PUBLIC LAW 101-527—NOV. 6, 1990 104 STAT. 2331 primary health care in urban health manpower shortage areas of the State, and an estimate of the amount of the grant that will be expended regarding the provision of such care in rural health manpower shortage areas of the State. "(h) REQUIREMENT OF APPLICATION.— The Secretary may not make a grant under subsection (a) unless an application for the grant is submitted to the Secretary and the application is in such form, is made in such manner, and contains such agreements, assurances, and information as the Secretary determines to be necessary to carry out this section. "(i) NONCOMPUANCE. — "(1) IN GENERAL. —The Secretary may not make payments under subsection (a) to a State for any fiscal year subsequent to the first fiscal year of such pa3anents unless the Secretary determines that, for the immediately preceding fiscal year, the State has complied with each of the agreements made by the / State under this section. / "(2) REDUCTION IN GRANT RELATIVE TO NUMBER OF BREACHED CONTRACTS. — "(A) Before making a grant under subsection (a) to a State for a fiscal year, the Secretary shall determine the number of contracts provided under subsection (c) with respect to which there has been an initial breach by the community organizations or individuals involved during the fiscal year preceding the fiscal year for which the State is applying to receive the grant. "(B) In the case of a State with 1 or more initial breaches for purposes of subparagraph (A), the Secretary shall reduce the amount of a grant under subsection (a) to the State for the fiscal year involved by an amount equal to the sum of— "(i) an amount equal to the expenditures of Federal funds made regarding the contracts involved; and "(ii) an amount representing interest on the amount of such expenditures, determined with respect to each contract on the basis of the maximum legal rate prevailing for loans made during the time amounts were paid under the contract, as determined by the Treasurer of the United States. "(C) If a State is not receiving a grant under subsection (a) for a fiscal year for which a reduction under subparagraph (B) would have been made in the event that the State had received such a grant, the Secretary shall reduce the amount of payments due to the State under other grants, cooperative agreements, or contracts under this Act by the amount specified in such subparagraph. "(D) With respect to contracts provided under subsection (c), the Secretary may carry out this paragraph on the basis of information submitted by the States involved, or on the basis of information collected through such other means as the Secretary determines to be appropriate. "( j) REPORTS TO CONGRESS.— "(1) IN GENERAL. —Each fiscal year the Secretary shall submit to the Committee on Energy and Commerce of the House of Representatives, and to the Committee on Labor and Human Resources of the Senate, a report summarizing information
�
