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AMENDMENT No. 2 PROPOSED TO

Committee Sub. for HB NO. 729

By Representative(s) Scott(80)

Amend by striking all after the enacting clause and inserting in lieu thereof the following:

SECTION 1. The following shall be codified as Section 37-143-6, Mississippi Code of 1972:

37-143-6. (1) There is established a medical education scholarship program, which shall be administered by the Board of Trustees of State Institutions of Higher Learning. The program shall provide a certain number of eligible applicants each year with a full scholarship to obtain a medical education at the University of Mississippi School of Medicine at no cost to the recipient, if the recipient meets the conditions upon which the scholarship is granted.

(2) The program shall provide scholarships to up to twenty (20) new recipients each year, and the program shall be funded from monies appropriated from the Health Care Expendable Fund established under Section 43-13-407 and from any other funds appropriated to or otherwise made available to the board of trustees for that purpose. The amounts that may be expended annually for scholarships under the program shall not exceed the following: Five Hundred Thousand Dollars ($500,000.00) in fiscal year 2001; One Million Dollars ($1,000,000.00) in fiscal year 2002; One Million Five Hundred Thousand Dollars in fiscal year 2003; and Two Million Dollars ($2,000,000.00) in fiscal year 2004 and in any later fiscal year.

(3) The scholarship shall be in an amount that will pay the full cost of attendance, as defined by federal law and regulation, at the University of Mississippi School of Medicine for the entire time necessary for the recipient to complete the requirements for a medical degree. The actual amount of the scholarship shall be determined by the Office of Financial Aid of the University of Mississippi Medical Center but shall not exceed Twenty Five Thousand Dollars ($25,000.00) per year for any recipient.

(4) Before being granted a scholarship, each applicant shall enter into a contract with the board of trustees, which shall be deemed a contract with the State of Mississippi, agreeing to the terms and conditions upon which the scholarship will be granted. In order to receive a scholarship under the program, the recipient must agree in the contract to practice family medicine for a period of not less than ten (10) years after completion of his or her residency in an area of the state that is a critical needs area for primary medical care at the time of the recipient's entry into medical practice. The determination and designation of the areas of the state that are critical needs areas for primary medical care shall be made by a committee to be known as the Medical Care Critical Needs Committee, which shall be composed of the following persons: the Vice Chancellor for Health Affairs of the University of Mississippi Medical Center, who shall be chairman of the committee; the Executive Director of the State Department of Health; the Executive Director of the Division of Medicaid; the President of the Mississippi State Medical Association or his designee; the President of the Mississippi State Hospital Association or his designee; and the Director of the Mississippi Primary Health Care Association or his designee. The committee shall meet at least once annually to determine and designate the areas of the state that are critical needs areas for primary medical care in which scholarship recipients may practice family medicine in order to fulfill their contractual obligation. In designating those critical needs areas, the committee shall consider, but shall not be limited to, areas that are:

(a) A Group 1 degree-of-shortage health professional shortage area for primary medical care, as designated by the United States Department of Health and Human Services;

(b) Classified as a rural area by the United States Census Bureau; and

(c) Located more than fifty (50) miles from any standard metropolitan statistical area, as defined and established by the United States Census Bureau, and from any incorporated municipality having a population of twenty-five thousand (25,000) or more, according to the most recent federal decennial census.

(5) If a scholarship recipient leaves the University of Mississippi School of Medicine before graduation, or leaves his or her residency before completion, or fails to practice family medicine for a period of ten (10) years in a critical needs area for primary medical care as designated by the Medical Care Critical Needs Committee under subsection (4) of this section, the full amount that the recipient received under the scholarship shall be due and payable within ninety (90) days, together with interest. The amount of interest due shall be equal to the annual rate of return on the Health Care Trust Fund established under Section 43-13-405 for each year from the time the recipient received the scholarship money until the time the scholarship money is repaid. The board of trustees may bring suit against any scholarship recipient to recover the amount due to the state under this section for the recipient's failure to comply with the conditions upon which the scholarship was granted, as provided in this section and in the contract between the recipient and the board of trustees. The board of trustees is authorized to postpone or forgive the repayment of all or part of the amount that a recipient received under the scholarship and the interest that would otherwise be due under this subsection if the recipient's failure to comply with the conditions upon which the scholarship was granted was due to circumstances beyond the recipient's control that caused the recipient to be physically unable to comply with those conditions, such as suffering a severe illness, injury or other disabling condition.

(6) The board of trustees shall establish such rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.

SECTION 2. (1) The Board of Trustees of State Institutions of Higher Learning shall prescribe rules and regulations which, subject to available appropriations, provide for reimbursement to licensed physicians who practice family medicine in a critical needs area for primary medical care as designated by the Medical Care Critical Needs Committee under subsection (4) of Section 37-143-6, for the expenses of moving when the employment necessitates the relocation of the physician or his family to a different geographical area than that in which the physician resides. If the reimbursement is approved, the board of trustees shall provide funds to reimburse the physician an amount not to exceed One Thousand Dollars ($1,000.00) for the documented actual expenses incurred in the course of relocating, including the expense of any professional moving company or persons employed to assist with the move, rented moving vehicles or equipment, mileage in the amount authorized for state employees under Section 25-3-41 if the physician used his personal vehicle for the move, meals and such other expenses associated with the relocation in accordance with the established rules and regulations.

(2) The Board of Trustees of State Institutions of Higher Learning shall prescribe rules and regulations which, subject to available appropriations, provide for reimbursement to licensed physicians who practice family medicine in a critical needs area for primary medical care as designated by the Medical Care Critical Needs Committee under subsection (4) of Section 37-143-6, for the direct expenses associated with starting a full-time medical practice, including the cost of building, lease payments, equipment purchases, furniture, medical supplies and medical malpractice insurance associated with a family practice. If the reimbursement is approved, the board of trustees shall provide funds to reimburse the physician an amount not to exceed Twenty Thousand Dollars ($20,000.00) over a two-year period for the documented actual expenses incurred in starting the physician's practice.

(3) The Board of Trustees of State Institutions of Higher Learning shall prescribe rules and regulations which, subject to available appropriations, provide for income subsidies for licensed physicians who practice family medicine full time in a critical needs area for primary medical care as designated by the Medical Care Critical Needs Committee under subsection (4) of Section 37-143-6, to recognize the reduced earning capacity associated with practicing in a rural area. If the income subsidy is approved, the board of trustees shall provide funds to compensate the physician in an amount not to exceed Twenty Thousand Dollars ($20,000.00) annually for two (2) years.

SECTION 3. (1) Any licensed physician who practices family medicine full time in any critical needs area for primary medical care as designated by the Medical Care Critical Needs Committee under subsection (4) of Section 37-143-6 shall be allowed a credit against the taxes imposed by this chapter in an amount equal to fifty percent (50%) of the physician's income tax liability that results from income derived from his or her practice in any such critical needs area. The credit shall be allowed for a maximum of ten (10) years for all family medicine practice in any such critical needs areas in which the physician practices during his or her career.

(2) Subsection 1 of this section shall be codified as a new section in Article 1, Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 4. This act shall take effect and be in force from and after July 1, 2000, except that Section 3 of this act shall take effect and be in force from and after January 1, 2000.

Further, amend by striking the title in its entirety and inserting in lieu thereof the following:

AN ACT TO CREATE NEW SECTION 37-143-6, MISSISSIPPI CODE OF 1972, TO ESTABLISH A MEDICAL EDUCATION SCHOLARSHIP PROGRAM TO PROVIDE UP TO 20 NEW RECIPIENTS EACH YEAR WITH A FULL SCHOLARSHIP TO OBTAIN A MEDICAL EDUCATION AT THE UNIVERSITY OF MISSISSIPPI SCHOOL OF MEDICINE AT NO COST; TO PROVIDE THAT THE PROGRAM SHALL BE ADMINISTERED BY THE BOARD OF TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNING; TO PROVIDE THAT THE PROGRAM SHALL BE FUNDED FROM MONIES APPROPRIATED FROM THE HEALTH CARE EXPENDABLE FUND; TO PROVIDE THAT SCHOLARSHIP RECIPIENTS MUST AGREE TO PRACTICE FAMILY MEDICINE FOR AT LEAST TEN YEARS IN AN AREA OF THE STATE THAT IS A CRITICAL NEEDS AREA FOR PRIMARY MEDICAL CARE; TO ESTABLISH A COMMITTEE THAT WILL ANNUALLY DETERMINE AND DESIGNATE THE CRITICAL NEEDS AREAS IN WHICH SCHOLARSHIP RECIPIENTS MAY PRACTICE IN ORDER TO FULFILL THEIR CONTRACTUAL OBLIGATION; TO PROVIDE THAT IF A SCHOLARSHIP RECIPIENT LEAVES MEDICAL SCHOOL OR HIS OR HER RESIDENCY BEFORE COMPLETION OR LEAVES PRACTICING FAMILY MEDICINE IN A CRITICAL NEEDS AREA BEFORE THE END OF TEN YEARS, THE FULL AMOUNT THAT THE RECIPIENT RECEIVED UNDER THE SCHOLARSHIP SHALL BE DUE AND PAYABLE WITHIN 90 DAYS, TOGETHER WITH INTEREST; TO PROVIDE FOR THE REIMBURSEMENT OF RELOCATION EXPENSES FOR PHYSICIANS TO MOVE AND PRACTICE FAMILY MEDICINE IN AN CRITICAL NEEDS AREA; TO PROVIDE FOR THE PAYMENT OF START-UP EXPENSES AND MEDICAL MALPRACTICE INSURANCE PREMIUMS FOR PHYSICIANS WHO PRACTICE FAMILY MEDICINE IN AN CRITICAL NEEDS AREA; TO PROVIDE FOR THE PAYMENT OF ANNUAL INCOME SUBSIDIES FOR PHYSICIANS WHO PRACTICE FAMILY MEDICINE FULL TIME IN A CRITICAL NEEDS AREA; TO PROVIDE A CREDIT AGAINST STATE INCOME TAXES FOR PHYSICIANS WHO PRACTICE FAMILY MEDICINE FULL TIME IN A CRITICAL NEEDS AREA; AND FOR RELATED PURPOSES.