(c) Approval of estimated cost. That applicant will enter into no construction contract or contracts with respect to the project or any portion thereof where the costs exceed estimates in the application for such work, without prior approval of the Secretary.

(d) Relocation assistance. That in the case of a public applicant with an approved project which involves the displacement of persons or businesses, on and after January 2, 1971, whose real property has or will be taken, the applicant will comply with the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 91-646) and the applicable regulations issued thereunder; (45 CFR Part 15, as added by 36 FR 18838 (Sept. 22, 1971));

(e) Cost in excess of approved costs. That applicant will finance all costs in excess of the estimated costs approved in the application and submit to the Secretary for prior approval any changes that substantially alter the scope of its education program, or of the work, functions, utilities, or safety of the facility:

(f) Completion responsibility. That applicant will construct the project, or cause it to be constructed, to final completion in accordance with the grant application and the plans and specifications;

(g) Records and accounts. That applicant will maintain adequate and separate accounting and fiscal records and accounts for all funds provided from any source to pay the cost of the project, and permit audit of such records and accounts at any reasonable time. All records will be retained for 3 years after the close of the fiscal year in which the construction is completed. Such records may be destroyed at the end of such 3-year period if the applicant has been notified of the completion of the Federal audit by such time. If the applicant has not been so notified by the end of such 3year period, such records will be retained (1) for 5 years after the close of the fiscal year in which the construction is completed or (2) until the grantee is notified of the completion of the Federal audit, whichever is earlier. In all cases where audit questions have arisen before the expiration of

such 5-year period, records shall be retained until resolution of such questions;

(h) Progress reports. That applicant shall furnish progress reports and such other information as the Secretary may require;

(i) Construction supervision. That applicant shall provide and maintain competent and adequate architectural or engineering supervision and inspection at the construction site to insure that the completed work conforms with the plans and specifications;

(j) Non-Federal share. That sufficient funds will be available to meet the non-Federal share of the cost of constructing the facility;

(k) Funds for operation. That sufficient funds will be available after construction is completed for effective use of the facility for the purposes for which it is being constructed;

(1) Authorized uses. That the facility is intended to be used for the purposes for which the application has been made;

(m) Prohibition against religious use. That no portion of the facility constructed with funds under Part B of title VII of the Act will be used for sectarian instruction or as a place for religious worship for so long as such facility has substantial value;

(n) Expansion of training capacity. That in the case of any application (including an application with respect to continuing education or advanced training) to expand the training capacity of an existing school, the first-year enrollment at such school during the first full year after the completion of the construction and for each of the 9 school years thereafter will exceed the highest first-year enrollment at such school for any of the 5 full years preceding the year in which the application is made by at least 5 percent of such highest first-year enrollment, or by five students, whichever is greater. This increase shall be in addition to any increase assured pursuant to section 770(f)(1)(A) of the Act: Provided, however, That if such school is not required to meet in the fiscal year in which the application is made the enrollment increase prescribed under section 770(f)(1)(A) of the Act because of limitations of physical facilities

available to the school for training, the Secretary may, after consulation with the Council, waive all or any portion of such requirements provided for in this paragraph, if the application contains or is supported by reasonable assurances satisfactory to the Secretary that the number of first-year students enrolled at such school during the first full school year after the completion of such project and for each of the next 9 school years thereafter shall be not less than the number of first-year students that such school would be required to enroll for a grant under section 770(f) of the Act (without regard to paragraph (2) thereof) for a grant under section 770(a) of the Act;

(0) New school construction. That in the case of a project for the construction of a new school,

(1) The first-year enrollment at such school during the third full school year after completion of construction and for each of the seven school years thereafter shall be that number which is set forth in the application as the projected total first-year enrollment of the school and which is determined by the Secretary to be adequate in relation to the amount of the grant, taking into consideration the most effective use of the total amount of Federal funds available, the amount of funds requested by the applicant, the nature and the quality of training to be provided in the facility, and other relevant factors; and

(2) The first-year enrollment at such school during the first full school year after completion of construction will be at least one-third of the number determined pursuant to paragraph (o)(1) of this section;

(p) Wage rate standards. That any laborer or mechanic employed by any contractor or subcontractor in the performance of work on the construction of the facility shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined under the Davis-Bacon Act (40 U.S.C. 276 et seq.) and shall receive compensation at a rate not less than 1 1/2 times his basic rate of pay for all hours worked in any workweek in excess of 8 hours in any calendar day

or 40 hours in the workweek (40 U.S.C. 327-332);

(q) Clearinghouse review. That the applicant has, at the earliest feasible time, notified the planning and development clearinghouse of the State and the region, if there is one, or of the metropolitan area in which the project is to be located, of its intent to apply for a grant under this subpart, and of the nature of the project for which assistance has been sought, including a summary description of such project; any comments received by the applicant from the clearinghouse pursuant to such notification shall be considered by the applicant and shall be included in or attached to the application;

(r) Accessibility by handicapped. That the applicant shall require the facility to be designed to comply with the "American Standard Specifications for Making Buildings and Facilities Accessible to, and Usable by, the Physically Handicapped," Number A117.1-1961, as modified by other standards prescribed by the Secretary or the Administrator of General Services. The applicant shall be responsible for conducting inspections to insure compliance with these specifications by the contractor; and

(s) Minimum standards of construction and equipment. That the plans and specifications for the project will conform to the minimum standards of construction and equipment as set forth in Appendix A of this subpart. The Secretary may at any time approve exceptions to the foregoing terms and conditions where he finds that such exceptions are not inconsistent with Part B of title VII of the Act and purposes of the program.

§ 57.108 Construction

ments.

contract require

The following conditions and provisions must be included in all construction contracts:

(a) The provisions set forth in "DHHS Requirements for Federally Assisted Construction Contracts Regarding Labor Standards and Equal Employment Opportunities", Form DHHS 514 (April, 1969) (issued by the Office of Grants Administration

Policy, U.S. Department of Health and Human Services) pertaining to the Davis-Bacon Act, the Contract Work Hours Standards Act, and the Copeland Act (Anti-Kickback) Regulations, except in the case of contracts in the amount of $2,000 or less; and pertaining to Executive Order 11246, 30 FR 12319 (September 24, 1965), as amended, relating to nondiscrimination in construction contract employment, except in the case of contracts in the amount of $10,000 or less;

(b) The contractor shall furnish performance and payment bonds, each of which shall be in the full amount of the contract price, and shall maintain, during the life of the contract, adequate fire, workmen's compensation, public liability, and property damage insurance: Provided however, That in the case of a State or local unit of government which enters into a construction contract of less than $100,000, State or local provisions with respect to performance and payment bonds shall be deemed to meet the requirements of this paragraph; and

(c) The Secretary shall have access at all reasonable times to work wherever it is in preparation or progress, and the contractor shall provide proper facilities for such access and inspection.

§ 57.109 Good cause for other use of completed facility.

If, within 20 years after completion of construction (or, in the case of interim facilities prior to the time at which teaching in such facilities is moved to a permanent facility, whichever comes first), the facility shall cease to be used for any one or more of the purposes for which it was constructed, the Secretary, in determining whether there is good cause for releasing the applicant or other owner of the facility from the obligation so to use the facility, shall take into consideration the extent to which:

(a) The facility will be devoted by the applicant or other owner to the teaching of other health personnel, or to other purposes in the sciences related to health for which funds are available under Part B of title VII of the Act and these regulations;

(b) A hospital or outpatient facility will be used as provided for under title VI of the Act;

(c) There are reasonable assurances that for the remainder of such period other facilities not previously utilized for teaching health professions personnel, or for research and related purposes in the sciences related to health, or for medical library purposes, as the case may be, will be so utilized and are substantially the equivalent in nature and extent for such purposes.

§ 57.110 Acquisition of facilities.

In addition to the other requirements of this subpart the following provisions are also applicable to the acquisition of existing facilities:

(a) Minimum standards of construction and equipment. That a determination by the Secretary that the facility conforms (or upon completion of any necessary construction will conform) to the minimum standards of construction and equipment as set forth in Appendix A of this subpart, shall be obtained before entering into a final or unconditional contract for such acquisition. Where the Secretary finds that exceptions to or modification of any such minimum standards of construction and equipment would be consistent with the purposes of Part B of title VII of the Act and of the program, he may authorize such exceptions or modifications;

(b) Estimated cost of acquisition and remodeling: suitability of facility. Each application for a project involving the acquisition of existing facilities shall include in the detailed estimates of the cost of the project, the cost of acquiring such facilities, and any cost of remodeling, renovating or altering such facilities to serve the purposes for which they are acquired. Such application shall demonstrate to the satisfaction of the Secretary that the architectural, structural and other pertinent features of the facility, as modified by any proposed expansion, remodeling, renovation, or alteration, will be clearly suitable for the purposes of the program, and, to the extent of the costs in which Federal participation is requested, are not in

excess of what is necessary for the services proposed to be provided in such facilities;

(c) Determination of necessary cost. The necessary cost of acquisition of existing facilities will be determined on the basis of such documentation submitted by the applicant as the Secretary may prescribe (including the reports of such real estate appraisers as the Secretary may approve) and other relevant factors;

(d) Bona fide sale. Federal participation in the acquisition of existing facilities is on condition that such acquisition constitutes a bona fide sale involving an actual cost to the applicant and will result in additional or improved facilities for purposes of the program; and

(e) Facility which has previously received Federal grant. No grant for the acquisition of a facility which has previously received a Federal grant for construction, acquisition, or equipment shall serve either to reduce or restrict the liability of the applicant or any other transferor or transferee from any obligation of accountability imposed by the Federal Government by reason of such prior grant.

§ 57.112 Early termination and withholding of payments.

Whenever the Secretary finds that a grantee has failed in a material respect to comply with the applicable provisions of the Act, the regulations of this subpart or the terms of the grant, he may, on reasonable notice to the grantee, withhold further payments, and take such other action, including the termination of the grant, as he finds appropriate to carry out the purposes of the applicable provisions of the Act and regulations. Noncancellable obligations of the grant properly incurred prior to the receipt of the notice of termination will be

honored. The grantee shall be promptly notified of such termination in writing and given the reasons therefor.

APPENDIX A-MINIMUM STANDARDS OF

CONSTRUCTION AND EQUIPMENT

The minimum standards of construction and equipment set forth below have been established by the Secretary as required by section 727 of the Act. In accordance with 5 U.S.C. 552(a)(1), the publications to which reference is made in this Appendix A, unless otherwise indicated, are hereby incorporated by reference and made a part hereof. These documents are available for inspection at the Department's and Regional Offices' Information Centers listed in 45 CFR 5.31 and copies of such documents may be purchased as specified. These standards are applicable to all projects approved for construction grants under Part B of title VII of the Act; in addition, teaching hospitals and outpatient facilities are also required to comply with the requirements of "Minimum Requirements of Construction and Equipment for Hospital and Medical Facilities' (DHHS Publication No. (IBR)74-4000)" which document is incorporated by reference in § 53.101(a) of this chapter. Said document will be provided to all applicants with a need therefor, and is available to any interested person, whether or not affected by the provisions of this subpart, upon request to the Regional Office of the Department of Health and Human Services or the Public Inquiries Branch, Public Health Service, Washington, D.C.

(a) General. The structural design, construction, and fire safety provisions of all project facilities shall comply with the standards of the National Building Code, 1967 (available from American Insurance Association Engineering and Safety Department, 85 John Street, New York, NY 10038, or 120 South La Salle Street, Chicago, IL 60603, or 465 California Street, San Francisco, CA 94104) or with applicable State, local codes and ordinances, whichever is more restrictive.

(b) Mechanical. All installations of fuel burning equipment, steam, heating, air conditioning and ventilation, plumbing and other piping systems and boilers shall comply with the following standards:

(1) Handbook of Fundamentals: American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) 1972; United Engineer Center, 345 East 47th Street, New York NY 10017.

(2) National Standard Plumbing Code 1955; American Society of Mechanical Engineers (ASME); United Engineer Center, 345 East 47th Street, New York, NY 10017.

(3) Boiler and Pressure Vessel Code, 1971 edition, with current addenda, section 8, Di

vision I. American Society of Mechanical Engineers (ASME); United Engineer Center, 345 East 47th Street, New York, NY 10017. (c) Fire and safety. The fire-resistant design criteria for the facility will be governed by the criteria necessary for that portion of the facility which is subject to the most severe usage. Remodeled structures shall be upgraded, in total, unless it is feasible to isolate the improved portion of the building with fire walls and fire doors. Fireresistant design shall be in accordance with the standards of Fire Safety Code Number 101, 1970, National Fire Protection Association, International, 60 Batterymarch Street, Boston, MA 02110.

(d) Emergency electrical service. Fire alarm systems and other electrical service shall conform to the standards as specified in Life Safety Code Number 101, 1970, National Fire Protection Association, International, 60 Batterymarch Street, Boston, MA 02110.

(e) Electrical. All electrical installations and equipment shall be in accordance with State and local codes and applicable sections of National Electric Code, NFPA Bulletin No. 70 HC, 1971, National Fire Protection Association, International, 60 Batterymarch Street, Boston, MA 02110.

(f) Radiation protection. All areas in which X-ray, gamma-ray, beta-ray producing and similar equipment is located shall be protected from radiation in accordance with the standards which are in the handbook reports No. 33, 1968; 34, 1970; 35, 1970, and 36, 1970, of the National Council on Radiation Protection and Measurement, Box 4867, Washington, DC 20008.

(g) Earthquake. All facilities shall be designed and constructed in accordance with the standard specified in the Uniform Building Code, 1970, International Conference of Building Officials, 50 South Los Robles, Pasadena, CA 91101, unless more restrictive State and local codes govern.

(h) Zoning. State and local codes shall apply.

[37 FR 20543, Sept. 30, 1972, as amended at 39 FR 34666, Sept. 27, 1974]

Subpart C-Health Professions Student Loans

AUTHORITY. Sec. 215, Public Health Service Act, 58 Stat. 690, as amended, 63 Stat. 35 (42 U.S.C. 216); secs. 740-747, Public Health Service Act, 77 Stat. 170-173, 90 Stat. 22662268, 91 Stat. 390-391, 95 Stat. 920, 99 Stat. 532-536 (42 U.S.C. 294m-q).

SOURCE: 44 FR 29055, May 18, 1979, unless otherwise noted.

As used in this subpart:

"Act" means the Public Health Service Act, as amended.

"Date upon which a student ceases to be a full-time student" means the first day of the month which is nearest to the date upon which an individual ceases to be a full-time student as defined in this section.

"Default" means the failure of a borrower of a loan made under this subpart to make an installment payment when due, or comply with any other term of the promissory note for such loan, except that a loan made under this subpart shall not be considered to be in default if the loan is discharged in bankruptcy or if the school reasonably concludes from written contacts with the borrower that the borrower intends to repay the loan.

"Federal capital loan” means a loan made by the Secretary to a school under section 744(a) of the Act, as in effect prior to October 1, 1977, the proceeds of which are to be returned to the Secretary.

"Full-time student" means a student who is enrolled in a health professions school and pursuing a course of study which is a full-time academic workload, as determined by the school, leading to a degree specified in section 741(b) of the Act.

"Grace period" means the period of 1 year beginning on the date upon which a student ceases to be a fulltime student at a school of medicine, osteopathic medicine, dentistry, pharmacy, podiatry, optometry, or veterinary medicine.

"Health professions school" or "school" means a public or private nonprofit school of medicine, school of dentistry, school of osteopathic medicine, school of podiatry, school of optometry, or school of veterinary medi