TECHNICAL AND CONFORMING AMENDMENTS.

SEC. 202. TECHNICAL AND CONFORMING AMENDMENTS. (a) Section 303.—Section 303(d)(4) (42 U.S.C. 242a(d)(4)) is amended— (1) by striking out “752 or 753” each place it appears and inserting in lieu thereof “338C or 338D”; and (2) in subparagraph (A), by striking out “subpart IV of part C of title VII” and inserting in lieu thereof “subpart II of part D”. (b) Section 331.—Section 331 (42 U.S.C. 254d) is amended— (1) in subsection (b), by striking out “and the Scholarship Program” and inserting in lieu thereof “, the Scholarship Program, and the Loan Repayment Program”; (2) in subsection (c), by striking out “338C” and inserting in lieu thereof “338D”; (3) in subsection (d)(2), by inserting after “Program” the following: “or the Loan Repayment Program”; (4) in subsection (f), by striking out “Scholarship Program” and inserting in lieu thereof “Scholarship Program or the Loan Repayment Program”; and (5) in subsection (h)— (A) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and (B) by inserting after paragraph (1) the following new paragraph: “(2) The term ‘Loan Repayment Program’ means the National Health Service Corps Loan Repayment Program established under section 338B.”. (c) Section 334.—Section 334(a)(3)(B) (42 U.S.C. 254g(a)(3)(B)) is amended— (1) by inserting “or the Loan Repayment Program” after “Scholarship Program”; and (2) by striking out “service under the Program;” and inserting in lieu thereof “service under the Scholarship Program or the Loan Repayment Program;”. 101 STAT. 997 (d) Section 336.—Section 336(a) (42 U.S.C. 254h-1(a)) is amended by striking out “scholarship program” and inserting in lieu thereof “Scholarship Program or Loan Repayment Program”. (e) Section 338E.—Section 338E (as redesignated by section 201(2) of this Act) is amended— (1) in subsection (a)— (A) by inserting “(1)” after the subsection designation; (B) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively; and (C) by adding at the end thereof the following new paragraph: “(2) An individual who has entered into a written contract with the Secretary under section 338B and who— “(A) in the case of an individual who is enrolled in the final year of a course of study, fails to maintain an acceptable level of academic standing in the educational institution in which such individual is enrolled (such level determined by the educational institution under regulations of the Secretary) or voluntarily terminates such enrollment or is dismissed from such educational institution before completion of such course of study; or “(B) in the case of an individual who is enrolled in a graduate training program, fails to complete such training program and does not receive a waiver from the Secretary under section 338B(b)(1)(B)(ii), in lieu of any service obligation arising under such contract shall be liable to the United States for the amount that has been paid on behalf of the individual under the contract.”; (2) in subsection (b)(1)— (A) by inserting “(A)” after the paragraph designation; (B) by striking out “338E(d)” and inserting in lieu thereof “338F(d)”; (C) by striking out “338C” each place it appears and inserting in lieu thereof “338D”; (D) by striking out “338B” each place it appears and inserting in lieu thereof “338C”; (E) by inserting “under section 388A” after “service obligation”; (F) by striking the last sentence; and (G) by adding at the end the following new subparagraph: “(B)(i) Any amount of damages that the United States is entitled to recover under this subsection or under subsection (c) shall, within the 1-year period beginning on the date of the breach of the written contract (or such longer period beginning on such date as specified by the Secretary), be paid to the United States. “(ii) If damages described in clause (i) are delinquent for 3 months, the Secretary shall, for the purpose of recovering such damages— “(I) utilize collection agencies contracted with by the Administrator of the General Services Administration; or “(II) enter into contracts for the recovery of such damages with collection agencies selected by the Secretary. “(iii) Each contract for recovering damages pursuant to this subsection shall provide that the contractor will, not less than once each 6 months, submit to the Secretary a status report on the success of the contractor in collecting such damages. Section 3718 of title 31, United States Code, shall apply to any such contract to the extent not inconsistent with this subsection. 101 STAT. 998 “(iv) To the extent not otherwise prohibited by law, the Secretary shall disclose to all appropriate credit reporting agencies information relating to damages of more than $100 that are entitled to be recovered by the United States under this subsection and that are delinquent by more than 60 days or such longer period as is determined by the Secretary.”; (3) by redesignating subsection (c) as subsection (d); (4) by inserting after subsection (b) the following new subsection: “(c)(1) if (for any reason not specified in subsection (a) or section 338F(d)) an individual breaches the written contract of the individual under section 338B by failing either to begin such individual’s service obligation in accordance with section 338C or 338D or to complete such service obligation, the United States shall be entitled to recover from the individual an amount equal to the sum of— “(A) in the case of a contract for a 2-year period of obligated service— “(i) the total of the amounts paid by the United States under section 338B(g)(2) on behalf of the individual for any period of obligated service; and “(ii) an amount equal to the unserved obligation penalty; “(B) in the case of a contract for a period of obligated service of greater than 2 years, and the breach occurs before the end of the first 2 years of such period— “(i) the total of the amounts paid by the United States under section 338B(g)(2) on behalf of the individual for any period of obligated service; and “(ii) an amount equal to the unserved obligation penalty; and “(C) in the case of a contract for a period of obligated service of greater than 2 years, and the breach occurs after the first 2 years of such period— “(i) the total of the amounts paid by the United States under section 838B(g)(2) on behalf of the individual for any period of obligated service not served; and “(ii) if the individual breaching the contract failed to give the Secretary notice, that the individual intends to take action which constitutes a breach of the contract, at least 1 year (or such shorter period of time as the Secretary determines is adequate for finding a replacement) prior to the breach, $10,000. “(2) For purposes of paragraph (1), the term ‘unserved obligation penalty’ means the amount equal to the product of the number of months of obligated service that were not completed by an individual, multiplied by $1,000, except that in any case in which the individual fails to serve 1 year, the unserved obligation penalty shall be equal to the full period of obligated service multiplied by $1,000. “(3) The Secretary may waive, in whole or in part, the rights of the United States to recover amounts under this section in any case of extreme hardship or other good cause shown, as determined by the Secretary. “(4) Damages that the United States is entitled to recover shall be paid in accordance with subsection (b)(1)(B).”; (5) in subsection (d) (as redesignated by clause (3) of this subsection), by inserting “or the Loan Repayment Program (or a contract thereunder)” after “thereunder)” each place it appears; and 101 STAT. 999 (6) in the section heading, by inserting “or loan repayment contract” after “contract”, (f) Part D of Title III.—Part D of title III is amended— (1) by redesignating subparts III and IV as subparts IV and V, respectively; and (2) by inserting before section 338A the following: “Subpart III—Scholarship Program and Loan Repayment Program”.