1. A participant must repay the stipend received by the participant unless the participant: (a) Graduates with a degree, certificate or similar credential in the area for which the participant received the stipend. (b) Except as otherwise provided in NRS 397.0685 , practices, in Nevada, the profession for which the degree, certificate or similar credential was awarded for 1 year for each year the participant receives a stipend. (c) Except as otherwise provided in NRS 397.069 : (1) Commences the participants practice obligation within 1 year after the completion or termination of the education, internship or residency for which the participant received the stipend. (2) Completes the participants practice obligation within 5 years after the completion or termination of the education, internship or residency for which the participant received the stipend. (d) Reports the participants practice status annually to the Nevada Office on forms provided by the Nevada Office. (e) Maintains the participants permanent residence in the State of Nevada throughout the period of the participants practice obligation. For purposes of this paragraph: (1) Merely owning a residence in this State does not satisfy the requirement that a participant must maintain a permanent residence in this State. (2) A participant who leaves the State for a limited period of time without forming the intent of changing the participants permanent residence is not considered to have moved the participants residence. (f) If the participant received the stipend to participate in a program administered by the Nevada Office other than a program for veterinary medicine, completes the practice required by paragraph (b) of subsection 1 in a health professional shortage area or an area with a medically underserved population in this State. 2. Except as otherwise provided in subsection 3, if a participant does not meet the requirements prescribed in subsection 1, the three Nevada State Commissioners, acting jointly: (a) Shall convert the stipend into a loan to be repaid in accordance with NRS 397.064 from the first day of the term for which the participant received the stipend. (b) Shall assess a default charge against the participant if the participant received the stipend to participate in a program administered by the Nevada Office. (c) May assess a default charge against the participant if the participant received the stipend to participate in a program administered by the office of the Western Interstate Commission for Higher Education established pursuant to Article 7 of the Compact. 3. If the period for the required practice is only partially completed, the three Nevada State Commissioners, acting jointly, may decrease the amount owed under the loan for the time the participant practiced his or her profession as required. 4. As used in this section: (a) Area with a medically underserved population means an area: (1) Designated as such by the United States Secretary of Health and Human Services pursuant to 42 U.S.C. 254c; and (2) Which meets any additional requirements prescribed by the Nevada Department of Human Services. (b) Health professional shortage area means a geographic area: (1) Designated as such by the United States Secretary of Health and Human Services pursuant to 42 U.S.C. 254e; and (2) Which meets any additional requirements prescribed by the Nevada Department of Human Services.
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