Introduced Version
HOUSE BILL No. 1573
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 21-13-1-5; IC 21-13-12.3.
Synopsis: Repayment of medical school loans. Requires the Indiana
department of health (department) to establish and administer a
medical school loan forgiveness pilot program (program) for the
purpose of attracting physicians to practice medicine in Indiana.
Establishes the medical school loan forgiveness fund (fund). Sets forth
criteria for the program. Requires the department to, not later than
November 1, 2024, and each November 1 thereafter, prepare and
submit a report to the general assembly regarding the program. Makes
an appropriation to the fund.
Effective: July 1, 2023.
Harris, Shackleford, Schaibley
January 19, 2023, read first time and referred to Committee on Ways and Means.
2023 IN 1573—LS 7290/DI 147 Introduced
First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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word NEW will appear in that style type in the introductory clause of each SECTION that adds
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between statutes enacted by the 2022 Regular Session of the General Assembly.
HOUSE BILL No. 1573
A BILL FOR AN ACT to amend the Indiana Code concerning
higher education and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 21-13-1-5, AS AMENDED BY P.L.148-2016,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 5. "Fund":
4 (1) for purposes of IC 21-13-2, refers to the William A. Crawford
5 minority teacher scholarship fund established by IC 21-13-2-1;
6 (2) for purposes of IC 21-13-4, refers to the National Guard
7 tuition supplement program fund established by IC 21-13-4-1;
8 (3) for purposes of IC 21-13-5, refers to the National Guard
9 scholarship extension fund established by IC 21-13-5-1;
10 (4) for purposes of IC 21-13-6, refers to the primary care
11 physician loan forgiveness fund established by IC 21-13-6-3; and
12 (5) for purposes of IC 21-13-6.5, refers to the medical residency
13 education fund established by IC 21-13-6.5-1.
14 (6) for purposes of IC 21-13-12.3, refers to the medical school
15 loan forgiveness fund established by IC 21-13-12.3-5.
16 SECTION 2. IC 21-13-12.3 IS ADDED TO THE INDIANA CODE
17 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
2023 IN 1573—LS 7290/DI 147 2
1 JULY 1, 2023]:
2 Chapter 12.3. Medical School Loan Forgiveness Pilot Program
3 Sec. 1. As used in this chapter, "department" refers to the
4 Indiana department of health.
5 Sec. 2. As used in this chapter, "eligible physician" means an
6 individual who meets the requirements of section 7 of this chapter.
7 Sec. 3. As used in this chapter, "program" refers to the medical
8 school loan forgiveness pilot program established by section 4 of
9 this chapter.
10 Sec. 4. The department shall establish and administer a medical
11 school loan forgiveness pilot program for the purpose of attracting
12 physicians to practice medicine in Indiana by providing medical
13 school loan repayment assistance to eligible physicians.
14 Sec. 5. (a) The medical school loan forgiveness fund is
15 established.
16 (b) The fund consists of the following:
17 (1) Appropriations by the general assembly.
18 (2) Gifts to the fund.
19 Sec. 6. (a) The department shall administer the fund.
20 (b) The expenses of administering the fund shall be paid from
21 money in the fund.
22 (c) The treasurer of state shall invest the money in the fund not
23 currently needed to meet the obligations of the fund in the same
24 manner as other public money may be invested. Interest that
25 accrues from the investments shall be deposited in the fund.
26 (d) Money in the fund at the end of a state fiscal year does not
27 revert to the state general fund but remains available to be used to
28 provide money for student loan forgiveness payments under this
29 chapter.
30 Sec. 7. To qualify for the program, an individual must:
31 (1) be a physician licensed under IC 25-22.5;
32 (2) specialize in an area of medicine other than family
33 medicine;
34 (3) agree in writing to practice medicine full time for ten (10)
35 years in an Indiana county described in section 8 of this
36 chapter;
37 (4) have an outstanding student loan balance;
38 (5) be approved by the department; and
39 (6) meet any other conditions or eligibility requirements
40 established by the department.
41 Sec. 8. The department shall select the following to participate
42 in the pilot program:
2023 IN 1573—LS 7290/DI 147 3
1 (1) Two (2) eligible physicians in Lake County.
2 (2) Two (2) eligible physicians in Vanderburgh County.
3 (3) One (1) eligible physician in Wayne County.
4 (4) One (1) eligible physician in Vigo County.
5 Sec. 9. (a) The amount of medical school loan repayment
6 assistance awarded to an eligible physician under this chapter may
7 not exceed two hundred thousand dollars ($200,000).
8 (b) If an eligible physician participating in the program does not
9 fulfill the eligible physician's ten (10) year commitment described
10 in section 7 of this chapter, the department shall award a prorated
11 amount of the medical school loan repayment assistance to the
12 eligible physician based on the amount of time the eligible
13 physician practiced medicine in the program.
14 Sec. 10. Not later than November 1, 2024, and each November
15 1 thereafter, the department shall prepare and submit a report in
16 an electronic format under IC 5-14-6 to the general assembly
17 concerning:
18 (1) the status of the pilot program; and
19 (2) loan repayment assistance awards provided to eligible
20 physicians.
21 Sec. 11. The department may adopt rules under IC 4-22-2 to
22 implement this chapter.
23 Sec. 12. This chapter expires January 1, 2034.
24 SECTION 3. [EFFECTIVE JULY 1, 2023] (a) There is
25 appropriated to the medical school loan forgiveness fund
26 established by IC 21-13-12.3-5, as added by this act, one million
27 two hundred thousand dollars ($1,200,000) for the state biennium
28 beginning July 1, 2023, and ending June 30, 2025.
29 (b) This SECTION expires July 1, 2025.
2023 IN 1573—LS 7290/DI 147