104 STAT. 3030 PUBLIC LAW 101-597—NOV. 16, 1990 the professionals agreeing to provide primary health services in health manpower shortage areas. "(3) DIRECT ADMINISTRATION BY STATE AGENCY. —The Secretary may not make a grant under paragraph (1) unless the State involved agrees that the program operated with the grant will be administered directly by a State agency. "(b) REQUIREMENT OF MATCHING FUNDS.— "(1) IN GENERAL.—The Secretary may not make a grant under subsection (a) unless the State agrees that, with respect to the costs of making payments on behalf of individuals under contracts made pursuant to paragraph (2) of such subsection, the State will make available (directly or through donations from public or private entities) non-Federal contributions in cash toward such costs in an amount equal to not less than $1 for each $1 of Federal funds provided in the grant. " (2) DETERMINATION OF AMOUNT OF NON-FEDERAL CONTRIBU- TION.—In determining the amount of non-Federal contributions in cash that a State has provided pursuant to paragraph (1), the Secretary may not include £my amounts provided to the State by the Federal Government. "(c) COORDINATION WITH FEDERAL PROGRAM.— " (1) ASSIGNMENTS FOR HEALTH MANPOWER SHORTAGE AREAS UNDER FEDERAL PROGRAM. —The Secretary may not make a grant under subsection (a) unless the State involved agrees that, in carrying out the program operated with the grant, the State will assign health professionals participating in the program only to public and nonprofit private entities located in and providing health services in health manpower shortage areas. "(2) REMEDIES FOR BREACH OF CONTRACTS. — The Secretary may not make a grant under subsection (a) unless the State involved agrees that the contracts provided by the State pursuant to paragraph (2) of such subsection will provide remedies for any breach of the contracts by the health professionals involved. "(3) LIMITATION REGARDING CONTRACT INDUCEMENTS.— "(A) Except as provided in subparagraph (B), the Secretary may not make a grant under subsection (a) unless the State involved agrees that the contracts provided by the State pursuant to paragraph (2) of such subsection will not be provided on terms that are more favorable to health professionals than the most favorable terms that the Secretary is authorized to provide for contracts under the Loan Repayment Program under section 338B, including terms regarding— "(i) the annual amount of payments provided on behalf of the professionals regarding educational loans; and "(ii) the availability of remedies for any breach of the contracts by the health professionals involved. "(B) With respect to the limitation established in subparagraph (A) regarding the annual amount of pay- ments that may be provided to a health professional under a contract provided by a State pursuant to subsection (a)(2), such limitation shall not apply with respect to a contract if— "(i) the excess of such annual payments above the maximum amount authorized in section 338B(g)(2)(A) for annual payments regarding contracts is paid solely
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