[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2115 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2115

   To amend title 38, United States Code, to establish a scholarship 
program and an education loan debt reduction program to facilitate the 
 employment of primary care and other health care professionals by the 
        Veterans Health Administration, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 22, 1998

Mr. Rockefeller (for himself and Ms. Mikulski) introduced the following 
 bill; which was read twice and referred to the Committee on Veterans' 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend title 38, United States Code, to establish a scholarship 
program and an education loan debt reduction program to facilitate the 
 employment of primary care and other health care professionals by the 
        Veterans Health Administration, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Veterans Affairs 
Primary Care Providers Incentive Act of 1998''.

SEC. 2. SCHOLARSHIP PROGRAM FOR DEPARTMENT OF VETERANS AFFAIRS 
              EMPLOYEES RECEIVING EDUCATION OR TRAINING IN THE HEALTH 
              PROFESSIONS.

    (a) Program Authority.--(1) Chapter 76 of title 38, United States 
Code, is amended by adding at the end the following new subchapter:

        ``SUBCHAPTER VI--EMPLOYEE INCENTIVE SCHOLARSHIP PROGRAM

``Sec. 7671. Authority for program
    ``As part of the Educational Assistance Program, the Secretary 
shall carry out a scholarship program under this subchapter. The 
program shall be known as the Department of Veterans Affairs Employee 
Incentive Scholarship Program (hereinafter in this subchapter referred 
to as the `Program').
``Sec. 7672. Eligibility; agreement
    ``(a) Eligibility.--To be eligible to participate in the Program, 
an individual--
            ``(1) must be an eligible Department employee who is 
        accepted for enrollment or enrolled (as described in section 
        7602 of this title) as a full-time or part-time student in a 
        field of education or training described in subsection (c); and
            ``(2) must demonstrate financial need, as determined under 
        regulations prescribed by the Secretary.
    ``(b) Eligible Department Employees.--For purposes of subsection 
(a), an eligible Department employee is any employee of the Department 
who, as of the date on which the employee submits an application for 
participation in the Program, has been continuously employed by the 
Department for not less than two years.
    ``(c) Qualifying Fields of Education or Training.--A scholarship 
may be awarded under the Program only for education and training in a 
field leading to appointment or retention in a position under section 
7401 of this title.
    ``(d) Preference in Award of Scholarships.--(1) Notwithstanding 
section 7603(d) of this title and subject to paragraph (2), in 
selecting participants in the Program, the Secretary shall give 
preference to the following applicants, in the order specified:
            ``(A) Applicants who are or will be pursuing a course of 
        education or training in a field relating to the provision of 
        primary care health services, as designated by the Secretary.
            ``(B) Applicants who are employed at Department health-care 
        facilities located in rural areas or at which there is an 
        inadequate supply of individuals qualified to hold a position 
        under section 7401 of this title, as so designated.
    ``(2) In the case of a pool of applicants covered by subparagraph 
(A) or (B) of paragraph (1), the Secretary shall give preference in the 
award of scholarships to the members of the pool who have the greatest 
financial need.
    ``(3) The Secretary shall maintain, and update periodically, a list 
setting forth--
            ``(A) the fields of education or training covered by 
        subparagraph (A) of paragraph (1); and
            ``(B) the facilities covered by subparagraph (B) of that 
        paragraph.
    ``(e) Agreement.--(1) An agreement between the Secretary and a 
participant in the Program shall (in addition to the requirements set 
forth in section 7604 of this title) include the following:
            ``(A) The Secretary's agreement to provide the participant 
        with a scholarship under the Program for a specified number 
        (from one to three) of school years during which the 
        participant pursues a course of education or training described 
        in subsection (c) that meets the requirements set forth in 
        section 7602(a) of this title.
            ``(B) The participant's agreement to serve as a full-time 
        employee in the Veterans Health Administration for a period of 
        time (hereinafter in this subchapter referred to as the `period 
        of obligated service') of one calendar year for each school 
        year or part thereof for which the participant was provided a 
        scholarship under the Program, but for not less than two years.
            ``(C) The participant's agreement to serve under 
        subparagraph (B) in a Department facility selected by the 
        Secretary.
    ``(2) In a case in which an extension is granted under section 
7673(c)(2) of this title, the number of years for which a scholarship 
may be provided under the Program shall be the number of school years 
provided for as a result of the extension.
    ``(3) In the case of a participant who is a part-time student--
            ``(A) the period of obligated service shall be reduced in 
        accordance with the proportion that the number of credit hours 
        carried by such participant in any such school year bears to 
        the number of credit hours required to be carried by a full-
        time student in the course of training being pursued by the 
        participant, but in no event to less than one year; and
            ``(B) the agreement shall include the participant's 
        agreement to maintain employment, while enrolled in such course 
        of education or training, as a Department employee permanently 
assigned to a Department health-care facility.
``Sec. 7673. Scholarship
    ``(a) Scholarship.--A scholarship provided to a participant in the 
Program for a school year shall consist of payment of the tuition of 
the participant for that school year and payment of other reasonable 
educational expenses (including fees, books, and laboratory expenses) 
for that school year.
    ``(b) Amounts.--The total amount of the scholarship payable under 
subsection (a)--
            ``(1) in the case of a participant in the Program who is a 
        full-time student, may not exceed $10,000 for any one year; and
            ``(2) in the case of a participant in the Program who is a 
        part-time student, shall be the amount specified in paragraph 
        (1) reduced in accordance with the proportion that the number 
        of credit hours carried by the participant in that school year 
        bears to the number of credit hours required to be carried by a 
        full-time student in the course of education or training being 
        pursued by the participant.
    ``(c) Limitation on Years of Payment.--(1) Subject to paragraph 
(2), a participant in the Program may not receive a scholarship under 
subsection (a) for more than three school years.
    ``(2) The Secretary may extend the number of school years for which 
a scholarship may be awarded to a participant in the Program who is a 
part-time student to a maximum of six school years if the Secretary 
determines that the extension would be in the best interest of the 
United States.
    ``(d) Payment of Educational Expenses by Educational 
Institutions.--The Secretary may arrange with an educational 
institution in which a participant in the Program is enrolled for the 
payment of the educational expenses described in subsection (a). Such 
payments may be made without regard to subsections (a) and (b) of 
section 3324 of title 31.
``Sec. 7674. Status of certain participants
    ``(a) Status.--A participant in the Program described in subsection 
(b) shall not, by reason of such participation--
            ``(1) be considered an employee of the Federal Government; 
        or
            ``(2) be counted against any personnel ceiling affecting 
        the Veterans Health Administration.
    ``(b) Covered Participants.--Subsection (a) applies in the case of 
any participant in the Program who is a student on a full-time basis 
and is not performing service for the Department.
``Sec. 7675. Obligated service
    ``(a) In General.--Each participant in the Program shall provide 
service as a full-time employee of the Department for the period of 
obligated service provided in the agreement of the participant entered 
into under section 7603 of this title. Such service shall be provided 
in the full-time clinical practice of such participant's profession or 
in another health-care position in an assignment or location determined 
by the Secretary.
    ``(b) Determination of Service Commencement Date.--(1) Not later 
than 60 days before a participant's service commencement date, the 
Secretary shall notify the participant of that service commencement 
date. That date is the date for the beginning of the participant's 
period of obligated service.
    ``(2) As soon as possible after a participant's service 
commencement date, the Secretary shall--
            ``(A) in the case of a participant who is not a full-time 
        employee in the Veterans Health Administration, appoint the 
        participant as such an employee; and
            ``(B) in the case of a participant who is an employee in 
        the Veterans Health Administration but is not serving in a 
        position for which the participant's course of education or 
        training prepared the participant, assign the participant to 
        such a position.
    ``(3)(A) In the case of a participant receiving a degree from a 
school of medicine, osteopathy, dentistry, optometry, or podiatry, the 
participant's service commencement date is the date upon which the 
participant becomes licensed to practice medicine, osteopathy, 
dentistry, optometry, or podiatry, as the case may be, in a State.
    ``(B) In the case of a participant receiving a degree from a school 
of nursing, the participant's service commencement date is the later 
of--
            ``(i) the participant's course completion date; or
            ``(ii) the date upon which the participant becomes licensed 
        as a registered nurse in a State.
    ``(C) In the case of a participant not covered by subparagraph (A) 
or (B), the participant's service commencement date is the later of--
            ``(i) the participant's course completion date; or
            ``(ii) the date the participant meets any applicable 
        licensure or certification requirements.
    ``(4) The Secretary shall by regulation prescribe the service 
commencement date for participants who were part-time students. Such 
regulations shall prescribe terms as similar as practicable to the 
terms set forth in paragraph (3).
    ``(c) Commencement of Obligated Service.--(1) Except as provided in 
paragraph (2), a participant in the Program shall be considered to have 
begun serving the participant's period of obligated service--
            ``(A) on the date, after the participant's course 
        completion date, on which the participant (in accordance with 
        subsection (b)) is appointed as a full-time employee in the 
        Veterans Health Administration; or
            ``(B) if the participant is a full-time employee in the 
        Veterans Health Administration on such course completion date, 
        on the date thereafter on which the participant is assigned to 
        a position for which the participant's course of training 
        prepared the participant.
    ``(2) A participant in the Program who on the participant's course 
completion date is a full-time employee in the Veterans Health 
Administration serving in a capacity for which the participant's course 
of training prepared the participant shall be considered to have begun 
serving the participant's period of obligated service on such course 
completion date.
    ``(d) Course Completion Date Defined.--In this section, the term 
`course completion date' means the date on which a participant in the 
Program completes the participant's course of education or training 
under the Program.
``Sec. 7676. Breach of agreement: liability
    ``(a) Liquidated Damages.--A participant in the Program (other than 
a participant described in subsection (b)) who fails to accept payment, 
or instructs the educational institution in which the participant is 
enrolled not to accept payment, in whole or in part, of a scholarship 
under the agreement entered into under section 7603 of this title shall 
be liable to the United States for liquidated damages in the amount of 
$1,500. Such liability is in addition to any period of obligated 
service or other obligation or liability under the agreement.
    ``(b) Liability During Course of Education or Training.--(1) Except 
as provided in subsection (d), a participant in the Program shall be 
liable to the United States for the amount which has been paid to or on 
behalf of the participant under the agreement if any of the following 
occurs:
            ``(A) The participant fails to maintain an acceptable level 
        of academic standing in the educational institution in which 
        the participant is enrolled (as determined by the educational 
        institution under regulations prescribed by the Secretary).
            ``(B) The participant is dismissed from such educational 
        institution for disciplinary reasons.
            ``(C) The participant voluntarily terminates the course of 
        education or training in such educational institution before 
        the completion of such course of education or training.
            ``(D) The participant fails to become licensed to practice 
        medicine, osteopathy, dentistry, podiatry, or optometry in a 
        State, fails to become licensed as a registered nurse in a 
        State, or fails to meet any applicable licensure requirement in 
        the case of any other health-care personnel who provide either 
        direct patient-care services or services incident to direct 
        patient-care services, during a period of time determined under 
        regulations prescribed by the Secretary.
            ``(E) In the case of a participant who is a part-time 
        student, the participant fails to maintain employment, while 
        enrolled in the course of training being pursued by the 
        participant, as a Department employee.
    ``(2) Liability under this subsection is in lieu of any service 
obligation arising under a participant's agreement.
    ``(c) Liability During Period of Obligated Service.--(1) Except as 
provided in subsection (d), if a participant in the Program breaches 
the agreement by failing for any reason to complete such participant's 
period of obligated service, the United States shall be entitled to 
recover from the participant an amount determined in accordance with 
the following formula:

                                                                        
                                                t-s                     
      A=3<greek-PH>             (       ------------------       )      
                                                 t                      
                                                                        

    ``(2) In such formula:
            ``(A) `A' is the amount the United States is entitled to 
        recover.
            ``(B) `<greek-PH>' is the sum of--
                    ``(i) the amounts paid under this subchapter to or 
                on behalf of the participant; and
                    ``(ii) the interest on such amounts which would be 
                payable if at the time the amounts were paid they were 
                loans bearing interest at the maximum legal prevailing 
                rate, as determined by the Treasurer of the United 
                States.
            ``(C) `t' is the total number of months in the 
        participant's period of obligated service, including any 
        additional period of obligated service in accordance with 
        section 7673(c)(2) of this title.
            ``(D) `s' is the number of months of such period served by 
        the participant in accordance with section 7673 of this title.
    ``(d) Limitation on Liability for Reductions-in-Force.--Liability 
shall not arise under subsection (b)(1)(E) or (c) in the case of a 
participant otherwise covered by the subsection concerned if the 
participant fails to maintain employment as a Department employee due 
to a reduction-in-force.
    ``(e) Period for Payment of Damages.--Any amount of damages which 
the United States is entitled to recover under this section shall be 
paid to the United States within the one-year period beginning on the 
date of the breach of the agreement.
``Sec. 7677. Expiration of program
    ``The Secretary may not furnish scholarships to individuals who 
commence participation in the Program after December 31, 2001.''.
    (2) The table of sections at the beginning of chapter 76 of title 
38, United States Code, is amended by adding at the end the following:

        ``SUBCHAPTER VI--EMPLOYEE INCENTIVE SCHOLARSHIP PROGRAM

``7671. Authority for program.
``7672. Eligibility; agreement.
``7673. Scholarship.
``7674. Status of certain participants.
``7675. Obligated service.
``7676. Breach of agreement: liability.
``7677. Expiration of program.''.
    (b) Regulations.--The Secretary of Veterans Affairs may treat 
regulations prescribed subchapter II of chapter 76 of title 38, United 
States Code, as regulations required under subchapter VI of that 
chapter, as added by subsection (a), but only to the extent that the 
regulations prescribed under such subchapter II are not inconsistent 
with the provisions of such subchapter VI.

SEC. 3. EDUCATION DEBT REDUCTION PROGRAM FOR VETERANS HEALTH 
              ADMINISTRATION HEALTH PROFESSIONALS.

    (a) Program Authority.--Chapter 76 of title 38, United States Code 
(as amended by section 2), is further amended by adding after 
subchapter VI the following new subchapter:

           ``SUBCHAPTER VII--EDUCATION DEBT REDUCTION PROGRAM

``Sec. 7681. Authority for program
    ``(a) In General.--(1) As part of the Educational Assistance 
Program, the Secretary may carry out an education debt reduction 
program under this subchapter. The program shall be known as the 
Department of Veterans Affairs Primary Care Workers Education Debt 
Reduction Program (hereinafter in this subchapter referred to as the 
`Education Debt Reduction Program').
    ``(2) The purpose of the Education Debt Reduction Program is to 
assist personnel serving in health-care positions in the Veterans 
Health Administration in reducing the amount of debt incurred by such 
personnel in completing programs of education or training that 
qualified such personnel for such service.
    ``(b) Relationship to Educational Assistance Program.--Education 
debt reduction payments under the Education Debt Reduction Program 
shall be in addition to other assistance available to individuals under 
the Educational Assistance Program.
``Sec. 7682. Eligibility
    ``(a) Eligibility.--An individual eligible to participate in the 
Education Debt Reduction Program is any individual who--
            ``(1) is serving in a position in the Veterans Health 
        Administration under an appointment under section 7402(b) of 
        this title; and
            ``(2) owes any amount of principal or interest under a loan 
        the proceeds of which were used by or on behalf of the 
        individual to pay costs relating to a course of education or 
        training which led to a degree that qualified the individual 
        for a position referred to in paragraph (1).
    ``(b) Covered Costs.--For purposes of subsection (a)(2), costs 
relating to a course of education or training include--
            ``(1) tuition expenses;
            ``(2) all other reasonable educational expenses, including 
        expenses for fees, books, and laboratory expenses; and
            ``(3) reasonable living expenses.
``Sec. 7683. Preference
    ``(a) Preference.--Notwithstanding section 7603(d) of this title, 
in selecting individuals for education debt reduction payments under 
the Education Debt Reduction Program, the Secretary shall give 
preference to the following (in the order specified):
            ``(1) Individuals recently appointed by the Secretary to 
        positions under section 7401 of this title in fields relating 
        to primary care health services, as designated by the 
        Secretary.
            ``(2) Individuals recently appointed by the Secretary to 
        positions under such section in areas in which the recruitment 
        or retention of an adequate supply of qualified health-care 
        personnel is difficult, as so designated.
            ``(3) Any other individuals serving in appointments to 
        positions described in paragraphs (1) and (2).
    ``(b) Recently Appointed Individuals.--An individual shall be 
treated as recently appointed to a position for purposes of subsection 
(a) if the individual was appointed to the position not more than 6 
months before the date of treatment for such purposes.
``Sec. 7684. Education debt reduction
    ``(a) In General.--Education debt reduction payments under the 
Education Debt Reduction Program shall consist of payments to 
individuals selected to participate in the program of amounts to 
reimburse such individuals for payments by such individuals of 
principal and interest on loans described in section 7682(a)(2) of this 
title.
    ``(b) Frequency of Payment.--(1) The Secretary may make education 
debt reduction payments to any given participant in the Education Debt 
Reduction Program on a monthly or annual basis, at the election of the 
Secretary.
    ``(2) The Secretary shall make such payments at the end of the 
period elected by the Secretary under paragraph (1).
    ``(c) Performance Requirement.--The Secretary may make education 
debt reduction payments to a participant in the Education Debt 
Reduction Program for a period only if the Secretary determines that 
the individual maintained an acceptable level of performance in the 
position or positions served by the participant during the period.
    ``(d) Maximum Annual Amount.--(1) Subject to paragraph (2), the 
total amount of education debt reduction payments made to a participant 
for a year under the Education Debt Reduction Program shall be--
            ``(A) $6,000 for the first year of the participant's 
        participation in such Program;
            ``(B) $8,000 for the second year of the participant's 
        participation in such Program; and
            ``(C) $10,000 for the third year of the participant's 
        participation in such Program.
    ``(2) The total amount payable to a participant in such Program for 
any year may not exceed the amount of the principle and interest on 
loans referred to in subsection (a) that is paid by the individual 
during such year.
``Sec. 7685. Expiration of program
    ``The Secretary may not make education debt reduction payments to 
individuals who commence participation in the Education Debt Reduction 
Program after December 31, 2001.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 76 of title 38, United States Code (as amended by section 
2(b)), is further amended by adding at the end the following:

           ``SUBCHAPTER VII--EDUCATION DEBT REDUCTION PROGRAM

``7681. Authority for program.
``7682. Eligibility.
``7683. Preference.
``7684. Education debt reduction.
``7685. Expiration of program.''.

SEC. 4. REPEAL OF PROHIBITION ON PAYMENT OF TUITION LOANS.

    Section 523(b) of the Veterans Health Care Act of 1992 (Public Law 
102-585; 106 Stat. 4959; 38 U.S.C. 7601 note) is repealed.

SEC. 5. OUTREACH.

    The Secretary of Veterans Affairs shall take appropriate actions to 
notify employees of the Department of Veterans Affairs of the benefits 
available under the Department of Veterans Affairs Employee Incentive 
Scholarship Program under subchapter VI of chapter 76 of title 38, 
United States Code (as added by section 2), and under the Department of 
Veterans Affairs Primary Care Workers Education Debt Reduction Program 
under subchapter VII of that chapter (as added by section 3).

SEC. 6. CONFORMING AMENDMENTS.

    Chapter 76 of title 38, United States Code (as amended by this 
Act), is further amended as follows:
            (1) In section 7601(a)--
                    (A) by striking out ``and'' at the end of paragraph 
                (2);
                    (B) by striking out the period at the end of 
                paragraph (3) and inserting in lieu thereof a 
                semicolon; and
                    (C) by adding at the end the following:
            ``(4) the employee incentive scholarship program provided 
        for in subchapter VI of this chapter; and''; and
            ``(5) the education debt reduction program provided for in 
        subchapter VII of this chapter.''.
            (2) In section 7602--
                    (A) in subsection (a)(1)--
                            (i) by striking out ``subchapter I or II'' 
                        and inserting in lieu thereof ``subchapter II, 
                        III, or VI'';
                            (ii) by striking out ``or for which'' and 
                        inserting in lieu thereof ``, for which''; and
                            (iii) by inserting before the period at the 
                        end the following: ``, or for which a 
                        scholarship may be awarded under subchapter VI 
                        of this chapter, as the case may be''; and
                    (B) in subsection (b), by striking out ``subchapter 
                I or II'' and inserting in lieu thereof ``subchapter 
                II, III, or VI''.
            (3) In section 7603--
                    (A) in subsection (a)--
                            (i) by striking out ``To apply to 
                        participate in the Educational Assistance 
                        Program,'' and inserting in lieu thereof ``(1) 
                        To apply to participate in the Educational 
                        Assistance Program under subsection II, III, V, 
                        or VI of this chapter,''; and
                            (ii) by adding at the end the following:
    ``(2) To apply to participate in the Educational Assistance Program 
under subchapter VII of this chapter, an individual shall submit to the 
Secretary an application for such participation.''; and
                    (B) in subsection (b)(1), by inserting ``(if 
                required)'' before the period at the end.
            (4) In section 7604, by striking out ``subchapter II, III, 
        or V'' each place it appears in paragraphs (1)(A), (2)(D), and 
        (5) and inserting in lieu thereof ``subchapter II, III, V, or 
        VI''.
            (5) In section 7632--
                    (A) in paragraph (1)--
                            (i) by striking out ``and the Tuition 
                        Reimbursement Program'' and inserting in lieu 
                        thereof ``, the Tuition Reimbursement Program, 
                        the Employee Incentive Scholarship Program, and 
                        the Education Debt Reduction Program''; and
                            (ii) by inserting ``(if any)'' after 
                        ``number of students'';
                    (B) in paragraph (2), by inserting ``(if any)'' 
                after ``education institutions''; and
                    (C) in paragraph (4)--
                            (i) by striking ``and per participant'' and 
                        inserting in lieu thereof ``, per 
                        participant''; and
                            (ii) by inserting ``, per participant in 
                        the Employee Incentive Scholarship Program, and 
                        per participant in the Education Debt Reduction 
                        Program'' before the period at the end.
            (6) In section 7636, by striking ``or a stipend'' and 
        inserting ``a stipend, or education debt reduction''.
                                 <all>