(a) The Osteopathic Rural Medical Practice Student Loan and Scholarship Board shall administer the Osteopathic Rural Medical Practice Student Loan and Scholarship Program and the Community Match Rural Physician Recruitment Program and shall consist of six (6) members, including:

1. (1) One (1) member appointed by the Governor after consultation with each medical school in Arkansas that is not the University of Arkansas for Medical Sciences;
2. (2) One (1) member appointed by the Governor after consultation with the Arkansas Osteopathic Medical Association, who shall serve as vice chair;

3. (3) Two (2) physician members appointed by the Governor after consultation with the Arkansas Osteopathic Medical Association, giving preference to physicians who have received:

   1. (A) Osteopathic rural medical practice loans;
   2. (B) Community match loans; or
   3. (C) Income incentives; and
4. (4) Two (2) representatives appointed by the Governor after consultation with the Arkansas Hospital Association, Inc.

(b) Members of the board shall:

1. (1) Serve a term of three (3) years;
2. (2) Not serve more than two (2) consecutive terms; and
3. (3) Except as provided under subsection (d) of this section, shall serve without compensation.

(c) The board shall:

1. (1) Prescribe forms for, and regulate the submission of, loan applications;
2. (2) Determine eligibility of applicants;
3. (3) Allow or disallow loan or income incentive applications;

4. (4) Contract, increase, decrease, terminate, and otherwise regulate:

   1. (A) All loan and income incentive disbursements;
   2. (B) Receipts for their repayment; and
   3. (C) Convert loans to scholarships or grants, as applicable;
5. (5) Manage, operate, and control all funds and property appropriated or otherwise contributed;
6. (6) Accept gifts, grants, bequests, or devises and apply them as a part of the loan and scholarship program;
7. (7) Sue and be sued as the board; and
8. (8) Accept moneys from federal programs that may be used for furtherance of the purposes of this part.

(e)

1. (1) The board shall examine all osteopathic rural medical practice loan applications to determine whether the applicant needs a loan to advance his or her medical education.

2. (2) To determine whether an applicant needs a loan to advance his or her medical education, the board shall investigate:

   1. (A) Ability, character, and qualifications of the applicant; and
   2. (B) Financial standing of the applicant or his or her parents.

(f)

1. (1) The board shall make an annual report to the Governor concerning the activities of the board and shall file a copy of its report with the Legislative Council.

2. (2) The report shall include:

   1. (A) The names of the recipients of the loans;
   2. (B) The amount of each loan;
   3. (C) An accounting of the funds granted, on hand, and expended for necessary expenses;
   4. (D) The total amount of funds received during the year from gifts, federal grants, bequests, and devises; and
   5. (E) The amount of loans which, during the year, become scholarships through compliance with the conditions of the loan contracts.
3. (3) This report shall include the names and addresses and amount of loans to each person of those recipients who are in default of repayment obligations.