104 STAT. 2328 PUBLIC LAW 101-527—NOV. 6, 1990 study and receives adequate assurance that the grantee will enforce such provisions.". (2) APPLICATION AND PEER REVIEW.—Section 308(b)(2) of the Public Health Service Act (42 U.S.C. 242m(b)(2)) is amended— (A) in subparagraph (A), in the first sentence, by inserting after "demonstration project," the following: ' or for a grant under section 306(n),"; and (B) in subparagraph (C), by inserting before the period at the end the following: ", except that peer review groups regarding grants under section 306(n) may include appropriately qualified such officers and employees". (c) AUTHORIZATION OF APPROPRIATIONS. — Section 306(o), as redesignated by subsection (b) of this section, is amended to read as follows: "(o)(l) For health statistical and epidemiological activities undertaken or supported under subsections (a) through (m), there are authorized to be appropriated such sums as may be necessary for each of the fiscal years 1991 through 1993. "(2) For activities authorized in subsection (n), there are authorized to be appropriated $5,000,000 for fiscal year 1991, $7,500,000 for fiscal year 1992, and $10,000,000 for fiscal year 1993. Of such amounts, the Secretary shall use not more than 10 percent for administration and for activities described in subsection (n)(2).". (d) REPEAL OF CERTAIN RESTRICTION ON FUNDING. —Section 308(b)(3) of the Public Health Service Act (42 U.S.C. 242m(3)) is repealed. SEC. 8. DEMONSTRATION GRANTS TO STATES FOR COMMUNITY SCHOL- ARSHIP PROGRAMS. Subpart III of part D of title III of the Public Health Service Act (42 U.S.C 241 et seq.) is amended by inserting before subpart IV of such part the following new section: 42 USC 254u. "SEC. 338L. DEMONSTRATION GRANTS TO STATES FOR COMMUNITY SCHOLARSHIP PROGRAMS. "(a) IN GENERAL. —The Secretary, acting through the Administrator of the Health Resources and Services Administration, may make grants to States for the purpose of carrying out demonstration programs to increase the availability of primary health care in urban and rural health manpower shortage areas through assisting community organizations of such areas in educating individuals to serve as health professionals in such areas. "0>) CERTAIN REQUIREMENTS FOR STATES.— "(1) MINIMUM QUALIFICATIONS. — The Secretary may not make a grant under subsection (a) unless the State involved will, under any provision of this Act other than subsection (a), receive 1 or more grants, cooperative agreements, or contracts for the fiscal year for which the State is applying pursuant to subsection (h) to receive a grant under subsection (a). "(2) ADMINISTRATION OF PROGRAM. — The Secretary may not make a grant under subsection (a) unless the State involved agrees that the program carried out by the State with the grant will be administered directly by a single State agency. "(c) GRANTS BY STATES TO COMMUNITY ORGANIZATIONS FOR PROVI- SION OF SCHOLARSHIP CONTRACTS. — The Secretary may not make a grant under subsection (a) unless the State involved agrees, subject to subsections (d) and (e), to carry out the purpose described in subsection (a) only through operating a program in which the State
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