LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6647 NOTE PREPARED: Dec 26, 2023
BILL NUMBER: HB 1175 BILL AMENDED:
SUBJECT: Repayment of Medical School Loans.
FIRST AUTHOR: Rep. Harris BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill requires the Indiana Department of Health (IDOH) to establish and
administer a Medical School Loan Forgiveness Pilot Program (program) for the purpose of attracting
physicians to practice medicine in Indiana. It establishes the Medical School Loan Forgiveness Fund (fund).
The bill sets forth criteria for the program. It also requires the IDOH to, not later than November 1, 2025,
and each November 1 thereafter, prepare and submit a report to the General Assembly regarding the program.
The bill makes an appropriation to the fund.
Effective Date: July 1, 2024.
Explanation of State Expenditures: The bill establishes the nonreverting Medical School Loan Forgiveness
Fund (fund) and appropriates $4.2 M from the state General Fund into the fund for the FY 2026 - FY 2027
biennium. The fund may receive appropriations from the General Fund as well as gifts. The Medical School
Loan Forgiveness Pilot Program (program) is also established to provide medical school loan repayment
assistance to help attract physicians to practice medicine in Indiana. The fund will be used for the purposes
of the program. The fund and program are set to expire January 1, 2035.
The Indiana Department of Health (IDOH) must administer the program and the fund. Costs of administering
the program are to be paid from the fund. Funds appropriated in this bill will allow IDOH to award loan
forgiveness funds to 21 physicians in FY 2026 and 21 physicians in FY 2027. IDOH must also submit an
annual report to the General Assembly regarding the status of the program and the amount of awards
provided from the fund. These requirements are within IDOH’s routine administrative functions and should
be able to be implemented with no additional appropriations, assuming near customary agency staffing and
resource levels. [IDOH administrative expenses are funded through the Tobacco Master Settlement Fund,
HB 1175 1 a dedicated fund.]
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Indiana Department of Health.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Alexander Raggio, 317-234-9485.
HB 1175 2