A BILL TO BE ENTITLED
AN ACT to establish the need‑based physician assistant scholarships.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 90 of the General Statutes is amended by adding a new Article to read:
"Article 42.
"Need‑Based Physician Assistant Scholarships.
"§ 90‑750.  Need‑based physician assistant scholarships fund.
(a)	There is created a need‑based scholarship loan fund for physician assistant students. Need‑based scholarship loans shall be available for study in physician assistant education programs offered by The University of North Carolina and by private colleges that offer accredited physician assistant education programs.
(b)	Need‑based physician assistant scholarship loan funds shall be administered by the State Education Assistance Authority in accordance with rules adopted by the State Education Assistance Authority. Distribution of scholarship loan funds among students enrolled in the constituent institutions of The University of North Carolina and private colleges shall be in amounts proportionate to the amounts awarded to each such group of students in the preceding fiscal year. Scholarship loans shall be made only to prospective and enrolled physician assistant students under the terms and conditions established for the need‑based physician assistant scholarship loan program by the State Education Assistance Authority.
(c)	The State Education Assistance Authority shall carry out the following functions in implementing the need‑based physician assistant scholarship loan program:
(1)	Adopt the rules necessary to implement the scholarship loan program, including the selection criteria and method of selection of recipients of need‑based physician assistant scholarship loans;
(2)	Disburse, collect, and monitor scholarship loan funds;
(3)	Establish the terms and conditions of promissory notes executed by scholarship loan recipients;
(4)	Approve service repayment agreements;
(5)	Collect cash repayments required when service repayment is not completed; and
(6)	Adopt rules to allow for the forgiveness of scholarship loans if it determines that it is impossible for the recipient to practice as a physician assistant in North Carolina for a sufficient time to repay the loan because of the death or permanent disability of the recipient within 10 years following graduation or termination of enrollment in a physician assistant education program.
(d)	The State Education Assistance Authority shall forgive the scholarship loan if, within four years after graduation from a physician assistant education program, the physician assistant practices in a medically underserved area or discipline, as defined by the North Carolina Office of Rural Health and Community Care. Two years of service is required to pay each year of the scholarship loan.
(e)	The State Education Assistance Authority shall forgive the scholarship loan if, within four years after graduation from a physician assistant education program, the physician assistant serves as a full-time faculty member in a North Carolina physician assistant education program accredited by the Accreditation Review Commission on Education for the Physician Assistant. Two years of service is required to pay each year of the scholarship loan."
SECTION 2.  This act becomes effective July 1, 2009.