sixteen members appointed by the Secretary without regard to the civil service laws. Four of the appointed members shall be selected from the general public and twelve shall be selected from among leading authorities in the fields of higher education, at least eight of whom are particularly concerned with training in medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, nursing, or the public health professions. In selecting persons for appointment to the Council, consideration shall be given to such factors, among others, as (1) experience in the planning, constructing, financing, or administration of schools of medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, nursing, or schools of public health, and (2) familiarity with the need for teaching facilities in all areas of the Nation.

"(b) 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 in the review of applications thereunder.

"(c) 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, for such periods, in addition to conference periods, as he may determine. The Surgeon General shall, in addition, make appropriate provision for consultation between and coordination of the work of the Council and the National Advisory Council on Health Research Facilities with respect to matters bearing on the purposes and administration of this part.

"(d) Appointed members of the Council, while attending conferences or meetings of the Council or while otherwise serving at the request of the Surgeon General, shall be entitled to receive compensation at a rate to be fixed by the Secretary but not exceeding $50 per diem, including travel time, and while away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5 of the Administrative Expenses Act of 1946 (5 U.S.C. 73b-2) for persons in the Government service employed intermittently.

"NONINTERFERENCE WITH ADMINISTRATION OF INSTITUTIONS

"SEC. 726. 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 personnel, curriculum, methods of instruction, or administration of any institution.

REGULATIONS

"SEC. 727. (a) The Surgeon General, after consultation with the Council and with the approval of the Secretary, shall prescribe general regulations for this part covering the eligibility of institutions, the order of priority in approving applications, the terms and conditions for approving applications, determinations of the amounts of grants, and minimum standards of construction and equipment for various types of institutions.

"(b) The Surgeon General is authorized to make, with the approval of the Secretary, such other regulations as he finds necessary to carry out the provisions of this part.

"TECHNICAL ASSISTANCE

"SEC. 728. In carrying out the purposes of this part, and to further the development of State, or joint or coordinated regional or other interstate, planning of programs for relieving shortages of training capacity in the fields of medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, nursing, and public health, through constructing teaching facilities, providing adequate financial support for schools, or otherwise, the Surgeon General is authorized to provide technical assistance and consultative services to State or interstate planning agencies established for any of such purposes.

"PLANNING GRANTS FOR HEALTH EDUCATION PROGRAMS

"SEC. 729. There is hereby authorized to be appropriated for each fiscal year in the period beginning July 1, 1963, and ending June 30, 1973, the sum of $500,000 to enable the Surgeon General to make grants to regional, interstate, State, or local public or nonprofit private agencies and organizations and to any public or nonprofit private institution for planning and determining the need for teaching facilities for, or otherwise planning a new, expanded, or improved program

of, training physicians, pharmacists, optometrists, podiatrists, nurses, professional public health personnel, or dentists.

"PART C-STUDENT LOANS

"LOAN AGREEMENTS

"SEC. 740. (a) The Secretary of Health, Education, and Welfare is authorized to enter into an agreement for the establishment and operation of a student loan fund in accordance with this part with any public or other nonprofit school of medicine, osteopathy, or dentistry (as defined in section 724) which is located in a State and is accredited as provided in section 721 (b) (1) (B).

"(b) Each agreement entered into under this section shall

"(1) provide for establishment of a student loan fund by the school;

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'(2) provide for deposit in the fund of (A) the amounts allocated under this part to the school by the Secretary, (B) an additional amount from other sources equal to not less than one-ninth of amounts deposited pursuant to clause (A), (C) collections of principal and interest on loans made from the fund, and (D) any other earnings of the fund;

"(3) provide that the fund shall be used only for loans to students of the school in accordance with the agreement and for costs of collection of such loans and interest thereon; and

"(4) contain such other provisions as are necessary to protect the financial interests of the United States.

"LOAN PROVISIONS

"SEC. 741. (a) Loans from a loan fund established under this part may not exceed $2,000 for any student for any academic year or its equivalent, reduced by the amounts loaned to such student for that year out of a loan fund established under section 204 of the National Defense Education Act of 1958. In the granting of such loans, a school shall give preference to persons who enter as first-year students after June 30, 1963.

"(b) Any such loans shall be made on such terms and conditions as the school may determine, but may be made only to a student in need of the amount thereof to pursue a full-time course of study at the school leading to a degree of doctor of medicine, doctor of dentistry or an equivalent degree, or doctor of osteopathy. "(c) Such loans shall be repayable in equal or graduated periodic installments (with the right of the borrower to accelerate repayment) over the ten-year period which begins three years after the student ceases to pursue a full-time course of study at a school of medicine, osteopathy, or dentistry, excluding from such tenyear period all periods (up to three years) of (1) active duty performed by the borrower as a member of a uniformed service, or (2) service as a volunteer under the Peace Corps Act.

"(d) The liability to repay the unpaid balance of such a loan and accrued interest thereon shall be canceled upon the death of the borrower, or if the Secretary determines that he has become permanently and totally disabled.

"(e) Such loans shall bear interest, on the unpaid balance of the loan, at the rate of 3 per centum per annum, computed only for periods during which the loan is repayable.

"(f) Where any person who obtained one or more loans from a loan fund established under this part

"(1) (A) engages in the practice of medicine, dentistry, or osteopathy in an area in a State determined by the appropriate State health authority to have a shortage of and need for physicians or dentists; or

"(B) is employed full-time as a physician or dentist by any public agency, is on active duty as a physician or dentist with a uniformed service, or is employed full-time as a physician or dentist by any nonprofit private agency or organization located in a State; and

"(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 em

ployment 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 per centum 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 Secre tary 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 that 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 applications 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 agreements 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 arrange

ments, 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. 2527, 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, PHARMACEUTICAL, OPTOMETRIC, FODIATRIC, NURSING, 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 TEACHING FACILITIES FOR MEDICAL, DENTAL, AND OTHER HEALTH PERSONNEL

"AUTHORIZATION OF APPROPRIATIONS

"SEC. 720. There are hereby authorized to be appropriated 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, pharmacists, optometrists, podiatrists, nurses, 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, pharmacists, optometrists, podiatrists, nurses, 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) (1) To be eligible to apply for a grant to assist in the construction of any facility under this part, the applicant must be (A) a public or other nonprofit school of medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, nursing, or public health and (B) 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 body or bodies, that there is reasonable assurance that the school will, upon completion of such facility, meet the accreditation standards of such body or bodies.

"(2) Notwithstanding paragraph (1), in the case of an affiliated hospital, an application which is approved by the school of medicine with which the hospital is affiliated and which otherwise complies with the requirements of this part may be filed by any public or other nonprofit agency qualified to file an application under section 625.

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