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(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).

(d) Within such aggregate monetary limit as the Surgeon General may prescribe, after consultation with the Council, applications which (solely by reason of the inability of the applicants to give the assurance required by clause (B) of subsection (c) (2)) fail to meet the requirements for approval set forth in subsection (c) may be approved upon condition that the applicants give the assurance required by such clause (B) within a reasonable time and upon such other reasonable terms and conditions as he may determine after consultation with the Council.

(e) 63 In acting upon applications for grants, the Council and the Surgeon General shall take into consideration the relative effectiveness of the proposed facilities in expanding capacity for research, or research and related purposes, in the sciences related to health, in improving the quality of such research or related purposes and in promoting an equitable geographical distribution of such research (giving due consideration to population, available scientific research workers, and available research resources in various areas of the Nation).

AMOUNT OF GRANT; PAYMENTS

SEC. 706. (a) (1) The amount of any grant made under this part shall be that recommended by the Council or such lesser amounts as the Surgeon General determines to be appropriate; but such amount may not, except as provided in paragraph (2), exceed 50 per centum of the necessary cost of the construction of such facility as determined by him, in the case of a facility which the Surgeon General determines is to be used for research, or research and purposes related thereto (including research training), in the sciences related to health or, in the case of any other multi-purpose facility, 50 per centum of the part of the necessary cost of construction which the Surgeon General determines to be proportionate to the contemplated use of the facility for research or research and related purposes, in the sciences related to health.

Sec. 705 (e) amended by sec. 8 of P.L. 87-395.

Sec. 706 amended by sec. 402 of P.L. 90-490 by addition of paragraph (2), effective for projects for which grants are made from appropriations for fiscal years ending after June 30, 1969.

23-954 069—11

42 U.S.C. 292e

42 U.S.C. 292f

(2) The maximum amount of any grant shall be 66 per centum instead of the maximum under paragraph (1) in the case of any class or classes of projects which the Secretary determines have such special national or regional significance as to warrant a larger grant than is permitted under paragraph (1) ; but not more than 25 per centum of the funds appropriated pursuant to section 704 for any fiscal year shall be available for grants in excess of 50 per centum with respect to such class or classes of projects.

(b) Upon approval of any application for a grant under this part, the Surgeon General shall reserve, from any appropriation available therefor, the amount of such grant as determined under subsection (a), and shall pay such amount, in advance or by way of reimbursement, and in such installments consistent with construction progress, as he may determine. Such payments shall be made through the disbursement facilities of the Department of the Treasury. 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 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. 707. If, within ten years after completion of any 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 institution, or (b) the facility shall cease to be used for the research purposes, or research and related 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, 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.

NONINTERFERENCE WITH ADMINISTRATION OF

INSTITUTIONS

SEC. 708. Except as otherwise specifically provided in this part, nothing contained in this part shall be construed as authorizing any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over, or impose any requirement or condition with respect to, the research or related purposes conducted by, and 'the personnel or administration of, any institution.65

REGULATIONS

SEC. 709. (a) Within six months after the enactment of this part, the Surgeon General, after consultation with the Council and with the approval of the Secretary, shall prescribe general regulations covering the eligibility of institutions, and the terms and conditions for approving applications.

(b) The Surgeon General is authorized to make, with the approval of the Secretary, such administrative and other regulations as he finds necessary to carry out the provisions of this part.

REPORTS

SEC. 710. On or before January 15, 1957, and annually thereafter, the Surgeon General, in consultation with the Council, shall prepare an annual report and submit it to the President for transmission to the Congress, summarizing the activities under this part and making such recommendations as he may deem appropriate. The report to be submitted on or before January 15, 1958, shall include an appraisal of the current program under this part in the light of its adequacy to meet the longterm needs for funds for the construction of non-Federal facilities for research in the sciences related to health. Such reports and appraisals shall include minority views and recommendations, if any, of members of the Council.

TECHNICAL ASSISTANCE

SEC. 711.66 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.

Secs. 707 (b) and 708 amended by sec. 8 of P.L. 87-395.
Sec. 711 added by sec. 3 of P.L. 88-129.

42 U.S.C. 292g

42 U.S.C. 292h

42 U.S.C. 2921

42 U.S.C. 292j

42 U.S.C. 293

42 U.S.C. 293a

PART B-GRANTS FOR CONSTRUCTION OF TEACHING
FACILITIES FOR MEDICAL, DENTAL, AND OTHER HEALTH
PERSONNEL 67

AUTHORIZATION OF APPROPRIATIONS

SEC. 720.68 There are hereby authorized to be appropriated $480,000,000 for the three fiscal years in the period beginning July 1, 1966, and ending June 30, 1969, of which not more than $160,000,000 may be available for grants before July 1, 1967, and not more than $320,000,000 may be available for grants before July 1, 1968, for

(1) grants to assist in the construction of new teaching facilities for the training of physicians, pharmacists, optometrists, podiatrists, veterinarians, or professional public health personnel;

(2) grants to assist in the construction of new teaching facilities for the training of dentists; and

(3) grants to assist in the replacement or rehabilitation of existing teaching facilities for the training of physicians, pharmacists, optometrists, podiatrists, veterinarians, professional public health personnel, or dentists. For such grants there are also authorized to be appropriated $170,0000,000 for the fiscal year ending June 30, 1970, and $225,000,000 for the next fiscal year. Sums so appropriated for any fiscal year shall remain available for obligation through the close of the next fiscal year.

APPROVAL OF APPLICATIONS

SEC. 721. (a) The Surgeon General may from time to time set time set dates (not earlier than in the fiscal year preceding the year for which a grant is sought) by which applications for grants under this part for any fiscal year must be filed.

(b) 70 (1) To be eligible to apply for a grant to assist in the construction of any facility under this part, the applicant must be (A) a public or other nonprofit school of medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, veterinary medicine, or public health and (B) accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education, except that a new school which (by reason of no, or an insufficient, period of operation) is not, at the time of application for a grant to construct a facility under this part, eligible for accreditation by such a recognized body or

07 Pt. B added by sec. 2(b) of P.L. 88-129.

6s Sec. 720 amended by sec. 101 of P.L. 90-490 which added the last two sentences. Subsec. 101(b) (2) of P.L. 90-490 states that the last two sentences shall apply only with respect to appropriations for fiscal years ending after June 30, 1969.

6 Sec. 721 (a) amended by sec. 3(b) of P.L. 89-290.
70 Sec. 721(b) amended by sec. 2(b) (1) of P.L. 89-709.

bodies, shall be deemed accredited for purposes of this part if the Commissioner of Education finds, after consultation with the appropriate accreditation body or bodies, that there is reasonable assurance that the school will meet the accreditation standards of such body or bodies: (i) prior to the beginning of the academic year following the normal graduation date of the first entering class in such school or (ii) if later, upon completion of the project for which assistance is requested and other projects (if any) under construction or planned and to be commenced within a reasonable time.

(2) Notwithstanding paragraph (1), in the case of an affiliated hospital, an application which is approved by the school of medicine or school of osteopathy with which the hospital is affiliated and which otherwise complies with the requirements of this part may be filed by any public or other nonprofit agency qualified to file an application under section 625.

(3) In the case of any application, whether filed by a school or, in the case of an affiliated hospital, by any other public or other nonprofit agency, for a grant under this part to assist in the construction of a facility which is a hospital as defined in section 631

(A) if the facility is needed in connection with a new school, only that portion of the project to construct the facility which the Surgeon General determines to be reasonably attributable to the need of such school for the facility for teaching purposes,

(B) if the construction is in connection with expansion of the training capacity of an existing school, only that portion of the project to construct the facility which the Surgeon General determines to be reasonably attributable to the need of such school for the facility in order to expand its training capacity,

(C) if the construction is in connection with renovation or rehabilitation of facilities used by an existing school, only that portion of the project which the Surgeon General determines to be reasonably attributable to the need of such school for the facilities in order to prevent curtailment of enrollment or quality of training of the school,

shall be regarded as the project with respect to which payments may be made under section 722.

(c) A grant under this part may be made only if the application there for is approved by the Surgeon General upon his determination that

(1) the applicant meets the eligibility conditions set forth in subsection (b):

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