(a) As used in this section, unless the context otherwise requires:

(1) “School or college of optometry” means an accredited institution offering courses leading to the degree of doctor of optometry, acting through its governing body; and

(2) “Tennessee student” means any student who qualifies as a resident of the state for purposes of tuition according to rules and regulations of the board of trustees of the University of Tennessee or the board of regents of the state university and community college system.

(b) The Tennessee state contract administrator for the southern regional education board is authorized to contract with state or privately owned or endowed optometry schools or colleges within the southern regional education board region for the purpose of providing financial payments to the colleges in exchange for the colleges reserving places for Tennessee students at the rate per student approved by the southern regional education board.

(c) Any financial payment authorized under this section shall be made in accordance with the following provisions and limitations:

(1) Optometry colleges that annually enroll Tennessee students under the southern regional education board contract program may receive financial payments up to the total number specified in the contract, at the rate per student approved by the southern regional education board during any fiscal year; and

(2) The financial assistance shall be continued from year to year until the entering Tennessee student has been granted a degree in optometry, but not for more than four (4) years, and contracts provided for in this section may set forth the terms and provisions for continuation of the payments as provided by the southern regional education board.