SB 1152 Summary

• Restructures the board of medical student loans from 8 members to include representatives from each accredited medical school in Arizona, while reducing governor-appointed members from 3 to 2 and eliminating separate appointments from the Arizona Medical Board and osteopathic board.

• Modifies loan repayment penalties by eliminating the previous penalty structure and establishing tiered liquidated damages: no penalty for withdrawal during medical school, 10% of loan for residency withdrawal, and 25% for withdrawal while serving as a physician in the contracted area.

• Appropriates $2,000,000 from the state general fund in fiscal year 2020-2021 to the medical student loan fund and exempts this appropriation from lapsing provisions.

• Clarifies that all loan repayments (principal, interest, and penalties) are deposited into the medical student loan fund, which remains continuously appropriated for program purposes.

• Allows current board members serving on the effective date to continue until their terms expire, with all future appointments following the new statutory requirements.