A. If a program participant does not comply with the terms of the participation agreement, the department shall assess a penalty of up to three times the amount of award disbursed, plus eighteen percent interest, unless the commission finds acceptable extenuating circumstances for why the participant could not serve and comply with the terms of the provisions. If the commission does not find acceptable extenuating circumstances for the participant's failure to comply, the commission shall require immediate repayment plus the amount of any penalty assessed pursuant to this section.

1. (1) The full penalty shall apply unless the circumstances reflect that the penalty should be reduced on a prorata basis reasonably reached based upon the degree of control which the recipient has over the decision not to serve. The recipient shall have the burden of proof.
2. (2) If the commission does not find acceptable extenuating circumstances for the recipient's failure to carry out their declared intent to serve in a designated shortage area in the state, the commission shall require immediate repayment of the award granted to the recipient plus the amount of any penalty assessed pursuant to this subsection.

B. Participants who have signed a participation agreement for three years and fail to complete a quarter of service will not receive a prorated award amount.

[7/15/1998; 5.7.3.12 NMAC - Rn & A, 5 NMAC 7.3.12, 7/31/2005; A, 8/15/2023]