"(3) provide that the fund shall be used only for loans to students of the school accordance with the agreement and for costs of collection of such loans and interest thereon;

"(4) provide that loans may be made from such fund only to students pursuing a full-time course of study at the school leading to a degree of doctor of medicine, doctor of dentistry or an equivalent degree, doctor of osteopathy, or doctor of optometry or an equivalent degree, and that while the agreement remains in effect no such student who has attended such school before July 1, 1966, shall receive a loan from a loan fund established under section 204 of the National Defense Education Act of 1958; and

"(5) contain such other provisions as are necessary to protect the financial interests of the United States.

"LOAN PROVISIONS

"SEC. 741. (a) Loans from a loan fund established under this part may not exceed $2,000 for any student for any academic year or its equivalent. In the granting of such loans, a school shall give preference to persons who enter as first-year students after June 30, 1963. "(b) Any such loans shall be made on such terms and conditions as the school may determine, but may be made only to a student in need of the amount thereof to pursue a full-time course of study at the school leading to a degree of doctor of medicine, doctor of dentistry or an equivalent degree, doctor of osteopathy or doctor of optometry or an equivalent degree.

"(c) Such loans shall be repayable in equal or graduated periodic installments (with the right of the borrower to accelerate repayment) over the ten-year period which begins three years after the student ceases to pursue a full-time course of study at a school of medicine, osteopathy, dentistry, or optometry, excluding from such ten-year period all periods (up to three years) of (1) active duty performed by the borrower as a member of a uniformed service, or (2) service as a volunteer under the Peace Corps Act.

"(d) The liability to repay the unpaid balance of such a loan and accrued interest thereon shall be canceled upon the death of the borrower, or if the Secretary determines that he has become permanently and totally disabled.

"(e) Such loans shall bear interest, on the unpaid balance of the loan, computed only for periods during which the loan is repayable, at the rate of 3 per centum per annum, or the going Federal rate at the time the loan is made, whichever rate is the greater. For purposes of this subsection, the term 'going Federal rate' means the rate of interest which the Secretary of the Treasury specifies during June of each year for purposes of loans made during the fiscal year beginning on the next July 1, determined by estimating the average yield to maturity, on the basis of daily closing market quotations or prices during the preceding May on all outstanding marketable obligations of the United States having a maturity date of fifteen or more years from the first day of such month of May, and by rounding off such estimated average annual yield to the next higher multiple of oneeighth of 1 per centum.

"(f) Loans shall be made under this part without security or endorsement, except that if the borrower is a minor, and the note or other evidence of obligation executed by him would not, under the applicable law, create a binding obligation, either security or endorsement may be required.

"(g) No note or other evidence of a loan made under this part may be transferred or assigned by the school making the loan except that, if the borrower transfers to another school participating in the program under this part, such note or other evidence of a loan may be transferred to such other school.

"(h) Where all or any part of a loan, or interest, is canceled under this section, the Secretary shall pay to the school an amount equal to the school's proportionate share of the canceled portion, as determined by the Secretary.

"AUTHORIZATION OF APPROPRIATIONS

"SEC. 742. (a) There are hereby authorized to be appropriated to the Secretary of Health, Education, and Welfare to carry out this part $5,100,000 for the fiscal year ending June 30, 1964, $10,200,000 for the fiscal year ending June 30, 1965, $15,400,000 for the fiscal year ending June 30, 1966, and such sums for the fiscal year ending June 30, 1967, and each of the two succeeding fiscal years as may be necessary to enable students who have received a loan for any academic year ending before July 1, 1966, to continue or complete their education. Sums appropriated pursuant to this subsection shall be allotted among loan funds at schools which have established loan funds under this part.

"(b) (1) The Secretary shall from time to time set dates by which schools with which he has in effect agreements under this part must file applications for allotments to their loan funds.

"(2) If the total of the amounts requested for any fiscal year in such applications exceeds the amounts appropriated under this part for that fiscal year, the allotment to the loan fund of each such school shall be reduced to whichever of the following is the smaller: (A) the amount requested in its application or (B) an amount which bears the same ratio to the amounts appropriated as the number of students estimated by the Secretary to be enrolled in such school during such fiscal year bears to the estimated total number of students in all such schools during such year. Amounts remaining after allotment under the preceding sentence shall be reallotted in accordance with clause (B) of such sentence among schools whose applications requested more than the amounts so allotted to their loan funds, but with such adjustments as may be necessary to prevent the total allotted to any such school's loan fund from exceeding the total so requested by it. "(3) Allotments to a loan fund of a school shall be paid to it from time to time in such installments as the Secretary determines will not result in unnecessary accumulations in the loan fund at such school.

"DISTRIBUTION OF ASSETS FROM LOAN FUNDS

"SEC. 743. (a) After June 30, 1969, and not later than September 30, 1969, there shall be a capital distribution of the balance of the loan fund established under this part by each school as follows:

"(1) The Secretary shall first be paid an amount which bears the same ratio to the balance in such fund at the close of June 30, 1969, as the total amount of the allotments to such fund by the Secretary under this part bears to the total amounts in such fund derived from such allotments and from funds deposited therein pursuant to section 740 (b) (2) (B).

"(2) The remainder of such balance shall be paid to the school. "(b) After September 30, 1969, each school with which the Secretary has made an agreement under this part shall pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school after June 30, 1969, in payment of principal or interest on loans made from the loan fund established pursuant to such agreement as was determined for the Secretary under subsection (a).

"LOANS TO SCHOOLS

"SEC. 744. Upon application by any school with which he has made an agreement under this part, the Secretary may make a loan to such school for the purpose of helping to finance deposits required by section 740 (b) (2) (B) in a loan fund established pursuant to such agreement. Such loan may be made only if the school shows it is unable to secure such funds upon reasonable terms and conditions from non-Federal sources. Loans made under this section shall bear interest at a rate sufficient to cover (1) the cost of the funds to the Treasury, (2) the cost of administering this section, and (3) probable losses.

"ADMINISTRATIVE PROVISIONS

"SEC. 745. The Secretary may agree to modifications of agreements or loans made under this part, and may compromise, waive, or release any right, title, claim, or demand of the United States arising or acquired under this part.'

SEC. 3. (a) Section 705 (c) of the Public Health Service Act is amended by striking out "and" at the end of paragraph (2), by striking out the period at the end of paragraph (3) and inserting in lieu thereof "; and", and by adding after paragraph (3) the following new paragraph:

"(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)."

(b) Part A of title VII of such Act is further amended by inserting after section 710 the following new section:

"TECHNICAL ASSISTANCE

"SEC. 711. 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."

NURSE TRAINING ACT OF 1964

Enacted on September 4, 1964, as P.L. 88-581, 78 Stat. 908

AN ACT To amend the Public Health Service Act to increase the opportunities for training professional nursing personnel, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Nurse Training Act of 1964".

SEC. 2. The Public Health Service Act (42 U.S.C., ch. 6A) is amended by adding at the end thereof the following new title:

"TITLE VIII-NURSE TRAINING

"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 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 may be made only if the application therefor is approved by the Surgeon General upon his determination that—

"(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 first-year 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 equip-. ment; 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. 27c).