36-2175

ARIZONA STATUTES AND CODES

36-2175. Behavioral health practitioners; loan repayment program; eligibility; default; damages; program termination; definition

A. The behavioral health practitioners loan repayment program is established in the department to pay off portions of education loans taken out by behavioral health practitioners.

B. The department shall prescribe eligibility requirements for the program that are consistent with the national health services corps state loan repayment program as prescribed in 42 Code of Federal Regulations part 62, subpart C or similar criteria as established by the department.

C. To be eligible for loan repayment an applicant must:

1. Meet at least one of the following requirements:

(a) Hold an active license as a behavioral health practitioner.

(b) Have completed the final year of a course of study or program leading to a degree or license as a behavioral health practitioner.

2. Meet both of the following requirements:

(a) Demonstrate current or prospective employment with a behavioral health agency licensed pursuant to chapter 4 of this title.

(b) Contract with the department to serve for at least two years in full-time behavioral health practice.

D. The department shall prescribe procedures to cancel or suspend a loan repayment contract, impose a penalty or find a person in default of a contract.

E. The department shall limit loan repayments to the amount of principal, interest and related expenses of education loans according to the following schedule:

1. For physicians and psychiatrists:

(a) For the first year of service, a maximum of twenty thousand dollars.

(b) For the second year of service, a maximum of twenty thousand dollars.

(d) For the fourth year of service, a maximum of twenty-five thousand dollars.

2. For psychologists, nurse practitioners and physician assistants, a maximum of ten thousand dollars for each of the two years of service.

3. For all other behavioral health care practitioners, a maximum of seven thousand dollars for each of the two years of service.

F. Loan repayment contract obligations are subject to the availability of monies. The department may cancel or suspend a loan repayment contract based on unavailability of monies for the program. The department is not liable for any claims, actual damages or consequential damages arising out of a cancellation or suspension of a contract.

G. The department may use private donations, grants and federal monies to implement the program. The legislature shall not appropriate and the agency shall not transfer state general fund or other state monies to support, promote or maintain the program.

H. This section does not prevent the department from encumbering an amount that is sufficient to assure payment of each behavioral health practitioner loan for up to two years.

I. A participant in the program who breaches the loan repayment contract by failing to begin or to complete the obligated services is liable for liquidated damages in an amount that is equivalent to twice the total uncredited amount of the loan repayment contracted for on a prorated monthly basis. The department may waive the liquidated damages provisions of this subsection if it determines that death or permanent physical disability caused the participant's failure to fulfill the contract.

J. Notwithstanding section 41-192, the department may retain legal counsel and bring whatever action is necessary to collect loan payments and charges if there is a default or a breach of a contract entered into pursuant to this section.

K. The program established by this section ends on July 1, 2015 pursuant to section 41-3102.

L. For the purposes of this section, "behavioral health practitioner" means:

1. A psychiatrist, psychologist, physician assistant, registered nurse, nurse practitioner or behavioral health professional who is licensed pursuant to title 32.

2. A behavioral health technician or a behavioral health paraprofessional who is employed by an agency licensed by the department.