A. Each area health education center located in this state may grant and administer a scholarship in an amount of not more than eight thousand dollars for each student for each school year to at least two students who are residents of the center’s geographic area and who are enrolled in a health professions program at an Arizona university. The scholarship shall be used to defray educational expenses including room and board.

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B. A scholarship shall be granted on the condition that the student contractually agree to practice in the center’s geographic area for two years or one year of service for each year of scholarship support, whichever is longer, after completing post-graduation training. If the recipient withdraws from school, the recipient shall repay all scholarship monies within one year of the withdrawal. If the student is dismissed, an appropriate mechanism shall be negotiated to arrange repayment of the remaining unforgiven balance with eight per cent interest.

C. For good cause a center may extend the time period for training prior to scholarship repayment.

D. The Arizona board of regents shall waive all tuition and fees for students granted a scholarship under this section if the legislature appropriates funds for this purpose.

E. For the purposes of this section "health professions program" means enrollment in a school of medicine, nursing, pharmacy or physical therapy.