California Code of Regulations › Title 22 - Social Security › Division 7 - Health Planning and Facility Construction › Chapter 14 - Health Professions Education Foundation › Article 3 - Scholarships › Section 97737 - Penalties for Non-Compliance by a Scholarship Recipient

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) When a scholarship recipient fails to
				  maintain an acceptable level of academic standing (as established by the
				  participating school or institution), is dismissed from school for disciplinary
				  reasons, or voluntarily terminates the course of study or program for which the
				  scholarship was awarded, then the recipient shall be liable to repay the amount
				  that has been paid by the Office, plus interest. Interest shall be computed at
				  the rate of 7 percent per year. The interest shall begin accruing from the date
				  the Office determines the course of study ceased. Repayment shall be required
				  in quarterly installments, in amounts calculated by the Office to permit total
				  repayment in seven years.
(b) If a
				  scholarship recipient fails to begin or complete the service obligation, the
				  Office shall be entitled to recover from the individual an amount determined by
				  the following formula, plus interest:
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in which "A" is the amount the Office is entitled to
					 recover; "F" is the sum of the amounts paid under this chapter; "T" is the
					 total number of months in the individual's period of obligated service; and "S"
					 is the number of months of such period already served by the individual.
					 Interest shall be charged on the outstanding principal at the rate of 10
					 percent per year. Interest shall begin to accrue from the date the service
					 obligation was to begin, or when it prematurely ceased, as determined by the
					 Office. Repayment shall be required in quarterly installments, in amounts
					 calculated by the Office to permit total repayment in seven
					 years.
(c) If a scholarship
				  recipient fails to accept payment or instructs the participating school or
				  institution not to accept payment of the scholarship provided by the Office,
				  for any reason not listed in paragraph (a), then the recipient must, in
				  addition to repaying the Office any amounts already provided, plus interest,
				  pay to the Office the amount of $1,500.00 liquidated damages. The liquidated
				  damages shall be due and owing within 30 days of the date on which the
				  participant fails to accept payment of the scholarship award or instructs the
				  school not to accept payment. Interest shall be computed at the rate of 10
				  percent per year. Repayment of any scholarship monies, and interest, shall be
				  required in quarterly installments, in amounts determined by the Office to
				  permit repayment in seven years.
1. New
					 section filed 5-24-90 as an emergency; operative 5-24-90 (Register 90, No. 27).
					 Section remains in effect pursuant to Education Code section
					 69801
					 unless amended or repealed by the Office of Statewide Health Planning and
					 Development.
2. Change without regulatory effect amending NOTE filed
					 7-3-2017 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2017, No. 27).
Note: Authority cited: Section
						128360,
						Health and Safety Code. Reference: Sections
						128345
						and
						128350,
						Health and Safety Code.