United States Code

ABOLITION OF OFFICE OF SURGEON GENERAL

The Office of the Surgeon General was abolished by section 3 of 1966 Reorg. Plan No. 3 eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, and all functions thereof were transferred to the Secretary of Health, Education, and Welfare by section 1 of 1966 Reorg. Plan No. 3, set out as a note under section 202 of this title.

§ 295d. Noninterference with administration of institutions.

Except as otherwise specifically provided in this part, nothing contained in this part shall be construed as authorizing any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over, or impose any requirement or condition with respect to, the research or related purposes conducted by, and the personnel or administration of, any institution. (July 1, 1944, ch. 373, title VII, § 765, as added Oct. 31, 1963, Pub. L. 88-164, title I, § 101, 77 Stat. 284.)

§ 295e. Definitions.

As used in this part

(1) the terms "construction" and "cost of construction" include (A) the construction of new buildings and the expansion, remodeling, and alteration of existing buildings, including architects' fees, but not including the cost of acquisition of land or off-site improvements, and (B) equipping new buildings and existing buildings, whether or not expanded, remodeled, or altered;

(2) the term "nonprofit institution" means an institution 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.

(July 1, 1944, ch. 373, title VII, § 766, as added Oct. 31, 1963, Pub. L. 88-164, title I, § 101, 77 Stat. 284.)

PART E.-INSTITUTIONAL AND SPECIAL PROJECT GRANTS
FOR TRAINING OF HEALTH PROFESSIONS PERSONNEL
PART REFERRED TO IN OTHER SECTIONS
This part is referred to in section 293d of this title.

§ 295f. Authorization of appropriations.

(a) There are authorized to be appropriated $117,000,000 for the fiscal year ending June 30, 1970, and $168,000,000 for the fiscal year ending June 30, 1971, for institutional grants under section 295f-1 and special project grants under section 295f-2 of this title.

(b) The portion of the sums so appropriated for each fiscal year which shall be available for grants under each such section shall be determined by the Secretary unless otherwise provided in the Act or Acts appropriating such sums for such year. (July 1, 1944, ch. 373, title VII, § 770, as added Oct. 22, 1965, Pub. L. 89-290, § 2(a), 79 Stat. 1052, and amended Aug. 16, 1968, Pub. L. 90-490, title I, § 111(a), 82 Stat. 774.)

AMENDMENTS

1968-Pub. L. 90-490 substituted appropriations authorization of $117,000,000 and $168,000,000 for fiscal years ending June 30, 1970, and 1971, respectively for institutional and special project grants under sections 2951-1 and 295f-2 of this title to be apportioned for grants under each such section by the Secretary for appropriations authorization of $20,000,000; $40,000,000; $60,000,000; and $80,000,000 for fiscal years ending June 30, 1966, 1967, 1968, and 1969, respectively, for grants to improve quality of

educational programs in schools of medicine, dentistry, osteopathy, optometry, and podiatry.

EFFECTIVE DATE OF 1968 AMENDMENT

Section 111(d) of Pub. L. 90-490 provided that: "The amendments made by this section [to this section and sections 295f-1 to 295f-4 and 295g(d) of this title] shall apply with respect to appropriations for fiscal years ending after June 30, 1969."

SHORT TITLE

Section 1 of Pub. L. 89-290 provided: "That this Act [which enacted sections 295f to 295f-4 and 295g of this title, and amended sections 293, 293a, 293d, 294-294d, 297b, and 298b of this title] may be cited as the 'Health Professions Educational Assistance Amendments of 1965'."

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 293d, 2951-1, 295f-2 of this title.

§ 295f-1. Institutional grants.

(a) Distribution; computations; increases; adjustments.

(1) The sums available for grants under this section from appropriations under section 295f of this title for the fiscal year ending June 30, 1970, and for the next fiscal year shall be distributed to the schools of medicine, dentistry, osteopathy, pharmacy, optometry, veterinary medicine, and podiatry with approved applications as follows: Each school shall receive $25,000; and of the remainder

(A) 75 per centum shall be distributed on the basis of

(i) the relative enrollment of full-time students for such year, and

(ii) the relative increase in enrollment of such students for such year over the average enrollment of such school for the five school years preceding the year for which the application is made;

with the amount per full-time student so computed that a school receives twice as much for each such student in the increase as for other full-time students, and

(B) 25 per centum shall be distributed on the basis of the relative number of graduates for such year.

In computing the increase under clause (a)(ii) of the preceding sentence for any school, there shall be excluded a number equal to the increase required by subsection (b)(1) of this section (except in the case of a school to which the third sentence of such subsection applies).

(2) For the fiscal years ending June 30, 1970, and June 30, 1971, only, the sum computed under paragraph (1) for any school which is less than the amount such school received under this section for the fiscal year ending June 30, 1969, shall be increased to that amount, the total of the increases thereby required being derived by proportionately reducing the sums computed under such paragraph (1) for the remaining schools, but with such adjustments as may be necessary to prevent the sums computed for any such remaining schools from being reduced to less than the amount it received for such fiscal year ending June 30, 1969, under this section. (b) Enrollment increase requirement; waiver;

limitation; exceptions.

(1) The Secretary shall not make a grant under this section to any school 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 first year enrollment of full-time students in such school will exceed the average of the first-year enrollments of such students in such school for the two school years having the highest such enrollment during the five school years during the period of July 1, 1963, through June 30, 1968, by at least 22 per centum of such average firstyear enrollments, or by five students, whichever is greater. The requirements of this paragraph shall be in addition to the requirements of section 293a (c) (2) (D) of this title, where applicable. The Secretary is authorized to waive (in whole or in part) the provisions of this paragraph if he determines, after consultation with the National Advisory Council on Health Professions Educational Assistance, that the required increase in first-year enrollment of fulltime students in a school cannot, because of limitations of physical facilities available to the school for training, be accomplished without lowering the quality of training provided therein.

(2) Notwithstanding the preceding provisions of this section, no grant under this section to any school for any fiscal year may exceed the total of the funds from non-Federal sources expended (excluding expenditures of nonrecurring nature) by the school during the preceding year for teaching purposes (as determined in accordance with criteria prescribed by the Secretary), except that this paragraph shall not apply in the case of a school which has for such year a particular year-class which it did not have for the preceding year or in the case of Howard University.

(1) For purposes of this part and part F of this subchapter regulations of the Secretary shall include provisions relating to determination of the number of students enrolled in a school, or in a particular year-class in a school, or the number of graduates, as the case may be, on the basis of estimates, or on the basis of the number of students who were enrolled in a school, or in a particular yearclass in a school, or were graduates, in an earlier year, as the case may be, or on such basis as he deems appropriate for making such determination, and shall include methods of making such determinations when a school or a year-class was not in existence in an earlier year at a school.

(2) For purposes of this part and part F of this subchapter, the term "full-time students" (whether such term is used by itself or in connection with a particular year-class) means students pursuing a full-time course of study 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 optometry or an equivalent degree, doctor of veterinary medicine or an equivalent degree, or doctor of podiatry or an equivalent degree.

(d) Full time students in new schools.

In the case of a new school of medicine, dentistry, osteopathy, pharmacy, optometry, veterinary medi

cine, or podiatry, which applies for a grant under this section in the fiscal year preceding the fiscal year in which it will admit its first class, the enrollment for purposes of subparagraph (a) (1) (A) of this section shall be the number of full-time students which the Secretary determines, on the basis of assurances provided by the school, will be enrolled in the school, in the fiscal year after the fiscal year in which the grant is made. (July 1, 1944, ch. 373, title VII, § 771, as added Oct. 22, 1965, Pub. L. 89-290, § 2(a), 79 Stat. 1052, and amended Aug. 16, 1968, Pub. L. 90-490, title I, § 111(a), 82 Stat. 775; Nov. 2, 1970, Pub. L. 91-519, title I, § 101(a), 84 Stat. 1343.)

AMENDMENTS

1970 Subsec. (d). Pub. L. 91-519 added subsec. (d). 1968 Subsec. (a). Pub. L. 90-490 made schools of pharmacy and veterinary medicine eligible for grants and substituted provisions for distribution, computation, increase, and adjustment of institutional grants for fiscal years ending June 30, 1970, and 1971, for provisions for basic improvement grants arrived at for fiscal year ending June 30, 1966, by including payment of $12,500 plus product obtained by multiplying $250 by number of full-time students, and for fiscal years beginning July 1, 1966, and ending June 30, 1969, by including payment of $25,000 plus product obtained by multiplying $500 by number of full-time students.

Subsec. (b). Pub. L. 90-490 designated existing provisions as par. (1), substituted therein "the average of the first-year enrollments of such students in such school for the two school years having the highest such enrollment during the five school years during the period of July 1, 1963, through June 30, 1968, by at least 22 per centum of such first-year enrollments" and "National Advisory Council on Health Professions Educational Assistance" for "the highest first-year enrollment of such students in such school for any of the five school years during the period July 1, 1960, through July 1, 1965, by at least 22 per centum of such highest first-year enrollment" and "National Advisory Council on Medical, Dental, and Optometric, and Podiatric Education", respectively, and added par. (2).

Subsec. (c). Pub. L. 90-490 designated existing provisions as par. (1), required regulations thereunder to include provisions for determination of number of graduates on basis of number of graduates in an earlier year, redesignated former subsec. (d) as par. (2) and included as "full-time students" candidates for a degree of bachelor of science in pharmacy or doctor of pharmacy, and doctor of veterinary medicine or an equivalent degree. Subsec. (d). Pub. L. 90-490 redesignated provisions of former subsec. (d) as subsec. (c) (2).

EFFECTIVE DATE OF 1970 AMENDMENT Section 101 (b) of Pub. L. 91-519 provided that: "The amendment made by subsection (a) of this section [enacting subsec. (d) of this section] shall be effective only with respect to sums available for grants under section 771 of the Public Health Service Act [this section] from appropriations under section 770 of such Act [section 295f of this title] for the fiscal years ending after June 30, 1970."

EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-490 applicable with respect to appropriations for fiscal years ending after June 30, 1969, see section 111(d) of Pub. L. 90-490, set out as a note under section 295f of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 293a, 293d, 293f, 295f-2, 295f-3 of this title.

§ 295f-2. Special project grants; determination of need for emergency financial assistance; report to Congress by June 30, 1971.

(a) Grants may be made, from sums available therefore from appropriations under section 295f of

this title for the fiscal year ending June 30, 1970, and for the next fiscal year, to assist schools of medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, and veterinary medicine in meeting the cost of special projects to plan, develop, or establish new programs or modifications of existing programs of education in such health professions or to effect significant improvements in curriculums of any such schools or for research in the various fields related to education in such health professions, or to develop training for new levels or types of health professions personnel, or to assist any such schools which are in serious financial straits to meet their costs of operation or which have special need for financial assistance to meet the accreditation requirements, or to assist any such schools to meet the costs of planning experimental teaching facilities or experimental design thereof, or which will otherwise strengthen, improve, or expand programs to train personnel in such health professions or help to increase the supply of adequately trained personnel in such health professions needed to meet the health needs of the Nation. Sums appropriated under section 295f of this title for the fiscal year ending June 30, 1971, for grants under this section to assist any such schools which are in serious financial straits to meet their costs of operation shall remain available to make such grants until June 30, 1972.

(b) The Congress finds and declares that the Nation's economy, welfare, and security are adversely crisis which affected by the acute financial threatens the survival of medical and dental schools which provide the highest quality of teaching, medical and dental research, and delivery of health care for the Nation. The Secretary shall determine the need for emergency financial assistance to such medical and dental schools and shall report to the Congress on or before June 30, 1971, his determinations of such need and his recommendations for such administrative and legislative action as he determines is necessary to meet such needs. (July 1, 1944, ch. 373, title VII, § 772, as added Oct. 22, 1965, Pub. L. 89-20, § 2(a), 79 Stat. 1053, and amended Aug. 16, 1968, Pub. L. 90-490, title I, § 111(a), (e), 82 Stat. 776, 777; Nov. 2, 1970, Pub. L. 91-519, title I, § 102(a), 84 Stat. 1343.)

AMENDMENTS

1970-Pub. L. 91-519 redesignated existing provisions as subsec. (a) and in subsec. (a) as thus redesignated, extended until June 30, 1972, the period during which sums appropriated under section 295f of this title for grants under this section to assist schools in serious financial straits to meet their costs of operation in fiscal year ending June 30, 1971, would be available, and added subsec. (b).

1968-Pub. L. 90-490, § 111(a), substituted provisions for special project grants, including statement of objectives, for fiscal years ending June 30, 1970, and 1971, for provisions which authorized in former subsec. (a) additional grants by Surgeon General for special improvements from appropriations under former provisions of section 295f of this title available for fiscal years ending June 30, 1966, through 1969, prohibited such grants in former subsec. (b) unless utilized by recipient school to contribute toward maintenance of, or to provide for, accreditation, or to contribute toward maintenance of, or to provide for, specialized functions which the school serves, and limited such grants in former subsec. (c) to $100,000, $200,000, $300,000, and $400,000 for fiscal years ending June 30, 1966, through 1969, respectively.

Subsec. (b). Pub. L. 90-490, § 111(e), prohibited any special improvement grant under this section unless utilized by the recipient school to plan for special projects for which grants are authorized under this section as amended by section 111(a) of Pub. L. 90–490.

Subsec. (c). Pub. L. 90-490, § 111(e), struck out limitation on amount of grants under this section to $100,000; $200,000; $300,000; and $400,000 for fiscal years ending June 30, 1966, 1967, 1968, and 1969, respectively.

EFFECTIVE DATE OF 1970 AMENDMENT

Section 102(b) of Pub. L. 91-519 provided that: "The amendment made by paragraph (1) of subsection (a) of this section [amending redesignated subsec. (a) of this section] shall apply only with respect to appropriations under section 770 of the Public Health Service Act [section 295f of this title] made after the date of the enactment of this Act [November 2, 1970]."

EFFECTIVE DATE OF 1968 AMENDMENT

Amendment of this section by section 111(a) of Pub. L. 90-490 applicable with respect to appropriations for fiscal years ending after June 30, 1969, see section 111(d) of Pub. L. 90-490, set out as a note under section 295f of this title.

Amendment of subsec. (b) and deletion of subsec. (c) of this section by section 111(e) of Pub. L. 90-490 made effective only with respect to appropriations for fiscal year ending June 30, 1969, under provisions of such section 111(e).

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 293d, 2951, 2951-3 of this title.

§ 295f-3. Applications. (a) Filing dates.

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 grants under section 295f-1 or 295f-2 of this title for any fiscal year must be filed. (b) Eligibility.

To be eligible for a grant under this part, the applicant must (1) be a public or other nonprofit school of medicine, dentistry, osteopathy, optometry, pharmacy, veterinary medicine, or podiatry, and (2) be accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education, except that the requirement of this clause (2) shall be deemed to be satisfied if, (A) in the case of a school which by reason of no, or an insufficient, period of operation is not, at the time of application for a grant under this part, eligible for such accreditation, the Commissioner finds, after consultation with the appropriate accreditation body or bodies, that there is reasonable assurance that the school will meet the accreditation standards of such body or bodies prior to the beginning of the academic year following the normal graduation date of students who are in their first year of instruction at such school during the fiscal year in which the Surgeon General makes a final determination as to approval of the application, or (B) in the case of any other school, the Commissioner finds after such consultation and after consultation with the Surgeon General that there is reasonable ground to expect that, with the aid of a grant or grants under this part, having regard for the purposes of the grant sought, such school will meet such accreditation standards within a reasonable time.

The Surgeon General shall not approve or disapprove any application for a grant under this part except after consultation with the National Advisory Council on Health Professions Educational Assistance (established by section 295f-4 of this title). (d) Approval by Surgeon General; contents.

A grant under this part may be made only if the application therefor―

(1) is approved by the Surgeon General upon his determination that the applicant meets the eligibility conditions set forth in subsection (b) of this section:

(2) contains or is supported by assurances satisfactory to the Surgeon General that the applicant will expend in carrying out its functions as a school of medicine, dentistry, osteopathy, optometry, or podiatry, as the case may be, 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 (excluding expenditures of a nonrecurring nature) in the three fiscal years immediately preceding the fiscal year for which such grant is sought;

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

(4) 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 part.

(e) Priority of projects; matters considered.

In determining priority of projects applications for which are filed under section 295f-2 of this title, the Secretary shall give consideration to

(1) the extent to which the project will increase enrollment of full-time students receiving the training for which grants are authorized under this part;

(2) the relative need of the applicant for financial assistance to maintain or provide for accreditation or to avoid curtailing enrollment or reduction in the quality of training provided; and (3) the extent to which the project may result in curriculum improvement or improved methods of training or will help to reduce the period of required training without adversely affecting the quality thereof.

(July 1, 1944, ch. 373, title VII, § 773, as added Oct. 22, 1965, Pub. L. 89-290, § 2(a), 79 Stat. 1053, and amended Aug. 16, 1968, Pub. L. 90-490, title I, § 111 (b), 82 Stat. 776.)

AMENDMENTS

1968 Subsec. (a). Pub. L. 90-490, § 111(b)(1), struck out "basic or special" preceding "grants".

Subsec. (b)(1). Pub. L. 90-490, § 111(b) (2), made schools of pharmacy and veterinary medicine eligible for grants.

Subsec. (c). Pub. L. 90-490, § 111(b) (3), substituted "National Advisory Council on Health Professions Educational Assistance" for "National Advisory Council on Medical, Dental, Optometric, and Podiatric Education”.

Subsec. (d) (2). Pub. L. 90-490, § 111(b) (4), inserted "(excluding expenditures of a nonrecurring nature)" after "for such purpose".

Subsec. (e). Pub. L. 90-490, § 111(b) (5), substituted provisions enumerating as criteria for determining priority of projects by the Secretary (1) increased enrollment of students, (2) need for financial assistance to maintain or provide for accreditation or to avoid curtailing enrollment or reduction in quality of training, (3) and curriculum improvement, improved methods of training and reduced period of required training without affecting quality training for provisions under which Surgeon General considered need of applicant for a grant and effectiveness of applicant's plan in carrying out purposes of former provisions of section 295f-2(b) (1) and (2) of this title and in contributing to equitable geographical distribution of schools offering quality training of physicians, dentists, optometrists, and podiatrists.

EFFECTIVE DATE OF 1968 AMENDMENT

Amendment by Pub. L. 90-490 applicable with respect to appropriations for fiscal years ending after June 30, 1969, see section 111(d) of Pub. L. 90-490, set out as a note under section 295f of this title.

ABOLITION OF OFFICE OF SURGEON GENERAL

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 293d, 295g of this title.

§ 295f-4. National Advisory Council on Health Professions Educational Assistance.

(a) Establishment; composition; selection of mem

bers.

There is hereby established in the Public Health Service a National Advisory Council on Health Professions Educational Assistance consisting of the Surgeon General, who shall be Chairman, and fourteen members appointed without regard to the civil service laws by the Surgeon General with the approval of the Secretary of Health, Education, and Welfare, and such appointments may be made for specified staggered terms. The appointed members of the Council shall be selected from among leading authorities in the fields of medical, dental, optometric, podiatric, pharmaceutical, and veterinary education, respectively, except that not less than three of such members shall be selected from the general public.

(b) Functions.

The Council shall advise the Surgeon General in the preparation of general regulations and with respect to policy matters arising in the administration of this part and section 295g of this title, and in the review of applications under this part.

The Surgeon General is authorized to use the services of any member or members of the Council in connection with matters related to the administration of this part or section 295g of this title, for such periods, in addition to conference periods, as he may determine. (July 1, 1944, ch. 373, title VII, § 774, as added Oct. 22, 1965, Pub. L. 89-290, § 2(a), 79 Stat.

1054, and amended Aug. 16, 1968, Pub. L. 90-490, title I, § 111(c) (1), (2), 82 Stat. 777; Oct. 30, 1970, Pub. L. 91-515, title VI, § 601(b) (2), 84 Stat. 1311.) REFERENCES IN TEXT

The civil service laws, referred to in subsec. (a), are classified generally to Title 5, Government Organization and Employees.

AMENDMENTS

1970 Subsec. (d). Pub. L. 91-515 struck out subsec. (d) which related to the payment of compensation and travel expenses of appointed members of the Council.

1968 Subsec. (a). Pub. L. 90-490, § 111 (c) (1), (2), authorized appointment of members from authorities in fields of pharmaceutical and veterinary education; increased membership of Council from 12 to 14, and renamed as the "National Advisory Council on Health Professions Educational Assistance" former "National Advisory Council on Medical, Dental, Optometric, and Podiatric Education", respectively.

TRANSFER OF FUNCTIONS

All functions of Public Health Service, of the Surgeon General of the Public Health Service, and of all other officers and employees of the Public Health Service, and all functions of all agencies of or in the Public Health Service transferred to Secretary of Health, Education, and Welfare by 1966 Reorg. Plan No. 3, 31 F.R. 8855, 80 Stat. 1610, effective June 25, 1966, set out as a note under section 202 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 293d, 295f-3 of this title.

PART F.-SCHOLARSHIP GRANTS TO SCHOOLS OF MEDICINE, OSTEOPATHY, DENTISTRY, OPTOMETRY, PODIATRY, PHARMACY, OR VETERINARY MEDICINE

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in section 293d of this title. § 295g. Scholarship grants. (a) Authorization.

The Surgeon General shall make grants as provided in this part to each public or other nonprofit school of medicine, osteopathy, dentistry, optometry, podiatry, pharmacy, or veterinary medicine, which is accredited as provided in section 293a (b) (1) (B) or section 295f-3(b) (2) of this title for scholarships to be awarded annually by such school to students thereof.

(b) Amount of grant.

The amount of the grant under subsection (a) of this section to each such school shall be equal to $2,000 multiplied (1) for the fiscal year ending June 30, 1966, by one-tenth of the number of full-time first-year students of such school; (2) for the fiscal year ending June 30, 1967, by one-tenth of the number of full-time first-year students and second-year students of such school; (3) for the fiscal year ending June 30, 1968, by one-tenth of the number of full-time first-year students, second-year students, and third-year students of such school; and (4) for the fiscal year ending June 30, 1969, and each of the next two fiscal years by one-tenth of the number of full-time students of such school. For the fiscal year ending June 30, 1972, and for each of the two succeeding fiscal years, the grant under subsection (a) of this section shall be such amount as

may be necessary to enable such school to continue making payments under scholarship awards to students who initially received such awards out of grants made to the school for fiscal years ending prior to July 1, 1971.

(1) Scholarships may be awarded by schools from grants under subsection (a) of this section

(A) only to individuals who have been accepted by them for enrollment as full-time first-year students, in the case of awards from such grants for the fiscal year ending June 30, 1966;

(B) only to individuals who have been so accepted, and individuals enrolled and in good standing as full-time second-year students, in the case of awards from such grants for the fiscal year ending June 30, 1967;

(C) only to individuals who have been so accepted, and individuals enrolled and in good standing as full-time second-year or third-year students, in the case of awards from such grants for the fiscal year ending June 30, 1968;

(D) only to individuals who have been so accepted, and individuals enrolled and in good standing as full-time students, in the case of awards from such grants for the fiscal year ending June 30, 1969 and each of the next two fiscal years; and

(E) only to individuals enrolled and in good standing as full-time students who initially received scholarship awards out of such grants for a fiscal year ending prior to July 1, 1971, in the case of awards from such grants for the fiscal year ending June 30, 1972, or the two succeeding fiscal years.

(2) Scholarships from grants under subsection (a) of this section for any school year shall be awarded only to students of exceptional financial need who need such financial assistance to pursue a course of study at the school for such year. Any such scholarship awarded for a school year shall cover such portion of the student's tuition, fees, books, equipment, and living expenses at the school making the award, but not to exceed $2,500 for any year, as such school may determine the student needs for such year on the basis of his requirements and financial resources.

(d) Regulations; consultation with Council.

Grants under subsection (a) of this section shall be made in accordance with regulations prescribed by the Surgeon General after consultation with the National Advisory Council on Health Professions Educational Assistance.

(e) Manner of making grant payments.

Grants under subsection (a) of this section may be paid in advance or by way of reimbursement, and at such intervals as the Surgeon General may find necessary; and with appropriate adjustments on account of overpayments or underpayments previously made. (July 1, 1944, ch. 373, title VII, § 780, as added Oct. 22, 1965, Pub. L. 89-290, § 2(a), 79 Stat. 1055, and amended Aug. 16, 1968, Pub. L. 90490, title I, §§ 111 (c) (4), 122(a)—(c), 82 Stat. 777, 779.)

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United States Code, Volume 9