"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.

"PART C-STUDENT LOANS

"LOAN AGREEMENTS

"SEC. 740. (a) The Secretary of Health, Education, and Welfare is anthorized 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; "(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;

"(4) provide that loans may be made from such fund only to students pursuing 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, and that while the agreement remains in effect no such student who has attended such school before July 1, 1966, shall receive a loan from a loan fund established under section 204 of the National Defense Education Act of 1958; and

"(5) 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. 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 the 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 ten-year 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, computed only for periods during which the loan is repayable, at the rate of 3 per centum per annum, or the going Federal rate at the time the loan is made, whichever rate is the greater. For purposes of this subsection, the term 'going Federal rate' means the rate of interest which the Secretary of the Treasury specifies during June of each year for purposes of loans made during the fiscal year beginning on the next July 1, determined by estimating the average yield to maturity, on the basis of daily closing market quotations or prices during the preceding May on all outstanding marketable obligations of the United States having a maturity date of fifteen or more years from the first day of such month of May, and by rounding off such estimated average annual yield to the next higher multiple of one-eighth of 1 per centum.

"(f) 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.

"(g) 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.

"(h) 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, and such sums for the fiscal year ending June 30, 1967, 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, 1966, 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, 1969, and not later than September 30, 1969, 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, 1969, 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, 1969, 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, 1969, 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 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)."

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

"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."

C. MENTAL RETARDATION FACILITIES AND COMMUNITY MENTAL HEALTH CENTERS CONSTRUCTION ACT OF 1963

(Public Law 88-164, approved Oct. 31, 1963)

On January 24, 1963, Representative John H. Dent, of Pennsylvania, introduced H.R. 2567, the Mental Health Act, which was referred to the Committee on Interstate and Foreign Commerce. It proposed Federal assistance to the States to encourage changes in attitude toward and treatment of the mentally ill and to provide trained personnel and facilities for such treatment.

President Kennedy's message to Congress on February 5, 1963, relative to mental illness and mental retardation was largely concerned with the educational and training elements of (1) a national program

for mental health, and (2) a national program to combat mental ardation. Following is a summary of his statements and recommendations regarding the educational and training aspects of these rational programs.

President Kennedy said that prevention of mental illness and mental retardation will require selected, specific programs and strengthening of our community, social welfare, and educational programs. To strengthen the underlying resources of knowledge and skilled manpower, he said, we must increase our existing training programs and nch new ones. He also said that we must strengthen and improve the programs and facilities serving the mentally ill and mentally retarded, with emphasis upon timely and intensive diagnosis, treatment, training, and rehabilitation.

The proposed program for mental health included Federal grants-infor community mental health centers, whose services would include the offering of mental health information and education. He also recommended (1) special Federal grants for inpatient care and service training in mental institutions; and (2) appropriation of Federal funds for the training of manpower in key professional and xiary personnel categories.

As part of a national program to combat mental retardation, President Kennedy recommended several new programs for comprehensive zaternity and infant care and for the improvement of educational services. He said that cultural and educational deprivation resulting mental retardation can be prevented.

The President also recommended that the Congress authorize matchgrants for the construction of public and other nonprofit facilities, uding centers for the comprehensive treatment, training, and care of the mentally retarded. He said that because care of the mentally Petarded had traditionally been isolated from centers of medical and rsing education, it is particularly important to develop facilities that will increase the role of highly qualified universities in the imvement and provision of services and the training of specialized hersonnel.

President Kennedy declared that a full-scale attack on mental retar lation also requires an expansion of special education, training, and abilitation services.

To provide an additional focus for research into the complex myses of mental retardation, he recommended legislation to authorize. the establishment of centers for research in human development, inading the training of scientific personnel.

1. Senate Action

On February 11, 1963, Senator Lister Hill, of Alabama, chairman of the Senate Committee on Labor and Public Welfare, introduced S, the Community Health Centers Act, and S. 756, the Mental riation Facilities Construction Act. These bills were referred e Committee on Labor and Public Welfare. On March 11, 1963, resentative Oren Harris, of Arkansas, introduced II.R. 3688 and HR. 3659, respectively identical to S. 755 and S. 756. The two House s were referred to the Committee on Interstate and Foreign Com

erce.

On March 5, 6, and 7, 1963, the Subcommittee on Health of the Committee on Labor and Public Welfare held hearings on S. 755 and S. 756, which were termed "bills to provide assistance in the construction and initial operation of community mental health centers and to assist States in combating mental retardation." The record of the hearings was printed in a volume of 239 pages.

On May 21, Senator Hill introduced a new bill, S. 1576, the Mental Retardation Facilities and Community Mental Health Centers Construction Act. This bill was reported in the Senate on the day it was introduced (Rept. 180). By a vote of 72 to 1 the Senate passed this bill on May 27.10

An item of particular educational significance in the bill as passed by the Senate was authorization of $51.5 million to train teachers for mentally retarded and handicapped children and to include in two existing programs (under Public Laws 85-926 and 87-276) teachers for visually handicapped, speech impaired, crippled, and emotionally disturbed children.

2. Пouse Action

Hearings on H.R. 2567, H.R. 3688, and H.R. 3689 were held by a subcommittee of the Committee on Interstate and Foreign Commerce on March 26, 27, and 28, 1963. The record of the hearings was printed in a volume of 471 pages.

S. 1576, having passed the Senate, was referred to the House Committee on Interstate and Foreign Commerce on May 28, 1963. Hearings on the bill were held before the Subcommittee on Public Health and Safety on July 10 and 11. The record of the hearings was printed in a volume of 248 pages. This bill was reported in the House, with amendments, on August 21 (Rept. 694). It passed the House, amended, on September 10, by a vote of 335 to 18.11

Concerning the House action the New York Times commented that: The House of Representatives approved today a $238 million program to combat mental retardation.

The legislation was sent back to the Senate, which on May 27 approved an $850 million program that was closer to administration recommendations.

The House reduction reflects principally the elimination of $427 million in grants to help finance the staffing of community mental health centers. The remainder resulted largely from a shortening of the program from 5 to 3 years. There was no opposition to the program itself in debate. The Committee on Interstate and Foreign Commerce had voted against the grants for staffing the health centers.

It held that Federal aid should not infringe on the traditional responsibility of the States, localities. and the medical profession for the care and treatment of the mentally ill. The House vote supported this position."

3. Conference and Approval

On September 11, the House asked for a conference, to which the Senate agreed on September 19. On October 21, both the Senate and the House (the latter by a rollcall vote of 296 to 14) agreed to the conference report (Rept. 862).

10 Congressional Record (daily edition), May 27, 1963. p. 8984.

11 Ibid.. Sept. 10, 1963, p. 15830.

Trussell, C. P., "Ald for Retarded Is Voted by Hon