23 delegate any administrative functions under a fund ing agreement pursuant to the Indian Self-Deter mination and Education Assistance Act. "(b) ELIGIBILITY.— "(1) ENROLLMENT.-An Indian shall be eligible for a scholarship under subsection (a) in any year in which such individual is enrolled full or part time in a course of study referred to in subsection (a)(1). "(2) SERVICE OBLIGATION. "(A) PUBLIC HEALTH SERVICE ACT.—The active duty service obligation under a written contract with the Secretary under section 338A of the Public Health Service Act (42 U.S.C. 2541) that an Indian has entered into under that section shall, if that individual is a recipi ent of an Indian Health Scholarship, be met in full-time practice on an equivalent year for year obligation, by service "(i) in the Indian Health Service; "(ii) in a program conducted under a funding agreement entered into under the Indian Self-Determination and Education Assistance Act; V; or "(iii) in a program assisted under title 24 "(iv) in the private practice of the applicable profession if, as determined by the Secretary, in accordance with guidelines promulgated by the Secretary, such practice is situated in a physician or other health professional shortage area and addresses the health care needs of a substantial number of Indians. "(B) DEFERRING ACTIVE SERVICE.—At the request of any Indian who has entered into a contract referred to in subparagraph (A) and who receives a degree in medicine (including osteopathic or allopathic medicine), dentistry, optometry, podiatry, or pharmacy, the Secretary shall defer the active duty service obligation of that individual under that contract, in order that such individual may complete any intern ship, residency, or other advanced clinical train ing that is required for the practice of that health profession, for an appropriate period (in years, as determined by the Secretary), subject to the following conditions: "(i) No period of internship, residency, or other advanced clinical training shall be counted as satisfying any period of 25 obligated service that is required under this section. "(ii) The active duty service obligation of that individual shall commence not later than 90 days after the completion of that advanced clinical training (or by a date specified by the Secretary). "(iii) The active duty service obligation will be served in the health profession of that individual, in a manner consistent with clauses (i) through (iv) of subparagraph (A). "(C) NEW SCHOLARSHIP RECIPIENTS.—A recipient of an Indian Health Scholarship that is awarded after December 31, 2003, shall meet the active duty service obligation under such scholarship by providing service within the serv ice area from which the scholarship was award ed. In placing the recipient for active duty the area office shall give priority to the program that funded the recipient, except that in cases of special circumstances, a recipient may be placed in a different service area pursuant to an agreement between the areas or programs involved. 1 2 3 4 5 6 7 8 9 10 11 12 13 26 "(D) PRIORITY IN ASSIGNMENT.-Subject to subparagraph (C), the area office, in making assignments of Indian Health Scholarship recipients required to meet the active duty service obligation described in subparagraph (A), shall give priority to assigning individuals to service in those programs specified in subparagraph (A) that have a need for health professionals to provide health care services as a result of individuals having breached contracts entered into under this section. "(3) PART-TIME ENROLLMENT.-In the case of an Indian receiving a scholarship under this section 14 who is enrolled part time in an approved course of 15 2 3 4 75 study "(A) such scholarship shall be for a period of years not to exceed the part-time equivalent of 4 years, as determined by the appropriate area office; "(B) the period of obligated service described in paragraph (2)(A) shall be equal to the greater of "(i) the part-time equivalent of 1 year for each year for which the individual was 27 provided a scholarship (as determined by the area office); or "(ii) two years; and "(C) the amount of the monthly stipend specified in section 338A(g)(1)(B) of the Public Health Service Act (42 U.S.C. 2541(g)(1)(B)) shall be reduced pro rata (as determined by the Secretary) based on the number of hours such student is enrolled. "(4) BREACH OF CONTRACT. "(A) IN GENERAL.-An Indian who has, on or after the date of the enactment of this paragraph, entered into a written contract with the area office pursuant to a scholarship under this section and who "(i) fails to maintain an acceptable level of academic standing in the educational institution in which he or she is enrolled (such level determined by the edu cational institution under regulations of the Secretary); “(ii) is dismissed from such educational institution for disciplinary reasons; "(iii) voluntarily terminates the train ing in such an educational institution for |