(a) The Graduate Medical Education Residency Expansion Board shall award planning grants to enable entities with existing graduate medical education programs to:

1. (1) Increase the number of first-year residency positions; and

2. (2)

   1. (A) Provide for the establishment of new graduate medical education programs with first-year residency positions.
   2. (B) Once awarded, these grants shall be in effect for no more than three (3) consecutive fiscal years.

(b) These grants shall be used to support the direct resident costs to the graduate medical education program, including without limitation:

1. (1) Stipends;
2. (2) Benefits; and
3. (3) Start-up costs, at the board’s discretion.

(c) An entity applying for a planning grant under this section shall:

1. (1) Submit a plan by October 1 for receiving accreditation for the increased number of residency positions or for the new graduate medical education program, as applicable; and

2. (2) The plan shall include, without limitation:

   1. (A) A timeline;
   2. (B) A budget;
   3. (C) A proposed program;
   4. (D) The size of the program;
   5. (E) Proof of accreditation application;
   6. (F) Letters of support from both the sponsoring institution and entity; and
   7. (G) The number of current residency slots available and the number of new residency slots that will be established.

(d)

1. (1) Distribution of a planning grant for a residency position under this section will only occur after the board receives verification that the applicable residency position or positions has been filled.

2. (2) Verification will be completed by sending the following to the Division of Higher Education upon receipt:

   1. (A) The notification of decision from the Accreditation Council for Graduate Medical Education; and
   2. (B) Verification of resident contract.