SB206 Alabama 2016 Session

Summary

Primary Sponsor

Tim MelsonSenator

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

SB206 creates the Alabama Physician’s Assistants Service Program to fund PA education with loans and require three years of service in medically underserved areas in exchange for loan repayment and a participant tax credit.

What This Bill Does

It creates a loan-based program for training physician assistants, funded by the Education Trust Fund, and administered by the Board of Medical Scholarship Awards. Participants must sign contracts to work full-time as licensed PAs in areas of critical need for three years to repay the loans. Areas of critical need are medically underserved areas in Alabama, with a preference for primary-care HPSA areas, and there are penalties for default and possible license revocation. Participants who work in these areas can receive a tax credit of up to $5,000 per year, lasting while they are in service and for up to 10 tax years after repayment if they continue in the same area.

Who It Affects

• Prospective and current physician assistants who receive program loans and must work in areas of critical need to repay them, and who may qualify for a state income tax credit.
• Residents of medically underserved areas in Alabama, who could benefit from greater PA access as more PAs are placed in those areas.

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.
• Provides loans for qualified applicants pursuing a master’s degree in physician assistant studies, up to the average in-state public tuition and fees, contingent on a three-year full-time PA work commitment in an area of critical need after graduation.
• Defines areas of critical need as medically underserved parts of Alabama, with preference for primary-care HPSA areas.
• Imposes penalties for default, including immediate repayment with interest (8% or prime rate, whichever is greater) and additional penalties (30% pre-graduation, 100% post-graduation); license revocation for failure to honor the contract, with exceptions for death, disability, or extreme hardship.
• Provides a state income tax credit of $5,000 per tax year for participants in full-time clinical practice in an area of critical need, usable during service and for up to 10 tax years after repayment if they remain in the same area; rules to be set by the Department of Revenue.
• Requires annual reporting by the Board on program status and finances; directs funds from repayments, interest, and penalties to continue funding loans.
• Effective immediately upon enactment.

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