HB 425 — An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, providing for J-1 Visa Waiver Physician Grant Program.

PRINTER'S NO.   400

                  THE GENERAL ASSEMBLY OF PENNSYLVANIA



                      HOUSE BILL
                      No. 425
                                             Session of
                                               2025

     INTRODUCED BY MARCELL, VENKAT, KHAN AND GREEN, JANUARY 31, 2025

     REFERRED TO COMMITTEE ON HEALTH, JANUARY 31, 2025


                                  AN ACT
 1   Amending the act of April 9, 1929 (P.L.343, No.176), entitled
 2      "An act relating to the finances of the State government;
 3      providing for cancer control, prevention and research, for
 4      ambulatory surgical center data collection, for the Joint
 5      Underwriting Association, for entertainment business
 6      financial management firms, for private dam financial
 7      assurance and for reinstatement of item vetoes; providing for
 8      the settlement, assessment, collection, and lien of taxes,
 9      bonus, and all other accounts due the Commonwealth, the
10      collection and recovery of fees and other money or property
11      due or belonging to the Commonwealth, or any agency thereof,
12      including escheated property and the proceeds of its sale,
13      the custody and disbursement or other disposition of funds
14      and securities belonging to or in the possession of the
15      Commonwealth, and the settlement of claims against the
16      Commonwealth, the resettlement of accounts and appeals to the
17      courts, refunds of moneys erroneously paid to the
18      Commonwealth, auditing the accounts of the Commonwealth and
19      all agencies thereof, of all public officers collecting
20      moneys payable to the Commonwealth, or any agency thereof,
21      and all receipts of appropriations from the Commonwealth,
22      authorizing the Commonwealth to issue tax anticipation notes
23      to defray current expenses, implementing the provisions of
24      section 7(a) of Article VIII of the Constitution of
25      Pennsylvania authorizing and restricting the incurring of
26      certain debt and imposing penalties; affecting every
27      department, board, commission, and officer of the State
28      government, every political subdivision of the State, and
29      certain officers of such subdivisions, every person,
30      association, and corporation required to pay, assess, or
31      collect taxes, or to make returns or reports under the laws
32      imposing taxes for State purposes, or to pay license fees or
33      other moneys to the Commonwealth, or any agency thereof,
34      every State depository and every debtor or creditor of the
35      Commonwealth," providing for J-1 Visa Waiver Primary Care
 1      Physician Grant Program; and making an appropriation.
 2      The General Assembly of the Commonwealth of Pennsylvania
 3   hereby enacts as follows:
 4      Section 1.    The act of April 9, 1929 (P.L.343, No.176), known
 5   as The Fiscal Code, is amended by adding an article to read:
 6                                ARTICLE I-M
 7                       J-1 VISA WAIVER PRIMARY CARE
 8                          PHYSICIAN GRANT PROGRAM
 9   Section 101-M.   Scope of article.
10      This article relates to the J-1 Visa Waiver Primary Care
11   Physician Grant Program.
12   Section 102-M.   Definitions.
13      The following words and phrases when used in this article
14   shall have the meanings given to them in this section unless the
15   context clearly indicates otherwise:
16      "Conrad 30 waiver."     A waiver established under 8 U.S.C. §
17   1184(l) (relating to admission of nonimmigrants) that authorizes
18   an individual with a J-1 visa to apply for a waiver of the two-
19   year foreign residence requirement upon completion of the J-1
20   Exchange Visitor Program under Federal law.
21      "Department."    The Department of Health of the Commonwealth.
22      "Designated medically underserved area."      The term shall mean
23   the same as under section 1301 of the act of December 2, 1992
24   (P.L.741, No.113), known as the Children's Health Care Act.
25      "Employer."   A person, firm, partnership, association or
26   corporation that:
27          (1)   employs a physician; and
28          (2)   is not owned, under contract or otherwise affiliated
29      with a health system.
30      "Flex 10 waiver."    The waiver authorized under 8 U.S.C. §


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 1   1184(l)(1)(D) that allows the department to recommend approval
 2   of up to 10 requests from employers that:
 3          (1)    are not physically located in a designated medically
 4      underserved area or primary care health professional shortage
 5      area, but that serves patients from one or more designated
 6      areas; and
 7          (2)    employ physicians to serve patients in those
 8      designated areas.
 9      "Grant."   An award of money by the department under the
10   program.
11      "J-1 visa."    The classification of individuals authorized to
12   participate in an approved program for the purpose of teaching,
13   instructing or lecturing, studying, observing, conducting
14   research, consulting, demonstrating special skills, receiving
15   training or to receive graduate medical education or training.
16      "Physician."   A medical doctor or doctor of osteopathy who
17   primarily provides medical services in any one or more of the
18   following practice areas:
19          (1)    Family medicine.
20          (2)    Osteopathic general practice.
21          (3)    General pediatrics.
22          (4)    Geriatric medicine.
23          (5)    Emergency medicine.
24          (6)    Psychiatry.
25          (7)    Obstetrics.
26          (8)    General internal medicine.
27      "Primary care health professional shortage area."    A
28   designation used to identify areas and population groups within
29   this Commonwealth that are experiencing a shortage of
30   physicians.

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 1      "Program."    The J-1 Visa Waiver Primary Care Physician Grant
 2   Program established under section 103-M.
 3   Section 103-M.   Establishment.
 4      The J-1 Visa Waiver Primary Care Physician Grant Program is
 5   established in and shall be administered by the department.
 6   Section 104-M.   Use of funds.
 7      The department shall award grants in accordance with this
 8   article from money appropriated to the program by the General
 9   Assembly.
10   Section 105-M.   Application.
11      The following shall apply to applications for grants:
12          (1)   Applications shall be on a form and submitted in a
13      manner determined by the department.
14          (2)   Applications shall contain documentation as required
15      by the department.
16          (3)   Applications shall be available electronically.
17          (4)   The department shall receive and consider
18      applications on a rolling basis until funding for grants have
19      been completely disbursed or until December 31, 2030,
20      whichever occurs first.
21   Section 106-M.   Certification.
22      An employer that applies for a grant shall certify in good
23   faith all of the following:
24          (1)   The employer employs a physician to work in a
25      designated medically underserved area, a primary care health
26      professional shortage area or a designated area that has been
27      approved for a Flex 10 waiver.
28          (2)   The employed physician has been approved for a
29      Conrad 30 waiver.
30          (3)   The grant will be used to assist the employer in

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 1      paying the salary of the employed physician.
 2            (4)   The grant will not be used for more than one
 3      physician per calendar year.
 4            (5)   The employer agrees to comply with the program
 5      requirements established by the department.
 6            (6)   Acknowledgment that failure to comply with the
 7      program requirements established by the department:
 8                  (i)    shall result in removal from the program; and
 9                  (ii)    may result in recoupment of grant money as
10            authorized by law.
11            (7)   That the information provided in the application and
12      all supporting documents and forms is true and accurate in
13      all material aspects. An applicant, or an authorized
14      representative of the applicant, that knowingly makes a false
15      statement to obtain a grant shall be subject to 18 Pa.C.S. §
16      4904 (relating to unsworn falsification to authorities).
17   Section 107-M.        Review of application.
18      (a)   Determination.--The department shall approve or
19   disapprove an application for a grant. The department shall
20   provide reasons for a disapproval or for a grant award less than
21   the amount requested in an application.
22      (b)   Grant agreement.--After approval of an application, the
23   department shall enter into a grant agreement with the employer.
24   A fully executed grant agreement shall be required before the
25   disbursement of a grant. The following shall apply to a grant
26   agreement:
27            (1)   The grant agreement shall explain the terms and
28      conditions of the grant, including the applicable laws of
29      this Commonwealth and the United States, and reporting
30      requirements.

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 1            (2)   The grant agreement shall explain the department's
 2      policies and procedures related to the Conrad 30 waiver, the
 3      Flex 10 waiver and other policies and procedures that must be
 4      followed under Federal or State regulations.
 5            (3)   The grant agreement may be electronically signed by
 6      all applicable parties.
 7      (c)   Awards.--
 8            (1)   The department shall distribute a grant award to an
 9      employer in accordance with this article no later than 60
10      days after approval of a grant application by the department.
11            (2)   An employer may receive up to $100,000 a year for a
12      period of three years. The employer and physician must
13      continue to meet the requirements under this article to
14      receive an award each year. The department may require
15      documentation from the employer and physician each year.
16            (3)   The department may award grants in increments of
17      $10,000, not to exceed the limitation under paragraph (2).
18      (d)   Priority of grant awards.--The department shall give
19   priority in the awarding of a grant to employers that have not
20   previously been awarded a grant for another physician during the
21   same calendar year.
22   Section 108-M.    Reports.
23      (a)   Contents.--No later than December 31 of each year, the
24   department shall publish a report on its publicly accessible
25   Internet website that contains the following information:
26            (1)   A list of grants awarded.
27            (2)   The name and address of each employer awarded a
28      grant.
29            (3)   The amount of the grant, the purpose of the grant
30      and a description of the financial impact on the grant

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 1      recipient.
 2            (4)   The total amount of the appropriation under section
 3      109-M that has been distributed each calendar year.
 4      (b)   Submission.--The department shall submit the report
 5   under subsection (a) to the following:
 6            (1)   The chair and minority chair of the Appropriations
 7      Committee of the Senate.
 8            (2)   The chair and minority chair of the Appropriations
 9      Committee of the House of Representatives.
10            (3)   The chair and minority chair of the Health and Human
11      Services Committee of the Senate.
12            (4)   The chair and minority chair of the Health Committee
13      of the House of Representatives.
14      (c)   Final report.--Upon disbursement of all money
15   appropriated for the program or December 31, 2030, whichever is
16   earlier, the department shall publish a final report under the
17   requirements of this section within six months.
18   Section 109-M.    Appropriation.
19      The sum of $10,000,000 is appropriated from the General Fund
20   to the department for the program and payment of grants under
21   this article. This appropriation shall lapse on June 30, 2031.
22   Section 110-M.    Tax applicability.
23      Grants awarded under this article may not be considered
24   taxable income to an employer or physician for purposes of
25   Article III of the act of March 4, 1971 (P.L.6, No.2), known as
26   the Tax Reform Code of 1971.
27   Section 111-M.    Compliance.
28      The employer and physician shall permit the department to
29   determine compliance with the requirements of this article. If
30   the employer or physician fails to comply with the requirements

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1   of this article, the employer, physician or both shall reimburse
2   the Commonwealth for the amount of the grant received, including
3   interest accrued, as determined by the department based on a
4   determination of which party violated this article. The
5   employer, physician and the department shall make every effort
6   to resolve conflicts in order to prevent a breach of program
7   requirements established by the department.
8      Section 2.   This act shall take effect in 180 days.




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