“(2) (A) in the case of practice described in paragraph (1)(A) of this subsection, the appropriate State health authority certifies to the Secretary of Health, Education, and Welfare in such form and at such times as the Secretary may prescribe that such practice helps to meet the shortage of and need for physicians or dentists in the area where the practice occurs; "(B) in the case of employment (other than Federal employment or service in a uniformed service) by any public agency or nonprofit private agency or organization, the State health authority for the State in which the employment is performed certifies to the Secretary of Health, Education, and Welfare in such form and at such times as the Secretary may prescribe that such employment helps meet a shortage of and need for persons to perform such employment; and

"(C) in the case of Federal employment or service in a uniformed service, the head of the employing agency or uniformed service, as the case may be, certifies to the Secretary of Health, Education, and Welfare in such form and at such times as the Secretary may prescribe that such employment or service helps meet a shortage of and need for persons to perform such employment or such military service;

then 10 percentum of the total of such loans, plus accrued interest on such amount, which are unpaid as of the date such practice or employment, or such service in a uniformed service begins, shall be canceled thereafter for each year of such practice, employment, or service, or combination thereof, up to a total of 50 per centum of such total, plus accrued interest thereon.

"(g) Loans shall be made under this part without security or endorsement, except that if the borrower is a minor and the note or other evidence of obligation executed by him would not, under the applicable law, create a binding obligation, either security or endorsement may be required.

"(h) No note or other evidence of a loan made under this part may be transferred or assigned by the school making the loan except that, if the borrower transfers to another school participating in the program under this part, such note or other evidence of a loan may be transferred to such other school.

"(i) Where all or any part of a loan, or interest, is canceled under this section, the Secretary shall pay to the school an amount equal to the school's proportionate share of the canceled portion, as determined by the Secretary.

"AUTHORIZATION OF APPROPRIATIONS

"SEC. 742. (a) There are hereby authorized to be appropriated to the Secretary of Health, Education, and Welfare to carry out this part $5,100,000 for the fiscal year ending June 30, 1964, $10,200,000 for the fiscal year ending June 30, 1965, $15,400,000 for the fiscal year ending June 30, 1966, $20,600,000 for the fiscal year ending June 30, 1967, $21,000,000 for the fiscal year ending June 30, 1968, and such sums for the fiscal year ending June 30, 1969, and each of the two succeeding fiscal years as may be necessary to enable students who have received a loan for any academic year ending before July 1, 1968, to continue or complete their education. Sums appropriated pursuant to this subsection shall be allotted among loan funds at schools which have established loan funds under this part.

"(b) (1) The Secretary shall from time to time set dates by which schools with which he has in effect agreements under this part must file applications for allotments to their loan funds.

"(2) If the total of the amounts requested for any fiscal year in such applications exceeds the amounts appropriated under this part for this fiscal year, the allotment to the loan fund of each such school shall be reduced to whichever of the following is the smaller: (A) the amount requested in its application or (B) an amount which bears the same ratio to the amounts appropriated as the number of students estimated by the Secretary to be enrolled in such school during such fiscal year bears to the estimated total number of students in all such schools during such year. Amounts remaining after allotment under the preceding sentence shall be reallotted in accordance with clause (B) of such sentence among schools whose application requested more than the amounts so allotted to their loan funds, but with such adjustments as may be necessary to prevent the total allotted to any such school's loan fund from exceeding the total so requested by it.

"(3) Allotments to a loan fund of a school shall be paid to it from time to time in such installments as the Secretary determines will not result in unnecessary accumulations in the loan fund at such school.

"DISTRIBUTION OF ASSETS FROM LOAN FUNDS

"SEC. 743. (a) After June 30, 1971, and not later than September 30, 1971, there shall be a capital distribution of the balance of the loan fund established under this part by each school as follows:

"(1) The Secretary shall first be paid an amount which bears the same ratio to the balance in such fund at the close of June 30, 1971, as the total amount of the allotments to such fund by the Secretary under this part bears to the total amounts in such fund derived from such allotments and from funds deposited therein pursuant to section 740 (b) (2) (B).

"(2) The remainder of such balance shall be paid to the school. "(b) After September 30, 1971, each school with which the Secretary has made an agreement under this part shall pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school after June 30, 1971, in payment of principal or interest on loans made from the loan fund established pursuant to such agreement as was determined for the Secretary under subsection (a).

"LOANS TO SCHOOLS

"SEC. 744. Upon application by any school with which he has made an agreement under this part, the Secretary may make a loan to such school for the purpose of helping to finance deposits required by section 740(b) (2) (B) in a loan fund established pursuant to such agreement. Such loan may be made only if the school shows it is unable to secure such funds upon reasonable terms and conditions from non-Federal sources. Loans made under this section shall bear interest at a rate sufficient to cover (1) the cost of the funds to the Treasury, (2) the cost of administering this section, and (3) probable losses.

"ADMINISTRATIVE PROVISIONS

"SEC. 745. The Secretary may agree to modifications of agreement or loans made under this part, and may compromise, waive, or release any right, title, claim, or demand of the United States arising or acquired under this part." SEC. 3. (a) Section 705 (c) of the Public Health Service Act is amended by striking out "and" at the end of paragraph (2), by striking out the period at the end of paragraph (3) and inserting in lieu thereof "; and", and by adding after paragraph (3) the following new paragraph:

"(4) the application contains or is supported by adequate assurance that any laborer or mechanic employed by any contractor or subcontractor in the performance of work on the construction of the facility (A) will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a5), and (B) will receive compensation at a rate not less than one and one-half times his basic rate of pay for all hours worked in any workweek in excess of eight hours in any workday or forty hours in the workweek. The Secretary of Labor shall have, with respect to the labor standards specified in this paragraph, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267), and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c)."

(b) Part A of title VII of such Act is further amended by inserting after section 710 the following new sections:

"TECHNICAL ASSISTANCE

"SEC. 711. The Surgeon General is authorized to provide assistance to applicants under this part, and other public or nonprofit institutions engaging or competent to engage in research, or research and related purposes, in the sciences related to health, in designing and planning the construction of facilities for the conduct of such research or research and related purposes.

"CONSTRUCTION OF REGIONAL FACILITIES

"SEC. 712. When the Surgeon General finds, in accordance with regulations, that the purposes of this part can best be achieved through the construction of research, or research and related purposes, facilities of particular value or significance for the Nation or a region thereof, and that because of the cost of such facilities or their use as a national or regional resource for research or related purposes a grant pursuant to the preceding provisions of this part does not provide an effective or appropriate means of financing the construction of such facilities, he may construct or make arrangements for constructing, through contracts for paying (including advance or installment payments) part or all of the cost of construction or otherwise, facilities for the conduct of research, or for research and related purposes, in the sciences related to health. The Surgeon General may, where he deems such action appropriate, make arrangements, by contract or otherwise, for the operation of such facilities (for the conduct of such research, or research and related purposes) or may make contributions toward the cost of such operation of facilities of this nature whether or not constructed pursuant to, or with aid provided under, this section. Title to any facility constructed under this section may be transferred by the Surgeon General on behalf of the United States to any public or nonprofit private institution competent to engage in the type of research, or research and related purposes, for which the facility was constructed. Such transfer shall be made subject to the condition that the facility will be operated for the research, or research and related purposes, for which it was constructed and to such other conditions as the Surgeon General deems necessary to carry out the objectives of this part and to protect the interests of the United States."

[H.R. 180, 88th Cong., 1st sess.]

A BILL To increase the opportunities for training of physicians, dentists, and professional public health personnel, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Health Professions Educational Assistance Act of 1963".

GRANTS FOR CONSTRUCTION OF MEDICAL, DENTAL, OSTEOPATHIC, AND PUBLIC HEALTH TEACHING FACILITIES

SEC. 2. (a) Title VII of the Public Health Service Act (42 U.S.C. chap 6A) is amended by inserting "AND TEACHING" after "RESEARCH" in the heading thereof, by inserting "AND TRAINING OF PROFESSIONAL HEALTH PERSONNEL" after "FACILITIES" in such heading, and by inserting immediately below such heading "PART A-GRANTS FOR CONSTRUCTION OF HEALTH RESEARCH FACILITIES", and by changing the words "this title" wherever they appear in such title to read "this part".

(b) Such title is further amended by adding at the end thereof the following: "PART B-GRANTS FOR CONSTRUCTION OF MEDICAL, DENTAL, OSTEOPATHIC, AND PUBLIC HEALTH TEACHING FACILITIES

"AUTHORIZATION OF APPROPRIATIONS

"SEC. 720. There are hereby authorized to be apropriated for each fiscal year in the period beginning July 1, 1963, and ending June 30, 1973 (1) not to exceed $45,000,000 for grants to assist in the construction of new teaching facilities for the training of physicians or professional public health personnel, (2) not to exceed $15,000,000 for grants to assist in the construction of new teaching facilities for the training of dentists, and (3) not to exceed $15,000,000 for replacement or rehabilitation of existing teaching facilities for the training of physicians, professional public health personnel, or dentists.

"APPROVAL OF APPLICATIONS

"SEC. 721. (a) No application for a grant under this part may be approved unless it is submitted to the Surgeon General prior to July 1, 1972.

"(b) To be eligible to apply for a grant to assist in the construction of any facility under this part, the applicant must be (1) a public or other nonprofit school of medicine, dentistry, osteopathy, or public health and (2) accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education, except that a new school which (by reason of no, or an insufficient, period of operation) is not, at the time of application for a grant to construct a facility under this part, eligible for accreditation by such a recognized body or bodies, shall be deemed accredited for purposes of this part if the Commissioner of Education finds, after consultation with the appropriate accreditation bodies or bodies, that there is a resonable assurance that the school will, upon completion of such facility, meet the accreditation standards of such body or bodies. "(c) A grant under this part may be made only if the application therefor is approved by the Surgeon General upon his determination that

"(1) the applicant meets the eligibility conditions set forth in subsection (b);

"(2) the application contains or is supported by reasonable assurances that (A) for not less than ten years after completion of construction, the facility will be used for the purposes of the teaching for which it is to be constructed, (B) sufficient funds will be available to meet the non-Federal share of the cost of constructing the facility, and (C) sufficient funds will be available, when construction is completed, for effective use of the facility for the training for which it is being constructed;

"(3) (A) in the case of an application for a grant from funds appropriated pursuant to clause (1) of section 720, such application is for aid in the construction of a new school of medicine, osteopathy, or public health, or construction which will expand the training capacity of an existing such school, (B) in the case of an application for a grant from funds appropriated pursuant to clause (2) of such section, such application is for aid in the construction of a new school of dentistry or construction which will expand the capacity of an existing school of dentistry, or (C) in the case of an application for a grant from funds appropriated pursuant to clause (3) of such section, such application is for aid in construction which will replace or rehabilitate facilities of an existing school of medicine, dentistry, osteopathy, or public health which are so obsolete as to require the school to curtail substantially either its enrollment or the quality of the training provided: "(4) the plans and specifications are in accordance with regulations relating to minimum standards of construction and equipment;

"(5) the application contains or is supported by adequate assurance that any laborer or mechanic employed by any contractor or subcontractors in the performance of work on the construction of the facility (A) will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a5), and (B) will receive compensation at a rate not less than one and one-half times his basic rate of pay for all hours worked in any workweek in excess of eight hours in any workday or forty hours in the workweek. The Secretary of Labor shall have, with respect to the labor standards specified in this paragraph, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267), and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c); and

"(6) if the application requests aid in construction of a facility which is a hospital or diagnostic or treatment center, as defined in section 631, an application with respect thereto has been filed under title VI and has been denied thereunder because (A) the project has no or insufficient priority, or (B) funds are not available for the project from the State's allotments under title VI.

Before approving or disapproving an application under this part, the Surgeon General shall secure the advice of the National Advisory Council on Education for Health Professions established by section 725 (hereinafter in this part referred to as the 'Council').

"(d) In considering applications for grants, the Council and the Surgeon General shall take into account

"(1) (A) in the case of a project for a new school or for expansion of the facilities of an existing school, the relative effectiveness of the proposed facilities in expanding the capacity for the training of first-year students of

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medicine, dentistry, or osteopathy (or, in the case of a two-year school which is expanding to a four-year school, expanding the capacity for fouryear training of students in the field), or for the training of professional public health personnel, and in promoting an equitable geographical distribution of opportunities for such training (giving due consideration to population, available physicians, dentists, or professional public health personnel, and available resources in various areas of the Nation for training such persons); or

"(B) in the case of a project for replacement or rehabilitation of existing facilities of a school, the relative need for such replacement or rehabilitation to prevent curtailment of the school's enrollment or deterioration of the quality of the training provided by the school, and the relative size of any such curtailment and its effect on the geographical distribution of opportunities for training (giving consideration to the factors mentioned above in paragraph (1) ); and

"(2) in the case of an applicant in a State which has in existence a State planning agency, or which participates in a regional or other interstate planning agency, described in section 728, the relationship of the application to the construction or training program which is being developed by such agency with respect to such State and, if such agency has reviewed such application, any comment thereon submitted by such agency.

"AMOUNT OF GRANT; PAYMENTS

"SEC. 722. (a) The amount of any grant under this part shall be that recommended by the Council or such lesser amount as the Surgeon General determines to be appropriate; except that (1) in the case of a grant for a project for a new school, and in the case of a grant for new facilities for an existing school in cases where such facilities are of particular importance in providing a major expansion of training capacity, as determined in accordance with regulations, such amount may not exceed 66% per centum of the necessary cost of construction, as determined by the Surgeon General, of such project; and (2) in the case of any other grant, such amount may not exceed 50 per centum of the necessary cost of construction, as so determined, of the project with respect to which the grant is made.

"(b) Upon approval of any application for a grant under this part, the Surgeon General shall reserve, from any appropriation available therefor, the amount of such grants as determined under subsection (a); the amount so reserved may be paid in advance or by way of reimbursement, and in such installments consistent with construction progress, as the Surgeon General may determine. The Surgeon General's reservation of any amount under this section may be amended by him, either upon approval of an amendment of the application or upon revision of the estimated cost of construction of the facility. "(c) In determining the amount of any grant under this part, there shall be excluded from the cost of construction an amount equal to the sum of (1) the amount of any other Federal grant which the applicant has obtained, or is assured of obtaining, with respect to the construction which is to be financed in part by grants authorized under this part, and (2) the amount of any non-Federal funds required to be expended as a condition of such other Federal grant.

"RECAPTURE OF PAYMENTS

"SEC. 723. If, within ten years after completion of any construction for which funds have been paid under this part

"(a) the applicant or other owner of the facility shall cease to be a public or nonprofit school, or

"(b) the facility shall cease to be used for the teaching 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),

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.