(1) An applicant who completes the senior Army ROTC program of instruction shall be released from Simultaneous Membership Program status in order to be accessed into the Pennsylvania National Guard as a commissioned officer. Release from Simultaneous Membership Program status under this subchapter shall terminate the eligible member's enlistment contract in exchange for a new officer contract. The eligible member shall incur an eight-year active drilling contractual obligation to the Pennsylvania National Guard upon appointment as a second lieutenant.

(2) An eligible member who voluntarily or involuntarily becomes disenrolled from ROTC and is eligible to continue military service shall remain in the Pennsylvania National Guard as an enlisted soldier. An eligible member who becomes qualified as an enlisted soldier as provided under National Guard Regulation 600-100 (relating to commissioned officers--Federal recognition and related personnel actions) in effect on the effective date of this section shall retain the benefit previously awarded during Simultaneous Membership Program status.

(3) An eligible member who voluntarily or involuntarily becomes disenrolled from ROTC and is ineligible to continue military service for reasons other than medical conditions shall be discharged from the Pennsylvania National Guard as provided under National Guard Regulations 600-100 and 600-200 (relating to enlisted personnel management), in effect on the effective date of this section. An eligible member who is discharged under this subchapter shall be subject to recoupment under section 3227 (relating to recoupment of benefit payments).