text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/790

 90 STAT. 2258

20 USC 1071.

PUBLIC LAW 94-484—OCT. 12, 1976 for loans made (or for loan installments paid pursuant to lines of credit) to enable students, who have obtained prior loans insured under this subpart, to continue or complete their educational program; but no insurance may be granted for any loan made or installment paid after September 30, 1982. "(b) The Secretary may, if necessary to assure an equitable distribution of the benej&ts of this subpart, assign, within the maximum amounts specified in subsection (a). Federal loan insurance quotas applicable to eligible lenders, or to States or areas, and may from time to time reassign unused portions of these quotas. "(c) The Student Loan Marketing Association, established under part B of title IV of the Higher Education Act of 1965, is authorized to make advances on the security of, purchase, service, sell, or otherwise deal in, student loans which are insured by the Secretary under this subpart. "LIMrrATIONS ON INDIVIDUAL FEDERALLY INSURED LOANS AND ON FEDERAL LOAN INSURANCE

42 USC 294b.

"SEC. 729. (a) The total of the loans made to a student in any academic year or its equivalent (as determined by the Secretary) which may be covered by Federal loan insurance under this subpart may not exceed $10,000 in the case of a student enrolled in a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, podiatry, or public health, and $7,500 in the case of a student enrolled in a school of pharmacy. The aggregate insured unpaid principal amount for all such insured loans made to any student shall not at any time exceed $50,000 in the case of a student enrolled in a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, podiatry, or public health, and $37,500 in the case of a student enrolled in a school of pharmacy. The annual insurable limit per student shall not be exceeded by a line of credit under which actual payments by the lender to the borrower will not be made in any year in excess of the annual limit. "(b) The insurance liability on any loan insured by the Secretary under this subpart shall be 100 percent of the unpaid balance of the principal amount of the loan plus interest. The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under the provisions of section 733 or 738. " S O U R C E S o r FUNDS

42 USC 294c.

"SEC. 730. Loans made by eligible lenders in accordance with this subpart shall be insurable by the Secretary whether made from funds fully owned by the lender or from funds held by the lender in a trust or similar capacity and available for such loans. " E L I G I B I L I T Y OF S T U D E N T BORROWERS AND TERMS OF FEDERALLY INSURED

STUDENT LOANS

42 USC 294d.

"SEC. 731. (a) A loan by an eligible lender shall be insurable by the Secretary under the provisions of this subpart only if— "(1) made to a student who— "(A) has been accepted for enrollment at an eligible institution; " (B) is in good standing at an eligible institution as determined by the institution;

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/791

 PUBLIC LAW 94-484—OCT. 12, 1976 "(C) is pursuing a full-time course of study at an eligible institution; "(D) in the case of a student in a school of medicine, osteopathy, or dentistry, has been authorized by the institution in accordance with section 739(b)(2) to receive a loan under this subpart; " (E) has agreed that all funds received under such loan shall be used solely for tuition and other reasonable educational expenses, including fees, books, and laboratory expenses, incurred by such student; " (F) for the school year for which such loan is made, receives no funds from a loan insured under a Federal, State, or nonprofit program provided or assisted under part B of title IV of the Higher Education Act of 1965; and "(G) in the case of a pharmacy student, has satisfactorily completed three years of training; and "(2) evidenced by a note or other written agreement which— "(A) is made without security and without endorsement, except that if the borrower is a minor and such note or other written agreement executed by him would not, under the applicable law, create a binding obligation, an endorsement may be required; "(B) provides for repayment of the principal amount of the loan in installments over a period of not less than 10 years (unless sooner repaid) nor more than 15 years beginning not earlier than 9 months after the date on which the student completes his internship or residency training, and not later than the earlier of 12 months after such date or of 3 years after the date he ceases to carry, at an eligible institution, the normal full-time academic workload as determined by the institution, except (i) as provided in clause (C) below, (ii) that the period of the loan may not exceed 23 years from the date of execution of the note or written agreement evidencing it, and (iii) that the note or other written instrument may contain such provisions relating to repayment in the event of default in the payment of interest or in the payment of the cost of insurance premiums, or other default by the borrower, as may be authorized by regulations of the Secretary in effect at the time the loan is made; "(C) provides that periodic installments of principal need not be paid, but interest shall accrue and be paid, during any period (i) during which the borrower is pursuing a full-time course of study at an eligible institution, (ii) not in excess of three years during which the borrower is a participant in an accredited internship or residency program, (iii) not in excess of three yeare, during which the borrower is a member of the Armed Forces of the United States, (iv) not in excess of three years during which the borrower is in service as a volunteer under the Peace Corps Act, (v) not in excess of three years during which the borrower is a member of the National Health Service Corps, or (vi) not in excess of three years during which the borrower is in service as a full-time volunteer under title I of the Domestic Volunteer Service Act of 1973, and any such period shall not be included in determining the 15-year period or the 23-year period provided in clause (B) above; "(D) provides for interest on the unpaid principal balance of the loan at a yearly rate, not exceeding the applicable maxi-

90 STAT. 2259

20 USC 1071.

>

22 USC 2501 °o*«-

42 USC 4951. Interest rate,

�

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/792

 90 STAT. 2260

PUBLIC LAW 94-484—OCT. 12, 1976 mum rate prescribed and defined by the Secretary (within the limits set forth in subsection (b)) on a national, regional, or other appropriate basis, which interest shall be compounded semiannually and payable in installments over the period of the loan; " (E) entitles the student borrower to accelerate without penalty repayment of the whole or any part of the loan; and " (F) contains such other terms and conditions consistent with the provisions of this subpart and with the regulations issued by the Secretary pursuant to this subpart, as may be agreed upon by the parties to such loan, including, if agreed upon, a provision requiring the borrower to pay to the lender, in addition to principal and interest, amounts equal to the insurance premiums payable by the lender to the Secretary with respect to such loan. "(b) No maximum rate of interest prescribed and defined by the Secretary for the purpose of paragraph (2)(D) of subsection (a) may exceed 10 percent per annum on the unpaid principal balance of the loan. "(c) The total of the payments by a borrower during any year of any repayment period with respect to the aggregate amount of all loans to that borrower which are insured under this subpart shall not be less than the annual interest on the outstanding principal. "CERTIFICATE or FEDERAL L O A N INSURANCE—EFFECTIVE DATE OF INSURANCE

42 USC 294e.

Application.

"SEC. 732. (a)(1) If, upon application by an eligible lender, made upon such form, containing such information, and supported by such evidence as the Secretary may require, and otherwise in conformity with this section, the Secretary finds that the applicant has made a loan to an eligible student which is insurable under the provisions of this subpart, he may issue to the applicant a certificate of insurance covering the loan and setting forth the amount and terms of the insurance. "(2) Insurance evidenced by a certificate of insurance pursuant to subsection (a)(1) shall become effective upon the date of issuance of the certificate, except that the Secretary is authorized, in accordance with regulations, to issue commitments with respect to proposed loans, or with respect to lines (or proposed lines) of credit, submitted by eligible lenders, and in that event, upon compliance with subsection (a)(1) by the lender, the certificate of insurance may be issued effective as of the date when any loan, or any payment by the lender pursuant to a line of credit, to be covered by such insurance was made. Such insurance shall cease to be effective upon 60 days' default by the lender in the payment of any installment of the premiums payable pursuant to subsection (c). "(3) An application submitted pursuant to subsection (a)(1) shall contain (A) an agreement by the applicant to pay, in accordance with regulations, the premiums fixed by the Secretary pursuant to subsection (c), and (B) an agreement IDV the applicant that if the loan is covered by insurance the applicant will submit such supplementary reports and statements during the effective period of the loan agreement, upon such forms, at such times, and containing such information as the Secretary may prescribe by or pursuant to regulation. "(b)(1) I n lieu of requiring a separate insurance application and issuing a separate certificate of insurance for each student loan made by an eligible lender as provided in subsection (a), the Secretary

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/793

 PUBLIC LAW 94-484—OCT. 12, 1976 may, in accordance with regulations consistent with section 728, issue to any eligible lender applying therefor a certificate of comprehensive insurance coverage which shall, without further action by the Secretary, insure all insurable loans made by that lender, on or after the date of the certificate and before a specified cutoff date, within the limits of an aggregate maximum amount stated in the certificate. Such regulations may provide for conditioning such insurance, with respect to any loan, upon compliance by the lender with such requirements (to be stated or incorporated by reference in the certificate) as in the Secretary's judgment will best achieve the purpose of this subsection while protecting the financial interest of the United States and promoting the objectives of this subpart, including (but not limited to) provisions as to the reporting of such loans and information relevant thereto to the Secretary and as to the payment of initial and other premiums and the effect of default therein, and including provision for confirmation by the Secretary from time to time (through endorsement of the certificate) of the coverage of specific new loans by such certificate, which confirmation shall be incontestable by the Secretary in the absence of fraud or misrepresentation of fact or patent error. " (2) I f the holder of a certificate of comprehensive insurance coverage issued under this subsection grants to a student a line of credit extending beyond the cutoff date specified in that certificate, loans or payments thereon made by the holder after that date pursuant to the line of credit shall not be deemed to be included in the coverage of that certificate except as may be specifically provided therein; but, subject to the limitations of section 728, the Secretary may, in accordance with regulations, make commitments to insure such future loans or payments, and such commitments may be honored either as provided in subsectioTi (a) or by inclusion of such insurance in comprehensive coverage under this subsection for the period or periods in which such future loans or payments are made. " (c) The Secretary shall, pursuant to regulations, charge for insurance on each loan under this subpart a premium in an amount not to exceed 2 percent per year of the unpaid principal amount of such loan (excluding interest added to p r i n c i p a l), payable in advance, at such times and in such manner as may be prescribed by the Secretary. Such regulations may provide that such premium shall not be payable, or if paid shall be refundable, with respect to any period after default in the payment of principal or interest or after the borrower has died or become totally and permanently disabled, if (1) notice of such default or other event has been duly given, and (2) requests for payment of the loss insured against has been made or the Secretary has made such payment on his own motion pursuant to section 733(a). " (d) The rights of an eligible lender arising under insurance evidenced by a certificate of insurance issued to it under this section may be assigned as security by such lender only to another eligible lender, and subject to regulation by the Secretary. " (e) The consolidation of the obligations of two or more federally insured loans obtained by a student borrower in any fiscal year into a single obligation evidenced by a single instrument of indebtedness shall not affect the insurance by the United States. I f the loans t h u s consolidated are covered by separate certificates of insurance issued under subsection (a), the Secretary may upon surrender of the original certificates issue a new certificate of insurance in accordance with that subsection upon the consolidated obligation. I f the loans thus consolidated are covered by a single comprehensive certificate issued under subsection (b), the Secretary may amend that certificate accordingly.

90 STAT. 2261

Regulations,

Assignment of rights.

Loan consolidation.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/794

 90 STAT. 2262

PUBLIC LAW 94-4«4—OCT. 12, 1976 DEPATTLT OP STUDEN^T UNDER FEDERAL LOAN INSURANCE PROGRAM

42 USC 294f.

Definitions.

Notice and hearing.

"SEC. 733. (a) Upon default by the student borrower on any loan covered by Federal loan insurance pursuant to this subpart, and after a substantial collection effort (including, if appropriate, commencement of a suit) as determined under regulations of the Secretary, the insurance beneficiary shall promptly notify the Secretary and the Secretary shall, if requested (at that time or after further collection efforts) by the beneficiary, or may on his own motion, if the insurance is still in effect, pay to the beneficiary the amount of the loss sustained by the insured upon that loan as soon as that amount has been determined. "(b) Upon payment by the Secretary of the amount of the loss pursuant to subsection (a), the United States shall be subrogated for all of the rights of the holder of the obligation upon the insured loan and shall be entitled to an assignment of the note or other evidence of the insured loan by the insurance beneficiary. If the net recovery made by the Secretary on a loan after deduction of the cost of that recovery (including reasonable administrative costs) exceeds the amount of the loss, the excess shall be paid over to the insured. "(c) Nothing in this section or in this subpart shall be construed to preclude any forbearance for the benefit of the student borrower which may be agreed upon by the parties to the insured loan and approved by the Secretary or to preclude forbearance by the Secretary in the enforcement of the insured obligation after payment on that insurance. "(d) Nothing in this section or in this subpart shall be construed to excuse the holder of a federally insured loan from exercising reasonable care and diligence in the making of loans under the provisions of this subpart and from exercising a substantial effort in the collection of loans under the provisions of this subpart. If the Secretary, after reasonable notice and opportunity for hearing to an eligible lender, finds that the lender has failed to exercise such care and diligence, to exercise such substantial efforts, to make the reports and statements required under section 732(a)(3), or to pay the required Federal loan insurance premiums, ne shall disqualify that lender from obtaining further Federal insurance on loans granted pursuant to this subpart until he is satisfied that its failure has ceased and finds that there is reasonable assurance that the lender will in the future exercise necessary care and diligence, exercise substantial effort, or comply with such requirements, as the case may be. " (e) As used in this section— "(1) the term 'insurance beneficiary' means the insured or its authorized assignee in accordance with section 732(d); "(2) the term 'amount of the loss' means, with respect to a loan, the unpaid balance of the principal amount and interest on such loan; and "(3) the term 'default' includes only such defaults as have existed for (A) 120 days in the case of a loan which is repayable in monthly installments, or (B) 180 days in the case of a loan which is repayable in less frequent installments. "(f) The Secretary may, after notice and opportunity for a hearing, cause to be reduced Federal reimbursements or payments for health services under any Federal law to borrowers who are practicing their professions and have defaulted on their loans insured under this subpart in amounts up to the remaining balance of such loans. "(g) A debt which is a loan insured under the authority of this subpart may be released by a discharge in bankruptcy under title 11 of

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/795

 PUBLIC LAW 94-484—OCT. 12, 1976

90 STAT. 2263

the United States Code only if such discharge is granted after the expiration of the five-year period beginning on the first date, as specified in section 7 3 1 (a)(2)(B), when repayment of such loan is required.

11 USC letseq.

"STUDENT LOAN INSURANCE FUND

" SEC. 734. (a) The r e is hereby established a student loan insurance Establishment. fund (hereinafter in this section referred to as the 'fund') which shall 42 USC 294g. be available without fiscal year limitation to the Secretary for making payments in connection with the default of loans insured by him under this subpart. All amounts received by the Secretary as premium charges for insurance and as receipts, earnings, or proceeds derived from any claim or other assets acquired by the Secretary in connection with his operations under this subpart, and any other moneys, property, or assets derived by the Secretary from his operations in connection with this section, shall be deposited in the fund. All payments in connection with the default of loans insured by the Secretary under this subpart shall be paid from the fund. Moneys in the fund not needed for current operations under this section may be invested in bonds or other obligations guaranteed as to principal and interest by the United States. " (b) I f at any time the moneys in the fund are insufficient to make payments in connection with the default of any loan insured by the Secretary under this subpart, the Secretary is authorized to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Secretary with the approval of the Secretary of the Treasury, but only in such amounts as may be specified from time to time in appropriation Acts. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury shall purchase any notes and other obligations issued hereunder and for that purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which 31 USC 774, securities may be issued under that Act, as amended, are extended to include any purchase of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by h i m under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obliations shall be treated as public debt transactions of the United tates. Sums borrowed under this subsection shall be deposited in the fund and redemption of such notes and obligations shall be made by the Secretary from such fund.

§

"POWERS AND RESPONSIBILITIES

" SEC. 735. (a) I n the performance of, and with respect to, the functions, powers, and duties vested in him by this subpart, the Secretary may— " (1) prescribe such regulations as may be necessary to c a r r y out the purposes of this subpart; " (2) sue and be sued in any district court of the United States, and such district courts shall have jurisdiction of civil actions arising under this subpart without regard to the amount in con-

42 USC 294h. Regulations, Civil actions, Jurisdiction,

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/796

 90 STAT. 2264

Budget program. 31 USC 841 note.

Contract.

Post, p. 2285. Post, p. 2270.

PUBLIC LAW 94-484—OCT. 12, 1976

troversy, and any action instituted under this subsection by or against the Secretary shall survive notwithstanding any change in the person occupying the office of Secretary or any vacancy in that office. No attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Secretary or property under his control, and nothing herein shall be construed to except litigation arising out of activities under this subpart from the application of sections 517 and 547 of title 28 of the United States Code; "(3) include in any contract for Federal loan insurance such terms, conditions, and convenants relating to repayment of principal and payment of interest, relating to his obligations and rights and to those of eligible lenders, and borrowers in case of default, and relating to such other matters as the Secretary determines to be necessary to assure that the purposes of this subpart will be achieved; and any term, condition, and covenant made pursuant to this clause or any other provisions of this subpart may be modified by the Secretary if he determines that modification is necessary to protect the financial interest of the United States; "(4) subject to the specific limitations in the subpart, consent to the modification, with respect to rate of interest, time of payment of any installment of principal and interest or any portion thereof, or any other provision of any note or other instrument evidencing a loan which has been insured by him under this subpart; and " (5) enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right or redemption. "(b) The Secretary shall, with respect to the financial operations arising by reason of this subpart— " (l) prepare annually and submit a budget program as provided for wholly owned Government corporations by the Government Corporation Control Act; and "(2) maintain with respect to insurance under this subpart an integral set of accounts. "(c)(1) The Secretary may enter into a written contract with a borrower under which the Secretary agrees to assume the obligation of paying an amount, not to exceed $10,000 in any 12-month period, toward the principal and interest due on any loan made to the borrower and insured under this subpart and the borrower agrees to serve, either as a member of the National Health Service Corps or in private practice pursuant to section 753 (as determined by the Secretary), in a health manpower shortage area (designated under section 332) which is described in clauses (A) and (B) of section 753(a)(2) for a continuous period of (A) not less than 12 months for each 12-month period the Secretary assumes such obligation under the agreement, or (B) 24 months, whichever is greater. "(2) Except as provided in paragraphs (3) and (4), if an individual, who has entered into a written contract under paragraph (1), for any reason breaches his contract obligations with respect to serving in a health manpower shortage area for the period specified in the agreement, the United States shall be entitled to recover damages from such individual in an amount equal to three times the amount paid by the Secretary under the agreement to or on behalf of such individual. Any amount of damages which the United States is entitled to recover under this paragraph shall be paid to the United States not later than one year after the date of the breach of such contract obligations.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/797

 PUBLIC LAW 94-484—OCT. 12, 1976

90 STAT. 2265

" (3) The United States shall not be entitled to recover any damages Recovery from an individual under paragraph (2) upon the death of the individual. "(4) The Secretary shall by regulation provide for the waiver or Waiver. suspension of payment of any or all of the damages to which the Regulation. United States is entitled under paragraph (2) whenever the Secretary determines that compliance by an individual with the agreement which was breached is impossible or would involve extreme hardship to the individual and that recovery of such damages with respect to the individual would be unconscionable. "PARTICIPATION BY FEDERAL CREDIT UNIONS I N FEDERAL, STATE, AND PRIVATE STUDENT LOAN INSURANCE PROGRAMS

"SEC. 736. Notwithstanding any other provision of law, Federal 42 USC 294i,. credit unions shall, pursuant to regulations of the Director of the Regulations. Bureau of Federal Credit Unions, have power to make insured loans to eligible students in accordance with the provisions of this subpart relating to Federal insured loans. ((DEFINITIONS 42 USC 294j. "SEC. 737. As used in this subpart: "(1) The term 'eligible institution' means, with respect to a fiscal year, a school of medicine, osteopathy, dentistry, optometry, pharmacy, podiatry, veterinary medicine, and public health within the United States that is receiving, or the Secretary determines is eligible Post, p. 2290,. to receive, a grant under section 770 for such fiscal year. "(2) The term 'school of medicine, osteopathy, or dentistry, optometry, pharmacy, podiatry, veterinary medicine, and public health' means any school legally authorized within a State to train members of the professions indicated and accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education, except that a new school which (by reason of no, or an insufficient, period of operation) is not, at the time of application for insurance for a loan under this subpart, eligible for accreditation by such a recognized body or bodies, shall be deemed accredited for purposes of this part if the Commissioner of Education finds, after consultation with the appropriate accreditation body or bodies, that there is reasonable assurance that the school will meet the accreditation standards of such body or bodies prior to the beginning of the academic year following the normal graduation date of the first entering class in such school. "(3) The term 'eligible lender' means an eligible institution, an agency or instrumentality of a State, a financial or credit institution (including an insurance company) which is subject to examination and supervision by an agency of the United States or of any State, or a pension fund approved by the Secretary for this purpose. "(4) The term 'line of credit' means an arrangement or agreement between the lender and the borrower whereby a loan is paid out by the lender to the borrower in annual installments, or whereby the lender agrees to make, in addition to the initial loan, additional loans in subsequent years. " R E P A Y M E N T BY THE SECRETARY OF LOANS OF DECEASED OR DISABLED BORROWERS

"SEC. 738. If a student borrower who has received a loan dies or 42 USC 294k. becomes permanently and totally disabled (as determined in accord-

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/798

 90 STAT. 2266

PUBLIC LAW 94-4«4—OCT. 12, 1976 ance with regulations of the Secretary), the Secretary shall discharge the borrower's liability on the loan by repaying the amount owed on the loan from the fund established under section 734. ii^

ELIGIBILITY OF INSTITUTIONS

Regulations. 42 USC 294/.

"SEC. 739. (a) Notwithstanding any other provision of this subpart, the Secretary is authorized to prescribe such regulations as may be necessary to provide for— "(1) a fiscal audit of an eligible institution with regard to any funds obtained from a student who has received a loan insured under this subpart; "(2) the establishment of reasonable standards of financial responsibility and appropriate institutional capability for the administration by an eligible institution of a program of student financial aid with respect to funds obtained from a student who has received a loan insured under this subpart; and "(3) the limitation, suspension, or termination of the eligibility under this subpart of any otherwise eligible institution, whenever the Secretary has determined, after notice and affording an opportunity for hearing, that such institution has violated or failed to carry out any regulation prescribed under this subpart. "(b) The Secretary shall by regulation— "(1) require an eligible institution to record, and make available to a lender and to the Secretary upon request, the name, address, postgraduate destination, and other reasonable identifying information for each student of such institution who has a loan insured under this subpart; and "(2) in the case of an eligible institution which is a school of medicine, osteopathy, or dentistry, require such institution to establish procedures to insure that no more than 50 percent of the students in each class in the institution are authorized to have loans insured under this subpart.". STUDENT LOAN

42 USC 294, 294m.

20 use401 note.

SEC. 402. Section 740 is amended— (1) by striking out "of Health, Education, and Welfare" in subsection (a); (2) by striking out ", except as provided in section 746," in paragraphs (2) and (3) of subsection (b); (3) by striking out ", and that while the agreement remains in effect" and all that follows through "National Defense Education Act of 1958; and" in subsection (b)(4) and inserting in lieu thereof a semicolon; and (4) by redesi^ating paragraph (5) of subsection (b) as paragraph (6), and inserting after paragraph (4) of such subsection the following new paragraph: " (5) provide that the school shall advise, in writing, each applicant for a loan from the student loan fund of the provisions of section 741 under which outstanding loans from the student loan fund may be paid (in whole or in part) by the Secretary; and". LOAN

42 USC 294a, 294n.

AGREEMENTS

PROVISIONS

SEC. 403. (a) Subsection (a) of section 741 is amended to read as follows:

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/799

 PUBLIC LAW 94-484—OCT. 12, 1976 "(a) Loans from a student loan fund (established under an agreement with a school under section 740) may not exceed for any student for each school year (or its equivalent) the sum of— " (1) the cost of tuition for such year at such school, and "(2) $2,500.". (b) Subsection (e) of section 741 is amended by striking out ''3 per centum" and inserting in lieu thereof "7 percent". (c) The amendments made by subsections (a) and (b) shall apply with respect to loans made after September 30, 1977, from student loan funds established under section 740 of the Public Health Service Act. (d) Subsection (f)(1)(B) of section 741 is amended to read as follows: "(B) who obtained one or more loans from a loan fund established under this subpart; and". (e) In the case of any individual who, on or after November 18, 1971, and before the date of enactment of this Act, met the requirements of subparagraphs (A) and (B) of section 741(f)(1) of the Public Health Service Act and who practiced his profession in an area described in subparagraph (C) of such section (as in effect before the date of the enactment of this Act) as a member of the National Health Service Corps or as an officer of the Regular or Reserve Corps of the Public Health Service or as a civilian employee of the Public Health Service, the individual shall, for purposes of section 741(f) of such Act, be deemed to have entered into the agreement required by such subparagraph (C) with respect to that practice if such individual makes application to the Secretary, not later than January 1, 1977, for payment by the Secretary under section 741(f)(2) of such Act. (f) A student in a school of medicine or osteopathy who will graduate from such school after June 30, 1979, shall be eligible to receive a loan under section 741 of the Public Health Service Act after October 1, 1977 only if such student is of exceptional financial need (as defined by regulations of the Secretary).

90 STAT. 2267 Ante, p. 2266.

42 USC 294a, 294n. 42 USC 294n note.

42 USC 294n note-

42 USC 294n note^ ^

AUTHORIZATION o r APPROPRIATIONS

SEC. 404. Effective October 1, 1977, subsection (a) of section 742 is 42 USC 294b, amended to read as follows: 294o. "(a) For the purpose of making Federal capital contributions into the student loan funds of schools which have established such funds under section 740, there are authorized to be appropriated $26,000,000 for the fiscal year ending September 30, 1978, $27,000,000 for the fiscal year ending September 30, 1979, and $28,000,000 for the fiscal year ending September 30, 1980. For the fiscal year ending September 30, 1981, and each of the two succeeding fiscal years, there are authorized to be appropriated to the Secretary such sums as may be necessary to enable students who have received a loan under this part for any academic year ending before October 1, 1980, to continue or complete their education.". DISTRIBUTION OF ASSjiTS

SEC. 405. Section 743 is amended by striking out "June 30, 1977" 42 USC 294c, and "September 30, 1977" each place they occur and inserting in lieu 294p. thereof "September 30, 1983" and "December 31, 1983", respectively.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/800

 90 STAT. 2268

PUBLIC LAW 94-484—OCT. 12, 1976 LOANS TO SCHOOLS AND TECHNICAL AND CONFORMING AMENDMENTS

Repeal. 42 USC 294d, 294f. 42 USC 294d, 294q. 42 USC 294q note.

Appropriation authorization. 42 USC 294q note. .42 USC 294b, 294o. 42 USC 294c, 294p.

SEC. 406. (a)(1) Sections 744 and 746 are repealed. (2) Section 745 is redesignated as section 744. (b) The health professions education fund created within the Treasury by section 744(d)(1) of the Public Health Service Act (as in effect before the date of enactment of this Act) shall remain available to the Secretary of Health, Education, and Welfare for the purpose of meeting his responsibilities respecting participations in obligations acquired under such section. The Secretary shall continue to deposit in such fund all amounts received by him as interest payments or repayments of principal on loans under such section 744. If at any time the Secretary determines the moneys in the fund exceed the present and any reasonable prospective future requirements of such fund, such excess may be transferred to the general fund of the Treasury. (c) There are authorized to be appropriated without fiscal year limitation such sums as may be necessary to enable the Secretary to make payments under agreements entered into under section 744(b) of the Public Health Service Act before September 30, 1977. (d) Section 742(b) is amended (1) by striking out ", and for loans pursuant to section 744" in paragraph (1), and (2) by striking out "whether as Federal capital contributions or as loans to schools under section 744" in paragraph (3). (e) Section 743,(b) is amended by striking o u t " (other than so much of such fund as relates to payments from the revolving fund established by section 744(d)) ". REVISION OF NATIONAL HEALTH SERVICE CORPS PROGRAM

SEC. 407. (a) Part C of title III is amended by inserting immediately below the heading for such part the following: " Subpart I—General Provisions". 42 USC 254b. 42 USC 255, 256.

(b) Title III is amended— ^ 1) by striking out section 329; (2) by redesignating sections 331 and 332 as sections 339 and 340, respectively; and (3) by inserting immediately after section 330 the following new subpart: " Subpart II — National Health Service Corps Program "NATIONAL H E A L T H SERVICE CORPS

Establishment. 42 USC 254d.

" SEC. 331. (a) There is established, within the Service, the National Health Service Corps (hereinafter in this subpart referred to as the 'Corps') which (1) shall consist of such officers of the Regular and Reserve Corps of the Service and such civilian personnel as the Secretary may designate (such officers and personnel hereinafter in this subpart referred to as 'Cor^s members') and (2) shall be utilized by the Secretary to improve the delivery of health services in health manpower shortage areas as defined in section 3 3 2 (a). " (b) The Secretary shall conduct at schools of medicine, osteopat h y, dentistry, and, as appropriate, nursing and other schools of the health professions and at entities which t r a i n allied health personnel, recruiting programs for the Corps and the Scholarship Program.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/801

 PUBLIC LAW 94-484—OCT. 12, 1976 "(c) The Secretary may reimburse applicants for positions in the Corps for actual and reasonable expenses incurred in traveling to and from their places of residence to a health manpower shortage area (designated under section 332) in which they may be assigned for the purpose of evaluating such area with regard to being assigned in such area. The Secretary shall not reimburse an applicant for more than one such trip. "(d)(1) The Secretary may, under regulations promulgated by the Secretary, adjust the monthly pay of each member of the Corps who is directly engaged in the delivery of health services in a health manpower shortage area as follows: "(A) During the first 36 months in which such a member is so engaged in the delivery of health services, his monthly pay shall be increased by an amount (not to exceed $1,000) which when added to the member's monthly pay and allowances will provide a monthly income competitive with the average monthly income from a practice of an individual who is a member of the profession of the Corps member, who has equivalent training, and who has been in practice for a period ejjuivalent to the period during which the Corps member has been in practice. "(B) During the period beginning upon the expiration of the 36 months referred to in subparagraph (A) and ending with the month in which the member's monthly pay and allowances are equal to or exceed the monthly income he received for the last of such 36 months, the member shall receive in addition to his monthly pay and allowances an amount which when added to such monthly pay and allowances equals the monthly income he received for such last month. "(C) For each month in which a member is directly engaged in the delivery of health services in a health manpower shortage area in accordance with an agreement with the Secretary entered into under section 741(f)(1)(C), under which the Secretary is obligated to make payments in accordance with section 741 (f)(2), the amount of any monthly increase under subparagraph (A) or (B) with respect to such member shall be decreased by an amount equal to one-twelfth of the amount which the Secretary is obligated to pay upon the completion of the year of practice in which such month occurs. For purposes of subparagraphs (A) and (B), the term 'monthly pay' includes special pay received under chapter 5 of title 37 of the United States Code. " (2) In the case of a member of the Corps who is directly engaged in the delivery of health services in a health manpower shortage area in accordance with a service obligation incurred under the Scholarship Program, the adjustment in pay authorized by paragraph (1) may be made for such a member only upon satisfactory completion of such service obligation, and the first 36 months of such member's being so engaged in the delivery of health services shall, for purposes of paragraph (1)(A), be deemed to begin upon such satisfactory completion. "(e) Corps members assigned under section 333 to provide health services in health manpower shortage areas shall not be counted against any employment ceiling affecting the Department. "(f) Sections 214 and 216 shall not apply to members of the National Health Service Corps during their period of obligated service under the Scholarship Program. "(g) The administrative unit which administers section 770—

89-194 O—78—pt. 2

51

90 STAT. 22(S9

42 USC 294a.

"Monthly pay." 37 USC 301 et

42 USC 215, 217. Post, p. 2290.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/802

 90 STAT. 2270

Definitions.

PUBLIC LAW 94-4S4—OCT. 12, 1976 "(1) shall participate in the development of regulations, guidelines, funding priorities, and application forms, and "(2) shall be consulted by, and may make recommendations to, the Secretary in the review of applications and proposals for, and the awarding of, grants and contracts, with respect to the Corps. "(h) For the purposes of this subpart: "(1) The term 'Department' means the Department of Health, Education, and Welfare. "(2) The term 'Scholarship Program' means the National Health Service Corps Scholarship Program established under section 751. "(3) The term 'State' includes, in addition to the several States, only the District of Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, and the Trust Territory of the Pacific Islands. DESIGNATION OF HEALTH MANPOWER SHORTAGE AREAS

"Health manpower shortage area.' 42 USC 254e.

"SEC. 332. (a)(1) For purposes of this subpart the term 'health manpower shortage area' means (A) an area in an urban or rural area (which need not conform to the geographic boundaries of a political subdivision and which is a rational area for the delivery of health services) which the Secretary determines has a health manpower shortage, (B) a population group which the Secretary determines has such a shortage, or (C) a public or nonprofit private medical facility or other public facility which the Secretary determines has such a shortage. "Medical "(2) For purposes of this subsection, the term 'medical facility' facility." means a facility for the delivery of health services and includes— "(A) a hospital. State mental hospital, public health center, outpatient medical facility, rehabilitation facility, facility for long-term care, community mental health center, migrant health center, and community health center; "(B) such a facility of a State correctional institution or of the Indian Health Service; "(C) such a facility used in connection with the delivery of 42 USC 248,249. health services under sections 321 (relating to hospitals), 322 (re42 USC 250. lating to care and treatment of seamen and others), 323 (relating 42 USC 251. to care and treatment of Federal prisoners), 324 (relating to 42 USC 252. examination and treatment of certain Federal employees), 325 42 USC 253. (relating to examination of aliens), or 326 (relating to services to certain Federal employees), or pait D of title III (relating to 42 USC 255. services for persons with Hansen's disease); and "(D) a Federal medical facility. "(b) The Secretary shall establish by regulation, promulgated not Regulation. later than May 1, 1977, criteria for the designation of areas, population groups, medical facilities, and other public facilities, in the States, as health manpower shortage areas. In establishing such criteria, the Secretary shall take into consideration the following: "(1) The ratio of available health manpower to the number of individuals in an area or population group, or served by a medical facility or other public facility under consideration for designation. "(2) Indicators of a need, notwithstanding the supply of health manpower, for health services for the individuals in an area or population group or served by a medical facility or other

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/803

 PUBLIC LAW 94-484—OCT. 12, 1976 public facility under consideration for designation, with special consideration to indicators of— " (A) infant mortality, "(B) access to health services, and "(C) health status. "(3) The percentage of physicians serving an area, population group, medical facility, or other public facility under consideration for designation who are employed by hospitals and who are graduates of foreign medical schools. "(c) In determining whether to make a designation, the Secretary shall take into consideration the following: "(1)(A) The recommendations of each health systems agency (designated under section 1515) for a health service area which includes all or any part of the area, population group, medical facility, or other public facility under consideration for designation. "(B) The recommendations of the State health planning and development agency (designated under section 1521) if such area, population group, medical facility, or other public facility is within a health service area for which no health systems agency has been designated. "(2) The recommendations of the Governor of each State in which the area, population group, medical facility, or other public facility under consideration for designation is in whole or part located. "(d) In accordance with the criteria established under subsection (b) and the considerations listed in subsection (c), the Secretary shall designate, not later than November 1, 1977, health manpower shortage areas in the States, publish a descriptive list of the areas, population groups, medical facilities, and other public facilities so designated, and at least annually review and, as necessary, revise such designations. "(e) Prior to the designation of a public facility, including a Federal medical facility, as a health manpower shortage area, the Secretary shall give written notice of such proposed designation to the chief administrative officer of such facility and request comiments within 30 days with respect to such designation. "(f) The Secretary shall give written notice of the designation of a health manpower shortage area, not later than 60 days from the date of such designation, to— "(1) the Governor of each State in which the area, population group, medical facility, or other public facility so designated is in whole or part located; "(2)(A) each health systems agency (designated under section 1515) for a health service area which includes all or any part of the area, population group, medical facility, or other public facility so designated; or " (B) the State health planning and development agency of the State (designated under section 1521) if there is a part of such area, population group, medical facility, or other public facility within a health service area for which no health systems agency has been designated; and " (3) appropriate public or nonprofit private entities which are located or which have a demonstrated interest in the area so designated. "(g) Any person may recommend to the Secretary the designation of an area, population group, medical facility, or other public facility as a health manpower Mortage area.

90 STAT. 2271

Recommendations.

42 USC 300/-^!..

42 USC 300m.

List, publication.

Notice,

Notice,

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/804

 90 STAT. 2272

PUBLIC LAW 94-484—OCT. 12, 1976 "(h) The Secretary shall conduct such information programs in areas, among population groups, and in medical facilities and other public facilities designated under this section as health manpower shortage areas as may be necessary to inform public and nonprofit private entities which are located or have a demonstrated interest in such areas of the assistance available under this title by virtue of the designation of such areas. u ASSIGNMENT OF CORPS PERSONNEL

Regulations. 42 USC 254f.

Application.

42 USC 300/-4.

"SEC. 333. (a)(1) The Secretary may assign members of the Corps to provide, under regulations promulgated by the Secretary, health services in or to a health manpower shortage area during the assignment period (specified in the agreement described in section 334) only if— "(A) a public or nonprofit private entity, which is located or has a demonstrated interest in such area makes application to the Secretary for such assignment; "(B) such application has been approved by the Secretary; "(C) an agreement has been entered into between the entity which has applied and the Secretary, in accordance with section 334; and "(D) in the case of an application made by an entity which has previously been assigned a Corps member for a health manpower shortage area under an agreement (entered into under section 334) or under section 329 as in effect before October 1, 1977) which has expired, the Secretary has (i) conducted an evaluation of the continued need for health manpower for the area, the use of Corps members previously assigned to the area, community support for the assignment of Corps members to the area, the area's efforts to secure health manpower for the area, and fiscal management by the entity with respect to Corps members previously assigned and (ii) on the basis of such evaluation has determined that— " (I) there is a continued need for health manpower for the area; " (II) there has been appropriate and efficient use of Corps members previously assigned to the entity for the area; " ( III) there is general community support for the assignment of Corps members to the entity; " ( IV) the area has made continued efforts to secure health manpower for the area; and "(V) there has been sound fiscal management, including efficient collection of fee-for-service, third-party, and other appropriate funds, by the entity with respect to Corps members previously assigned to such entity. "(2) Corps members may be assigned to a Federal health care facility, but only upon the request of the head of the department or agency of which such facility is a part. "(b) The Secretary may not approve an application under this section for assignment of a Corps member to a health manpower shortage area unless the Secretary has afforded— "(1) each health systems agency (designated under section 1515) for a health service area which includes all or part of the area in which the area, population group, medical facility, or other public facility so designated is located, or "(2) if there is a part of such area, population group, medical facility, or other piiblic facility located within a health service

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/805

 PUBLIC LAW 94-484—OCT. 12, 1976 area for which no health systems agency has been designated, the State health planning and development agency (designated under section 1521) of the State in which such part is located, an opportunity to review the application and submit to the Secretary its comments respecting the need for, and proposed use of, the Corps member requested in the application. "(c) In considering, and giving approval to, applications made under this section for the assignment of Corps members, the Secretary shall— "(1) give priority to an application which provides for the assignment of Corps members to an area, population group, medical facility, or other public facility with the greatest health manpower shortage, as determined under criteria established under section 332(b); "(2) give special consideration to an application which provides for the use of physician assistants, nurse practitioners, or expanded function dental auxiliaries; "(3) take into consideration the willingness of individuals in the area or population group, or at the medical facility or other public facility, and of the appropriate governmental agencies or health entities, to assist and cooperate with the Corps in providing effective health services; and "(4) take into consideration comments of medical, osteopathic, dental, or other health professional societies serving the area, population group, medical facility, or other public facility, or, if no such societies exist, comments of physicians, dentists, or other health professionals serving the area, population group, medical facility, or other public facility. "(d) The Secretary shall assign Corps members to entities in health manpower shortage areas without regard to the ability of the individuals in such areas, population groups, medical facilities, or other public facilities to pay for such services. "(e) In making the assignment of a Corps member to an entity in a health manpower shortage area which has had an application approved under this section, the Secretary shall seek to assign to an area a Corps member who has (and whose spouse, if any, has) those characteristics which are characteristics which increase the probability of the member's remaining to serve the area upon completion of his assignment period. "(f)(1) The Secretary shall provide technical assistance to a public or nonprofit private entity which is located or has a demonstrated interest in a health manpower shortage area and which desires to make an application under this section for assignment of a Corps member to such area. "(2) The Secretary shall provide, to public and nonprofit private entities which are located or have a demonstrated interest in a health manpower shortage area to which area a Corps member has been assigned, technical assistance to assist in the retention of such member in such area after the completion of such member's assignment to the area. " (3) The Secretary shall provide, to health manpower shortage areas to which no Corps member has been assigned, (A) technical assistance to assist in the recruitment of health manpower for such areas, and (B) current information on public and private programs which provide assistance in the securing of health manpower. "(g) The Secretary shall conduct, or enter into contracts for the conduct of, studies of the methods of assignments of Corps members

90 STAT. 2273

42 USC 300m.

Contracts; studies.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/806

 90 STAT. 2274

PUBLIC LAW 94-484-OCT. 12, 1976 to health manpower shortage areas. Such studies shall include studies of— " Q) the characteristics of physicians, dentists, and other health proiessionals who are more likely to remain in practice in health manpower shortage areas; "(2) the characteristics, including utilization and reimbursement patterns, of areas which have been able to retain health manpower personnel; and "(3) the appropriate conditions for the assignment and use of nurse practitioners, physician assistants, and expanded function dental auxiliaries in health manpower shortage areas. "(h) Notwithstanding any other law, any member of the Corps licensed to practice medicine, osteopathy, or dentistry in any State shall, while serving in the Corps, be allowed to practice such profession in any State. "COST SHARING

42 USC 254g.

"SEC. 334. (a) The Secretary shall require, as a condition to the approval of an application under section 333, that the entity which submitted the application enter into an agreement for a specific assignment period (not to exceed 4 years) with the Secretary under which— "(1) the entity shall be responsible for charging, in accordance with subsection (d), for health services provided by Corps members assigned to the entity; "(2) the entity shall take such action as may be reasonable for the collection or payments for such health services, including, if a Federal agency, an agency of a State or local government, or other third party would be responsible for all or part of the cost of such health services if it had not been provided by Corps members under this subpart, the collection, on a fee-for-service or other basis, from such agency or third party, the portion of such cost for which it would be so responsible (and in determining the amount of such cost which such agency or third party would be responsible, the health services provided by Corps members shall be considered as being provided by private practitioners); " ^) the entity shall pay to the United States, as prescribed by the Secretary in each calendar quarter (or other period as may be specified in the agreement) during which any Corps member is assigned to such entity, the sum of— " (A) the portion of the salary (including amounts paid in accordance with section 331(d)) and allowances of any Corps member received by such member during such calendar quarter (or other period) while such member was assigned to such entity; " (B) for any Corps member assigned to such entity, an amount which bears the same ratio to the amount paid under the Scholarship Program to or on the behalf of such Corps member as the number of days of obligated service provided by such member during such quarter (or other period) bears to the number of days in his period of obligated service under such Program; and "(C) it such entity received a loan under section 335(c), an amount which bears the same ratio to the amount of such loan as the number of days in such quarter (or other period) during which any Corps members were assigned to the entity bears to the number of days in the assignment period after such entity received such loan; and

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/807

 PUBLIC LAW 94-484—OCT. 12, 1976 "(4) the entity shall prepare and submit to the Secretary an annual report, in such form and manner, as the Secretary may require. "(b)(1) The Secretary may waive in whole or in part the application of the requirement of subsection (a)(3) for an entity if he determines that the entity is financially unable to meet such requirement or if he determines that compliance with such requirement would unreasonably limit the ability of the entity to provide for the adequate support of the provision of health services by Corps members. "(2) The Secretary may waive in whole or in part the application of the requirement of subsection (a)(3) for any entity which is located in a health manpower shortage area in which a significant percentage of the individuals are elderly, living in poverty, or have other characteristics which indicate an inability to repay, in whole or in part, the amounts required in subsection (a)(3). "(3) In the event that the Secretary grants a waiver under paragraph (1) or (2), the entity shall be required to use the total amount of funds collected by such entity in accordance with subsection (a)(2) for the improvement of the capability of such entity to deliver health services to the individuals in, or served by, the health manpower shortage area. "(c) The excess (if any) of the amount of funds collected by an entity in accordance with subsection (a)(2) over the amount paid to the United States in accordance with subsection (a)(3) shall be used by the entity to expand and improve the provision of health services to the individuals in the health manpower shortage area for which the entity submitted an application or to recruit and retain health manpower to provide health services for such individuals. "(d) Any person who receives health services provided by a Corps member under this subpart shall be charged for such services on a feefor-service or other basis, at a rate approved by the Secretary, pursuant to regulations. Such rate shall be computed in such a way as to permit the recovery of the value of such services, except that if such person is determined under regulations of the Secretary to be unable to pay such charge, the Secretary shall provide for the furnishing of such services at a reduced rate or without charge. "(e) Funds received by the Secretary under an agreement entered into under this section shall be deposited in the Treasury as miscellaneous receipts and shall be disregarded in determining the amounts of appropriations to be requested and the amounts to be made available from appropriations made under section 338 to carry out this subpart.

90 STAT. 2275

Waiver.

Waiver.

u PROVISION OF HEALTH SERVICES BY CORPS MEMBERS

"SEC. 335. (a) I n providing health services in a health manpower 42 USC 254h. shortage area. Corps members shall utilize the techniques, facilities, and organizational forms most appropriate for the area, population group, medical facility, or other public facility, and shall, to the maximum extent feasible, provide such services (1) to all individuals in, or served by, such health manpower shortage area regardless of their ability to pay for the services, and (2) in connection with (A) direct health services programs carried out by the Service, (B) any other direct health services program carried out in whole or in part with Federal financial assistance, or (C) any other health services activity which is in furtherance of the purposes of this subpart.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/808

 90 STAT. 2276

Loan.

Equipment sales.

Fair market value.

Notice and hearing.

42 USC 1395, 1396. "Hospital."

PUBLIC LAW 94-484—OCT. 12, 1976 "(b)(1) Notwithstanding any other provision of law, the Secretary may (A) to the maximum extent feasible make such arrangements as he determines necessary to enable Corps members to utilize the health facilities in or serving the health manpower shortage area in providing health services; (B) make such arrangements as he determines are necessary for the use of equipment and supplies of the Service and for the lease or acquisition of other equipment and supplies; and (C) secure the permanent or temporary services of physicians, dentists, nurses, administrators, and other health personnel. If there are no health facilities in or serving such area, the Secretary may arrange to have Corps members provide health services in the nearest health facilities of the Service or may lease or otherwise provide facilities in or serving such area for the provision of health services. "(2) If the individuals in or served by a health manpower shortage area are being served (as determined under regulations of the Secretary) by a hospital or other health care delivery facility of the Service, the Secretary may, in addition to such other arrangements as he may make under paragraph (1), arrange for the utilization of such hospital or facility by Corps members in providing health services, but only to the extent that such utilization will not impair the delivery of health services and treatment through such hospital or facility to individuals who are entitled to health services and treatment through such hospital or facility. "(c) The Secretary may make one loan to any entity with an approved application under section 333 to assist such entity in meeting the costs of (1) establishing medical, dental, or other health profession practices, including the development of medical practice management systems; (2) acquiring equipment for use in providing health services; (3) renovating buildings to establish health facilities; and (4) establishing appropriate continuing education programs. No loan may be made under this subsection unless an application therefor is submitted to, and approved by, the Secretary. The amount of any such loan shall be determined by the Secretary, except that no such loan may exceed $50,000. "(d) Upon the expiration of the assignment of all Corps members to a health manpower shortage area, the Secretary may (notwithstanding any other provision of law) sell, to any appropriate local entity, equipment and other property of the United States utilized by such members in providing Jiealth services. Sales made under this subsection shall be made at the fair market value (as determined by the Secretary) of the equipment or such other property; except that the Secretary may make such sales for a lesser value to an appropriate local entity, if he determines that the entity is financially unable to pay the full market value. "(e)(1)(A) It shall be unlawful for any hospital to deny an authorized physician or dentist member of the Corps admitting privileges when such Corps member otherwise meets the professional qualifications established by the hospital for granting such privileges and agrees to abide by the published bylaws of the hospital and the published bylaws, rules, and regulations of its medical staff. "(B) Any hospital which is found by the Secretary, after notice and an opportunity for a hearing on the record, to have violated this subsection shall upon such finding cease, for a period to be determined by the Secretary, to receive and to be eligible to receive any Federal funds under this Act or under titles X VIII or X IX of the Social Security Act. "(2) For purposes of this subsection, the term 'hospital' includes a State or local pul^lic hospital, a private profit hospital, a private non/

.

•

.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/809

 PUBLIC LAW 94-484—OCT. 12, 1976

90 STAT. 2277

profit hospital, a general or special hospital, and any other type of hospital (excluding a hospital owned or operated by an agency of the Federal Government), and any related facilities. " A N N U A L REPORTS

"SEC. 336. The Secretary shall submit an annual report to Congress Report to on May 1 of each year, and shall include in such report with respect Congress. 42 USC 254i. to the previous calendar year— "(1) the number, identity, and priority of all health manpower shortage areas designated m such year and the number of health manpower shortage areas which the Secretary estimates will be designated in the subsequent year; " (2) the number of applications filed under section 333 in such year for assignment of Corps members and the action taken on each such application; "(3) the number and types of Corps members assigned in such year to health manpower shortage areas, the number and types of additional Corps members which the Secretary estimates will be assigned to such areas in the subsequent year, and the need for additional members for the Corps; "(4) the recruitment efforts engaged in for the Corps in such year and the number of qualified individuals who applied for service in the Corps in such year; "(5) the number of patients seen and the number of patient visits recorded during such year with respect to each health manpower shortage area to which a Corps member was assigned during such year; {&) the number of Corps members who elected, and the number 01 Corps members who did not elect, to continue to provide health services in health manpower shortage areas after termination of their service in the Corps and the reasons (as reported to the Secretary) of members who did not elect for not making such election; "(7) the results of evaluations and determinations made under section 333(a)(1)(D) during such year; and "(8) the amount charged during such year for health services provided by Corps members, the amount which was collected m such year by entities in accordance with agreements under section 334, and the amount which was paid to me Secretary in such year under such agreements. "NATIONAL ADVISORY COUNCIL

"SEC. 337. (a) There is established a council to be known as the National Advisory Council on the National Health Service Corps (hereinafter in this section referred to as the 'Council'). The Council shall be composed of fifteen members appointed by the Secretary as follows: "(1) Four members shall be appointed from the general public to represent the consumers of health care, at least two of whom shall be individuals who are residents of, members of, or served by Corps members assigned to, a health manpower shortage area. "(2) Three members shall be appointed from medical, dental, and other health professions. "(3) One member shall be appointed from a State health planning and development agency (designated under section 1521),

National Advisory Council on the National Health Service Corps. Establishment, members. 42 USC 254j.

42 USC 300m.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/810

 90 STAT. 2278

PUBLIC LAW 94-484^0CT. 12, 1976

one member shall be appointed from a Statewide Health Coordinating Council (designated under section 1524), and one 42 USC 300m-3. member shall be appointed from a health systems agency (designated under section 1515). 42 USC 300/-4. "(4) Three members shall be appointed from the Service, at least two of whom shall be members of the Corps directly engaged in the provision of health services in a health manpower shortage area. "(5) Two members shall be appointed from the National Council on Health Planning and Development (established under sec42 USC 300k-3. tion 1503). No individual who is a provider of health care (as defined in section 42 USC 300n. 1531(3)) may be appointed as a member of the Council under paragraph (1), (3), or (5). The Council shall consult with, advise, and make recommendations to, the Secretary with respect to his responsibilities in carrying out this subpart, and shall review and comment upon regulations promulgated by the Secretary under this subpart. Term. "(b)(1) Members of the Council shall be appointed for a term of three years, except that any member appointed to fill a vacancy occurring prior to the expiration of the term for which the member's predecessor was appointed shall be appointed for the remainder of such term. No member shall be removed, except for cause. Members may be reappointed to the Council. "(2) Members of the Council (other than members who are officers Travel expenses. or employees of the United States), while attending meetings or conferences thereof or otherwise serving on the business of the Council, shall be entitled to receive for each day (including traveltime) in which they are so serving the daily equivalent of the annual rate of basic pay in effect for grade GS-18 of the General Schedule; and while so serving away from their homes or regular places of business all members may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703(b) of title 5 of the United States Code for persons in the Government Service employed intermittently. 5 USC app. I, "(c) Section 14 of the Federal Advisory Committee Act shall not apply with respect to the Council. "AUTHORIZATION or APPROPRIATION

42 USC 254k.

42 USC 254d note.

"SEC. 338. (a) To carry out the purposes of this subpart, there are authorized to be appropriated $47,000,000 for the fiscal year ending September 30, 1978; $57,000,000 for the fiscal year ending September 30, 1979; and $70,000,000 for the fiscal year ending September 30, 1980. "(b) An appropriation under an authorization under subsection (a) for any fiscal year may be made at any time before that fiscal year and may be included in an Act making an appropriation under an authorization under subsection (a) for another fiscal year; but no funds may be made available from any appropriation under such authorization for obligation under this subpart before the fiscal year for which such appropriation is authorized.". (c)(1) The amendment made by subsections (a) and (b) shall apply only with respect to fiscal years beginning after September 30, 1977, except that the Secretary of Health, Education, and Welfare shall carry out the activities described in section 332 of the Public Health Service Act (as added by such amendment) after the date of enactment of this Act.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/811

 PUBLIC LAW 94-484—OCT. 12, 1976 (2) (A^ Any area for which a designation under section 329(b) of the Public Health Service Act (as in effect on September 30, 1977) was in effect on such date and in which National Health Service Corps personnel were, on such date, providing, under an assignment made under such section (as so in effect), health care and services for persons residing in such area shall, effective October 1, 1977, be considered under subpart II of part C of title III of such Act (as added by subsection (b) of this section) to (i) be designated a health manpower shortage area (as defined by section 332 of such Act (as so added)), and (ii) have had an application approved under section 333 of such Act (as so added) for the assignment of Corps personnel unless, as determined under subparagraph (B) of this paragraph, the assignment period applicable to such area (within the meaning of section 334 (as so added)) has expired. (B) The assignment period (within the meaning of such section 334) applicable to an area described in subparagraph (A) of this paragraph shall be considered to have begun on the date Corps personnel were first assigned to such area under section 329 of such Act (as in effect on September 30, 1977). (C) In the case of any physician or dentist member of the Corps who was providing health care and services on September 30, 1977, under an assignment made under section 329(b) of such Act (as in effect on September 30, 1977), the number of the months during which such member provided such care and services before October 1, 1977, shall be counted in determining the application of the additional pay provisions of section 331(d) of such Act (as added by subsection (b) of this section) to such number. (3) The amendment made by subsection (b) which established an Advisory Council previously established under section 329 of the Public Health Service Act shall not be construed as requiring the establishment of a new Advisory Council under such section 337; and the amendment made by such subsection with respect to the composition of such Advisory Council shall apply with respect to appointments made to the Advisory Council after October 1, 1977, and the Secretary of Health, Education, and Welfare shall make appointments to the Advisory Council after such date in a manner which will brin^ about, at the earliest feasible time, the Advisory Council composition prescribed by the amendment. fd)(1) Section 741(f)(1)(C) is amended by striking out all that follows after "in a State" and inserting in lieu thereof "in a health manpower shortage area designated under section 332:". (2) The amendment made by paragraph (1) shall apply with respect to agreements entered into under section 741(f) of the Public Health Service Act after September 30, 1977. SCHOLARSHIPS AND PUBLIC H E A L T H

90 STAT. 2279

42 USC 294a, ^^'*°42 USC 294n °°*®-

TRAINEESHIPS

SEC. 408. (a) Effective October 1, 1977, part C of title VII is Effective date, amended by adding at the end thereof the following new subpart: "Subpart III—Traineeships for Students in Schools of Public Health and Other Graduate Programs TRAINEESHIPS (<

FOR STUDENTS I N SCHOOLS OF PUBLIC H E A L T H

"SEC. 748. (a) The Secretary may make grants to accredited Grants, schools of public health for traineeships to train students enrolled in 42 USC 294r. such schools.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/812

 90 STAT. 2280 Application.

Appropriation authorization.

PUBLIC LAW 94-484—OCT. 12, 1976 "(b)(1) No grant for traineeships may be made under subsection (a) unless an application therefor has been submitted to, and approved by, the Secretary. Such application shall be in such form, be submitted in such manner, and contain such information, as the Secretary by regulation may prescribe. Traineeships under such a grant shall be awarded in accordance with such regulations as the Secretary shall prescribe. The amount of any such grant shall be determined by the Secretary. "(2) Traineeships awarded under grants made under subsection (a) shall provide for such stipends and allowances (including travel and subsistence expenses and dependency allowances) for the trainees as the Secretary may deem necessary. "(3) In awarding traineeships under this section, each applicant shall assure to the satisfaction of the Secretary that at least the percent specified in paragraph (4) of the funds received under this section shall go to individuals who— "(A)(i) have previously received a postbaccalaureate degree, or "(ii) have three years of work experience in health services; and "(B) are pursuing a course of study in— "(i) biostatistics or epidemiology, "(ii) health administration, health planning, or health policy analysis and planning, "(iii) environmental or occupational health, or "(iv) dietetics or nutrition. "(4) The percent referred to in paragraph (3) is— "(A) 45 percent for grants made for the fiscal year ending September 30, 1978, "(B) 55 percent for grants made for the fiscal year ending September 30, 1979, and "(C) 65 percent for grants made for the fiscal year ending September 30, 1980, and in succeeding fiscal years. "(c) For payments under grants under subsection (a), there are authorized to be appropriated $7,500,000 for the fiscal year ending September 30, 1978: $8,000,000 for the fiscal year ending September 30, 1979; and $9,000,000 for the fiscal year ending September 30, 1980. " T R A I N E E S H I P S FOR STUDENTS IN OTHER GRADUATE PROGRAMS

Grants. 42 USC 2948.

Application. Regulation.

"SEC. 749. (a) The Secretary may make grants to public or nonprofit private educational entities, including graduate schools of social work but excluding accredited schools of puljlic healthy which offer a program in hesQth administration, hospital administration, or health policy analysis and planning, which program is accredited by a body or bodies approved for such purpose by the Commissioner of Education and which meets such other quality standards as the Secretary by regulation may prescribe, for traineeships to train students enrolled in such a program. "(b)(1) No grant for traineeships may be made under subsection (a) unless an application therefor has been submitted to, and approved by^ the Secretary. Such application shall be in such form, be submitted in such manner, and contain such information, as the Secretary by regulation may prescribe. Traineeships under such a grant shall be awarded in accordance with such regulations as the Secretary shall prescribe. The amount of any such grant shall be determined by the Secretary.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/813

 PUBLIC LAW 94-484—OCT. 12, 1976 "(2) Traineeships awarded under grants made under subsection (a) shall provide for such stipends and allowances (including travel and subsistence expenses and dependency allowances) for the trainees as the Secretary may deem necessary. "(3) In awarding traineeships under this section, each applicant shall assure to the satisfaction of the Secretary that at least 80 percent of the funds received under this section shall go to individuals who (A) have previously received a postbaccalaureate degree, or (B) have three years of work experience in health services. "(c) For payments under grants under subsection (a), there are authorized to be appropriated $2,500,000 for the fiscal year ending September 30, 1978; $2,500,000 for the fiscal year ending September 30, 1979; and $2,500,000 for the fiscal year ending September 30, 1980.". (b)(1) Effective October 1, 1977, section 225 is repealed and part C of title VII (as amended by subsection (a)) is amended by adding after subpart III the following new subpart:

90 STAT. 2281

Appropriation authorization. Repeal. 42 USC 234.

"Subpart IV—National Health Service Corps Scholarships (C

NATIONAL H E A L T H SERVICE CORPS SCHOLARSHIP PROGRAM

"SEC. 751. (a) The Secretary shall establish the National Health Establishment. Service Corps Scholarship Program (hereinafter in this subpart 42 USC 294t. 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 m 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

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/814

 90 STAT. 2282

Review and evaluation.

Notice. Written contract.

Ante, p. 2268.

PUBLIC LAW 94-484—OCT. 12, 1976 under section 754 in the case of the individual's breach of the contract; and " (2) such other information as may be 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 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 indiAddual 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 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-

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/815

 PUBLIC LAW 94-484—OCT. 12, 1976

90 STAT. 2283

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— "(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 m 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.
 * '(i) the tuition of the student in such school year; and

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/816

 90 STAT. 2284

Report to Congress.

PUBLIC LAW 94-464—OCT. 12, 1976 "(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. "(t) 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. OBLIGATED SERVICE

42 USC 294u.

Notification.

"SEC. 752. (a) Except as provided in section 763, 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 individuars 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.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/817

 PUBLIC LAW 94-484—OCT. 12, 1976

90 STAT. 2285

"(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 III. 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 Sie 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 289/-1. ((PRIVATE

PRACTICE

"SEC. 753. (a) The Secretary shall release an individual from all or Written part of his service obligation under section 752(a) if the individual agreement, applies for such a release under this section and enters into a written ^^ USC 294v. agreement with the Secretary under which the individual agrees to engage for a period equal to the remaining period of his 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

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/818

 90 STAT. 2286 Ante, p. 2270. Ante, p. 2272.

42 USC 1395c, 1395J. 42 USC 1396. Regulation.

PUBLIC LAW 94-484—OCT. 12, 1976 "(2) in the case of any other individual, in a health manpower shortage area (designated under section 332) which (A) has a priority for the assignment of Corps members under section 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 X VIII of the Social Security Act or under a State plan for medical assistance approved under title X IX of such Act; and "(2) contain such additional provisions as the Secretary may require to carry out the purposes of this section. 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. "BREACH OF SCHOLARSHIP CONTRACT

42 USC 294w.

"SEC. 754. (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

�