[Congressional Record (Bound Edition), Volume 149 (2003), Part 23]
[Senate]
[Pages 31959-31963]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   PHARMACY EDUCATION AID ACT OF 2003

  Mr. McCONNELL. I ask unanimous consent that the Senate proceed to the 
immediate consideration of Calendar No. 370, S. 648.
  The PRESIDING OFFICER. The clerk will report the bill by title.

[[Page 31960]]

  The assistant legislative clerk read as follows:

       A bill (S. 648) 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.]

                                 S. 648

       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 2003''.

     [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. HEALTH PROFESSIONS PROGRAM RELATED TO THE PRACTICE 
                   OF PHARMACY.

       [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 of 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 pharmacist (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

[[Page 31961]]

     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 2004 through 2008.

     [``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--
       [``(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 $35,000, 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 2004 through 2008.''.]

     [SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Pharmacy Education Aid Act 
     of 2003''.

     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

[[Page 31962]]

     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) Regarding access to pharmacy services in rural areas, 
     the study found that ``Remoteness, isolation from other 
     professionals, lower economic returns, reduced opportunities 
     for advancement, and other rural practice characteristics 
     remain obstacles'' to attracting pharmacists.
       (8) The demand for pharmacists will increase as 
     prescription drug use continues to grow.

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

       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 FOR PHARMACISTS SERVING IN 
                   CRITICAL SHORTAGE FACILITIES.

       ``(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;
       ``(2) who obtained an educational loan for pharmacy 
     education costs; and
       ``(3) who is licensed without restrictions in the State in 
     which the designated health care facility is located;

     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 designated health care 
     facility, 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) 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 applicants and contract recipients;
       ``(B) the amount of loan repayments made;
       ``(C) which educational institution the recipients 
     attended;
       ``(D) the number and practice locations of the loan 
     repayment recipients at health care facilities with a 
     critical shortage of pharmacists;
       ``(E) the default rate and actions required;
       ``(F) the amount of outstanding default funds of the loan 
     repayment program;
       ``(G) to the extent that it can be determined, the reason 
     for the default;
       ``(H) the demographics of the individuals participating in 
     the loan repayment program; and
       ``(I) 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 underserved areas.
       ``(e) Application of Certain Provisions.--
       ``(1) In general.--The provisions of section 338C, 338G, 
     and 338I shall apply to the program established under this 
     section in the same manner and to the same extent as such 
     provisions apply to the National Health Service Corps Loan 
     Repayment Program under subpart III of part D of title III, 
     including the applicability of provisions regarding 
     reimbursements for increased tax liability and bankruptcy.
       ``(2) Breach of agreement.--An individual who enters into 
     an agreement under subsection (a) shall be liable to the 
     Federal Government for the amount of the award under such 
     agreement (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.
       ``(3) Waiver or suspension of liability.--In the case of an 
     individual or health facility making an agreement for 
     purposes of subsection (a), the Secretary shall provide for 
     the waiver or suspension of liability under paragraph (2) if 
     compliance by the individual or the health facility, as the 
     case may be, with the agreement 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.
       ``(4) Date certain for recovery.--Subject to paragraph (3), 
     any amount that the Federal Government is entitled to recover 
     under paragraph (2) 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.
       ``(5) Availability.--Amounts recovered under paragraph (2) 
     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 a facility with a critical shortage of 
     pharmacists as determined 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 2004 through 2008.

     ``SEC. 782. PHARMACY FACULTY LOAN REPAYMENT PROGRAM.

       ``(a) Establishment of Program.--The Secretary shall 
     establish a program under which the Secretary will enter into 
     contracts with individuals described in subsection (b) and 
     such individuals will agree to serve as faculty members of 
     schools of pharmacy in consideration of the Federal 
     Government agreeing to pay, for each year of such service, 
     not more than $35,000 of the principal and interest of the 
     educational loans of such individuals.
       ``(b) Eligible Individuals.--An individual is described in 
     this subsection if such individual--
       ``(1) has a baccalaureate degree in pharmacy or a Doctor of 
     Pharmacy degree from an accredited program; or
       ``(2) is enrolled as a full-time student--
       ``(A) in an accredited pharmacy program; and
       ``(B) in the final year of a course of a study or program, 
     offered by such institution and approved by the Secretary, 
     leading to a baccalaureate degree in pharmacy or a Doctor of 
     Pharmacy degree from such a school.
       ``(c) Requirements Regarding Faculty Positions.--The 
     Secretary may not enter into a contract under subsection (a) 
     unless--
       ``(1) the individual involved has entered into a contract 
     with a school of pharmacy to serve as a member of the faculty 
     of the school for not less than 2 years; and
       ``(2) the contract referred to in paragraph (1) provides 
     that--
       ``(A) the school will, for each year for which the 
     individual will serve as a member of the faculty under 
     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;
       ``(B) the payments made by the school pursuant to 
     subparagraph (A) on behalf of the individual will be in 
     addition to the compensation that the individual would 
     otherwise receive for serving as a member of such faculty; 
     and
       ``(C) the school, in making a determination of the amount 
     of compensation to be provided by

[[Page 31963]]

     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 subsection (a).
       ``(d) Applicability of Certain Provisions.--The provisions 
     of sections 338C, 338G, and 338I shall apply to the program 
     established in subsection (a) 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 regarding bankruptcy.
       ``(e) 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 fiscal 
     years 2004 through 2008.

     ``SEC. 783. DEFINITIONS.

       ``In this subpart:
       ``(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).''.

  Mr. McCONNELL. I ask unanimous consent the committee substitute 
amendment be agreed to; the bill, as amended, be read the third time 
and passed; the motion to reconsider be laid upon the table, and any 
statements be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment in the nature of a substitute was agreed to.
  The bill (S. 648), as amended, was read the third time and passed.

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