SECTION 1. Chapter 29 of the General Laws is hereby amended by inserting after section 2JJJJJJ the following section:-

2KKKKKK. (a) There shall be established and set up on the books of the commonwealth a separate fund known as the Primary Care Physician Loan Repayment Fund. The fund shall be credited with: (i) appropriations or other money authorized or transferred by the general court and specifically designated to be credited to the fund; (ii) funds from public and private sources, including, but not limited to, gifts, grants and donations; and (iii) any interest earned on the assets of the fund. Amounts credited to the fund that are unexpended at the end of a fiscal year shall not revert to the General Fund.

(b) Amounts credited to the fund may be expended, without further appropriation, by the health care workforce center established in section 25L of chapter 111 for loan assistance payments under the primary care physician loan repayment program established in section 25N¼ of said chapter 111.

(c) Annually, not later than July 1, the center shall submit to the clerks of the house of representatives and the senate, the house and senate committees on ways and means, the joint committee on health care financing, the joint committee on mental health and substance abuse and the joint committee on public health a report on the activities of the fund.

SECTION 2. Chapter 111 of the General Laws is hereby amended by inserting after section 25N the following section:-

Section 25N¼. (a) There shall be a primary care physician loan repayment program administered by the health care workforce center established in section 25L. The program shall pay the medical school loan balance of participants who commit to practicing medicine as a primary care physician in the commonwealth for at least 10 years. Each recipient shall enter into a contract with the commonwealth, which shall obligate the recipient to perform a term of service of not less than 10 years as a primary care physician in the commonwealth.

(b) The center shall promulgate regulations for the administration and enforcement of this section, which shall include penalties and repayment procedures if a participant fails to comply with the service contract.

(c) The center shall evaluate the program annually, including exit interviews of participants to determine their post-program service plans and to solicit program improvement recommendations.

(d) Annually, not later than July 1, the center shall file a report with the governor, the clerks of the house of representatives and the senate, the house and senate committees on ways and means, the joint committee on health care financing, the joint committee on mental health and substance abuse and the joint committee on public health. The report shall include annual data and historical trends of: (i) the number of applicants, the number accepted and the number of participants by race, gender, medical school, residence prior to medical school and where they plan to practice after program completion; (ii) the service placement locations and length of service commitments by participants; (iii) the number of participants who fail to fulfill the program requirements and the reason for the failures; and (iv) program expenditures.