57.3403 What entities are eligible to apply for a grant?

57.3404 How must an entity apply for a grant?

57.3405 What requirements must a project meet?

57.3406 How will the Secretary evaluate applications and make grant awards? 57.3407 How will grant payments be made? 57.3408 Purposes for which grant funds may be spent.

57.3409 What nondiscrimination requirements apply to grantees?

57.3410 How must grantees account for grant funds received?

57.3411 Applicability of 45 CFR Part 74. 57.3412 What recordkeeping, audit, and inspection requirements apply to grantees?

57.3413 What additional conditions apply to grantees?

Subpart JJ-Capitation Grants for Schools of Public Health

57.3501 To whom do these regulations apply?

57.3502 Definitions.

57.3503 Who is eligible to apply for a public health capitation grant? 57.3504 What assurance are required of all applicants for capitation grants? 57.3505 How will the number of students at each school be determined?

57.3506 Under what circumstances and in what amounts may these grants be made?

57.3507 What expenses are allowable under these capitation grants?

57.3508 What additional Department regulations apply to grantees?

57.3509 What audit inspection requirements apply to grantees? 57.3510 Additional conditions.

Subparts KK-LL-[Reserved]

Subpart MM-Area Health Education Center Program

57.3801 To what programs do these regulations apply?

57.3802 Definitions.

57.3803 Who is eligible to apply for a coop

erative agreement?

57.3804 Project requirements.

57.3805 When do the requirements of 57.3804 apply?

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The regulations in this part are applicable to the award of grants under Part B of title VII of the Public Health Service Act for construction of teaching facilities for medical, dental, and other health personnel (42 U.S.C. 293 et seq.).

§ 57.102 Definitions.

As used in this subpart:

(a) All terms not defined herein shall have the same meaning as given them in section 724 of the Act.

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(h) "Equipment" includes items which are necessary for the functioning of the facility or portion thereof with respect to which the grant is made, but does not include items of current operating expense or consumed in use such as glassware, chemicals, food, fuel, drugs, paper, printed forms, books, pamphlets, periodicals and disposable housekeeping items.

(i) "Advanced education" means training in the health sciences beyond the first professional degree or equivalent degree, and such training related thereto. Such training may include internships and residencies, and work toward masters and Ph. D. degrees.

(j) “Continuing education" means training for which no degree is awarded and in which health professions personnel participate in order to enhance their skills, and may include refresher courses, seminars, and the like.

(k) "Multipurpose facilities" means facilities which are primarily for teaching purposes, but which are also for research, or research and related purposes, in the sciences related to health (within the meaning of Part A of title VII of the Act) or for medical library purposes (within the meaning of Part J of title III). The Secretary may determine "to be primarily for teaching purposes" any facilities with respect to which he determines that the health professions teaching portions of such facilities, including research and library space essential for teaching purposes, will substantially exceed the total of the research and library portions which are not essential for teaching taken together.

(1) "Completion of construction" means that date on which the Secretary determines, on the basis of certification by the grantee, that the project is completed: Provided, however, In the event the grantee occupies the project prior to the date of such certification, the Secretary shall be immediately notified of such occupancy, and "completion of construction" shall be deemed to have occurred with respect to the project as of the date of such occupancy.

§ 57.103 Eligibility.

In order to be eligible for a construction grant under Part B of the Act, the applicant shall:

(a) Meet the applicable requirements of section 721(b) of the Act;

(b) Be a public or nonprofit private school of medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, veterinary medicine, public health, or any combination thereof, or an affiliated hospital or affiliated outpatient facility;

(c) Be located in a State, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, the Canal Zone, American Samoa, the Trust Territories of the Pacific Islands or Guam;

(d) Except in the case of an application with respect to an affiliated hospital or affiliated outpatient facility, be accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education,

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except that a new school which (by reason of no, or an insufficient period of, operation) is not, at the time of making application for the construction grant, eligible for accreditation by such recognized body or bodies shall be deemed accredited for purposes of receiving a grant if the Commissioner finds, after consultation with the appropriate accreditation body or bodies, that there is reasonable assurance that the school, after completion of the facility and at or prior to the time of graduation of the first class to use such facility, will have met the accreditation standards of such body or bodies: Provided, That, in the case of an application from a combination of schools, each constituent school must meet the requirements of this paragraph;

(e) In the case of an application with respect to an affiliated hospital or outpatient facility, have its application approved by the school of medicine, osteopathy, or dentistry with which the hospital or outpatient facility is affiliated;

(f) In the case of an application with respect to the construction of multipurpose facilities, provide evidence satisfactory to the Secretary that such facilities will be used primarily for teaching purposes, and that such facilities are otherwise eligible under Part B of title VII of the Act;

(g) In the case of a project for the construction of a facility intended, at least in part, for the provision of health services, provide an opportunity for comment with respect to such project to

(1) The State agency administering or supervising the administration of the State plan approved under section 314(a), and

(2) The public or nonprofit private agency or organization responsible for the plan or plans referred to in section 314(b) and covering the area in which such project is to be located or if there is no such agency, such other public or nonprofit private agency or organization (if any) as performs, as determined in accordance with criteria of the Secretary, similar functions;

(h) In the case of an application with respect to interim facilities, provide assurance satisfactory to the Sec

retary that such facilities are designed to provide teaching space on a shortterm (less than 10 years) basis while facilities of a more permanent nature are being planned and constructed;

(i) Provide its assessment of the environmental impact of the project as called for by section 102(2)(c) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(c));

(j) Furnish its evaluation of the project site in accordance with the terms and provisions of E.O. 11296, 31 FR 10663 (August 10, 1966) relating to the evaluation of flood hazards in locating federally owned or financed facilities.

§ 57.104 Priority.

(a) Priority in approving applications for construction grants shall be determined in accordance with the factors specified in section 721(d) of the Act, and the following:

(1) The relative need for increased enrollment and the availability of students;

(2) The relative effectiveness of the project in accomplishing the purposes of the Act at the least relative cost to the Federal Government;

(3) The relative ability of the applicant to make efficient and productive use of the facility constructed; and

(4) Such other pertinent factors as the Secretary may specify;

(b) The Secretary shall give special consideration to grant applications to assist in the construction of new schools of medicine, osteopathy, and dentistry, where such applications contain or are reasonably supported by assurances that, because of use by such school of existing facilities (including Federal medical or dental facilities), the school will be able to accelerate the date on which it will begin its teaching program.

§ 57.105 Percentage of

participation;

amount of construction grant.

(a) Percentage of maximum participation. (1) The amount of any construction grant made under Part B of title VII of the Act and pursuant to this subpart may not exceed 70 percent of the necessary cost of construc

tion of a project as determined by the Secretary, except:

(i) In the case of a project with respect to a school of public health, the amount of such grant may not exceed 75 percent of the necessary cost of construction; and

(ii) In the case of (a) a project with respect to a new school; (b) a project constituting new facilities which will result in a major expansion of training capacity at an existing school in accordance with paragraph (a)(2) of this section; (c) all or so much of a project constituting a major remodeling or renovation of an existing facility which is required by a school to meet an increase in student enrollment; or (d) any other project where the Secretary determines that unusual circumstances require a larger percent of participation in order to carry out the intent of Part B of title VII of the Act the amount of such grant may not exceed 80 percent of the necessary cost of construction.

(2) For purposes of paragraph (a)(1) of this section:

(i) A major expansion of training capacity at an existing school shall be construed to mean that the full-time first-year enrollment at such school, upon completion of construction, will exceed the highest full-time first-year enrollment at such school for any of the 5 full school years preceding the year in which the application for a construction grant is made by not less than 40 students or 40 percent, whichever is greater: Provided, however, That where the Secretary determines with respect to a particular school that such increased enrollment cannot be achieved until the second or third full school year after completion of construction, he may determine that the requirements for a major expansion of training capacity are met for each of the first or second full school years after completion of construction, if during such first or second full school year the increase in first-year enrollment will equal such amount in excess of 5 percent or five students, whichever is greater, as the Secretary may specify;

(ii) A major remodeling or renovation of a facility shall include only that portion of remodeling or renova

tion which is necessary to meet an increase in student enrollment, which increase shall be construed to mean that, during the first full school year after completion of construction and for each of the 9 school years thereafter the first-year enrollment will exceed the highest first-year enrollment at such school for any of the 5 full school years preceding the year in which the application is made by not less than the mandatory increase as provided for under section 770(f)(1)(A) of the Act;

(iii) Unusual circumstances may be determined by the Secretary to exist:

(a) Where a school is located in a geographical area of the United States with a critical shortage of health profession manpower (as determined by the Secretary with the advice of Council);

(b) Where the project is found to be necessary to prevent the curtailment of enrollment at a school;

(c) Where the project is essential to the securing or maintenance of a school's accreditation; or

(d) Where there are other relevant factors consistent with this subpart and the purposes of Part B of title VII of the Act.

(b) Amount of construction grantless than maximum. In determining the amount of a construction grant within the percentage limitations as set forth in paragraph (a) of this section, the Secretary shall take into consideration the most effective use of available Federal funds to further the purposes of Part B of title VII of the Act, and the needs of the applicant.

(78 Stat. 252, 42 U.S.C. 2000d et seq.), which provides that no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination, under any program or activity receiving Federal financial assistance. A regulation implementing such Title VI, which is applicable to grants made under this part, has been issued by the Secretary with the approval of the President (45 CFR Part 80).

(c) Discrimination on the basis of sex prohibited. Attention is called to the requirements of section 704 of the Act, and to 45 CFR Part 83 which together provide that the Secretary may not make a grant, loan guarantee, or interest subsidy payment under title VII of the Act to, or for the benefit of, any school of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, podiatry, or public health, or any training center for allied health personnel or to any other entity unless the application for the grant, loan guarantee, or interest subsidy payment contains assurances satisfactory to the Secretary that the school, training center or other entity will not discriminate on the basis of sex in the admission of individuals to its training programs.

[37 FR 20543, Sept. 30, 1972, as amended at 49 FR 38112, Sept. 27, 1984]

§ 57.107 Terms and conditions.

In addition to any other requirements imposed by law or determined by the Secretary to be reasonably necessary with respect to particular projects to fulfill the purpose of the grant, each construction grant shall be subject to the condition that the applicant shall furnish and comply with the following assurances:

(a) Title. That applicant has a fee simple or such other estate or interest in the site, including necessary easements and rights-of-way, sufficient to assure for a period of not less than 20 years (or in the case of interim facilities for the period constituting the estimated useful life of such facilities) undisturbed use and possession for the purpose of the construction and operation of the facility;

(b) Competitive bids. (1) That the approval of the Secretary shall be obtained before the project is advertised or placed on the market for bidding and that such approval shall include a determination by the Secretary that the final plans and specifications conform to the minimum standards of construction and equipment as set forth in Appendix A of these regulations.

(2) That, except as otherwise provided by State or local law, all contracting for construction (including the purchase and installation of built-in equipment) shall, except as provided in paragraph (b)(3) of this section, be on a lump sum fixed-price basis, and contracts will be awarded on the basis of competitive bidding obtained by public advertising with award of the contract to the lowest responsive and responsible bidder. The provision for exceptions based on State or local law shall not be invoked to give local contractors or suppliers a percentage preference over non-local contractors bidding for the same contract. Such practices are precluded by this paragraph. (3) A substitute bidding procedure of selective solicitation with response from three or more bidders may be used if:

(i) The applicant requests and justifies the use of the procedure;

(ii) The procedure is consistent with State and local laws; and

(iii) The Secretary determines that it is necessary to limit bidding to contractors of proven competence due to the complexity or specialty of the project or that the time element is of primary consideration. When this bidding procedure is used, the applicant shall establish reasonable bid prequalification standards for contractors. The applicant shall then accept and consider bids from any contractor who requests permission to bid and who is determined by the applicant to meet these prequalification standards. Adequate time (normally 30 days) shall be allowed for contractors to prepare bids, and award of construction contracts shall be made to the lowest qualified and responsible bidder whose bid is considered fully responsive to the bid invitation;