and types of full-time professional and other personnel which local public health units in various types of areas must employ per thousand population, in order to afford reasonable assurance of continued financial support for, and efficient and economic administration of, basic public health services in such areas;

"(2) criteria for determining whether methods for allocating, under State plans, the funds made available under this section to local public health units are equitable and such as to assure the effective use of such funds in the provision of basic public health services;

"(3) subject to the limits set forth in subsection (d) (5), general methods of administration necessary to assure efficient and economical provision of basic public health services under State plans, including the conditions under which compliance with such methods may be postponed;

"(4) types of health services, including the training of personnel for local public health work, which shall be considered basic public health services for which funds may be expended under State plans, consideration being given in such regulations to the types of health services for which Federal aid is available under other provisions of law.

"(d) In order to be approved under this section, a State plan shall—

"(1) set forth a program for the extension of the State plan so as to assure coverage under the plan of all areas in the State;

"(2) contain satisfactory evidence that the State health authority and the local publis health units of the State whose populations are covered by the State plan will have authority to carry out the plan in conformity with the provisions of this section and regulations prescribed thereunder; "(3) provide that each local public health unit providing basic public health services under the plan service an area of sufficient population and financial resources to assure continued financial support for, and efficient and economical administration of, such basic health services; and employ full-time personnel of such types and in such numbers as are required to render minimum basic public health services to the population served by the local public health unit;

"(4) provide for the allocation of all funds received by the State health authority under this section to local public health units participating in the State plan in accordance with methods that will assure equitable distribution and the effective use of such funds in the extension and expansion of basic public health services, and provide that all such funds shall be used by such units solely for the provision of such services;

"(5) provide such methods of administration of the State plan, including methods relating to the establishment and maintenance of personnel standards on a merit basis (except that the Surgeon General shall exercise no authority with respect to the selection, tenure of office, or compensation of any individual employed in accordance with such methods), as may be necessary to assure the efficient and economical provision of basic public health services under the plan;

"(6) provide that the State health authority will make such reports, in such form and containing such information, as the Surgeon General may from time to time reasonably require, and give the Surgeon General upon demand access to the records upon which such information is based. The Surgeon General shall approve any State plan and any modification thereof which complies with the provisions of this subsection and regulations prescribed under subsection (c).

"(e) From the sums appropriated pursuant to this section, each State which has a State plan approved in accordance with subsection (d) shall be entitled to receive for each fiscal year an amount which bears the same ratio to onethird of the expenditures for such year under the plan as the average per capita income of the continental United States (excluding Alaska) bears to the average per capita income of such State, except that (1) in no case may the amount paid to such State for a fiscal year exceed two-thirds of the expenditures under the State plan for such year, and (2) there shall not be counted as expenditures under the State plan for any fiscal year any sum in excess of $1.50 (or such higher amount as may be specified in the appropriation pursuant to this section for such year) multiplied by the population of the local public health units participating in the State plan. If, during the fiscal year, the areas covered by the State plan are changed, appropriate adjustments, prorated in accordance

with the time the change becomes effective, shall be made in determining the maximum amount of the expenditures.

"(f) The Surgeon General shall, prior to the beginning of each period for which a payment is to be made, estimate the amount to be paid to the State for such period pursuant to subsection (e), and shall then certify to the Secretary of the Treasury the amount so estimated, increased or decreased, as the case may be, by any sum by which he finds that his estimate for any prior period was greater or less than the amount which should have been paid to the State under subsection (e) for such period. The Secretary of the Treasury shall thereupon, prior to audit or settlement by the General Accounting Office, pay to the State, at the time or times fixed by the Surgeon General, the amount so certified. "(g) Whenever the Surgeon General, after reasonable notice and opportunity for hearing to the health authority of the State finds

"(1) that the State plan has been changed so that it no longer complies with the requirements of subsection (d); or

"(2) that in the administration of the plan there is a failure to comply substantially with any provision required by subsection (d) to be included in the plan; the Surgeon General shall notify such State health authority that further payments will not be made to the State from appropriations pursuant to this section (or, in his discretion, that further payments will not be made to the State from such appropriations for activities or areas in which there is such failure) until he finds that the plan again complies with such requirements or until he is satisfied that there will no longer be any such failure. Until he so finds, or is so satisfied, the Surgeon General shall make no further certification for payment to such State from appropriations pursuant to this section, or shall limit payment to activities or areas in which there is no such failure."

GRANTS TO STATES UNDER SECTION 314 OF THE PUBLIC HEALTH SERVICE ACT

SEC. 502. (a) Subsection (c) of section 314 of the Public Health Service Act, as amended, is amended to read as follows:

"(c) To enable the Surgeon General to assist, through grants and as otherwise provided in this section, States, counties, health districts, and other political subdivisions of States in establishing and maintaining adequate public health services, including grants for demonstrations, for the training of personnel for State and local health work, and for the cost to the State health authority of administering the State plan approved under section 315, but excluding grants for basic public health services for which appropriations are authorized under such section, and to enable the Surgeon General to provide demonstrations and to train personnel for State and local health work (directly or through grants to public and other nonprofit institutions offering training in public health work) and to meet the cost of pay, allowances, and traveling expenses of commissioned officers and other personnel of the Service detailed to assist States in carrying out the purposes of this subsection, there is hereby authorized to be appropriated such sums as are necessary to carry out the purposes of this subsection."

(b) The first sentence of subsection (d) of such section 314 is amended to read as follows:

"(d) For each fiscal year, the Surgeon General, with the approval of the Administrator, shall determine the total sum from the appropriation under subsection (a), the appropriation under subsection (b), and the appropriation under subsection (c) which shall be available for allotment among the several States."

(c) Subsection (i) of such section 314 is amended to read as follows: "(i) All regulations and amendments thereto with respect to grants to States under this section or section 315 shall be made after consultation with a conference of State health authorities and, in the case of regulations or amendments which relate to or in any way affect grants under subsection (c) of this section for work in the field of mental health, the State mental health authorities. Insofar as practicable, the Surgeon General shall obtain the agreement, prior to the issuance of any such regulations or amendments, of the State health authorities and, in the case of regulations or amendments which relate to or in any way affect grants under subsection (c) of this section for work in the field of mental health, the State mental health authorities."

TITLE VI-STUDIES AND GRANTS FOR INCREASING AVAILABLE MANPOWER IN THE HEALTH PROFESSIONS

PART A-STUDY OF TRAINING FACILITIES AND MANPOWER REQUIREMENTS

COMMISSION ON MANPOWER IN THE HEALTH PROFESSIONS

SEC. 601. (a) There is hereby established a Commission on Manpower in the Health Professions, hereinafter called the "Commission."

(b) The Commission shall consist of sixteen Commissioners, including the Surgeon General of the Public Health Service, the Commissioner of Education, the Chief Medical Director of the Department of Medicine and Surgery of the Veterans' Administration, and a representative of the medical services of the National Military Establishment (to be designated by the Secretary of National Defense), who shall serve ex officio, and twelve Commissioners to be appointed by the President on or before October 1, 1949, who shall be persons not otherwise in the employ of the Federal Government. At least eight of the twelve appointed Commissioners shall be persons outstanding in the fields of medicine, dentistry, nursing, public health, or higher education who are familiar with the problems of manpower in the health professions.

(c) The Commission shall elect a Chairman and a Vice Chairman from among its membership. Nine Commissioners shall constitute a quorum. Any vacancy in the Commission shall not affect its powers, but shall be filled in the same manner in which the original appointment was made.

(d) The Commission shall continue in existence until ninety days after completion of the submission of its report as provided in section 602. Each of the twelve appointed Commissioners, while attending meetings of the Commission or while otherwise serving pursuant to this part, shall be entitled to receive $50 per diem, and shall also be entitled to receive an allowance for actual and necessary traveling and subsistence expenses while so serving away from his place of residence.

STUDY OF NEEDS FOR HEALTH PERSONNEL

SEC. 602. It shall be the duty of the Commission to make a thorough study of the present and long-range needs for medical, dental, nursing, public-health, and other professional health personnel in the United States, and of the numbers and manner (including facilities) in which such personnel are and ought to be trained, distributed, and utilized, in order best to meet the health needs of the Nation; and to submit to Congress one or more reports containing its findings and recommendations based on such study. Such report or reports shall be submitted on or before January 15, 1952.

POWERS OF COMMISSION

SEC. 603. (a) The Commission shall have power to appoint and fix the compensation of such personnel as it deems necessary, in accordance with the provisions of the civil-service laws and the Classification Act of 1923, as amended. (b) The Commission may, in its discretion, enter into contracts with private individuals, nonprofit educational or research organizations, organizations of the health professions, or non-Federal public agencies, for the performance of research which it deems necessary.

(c) The Commission, or any member thereof, may, for the purpose of carrying out the provisions of this part, hold such hearings and sit and act at such times and places, and take such testimony, as the Commission or such member may deem advisable. Any member of the Commission may administer oaths or affirmations to witnesses appearing before the Commission or before such member.

(d) The Commission is authorized to secure directly from any executive department, bureau, agency, board, commission, office, independent establishment, or instrumentality information, suggestions, estimates, and statistics for the purpose of this part; and each such department, bureau, agency, board, commission, office, establishment, or instrumentality is authorized and directed to furnish such information, suggestions, estimates, and statistics directly to the Commission, upon request made by the Chairman or Vice Chairman.

AUTHORIZATION OF APPROPRIATIONS

SEC. 604. There are hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary to carry out the provisions of this part.

PART B-TEMPORARY PAYMENTS TO MEDICAL SCHOOLS FOR MAINTAINING AND INCREASING ENROLLMENT

APPROPRIATIONS AUTHORIZED FOR ASSISTANCE TO MEDICAL SCHOOLS

SEC. 611. In order to enable the National Health Administrator, through payments to schools, to assist temporarily in maintaining and increasing the number of individuals trained annually in the field of medicine, there are hereby authorized to be appropriated for the fiscal years ending June 30, 1950, June 30, 1951, and June 30, 1952, such sums as may be necessary. Payments to any school from appropriations under this section may be used by such school to meet the costs (herein referred to as "costs of instruction") of maintaining and enlarging its staff, and of maintaining and operating its facilities (including the acquisition of equipment).

PAYMENTS TO SCHOOLS

SEC. 612. Payments under section 611 for each of the fiscal years ending June 30, 1950, June 30, 1951, and June 30, 1952, shall be made by the Administrator to any school of medicine which has submitted, and had approved by him, an application in accordance with section 613 (a), for such payments in such year. The sum of $500 shall be paid for each student enrolled in the school in such year, up to the average past enrollment of the school, and the sum of $750 shall be paid for each student in excess of the average past enrollment. The average past enrollment of a school shall be the average of its student enrollments during the three academic years next preceding the academic year for which the calculation is made.

APPLICATION BY SCHOOLS FOR PAYMENTS

SEC. 613. (a) Any school desiring payments under section 611 may file an application with the National Health Administrator for the fiscal year in which such payments are desired. Such application shall contain such information, necessary for determining the eligibility of such school for such payments, as the Administrator may by regulation prescribe, and shall also contain adequate assurance that

(1) such school does not and will not impose any unreasonable restrictions against the admission of out-of-State students; and

(2) such school will submit from time to time such reports as the Administrator may find necessary to carry out the purposes of this part, and will comply with such other conditions as may, subject to the provisions of section 616, be prescribed in regulations.

(b) No payment shall be made under section 611 to any school unless the Administrator finds that such school will admit students without discrimination on account of race, creed, color, or national origin, except that, in the case of schools located within a State in which separate facilities are required by law to be maintained for minority races, such payments may be made to schools which admit members of such races, and may be made to any school which will not admit members of such races if the Administrator finds that there are comparable opportunities for qualified members of such races who reside in the State to obtain the type of professional training offered by such school. As used in this section, the term "minority race" means any race or racial group that constitutes a minority of the population of the continental United States.

CERTIFICATION OF PAYMENTS

SEC. 614. (a) The Administrator, in accordance with regulations, shall determine from time to time the amount to be paid to each school under this part and shall certify to the Secretary of the Treasury the amounts so determined. Upon receipt of any such certification, the Secretary of the Treasury shail, prior to audit or settlement by the General Accounting Office, pay in accordance with such certification.

(b) Whenever the Administrator, after reasonable notice and opportunity for hearing to a school, finds with respect to payments to such school from appropriations under section 611 that there is a failure to carry out any of the requirements of, or assurances given pursuant to, section 613, or to comply with regulations issued in conformity with this part, the Administrator shall notify such

school that further payments will not be made to it from appropriations under section 611 until he is satisfied that there is no longer any such failure. Until he is so satisfied the Administrator shall make no further certification for payments to such school from appropriations under such section.

REGULATIONS

SEC. 615. The Administrator is authorized to issue such regulations as he may deem necessary for carrying out the provisions of this part. When such regulations concern payments to schools or the conditions with which schools must comply, as set forth in sections 612, 613, and 614, in order to become or remain eligible for such payments, he shall issue such regulations only after consulting with, and, insofar as possible, obtaining the concurrence of, the schools which may be affected thereby or the representatives designated by such schools for such consultation.

LIMITATION ON FEDERAL CONTROL

SEC. 616. Except as otherwise expressly provided in this part, nothing in this part shall be construed as authorizing any department, agency, officer, or employee of the United States to exercise any control over, or prescribe any requirements with respect to, the curriculum, teaching personnel, or administration of any school, or the admission of applicants thereto.

AUDIT

SEC. 617. The Administrator shall provide for an annual audit of expenditures made under this part and shall include in his annual report for transmission to Congress a full report of the administration of this part, including the essential facts about the program carried on under this part, a detailed statement of appropriations and disbursements, a summary and analysis of legislative and administrative provisions adopted for the expenditure of funds received under this part, and statistical information showing the results achieved through the expenditure of such funds.

SEC. 618. As used in this part

DEFINITIONS

(a) the term "student" means a person enrolled in and actually attending the school of medicine who devotes essentially full time to pursuing a course of training leading to the degree of doctor of medicine; and

(b) the term "school of medicine" means a public or nonprofit institution within the continental United States offering a course of instruction in medicine leading toward the degree of doctor of medicine, which is exempt from Federal taxation and has been approved or accredited by a body designated for such purpose by the Administrator.

TITLE VII-MISCELLANEOUS

SEC. 701. Section 2 (c) of the Public Health Service Act is amended to read as follows:

"(c) The term 'Administrator' means the National Health Administrator." SEC. 702. Sections 201 (c) and (d) of the Federal Food, Drug, and Cosmetic Act, as amended (U. S. C., title 21, sec. 321), are hereby amended to read as follows:

"(c) The term 'Agency' means the National Health Agency.

"(a) The term 'Administrator' means the National Health Administrator." SEC. 703. Upon the direction of any officer or employee of the Government of the United States, requesting the Government to deduct from the salary of such officer or employee a fixed sum or percentage to be paid to any voluntary nonprofit health insurance fund, said sum or percentage shall be deducted from the salary of such officer or employee and shall be paid as directed by him. The term "United States" in this section shall be deemed to include all departments, bureaus, agencies, and other divisions of the Government and also corporations, the stock of which is wholly owned by the said Government. The term "health insurance fund" shall be deemed to include any nonprofit organization undertaking to provide, or to insure against the expense of, hospital, medical, dental, or any other services connected with health.

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