2006 Utah Code - 62A-13-108 — Service obligation -- Repayment -- Penalty.

     62A-13-108.   Service obligation -- Repayment -- Penalty.
     (1) (a) Before receiving a grant or a scholarship under this chapter, each recipient shall enter into a contract with the state agreeing to the conditions upon which the grant or scholarship is to be made.
     (b) The contract shall include necessary conditions to carry out the purposes of this chapter.
     (2) (a) In exchange for financial assistance under this chapter, the recipient shall practice full-time for a minimum of 24 months in an underserved rural area at a site approved by the committee.
     (b) The recipient's full-time practice in an underserved rural area at a site approved by the committee retires the amount owed for the grant or scholarship according to a schedule established by the committee.
     (3) A grant recipient under this chapter who fails to complete the obligated service shall pay:
     (a) as a penalty, twice the total amount of the grant not yet retired by the recipient's services, on a prorated basis according to a schedule established by the committee;
     (b) 12% per annum interest on the unretired funds received under the grant, calculated from the date the grant is received until the date the grant is repaid; and
     (c) costs and expenses incurred in collection, including attorney fees.
     (4) A scholarship recipient who fails to finish his schooling and become a mental health therapist within the period of time agreed upon with the committee shall within 90 days after the deadline for completing his schooling or within 90 days of his failure to continue his schooling, whichever occurs earlier, repay:
     (a) all scholarship money received;
     (b) 12% per annum interest on the funds received under the scholarship, calculated from the date the scholarship is received until the date it is repaid; and
     (c) costs and expenses incurred in collection, including attorney fees.
     (5) A scholarship recipient who finishes his schooling and becomes a mental health therapist but who fails to fulfill his service obligation shall pay:
     (a) as a penalty, twice the total scholarship amount paid to him that is not yet retired by his service, on a prorated basis according to a schedule established by the committee;
     (b) 12% per annum interest on the unretired funds received under the scholarship calculated from the date he received the scholarship until the date it is repaid; and
     (c) costs and expenses incurred in collection, including attorney fees.
     (6) Amounts recovered and damages collected under this section shall be deposited as dedicated credits to be used to carry out the provisions of this chapter.

Amended by Chapter 157, 2001 General Session