Section 97737 - Penalties for Non-Compliance by a Scholarship Recipient(a) When a scholarship recipient fails to maintain an acceptable level of academic standing (as established by the participating school or institution), is dismissed from school for disciplinary reasons, or voluntarily terminates the course of study or program for which the scholarship was awarded, then the recipient shall be liable to repay the amount that has been paid by the Office, plus interest. Interest shall be computed at the rate of 7 percent per year. The interest shall begin accruing from the date the Office determines the course of study ceased. Repayment shall be required in quarterly installments, in amounts calculated by the Office to permit total repayment in seven years.(b) If a scholarship recipient fails to begin or complete the service obligation, the Office shall be entitled to recover from the individual an amount determined by the following formula, plus interest: Click here to view image
in which "A" is the amount the Office is entitled to recover; "F" is the sum of the amounts paid under this chapter; "T" is the total number of months in the individual's period of obligated service; and "S" is the number of months of such period already served by the individual. Interest shall be charged on the outstanding principal at the rate of 10 percent per year. Interest shall begin to accrue from the date the service obligation was to begin, or when it prematurely ceased, as determined by the Office. Repayment shall be required in quarterly installments, in amounts calculated by the Office to permit total repayment in seven years.
(c) If a scholarship recipient fails to accept payment or instructs the participating school or institution not to accept payment of the scholarship provided by the Office, for any reason not listed in paragraph (a), then the recipient must, in addition to repaying the Office any amounts already provided, plus interest, pay to the Office the amount of $1,500.00 liquidated damages. The liquidated damages shall be due and owing within 30 days of the date on which the participant fails to accept payment of the scholarship award or instructs the school not to accept payment. Interest shall be computed at the rate of 10 percent per year. Repayment of any scholarship monies, and interest, shall be required in quarterly installments, in amounts determined by the Office to permit repayment in seven years.Cal. Code Regs. Tit. 22, § 97737
1. New section filed 5-24-90 as an emergency; operative 5-24-90 (Register 90, No. 27). Section remains in effect pursuant to Education Code section 69801 unless amended or repealed by the Office of Statewide Health Planning and Development.
2. Change without regulatory effect amending NOTE filed 7-3-2017 pursuant to section 100, title 1, California Code of Regulations (Register 2017, No. 27). Note: Authority cited: Section 128360, Health and Safety Code. Reference: Sections 128345 and 128350, Health and Safety Code.
1. New section filed 5-24-90 as an emergency; operative 5-24-90 (Register 90, No. 27). Section remains in effect pursuant to Education Code section 69801 unless amended or repealed by the Office of Statewide Health Planning and Development.
2. Change without regulatory effect amending Note filed 7-3-2017 pursuant to section 100, title 1, California Code of Regulations (Register 2017, No. 27).