Section 904. Primary care practitioner scholarship program

1.  The
  commissioner, in collaboration with the commissioner  of  education  and
  the   president   of  the  higher  education  services  corporation,  is
  authorized  and  directed  to  establish  a  primary  care  practitioner
  scholarship  program to provide financial support to applicants to enter
  or continue in a primary care practitioner  program  and  who  agree  to
  serve in underserved areas of New York state.
    2.  The  commissioner is authorized, within amounts available pursuant
  to subdivision nineteen-a of section twenty-eight  hundred  seven-c  and
  section   twenty-eight   hundred   seven-l  of  this  chapter,  to  make
  scholarship awards pursuant to this section.
    3. A scholarship recipient shall (a) be a resident of New  York  state
  who  attends or plans to attend a primary care practitioner program; and
  (b) agree to practice as a primary care practitioner in  an  underserved
  area of New York state.
    4.  In selecting students to be awarded scholarships, preference shall
  be given to students who  attend  or  plan  to  attend  a  primary  care
  practitioner  program  located  in  New  York  state.  Priority  in  the
  selection of recipients shall be given to recipients applying for second
  year  funding.  Scholarships  shall  be  awarded   competitively   using
  selection  criteria  that  include,  but  are  not  limited to: academic
  performance, previous work experience in their chosen profession, and  a
  demonstrated   interest   or  commitment  in  working  with  underserved
  populations or in underserved areas.
    5. Within such time as the commissioner shall by regulation provide, a
  recipient of an award shall agree to practice in an underserved area  of
  this  state  for a period of eighteen months for each annual award to be
  received by the recipient. In no case shall the total number  of  months
  of  service  be  less  than eighteen. The commissioner shall secure from
  each recipient a written agreement to:
    (a) provide primary care services in an area designated  as  having  a
  shortage of primary care practitioners;
    (b)  work  in  a  practice  site  that  accepts  payment  on behalf of
  beneficiaries  of  title  XVIII  of  the  federal  social  security  act
  (medicare)  and  individuals eligible for medical assistance pursuant to
  title eleven of article five of the social services law; and
    (c) provide thirty-five hours per week of direct patient care  in  the
  designated shortage area being served.
    6.  If  a  recipient  fails  to comply fully with such conditions, the
  president shall be entitled to receive from such recipient an amount  to
  be determined by the formula:
 
                                 A = 2B(t-s)
                                    -----
                                      t
 
  in  which "A" is the amount the president is entitled to recover, "B" is
  the sum of all awards made to the recipient and  the  interest  on  such
  amount which would be payable if at the times such awards were paid they
  were  loans  bearing interest at the maximum prevailing rate; "t" is the
  total number of months in the recipient's period of obligated  services;
  and  "s"  is  the  number  of months of service actually rendered by the
  recipient. Any amount which the president is entitled to  recover  under
  this  paragraph  shall  be paid within the five-year period beginning on
  the  date  that  the  recipient  failed  to  comply  with  this  service
  condition.  Nothing  in  the written agreement shall affect the terms of
  employment of the individual who shall  negotiate,  separate  and  apart
  from  the  program, his or her salary and other forms of employment with

  an agency, institution or  a  program  in  which  he  or  she  shall  be
  employed.  Any  obligation to comply with such provisions as outlined in
  this section shall be canceled upon the  death  of  the  recipient.  The
  commissioner  shall  promulgate regulations to provide for the waiver or
  suspension of any financial obligation  when  compliance  would  involve
  extreme hardship.
    7. A recipient of an award shall report annually to the New York state
  higher  education  services  corporation,  on  forms  prescribed  by the
  president, as to the performance of the  required  services,  commencing
  with  the calendar year in which the recipient begins to provide primary
  care services in an underserved area and continuing until the  recipient
  shall have completed, or until it is determined that he or she shall not
  be  obligated to complete, the required services. If the recipient shall
  fail to file any report required hereunder within thirty days of written
  notice to the recipient,  mailed  to  the  address  shown  on  the  last
  application  for  an award or last report filed, whichever is later, the
  president of the corporation may impose a fine of  up  to  one  thousand
  dollars.  The president shall have the discretion to waive the filing of
  a report, excuse a delay in filing or a failure to  file  a  report,  or
  waive or reduce any fine imposed for good cause shown.
    8.  The  commissioner  is  authorized to apply any funds available for
  purposes of subdivision two of this section for use  as  matching  funds
  for  the  federal  community  scholarship  programs  grants  pursuant to
  section three hundred thirty-eight L of the public health service act.