
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC254o-1]

 
                 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. 254o-1. Fund regarding use of amounts recovered for 
        contract breach to replace services lost as result of breach
        

(a) Establishment of Fund

    There is established in the Treasury of the United States a fund to 
be known as the National Health Service Corps Member Replacement Fund 
(hereafter in this section referred to as the ``Fund''). The Fund shall 
consist of such amounts as may be appropriated under subsection (b) of 
this section to the Fund. Amounts appropriated for the Fund shall remain 
available until expended.

(b) Authorization of appropriations to Fund

    For each fiscal year, there is authorized to be appropriated to the 
Fund an amount equal to the sum of--
        (1) the amount collected during the preceding fiscal year by the 
    Federal Government pursuant to the liability of individuals under 
    section 254o of this title for the breach of contracts entered into 
    under section 254l or 254l-1 of this title;
        (2) the amount by which grants under section 254q-1 of this 
    title have, for such preceding fiscal year, been reduced under 
    subsection (g)(2)(B) of such section; and
        (3) the aggregate of the amount of interest accruing during the 
    preceding fiscal year on obligations held in the Fund pursuant to 
    subsection (d) of this section and the amount of proceeds from the 
    sale or redemption of such obligations during such fiscal year.

(c) Use of Fund

              (1) Payments to certain health facilities

        Amounts in the Fund and available pursuant to appropriations Act 
    may, subject to paragraph (2), be expended by the Secretary to make 
    payments to any entity--
            (A) to which a Corps member has been assigned under section 
        254f of this title; and
            (B) that has a need for a health professional to provide 
        primary health services as a result of the Corps member having 
        breached the contract entered into under section 254l or 254l-1 
        of this title by the individual.

                       (2) Purpose of payments

        An entity receiving payments pursuant to paragraph (1) may 
    expend the payments to recruit and employ a health professional to 
    provide primary health services to patients of the entity, or to 
    enter into a contract with such a professional to provide the 
    services to the patients.

(d) Investment

                           (1) In general

        The Secretary of the Treasury shall invest such amounts of the 
    Fund as such Secretary determines are not required to meet current 
    withdrawals from the Fund. Such investments may be made only in 
    interest-bearing obligations of the United States. For such purpose, 
    such obligations may be acquired on original issue at the issue 
    price, or by purchase of outstanding obligations at the market 
    price.

                       (2) Sale of obligations

        Any obligation acquired by the Fund may be sold by the Secretary 
    of the Treasury at the market price.

(July 1, 1944, ch. 373, title III, Sec. 338F, as added Pub. L. 101-597, 
title II, Sec. 204, Nov. 16, 1990, 104 Stat. 3027.)


                            Prior Provisions

    A prior section 338F of act July 1, 1944, was renumbered section 
338G by Pub. L. 101-597 and is classified to section 254p of this title.
    Another prior section 338F of act July 1, 1944, was renumbered 
section 338G by section 201(2) of Pub. L. 100-177 and classified to 
section 254q of this title, prior to repeal by Pub. L. 100-177, title 
II, Sec. 203, Dec. 1, 1987, 101 Stat. 999.
