42 U.S.C. § 292y — General provisions

Page 1011 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 292y Editorial Notes PRIOR PROVISIONS A prior section 727 of act July 1, 1944, was classified to section 294 of this title prior to the general revision of this subchapter by Pub. L. 102–408. Another prior section 727 of act July 1, 1944, was clas- sified to section 293g of this title prior to renumbering by Pub. L. 94–484. § 292x. Distribution of assets from loan funds (a) Distribution after termination of fund If a school terminates a loan fund established under an agreement pursuant to section 292q(b) of this title, or if the Secretary for good cause terminates the agreement with the school, there shall be a capital distribution as follows: (1) The Secretary shall first be paid an amount which bears the same ratio to such balance in such fund on the date of termi- nation of the fund as the total amount of the Federal capital contributions to such fund by the Secretary pursuant to section 292q(b)(2)(A) of this title bears to the total amount in such fund derived from such Federal capital con- tributions and from funds deposited therein pursuant to section 292q(b)(2)(B) of this title. (2) The remainder of such balance shall be paid to the school. (b) Payment of proportionate share to Secretary If a capital distribution is made under sub- section (a), the school involved shall, after the capital distribution, pay to the Secretary, not less often than quarterly, the same propor- tionate share of amounts received by the school in payment of principal or interest on loans made from the loan fund established pursuant to section 292q(b) of this title as was determined by the Secretary under subsection (a). (July 1, 1944, ch. 373, title VII, § 728, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2021.) Editorial Notes PRIOR PROVISIONS A prior section 728 of act July 1, 1944, was classified to section 294a of this title prior to the general revision of this subchapter by Pub. L. 102–408. Another prior section 728 of act July 1, 1944, was clas- sified to section 293h of this title prior to renumbering by Pub. L. 94–484. § 292y. General provisions (a) Date certain for applications The Secretary shall from time to time set dates by which schools must file applications for Federal capital contributions. (b) Contingent reduction in allotments If the total of the amounts requested for any fiscal year in such applications exceeds the amounts appropriated under this section for that fiscal year, the allotment to the loan fund of each such school shall be reduced to which- ever of the following is the smaller: (A) the amount requested in its application; or (B) an amount which bears the same ratio to the amounts appropriated as the number of students estimated by the Secretary to be enrolled in such school during such fiscal year bears to the estimated total number of students in all such schools during such year. Amounts remaining after allotment under the preceding sentence shall be reallotted in accordance with clause (B) of such sentence among schools whose applica- tions requested more than the amounts so allot- ted to their loan funds, but with such adjust- ments as may be necessary to prevent the total allotted to any such school’s loan fund from ex- ceeding the total so requested by it. (c) Allotment of excess funds Funds available in any fiscal year for payment to schools under this subpart which are in excess of the amount appropriated pursuant to this sec- tion for that year shall be allotted among schools in such manner as the Secretary deter- mines will best carry out the purposes of this subpart. (d) Payment of installments to schools Allotments to a loan fund of a school shall be paid to it from time to time in such install- ments as the Secretary determines will not re- sult in unnecessary accumulations in the loan fund at such school. (e) Disposition of funds returned to Secretary (1) Expenditure for Federal capital contribu- tions Subject to section 292s(b)(5) of this title, any amounts from student loan funds under sec- tion 292q of this title that are returned to the Secretary by health professions schools shall be expended to make Federal capital contribu- tions to such funds. (2) Date certain for contributions Amounts described in paragraph (1) that are returned to the Secretary shall be obligated before the end of the succeeding fiscal year. (3) Preference in making contributions In making Federal capital contributions to student loans funds under section 292q of this title for a fiscal year from amounts described in paragraph (1), the Secretary shall give pref- erence to health professions schools of the same disciplines as the health professions schools returning such amounts for the period during which the amounts expended for such contributions were received by the Secretary. Any such amounts that, prior to being so re- turned, were available only for the purpose of loans under this subpart to individuals from disadvantaged backgrounds shall be available only for such purpose. (f) Funding for certain medical schools (1) Authorization of appropriations For the purpose of making Federal capital contributions to student loan funds estab- lished under section 292q of this title by schools of medicine or osteopathic medicine, there is authorized to be appropriated $10,000,000 for each of the fiscal years 1994 through 1996. (2) Minimum requirements (A) Subject to subparagraph (B), the Sec- retary may make a Federal capital contribu- tion pursuant to paragraph (1) only if the Page 1012 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 293 school of medicine or osteopathic medicine in- volved meets the conditions described in sub- paragraph (A) of section 292s(b)(2) of this title or the conditions described in subparagraph (C) of such section. (B) For purposes of subparagraph (A), the conditions referred to in such subparagraph shall be applied with respect to graduates of the school involved whose date of graduation occurred approximately 3 years before June 30 of the fiscal year preceding the fiscal year for which the Federal capital contribution in- volved is made. (July 1, 1944, ch. 373, title VII, § 735, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2021; amended Pub. L. 102–531, title III, § 313(a)(1), Oct. 27, 1992, 106 Stat. 3507; Pub. L. 103–43, title XX, § 2014(d), June 10, 1993, 107 Stat. 217; Pub. L. 105–392, title I, § 134(c), Nov. 13, 1998, 112 Stat. 3578.) Editorial Notes PRIOR PROVISIONS A prior section 735 of act July 1, 1944, was classified to section 294h of this title prior to the general revision of this subchapter by Pub. L. 102–408. AMENDMENTS 1998—Subsec. (e)(2). Pub. L. 105–392 reenacted heading without change and amended text of par. (2) generally. Prior to amendment, text read as follows: ‘‘Amounts described in paragraph (1) that are returned to the Sec- retary before the fourth quarter of a fiscal year shall be obligated before the end of such fiscal year, and may not be obligated before the fourth quarter. For pur- poses of the preceding sentence, amounts returned to the Secretary during the last quarter of a fiscal year are deemed to have been returned during the first three quarters of the succeeding fiscal year.’’ 1993—Subsec. (f). Pub. L. 103–43 added subsec. (f). 1992—Subsec. (b). Pub. L. 102–531 inserted designa- tions for cls. (A) and (B) in first sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1992 AMENDMENT Pub. L. 102–531, title III, § 313(c), Oct. 27, 1992, 106 Stat. 3507, provided that: ‘‘The amendments described in this section [amending this section and sections 293j, 293l, 294n, 295j, 295l, 295n, 295o, 296k, and 298b–7 of this title, repealing section 297j of this title, redesignating sub- part IV of part B of subchapter VI of this chapter as subpart III, and amending provisions set out as a note under section 295k of this title] are made, and take ef- fect, immediately after the enactment of the bill, H.R. 3508, of the One Hundred Second Congress [Pub. L. 102–408, approved Oct. 13, 1992].’’ PART B—HEALTH PROFESSIONS TRAINING FOR DIVERSITY § 293. Centers of excellence (a) In general The Secretary shall make grants to, and enter into contracts with, designated health profes- sions schools described in subsection (c), and other public and nonprofit health or educational entities, for the purpose of assisting the schools in supporting programs of excellence in health professions education for under-represented mi- nority individuals. (b) Required use of funds The Secretary may not make a grant under subsection (a) unless the designated health pro- fessions school involved agrees, subject to sub- section (c)(1)(C), to expend the grant— (1) to develop a large competitive applicant pool through linkages with institutions of higher education, local school districts, and other community-based entities and establish an education pipeline for health professions careers; (2) to establish, strengthen, or expand pro- grams to enhance the academic performance of under-represented minority students at- tending the school; (3) to improve the capacity of such school to train, recruit, and retain under-represented minority faculty including the payment of such stipends and fellowships as the Secretary may determine appropriate; (4) to carry out activities to improve the in- formation resources, clinical education, cur- ricula and cultural competence of the grad- uates of the school, as it relates to minority health issues; (5) to facilitate faculty and student research on health issues particularly affecting under- represented minority groups, including re- search on issues relating to the delivery of health care; (6) to carry out a program to train students of the school in providing health services to a significant number of under-represented mi- nority individuals through training provided to such students at community-based health facilities that— (A) provide such health services; and (B) are located at a site remote from the main site of the teaching facilities of the school; and (7) to provide stipends as the Secretary de- termines appropriate, in amounts as the Sec- retary determines appropriate. (c) Centers of excellence (1) Designated schools (A) In general The designated health professions schools referred to in subsection (a) are such schools that meet each of the conditions specified in subparagraphs (B) and (C), and that— (i) meet each of the conditions specified in paragraph (2)(A); (ii) meet each of the conditions specified in paragraph (3); (iii) meet each of the conditions speci- fied in paragraph (4); or (iv) meet each of the conditions specified in paragraph (5). (B) General conditions The conditions specified in this subpara- graph are that a designated health profes- sions school— (i) has a significant number of under-rep- resented minority individuals enrolled in the school, including individuals accepted for enrollment in the school; (ii) has been effective in assisting under- represented minority students of the school to complete the program of edu- cation and receive the degree involved; (iii) has been effective in recruiting under-represented minority individuals to