We were told by our clinical education office that for your 3rd year, you can do you selective/elective rotations wherever you want, as long as the school has an affiliation agreement with the physician (and hospital if the doc has hospital privileges). I know of a few friends who set up rotations outside the state in their hometowns.
I don't know how 4th year will go, but I'm going to assume that rules are more lax as people travel all over for audition rotations and electives.
