NATIONAL NURSE SERVICE CORPS.

SEC. 103. NATIONAL NURSE SERVICE CORPS. (a) Loan Repayment Program.—Section 846(a) of the Public Health Service Act (42 U.S.C. 297n(a)) is amended— (1) in paragraph (3), by striking “in an Indian Health Service health center” and all that follows to the semicolon and inserting “at a health care facility with a critical shortage of nurses”; and (2) by adding at the end the following: “After fiscal year 2007, the Secretary may not, pursuant to any agreement entered into under this subsection, assign a nurse to any private entity unless that entity is nonprofit.”. (b) Establishment of Scholarship Program.—Section 846 of the Public Health Service Act (42 U.S.C. 297n) is amended— (1) in the heading for the section, by striking “loan repayment program” and inserting “loan repayment and scholarship programs”; (2) by redesignating subsections (d), (f), (g), and (h) as subsections (f), (h), (i), and (g), respectively; (3) by transferring subsections (f) and (g) (as so redesignated) from their current placements, by inserting subsection (f) after subsection (e), and by inserting subsection (g) after subsection (f) (as so inserted); and (4) by inserting after subsection (c) the following subsection: “(d) Scholarship Program.— “(1) In general.—The Secretary shall (for fiscal years 2003 and 2004) and may (for fiscal years thereafter) carry out a program of entering into contracts with eligible individuals under which such individuals agree to serve as nurses for a period of not less than 2 years at a health care facility with a critical shortage of nurses, in consideration of the Federal Government agreeing to provide to the individuals scholarships for attendance at schools of nursing. “(2) Eligible individuals.—In this subsection, the term ‘eligible individual’ means an individual who is enrolled or accepted for enrollment as a full-time or part-time student in a school of nursing. “(3) Service requirement.— “(A) In general.—The Secretary may not enter into a contract with an eligible individual under this subsection unless the individual agrees to serve as a nurse at a health care facility with a critical shortage of nurses for a period of full-time service of not less than 2 years, or for a period of part-time service in accordance with subparagraph (B). “(B) Part-time service.—An individual may complete the period of service described in subparagraph (A) on a part-time basis if the individual has a written agreement that— “(i) is entered into by the facility and the individual and is approved by the Secretary; and “(ii) provides that the period of obligated service will be extended so that the aggregate amount of service performed will equal the amount of service that would be performed through a period of full-time service of not less than 2 years. “(4) Applicability of certain provisions.—The provisions of subpart III of part D of title III shall, except as inconsistent 116 STAT. 814 with this section, apply to the program established in paragraph (1) in the same manner and to the same extent as such provisions apply to the National Health Service Corps Scholarship Program established in such subpart.”. (c) Preference.—Section 846(e) of the Public Health Service Act (42 U.S.C. 297n(e)) is amended by striking “under subsection (a)” and all that follows through the period and inserting “under subsection (a) or (d), the Secretary shall give preference to qualified applicants with the greatest financial need.”. (d) Reports.—Subsection (h) of section 846 of the Public Health Service Act (42 U.S.C. 297n) (as redesignated by subsection (b)(2)) is amended to read as follows: “(h) Reports.—Not later than 18 months after the date of enactment of the Nurse Reinvestment Act, and annually thereafter, the Secretary shall prepare and submit to the Congress a report describing the programs carried out under this section, including statements regarding— “(1) the number of enrollees, scholarships, loan repayments, and grant recipients; “(2) the number of graduates; “(3) the amount of scholarship payments and loan repayments made; “(4) which educational institution the recipients attended; “(5) the number and placement location of the scholarship and loan repayment recipients at health care facilities with a critical shortage of nurses; “(6) the default rate and actions required; “(7) the amount of outstanding default funds of both the scholarship and loan repayment programs; “(8) to the extent that it can be determined, the reason for the default; “(9) the demographics of the individuals participating in the scholarship and loan repayment programs; “(10) justification for the allocation of funds between the scholarship and loan repayment programs; and “(11) an evaluation of the overall costs and benefits of the programs.”. (e) Funding.—Subsection (i) of section 846 of the Public Health Service Act (42 U.S.C. 297n) (as redesignated by subsection (b)(2)) is amended to read as follows: “(i) Funding.— “(1) Authorization of appropriations.—For the purpose of payments under agreements entered into under subsection (a) or (d), there are authorized to be appropriated such sums as may be necessary for each of fiscal years 2003 through 2007. “(2) Allocations.—Of the amounts appropriated under paragraph (1), the Secretary may, as determined appropriate by the Secretary, allocate amounts between the program under subsection (a) and the program under subsection (d).”.