Report Title:

Dentists; Student Loan Repayment Program; Incentive

Description:

Establishes a dental care student loan repayment program as an incentive for dentists to provide dental services to underserved communities and accept Med-QUEST and uninsured patients. (SB2729 HD1)

THE SENATE

S.B. NO.

2729

TWENTY-THIRD LEGISLATURE, 2006

S.D. 1

STATE OF HAWAII

H.D. 1


 

A BILL FOR AN ACT

 

relating to dentists.

 

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

SECTION 1. The legislature finds that there is a severe shortage of dental services in the underserved communities of Hawaii, particularly for Med-QUEST and uninsured patients. This growing crisis is due to geographic isolation, lack of educational opportunities for dentists and their families, and salaries that are up to twenty per cent lower than on the mainland.

The legislature finds that to maximize the availability of quality dental care in underserved communities, a dental care student loan repayment program should be established to enable dentists who are already licensed and experienced to fill the immediate need for dental services while providing incentives for students to become dentists and serve in needy communities.

The purpose of this Act is to establish a dental care student loan repayment program to provide dental student loan repayments for persons who agree to provide dental services in underserved communities to medicaid and uninsured patients.

SECTION 2. Chapter 321, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§321-   Dental care student loan repayment program. (a) There is established within the department a dental care student loan repayment program to be administered by the director of health. The program shall provide student loan repayment in exchange for service as a dentist in an underserved community in Hawaii.

(b) Under the dental care student loan repayment program, the department may award to a person one year of educational loan repayment in exchange for every two years that the person agrees to:

(1) Be licensed under chapter 448; and

(2) Practice dentistry in a state-designated dental health professional shortage area:

(A) At a federally qualified health center; or

(B) While employed by or as the owner of a dental practice:

(i) That is open to new clients enrolled in the Hawaii medicaid program;

(ii) That offers dental services to the uninsured on a sliding fee scale or on a pro bono basis; and

(iii) In which forty per cent of the clients served are medicaid eligible or uninsured.

The department may award an applicant a maximum of three years of loan repayment.

(c) The department shall adopt rules in accordance with chapter 91 to implement this section, including rules addressing the following:

(1) Qualifications of applicants;

(2) Application procedures;

(3) The amount of student loan repayments available each year;

(4) Criteria for fulfilling an applicant's obligation for providing dental care in exchange for student loan repayment;

(5) The limitation, suspension, or revocation of repayments; and

(6) Procedures and remedies for any violation of the loan agreement or rule adopted pursuant to this section.

(d) For the purposes of this section and section 321- , "department" means department of health.

§321- Dental care student loan repayment program special fund. (a) There is established a dental care student loan repayment program special fund, to be administered by the department to repay student loans under the dental care student loan repayment program and for any and all other purposes consistent with section 321- .

(b) The fund shall consist of:

(1) Moneys appropriated by the legislature;

(2) Interest on moneys in the fund; and

(3) Any other moneys contributed or transferred to the fund."

SECTION 4. 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 2006-2007 to be deposited into the dental care student loan repayment program special fund for the purposes of this Act.

SECTION 5. There is appropriated out of the dental care student loan repayment program special fund the sum of $ or so much thereof as may be necessary for fiscal year 2006-2007 for the dental care student loan repayment program.

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

SECTION 6. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2006.