CHAPTER 414

An Act to amend and reenact §§ 23-35.1, 23-85.38 and 28-35.5 as amended
and 28-85.6 of the Code of Virginia, relating respectively to certain
scholarships, contracts entered into with respect to certain scholarships
and relief from the obligations imposed by such contracts under certain
conditions.

[S 203]

Approved April 3, 1954

Be it enacted by the General Assembly of Virginia:

1. That §§ 28-35.1, 23-35.3 and 23-35.5 as amended and 23-35.6 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 schol-
arships, and as to the last, ten annual medical scholarships, to be awarded
to Virginia students attending Meharry Medical College, Nashville, Ten-
nessee, each of the value of one thousand dollars to be awarded and paid
subject to the conditons 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 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 reciment of a scholarship under the provisions of this chapter to the
State Health Commissioner forthwith. Upon graduation of any recipient of
a scholarship under the provisions of this chapter, the governing board of
the school awardng such scholarship shall forthwith submit a report to
the State Health Commissioner setting forth the name and address 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 liaison with such graduates and
the Commissioner shall submit a report each year to the governing boards
of the schools enumerated herein setting forth the names of all such grad-
ae who shall have discharged the obligations imposed upon them by
28-35.8.

§ 23-35.3. Part

(a) Before any scholarship is awarded under the provisions 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 con-
tinuously in the general practice of medicine in a rural community in Vir-
ginia 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 or in any institution operated by
the Department of Mental Hygiene and Hospitals shall be considered equiv-
alent to one year’s practice of medicine in a rural community. The foregoing
shall apply only to contracts made or entered into prior to July 1, 1954.

(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, until his
graduation and, upon graduating shall promptly begin and thereafter en-
gage continuously in the general practice of dentistry in some mental insti-
tution, 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 provided,
the school beneficiary shall consent to such change in the beneficiary of
the corresponding insurance policy as may be designated by the recipient.
Upon the failure of the recipient to discharge his obligation either by ser-
vice 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 therefrom
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.

Part II

(d) After July 1, 1954, no scholarship shall be awarded under the
provisions of § 23-35.1 (a) unlesss and until the applicant 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 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 ina
rural community of 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 “general practice of medicine” and “rural community” shall con-
form to definitions thereof promulgated by the State Health Commissioner.
The State Health Commissioner may, in his discretion, direct that all or any
portion of the obligations amposed by such contract be discharged by ap-
pointment 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. The provisions of paragraph (c) herein shall not apply to
scholarships awarded after July 1, 1954.

§ 23-35.5. * Any such contract made and entered into before July one,
nineteen hundred fifty-four shall have a clause under which the holder may
be relieved of his obligation to practice in a rural section or in a mental in-
stitution, as the case may be, if, at the end of two scholastic years, he has
demonstrated a pecular and unusual ability and aptitude in a special
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 obligation 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 arrangements for reimbursing the
State for the amount he has received on account of such scholarships.
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 medicine in a rural community or a mental institution
or to serve in the public health service of the State as the case may be ?f,
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 demon-
strates 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
general 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 ar-
range to reimburse the State within a reasonable time for the amount he has
received on account of such scholarship plus interest on such amount com-
puted at the prevailing rate charged on student loans at the school attended
by the applicant.

§ 23-35.6. All funds repaid by any applicant in pursuance of the pro-
visions of the foregoing section, or otherwise, shall be paid into the treasury
of Virginia and shall become a part of the general fund. Phe governing
board of the school attended by the applicant shall collect such payments
and shall pay all moneys so received into the State treasury promptly. If
any applicant fails to abide by the terms of such contract, such fact shall
be communicated to the Attorney General by the State Health Commissioner
and and /or the governing board of the school. The Attorney General shall take

action thereon as he deems proper.