[Congressional Record Volume 148, Number 128 (Thursday, October 3, 2002)]
[Senate]
[Pages S9927-S9930]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   PHARMACY EDUCATION AID ACT OF 2002

  Mr. REID. I ask unanimous consent that the Senate proceed to the 
consideration of Calendar No. 621, S. 1806.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (S. 1806) to amend the Public Health Service Act 
     with respect to health professions programs regarding the 
     practice of pharmacy.

  There being no objection, the Senate proceeded to consider the bill 
which had been reported from the Committee on Health, Education, Labor, 
and Pensions, with an amendment to strike all after the enacting clause 
and inserting in lieu thereof the following:
  [Strike the part shown in black brackets and insert the part shown in 
italic.]
       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 ``Pharmacy Education Aid Act 
     of 2001''.

     [SEC. 2. FINDINGS.

       [Congress makes the following findings:
       [(1) Pharmacists are an important link in our Nation's 
     health care system. A critical shortage of pharmacists is 
     threatening the ability of pharmacies to continue to provide 
     important prescription related services.
       [(2) In the landmark report entitled ``To Err is Human: 
     Building a Safer Health System'', the Institute of Medicine 
     reported that medication errors can be partially attributed 
     to factors that are indicative of a shortage of pharmacists 
     (such as too many customers, numerous distractions, and staff 
     shortages).
       [(3) Congress acknowledged in the Healthcare Research and 
     Quality Act of 1999 (Public Law 106-129) a growing demand for 
     pharmacists by requiring the Secretary of Health and Human 
     Services to conduct a study to determine whether there is a 
     shortage of pharmacists in the United States and, if so, to 
     what extent.
       [(4) As a result of Congress' concern about how a shortage 
     of pharmacists would impact the public health, the Secretary 
     of Health and Human Services published a report entitled 
     ``The Pharmacist Workforce: A Study in Supply and Demand for 
     Pharmacists'' in December of 2000.
       [(5) ``The Pharmacist Workforce: A Study in Supply and 
     Demand for Pharmacists'' found that ``While the overall 
     supply of pharmacists has increased in the past decade, there 
     has been an unprecedented demand for pharmacists and for 
     pharmaceutical care services, which has not been met by the 
     currently available supply'' and that the ``evidence clearly 
     indicates the emergence of a shortage of pharmacists over the 
     past two years''.
       [(6) The same study also found that ``The factors causing 
     the current shortage are of a nature not likely to abate in 
     the near future without fundamental changes in pharmacy 
     practice and education.'' The study projects that the number 
     of prescriptions filled by community pharmacists will 
     increase by 20 percent by 2004. In contrast, the number of 
     community pharmacists is expected to increase by only 6 
     percent by 2005.
       [(7) The demand for pharmacists will increase as 
     prescription drug use continues to grow.

     [SEC. 3. INCLUSION OF PRACTICE OF PHARMACY IN PROGRAM FOR 
                   NATIONAL HEALTH SERVICE CORPS.

       [(a) Inclusion in Corps Mission.--Section 331(a)(3) of the 
     Public Health Service Act (42 U.S.C. 254d(a)(3)) is amended--
       [(1) in subparagraph (D), by adding at the end the 
     following: ``Such term includes pharmacist services.''; and

[[Page S9928]]

       [(2) by adding at the end the following:
       [``(E)(i) The term `pharmacist services' includes drug 
     therapy management services furnished by a pharmacist, 
     individually or on behalf of a pharmacy provider, and such 
     services and supplies furnished incident to the pharmacist's 
     drug therapy management services, that the pharmacist is 
     legally authorized to perform (in the State in which the 
     individual performs such services) in accordance with State 
     law (or the State regulatory mechanism provided for by State 
     law).''.
       [(b) Scholarship Program.--Section 338A of the Public 
     Health Service Act (42 U.S.C. 254l) is amended--
       [(1) in subsection (a)(1), by inserting ``pharmacists,'' 
     after ``physicians,''; and
       [(2) in subsection (b)(1), by inserting ``pharmacy'' after 
     ``dentistry,''.
       [(c) Loan Repayment Program.--Section 338B of the Public 
     Health Service Act (42 U.S.C. 254l-1) is amended--
       [(1) in subsection (a)(1), by inserting ``pharmacists,'' 
     after ``physicians,''; and
       [(2) in subsection (b)(1), by inserting ``pharmacy,'' after 
     ``dentistry,''.
       [(d) Funding.--Section 338H(b)(2) of the Public Health 
     Service Act (42 U.S.C. 254q(b)(2)) is amended in subparagraph 
     (A), by inserting before the period the following: ``, which 
     may include such contracts for individuals who are in a 
     course of study or program leading to a pharmacy degree''.

     [SEC. 4. CERTAIN HEALTH PROFESSIONS PROGRAMS REGARDING 
                   PRACTICE OF PHARMACY.

       [(a) In General.--Part E of title VII of the Public Health 
     Service Act (42 U.S.C. 294n et seq.) is amended--
       [(1) by redesignating section 770 as section 771; and
       [(2) by adding at the end the following subpart:

                [``Subpart 3--Certain Workforce Programs

     [``SEC. 771. PRACTICING PHARMACIST WORKFORCE.

       [``(a) Recruiting and Retaining Students and Faculty.--
       [``(1) In general.--The Secretary may make awards of grants 
     or contracts to qualifying schools of pharmacy (as defined in 
     subsection (f)) for the purpose of carrying out programs for 
     recruiting and retaining students and faculty for such 
     schools, including programs to provide scholarships for 
     attendance at such schools to full-time students who have 
     financial need for the scholarships and who demonstrate a 
     commitment to becoming practicing pharmacists or faculty.
       [``(2) Preference in providing scholarships.--An award may 
     not be made under paragraph (1) unless the qualifying school 
     of pharmacy involved agrees that, in providing scholarships 
     pursuant to the award, the school will give preference to 
     students for whom the costs of attending the school would 
     constitute a severe financial hardship.
       [``(b) Loan Repayment Program Regarding Faculty 
     Positions.--
       [``(1) In general.--The Secretary may establish a program 
     of entering into contracts with individuals described in 
     paragraph (2) under which the individuals agree to serve as 
     members of the faculties of qualifying schools of pharmacy in 
     consideration of the Federal Government agreeing to pay, for 
     each year of such service, not more than $20,000 of the 
     principal and interest of the educational loans of such 
     individuals.
       [``(2) Eligible individuals.--The individuals referred to 
     in paragraph (1) are individuals who--
       [``(A) have a doctoral degree in pharmacy or the 
     pharmaceutical sciences; or
       [``(B) are enrolled in a school of pharmacy and are in the 
     final academic year of such school in a program leading to 
     such a doctoral degree.
       [``(3) Requirements regarding faculty positions.--The 
     Secretary may not enter into a contract under paragraph (1) 
     unless--
       [``(A) the individual involved has entered into a contract 
     with a qualifying school of pharmacy to serve as a member of 
     the faculty of the school for not less than 2 years;
       [``(B) the contract referred to in subparagraph (A) 
     provides that, in serving as a member of the faculty pursuant 
     to such subparagraph, the individual will--
       [``(i) serve full time; or
       [``(ii) serve as a member of the adjunct clinical faculty 
     and in so serving will actively supervise pharmacy students 
     for 25 academic weeks per year (or such greater number of 
     academic weeks as may be specified in the contract); and
       [``(C) such contract provides that--
       [``(i) the school will, for each year for which the 
     individual will serve as a member of the faculty under the 
     contract with the school, make payments of the principal and 
     interest due on the educational loans of the individual for 
     such year in an amount equal to the amount of such payments 
     made by the Secretary for the year;
       [``(ii) the payments made by the school pursuant to clause 
     (i) on behalf of the individual will be in addition to the 
     pay that the individual would otherwise receive for serving 
     as a member of such faculty; and
       [``(iii) the school, in making a determination of the 
     amount of compensation to be provided by the school to the 
     individual for serving as a member of the faculty, will make 
     the determination without regard to the amount of payments 
     made (or to be made) to the individual by the Federal 
     Government under paragraph (1).
       [``(4) Applicability of certain provisions.--The provisions 
     of sections 338C, 338G, and 338I shall apply to the program 
     established in paragraph (1) to the same extent and in the 
     same manner as such provisions apply to the National Health 
     Service Corps Loan Repayment Program established in subpart 
     III of part D of title III, including the applicability of 
     provisions regarding reimbursements for increased tax 
     liability and provisions regarding bankruptcy.
       [``(5) Waiver regarding school contributions.--The 
     Secretary may waive the requirement established in paragraph 
     (3)(C) if the Secretary determines that the requirement will 
     impose an undue financial hardship on the school involved.
       [``(c) Information Technology.--The Secretary may make 
     awards of grants or contracts to qualifying schools of 
     pharmacy for the purpose of assisting such schools in 
     acquiring and installing computer-based systems to provide 
     pharmaceutical education. Education provided through such 
     systems may be graduate education, professional education, or 
     continuing education. The computer-based systems may be 
     designed to provide on-site education, or education at remote 
     sites (commonly referred to as distance learning), or both.
       [``(d) Facilities.--The Secretary may award grants under 
     section 1610 for construction projects to expand, remodel, 
     renovate, or alter existing facilities for qualifying schools 
     of pharmacy or to provide new facilities for the schools.
       [``(e) Requirement Regarding Education in Practice of 
     Pharmacy.--With respect to the qualifying school of pharmacy 
     involved, the Secretary shall ensure that programs and 
     activities carried out with Federal funds provided under this 
     section have the goal of educating students to become 
     licensed pharmacists, or the goal of providing for faculty to 
     recruit, retain, and educate students to become licensed 
     pharmacists.
       [``(f) Qualifying School of Pharmacy.--For purposes of this 
     section, the term `qualifying school of pharmacy' means a 
     college or school of pharmacy (as defined in section 799B) 
     that, in providing clinical experience for students, requires 
     that the students serve in a clinical rotation in which 
     pharmacist services (as defined in section 331(a)(3)(E)) are 
     provided at or for--
       [``(1) a medical facility that serves a substantial number 
     of individuals who reside in or are members of a medically 
     underserved community (as so defined);
       [``(2) an entity described in any of subparagraphs (A) 
     through (L) of section 340B(a)(4) (relating to the definition 
     of covered entity);
       [``(3) a health care facility of the Department of Veterans 
     Affairs or of any of the Armed Forces of the United States;
       [``(4) a health care facility of the Bureau of Prisons;
       [``(5) a health care facility operated by, or with funds 
     received from, the Indian Health Service; or
       [``(6) a disproportionate share hospital under section 1923 
     of the Social Security Act.
       [``(g) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 2002 through 2006.''.
       [(b) Technical and Conform Amendments.--Section 1610(a) of 
     the Public Health Service Act (42 U.S.C. 300r(a)) is 
     amended--
       [(1) in paragraph (1)--
       [(A) in subparagraph (A)--
       [(i) in clause (i), by striking ``or'' at the end thereof;
       [(ii) in clause (ii), by striking the period and inserting 
     ``; or''; and
       [(iii) by adding at the end the following:
       [``(iii) expand, remodel, renovate, or alter existing 
     facilities for qualifying schools of pharmacy or to provide 
     new facilities for the schools in accordance with section 
     771(d).'';
       [(B) in subparagraph (B)--
       [(i) in clause (i), by striking ``and'' at the end thereof;
       [(ii) in clause (ii)(II), by striking the period and 
     inserting ``; or''; and
       [(iii) by adding at the end the following:
       [``(iii) a qualifying school of pharmacy (as defined in 
     section 771(f)).'';
       [(2) by striking the first sentence of paragraph (3) and 
     inserting the following: ``There are authorized to be 
     appropriated for grants under paragraph (1)(A)(iii), such 
     sums as may be necessary.''; and
       [(3) by adding at the end the following:
       [``(4) Recapture of payments.--If, during the 20-year 
     period beginning on the date of the completion of 
     construction pursuant to a grant under paragraph 
     (1)(A)(iii)--
       [``(A) the school of pharmacy involved, or other owner of 
     the facility, ceases to be a public or nonprofit private 
     entity; or
       [``(B) the facility involved ceases to be used for the 
     purposes for which it was constructed (unless the Secretary 
     determines, in accordance with regulations, that there is 
     good cause for releasing the school or other owner from such 
     obligation);

     [the United States is entitled to recover from the school or 
     other owner of the facility the amount bearing the same ratio 
     to the current value (as determined by an agreement between 
     the parties or by action brought in the United States 
     District Court for the district in which such facility is 
     situated) of the facility as the amount of the Federal 
     participation bore to the cost of the construction of such 
     facility.''.]

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Pharmacy Education Aid Act 
     of 2002''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:

[[Page S9929]]

       (1) Pharmacists are an important link in our Nation's 
     health care system. A critical shortage of pharmacists is 
     threatening the ability of pharmacies to continue to provide 
     important prescription related services.
       (2) In the landmark report entitled ``To Err is Human: 
     Building a Safer Health System'', the Institute of Medicine 
     reported that medication errors can be partially attributed 
     to factors that are indicative of a shortage of pharmacists 
     (such as too many customers, numerous distractions, and staff 
     shortages).
       (3) Congress acknowledged in the Healthcare Research and 
     Quality Act of 1999 (Public Law 106-129) a growing demand for 
     pharmacists by requiring the Secretary of Health and Human 
     Services to conduct a study to determine whether there is a 
     shortage of pharmacists in the United States and, if so, to 
     what extent.
       (4) As a result of Congress' concern about how a shortage 
     of pharmacists would impact the public health, the Secretary 
     of Health and Human Services published a report entitled 
     ``The Pharmacist Workforce: A Study in Supply and Demand for 
     Pharmacists'' in December of 2000.
       (5) ``The Pharmacist Workforce: A Study in Supply and 
     Demand for Pharmacists'' found that ``While the overall 
     supply of pharmacists has increased in the past decade, there 
     has been an unprecedented demand for pharmacists and for 
     pharmaceutical care services, which has not been met by the 
     currently available supply'' and that the ``evidence clearly 
     indicates the emergence of a shortage of pharmacists over the 
     past two years''.
       (6) The same study also found that ``The factors causing 
     the current shortage are of a nature not likely to abate in 
     the near future without fundamental changes in pharmacy 
     practice and education.'' The study projects that the number 
     of prescriptions filled by community pharmacists will 
     increase by 20 percent by 2004. In contrast, the number of 
     community pharmacists is expected to increase by only 6 
     percent by 2005.
       (7) The demand for pharmacists will increase as 
     prescription drug use continues to grow.

     SEC. 3. HEALTH PROFESSIONS PROGRAM RELATED TO THE PRACTICE OF 
                   PHARMACY.

       (a) In General.--Part E of title VII of the Public Health 
     Service Act (42 U.S.C. 294n et seq.) is amended by adding at 
     the end the following:

              ``Subpart 3--Pharmacy Workforce Development

     ``SEC. 781. LOAN REPAYMENT PROGRAM.

       ``(a) In General.--In the case of any individual--
       ``(1) who has received a baccalaureate degree in pharmacy 
     or a Doctor of Pharmacy degree from an accredited program; 
     and
       ``(2) who obtained an educational loan for pharmacy 
     education costs;

     the Secretary may enter into an agreement with such 
     individual who agrees to serve as a full-time pharmacist for 
     a period of not less than 2 years at a health care facility 
     with a critical shortage of pharmacists, to make payments in 
     accordance with subsection (b), for and on behalf of that 
     individual, on the principal of and interest on any loan of 
     that individual described in paragraph (2) which is 
     outstanding on the date the individual begins such service.
       ``(b) Manner of Payments.--
       ``(1) In general.--The payments described in subsection (a) 
     may consist of payment, in accordance with paragraph (2), on 
     behalf of the individual of the principal, interest, and 
     related expenses on government and commercial loans received 
     by the individual regarding the undergraduate or graduate 
     education of the individual (or both), which loans were made 
     for--
       ``(A) tuition expenses;
       ``(B) all other reasonable educational expenses, including 
     fees, books, and laboratory expenses, incurred by the 
     individual; or
       ``(C) reasonable living expenses as determined by the 
     Secretary.
       ``(2) Payments for years served.--
       ``(A) In general.--For each year of obligated service that 
     an individual contracts to serve under subsection (a)(3) the 
     Secretary may pay up to $35,000 on behalf of the individual 
     for loans described in paragraph (1). In making a 
     determination of the amount to pay for a year of such service 
     by an individual, the Secretary shall consider the extent to 
     which each such determination--
       ``(i) affects the ability of the Secretary to maximize the 
     number of agreements that may be provided under this section 
     from the amounts appropriated for such agreements;
       ``(ii) provides an incentive to serve in areas with the 
     greatest shortages of pharmacists; and
       ``(iii) provides an incentive with respect to the 
     pharmacist involved remaining in the area and continuing to 
     provide pharmacy services after the completion of the period 
     of obligated service under agreement.
       ``(B) Repayment schedule.--Any arrangement made by the 
     Secretary for the making of loan repayments in accordance 
     with this subsection shall provide that any repayments for a 
     year of obligated service shall be made not later than the 
     end of the fiscal year in which the individual completes such 
     year of service.
       ``(3) Tax liability.--For the purpose of providing 
     reimbursements for tax liability resulting from payments 
     under paragraph (2) on behalf of an individual--
       ``(A) the Secretary shall, in addition to such payments, 
     make payments to the individual in an amount equal to 39 
     percent of the total amount of loan repayments made for the 
     taxable year involved; and
       ``(B) may make such additional payments as the Secretary 
     determines to be appropriate with respect to such purpose.
       ``(4) Payment schedule.--The Secretary may enter into an 
     agreement with the holder of any loan for which payments are 
     made under this section to establish a schedule for the 
     making of such payments.
       ``(c) Preferences.--In entering into agreements under 
     subsection (a), the Secretary shall give preference to 
     qualified applicants with the greatest financial need.
       ``(d) Reports.--
       ``(1) Annual report.--Not later than 18 months after the 
     date of enactment of the Pharmacy Education Aid Act, and 
     annually thereafter, the Secretary shall prepare and submit 
     to Congress a report describing the program carried out under 
     this section, including statements regarding--
       ``(A) the number of enrollees, loan repayments, and 
     recipients;
       ``(B) the number of graduates;
       ``(C) the amount of loan repayments made;
       ``(D) which educational institution the recipients 
     attended;
       ``(E) the number and placement location of the loan 
     repayment recipients at health care facilities with a 
     critical shortage of pharmacists;
       ``(F) the default rate and actions required;
       ``(G) the amount of outstanding default funds of the loan 
     repayment program;
       ``(H) to the extent that it can be determined, the reason 
     for the default;
       ``(I) the demographics of the individuals participating in 
     the loan repayment program; and
       ``(J) an evaluation of the overall costs and benefits of 
     the program.
       ``(2) 5-year report.--Not later than 5 years after the date 
     of enactment of the Pharmacy Education Aid Act, the Secretary 
     shall prepare and submit to Congress a report on how the 
     program carried out under this section interacts with other 
     Federal loan repayment programs for pharmacists and 
     determining the relative effectiveness of such programs in 
     increasing pharmacists practicing in areas with a critical 
     shortage or pharmacists.
       ``(e) Breach of Agreement.--
       ``(1) In general.--In the case of any program under this 
     section under which an individual makes an agreement to 
     provide health services for a period of time in accordance 
     with such program in consideration of receiving an award of 
     Federal funds regarding education as a pharmacists (including 
     an award for the repayment of loans), the following applies 
     if the agreement provides that this subsection is applicable:
       ``(A) In the case of a program under this section that 
     makes an award of Federal funds for attending an accredited 
     program of pharmacy (in this section referred to as a 
     `pharmacy program'), the individual is liable to the Federal 
     Government for the amount of such award (including amounts 
     provided for expenses related to such attendance), and for 
     interest on such amount at the maximum legal prevailing rate, 
     if the individual--
       ``(i) fails to maintain an acceptable level of academic 
     standing in the pharmacy program (as indicated by the program 
     in accordance with requirements established by the 
     Secretary);
       ``(ii) is dismissed from the pharmacy program for 
     disciplinary reasons; or
       ``(iii) voluntarily terminates the pharmacy program.
       ``(B) The individual is liable to the Federal Government 
     for the amount of such award (including amounts provided for 
     expenses related to such attendance), and for interest on 
     such amount at the maximum legal prevailing rate, if the 
     individual fails to provide health services in  accordance 
     with the program under this section for the period of time 
     applicable under the program.
       ``(2) Waiver or suspension of liability.--In the case of an 
     individual or health facility making an agreement for 
     purposes of paragraph (1), the Secretary shall provide for 
     the waiver or suspension of liability under such subsection 
     if compliance by the individual or the health facility, as 
     the case may be, with the agreements involved is impossible, 
     or would involve extreme hardship to the individual or 
     facility, and if enforcement of the agreements with respect 
     to the individual or facility would be unconscionable.
       ``(3) Date certain for recovery.--Subject to paragraph (2), 
     any amount that the Federal Government is entitled to recover 
     under paragraph (1) shall be paid to the United States not 
     later than the expiration of the 3-year period beginning on 
     the date the United States becomes so entitled.
       ``(4) Availability.--Amounts recovered under paragraph (1) 
     with respect to a program under this section shall be 
     available for the purposes of such program, and shall remain 
     available for such purposes until expended.
       ``(f) Definition.--In this section, the term `health care 
     facility' means an Indian Health Service health center, a 
     Native Hawaiian health center, a hospital, a pharmacy, a 
     Federal qualified health center, a rural health clinic, a 
     nursing home, a home health agency, a hospice program, a 
     public health clinic, a State or local department of public 
     health, a skilled nursing facility, an ambulatory surgical 
     center, or any other facility determined appropriate by the 
     Secretary.
       ``(g) Authorization of Appropriations.--For the purpose of 
     payments under agreements entered into under subsection (a), 
     there are authorized to be appropriated such sums as may be 
     necessary for each of fiscal years 2003 through 2007.

     ``SEC. 782. PHARMACIST FACULTY LOAN PROGRAM.

       ``(a) Establishment.--The Secretary, acting through the 
     Administrator of the Health Resources and Services 
     Administration, may enter into an agreement with any school 
     of pharmacy for the establishment and operation of a student 
     loan fund in accordance with this section, to increase the 
     number of qualified pharmacy faculty.
       ``(b) Agreements.--Each agreement entered into under 
     subsection (a) shall--

[[Page S9930]]

       ``(1) provide for the establishment of a student loan fund 
     by the school involved;
       ``(2) provide for deposit in the fund of--
       ``(A) the Federal capital contributions to the fund;
       ``(B) an amount equal to not less than one-ninth of such 
     Federal capital contributions, contributed by such school;
       ``(C) collections of principal and interest on loans made 
     from the fund; and
       ``(D) any other earnings of the fund;
       ``(3) provide that the fund will be used only for loans to 
     students of the school in accordance with subsection (c) and 
     for costs of collection of such loans and interest thereon;
       ``(4) provide that loans may be made from such fund only to 
     students pursuing a full-time course of study or, at the 
     discretion of the Secretary, a part-time course of study; and
       ``(5) contain such other provisions as are necessary to 
     protect the financial interests of the United States.
       ``(c) Loan Provisions.--Loans from any student loan fund 
     established by a school pursuant to an agreement under 
     subsection (a) shall be made to an individual on such terms 
     and conditions as the school may determine, except that--
       ``(1) such terms and conditions are subject to any 
     conditions, limitations, and requirements prescribed by the 
     Secretary;
       ``(2) in the case of any individual, the total of the loans 
     for any academic year made by schools of pharmacy from loan 
     funds established pursuant to agreements under subsection (a) 
     may not exceed $30,000, plus any amount determined by the 
     Secretary on an annual basis to reflect inflation;
       ``(3) an amount up to 85 percent of any such loan (plus 
     interest thereon) shall be canceled by the school as follows:
       ``(A) upon completion by the individual of each of the 
     first, second, and third year of full-time employment, 
     required by the loan agreement entered into under this 
     subsection, as a faculty member in a school of pharmacy, the 
     school shall cancel 20 percent of the principle of, and the 
     interest on, the amount of such loan unpaid on the first day 
     of such employment; and
       ``(B) upon completion by the individual of the fourth year 
     of full-time employment, required by the loan agreement 
     entered into under this subsection, as a faculty member in a 
     school of pharmacy, the school shall cancel 25 percent of the 
     principle of, and the interest on, the amount of such loan 
     unpaid on the first day of such employment;
       ``(4) such a loan may be used to pay the cost of tuition, 
     fees, books, laboratory expenses, and other reasonable 
     education expenses;
       ``(5) such a loan shall be repayable in equal or graduated 
     periodic installments (with the right of the borrower to 
     accelerate repayment) over the 10-year period that begins 9 
     months after the individual ceases to pursue a course of 
     study at a school of pharmacy; and
       ``(6) such a loan shall--
       ``(A) beginning on the date that is 3 months after the 
     individual ceases to pursue a course of study at a school of 
     pharmacy, bear interest on the unpaid balance of the loan at 
     the rate of 3 percent per annum; or
       ``(B) subject to subsection (e), if the school of pharmacy 
     determines that the individual will not complete such course 
     of study or serve as a faculty member as required under the 
     loan agreement under this subsection, bear interest on the 
     unpaid balance of the loan at the prevailing market rate.
       ``(d) Payment of Proportionate Share.--Where all or any 
     part of a loan, or interest, is canceled under this section, 
     the Secretary shall pay to the school an amount equal to the 
     school's proportionate share of the canceled portion, as 
     determined by the Secretary.
       ``(e) Review by Secretary.--At the request of the 
     individual involved, the Secretary may review any 
     determination by a school of pharmacy under subsection 
     (c)(6)(B).
       ``(f) Information Technology.--The Secretary may make 
     awards of grants or contracts to qualifying schools of 
     pharmacy for the purpose of assisting such schools in 
     acquiring and installing computer-based systems to provide 
     pharmaceutical education. Education provided through such 
     systems may be graduate education, professional education, or 
     continuing education. The computer-based systems may be 
     designed to provide on-site education, or education at remote 
     sites (commonly referred to as distance learning), or both.
       ``(g) Requirement Regarding Education in Practice of 
     Pharmacy.--With respect to the school of pharmacy involved, 
     the Secretary shall ensure that programs and activities 
     carried out with Federal funds provided under this section 
     have the goal of educating students to become licensed 
     pharmacists, or the goal of providing for faculty to recruit, 
     retain, and educate students to become licensed pharmacists.
       ``(h) Definitions.--For purposes of this section:
       ``(1) School of pharmacy.--the term `school of pharmacy' 
     means a college or school of pharmacy (as defined in section 
     799B) that, in providing clinical experience for students, 
     requires that the students serve in a clinical rotation in 
     which pharmacist services (as defined in section 
     331(a)(3)(E)) are provided at or for--
       ``(A) a medical facility that serves a substantial number 
     of individuals who reside in or are members of a medically 
     underserved community (as so defined);
       ``(B) an entity described in any of subparagraphs (A) 
     through (L) of section 340B(a)(4) (relating to the definition 
     of covered entity);
       ``(C) a health care facility of the Department of Veterans 
     Affairs or of any of the Armed Forces of the United States;
       ``(D) a health care facility of the Bureau of Prisons;
       ``(E) a health care facility operated by, or with funds 
     received from, the Indian Health Service; or
       ``(F) a disproportionate share hospital under section 1923 
     of the Social Security Act.
       ``(2) Pharmacist services.--The term `pharmacist services' 
     includes drug therapy management services furnished by a 
     pharmacist, individually or on behalf of a pharmacy provider, 
     and such services and supplies furnished incident to the 
     pharmacist's drug therapy management services, that the 
     pharmacist is legally authorized to perform (in the State in 
     which the individual performs such services) in accordance 
     with State law (or the State regulatory mechanism provided 
     for by State law).
       ``(i) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 2003 through 2007.''.
  Mr. REID. I ask unanimous consent the committee-reported amendment be 
agreed to, the bill, as amended, be read three times and passed, the 
motion to reconsider be laid upon the table, and any statements be 
printed in the Record, with no intervening action or debate.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment in the nature of a substitute was agreed to.
  The bill (S. 1806), as amended, was read the third time and passed.

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