CHAPTER 641

An Act to amend and reenact 8§ 23-35.1, 23-35.8, 23-35.4 and 238-85.5 of
the Code of Virginia, relating to scholarships at certain institutions,
so as to provide for the awarding of scholarships to medical and dental
students under certain conditions; and to appropriate funds.
Be it enacted by the General Assembly of Virginia:

1. That §§ 23-35.1, 23-35.3, 23-35.4 and 23-35.5 of the Code of Virginia
be amended and reenacted as follows:

§ 23-35.1 (a) The governing boards of the Medical College of Vir-
ginia, 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 as to the last, ten annual medical scholarships, to be
awarded to Virginia students attending Meharry Medical College, Nash-
ville, Tennessee, each of the value of one thousand dollars to be awarded
and paid subject to the conditions and restrictions set out in the follow-
ing 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 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.

§ 23-35.3. (a) Before any scholarship is awarded under the provt-
sions of § 23-35.1 (a), the applicant must sign 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 at which the
scholarship is awarded, until his graduation and, upon graduating and
completing a term not to exceed two years as an interne at some hospital
or institution approved by the school, shall promptly begin and thereafter
engage continuously in the general practice of medicine in a rural com-
munity in Virginia of his selection, but his selection shall be from one
approved by the State Health Commissioner and by the State Board of
Health, for a period of years equal in number to the years which he has
been a beneficiary of such scholarship, provided that one year’s internship
in any rural hospital in the State of Virginia selected by the State Health
Commissioner and approved by the State Board of Health shall be con-
sidered equivalent to one year’s practice of medicine in a rural community.

(b) Before any scholarship is awarded under the 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, unttl
his graduation and, upon graduating shall promptly begin and thereafter
engage continuously in the general practice of dentistry in some mental
institution, in the State of Virginia, for a period of years equal in number
to the years which he has been a beneficiary of such scholarship; provided
that if the Commissioner of Mental Hygiene and Hospitals certifies that
no suitable vacancy exists in any State mental institution, then the obliga-
tion of such contract may be discharged by compliance with the conditions
set forth in paragraph (a) of this section.

(c) Each recipient, when such scholarship is awarded, shall be re-
quired to insure his life, for the benefit of the school awarding the scholar-
ship, in a sum equal at least to the value of each scholarship awarded him,
the insurance policy to contain a specific provision that the school bene-
ficiary shall not be changed without the consent of the beneficiary. Upon
cancellation of each note executed by the recipient as hereinbefore pro-
vided, the school beneficiary shall consent to such change in the beneficiary
of the corresponding insurance policy as may be designated by the recipi-
ent. Upon the failure of the recipient to discharge his obligation either by
service or payment, as herein required, or by reason of his death or any
other cause, the policy or policies and any and all proceeds derived there-
from shall become the property of the school beneficiary. All premiums
on the insurance policy or policies shall be paid by the recipient of the
scholarship.

§ 23-35.4. The contract shall provide that if applicant enters military
service upon completion of his term as an interne or upon graduation tf a
graduate in dentistry, he shall begin practice in a rural community, or in
a mental institution, as the case may be, of his selection; but the selection
of a rural community hospital shall be from one approved by the State
Health Commissioner and by the State Board of Health upon termination
of such military service. 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. The contract shall have a clause under which the holder
may be relieved of his obligation to practice in a rural section or in a
mental institution, as the case may be, if, at the end of two scholastic years,
he has demonstrated a peculiar and unusual ability and aptitude in a spe-
cial branch of the medical sciences and, in the opinion of the faculty,
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,
the contract shall provide that he may be released from his obligation
and continue his course without a scholarship, and shall be under no obli-
gation to engage in general practice in a rural section or in a mental
institution of Virginia for a period equal to that during which he has
received such scholarship; provided that he makes satisfactory arrange-
ments for reimbursing the State for the amount he has received on account
of such scholarships.