of obtaining, with respect to the construction which is to be financed in part by the grant under this section, and (B) the amount of any non-Federal funds required to be expended as a condition of such other Federal grant.

"Capture of Payments

"(d) If, within ten years after completion of any construction for which funds have been paid under this section

"(1) the applicant or other owner of the facility shall cease to be a public or nonprofit private training center for allied health professions, or

"(2) the facility shall cease to be used for the training purposes for which it was constructed (unless the Surgeon General determines, in accordance with regulations, that there is good cause for releasing the applicant or other owner from the obligation to do so), or

"(3) the facility is used for sectarian instruction or as a place for religious worship, the United States shall be entitled to recover from the applicant or other owner of the facility the amount bearing the same ratio to the then value (as determined by agreement of the parties or by action brought in the United States district court for the district in which such facility is situated) of the facility, as the amount of the Federal participation bore to the cost of construction of such facility. "GRANTS TO IMPROVE THE QUALITY OF TRAINING CENTERS FOR ALLIED HEALTH

PROFESSIONS

"Authorization of Appropriations

"SEC. 792. (a) There are authorized to be appropriated for the fiscal year ending June 30, 1967, and each of the next two fiscal years such sums as may be necessary for grants under this section to assist training centers for allied health professions to develop new or improved curriculums for training allied health professions personnel and otherwise improve the quality of their educational

programs.

"Basic Improvement Grants

"(b) (1) Subject to the provisions of paragraph (2), the Surgeon General may, for each fiscal year in the period beginning July 1, 1967, and ending June 30, 1969, make to each training center for allied health professions whose application for a basic improvement grant has been approved by him a grant equal to the product obtained by multiplying $5,000 by the number of curriculums specified in or pursuant to paragraph (1)(B) of section 795 in which such center provides training during such year, plus the product obtained by multiplying $500 by the number of full-time students in such center receiving training in such curriculums. "(2) The Surgeon General shall not make a grant under this subsection to any center unless the application for such grant contains or is supported by reasonable assurances that for the first school year beginning after the fiscal year for which such grant is made and each school year thereafter during which such a grant is made the enrollment of full-time students at such center will exceed the highest enrollment of such students in such center for any of the five school years during the period July 1, 1961, through July 1, 1966, by at least 21⁄2 per centum of such highest enrollment, or by three students, whichever is greater. The requirements of this paragraph shall be in addition to the requirements of section 791(b) (2) (B) (iv) of this Act, where applicable. The Surgeon General is authorized to waive (in whole or in part) the provisions of this paragraph if he determines, after consultation with the Council, that the required increase in enrollment of fulltime students in a center cannot, because of limitations of physical facilities available to the center for training, be accomplished without lowering the quality of training for such students.

"Special Improvement Grants

"(c) (1) From the sums appropriated under subsection (a) for any fiscal year and not required for making grants under subsection (b), the Surgeon General may make an additional grant for such year to any training center for allied health professions which has an approved application therefor and for which an application has been approved under subsection (b), if he determines that the requirements of paragraph (2) are satisfied in the case of such applicant.

"(2) No special improvement grant shall be made under this section unless (A) the Surgeon General determines that such grant will be utilized by the recipient

training center to contribute toward provision, maintenance, or improvement of specialized functions which the center serves, and (B) such center provides or will, with the aid of grants under this part, within a reasonable time provide training in not less than three of the curriculums which are specified in or pursuant to paragraph (1)(A) of section 795 and are related to each other to the extent prescribed in regulations.

"(3) No grant to any center under this subsection may exceed $100,000 for any fiscal year.

"Application for Grants

"(d) (1) The Surgeon General may from time to time set dates (not earlier than in the fiscal year preceding the year for which a grant is sought) by which applications for basic or special improvement grants under this section for any fiscal year must be filed.

"(2) A grant under this section may be made only if the application therefor is approved by the Surgeon General upon his determination that—

"(A) it contains or is supported by assurances satisfactory to the Surgeon General that the applicant is a public or nonprofit private training center for allied health professions and will expend in carrying out its functions as such a center, during the fiscal year for which such grant is sought, an amount of funds (other than funds for construction as determined by the Surgeon General) from non-Federal sources which are at least as great as the average amount of funds expended by such applicant for such purpose in the three fiscal years immediately preceding the fiscal year for which such grant is sought;

"(B) it contains such additional information as the Surgeon General may require to make the determinations required of him under this section and such assurances as he may find necessary to carry out the purposes of this section; and

"(C) it provides for such fiscal control and accounting procedures and reports, and access to the records of the applicant, as the Surgeon General may require to assure proper disbursement of and accounting for Federal funds paid to the applicant under this section.

"(3) In considering applications for grants under subsection (c), the Surgeon General shall take into consideration the relative financial need of the applicant for such a grant and the relative effectiveness of the applicant's plan in carrying out the purposes of such grants, and in contributing to an equitable geographical distribution of training centers offering high-quality training of allied health professions personnel.

"TRAINEESHIPS FOR ADVANCED TRAINING OF ALLIED HEALTH PROFESSIONS

PERSONNEL

"SEC. 793. (a) There are authorized to be appropriated for the fiscal year ending June 30, 1967, and each of the next two fiscal years such sums as may be necessary to cover the cost of traineeships for the training of allied health professions personnel to teach in any of the allied health professions, to serve in any of such professions in administrative or supervisory capacities, or to serve in allied health professions specialties determined by the Surgeon General to require advanced training.

"(b) Traineeships under this section shall be awarded by the Surgeon General through grants to public or nonprofit private training centers for allied health professions.

"(c) Payments to centers under this section may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Surgeon General finds necessary. Such payments may be used only for traineeships and shall be limited to such amounts as the Surgeon General finds necessary to cover the costs of tuition and fees, and a stipend and allowances (including travel and subsistence expenses) for the trainees.

"DEVELOPMENT OF NEW METHODS

"SEC. 794. There are authorized to be appropriated for the fiscal year ending June 30, 1967, and each of the next two fiscal years such sums as may be necessary for grants to public or nonprofit private training centers for allied health professions for projects to develop, demonstrate, or evaluate curriculums for the training of new types of health technologists.

"DEFINITIONS

"SEC. 795. For purposes of this part

"(1) The term 'training center for allied health professions' means a department, division, or other administrative unit (in a college or univerity) —

"(A) which provides, primarily or exclusively, programs of education leading to a baccalaureate or equivalent degree or to a higher degree in the medical technology, dental hygiene, or any of such other of the allied health professions curriculums as are specified by regulations,

"(B) which provides training for not less than a total of twenty persons in such curriculums,

"(C) which, if the college or university does not include a teaching hospital, is affiliated (to the extent and in the manner determined in accordance with regulations) with such a hospital,

"(D) which is (or is in a college or university, which is) accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education, and

"(E) in the case of an applicant for a grant under section 793, which, if the college or university does not include a school of medicine or a school of dentistry, as defined in paragraph (4) of section 724, or both, as may be appropriate in light of the training for which the grant is to be made, is affiliated (to the extent and in the manner determined in accordance with regulations) with such a school,

except that an applicant for a grant for a construction project under section 791 which does not at the time of application meet the requirement of clause (B) shall be deemed to meet such requirement if the Surgeon General finds there is reasonable assurance that the unit will meet the requirement of clause (B) prior to the beginning of the academic year following the normal graduation date of the first entering class in such unit, or, if later, upon completion of the project for which assistance is requested and other projects (if any) under construction or planned and to be commenced within a reasonable time.

"(2) The term 'full-time student' means a student pursuing a full-time course of study, in one of the curriculums specified in or pursuant to paragraph (1)(A) of this section, leading to a baccalaureate or equivalent degree, or to a higher degree, in a training center for allied health professions; regulations of the Surgeon General shall include provisions relating to determination of the number of students enrolled at a training center on the basis of estimates, or on the basis of the number of students enrolled in a training center in an earlier year, or on such basis as he deems appropriate for making such determination, and shall include methods of making such determinations when a training center was not in existence in an earlier year.

(3) The term 'nonprofit' as applied to any training center for allied health professions means one which is a corporation or association, or is owned and operated by one or more corporations or associations, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

"(4) The terms 'construction' and 'cost of construction' include (A) the construction of new buildings, and the acquisition, expansion, remodeling, replacement, and alteration of existing buildings, including architects' fees, but not including the cost of acquisition of land (except in the case of acquisition of an existing building), off-site improvements, living quarters, or patient-care facilities, and (B) equipping new buildings and existing buildings, whether or not expanded, remodeled, or altered."

PER DIEM FOR ADVISORY COUNCILS

SEC. 3. (a) Section 725 (c) of the Public Health Service Act is amended by striking out "$50" and inserting in lieu thereof "$100".

(b) Section 841(c) of such Act is amended by striking out "$75" and inserting in lieu thereof "$100".

LOAN REIMBURSEMENT PAYMENTS FOR HEALTH PERSONNEL

SEC. 4. (a) Section 741 (f) of the Public Health Service Act is amended by adding at the end thereof the following new sentence: "In the case of a physician, the rate shall be 15 per centum (rather than 10 per centum) for each year of such practice in an area in a State which for purposes of this subsection and for that year has been determined by the Secretary, pursuant to regulations and after

consultation with the appropriate State health authority, to be a rural area characterized by low family income; and, for the purpose of payments pursuant to this sentence, an amount equal to an additional 50 per centum of the total amount of such loans plus interest may be canceled."

(b) Section 741 of the Public Health Service Act is amended by inserting at the end thereof the following new subsection:

"(j) In order to encourage students who have obtained a loan under this part to refinance such loan through the student loan program carried out under part B of title IV of the Higher Education Act of 1965, and likewise to encourage students to obtain new loans under such part B program in lieu of obtaining such loans under this part, a student who does so with the approval of the educational institution involved shall, with respect to so much of the loan under such part B as

"(1) is a refinancing of a student loan made by the institution under this part, or

"(2) in the case of a loan under such part B obtained in lieu of a loan from the institution, does not exceed the amount which he was eligible to borrow from the institution,

be entitled, in accordance with regulations of the Secretary, to have the following loan reimbursement payments paid to him by the Secretary where such person

"(1) engages in the practice of medicine, dentistry, optometry, or osteopathy in an area in a State determined by the appropriate State health authority, in accordance with regulations prescribed by the Secretary, to have a shortage of and need for physicians, optometrists, or dentists; and "(2) the appropriate State health authority certifies to the Secretary, in accordance with regulations prescribed by the Secretary, that such practice helps to meet the shortage of and need for physicians, optometrists, or dentists in the area where the practice occurs, then an amount equal to 10 per centum of the total amount of each such loan shall be paid for each year of such practice, up to a total of an amount equal to 50 per centum of such loan. In the case of a physician, the annual amount shall be 15 per centum (rather than 10 per centum) for each year of such practice in an area in a State which for purposes of this paragraph and for that year has been determined by the Secretary, pursuant to regulations and after consultation with the appropriate State health authority, to be a rural area characterized by low family income, and for the purpose of payments pursuant to this sentence, an amount equal to an additional 50 per centum of any such loan may be paid. No payment shall be made under this subsection for service performed more than fifteen years from the execution of the note or written agreement evidencing it." (c) Section 823 of the Public Health Service Act is amended by inserting at the end thereof the following new subsection:

"(f) In order to encourage students who have obtained a loan under this part to refinance such loan through the student loan program carried out under part B of title IV of the Higher Education Act of 1965, and likewise to encourage students to obtain new loans under such part B program in lieu of obtaining such loans under this part, a student who does so with the approval of the educational institution involved shall, with respect to so much of the loan under such part B as

"(1) is a refinancing of a student loan made by the institution under this part, or

"(2) in the case of a loan under such part B obtained in lieu of a loan from the institution, does not exceed the amount which he was eligible to borrow from the institution,

be entitled, in accordance with regulations of the Secretary, to have paid to such student by the Secretary, as loan reimbursements, an amount equal to 10 per centum of the total principal amount of any such loan for each complete year of service as a full-time professional nurse (including teaching in any of the fields of nurse training and service as an administrator, supervisor, or consultant in any of the fields of nursing) in any public or nonprofit private institution or agency, up to a total of an amount equal to 50 percentum of such loan. No payment shall be made under this subsection for service performed more than fifteen years from the execution of the note or written agreement evidencing it."

(d) (1) The second sentence of section 435(a) of the Higher Education Act of 1965 (relating to the definition of "eligible institution") is amended to read as follows: "Such term also includes any public or other nonprofit school of health or school of nursing, and any school which provides not less than a one-year

program of training to prepare students for gainful employment in a recognized occupation and which meets the provisions of clauses (1), (2), (4), and (5).’

(2) Such section 435 is further amended by striking out all that follows subsection (a) and inserting in lieu thereof the following new subsections:

"(b) The term 'school of health' means a school which meets the accreditation requirements of clause (5) of subsection (a) and which provides training leading to a degree of doctor of medicine, doctor of dentistry, or an equivalent degree doctor of osteopathy, bachelor of science in pharmacy, or doctor of pharmacy, doctor of podiatry, or doctor of surgical chiropody, or doctor of optometry, or an equivalent degree.

(c) The term 'school of nursing' means a collegiate, associate degree, or diploma school of nursing.

"(d) The term 'collegiate school of nursing' means a department, division, or other administrative unit in a college or university which provides primarily or exclusively an accredited program of education in professional nursing and allied subjects leading to the degree of bachelor of arts, bachelor of science, bachelor of nursing, or to an equivalent degree, or to a graduate degree in nursing. "(e) The term 'associate degree school of nursing' means a department, division, or other administrative unit in a junior college, community college, college, or university which provides primarily or exclusively an accredited two-year program of education in professional nursing and allied subjects leading to an associate degree in nursing or to an equivalent degree.

"(f) The term 'diploma school of nursing' means a school affiliated with a hospital or university, or an independent school, which provides primarily or exclusively an accredited program of education in professional nursing and allied subjects leading to a diploma or to equivalent indicia that such program has been satisfactorily completed.

"(g) The term 'accredited' when applied to any program of nurse education means a program accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education.

"(h) The term 'eligible lender' means an eligible institution, an agency or instrumentality of a State, or a financial or credit institution (including an insurance company) which is subject to examination and supervision by an agency of the United States or of any State.

"(i) The term 'line of credit' means an arrangement or agreement between the lender and the borrower whereby a loan is paid out by the lender to the borrower in annual installments, or whereby the lender agrees to make, in addition to the initial loan, additional loans in subsequent years."

ENCOURAGING PRIVATE CAPITAL FOR LOANS TO STUDENTS IN SCHOOLS OF MEDICINE, OSTEOPATHY, DENTISTRY, PHARMACY, PODIATRY, AND OPTOMETRY

SEC. 5. (a) Part C of title VII of the Public Health Service Act is amended by inserting at the end thereof the following new sections:

"ENCOURAGING PRIVATE CAPITAL FOR STUDENT LOANS

"SEC. 746. (a) For the purpose of substituting for direct Federal support to the maximum extent practicable private and other non-Federal funds for student loans, the Secretary is authorized to provide the following forms of assistance, upon such terms and conditions as he may deem appropriate, for the benefit of students attending schools of medicine, osteopathy, dentistry, pharmacy, podiatry, and optometry:

"(1) If such a school borrows non-Federal funds (or otherwise receives or makes available repayable non-Federal funds) for deposit in a student loan fund established under this part, the Secretary may (A) guarantee timely repayment of all or part of such funds (plus interest thereon), (B) agree to reimburse the school for up to 90 per centum of the loss to it from defaults on student loans made from such funds, and (C) agree to pay to the school the amount of the interest differential (as defined in subsection (c)) with respect to such funds.

"(2) If such a school arranges for a student assistance organization (as defined in subsection (c)) to make loans to students attending the school, the Secretary may enter into an agreement with the organization upon the terms set forth in section 740 and may (A) guarantee timely repayment of funds (plus interest thereon) borrowed by the organization for deposit in its student loan fund established under this part, (B) agree to reimburse the organization for up to 90 per centum of the loss to it from defaults on student loans made from such borrowed funds, and (C) agree to pay to the organization the amount of the interest differ