104 STAT. 2322
PUBLIC LAW 101-527—NOV. 6, 1990
"(3) ADDITIONAL PRIORITIES. —In making grants under subsection (a) for a fiscal year from such amounts as are available for
the grants after compliance with paragraph (2), the Secretary
shall give priority to making grants to health professions
schools meeting the conditions specified in any of paragraphs
(3) through (5) of subsection (c) (in addition to the conditions
specified in paragraph (1)(B) of such subsection).".
SEC. 5. FEDERAL CAPITAL CONTRIBUTIONS TO CERTAIN STUDENT LOAN
FUNDS FOR PURPOSES REGARDING DISADVANTAGED INDIVID.
UALS.
(a) IN GENERAL.— Section 740 of the Public Health Service Act (42
U.S.C. 294m) is amended—
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new subsection:
"(c)(1) With respect to amounts appropriated under subsection
(c)(1) of section 742, each agreement entered into under this section
with a school shall provide (in addition to the provisions required in
subsection (b)) that—
"(A) any Federal capital contribution made to the student
loan fund of the school from such amounts, together with the
school contribution appropriate under subsection (b)(2)(B) to the
amount of the Federal capital contribution, will be utilized only
for the purpose of—
' (i) making loans to individuals who are individuals from
disadvantaged backgrounds; and
"(ii) the costs of the collection of the loans and interest on
the loans; and
"(B) collections of principal and interest on loans made pursuant to subparagraph (A), and any other earnings of the student
loan fund attributable to amounts that are in the fund pursuant
to such subparagraph, will be utilized only for the purpose
described in such paragraph.
"(2) The Secretary may not make a Federal capital contribution
for purposes of paragraph (1) for a fiscal year unless the health
professions school involved—
"(A) is carrying out a program for recruiting and retaining
students from disadvantaged backgrounds, including racial and
ethnic minorities; and
"(B) is carrying out a program for recruiting and retaining
minority faculty.
"(3) The Secretary may not make a Federal capital contribution
for purposes of paragraph (1) for a fiscal year unless the health
professions school involved agrees—
"(A) to ensure that adequate instruction regarding minority
heedth issues is provided for in the curricula of the school;
"(B) with respect to health clinics providing services to a
significant number of individuals who are from disadvantaged
backgrounds, including members of minority groups, to enter
into arrangements with 1 or more such clinics for the purpose of
providing students of the school with experience in providing
clinical services to such individuals;
"(C) with respect to public or nonprofit private secondary
educational institutions and undergraduate institutions of
higher education, to enter into arrangements with 1 or more
such institutions for the purpose of carrying out programs
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