Requires that certain medical education programs give priority to certain applicants.

This bill requires New Jersey teaching hospitals that receive state funding for graduate medical education to prioritize applicants who are New Jersey residents (graduated from NJ high school) or enrolled at one of the state's four public medical schools (Cooper, Rowan, Rutgers New Jersey Medical, or Rutgers Robert Wood Johnson) for residency, fellowship, and third/fourth year clerkship placements. Hospitals failing to comply face a 20% reallocation of their Medicaid funding for graduate medical education. The law specifically targets hospitals licensed under P.L.1971, c.136, applying to both residency placements and clerkship opportunities for medical students. Non-compliance penalties are enforced through state reallocation of Medicaid funds, not by altering hospital admissions policies directly.