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bankruptcy court finds that nondischarge of the obligation would be unconscionable.

$62.30 What other regulations and

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

(iv) A private practitioner who is providing obligated service under the provisions of section 338D of the Act.

(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)

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 suit

ability 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

$ 62.27 What will happen if an indi

vidual does not comply with the terms and conditions of participation in the Loan Repayment Pro

gram? Program participants who default on their Loan Repayment Program Contracts 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 determined by the Secretary.

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.

$ 62.28 Under what circumstances can

the service or payment obligation

be canceled, waived or suspended? A service or payment obligation under the Loan Repayment Program will be canceled or may be waived or suspended as provided in $62.12 of this part of the regulations.

$62.51 What is the scope and purpose

of the State Loan Repayment Pro

gram? 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.

862.29 Under what circumstances can

the Loan Repayment Program obli. gation be discharged in bankruptcy? Any payment obligation incurred under $62.27 of this subpart may be released by a discharge in bankruptcy under title 11 of the United States Code only if such discharge is granted after the expiration of the five-year period beginning on the first date that payment was required, and only if the

862.52 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, measured by the rates of infant morCommercial loans, Government loans, tality, low birth weight, geographic Educational expenses, and Living ex- barriers and other indicators; penses as contained in $ 62.22 of this (3) A proposal for the placement of part will apply for purposes of this sub- the health profession providers in part.

medically underserved areas with the Medically underserved area means greatest need and demand in accordhealth manpower shortage area or an ance with the need/demand assessment area which has been designated by a completed in compliance with paraState pursuant to standards described graph (b)(2) of this section; in $62.54(b)(1) of this subpart which the

(4) Adequate assurances that suffiSecretary has deemed acceptable.

cient current year State funds are State Loan Repayment Program or pro- available to cover the non-Federal gram means a State loan repayment share of State Loan Repayment Proprogram authorized under section 338H

gram costs; (42 U.S.C. 254q-1) of the Act.

(5) A description of how the program $ 62.53 Who is eligible for this pro

would meet the requirements of $62.55 gram?

to demonstrate its similarity to the

NHSC Loan Repayment program; Any State is eligible to apply for a

(6) A description of the source of, and grant under this subpart.

plans for the use of, State matching $ 62.54 What must applications for the

funds; State Loan Repayment Program (7) A description of how the program contain?

would be coordinated with Federal, (a) An application for a grant under

State and other organized activities this subpart shall be submitted to the

within the State which relate to health Secretary at such time and in such

manpower services and resources; form and manner as the Secretary re

(8) Identification of the State entity quires.

and key personnel who would admin(b) The application shall contain a ister the grant and a description of the budget and narrative statement de- qualifications and experience of that scribing the manner in which the appli- entity and its personnel concerning the cant intends to conduct the project and

State's health service delivery system carry out the requirements of this sub- and health manpower needs; part. In addition, applications must in- (9) A description of the State's plans clude:

for administration of the State's Loan (1) A description of the State's stand- Repayment Program which may inards for the designation of medically clude such provisions as annual levels underserved areas, except that no de- of loan repayment to be made under scription of designation standards will the program, the number of health probe required if the State elects to use fessionals to be funded, the frequency health manpower shortage areas des- and timing of the loan repayments, ignated by the Secretary;

program incentives for longer periods (2) An assessment of the need and de- of service, procedures for monitoring mand in medically underserved areas the service of program participants and within the State for health professions placing professionals in default for failmanpower with special emphasis on in- ure to complete their service obligadividuals whose training is in a health tion, penalties for default, provisions profession or specialty identified by for waivers and suspensions, and a dethe Secretary pursuant to $62.23(b) of scription of the contract/obligation this part. This assessment should in- process to be used by the State to obliclude such demographic indicators of gate individuals receiving State loan the need as the economic accessibility repayments; of health care services in the State as (10) A description of the State's need measured by poverty levels, the per- for Federal assistance in obtaining centage of the service area population health professions resources and demwithout health insurance, and the onstrated inability to obtain such rehealth status of the population as 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 obligations imposed by the statute, the applicable regulations of this subpart and any additional conditions of the grant. (Approved by the Office of Management and Budget under control number 0915 0131)

ance program established under part A or B of title XVIII of the Social Security Act or under a State plan for medical assistance approved under title XIX of such Act, and

(4) Agree to accept an assignment under section 1842(b)(3)(B)(ii) of such Act for all services for which payment may be made under part B of title XVIII of such Act and enter into an appropriate agreement with the State agency which administers the State plan for medical assistance under title XIX of such Act to provide service to individuals entitled to medical assistance under the plan;

(d) Repay qualifying loans for participating health professionals;

(e) Provide that the loans of health professionals will be repaid on a periodic basis after the receipt of obligated services by such participant for such period; and

are

$62.55 What State Program Elements

are required to ensure similarity with the NHSC Loan Repayment

Program? A State Loan Repayment Program supported under this subpart must:

(a) Establish priorities for loan repayment applicants consistent with the provisions of $ 62.23 of this part;

(b) Contract only with a person who is (1) enrolled as a full-time student in the final year of a course of study or program in an accredited school in a State leading to a degree in allopathic or osteopathic medicine, dentistry or other health profession, or (2) enrolled in an accredited graduate training program in a state in allopathic or osteopathic medicine or dentistry or other health profession, or (3) a practitioner licensed by a State who has completed training in an accredited graduate training program in allopathic or osteopathic medicine, dentistry or other health profession;

(c) Provide that health professionals participating in a State Loan Repayment Program shall:

(1) Serve for at least 2 years in a medically underserved area identified pursuant to $62.54(b)(3) of this subpart in the full-time clinical practice of their profession,

(2) Charge for his or her professional services at the usual and customary rate prevailing in the area in which such services are provided, except that if a person is unable to pay such charge, such person shall be charged at a reduced rate or not charged any fee,

(3) In providing health services, 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 insur

8 62.56 How the Federal grant

funds and State matching funds to

be used under this program? The Federal share of any program shall not exceed 75 percent of the cost of the approved State program. The Federal share must be used to repay the qualifying loans of health professionals. No portion of the Federal share shall be used to pay for administrative costs of any State Loan Repayment Program. The State's share of the program may be used to repay qualifying loans of health professionals or administrative costs of the State's Loan Repayment Program, or a combination of both. All program administrative costs are to be borne by the State. No portion of the State's share of the program shall consist of Federal funds.

862.57 How will States be selected to

participate in this program? Within the limits of funds available under section 338H of the Act, the Secretary may award grants to State applicants whose proposed Loan Repayment Programs will, in his or her judgment, best promote the purposes of section 338H of the Act, taking into account, among other pertinent factors:

(a) The need of the State for health professions manpower;

45 CFR part 50—Policies of general applica

bility: Subpart D-Public Health Service

grant appeals procedure 45 CFR part 16—Procedures of the Depart

mental Grant Appeals Board 45 CFR part 74-Administration of grants 45 CFR part 75—Informal grant appeals pro

cedures 45 CFR part 92-Administrative Require

ments for grants and cooperative agreements to State and local governments (effective October 1, 1988)

Subpart D-Special Repayment

Program

AUTHORITY: Sec. 215 of the Public Health Service Act 58 Stat. 690, as amended, 63 Stat. 35 (42 U.S.C. 216); sec. 204, Pub. L. 100-177, 101 Stat. 1000.

SOURCE: 56 FR 56597, Nov. 6, 1991, unless otherwise noted.

(b) The number and type of providers the State proposes to support through this program;

(c) The acceptableness of the State's standards for the designation of medically underserved areas and the appropriateness of the proposed placements of obligated providers;

(d) The degree of similarity between the proposed State Loan Repayment Program and the National Health Service Corps Loan Repayment Program;

(e) The adequacy of the qualifications, the administrative and managerial ability and the experience of the State staff to administer and carry out the proposed project;

(f) The suitability of the applicant's approach and the degree to which the applicant's project is coordinated with Federal, State and other organized activities for meeting the State's health professions manpower needs and resources, including mechanisms for an ongoing evaluation of the program's activities;

(g) The source and plans for use of the State match (including the percentage of the State's match that is proposed to be used for loan repayments), the degree to which the State match exceeds 25% or has increased over time, and the amount of the match relative to the needs and resources of the States; and

(h) The extent to which special consideration will be extended to medically underserved areas with large minority populations. 862.58 What other regulations apply?

Other regulations which apply to this subpart include but are not limited to: 45 CFR part 80—Nondiscrimination under

programs receiving Federal assistance through the Department of Health and Human Services-Effectuation of title VI of

the Civil Rights Act of 1964 45 CFR part 81-Practice and procedure for

hearings under part 80 of this title 45 CFR part 84—Nondiscrimination on the

basis of handicap in programs and activities receiving or benefiting from Federal

financial assistance 45 CFR part 86—Nondiscrimination on the

basis of sex in programs and activities receiving or benefiting from Federal finan

cial assistance 45 CFR part 91-Nondiscrimination on the

basis of age in HHS programs or activities receiving Federal financial assistance

862.71 What is the scope and purpose

of the Special Repayment Program? These regulations apply to the Special Repayment Program authorized under section 204 of Pub. L. 100-177, which provides a time-limited opportunity for persons who were, on November 1, 1987, in breach of a written contract under the Public Health and National Health Service Corps Scholarship Training Program or the National Health Service Corps Scholarship Program to satisfy their scholarship obligations through full-time clinical service. These regulations do not apply to any Public Health and National Health Service Corps Scholarship Training Program or National Health Service Corps Scholarship Program obligation which the Secretary has determined was completely satisfied through service or monetary payment prior to November 1, 1987. The purpose of this program is to supply trained health professionals for the National Health Service Corps, which is used by the Secretary to improve the delivery of health services in health manpower shortage areas.

$ 62.72 Definitions.

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

Eligible defaulters means those individuals who, as of November 1, 1987, were:

(1) In breach of a written contract entered into under section 338A of the Act and liable to the United States under section 338E(b) of the Act and/or in breach of a written contract entered into under section 225 of the Act (as in effect on September 30, 1977) and liable to the United States under section 225(f)(1) of the Act (as in effect on September 30, 1977); and

(2) Not already serving their obligations on December 1, 1987, under a judgment, forbearance agreement, or other written agreement to serve.

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

Match means that the Secretary has received documentation of:

(1) An offer of employment from a HPOL or SHPOL site which specifies at least the agreed upon salary and start date; and

(2) The Program participant's acceptance of that offer. Provided, however, that if the Program participant would be self-employed, a match means that the Secretary has approved a program participant's private practice option application under section 338D(a) of the Act.

Prior approved service means service performed prior to a Program participant's service start date under the Special Repayment Program:

(1) As a member of the National Health Service Corps pursuant to an assignment by the Secretary under section 333 of the Act;

(2) Under a written private practice option agreement signed by the Secretary pursuant to section 338D of the Act; or

(3) In compliance with section 338C(e) of the Act.

Program participant means an eligible defaulter whose contract under section 204 of Pub. L. 100-177 has been accepted and signed by the Secretary.

Scholarship amount means the sum of any amounts paid to, or on the behalf of, a scholarship recipient under the PH/NHSC Scholarship Training Program and/or the Scholarship Program.

SHPOL means the Supplemental Health Manpower Shortage Area Placement Opportunity List described in section 204(d) of Pub. L. 100–177.

Special Repayment Program or Program means the program authorized by section 204 of Pub. L. 100-177.

Total debt means the debt that would be owed by a Program participant under section 225(f)(1) of the Act, as in effect on September 30, 1977, and/or section 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 Repay

ment 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. 100– 177 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

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