(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. (e) For the purpose of making scholarship grants under this subpart there are authorized to be appropriated the following amounts: (1) For the fiscal year ending June 30, 1972, and for each of the next two fiscal years, there are authorized to be appropriated $150,000. (2) For the fiscal year ending June 30, 1975, and SUBPART III-PHYSICIAN SHORTAGE AREA SCHOLARSHIP SCHOLARSHIP GRANTS 295g-21 SEC. 784.1 (a) In order to promote the more adequate 42 U.S.C. provision of medical care for persons who (1) reside in a physician shortage area; (2) are migratory agricultural workers or members of the families of such workers; the Secretary may, in accordance with the provisions of this subpart, make scholarship grants to individuals who are medical students and who agree to engage in the practice of primary care after completion of their professional training (A) in a physician shortage area, or (B) at such place or places, such facility or facilities, and in such manner, as may be necessary to assure that, of the patients receiving medical care in such practice, a substantial portion will consist of persons referred to in clause (2). For purposes of this subpart, (1) the term "physician shortage area" means an area determined by 1 Error in designation. This section and the next two should be desig nated sections 787, 788, and 789. 88-065 O 73 17 (Vol. 1) the Secretary under section 741(f) (1) (C) to have a shortage of and a need for physicians, and (2) the term "primary care" has the meaning prescribed for it by the Secretary under section 768 (c) (3)(B). (b) (1) Scholarship grants under this subpart shall be made with respect to academic years. (2) The amount of any scholarship grant under this subpart to any individual for any full academic year shall not exceed $5,000. (3) The Secretary shall, in awarding scholarship grants under this subpart, accord priority to applicants as follows (A) first, to any applicant who (i) is from a lowincome background (as determined under regulations of the Secretary), (ii) resides in a physician shortage area, and (iii) agrees that, upon completion of his professional training, he will return to such area and will engage in such area in the practice of primary care; (B) second, to any applicant who meets all the criteria set forth in subparagraph (A) except that prescribed in clause (i);" (C) third, to any applicant who meets the criterion set forth in clause (i); and (D) fourth, to any other applicant. (c) (1) Any scholarship grant awarded to any individual under this subpart shall be awarded upon the condition that such individual will, upon completion of his professional training, engage in the practice of primary care (A) in the case of any individual who, in applying for scholarship grant under this subpart, met the criteria set forth in subparagraph (A) or (B) of subsection (b) (3), in the physician shortage area in which he agreed (pursuant to such subparagraph) to engage in such practice; and (B) in the case of any individual who did not agree (pursuant to such subparagraph (A) or (B)) to engage in such practice in any particular physician shortage area (or who is not, under a waiver under paragraph (4) of this subsection, required to engage in such practice in any particular physician shortage area) (i) in any physician shortage area, or (ii) at such place or places, in such facility or facilities, and in such manner, as may be necessary to assure that, of the patients receiving medical care provided by such individual, a substantial portion will consist of persons who are migratory agricultural workers or are members of the families of such workers; for a twelve-month period for each full academic year with respect to which he receives such a scholarship grant. For purposes of the preceding sentence, any individual, who has received a scholarship grant under this subpart for four full academic years, shall be deemed to have received such a grant for only three full academic years if such individual serves all of his internship or residency in a public or private hospital, which is located in a physician shortage area, or a substantial portion of the patients of which consists of persons who are migratory agricultural workers (or are members of the families of such workers) and, if, while so serving, such individual receives training or professional experience designed to prepare him to engage in the practice of primary care. (2) The condition imposed by paragraph (1) shall be complied with by any individual to whom it applies within such reasonable period of time, after the completion of such individual's professional training, as the Secretary shall by regulations prescribe. (3) If any individual to whom the condition referred to in paragraph (1) is applicable fails, within the period prescribed pursuant to regulations under paragraph (2), to comply with such condition for the full number of months with respect to which such condition is applicable, the United States shall be entitled to recover from such individual an amount equal to the amount produced by multiplying (A) the aggregate of (i) the amounts of the scholarship grant or grants (as the case may be) made to such individual under this subpart, and (ii) the sums of the interest which would be payable on each such scholarship grant if, at the time such grant was made, such grant were a loan bearing interest at a rate fixed by the Secretary of the Treasury, after taking into consideration private consumer rates of interest prevailing at the time such grant was made, and if the interest on each such grant had been compounded annually, by (B) a fraction the numerator of which is the number otbained by subtracting from the number of months to which such condition is applicable a number equal to one-half of the number of months with respect to which compliance by such individual with such condition was made, and the denominator of which is a number equal to the number of months with respect to which such condition is applicable. Any amount which the United States is entitled to recover under this paragraph shall, within the three-year period beginning on the date the United States becomes entitled to recover such amount, be paid to the United 42 U.S.C. 295g-22 States. Until any amount due the United States under this paragraph on account of any grant under this subpart is paid, there shall accrue to the United States interest on such amount at the same rate as that fixed by the Secretary of the Treasury pursuant to clause (A) with respect to the grant on account of which such amount is due the United States. (4) (A) Any obligation of any individual to comply with the condition applicable to him under the preceding provisions of this subsection shall be canceled upon the death of such individual. (B) The Secretary shall by regulations provide for the waiver or suspension of any such obligation applicable to any individual whenever compliance by such individual is impossible or would involve extreme hardship to such individual and if enforcement of such obligation with respect to any individual would be against equity and good conscience. ADMINISTRATION; CONTRACTUAL ARRANGEMENTS SEC. 785. The Secretary may enter into agreements with schools of medicine, hospitals, or other appropriate public or nonprofit private agencies under which such schools, hospitals, or other agencies will, as agents of the Secretary, perform such functions in the administration of this subpart, as the Secretary may specify. Any such agreement with any school, hospital, or other agency may provide for payment by the Secretary of amounts equal to the expenses actually and necessarily incurred by such school, hospital, or other agency in carrying out such agreement. 42 U.S.C. 295g-23 AUTHORIZATION OF APPROPRIATIONS SEC. 786. For the purpose of making scholarship grants under this subpart, there are authorized to be appropriated $2,500,000 for the fiscal year ending June 30, 1972, $3,000,000 for the fiscal year ending June 30, 1973, and $3,500,000 for the fiscal year ending June 30, 1974. For the fiscal year ending June 30, 1975, and for each succeeding fiscal year, there are authorized to be appropriated such sums as may be necessary to continue to make such grants to students who (prior to July 1, 1974) have received such a grant and who are eligible for such a grant under this part during such succeeding fiscal year. 1 See footnote 1 on page 251. PART G-TRAINING IN THE ALLIED HEALTH PROFESSIONS GRANTS FOR CONSTRUCTION OF TEACHING FACILITIES FOR Authorization of Appropriations SEC. 791. (a) (1) There are authorized to be appro- 42 U.S.C. 295h priated for grants to assist in the construction of new facilities for training centers for allied health professions, or replacement or rehabilitation of existing facilities for such centers, $3,000,000 for the fiscal year ending June 30, 1967; $9,000,000 for the fiscal year ending June 30, 1968; $13,500,000 for the fiscal year ending June 30, 1969; $10,000,000 for the fiscal year ending June 30, 1970; $20,000,000 for the fiscal year ending June 30, 1971; $30,000,000 for the fiscal year ending June 30, 1972; and $40,000,000 for the fiscal year ending June 30, 1973. (2) Sums appropriated pursuant to paragraph (1) for a fiscal year shall remain available for grants under this section until the close of the next fiscal year. Approval of Applications for Construction Grants (b) (1) No application for a grant under this section may be approved unless it is submitted to the Surgeon General prior to July 1, 1972. The Surgeon General may from time to time set dates (not earlier than the fiscal year preceding the year for which a grant is sought) by which applications for grants under this section for any fiscal year must be filed. (2) A grant under this section may be made only if the application there for is approved by the Surgeon General upon his determination that (A) the applicant is a public or nonprofit private training center for allied health professions; (B) the application contains or is supported by reasonable assurances that (i) for not less than ten 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, (ii) sufficient funds will be available to meet the non-Federal share of the cost of constructing the facility, (iii) 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 (iv) in the case of an application for a grant for construction to expand the training capacity of a training center for allied |