HB 2374

                            HOUSE BILL No. 2374
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. 76-380 and K.S.A. 2025 Supp. 76-381, 76-382, 76-384 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.
    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. 2025 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
                   HOUSE BILL No. 2374—page 2
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. 2025 Supp. 76-382 is hereby amended to read as
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 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
                   HOUSE BILL No. 2374—page 3
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. 2025 Supp. 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 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, south central regional mental
health hospital or any facility that provides mental health services and
that is operated by a state agency. As used in this subsection:
    (1) "Medically indigent" means a person who is:
    (A) Unable to secure healthcare 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
    (B) eligible for governmental benefits but is unable to obtain
medical services; and
                   HOUSE BILL No. 2374—page 4
    (2) "primary care" means general pediatrics, general internal
medicine, family medicine and family practice.
    Sec. 6. K.S.A. 2025 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 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
                   HOUSE BILL No. 2374—page 5
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 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 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
                    HOUSE BILL No. 2374—page 6
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 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, 2026, 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
                           HOUSE BILL No. 2374—page 7
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 K.S.A. 2025 Supp. 76-381, 76-382, 76-
384 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.
I hereby certify that the above BILL originated in the HOUSE, and passed
that body
                                                                                     Speaker of the House.
                                                                                Chief Clerk of the House.
Passed the SENATE  ______________________________________________________________________________
                                                                                   President of the Senate.
                                                                                   Secretary of the Senate.
APPROVED   __________________________________________________________________________________________________
                                                                                                       Governor.