HB186 Alabama 2016 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Session

Regular Session 2016

Title

Physician's Assistants Service Program, created, administered by the Board of Medical Scholarship Awards, funding of program, tax credits for participation

Summary

HB186 would create the Alabama Physician’s Assistants Service Program to fund PA training with loans in exchange for a three-year service commitment in medically underserved areas, funded by the Education Trust Fund, plus a state income tax credit for participants.

What This Bill Does

The program, run by the Board of Medical Scholarship Awards, would provide loans for qualified applicants pursuing a master’s degree in physician assistant studies. Loans could equal the average in-state tuition and fees at Alabama public institutions, contingent on signing a contract to work full-time in areas of critical need for three years after graduation. A state income tax credit of up to $5,000 per year is available for participants who work in these areas, with penalties and loan repayment rules if contracts are not honored; funding comes from direct appropriations to the Education Trust Fund, and the program would require annual reporting and rulemaking by the Board.

Who It Affects

• Prospective and current physician assistants in Alabama who participate in the loan program and commit to work in areas of critical need
• Communities in medically underserved areas that gain increased PA services as participants fulfill their service obligations
• Healthcare employers and facilities located in areas designated as critical need or HPSA, which may benefit from increased PA coverage
• The Alabama Board of Medical Scholarship Awards, which administers the program
• The Department of Revenue, which would implement and administer the PA service tax credit

Key Provisions

• Creates the Alabama Physician’s Assistants Service Program, administered by the Board of Medical Scholarship Awards and funded by direct appropriation from the Education Trust Fund
• The Board may award loans to qualified applicants or students for a master’s degree in physician assistant studies, up to the average in-state tuition and required fees at public Alabama institutions, contingent on signing a contract to work three years in an area of critical need after graduation
• Areas of critical need are defined as medically underserved areas determined by the Board, with priority given to areas that are within a primary-care health professional shortage area (HPSA) as recognized by HRSA and Alabama authorities
• Participants may change their area of critical need, but must still complete the three-year full-time practice requirement
• Default or failure to honor loan-repayment contracts triggers immediate repayment of principal plus interest (8% or prime rate, whichever is greater) and penalties (30% of principal if default before graduation; 100% of principal if default after graduation but before completing repayment)
• License revocation can occur for failure to honor the contract or repay the loan obligations
• Hardship waivers may excuse repayment in cases of death, disability, or other extreme hardship
• A $5,000 per year tax credit is available to participants in full-time clinical practice in areas of critical need, continuing after loan repayment if they remain in the same area, up to a total of 10 tax years
• The Board must annually report program status and finances, and can establish rules to implement the program

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Health