SECTION 30.146. Breach of Contract

(a) Breach by sponsor.

(1) A sponsor shall be in breach of contract if the sponsor:

(A) fails to provide 50% of the student's costs of attendance as determined by the academic institution for the duration of the student's agreed upon health care academic program;

(B) fails to provide a full-time employment or practice opportunity for the student as a health care professional for which sponsored upon the student's certification or licensure; or

(C) fails to meet any of the conditions of the contract or this division.

(2) If the sponsor is found to be in breach of contract, the department may require any or all of the following:

(A) forfeiture of all claim to funds forwarded to the student;

(B) cancellation of the student's obligated period of service; and

(C) forfeiture of an opportunity to sponsor a student in the future.

(3) In the event of a sponsor breach of contract, the student may obtain alternative sponsorship, employment or practice opportunity in another rural community where loan forgiveness may be granted. In such an event, the original sponsor may not seek reimbursement from the student, another rural community sponsor, or the department.

(b) Breach by student.

(1) The student shall be in breach of contract if the student:

(A) fails to maintain satisfactory academic progress according to the academic institution the student attends except that one academic term of grace will may be extended to the student if the student is placed on scholastic probation;

(B) fails to attain satisfactory academic progress following an academic term of scholastic probation;

(C) voluntarily withdraws from or terminates enrollment in the agreed upon academic program or institution before completion of the agreed upon academic program;

(D) fails to complete the academic program according to the degree plan;

(E) ceases to be enrolled full-time in an academic program which requires full-time enrollment;

(F) fails to begin or complete the required practicum, internship or residency;

(G) fails to begin the obligated period of service within 60 days of attaining certification or licensure, or within 60 days of completing a residency program in the case of medical students;

(H) fails to complete the obligated period of service; or

(I) fails to meet any of the conditions of the contract or this division.

(2) Repeated reduction of credit hours during the course of the academic program may constitute breach of contract and the student may be removed from the ORSRP.

(3) The selection committee may unilaterally recommend removal of a student from the program if the student is not maintaining satisfactory academic progress to attain the prescribed degree.

(4) A student must sit for the first certification or licensure examination for which eligible upon completion of the academic program. If certification or licensure is delayed because of failure to pass the examination, the student shall retake it the next time the student is eligible to do so. If the student fails to become certified or licensed after the second attempt, the student shall be in breach of contract.

Source Note: The provisions of this §30.146 adopted to be effective January 1, 2015, 39 TexReg 10395