(a) The Graduate Medical Education Residency Expansion Board shall allocate funds for the award of a one-time planning grant to an entity in this state that is:

1. (1) In the process of creating a graduate medical education program; or
2. (2) Expanding an existing graduate medical education program.

(b) The board, within its discretion, shall award planning grants on a competitive basis upon consideration of, but not limited to:

1. (1) Development of new or expanded programs with specialties defined in this part;
2. (2) Increasing positions for medical specialties having shortages within the state; and
3. (3) Increasing positions in medically underserved areas.

(c)

1. (1) Planning grant applications shall be submitted to the Division of Higher Education no later than July 15 of the year preceding the year for which the planning grant will be used.
2. (2) Planning grants shall be awarded to the selected eligible entities no later than August 15 of the year the application was submitted.
3. (3) An entity that establishes additional first-year residency positions after the receipt of a planning grant awarded that same year is eligible for additional funds for each position established.