Report Title:

Loan Incentives; Rural Areas; Health Professionals

 

Description:

Establishes interest-free home purchase loan programs for physicians and advanced practice registered nurses as incentives to work in hard-to-staff rural areas.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

265

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to loans for health professionals.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Chapter 321, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§321-     Loans to health professionals; rural areas; rural area health professionals loan fund.  (a)  The department of health shall establish a loan program to provide interest-free home purchase loans to qualified health professionals.

     (b)  Loans made under this section shall be interest-free and used by the qualified health professional exclusively for the purchase of a home, including an apartment, townhouse, and condominium in the State.  In addition, loans made under this section shall be:

     (1)  Repaid with a payment plan specified by the department; provided that additional payments in any sums, or the payment of the entire principal, may be made at any time within the term of the loan;

     (2)  Secured in a manner to be determined by the department; and

     (3)  Subject to penalties for delinquency or late payments as specified by the department, including penalties under subsection (c).

The department shall negotiate the terms and conditions of each loan to ensure that each loan complies with this section.

     (c)  If at any time during the term of a loan, a qualified health professional receiving the loan fails to comply with the requirements established in the definition of "qualified health professional" under this section, the loan shall be considered forfeited and all principal amounts outstanding, plus penalties, shall become due and payable.  If the principal amount outstanding and penalties are not remitted, the department may initiate foreclosure proceedings on the home purchased through the proceeds from the loan.  This subsection shall not apply in cases where the qualified health professional fails to comply with the requirements because of circumstances beyond the qualified health professional's control, as determined by the department.

     (d)  Loans provided under this section shall not exceed $       per qualified health professional.  Each qualified health professional shall receive no more than one loan under this section.

     (e)  There is established in the state treasury a special fund to be known as the rural area health professionals loan fund.  The fund shall be administered by the department pursuant to this section.  The rural area health professionals loan fund shall be funded by:

     (1)  Legislative appropriations;

     (2)  Federal funds, if available; and

     (3)  All principal payments, fees, penalties, and any other proceeds derived by the department pursuant to this section.

     (f)  For the purposes of this section:

     "Qualified health professional" means a licensed physician or an advanced practice registered nurse working at least forty hours per week in a qualified rural area health facility who fulfills the eligibility requirements, if any, specified under subsection (g).

     "Qualified rural health facility" means a public or private hospital, medical clinic, or physician's office that:

     (1)  Has demonstrated difficulty in hiring and retaining licensed physicians or advanced practice registered nurses, according to standards and criteria specified by the department; and

     (2)  Is located in a rural area that is characterized by a low population density and the absence of "city-like" concentration of structures, streets, and urban services; provided that the department may establish more specific criteria and standards to further define "rural area".

     (g)  The department shall adopt rules in accordance with chapter 91 to carry out the purpose of this section, including rules establishing eligibility requirements for health professionals applying for loans under this section."

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2009-2010 and the same sum or so much thereof as may be necessary for fiscal year 2010-2011 to be deposited into the rural area health professionals loan fund.

     The sums appropriated shall be expended by the department of budget and finance for the purposes of this Act.

     SECTION 3.  There is appropriated out of the rural area health professionals loan fund the sum of $           or so much thereof as may be necessary for fiscal year 2009-2010 and the same sum or so much thereof as may be necessary for fiscal year 2010-2011 to be used for the purposes of the rural area health professionals loan fund.

     The sums appropriated shall be expended by the department of health for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2009.

 

INTRODUCED BY:

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