Title III, SEC. 3012. ANNUAL AUTHORIZATION OF NUMBER OF SPECIALTY POSITIONS; REQUIREMENTS REGARDING PRIMARY HEALTH CARE. (a) Annual Authorization of Number of Positions. In the case of each medical specialty, the National Council shall designate for each academic year the number of individuals nationwide who under section 3011 are authorized to be enrolled in eligible programs. The preceding sentence is subject to subsection (c)(2). (b) Primary Health Care. (1) In general. Subject to paragraph (2), in carrying out subsection (a) for an academic year, the National Council shall ensure that, of the class of training participants entering eligible programs for academic year 2002-03 or any subsequent academic year, the percentage of such class that completes eligible programs in primary health care is not less than 55 percent (without regard to the academic year in which the members of the class complete the programs). (2) Rule of construction. The requirement of paragraph (1) regarding a percentage applies in the aggregate to training participants entering eligible programs for the academic year involved, and not individually to any eligible program. (c) Designations Regarding 3-Year Periods. (1) Designation periods. For each medical specialty, the National Council shall make the annual designations under subsection (a) for periods of 3 academic years. (2) Initial period. The first designation period established by the National Council after the date of the enactment of this Act shall be the academic years 1998-99 through 2000-01. (d) Certain Considerations in Designating Annual Numbers. (1) In general. Factors considered by the National Council in designating the annual number of specialty positions for an academic year for a medical specialty shall include the extent to which there is a need for additional practitioners in the speciality, as indicated by the following: (A) The incidence and prevalence (in the general population and in various other populations) of the diseases, disorders, or other health conditions with which the specialty is concerned. (B) The number of physicians who will be practicing in the specialty in the academic year. (C) The number of physicians who will be practicing in the specialty at the end of the 5-year period beginning on the first day of the academic year. (2) Recommendations of private organizations. In designating the annual number of specialty positions for an academic year for a medical specialty, the National Council shall consider the recommendations of organizations representing physicians in the specialty and the recommendations of organizations representing consumers of the services of such physicians. (3) Minimum total of respective annual numbers. (A) Subject to subparagraph (B), for academic year 2003-04 and subsequent academic years, the National Council shall ensure that the total of the respective annual numbers designated under subsection (a) for an academic year is a total that (i) bears a relationship to the number of individuals who graduated from medical schools in the United States in the preceding academic year; and (ii) is consistent with the purposes of this subpart. (B) For each of the academic years 2003-04 through 2007-08, the total determined under subparagraph (A) shall be reduced by a percentage determined by the National Council. (e) Definitions. For purposes of this subtitle: (1) The term ``annual number of specialty positions'', with respect to a medical specialty, means the number designated by the National Council under subsection (a) for eligible programs for the academic year involved. (2) The term ``designation period'' means a 3-year period under subsection (c)(1) for which designations under subsection (a) are made by the National Council. (3) The term ``primary health care'' means the following medical specialties: Family medicine, general internal medicine, general pediatrics, and obstetrics and gynecology. (4) The term ``specialty position'', with respect to a medical specialty, means a position (designated under subsection (a)) as one of the individuals who may be a training participant in an eligible program. (5) The term ``training participant'' means an individual who is enrolled in an approved physician training program.