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: _________________________________