Session of 2025
HOUSE BILL No. 2374
By Committee on Appropriations
Requested by Representative Francis on behalf of the University of Kansas
2-11
AN ACT relating to healthcare professions; creating a specialty practice
student loan program; establishing the specialty medical loan
repayment fund; allowing for transfers from the psychiatry medical
loan repayment fund and the OBGYN medical loan repayment fund to
the specialty medical loan repayment fund; abolishing the psychiatry
medical loan repayment fund and the OBGYN medical loan repayment
fund; amending K.S.A. 76-384and K.S.A. 2024 Supp. 76-381, 76-382
and 76-385 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) There is hereby established a specialty practice
student loan program. Subject to appropriations and the terms set forth in
K.S.A. 76-383, and amendments thereto, the university of Kansas school
of medicine may enter into medical student loan agreements with
undergraduate students who intend to pursue practice in an approved
specialty and commit to satisfy obligations to engage in the full-time
practice of medicine and surgery in a service commitment area, pursuant to
this act.
(b) The chancellor of the university of Kansas has authority to
administer the medical specialty student loan program, including
discretion to determine workforce needs and allocate which specialties are
eligible for the non-primary care allotment of agreements.
(c) The chancellor of the university of Kansas may determine the new
specialties to add to approved specialties, as defined in section 2, and
amendments thereto, if such specialties are underserved in Kansas and
evaluate or update which locations are compliant as service commitment
areas based on population, comorbidity, community needs and other
relevant data. The university of Kansas school of medicine shall submit a
report annually to the senate committee on public health and welfare,
senate committee on ways and means, house committee on health and
human services and house committee on appropriations relating to any
changes made to specialties or compliant service commitment areas.
(d) In any one fiscal year, any unawarded specialty agreements may
be used for primary care agreements. Unawarded primary care agreements
may not be used for specialty agreements.
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Sec. 2. K.S.A. 76-380 is hereby amended to read as follows: 76-380.
The provisions of K.S.A. 76-380 through 76-386, and amendments
thereto, and section 1, and amendments thereto, shall be known and may
be cited as the medical student loan act.
Sec. 3. K.S.A. 2024 Supp. 76-381 is hereby amended to read as
follows: 76-381. As used in K.S.A. 76-380 through 76-386, and
amendments thereto the medical student loan act:
(a) "Act" means the medical student loan act;
(b) "approved postgraduate residency training program" means a
residency training program in general pediatrics, general internal
medicine, family medicine, family practice, emergency medicine,
obstetrics and gynecology, general psychiatry, child psychiatry or
fellowship training in geriatric medicine, or any other residency or
fellowship training in an approved specialty;
(c) "service commitment area" means:
(1) Any community within any county in Kansas other than Douglas,
Johnson, Sedgwick, Shawnee or Wyandotte county;
(2) any state medical care facility or institution;
(3) any medical center operated by the veterans administration of the
United States;
(4) the university of Kansas school of medicine if serving as full-time
faculty as provided in K.S.A. 76-384(c), and amendments thereto; or
(5) any community within Wyandotte county for purposes of any
practice obligation under an agreement entered into by a person who is
enrolled for the first time after July 1, 2004, in a course of study leading to
the medical degree. "Service commitment area" for approved specialty
providers means any community within any county in Kansas, other than
Douglas, Johnson, Sedgwick, Shawnee or Wyandotte; and
(d) "state medical care facility or institution" includes, but is not
limited to, the Kansas state school for the blind, the Kansas state school for
the deaf, any institution under the secretary for aging and disability
services, as defined in K.S.A. 76-12a01, and amendments thereto, any
institution as defined in K.S.A. 38-2302, and amendments thereto, the
Kansas soldiers' home, the Kansas veterans' home and any correctional
institution under the secretary of corrections, as defined in K.S.A. 75-
5202, and amendments thereto, but shall not include any state educational
institution under the state board of regents, as defined in K.S.A. 76-711,
and amendments thereto, except as specifically provided by statute.
(e) "approved specialty" means gynecology, general psychiatry and
any specialty approved by the chancellor of the university of Kansas; and
(f) "primary care" means general pediatrics, general internal
medicine, family medicine, family practice and emergency medicine.
Sec. 4. K.S.A. 2024 Supp. 76-382 is hereby amended to read as
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follows: 76-382. (a) There is hereby established the medical student loan
program at the university of Kansas school of medicine.
(b) Subject to the provisions of appropriation acts appropriations, the
university of Kansas school of medicine may make medical student loans
in accordance with the provisions of the medical student loan act to
undergraduate students enrolled in or admitted to the university of Kansas
school of medicine in a course of instruction leading to the degree of
doctor of medicine who enter into a written medical student loan
agreement with the university of Kansas school of medicine in accordance
with K.S.A. 76-383, and amendments thereto.
(c) Each medical student loan agreement under the medical student
loan act shall provide to the person receiving the loan the payment of all
tuition and a stipend for living expenses in an amount of up to $2,000 per
month for each month enrolled in such school during a year a 12-month
period. Subject to the maximum amount, the amount of the monthly
stipend shall be determined on an annual basis by the student receiving the
loan.
(d) Subject to the provisions of appropriation acts appropriations,
medical student loan agreements under the medical student loan act may
be entered into on an annual basis and shall provide the payment of the
amounts specified under subsection (c) for one year unless otherwise
terminated before such period of time. Subject to the provisions of
appropriation acts appropriations, an undergraduate student enrolled in or
admitted to the university of Kansas school of medicine in a course of
instruction leading to the degree of doctor of medicine may receive a
separate loan under the medical student loan act for each separate year the
student enters into a written medical student loan agreement with the
university of Kansas school of medicine in accordance with K.S.A. 76-
383, and amendments thereto. Loans may be awarded retroactively for any
academic year that a student has completed successfully at the university
of Kansas medical school but for which a loan had not previously been
awarded. Retroactive loans shall be in an amount equal to the amount of
tuition paid by the student, plus a stipend in an amount not to exceed the
maximum amount of the stipend for such academic year multiplied by the
number of months for which the student was enrolled at the medical
school during such year the 12-month period. For each separate year a
student receives a loan under the medical student loan act, the student shall
engage in the full-time practice of medicine and surgery in an appropriate
service commitment area for a period of 12 months unless such obligation
is otherwise satisfied as provided in K.S.A. 76-386, and amendments
thereto.
(e) Medical student loans shall be awarded on a priority basis as
follows: First, to qualified applicants who are Kansas residents at the time
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of entry into the university of Kansas school of medicine; and second, to
qualified applicants who are not Kansas residents at the time of entry into
the university of Kansas school of medicine. As used in this subsection,
"Kansas residents" means persons who meet the residence requirements
established in K.S.A. 76-729, and amendments thereto.
(f) Subject to appropriations, the university of Kansas school of
medicine shall enter into medical student loan agreements with up to 12
individuals who commit to satisfy obligations to engage in the full-time
practice of medicine and surgery in a service commitment area by:
(1) Serving as a full-time faculty member of the university of Kansas
school of medicine in general psychiatry or child psychiatry pursuant to
K.S.A. 76-384(c), and amendments thereto; or
(2) performing at least 100 hours per month of on-site mental
healthcare pursuant to K.S.A. 76-384(d), and amendments thereto.
(g) For Any student who has entered into a medical student loan
agreement pursuant to the medical student loan act, the university of
Kansas school of medicine shall not prohibit or otherwise create any
substantial impediment to such student switching between approved
postgraduate residency training programs.
Sec. 5. K.S.A. 76-384 is hereby amended to read as follows: 76-384.
(a) Upon the selection of a service commitment area for the purposes of
satisfying a service obligation under a medical student loan agreement
entered into under this act, the person so selecting shall inform the
university of Kansas school of medicine of the service commitment area
selected.
(b) A person serving in a service commitment area pursuant to any
agreement under this act may serve all or part of any commitment in the
service commitment area initially selected by such person. If such person
moves from one service commitment area to another service commitment
area, such person shall notify the university of Kansas school of medicine
of such person's change of service commitment area. Service in any such
service commitment area shall be deemed to be continuous for the purpose
of satisfying any agreement entered into under this act.
(c) A person receiving a medical student loan under this act in
primary care, may satisfy the obligation to engage in the full-time practice
of medicine and surgery in a service commitment area if the person serves
as a full-time faculty member of the university of Kansas school of
medicine in general internal medicine, general pediatrics, family medicine,
or family practice, general psychiatry or child psychiatry and serves two
years for each one year of such obligation, or the equivalent thereof on a
two-for-one basis, except that, at the time any person commences
satisfying such service obligation as a full-time faculty member pursuant
to this subsection, the number of persons satisfying service commitments
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or service obligations, pursuant to agreements under the medical student
loan act, as full-time faculty members pursuant to this subsection shall not
exceed the number equal to 25% of the total number of full-time faculty
members of the university of Kansas school of medicine in general internal
medicine, general pediatrics, family medicine, or family practice, general
psychiatry or child psychiatry.
(d) A person may satisfy the obligation to engage in the full-time
practice of medicine and surgery in a service commitment area by
performing at least 100 hours per month of on-site primary care or mental
health care at a medical facility operated by a local health department or
nonprofit organization in this state serving medically indigent persons or at
a community mental health center or at Larned state hospital, Osawatomie
state hospital or any facility that provides mental health services and that is
operated by a state agency. As used in this subsection, "medically
indigent" means a person who is:
(1) Who is Unable to secure health care because of inability to pay
for all or a part of the costs thereof due to inadequate personal resources,
being uninsured, being underinsured, being ineligible for governmental
health benefits; or
(2) who is eligible for governmental benefits but is unable to obtain
medical services; and "primary care" means general pediatrics, general
internal medicine, family medicine and family practice.
Sec. 6. K.S.A. 2024 Supp. 76-385 is hereby amended to read as
follows: 76-385. (a) (1) Except as otherwise provided in paragraphs (2)
through (6) or in K.S.A. 76-386, and amendments thereto, upon the failure
of any person to satisfy the obligation to engage in the full-time practice of
medicine and surgery within a service commitment area of this state for
the required period of time under any medical student loan agreement
entered into under this act, such person shall repay to the university of
Kansas school of medicine in accordance with subsection (b) an amount
equal to the total of: (A) The amount of money received by such person
pursuant to such agreement, or the amount of money determined under
rules and regulations of the university of Kansas; plus (B) annual interest
at a rate of 15% from the date such money was received.
(2) Any person who fails to apply for and enter an approved
postgraduate residency training program shall be required to repay all
moneys received pursuant to an agreement entered into for any such
medical student loan, plus accumulated interest at an annual rate of 15%
and shall commence such repayment in accordance with subsection (b)
within 90 days of graduation from the school of medicine or upon
termination or completion of a residency training program that does not
comply with the provisions of this act, whichever is later.
(3) If at any time a person is failing to satisfy an obligation to engage
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in the full-time practice of medicine and surgery in Kansas for the required
period of time under an agreement entered into under this act because such
person is engaged in the full-time practice of medicine and surgery in a
state other than Kansas, or within Kansas in an area that is not a service
commitment area or in the practice of medicine and surgery which does
not otherwise comply with the agreement entered into under this act, and if
such person is subject to or currently making repayments under this
section and if such person subsequently commences the practice of
medicine and surgery in this state which is in a service commitment area
or which otherwise complies with the agreement entered into under this
act, the balance of the repayment amount, including interest thereon, from
the time of such commencement of practice until the obligation of such
person is satisfied, or until the time such person again becomes subject to
repayments, shall be waived. All repayment amounts due prior to such
commencement of practice, including interest thereon, shall continue to be
payable as provided in this section. If subsequent to such commencement
of practice, the person fails to satisfy such obligation, the person again
shall be subject to repayments, including interest thereon, as otherwise
provided in this section.
(4) If, during the time a person is satisfying the service requirement
of an agreement entered into under this act, such person desires to engage
in less than the full-time practice of medicine and surgery within a service
commitment area of the state and remain in satisfaction of such service
requirement, such person may make application to the chancellor of the
university of Kansas or the designee of the chancellor for permission to
engage in less than such full-time practice of medicine and surgery. Upon
a finding of exceptional circumstances made by the chancellor of the
university of Kansas, or the designee of the chancellor, such person may
be authorized to engage in less than the full-time practice of medicine and
surgery within a service commitment area of the state for the remaining
required period of time under such agreement and for an additional period
of time which shall be equal to the length of the originally required period
of time multiplied by the decimal fraction which is equal to the reduction
of the full-time practice of medicine and surgery to be authorized
hereunder, multiplied by two. In any such determination of the period
required to be engaged in the less than full-time practice of medicine and
surgery, the decimal fraction utilized shall not exceed 0.5 and any person
granted permission to engage in less than the full-time practice of
medicine and surgery in accordance with the provisions of this paragraph
shall be required to engage in at least the half-time practice of medicine
and surgery.
(5) Any person who enters but fails to complete an approved
postgraduate residency training program, or who enters and completes an
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approved postgraduate residency training program but fails to satisfy the
obligation to engage in the full-time practice of medicine and surgery
within a service commitment area of this state for the required period of
time shall be required to repay all money received pursuant to an
agreement entered into under this act for any such medical student loan,
plus accumulated interest at an annual rate of 15%, and shall commence
such repayment in accordance with subsection (b) within 90 days of failure
to complete an approved postgraduate residency training program or 90
days of failure to commence qualifying practice, whichever occurs first.
Any person who fails to satisfy the obligation to engage in the full-time
practice of medicine and surgery in accordance with this section due to
active military service of such person or such person's spouse shall not be
required to pay the 15% annual interest rate on any moneys received under
such agreement.
(6) For any person who entered and completed an approved
postgraduate residency training program in obstetrics and gynecology, if
during the time such person is satisfying the service requirement of an
agreement entered into pursuant to this act, such person is employed by,
provides services at or establishes any clinic or facility as such terms are
defined in K.S.A. 65-4a01, and amendments thereto, or performs or
induces, or attempts to perform or induce, an abortion, except in the case
of a medical emergency as defined in K.S.A. 65-6701, and amendments
thereto, or in the case of a pregnancy resulting from rape or incest, such
person shall be deemed to have failed to complete such person's service
requirement and shall be required to repay all money received pursuant to
an agreement entered into under this act for any such medical student loan,
plus accumulated interest at an annual rate of 15%, and shall commence
such repayment in accordance with subsection (b).
(b) For any repayment requirement under this section, the person
shall repay an amount totaling the entire amount to be repaid under all
such agreements for which such obligations are not satisfied, including all
amounts of interest at the rate prescribed. The repayment shall be made in
not more than 10 equal annual installment payments.
(c) All installment payments under this section shall commence six
months after the date of the action or circumstance that causes the failure
of the person to satisfy the obligations of such agreements, as determined
by the university of Kansas school of medicine based upon the
circumstances of each individual case. In all cases, if an installment
payment becomes 91 days overdue, the entire amount outstanding shall
become immediately due and payable, including all amounts of interest at
the rate prescribed.
(d) The total repayment obligation imposed under all agreements
entered into under this act may be satisfied by the person who entered into
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the agreements at any time prior to graduation from the university of
Kansas school of medicine by making a single lump-sum payment equal to
the total of: (1) The entire amount to be repaid under all such agreements
upon failure to satisfy the obligations under such agreements to practice in
Kansas; plus (2) all amounts of interest thereon at the rate prescribed to the
date of payment.
(e) The university of Kansas school of medicine shall remit all
moneys received under this section to the state treasurer in accordance
with the provisions of K.S.A. 75-4215, and amendments thereto. Upon
receipt of each such remittance, the state treasurer shall deposit the entire
amount in the state treasury to the credit of the medical loan repayment
fund.
(f) There is hereby created in the state treasury the medical loan
repayment fund. All expenditures from the medical loan repayment fund
shall be for medical student loans under the medical student loan act and
for the expenses of administration of the medical student loan act and shall
be made in accordance with appropriation acts upon warrants of the
director of accounts and reports issued pursuant to vouchers approved by
the chancellor of the university of Kansas or by a person designated by the
chancellor, except that expenditures shall not be made from the medical
loan repayment fund for medical student loans for medical students who
intend to enter and complete an approved postgraduate residency training
program in an approved specialty, including, but not limited to, obstetrics
and gynecology, general psychiatry or child psychiatry. On the effective
date of this act, the director of accounts and reports shall transfer all
moneys in the medical scholarship and loan repayment fund to the medical
loan repayment fund. On the effective date of this act, all liabilities of the
medical scholarship and loan repayment fund are hereby imposed on the
medical loan repayment fund and the medical scholarship and loan
repayment fund is hereby abolished. Whenever the medical scholarship
and loan repayment fund, or words of like effect, is referred to or
designated by any statute, contract or other document, such reference or
designation shall be deemed to apply to the medical loan repayment fund.
The chancellor of the university of Kansas may transfer funds from the
medical loan repayment fund to the specialty loan repayment fund for the
purposes of medical student loans for students in an approved specialty
program under the medical student loan act. The chancellor of the
university of Kansas shall certify each such transfer to the director of
accounts and reports and shall transmit a copy of each certification to the
director of legislative research and the director of the budget.
(g) There is hereby established in the state treasury the psychiatry
specialty medical loan repayment fund. All moneys credited to the
psychiatry specialty medical loan repayment fund shall be expended only
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for medical student loans for general psychiatry or child psychiatry
students in an approved specialty program under the medical student loan
act and for the expenses of administration of the medical student loan act
associated with such students. If in any one year, not all specialty
agreements are awarded, such funds may be used for primary care
agreements. All expenditures from the psychiatry specialty medical loan
repayment fund shall be made in accordance with appropriation acts upon
warrants of the director of accounts and reports issued pursuant to
vouchers approved by the chancellor of the university of Kansas or the
chancellor's designee. On July 1, 2025, the director of accounts and
reports shall transfer all moneys in the psychiatry medical loan repayment
fund and the OBGYN medical loan repayment fund to the specialty
medical loan repayment fund. On the effective date of this act, all
liabilities of the psychiatry medical loan fund and the OBGYN medical
loan repayment fund are hereby transferred to and imposed on the
specialty medical loan repayment fund. The psychiatry medical loan
repayment fund and the OBGYN medical loan repayment fund are hereby
abolished.
(h) There is hereby established in the state treasury the OBGYN
medical loan repayment fund. All moneys credited to the OBGYN medical
loan repayment fund shall be expended only for medical student loans for
medical students who intend to enter and complete an approved
postgraduate residency training program in obstetrics and gynecology
under the medical student loan act and for the expenses of administration
of the medical student loan act associated with such students. All
expenditures from the OBGYN medical loan repayment fund shall be
made in accordance with appropriation acts upon warrants of the director
of accounts and reports issued pursuant to vouchers approved by the
chancellor of the university of Kansas or the chancellor's designee.
(i) Notwithstanding any other provision of law to the contrary, no
moneys shall be transferred from the comprehensive grant program
account of the state board of regents to the medical loan repayment fund,
the OBGYN specialty medical loan repayment fund or the psychiatry
medical loan repayment fund or expended for any purposes related thereto.
Sec. 7. K.S.A. 76-380 and 76-384 and K.S.A. 2024 Supp. 76-381, 76-
382 and 76-385 are hereby repealed.
Sec. 8. This act shall take effect and be in force from and after its
publication in the statute book.
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