KS
Kansas House Bill HB2374

Kansas 2025-2026 Regular Session

Kansas House Bill HB2374 Compare Versions

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11 Session of 2025
22 HOUSE BILL No. 2374
33 By Committee on Appropriations
44 Requested by Representative Francis on behalf of the University of Kansas
55 2-11
66 AN ACT relating to healthcare professions; creating a specialty practice
77 student loan program; establishing the specialty medical loan
88 repayment fund; allowing for transfers from the psychiatry medical
99 loan repayment fund and the OBGYN medical loan repayment fund to
1010 the specialty medical loan repayment fund; abolishing the psychiatry
1111 medical loan repayment fund and the OBGYN medical loan repayment
1212 fund; amending K.S.A. 76-384and K.S.A. 2024 Supp. 76-381, 76-382
1313 and 76-385 and repealing the existing sections.
1414 Be it enacted by the Legislature of the State of Kansas:
1515 New Section 1. (a) There is hereby established a specialty practice
1616 student loan program. Subject to appropriations and the terms set forth in
1717 K.S.A. 76-383, and amendments thereto, the university of Kansas school
1818 of medicine may enter into medical student loan agreements with
1919 undergraduate students who intend to pursue practice in an approved
2020 specialty and commit to satisfy obligations to engage in the full-time
2121 practice of medicine and surgery in a service commitment area, pursuant to
2222 this act.
2323 (b) The chancellor of the university of Kansas has authority to
2424 administer the medical specialty student loan program, including
2525 discretion to determine workforce needs and allocate which specialties are
2626 eligible for the non-primary care allotment of agreements.
2727 (c) The chancellor of the university of Kansas may determine the new
2828 specialties to add to approved specialties, as defined in section 2, and
2929 amendments thereto, if such specialties are underserved in Kansas and
3030 evaluate or update which locations are compliant as service commitment
3131 areas based on population, comorbidity, community needs and other
3232 relevant data. The university of Kansas school of medicine shall submit a
3333 report annually to the senate committee on public health and welfare,
3434 senate committee on ways and means, house committee on health and
3535 human services and house committee on appropriations relating to any
3636 changes made to specialties or compliant service commitment areas.
3737 (d) In any one fiscal year, any unawarded specialty agreements may
3838 be used for primary care agreements. Unawarded primary care agreements
3939 may not be used for specialty agreements.
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7575 Sec. 2. K.S.A. 76-380 is hereby amended to read as follows: 76-380.
7676 The provisions of K.S.A. 76-380 through 76-386, and amendments
7777 thereto, and section 1, and amendments thereto, shall be known and may
7878 be cited as the medical student loan act.
7979 Sec. 3. K.S.A. 2024 Supp. 76-381 is hereby amended to read as
8080 follows: 76-381. As used in K.S.A. 76-380 through 76-386, and
8181 amendments thereto the medical student loan act:
8282 (a) "Act" means the medical student loan act;
8383 (b) "approved postgraduate residency training program" means a
8484 residency training program in general pediatrics, general internal
8585 medicine, family medicine, family practice, emergency medicine,
8686 obstetrics and gynecology, general psychiatry, child psychiatry or
8787 fellowship training in geriatric medicine, or any other residency or
8888 fellowship training in an approved specialty;
8989 (c) "service commitment area" means:
9090 (1) Any community within any county in Kansas other than Douglas,
9191 Johnson, Sedgwick, Shawnee or Wyandotte county;
9292 (2) any state medical care facility or institution;
9393 (3) any medical center operated by the veterans administration of the
9494 United States;
9595 (4) the university of Kansas school of medicine if serving as full-time
9696 faculty as provided in K.S.A. 76-384(c), and amendments thereto; or
9797 (5) any community within Wyandotte county for purposes of any
9898 practice obligation under an agreement entered into by a person who is
9999 enrolled for the first time after July 1, 2004, in a course of study leading to
100100 the medical degree. "Service commitment area" for approved specialty
101101 providers means any community within any county in Kansas, other than
102102 Douglas, Johnson, Sedgwick, Shawnee or Wyandotte; and
103103 (d) "state medical care facility or institution" includes, but is not
104104 limited to, the Kansas state school for the blind, the Kansas state school for
105105 the deaf, any institution under the secretary for aging and disability
106106 services, as defined in K.S.A. 76-12a01, and amendments thereto, any
107107 institution as defined in K.S.A. 38-2302, and amendments thereto, the
108108 Kansas soldiers' home, the Kansas veterans' home and any correctional
109109 institution under the secretary of corrections, as defined in K.S.A. 75-
110110 5202, and amendments thereto, but shall not include any state educational
111111 institution under the state board of regents, as defined in K.S.A. 76-711,
112112 and amendments thereto, except as specifically provided by statute.
113113 (e) "approved specialty" means gynecology, general psychiatry and
114114 any specialty approved by the chancellor of the university of Kansas; and
115115 (f) "primary care" means general pediatrics, general internal
116116 medicine, family medicine, family practice and emergency medicine.
117117 Sec. 4. K.S.A. 2024 Supp. 76-382 is hereby amended to read as
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161161 follows: 76-382. (a) There is hereby established the medical student loan
162162 program at the university of Kansas school of medicine.
163163 (b) Subject to the provisions of appropriation acts appropriations, the
164164 university of Kansas school of medicine may make medical student loans
165165 in accordance with the provisions of the medical student loan act to
166166 undergraduate students enrolled in or admitted to the university of Kansas
167167 school of medicine in a course of instruction leading to the degree of
168168 doctor of medicine who enter into a written medical student loan
169169 agreement with the university of Kansas school of medicine in accordance
170170 with K.S.A. 76-383, and amendments thereto.
171171 (c) Each medical student loan agreement under the medical student
172172 loan act shall provide to the person receiving the loan the payment of all
173173 tuition and a stipend for living expenses in an amount of up to $2,000 per
174174 month for each month enrolled in such school during a year a 12-month
175175 period. Subject to the maximum amount, the amount of the monthly
176176 stipend shall be determined on an annual basis by the student receiving the
177177 loan.
178178 (d) Subject to the provisions of appropriation acts appropriations,
179179 medical student loan agreements under the medical student loan act may
180180 be entered into on an annual basis and shall provide the payment of the
181181 amounts specified under subsection (c) for one year unless otherwise
182182 terminated before such period of time. Subject to the provisions of
183183 appropriation acts appropriations, an undergraduate student enrolled in or
184184 admitted to the university of Kansas school of medicine in a course of
185185 instruction leading to the degree of doctor of medicine may receive a
186186 separate loan under the medical student loan act for each separate year the
187187 student enters into a written medical student loan agreement with the
188188 university of Kansas school of medicine in accordance with K.S.A. 76-
189189 383, and amendments thereto. Loans may be awarded retroactively for any
190190 academic year that a student has completed successfully at the university
191191 of Kansas medical school but for which a loan had not previously been
192192 awarded. Retroactive loans shall be in an amount equal to the amount of
193193 tuition paid by the student, plus a stipend in an amount not to exceed the
194194 maximum amount of the stipend for such academic year multiplied by the
195195 number of months for which the student was enrolled at the medical
196196 school during such year the 12-month period. For each separate year a
197197 student receives a loan under the medical student loan act, the student shall
198198 engage in the full-time practice of medicine and surgery in an appropriate
199199 service commitment area for a period of 12 months unless such obligation
200200 is otherwise satisfied as provided in K.S.A. 76-386, and amendments
201201 thereto.
202202 (e) Medical student loans shall be awarded on a priority basis as
203203 follows: First, to qualified applicants who are Kansas residents at the time
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247247 of entry into the university of Kansas school of medicine; and second, to
248248 qualified applicants who are not Kansas residents at the time of entry into
249249 the university of Kansas school of medicine. As used in this subsection,
250250 "Kansas residents" means persons who meet the residence requirements
251251 established in K.S.A. 76-729, and amendments thereto.
252252 (f) Subject to appropriations, the university of Kansas school of
253253 medicine shall enter into medical student loan agreements with up to 12
254254 individuals who commit to satisfy obligations to engage in the full-time
255255 practice of medicine and surgery in a service commitment area by:
256256 (1) Serving as a full-time faculty member of the university of Kansas
257257 school of medicine in general psychiatry or child psychiatry pursuant to
258258 K.S.A. 76-384(c), and amendments thereto; or
259259 (2) performing at least 100 hours per month of on-site mental
260260 healthcare pursuant to K.S.A. 76-384(d), and amendments thereto.
261261 (g) For Any student who has entered into a medical student loan
262262 agreement pursuant to the medical student loan act, the university of
263263 Kansas school of medicine shall not prohibit or otherwise create any
264264 substantial impediment to such student switching between approved
265265 postgraduate residency training programs.
266266 Sec. 5. K.S.A. 76-384 is hereby amended to read as follows: 76-384.
267267 (a) Upon the selection of a service commitment area for the purposes of
268268 satisfying a service obligation under a medical student loan agreement
269269 entered into under this act, the person so selecting shall inform the
270270 university of Kansas school of medicine of the service commitment area
271271 selected.
272272 (b) A person serving in a service commitment area pursuant to any
273273 agreement under this act may serve all or part of any commitment in the
274274 service commitment area initially selected by such person. If such person
275275 moves from one service commitment area to another service commitment
276276 area, such person shall notify the university of Kansas school of medicine
277277 of such person's change of service commitment area. Service in any such
278278 service commitment area shall be deemed to be continuous for the purpose
279279 of satisfying any agreement entered into under this act.
280280 (c) A person receiving a medical student loan under this act in
281281 primary care, may satisfy the obligation to engage in the full-time practice
282282 of medicine and surgery in a service commitment area if the person serves
283283 as a full-time faculty member of the university of Kansas school of
284284 medicine in general internal medicine, general pediatrics, family medicine,
285285 or family practice, general psychiatry or child psychiatry and serves two
286286 years for each one year of such obligation, or the equivalent thereof on a
287287 two-for-one basis, except that, at the time any person commences
288288 satisfying such service obligation as a full-time faculty member pursuant
289289 to this subsection, the number of persons satisfying service commitments
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333333 or service obligations, pursuant to agreements under the medical student
334334 loan act, as full-time faculty members pursuant to this subsection shall not
335335 exceed the number equal to 25% of the total number of full-time faculty
336336 members of the university of Kansas school of medicine in general internal
337337 medicine, general pediatrics, family medicine, or family practice, general
338338 psychiatry or child psychiatry.
339339 (d) A person may satisfy the obligation to engage in the full-time
340340 practice of medicine and surgery in a service commitment area by
341341 performing at least 100 hours per month of on-site primary care or mental
342342 health care at a medical facility operated by a local health department or
343343 nonprofit organization in this state serving medically indigent persons or at
344344 a community mental health center or at Larned state hospital, Osawatomie
345345 state hospital or any facility that provides mental health services and that is
346346 operated by a state agency. As used in this subsection, "medically
347347 indigent" means a person who is:
348348 (1) Who is Unable to secure health care because of inability to pay
349349 for all or a part of the costs thereof due to inadequate personal resources,
350350 being uninsured, being underinsured, being ineligible for governmental
351351 health benefits; or
352352 (2) who is eligible for governmental benefits but is unable to obtain
353353 medical services; and "primary care" means general pediatrics, general
354354 internal medicine, family medicine and family practice.
355355 Sec. 6. K.S.A. 2024 Supp. 76-385 is hereby amended to read as
356356 follows: 76-385. (a) (1) Except as otherwise provided in paragraphs (2)
357357 through (6) or in K.S.A. 76-386, and amendments thereto, upon the failure
358358 of any person to satisfy the obligation to engage in the full-time practice of
359359 medicine and surgery within a service commitment area of this state for
360360 the required period of time under any medical student loan agreement
361361 entered into under this act, such person shall repay to the university of
362362 Kansas school of medicine in accordance with subsection (b) an amount
363363 equal to the total of: (A) The amount of money received by such person
364364 pursuant to such agreement, or the amount of money determined under
365365 rules and regulations of the university of Kansas; plus (B) annual interest
366366 at a rate of 15% from the date such money was received.
367367 (2) Any person who fails to apply for and enter an approved
368368 postgraduate residency training program shall be required to repay all
369369 moneys received pursuant to an agreement entered into for any such
370370 medical student loan, plus accumulated interest at an annual rate of 15%
371371 and shall commence such repayment in accordance with subsection (b)
372372 within 90 days of graduation from the school of medicine or upon
373373 termination or completion of a residency training program that does not
374374 comply with the provisions of this act, whichever is later.
375375 (3) If at any time a person is failing to satisfy an obligation to engage
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419419 in the full-time practice of medicine and surgery in Kansas for the required
420420 period of time under an agreement entered into under this act because such
421421 person is engaged in the full-time practice of medicine and surgery in a
422422 state other than Kansas, or within Kansas in an area that is not a service
423423 commitment area or in the practice of medicine and surgery which does
424424 not otherwise comply with the agreement entered into under this act, and if
425425 such person is subject to or currently making repayments under this
426426 section and if such person subsequently commences the practice of
427427 medicine and surgery in this state which is in a service commitment area
428428 or which otherwise complies with the agreement entered into under this
429429 act, the balance of the repayment amount, including interest thereon, from
430430 the time of such commencement of practice until the obligation of such
431431 person is satisfied, or until the time such person again becomes subject to
432432 repayments, shall be waived. All repayment amounts due prior to such
433433 commencement of practice, including interest thereon, shall continue to be
434434 payable as provided in this section. If subsequent to such commencement
435435 of practice, the person fails to satisfy such obligation, the person again
436436 shall be subject to repayments, including interest thereon, as otherwise
437437 provided in this section.
438438 (4) If, during the time a person is satisfying the service requirement
439439 of an agreement entered into under this act, such person desires to engage
440440 in less than the full-time practice of medicine and surgery within a service
441441 commitment area of the state and remain in satisfaction of such service
442442 requirement, such person may make application to the chancellor of the
443443 university of Kansas or the designee of the chancellor for permission to
444444 engage in less than such full-time practice of medicine and surgery. Upon
445445 a finding of exceptional circumstances made by the chancellor of the
446446 university of Kansas, or the designee of the chancellor, such person may
447447 be authorized to engage in less than the full-time practice of medicine and
448448 surgery within a service commitment area of the state for the remaining
449449 required period of time under such agreement and for an additional period
450450 of time which shall be equal to the length of the originally required period
451451 of time multiplied by the decimal fraction which is equal to the reduction
452452 of the full-time practice of medicine and surgery to be authorized
453453 hereunder, multiplied by two. In any such determination of the period
454454 required to be engaged in the less than full-time practice of medicine and
455455 surgery, the decimal fraction utilized shall not exceed 0.5 and any person
456456 granted permission to engage in less than the full-time practice of
457457 medicine and surgery in accordance with the provisions of this paragraph
458458 shall be required to engage in at least the half-time practice of medicine
459459 and surgery.
460460 (5) Any person who enters but fails to complete an approved
461461 postgraduate residency training program, or who enters and completes an
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505505 approved postgraduate residency training program but fails to satisfy the
506506 obligation to engage in the full-time practice of medicine and surgery
507507 within a service commitment area of this state for the required period of
508508 time shall be required to repay all money received pursuant to an
509509 agreement entered into under this act for any such medical student loan,
510510 plus accumulated interest at an annual rate of 15%, and shall commence
511511 such repayment in accordance with subsection (b) within 90 days of failure
512512 to complete an approved postgraduate residency training program or 90
513513 days of failure to commence qualifying practice, whichever occurs first.
514514 Any person who fails to satisfy the obligation to engage in the full-time
515515 practice of medicine and surgery in accordance with this section due to
516516 active military service of such person or such person's spouse shall not be
517517 required to pay the 15% annual interest rate on any moneys received under
518518 such agreement.
519519 (6) For any person who entered and completed an approved
520520 postgraduate residency training program in obstetrics and gynecology, if
521521 during the time such person is satisfying the service requirement of an
522522 agreement entered into pursuant to this act, such person is employed by,
523523 provides services at or establishes any clinic or facility as such terms are
524524 defined in K.S.A. 65-4a01, and amendments thereto, or performs or
525525 induces, or attempts to perform or induce, an abortion, except in the case
526526 of a medical emergency as defined in K.S.A. 65-6701, and amendments
527527 thereto, or in the case of a pregnancy resulting from rape or incest, such
528528 person shall be deemed to have failed to complete such person's service
529529 requirement and shall be required to repay all money received pursuant to
530530 an agreement entered into under this act for any such medical student loan,
531531 plus accumulated interest at an annual rate of 15%, and shall commence
532532 such repayment in accordance with subsection (b).
533533 (b) For any repayment requirement under this section, the person
534534 shall repay an amount totaling the entire amount to be repaid under all
535535 such agreements for which such obligations are not satisfied, including all
536536 amounts of interest at the rate prescribed. The repayment shall be made in
537537 not more than 10 equal annual installment payments.
538538 (c) All installment payments under this section shall commence six
539539 months after the date of the action or circumstance that causes the failure
540540 of the person to satisfy the obligations of such agreements, as determined
541541 by the university of Kansas school of medicine based upon the
542542 circumstances of each individual case. In all cases, if an installment
543543 payment becomes 91 days overdue, the entire amount outstanding shall
544544 become immediately due and payable, including all amounts of interest at
545545 the rate prescribed.
546546 (d) The total repayment obligation imposed under all agreements
547547 entered into under this act may be satisfied by the person who entered into
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591591 the agreements at any time prior to graduation from the university of
592592 Kansas school of medicine by making a single lump-sum payment equal to
593593 the total of: (1) The entire amount to be repaid under all such agreements
594594 upon failure to satisfy the obligations under such agreements to practice in
595595 Kansas; plus (2) all amounts of interest thereon at the rate prescribed to the
596596 date of payment.
597597 (e) The university of Kansas school of medicine shall remit all
598598 moneys received under this section to the state treasurer in accordance
599599 with the provisions of K.S.A. 75-4215, and amendments thereto. Upon
600600 receipt of each such remittance, the state treasurer shall deposit the entire
601601 amount in the state treasury to the credit of the medical loan repayment
602602 fund.
603603 (f) There is hereby created in the state treasury the medical loan
604604 repayment fund. All expenditures from the medical loan repayment fund
605605 shall be for medical student loans under the medical student loan act and
606606 for the expenses of administration of the medical student loan act and shall
607607 be made in accordance with appropriation acts upon warrants of the
608608 director of accounts and reports issued pursuant to vouchers approved by
609609 the chancellor of the university of Kansas or by a person designated by the
610610 chancellor, except that expenditures shall not be made from the medical
611611 loan repayment fund for medical student loans for medical students who
612612 intend to enter and complete an approved postgraduate residency training
613613 program in an approved specialty, including, but not limited to, obstetrics
614614 and gynecology, general psychiatry or child psychiatry. On the effective
615615 date of this act, the director of accounts and reports shall transfer all
616616 moneys in the medical scholarship and loan repayment fund to the medical
617617 loan repayment fund. On the effective date of this act, all liabilities of the
618618 medical scholarship and loan repayment fund are hereby imposed on the
619619 medical loan repayment fund and the medical scholarship and loan
620620 repayment fund is hereby abolished. Whenever the medical scholarship
621621 and loan repayment fund, or words of like effect, is referred to or
622622 designated by any statute, contract or other document, such reference or
623623 designation shall be deemed to apply to the medical loan repayment fund.
624624 The chancellor of the university of Kansas may transfer funds from the
625625 medical loan repayment fund to the specialty loan repayment fund for the
626626 purposes of medical student loans for students in an approved specialty
627627 program under the medical student loan act. The chancellor of the
628628 university of Kansas shall certify each such transfer to the director of
629629 accounts and reports and shall transmit a copy of each certification to the
630630 director of legislative research and the director of the budget.
631631 (g) There is hereby established in the state treasury the psychiatry
632632 specialty medical loan repayment fund. All moneys credited to the
633633 psychiatry specialty medical loan repayment fund shall be expended only
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677677 for medical student loans for general psychiatry or child psychiatry
678678 students in an approved specialty program under the medical student loan
679679 act and for the expenses of administration of the medical student loan act
680680 associated with such students. If in any one year, not all specialty
681681 agreements are awarded, such funds may be used for primary care
682682 agreements. All expenditures from the psychiatry specialty medical loan
683683 repayment fund shall be made in accordance with appropriation acts upon
684684 warrants of the director of accounts and reports issued pursuant to
685685 vouchers approved by the chancellor of the university of Kansas or the
686686 chancellor's designee. On July 1, 2025, the director of accounts and
687687 reports shall transfer all moneys in the psychiatry medical loan repayment
688688 fund and the OBGYN medical loan repayment fund to the specialty
689689 medical loan repayment fund. On the effective date of this act, all
690690 liabilities of the psychiatry medical loan fund and the OBGYN medical
691691 loan repayment fund are hereby transferred to and imposed on the
692692 specialty medical loan repayment fund. The psychiatry medical loan
693693 repayment fund and the OBGYN medical loan repayment fund are hereby
694694 abolished.
695695 (h) There is hereby established in the state treasury the OBGYN
696696 medical loan repayment fund. All moneys credited to the OBGYN medical
697697 loan repayment fund shall be expended only for medical student loans for
698698 medical students who intend to enter and complete an approved
699699 postgraduate residency training program in obstetrics and gynecology
700700 under the medical student loan act and for the expenses of administration
701701 of the medical student loan act associated with such students. All
702702 expenditures from the OBGYN medical loan repayment fund shall be
703703 made in accordance with appropriation acts upon warrants of the director
704704 of accounts and reports issued pursuant to vouchers approved by the
705705 chancellor of the university of Kansas or the chancellor's designee.
706706 (i) Notwithstanding any other provision of law to the contrary, no
707707 moneys shall be transferred from the comprehensive grant program
708708 account of the state board of regents to the medical loan repayment fund,
709709 the OBGYN specialty medical loan repayment fund or the psychiatry
710710 medical loan repayment fund or expended for any purposes related thereto.
711711 Sec. 7. K.S.A. 76-380 and 76-384 and K.S.A. 2024 Supp. 76-381, 76-
712712 382 and 76-385 are hereby repealed.
713713 Sec. 8. This act shall take effect and be in force from and after its
714714 publication in the statute book.
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