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his or her first award payment prior to the nineteen hundred eightyfive-nineteen hundred eighty-six academic year.

§ 5. The opening paragraph of subdivision four of section six hundred five of such law, as amended by chapter eight hundred forty-four of the laws of nineteen hundred seventy-five, is amended to read as follows:

At least thirty percent of the regents professional education in medicine or dentistry scholarships awarded each year shall be awarded to students beginning or engaged in the professional study in medicine who agree to practice medicine upon completion of their professional training in

an area in New York state designated as having a shortage of physicians, provided, however, that to the extent that regents physician shortage scholarships

not awarded, such scholarships shall be awarded as regents professional education in medicine and dentistry scholarships. The provisions of this subdivision shall only apply to any recipient who receives his or her first award payment prior to the nineteen hundred eighty-five-nineteen hundred eighty-six academic year.

§ 6. Section six hundred seventy-two of such law is amended by adding a new subdivision four to read as follows:

4. The provisions of this section shall only apply to any recipient who receives his or her first award payment prior to the nineteen hundred eighty-five-nineteen hundred eighty-six academic year.

7. Section six hundred seventy-two-a of such law is amended by adding a new subdivision four to read as follows:

of this section shall only apply to any recipient who receives his or her first award payment prior to the nineteen hundred eighty-five-nineteen hundred eighty-six academic year.

၌ 8. Section six hundred seventy-two-b of such law is amended by adding ing a new subdivision four to read as follows:

The provisions of this section shall only apply to any recipient who receives his or her first award payment prior to the nineteen hundred eighty-five-nineteen hundred eighty-six academic year.

၌ 9. Section six hundred seventy-three of such law is amended by adding a new subdivision fourth read as follows:

The provisions of this section shall only apply to any recipient who receives his or her first award payment prior to the nineteen hundred eighty-five-nineteen hundred eighty-six academic year.

S 10. Section six hundred five of such law is amended by adding three new subdivisions nine, ten and eleven to read as follows:

9. Regents physician loan forgiveness program. Regents physician loan forgiveness awards shall be awarded annually to physicians who agree to practice medicine in an area of New York state designated by the regents as having a shortage of physicians. Fifty such awards shall be awarded annually, and shall be classified and allocated in accordance with regents rules.

8. Eligibility. (1) The applicant must be a resident of New York state and a graduate of medical school approved registered by the regents.

(2) The applicant must have completed a professional residency program within the five years immediately preceding the period for. which the first award would be granted, provided however the applicant has not received a regents physician shortage scholarship.

(3) The applicant must agree t& practice medicine in an area in New York state designated as having a shortage of physicians. The regents, after consultation with the commissioners of health, correctional services, mental health and mental retardation and developmental disabilities, shall designate those regions and facilities of New York state which have a shortage of physicians for the purposes of this section and establish relative rankings thereof.

b. Selection. Priority shall be accorded to applicants in the following order:

(1) First, to any applicant who is completing the second year of the service requirement and is reapplying for a new award;

(2) Second, to any applicant whose residence in New York state at the time of entry into post secondary education is currently within a physician shortage area;

(3) Third, to any applicant according to the severity of the physician shortage in the area selected by the applicant. Preference within each category shall be given to those applicants who have completed a residency in family practice or primary care. In the event that there EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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applicants who have the same priority than there are remaining awards, the commissioner shall distribute the remaining awards by means of a lottery or other form of random selection;

Not if'ication. (1). The commissioner shall' then forward approved applications to the president and shall notify unsuccessful applicants;

(2) The president shall verify the approved applicants': (i) eligibility; (ii), total undergraduate and medical school student loan expense; and

(iii) non-participation in the regents physician shortage scholarship program; and

(3) The president shall not ify applicants of their award entitlement.

d. Service requirement. Within such time as the commissioner shall by regulation provide, a recipient of an award shall have agreed to practice medicine in an area designated as having a shortage of physicians for a period of twelve months for each annual payment to be received by the recipient. In no case shall the total number of months of service required be less than twenty-four. The president shall, in consultation with the commissioner, develop and secure from each award recipient, a written agreement to practice medicine in a designated shortage area. If а 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)

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in which "A" is the amount the president is entitled to recover; "B" is the sum of all payments made to the recipient and the interest 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 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 a part from the program, his or her salary and other forms of employment with agency, institution

program in which he or she shall be employed.

Any obligation to comply with such provisions as outlined in this section shall be cancelled upon the death of the recipient.

The commissioner shall make regulations to provide for the waiver or suspension of any financial obligation which would involve extreme hardship.

e. Reporting: A recipient of an award shall report annually to the New York state higher education services corporation, on forms prescribed by it as to the performance of the required services, commencing with the calendar year in which the recipient begins to practice medicine in shortage area and continuing until the recipient shall have completed, or 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 fine of up to one thousand dollars. The president shall have the discretion to waive the filing of report, delay in filing or, a failure to file a report, or waive or reduce any fine imposed for good cause shown.

f. Other awards. Award recipients shall be eligible to apply for one additional award.

10. Regents health care professional opportunity scholarships. Regents health care professional opportunity scholarships shall be awarded annually to students who are beginning or engaged in an approved program in medicine or dentistry and who are economically disadvantaged and/or members of an underrepresented minority group, provided, however,' that to the extent that regents health care professional, opportunity scholarships are not awarded, such scholarships shall be awarded as regents professional opportunity scholarships. These scholarships shall be classified and allocated in accordance with regents rules.

a. In selecting and certifying scholarship recipients under this subdivision, priority shall be accorded to applicants in the following order:

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(1) First, to any applicant who is economically disadvantaged as defined by the regents and a minority historically underrepresented the profession as determined by the regents after consultation with the council on professional career opportunity created by section nine hundred forty-one of the executive law;,

(2) Second, to any applicant who is a minority underrepresented in the profession as determined by the regents after consultation with the council on professional career opportunity created by section nine hundred forty-one of the executive law;

(3) Third, to any applicant who is a graduate of the state-sponsored opportunity, program pursuant to section sixty-four hundred fifty-one sixty-four hundred fifty-two of this chapter.

In the event that there are more applicants who have the same priority than there are remaining scholarships, the commissioner shall distribute the remaining number of such scholarships by means of a lottery or other form of random selection.

b. The commissioner shall then forward approved applications to the president and shall notify unsuccessful applicants.

c. The president shall notify applicants of their award entitlement.

d. The president shall, in consultation with the commissioner, develop and secure from each successful applicant & written agreement

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practice medicine dentistry, as appropriate, in a designated shortage area. Within such time as the commissioner shall by regulation provide, a recipient of an award shall have practiced medicine or dentistry in an area designated as having a shortage of physicians or dentists, apo propriate, for that number of months calculated by multiplying by twelve the number of annual payments received by the recipient. In shall the total number of months of service required be less than twenty-four. 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:

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in which "A", is the amount the president is entitled to recover; "B" is the sum of all payments made to the recipient and the interest 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 a part 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 cancelled upon the death of the recipient. The commissioner shall make regulations to provide for the waiver or suspension of any financial obligation which would involve extreme hardship.

e. A recipient of an award shall report annually to the New York state higher education services corporation, on forms prescribed by it, as to the performance of the required services, commencing with the calendar year in which the recipient begins to practice medicine or dentistry in a shortage area and continuing until the recipient shall have completed, or 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 fine of up to one thousand dollars. The president shall have the discretion to waive the filing of report, excuse delay

filing or a failure to file a report, or waive or reduce any fine imposed for good cause shown.

11. Regents professional opportunity scholarships. a. Regents professional opportunity scholarships shall be awarded annually to students EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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who are beginning or engaged in an approved program leading to a degree
in a profession licensed by the regents or other field designated by the
regents and who are economically disadvantaged and/or members of an un-
derrepresented minority group. Such scholarships shall be classified and
allocated in accordance with regents rules. In selecting and certifying
scholarship recipients under this subdivision, priority shall be
corded to applicants in the following order:
(1) First, to апу applicant

is economically disadvantaged as defined by the regent's and a minority historically underrepresented

in the profession or field as determined by the regents after consultation with the council on professional career opportunity created by section nine hundred forty-one of the executive law;

(2) Second, to any applicant who is a minority underrepresented in the profession or field determined by the regents after consultation with the council on professional career opportunity created by section nine hundred_forty-one of the executive law;

(3) Third, to any applicant who is a graduate of the state-sponsored opportunity, program pursuant to section sixty-four hundred fifty-one sixty-four hundred fifty-two of this chapter.

In the event that there are more applicants who have the same priority than there are remaining scholarships, the commissioner shall distribute the remaining number of such scholarships by means of a lottery or other form of random selection.

b. The commissioner shall then forward approved applications to the president and shall notify unsuccessful applicants.

c. The president shall notify applicants of their award entitlement.

d. Within such time as the commissioner shall by regulation provide, a recipient of an award shall have resided and been employed in a profession or field designated by the regents in New York state for that number of months calculated by multiplying by twelve the number of annual awards received by the recipient. If a recipient fails to comply fully with such condition, the state shall be entitled to recover from such recipient an amount determined by the formula:

A = 2B (t-s)

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in which "A" is the amount the president is entitled to recover; "B" is the sum of all awards paid to the recipient and the interest

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 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.

Any obligation to comply with such provisions as outlined in this section shall be cancelled upon the death of the recipient. The commissioner shall make regulations to provide for the waiver or suspension of any financial obligation which would involve extreme hardship.

e. A recipient of an award shall report annually to the New York state higher education services corporation, on forms prescribed by it, as to the performance of the required services, until the recipient shall have completed, or 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.

၌ 11. Such law is amended by adding three new sections six hundred seventy-seven, six hundred seventy-eight and six hundred seventy-nine to read as follows:

§ 677. Regents physician loan forgiveness program. 1. Number and certification. Fifty regents physician loan forgiveness awards shall be awarded each year. Such awards shall be allocated as provided in article

8.

thirteen of this chapter to eligible physicians as certified to the president by the commissioner.

2. Calculation of award amounts. Each award shall consist of two consecutive annual loan forgiveness payments. Each of the annual payments shall be for an amount equal to the total of undergraduate and medical school student loan expense or ten thousand dollars whichever is less. The president shall be responsible for calculating the dollar amount of each award that eligibile candidates may receive from this program. For the purposes of this section, student loan expense shall mean the cumulative total of the annual student loans covering the cost of attendance at an undergraduate institution and/or medical school. Interest paid or due on student loans that an applicant has taken out for use in

paying for such undergraduate and/or medical education shall be considered eligible for reimbursement under this program. 3. Award disbursement.

Annual award disbursements shall be the responsibility of the president and shall occur prior to the beginning of each of the required terms of service as specified in the service contract. The board of trustees of the higher education services corporation shall adopt rules and regulations regarding criteria for determining successful completion of the service contract and any appeal process that may be required to implement this paragraph upon recommendation of the president in consultation with the commissioner.

b. The disbursement of the second annual award shall be dependent upon successful completion of the first year requirement of the service contract as defined by the president, as well as other criteria set forth in this section. § 678.

678. Regents health care professional opportunity scholarships. 1. Number and certification. Fifty regents health career professional opportunity scholarships shall be awarded each year. Such scholarships shall be allocated as provided in article thirteen of this chapter to eligible students as certified to the president by the commissioner.

2. Duration. Such scholarship shall entitle the recipient to an award for not more thatt four academic years while matriculated in an approved program, as defined by the commissioner pursuant to article thirteen of this chapter.

3. Amount. The president shall make academic year awards in amounts provided in this subdivision. The academic year award shall be up to ten thousand dollars provided however that if family, income of the applicant exceeds an amount established by the regents and approved by the director of the division of the budget for an economically disadvantaged applicant, the award shall be reduced by the amount of one dollar for each four dollars, or part thereof, of the excess, provided, however, that in no event shall the award be less than one thousand dollars, and no award shall exceed the actual costs of attendance. Costs of attendance shall include tuition, required fees, laboratory and other instruction related expenses, transportation, room and board.

§ 679? Regents professional opportunity scholarships. 1. Number and certification. Fifteen regents professional opportunity scholarships shall be awarded each year. Such scholarships shall be allocated as provided in article thirteen of this chapter to eligible students as certified to the president by the commissioner.

2. Duration. No recipient shall be eligible to receive an award pursuant to this section for more than four academic years unless enrolled in a program of study recognized by the regents as normally requiring more than four years to complete.

3. Amount. The president shall make academic year awards in amounts provided in this subdivision. The academic year award shall be ир to five thousand dollars provided however that if family income of the applicant exceeds an amount established by the regents and approved by the director of the division of the budget for an economically disadvantaged applicant, the award shall be reduced by the amount of dollar for each four

dollars, or part thereof, of the excess, provided, however, that in no event shall the award be less than one thousand dollars, and

award shall exceed the actual costs of attendance. Costs of atten

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* So in original. (Word misspelled.). † So in original. /"that" should be "than".) EXPLANATION-Matter in italics is new; matter in brackets [] is old law

to be omitted.

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