provided for determining the repayment of all or part of the
loan/scholarship
which is due and shall be paid in full upon a determination that the
recipient failed to comply with the service condition.

The Commissioner of Public Health shall promulgate regulations
necessary to effectuate the provisions and purposes of this section.


JUSTIFICATION:
This legislation was drafted as a result of a large number of
"deadbeat doctors" who graduated from the Sophie B. Davis School of
Biomedical Education of the City university of New York, It has been
estimated that as many as one third of the participants have failed
to fulfill their public service commitments. As a stipulation of the
loan/scholarship they are required to serve for two years as a
primary care physician in an under served urban neighborhood. Each
participant signs an agreement in which he or she acknowledges an
obligation to repay the cost of medical education that has been
subsidized by the taxpayers. If the student has failed to meet the
public service requirements, the city and state are to be reimbursed
for the actual cost of the education. It also states in the agreement
that the student understands that failure to serve or repay the
obligation shall be "considered by the New York State Board of
Regents as unprofessional conduct in the practice of medicine."

These doctors have taken the benefits of a state subsidized medical
education and ignored their obligations. At a time when the state's
resources are stretched to the breaking point the violators of this
program should be forced to make financial restitution. The
individual tuition subsidies range from a minimum of $25,000 to as
much as $75,000 and the state could recoup up to $10 million from
these doctors.

Many of the physicians are believed to have opened offices in affluent
communities or are practicing as specialists for substantially higher
fees than are available in primary care treatment. Individuals who
were helped to become doctors through an enlightened
taxpayer-supported program have shown hypocritical indifference to
their legal and ethical obligations.

PRIOR LEGISLATIVE HISTORY: Previously introduced.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law, except that any rule or regulation necessary
for the timely implementation of this act shall be promulgated on or
before such date.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1318

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Health

AN ACT to amend the public health law, in relation to enhanced  enforce-
  ment of the primary care physician loan and scholarship programs

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 4 of section 903 of the public health  law,  as
amended  by  chapter  639  of  the  laws  of 1996, is amended to read as
follows:
  4. Within such time as the commissioner shall by regulation provide, a
recipient of an award shall have practiced as a primary  care  physician
in  an  underserved  area  in the state of New York or, in the case of a
recipient of an award after completion of residency training, the recip-
ient shall have practiced in an underserved  area  for  that  number  of
months  calculated  by multiplying by twelve the number of annual awards
received by the recipient. If a recipient fails  to  comply  fully  with
such conditions[,]:
  (A)  the president shall be entitled to receive from such recipient an
amount to be determined by the formula:

                                    A = 2B(t-s)
                                          -----
                                             t

In which "A" is the amount the president is entitled to recover, "B"  is
the  sum  of all payments made to the recipient and the interest on such
amount which would be payable if at the times such awards were paid they
were loans bearing interest at the maximum prevailing rate; "t"  is  the
total  number of months in the recipient's period of obligated services;
and "s" is the number of months of services  actually  rendered  by  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04278-01-3

S. 1318                             2

recipient.  Any  amount which the president is entitled to recover under
this subdivision SHALL BECOME DUE AND shall be paid  [within  the  five-
year period beginning on the date] IN FULL UPON A DETERMINATION that the
recipient failed to comply with this condition. Any obligation to comply
with  such provisions shall be canceled upon the death of the recipient.
The commissioner [of health] shall promulgate regulations to provide for
the waiver or suspension of any  financial  obligation  when  compliance
would involve extreme hardship;
  (B)  THE COMMISSIONER SHALL INITIATE PROCEEDINGS FOR THE SUSPENSION OF
THE RECIPIENT'S LICENSE TO PRACTICE MEDICINE IN THE STATE OF NEW YORK;
  (C) THE COMMISSIONER SHALL FILE A  REPORT  WITH  THE  NEW  YORK  STATE
DEPARTMENT  OF  TAXATION  AND  FINANCE  INDICATING THE TOTAL AMOUNT OF A
RECIPIENT'S UNEARNED LOAN REPAYMENT AWARD SO  THAT  SUCH  AWARD  MAY  BE
CONSIDERED INCOME FOR THE PURPOSE OF ARTICLE TWENTY-TWO OF THE TAX LAW.
  S  2.  Section 903 of the public health law is amended by adding a new
subdivision 4-a to read as follows:
  4-A. (A) A RECIPIENT OF A LOAN REPAYMENT AWARD SHALL  REPORT  ANNUALLY
TO  THE  NEW  YORK STATE HIGHER EDUCATION SERVICES CORPORATION, ON FORMS
PRESCRIBED BY THE PRESIDENT, AS  TO  THE  PERFORMANCE  OF  THE  REQUIRED
SERVICES,  COMMENCING  WITH  THE  CALENDAR  YEAR  IN WHICH THE RECIPIENT
BEGINS TO PROVIDE PRIMARY CARE  SERVICES  IN  AN  UNDERSERVED  AREA  AND
CONTINUING  UNTIL  THE  RECIPIENT  SHALL  HAVE COMPLETED, OR UNTIL IT IS
DETERMINED THAT HE OR SHE  SHALL  NOT  BE  OBLIGATED  TO  COMPLETE,  THE
REQUIRED  SERVICES.  IF  THE  RECIPIENT  SHALL  FAIL  TO FILE ANY REPORT
REQUIRED HEREUNDER WITHIN THIRTY DAYS OF WRITTEN NOTICE TO  THE  RECIPI-
ENT, MAILED TO THE ADDRESS SHOWN ON THE LAST APPLICATION FOR AN AWARD OR
LAST  REPORT FILED, WHICHEVER IS LATER, THE PRESIDENT OF THE CORPORATION
MAY IMPOSE A FINE OF UP TO FIVE THOUSAND DOLLARS.  THE  PRESIDENT  SHALL
HAVE  THE  DISCRETION TO WAIVE THE FILING OF A REPORT, EXCUSE A DELAY IN
FILING OR A FAILURE TO FILE A  REPORT,  OR  WAIVE  OR  REDUCE  ANY  FINE
IMPOSED FOR GOOD CAUSE SHOWN.
  (B)  IN  ADDITION TO THE REPORTING REQUIREMENTS SET FORTH IN PARAGRAPH
(A) OF THIS SUBDIVISION, A RECIPIENT OF AN AWARD  SHALL  SUBMIT  TO  THE
DEPARTMENT  AT EACH BIENNIAL REGISTRATION PERIOD PROVIDED IN SUBDIVISION
EIGHT OF SECTION SIXTY-FIVE HUNDRED TWENTY-FOUR OF THE EDUCATION LAW,  A
REPORT AS TO THE PERFORMANCE OF THE REQUIRED SERVICES.
  S  3. Subdivisions 6 and 7 of section 904 of the public health law, as
amended by chapter 255 of the laws of  1994,  are  amended  to  read  as
follows:
  6. If a recipient fails to comply fully with such conditions[,]:
  (A)  the president shall be entitled to receive from such recipient an
amount to be determined by the formula:

                               A = 2B(t-s)
                                  -----
                                    t
in which "A" is the amount the president is entitled to recover, "B"  is
the  sum  of  all  awards made to the recipient and the interest on such
amount which would be payable if at the times such awards were paid they
were loans bearing interest at the maximum prevailing rate; "t"  is  the
total  number of months in the recipient's period of obligated services;
and "s" is the number of months of  service  actually  rendered  by  the
recipient.  Any  amount which the president is entitled to recover under
this [paragraph] SUBDIVISION SHALL BECOME DUE AND shall be paid  [within
the five-year period beginning on the date] IN FULL UPON A DETERMINATION
that the recipient failed to comply with this service condition. Nothing

S. 1318                             3

in  the  written  agreement  shall affect the terms of employment of the
individual who shall negotiate, separate and apart from the program, his
or her salary and other forms of employment with an agency,  institution
or  a  program  in  which he or she shall be employed. Any obligation to
comply with such  provisions  as  outlined  in  this  section  shall  be
canceled upon the death of the recipient. The commissioner shall promul-
gate  regulations  to provide for the waiver or suspension of any finan-
cial obligation when compliance would involve extreme hardship;
  (B) THE COMMISSIONER SHALL INITIATE PROCEEDINGS FOR THE SUSPENSION  OF
THE RECIPIENT'S LICENSE TO PRACTICE MEDICINE IN THE STATE OF NEW YORK;
  (C)  THE  COMMISSIONER  SHALL  FILE  A  REPORT WITH THE NEW YORK STATE
DEPARTMENT OF TAXATION AND FINANCE INDICATING  THE  TOTAL  AMOUNT  OF  A
RECIPIENT'S  UNEARNED  LOAN  REPAYMENT  AWARD  SO THAT SUCH AWARD MAY BE
CONSIDERED INCOME FOR THE PURPOSES OF ARTICLE TWENTY-TWO OF THE TAX LAW.
  7. (A) A recipient of an award shall report annually to the  New  York
state  higher education services corporation, on forms prescribed by the
president, as to the performance of the  required  services,  commencing
with  the calendar year in which the recipient begins to provide primary
care services in an underserved area and continuing until the  recipient
shall have completed, or until it is determined that he or she shall not
be  obligated to complete, the required services. If the recipient shall
fail to file any report required hereunder within thirty days of written
notice to the recipient, mailed to the address shown on the last  appli-
cation for an award or last report filed, whichever is later, the presi-
dent  of  the corporation may impose a fine of up to [one] FIVE thousand
dollars. The president shall have the discretion to waive the filing  of
a  report,  excuse  a  delay in filing or a failure to file a report, or
waive or reduce any fine imposed for good cause shown.
  (B) IN ADDITION TO THE REPORTING REQUIREMENTS SET FORTH  IN  PARAGRAPH
(A)  OF  THIS  SUBDIVISION,  A RECIPIENT OF AN AWARD SHALL SUBMIT TO THE
DEPARTMENT AT EACH BIENNIAL REGISTRATION PERIOD PROVIDED IN  SUBDIVISION
EIGHT  OF SECTION SIXTY-FIVE HUNDRED TWENTY-FOUR OF THE EDUCATION LAW, A
REPORT AS TO THE PERFORMANCE OF THE REQUIRED SERVICES.
  S 4. Section 904 of the public health law is amended by adding  a  new
subdivision 9 to read as follows:
  9.  THE  COMMISSIONER, IN CONSULTATION WITH THE COUNCIL, SHALL PROMUL-
GATE REGULATIONS NECESSARY TO EFFECTUATE THE PROVISIONS AND PURPOSES  OF
THIS SECTION.
  S 5. This act shall take effect on the one hundred twentieth day after
it shall have become a law, except that any rule or regulation necessary
for  the  timely  implementation  of this act shall be promulgated on or
before such date.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.