PUBLIC LAW 107-205—AUG. 1, 2002 116 STAT. 813 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 follovi^s 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 REPAY- MENT PROGRAM" and inserting "LOAN REPAYMENT AND SCHOLAR- SHIP 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 Contracts. 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
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