California Code, Health and Safety Code - HSC § 128235

(a) Develop application and contract criteria based on health care workforce needs and priorities.

(b) Determine whether primary care and family medicine, postgraduate primary care physician's assistant training proposals, primary care physician's assistant training program proposals, postgraduate primary care nurse practitioner training program proposals, primary care nurse practitioner training program proposals, registered nurse training program proposals, and proposals from programs that train midwives submitted to the department for participation in the state medical contract program established by this article and Article 2 (commencing with Section 128250) meet established standards.

(c) Select and contract on behalf of the state with accredited medical schools, teaching health centers, hospitals and other health care delivery systems, programs that train postgraduate primary care physician's assistants, programs that train primary care physician's assistants, programs that train postgraduate primary care nurse practitioners, programs that train primary care nurse practitioners, and programs that train midwives for the purpose of training undergraduate medical students and residents in the specialties of internal medicine, obstetrics and gynecology, pediatrics, and family medicine. Contracts shall be awarded to those institutions that best demonstrate the ability to provide quality education and training and to retain students and residents in specific areas of California where there is a recognized unmet priority need for primary care family physicians. Contracts shall be in conformity with the contract criteria developed by the Department of Health Care Access and Information.

(d) Select and contract on behalf of the state with programs that train registered nurses. Contracts shall be awarded to those institutions that best demonstrate the ability to provide quality education and training and to retain students and residents in specific areas of California where there is a recognized unmet priority need for registered nurses. Contracts shall be in conformity with the contract criteria developed by the Department of Health Care Access and Information.

(e) Terminate, upon 30 days' written notice, the contract of any institution whose program does not meet the standards established or that otherwise does not maintain proper compliance with this part, except as otherwise provided in contracts entered into by the director pursuant to this article and Article 2 (commencing with Section 128250).