[Congressional Bills 103th Congress] [From the U.S. Government Publishing Office] [S. 241 Introduced in Senate (IS)] 103d CONGRESS 1st Session S. 241 To provide incentives to health care providers serving rural areas, to provide grants to county health departments providing preventative health services within rural areas, to establish State health service corps demonstration projects, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES January 27 (legislative day, January 5), 1993 Mr. Pryor (for himself, Mr. Packwood, Mr. Boren, Mr. Cohen, Mr. Glenn, Mr. Bryan, Mr. Conrad, and Mr. Leahy) introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To provide incentives to health care providers serving rural areas, to provide grants to county health departments providing preventative health services within rural areas, to establish State health service corps demonstration projects, and for other purposes. 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 ``Rural Primary Care Act of 1993''. TITLE I--TAX PROVISIONS SEC. 101. NONREFUNDABLE CREDIT FOR CERTAIN PRIMARY HEALTH SERVICES PROVIDERS. (a) In General.--Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25 the following new section: ``SEC. 25A. PRIMARY HEALTH SERVICES PROVIDERS. ``(a) Allowance of Credit.--In the case of a qualified primary health services provider, there is allowed as a credit against the tax imposed by this chapter for any taxable year in a mandatory service period an amount equal to the product of-- ``(1) the lesser of-- ``(A) the number of months of such period occurring in such taxable year, or ``(B) 36 months, reduced by the number of months taken into account under this paragraph with respect to such provider for all preceding taxable years (whether or not in the same mandatory service period), multiplied by ``(2) $1,000 ($500 in the case of a qualified health services provider who is a physician assistant or a nurse practitioner). ``(b) Qualified Primary Health Services Provider.--For purposes of this section, the term `qualified primary health services provider' means any physician, physician assistant, or nurse practitioner who for any month during a mandatory service period is certified by the Bureau to be a primary health services provider who-- ``(1) is providing primary health services-- ``(A) full time, and ``(B) to individuals at least 80 percent of whom reside in a rural health professional shortage area, ``(2) is not receiving during such year a scholarship under the National Health Service Corps Scholarship Program or a loan repayment under the National Health Service Corps Loan Repayment Program, ``(3) is not fulfilling service obligations under such Programs, and ``(4) has not defaulted on such obligations. ``(c) Mandatory Service Period.--For purposes of this section, the term `mandatory service period' means the period of 60 consecutive calendar months beginning with the first month the taxpayer is a qualified primary health services provider. ``(d) Definitions and Special Rules.--For purposes of this section-- ``(1) Bureau.--The term `Bureau' means the Bureau of Health Care Delivery and Assistance, Health Resources and Services Administration of the United States Public Health Service. ``(2) Physician.--The term `physician' has the meaning given to such term by section 1861(r) of the Social Security Act. ``(3) Physician assistant; nurse practitioner.--The terms `physician assistant' and `nurse practitioner' have the meanings given to such terms by section 1861(aa)(5) of the Social Security Act. ``(4) Primary health services provider.--The term `primary health services provider' means a provider of primary health services (as defined in section 330(b)(1) of the Public Health Service Act). ``(5) Rural health professional shortage area.--The term `rural health professional shortage area' means-- ``(A) a class 1 or class 2 health professional shortage area (as defined in section 332(a)(1)(A) of the Public Health Service Act) in a rural area (as determined under section 1886(d)(2)(D) of the Social Security Act), or ``(B) an area which is determined by the Secretary of Health and Human Services as equivalent to an area described in subparagraph (A) and which is designated by the Bureau of the Census as not urbanized. ``(e) Recapture of Credit.-- ``(1) In general.--If, during any taxable year, there is a recapture event, then the tax of the taxpayer under this chapter for such taxable year shall be increased by an amount equal to the product of-- ``(A) the applicable percentage, and ``(B) the aggregate unrecaptured credits allowed to such taxpayer under this section for all prior taxable years. ``(2) Applicable recapture percentage.-- ``(A) In general.--For purposes of this subsection, the applicable recapture percentage shall be determined from the following table: ``If the recapture The applicable recap- event occurs during: ture percentage is: Months 1-24.............. 100 Months 25-36............. 75 Months 37-48............. 50 Months 49-60............. 25 Months 61 and thereafter. 0. ``(B) Timing.--For purposes of subparagraph (A), month 1 shall begin on the first day of the mandatory service period. ``(3) Recapture event defined.-- ``(A) In general.--For purposes of this subsection, the term `recapture event' means the failure of the taxpayer to be a qualified primary health services provider for any month during any mandatory service period. ``(B) Cessation of designation.--The cessation of the designation of any area as a rural health professional shortage area after the beginning of the mandatory service period for any taxpayer shall not constitute a recapture event. ``(C) Secretarial waiver.--The Secretary may waive any recapture event caused by extraordinary circumstances. ``(4) No credits against tax.--Any increase in tax under this subsection shall not be treated as a tax imposed by this chapter for purposes of determining the amount of any credit under subpart A, B, or D of this part.''. (b) Clerical Amendment.--The table of sections for subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 25 the following new item: ``Sec. 25A. Primary health services providers.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 1993. SEC. 102. NATIONAL HEALTH SERVICE CORPS LOAN REPAYMENTS EXCLUDED FROM GROSS INCOME. (a) In General.--Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by redesignating section 137 as section 138 and by inserting after section 136 the following new section: ``SEC. 137. NATIONAL HEALTH SERVICE CORPS LOAN REPAYMENTS. ``(a) General Rule.--Gross income shall not include any qualified loan repayment. ``(b) Qualified Loan Repayment.--For purposes of this section, the term `qualified loan repayment' means any payment made on behalf of the taxpayer by the National Health Service Corps Loan Repayment Program under section 338B(g) of the Public Health Service Act.''. (b) Clerical Amendment.--The table of sections for part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by striking the item relating to section 137 and inserting the following: ``Sec. 137. National Health Service Corps loan repayments. ``Sec. 138. Cross references to other Acts.''. (c) Effective Date.--The amendments made by this section shall apply to payments made under section 338B(g) of the Public Health Service Act after the date of the enactment of this Act. SEC. 103. EXPENSING OF MEDICAL EQUIPMENT. (a) In General.--Section 179 of the Internal Revenue Code of 1986 (relating to election to expense certain depreciable business assets) is amended-- (1) by striking paragraph (1) of subsection (b) and inserting the following: ``(1) Dollar limitation.-- ``(A) General rule.--The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $10,000. ``(B) Rural health care property.--In the case of rural health care property, the aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $25,000, reduced by the amount otherwise taken into account under subsection (a) for such year.''; and (2) by adding at the end of subsection (d) the following new paragraph: ``(11) Rural health care property.--For purposes of this section, the term `rural health care property' means section 179 property used by a physician (as defined in section 1861(r) of the Social Security Act) in the active conduct of such physician's full-time trade or business of providing primary health services (as defined in section 330(b)(1) of the Public Health Service Act) in a rural health professional shortage area (as defined in section 25A(d)(5)).''. (b) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 1993, in taxable years ending after such date. SEC. 104. STUDY OF EXPANSION OF CREDIT TO CERTAIN URBAN AREAS. (a) Study.--The Secretary of Health and Human Services or the Secretary's delegate shall determine the present number of, and future need for, physician and nonphysician primary care providers in medically underserved urban areas. Such determination shall form the basis for a study of the feasibility (including cost estimates) of extending the tax credit provided by the amendments made by section 101 of this title to such providers. (b) Reports.--An interim report of the study described in paragraph (1) shall be submitted by the Secretary of Health and Human Services to the Congress 1 year after the date of the enactment of this Act. A final report of such study shall be submitted to the Congress within 2 years of such date of enactment. TITLE II--PUBLIC HEALTH SERVICE PROVISIONS SEC. 201. PREVENTATIVE HEALTH SERVICES. Part A of title XIX of the Public Health Service Act (42 U.S.C. 300w et seq.) is amended-- (1) in section 1901, by adding at the end thereof the following new subsection: ``(c) Of the amounts appropriated for each fiscal year under subsection (a), the Secretary shall make available not less than $5,000,000 in each such fiscal year to carry out section 1910A.''; and (2) by adding at the end thereof the following new section: ``SEC. 1910A. PREVENTATIVE GRANTS FOR COUNTY HEALTH DEPARTMENTS. ``(a) In General.--From amounts made available under section 1901(c), the Secretary shall make grants to county health departments to enable such departments to provide preventative health services in areas within the county which the Bureau of the Census determines to be not urbanized. ``(b) Application.--To be eligible to receive a grant under subsection (a), a county health department shall prepare and submit, to the Secretary, an application at such time, in such form, and containing such information as the Secretary shall require. ``(c) Use of Funds.--A county health department shall use amounts provided through a grant received under this section to-- ``(1) provide immunization services to control the spread of infectious diseases; ``(2) improve maternal and infant health; ``(3) reduce adolescent pregnancy and improve reproductive health; and ``(4) provide such other services as the Secretary determines appropriate. ``(d) Definition.--Not later than 30 days after the date of enactment of this section, the Secretary shall promulgate regulations that define `county health department' for purposes of this section.''. TITLE III--STATE HEALTH SERVICE CORPS DEMONSTRATION PROJECTS SEC. 301. SHORT TITLE. This title may be cited as the ``State Health Service Corps Demonstration Act''. SEC. 302. PURPOSE. It is the purpose of this title-- (1) to promote recruitment and training of physicians and other primary care providers from among the poor and from disadvantaged populations; (2) to place physicians from health professional shortage areas into similar areas in order to encourage retention of physicians in health professional shortage areas; and (3) to provide flexibility to States in filling positions in health professional shortage areas. SEC. 303. STATE HEALTH SERVICE CORPS DEMONSTRATION PROJECTS. The Public Health Service Act is amended by inserting after section 338L (42 U.S.C. 254t) the following new sections: ``SEC. 338M. STATE HEALTH SERVICE CORPS DEMONSTRATION PROJECTS. ``(a) Definitions.--For purposes of this section: ``(1) Area health education center.--The term `area health education center' means-- ``(A) a cooperative program of one or more medical schools (or the parent institutions of such schools) and one or more nonprofit private or public area health education centers; or ``(B) a regional or statewide network of the cooperative programs described in subparagraph (A). ``(2) Health professional shortage area.--The term `health professional shortage area' has the meaning provided in section 332(a)(1). ``(3) Medical school.--The term `medical school' means a school conferring the degree of Doctor of Medicine or Doctor of Osteopathy. ``(4) Nonphysician provider.--The term `nonphysician provider' means an occupational therapist, physical therapist, nurse, nurse midwife, nurse practitioner, social worker, or optometrist. ``(5) Nurse.--The term `nurse' means a registered nurse, or an individual with a baccalaureate or master's degree in nursing. ``(6) Parent institution.--The term `parent institution' means any health sciences university housing a medical school and one or more other health professions schools. ``(7) Physician provider.--The term `physician provider' means-- ``(A) a physician specializing in general practice, family medicine, general internal medicine, pediatrics, obstetrics and gynecology, general surgery, psychiatry, preventive medicine and public health, or physiatry; or ``(B) a dentist. ``(8) Project.--The term `Project' means a State Health Service Corps Demonstration Project established under subsection (b). ``(9) Service area.--The term `service area' means an area designated in subsection (d)(2)(A). ``(b) Grants.--The Secretary shall establish a State Health Service Corps Demonstration Project under which the Secretary shall make grants to up to 10 States to pay for the Federal share of the costs of conducting Projects for the training and employment of eligible participants as physician and nonphysician providers serving health professional shortage areas. ``(c) State Participation.-- ``(1) Requirements.--In order for a State to be eligible to receive a grant under this section, the State shall-- ``(A) enter into an agreement with an area health education center to administer the Project in accordance with subsection (d); ``(B) provide for evaluation of the Project in accordance with subsection (e); ``(C) establish a State Health Service Corps Scholarship Program in accordance with section 338N; and ``(D) meet such other requirements as the Secretary may establish for the proper and efficient implementation of the Project. ``(2) Grant awards.--In allocating grants under subsection (b), the Secretary shall give priority to States that have demonstrated a commitment to developing and funding area health education center programs. ``(3) Application.--To be eligible to receive a grant under this section, the State shall submit an application at such time, in such manner and containing such agreements, assurances, and information as the Secretary determines to be necessary to carry out this section. At a minimum, the application shall contain-- ``(A) information specifying the actions the State will take against individuals, and the methods the State will use to recover all funds paid under section 338N(i) to individuals, who breach contracts described in section 338N(g); and ``(B) assurances that the State will reimburse the Secretary for all funds recovered from individuals who breach contracts described in section 338N(g). ``(4) Duration.--A Project under this section shall be for a maximum duration of 8 years, plus up to 6 months for final evaluation and reporting. ``(d) State Agreements With Area Health Education Centers.-- ``(1) In general.--To be eligible for a grant under this section, a State shall enter into an agreement with an area health education center for the planning, development, and operation of a program to train and employ eligible participants as physician and nonphysician providers. ``(2) Requirements.--Under an agreement entered into under paragraph (1), an area health education center shall agree to-- ``(A) designate a health professional shortage area or areas as the service area for the area health education center; ``(B) provide for or conduct training in health education services in the service area; ``(C) assess the health professional needs of the service area and assist in the planning and development of training programs to meet the needs; ``(D) provide for or conduct a rotating internship or residency training program in the service area; ``(E) provide opportunities for continuing education to physician and nonphysician providers practicing within the service area; ``(F) conduct interdisciplinary training and practice involving physician and nonphysician providers in the service area; ``(G) arrange and support educational opportunities for students studying to become physician or nonphysician providers at health facilities, ambulatory care centers, and health agencies throughout the service area; ``(H) provide for the active participation in the Project by individuals who are associated with the administration of the sponsoring health professions and each of the departments or specialties of physician or nonphysician providers (if any) which are offered under the Project; and ``(I) have an advisory board of which at least 75 percent of the members shall be individuals, including both health service providers and consumers, from the service area. ``(e) Evaluation.--Not later than March 30, 1998, and March 30, 2002, each State receiving a grant under this section shall, through grants to or contracts with public and private entities, provide for-- ``(1) an evaluation of Projects-- ``(A) which were carried out pursuant to this section during any fiscal year preceding the fiscal year in which such date occurs, and ``(B) for which no prior evaluation under this subsection was made, and ``(2) a review of the area health education center providing services under the Projects. The evaluation shall include an evaluation of the effectiveness of the Projects in increasing the recruitment and retention of physician and nonphysician providers in health professional shortage areas. ``(f) Federal Share.--The Federal share of the costs of any program established under this section with respect to any State shall be the percentage of such costs equal to the Federal medical assistance percentage applicable to such State under section 1905(b) of the Social Security Act. The State may include as a part or all of the non-Federal share of grants-- ``(1) any State funds supporting area health education centers, and ``(2) the value of in-kind contributions made by the State, including tuition remission and other benefits for students participating in the State Health Service Corps Scholarship Program established under section 338N. ``(g) Authorization of Appropriations.-- ``(1) In general.--There are authorized to be appropriated for each of the 1994 through 2001 fiscal years to carry out the purposes of this section an amount equal to the product of-- ``(A) $250,000, multiplied by ``(B) the number of States receiving grants under this section for such fiscal year. Any amount appropriated under this section shall be available without fiscal year limitation. ``(2) Cost recovery.--No more than 10 percent of the funds spent under paragraph (1) may be used for purposes of recovering funds or taking other action against individuals who breach the provisions of a contract entered into under section 338N(g). ``SEC. 338N. STATE HEALTH SERVICE CORPS SCHOLARSHIP PROGRAMS. ``(a) Definitions.--For purposes of this section: ``(1) Area health education center.--The term `area health education center' means-- ``(A) a cooperative program of one or more medical schools (or the parent institutions (as defined in section 338M(a)(6)) of such schools) and one or more nonprofit private or public area health education centers; or ``(B) a regional or statewide network of the cooperative programs described in subparagraph (A). ``(2) Graduate education.--The term `graduate education' means a course of study at a medical school or other health professions school leading to a degree in a field practiced by a physician or nonphysician provider. ``(3) Health professional shortage area.--The term `health professional shortage area' has the meaning provided in section 332(a)(1). ``(4) Medical school.--The term `medical school' means a school conferring the degree of Doctor of Medicine or Doctor of Osteopathy. ``(5) Nonphysician provider.--The term `nonphysician provider' means an occupational therapist, physical therapist, nurse, nurse midwife, nurse practitioner, social worker, or optometrist. ``(6) Nurse.--The term `nurse' means a registered nurse, or an individual with a baccalaureate or master's degree in nursing. ``(7) Physician provider.--The term `physician provider' means-- ``(A) a physician specializing in family medicine, general internal medicine, pediatrics, obstetrics and gynecology, general surgery, psychiatry, preventive medicine, or physiatry; or ``(B) a dentist. ``(8) Program.--The term `Program' means a State Health Service Corps Scholarship Program established under subsection (b). ``(9) Service area.--The term `service area' means an area designated in section 338M(d)(2)(A). ``(10) State official.--The term `State official' means an individual designated by the head of the agency designated in subsection (b)(2) to carry out the Program in the State. ``(11) Undergraduate education.--The term `undergraduate education' means a course of study at a health sciences university or a 4-year college that affords an appropriate basis for professional training or graduate education to become a physician or nonphysician provider. ``(b) Establishment.-- ``(1) In general.--Each State carrying out a State Health Services Corps Demonstration Project established under section 338M shall establish a State Health Service Corps Scholarship Program, in accordance with this section, to ensure an adequate supply of trained physician or nonphysician providers in health professional shortage areas in the State. ``(2) State agency.--A State participating in the Program shall designate a State agency to administer or be responsible for the administration of the Program within the State. ``(c) Eligibility.--To be eligible to participate in the Program, an individual must-- ``(1)(A) be accepted for enrollment, or be enrolled, as a full-time student in a health professions program in a health sciences university or a 4-year college; or ``(B) be accepted to participate in, or be participating in, a professional internship or residency as preparation to become a physician or nonphysician provider; ``(2) reside within a health professional shortage area; ``(3) submit an application to participate in the Program; and ``(4) sign and submit to the State, at the time of submission of the application, a written contract containing the information specified in subsection (g) to accept payment of a scholarship and, if appropriate, of loans, and to serve in the service area. ``(d) Selection.--Individuals described in subsection (c)(1)(B)-- ``(1) shall comprise not more than 50 percent of all individuals selected to participate in the Program during fiscal year 1994; ``(2) shall comprise not more than 40 percent of all individuals selected to participate in the Program during fiscal year 1995; ``(3) shall comprise not more than 30 percent of all individuals selected to participate in the Program during fiscal year 1996; ``(4) shall comprise not more than 20 percent of all individuals selected to participate in the Program during fiscal year 1997; ``(5) shall comprise not more than 10 percent of all individuals selected to participate in the Program during fiscal year 1998; and ``(6) shall not be selected to participate in the Program during fiscal years 1999 through 2001. ``(e) Information on Service Obligation.--In disseminating application forms and contract forms to individuals desiring to participate in the Program, the State official shall include with the forms-- ``(1) a fair summary of the rights and liabilities of an individual whose application is approved (and whose contract is accepted) by the State official, including in the summary a clear explanation of the remedies to which the State is entitled in the case of breach of the contract by the individual; and ``(2) such information as may be necessary for the individual to understand the prospective participation of the individual in the Program and the service obligation of the individual. ``(f) Application Forms.--The application form, contract form, and all other information furnished by the Secretary under this section shall be written in a manner calculated to be understood by the average individual applying to participate in the Program. The State official shall make the application forms, contract forms, and other information available to individuals desiring to participate in the Program on a date sufficiently early to ensure that the individuals have adequate time to carefully review and evaluate the forms and information. ``(g) Contract.--The written contract between the State official and an individual shall contain-- ``(1) a statement that the State official agrees-- ``(A) to provide the individual with a scholarship for a period of up to 8 years, during which period the individual is-- ``(i) pursuing an undergraduate education described in subsection (a)(11); ``(ii) pursuing graduate education; or ``(iii) participating in an internship or residency program as preparation to become a physician or nonphysician provider; and ``(B) to place the individual into obligated service, taking into account the specialization of the individual and the needs of health professional shortage areas for service, in-- ``(i) a rural health professional shortage area, if the individual resided in a rural health professional shortage area at the time of acceptance into the Program; or ``(ii) an urban health professional shortage area, if the individual resided in an urban health professional shortage area at the time of acceptance into the Program; ``(2) a statement that the individual agrees-- ``(A) to accept provision of the scholarship, and if appropriate, loans, to the individual; ``(B) to maintain enrollment in a program of undergraduate or graduate education or participation in an internship or residency described in subsection (c)(1)(B) until the individual completes the program, internship, or residency; ``(C) while enrolled in a program of undergraduate or graduate education, to maintain an acceptable level of academic standing (as determined under regulations of the State by the educational institution offering the course of study); and ``(D) to serve in the service area or on the clinical staff of the area health education center or the medical school for a time period equal to the shorter of-- ``(i)(I) 1 year for each year in which the individual received a scholarship under the Program; and ``(II) 1 month for each $1,000 in loans that the individual received under the Program; or ``(ii) 6 years; ``(3) a statement of the damages to which the State is entitled for breach of contract by the individual; and ``(4) other statements of the rights and liabilities of the State and of the individual, not inconsistent with this section. ``(h) Acceptance.-- ``(1) Approval.--An individual shall become a participant in the Program only on approval by the State official of the application submitted by the individual under subsection (c)(3) and acceptance of the contract submitted by the individual under subsection (c)(4). ``(2) Notification.--The State official shall provide written notice to an individual of participation in the Program promptly on acceptance of the individual into the Program. ``(i) Scholarship and Loans.-- ``(1) Payment.--In providing a loan to an individual under subsection (g)(1)(A) or a scholarship to an individual under subsection (g)(1)(B), the State official shall pay-- ``(A) to an individual undertaking a program of undergraduate or graduate education, or on behalf of the individual in accordance with paragraph (2)-- ``(i) the amount of the tuition of the individual in the school year; ``(ii) the amount of all other reasonable educational expenses, including fees, books, and laboratory expenses, incurred by the individual in the school year; and ``(iii) a stipend; and ``(B) to an individual described in subsection (c)(1)(B)-- ``(i) the amount of expenses for medical equipment necessary to the practice of a physician or nonphysician provider; ``(ii) the amount of expenses for travel to and from clinical sites; and ``(iii) a stipend. ``(2) Payment to an educational institution.--The State official may contract with an educational institution, in which a participant in the Program is enrolled, for the payment to the educational institution of the amounts of tuition and other reasonable educational expenses described in clauses (i) and (ii) of paragraph (1)(A). ``(j) Report.--The State official shall report to the Secretary on January 1 of each year-- ``(1) the number, and type of health profession training, of students receiving scholarships under the Program in the preceding year; ``(2) the educational institutions at which the students are receiving their training; ``(3) the number of applications filed under this section in the school year in the preceding year and in prior school years; and ``(4) the amount of tuition paid in the aggregate and at each educational institution for the school year in the preceding year and in prior school years.''. <all> S 241 IS----2 S 241 IS----3