ing as full-time students, in the case of awards from such grants for the fiscal year ending June 30, 1969; and

(E) only to individuals enrolled and in good standing as full-time students who initially received scholarship awards out of such grants for a fiscal year ending prior to July 1, 1969, in the case of awards from such grants for the fiscal year ending June 30, 1970, or the two succeeding fiscal years. (2) Scholarships from grants under subsection (a) for any school year shall be awarded only to students from low-income families who, without such financial assistance could not pursue a course of study at the school for such year. Any such scholarship awarded for a school year shall cover such portion of the student's tuition, fees, books, equipment, and living expenses at the school making the award, but not to exceed $2,500 for any year, as such school may determine the student needs for such year on the basis of his requirements and financial

resources.

(d) Grants under subsection (a) shall be made in accordance with regulations prescribed by the Surgeon General after consultation with the National Advisory Council on Medical, Dental, Optometric, and Podiatric Education.

(e) Grants under subsection (a) may be paid in advance or by way of reimbursement, and at such intervals as the Surgeon General may find necessary; and with appropriate adjustments on account of overpayments or underpayments previously made.

TITLE VIII-NURSE TRAINING 163

PART A-GRANTS FOR EXPANSION AND IMPROVEMENT OF NURSE TRAINING

AUTHORIZATION OF APPROPRIATIONS FOR CONSTRUCTION

GRANTS

SEC. 801. (a) There are authorized to be appropriated(1) for grants to assist in the construction of new facilities for collegiate schools of nursing, or replacement or rehabilitation of existing facilities for such schools, $5,000,000 for the fiscal year ending June 30, 1966, and $10,000,000 for each of the next three fiscal years;

(2) for grants to assist in the construction of new facilities for associate degree or diploma schools of nursing, or replacement or rehabilitation of existing facilities for such schools, $10,000,000 for the fiscal

163 Title VIII added by sec. 2 of P.L. 88-581.

year ending June 30, 1966, and $15,000,000 for each of the next three fiscal years. There are also authorized to be appropriated for each of such fiscal years ending after June 30, 1966, for grants specified in clause (1) or (2) of the preceding sentence, the amount by which the total of the sums authorized to be appropriated under such clause for previous years exceeds the aggregate of the appropriations thereunder for such years.

(b) Sums appropriated pursuant to clause (1) or (2) of subsection (a) for a fiscal year shall remain available for grants specified in such clause until the close of the next fiscal year.

APPROVAL OF APPLICATIONS FOR CONSTRUCTION GRANTS

SEC. 802. (a) No application for a grant for a construction project under this part may be approved unless it is submitted to the Surgeon General prior to July 1, 1968.

(b) A grant for a construction project under this part be made only if the application therefor is approved by the Surgeon General upon his determination that

may

(1) the applicant is a public or nonprofit private school of nursing providing an accredited program of nursing education;

(2) the application contains or is supported by reasonable assurances that (A) for not less than twenty years after completion of construction, the facility will be used for the purposes of the training for which it is to be constructed, and will not be used for sectarian instruction or as a place for religious worship, (B) sufficient funds will be available to meet the non-Federal share of the cost of constructing the facility, (C) sufficient funds will be available, when construction is completed, for effective use of the facility for the training for which it is being constructed, and (D) in the case of an application for a grant for construction to expand the training capacity of a school of nursing, the firstyear enrollment at such school during the first full school year after the completion of the construction and for each of the nine years thereafter will exceed the highest first-year enrollment at such school for any of the five full school years preceding the year in which the application is made by at least 5 per centum of such highest first-year enrollment, or by five students, whichever is greater;

(3) (A) in the case of an application for a grant for construction of a new facility, such application is for aid in the construction of a new school of nursing, or construction which will expand the training

capacity of an existing school of nursing, or (B) in the case of an application for a grant for replacement or rehabilitation of existing facilities, such application is for aid in construction which will replace or rehabilitate facilities of an existing school of nursing which are so obsolete as to require the school to curtail substantially either its enrollment or the quality of the training provided;

(4) the plans and specifications are in accordance with regulations relating to minimum standards of construction and equipment; and

(5) 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).

Before approving or disapproving an application for a construction project under this part, the Surgeon General shall secure the advice of the National Advisory Council on Nurse Training established by section 841 (hereinafter in this part referred to as the "Council"). (c) In considering applications for grants, the Council and the Surgeon General shall take into account

(1) (A) in the case of a project for a new school or for expansion of the facilities of an existing school, the relative effectiveness of the proposed facilities in expanding the capacity for the training of first-year students of nursing in the field involved and in promoting an equitable geographical distribution of opportunities for such training (giving due consideration to population, relative unavailability of nurses of the kind to be trained by such school, and available resources in various areas of the Nation for training such nurses); or

(B) in the case of a project for replacement or rehabilitation of existing facilities of a school, the relative need for such replacement or rehabilitation to prevent curtailment of the school's enrollment or deterioration of the quality of the training provided by the school, and the relative size of any such curtailment and its effect on the geographical distribution of opportunities for training in the field of

nursing involved (giving consideration to the factors mentioned above in paragraph (A)); and

(2) in the case of an applicant in a State which has in existence a State or local area agency involved with planning for nurse training facilities, or which participates in a regional or other interstate agency involved with planning for nurse training facilities, the relationship of the application to the construction or training program which is being developed by such agency or agencies and, if such agency or agencies have reviewed such application, any comment thereon submitted by them.

AMOUNT OF CONSTRUCTION GRANT; PAYMENTS

SEC. 803. (a) The amount of any grant for a construction project under this part shall be such amount as the Surgeon General determines to be appropriate after obtaining the advice of the Council; except that (A) in the case of a grant for a project for a new school, and in the case of a grant for a project for new facilities for an existing school in cases where such facilities are of particular importance in providing a major expansion of training capacity, as determined in accordance with regulations, such amount may not exceed 66% per centum of the necessary cost of construction, as determined by the Surgeon General, of such project; and (B) in the case of any other grant, such amount may not exceed 50 per centum of the necessary cost of construction, as so determined, of the project with respect to which the grant is made.

(b) Upon approval of any application for a grant for a construction project under this part, the Surgeon General shall reserve, from any appropriation available therefor, the amount of such grant as determined under subsection (a); the amount so reserved may be paid in advance or by way of reimbursement, and in such instalments consistent with construction progress, as the Surgeon General may determine. The Surgeon General's reservation of any amount under this section may be amended by him, either upon approval of an amendment of the application or upon revision of the estimated cost of construction of the facility.

(c) In determining the amount of any such grant under this part, there shall be excluded from the cost of construction an amount equal to the sum of (1) the amount of any other Federal grant which the applicant has obtained, or is assured of obtaining, with respect to the construction which is to be financed in part by grants authorized under this part, and (2) the amount of any non-Federal funds required to be expended as a condition. of such other Federal grant.

RECAPTURE OF PAYMENTS

SEC. 804. If, within twenty years after completion of an construction for which funds have been paid under this part

(a) the applicant or other owner of the facility shall cease to be a public or nonprofit private school,

or

(b) the facility shall cease to be used for the training purposes for which it was constructed (unless the Surgeon General determines, in accordance with regulations, that there is good cause for releasing the applicant or other owner from the obligation to do so), or

(c) the facility is used for sectarian instruction or as a place for religious worship,

the United States shall be entitled to recover from the applicant or other owner of the facility the amount bearing the same ratio to the then value (as determined by agreement of the parties or by action brought in the United States district court for the district in which such facility is situated) of the facility, as the amount of the Federal participation bore to the cost of construction of such facility.

IMPROVEMENT IN NURSE TRAINING

SEC. 805. (a) There are authorized to be appropriated for grants to public and nonprofit private diploma, collgiate and associate degree schools of nursing to assist them in meeting the additional costs of projects of limited duration which will strengthen, improve, or expand their programs to teach and train nurses, $2,000,000 for the fiscal year ending June 30, 1965, $3,000,000 for the fiscal year ending June 30, 1966, $4,000,000 for the fiscal year ending June 30, 1967, and each of the next two fiscal years, and such sums for each of the next four fiscal years as may be necessary to complete projects for which a grant was made under this section from funds appropriated for the fiscal year ending June 3, 1969, or any preceding year.

(b) In determining whether to approve applications for grants described in subsection (a), the order in which to approve such applications, and the amount of the grants, the Surgeon General shall give consideration to the extent to which such projects will contribute to general improvement in the teaching and training of nurses of the kind involved, the extent to which they will aid in attaining a wider geographical distribution throughout the United States of high quality schools of the type involved, and the relative need in the area in which the school is situated and surrounding areas for nurses of the type trained in such school.