BREACH OF SCHOLARSHIP CONTRACT OR LOAN REPAYMENT CONTRACT.

SEC. 313. BREACH OF SCHOLARSHIP CONTRACT OR LOAN REPAYMENT CONTRACT. (a) In General.—Section 338E of the Public Health Service Act (42 U.S.C. 254o) is amended— (1) in subsection (a)(1)— (A) in subparagraph (A), by striking the comma and inserting a semicolon; (B) in subparagraph (B), by striking the comma and inserting “; or”; (C) in subparagraph (C), by striking “or” at the end; and (D) by striking subparagraph (D); (2) in subsection (b)— (A) in paragraph (1)(A)— (i) by striking “338F(d)” and inserting “338G(d)”; (ii) by striking “either”; (iii) by striking “338D or” and inserting “338D,”; and (iv) by inserting “or to complete a required residency as specified in section 338A(f)(1)(B)(iv),” before “the United States”; and (B) by adding at the end the following new paragraph: “(3) The Secretary may terminate a contract with an individual under section 338A if, not later than 30 days before the end of the school year to which the contract pertains, the individual— “(A) submits a written request for such termination; and “(B) repays all amounts paid to, or on behalf of, the individual under section 338A(g).”; (3) in subsection (c)— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A), by striking “338F(d)” and inserting “338G(d)”; and (ii) by striking subparagraphs (A) through (C) and inserting the following: “(A) the total of the amounts paid by the United States under section 338B(g) on behalf of the individual for any period of obligated service not served; “(B) an amount equal to the product of the number of months of obligated service that were not completed by the individual, multiplied by $7,500; and “(C) the interest on the amounts described in subparagraphs (A) and (B), at the maximum legal prevailing rate, as determined by the Treasurer of the United States, from the date of the breach; except that the amount the United States is entitled to recover under this paragraph shall not be less than $31,000.”; 116 STAT. 1652 (B) by striking paragraphs (2) and (3) and inserting the following: “(2) The Secretary may terminate a contract with an individual under section 338B if, not later than 45 days before the end of the fiscal year in which the contract was entered into, the individual— “(A) submits a written request for such termination; and “(B) repays all amounts paid on behalf of the individual under section 338B(g).”; and (C) by redesignating paragraph (4) as paragraph (3); (4) in subsection (d)(3)(A), by striking “only if such discharge is granted after the expiration of the five-year period” and inserting “only if such discharge is granted after the expiration of the 7-year period”; and (5) by adding at the end the following new subsection: “(e) Notwithstanding any other provision of Federal or State law, there shall be no limitation on the period within which suit may be filed, a judgment may be enforced, or an action relating to an offset or garnishment, or other action, may be initiated or taken by the Secretary, the Attorney General, or the head of another Federal agency, as the case may be, for the repayment of the amount due from an individual under this section.”. (b) Effective Date.—The amendment made by subsection (a)(4) shall apply to any obligation for which a discharge in bankruptcy has not been granted before the date that is 31 days after the date of enactment of this Act.