A bill to amend the Public Health Service Act and the Federal Food, Drug, and Cosmetic Act to establish programs to assist the Food and Drug Administration in recruiting distinguished scientists and individuals in health professions as employees, and for other purposes.

Amends the Public Health Service Act to provide for the establishment of a Senior Biomedical Scientific Service Corps within the Food and Drug Administration (FDA), whose members: (1) shall be appointed based solely on the basis of distinction and achievement in the field of biomedical, clinical, or behavioral research; and (2) shall not be a part of the competitive service.

Specifies the duties and compensation of members of the Corps. Treats continuous employment in the Corps immediately upon termination of service as a commissioned officer in the Public Health Service (PHS) Corps as service in the PHS Corps for purposes of retirement or separation for physical disability. Specifies that such employment shall not be considered as service under any other Federal retirement system.

Amends the Federal Food, Drug, and Cosmetic Act to authorize the Secretary of Health and Human Services to make grants to, or enter into contracts with, any public or nonprofit academic institution, including schools of medicine, dentistry, veterinary medicine, and pharmacy, to enable such institutions to develop programs that will be used to train individuals in the field of regulatory review medicine and to provide financial aid to participants in such programs.

Sets requirements for the award of grants and the use of grant funds. Requires each individual who receives grant funds to serve a specified obligated period of time as an FDA employee. States that if any such individual fails to comply within a reasonable period of time after the completion of training (as the Secretary shall prescribe by regulation), the United States shall be entitled to recover from such individual an amount determined in accordance with a formula to be prescribed through regulations issued by the Secretary.

Authorizes to be appropriated such sums as necessary for FY 1989 through 1991 for such grants.

Directs the Secretary to establish a Science Training Loan Repayment Program to repay the educational loans of students and graduates who agree to accept employment with the FDA for a period of obligated service. Establishes eligibility requirements for participation in the Program.

Requires the Secretary to: (1) make such applications and information available to individuals desiring to participate in the Program; and (2) include a fair summary of the rights and liabilities of the participants, the damages to which the United States is entitled in case of the individual's breach of contract, and such other information as necessary for the individual to understand participation in the Program.

Directs the Secretary to give priority to applications made by individuals: (1) who have training in regulatory review medicine and in a health profession or speciality determined by the Secretary to be needed by the FDA; and (2) who are committed to service with the FDA.

Sets forth procedures for the approval of applications. Specifies the contents of contracts between the Secretary and the individual (including a provision that any financial obligation of the United States arising out of such a contract is contingent upon funds being appropriated for loan repayments).

Specifies that: (1) a loan repayment provided for an individual under a written contract under the Program shall consist of payment of the principal, interest, and related expenses on government and commercial loans received by the individual for tuition, reasonable educational expenses (such as fees, books, and laboratory expenses), and reasonable living expenses as determined by the Secretary; (2) for each year of obligated service that an individual contracts to serve, the Secretary may pay up to $20,000 on behalf of such individual for loans; and (3) any arrangement made by the Secretary for making loan repayments under this Act shall provide that repayments for a year of obligated service shall be made by the end of the fiscal year in which the individual completes such year of service.

Authorizes the Secretary: (1) on the request of the individual, to make payments to such individual in a reasonable amount, as determined by the Secretary, to reimburse such individual for all or part of any increased tax liability incurred as a result of participation in the Program; and (2) to enter into an agreement with the holder of any loan for which payments are made under the Program to establish a schedule for the making of payments.

Provides that individuals who have entered into such contracts with the Secretary, while undergoing academic or other training, shall not be counted against any employment ceiling affecting the Department.

Directs the Secretary, by March 1 of each year, to submit to the Congress a report specifying: (1) the number, and type of health profession training, of individuals receiving loan payments under the Program; (2) the educational institutions at which such individuals are receiving and have received their training; (3) the number of applications filed under the Program; and (4) the amount of loan payments made on behalf of individuals under the Program.

Requires each individual who has entered into a written contract with the Secretary to provide service as a full-time employee of the FDA for the period of obligated service provided in such contract.

Establishes procedures for: (1) determining if the individual shall provide such service as a member of the Commissioned Corps of the PHS or as a civilian employee of the United States; and (2) notifying such individual. Specifies that an individual shall be considered to have begun serving a period of obligated service on the date of appointment.

Sets forth a formula for calculating penalties applicable to an individual who breaches such contract by failing to begin or complete such service obligation.

Provides for: (1) the waiver or suspension of service or payment obligations in cases of impossibility or extreme hardship; and (2) release of obligations for payment of damages by discharge in bankruptcy under specified circumstances.

Authorizes the Secretary to pay an individual who has entered into such an agreement an amount to cover all or part of the individual's expenses reasonably incurred in transporting himself, his family, and his possessions to the location of his duty station.

Authorizes to be appropriated such sums as necessary for FY 1989 through 1991.

Establishes the Food and Drug Administration Distinguished Services Science Award to be given to dedicated scientists employed by the FDA who have: (1) creatively and expeditiously approved lifesaving products; or (2) discovered other ways to protect society from unforeseen health hazards.