Introduced Version HOUSE BILL No. 1175 _____ 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, 2025, 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, 2024. Harris January 9, 2024, read first time and referred to Committee on Ways and Means. 2024 IN 1175—LS 6647/DI 143 Introduced Second Regular Session of the 123rd General Assembly (2024) 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 provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2023 Regular Session of the General Assembly. HOUSE BILL No. 1175 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, 2024]: 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; and 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 2024 IN 1175—LS 6647/DI 143 2 1 JULY 1, 2024]: 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 under section 4 9 of 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) provide primary care services or practice obstetrics and 33 gynecology; 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 seven (7) eligible physicians 42 from each of the following regions to participate in the program: 2024 IN 1175—LS 6647/DI 143 3 1 (1) The northern region of Indiana. 2 (2) The central region of Indiana. 3 (3) The southern region of Indiana. 4 Sec. 9. (a) The amount of medical school loan repayment 5 assistance awarded to an eligible physician under this chapter may 6 not exceed two hundred thousand dollars ($200,000). 7 (b) If an eligible physician participating in the program does not 8 fulfill the eligible physician's ten (10) year commitment described 9 in section 7 of this chapter, the department shall award a prorated 10 amount of the medical school loan repayment assistance to the 11 eligible physician based on the amount of time the eligible 12 physician practiced medicine in the program. 13 Sec. 10. Not later than November 1, 2025, and each November 14 1 thereafter, the department shall prepare and submit a report in 15 an electronic format under IC 5-14-6 to the general assembly 16 concerning: 17 (1) the status of the program; and 18 (2) loan repayment assistance awards provided to eligible 19 physicians. 20 Sec. 11. The department may adopt rules under IC 4-22-2 to 21 implement this chapter. 22 Sec. 12. This chapter expires January 1, 2035. 23 SECTION 3. [EFFECTIVE JULY 1, 2024] (a) There is 24 appropriated from the state general fund to the medical school 25 loan forgiveness fund established by IC 21-13-12.3-5, as added by 26 this act, four million two hundred thousand dollars ($4,200,000) for 27 the state biennium beginning July 1, 2025, and ending June 30, 28 2027. 29 (b) This SECTION expires July 1, 2027. 2024 IN 1175—LS 6647/DI 143