SEC. 2201. NATIONAL HEALTH SERVICE CORPS.

[a] Fulfillment of Obligated Service Requirement Through Half-Time Service-

[1] WAIVERS- Subsection [i] of section 331 [42 U.S.C. 254d] is amended--

[A] in paragraph [1], by striking 'In carrying out subpart III' and all that follows through the period and inserting 'In carrying out subpart III, the Secretary may, in accordance with this subsection, issue waivers to individuals who have entered into a contract for obligated service under the Scholarship Program or the Loan Repayment Program under which the individuals are authorized to satisfy the requirement of obligated service through providing clinical practice that is half-time.';

[B] in paragraph [2]--

[i] in subparagraphs [A][ii] and [B], by striking 'less than full time' each place it appears and inserting 'half time';

[ii] in subparagraphs [C] and [F], by striking 'less than full-time service' each place it appears and inserting 'half-time service'; and

[iii] by amending subparagraphs [D] and [E] to read as follows:

'[D] the entity and the Corps member agree in writing that the Corps member will perform half-time clinical practice;

'[E] the Corps member agrees in writing to fulfill all of the service obligations under section 338C through half-time clinical practice and either--

'[i] double the period of obligated service; or

'[ii] in the case of contracts entered into under section 338B, accept a minimum service obligation of 2 years with an award amount equal to 50 percent of the amount that would otherwise be payable for full-time service; and'; and

[C] in paragraph [3], by striking 'In evaluating a demonstration project described in paragraph [1]' and inserting 'In evaluating waivers issued under paragraph [1]'.

[2] DEFINITIONS- Subsection [j] of section 331 [42 U.S.C. 254d] is amended by adding at the end the following:

'[5] The terms 'full time' and 'full-time' mean a minimum of 40 hours per week in a clinical practice, for a minimum of 45 weeks per year.

'[6] The terms 'half time' and 'half-time' mean a minimum of 20 hours per week [not to exceed 39 hours per week] in a clinical practice, for a minimum of 45 weeks per year.'.

[b] Reappointment to National Advisory Council- Section- 337[b][1] [42 U.S.C. 254j[b][1]] is amended by striking 'Members may not be reappointed to the Council.'.

[c] Loan Repayment Amount- Section- 338B[g][2][A] is amended [42 U.S.C. 254l-1[g][2][A]] by striking '$35,000' and inserting '$50,000, plus, beginning with fiscal year 2012, an amount determined by the Secretary on an annual basis to reflect inflation,'.

[d] Treatment of Teaching as Obligated Service- Subsection [a] of section 338C [42 U.S.C. 254m] is amended by adding at the end the following: 'The Secretary may treat teaching as clinical practice for up to 20 percent of such period of obligated service.'.