A. The “graduate medical education expansion grant program fund” is created as a nonreverting fund in the state treasury. The fund consists of appropriations, gifts, grants and donations. The authority shall administer the fund, and money in the fund is appropriated to the authority to administer the provisions of the Graduate Medical Education Expansion Grant Program Act. Money in the fund may be used to secure federal and private matching funds as determined by the secretary. Money in the fund shall be disbursed on warrants signed by the secretary of finance and administration pursuant to vouchers signed by the secretary of health care authority or the secretary’s authorized representative.

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B. To receive a grant, a graduate medical education training program shall apply to the graduate medical education expansion grant program as provided by rules promulgated by the authority. Grant amounts shall be determined by each applicant’s grant application. Funds from the graduate medical education expansion grant program fund shall be distributed to graduate medical education training programs to develop and implement graduate medical education training programs. The application shall include the applicant’s plan to receive accreditation for the positions within the graduate medical education training program.

C. The authority may provide one-time planning grants to graduate medical education training programs as provided by rule.

D. The authority may provide graduate medical education grants to:

(1)     establish new graduate medical education training programs with first-year positions;

(2)     fund unfilled, accredited first-year positions within a graduate medical education training program;

(3)     expand the number of first-year positions within an existing graduate medical education training program; and

(4)     fund existing graduate medical education training programs.

E. The authority may prioritize applications that emphasize the following:

(1)     developing new or expanded programs with specialties of psychiatry, family medicine, pediatric medicine and internal medicine;

(2)     increasing positions for medical specialities having shortages within the state, with preference being given to the primary care specialties of family medicine, pediatric medicine and internal medicine; and

(3)     increasing primary care positions in medically underserved areas within the state.

F. Each award recipient shall report annually to the graduate medical education expansion review board on the:

(1)     expenditures of grant funds; and

(2)     plans for unexpended funds.