(a)

(1) Any person licensed to practice medicine in this state who subsequent to July 1, 1999, establishes a full-time practice of family medicine in a community in Arkansas having a population of not more than fifteen thousand (15,000) persons as set forth in § 20-12-501, when that community is identified by the Department of Health as medically underserved shall be eligible to make application for a grant under this subchapter in an amount described under § 20-12-501.

(2) Grants shall be awarded on the basis of available funds, with priority given to rural communities having the greatest need.

(3) Grant recipients shall enter into a contract to serve a proportionate number of Medicaid patients for the community, agree to work within the existing health care system, and practice a minimum of thirty-two (32) hours a week.

(b)

(1) The department shall enter into a grant agreement with the recipient of a Rural Physician Incentive Grant.

(2) Each applicant to whom a grant is awarded shall execute a written grant agreement which shall incorporate the following obligations and conditions:

(A) The recipient of a grant shall commit to provide four (4) continuous years of primary care services in accordance with § 20-12-501;

(B)

(i) If any grant recipient under this subchapter does not engage in the practice of primary care services in accordance with the terms of this section, the recipient shall be obligated to repay the grant received together with interest thereon at the maximum rate allowed by Arkansas law or the federal discount rate plus five percent (5%) per year whichever is less the interest to accrue from the date each payment of funds was received by the recipient.

(ii) No interest shall accrue nor obligation to repay the principal sums accrued during any one (1) period of time that the recipient involuntarily serves on active duty in the United States armed forces; and

(C) Repayment of principal with interest shall be due and payable in full at the earliest to occur of the following events:

(i) Failure to remain in the originating rural community for four (4) continuous years for any reason other than temporary personal illness; and

(ii) Failure to practice primary care on a regularly sustained basis as defined in § 20-12-501(a).

(c) Persons accepted into and participating in the Rural Physician Incentive Grant Program prior to July 1, 1999, will be eligible to complete the program under the payment system established when they entered the program.