42 U.S.C. § 254p — Special loans for former Corps members

Page 419 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 254p (d) Investment (1) In general The Secretary of the Treasury shall invest such amounts of the Fund as such Secretary determines are not required to meet current withdrawals from the Fund. Such investments may be made only in interest-bearing obliga- tions of the United States. For such purpose, such obligations may be acquired on original issue at the issue price, or by purchase of out- standing obligations at the market price. (2) Sale of obligations Any obligation acquired by the Fund may be sold by the Secretary of the Treasury at the market price. (July 1, 1944, ch. 373, title III, § 338F, as added Pub. L. 101–597, title II, § 204, Nov. 16, 1990, 104 Stat. 3027.) Editorial Notes PRIOR PROVISIONS A prior section 338F of act July 1, 1944, was renum- bered section 338G by Pub. L. 101–597 and is classified to section 254p of this title. Another prior section 338F of act July 1, 1944, was re- numbered section 338G by section 201(2) of Pub. L. 100–177 and classified to section 254q of this title, prior to repeal by Pub. L. 100–177, title II, § 203, Dec. 1, 1987, 101 Stat. 999. § 254p. Special loans for former Corps members to enter private practice (a) Persons entitled; conditions The Secretary may, out of appropriations au- thorized under section 254k of this title, make one loan to a Corps member who has agreed in writing— (1) to engage in the private full-time clinical practice of the profession of the member in a health professional shortage area (designated under section 254e of this title) for a period of not less than 2 years which— (A) in the case of a Corps member who is required to complete a period of obligated service under this subpart, begins not later than 1 year after the date on which such in- dividual completes such period of obligated service; and (B) in the case of an individual who is not required to complete a period of obligated service under this subpart, begins at such time as the Secretary considers appropriate; (2) to conduct such practice in accordance with section 254n(b)(1) of this title; and (3) to such additional conditions as the Sec- retary may require to carry out this section. Such a loan shall be used to assist such indi- vidual in meeting the costs of beginning the practice of such individual’s profession in ac- cordance with such agreement, including the costs of acquiring equipment and renovating fa- cilities for use in providing health services, and of hiring nurses and other personnel to assist in providing health services. Such loan may not be used for the purchase or construction of any building. (b) Amount of loan; maximum interest rate (1) The amount of a loan under subsection (a) to an individual shall not exceed $25,000. (2) The interest rate for any such loan shall not exceed an annual rate of 5 percent. (c) Application for loan; submission and ap- proval; interest rates and repayment terms The Secretary may not make a loan under this section unless an application therefor has been submitted to, and approved by, the Secretary. The Secretary shall, by regulation, set interest rates and repayment terms for loans under this section. (d) Breach of agreement; notice; determination of liability If the Secretary determines that an individual has breached a written agreement entered into under subsection (a), he shall, as soon as prac- ticable after making such determination, notify the individual of such determination. If within 60 days after the date of giving such notice, such individual is not practicing his profession in ac- cordance with the agreement under such sub- section and has not provided assurances satis- factory to the Secretary that he will not know- ingly violate such agreement again, the United States shall be entitled to recover from such in- dividual— (1) in the case of an individual who has re- ceived a grant under this section (as in effect prior to October 1, 1984), an amount deter- mined under section 254o(b) of this title, ex- cept that in applying the formula contained in such section ‘‘φ’’ shall be the sum of the amount of the grant made under subsection (a) to such individual and the interest on such amount which would be payable if at the time it was paid it was a loan bearing interest at the maximum legal prevailing rate, ‘‘t’’ shall be the number of months that such individual agreed to practice his profession under such agreement, and ‘‘s’’ shall be the number of months that such individual practices his pro- fession in accordance with such agreement; and (2) in the case of an individual who has re- ceived a loan under this section, the full amount of the principal and interest owed by such individual under this section. (July 1, 1944, ch. 373, title III, § 338G, formerly title VII, § 755, as added Pub. L. 94–484, title IV, § 408(b)(1), Oct. 12, 1976, 90 Stat. 2287; renumbered § 338E and amended Pub. L. 97–35, title XXVII, § 2709(a), (f), Aug. 13, 1981, 95 Stat. 908, 911; Pub. L. 97–414, § 8(g)(3), Jan. 4, 1983, 96 Stat. 2061; re- numbered § 338F and amended Pub. L. 100–177, title II, § 201(2), title III, § 309, Dec. 1, 1987, 101 Stat. 992, 1006; renumbered § 338G and amended Pub. L. 101–597, title II, § 204, title IV, § 401(b)[(a)], Nov. 16, 1990, 104 Stat. 3027, 3035.) Editorial Notes CODIFICATION Section was formerly classified to section 294x of this title prior to renumbering by Pub. L. 97–35. PRIOR PROVISIONS A prior section 338G of act July 1, 1944, was renum- bered section 338H by Pub. L. 101–597 and is classified to section 254q of this title. Another prior section 338G of act July 1, 1944, was re- numbered section 338I by section 201(1) of Pub. L. Page 420 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 254q 1 So in original. Probably should be ‘‘subpart,’’. 100–177 and classified to section 254r of this title, prior to repeal by Pub. L. 100–713, title I, § 104(b)(1), Nov. 23, 1988, 102 Stat. 4787. Another prior section 338G of act July 1, 1944, was classified to section 254q of this title prior to repeal by Pub. L. 100–177, title II, § 203, Dec. 1, 1987, 101 Stat. 999. AMENDMENTS 1990—Subsec. (a)(1). Pub. L. 101–597, § 401(b)[(a)], sub- stituted reference to health professional shortage area for reference to health manpower shortage area. 1987—Subsec. (a). Pub. L. 100–177, § 309(1), substituted subsec. (a) consisting of pars. (1) to (3) for former sub- sec. (a) consisting of pars. (1) and (2). Subsec. (b). Pub. L. 100–177, § 309(1), added subsec. (b) and struck out former subsec. (b) which read as follows: ‘‘The amount of the grant or loan under subsection (a) of this section to an individual shall be— ‘‘(1) $12,500 if the individual agrees to practice his profession in accordance with the agreement for a pe- riod of at least one year, but less than two years; or ‘‘(2) $25,000 if the individual agrees to practice his profession in accordance with the agreement for a pe- riod of at least two years.’’ Subsec. (c). Pub. L. 100–177, § 309(2), struck out ‘‘grant or’’ before ‘‘loan’’ in first sentence. Subsec. (d)(1). Pub. L. 100–177, § 309(3), substituted ‘‘under this section (as in effect prior to October 1, 1984)’’ for ‘‘under this section’’, and made technical amendment to reference to section 254o(b) of this title to reflect renumbering of corresponding section of original act. 1983—Subsec. (d)(1). Pub. L. 97–414 substituted ‘‘sec- tion 254o(b)’’ for ‘‘section 254o(c)’’. 1981—Subsec. (a). Pub. L. 97–35, § 2709(f)(2)–(4), made numerous changes to reflect renumbering of subpart sections, among them inserting references to section 254k of this title and striking out references to section 294v of this title, and added applicability to loans. Subsec. (b). Pub. L. 97–35, § 2709(f)(5), inserted applica- bility to loans. Subsec. (c). Pub. L. 97–35, § 2709(f)(6), inserted provi- sions relating to loans and interest rates, etc. Subsec. (d). Pub. L. 97–35, § 2709(f)(7), restructured and revised criteria determining amount of liability of indi- vidual within 60 days after the date of notice instead of within 120 days after the date of notice. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 1977, see section 408(b)(1) of Pub. L. 94–484, set out in part as a note under section 254l of this title. EFFECTIVE DATE; SAVINGS PROVISION; CREDIT FOR PE- RIOD OF INTERNSHIP OR RESIDENCY BEFORE SEP- TEMBER 30, 1977, TOWARDS SERVICE OBLIGATION See section 408(b)(2) of Pub. L. 94–484, set out as a note under section 254l of this title. § 254q. Authorization of appropriations (a) Authorization of appropriations For the purpose of carrying out this section,1 there is authorized to be appropriated, out of any funds in the Treasury not otherwise appro- priated, the following: (1) For fiscal year 2010, $320,461,632. (2) For fiscal year 2011, $414,095,394. (3) For fiscal year 2012, $535,087,442. (4) For fiscal year 2013, $691,431,432. (5) For fiscal year 2014, $893,456,433. (6) For fiscal year 2015, $1,154,510,336. (7) For fiscal year 2016, and each subsequent fiscal year, the amount appropriated for the preceding fiscal year adjusted by the product of— (A) one plus the average percentage in- crease in the costs of health professions edu- cation during the prior fiscal year; and (B) one plus the average percentage change in the number of individuals residing in health professions shortage areas designated under section 254f of this title during the prior fiscal year, relative to the number of individuals residing in such areas during the previous fiscal year. (b) Scholarships for new participants Of the amounts appropriated under subsection (a) for a fiscal year, the Secretary shall obligate not less than 10 percent for the purpose of pro- viding contracts for— (1) scholarships under this subpart to indi- viduals who have not previously received such scholarships; or (2) scholarships or loan repayments under the Loan Repayment Program under section 254l–1 of this title to individuals from dis- advantaged backgrounds. (c) Scholarships and loan repayments With respect to certification as a nurse practi- tioner, nurse midwife, or physician assistant, the Secretary shall, from amounts appropriated under subsection (a) for a fiscal year, obligate not less than a total of 10 percent for contracts for both scholarships under the Scholarship Pro- gram under section 254l of this title and loan re- payments under the Loan Repayment Program under section 254l–1 of this title to individuals who are entering the first year of a course of study or program described in section 254l(b)(1)(B) of this title that leads to such a cer- tification or individuals who are eligible for the loan repayment program as specified in section 254l–1(b) of this title for a loan related to such certification. (July 1, 1944, ch. 373, title III, § 338H, formerly § 338G, as added Pub. L. 100–177, title II, § 203, Dec. 1, 1987, 101 Stat. 999; renumbered § 338H and amended Pub. L. 101–597, title II, §§ 204, 205, Nov. 16, 1990, 104 Stat. 3027, 3028; Pub. L. 107–251, title III, § 314, Oct. 26, 2002, 116 Stat. 1652; Pub. L. 110–355, § 3(a)(2), Oct. 8, 2008, 122 Stat. 3993; Pub. L. 111–148, title V, § 5207, Mar. 23, 2010, 124 Stat. 612.) Editorial Notes PRIOR PROVISIONS A prior section 254q, act July 1, 1944, ch. 373, title III, § 338G, formerly title VII, § 756, as added Oct. 12, 1976, Pub. L. 94–484, title IV, § 408(b)(1), 90 Stat. 2288; renum- bered § 338F and amended Aug. 13, 1981, Pub. L. 97–35, title XXVII, § 2709(a), (g), 95 Stat. 908, 912; renumbered § 338G, Dec. 1, 1987, Pub. L. 100–177, title II, § 201(2), 101 Stat. 992, authorized appropriations for fiscal years 1978 to 1987, prior to repeal by Pub. L. 100–177, § 203. A prior section 338H of act July 1, 1944, was renum- bered section 338I by Pub. L. 101–597 and is classified to section 254q–1 of this title. AMENDMENTS 2010—Subsec. (a). Pub. L. 111–148 amended subsec. (a) generally. Prior to amendment, subsec. (a) related to authorization of appropriations for the purposes of car- rying out this subpart as follows: for fiscal year 2008,