CHAPTER 651

An Act to amend and reenact § 23-35.1, 23-35.8, 28-85.4 and 28-35.5, as
amended, and 28-85.7 and 28-85.8, of the Code of Virginia, relating to
college and University scholarships at certain schools and conditions
and provisions for administering the same. <

[S 418]

Approved April 5, 1968

Be it enacted by the General Assembly of Virginia:
1. That § 23-35.1, 23-85.3, 23-35.4 and 23-35.5, as amended, and 23-35.7
and 23-35.8, of the Code of Virginia be amended and reenacted as follows:
§ 23-35.1. Medical and dental scholarships authorized.—(a) The
governing boards of the Medical College of Virginia, and of the University
of Virginia, and of Virginia State College are authorized to establish, as
to the former two, twenty annual medical scholarships, and to the last,
ten annual medical scholarships, to be awarded to Virginia students attend-
ing Meharry Medical College, Nashville, Tennessee, or other college offer-
ing such courses, each of the value of one thousand five hundred dollars to
be awarded and ‘paid subject to the conditions and restrictions set out in
the following sections.

(b) The governing boards of the Medical College of Virginia and the
Virginia State College are authorized to establish, as to the first, four
annual dental scholarships, and as to the second, two annual dental scholar-
ships, each of the value of one thousand five hundred dollars to be awarded
and paid subject to the conditions and restrictions set out in the following
sections; provided that as to the scholarships for Virginia State College
attendance shall be at Meharry Medical College or other college offering
such courses.

(c) The governing boards of the Medical College of Virginia and of
the University of Virginia and of Virginia State College shall send the name
of any recipient of a scholarship under the provisions of this chapter to
the State Health Commissioner forthwith. Upon graduation of any recipi-
ent of a scholarship under the provisions of this chapter, the governing
board of the school awarding such scholarship shall forthwith submit a
report to the State Health Commissioner setting forth the name and ad-
dress of such graduate, the length of time such graduate has held such
scholarship and the amount of money paid to or on behalf of such graduate
thereunder. The State Health Commissioner shall maintain laison with
such graduates and the Commissioner shall submit a report each year to
governing boards of the schools enumerated herein setting forth the names
of all such graduates who shall have discharged the obligations imposed
upon them by § 23-35.3.

§ 23-35.38. Written contract required; conditions and provisions;
scholarship deemed repaid upon death of recipient.—(a)

(b) Before any scholarship is awarded under he provisions of
§ 23-35.1 (b), the applicant must sign a written contract, under which he
agrees to pursue the dental course of the school awarding the scholarship,
or the dental course at the school at which the scholarship is awarded, until
his graduation and, upon graduating shall promptly begin and thereafter
engage continuously in the general practice of dentistry * as an employee
of the * Virginia Department of Mental Hygiene and Hospitals or the
Virginia Health Department, for a period of years equal in number to the
years which he has been a beneficiary of such scholarship; provided that if
the Commissioners of Mental Hygiene and Hospitals and Health certify
that no suitable vacancy exists in * their departments, then the obligation
of such contract may be discharged by compliance with the conditions set
forth in paragraph * (d) of this section.

(d) After July one, nineteen hundred fifty-four, no scholarship shall
be awarded under the provisions of § 23-85.1 (a) unless and until the appli-
cant shall have signed a written contract under the terms of which he
agrees to pursue the medical course of the school awarding the scholarship,
or the medical course at the school for which the scholarship is awarded,
until his graduation and upon graduation and completing a term not to
exceed * three years as an intern or resident at some hospital or institution
approved by the school, shall promptly begin and thereafter engage contin-
uously in the * practice of family medicine in * an area of need in Virginia
for a period of years equal to the number of years which he has been a
beneficiary of such scholarship. As used herein the terms ‘“ * practice of
family medicine” and “ * area of need” shall conform to definitions thereof
promulgated by the State Health Commissioner. The State Health Commis-
sioner may, in his discretion, direct that all or any portion of the obligations
imposed by such contract be discharged by appointment and service in the
public health service of the State or by service in any institution operated
by the Department of Mental Hygiene and Hospitals.

(e) In the event the holder of any medical or dental school scholar-
ship awarded pursuant to §§ 23-35.1 through 23-35.8 of this chapter dies
while receiving instruction under such a scholarship, any balance unpaid
and agreed to be repaid by the holder thereof shall be deemed paid, and no
liability shall be attached to his estate.

§ 23-35.4. Other provisions; military service—The contract shall
provide that * the applicant will not obligate himself for more than the
minimum military service required for physicians or dentists, as the case
may be. It shall further provide that on termination of the minimum period
of obligatory military service, he shall promptly begin the discharge of his
obligation by compliance with the conditions set forth in paragraph (b)
or (d) of § 28-85.3, whichever is applicable. The contract shall contain
such other provisions as are considered necessary, in the opinion of the
president or other proper officer of the school to accomplish the purposes
of such scholarship.

§ 23-35.5. Relief from obligation of contract in case unusual ability
is displayed.—* Any such contract made and entered into after July one,
nineteen hundred fifty-four shall have a clause under which the holder may
be relieved of his obligation to practice family medicine in * an area of need
or a mental institution or to serve in the public health service of the State
as the case may be if, at any time the holder fails to maintain a scholastic
standard at least equal to the standard required of the general student body
in such school or if the holder, at any time, becomes permanently disabled
so as not to be able to engage in the practice of medicine or if at any time the
holder demonstrates a peculiar and unusual ability and aptitude in a special
branch of the medical sciences and, in the opinion of the faculty or the
State Health Commissioner would be a loss to the field of medical research
and science if he did not go into that branch of medical science for which
he has demonstrated extraordinary ability. In such case, upon certificate of
a faculty committee or the State Health Commissioner the contract shall
provide that the holder shall be relieved of his obligation to engage in the
* family practice of medicine, or to serve in the public health service of the
State or to practice in a mental institution for a period equal to that
during which he has been a beneficiary of such scholarship. Any applicant,
upon being so relieved from the obligations imposed by such contract shall
arrange to reimburse the State * for the amount he has received on account
of such scholarship plus interest on such amount computed at the prevailing
rate charged on student loans at the school attended by the applicant.
Provided, however, if such applicant, or any applicant who for any reason
repays all or any part of the amount received of such scholarships, after
reimbursing such amount plus interest to the State, later fulfills the terms
of his contract by completing his studies and engaging in * family practice
in * an area of need as provided in § 23-35.3 or in a mental institution of
Virginia or service with State Health Department for a period equal to
that during which he received such scholarship, such applicant shall have
reimbursed to him, from the general fund of the State treasury, the amount
of the scholarship, and interest previously repaid to the State. This reim-
bursement shall be made on any contract whether heretofore or hereafter
made under the provisions of this section.

Any contract made under this chapter may be terminated after two
years in school after notice, upon immediate repayment of the entire *
scholarship with interest at the rate charged on student loans.
§ 23-35.7. Scholarship may be from year to year.—Each scholarship
shall be awarded for a single year, but the same student shall, after making
satisfactory progress toward his degree in the discretion of the president
or other proper officer of the school, receive such award for any succeeding
year or years, provided no student shall receive * more than four scholar-
ships.

§ 28-35.8. Payment of amount to student or to his account.—The
funds making up such scholarship shall be paid to the recipient thereof, or
applied toward the payment of his expenses at the school in such a manner
and at such time during the school year as is determined by the president
or other proper officer of the school, provided that no applicant for any
such scholarship shall receive less than one thousand five hundred dollars.