A. The behavioral health care provider loan repayment program is established in the department to pay off portions of educational loans taken out by behavioral health care providers and nurses, including behavioral health technicians, behavioral health nurse practitioners, psychiatric nurse practitioners and licensed practical nurses, physicians, psychiatrists, and psychologists who serve in behavioral health facilities, including the Arizona state hospital, behavioral health residential facilities and secure behavioral health residential facilities.

B. The department shall prescribe application and eligibility requirements. To be eligible to participate in the behavioral health care provider loan repayment program, an applicant shall meet at least the following requirements:

1. Have completed the final year of a course of study or program approved by recognized accrediting agencies for higher education in a health profession licensed pursuant to title 32 or hold an active license in a health profession licensed pursuant to title 32.

2. Demonstrate current employment providing direct patient care with a public or nonprofit entity located and providing services in a behavioral health hospital, a behavioral health residential facility or a secure behavioral health residential facility in this state.

3. Demonstrate that the current employer is contracted with the Arizona health care cost containment system to provide services.

4. Not be participating in any other loan repayment program established by this article.

C. In addition to the requirements of subsection B of this section, an applicant who is a physician shall have completed a professional residency or certification program in behavioral health care.

D. A behavioral health care provider or nurse who participates in the behavioral health care provider loan repayment program shall initially contract with the department to provide services pursuant to this section for at least two years.

E. In making recommendations for the behavioral health care provider loan repayment program, the department shall give priority to applicants who intend to practice in the Arizona state hospital, a behavioral health residential facility or a secure behavioral health residential facility in this state.

F. All loan repayment contract obligations are subject to the availability of monies and legislative appropriation. 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. This section does not prevent the department from encumbering an amount that is sufficient to ensure payment of each behavioral health care provider loan for the services rendered during a contract period.

H. The department shall issue program monies to pay behavioral health care provider loans that are limited to the amount of principal, interest and related expenses of educational loans, not to exceed the behavioral health care provider’s or nurse’s total student loan indebtedness, according to the following schedule:

1. For the first two years of service, a maximum of $50,000.

2. For subsequent years, a maximum of $25,000.

I. A participant in the behavioral health care provider loan repayment 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 equivalent to the amount that would be owed for default as determined and authorized by the department. The department may waive the liquidated damages provisions of this subsection if it determines that death or permanent physical disability accounted for the failure of the participant to fulfill the contract. The department may prescribe additional conditions for default, cancellation, waiver or suspension.

J. Notwithstanding section 41-192, the department may retain legal counsel and commence actions that are 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 department may use monies to develop programs such as resident-to-service loan repayment and employer recruitment assistance to increase participation in the behavioral health care provider loan repayment program. The department may use private donations, grants and federal monies to implement, support, promote or maintain the program.