(a) (1) There is established the Arkansas Rural Medical Practice Student Loan and Scholarship Board composed of:

(A) The Dean of the College of Medicine of the University of Arkansas for Medical Sciences as chair;

(B) One (1) representative of the Arkansas Medical Society as vice chair;

(C) The Chancellor of the University of Arkansas for Medical Sciences;

(D) One (1) representative of the College of Medicine of the University of Arkansas for Medical Sciences, named by the dean of that school;

(E) Two (2) physician members appointed by the Arkansas Medical Society, giving preference to physicians who have received rural medical practice loans, community match loans, or income incentives; and

(F) Two (2) representatives appointed by the Arkansas Hospital Association.

(2) Vacancies shall be filled in a similar manner.

(b) The board shall:

(1) Promulgate reasonable rules necessary to execute the provisions of this subchapter, including rules addressing the requirements and in conformance with the requirements of the Arkansas Administrative Procedure Act, § 25-15-201 et seq., and other appropriate state laws in promulgating and placing rules into effect:

(A) For a health professions shortage area;

(B) To become a qualified rural community eligible to participate in the Rural Medical Practice Student Loan and Scholarship Program or the Community Match Rural Physician Recruitment Program; and

(C) For a procedure to resolve disputes arising out of or relating to a rural practice or community match loan or income incentive contract;

(2) Prescribe forms for and regulate the submission of loan applications;

(3) Determine eligibility of applicants;

(4) Allow or disallow loan or income incentive applications;

(5) Contract, increase, decrease, terminate, and otherwise regulate all loan and income incentive disbursements for these purposes, receipts for their repayment, and convert loans to scholarships or grants, as applicable;

(6) Manage, operate, and control all funds and property appropriated or otherwise contributed for this purpose;

(7) Accept gifts, grants, bequests, or devises and apply them as a part of this program;

(8) Sue and be sued as the board; and

(9) Accept moneys from federal programs that may be used for furtherance of the purposes of this subchapter.

(c) The members of the board may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.

(d) The Arkansas Rural Medical Practice Student Loan and Scholarship Board shall administer the Rural Medical Practice Student Loan and Scholarship Program and the Community Match Rural Physician Recruitment Program.