69660-69675

EDUCATION CODE
SECTION 69660-69675




69660.  (a) The Legislature finds and declares all of the following:
   (1) There is a growing shortage of physician assistants and there
is a need for qualified physician assistants throughout California.
   (2) The physician assistant shortage is most serious in medically
underserved areas.
   (3) Many medically underserved areas have difficulty recruiting
and retaining high-quality physician assistants.
   (4) The rising costs of higher education, coupled with a shift in
available financial aid from scholarships and grants to loans, make
loan repayment options an important consideration in a student's
decision to pursue a postsecondary education.
   (5) The availability of financial aid and loan repayment
assistance are important considerations for many students in making
their educational decisions.
   (b) It is, therefore, the intent of the Legislature that all of
the following occur:
   (1) The California Physician Assistant Loan Assumption Program be
designed to encourage persons to become licensed physician assistants
and work in medically underserved areas.
   (2) That the enactment of this article accomplish all of the
following:
   (A) Provide outstanding postsecondary students with the assurance
of financial assistance to encourage them to complete a physician
assistant program, obtain a physician assistant license, and seek
employment as a physician assistant in a medically underserved area.
   (B) Provide persons who agree to become licensed physician
assistants with the assurance of financial assistance to encourage
them to complete the additional coursework necessary to become a
licensed physician assistant.
   (C) Identify medically underserved areas.
   (3) All persons eligible to enter into agreements for loan
assumption pursuant to this article be persons who need to complete
training or coursework in order to become a licensed physician
assistant, and who agree to work in a medically underserved area.
   (4) Funding necessary for the administration of this article be
included within the annual budget of the Student Aid Commission in an
amount necessary to meet the student loan obligations incurred by
the commission.



69661.  The California Physician Assistant Loan Assumption Program
is hereby established. The program shall assume the qualifying
educational loans of physician assistants who agree to practice in
designated medically underserved areas, as provided in this article.




69661.5.  For the purposes of this article, the following terms have
the following meanings:
   (a) "Commission" means the Student Aid Commission.
   (b) "Eligible institution" means a postsecondary institution that
is determined by the Student Aid Commission to meet both of the
following requirements:
   (1) The institution is eligible to participate in state and
federal financial aid programs.
   (2) The institution maintains an accredited physician assistant
program.
   (c) "Medically undeserved area" means an area defined as a health
professional shortage area in Part 5 of Subchapter A of Chapter 1 of
Title 42 of the Code of Federal Regulations or an area of the state
where unmet priority needs for physicians exist as determined by the
California Healthcare Workforce Policy Commission pursuant to Section
128225 of the Health and Safety Code.
   (d) "Program" means the California Physician Assistant Loan
Assumption Program.


69662.  (a) Any person enrolled in an eligible institution may be
eligible to enter into an agreement for loan assumption to be
redeemed pursuant to Section 69665 upon becoming employed as a
licensed physician assistant.
   (b) In order to be eligible to enter into an agreement for loan
assumption, an applicant shall satisfy all of the following
conditions:
   (1) The applicant is enrolled in or admitted to a physician
assistant program at an eligible institution.
   (2) The applicant is currently enrolled in a program, or has been
admitted to a program in which he or she will be enrolled, on at
least a half-time basis, as determined by the eligible institution.
The applicant shall agree to maintain satisfactory academic progress
and a minimum of half-time enrollment, as defined by the
participating eligible institution.
   (A) Except as provided in subparagraph (B), if a program
participant fails to maintain half-time enrollment as required by
this article and, under the terms of the agreement pursuant to this
paragraph, the loan assumption agreement shall be deemed invalid. The
participant is excused from the half-time enrollment requirement if
he or she is in his or her final term in school and has no additional
coursework required to become a physician assistant.
   (B) Notwithstanding subparagraph (A), a program participant shall
be excused from the half-time enrollment requirement for a period not
to exceed one calendar year, unless approved by the commission for a
longer period, if a program participant becomes unable to maintain
half-time enrollment due to any of the following:
   (i) Serious illness, pregnancy, or other natural causes.
   (ii) The participant is called to military active duty status.
   (iii) A natural disaster prevents a program participant from
maintaining half-time enrollment due to the interruption of
instruction at the eligible institution.
   (3) The person has submitted an application to participate in the
program and has been recommended by his or her postsecondary
institution to have outstanding ability on the basis of criteria that
may include, but need not be limited to, any of the following:
   (A) Grade point average.
   (B) Test scores.
   (C) Faculty evaluations.
   (D) Interviews.
   (E) Other recommendations.
   (4) The applicant has received, or is approved to receive, a loan
under one or more of the following designated loan programs:
   (A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071
et seq.).
   (B) Any educational loan program approved by the Student Aid
Commission.
   (5) The applicant has agreed to work full time for at least four
consecutive years, or on a part-time basis for the equivalent of four
full-time years, as a physician assistant in this state and in a
designated medically underserved area.
   (c) The agreements entered into each year pursuant to subdivision
(b) shall be with applicants who need to complete training or
coursework in order to become a licensed physician assistant and
agree to practice at a site located in an area of the state where
unmet priority needs exist for primary care family physicians, as
determined by the California Healthcare Workforce Policy Commission.
An agreement shall remain valid even if the primary medical care
facilities at which the applicant is employed ceases to be listed as
a medically underserved area after the applicant is employed there.
   (d) A person participating in the program pursuant to this article
shall not enter into more than one agreement under this article.



69663.  (a) The commission shall accept nominations from eligible
institutions received pursuant to this article.
   (b) The commission shall choose from among those nominations of
students enrolled at least half time in a physician assistant program
with outstanding student loans, based upon criteria that may
include, but not necessarily be limited to, all of the following:
   (1) Length of time remaining in physician assistant program.
   (2) Grade point average in physician assistant program.
   (3) Number of graduate and undergraduate degrees the applicant has
obtained.



69664.  On January 1, 2009, and each January 1 thereafter, the
California Healthcare Workforce Policy Commission shall furnish the
commission with both of the following:
   (a) A list of medically underserved areas.
   (b) A list of eligible schools that qualify for this program.



69665.  The commission shall commence loan assumption payments, as
specified in Section 69666, upon verification that the participant
has fulfilled all of the following:
   (a) The participant has become a physician assistant licensed to
practice in California.
   (b) The participant has provided the equivalent of full-time
employment as a physician assistant in a designated medically
underserved area.
   (c) The participant has met the requirements of the agreement and
all other applicable conditions of this article.



69666.  (a) The terms of a loan assumption granted under this
article shall be as follows, subject to the specific terms of each
agreement:
   (1) After a program participant has completed one year of
full-time employment pursuant to Section 69665, the commission shall
assume up to five thousand dollars ($5,000) of the participant's
outstanding liability under one or more of the designated educational
loan programs.
   (2) After a program participant has completed two consecutive
years of full-time employment pursuant to Section 69665, the
commission shall assume up to an additional five thousand dollars
($5,000) of the participant's outstanding liability under one or more
of the designated educational loan programs, for a total loan
assumption of up to ten thousand dollars ($10,000).
   (3) After a program participant has completed three consecutive
years of full-time employment pursuant to Section 69665, the
commission shall assume up to a maximum of an additional five
thousand dollars ($5,000) of the participant's outstanding liability
under one or more of the designated educational loan programs, for a
total loan assumption of up to fifteen thousand dollars ($15,000).
   (4) After a program participant has completed four consecutive
years of full-time employment pursuant to Section 69665, the
commission shall assume up to a maximum of an additional five
thousand dollars ($5,000) of the participant's outstanding liability
under one or more of the designated educational loan programs, for a
total loan assumption of up to twenty thousand dollars ($20,000).
   (b) The commission may assume liability for loans approved by the
commission and disbursed prior to the date of the program participant
being licensed as a physician assistant.
   (c) Loans with the highest interest rate shall be given assumption
priority, then loans with the earliest deadlines, and then all other
loans.
   (d) The term of the loan assumption agreement shall be not more
than 10 years from the date on which the agreement was executed by
the program participant and the commission.
   (e) A grace period for loan assumption under this program shall be
established, as determined necessary by the commission, in
consultation with the community of health professionals and
representatives of the Health Professions Education Foundation,
Physician Assistant Committee of the Medical Board of California, and
the California Academy of Physician Assistants.



69667.  (a) Except as provided in subdivision (b), if a program
participant fails to complete a minimum of four consecutive years of
service as a physician assistant on a full-time basis or the
equivalent on a part-time basis in a medically underserved area of
the state as required by this article, under the terms of the
agreement pursuant to paragraph (5) of subdivision (b) of Section
69662, the participant shall retain full liability for all student
loan obligations remaining after the commission's assumption of loan
liability for the last year of qualifying service pursuant to Section
69662.
   (b) Notwithstanding subdivision (a), a program participant shall
be excused from the consecutive years of service requirement for a
period not to exceed one calendar year, unless approved by the
commission for a longer period, if a program participant becomes
unable to complete one of the four consecutive years of service as a
physician assistant on a full-time basis or the equivalent on a
part-time basis due to any of the following:
   (1) Serious illness, pregnancy, or other natural causes.
   (2) The participant is called to military active duty status.
   (3) A natural disaster prevents a program participant from
maintaining half-time enrollment due to the interruption of
instruction at the eligible institution.
   (c) The commission shall make no further payments under the loan
assumption agreement until the applicable service requirements
specified in Section 69665 have been satisfied.



69668.  The commission shall encourage physician assistant education
programs in the state, whose students are eligible under this
program, to distribute applications for loan assumption and refer
them to the commission for selection.


69669.  The commission shall administer this article and shall adopt
rules and regulations for that purpose. In developing those rules
and regulations, the commission shall solicit the advice of
representatives of the Health Professions Education Foundation,
Physician Assistant Committee of the Medical Board of California, and
the California Academy of Physician Assistants. The rules and
regulations shall include, but need not be limited to, the
development of projections for funding purposes. The commission shall
adopt initial regulations for the program within 12 months of the
appropriation of operational funds for the program.



69670.  On or before January 1, 2012, and annually thereafter, the
commission shall submit a report to the Legislature. The report shall
include all of the following:
   (a) The number of participants in the program.
   (b) The locations where the participants practice or attend
school.
   (c) The amount expended for the program's operation and the amount
collected in donations for the program.


69671.  On or before January 1, 2013, the Legislative Analyst's
Office, in consultation with the Health Professions Education
Foundation, Physician Assistant Committee of the Medical Board of
California, and the California Academy of Physician Assistants, shall
submit a report to the Legislature that describes the experience of
the program since its inception, evaluates its effectiveness in
improving access to health care for underserved populations, and
makes recommendations for maintaining or expanding its operation
regarding all of the following:
   (a) The approximate number of students enrolled in each physician
assistant education program in the state.
   (b) The approximate number of students who graduate annually from
each physician assistant education program in the state.
   (c) The average tuition and other associated expenses incurred by
students who complete a physician assistant education program in the
state.
   (d) The average educational debt of a student who completes a
physician assistant program in the state.
   (e) The average salary range of a physician assistant employed in
the state.
   (f) Any other information that the Legislative Analyst's Office
deems necessary to prepare an accurate report on the effectiveness of
the program.


69672.  (a) The California Physician Assistant Loan Assumption
Program Fund is hereby established in the State Treasury.
   (b) The commission shall accept private funds that are offered to
the commission to support the mission or operation of the program.
   (c) Private or public funds made available for purposes of the
program shall be deposited into the fund. Upon appropriation by the
Legislature, moneys in the fund shall be available for expenditure by
the commission for purposes of implementing the program pursuant to
this article.
   (d) The commission shall be under no obligation to administer the
program under this article until sufficient moneys have been
accumulated in the fund and appropriated to the commission by the
Legislature.



69673.  This article shall be implemented only to the extent that
sufficient moneys are available to administer the program.



69674.  (a) Commencing with the 2009-10 fiscal year, the commission
shall issue loan assumption agreements for up to 100 student loans
for program participants eligible under this article.
   (b) Priority for these agreements shall be given to applicants who
have obtained a probationary license but have not graduated from a
physician assistant program.
   (c) The issuance of loan assumption agreements under this article
in any fiscal year shall be subject to the provision of funding in
the annual Budget Act.



69675.  This article shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.