[§309H-3]  Hawaii rural health care provider loan repayment program.  (a)  There is created within the Hawaii health corps program, the Hawaii rural health care provider loan repayment program to be administered by the University of Hawaii John A. Burns school of medicine and the University of Hawaii at Manoa school of nursing and dental hygiene in partnership with a lending financial institution whose operations are principally conducted in Hawaii.  The Hawaii rural health care provider loan repayment program shall provide loan repayments to eligible physicians, physician assistants, and nurse practitioners who make the service commitment under subsection (b).  The University of Hawaii John A. Burns school of medicine and the University of Hawaii at Manoa school of nursing and dental hygiene shall make loan repayments directly to the financial institution under subsection (b) to offset the loan repayment for which the Hawaii rural health care provider loan repayment program recipient would otherwise be liable.  Loan repayments shall commence upon the commencement of loan repayments by the Hawaii rural health care provider loan repayment program recipient to the lending financial institution.  The University of Hawaii John A. Burns school of medicine and the University of Hawaii at Manoa school of nursing and dental hygiene shall prioritize loan repayments in accordance with the greatest specialty shortages for the particular county.

     (b)  The Hawaii rural health care provider loan repayment program shall provide loan repayments on behalf of licensed physicians, physician assistants, and nurse practitioners who agree to serve for five consecutive years as a physician, physician assistant, or nurse practitioner in a county having a shortage of physicians, physician assistants, and nurse practitioners, with priority given to a rural area of that particular county; provided that eligible physicians, physician assistants, or nurse practitioners, as applicable, shall have graduated from a duly accredited medical school or nursing school within the United States; provided further that preference shall be given to graduates of the University of Hawaii John A. Burns school of medicine or the University of Hawaii at Manoa school of nursing and dental hygiene, as applicable.

     (c)  Eligible participants in the Hawaii rural health care provider loan [repayment] program shall be determined by the University of Hawaii John A. Burns school of medicine and the University of Hawaii at Manoa school of nursing and dental hygiene on a competitive basis and in accordance with subsection (b).

     (d)  If a Hawaii rural health care provider loan repayment program participant fails to satisfy the recipient's service commitment under subsection (b), the Hawaii rural health care provider loan repayment program participant shall be liable for the repayment of the outstanding balance of the loan to the lending financial institution under subsection (b).  In addition, the University of Hawaii John A. Burns school of medicine and the University of Hawaii at Manoa school of nursing and dental hygiene may seek reimbursement for any loan repayment made by the University of Hawaii John A. Burns school of medicine or the University of Hawaii at Manoa school of nursing and dental hygiene on behalf of the Hawaii rural health care provider loan repayment program participant.

     (e)  In accordance with chapter 103D, the University of Hawaii John A. Burns school of medicine and the University of Hawaii at Manoa school of nursing and dental hygiene may enter into written contracts with collection agencies to collect delinquent reimbursements of loan repayments.  All payments collected, exclusive of a collection agency's commissions, shall revert and be credited to the Hawaii health corps fund.  A collection agency that enters into a written contract with the University of Hawaii John A. Burns school of medicine or the University of Hawaii at Manoa school of nursing and dental hygiene to collect delinquent reimbursements of loan repayments pursuant to this section may collect a commission from the debtor in accordance with the terms of, and up to the amounts authorized in, the written contract. [L 2012, c 187, pt of §2]