Amends existing law to provide for the Medical Education Fund and to provide for certain funding.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE SENATE SENATE BILL NO. 1420 BY STATE AFFAIRS COMMITTEE AN ACT1 RELATING TO MEDICAL EDUCATION; AMENDING SECTION 33-3731, IDAHO CODE, TO PRO-2 VIDE FOR THE MEDICAL EDUCATION FUND AND TO PROVIDE FOR A SOURCE OF FUND-3 ING; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.4

Be It Enacted by the Legislature of the State of Idaho:5

SECTION 1. That Section 33-3731, Idaho Code, be, and the same is hereby6 amended to read as follows:7 33-3731. CONTRACT REQUIREMENTS FOR STATE-SUPPORTED MEDICAL STUDENTS8 -- MEDICAL EDUCATION REIMBURSEMENT FUND. (1) An individual who qualifies as9 an Idaho resident pursuant to section 33-3717B, Idaho Code, and who is ac-10 cepted into a medical education program enrolling Idaho students supported11 by Idaho state funds in slots reserved for Idaho students shall, before12 confirming enrollment in such program or school, enter into a contract with13 the state board of education or the board's designee, which contract shall14 specify that the individual will commit to entering active full-time profes-15 sional practice in Idaho for a period of four (4) years within one (1) year16 of:17 (a) Obtaining a license to practice medicine;18 (b) Finishing a residency or subspecialty residency; or19 (c) Finishing a medical education fellowship as defined by the state20 board of education or the board's designee.21 (2) Each year of a residency served in Idaho, up to four (4) years, will22 be credited as one-half (1/2) year of the practice requirement provided in23 subsection (1) of this section. After the fourth year, no credit shall be24 given for any additional residency years.25 (3) An individual who fails to abide by the contract described in sub-26 section (1) of this section shall reimburse the state for the state's finan-27 cial obligation in supporting the individual's medical education, as deter-28 mined by the state board of education or the board's designee. Reimbursement29 must:30 (a) Begin within one (1) year of:31 (i) Obtaining a license to practice medicine;32 (ii) Finishing a residency or subspecialty residency; or33 (iii) Finishing a medical education fellowship as defined by the34 state board of education or the board's designee;35 (b) Be paid according to an amortized schedule established by the state36 board of education or the board's designee; and37 (c) Be completed within eight (8) years of the date the reimbursement38 requirement began.39 (4) The reimbursement obligation described in subsection (3) of this40 section:41 (a) Shall not accrue any interest; and42

2 (b) May, by act of the state board of education or the board's designee,1 be:2 (i) Suspended if reimbursement is temporarily impossible or3 would create extreme hardship for a temporary period, including4 but not limited to suspension for medical reasons, personal rea-5 sons, parental leave, or call to active duty in the armed forces;6 or7 (ii) Waived if:8 1. Reimbursement is permanently impossible or would create9 extreme hardship, including but not limited to death, in-10 ability to complete the program, or inability to obtain a li-11 cense to practice medicine; or12 2. The individual owing reimbursement is participating in13 a program of the federal government or United States armed14 forces that has a service requirement.15 (5) The provisions of this section shall apply to individuals matric-16 ulating in a medical education program enrolling Idaho students supported17 by Idaho state funds in slots reserved for Idaho students in fall 2023 and18 thereafter.19 (6) There is hereby established in the state treasury a medical educa-20 tion reimbursement fund, which shall be administered by the state board of21 education or the board's designee. Moneys in the fund shall:22 (a) Consist of:23 (i) Reimbursement paid pursuant to subsection (3) of this sec-24 tion;25 (ii) On and after July 1, 2028, one percent (1%) of the gross re-26 ceipts by the state of the tax on health insurance premiums, as27 provided by section 41-402, Idaho Code, hereby perpetually appro-28 priated to the medical education fund;29 (ii) (iii) Legislative appropriations;30 (iii) (iv) Donations; and31 (iv) (v) Interest earned on idle moneys in the fund; and32 (b) Be used for, subject to availability:33 (i) The costs of administering and enforcing the provisions of34 this section; and35 (ii) Incentive grants in an amount and according to a program36 established under state board of education policy. Such grants37 shall be awarded to licensed physicians who practice medicine in38 Idaho and who meet other criteria provided in board policy.39 (7) The state board of education is authorized to take such actions as40 are necessary to effectuate the provisions of this section.41

SECTION 2. An emergency existing therefor, which emergency is hereby42 declared to exist, this act shall be in full force and effect on and after43 July 1, 2026.44