H*2830 Session 106 (1985-1986)
H*2830(Rat #0284, Act #0186 of 1985) General Bill, By D.O. Hawkins
A Bill to amend Article 7 of Chapter 111 of Title 59, as amended, Code of Laws
of South Carolina, 1976, relating to medical and dental loans, so as to
eliminate scholarship references, add obstetrics and gynecology and child
psychiatry as approved training programs, to increase the loan limit from six
thousand two hundred dollars to ten thousand dollars per annum, to require a
loan recipient to practice in an eligible service area or location of critical
state need and to increase the penalty for not complying with the terms of a
loan.-amended title
04/12/85 House Introduced and read first time HJ-3422
04/12/85 House Referred to Committee on Medical, Military,
Public and Municipal Affairs HJ-3422
05/14/85 House Committee report: Favorable with amendment
Medical, Military, Public and Municipal Affairs
HJ-3138
05/21/85 House Debate adjourned HJ-3315
05/22/85 House Amended HJ-3373
05/22/85 House Read second time HJ-3378
05/23/85 House Read third time and sent to Senate HJ-3455
05/23/85 Senate Introduced and read first time SJ-2245
05/23/85 Senate Referred to Committee on Medical Affairs SJ-2245
05/30/85 Senate Committee report: Favorable Medical Affairs SJ-2387
06/05/85 Senate Read second time SJ-2836
06/05/85 Senate Unanimous consent for third reading on next
legislative day SJ-2836
06/06/85 Senate Read third time and enrolled SJ-2875
06/18/85 Ratified R 284
06/24/85 Signed By Governor
06/24/85 Effective date 06/24/85
06/24/85 Act No. 186
07/10/85 Copies available
(A186, R284, H2830)
AN ACT TO AMEND ARTICLE 7 OF CHAPTERS 111 OF TITLE 59, AS AMENDED, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO MEDICAL AND DENTAL LOANS, SO AS TO ELIMINATE
SCHOLARSHIP REFERENCES, ADD OBSTETRICS AND GYNECOLOGY AND CHILD PSYCHIATRY AS
APPROVED TRAINING PROGRAMS, TO INCREASE THE LOAN LIMIT FROM SIX THOUSAND TWO
HUNDRED DOLLARS TO TEN THOUSAND DOLLARS PER ANNUM, TO REQUIRE A LOAN RECIPIENT
TO PRACTICE IN AN ELIGIBLE SERVICE AREA OR LOCATION OF CRITICAL STATE NEED AND
TO INCREASE THE PENALTY FOR NOT COMPLYING WITH THE TERMS OF A LOAN.
Be it enacted by the General Assembly of the State of South Carolina:
Medical and dental loans
SECTION 1. Article 7 of Chapter 111 of Title 59 of the 1976 Code, as last
amended by Act 478 of 1978, is further amended to read:
"ARTICLE 7
MEDICAL AND DENTAL LOANS
Section 59-111-510. The Department of Health and Environmental Control,
hereinafter referred to as 'the Department', shall aid, assist, promote, and
administer a fund to be known as 'The South Carolina Medical and Dental Loan
Fund' with sums as may be appropriated by the General Assembly.
Section 59-111-520. The Department shall receive and consider all applications
for loans made by students who have been legal residents of South Carolina for
a period of at least one year immediately preceding their application who desire
to become physicians or dentists and who are acceptable for enrollment in any
accredited medical school or dental school within the United States and which is
approved by the Department. The Department shall make a careful and full
investigation of the ability, character, financial needs, and qualifications of
each applicant to determine his fitness to become the recipient of each loan.
The Department may examine each applicant to assist in determining if he is so
qualified. The Department shall consider, during the selection process, the
intent of the applicant to practice medicine or dentistry in a predominantly
rural area. The Department may grant to each applicant, considered by the
Department to be qualified to receive the loan, a loan as herein provided for the
purpose of acquiring a medical or dental education upon terms and conditions
imposed by the Department pursuant to applicable provisions of this article.
Section 59-111-530. A loan shall not exceed ten thousand dollars per annum, for
not exceeding four years, to defray tuition, living expenses, and other school
related expenses. The loan must be based upon the condition that the applicant
apply for a license to practice medicine, dentistry , or child psychiatry; in
South Carolina at the earliest practicable opportunity and that, within six
months after the applicant is so licensed to practice, he will engage in the
practice of medicine, dentistry, or child psychiatry in a service area within
this State which has a ratio of not more than one doctor for each two thousand
people or a ratio of not more than one dentist for each six thousand people.
However, the practice of child psychiatry is limited only to the Child and
Adolescent Unit of the South Carolina State Hospital. The Department shall
approve a deferment of the required entry into practice during the time that the
applicant is engaged in a residency training program in the field of family
practice, general internal medicine, general pediatrics, child psychiatry, or
obstetrics-gynecology. The Department shall annually prepare a list of medical
service areas and dental service areas in this State and the ratios of doctors
and dentists to the population in each service area, using the population figures
of the latest official United States Census and the latest directories of the
State Board of Medical Examiners and the State Board of Dentistry.
All areas of the State must be included in the service areas established by the
Department. However, the practice of child psychiatry is not subject to the
service area requirement and is limited only to the Child and Adolescent Unit at
the South Carolina State Hospital. Medical service areas shall have a minimum
population of two thousand and dental service areas shall have a minimum
population of six thousand and each area shall have at least one town or
municipality, whether or not incorporated, which has a population of at least
five hundred. The applicant may choose the service area in which he desires to
practice if the service area qualifies at the time the recipient initiates his
practice. The recipient is required to practice in an eligible service area for
one year for each year in which a loan was received. If the applicant receives
a loan for four years he is only required to practice in the service area for
three years, at the end of which time the loan is considered paid in full. A
recipient may practice for the designated period of time in such other locations
or assignments which the Board determines meet a critical state need.
Section 59-111-540. Before being granted a loan each applicant shall enter into
a contract with the Department, which is considered a contract with the State of
South Carolina agreeing to the terms and conditions upon which the loan is
granted to him. The contract shall include such terms and provisions as shall
carry out the purpose and intent of Section 59-111-530. The contract must be
signed by the chairman of the Department, countersigned by the executive
secretary of the Department, and signed by the applicant.
Section 59-111-550. The Department may make inquiry of the medical or dental
schools which are approved for applicants to attend, and make arrangements and
enter into contracts with those institutions for the admission of students
granted loans by the Department. The Department, upon proper notice, may cancel
any contract made with the institutions.
Section 59-111-560. If the recipient of a loan fails without justifiable cause
to practice medicine or dentistry in accordance with the terms of his contract,
a penalty for failure to complete the contract must be imposed by the Department
which at a minimum shall consist of a demand for the entire amount of the loan
or scholarship benefits received plus per annum interest from the date funds were
advanced to the recipient at the prevailing prime rate of the largest bank by
deposits in South Carolina in effect at the time the funds were advanced plus two
percent, and at a maximum shall consist of a demand for three times the entire
amount of the loan benefits received, plus interest at a per annum rate equal to
the then prevailing prime rate of the largest bank by deposits in South Carolina.
The demand as determined by the Department must be mailed to the recipient at his
last known address and shall at that time become immediately due and payable.
However, where the Department determines that there is justifiable cause for the
failure to practice pursuant to the terms of the contract, it may relieve the
recipient of the obligation to practice according to the terms of the contract,
and shall provide for repayment of the amount received, plus interest at a per
annum rate equal to the then prevailing prime rate of the largest bank by
deposits in South Carolina on any terms it deems proper.
Upon recommendation and request of the Department the Attorney General shall
institute proceedings for the purpose of recovering any amount due the State upon
breach of the contract.
Section 59-111-570. The funds appropriated for the purposes of this article and
all sums received in repayment of loans must be placed in the State Treasury to
the credit of The South Carolina Medical and Dental Loan Fund. Loan payments
must be paid out of this fund upon a voucher to the State Comptroller General
signed by the chairman and the executive secretary of the Department.
Section 59-111-580. The Department may promulgate reasonable regulations for the
purpose of carrying out the provisions of this article."
Time effective
SECTION 2. This act shall take effect upon approval by the Governor. |