124 STAT. 610 PUBLIC LAW 111–148—MAR. 23, 2010 State, local, or tribal public health agency or a related fellow- ship program in a position related to the course of study or program for which the contract was awarded for a period of time (referred to in this section as the ‘period of obligated service’) equal to the greater of— ‘‘(A) 3 years; or ‘‘(B) such longer period of time as determined appro- priate by the Secretary and the individual; ‘‘(3) an agreement, as appropriate, on the part of the indi- vidual to relocate to a priority service area (as determined by the Secretary) in exchange for an additional loan repayment incentive amount to be determined by the Secretary; ‘‘(4) a provision that any financial obligation of the United States arising out of a contract entered into under this section and any obligation of the individual that is conditioned thereon, is contingent on funds being appropriated for loan repayments under this section; ‘‘(5) a statement of the damages to which the United States is entitled, under this section for the individual’s breach of the contract; and ‘‘(6) such other statements of the rights and liabilities of the Secretary and of the individual, not inconsistent with this section. ‘‘(d) PAYMENTS.— ‘‘(1) IN GENERAL.—A loan repayment provided for an indi- vidual under a written contract under the Program shall 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 indi- vidual (or both), which loans were made for tuition expenses incurred by the individual. ‘‘(2) PAYMENTS FOR YEARS SERVED.—For each year of obli- gated service that an individual contracts to serve under sub- section (c) the Secretary may pay up to $35,000 on behalf of the individual for loans described in paragraph (1). With respect to participants under the Program whose total eligible loans are less than $105,000, the Secretary shall pay an amount that does not exceed 1⁄3 of the eligible loan balance for each year of obligated service of the individual. ‘‘(3) TAX LIABILITY.—For the purpose of providing reimbursements for tax liability resulting from payments under paragraph (2) on behalf of an individual, the Secretary shall, in addition to such payments, make payments to the individual in an amount not to exceed 39 percent of the total amount of loan repayments made for the taxable year involved. ‘‘(e) POSTPONING OBLIGATED SERVICE.—With respect to an indi- vidual receiving a degree or certificate from a health professions or other related school, the date of the initiation of the period of obligated service may be postponed as approved by the Secretary. ‘‘(f) BREACH OF CONTRACT.—An individual who fails to comply with the contract entered into under subsection (c) shall be subject to the same financial penalties as provided for under section 338E for breaches of loan repayment contracts under section 338B. ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $195,000,000 for fiscal Penalty.
