Creation of a primary care and psychiatry shortage grant program, exempting from taxation amounts received from such a grant program, granting rule-making authority, and making an appropriation. (FE)

1. He or she practices primary care medicine or psychiatry, including child psychiatry (psychiatry), in an underserved area in this state. The bill defines "primary care medicine" as any of the following medical specialities: 1) family practice; 2) internal medicine; 3) pediatrics; or 4) general surgery. The bill defines an "underserved area" as a health professional shortage area certified by DHHS, a health service shortage area designated by the governor and certified by the secretary of health and human services, or a medically underserved area, as defined in regulations promulgated by DHHS.

2. He or she graduated from a school of medicine located in this state and from a graduate medical education training program in this state with an emphasis on primary care medicine or psychiatry (GME training program).

The bill appropriates $1,500,000 in fiscal year 2014-15 as a continuing appropriation for the grant program and requires HEAB to allocate not more than $750,000 of that amount for financial assistance to physicians and not more than $750,000 of that amount for financial assistance to psychiatrists. The bill permits HEAB to grant financial assistance under the grant program to no more than 12 physicians and no more than 12 psychiatrists in a fiscal year and provides that, if more than 12 physicians or more than 12 psychiatrists apply for participation in the grant program in a fiscal year, HEAB must consider the order in which those applications are received and the health professional shortage area score, as determined by the Health Resources and Services Administration of DHHS, of the underserved area in which the applicant is practicing primary care medicine or psychiatry in selecting participants in the grant program. In addition, the bill: 1) provides that an individual physician or psychiatrist may receive financial assistance under the grant program in no more than three fiscal years; and 2) prohibits HEAB from requesting continued funding for the grant program in its 2015-17 biennial budget request.

To participate in the grant program, a physician or psychiatrist may apply to HEAB while he or she is participating in a GME training program, but must apply to HEAB no later than the date on which he or she accepts employment or any other affiliation as a primary care physician or psychiatrist in an underserved area in this state.

To receive a payment of financial assistance under the grant program, a physician or psychiatrist who has been accepted for participation in the grant program must submit a claim to HEAB that includes: 1) the signature of the physician or psychiatrist and of a representative of the practice in which the physician or psychiatrist is employed or otherwise affiliated certifying that during the period for which financial assistance is claimed the physician or psychiatrist practiced primary care medicine or psychiatry in an underserved area in this state;

and 2) such other information as HEAB may require by rule to verify the eligibility of the physician or psychiatrist for financial assistance.

Under the bill, any amount of financial assistance received under the grant program by a physician or psychiatrist is exempt from taxation.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.