‘‘(F) any other technology that improves
the quality of health care provided in rural
areas including systems to improve privacy and
address administrative simplification needs.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of carrying out this section there are authorized
to be appropriated such sums as may be necessary for
each of the fiscal years 2002 through 2007.’’.
SEC. 203. ESTABLISHMENT OF TELEHEALTH RESOURCE
CENTERS.
Subpart I of part D of title III of the Public Health
Service Act (42 U.S.C. 254b et seq.), as amended by sec-
tion 202, is amended by adding at the end the following:
‘‘SEC. 330J. TELEHEALTH RESOURCE CENTERS.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary, acting
through the Director of the Office for the Advancement
of Telehealth of the Health Resources and Services Ad-
ministration, shall award grants to eligible entities to es-
tablish telehealth resource centers in accordance with this
section.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means a public or nonprofit private entity.
‘‘(2) 
TELEHEALTH.—The 
term 
‘telehealth’
means the use of electronic information and tele-
communications technologies to support long-dis-
tance clinical health care, patient and professional
health-related education, public health, and health
administration.
‘‘(c) AMOUNT.—Each entity that receives a grant
under subsection (a) shall receive an amount not to exceed
$1,500,000.
‘‘(d) 
EQUITABLE
DISTRIBUTION.—In 
awarding
grants under subsection (a), the Secretary shall ensure,
to the greatest extent possible, that such grants are equi-
tably distributed among the geographical regions of the
United States.
‘‘(e) PREFERENCE.—In awarding grants under sub-
section (a), the Secretary shall give preference to eligible
entities that have a demonstrated record of providing or
supporting the provision of health care services for popu-
lations in rural areas.
‘‘(f) USE OF FUNDS.—An entity that receives a grant
under subsection (a) shall use funds from such grant to
establish a telehealth resource center that shall—
‘‘(1) provide technical assistance, training, and
support to health care providers and a range of
health care entities that provide or will provide tele-
health services for a medically underserved commu-
nity, including hospitals, ambulatory care entities,
long-term care facilities, public health clinics, and
schools;
‘‘(2) provide for the dissemination of informa-
tion and research findings related to the use of tele-
health technologies;
‘‘(3) provide for the dissemination of informa-
tion regarding the latest developments in health
care;
‘‘(4) conduct evaluations to determine the best
application of telehealth technologies to meet the
health care needs of the medically underserved com-
munity;
‘‘(5) promote the integration of clinical infor-
mation systems with other telehealth technologies;
‘‘(6) foster the use of telehealth technologies to
provide health care information and education for
health care professionals and consumers in a more
effective manner; and
‘‘(7) provide timely and appropriate evaluations
to the Office for the Advancement of Telehealth on
lessons learned and best telehealth practices in any
areas served.
‘‘(g) COLLABORATION.—In providing the services de-
scribed in subsection (f)(5), such entity shall collaborate,
if feasible, with private and public organizations and cen-
ters or programs that receive Federal assistance and pro-
vide telehealth services.
‘‘(h) APPLICATION.—An entity that desires a grant
under subsection (a) shall submit an application to the
Secretary at such time, in such manner, and containing
such 
information 
as 
the 
Secretary 
may 
require,
including—
‘‘(1) a description of the manner in which the
entity shall establish and administer a telehealth re-
source center to meet the requirements of this sub-
section; and
‘‘(2) a description of the manner in which the
activities carried out by such center will meet the
health care needs of individuals in rural commu-
nities.
‘‘(i) REPORT.—Not later than 5 years after the date
of enactment of this section, the Secretary shall submit
to the appropriate committees of Congress a report on
each activity funded with a grant under this section.
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this
section—
‘‘(1) for fiscal year 2002, $30,000,000; and
‘‘(2) for fiscal years 2003 through 2008, such
sums as may be necessary.’’.
TITLE III—NATIONAL HEALTH
SERVICE CORPS TAX RELIEF
SEC. 301. EXCLUSION OF CERTAIN AMOUNTS RECEIVED
UNDER THE NATIONAL HEALTH SERVICE
CORPS LOAN REPAYMENT PROGRAM.
(a) IN GENERAL.—Paragraph (2) of section 117(c)
of the Internal Revenue Code of 1986 (relating to the ex-
ceptions) is amended by striking ‘‘or’’ at the end of sub-
paragraph (A), by redesignating subparagraph (B) as sub-
paragraph (C), and by inserting after subparagraph (A)
the following new subparagraph:
‘‘(B) the National Health Service Corps
Loan 
Repayment 
Program 
under 
section
338B(g)(1)(A) of such Act, or’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to amounts received in taxable
years beginning after December 31, 2001.
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