1971), respectively, and separate appropriation of halfmillion, million, and million-and-half dollars for students of veterinary medicine for fiscal years ending June 30, 1967, 1968, and 1969.

Pub. L. 92-52 substituted "the next two fiscal years" for "the next fiscal year", "1973" for "1972" and "1972" for "1971".

Subsec. (b) (3). Pub. L. 92-157, § 105(f) (2), substituted "this subpart" for "this part" in two instances.

§ 294c. Distribution of assets from loan funds.

(a) After June 30, 1977, and not later than September 30, 1977, there shall be a capital distribution of the balance of the loan fund established under an agreement pursuant to section 294(b) of this title by each school as follows:

(1) The Secretary shall first be paid an amount which bears the same ratio to such balance in such fund at the close of June 30, 1977, as the total amount of the Federal capital contributions to such fund by the Secretary pursuant to section 294(b) (2) (A) of this title bears to the total amount in such fund derived from such Federal capital contributions and from funds deposited therein pursuant to section 294 (b) (2) (B) of this title.

(2) The remainder of such balance shall be paid to the school.

(b) After September 30, 1977, each school with which the Secretary has made an agreement under this subpart shall pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school after June 30, 1977, in payment of principal or interest on loans made from the loan fund established pursuant to such agreement (other than so much of such fund as relates to payments from the revolving fund established by section 294d (d) of this title) as was determined for the Secretary under subsection (a) of this section. (As amended July 9, 1971, Pub. L. 92-52, § 1(b), 85 Stat. 144; Nov. 18, 1971, Pub. L. 92-157, title I, § 105(e)(2), (f) (2), 85 Stat. 451.)

AMENDMENTS

1971-Pub. L. 92-157 substituted "1977" for "1975" wherever appearing and "this subpart" for "this part" in subsec. (b), respectively.

Pub. L. 92-52 substituted "1975" for "1974" in five places.

§ 294d. Loans to schools to capitalize health professions student loan funds.

(a) Fiscal years available; terms, conditions, and limitations; institutional contributions; interest. (1) During the fiscal years ending June 30, 1967, and June 30, 1968, and each of the next six fiscal years, the Secretary may make loans, from the revolving fund established by subsection (d) of this section, to any public or other nonprofit school referred to in section 294(a) of this title which is located in a State and is accredited as provided in section 293a (b)(1) (B) of this title, to provide all or part of the capital needed by any such school for making loans to students under this section (other than capital needed to finance the institutional contributions required by section 294 (b) (2) (B) of this title). Loans to students from such borrowed sums shall be subject to the terms, conditions, and limitations set forth in section 294a of this title. The requirement in section 294 (b)

(2) (B) of this title with respect to institutional contributions to student loan funds shall not apply to loans made to schools under this section.

(c) Limitation on loans from revolving fund.

The total of the loans made in any fiscal year under this section may not exceed the lesser of (1) such limitations as may be specified in appropriation Acts, and (2) the difference between $45,000,000 and the amount of Federal funds (other than loans under this section) deposited in student loan funds under this subpart for that year.

(As amended July 9, 1971, Pub. L. 92-52, § 1(c), 85 Stat. 144; Nov. 18, 1971, Pub. L. 92-157, title I, § 105 (e) (3), (f) (2), 85 Stat. 451.)

AMENDMENTS

1971-Subsec. (a) (1). Pub. L. 92-157, § 105 (e) (3), substituted "next six fiscal years" for "next four fiscal years". Pub. L. 92-52 substituted "next four fiscal years" for "next three fiscal years".

Subsec. (c). Pub. L. 92-157, § 105 (f) (2), substituted "this subpart" for "this part".

§ 294e. Administrative provisions.

The Secretary may agree to modifications of agreements, or loans made under this subpart and may compromise, waive, or release any right, title, claim, or demand of the United States arising or acquired under this subpart. (As amended Nov. 18, 1971, Pub. L. 92-157, title I, § 105 (f) (2), 85 Stat. 451.) AMENDMENTS

1971-Pub. L. 92-157 substituted "this subpart" for "this part" in two instances.

§ 294f. Transfer of funds to scholarships.

Not to exceed 20 per centum of the amount paid to a school from the appropriations for any fiscal year for Federal capital contributions under an agreement under this subpart, or such larger percentage thereof as the Secretary may approve, may be transferred to the sums available to the school under subpart I of part F of this subchapter to be used for the same purpose as such sums. In the case of any such transfer, the amount of any funds which the school deposited in its student loan fund pursuant to section 294 (b) (2) (B) of this title with respect to the amount so transferred may be withdrawn by the school from such fund. (As amended Nov. 18, 1971, Pub. L. 92-157, title I, §§ 105 (f) (2), 106(b) (5), 85 Stat. 451, 453.)

AMENDMENTS

1971-Pub. 92-157 substituted "this subpart" and "subpart I of part F" for "this part" and "part F", respectively. Subpart II.-Student Loans by Secretary to Citizens of United States Who Are Full-Time Students in Schools of Medicine Located Outside United States [New]

AMENDMENTS

1971-Pub. L. 97-157, title I, § 105 (f) (4), Nov. 18, 1971, 85 Stat. 451, added the heading of subpart II.

§ 294g. Student loans.

(a) Authority of Secretary.

From the amounts appropriated to carry out this subpart, the Secretary is authorized to make, in accordance with this subpart, loans to citizens of the

United States who are full-time students in schools of medicine which are located outside the United States.

(b) Terms and conditions.

Except as otherwise provided in this subpart, loans made under this subpart shall (to the extent feasible) be made on the same terms and conditions as are required with respect to loans made to students of medicine under the program established by subpart I of this part.

(c) Special conditions.

(1) No loan under this subpart shall be made to any student unless

(A) prior to the date such student files application for such loan

(i) he has made application for admission as a student in a school of medicine which is located in the United States; and

(ii) he has, in connection with the making of such application for admission to such school, undergone a written examination to determine his qualifications for admission as a student in such school;

(B) such student furnishes to the Secretary a certification from such school that

(i) such student is qualified for admission as a student in such school, and

(ii) such student was denied admission as a student in such school solely because, for the school year for which such student applied for admission to such school, the number of qualified applicants for admission to such school exceeded the maximum number of students (as determined by such school) which such school was prepared to accept for admission for such year; and

(C) such student has not been accepted, before the date of approval of his application for a loan under this subpart, by a medical school located in the United States.

(2) No loan under this subpart shall be made to any student who has completed three years as a student in a school of medicine, unless

(A) such student has passed an examination which

(i) is prepared by a body or bodies which the Secretary recognizes as being qualified to prepare such an examination, and

(ii) is used to determine the qualifications of students in schools of medicine which are located outside the United States for admission (as transfer students) in schools of medicine which are located in the United States; and

(B) such student has made application for admission (as a transfer student) to, but has not been accepted by, a school of medicine which is located in the United States.

(d) Authorization of appropriations.

To carry out this subpart there are authorized to be appropriated $1,750,000 for the fiscal year ending June 30, 1972, and for each of the next two fiscal years. (July 1, 1944, ch. 373, title VII, § 747, as added Nov. 18, 1971, Pub. L. 92-157, title I, § 105 (f) (4), 85 Stat. 451.)

PART D.-GRANTS FOR FAMILY MEDICINE, TRAINING, TRAINEESHIPS, AND FELLOWSHIPS AND COMPUTER TECHNOLOGY HEALTH CARE DEMONSTRATION PRO

GRAMS

AMENDMENTS

1971-Pub. L. 92-157, title I, § 107(a), Nov. 18, 1971, 85 Stat. 457, substituted as the heading of Part D "Grants for Family Medicine, Training, Traineeships, and Fellowships and Computer Technology Health Care Demonstration Programs" for "Grants for Construction of Mental Retardation Research Facilities".

PART REFERRED TO IN OTHER SECTIONS
This part is referred to in section 293e of this title.
S$ 295 to 295e.

SECTIONS REFERRED TO IN OTHER SECTIONS These sections are referred to in sections 300a-7, 2672, 2673 of this title.

§ 295e-1. Grants for training, traineeships, and fellowships in family medicine; authorization of appropriations.

There are authorized to be appropriated $25,000,000 for the fiscal year ending June 30, 1972, $35,000,000 for the fiscal year ending June 30, 1973, and $40,000,000 for the fiscal year ending June 30, 1974, for grants by the Secretary to any public or nonprofit private hospital

(1) to plan, develop, and operate, or participate in, an approved professional training program (including continuing education and approved residency programs in family practice) in the field of family medicine for medical students, interns, residents, or practicing physicians;

(2) to provide financial assistance (in the form of traineeships and fellowships) to medical students, interns, residents, practicing physicians, or other medical personnel, who are in need thereof, who are participants in any such program, and who plan to specialize or work in the practice of family medicine; and

(3) to plan, develop, and operate, or participate in, other approved training programs in the field of family medicine.

(July 1, 1944, ch. 373, title VII, § 767, as added Nov. 18, 1971, Pub. L. 92-157, title I, § 107(b), 85 Stat. 457.)

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 295e-5, 300a-7, 2672, 2673 of this title.

§ 295e-2. Grants for support of postgraduate training programs for physicians and dentists.

(a) Authorization of appropriations.

There are authorized to be appropriated $7,500,000 for the fiscal year ending June 30, 1973, and $15,000,000 for the fiscal year ending June 30, 1974, for grants under subsection (b) of this section.

(b) Shortage of qualified physicians or dentists in primary care and other health care areas; amount of grant for fiscal year; computation of grant where total of grants exceeds appropriation. (1) The Secretary shall make annual grants in accordance with this section to

(A) public or nonprofit private schools of medicine, osteopathy, or dentistry, which are accredited as provided in section 293a (b) (1) of this title, and which have approved applications, and

(B) public or nonprofit private hospitals which are not affiliated with an accredited school of medicine, osteopathy, or dentistry, and which have approved applications,

to assist in meeting the educational costs of the first three years of full-time approved graduate training programs in the area of primary care or in any other area of health care (designated under subsection (c) (3) (B) of this section) in which there is a shortage of qualified physicians or dentists.

(2) The amount of grant under this subsection for any fiscal year to any school or hospital shall be equal to $3,000 for each physician or dentist enrolled in a graduate training program (A) described in paragraph (1) of this subsection, and (B) in the case of a grant to a school, conducted in clinical facilities of such schools or with which such school has a written agreement of affiliation, or, in the case of a grant to a hospital, conducted in such hospital; except that if the total of the grants to be made under this subsection for any fiscal year to schools and hospitals with approved applications exceeds the amounts appropriated under subsection (a) of this section for such grants, the amount of the grant for that fiscal year to each such school or hospital shall be an amount which bears the same ratio to the amount determined for the school or hospital for that fiscal year under the preceding sentence as the total of the amounts appropriated under subsection (a) of this section for that year bears to the amount required to make grants to each school in accordance with such sentence.

(3) For purposes of paragraph (2), the Secretary shall

(A) in the case of a grant in the fiscal year ending June 30, 1973, count only tne number of first-year physicians and dentists enrolled in graduate training programs described in paragraph (1), and

(B) in the case of a grant in the fiscal year ending June 30, 1974, count only the number of firstand second-year physicians and dentists enrolled in graduate training programs described in paragraph (1).

(c) Applications for grants; filing date: eligibility: contents; consultation with Council; definition of "primary health care"; designation of other health care areas; guidelines for applicants.

(1) The Secretary may from time to time set dates (not earlier than the fiscal year preceding the year for which a grant is sought) by which applicants for grants under subsection (b) of this section for any fiscal year must be filed.

(2) A grant under subsection (b) of this section may be made only if the application therefor

(A) is approved by the Secretary upon his determination that the applicant meets the eligibility conditions set forth in paragraph (1) of such subsection.

(B) contains a specific program or programs which such applicant has undertaken to encourage physicians and dentists to enroll in graduate training programs described in paragraph (1) of this subsection;

(C) contains or is supported by assurances that such applicant will increase the number of grad

uate training positions open to physicians and dentists in such graduate training programs;

(D) provides for such fiscal control and accounting procedures, and access to the records of the applicant, as the Secretary may require to assure proper disbursement of and accounting for any such grant;

(E) contains a statement in such detail as the Secretary may determine necessary, describing the manner in which any grant made under subsection (b) of this section will be applied to meet the educational costs of the graduate training program for which the grant is made, including any payments from a grant proposed to be made by an applicant which is a school to any clinical facility which participates in such training program under a written agreement of affiliation with the applicant and which shares in the payment of the educational costs of such program; and

(F) contains such additional information as the Secretary may require to make the determinations required of him under this section, and such assurances as he may find necessary.

(3) The Secretary

(A) shall not approve or disapprove any application for a grant under subsection (b) of this section except after consultation with the National Advisory Council on Health Professions Education;

(B) shall define in consultation with such Council, those health care fields included within the term "primary health care" and shall designate any other areas of health care in which there is a shortage of qualified physicians and dentists; and

(C) shall, on an annual basis, establish guidelines specifying such absolute or percentage increases in the numbers of physicians or dentists receiving full-time graduate training which any applicant receiving a grant under subsection (b) of this section as may be required to meet as a condition of such a grant.

(July 1, 1944, ch. 373, title VII, § 768, as added Nov. 18, 1971, Pub. L. 92-157, title I, § 107(b), 85 Stat. 458.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 295g-21, 300a-7, 2672, 2673 of this title.

§ 295e-3. Grants for training, traineeships, and fellowships for health professions teaching personnel.

(a) Authorization of appropriations.

There are authorized to be appropriated $10,000,000 for the fiscal year ending June 30, 1972, $15,000,000 for the fiscal year ending June 30, 1973, and $20,000,000 for the fiscal year ending June 30, 1974, for grants under this section.

(b) Authority of Secretary.

The Secretary may make grants under this section to public and nonprofit private schools of medicene, dentistry, osteopathy, podiatry, optometry, pharmacy, and veterinary medicine (as such schools are defined in section 293d of this title) for training (at such schools or elsewhere), and traneeships and fellowships for the advanced training, of individuals to enable them to teach, or improve their teaching

skills, in the medical, dental, osteopathic, podiatric, optometric, pharmaceutical, or veterinary medicine fields.

(c) Percentage limitation for traineeships and fellowships.

Not less than 75 per centum of any grant under this section to any school shall be used by the school for traineeships and fellowships. (July 1, 1944, ch. 373, title VII, § 769, as added Nov. 18, 1971, Pub. L. 92-157, title I, § 107(b), 85 Stat. 459.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 295e-5, 300a-7, 2672, 2673 of this title.

§ 295e-4. Grants for computer technology health care demonstration programs; authorization of appropriations.

There are authorized to be appropriated $5,000,000 for the fiscal year ending June 30, 1972, $10,000,000 for the fiscal year ending June 30, 1973, and $15,000,000 for the fiscal year ending June 30, 1974, for grants by the Secretary to public or nonprofit private schools, agencies, organizations, or institutions, and combinations thereof, to

(1) plan and develop free-standing or university-based computer laboratories which would establish computer-based systems, including compatible languages, standard terminologies, communication networks, and decisionmaking strategies, to enable the utilization of modern computer technologies by physicians and other health personnel in the provision of health services and in the processing of biomedical information relating to the provision of such services; and

(2) research through computer technology the functions performed by physicians to determine which functions could be appropriately transferred and performed by other appropriately trained personnel.

(July 1, 1944, ch. 373, title VII, § 769A as added Nov. 18, 1971, Pub. L. 92-157, title I, § 107(b), 85 Stat. 459.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 295e-5, 300a-7, 2672, 2673 of this title.

§ 295e-5. General provisions.

(a) Applications for grants: submission, approval by Secretary, regulations.

No grant may be made under sections 295e-1, 295e3, and 295e-4 of this title unless an application therefor has been submitted to, and approved by, the Secretary. Such application shall be in such form, submitted in such manner, and contain such information, as the Secretary shall by regulation prescribe.

(b) Payments limitation for traineeships and fellowships.

Payments by recipients of grants under sections 295e-1 and 295e-4 of this title for (1) traineeships shall be limited to such amounts as the Secretary finds necessary to cover the cost of tuition and fees of, and stipends and allowances (including travel and subsistence expenses and dependency allowances) for, the trainees; and (2) fellowships shall be limited to such amounts as the Secretary finds necessary to cover the cost of advanced study by, and

stipends and allowances (including travel and subsistence expenses and dependency allowances) for, the fellows.

(c) Amount of grant: determination by Secretary; payments: advances or reimbursement, intervals, conditions.

The amount of any grant under sections 295e-1, 295e-3, or 295e-4 of this title shall be determined by the Secretary. Payments under such grants may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Secretary finds necessary. (July 1, 1944, ch. 373. title VII, § 769B, as added Nov. 18, 1971, Pub. L. 92-157, title I, § 107(b), 85 Stat. 460.)

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 300a-7, 2672, 2673 of this title.

PART E.-GRANTS AND CONTRACTS TO IMPROVE QUALITY OF SCHOOLS OF MEDICINE, OSTEOPATHY, DENTISTRY, VETERINARY MEDICINE, OPTOMETRY, PHARMACY, AND PODIATRY: HEALTH MANPOWER EDUCATION INITIATIVE AWARDS

AMENDMENTS

1971-Pub. L. 92-157, title I, § 104, Nov. 18, 1971, 85 Stat. 437, substituted as the heading of Part E "Grants and Contracts to Improve Quality of Schools of Medicine, Osteopathy, Dentistry, Veterinary Medicine, Optometry, Pharmacy, and Podiatry: Health Manpower Education Initiative Awards" for "Institutional and Special Project Grants for Training of Health Professions Personnel". PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 293d, 293e of this title.

§ 295f. Capitation grants. (a) Grant computation.

The Secretary shall make annual grants to schools of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, and podiatry for the support of the education programs of such schools. The amount of the annual grant to each such school with an approved application shall be computed for each fiscal year as follows.

(1) Each school of medicine (other than a twoyear school of medicine), osteopathy, and dentistry shall receive

(A) in the case of full-time students enrolled in such school in such year in a training program which is more than three years, $2,500 for each such first-, second-, and third-year student and $4,000 for each such student who will graduate from such school in such year;

(B) in the case of full-time students enrolled in such school in such year in a training program which is not more than three years, $2,500 for each such student enrolled and $6,000 for each such student who will graduate from such school in such year;

(C) in the case of full-time students enrolled in such school in such year in a training program which is designed to permit such students to complete, within six years after completing secondary school, the requirements for the degree of doctor of medicine, $2,500 for each such student enrolled in such year in the last three years of such program and $6,000 for each such student who will graduate from such school in