A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING ARTICLE 8 TO CHAPTER 111, title 59 SO AS TO ESTABLISH THE RURAL PHYSICIAN TUITION GRANT PROGRAM, FUNDED BY THE SOUTH CAROLINA EDUCATION LOTTERY, TO PROVIDE TUITION ASSISTANCE TO MEDICAL STUDENTS WHO COMMIT TO PRACTICE MEDICINE IN RURAL AREAS OF THIS STATE FOR A MINIMUM OF FIVE YEARS, AND TO PROVIDE FOR PROGRAM ADMINISTRATION, SERVICE OBLIGATIONS, AND ENFORCEMENT; AND BY ADDING SECTION 59-150-385 SO AS TO ENABLE FUNDING OF THE PROGRAM FROM THE SOUTH CAROLINA EDUCATION LOTTERY.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Chapter 111, Title 59 of the S.C. Code is amended by adding:

 

Article 8

 

Rural Physician Tuition Grant Program

 

    Section 59-111-610.  (A) There is established the Rural Physician Tuition Grant Program, administered by the Commission on Higher Education, for the purpose of increasing the number of licensed physicians practicing medicine in rural areas of this State.

    (B) For purposes of this article, "rural area" means a county or geographic area of this State that meets the definition of a rural area as defined in Section 44-6-910.

 

    Section 59-111-620.  (A) The program shall provide tuition grants, and not loans, to eligible students enrolled in an accredited medical school who enter into a written service obligation agreement with the State.

    (B) A recipient shall agree to practice medicine on a full-time basis for a minimum of five years in a rural area of South Carolina, as defined in Section 59-111-610(B), following completion of the recipient's medical degree, residency, internship, and any other required postgraduate training.

    (C) Grants awarded pursuant to this article must be funded from revenues of the South Carolina Education Lottery, pursuant to Section 59-150-350, and may be used only for the payment of tuition and mandatory academic fees.

 

    Section 59-111-630.  To be eligible for a grant under this article, an applicant must:

       (1) be a legal resident of South Carolina at the time of application;

       (2) be accepted for enrollment or enrolled in an accredited allopathic or osteopathic medical school approved by the Commission on Higher Education;

       (3) agree to complete all academic and clinical requirements necessary for licensure to practice medicine in South Carolina; and

       (4) execute a service obligation agreement as required by Section 59-111-620.

 

    Section 59-111-640.  In awarding grants, the commission may give priority consideration, but not exclusive preference, to applicants who intend to practice in medical specialties commonly needed in rural areas of the State.

 

    Section 59-111-650.  (A) The Commission on Higher Education shall administer the program and promulgate regulations necessary to carry out the provisions of this article.

    (B) Regulations must include, but are not limited to:

       (1) the maximum annual grant amount per recipient;

       (2) the maximum cumulative grant award per recipient;

       (3) the maximum number of grants awarded in any fiscal year;

       (4) application procedures and selection criteria;

       (5) standards for approval of service locations within rural areas of the State; and

       (6) procedures for monitoring compliance with service obligations.

 

    Section 59-111-660.  (A) The service obligation period begins upon the recipient's initial licensure to practice medicine in South Carolina after completion of all required postgraduate training.

    (B) The service obligation must be fulfilled on a continuous basis unless the commission approves an interruption for good cause shown.

 

    Section 59-111-670.  (A) A recipient who fails to satisfy the service obligation required by this article, other than due to permanent disability or death, is in material breach of the service obligation agreement.

    (B) Upon breach, the recipient is subject to the following remedies:

       (1) repayment to the State of South Carolina of an amount equal to one hundred fifty percent of the total grant funds received, plus interest at the legal rate, as liquidated damages;

       (2) ineligibility for issuance or renewal of a license to practice medicine in South Carolina until all amounts owed pursuant to item (1) are paid in full; and

       (3) referral to appropriate licensing authorities for enforcement consistent with state law.

    (C) The remedies provided in this section are cumulative and in addition to any other remedies available at law or in equity.

 

    Section 59-111-680.  The commission may grant a deferral or partial waiver of the service obligation upon a showing of extreme hardship, serious illness, or other circumstances beyond the control of the recipient, pursuant to regulation.

 

    Section 59-111-690.  The Commission on Higher Education shall submit an annual report to the Governor, the President of the Senate, and the Speaker of the House of Representatives detailing:

       (1) the number of grants awarded;

       (2) the total amount of funds disbursed;

       (3) the number of recipients practicing in rural areas of the State;

       (4) the medical specialties of participating recipients; and

       (5) enforcement actions taken pursuant to this article.

 

SECTION 2.  Chapter 150, Title 59 of the S.C. Code is amended by adding:

 

    Section 59-150-385.  Education Lottery funds may be used to support the Rural Physician Tuition Grant Program established pursuant to Article 8, Chapter 111, Title 59.

 

SECTION 3.  This act takes effect upon approval by the Governor.

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