Authority: §§ 23-35.9 through 23-35.13, 23-37.1 through 23-37.5, and 32.1-122.5:1 through 32.1-122.10, Code of Virginia.

A. Out of this appropriation, $1,015,000$371,932 from the general fund and $560,568 from nongeneral funds the first year and $1,015,000 $220,396 from the general fund and $560,568 from nongeneral funds the second year is provided from the general fund for financial incentives such as medical scholarships (for those medical students currently participating in the scholarship program), loan repayment, one-time salary bonuses, and travel expenses, and salary supplements to physicians, including psychiatrists, or medical students who are currently participating in the scholarship program and who commit to practice in underserved areas of the state. pursuant to § 32.1-122.6 Code of Virginia. Of the $1,015,000 each year, four scholarships the first year and four scholarships the second year shall be designated for Virginia residents who attend the School of Medicine at East Tennessee State University pursuant to § 32.1-122.5:1, Code of Virginia.The Virginia Department of Health will continue to grant scholarships to those medical students participating in the scholarship program for academic year 2002-2003, until their eligibility runs out. The agency will move towards a total loan repayment focused incentive program. The three state medical schools shall fully match all state funds for scholarships awarded to new current scholarship recipients applicants. Any unexpended and repaid medical scholarship money due to default shall revert to the pool of funding for financial incentives to recruit physicians, including psychiatrists, or medical students described above. The Department of Health, in cooperative with representatives from the three state medical schools, the Southwest Virginia Graduate Medical Education Consortium, the Quillen School of Medicine at East Tennessee State University and the Pikeville School of Osteopathic Medicine, shall develop the procedures and regulations to distribute the financial aid funds as appropriate to recruit physicians, including psychiatrists, and medical students to medically underserved areas of the Commonwealth. All financial aid shall be awarded in accordance with regulations promulgated by the Board of Health. The Department shall maintain an accounting of the numbers and amount of the scholarship and loan repayment awards made each year, and the specialties of the physicians receiving the awards. The Board of Health shall promulgate regulations to implement the provisions of this Item within 280 days of enactment.

B.1. Out of this appropriation, $1,058,139 $914,418 the first year and $950,000 $100,000 the second year from the general fund are provided pursuant to § 32.1-122.7, Code of Virginia, to support the Virginia Statewide Area Health Education Centers. General fund appropriations in this item shall be used for the recruitment, training, continuing education, and practice support of health care professionals for medically underserved areas and areas with medically underserved populations.

2. Out of the amounts appropriated in the preceding paragraph, $158,139 the first year and $40,000 the second year from the general fund are provided to support health professions training activities conducted under the auspices of the Virginia Statewide Area Health Education Centers Program, in cooperation with Virginia's three medical schools, to achieve the goals of the Virginia Generalist Initiative. The following amounts shall be provided to support student recruitment and admissions activities: $68,239 the first year for the statewide Center for the Advancement of Generalist Medicine at the University of Virginia; $49,900 the first year for the Virginia Commonwealth University Medical College of Virginia's Center for the Advancement of Generalist Medicine; and $40,000 the first year and $40,000 the second year for the Virginia Statewide Area Health Education Centers Program. These resources shall be used to supplement the student recruitment and admissions initiatives at Virginia's three medical schools and the Virginia Statewide Area Health Education Centers Program.

3. Out of the amounts appropriated in paragraph B 1, $900,000 the first year and $910,000 the second year from the general fund are provided to the community Area Health Education Centers. All community AHECs will continue to develop local and regional partnerships and collaborative funding ventures that help support the costs of program development, implementation, and evaluation.

4. The Statewide Area Health Education Centers (AHEC) Program shall submit a report by October 1 each year to the Chairmen of the Senate Finance Committee, the House Appropriations Committee, and the Joint Commission on Health Care that documents (i) the actions taken to secure nonstate funding to support AHEC activities, and (ii) a cash match of at least 50 percent of the funds provided by the Commonwealth.

5. The Department of Health shall assess the activities of the Statewide AHEC Program and the need for continued state funding for the statewide office and the Centers for the Advancement of Generalist Medicine at the University of Virginia and the Medical College of Virginia. The Department shall report its findings and recommendations to the Governor and Chairmen of the House Appropriations and Senate Finance Committees by October 15, 2002.

C. Out of this appropriation, $25,000 the first year and $25,000 the second year is provided from the general fund for five nurse practitioner scholarships pursuant to § 32.1-122.6:02, Code of Virginia.

D. Out of this appropriation, $25,000 the first year and $25,000 the second year shall be provided from the general fund for scholarships for dental students and loan repayments for dentists. The Department is authorized to use these funds to award either a scholarship or a loan repayment, depending on the needs of the individual dental student or dentist being recruited to a dental underserved area of the Commonwealth. All scholarships or loan repayments shall be awarded in accordance with regulations promulgated by the Board of Health. The Department shall maintain an accounting of the number and amount of the scholarship and loan repayment awards made each year. The Board of Health shall promulgate regulations to implement the provisions of this Item within 280 days of enactment.

E. Out of this appropriation, $295,920 the first year and $295,920 the second year from the general fund are provided to support the development of the Southwest Virginia Graduate Medical Education Consortium to create and support medical residency preceptor sites in rural and underserved communities in Southwest Virginia.