Oklahoma 2022 Regular Session

Oklahoma House Bill HB2776 Latest Draft

Bill / Enrolled Version Filed 05/20/2022

                            An Act 
ENROLLED HOUSE 
BILL NO. 2776 	By: Pfeiffer of the House 
 
   and 
 
  Montgomery and Pederson of 
the Senate   
 
 
 
 
 
 
An Act relating to health care workforce development; 
creating the Health Care Workforce Development and 
Finance Act of 2022; creating the Health Care 
Workforce Development Revolving Fund; establishing 
nature of fund; establ ishing funding sources; 
authorizing fund utilization for certain purposes; 
declaring funds appropriated; limiting budgeting and 
expenditure authority; requiring certain budgeting 
and expenditure procedure s; requiring budgeting and 
expenditure of funds by certain dates; amending 63 
O.S. 2021, Sections 1-2721, 1-2722, and 1-2723, which 
relate to the Oklahoma Medical Loa n Repayment 
Program; renaming certain agency of the state; 
amending 70 O.S. 2021, Section s 625.1, 625.2, 625.3, 
625.4, 625.4a, 625.9, 625.10a, 625.11, 625.13, and 
625.14, which relate to the Oklahoma Rural Medical 
Education Loan and Scholarship Fun d; renaming certain 
agency of the state; amending 70 O.S. 2021, Sections 
697.1, 697.2, 697.3, 697.5, 697.6, 697.7, 697.8, 
697.9, 697.10, 697.11, 697.12, 697.15, 697.16, 
697.17, 697.18, 697.19, 697.20, 697.21, and 697.21a, 
which relate to the P hysician Manpower Training 
Commission; renaming certain agency of the state; 
expanding board membership ; establishing eligibility 
requirements for certain appointments; placing 
certain positions in the unclas sified service after 
certain date under certain condition ; providing for 
noncodification; and providing for codification . 
 
 
 
  ENR. H. B. NO. 2776 	Page 2 
 
SUBJECT: Health care workforce development 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
 
SECTION 1.     NEW LAW     A new section of law not to be 
codified in the Oklahoma Statutes reads as follows: 
 
This act shall be known and may be cited as the "Health Care 
Workforce Development and Finance Act of 2022 ". 
 
SECTION 2.     NEW LAW     A new section of law to be codified 
in the Oklahoma Statutes as Section 697.21b of Title 70, unless 
there is created a d uplication in numbering, reads as follows: 
 
A.  There is hereby created in the State Treasury until July 1, 
2027, a revolving fund for the Health Care Workforce Training 
Commission to be designated the "Health Care Workforce Development 
Revolving Fund".  The fund shall be a continuing fund, not subject 
to fiscal year limitations, and shall consist of all available 
monies: 
 
1.  Received by the state as Coronavirus State and Local Fiscal 
Recovery Funds pursuant to Section 9901 of the American R escue Plan 
Act of 2021, Pub. L. No. 117-2; 
 
2.  Directed to the state by the federal government for the 
purpose of recruiting, educating, and stabilizing Oklahoma's health 
care workforce; 
 
3.  Derived as interest and income from deposits and investments 
of fund assets; and 
 
4.  Designated for deposit by law. 
 
B.  1.  All monies accruing to the credit of said fund are 
hereby appropriated and may be budgeted and expended by the Health 
Care Workforce Training Commission for authorized purpose s as 
provided in paragraph 2 of this subsection. Expenditures from said 
fund shall be made upon w arrants issued by the State Treasurer 
against claims filed as prescribed by law with the Director o f the 
Office of Management and Enterprise Serv ices for approval and 
payment. 
  ENR. H. B. NO. 2776 	Page 3 
2.  All monies accruing to the credit of said fund shall be 
utilized for the purpose of recruiting, educating, and stabilizing 
Oklahoma's health care workforce, including the cost s and expenses 
of operating such programs. 
 
3.  All monies accruing to the credit of the f und shall be 
budgeted or encumbered no later than December 31, 2024, and shall be 
expended no later than December 31, 2026. 
 
4.  All monies accruing to the credit of th e fund shall be 
budgeted, expended, and transferred in strict accordance with 
applicable state and federal law and guidance providing for and 
limiting the utilization of such funds. 
 
SECTION 3.     AMENDATORY     63 O.S. 2021, Section 1 -2721, is 
amended to read as follows: 
 
Section 1-2721. A.  1.  The Physician Manpower Health Care 
Workforce Training Commission sha ll administer the Oklahoma Medical 
Loan Repayment Program. 
 
2.  For the purposes of this section, "primary care physicians" 
shall mean physicians practicing in family medicine, geriatrics, 
general internal medicine, general pediatrics, 
obstetrics/gynecology , or emergency medicine. 
 
3.  For the purposes of this section, "health center" shall mean 
a federally qualified health center as defined by 42 U.S.C., Section 
1905(1)(2)(B). 
 
4.  For the purposes of this se ction, "teaching health center" 
shall mean a health center that supports the residencies of primary 
care physicians within the operations of the health center. 
 
5.  The Program, depending upon and limited to available 
funding, shall provide educational loan repayment assistance to 
Oklahoma licensed primary care physicians and physician assistants 
who agree to establish a practice in a community located in Oklahoma 
approved by the Commission. 
 
6. Each award shall be for a contracted period and shall be 
distributed to the participant by drafts made payable to the 
participant at the end of each contract year with disbursements not 
to exceed an amount to be established annually by the Co mmission.  
Prior to any disbursement, the Commission shall certify and proper ly  ENR. H. B. NO. 2776 	Page 4 
review reports submitted by the participating ph ysician or physician 
assistant detailing performance of activities in accordance with the 
Program. 
 
7.  The Commission shall revi ew the performance in the Program 
of the participating physician or physician assistant and determine 
whether an award may be gr anted for additional years pursuant to 
rules promulgated by the Commission. 
 
B.  The physicians and physician assistants entering the Program 
each year shall agree to provide medical care and services in ar eas 
designated by the Commission to provide medical care and services to 
Medicaid recipients as authorized by the Oklahoma Health Care 
Authority. 
 
C.  A physician or physician assi stant shall be eligible to 
participate in the loan repayment program if the i ndividual: 
 
1.  Is a physician that holds a current Oklahoma medical 
license; 
 
2.  Is a new primary care graduate physician or physician 
assistant.  Preference will be given to grad uates of the primary 
care residency programs affiliated with the Oklahoma St ate 
University College of Osteopathic Medicine, the University of 
Oklahoma College of Medicine and the teaching hospitals affiliated 
with both schools of medicine and teaching heal th centers located in 
this state; or 
 
3.  Is a current practicing physician or physician assistant and 
has met criteria establish ed by the Commission. 
 
D.  The Commission may accept donations of public or private 
funds to assist in funding the Medical Loan R epayment Program.  The 
Commission may, at its discretion, contract with ot her public 
entities and nonprofit corporations for the endowment, management 
and administration of such funds. 
 
E.  The Commission shall present a report on the operation of 
the Program to the Governor, the Speaker of the House of 
Representatives, and the President Pro Tempore of the Senate within 
one (1) month of the beginning of each regular session of the 
Legislature, including but not limited to the progress made in 
accomplishing the goal of the Program. 
  ENR. H. B. NO. 2776 	Page 5 
SECTION 4.     AMENDATORY     63 O.S. 2021, Section 1-2722, is 
amended to read as follows: 
 
Section 1-2722. The amount of the award of educational loan 
repayment assistance shall not exceed any maximum or minimum a mount 
as promulgated by rules of the Physician Manpower Health Care 
Workforce Training Commission pursuant to the Oklahoma Medical Loan 
Repayment Program.  The actual amount of the award shall be based 
upon a determination of: 
 
1.  Actual funds available to the Program for expendit ure; and 
 
2.  The existing student loan indeb tedness of the participating 
physician. 
 
SECTION 5.     AMENDATORY     63 O.S. 2021, Section 1 -2723, is 
amended to read as follows: 
 
Section 1-2723. A.  The Physician Manpower Health Care 
Workforce Training Commission shall have the option of utilizing 
available funding in excess of the amount nec essary to fund the 
Oklahoma Medical Loan Repayment Progra m described in Section 1 -2721 
of this title to fund new or expanded pri mary care residency 
programs in rural and underserved areas of the state.  Such new or 
expanded primary care residency program f unding shall include but 
not be limited to: 
 
1.  Payments to hospitals or teaching health centers desiring to 
establish new primary care residency program s.  Such payments shall 
be made to cover the costs of salaries, benefits and educational 
costs of residents in training at the facility; or 
 
2.  Payments to hosp itals or teaching health center s with 
existing primary residency progra ms desiring to expand the number of 
residents participating in those programs.  Such payments shall be 
made to cover the costs o f salaries, benefits and educational costs 
of residents in training at the facility . 
 
B.  Provisions of this section shall be sub ject to the 
promulgated rules of the Commission. 
 
SECTION 6.    AMENDATORY     70 O.S. 2021, Section 625.1, is 
amended to read as follows: 
  ENR. H. B. NO. 2776 	Page 6 
Section 625.1 There is hereby established t he Oklahoma Rural 
Medical Education Loan and Scholarshi p Fund.  The fund shall b e 
administered by the Physician Manpower Health Care Workforce 
Training Commission under the provisions of Section 625.9 of this 
title. 
 
SECTION 7.     AMENDATORY     70 O.S. 2021, Section 625.2, is 
amended to read as follows: 
 
Section 625.2 The Physician Manpower Health Care Workforce 
Training Commission shall be authorized and empowered t o grant 
scholarships to qualifi ed students who are bona fide residents of 
the State of Oklahoma and who would not otherwise have funds 
necessary to finance the cost of a program of study leading to the 
Degree of Doctor of Medicine, or to the Degree of Doct or of 
Osteopathic Medicine, to be granted by an accredited and recognized 
college of medicine or college of osteopathic medicine . 
 
SECTION 8.     AMENDATORY    70 O.S. 2021, Section 625.3, is 
amended to read as follows: 
 
Section 625.3 A.  The terms and conditions governing the 
scholarships shall be as prescribed and formulated by the Physician 
Manpower Health Care Workforce Training Commission, but shall 
include the condition that each recipient, upon completion of his 
the recipient's course of study, shall repay his such scholarship by 
practicing his the recipient's profession in a rural community in 
Oklahoma having a population of seven thousand five hundred (7,500) 
persons or less according to the last preceding United States 
Decennial Census and having a ne ed therefor, as determined by the 
Commission, for one (1) year for each one (1) year the scholarship 
is financed; provided, however, that the recipient will be given no 
credit for payment and reduction of the obligation by serving in the 
defined rural communities for a period less than two (2) years. 
 
B.  The maximum rural population criteria specified in 
subsection A of this section ma y be waived by the Commission. 
 
C.  The terms of this subsection shall apply to recipients who 
accept assistance on or after July 1, 1993.  The contract shall 
provide that in the event th e recipient breaches the terms of the 
contract by not serving the desi gnated community for the specified 
period of time, the Commission shall be entitled to recover an 
amount equal to three time s the principal disbursed, pursuant to the 
contract, plus interest.  Interest on all amounts paid to or on  ENR. H. B. NO. 2776 	Page 7 
behalf of the participant shall be computed at the current prime 
rate plus one percent (1%) with the interest to accrue from the date 
each payment is made, pursuant to the contract.  The amount the 
Commission is entitled to recover shall be paid within nin ety (90) 
days of the date the recipient becomes liable as determined by the 
Commission. 
 
SECTION 9.     AMENDATORY     70 O.S. 2021, Section 6 25.4, is 
amended to read as follows: 
 
Section 625.4 The Commission shall promulgate and adopt suc h 
rules and regulations as may be necessary to carry out the 
provisions of this act.  The Commission shall prescribe the fo rm and 
regulate the submission of applicat ions for scholarship; conduct 
conferences and interviews with applicants; determine the 
eligibility of applicants; allow or disallow all applications for 
scholarships or renewal of scholarships; contract, increase, 
decrease, terminate and otherwise regulat e all grants for 
scholarships and their repayment in cash or services; and manage, 
operate and control all funds and property appropriated or otherwise 
contributed for this purpose.  The Commission may acquire prop erty 
or money by the acceptance of gifts, grants, bequests or devise, and 
may contract with the federal government in order to secure the 
benefit of any federal program consistent with the provisions of 
this act.  Monies received by the Commission in repay ment of 
scholarships granted from appropri ated funds shall be deposited with 
the State Treasurer who shall place the same to the cred it of the 
Commission in depository funds to be known as the "Rural Medical 
Education Scholarship Fund" and the "Community P hysician Education 
Scholarship Fund" depen ding on the program in which the recipient 
participated, under and subject exclusively to t he control of the 
Commission for the purpose of fulfilling and accomplishing the 
conditions and purposes of the Physician Manpower Health Care 
Workforce Training Commission.  All monies so collecte d and 
deposited in the State Treasury as aforesaid shall co nstitute a 
continuing fund, shall not be subject to fiscal limitations, and the 
unexpended balance shall at all times be ava ilable for expenditures 
for the purposes and in the manner and form provi ded by this act. 
All funds and property, and income therefr om, received by the 
Commission through the acceptance of gifts, grants, bequests or 
devise shall be held by the Commission i n trust, and may be sold, 
transferred, invested and reinvested by the Com mission in accordance 
with the provisions of the Oklahoma T rust Act, and all such fu nds 
and property, and income therefrom, shall be used by the Commission  ENR. H. B. NO. 2776 	Page 8 
in fulfilling and accomplis hing the conditions and purposes of the 
Physician Manpower Health Care Workforce Training Commission. 
 
SECTION 10.     AMENDATORY     70 O.S. 2021, Section 625.4a, is 
amended to read as follows: 
 
Section 625.4a There is hereby created in the State Treasury a 
revolving fund for the Physician Manpower Health Care Workforce 
Training Commission to be designated the " Physician Manpower Health 
Care Workforce Training Commission Revolving Fund". The fund shall 
be a continuing fund, not subject to fiscal year limitations and 
shall consist of all payments received by the Commission pursuant to 
Sections 625.3 and 625.10a of this title.  All monies accrui ng to 
the credit of the fund are hereby appropriated and may be budgeted 
and expended by the Physician Manpower Health Care Workforce 
Training Commission for any expenses incurred in the implementati on 
of its duties.  Expenditures from the fund shall be ma de upon 
warrants issued by the State Treasurer against claims filed as 
prescribed by law with the Director of the Office of Management and 
Enterprise Services for approval and payment. 
 
SECTION 11.     AMENDATORY     70 O.S. 2021, Section 6 25.9, is 
amended to read as follows: 
 
Section 625.9 The administration of the Oklahoma Rural Medical 
Education Loan and Scholarship Fund is hereby transferred to the 
Physician Manpower Health Care Workforce Training Commission as 
established by law.  All the powers, duties, responsibilities, rules 
and regulations and functions of the Board of Trustees of the 
Oklahoma Rural Medical Education Sc holarship Fund are hereby 
transferred to the Physician Manpower Health Care Workforce Training 
Commission and the Board of Trustees of the Oklahoma Rural Medical 
Education Scholarship Fund is hereby abolished and terminated. 
 
SECTION 12.    AMENDATORY     70 O.S. 2021, Section 625.10a, is 
amended to read as follows: 
 
Section 625.10a The Physician Manpower Health Care Workforce 
Training Commission is hereby authorized and empowered to establish 
and administer cost-sharing scholarships a nd loan fund programs 
which shall provide for state assistance to and participation with 
community physician education an d scholarship trust funds which are 
selected and approved by the Commission. Said state assistance and 
participation shall be on a stat e and community matching formula 
basis for the funding of the educational costs, fees and charg es of  ENR. H. B. NO. 2776 	Page 9 
a selected and qualified student in good standing and who is duly 
enrolled in an accredited college of medicine or college of 
osteopathic medicine and purs uing a course of study leading to the 
degree of Doctor of Medicine or to the degree of Doctor o f 
Osteopathic Medicine.  Said student shall be a bona fide resident of 
the State of Oklahoma who desires and agrees to practice his 
profession on completion of t he course of study and training 
required for licensure and certification in the community provi ding 
the initial funds to be matched by the state funds.  Communities 
shall deposit the initial trust funds with the Physician Manpower 
Health Care Workforce Training Commission to be administered and 
matched by the Commissio n for the education of selected and 
qualified students t o serve and to practice in the communities with 
trust funds so established for that purpose with the Commission.  
The Commission shall aid a nd advise communities in the selection of 
qualified students to participate in a given comm unity scholarship 
program and the Commission shall approve the selection of a given 
student for a particular community physician education scholarship 
trust fund matching program.  The Commission shall determine the 
percentage share for the state in the sc holarship matching progra m 
with a given community to educate a given and duly selected student 
on the basis of the extent of need of the community and its 
surrounding area for the services of a practicing physician, the 
amount of the initial trust funds th e community has raised an d 
deposited in the physician education scholarship trust fund that is 
duly established and the matching funds schedule developed by the 
Commission and based upon both the population of the community 
determined by the latest Federal Decennial Census and the estimated 
median family annual income level as determined on the basis of the 
estimates of the Oklahoma Department of Commerce.  The state 
matching assistance and participation in a given scholarship trust 
fund program shall not e xceed seventy-five percent (75%) of the 
total amount calculated to be necessary to fund the costs of a 
course of study for the degree of Doctor of Medicine or the de gree 
of Doctor of Osteopathic Medicine as determined annuall y by the 
Commission.  Repayment of the total amount of t he scholarship by the 
student on completion of his the student's course of study and on 
the establishment of his the student's practice in the community 
shall be made to the state fund and to the community trust fund in 
accordance with the percentage and t otal amounts contributed by the 
state and by the community to th e matching scholarship trust fund 
program and in accordance with the provisions of Section 625.5 of 
this title and contract requirements of Section 625.6 of this tit le 
which shall apply in all cases to students participating in said 
community physician edu cation scholarship trust fund programs  ENR. H. B. NO. 2776 	Page 10 
administered by the Commission with the exception of the maximum 
amount allowable in payment to the student which shall be bas ed on 
an annual review of t he costs, fees and charges of the school of 
medicine or school o f osteopathic medicine in which the student is 
enrolled and participating which shall be made by the Com mission. 
 
The procedures, terms and conditions governing the s cholarships 
and how they are administered shall be as prescribed and formulated 
by the Physician Manpower Health Care Workforce Training Commission 
but shall include the following: 
 
1.  Communities desiring to participate in a loan and 
scholarship program sha ll select a student who meets the 
requirements for participation and give notice to the Co mmission. 
 
2.  The Commission shall aid and advise communities in the 
selection of qualified students to participate in a given community 
loan and scholarship program. 
 
3. The communities shall deposit with the Commission the 
initial year scholarship funds provided by the community which funds 
shall be a percentage of the total educational and associated cos ts 
of the student in the course of study i n an accredited colle ge of 
medicine or college of osteopathic medicine and which funds are to 
be used in the education of the selected student. 
 
4.  The Commission shall review and approve the selection of a 
given student and shall then match the initial co mmunity funds with 
state funds from the Oklahoma Community Physician Education Loan and 
Scholarship Program Fun d in the amount needed to meet the total cost 
for educating the student for one (1) year as agreed by t he 
Commission and the community in each pa rticular case. 
 
5.  The Commission shall determine the percentage share for the 
state in the loan and scholarshi p program with a given community to 
educate a selected student on the basis of: 
 
a. the extent of need o f the community and its 
surrounding area for the services of a practicing 
physician;, 
 
b. the amount of the initial trust funds the community 
has raised and deposited with the Commission for the 
education of a selected student ;, and 
  ENR. H. B. NO. 2776 	Page 11 
c. the population of the community which shall be 
determined on the basi s of the current estimates made 
by the Oklahoma Department of Commerce. 
 
6.  The state matching assistance and p articipation by the 
Commission in a given loan and scholarship program for a particular 
student shall not exceed seventy-five percent (75%) of th e total 
amount calculated to be necessar y to fund one (1) year of study for 
the degree of Doctor of Medicine or the degree of Doctor of 
Osteopathic Medicine as determined annually by the Commission at the 
school of medicine or osteopathic medicine in which the selected 
student is enrolled. 
 
7.  Each scholarship recipient, upon completion of his the 
recipient's course of study, shal l repay his the recipient's loan 
and scholarship to the state and to the community and receive 
forgiveness on repayment of the funds from the st ate and from the 
community by practicing his or her profession in the community in 
Oklahoma providing the initial funds at a minimum fo r one (1) year 
for each Five Thousand Dollars ($5,000.00) the community and the 
state financed the scholarship program for the s tudent; provided, 
however, that the recipient will be given no credit for payment, 
repayment and reduction of said obligation to the community and the 
state by serving the given community for a period less than two (2) 
years or, when approved by the Commis sion in agreement with the 
community and terms of the contracts involved, repayment may be made 
in cash with interest at the rat e of twelve percent (12%) per annum, 
said interest to accrue from the date each payment of funds pursuant 
to the loan and schola rship program is made.  In addition, should a 
recipient who accepts financial assistance after July 1, 1977, elect 
not to perform his obligated service in the sponsoring community, 
the agreed upon sum denoted as liquidated da mages in the contract 
shall be assessed the recipient.  No interest shall accrue on the 
principal during any one period of time that the recipient thereof 
is required to serve in the Armed Forces of the United States, or 
during his internship or residency, if in a primary care area and 
the required service, internship or residency does not exceed four 
(4) years.  Provided that no interest shall accrue for six (6) 
months following each of the above exceptions. 
 
Each student who applies to participate in a comm unity and 
state matching loan and scholarship program shall enter into a 
contract administered by the Commission on behalf of the state and a 
given community which has provided the initial scholarship funds to 
educate a selected student.  The contract shal l be between the State  ENR. H. B. NO. 2776 	Page 12 
of Oklahoma and the selected student by which contract the student 
agrees to return to the community which provided the initial loan 
and scholarship funds and to practice his profession, on completion 
of the course of study and train ing required for licensure and 
certification, for the number of years for which the student 
received assistance from the community and the state and in 
accordance with the conditions specified in the contract agreed to 
by the student and the given communit y which selected the student. 
Any repayment of the total amount of the scholarship or any portion 
thereof as provided in this act and in the contract between t he 
state and the student shall be made to the state deposited into the 
Community Matching Loan an d Scholarship Repayment Revolv ing Fund 
hereby created in the State Treasury.  The community portion of any 
repayment monies deposited in said fund shall be wit hdrawn from the 
revolving fund and returned to the community on request or, if the 
community so chooses, said repayment monies shall be held available 
in said fund for reallocation by the community and the state to the 
Community Physician Education Loan an d Scholarship Program Fund to 
educate another student selected by the community and approved by 
the Commission.  The form of th e contracts shall be prepared and 
approved by the Attorney General.  The Commission is hereby vested 
with full and complete autho rity and power to sue in its own name 
any applicant for any balance due the Commission for repaym ent of 
the scholarship on any contract or for failure by the applicant to 
fulfill the terms of his contract in any way.  Said contracts shall 
be signed by the Chairman Chair of the Commission and by the student 
for and by a representative of the community which selected the 
student.  The Commission shall have authority to cancel the contract 
it makes between the Commission and any recipient of a scholarship 
upon cause deemed sufficient by the Commission. 
 
SECTION 13.     AMENDATORY     70 O.S. 2021 , Section 625.11, is 
amended to read as follows: 
 
Section 625.11 There is hereby created and established the 
Oklahoma Community Physician Education Scholarship Program Fund 
which fund shall be administered by the Physician Manpower Health 
Care Workforce Training Commission for the purposes of providing the 
state matching funds assistance for scholarship programs with given 
communities.  The Commis sion shall be empowered to contract for 
services with any state agencies, institutions or any public or 
private corporation involved in and conducting programs in physician 
manpower health care workforce placement in order that the 
Commission may perform its functions in an eff icient and timely 
fashion.  ENR. H. B. NO. 2776 	Page 13 
 
SECTION 14.     AMENDATORY     70 O.S. 2021, S ection 625.13, is 
amended to read as follows: 
 
Section 625.13 A.  There is hereby created the "Community Match 
Rural Scholarship Incentive Program" which shall be conducted and 
administered by the Physician Manpower Health Care Workforce 
Training Commission.  The purpose of this program is to provide for 
the fair and necessary distribution of funds allocated to it by the 
Legislature to provide monies to the following programs under the 
Physician Manpower Health Care Workforce Training Commission: 
 
1.  The Community Matching Intern/Resident Program; 
 
2.  The Oklahoma Rural Medical Education Loan Scholarship 
Program; 
 
3.  The Family/General Practice Resident Rural Scholarship Loan 
Program, created pursuant to this section; and 
 
4.  The Family/General Practice Resi dency Grant Program, created 
pursuant to this section. 
 
The Physician Manpower Health Care Workforce Training Commission 
is hereby authorized to distribute such monies to the funds 
specified in Sections 625.1, 625.4a and 697.18 of this title 
necessary to fund the programs specified in this section. 
 
B.  The Physician Manpower Health Care Workforce Training 
Commission shall establish and administer a Family/General Practice 
Resident Rural Scholarship Loan Program for the purpose of assisting 
Oklahoma's rural communities by providing financial assistance 
through a scholarship loan forgiveness program to residents enrolled 
in an accredited Family Practice or General Practice residency 
program.  The Commission shall establish the eligibility standards, 
the amount of the loan not to exceed One Thousand Dollars 
($1,000.00) per month, the service obligation of the recipient of 
the loan, and any penalties related to the breach of the service 
contract or failure to repay such loan plus interest and penalty. 
 
C. The Physician Manpower Health Care Workforce Training 
Commission shall establish and administer a Family/General Practice 
Residency Grant Program for the purpose of assisting Oklahoma's 
rural communities by providing financial assistance through a grant 
program to residents enrolled in an accredited Family Practice or  ENR. H. B. NO. 2776 	Page 14 
General Practice residency program.  The Commissi on shall establish 
the eligibility standards, th e amount of the grant not to exceed 
Five Thousand Dollars ($5,000.00) per year, up to three (3) years, 
the program obligations of the recipient of the grant, and any 
penalties related to the breach of the gra nt obligations or failure 
to repay the grant plu s interest. 
 
SECTION 15.     AMENDATORY     70 O.S. 2021, Section 625.14, is 
amended to read as follows: 
 
Section 625.14 The Physician Manpower Health Care Workforce 
Training Commission shall establish and administer cost -sharing 
programs for internship and residency physician training.  The 
Commission shall provid e for state assistance by sh aring the cost on 
a percentage basis, as may be prescribed by law or as determined by 
the Commission, of the salary, fringe benefits, training and program 
administration of the interns and residents as may be arranged by 
contract for reimbursement with an accredited and approved hospital 
and accredited clinical programs throughout the state in cooperation 
with the University of Oklahoma College of Medicine and the 
University of Oklahoma College of Medicine at Tulsa.  Such physici an 
training institutions in the state shall serve as the administrative 
agent for internship and residency programs which are located in 
hospitals and clinical training programs throughout the state.  Such 
programs are affiliated with the institutions and are approved for 
funding by the Commission.  The Commission shall conduct the 
planning, coordination and selection of the training programs to 
assure the effective and efficient operation of these programs.  Not 
less than seventy-five percent (75%) of the subsidy for these 
programs shall be used in the training of primary health care and 
family practice physicians for the rural and medically underserved 
areas of the state.  Provided that such subsidy may be used for the 
primary purpose of increasing the tot al number of residencies fun ded 
by this state, wherever located within the state, during that period 
in which residency programs are being established in rural areas; 
provided further, that as the residency programs are established and 
accredited in rural hospitals, residency positio ns in such programs 
shall be first provided for by the Commission.  The Commission shall 
present a report to the Governor, the Speaker of the House of 
Representatives and the President Pro Tempore of the Senate within 
one (1) month of the beginning of each regular legislative session 
on the operation of the programs including the progress made in 
accomplishing the goals of physician training as to type of 
specialties and manpower workforce placement of the kind necessary 
to provide adequate health care to the people throughout this state.   ENR. H. B. NO. 2776 	Page 15 
The subsidy to the participating hospital, clinical situation or 
training institution per resident or intern shall not exceed any 
maximum or minimum amount as may be prescribed by law or as 
determined by the Commission.  The actual amount of subsidy for 
physician training program situations shall be based upon a 
determination by the Commission of: 
 
1.  The type of primary care residency and internship programs 
involved and being conducted; 
 
2.  The extent of reimbursement available thr ough third-party 
payers and all other sources; and 
 
3.  The program and salary costs incurred in the given training 
situation. 
 
SECTION 16.     AMENDATORY     70 O.S. 2021, Section 697.1, is 
amended to read as follows: 
 
Section 697.1 The Legislature recognizes that there is a need 
to upgrade the availability of health care services for people of 
Oklahoma, and thus, there is a need to improve the balance of 
physician manpower health care workforce distribution in the state 
both by type of practice and by geographic location.  Furthermore, 
the Legislature recognizes the need to accommodate the increasing 
number of graduates from the medical and osteopathic colleges of 
Oklahoma by retaining their services as practicing physicians in the 
state and by attracting graduates from schools outside the state.  
Therefore, it is the intent of the Legislature to increase the 
number of internship and residency programs o ffered for the training 
of physicians throughout the state through the sha ring by the state 
of the costs of such internships and residencies with hosp itals and 
other clinical residency training establishments.  These programs 
shall be designed primarily to emphasize the training of primary 
health care and family practice physici ans and to develop manpower 
workforce programs to service directly the rural and nonmetropolitan 
areas of the state. 
 
SECTION 17.     AMENDATORY     70 O.S. 2021, Section 697.2, is 
amended to read as follows: 
 
Section 697.2 The Physician Manpower Health Care Workforce 
Training Commission is authorized to establish and administer cost-
sharing programs for internship and resid ency physician training.  
The Commission shall provide for state assistance by sharing the  ENR. H. B. NO. 2776 	Page 16 
cost on a percentage basis, as may be prescribed by la w or as 
determined by the Commission, of the salar y, fringe benefits, 
training and program administration of th e interns and residents as 
may be arranged by contract for reimbursement with an accredited and 
approved hospital and accredited clinical program s throughout the 
state in cooperation with the Okl ahoma State University College of 
Osteopathic Medicine.  Such physician training institutions in the 
state shall serve as the administrative agent for internship and 
residency programs which are located in hospitals and clinical 
training programs throughou t the state.  Such programs are 
affiliated with the instituti ons and approved for funding by t he 
Commission.  The Commission shall conduct the planning, coordination 
and selection of the training programs t o assure the effective and 
efficient operation of these programs. Not less than seventy-five 
percent (75%) of the subsidy for these programs sh all be used in the 
training of primary health care and family/general practice 
physicians for the rural and medi cally underserved areas of the 
state.  Provided that such subsidy may be used for the primary 
purpose of increasing the total number of residenc ies funded by this 
state, wherever located within the state, during that period in 
which residency programs are being established in rural areas; 
provided further, that as the residency programs are established and 
accredited in rural hospitals, residency positions in such programs 
shall be first provided for by the Commission.  The Commission shall 
present a report to the Governor, the Speaker of the House of 
Representatives and the President Pro Tempore of the Senate withi n 
one (1) month of the beginning of each regular legislative session 
on the operation of the programs including the progress made in 
accomplishing the goals of physician training as to type of 
specialties and manpower workforce placement of the kind necessary 
to provide adequate health care to the people throughout this state.  
The subsidy to the participating hospital, clinical situation or 
training institution per resident or intern shall not ex ceed any 
maximum or minimum amount as may be prescribed by law or as 
determined by the Commission.  The actual amount of subsidy for 
physician training program situations shall be based upon a 
determination by the Commission of: 
 
1.  The type of primary car e residency and internshi p programs 
involved and being conducted; 
 
2.  The extent of reimbursement availa ble through third-party 
payers and all other sources; and 
  ENR. H. B. NO. 2776 	Page 17 
3.  The program and salary costs incurred in th e given training 
situation. 
 
SECTION 18.     AMENDATORY    70 O.S. 2021, Section 697.3 , is 
amended to read as follows: 
 
Section 697.3 The Physician Manpower Health Care Workforce 
Training Commission shall be composed of seven (7) nine (9) members 
appointed by the Governor with the advi ce and consent of the Sen ate.  
Upon the expiration of the term of one of the n onphysician members, 
three members shall be practicing all opathic physicians, three shall 
be practicing osteopathic physicians and one, two shall not be a 
physician be registered nurses, and one shall be a member of the 
general public.  The membership shall be appointed from diverse 
geographic areas of the state.  No board member serving on November 
1, 2001, shall be removed from the board to satisfy the requirements 
of this section, but appointments to fill vacancies subsequent to 
November 1, 2001, shall be subject to the requiremen ts of this 
section.  Three members Members of the Commission shall be appointe d 
for one-year terms, two members shall be appointed for three-year 
terms and two members shall be appointed for five-year terms, and at 
the expiration of the initial terms, succeeding terms of office 
shall be five (5) years in duration.  There shall be al so twelve 
additional nonvoting ex officio members of the Commission who shall 
serve in an advisory capacity only and include the Dean of the 
University of Oklahoma College of Medicine or designee, the Dean of 
the University of Oklahoma College of Medicine - Tulsa or designee, 
the Chair of the Department of Family Medicine of the University of 
Oklahoma Health Sciences Center or designee, the Chair of the 
Department of Family Practice of th e University of Oklahom a College 
of Medicine - Tulsa or designee, the Chair of the Department of 
General Practice of the Oklahoma College of Osteopathic Medicine and 
Surgery or designee, the President of the Oklaho ma Academy of Family 
Physicians or designe e, the President of the Oklahoma State Medical 
Association or designee , the President of the Okl ahoma State 
Osteopathic Association or designee, the President of the Oklahoma 
Hospital Association or designee, the S tate Commissioner of Health 
or designee, the Provost of the Unive rsity of Oklahoma Health 
Sciences Center or des ignee, and the Dean of the Oklahoma College of 
Osteopathic Medicine and Surgery or designee.  Members of the 
Commission shall serve without sala ry, but may be reimbursed for 
travel expenses in attending meetin gs and performing their duties 
pursuant to the State Travel Reimbursement Act, Section 500.1 et 
seq. of Title 74 of the Oklahoma Statutes. 
  ENR. H. B. NO. 2776 	Page 18 
SECTION 19.     AMENDATORY     70 O. S. 2021, Section 697.5, is 
amended to read as follows: 
 
Section 697.5 The Physician Manpower Health Care Workforce 
Training Commission, i n order to perform its official function in 
establishing and administe ring physician training programs, shall 
have the following spec ific powers, duties and resp onsibilities: 
 
1.  To review all available data on physician manpower health 
care workforce in Oklahoma in order to determine the current and 
projected distribution of physicians by geographic location and by 
type of practice, and, to accomplish this review, the Commission 
shall obtain information from and work in conjunctio n with the State 
Department of Health and all other agencies which gather data and 
evaluate health manpower care workforce needs; 
 
2.  To review data and information on accredited physician 
internship and residency programs currently operated by Oklahoma 
hospitals and other approved clinical situations, in order to 
ascertain the number and distribution by physician s pecialty 
training and by geographic location of available internship and 
residency positions and to evaluate the impact of internship and 
residency placement on the establishment of practices by physicians 
in that geographic area or similar areas within th e state where 
their services are urgently needed; 
 
3.  To serve as an agent to advise hospitals, clinics, and 
communities on setting up and planning internship and residency 
programs which emphasize the provision of additional primary care 
physicians to service the rural areas of Oklahoma with primary care 
specialties to be defined to incl ude training in the area of 
internal medicine, obstetrics and gynecology, pediatrics, emergency 
trauma, and family practice; 
 
4.  To provide general counsel and advice in th e development, 
operation and evaluation of physician internship and residency 
programs throughout the State of Oklahoma in cooperation with the 
efforts of the Oklahoma State Regents for Higher Education and the 
state's physician training institutions such as the Oklahoma 
University College of Medicine, Oklahoma City and Tulsa campuses, 
and the Oklahoma College of Osteopathic Medicine and Surgery, and 
subject to accreditation by official and appropriate accrediting 
agencies; 
  ENR. H. B. NO. 2776 	Page 19 
5.  To develop the criteria for d etermining the physician 
training cost component or associated clinical and hospital training 
costs which are or may be nonreimbursable by third party payers in 
programs proposed by accredited hospitals, clinical situations, or 
hospital and clinical progra ms affiliated with and administered by 
the College of Medicine, College of Medicine - Tulsa or College of 
Osteopathic Medicine and Surgery in order to determine the share for 
the state in supporting the salary, benefits, training and program 
administration costs incurred by hospitals in supporting of the 
interns and residents; 
 
6.  To develop the criteria and procedure by which state 
matching funds will be awarded to hospitals, accredited clinical 
situations, in cooperation with the University of Oklahoma Co llege 
of Medicine, University of Oklahoma College of Medicine - Tulsa, and 
the Oklahoma College of Osteopathic Medicine and Surgery which shall 
administer programs in hospital and clinical situations in the state 
to be used to underwrite the salaries, bene fits and associated 
training and administration costs provided for the physician int erns 
and residents during their period of training in such a way as to 
create an incentive for the development and establishment of 
residency and internship positions by ho spitals, clinical 
establishments or by affiliation agreement with the University of 
Oklahoma College of Medicine, University of Oklahoma College of 
Medicine - Tulsa and the Oklahoma College of Osteopathic Medicine 
and Surgery by providing funds to cover an d to supplement the 
nonreimbursable or additional costs incurred in hospitals for 
training activities or for delivery of service in outreach and 
ambulatory clinical situations which are outside but associated with 
the hospitals and clinical establishments participating in the 
program; 
 
7.  To review and to approve for inclusion in the prog rams 
funded the applications for funds submitted by accredited hospitals 
and clinical situations participating in physician training programs 
in cooperation with the Univer sity of Oklahoma College of Medicine, 
University of Oklahoma College of Medicine - Tulsa and the Oklahoma 
College of Osteopathic Medicine and Surgery for the costs of 
supplying residents and interns in programs which they administer by 
affiliation agreemen ts with hospitals and clinical situations 
throughout the state in which the interns and residents are 
supervised and funded by the University of Oklahoma College of 
Medicine, University of Oklahoma College of Medicine - Tulsa and the 
Oklahoma College of Os teopathic Medicine and Surgery and the 
hospitals and clinical establishments pay for the patient care  ENR. H. B. NO. 2776 	Page 20 
services rendered in their institutions by these residents and 
interns during the period of training; 
 
8.  To determine the specific level of funding and t he 
priorities used for granting state support to approved hospitals and 
clinical situations, in cooperation with the University of Oklahoma 
College of Medicine, University of Oklahoma College of Medicine - 
Tulsa and the Oklahoma College of Osteopathic Medi cine and Surgery 
for approved hospital physician training programs for interns and 
residents and to recommend to the Governor and the Oklahoma 
Legislature the total funds needed to carry out the purpose of this 
program; 
 
9.  To employ a director and any sta ff personnel required to 
administer the funding of approved physician training progr ams and 
to contract with other state agencies and institutions to conduct 
and to perform specified services, functions and aspects in 
administering state funds on the speci fied cost-sharing basis 
determined by the Commission or for developing programs and 
community and institutional participation in these training 
programs; 
 
10.  To ensure that hospitals or clinical situations that can 
qualify in all sections of Oklahoma be u tilized, and to take all 
steps necessary to assist such hospitals or clinics in obta ining 
necessary recognition or status, or in meeting standards for 
accreditation or affiliation so that they may participate in these 
physician training programs; 
 
11.  To ensure that in programs administered and operated by the 
University of Oklahoma Colle ge of Medicine, University of Oklahoma 
College of Medicine - Tulsa and the Oklahoma College of Osteopathic 
Medicine and Surgery in hospitals and clinical situations through out 
the state that funds allocated to the colleges are paid by the 
hospitals and clinical situations in which the patient care services 
are rendered, the funds are expended for such purposes in funding 
residents and interns in the physician training progra ms that the 
colleges have established with the approved hospitals and clinical 
situations which programs are designed to provide primary health 
care services to the rural and medically underserved parts of the 
state; 
 
12.  To conduct and to administer a pro gram of physician and 
health manpower care workforce placement services throughout the 
State of Oklahoma.  Placement services sh all be made available to  ENR. H. B. NO. 2776 	Page 21 
communities, hospitals, health care facilities, physician and health 
professional training institutions, health profess ional associations 
and organizations, individual physicians, health professionals , 
students in physician and hea lth professional training institutions 
and schools, and other interested parties in such a way so as to 
further the purposes of improving the di stribution of physicians and 
health professionals practicing or available for pra ctice in the 
state and improving in the availability of health care services to 
the people of the state.  Said placement service shall include but 
not be limited to assisting communities in matching with, contacting 
and recruiting physicians and health pro fessionals to practice in 
communities in the state.  The Commission shall develop criteria and 
procedures for the conduct and performance of placement services and 
employ any staff, contract for services with any private agency, 
nonprofit corporation or in stitution to facilitate the per formance 
of placement services. 
 
SECTION 20.    AMENDATORY     70 O.S. 2021, Section 697.6, is 
amended to read as follows: 
 
Section 697.6 Funds appropriated to carry out the provisions of 
this act shall be al located so that no less than forty percent (40%) 
of all participating residents and interns in each school year must 
participate in a rural program outs ide the Oklahoma City and Tulsa 
metropolitan areas.  The Physician Manpower Health Care Workforce 
Training Commission, in accordance with p rimary care specialty 
accreditation standards, shall promulgate and adopt rules 
designating the time allo cation spent by the residents and interns 
participating in this program outside the Oklahoma City and Tulsa 
metropolitan areas. 
 
SECTION 21.     AMENDATORY    70 O.S. 2021, Section 697.7, is 
amended to read as follows: 
 
Section 697.7 The Physician Manpower Health Care Workforce 
Training Commission is hereby authorized to enter into con tractual 
arrangements with residency training programs at the Un iversity of 
Oklahoma College of Medicine, University of Oklahoma-Tulsa Medical 
College, or the Oklahoma College of Osteopathic Medicine and 
Surgery, in order to enhance available funding for t he training of 
primary care residents and to pay the cost of the salary stipend and 
expenses of the resident physician for the period of time spent in 
the residency programs.  Monies received by the Commission from the 
participating residency training prog ram under the provisions of 
this section shall be deposited to, and disbursed from, the  ENR. H. B. NO. 2776 	Page 22 
"Residency Revolving Fund" hereby created in the State Treasury.  
The fund shall be a continuing fund not subject to legislative 
appropriation or fiscal year limitation s.  Expenditures from the 
fund shall be made on warrants issued by the State Treasurer against 
claims filed by the Commission with the Director of the Office o f 
Management and Enterprise Services for approval and payment. 
 
SECTION 22.     AMENDATORY    70 O.S. 2021, Section 697.8, is 
amended to read as follows: 
 
Section 697.8 A community may enter into a contract with a 
resident physician in training whereby the resident agrees to 
establish a practice in the community upon the completion of his the 
individual's residency.  The Physician Manpower Health Care 
Workforce Training Commission shall have the authority to receive 
funds direct from that community for the purpose of paying the 
resident involved to the ext ent of the contractual arrangements.  
Monies received by the Commission under the provisions of this 
section shall be deposited to, and disbursed from, the "Community 
Residency Revolving Fund" hereby created in the State Treasury.  The 
fund shall be a cont inuing fund not subject to legislative 
appropriation or fiscal year limitations.  Expenditures from said 
fund shall be made on warrants issued by the State Treasurer against 
claims filed by the Commission with the Director of the Office of 
Management and Enterprise Services for approval and payment. 
 
SECTION 23.     AMENDATORY     70 O.S. 2021, Section 697.9, is 
amended to read as follows: 
 
Section 697.9 There is hereby created and established the 
Community Preceptor Physician Training and Work Experience 
Scholarship Fund which fund shall be administered by the Physician 
Manpower Health Care Workforce Training Commission for the purpose 
of providing state matchin g funds assistance and encouraging the 
development of a program whereby the state in conjunction with given 
communities, hospital s or clinical training situations funds the 
stipends and living expenses for medical students who agree to work 
in these given communities during the vacation times during the 
course of their education in the University of O klahoma College of 
Medicine or the Oklahoma College of Osteopathic Medicine and 
Surgery.  The Commission shall develop procedures for determining 
the matching funds participation of communities and of the state for 
a given student and coordinate with the p hysician training 
institutions in the state for the selection of students to 
participate in the program and the selection of physicians who will  ENR. H. B. NO. 2776 	Page 23 
supervise students and hospitals and clinical situations in which 
the training and experience occurs in the del ivery of primary health 
care to rural and medically underserved areas with the purpose of 
providing medical and osteopathic students an opportunity to develop 
relationships with communities and encourage them to locate their 
practices in areas of medical n eed. 
 
SECTION 24.     AMENDATORY     70 O.S. 2021, Section 697. 10, is 
amended to read as follows: 
 
Section 697.10 A.  The Physician Manpower Health Care Workforce 
Training Commission is authorized to e nter into contractual 
arrangements with individual hospitals and clinic al programs for the 
reimbursement of intern or resident salary cost not to exceed the 
limits established by Section 697.2 of this title.  Provided, that 
residency and internship positio ns created prior to the spring 
semester 1975 shall be eligible for part icipation in the cost -
sharing program for inter nship and residency training as established 
by Sections 697.1 through 697.8 of this title, only if partial 
funding of said positions will allow the creation of addition al 
positions in whole or in part at the p articipating hospital or 
clinical situation.  T he participating hospital or clinical 
situation shall document in a manner specified by the Commission the 
extent to which funding of a pr eviously created and establish ed 
position contributes directly to the c reation of additional 
positions at the particip ating hospital or clinical situation. 
 
B.  The Commission is authorized, in cooperation with the 
Oklahoma Health Care Authority, to enter i nto contractual 
arrangements with the University of Oklahoma College of Medicine and 
the Oklahoma State University Col lege of Osteopathic Medicine for 
the reimbursement of intern and resident professional liability 
insurance cost which shall not be subject to the limits established 
in Section 697.2 of this title.  Any and all intern and resident 
positions are eligible for reimbursement of intern and resident 
professional liability insurance cost. 
 
C.  There is hereby created in the State Treasury a revolving 
fund for the Physician Manpower Health Care Workforce Training 
Commission to be designated the "I ntern and Residents Professional 
Liability Insurance Fund".  The fund shall be a continuing fund, not 
subject to fiscal year limitations, and shall consist of all monies 
received by the Physician Manpower Health Care Workforce Training 
Commission for reimbursement of intern and residency professional 
liability insurance costs.  All monies accruing to the credit of the  ENR. H. B. NO. 2776 	Page 24 
fund are hereby appropriated and may be budge ted and expended by the 
Physician Manpower Health Care Workforce Training Commission for 
such costs.  Expenditures from the fund shall be made upon warrants 
issued by the State Treasurer against claims filed as prescribed by 
law with the Director of the Off ice of Management and Enterprise 
Services for approval and payment. 
 
SECTION 25.     AMENDATORY    70 O.S. 2021, Section 697.11, is 
amended to read as follows: 
 
Section 697.11 A.  In addition to internship and residency 
programs previously established and funded, it is t he intent of the 
Legislature that the Physician Manpower Health Care Workforce 
Training Commission, in cooperation with the Oklahoma Health Care 
Authority, establish a Critical Need Internship and Residency 
Program.  The purpose of the Program is to fund in ternship and 
residency programs acr oss the state in areas of critical need.  The 
determination of areas of critical need shall be made through a 
cooperative effort between the University of Oklahoma College of 
Medicine and the Oklahoma State University Col lege of Osteopathic 
Medicine.  The findings shall be reported to the Commission by July 
1, 2006, and every three (3) years thereafter. 
 
B.  The University of Oklahoma College of Medicine and the 
Oklahoma State University College of Osteopathic Medicine shal l 
annually provide to the Commissio n a report outlining the areas of 
physician shortages in each specialty area.  The report shall be the 
basis for the cooperative funding of critical need physician 
specialties for the current fiscal year . 
 
C.  There is hereby created in the State Treasury a revolving 
fund for the Physician Manpower Health Care Workforce Training 
Commission to be designated the "Critical Need Internship and 
Residency Fund".  The fund shall be a continuing fund, not subject 
to fiscal year limitations, and shall consist of all monies received 
by the Physician Manpower Health Care Workforce Training Commission 
for funding internship and r esidency programs in areas of critical 
need.  All monies accruing to the credit of the fund are hereby 
appropriated and may be budgeted and expe nded by the Physician 
Manpower Health Care Workforce Training Commission for such costs.  
Expenditures from the fund shall be made upo n warrants issued by the 
State Treasurer against claims filed as prescribed by law with th e 
Director of the Office of Mana gement and Enterprise Services for 
approval and payment.  ENR. H. B. NO. 2776 	Page 25 
 
SECTION 26.   AMENDATORY     70 O.S. 2021, Section 697.12, is 
amended to read as follows: 
 
Section 697.12 The Physician Manpower Health Care Workforce 
Training Commission shall est ablish and administer a cost -sharing 
scholarship program for the provision of physician services at the 
various correctional facilities under the Department of Corrections 
and the surrounding or nearby communities. Except as otherwise 
specified herein, th e scholarship program shall be administered 
pursuant to the requirements prescribed by law for and as part of 
the Oklahoma Community Educ ation Scholarship Program. Each 
scholarship available hereunder shall be funded on a percentage 
cost-sharing basis as follows:  One-half (1/2) of the costs to be 
provided by the Commission, one-fourth (1/4) of the costs to be 
provided by the Department of Corrections and one-fourth (1/4) of 
the costs to be provided by a community. Each physician, who has 
participated in the scholarship program hereunder, shall devot e 
one-half (1/2) of his or her professional time to medical care and 
treatment of inmates at a state correctional facility and one -half 
(1/2) of his or her professional time to medical servi ces in the 
community which shared the cost of a scholarship hereun der, for the 
period of time as required under the Oklahoma Community Education 
Scholarship Program. 
 
SECTION 27.    AMENDATORY     70 O.S. 2021, Section 697.15, is 
amended to read as follows: 
 
Section 697.15 In order for any hospital or clinic to be 
eligible to receive funds through the Physician Manpower Health Care 
Workforce Training Commission for residency or internship positions, 
such hospital or clinic shall affirm that students receiving t heir 
medical education in Oklahoma will be given special consideration 
for all residency and internship positions. 
 
SECTION 28.     AMENDATORY     70 O.S. 2021, Section 697.16, is 
amended to read as follows: 
 
Section 697.16 Effective July 1, 1982, all positions of the 
Physician Manpower All future appointments of personnel to the 
Health Care Workforce Training Commission except the Executive 
Director who shall remain in the unclassified service, shall become 
subject to the Merit System of Personnel Administration.  All 
incumbent employees shall be classified without the need to pass 
examinations and shall be allocated in accordance with the  ENR. H. B. NO. 2776 	Page 26 
recommended classifications as p roposed by the Merit System be in 
the unclassified service.  Any clas sified employee occupying a 
position on the Commission prior to July 1, 2022, shall retain the 
right to remain in the classified service.  However, at the time 
such position becomes vacant, it shall be placed in the unclassified 
service. 
 
SECTION 29.     AMENDATORY     70 O.S. 2021, Section 697.17, is 
amended to read as follows: 
 
Section 697.17 A. There is hereby established the Nu rsing 
Student Assistance Program which shall be administered by the 
Physician Manpower Health Care Workforce Training Commission.  The 
purpose of the program shall be to encourage persons to enter 
nursing education programs and to practice in areas of this state in 
which there is an urgent need for nursing services or in 
institutions or agencies of this state which p rovide funds on a 
matching basis with t he Physician Manpower Health Care Workforce 
Training Commission for the support of nursing stude nts.  The 
Nursing Student Assistance Program shall be administered by rules 
adopted by the Physician Manpower Health Care Workforce Training 
Commission. 
 
B.  Only students who are residents of this state shall be 
eligible to participate in the Nursing Student Assistan ce Program. 
 
C.  If a person receiving Nursing Student Assistance Program 
funds fails to fully comply with the provisions of the contract for 
the funds, the person shall refund to the Physician Manpower Health 
Care Workforce Training Commission all monie s received by the person 
pursuant to the provisions of the contract plus a one -time 
liquidated damages assessment of five percent (5%) of the total 
amount dispersed to the person in lieu of interest.  The Commission 
shall prorate the amount to be repaid in the event the obligation 
was partially fulfilled. 
 
D.  There is hereby created in the State Treasury a revolving 
fund for the Physician Manpower Health Care Workforce Training 
Commission to be designated the "Nursing Student Assistance Fund".  
The fund shall be a continuing fund, not subject to fiscal year 
limitations, and shall consist of all nonappropriated monies, 
including community match money of appropriated funds, grants, 
gifts, and repayment of scholarships received by the Physician 
Manpower Health Care Workforce Training Commission.  All mon ies 
accruing to the credit of the fu nd are hereby appropriated and ma y  ENR. H. B. NO. 2776 	Page 27 
be budgeted and expended by the Physician Manpower Health Care 
Workforce Training Commission for such scholarshi ps as may be 
provided for pursuant t o the Nursing Student Assistance Program.  
Expenditures from the fund shall be made upon warran ts issued by the 
State Treasurer against claims filed as prescribed by law with the 
Director of the Office of Management and Enterprise Services for 
approval and payment. 
 
SECTION 30.     AMENDATORY     70 O.S. 2021, Se ction 697.18, is 
amended to read as follows: 
 
Section 697.18 A community may enter into a contract with a 
physician who is a graduate from an accredite d medical school 
whereby such physician agrees to establish a practice in that 
community.  The Physician Manpower Health Care Workforce Training 
Commission shall have the authority to receive funds direct from 
that community for the purpose of paying the ph ysician involved to 
the extent of the contractual arrangement.  Monies received by the 
Commission under the provisions of this section s hall be deposited 
to and disbursed from, the "Community Match Revolving Fund" hereby 
created in the State Treasury.  The fund shall be a continuing fund 
not subject to legislative appropriation of fisca l year limitations.  
Expenditures from said fund shall be made on warrants issued by the 
State Treasurer against claims filed by the Commission with the 
Director of the Offic e of Management and Enterprise Servi ces for 
approval and payment. 
 
SECTION 31.     AMENDATORY     70 O.S. 2021, Section 697.19, is 
amended to read as fol lows: 
 
Section 697.19 A.  There is hereby established the Omnibus 
Budget Reconciliation Act Program (OBRA) which shall be administered 
by the Physician Manpower Health Care Workforce Training Commission.  
The purpose of the program shall be to encourage persons to enter 
nursing education programs and to practice in nursing homes of this 
state in which there is an urgent need for nursing serv ices which 
provide funds on a matchi ng basis with the Physician Manpower Health 
Care Workforce Training Commission fo r the support of nursing 
students.  The OBRA Program shall be administered by rules under the 
Oklahoma Nursing Student Assistance Program ad opted by the Physician 
Manpower Health Care Workforce Training Commission. 
 
B.  Only students who are residents of t his state shall be 
eligible to participate in the OBRA Program. 
  ENR. H. B. NO. 2776 	Page 28 
C.  If a person receiving OBRA Progra m funds fails to fully 
comply with the provisions of the contract for said fu nds, the 
person shall refund to the Physician Manpower Health Care Workforce 
Training Commission all monies receiv ed by the person pursuant to 
the provisions of the contract plus interest at the rate o f twelve 
percent (12%) from the date of disbursement of said funds and shall 
be liable for any other l iquidated damages as specified in the 
contract. 
 
D.  There is hereby created in the State Treasury a revolving 
fund for the Physician Manpower Health Care Workforce Training 
Commission to be designated the "OBRA Fund".  The fund shall be a 
continuing fund, not subject to fiscal year li mitations, and shall 
consist of all nonappropriated monies, including local nursing home 
association match money of appropriated funds, grants, gi fts, and 
repayment of scholarships r eceived by the Physician Manpower Health 
Care Workforce Training Commission.  All monies accruing to the 
credit of said fund are hereby appropriated and may be budgeted and 
expended by the Physician Manpower Health Care Workforce Training 
Commission for such scholarships as may be provided for pursua nt to 
the OBRA Program.  Expe nditures from said fund shall be made upon 
warrants issued by the State Treasurer against claims filed as 
prescribed by law with the Director of the Office of Management and 
Enterprise Services for approval and payment. 
 
SECTION 32.     AMENDATORY     70 O.S. 2021, Section 697. 20, is 
amended to read as follows: 
 
Section 697.20 A.  There is hereby created the "Osteopathic 
Internship and Residency Program" which shall be conducted and 
administered by the Physician Manpower Health Care Workforce 
Training Commission.  The purpose of this program is to provide for 
the fair and necessary distribution of funds allocated to it by the 
Legislature to provide monies to the following programs under the 
Physician Manpower Health Care Workforce Training Program: 
 
1.  The Doctor of Osteopathy Residency Program (OSU/COM); 
 
2.  The Osteopathic General Practice Residency Program 
(OSU/COM); and 
 
3.  The Osteopathic Internship Program (OSU/COM). 
 
B.  The Physician Manpower Health Care Workforce Training 
Commission is hereby authorized to distribute such monies to the  ENR. H. B. NO. 2776 	Page 29 
funds specified in Sections 697.2 and 697.6 of this title necessary 
to fund the programs specified in this section. 
 
SECTION 33.     AMENDATORY     70 O.S. 2021, Section 697.21, is 
amended to read as follows: 
 
Section 697.21 A.  There is hereby established the Physician 
Assistant Scholarship Program.  The purpose of the program is to 
encourage persons to enter physician assistant education programs 
and to practice in rural and medic ally underserved areas of this 
state.  The Physician Assistant Scholarship Program shall be 
administered by the Physician Manpower Health Care Workforce 
Training Commission pursuant to rules promulgated by the Commission 
and shall be funded based on an annual estimate of need as 
determined by the Comm ission.  Awards made pursuant to this Program 
shall be subject to the availabi lity of funds.  The number of and 
amount of each award shall be determined by the Commission based on 
the availability of funds. 
 
B. Only students who have been admitted as a stu dent in an 
accredited physician assistant program shall be eligible to 
participate in the Physician Assistant Scho larship Program. 
 
C.  If a person receiving Physician Assistant Scholarship 
Program monies fails to fully comply with the provisions of the 
contract for the monies, the person shall refund to the Physician 
Manpower Health Care Workforce Training Commission a ll monies 
received by the person pursuant to the provisions of the contrac t 
plus interest at a rate that equals the prime interest rate plus one 
percent (1%) from the date of disbursement of the funds and shall be 
liable for any other liquidated damages as specified in the 
contract. 
 
D.  There is hereby created in the State Treas ury a revolving 
fund for the Physician Manpower Health Care Workforce Training 
Commission to be designated the "Physician Assistant Scholarship 
Fund".  The fund shall be a continuing fund, not subject to fiscal 
year limitations, and shall consist of all mo nies received by the 
Physician Manpower Health Care Workforce Training Commission for 
implementation of the Physician Assistant Scholarship Program.  All 
monies accruing to the credit of the fund are hereby appropriated 
and may be budgeted and expended by the Physician Manpower Health 
Care Workforce Training Commission fo r such scholarships as may be 
provided for pursuant to the Physician Assistant Sch olarship 
Program.  Expenditures from the fund shall be made upon warrants  ENR. H. B. NO. 2776 	Page 30 
issued by the State Treasurer aga inst claims filed as prescribed by 
law with the Director of the Office of Management and Enterprise 
Services for approval and payment. 
 
SECTION 34.     AMENDATORY     70 O.S. 2021, Section 697.21a, is 
amended to read as follows: 
 
Section 697.21a The Physician Manpower Health Care Workforce 
Training Commission shall promulgate rules to enforce the provisions 
of this act. 
  ENR. H. B. NO. 2776 	Page 31 
 
Passed the House of Representatives the 20th day of May, 2022. 
 
 
 
  
 	Presiding Officer of the House 
 	of Representatives 
 
 
Passed the Senate the 20th day of May, 2022. 
 
 
 
  
 	Presiding Officer of the Senate 
 
 
 
OFFICE OF THE GOVERNOR 
Received by the Office of the Governor this ____________________ 
day of ___________________, 20_______, at _______ o'clock _______ M. 
By: _________________________________ 
Approved by the Governor of the State of Oklahoma this _____ ____ 
day of ___________________, 20_______, at _______ o'clock _______ M. 
 
 
 	_________________________________ 
 	Governor of the State of Oklahoma 
 
OFFICE OF THE SECRETARY OF STATE 
Received by the Office of the Secretary of State this __________ 
day of ___________________, 20_______, at _______ o'clock _______ M. 
By: _________________________________