Amends TCA Title 49 and Title 63.

This bill requires the department of health to create and administer, subject to specific appropriation of funds by the general assembly, a family medicine student loan repayment grant program ("program"). In order to be eligible for a repayment grant ("grant") under the program, a person must meet the following criteria: (1) Have graduated from an accredited medical school; (2) Be actively enrolled in a Tennessee family medicine residency training program, matched through the existing matching process used for graduate medical education and accredited for certification by the American Board of Family Medicine; (3) Apply to the department of health for a grant, on forms provided by the department, during their family medicine residency training; and (4) Enter into a contract with the department to provide medical health services in a Tennessee health resource shortage area, as defined by the department of health, office of rural health, for at least five years following residency training in family medicine. GRANTS This bill requires the department to issue program monies to pay grants to grant recipients for the amount of principal, interest, and related expenses of the physician's medical school educational loans, not to exceed the physician's total student loan indebtedness. Subject to the appropriation of sufficient funds and verification that a physician meets the eligibility requirements, the department may award grants to qualifying physicians of up to $40,000 per year for a maximum of five years as long as the sum of all grants made to a qualifying physician do not exceed the physician's total student loan indebtedness. The department is authorized to use private donations, private grants, federal monies, and state monies to implement, support, promote, or maintain the family medicine student loan repayment program. REPORT This bill requires the department to issue an annual report to the governor, the chair of the education administration committee of the house of representatives, and the chair of the senate education committee detailing the number of physicians applying for and awarded grants, including information regarding the number of applicants and grant recipients identified by health resource shortage area. REMEDIES This bill provides that a physician who receives a grant and breaches the contract created by failing to begin or to complete the obligated services is liable for liquidated damages in an amount equivalent to the amount that would be owed for default and any other penalties as determined and authorized by the department. The department may retain legal counsel and commence whatever actions necessary to collect loan payments and charges if there is a default or a breach of a contract entered into. The department may waive the liquidated damages if it determines that death or permanent physical disability accounted for the failure of the participant to fulfill the contract. The department may prescribe additional conditions for default, cancellation, waiver, or suspension. RULEMAKING This bill authorizes the department of health to promulgate rules to effectuate this bill. However, the promulgation of rules must be in consultation with the Tennessee student assistance corporation, the board of medical examiners, and the board of osteopathic examination.