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42 U.S.C. 2910-1

(j) The term "cost" as applied to construction or modernization means the amount found by the Surgeon General to be necessary for construction and modernization respectively, under a project, except that such term, as applied to a project for modernization of a facility for which a grant or loan is to be made from an allotment under section 602(a)(2), does not include any amount found by the Surgeon General to be attributable to expansion of the bed capacity of such facility.

(k) The term "modernization" includes alteration, major repair (to the extent permitted by regulations), remodeling, replacement, and renovation of existing buildings (including initial equipment thereof), and replacement of obsolete, built-in (as determined in accordance with regulations) equipment of existing buildings. (1) The term "title," when used with reference to a site for a project, means a fee simple, or such other estate or interest (including a leasehold on which the rental does not exceed 4 per centum of the value of the land) as the Surgeon General finds sufficient to assure for a period of not less than fifty years' undisturbed use and possession for the purposes of construction and operation of the project.

FINANCIAL STATEMENTS

SEC. 646. In the case of any facility for which a grant, loan, or loan guarantee has been made under this title, the applicant for such grant, loan, or loan guarantee (or, if appropriate, such other person as the Secretary may prescribe) shall file at least annually with the State agency for the State in which the facility is located a statement which shall be in such form, and contain such information, as the Secretary may require to accurately show

(1) the financial operations of the facility, and

(2) the costs to the facility of providing health services in the facility and the charges made by the facility for providing such services,

during the period with respect to which the statement is filed.

TITLE VII-HEALTH RESEARCH AND TEACH-
ING FACILITIES AND TRAINING OF PRO-
FESSIONAL HEALTH PERSONNEL

PART A-GRANTS FOR CONSTRUCTION OF HEALTH
RESEARCH FACILITIES

DECLARATION OF POLICY

SEC. 701. (a) The Congress hereby finds and declares 42 U.S.C. 292 that (1) the Nation's economy, welfare, and security are adversely affected by many crippling and killing diseases the prevention and control of which require a substantial increase, in all areas of the Nation, of research activities in the sciences related to health, and (2) funds for the construction of new and improved non-Federal facilities to house such activities are inadequate.

(b) It is therefore the purpose of this part to assist in the construction of facilities for the conduct of research in the sciences related to health by providing grants-inaid on a matching basis to public and nonprofit institutions for such purpose.

DEFINITIONS

SEC. 702. As used in this part

Facilities

(1) the term "Council" means the National Ad-
visory Council on
on Health Research
established by section 703;

(2) the terms "construction" and "cost of con-
struction" include (A) the construction of new build-
ings, 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, re-
modeled, or altered;

(3) 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; and

(4) the term "sciences related to health" includes medicine, osteopathy, dentistry, and public health, and fundamental and applied sciences when related thereto.

42 U.S.C. 292a

42 U.S.C. 292b

NATIONAL ADVISORY COUNCIL ON HEALTH RESEARCH

FACILITIES

SEC. 703. (a) There is hereby established in the Public Health Service a National Advisory Council on Health Research Facilities, consisting of the Surgeon General of the Public Health Service, who shall be Chairman, and an official of the National Science Foundation designated by the National Science Board, who shall be ex officio members, and twelve 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 eight shall be selected from among leading medical, dental, or scientific authorities who are skilled in the sciences related to health. 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, and administration of institutions engaged in the conduct of research in the sciences related to health, and (2) familiarity with the need for research facilities in all areas of the Nation. (b) The Council shall—

(1) advise and assist the Secretary in the preparation of general regulations and with respect to policy matters arising in the administration of this part; and

(2) consider all applications for grants under this part and make to the Secretary such recommendations as it deems advisable with respect to (A) the approval of such applications, and (B) the amount which should be granted to each applicant whose application, in its opinion, should be approved.

(c) The Secretary is authorized to use the services of any member or members of the Council, and where appropriate, any member or members of the Federal Hospital Council, the National Advisory Health Council or the other national advisory councils or committees referred to in section 217 of this Act, in connection with matters related to the administration of this part, for such periods, in addition to conference periods, as he may determine. The Secretary shall, in addition, make appropriate provision for consultation between and coordination of the work of the Council, the Federal Hospital Council, the National Advisory Health Council and such other national advisory councils or committees with respect to matters bearing on the purposes and administration of this part.

AUTHORIZATION OF APPROPRIATIONS

SEC. 704.1 There is hereby authorized to be appropriated for the fiscal year ending June 30, 1957, and for each of the nine succeeding fiscal years, not to exceed $50,000,000, for the fiscal year ending June 30, 1967, and the two succeeding fiscal years, an aggregate of not to exceed $280,000,000, $20,000,000 for the fiscal year ending June 30, 1970, and $30,000,000 for the next fiscal year, for making grants-in-aid for the construction of facilities for research, or research and related purposes, in the sciences related to health; and any sums appropriated pursuant to this section shall remain available until expended.

APPROVAL OF APPLICATIONS

42 U.S.C. 292c

SEC. 705. (a) The Secretary may from time to time set 42 U.S.C. 292d dates (not earlier than in the fiscal year preceding the year for which a grant is sought) by which applications for grants under this part for any fiscal year must be

filed.

(b) To be eligible to apply for a grant under this part, the applicant must be a public or nonprofit institution, determined by the Secretary, after consultation with the Council, to be competent to engage in the type of research for which the facility is to be constructed.

(c) A grant under this part may be made only if the application therefor is recommended for approval by the Council and is approved by the Secretary 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 research, or research and related purposes, in the sciences related to health for which it is to be constructed, (B) subject to subsection (d), 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 research, or research and related purposes, for which it is being constructed;

(3) the proposed construction will expand the applicant's capacity for research in the sciences related to health, or is necessary to improve or maintain the quality of the applicant's research in the

sciences related to health; and,

See sec. 720 (a) for authorizations for fiscal years 1972, 1973, and

1974.

42 U.S.C. 2920

(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 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). 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).

(d) Within such aggregate monetary limit as the Secretary may prescribe, after consultation with the Council, applications which (solely by reason of the inability of the applicants to give the assurance required by clause (B) of subsection (c) (2)) fail to meet the requirements for approval set forth in subsection (c) may be approved upon condition that the applicants give the assurance required by such clause (B) within a reasonable time and upon such other reasonable terms and conditions as he may determine after consultation with the Council.

(e) In acting upon applications for grants, the Council and the Secretary shall take into consideration the relative effectiveness of the proposed facilities in expanding capacity for research, or research and related purposes, in the sciences related to health, in improving the quality of such research or related purposes and in promoting an equitable geographical distribution of such research (giving due consideration to population, available scientific research workers, and available research resources in various areas of the Nation).

AMOUNT OF GRANT; PAYMENTS

SEC. 706. (a) (1) The amount of any grant made under this part shall be that recommended by the Council or such lesser amounts as the Secretary determines to be appropriate; but such amount may not, except as provided in paragraph (2), exceed 50 per centum of the necessary cost of the construction of such facility as determined by him, in the case of a facility which the Secretary determines is to be used for research, or research and purposes related thereto (including research training), in the sciences related to health or, in the case of any other multi-purpose facility, 50 per centum of the part of the necessary cost of construction which the Secretary determines to be proportionate to the contemplated use of the facility for research or research and related purposes, in the sciences related to health.

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