PUBLIC LAW 101-597 —NOV. 16, 1990 ' 104 STAT. 3031 from non-Federal contributions under subsection (b); and "(ii) the contract provides that the health professional involved will satisfy the requirement of obligated service under the contract solely through the provision of primary health services in a health manpower shortage area that is receiving priority for purposes of section 333A(a)(l) and that is authorized to receive assignments under section 333 of individuals who are participating in the Scholarship Program under section 338A. "(d) RESTRICTIONS ON USE OF FUNDS.—The Secretary may not make a grant under subsection (a) unless the State involved agrees that the grant will not be expended— "(1) to conduct activities for which Federal funds are expended— "(A) within the State to provide technical or other nonfinancial assistance under subsection (f) of section 330; "(B) under a memorandum of agreement entered into with the State under subsection (h) of such section; or "(C) under a grant under section 338J; or "(2) for any purpose other than making pa3m:ients on behalf of health professionals under contracts entered into pursuant to subsection (a)(2). "(e) REPORTS.—The Secretary may not make a grant under subsection (a) unless the State involved agrees— "(1) to submit to the Secretary reports providing the same types of information regarding the program operated pursuant to such subsection as reports submitted pursuant to subsection (i) of section 338B provide regarding the Loan Repa3mient Program under such section; and "(2) to submit such a report not later than January 10 of each fiscal year immediately following any fiscal year for which the State has received such a grant. "(f) REQUIREMENT OF APPLICATION.—The Secretary may not make a grant under subsection (a) unless an application for the grant is submitted to the Secretary and the application is in such form, is made in such manner, and contains such agreements, assurances, and information as the Secretary determines to be necessary to carry out such subsection. " (g) NONCOMPLIANCE. — "(1) IN GENERAL.—The Secretary may not make payments under subsection (a) to a State for smy fiscal year subsequent to the first fiscal year of such payments unless the Secretary determines that, for the immediately preceding fiscal year, the State has complied with each of the agreements made by the State under this section. " (2) REDUCTION IN GRANT RELATIVE TO NUMBER OF BREACHED CONTRACTS.— "(A) Before making a grant under subsection (a) to a State for a fiscal year, the Secretary shall determine the number of contracts provided by the State under paragraph (2) of such subsection with respect to which there has been an initial breach by the health professionals involved during the fiscal year preceding the fiscal year for which the State is applying to receive the grant.
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