Considers and provides recommendations on the selection of areas within the state where residency educational programs in family medicine could exist, the allocation of funds appropriated for family medicine education and residency programs, and the procedures for review and evaluation of these residency programs, with the intent of increasing the number of family medicine physicians in shortage areas in Washington by providing a fiscal incentive for hospitals nd clinics to develop or expand residency programs in these areas; determines the number of these programs in keeping with the needs of the state.