§ 254o. Breach of scholarship contract or loan repayment contract

Footnotes

1. 1 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1944

   Health Professions Educational Assistance Act of 1976

   Pub. L. 94–484 title IV § 408(b)(1) · 90 Stat. 2243

   Enacted · 42 U.S.C. § 254o

   July 1, 1944, ch. 373, title III, § 338E, formerly title VII, § 754, as added Pub. L. 94–484, title IV, § 408(b)(1), Oct. 12, 1976, 90 Stat. 2286

   Source evidence

   Code source credit
   July 1, 1944, ch. 373, title III, § 338E, formerly title VII, § 754, as added Pub. L. 94–484, title IV, § 408(b)(1), Oct. 12, 1976, 90 Stat. 2286

   Enacted provision · exact public law section
   (1) Effective October 1, 1977, section 225 is repealed and part C Repeal. 42 USC 234. of title VII (as amended by subsection (a)) is amended by adding after subpart III the following new subpart: “Subpart IV— National Health Service Corps Scholarships “Sec. 751. “national health service corps scholarship program (a) The Secretary shall establish the National Health Establishment. 42 USC 294t. Service Corps Scholarship Program (hereinafter in this subpart referred to as the ‘Scholarship Program’) to assure an adequate supply of trained physicians, dentists, and nurses for the National Health Service Corps (hereinafter in this subpart referred to as the ‘Corps’) and, if needed by the Corps, podiatrists, optometrists, pharmacists, graduates of schools of veterinary medicine, graduates of schools of public health, graduates of programs in health administration, graduates of programs for the training of physician assistants, expanded function dental auxiliaries, and nurse practitioners (as defined in section 822), and other health professionals. “(b) To be eligible to participate in the Scholarship Program, an Eligibility. individual must— “(1) be accepted for enrollment, or be enrolled, as a full-time student (A) in an accredited (as determined by the Secretary) educational institution in a State and (B) in a course of study or program, offered by such institution and approved by the Secretary, leading to a degree in medicine, osteopathy, dentistry, or other health profession; “(2) be eligible for, or hold, an appointment as a commissioned officer in the Regular or Reserve Corps of the Service or be eligible for selection for civilian service in the Corps; “(3) submit an application to participate in the Scholarship Program; and “(4) sign and submit to the Secretary, at the time of submittal of such application, a written contract (described in subsection (f)) to accept payment of a scholarship and to serve (in accordance with this subpart) for the applicable period of obligated service in a health manpower shortage area. “(c) In disseminating application forms and contract forms to individuals desiring to participate in the Scholarship Program, the Secretary shall include with such forms— “(1) a fair summary of the rights and liabilities of an individual whose application is approved (and whose contract is accepted) by the Secretary, including in the summary a clear explanation of the damages to which the United States is entitled under section 754 in the case of the individual’s breach of the contract; and “(2) such other information as may he necessary for the individual to understand the individual’s prospective participation in the Scholarship Program and service in the Corps. The application form, contract form, and all other information furnished by the Secretary under this subpart shall be written in a manner calculated to be understood by the average individual applying to Review and evaluation. participate in the Scholarship Program. The Secretary shall make such application forms, contract forms, and other information available to individuals desiring to participate in the Scholarship Program on a date sufficiently early to insure that such individuals have adequate time to carefully review and evaluate such forms and information. “(d) In determining which applications under the Scholarship Program to approve (and which contracts to accept), the Secretary shall give priority— “(1) first, to applications made (and contracts submitted) by individuals who have previously received scholarships under the Scholarship Program or under section 758; and “(2) second, to applications made (and contracts submitted)— “(A) in the school year ending in the fiscal year beginning October 1, 1977, by individuals who are entering their first or second year of study in a course of study or program described in subsection (b)(1)(B) in such school year; and “(B) in each school year thereafter, by individuals who are entering their first year of study in a course of study or program described in subsection (b)(1)(B) in such school year. “(e) (1) An individual becomes a participant in the Scholarship Program only upon the Secretary’s approval of the individual’s application submitted under subsection (b)(3) and the Secretary’s acceptance of the contract submitted by the individual under subsection (b)(4). “(2) The Secretary shall provide written notice to an individual promptly upon the Secretary’s approving, under paragraph (1), of the individual’s participation in the Scholarship Program. “(f) The written contract (referred to in this subpart) between the Secretary and an individual shall contain— “(1) an agreement that— “(A) subject to paragraph (2), the Secretary agrees (i) to provide the individual with a scholarship (described in subsection (g)) in each such school year or years for a period of years (not to exceed four school years) determined by the individual, during which period the individual is pursuing a course of study described in subsection (b)(1)(B), and (li) to accept (subject to the availability of appropriated funds Ante, p. 2268. for carrying out subpart II of part C of title III) the individual into the Corps (or for equivalent service as otherwise provided in this subpart); and “(B) subject to paragraph (2), the individual agrees— “(i) to accept provision of such a scholarship to the individual; “(ii) to maintain enrollment in a course of study described in subsection (b)(1)(B) until the individual completes the course of study; “(iii) while enrolled in such course of study, to maintain an acceptable level of academic standing (as deter-mined under regulations of the Secretary by the educational institution offering such course of study); and “(iv) to serve for a time period (hereinafter in the subpart referred to as the ‘period of obligated service’) equal to— “(I) one year for each school year for which the individual was provided a scholarship under the Scholarship Program, or “(II) two years, whichever is greater, in a health manpower shortage area (designated under section 332) to which he is assigned Ante, p. 2270. by the Secretary as a member of the Corps, or as otherwise provided in this subpart; “(2) a provision that any financial obligation of the United States arising out of a contract entered into under this subpart and any obligation of the individual which is conditioned thereon, is contingent upon funds being appropriated for scholarships under this subpart and to carry out the purposes of subpart II of part C of title III; Ante, p. 2268. “(3) a statement of the damages to which the United States is entitled, under section 754, for the individual’s breach of the contract; and “(4) such other statements of the rights and liabilities of the Secretary and of the individual, not inconsistent with the provisions of this subpart. “(g) (1) A scholarship provided to a student for a school year under a written contract under the Scholarship Program or under section 758 (relating to scholarships for first-year students of exceptional financial need), shall consist of— “(A) payment to, or (in accordance with paragraph (2)) on behalf of the student of the amount (except as provided in section 711) of— “(i) the tuition of the student in such school year; and “(ii) all other reasonable educational expenses, including fees, books, and laboratory expenses, incurred by the student in such school year; and “(B) payment to the student of a stipend of $400 per month (adjusted in accordance with paragraph (3)) for each of the 12 consecutive months beginning with the first month of such school year. “(2) The Secretary may contract with an educational institution, Contract. in which a participant in the Scholarship Program is enrolled, for the payment to the educational institution of the amounts of tuition and other reasonable educational expenses described in paragraph (1)(A). Payment to such an educational institution may be made without regard to section 3648 of the Revised Statutes (31 U.S.C. 529). “(3) The amount of the monthly stipend, specified in paragraph (1)(B) and as previously adjusted (if at all) in accordance with this paragraph, shall be increased by the Secretary for each school year ending in a fiscal year beginning after September 30, 1978, by an amount (rounded to the next highest multiple of $1) equal to the amount of such stipend multiplied by the overall percentage (as set forth in the report transmitted to the Congress under section 5303 of title 5, United States Code) of the adjustment (if such adjustment is an increase) in the rates of pay under the General Schedule made effective in the fiscal year in which such school year ends. “(h) Notwithstanding any other provision of law, individuals who have entered into written contracts with the Secretary under this section, while undergoing academic training, shall not be counted against any employment ceiling affecting the Department. “(i) The Secretary shall report to Congress on December 1 of each year— “(1) the number, and type of health profession training, of students receiving scholarships under the Scholarship Program; “(2) the educational institutions at which such students are receiving their training; “(3) the number of applications filed under this section in the school year beginning in such year and in prior school years; and “(4) the amount of tuition paid in the aggregate and at each educational institution for the school year beginning in such year and for prior school years. “(j) The administrative unit which administers section 770 shall— “(1) participate in the development of regulations, funding priorities, and application forms, and “(2) be consulted by, and may make recommendations to, the Secretary in the review of applications for scholarships and grants, with respect to the Scholarship Program. “Sec. 752. “obligated service (a) Except as provided in section 753, each individual who has entered into a written contract with the Secretary under section 751 shall provide service in the full-time clinical practice of such individuals profession as a member of the Corps for the period of obligated service provided in such contract. “(b) (1) The Secretary shall notify each individual required to provide service under the Scholarship Program, not later than 60 days before the date described in paragraph (5), of the opportunity of such individual to serve in the full-time clinical practice of his profession either as a commissioned officer in the Regular or Reserve Corps of the Service or as a civilian member of the Corps. The Secretary shall include in such notice sufficient information regarding the advantages and disadvantages to each alternative to enable an individual to make a decision on an informed basis. “(2) To be eligible to provide obligated service as a commissioned officer in the Service, an individual shall notify the. Secretary, not later than 30 days before the date described in paragraph (5), of the individual’s desire to provide such service as such an officer. “(3) If an individual who has notified the Secretary under paragraph (2) qualifies for an appointment as such an officer, the Secretary shall, as soon as possible after the date described in paragraph (5), appoint the individual as a commissioned officer of the Regular or Reserve Corps and of the Service and shall designate the individual as a member of the Corps. If an individual who has notified the Secretary under paragraph (2) does not so qualify, the Secretary shall, as soon as possible after the date described in paragraph (5), appoint such individual in accordance with paragraph (4). “(4) Except as provided in paragraph (3) and in section 753, the Secretary shall appoint each individual, as soon as possible after the date described in paragraph (5), to serve in the full-time clinical practice of his profession as a civilian member of the Corps. “(5) (A) With respect to an individual receiving a degree from a school of medicine, osteopathy, or dentistry, the date referred to in paragraphs (1) through (4) shall be the date upon which the individual completes the training required for such degree, except that the Secretary shall, at the request of such individual, defer such date until the end of the period of time (not to exceed three years) required for the individual to complete an internship, residency, or other advanced clinical training. No such period of internship, residency, or other advanced clinical training shall be counted toward satisfying a period of obligated service under this subpart. “(B) With respect to an individual receiving a degree from an institution other than a school of medicine, osteopathy, or dentistry, the date referred to in paragraphs (1) through (4) shall be the date upon which the individual completes his academic, training leading to such degree. “(c) An individual shall be considered to have begun serving a period of obligated service— “(1) on the date such individual is appointed as an officer in a Regular or Reserve Corps of the Service or as a member of the Corps, or “(2) in the case of an individual who has entered into an agreement with the Secretary under section 753, on the date specified Infra. in such agreement, whichever is earlier. “(d) The Secretary shall assign individuals performing obligated service in accordance with a written contract under the Scholarship Program to health manpower shortage areas in accordance with subpart II of part C of title II. If the Secretary determines that there Ante, p. 2268. is no need in a health manpower shortage area (designated under section 332) for a member of the profession in which an individual Ante, p. 2270. is obligated to provide service under a written contract, the Secretary may detail such individual to serve his period of obligated service as a full-time member of such profession in such unit of the Department as the Secretary may determine. “(e) Notwithstanding any other provision of this title, if the Secretary determines that an individual who is or has been a participant in the Scholarship Program demonstrates exceptional promise for medical research, the Secretary may permit such individual to perform his service obligation under the National Research Service Award program established under section 472. 42 USC 289l–1. “Sec. 753. “private practice (a) The Secretary shall release an individual from all or Written agreement. 42 USC 294v. part of his service obligation under section 752 (a) if the individual applies for such a release under this section and enters into a written agreement with the Secretary under which the individual agrees to engage for a period equal to the remaining period of Ms service obligation in the full-time private clinical practice (including service as a salaried employee in an entity directly providing health services) of his health profession— “(1) in the case of an individual who is performing obligated service as a member of the Corps in a health manpower shortage area on the date of his application for such a release, in the health manpower shortage area in which such individual is serving on such date; or “(2) in the case of any other individual, in a health manpower Ante, p. 2270. shortage area (designated under section 332) which (A) has a priority for the assignment of Corps members under section Ante, p. 2272. 333(c), and (B) has a sufficient financial base to sustain such private practice and to provide the individual with income of not less than the income of members of the Corps. In the case of an individual described in paragraph (1), the Secretary shall release the individual from his service obligation under this subsection only if the Secretary determines that the area in which the individual is serving meets the requirement of clause (B) of paragraph (2). “(b) The written agreement described in subsection (a) shall— “(1) provide that during the period of private practice by an individual pursuant to the agreement— “(A) any person who receives health services provided by the individual in connection with such practice will be charged for such services at the usual and customary rate prevailing in the area in which such services are provided, except that if such person is unable to pay such charge, such person shall be charged at a reduced rate or not charged any fee; and “(B) the individual in providing health services in connection with such practice shall not discriminate against, any person on the basis of such person’s ability to pay for such services or because payment for the health services provided to such person will be made under the insurance program established under part A or B of title XVIII of the Social 42 USC 1395c, 1395j. 42 USC 1396. Security Act or under a State plan for medical assistance approved under title XIX of such Act; and “(2) contain such additional provisions as the Secretary may require to carry out the purposes of this section. Regulation. For purposes of paragraph (1)(A), the Secretary shall by regulation prescribe the method for determining a person’s ability to pay a charge for health services and the method of determining the amount (if any) to be charged such person based on such ability. “Sec. 754. “breach of scholarship contract (a) An individual (other than an individual described in subsection (b)) who has entered into a written contract with the Secretary under section 751 and who fails to accept payment, or instructs the educational institution in which he is enrolled not to accept payment, in whole or in part, of a scholarship under such contract, shall, in addition to any service or other obligation or liability under the contract, be liable to the United States for the amount of $1,500 as liquidated damages. “(b) An individual who has entered into a written contract with the Secretary under section 751 and who— “(1) fails to maintain an acceptable level of academic standing in the educational institution in which he is enrolled (such level determined by the educational institution under regulations of the Secretary), “(2) is dismissed from such educational institution for disciplinary reasons, or “(3) voluntarily terminates the training in such an educational institution for which he is provided a scholarship under such contract, before the completion of such training, in lieu of any service obligation arising under such contract, shall be liable to the United States for the amount which has been paid to him, or on Ids behalf, under the contract. “(c) If an individual breaches his written contract by failing (for any reason) either to begin such individual’s service obligation in accordance with section 752 or 753 or to complete such service obligation, the United States shall be entitled to recover from the individual an amount determined in accordance with the formula A=3ϕ ( t—s t ) in which ‘A’ is the amount the United States is entitled to recover. ‘ϕ’ is the sum of the amount paid under this subpart to or on behalf of the individual and the interest on such amount which would be payable if at the time it was paid it was a loan bearing interest at the maximum legal prevailing rate, as determined by the Treasurer of the United States; ‘t’ is the total number of months in the individual’s period of obligated service; and ‘s’ is the number of months of such period served by him in accordance with section 752 or a written agreement under section 753. Any amount of damages which the United States is entitled to recover under this subsection shall, within the one year period beginning on the date of the breach of the written contract, be paid to the United States. “(d) (1) Any obligation of an individual under the Scholarship Program (or a contract thereunder) for service or payment of damages shall be canceled upon the death of the individual. “(2) The Secretary shall by regulation provide for the waiver or suspension of any obligation of service or payment by an individual under the Scholarship Program (or a contract thereunder) whenever compliance by the individual is impossible or would involve extreme hardship to the individual and it enforcement of such obligation with respect to any individual would be unconscionable. “(3) Any obligation of an individual under the Scholarship Program (or a contract thereunder) for payment of damages may he released by a discharge in bankruptcy under title 11 of the United States Code only if such discharge is granted after the expiration of 11 USC 1 et seq. the five-year period beginning on the first date that payment of such damages is required. “Sec. 755. “special chants for former corps members to enter private practice (a) The Secretary may make one grant to an individual (other than an individual 42 USC 294x. who has entered into an agreement under section 753)— “(1) who has completed his period of obligated service in the Corps, and “(2) who has agreed in writing— Agreement. “(A) to engage in the private full-time clinical practice of his profession in a health manpower shortage area (designated under section 332 and described in paragraphs (1) Ante, p. 2270. and (2) of section 753(a)) for a period (beginning not later than one year after the date he completed his period of obligated service in the Corps) of not less than one year; “(B) to conduct such practice in accordance with the provisions of section 753(b)(1); and “(C) to such additional conditions as the Secretary may require to carry out the purposes of this section; to assist such individual in meeting the costs of beginning the practice of such individual’s profession in accordance with such agreement, including the costs of acquiring equipment and renovating facilities for use in providing health services, and of hiring nurses and other personnel to assist in providing health services. Such grant may not be used for the purchase or construction of any building. “(b) The amount of the grant under subsection (a) to an individual shall be— “(1) $12,500, if the individual agrees to practice his profession in accordance with the agreement for a period of at least one year, but less than two years; or “(2) $25,000 if the individual agrees to practice his profession in accordance with the agreement for a period of at least two years. “(c) The Secretary may not make a grant under this section unless an application therefor hag been submitted to, and approved by, the Secretary. “(d) If the Secretary determines that an individual hag breached a written agreement entered into under subsection (a), he shall, as soon as practicable after making such determination, notify the individual of such determination. If within 120 days after the date of giving such notice, such individual is not practicing his profession in accordance with the agreement under such subsection and has not provided assurances satisfactory to the Secretary that he will not knowingly violate such agreement again, the United States shall be entitled to recover from such individual an amount determined under section 754(c), except that in applying the formula contained in such section, ‘ϕ’ shall be the sum of the amount of the grant made under subsection (a) to such individual and the interest on such amount which would be payable if at the time it was paid it was a loan bearing interest at the maximum legal prevailing rate, ‘s’ shall be the number of months that such individual agreed to practice his profession under such agreement, and ‘s’ shall be the number of months that such individual practices his profession in accordance with such agreement. “Sec. 756. “authorization of appropriations (a) There are authorized to be appropriated for scholarships under this subpart $75,000,000 for the fiscal year ending September 30, 1978, $140,000,000 for the fiscal year ending September 30, 1979, and $200,000,000 for the fiscal year ending September 30, 1980. For the fiscal year ending September 30, 1981, and for each of the two succeeding fiscal years, there are authorized to be appropriated such sums as may be necessary to continue to make scholarship awards to students who have entered into written contracts under the Scholarship Program before October 1, 1980. “(b) Of the sums appropriated under this section (1) 90 percent shall be obligated for scholarships for medical, osteopathic, and dental students, and (2) 10 percent of such 90 percent shall be obligated for scholarships for dental students.”.

2. 1977

   Health Services Extension Act of 1977

   Pub. L. 95–83 title III § 307(g) · 91 Stat. 383

   Substituted · 42 U.S.C. § 254o(c)

   Pub. L. 95–83 substituted “ ‘ϕ’ is the sum of the amounts paid under this subpart to or on behalf of the individual and the interest on such amounts which would be payable if at the time the amounts were paid they were loans” for “ ‘ϕ’ is the sum of the amount paid under this subpart to or on behalf of the individual and the interest on such amount which would be payable if at the time it was paid it was a loan”

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 95–83 substituted “ ‘ϕ’ is the sum of the amounts paid under this subpart to or on behalf of the individual and the interest on such amounts which would be payable if at the time the amounts were paid they were loans” for “ ‘ϕ’ is the sum of the amount paid under this subpart to or on behalf of the individual and the interest on such amount which would be payable if at the time it was paid it was a loan”.

   Enacted provision · exact public law section
   (g) The first sentence of section 754(c) of such Act (relating to breach of scholarship contract) is amended by striking out “is the sum of the amount” and all that follows down through “was a loan” and inserting in lieu thereof “is the sum of the amounts paid under this subpart to or on behalf of the individual and the interest on such amounts which would be payable if at the time the amounts were paid they were loans”.

3. 1981

   Pub. L. 97–35 § 2709(e)(1) · 95 Stat. 357

   1. Redesignated · 42 U.S.C. § 254o(a)

      Pub. L. 97–35, § 2709(e)(1), (2), redesignated subsec. (b) as (a) and, as so redesignated, in introductory text substituted “254l” for “294t”

   2. Struck · 42 U.S.C. § 254o(a)

      Pub. L. 97–35, § 2709(e)(1), (2), added par. (4). Former subsec. (a), which related to liability of individual upon failure to accept payment, was struck out

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 97–35, § 2709(e)(1), (2), redesignated subsec. (b) as (a) and, as so redesignated, in introductory text substituted “254l” for “294t” and added par. (4). Former subsec. (a), which related to liability of individual upon failure to accept payment, was struck out.

   Enacted provision · exact public law section
   (1) Section 338D las redesignated by subsection (a) of this section) 42 USC 254o. is amended by striking out subsection (a) and redesignating subsections (b), (c), and (d) as subsections (a), (b), and (c), respectively.

4. 1981

   Pub. L. 97–35 § 2709(e)(1) · 95 Stat. 357

   1. Redesignated · 42 U.S.C. § 254o(b)

      Pub. L. 97–35, § 2709(e)(1), (3), redesignated subsec. (c) as (b) and, as so redesignated

   2. Amended · 42 U.S.C. § 254o(b)

      Pub. L. 97–35, § 2709(e)(1), (3), designated existing provisions as par. (1) and made numerous changes to reflect renumbering of subpart sections

   3. Redesignated · 42 U.S.C. § 254o(b)

      Pub. L. 97–35, § 2709(e)(1), (3), added par. (2). Former subsec. (b) redesignated (a)

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 97–35, § 2709(e)(1), (3), redesignated subsec. (c) as (b) and, as so redesignated, designated existing provisions as par. (1) and made numerous changes to reflect renumbering of subpart sections, and added par. (2). Former subsec. (b) redesignated (a).

   Enacted provision · exact public law section
   (1) Section 338D las redesignated by subsection (a) of this section) 42 USC 254o. is amended by striking out subsection (a) and redesignating subsections (b), (c), and (d) as subsections (a), (b), and (c), respectively.

5. 1981

   Pub. L. 97–35 § 2709(e)(1) · 95 Stat. 357

   Redesignated · 42 U.S.C. § 254o(c); 42 U.S.C. § 254o(d)

   Pub. L. 97–35, § 2709(e)(1), (4)(A), redesignated subsec. (d) as (c) and, as so redesignated, in par. (2) inserted reference to partial or total waiver. Former subsec. (c) redesignated (b)

   Source evidence

   Code amendment note
   Subsecs. (c), (d). Pub. L. 97–35, § 2709(e)(1), (4)(A), redesignated subsec. (d) as (c) and, as so redesignated, in par. (2) inserted reference to partial or total waiver. Former subsec. (c) redesignated (b).

   Enacted provision · exact public law section
   (1) Section 338D las redesignated by subsection (a) of this section) 42 USC 254o. is amended by striking out subsection (a) and redesignating subsections (b), (c), and (d) as subsections (a), (b), and (c), respectively.

6. 1983

   Pub. L. 97–414 § 8(g)(2) · 96 Stat. 2049

   Substituted · 42 U.S.C. § 254o(b)(1)

   Pub. L. 97–414 substituted “section 254p(d)” for “section 254q(b)”

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 97–414 substituted “section 254p(d)” for “section 254q(b)”.

   Enacted provision · exact public law section
   (2) Section 338D(b) of such Act (42 U.S.C. 294w(b)) is amended by 42 USC 254o. striking out “section 338F(b)” and inserting in lieu thereof “section 338E(d)”.

7. 1987

   Pub. L. 100–177 § 202(e)(6) · 101 Stat. 986

   Inserted · 42 U.S.C. § 254o

   Pub. L. 100–177, § 202(e)(6), inserted “or loan repayment contract” in section catchline

   Source evidence

   Code amendment note
   Pub. L. 100–177, § 202(e)(6), inserted “or loan repayment contract” in section catchline.

   Enacted provision · exact public law section
   (6) in the section heading, by inserting “or loan repayment contract” after “contract”,

8. 1987

   Pub. L. 100–177 § 202(e)(1) · 101 Stat. 986

   1. Amended · 42 U.S.C. § 254o(a)

      Pub. L. 100–177, § 202(e)(1), designated existing provisions as par. (1), and former pars. (1) to (4) as subpars. (A) to (D), respectively

   2. Added · 42 U.S.C. § 254o(a)

      Pub. L. 100–177, § 202(e)(1), added par. (2)

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 100–177, § 202(e)(1), designated existing provisions as par. (1), and former pars. (1) to (4) as subpars. (A) to (D), respectively, and added par. (2).

   Enacted provision · exact public law section
   (1) in subsection (a)— (A) by inserting “(1)” after the subsection designation; (B) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively; and (C) by adding at the end thereof the following new paragraph: “(2) An individual who has entered into a written contract with Contracts. the Secretary under section 338B and who— “(A) in the case of an individual who is enrolled in the final year of a course of study, fails to maintain an acceptable level of academic standing in the educational institution in which such individual is enrolled (such level determined by the educational institution under regulations of the Secretary) or voluntarily terminates such enrollment or is dismissed from such educational institution before completion of such course of study; or “(B) in the case of an individual who is enrolled in a graduate training program, fails to complete such training program and does not receive a waiver from the Secretary under section 338B(b)(1)(B)(ii), in lieu of any service obligation arising under such contract shall be liable to the United States for the amount that has been paid on behalf of the individual under the contract.”;

9. 1987

   Pub. L. 100–177 § 202(e)(2) · 101 Stat. 986

   1. Amended · 42 U.S.C. § 254o(b)(1)

      Pub. L. 100–177, § 202(e)(2), designated existing provisions as subpar. (A), made technical amendments to references to sections 254m, 254n, and 254p of this title wherever appearing to reflect renumbering of corresponding sections of original act

   2. Inserted · 42 U.S.C. § 254o(b)(1)

      Pub. L. 100–177, § 202(e)(2), inserted “under section 254l of this title” after first reference to “service obligation” as the probable intent of Congress

   3. Struck · 42 U.S.C. § 254o(b)(1)

      Pub. L. 100–177, § 202(e)(2), struck out at end “Any amount of damages which the United States is entitled to recover under this subsection shall, within the one year period beginning on the date of the breach of the written contract (or such longer period beginning on such date as specified by the Secretary for good cause shown), be paid to the United States.”

   4. Added · 42 U.S.C. § 254o(b)(1)

      Pub. L. 100–177, § 202(e)(2), added subpar. (B)

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 100–177, § 202(e)(2), designated existing provisions as subpar. (A), made technical amendments to references to sections 254m, 254n, and 254p of this title wherever appearing to reflect renumbering of corresponding sections of original act, inserted “under section 254l of this title” after first reference to “service obligation” as the probable intent of Congress, struck out at end “Any amount of damages which the United States is entitled to recover under this subsection shall, within the one year period beginning on the date of the breach of the written contract (or such longer period beginning on such date as specified by the Secretary for good cause shown), be paid to the United States.”, and added subpar. (B).

   Enacted provision · exact public law section
   (2) in subsection (b)(1)— (A) by inserting “(A)” after the paragraph designation; (B) by striking out “338E(d)” and inserting in lieu thereof “338F(d)”; (C) by striking out “338C” each place it appears and inserting in lieu thereof “338D”; (D) by striking out “338B” each place it appears and inserting in lieu thereof “338C”; (E) by inserting “under section 388A” after “service obligation”; (F) by striking the last sentence; and (G) by adding at the end the following new subparagraph: “(B) (i) Any amount of damages that the United States is entitled to recover under this subsection or under subsection (c) shall, within the 1-year period beginning on the date of the breach of the written contract (or such longer period beginning on such date as specified by the Secretary), be paid to the United States. “(ii) If damages described in clause (i) are delinquent for 3 months, the Secretary shall, for the purpose of recovering such damages— “(I) utilize collection agencies contracted with by the Administrator of the General Services Administration; or “(II) enter into contracts for the recovery of such damages with collection agencies selected by the Secretary. “(iii) Each contract for recovering damages pursuant to this Reports. subsection shall provide that the contractor will, not less than once each 6 months, submit to the Secretary a status report on the success of the contractor in collecting such damages. Section 3718 of title 31, United States Code, shall apply to any such contract to the extent not inconsistent with this subsection. “(iv) To the extent not otherwise prohibited by law, the Secretary shall disclose to all appropriate credit reporting agencies information relating to damages of more than $100 that are entitled to be recovered by the United States under this subsection and that are delinquent by more than 60 days or such longer period as is determined by the Secretary.”;

10. 1987

    Pub. L. 100–177 § 202(e)(4) · 101 Stat. 986

    Redesignated · 42 U.S.C. § 254o(c)

    Pub. L. 100–177, § 202(e)(4), added subsec. (c). Former subsec. (c) redesignated (d)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 100–177, § 202(e)(4), added subsec. (c). Former subsec. (c) redesignated (d).

    Enacted provision · exact public law section
    (4) by inserting after subsection (b) the following new subsection: “(c) (1) if (for any reason not specified in subsection (a) or section 338F(d)) an individual breaches the written contract of the individual under section 338B by failing either to begin such individual’s service obligation in accordance with section 338C or 338D or to complete such service obligation, the United States shall be entitled to recover from the individual an amount equal to the sum of— “(A) in the case of a contract for a 2-year period of obligated service— “(i) the total of the amounts paid by the United States under section 338B(g)(2) on behalf of the individual for any period of obligated service; and “(ii) an amount equal to the unserved obligation penalty; “(B) in the case of a contract for a period of obligated service of greater than 2 years, and the breach occurs before the end of the first 2 years of such period— “(i) the total of the amounts paid by the United States under section 338B(g)(2) on behalf of the individual for any period of obligated service; and “(ii) an amount equal to the unserved obligation penalty; and “(C) in the case of a contract for a period of obligated service of greater than 2 years, and the breach occurs after the first 2 years of such period— “(i) the total of the amounts paid by the United States under section 838B(g)(2) on behalf of the individual for any period of obligated service not served; and “(ii) if the individual breaching the contract failed to give the Secretary notice, that the individual intends to take action which constitutes a breach of the contract, at least 1 year (or such shorter period of time as the Secretary determines is adequate for finding a replacement) prior to the breach, $10,000. “(2) For purposes of paragraph (1), the term ‘unserved obligation penalty’ means the amount equal to the product of the number of months of obligated service that were not completed by an individual, multiplied by $1,000, except that in any case in which the individual fails to serve 1 year, the unserved obligation penalty shall be equal to the full period of obligated service multiplied by $1,000. “(3) The Secretary may waive, in whole or in part, the rights of the United States to recover amounts under this section in any case of extreme hardship or other good cause shown, as determined by the Secretary. “(4) Damages that the United States is entitled to recover shall be paid in accordance with subsection (b)(1)(B).”;

11. 1987

    Pub. L. 100–177 title II · 101 Stat. 986

    1. Redesignated · 42 U.S.C. § 254o(d)

       Pub. L. 100–177, §§ 202(e)(3), (5), 308(a), redesignated subsec. (c) as (d), in pars. (1), (2), and (3)

    2. Inserted · 42 U.S.C. § 254o(d)

       Pub. L. 100–177, §§ 202(e)(3), (5), 308(a), inserted “or the Loan Repayment Program (or a contract thereunder”, and in par. (3) inserted “, and only if the bankruptcy court finds that nondischarge of the obligation would be unconscionable”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 100–177, §§ 202(e)(3), (5), 308(a), redesignated subsec. (c) as (d), in pars. (1), (2), and (3), inserted “or the Loan Repayment Program (or a contract thereunder”, and in par. (3) inserted “, and only if the bankruptcy court finds that nondischarge of the obligation would be unconscionable”.

    Enacted provision · exact public law
    TITLE II— NATIONAL HEALTH SERVICE CORPS LOAN REPAYMENT PROGRAM SEC. 201. ESTABLISHMENT OF LOAN REPAYMENT PROGRAM. Subpart II of part D of title ID (42 U.S.C. 254d et seq.) is amended— (1) by redesignating section 388G (42 U.S.C. 254r) as section 338I; (2) by redesignating sections 338B through 338F (42 U.S.C. 254m through 254q) as sections 338C through 338G, respectively; and (3) by inserting after section 338A the following new section: “SEC. 338B. NATIONAL HEALTH SERVICE CORPS LOAN REPAYMENT PROGRAM. “(a) Establishment.— The Secretary shall establish a program to be known as the National Health Service Corps Loan Repayment Program (hereinafter in this subpart referred to as the ‘Loan Repayment Program’) in order to assure— “(1) an adequate supply of trained physicians, dentists, and nurses for the Corps; and “(2) if needed by the Corps, an adequate supply of podiatrists, optometrists, pharmacists, clinical psychologists, graduates of schools of veterinary medicine, graduates of schools of public health, graduates of programs in health administration, graduates of programs for the training of physician assistants, expanded function dental auxiliaries, and nurse practitioners (as defined in section 822), and other health professionals. “(b) Eligibility.— To be eligible to participate in the Loan Repayment Program, an individual must— “(1) (A) be enrolled— “(i) as a full-time student— “(I) in an accredited (as determined by the Secretary) educational institution in a State; and “(II) in the final year of a course of study or program, offered by such institution and approved by the Secretary leading to a degree in medicine, osteopathy, dentistry, or other health profession; or “(ii) in an approved graduate training program in medicine, osteopathy, dentistry, or other health profession; or “(B) have— “(i) a degree in medicine, osteopathy, dentistry, or other health profession; “(ii) completed an approved graduate training program in medicine, osteopathy, dentistry, or other health profession in a State, except that the Secretary may waive the completion requirement of this clause for good cause; and “(iii) a license to practice medicine, osteopathy, dentistry, or other health profession in a State; “(2) be eligible for, or bold, an appointment as a commissioned officer in the Regular or Reserve Corps of the Service or be eligible for selection for civilian service in the Corps; “(3) submit an application to participate in the Loan Repayment Program; and “(4) sign and submit to the Secretary, at the time of the submission of such application, a written contract (described in subsection (f)) to accept repayment of educational loans and to serve (in accordance with this subpart) for the applicable period of obligated service in a health manpower shortage area. “(c) Application, Contract, And Information Requirements.— “(1) Summary and information.— In disseminating application forms and contract forms to individuals desiring to participate in the Loan Repayment Program, the Secretary shall include with such forms— “(A) a fair summary of the rights and liabilities of an individual whose application is approved (and whose contract is accepted) by the Secretary, including in the summary a clear explanation of the damages to which the United States is entitled under section 338E in the case of the individual’s breach of the contract; and “(B) information respecting meeting a service obligation through private practice under an agreement under section 338D and such other information as may be necessary for the individual to understand the individual’s prospective participation in the Loan Repayment Program and service in the Corps. “(2) Understandability.— The application form, contract form, and all other information furnished by the Secretary under this subpart shall be written in a manner calculated to be understood by the average individual applying to participate in the Loan Repayment Program. “(3) Availability.— The Secretary shall make such application forms, contract forms, and other information available to individuals desiring to participate in the Loan Repayment Program on a date sufficiently early to ensure that such individuals have adequate time to carefully review and evaluate such forms and information. “(d) Priority.— In determining which applications under the Loan Repayment Program to approve (and which contracts to accept), the Secretary shall give priority to applications made by— “(1) individuals whose training is in a health profession or specialty determined by the Secretary to be needed by the Corps; and “(2) individuals who are committed to service in medically underserved areas. “(e) Approval Required for Participation.— “(1) In general.— An individual becomes a participant in the Loan Repayment Program only on the Secretary’s approval of the individual’s application submitted under subsection (b)(3) and the Secretary’s acceptance of the contract submitted by the individual under subsection (b)(4). “(2) Written notice.— The Secretary shall provide written notice to an individual promptly on— “(A) the Secretary’s approving, under paragraph (1), of the individual’s participation in the Loan Repayment Program; or “(B) the Secretary’s disapproving an individual’s participation in such Program. “(f) Contents of Contracts.— The written contract (referred to in this subpart) between the Secretary and an individual shall contain— “(1) an agreement that— “(A) subject to paragraph (3), the Secretary agrees— “(i) to pay on behalf of the individual loans in accordance with subsection (g); and “(ii) to accept (subject to the availability of appropriated funds for carrying out sections 331 through 335 and section 337) the individual into the Corps (or for equivalent service as otherwise provided in this subpart); and “(B) subject to paragraph (3), the individual agrees— “(i) to accept loan payments on behalf of the individual; “(ii) in the case of an individual described in subsection (b)(1)(A), to maintain enrollment in a course of study or training described in such subsection until the individual completes the course of study or training; “(iii) in the case of an individual described in subsection (b)(1)(A), while enrolled in such course of study or training, to maintain an acceptable level of academic standing (as determined under regulations of the Secretary by the educational institution offering such course of study or training); and “(iv) to serve for a time period (hereinafter in this subpart referred to as the ‘period of obligated service’) equal to 2 years or such longer period as the individual may agree to, in a health manpower shortage area (designated under section 332) to which such individual is assigned by the Secretary as a member of the Corps or released under section 338D; “(2) a provision permitting the Secretary to extend for such longer additional periods, as the individual may agree to, the period of obligated service agreed to by the individual under paragraph (1)(B)(iv); “(3) a provision that any financial obligation of the United States arising out of a contract entered into under this subpart and any obligation of the individual that is conditioned thereon, is contingent on funds being appropriated for loan repayments under this subpart and to carry out the purposes of sections 331 through 335 and sections 337 and 338; “(4) a statement of the damages to which the United States is entitled, under section 338E for the individual’s breach of the contract; and “(5) such other statements of the rights and liabilities of the Secretary and of the individual, not inconsistent with this subpart. “(g) Payments.— “(1) In general.— A loan repayment provided for an individual under a written contract under the Loan Repayment Program shall consist of payment, in accordance with paragraph (2), on behalf of the individual of the principal, interest, and related expenses on government and commercial loans received by the individual for— “(A) tuition expenses; “(B) all other reasonable educational expenses, including fees, books, and laboratory expenses, incurred by the individual; or “(C) reasonable living expenses as determined by the Secretary. “(2) Payments for years served.— “(A) In general.— Except as provided in subparagraph (B) and paragraph (3), for each year of obligated service that an individual contracts to serve under subsection (f) the Secretary may pay up to $20,000 on behalf of the individual for loans described in paragraph (1). “(B) Indian service.— For each year of obligated service that an individual contracts under subsection (f) to serve in the Indian Health Service, or to serve in a health program or facility operated by a tribe or tribal organization under the Indian Self-Determination Act (25 U.S.C. 450f et seq.), the Secretary may pay up to $25,000 on behalf of the individual for loans described in paragraph (1). “(C) Repayment schedule.— Any arrangement made by the Secretary for the making of loan repayments in accordance with this subsection shall provide that any repayments for a year of obligated service shall be made no later than the end of the fiscal year in which the individual completes such year of service. “(3) Tax liability.— In addition to payments made under paragraph (2), in any case in which payments on behalf of an individual under the Loan Repayment Program result in an increase in Federal, State, or local income tax liability for such individual, the Secretary may, on the request of such individual, make payments to such individual in a reasonable amount, as determined by the Secretary, to reimburse such individual for all or part of the increased tax liability of the individual. “(4) Payment schedule.— The Secretary may enter into an agreement with the holder of any loan for which payments are made under the Loan Repayment Program to establish a schedule for the making of such payments. “(h) Employment Ceiling.— Notwithstanding any other provision of law, individuals who have entered into written contracts with the Secretary under this section, while undergoing academic or other training, shall not be counted against any employment ceiling affecting the Department. “(i) Reports.— The Secretary shall, not later than March 1 of each year, submit to the Congress a report specifying— “(1) the number, and type of health profession training, of individuals receiving loan payments under the Loan Repayment Program; “(2) the educational institution at which such individuals are receiving their training; “(3) the number of applications filed under this section in the school year beginning in such year and in prior school years; and “(4) the amount of loan payments made in the year reported on.”. SEC. 202. TECHNICAL AND CONFORMING AMENDMENTS. (a) Section 303.— Section 303(d)(4) (42 U.S.C. 242a(d)(4)) is amended— (1) by striking out “752 or 753” each place it appears and inserting in lieu thereof “338C or 338D”; and (2) in subparagraph (A), by striking out “subpart IV of part C of title VII” and inserting in lieu thereof “subpart II of part D”. (b) Section 331.— Section 331 (42 U.S.C. 254d) is amended— (1) in subsection (b), by striking out “and the Scholarship Program” and inserting in lieu thereof “, the Scholarship Program, and the Loan Repayment Program”; (2) in subsection (c), by striking out “338C” and inserting in lieu thereof “338D”; (3) in subsection (d)(2), by inserting after “Program” the following: “or the Loan Repayment Program”; (4) in subsection (f), by striking out “Scholarship Program” and inserting in lieu thereof “Scholarship Program or the Loan Repayment Program”; and (5) in subsection (h)— (A) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and (B) by inserting after paragraph (1) the following new paragraph: “(2) The term ‘Loan Repayment Program’ means the National Health Service Corps Loan Repayment Program established under section 338B.”. (c) Section 334.— Section 334(a)(3)(B) (42 U.S.C. 254g(a)(3)(B)) is amended— (1) by inserting “or the Loan Repayment Program” after “Scholarship Program”; and (2) by striking out “service under the Program;” and inserting in lieu thereof “service under the Scholarship Program or the Loan Repayment Program;”. (d) Section 336.— Section 336(a) (42 U.S.C. 254h-1(a)) is amended by striking out “scholarship program” and inserting in lieu thereof “Scholarship Program or Loan Repayment Program”. (e) Section 338E.— Section 338E (as redesignated by section 201(2) 42 USC 254o. of this Act) is amended— (1) in subsection (a)— (A) by inserting “(1)” after the subsection designation; (B) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively; and (C) by adding at the end thereof the following new paragraph: “(2) An individual who has entered into a written contract with Contracts. the Secretary under section 338B and who— “(A) in the case of an individual who is enrolled in the final year of a course of study, fails to maintain an acceptable level of academic standing in the educational institution in which such individual is enrolled (such level determined by the educational institution under regulations of the Secretary) or voluntarily terminates such enrollment or is dismissed from such educational institution before completion of such course of study; or “(B) in the case of an individual who is enrolled in a graduate training program, fails to complete such training program and does not receive a waiver from the Secretary under section 338B(b)(1)(B)(ii), in lieu of any service obligation arising under such contract shall be liable to the United States for the amount that has been paid on behalf of the individual under the contract.”; (2) in subsection (b)(1)— (A) by inserting “(A)” after the paragraph designation; (B) by striking out “338E(d)” and inserting in lieu thereof “338F(d)”; (C) by striking out “338C” each place it appears and inserting in lieu thereof “338D”; (D) by striking out “338B” each place it appears and inserting in lieu thereof “338C”; (E) by inserting “under section 388A” after “service obligation”; (F) by striking the last sentence; and (G) by adding at the end the following new subparagraph: “(B) (i) Any amount of damages that the United States is entitled to recover under this subsection or under subsection (c) shall, within the 1-year period beginning on the date of the breach of the written contract (or such longer period beginning on such date as specified by the Secretary), be paid to the United States. “(ii) If damages described in clause (i) are delinquent for 3 months, the Secretary shall, for the purpose of recovering such damages— “(I) utilize collection agencies contracted with by the Administrator of the General Services Administration; or “(II) enter into contracts for the recovery of such damages with collection agencies selected by the Secretary. “(iii) Each contract for recovering damages pursuant to this Reports. subsection shall provide that the contractor will, not less than once each 6 months, submit to the Secretary a status report on the success of the contractor in collecting such damages. Section 3718 of title 31, United States Code, shall apply to any such contract to the extent not inconsistent with this subsection. “(iv) To the extent not otherwise prohibited by law, the Secretary shall disclose to all appropriate credit reporting agencies information relating to damages of more than $100 that are entitled to be recovered by the United States under this subsection and that are delinquent by more than 60 days or such longer period as is determined by the Secretary.”; (3) by redesignating subsection (c) as subsection (d); (4) by inserting after subsection (b) the following new subsection: “(c) (1) if (for any reason not specified in subsection (a) or section 338F(d)) an individual breaches the written contract of the individual under section 338B by failing either to begin such individual’s service obligation in accordance with section 338C or 338D or to complete such service obligation, the United States shall be entitled to recover from the individual an amount equal to the sum of— “(A) in the case of a contract for a 2-year period of obligated service— “(i) the total of the amounts paid by the United States under section 338B(g)(2) on behalf of the individual for any period of obligated service; and “(ii) an amount equal to the unserved obligation penalty; “(B) in the case of a contract for a period of obligated service of greater than 2 years, and the breach occurs before the end of the first 2 years of such period— “(i) the total of the amounts paid by the United States under section 338B(g)(2) on behalf of the individual for any period of obligated service; and “(ii) an amount equal to the unserved obligation penalty; and “(C) in the case of a contract for a period of obligated service of greater than 2 years, and the breach occurs after the first 2 years of such period— “(i) the total of the amounts paid by the United States under section 838B(g)(2) on behalf of the individual for any period of obligated service not served; and “(ii) if the individual breaching the contract failed to give the Secretary notice, that the individual intends to take action which constitutes a breach of the contract, at least 1 year (or such shorter period of time as the Secretary determines is adequate for finding a replacement) prior to the breach, $10,000. “(2) For purposes of paragraph (1), the term ‘unserved obligation penalty’ means the amount equal to the product of the number of months of obligated service that were not completed by an individual, multiplied by $1,000, except that in any case in which the individual fails to serve 1 year, the unserved obligation penalty shall be equal to the full period of obligated service multiplied by $1,000. “(3) The Secretary may waive, in whole or in part, the rights of the United States to recover amounts under this section in any case of extreme hardship or other good cause shown, as determined by the Secretary. “(4) Damages that the United States is entitled to recover shall be paid in accordance with subsection (b)(1)(B).”; (5) in subsection (d) (as redesignated by clause (3) of this subsection), by inserting “or the Loan Repayment Program (or a contract thereunder)” after “thereunder)” each place it appears; and (6) in the section heading, by inserting “or loan repayment contract” after “contract”, (f) Part D of Title III.— Part D of title III is amended— (1) by redesignating subparts III and IV as subparts IV and V, respectively; and (2) by inserting before section 338A the following: “Subpart III— Scholarship Program and Loan Repayment Program”. SEC. 203. REPORT AND AUTHORIZATION OF APPROPRIATIONS FOR SCHOLABSHIP AND LOAN REPAYMENT PROGRAMS; STATE PROGRAMS. Part D of title III (42 U.S.C. 247d et seq.) is amended by striking out section 338G (as redesignated by section 201(2) of this Act) and inserting in lieu thereof the following new sections: “SEC. 338G. REPORT AND AUTHORIZATION OF APPROPRIATIONS. “(a) Report.— The Secretary shall report on January 20 of each year to the Committee on Labor and Human Resources of the Senate, the Committee on Energy and Commerce of the House of Representatives, and the Committees on Appropriations of the Senate and the House of Representatives on— “(1) the number of providers of health care who will be needed for the Corps during the 3 fiscal years beginning after the date the report is filed; and “(2) the number— “(A) of scholarships the Secretary proposes to provide under the Scholarship Program during such 3 fisc years; “(B) of individuals for whom the Secretary proposes to make loan repayments under the Loan Repayment Program during such 3 fiscal years; and “(C) of individuals who have no obligation under section 338C and who the Secretary proposes to have as members of the Corps during such 3 fiscal years, in order to provide such number of health care providers. “(b) Authorization of Appropriations.— There are authorized to be appropriated such sums as may be necessary for scholarships and loan repayments under this subpart. “SEC. 338H. STATE PROGRAMS. “(a) Grants.— The Secretary may make grants to States to support the establishment by States of State programs similar to the Loan Repayment Program established under section 338B. Any State Program supported with a grant under this section shall— “(1) provide for the repayment of government and commercial loans for the tuition, educational expenses, and living expenses described in section 338B(g)(1); and “(2) be conducted in conformance with the description of such program contained in the application required under subsection (b). “(b) Applications.— No grant may be made under this section for a State program unless an application therefor is submitted to the Secretary, in such form, at such time, and containing such information as the Secretary may prescribe. Each such application shall contain such standards for the designation of medically underserved areas under the State program and the determination of obligated service under the State program as may be acceptable to the Secretary. “(c) Federal Share.— The Federal share of the costs of any State program supported under this section shall not exceed 75 percent. “(d) Authorization of Appropriations.— To carry out this section, there are authorized to be appropriated $1,000,000 for fiscal year 1988 and such sums as may be necessary for each of the fiscal years 1989 and 1990.”. SEC. 204. SPECIAL REPAYMENT PROVISIONS. (a) Eligible Individuals.— (1) In general.— An individual who— (A) (i) breached a written contract entered into under section 388A of the Public Health Service Act (42 U.S.C. 2541) by failing either to begin such individual’s service obligation in accordance with section 388C of such Act (as redesignated by section 201(2) of this Act) or to complete such service obligation; or (ii) otherwise breached such a contract; and (B) as of November 1, 1987, is liable to the United States under section 338E(b) of such Act (as redesignated by section 201(2) of this Act), shall be relieved of liability to the United States under such section if the individual provides notice to the Secretary in accordance with paragraph (2) and provides service in accordance with a written contract with the Secretary that obligates the individual to provide service in accordance with subsection (b) or (c). The Secretary may exclude an individual from relief from liability under this section for reasons related to the individual’s professional competence or conduct. (2) Notice by secretary.— Not later than 90 days after the date of the enactment of this Act, the Secretary of Health and Human Services shall notify in writing individuals who are described in subsection (a) of the opportunity provided by such subsection to be relieved of liability to the United States under section 338E(b) of the Public Health Service Act (as redesignated by section 201(2) of this Act). Notice sent to the last known address of such individual shall constitute sufficient notice for the purposes of this section. The Secretary may require that an individual responding to such notice make an election between service under subsection (b) or subsection (c) and provide that such election shall be binding. (3) Notice by individual.— Not later than 180 days after the date of the enactment of this Act, an individual who receives a notice from the Secretary may notify the Secretary that the individual intends to enter into a written contract with the Secretary to provide service in accordance with subsection (b) or (c). The Secretary may extend the 180-day period for an individual for good cause shown. (4) Statute of limitations.— If an individual provides notice under paragraph (3), the statute of limitations established by section 2415 of title 28, United States Code, shall be tolled from the time the Secretary receives such notice until such time as it is determined by the Secretary that such individual will not be relieved of liability to the United States under the Public Health Service Act as provided under this section. (5) Placements.— Any individual who enters into a contract under this subsection shall be afforded an opportunity to locate and negotiate a placement in accordance with this section, except that the Secretary shall not be required to identify a placement for any individual in a medical specialty for which the National Health Service Corps has no need. (6) Partial service.— The Secretary shall promulgate regulations Regulations. that provide for the reduction of the liability under section 338F of the Public Health Service Act (as redesignated by section 201(2) of this Act) of an individual who breaches a contract entered into under this section to reflect any partial service or partial payment of liability of the individual under this section. (b) Service at Health Manpower Shortage Area Placement Opportunity List Sites.— (1) In general.— An individual notified under subsection (a)(2) may enter into a written contract with the Secretary to serve, in accordance with subpart II of part D of title III of the Public Health Service Act (42 U.S.C. 254d et seq.), for the period of such individual’s service obligation remaining under section 338C of the Public Health Service Act (as redesignated by section 201(2) of this Act) at a site that— (A) (i) is on the Health Manpower Shortage Area Placement Opportunity List created by the Secretary of Health and Human Services for obligated service under section 338C of the Public Health Service Act (as so redesignated.) to begin in fiscal year 1988 and to which no individual who is not described in subsection (a)(1) has been assigned by a date determined by the Secretary; or (ii) is on the Health Manpower Shortage Area Placement Opportunity List created by the Secretary of Health and Human Services for obligated. service under section 838C of the Public Health Service Act (as so redesignated) to begin in fiscal year 1989; and (B) has agreed to permit the individual to serve at such site. (2) Number of sites.— The Secretary shall to the extent practicable, include a total number of sites on the list referred to in paragraph (1) sufficient to provide placement to all obligors under the Scholarship Program scheduled to begin service in fiscal year 1988 or 1989 and all individuals responding to the notice provided under subsection (a) and electing service under paragraph (1). (c) Service at Supplemental Health Manpower Shortage Area Placement Opportunity List Sites.— An individual notified under subsection (a)(2) may enter into a written contract with the Secretary— (1) to— (A) serve in accordance with subpart II of part D of title III of the Public Health Service Act (42 U.S.C. 254d et seq.) for the period of such individual’s service obligation remaining under section 338C of the Public Health Service Act (as redesignated by section 201(2) of this Act) at a site that is on a supplemental Health Manpower Shortage Area Placement Opportunity List created by the Secretary of Health and Human Services for obligated service under section 338C of the Public Health Service Act (as so redesig-nated) and that has agreed to permit the individual to serve at such site; and (B) pay, in accordance with guidelines established by the Secretary of Health and Human Services, to the United States the sum of the amounts paid under subpart II of part D of title ID of such Act to or on behalf of the individual reduced by any amount paid. before entering into the contract, by such individual to the Secretary with respect to the individual’s indebtedness under such part D; or (2) to serve in accordance with such subpart II at a site described in paragraph (1) for 160 percent of such individual’s remaining service obligation under section 338C of such Act (as so redesignated). (d) Creation of Supplemental Health Manpower Shortage Area Placement Opportunity List Sites.— In creating the supplemental Health Manpower Shortage Area Placement Opportunity List for purposes of subsection (c), the Secretary— (1) shall include any site to which a National Health Service Corps member was previously assigned but which in fiscal year 1988 or 1989 will not have such member or a member of the National Health Service Corps to replace such member unless the Secretary of Health and Human Services determines that such site may reasonably be expected to recruit a health care professional from other than the Corps; (2) shall include any migrant health center receiving funds under section 329 of the Public Health Service Act (42 U.S.C. 247d) or community health center receiving funds under section 330 of such Act (42 U.S.C. 254c) unless the Secretary of Health and Human Services determines that such center has been able to recruit health care professionals from other than the Corps to serve at the center and may reasonably be expected to recruit such health care professionals in the future; (3) may include any other site selected by the Secretary; and (4) shall designate the type of health care professional or medical specialist who is eligible to serve at the sites included on the list. A site may be included on the supplemental list only if, at the time the list is created, the Secretary determines that the site meets the criteria prescribed by section 832 of such Act (42 U.S.C. 254e). (e) Additional Eligible Individuals.— (1) In general.— The Secretary of Health and Human Services may authorize an individual who is not described in subsection (a) and who is to begin to serve the individual’s service obligation under section 338C of the Public Health Service Act (as redesignated by section 201(2) of this Act) in fiscal year 1988 or 1989 to serve such obligation in accordance with subsection (c) if the Secretary determines that— (A) service by the individual in accordance with subsection (c) would be in the best interests of the National Health Service Corps; and (B) allowing such service would alleviate a substantial hardship for such individual. (2) Scholarship training program.— Individuals who have breached a written contract entered into under section 225 of the Public Health Service Act (42 U.S.C. 234) (as such section existed before the amendment made by section 408(b) of the Health Professions Educational Assistance Act of 1976 (Public Law 94–484; 90 Stat. 2281)) by failing to complete their service obligations and who are, as of November 1, 1987, liable to the United States under section 225(f)(1) of the Public Health Service Act (as such section so existed) may be relieved of their liability to the United States under the terms and conditions set forth in this section. SEC. 205. REGULATIONS. Not later than 180 days after the effective date of the amendments made by this title, the Secretary of Health and Human Services shall issue regulations for the loan repayment programs established by the amendments.

12. 1987

    Pub. L. 100–203 title IV § 4052(b) · 101 Stat. 1330

    1. Amended · 42 U.S.C. § 254o(b)(1)(B)(i)

       Pub. L. 100–203, as amended by Pub. L. 100–360

    2. Inserted · 42 U.S.C. § 254o(b)(1)(B)(i)

       Pub. L. 100–203, as inserted at end “Amounts not paid within such period shall be subject to collection through deductions in Medicare payments pursuant to section 1395ccc of this title.”

    Source evidence

    Code amendment note
    Subsec. (b)(1)(B)(i). Pub. L. 100–203, as amended by Pub. L. 100–360, inserted at end “Amounts not paid within such period shall be subject to collection through deductions in Medicare payments pursuant to section 1395ccc of this title.”

    Enacted provision · exact public law section
    (b) Conforming Reference.— Section 338E(b)(1) of the Public Health Service Act (42 U.S.C. 254o(b)(l)) is amended by adding at the end thereof the following new sentence: “Amounts not paid within such period shall be subject to collection through deductions in Medicare payments pursuant to section 1892 of the Social Security Act.”.

13. 1988

    Medicare Catastrophic Coverage Act of 1988

    Pub. L. 100–360 title IV § 411(f)(10)(B) · 102 Stat. 683

    Changed · 42 U.S.C. § 254o(b)(1)(B)(i)

    Pub. L. 100–360 made technical amendment to directory language of Pub. L. 100–203, see 1987 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (b)(1)(B)(i). Pub. L. 100–360 made technical amendment to directory language of Pub. L. 100–203, see 1987 Amendment note below.

    Enacted provision · exact public law section
    (B) The first section 4052(b) of OBRA (relating to conforming reference) is amended by striking “338E(b)(1)” and “254o(b)(1)K and inserting “338E)(b)(1)(B)(i)” and “254o(b)(1)(B)(i)”, respectively.

14. 1990

    National Health Service Corps Revitalization Amendments of 1990

    Pub. L. 101–597 title II § 203(a) · 104 Stat. 3013

    1. Amended · 42 U.S.C. § 254o(d)(3)

       Pub. L. 101–597 designated existing provision as subpar. (A)

    2. Added · 42 U.S.C. § 254o(d)(3)

       Pub. L. 101–597 added subpar. (B)

    Source evidence

    Code amendment note
    Subsec. (d)(3). Pub. L. 101–597 designated existing provision as subpar. (A) and added subpar. (B).

    Enacted provision · exact public law section
    (a) Establishment of Rule Specific to Former Program.— Section 338E(d)(3) of the Public Health Service Act (42 U.S.C. 254o(d)(3), is amended— (1) by inserting “(A)” after the paragraph designation; and (2) by adding at the end the following new subparagraph: “(B) (i) Subparagraph (A) shall apply to any financial obligation of an individual under the provision of law specified in clause (ii) to the same extent and in the same manner as such subparagraph applies to any obligation of an individual under the Scholarship or Loan Repayment Program (or contract thereunder) for payment of damages. “(ii) The provision of law referred to in clause (i) is subsection (f) of section 225 of this Act, as in effect prior to the repeal of such section by section 408(b)(1) of Public Law 94–484.”.

15. 2002

    Health Care Safety Net Amendments of 2002

    Pub. L. 107–251 § 313(a)(1) · 116 Stat. 1621

    1. Substituted · 42 U.S.C. § 254o(a)(1)

       Pub. L. 107–251, § 313(a)(1), substituted semicolon for comma at end of subpar. (A) and “; or” for comma at end of subpar. (B)

    2. Struck · 42 U.S.C. § 254o(a)(1)

       Pub. L. 107–251, § 313(a)(1), struck out “or” at end of subpar. (C)

    3. Struck · 42 U.S.C. § 254o(a)(1)

       Pub. L. 107–251, § 313(a)(1), struck out subpar. (D) which read as follows: “fails to accept payment, or instructs the educational institution in which he is enrolled not to accept payment, in whole or in part, of a scholarship under such contract,”

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 107–251, § 313(a)(1), substituted semicolon for comma at end of subpar. (A) and “; or” for comma at end of subpar. (B), struck out “or” at end of subpar. (C), and struck out subpar. (D) which read as follows: “fails to accept payment, or instructs the educational institution in which he is enrolled not to accept payment, in whole or in part, of a scholarship under such contract,”.

    Enacted provision · exact public law section
    (1) in subsection (a)(1)— (A) in subparagraph (A), by striking the comma and inserting a semicolon; (B) in subparagraph (B), by striking the comma and inserting “; or”; (C) in subparagraph (C), by striking “or” at the end; and (D) by striking subparagraph (D);

    Effective date note
    Amendments by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

16. 2002

    Health Care Safety Net Amendments of 2002

    Pub. L. 107–251 § 313(a)(2)(A)(ii) · 116 Stat. 1621

    1. Struck · 42 U.S.C. § 254o(b)(1)(A)

       Pub. L. 107–251, § 313(a)(2)(A)(ii)–(iv), struck out “either” before “to begin”

    2. Substituted · 42 U.S.C. § 254o(b)(1)(A)

       Pub. L. 107–251, § 313(a)(2)(A)(ii)–(iv), substituted “254n of this title,” for “254n of this title or”

    3. Inserted · 42 U.S.C. § 254o(b)(1)(A)

       Pub. L. 107–251, § 313(a)(2)(A)(ii)–(iv), inserted “or to complete a required residency as specified in section 254l(f)(1)(B)(iv) of this title,” before “the United States” the first time appearing

    Source evidence

    Code amendment note
    Subsec. (b)(1)(A). Pub. L. 107–251, § 313(a)(2)(A)(ii)–(iv), struck out “either” before “to begin”, substituted “254n of this title,” for “254n of this title or”, and inserted “or to complete a required residency as specified in section 254l(f)(1)(B)(iv) of this title,” before “the United States” the first time appearing.

    Enacted provision · exact public law section
    (ii) by striking “either”;

    Effective date note
    Amendments by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

17. 2002

    Health Care Safety Net Amendments of 2002

    Pub. L. 107–251 § 313(a)(2)(A)(i) · 116 Stat. 1621

    Changed · 42 U.S.C. § 254o(b)(1)(A)

    Pub. L. 107–251, § 313(a)(2)(A)(i), made technical amendment to reference in original act which appears in text as reference to section 254p of this title

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 107–251, § 313(a)(2)(A)(i), made technical amendment to reference in original act which appears in text as reference to section 254p of this title.

    Enacted provision · exact public law section
    (i) by striking “338F(d)” and inserting “338G(d)”;

    Effective date note
    Amendments by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

18. 2002

    Health Care Safety Net Amendments of 2002

    Pub. L. 107–251 § 313(a)(2)(B) · 116 Stat. 1621

    Added · 42 U.S.C. § 254o(b)(3)

    Pub. L. 107–251, § 313(a)(2)(B), added par. (3)

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 107–251, § 313(a)(2)(B), added par. (3).

    Enacted provision · exact public law section
    (B) by adding at the end the following new paragraph: Deadline. “(3) The Secretary may terminate a contract with an individual under section 338A if, not later than 30 days before the end of the school year to which the contract pertains, the individual— “(A) submits a written request for such termination; and “(B) repays all amounts paid to, or on behalf of, the individual under section 338A(g).”;

    Effective date note
    Amendments by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

19. 2002

    Health Care Safety Net Amendments of 2002

    Pub. L. 107–251 § 313(a)(3)(A)(ii) · 116 Stat. 1621

    1. Added · 42 U.S.C. § 254o(c)(1)

       Pub. L. 107–251, § 313(a)(3)(A)(ii), added subpars. (A) to (C) and concluding provisions

    2. Struck · 42 U.S.C. § 254o(c)(1)

       Pub. L. 107–251, § 313(a)(3)(A)(ii), struck out former subpars. (A) to (C) which related, respectively, to amounts to be recovered in the case of a contract for a 2-year period of obligated service, in the case of a contract for a period of obligated service of greater than 2 years where the breach occurred before the end of the first 2 years of such period, and in the case of a contract for a period of obligated service of greater than 2 years, where the breach occurred after the first 2 years of such period

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 107–251, § 313(a)(3)(A)(ii), added subpars. (A) to (C) and concluding provisions and struck out former subpars. (A) to (C) which related, respectively, to amounts to be recovered in the case of a contract for a 2-year period of obligated service, in the case of a contract for a period of obligated service of greater than 2 years where the breach occurred before the end of the first 2 years of such period, and in the case of a contract for a period of obligated service of greater than 2 years, where the breach occurred after the first 2 years of such period.

    Enacted provision · exact public law section
    (ii) by striking subparagraphs (A) through (C) and inserting the following: “(A) the total of the amounts paid by the United States under section 338B(g) on behalf of the individual for any period of obligated service not served; “(B) an amount equal to the product of the number of months of obligated service that were not completed by the individual, multiplied by $7,500; and “(C) the interest on the amounts described in subparagraphs (A) and (B), at the maximum legal prevailing rate, as determined by the Treasurer of the United States, from the date of the breach; except that the amount the United States is entitled to recover under this paragraph shall not be less than $31,000.”;

    Effective date note
    Amendments by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

20. 2002

    Health Care Safety Net Amendments of 2002

    Pub. L. 107–251 § 313(a)(3)(A)(i) · 116 Stat. 1621

    Changed · 42 U.S.C. § 254o(c)(1)

    Pub. L. 107–251, § 313(a)(3)(A)(i), in introductory provisions, made technical amendment to reference in original act which appears in text as reference to section 254p(d) of this title

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 107–251, § 313(a)(3)(A)(i), in introductory provisions, made technical amendment to reference in original act which appears in text as reference to section 254p(d) of this title.

    Enacted provision · exact public law section
    (i) in the matter preceding subparagraph (A), by striking “338F(d)” and inserting “338G(d)”; and

    Effective date note
    Amendments by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

21. 2002

    Health Care Safety Net Amendments of 2002

    Pub. L. 107–251 § 313(a)(3)(B) · 116 Stat. 1621

    1. Added · 42 U.S.C. § 254o(c)(2)

       Pub. L. 107–251, § 313(a)(3)(B), added par. (2)

    2. Struck · 42 U.S.C. § 254o(c)(2)

       Pub. L. 107–251, § 313(a)(3)(B), struck out former par. (2) which read as follows: “For purposes of paragraph (1), the term ‘unserved obligation penalty’ means the amount equal to the product of the number of months of obligated service that were not completed by an individual, multiplied by $1,000, except that in any case in which the individual fails to serve 1 year, the unserved obligation penalty shall be equal to the full period of obligated service multiplied by $1,000.”

    Source evidence

    Code amendment note
    Subsec. (c)(2). Pub. L. 107–251, § 313(a)(3)(B), added par. (2) and struck out former par. (2) which read as follows: “For purposes of paragraph (1), the term ‘unserved obligation penalty’ means the amount equal to the product of the number of months of obligated service that were not completed by an individual, multiplied by $1,000, except that in any case in which the individual fails to serve 1 year, the unserved obligation penalty shall be equal to the full period of obligated service multiplied by $1,000.”

    Enacted provision · exact public law section
    (B) by striking paragraphs (2) and (3) and inserting the following: “(2) The Secretary may terminate a contract with an individual under section 338B if, not later than 45 days before the end of the fiscal year in which the contract was entered into, the individual— “(A) submits a written request for such termination; and “(B) repays all amounts paid on behalf of the individual under section 338B(g).”; and (C) by redesignating paragraph (4) as paragraph (3);

    Effective date note
    Amendments by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

22. 2002

    Health Care Safety Net Amendments of 2002

    Pub. L. 107–251 § 313(a)(3)(B) · 116 Stat. 1621

    1. Redesignated · 42 U.S.C. § 254o(c)(3); 42 U.S.C. § 254o(c)(4)

       Pub. L. 107–251, § 313(a)(3)(B), (C), redesignated par. (4) as (3)

    2. Struck · 42 U.S.C. § 254o(c)(3); 42 U.S.C. § 254o(c)(4)

       Pub. L. 107–251, § 313(a)(3)(B), (C), struck out former par. (3) which read as follows: “The Secretary may waive, in whole or in part, the rights of the United States to recover amounts under this section in any case of extreme hardship or other good cause shown, as determined by the Secretary.”

    Source evidence

    Code amendment note
    Subsec. (c)(3), (4). Pub. L. 107–251, § 313(a)(3)(B), (C), redesignated par. (4) as (3) and struck out former par. (3) which read as follows: “The Secretary may waive, in whole or in part, the rights of the United States to recover amounts under this section in any case of extreme hardship or other good cause shown, as determined by the Secretary.”

    Enacted provision · exact public law section
    (B) by striking paragraphs (2) and (3) and inserting the following: “(2) The Secretary may terminate a contract with an individual under section 338B if, not later than 45 days before the end of the fiscal year in which the contract was entered into, the individual— “(A) submits a written request for such termination; and “(B) repays all amounts paid on behalf of the individual under section 338B(g).”; and (C) by redesignating paragraph (4) as paragraph (3);

    Effective date note
    Amendments by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

23. 2002

    Health Care Safety Net Amendments of 2002

    Pub. L. 107–251 § 313(a)(4) · 116 Stat. 1621

    Substituted · 42 U.S.C. § 254o(d)(3)(A)

    Pub. L. 107–251, § 313(a)(4), substituted “7-year period” for “five-year period”

    Source evidence

    Code amendment note
    Subsec. (d)(3)(A). Pub. L. 107–251, § 313(a)(4), substituted “7-year period” for “five-year period”.

    Enacted provision · exact public law section
    (4) in subsection (d)(3)(A), by striking “only if such discharge is granted after the expiration of the five-year period” and inserting “only if such discharge is granted after the expiration of the 7-year period”; and

    Effective date note
    Amendments by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

24. 2002

    Health Care Safety Net Amendments of 2002

    Pub. L. 107–251 § 313(a)(5) · 116 Stat. 1621

    Added · 42 U.S.C. § 254o(e)

    Pub. L. 107–251, § 313(a)(5), added subsec. (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 107–251, § 313(a)(5), added subsec. (e).

    Enacted provision · exact public law section
    (5) by adding at the end the following new subsection: “(e) Notwithstanding any other provision of Federal or State law, there shall be no limitation on the period within which suit may be filed, a judgment may be enforced, or an action relating to an offset or garnishment, or other action, may be initiated or taken by the Secretary, the Attorney General, or the head of another Federal agency, as the case may be, for the repayment of the amount due from an individual under this section.”.

    Effective date note
    Amendments by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

25. 2003

    Health Care Safety Net Amendments Technical Corrections Act of 2003

    Pub. L. 108–163 § 2 · 117 Stat. 2020

    Changed · 42 U.S.C. § 254o(c)(1)

    Pub. L. 108–163, § 2(l)(1)(A), realigned margins

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 108–163, § 2(l)(1)(A), realigned margins.

    Enacted provision · exact public law section
    SEC. 2. TECHNICAL AMENDMENTS. (a) Health Centers.— (1) In general.— Section 330 of the Public Health Service Act (42 U.S.C. 254b) is amended to read as if— (A) subparagraph (C) of the second paragraph (4) of section 101 of Public Law 107–251 had not been enacted; (B) paragraph (7)(C) of such section 101 had not been enacted; and (C) paragraphs (8) through (11) of such section 101 had not been enacted. (2) Amendments per public law 107–251.— Section 330 of the Public Health Service Act (42 U.S.C. 254b), as amended by paragraph (1), is amended— (A) in subsection (c)(1)(B), in the matter preceding clause (i), by striking “plan..” and inserting “plan.”; (B) in subsection (d)(1)(B)(iii), in subclause (I), by adding “or” at the end; (C) by striking subsection (k); (D) by redesignating subsection (j) as subsection (k); (E) by inserting after subsection (i) a subsection that is identical to the subsection (j) that appears (as an amendment) in section 101(8)(C) of Public Law 107–251; (F) by redesignating subsection (l) as subsection (r), by transferring it from its current placement, and by inserting it after subsection (q); (G) by inserting before subsection (m) a subsection that is identical to the subsection that appears (as an amendment) in section 101(9) of Public Law 107–251, and by redesignating as subsection (l) the subsection that is so inserted; (H) in subsection (l) (as inserted and redesignated by subparagraph (G) of this paragraph), in the first sentence— (i) by inserting after “shall provide” the following: “(either through the Department of Health and Human Services or by grant or contract)”; and (ii) by striking “(l)(3)” and inserting “(k)(3)”; (I) in subsection (p), by striking “(j)(3)(G)” and inserting “(k)(3)(G)”; and (J) in subsection (r) (as redesignated, transferred, and inserted by subparagraph (F) of this paragraph)— (i) in paragraph (1), by striking “$802,124,000” and all that follows through the period and inserting “$1,340,000,000 for fiscal year 2002 and such sums as may be necessary for each of the fiscal years 2003 through 2006.”; (ii) in paragraph (2)(A)— (I) by striking “(j)(3))” and inserting “(k)(3))”; and (II) by striking “(j)(3)(G)(ii)” and inserting “(k)(3)(H)”; and (iii) in paragraph (2), by striking subparagraph (B) and inserting a subparagraph that is identical to the subparagraph (B) that appears (as an amendment) in section 101(11)(B)(ii) of Public Law 107–251. (b) Rural Health Outreach.— Section 330A(b)(4) of the Public Health Service Act (42 U.S.C. 254c(b)(4)) is amended by striking “799B” and inserting “799B(6)”. (c) Telehealth.— Section 330I of the Public Health Service Act (42 U.S.C. 254c–14) is amended— (1) in subsection (a)(4), by striking “799B” and inserting “799B(6)”; and (2) in subsection (c)(1), by striking “Health and Resources and Services Administration” and inserting “Health Resources and Services Administration”. (d) Mental Health Services Via Telehealth.— Section 330K of the Public Health Service Act (42 U.S.C. 254c–16) is amended— (1) in subsection (b)(2), by striking “subsection (a)(4)” and inserting “subsection (a)(3)”; and (2) in subsection (c)(1)— (A) in subparagraph (A), by striking “subsection (a)(4)(A)” and inserting “subsection (a)(3)(A)”; and (B) in subparagraph (B), by striking “subsection (a)(4)(B)” and inserting “subsection (a)(3)(B)”. (e) Telemedicine Incentive Grants.— (1) In general.— Subpart I of part D of title III of the Public Health Service Act (42 U.S.C. 254b et seq.) is amended by adding at the end the following: “SEC. 330L. TELEMEDICINE; INCENTIVE GRANTS REGARDING COORDINATION AMONG STATES. “(a) In General.— The Secretary may make grants to State professional licensing boards to carry out programs under which such licensing boards of various States cooperate to develop and implement State policies that will reduce statutory and regulatory barriers to telemedicine. “(b) Authorization of Appropriations.— For the purpose of carrying out subsection (a), there are authorized to be appropriated such sums as may be necessary for each of the fiscal years 2002 through 2006.” . (2) Repeal.— Section 102 of the Health Care Safety Net Amendments of 2002 (Public Law 107–251) 42 USC 254c–17. is repealed. (f) Health Professional Shortage Areas.— (1) In general.— Section 332 of the Public Health Service Act (42 U.S.C. 254e) is amended— (A) in subsection (a)(1)— (i) by striking “such date of enactment” and inserting “such date of designation”; and (ii) by striking “, issued after the date of enactment of this Act, that revise” and inserting “regarding”; and (B) in subsection (a)(3), by striking “330(h)(4)” and inserting “330(h)(5)”; (C) in subsection (b)(2), by striking “designation,.” and inserting “designation.”; and (D) by adding at the end the following: “(j) (1) Reports. Regulations. The Secretary shall submit the report described in paragraph (2) if the Secretary, acting through the Administrator of the Health Resources and Services Administration, issues— “(A) a regulation that revises the definition of a health professional shortage area for purposes of this section; or “(B) a regulation that revises the standards concerning priority of such an area under section 333A. “(2) On issuing a regulation described in paragraph (1), the Secretary shall prepare and submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate a report that describes the regulation. “(3) Effective date. Each regulation described in paragraph (1) shall take effect 180 days after the committees described in paragraph (2) receive a report referred to in such paragraph describing the regulation.” . (2) Repeal.— Subsection (b) of section 302 of the Health Care Safety Net Amendments of 2002 42 USC 254e note. (Public Law 107–251) is repealed. (g) Assignment of Corps Personnel.— Section 333(a)(1) of the Public Health Service Act (42 U.S.C. 254f) is amended by moving subparagraph (C) so that the margin of subparagraph (C) is aligned with the margins of subparagraphs (A), (B), and (D). (h) Priorities in Assignment of Corps Personnel.— Section 333A(c)(4) of the Public Health Service Act (42 U.S.C. 254f–1(c)(4)) is amended by striking “30 days” and inserting “30 days from such notification”. (i) Charges for Services.— Section 334(b)(1)(B) of the Public Health Service Act (42 U.S.C. 254g(b)(1)(B)) is amended by inserting “the payment of” after “applied to”. (j) National Health Service Corps Scholarship Program.— Section 338A(d)(1) (42 U.S.C. 254l(d)(1)) is amended by moving subparagraph (B) so that the margin of subparagraph (B) is aligned with the margin of subparagraphs (A) and (C). (k) National Health Service Corps Loan Repayment Program.— Section 338B(e) of the Public Health Service Act (42 U.S.C. 254l–1) is amended by striking “Participation.—” and all that follows through “An individual” and inserting “Participation.—An individual”. (l) Breach of Contract.— (1) In general.— Section 338E of the Public Health Service Act (42 U.S.C. 254o) is amended— (A) in subsection (c)(1), by moving subparagraphs (A), (B), and (C), and the flush matter following subparagraph (C), 2 ems to the left; and (B) by adding at the end the following: “(f) Applicability. The amendment made by section 313(a)(4) of the Health Care Safety Net Amendments of 2002 (Public Law 107–251) shall apply to any obligation for which a discharge in bankruptcy has not been granted before the date that is 31 days after the date of enactment of such Act.” . (2) Repeal.— Subsection (b) of section 313 of the Health Care Safety Net Amendments of 2002 42 USC 254o note. (Public Law 107–251) is repealed. (m) Miscellaneous.— The Public Health Service Act (42 U.S.C. 201 et seq.) is amended— (1) in subsections (g)(1)(G)(ii), (k)(2), and (n)(1)(C) of section 224, and sections 317A(a)(2), 317E(c), and 318A(e), 42 USC 233, 247b–1, 247b–6, 247c–1. by striking “330, 330(h)” and inserting “330”; (2) in section 1313, 42 USC 300e–12. by striking “329, 330, and 330(h)” and inserting “329 and 330”; and (3) in section 2652(a)(2), 42 USC 300ff–52. by striking “section 340” and inserting “section 330(h)”. (n) Health Care Safety Net Amendments of 2002.— The Health Care Safety Net Amendments of 2002 (Public Law 107–251) is amended— (1) in section 404(c)(5), 42 USC 1396a note. by striking “Health Care Financing Administration and the Health Research” and inserting “Centers for Medicare & Medicaid Services and the Health Resources”; and (2) in section 501, 42 USC 254b note. by striking “solvency for managed care networks” and inserting “guarantees of solvency for managed care networks or plans”.

    Effective date note
    Amendments by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

26. 2003

    Health Care Safety Net Amendments Technical Corrections Act of 2003

    Pub. L. 108–163 § 2 · 117 Stat. 2020

    Added · 42 U.S.C. § 254o(f)

    Pub. L. 108–163, § 2(l)(1)(B), added subsec. (f)

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 108–163, § 2(l)(1)(B), added subsec. (f).

    Enacted provision · exact public law section
    SEC. 2. TECHNICAL AMENDMENTS. (a) Health Centers.— (1) In general.— Section 330 of the Public Health Service Act (42 U.S.C. 254b) is amended to read as if— (A) subparagraph (C) of the second paragraph (4) of section 101 of Public Law 107–251 had not been enacted; (B) paragraph (7)(C) of such section 101 had not been enacted; and (C) paragraphs (8) through (11) of such section 101 had not been enacted. (2) Amendments per public law 107–251.— Section 330 of the Public Health Service Act (42 U.S.C. 254b), as amended by paragraph (1), is amended— (A) in subsection (c)(1)(B), in the matter preceding clause (i), by striking “plan..” and inserting “plan.”; (B) in subsection (d)(1)(B)(iii), in subclause (I), by adding “or” at the end; (C) by striking subsection (k); (D) by redesignating subsection (j) as subsection (k); (E) by inserting after subsection (i) a subsection that is identical to the subsection (j) that appears (as an amendment) in section 101(8)(C) of Public Law 107–251; (F) by redesignating subsection (l) as subsection (r), by transferring it from its current placement, and by inserting it after subsection (q); (G) by inserting before subsection (m) a subsection that is identical to the subsection that appears (as an amendment) in section 101(9) of Public Law 107–251, and by redesignating as subsection (l) the subsection that is so inserted; (H) in subsection (l) (as inserted and redesignated by subparagraph (G) of this paragraph), in the first sentence— (i) by inserting after “shall provide” the following: “(either through the Department of Health and Human Services or by grant or contract)”; and (ii) by striking “(l)(3)” and inserting “(k)(3)”; (I) in subsection (p), by striking “(j)(3)(G)” and inserting “(k)(3)(G)”; and (J) in subsection (r) (as redesignated, transferred, and inserted by subparagraph (F) of this paragraph)— (i) in paragraph (1), by striking “$802,124,000” and all that follows through the period and inserting “$1,340,000,000 for fiscal year 2002 and such sums as may be necessary for each of the fiscal years 2003 through 2006.”; (ii) in paragraph (2)(A)— (I) by striking “(j)(3))” and inserting “(k)(3))”; and (II) by striking “(j)(3)(G)(ii)” and inserting “(k)(3)(H)”; and (iii) in paragraph (2), by striking subparagraph (B) and inserting a subparagraph that is identical to the subparagraph (B) that appears (as an amendment) in section 101(11)(B)(ii) of Public Law 107–251. (b) Rural Health Outreach.— Section 330A(b)(4) of the Public Health Service Act (42 U.S.C. 254c(b)(4)) is amended by striking “799B” and inserting “799B(6)”. (c) Telehealth.— Section 330I of the Public Health Service Act (42 U.S.C. 254c–14) is amended— (1) in subsection (a)(4), by striking “799B” and inserting “799B(6)”; and (2) in subsection (c)(1), by striking “Health and Resources and Services Administration” and inserting “Health Resources and Services Administration”. (d) Mental Health Services Via Telehealth.— Section 330K of the Public Health Service Act (42 U.S.C. 254c–16) is amended— (1) in subsection (b)(2), by striking “subsection (a)(4)” and inserting “subsection (a)(3)”; and (2) in subsection (c)(1)— (A) in subparagraph (A), by striking “subsection (a)(4)(A)” and inserting “subsection (a)(3)(A)”; and (B) in subparagraph (B), by striking “subsection (a)(4)(B)” and inserting “subsection (a)(3)(B)”. (e) Telemedicine Incentive Grants.— (1) In general.— Subpart I of part D of title III of the Public Health Service Act (42 U.S.C. 254b et seq.) is amended by adding at the end the following: “SEC. 330L. TELEMEDICINE; INCENTIVE GRANTS REGARDING COORDINATION AMONG STATES. “(a) In General.— The Secretary may make grants to State professional licensing boards to carry out programs under which such licensing boards of various States cooperate to develop and implement State policies that will reduce statutory and regulatory barriers to telemedicine. “(b) Authorization of Appropriations.— For the purpose of carrying out subsection (a), there are authorized to be appropriated such sums as may be necessary for each of the fiscal years 2002 through 2006.” . (2) Repeal.— Section 102 of the Health Care Safety Net Amendments of 2002 (Public Law 107–251) 42 USC 254c–17. is repealed. (f) Health Professional Shortage Areas.— (1) In general.— Section 332 of the Public Health Service Act (42 U.S.C. 254e) is amended— (A) in subsection (a)(1)— (i) by striking “such date of enactment” and inserting “such date of designation”; and (ii) by striking “, issued after the date of enactment of this Act, that revise” and inserting “regarding”; and (B) in subsection (a)(3), by striking “330(h)(4)” and inserting “330(h)(5)”; (C) in subsection (b)(2), by striking “designation,.” and inserting “designation.”; and (D) by adding at the end the following: “(j) (1) Reports. Regulations. The Secretary shall submit the report described in paragraph (2) if the Secretary, acting through the Administrator of the Health Resources and Services Administration, issues— “(A) a regulation that revises the definition of a health professional shortage area for purposes of this section; or “(B) a regulation that revises the standards concerning priority of such an area under section 333A. “(2) On issuing a regulation described in paragraph (1), the Secretary shall prepare and submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate a report that describes the regulation. “(3) Effective date. Each regulation described in paragraph (1) shall take effect 180 days after the committees described in paragraph (2) receive a report referred to in such paragraph describing the regulation.” . (2) Repeal.— Subsection (b) of section 302 of the Health Care Safety Net Amendments of 2002 42 USC 254e note. (Public Law 107–251) is repealed. (g) Assignment of Corps Personnel.— Section 333(a)(1) of the Public Health Service Act (42 U.S.C. 254f) is amended by moving subparagraph (C) so that the margin of subparagraph (C) is aligned with the margins of subparagraphs (A), (B), and (D). (h) Priorities in Assignment of Corps Personnel.— Section 333A(c)(4) of the Public Health Service Act (42 U.S.C. 254f–1(c)(4)) is amended by striking “30 days” and inserting “30 days from such notification”. (i) Charges for Services.— Section 334(b)(1)(B) of the Public Health Service Act (42 U.S.C. 254g(b)(1)(B)) is amended by inserting “the payment of” after “applied to”. (j) National Health Service Corps Scholarship Program.— Section 338A(d)(1) (42 U.S.C. 254l(d)(1)) is amended by moving subparagraph (B) so that the margin of subparagraph (B) is aligned with the margin of subparagraphs (A) and (C). (k) National Health Service Corps Loan Repayment Program.— Section 338B(e) of the Public Health Service Act (42 U.S.C. 254l–1) is amended by striking “Participation.—” and all that follows through “An individual” and inserting “Participation.—An individual”. (l) Breach of Contract.— (1) In general.— Section 338E of the Public Health Service Act (42 U.S.C. 254o) is amended— (A) in subsection (c)(1), by moving subparagraphs (A), (B), and (C), and the flush matter following subparagraph (C), 2 ems to the left; and (B) by adding at the end the following: “(f) Applicability. The amendment made by section 313(a)(4) of the Health Care Safety Net Amendments of 2002 (Public Law 107–251) shall apply to any obligation for which a discharge in bankruptcy has not been granted before the date that is 31 days after the date of enactment of such Act.” . (2) Repeal.— Subsection (b) of section 313 of the Health Care Safety Net Amendments of 2002 42 USC 254o note. (Public Law 107–251) is repealed. (m) Miscellaneous.— The Public Health Service Act (42 U.S.C. 201 et seq.) is amended— (1) in subsections (g)(1)(G)(ii), (k)(2), and (n)(1)(C) of section 224, and sections 317A(a)(2), 317E(c), and 318A(e), 42 USC 233, 247b–1, 247b–6, 247c–1. by striking “330, 330(h)” and inserting “330”; (2) in section 1313, 42 USC 300e–12. by striking “329, 330, and 330(h)” and inserting “329 and 330”; and (3) in section 2652(a)(2), 42 USC 300ff–52. by striking “section 340” and inserting “section 330(h)”. (n) Health Care Safety Net Amendments of 2002.— The Health Care Safety Net Amendments of 2002 (Public Law 107–251) is amended— (1) in section 404(c)(5), 42 USC 1396a note. by striking “Health Care Financing Administration and the Health Research” and inserting “Centers for Medicare & Medicaid Services and the Health Resources”; and (2) in section 501, 42 USC 254b note. by striking “solvency for managed care networks” and inserting “guarantees of solvency for managed care networks or plans”.

    Effective date note
    Amendments by Pub. L. 108–163 deemed to have taken effect immediately after the enactment of Pub. L. 107–251, see section 3 of Pub. L. 108–163, set out as a note under section 233 of this title.

41 of 43 references resolved to an enrolled provision · 2 partial