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(1) There is created within the department the Rural Physician Loan Repayment Program to provide, within funding appropriated by the Legislature for this purpose, education loan repayment assistance to physicians in accordance with Subsection (2).
(2) The department may enter into an education loan repayment assistance contract with a physician if:
(a) the physician:
(i) locates or continues to practice in a rural county; and
(ii) has a written commitment from a rural hospital that the hospital will provide education loan repayment assistance to the physician;
(b) the assistance provided by the program does not exceed the assistance provided by the rural hospital; and
(c) the physician is otherwise eligible for assistance under administrative rules adopted under Subsection (6).
(3) Funding for the program:
(a) shall be a line item within an appropriations act;
(b) may be used to pay for the per diem and travel expenses of the Rural Physician Loan Repayment Program Advisory Committee under Subsection 26-46a-104(5); and
(c) may be used to pay for department expenses incurred in the administration of the program:
(i) including administrative support provided to the Rural Physician Loan Repayment Program Advisory Committee created under Subsection 26-46a-104(7); and
(ii) in an amount not exceeding 10% of funding for the program.
(4) Refunds of loan repayment assistance, penalties for breach of contract, and other payments to the program are dedicated credits to the program.
(5) The department shall prepare an annual report of the program's revenues, expenditures, and outcomes.
(6)
(a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department shall make rules governing the administration of the program, including rules that address:
(i) application procedures;
(ii) eligibility criteria;
(iii) verification of the amount provided by a rural hospital to a physician for repayment of the physician's education loans;
(iv) service conditions, which at a minimum shall include professional service by the physician in the rural hospital providing loan repayment assistance to the physician;
(v) selection criteria and assistance amounts;
(vi) penalties for failure to comply with service conditions or other terms of a loan repayment assistance contract; and
(vii) criteria for modifying or waiving service conditions or penalties in the case of extreme hardship or for other good cause.
(b) The department shall seek and consider the recommendations of the Rural Physician Loan Repayment Program Advisory Committee created under Section 26-46a-104 as it develops and modifies rules to administer the program.