(f) The minimum length of obligated service is two years, or such longer period as the Program participant may agree to. The maximum length of obligated service is four years. If a Program participant agrees to an original contract of two or three years, such contract may be extended, subject to the availability of appropriated funding, for one year or two years (up to the four-year maximum). A one-year extension will not reactivate the statutory minimum requirement of two years of service.

Information collection requirements contained in paragraph (b)(2) were approved by the Office of Management and Budget under control number 0915-0131)

62.27 What will happen if an individual does not comply with the terms and conditions of participation in the Loan Repayment Program?

Program participants who default on their Loan Repayment Program Conracts will be subject to the applicable monetary payment provisions set forth at section 338E of the Act. Payment of any amount owed under section 338E of the Act shall be made within one year of the date the participant breached his or her Loan Repayment Contract, as etermined by the Secretary.

62.28 Under what circumstances can the service or payment obligation be canceled, waived or suspended? A service or payment obligation nder the Loan Repayment Program ill be canceled or may be waived or uspended as provided in §62.12 of this art of the regulations.

62.29 Under what circumstances can the Loan Repayment Program obligation be discharged in bankruptcy?

Any payment obligation incurred nder §62.27 of this subpart may be reased by a discharge in bankruptcy nder title 11 of the United States Code nly if such discharge is granted after he expiration of the five-year period eginning on the first date that paylent was required, and only if the ankruptcy court finds that ondischarge of the obligation would e unconscionable.

§ 62.30 What other regulations and statutes apply?

Other regulations and statutes which apply to this subpart include but are not limited to:

Debt Collection Act of 1982, Pub. L. 97-365 (5 U.S.C. 5514) including Section 4, Requirement that Applicant Furnish Taxpayer Identifying Number;

Fair Credit Reporting Act (15 U.S.C. 1681 et seq.);

Privacy Act of 1974 (5 U.S.C. 552a);

Section 215(a) of the Public Health Service Act, as amended (42 U.S.C. 216(a)), for PHS commissioned officers, and 5 U.S.C. 3301 for civil service employees both of which authorize verification of an individual's suitability for employment;

Privacy Act of 1974; Alteration of System of Records, 52 FR 21622-21627, June 8, 1987, regarding the collection, maintenance and allowable use of personal information requested from program applicants.

Subpart C-Grants for State Loan Repayment Programs

AUTHORITY: Sec. 215 of the Public Health Service Act, 58 Stat. 690 as amended, 63 Stat. 35 (42 U.S.C. 216); sec. 338H of the Public Health Service Act, 101 Stat. 999 (42 U.S.C. 254q-1).

SOURCE: 54 FR 13464, Apr. 3, 1989, unless otherwise noted.

§ 62.51 What is the scope and purpose of the State Loan Repayment Program?

The regulations of this subpart apply to the award of grants authorized by section 338H of the Public Health Service Act (42 U.S.C. 254q-1) to support the establishment of State programs similar to the National Health Service Corps Loan Repayment Program authorized by section 338B of the Public Health Service Act (42 U.S.C. 2541-1). The purpose of this program is to improve the delivery of health services in medically underserved areas.

§ 62.52 Definitions.

In addition to the definitions in §62.2 of this part, the following definitions will apply for purposes of this subpart:

The definitions of Qualifying loans, Commercial loans, Government loans, Educational expenses, and Living expenses as contained in §62.22 of this part will apply for purposes of this subpart.

Medically underserved area means health manpower shortage area or an area which has been designated by a State pursuant to standards described in § 62.54(b)(1) of this subpart which the Secretary has deemed acceptable.

State Loan Repayment Program or program means a State loan repayment program authorized under section 338H (42 U.S.C. 254q-1) of the Act.

$62.53 Who is eligible for this program?

Any State is eligible to apply for a grant under this subpart.

§ 62.54 What must applications for the State Loan Repayment Program contain?

(a) An application for a grant under this subpart shall be submitted to the Secretary at such time and in such form and manner as the Secretary requires.

(b) The application shall contain a budget and narrative statement describing the manner in which the applicant intends to conduct the project and carry out the requirements of this subpart. In addition, applications must include:

(1) A description of the State's standards for the designation of medically underserved areas, except that no description of designation standards will be required if the State elects to use health manpower shortage areas designated by the Secretary;

(2) An assessment of the need and demand in medically underserved areas within the State for health professions manpower with special emphasis on individuals whose training is in a health profession or specialty identified by the Secretary pursuant to §62.23(b) of this part. This assessment should include such demographic indicators of the need as the economic accessibility of health care services in the State as measured by poverty levels, the percentage of the service area population without health insurance, and the health status of the population as measured by the rates of infant mortality, low birth weight, geographic barriers and other indicators;

(3) A proposal for the placement of the health profession providers in medically underserved areas with the

greatest need and demand in accordance with the need/demand assessment completed in compliance with paragraph (b)(2) of this section;

(4) Adequate assurances that suffi cient current year State funds are available to cover the non-Federal share of State Loan Repayment Program costs;

(5) A description of how the program would meet the requirements of §62.55 to demonstrate its similarity to the NHSC Loan Repayment program;

(6) A description of the source of, and plans for the use of, State matching funds;

(7) A description of how the program would be coordinated with Federal State and other organized activitie within the State which relate to health manpower services and resources;

(8) Identification of the State entity and key personnel who would administer the grant and a description of the qualifications and experience of that entity and its personnel concerning the State's health service delivery system and health manpower needs;

(9) A description of the State's plans for administration of the State's Loan Repayment Program which may in clude such provisions as annual level of loan repayment to be made und the program, the number of health pro fessionals to be funded, the frequency and timing of the loan repayments program incentives for longer period of service, procedures for monitoring the service of program participants an placing professionals in default for fall ure to complete their service oblig tion, penalties for default, provision for waivers and suspensions, and a de scription of the contract/obligation process to be used by the State to obl gate individuals receiving State lo repayments;

(10) A description of the State's ne for Federal assistance in obtainin health professions resources and dem onstrated inability to obtain such re sources without Federal assistance;

(11) A description of how the State will accord special consideration to medically underserved areas with large minority populations; and

(12) The signature of an individual authorized to act for the State and to assume on behalf of the State the obli

f. The degree of amianty between the proposed State Loan Repayment Program and the Namonal Bealth SertJoe Compe Loan Repayment Programm

e. The adequacy of the qualifications the actuate and manage TAČ KUTY and the experience of the State staff to ammer and carry out the proposed project.

f The Buntability of the applicant's approach and the degree to which the appiocans & project as coordinated wi Federal State and other organised aounces for meeting the States healt professicos Campower deeds and resources, including mechanisms for an ongoing evaluation of the programs

g. The source and plans for use of the State match iolating the percentage of the States match that s proposed to be used for loan rep&Jmente, the degree to which the State match exceeds 3% or has increased Over time, and the amount of the match relative to the needs and resources of the States, and

The extent to which special ocKderation will be extended to medcally underserved areas with large mo nority populations.

162.58 What other regulations apply?

Other regulations which apply to this subpart include but are not limited to. 45 CFR part 8-Noodscrimination under programs receiving Feders BREADCE through the Department of Health and Human Services-5.Zecaton of mãe Vid the Civil ROB AT Of 3984

45 CFB par E-Practice and procedure for bearings ander part 30 of this title

46 CFB part 4-Nondiscriminance on the bass of bandicap in programs and activities receiving or benefiting from Feders: financial a55.50.008

45 CFB pars 86-Nondiscrimination on the basts of sex to programs and activities reDelving or benefiting from Federal fina

$ CFB 2 —Administrative Require metrs for gratis and cooperative agre metre to State and local governments (elfective October 2, 2988

Subpart D-Special Repayment
Program

AUTHORMT Sec. 5 of the Public Health Service Act Stat amended, 63 Stat 4750 Eft ec. 24. Pub. L. 100–171, 1)) Stat. 2000.

SOURCE # FB. 5658, Nov. 6, 1991, unless scherwise Docet

€2.71 What is the scope and purpos

of the Special Repayment Program These regulations apply to the Spe cal Beparment Program authori ander section 284 of Pub. L. 100-17 which provides a time-limited oppo samity for persons who were, on No vember 1, 1987, breach of a writte Contract zder the Public Health a National Health Service Corps Schol shop Tranming Program or the Nati Health Service Corps Scholarsh Pir gram to skansty their scholarshpi gations through full-time clinical s joe. These regulations do not apply any Public Health and National Health Service Corps Scholarship Traini Program or National Health Serv Corps Scholarship Program obligati which the Secretary has determina was completely satisfied through she jce or monetary payment prior to vember 1, 1987. The purpose of this p Fram is to supply trained health c fessionals for the National Heal Service Corps, which is used by Secretary to improve the delivery health services in health manpow shortage areas.

62.72 Definitions

In addition to the definitions in f of this part, the following definiti will apply for purposes of this subpl

Engible defcribers means those in viduals who, as of November 1, 1

were:

(1) In breach of a written contract tered into ander section 384 of Act and hable to the United Sta under section 3383 of the Act and in breach of a written contract enter into under section 5 of the Act (88) effect on September 30, 19′′) and liab to the United States under secti

15(f)(1) of the Act (as in effect on Sep›mber 30, 1977); and

(2) Not already serving their obligaons on December 1, 1987, under a judgent, forbearance agreement, or other itten agreement to serve.

HPOL means the Health Manpower ortage Area Placement Opportunity st described in section 204(b) of Pub. 100-177.

Match means that the Secretary has eived documentation of:

1) An offer of employment from a OL or SHPOL site which specifies at rst the agreed upon salary and start e; and

1) The Program participant's acceptme of that offer. Provided, however, t if the Program participant would - self-employed, a match means that Secretary has approved a program ticipant's private practice option lication under section 338D(a) of the

for approved service means service formed prior to a Program particiit's service start date under the Spe- 1 Repayment Program:

) As a member of the National 1th Service Corps pursuant to an gnment by the Secretary under sec4333 of the Act;

Under a written private practice on agreement signed by the Secry pursuant to section 338D of the

or

In compliance with section 338C(e) 1e Act.

ogram participant means an eligible ulter whose contract under section of Pub. L. 100-177 has been accepted signed by the Secretary. holarship amount means the sum of amounts paid to, or on the behalf a scholarship recipient under the NHSC Scholarship Training Pron and/or the Scholarship Program. IPOL means the Supplemental Ith Manpower Shortage Area Placet Opportunity List described in ion 204(d) of Pub. L. 100-177. ecial Repayment Program or Program ns the program authorized by sec204 of Pub. L. 100–177.

tal debt means the debt that would owed by a Program participant er section 225(f)(1) of the Act, as in ct on September 30, 1977, and/or sec

tion 338E(b) of the Act, as if no payments had been made on the debt.

§62.73 What are the procedures for participation in the Special Repayment Program?

(a) Notice of eligibility for participation in the program. On or before February 29, 1988, the Secretary will, subject to paragraph (h) of this section, send written notice to each eligible defaulter of the opportunity provided under this Program. The notice will be sent to the last known address of each eligible defaulter and will describe the special repayment options available under the Program.

(b) Selection of repayment method. On or before May 29, 1988, eligible defaulters who wish to participate in this Program must sign and submit to the Secretary a written contract to provide service in accordance with either section 204(b) or section 204(c) of Pub. L. 100-177. The election between section 204(b) and section 204(c) of Pub. L. 100177 is binding on the eligible defaulters.

(c) Service sites. Program participants will receive a listing of approved sites appropriate to the service option they have selected. Program participants electing service under section 204(b) of Pub. L. 100-177 will receive a HPOL. Program participants electing service under section 204(c) of Pub. L. 100-177 will receive a SHPOL. The HPOL or SHPOL sent to the Program participant will be specific to the Program participant's profession and his or her specialty training which is most needed by the National Health Service Corps. The Secretary is not required to identify placements for Program participants in a medical specialty for which the National Health service Corps has no need.

(d) Time frames for matching and commencing service. If a program participant electing to serve under section 204(b) of Pub. L. 100-177 chooses to serve at a remaining site on the 1988 HPOL, such participant must match to a site and must begin serving at the site by October 1, 1988. If a Program participant electing to serve under section 204(b) of Pub. L. 100-177 chooses to serve at a site on the 1989 HPOL, such participant must match to a HPOL site by February 15, 1989, and must begin