Section 42-62-16 - Health resources development fund(a) There is established in the department of health the health resources development fund to be administered by the director of the department of health pursuant to the terms and for the purposes stated in this section and § 42-62-17.(b) Moneys in the fund or for a project authorized pursuant to § 42-62-17 may be expended by contract, loan, or grant, to maintain, to expand, and to improve health facilities, health services, and health education in the state. The purposes shall include the following: construction or modernization of health facilities, the education or training of persons who would be qualified to provide professional health services, meeting the start-up costs of new forms of health delivery systems, such as health maintenance organizations, benefits for persons lacking adequate insured coverage, and the development and implementation of experiments in lower costs or to improve the quality, availability, and accessibility of health services.(c) Moneys provided by loan shall be disbursed for periods not exceeding twenty-five (25) years and at an annual rate of interest not exceeding five percent (5%).(d) Moneys may be made available for scholarships to schools of medicine or dentistry on the condition that for each year of educational cost provided by the fund the recipient is required to serve as an employee of the department of health or the department of behavioral healthcare, developmental disabilities and hospitals for a period of two (2) years.(e) Moneys disbursed from the fund or for projects authorized by § 42-62-17 shall be for purposes in conformance with state plans for comprehensive health, health services, manpower, and land use, as approved by the governor.(f) The director of the department of health, in consultation with the appropriate departmental advisory councils, shall establish criteria for eligible capital projects and eligible education and training projects which are consistent with the comprehensive health, manpower, and land use plans approved by the governor.R.I. Gen. Laws § 42-62-16