
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC254m]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
                SUBCHAPTER II--GENERAL POWERS AND DUTIES
 
                       Part D--Primary Health Care
 
       subpart iii--scholarship program and loan repayment program
 
Sec. 254m. Obligated service under contract


(a) Service in full-time clinical practice

    Except as provided in section 254n of this title, each individual 
who has entered into a written contract with the Secretary under section 
254l or 254l-1 of this title shall provide service in the full-time 
clinical practice of such individual's profession as a member of the 
Corps for the period of obligated service provided in such contract.

(b) Notice to individual; information for informed decision; 
        eligibility; notice to Secretary; qualification and appointment 
        as commissioned officer; appointment as civilian member; 
        designation of non-United States employee as member; deferment 
        of obligated service

    (1) If an individual is required under subsection (a) of this 
section to provide service as specified in section 254l(f)(1)(B)(iv) or 
254l-1(f)(1)(B)(iv) of this title (hereinafter in this subsection 
referred to as ``obligated service''), the Secretary shall, not later 
than ninety days before the date described in paragraph (5), determine 
if the individual shall provide such service--
        (A) as a member of the Corps who is a commissioned officer in 
    the Regular or Reserve Corps of the Service or who is a civilian 
    employee of the United States, or
        (B) as a member of the Corps who is not such an officer or 
    employee,

and shall notify such individual of such determination.
    (2) If the Secretary determines that an individual shall provide 
obligated service as a member of the Corps who is a commissioned officer 
in the Service or a civilian employee of the United States, the 
Secretary shall, not later than sixty days before the date described in 
paragraph (5), provide such individual with sufficient information 
regarding the advantages and disadvantages of service as such a 
commissioned officer or civilian employee to enable the individual to 
make a decision on an informed basis. To be eligible to provide 
obligated service as a commissioned officer in the Service, an 
individual shall notify the Secretary, not later than thirty days before 
the date described in paragraph (5), of the individual's desire to 
provide such service as such an officer. If an individual qualifies for 
an appointment as such an officer, the Secretary shall, as soon as 
possible after the date described in paragraph (5), appoint the 
individual as a commissioned officer of the Regular or Reserve Corps of 
the Service and shall designate the individual as a member of the Corps.
    (3) If an individual provided notice by the Secretary under 
paragraph (2) does not qualify for appointment as a commissioned officer 
in the Service, the Secretary shall, as soon as possible after the date 
described in paragraph (5), appoint such individual as a civilian 
employee of the United States and designate the individual as a member 
of the Corps.
    (4) If the Secretary determines that an individual shall provide 
obligated service as a member of the Corps who is not an employee of the 
United States, the Secretary shall, as soon as possible after the date 
described in paragraph (5), designate such individual as a member of the 
Corps to provide such service.
    (5)(A) In the case of the Scholarship Program, with respect to an 
individual receiving a degree from a school of medicine, osteopathic 
medicine, dentistry, veterinary medicine, optometry, podiatry, or 
pharmacy, the date referred to in paragraphs (1) through (4) shall be 
the date on which the individual completes the training required for 
such degree, except that--
        (i) at the request of such an individual with whom the Secretary 
    has entered into a contract under section 254l of this title prior 
    to October 1, 1985, the Secretary shall defer such date until the 
    end of the period of time (not to exceed the number of years 
    specified in subparagraph (B) or such greater period as the 
    Secretary, consistent with the needs of the Corps, may authorize) 
    required for the individual to complete an internship, residency, or 
    other advanced clinical training; and
        (ii) at the request of such an individual with whom the 
    Secretary has entered into a contract under section 254l of this 
    title on or after October 1, 1985, the Secretary may defer such date 
    in accordance with clause (i).

    (B)(i) In the case of the Scholarship Program, with respect to an 
individual receiving a degree from a school of medicine, osteopathic 
medicine, or dentistry, the number of years referred to in subparagraph 
(A)(i) shall be 3 years.
    (ii) In the case of the Scholarship Program, with respect to an 
individual receiving a degree from a school of veterinary medicine, 
optometry, podiatry, or pharmacy, the number of years referred to in 
subparagraph (A)(i) shall be 1 year.
    (C) No period of internship, residency, or other advanced clinical 
training shall be counted toward satisfying a period of obligated 
service under this subpart.
    (D) In the case of the Scholarship Program, with respect to an 
individual receiving a degree from an institution other than a school 
referred to in subparagraph (A), the date referred to in paragraphs (1) 
through (4) shall be the date on which the individual completes the 
academic training of the individual leading to such degree.
    (E) In the case of the Loan Repayment Program, if an individual is 
required to provide obligated service under such Program, the date 
referred to in paragraphs (1) through (4)--
        (i) shall be the date determined under subparagraph (A), (B), or 
    (D) in the case of an individual who is enrolled in the final year 
    of a course of study;
        (ii) shall, in the case of an individual who is enrolled in an 
    approved graduate training program in medicine, osteopathic 
    medicine, dentistry, or other health profession, be the date the 
    individual completes such training program; and
        (iii) shall, in the case of an individual who has a degree in 
    medicine, osteopathic medicine, dentistry, or other health 
    profession and who has completed graduate training, be the date the 
    individual enters into an agreement with the Secretary under section 
    254l-1 of this title.

(c) Obligated service period; commencement

    An individual shall be considered to have begun serving a period of 
obligated service--
        (1) on the date such individual is appointed as an officer in a 
    Regular or Reserve Corps of the Service or is designated as a member 
    of the Corps under subsection (b)(3) or (b)(4) of this section, or
        (2) in the case of an individual who has entered into an 
    agreement with the Secretary under section 254n of this title, on 
    the date specified in such agreement,

whichever is earlier.

(d) Assignment of personnel

    The Secretary shall assign individuals performing obligated service 
in accordance with a written contract under the Scholarship Program to 
health professional shortage areas in accordance with sections 254d 
through 254h and sections 254j and 254k of this title. If the Secretary 
determines that there is no need in a health professional shortage area 
(designated under section 254e of this title) for a member of the 
profession in which an individual is obligated to provide service under 
a written contract and if such individual is an officer in the Service 
or a civilian employee of the United States, the Secretary may detail 
such individual to serve his period of obligated service as a full-time 
member of such profession in such unit of the Department as the 
Secretary may determine.

(e) Service under National Research Service Award program; credits 
        against obligated service time

    Notwithstanding any other provision of this subchapter, service of 
an individual under a National Research Service Award awarded under 
subparagraph (A) or (B) of section 288(a)(1) \1\ of this title shall be 
counted against the period of obligated service which the individual is 
required to perform under the Scholarship Program or under section 234 
\2\ of this title as in effect on September 30, 1977.
---------------------------------------------------------------------------
    \1\ See Codification note below.
    \2\ See References in Text note below.
---------------------------------------------------------------------------

(July 1, 1944, ch. 373, title III, Sec. 338C, formerly title VII, 
Sec. 752, as added Pub. L. 94-484, title IV, Sec. 408(b)(1), Oct. 12, 
1976, 90 Stat. 2284; amended Pub. L. 95-626, title I, Sec. 113(b), Nov. 
10, 1978, 92 Stat. 3563; Pub. L. 96-76, title II, Sec. 202(a), (b), 
Sept. 29, 1979, 93 Stat. 582; renumbered Sec. 338B and amended Pub. L. 
97-35, title XXVII, Sec. 2709(a), (c), Aug. 13, 1981, 95 Stat. 908, 909; 
Pub. L. 97-414, Sec. 8(g)(1), Jan. 4, 1983, 96 Stat. 2061; renumbered 
Sec. 338C and amended Pub. L. 100-177, title II, Sec. 201(2), title III, 
Sec. 306, Dec. 1, 1987, 101 Stat. 992, 1004; Pub. L. 100-607, title VI, 
Sec. 629(a)(2), Nov. 4, 1988, 102 Stat. 3146; Pub. L. 101-597, title IV, 
Sec. 401(b)[(a)], Nov. 16, 1990, 104 Stat. 3035.)

                       References in Text

    Section 234 of this title, referred to in subsec. (e), was repealed 
by Pub. L. 94-484, title IV, Sec. 408(b)(1), Oct. 12, 1976, 90 Stat. 
2281, effective Oct. 1, 1977.

                          Codification

    Section was formerly classified to section 294u of this title prior 
to its renumbering by Pub. L. 97-35.
    Section 288(a)(1) of this title, referred to in subsec. (e), in the 
original referred to section 472(a)(1), meaning section 472(a)(1) of the 
Public Health Service Act, which was classified to section 289l-1(a)(1) 
of this title. Title IV of the Public Health Service Act was amended 
generally by section 2 of Pub. L. 99-158, Nov. 20, 1985, 99 Stat. 822, 
and provisions formerly contained in section 472(a)(1) were restated in 
section 487(a)(1) of the Public Health Service Act, which is classified 
to section 288(a)(1) of this title.


                            Prior Provisions

    A prior section 338C of act July 1, 1944, was renumbered section 
338D by section 201(2) of Pub. L. 100-177 and is classified to section 
254n of this title.


                               Amendments

    1990--Subsec. (d). Pub. L. 101-597 substituted reference to health 
professional shortage area for reference to health manpower shortage 
area wherever appearing.
    1988--Subsec. (b)(5). Pub. L. 100-607 substituted ``osteopathic 
medicine'' for ``osteopathy'' wherever appearing.
    1987--Subsec. (a). Pub. L. 100-177, Sec. 306(1), inserted ``or 254l-
1'', and made technical amendment to reference to section 254n of this 
title to reflect renumbering of corresponding section of original act.
    Subsec. (b)(1). Pub. L. 100-177, Sec. 306(2), inserted reference to 
section 254l-l(f)(1)(B)(iv).
    Subsec. (b)(5). Pub. L. 100-177, Sec. 306(3), substituted par. (5) 
consisting of subpars. (A) to (E) for former par. (5) consisting of 
subpars. (A) and (B).
    Subsec. (c)(2). Pub. L. 100-177, Sec. 306(4), made technical 
amendment to reference to section 254n of this title to reflect 
renumbering of corresponding section of original act.
    1983--Subsec. (e). Pub. L. 97-414 inserted ``or under section 234 of 
this title as in effect on September 30, 1977'' after ``Scholarship 
Program''.
    1981--Subsec. (a). Pub. L. 97-35, Sec. 2709(c)(1), substituted 
``254n'' for ``294v'' and ``254l'' for ``294t''.
    Subsec. (b). Pub. L. 97-35, Sec. 2709(c)(2), substituted provisions 
relating to notice, information, etc., for individuals required to give 
obligated service, for provisions relating to notice, information, etc., 
for individuals required to provide service under the Scholarship 
Program.
    Subsec. (c). Pub. L. 97-35, Sec. 2709(c)(3), (4), in par. (1) 
inserted reference to designation under subsec. (b)(3) or (4) of this 
section, and in par. (2) substituted ``254n'' for ``294v''.
    Subsec. (d). Pub. L. 97-35, Sec. 2709(c)(5), inserted provision 
relating to individuals who are officers in the Service or civilian 
employees of the United States, and substituted reference to sections 
254d to 254h, 254j, and 254k of this title, for reference to subpart II 
of part D of subchapter II of this chapter.
    Subsec. (e). Pub. L. 97-35, Sec. 2709(c)(6), substituted provisions 
respecting mandatory determination of service requirement, for 
provisions respecting discretionary determination of service 
requirement.
    1979--Subsec. (b)(5)(A). Pub. L. 96-76, Sec. 202(a), (b)(1), (2), 
inserted provisions authorizing a greater period than three years for 
individuals receiving degrees from schools of medicine, osteopathy, and 
dentistry, and provisions respecting individuals receiving degrees from 
schools of veterinary medicine, optometry, podiatry, and pharmacy, and 
substituted ``No period'' for ``No such period''.
    Subsec. (b)(5)(B). Pub. L. 96-76, Sec. 202(b)(3), substituted 
``referred to in subparagraph (A)'' for ``of medicine, osteopathy, or 
dentistry''.
    1978--Subsec. (d). Pub. L. 95-626 substituted ``subpart II of part 
D'' for ``subpart II of part C''.


                    Effective Date of 1981 Amendment

    Section 2709(h) of Pub. L. 97-35 provided that: ``The amendments 
made by paragraphs (2), (3), and (5)(B) of subsection (c) [amending this 
section] shall apply with respect to contracts entered into under the 
National Health Service Corps scholarship program under subpart III of 
part C of title VII of the Public Health Service Act [section 294r et 
seq. of this title] after the date of the enactment of this Act [Aug. 
13, 1981]. An individual who before such date has entered into such a 
contract and who has not begun the period of obligated service required 
under such contract shall be given the opportunity to revise such 
contract to permit the individual to serve such period as a member of 
the National Health Service Corps who is not an employee of the United 
States.''


                             Effective Date

    Section effective Oct. 1, 1977, see section 408(b)(1) of Pub. L. 94-
484, set out in part as a note under section 254l of this title.


 Effective Date; Savings Provision; Credit for Period of Internship or 
     Residency Before September 30, 1977, Towards Service Obligation

    See section 408(b)(2) of Pub. L. 94-484, set out as a note under 
section 254l of this title.


Special Retention Pay for Regular or Reserve Officers for Period Officer 
                     Is Obligated Under This Section

    Pub. L. 100-446, title II, Sept. 27, 1988, 102 Stat. 1816, provided 
that: ``the Secretary of Health and Human Services may authorize special 
retention pay under paragraph (4) of 37 U.S.C. 302(a) to any regular or 
reserve officer for the period during which the officer is obligated 
under section 338B [now 338C] of the Public Health Service Act [this 
section] and assigned and providing direct health services or serving 
the officer's obligation as a specialist''.
    Similar provisions were contained in the following prior 
appropriation acts:
    Pub. L. 100-202, Sec. 101(g) [title II], Dec. 22, 1987, 101 Stat. 
1329-213, 1329-246.
    Pub. L. 99-500, Sec. 101(h) [title II], Oct. 18, 1986, 100 Stat. 
1783-242, 1783-277, and Pub. L. 99-591, Sec. 101(h) [title II], Oct. 30, 
1986, 100 Stat. 3341-242, 3341-277.

                  Section Referred to in Other Sections

    This section is referred to in sections 210, 242a, 254n, 254o, 254q, 
288-2, 288-5, 293b, 11709 of this title; title 25 sections 1613a, 1616e, 
1621p.
