(B) such a grant to the entity for fiscal
year 1997 or subsequent fiscal years shall be
made and expended in accordance with the pro-
visions of such section as in effect on the day
before the date of the enactment of this Act.
(2) RELEVANT PERIOD.—In the case of an en-
tity that received a grant for fiscal year 1997 under
section 739 of the Public Health Service Act, the pe-
riod referred to in paragraph (1) is the period that,
in first approving the grant, the Secretary specified
as the duration of the grant.
SEC. 205. EDUCATIONAL ASSISTANCE REGARDING UNDER-
GRADUATES.
(a) IN GENERAL.—Section 740 of the Public Health
Service Act (42 U.S.C. 293d) is amended to read as fol-
lows:
‘‘SEC. 740. HEALTH CAREERS OPPORTUNITY PROGRAM.
‘‘(a) IN GENERAL.—Subject to the provisions of this
section, the Secretary may make grants and enter into co-
operative agreements and contracts for any of the follow-
ing purposes:
‘‘(1) Identifying and recruiting individuals
who—
‘‘(A) are students of elementary schools, or
students or graduates of secondary schools or of
institutions of higher education;
‘‘(B) are from disadvantaged backgrounds;
and
‘‘(C) are interested in a career in the
health professions.
‘‘(2) Facilitating the entry of such individuals
into a health professions school.
‘‘(3) Providing counseling or other services de-
signed to assist such individuals in successfully com-
pleting their education at such a school.
‘‘(4) Providing, for a period prior to the entry
of such individuals into the regular course of edu-
cation of such a school, preliminary education de-
signed to assist the individuals in successfully com-
pleting such regular course of education at such a
school, or referring such individuals to institutions
providing such preliminary education.
‘‘(5) Paying such stipends as the Secretary may
approve for such individuals for any period of edu-
cation in student-enhancement programs (other than
regular courses) at a health professions schools, ex-
cept that such a stipend may not be provided to an
individual for more than 12 months, and such a sti-
pend may not exceed $25 per day (notwithstanding
any other provision of law regarding the amount of
stipends).
‘‘(6) Carrying out programs under which such
individuals both—
‘‘(A) gain experience regarding a career in
a field of primary health care through working
at facilities of nonprofit private community-
based providers of primary health services; and
‘‘(B) receive academic instruction to assist
in preparing the individuals to enter health pro-
fessions schools in such fields.
‘‘(b) RECEIPT OF AWARD.—
‘‘(1) ELIGIBLE
ENTITIES; REQUIREMENT
OF
CONSORTIUM.—The Secretary may make an award
under subsection (a) only if the following conditions
are met:
‘‘(A) The applicant for the award is a pub-
lic or nonprofit private entity, and the applicant
has established a consortium consisting of non-
profit private community-based organizations
and health professions schools.
‘‘(B) The health professions schools of the
consortium are schools of medicine or osteo-
pathic medicine, public health, dentistry, veteri-
nary medicine, optometry, pharmacy, allied
health, chiropractic, or podiatric medicine, or
graduate programs in mental health practice
(including such programs in clinical psychol-
ogy).
‘‘(C) Except as provided in subparagraph
(D), the membership of the consortium includes
not less than one nonprofit private community-
based organization and not less than three
health professions schools.
‘‘(D) In the case of an applicant whose ex-
clusive activity under the award will be carrying
out one or more programs described in sub-
section (a)(6), the membership of the consor-
tium includes not less than one nonprofit pri-
vate community-based organization and not less
than one health professions schools.
‘‘(E) The members of the consortium have
entered into an agreement specifying—
‘‘(i) that each of the members will
comply with the conditions upon which the
award is made; and
‘‘(ii) whether and to what extent the
award will be allocated among the mem-
bers.
‘‘(2) 
REQUIREMENT
OF
COMPETITIVE
AWARDS.—Awards under subsection (a) shall be
made only on a competitive basis.
‘‘(c) FINANCIAL REQUIREMENTS.—
‘‘(1) ASSURANCES REGARDING CAPACITY.—The
Secretary may make an award under subsection (a)
only if the Secretary determines that, in the case of
activities carried out under the award that prove to
be effective toward achieving the purposes of the ac-
tivities—
‘‘(A) the members of the consortium in-
volved have or will have the financial capacity
to continue the activities, regardless of whether
financial assistance under subsection (a) contin-
ues to be available; and
‘‘(B) the members of the consortium dem-
onstrate to the satisfaction of the Secretary a
commitment to continue such activities, regard-
less of whether such assistance continues to be
available.
‘‘(2) MATCHING FUNDS.—
‘‘(A) With respect to the costs of the ac-
tivities to be carried out under subsection (a)
by an applicant, the Secretary may make an
award under such subsection only if the appli-