An Act to amend the Public Health Service Act to improve the educational quality of schools of medicine, dentistry, and osteopathy, to authorize grants under that act to such schools for the awarding of scholarships to needy students, and to extend expiring provisions of that act for student loans and for aid in construction of teaching facilities for students in such schools and schools for other health professions, and for other purposes
PL 89-290 (H.R.3141), enacted 10/22/1965

1052 
PUBLIC LAW 89-290-OCT. 22, 1965 
[79 STAT. 
Public Law 89-290 
October 22, 1965 
[H. R. 3141] 
AN ACT 
Health Profes-
sions Education-
al Assistance 
Amendments of 
1965. 
70 Stat. 717; 77 
Stat. 164, 282. 
42 u s e 292 et 
seq. 
Enrollment in-
crease require-
ment. 
42 u s e 293a. 
To amend the Public Health Service Act to improve the educational quality of 
schools of medicine, dentistry, and osteopathy, to authorize grants "under that 
Act to such schools for the awarding of scholarships to needy students, and 
to extend expiring provisions of that Act for student loans and for aid in 
construction of teaching facilities for students in such schools and schools 
for other health professions, and for other purposes. 
Be it enacted hy the Senate and House of Eepresentatwes 
of the 
United /States of America in Congress assembled^ That this Act may 
be cited as the "Health Professions Educational Assistance Amend-
ments of 1965". 
EDUCATIONAL 
IMPROVEMENT 
GRANTS 
AND SCHOLARSHIP 
GRANTS 
TO 
SCHOOLS 
OF MEDICINE, 
DENTISTRY, 
OSTEOPATHY, 
OPTOMETRY, AND 
PODIATRY 
SEC. 2. (a) Title V I I of the Public Health Service Act is amended 
by adding at the end thereof the following new parts: 
"PART E—GRANTS To IMPROVE THE QUALITY OF SCHOOLS OF MEDICINE, 
DENTISTRY, OSTEOPATHY, OPTOMETRY, AND PODIATRY 
"AUTHORIZATION OF APPROPRIATIONS 
"SEC. 770. There are authorized to be appropriated $20,000,000 for 
the fiscal year ending June 30,1966, $40,000,000 for the fiscal year end-
ing June 30,1967, $60,000,000 for the fiscal year ending June 30,1968, 
and $80,000,000 for the fiscal year ending June 30, 1969, for grants 
under this part to assist schools of medicine, dentistry, osteopathy, 
optometry, and podiatry to improve the quality of their educational 
programs. 
"BASIC IMPROVEMENT GRANTS 
"SEC. 771. (a) Subject to the provisions of subsection (b), the Sur-
geon General may make basic improvement grants as follows: 
"(1) For the fiscal year ending June 30, 1966, each school of medi-
cine, dentistry, osteopathy, optometry, or podiatry whose application 
for a basic improvement grant for such year has been approved by 
the Surgeon General shall oe paid the sum of $12,500 plus the product 
obtained by multiplying $250 by the number of full-time students in 
such school. 
"(2) For each fiscal year in the period beginning July 1,1966, and 
ending June 30, 1969, each such school whose application has been 
approved for such a grant for such year shall be paid the sum of 
$25,000 plus the product obtained by multiplying $500 by the number 
of full-time students in such school. 
"(b) The Surgeon General shall not make a grant under this section 
to any school unless the application for such grant contains or is sup-
ported by reasonable assurances that for the first school year begin-
ning after the fiscal year for which such grant is made and each school 
year thereafter during which such a grant is made the first-year enroll-
ment of full-time students in such school will exceed the highest first-
year enrollment of such students in such school for any of the five 
school years during the period July 1, 1960, through July 1, 1965, 
by at least 2i^ per centum of such highest first-year enrollment, or by 
fiive students, whichever is greater. The requirements of this sub-
section shall be in addition to the requirements of section 721(c) (2) 
(l>) of this Act, where applicable. The Surgeon General is author-
ized to waive (in whole or in part) the provisions of this subsection 
79 STAT. ] 
PUBLIC LAW 89-290-OCT. 22, 1965 
1053 
if he determines, after consultation with the National Advisory Coun-
cil on Medical, Dental, and Optometric, and Pediatric Education, that 
the required increase in first-year enrollment of full-time students in 
a school cannot, because of limitations of physical facilities available 
to the school for training, be accomplished without lowering the quality 
of training for such students. 
"(c) For purposes of this part and part F, regulations of the Sur-
geon General shall include provisions relating to determination of the 
number of Students enrolled in a school, or in a particular year-class in 
a school, as the case may be, on the basis of estimates, or on the basis 
of the number of students enrolled in a S(^hool, or in a particular year-
class in a school, in an earlier year, as the case may be, or on such basis 
as he deems appropriate for making such determination, and shall 
include methods of making such determinations when a school or a 
year-class was not in existence in an earlier year at a school. 
"(d) For purposes of this part and part F, the term 'full-time ,t',X""l"r^ 
students' (whether such term is used by itself or in connection with a 
particular year-^class) means students pursuing a full-time course of 
study leading to a degree of doctor of medicine, doctor of dentistry or 
an equivalent degree, doctor of otopathy, doctor of optometry or an 
equivalent degree, or doctor of podiatry or an equivalent degree. 
students.' 
(( 
SPECIAL IMPROVEMENT GRANTS 
"SEC. 772. (a) From the sums appropriated under section 770 for 
any fiscal year and not required for making grants under section 771, 
the Surgeon Greneral may make an additional grant for such year to 
any school of medicine, dentistry, o^teopaithy, optometry, or podiatry 
which has an approved application therefor and for which an appli-
cation has been approved under section 771, if he determines that the 
requirements of subsection (b) are satisfied in the case of such appli-
cant. 
"(b) No special improvement grant shall be made under this section 
unless such grant is recommended by the National Advisory Council 
on Medical, Dental, Optometric, and Pediatric Education and the 
Surgeon General determines that such grant will be utilized by the 
recipient school (1) to contribute toward the maintenance of, or to 
provide for, accreditation, or (2) to contribute toward the maintenance 
of, or to provide for, specialized functions which the school serves. 
"(c) No grant to any school under this section may exceed $100,000 
for the fiscal year endmg June 30, 1966; $200,000 for the fiscal year 
ending June 30,1967; $300,000 for the fiscal year ending June 30,1968; 
or $400,000 for the fiscal year ending June 30,1969. 
Limitation. 
(( 
APPLICATIONS FOR GRANTS 
"SEC. 773. (a) The Surgeon General may from time to time set 
dates (not earlier than in the fiscal year preceding the year for which 
a grant is sought) by which applications for basic or special grants 
under section 771 or 772 for any fiscal year must be filed. 
"(b) To be eligible for a grant under this part, the applicant must 
(1) be a public or other nonprofit school of medicine, dentistry, oste-
opathy, optometry, or podiatry, and (2) be accredited by a recognized 
body or bodies approved for such purpose by the Commissioner of 
Education, except that the requirement of this clause (2) shall be 
deemed to be satisfied if, (A) in the case of a school which by reason 
of no, or an insufficient, period of operation is not, at the time of appli-
cation for a grant under this part, eligible for such accreditation, the 
1054 
PUBLIC LAW 89-290-OCT. 22, 1965 
[79 STAT. 
Commissioner finds, after consultation with the appropriate accredita-
tion body or bodies, that there is reasonable assurance that the school 
will meet the accreditation standards of such body or bodies prior to 
the beginning of the academic year following the normal graduation 
date of students who are in their first year of instruction at such school 
during the fiscal year in which the Surgeon General makes a final 
determination as to approval of the application, or (B) in the case of 
any other school, the Commissioner finds after such consultation and 
after consultation with the Surgeon General that there is reasonable 
ground to expect that, with the aid of a grant or grants under this part, 
having regard for the purposes of the grant sought, such school will 
meet such accreditation standards within a reasonable time. 
"(c) The Surgeon General shall not approve or disapprove any 
application for a ^rant under this part except after consultation with 
the National Advisory Council on Medical, Dental, Optometric, and 
Podiatric Education (established by section 774). 
"(d) A grant under this part may be made only if the application 
therefor— 
"(1) is approved by the Surgeon General upon his determina-
tion that the applicant meets the eligibility conditions set forth 
in subsection (6) of this section; 
"(2) contains or is supported by assurances satisfactory to the 
Surgeon General that the applicant will expend in carrying out its 
functions as a school of medicine, dentistry, osteopathy, optometry, 
or podiatry, as the case may be, during the fiscal year for which 
such grant is sought, an amount of funds (other than funds for 
construction as determined by the Surgeon General) from non-
Federal sources which are at least as great as the average amount 
of funds expended by such applicant for such purpose in the 
three fiscal years immediately preceding the fiscal year for which 
such grant is sought; 
" (3) contains such additional information as the Surgeon Gen-
eral may require to make the determinations required of him 
under this part and such assurances as he may find necessary to 
carry out the purposes of this part; and 
" (4) provides for such fiscal-control and accounting procedures 
and reports, and access to the records of the applicant, as the 
Surgeon General may require to assure proper disbursement of 
and accounting for Federal funds paid to the applicant under 
this part. 
"(e) In considering applications for grants under section 772, the 
Surgeon General shall take into consideration the relative financial 
need of the applicant for such a grant and the relative effectiveness of 
the applicant's plan in carrying out the purposes set forth in clauses 
(1) or (2) of subsection (b) of section 7T2 and in contributing to an 
equitable geographical distribution of schools offering high-quality 
training of physicians, dentists, optometrists, and podiatrists. 
"NATIONAL ADVISORY COUNCIL ON MEDICAL, DENTAL, OPTOMETRIC, AND 
PODIATRIC EDUCATION 
Membership. 
"SEC. 774. (a) There is hereby established in the Public Health 
Service a National Advisory Council on Medical, Dental, Optometric, 
and Podiatric Education consisting of the Surgeon General, who shall 
be Chairman, and twelve members appointed without regard to the 
civil service laws by the Surgeon General with the approval of the 
Secretary of Health, Education, and Welfare, and such appointments 
may be made for specified staggered terms. The appointed members 
79 STAT. ] 
PUBLIC LAW 89-290-OCT. 22, 1965 
1055 
of the Council shall be selected from, among leading authorities in the 
fields of medical, dental, optometric, and pediatric education, respec-
tively, except that not less than three of such members shall be selected 
from the general public. 
" (b) The Council shall advise the Surgeon General in the prej^ara-
tion of general regulations and with respect to policy matters arising 
in the administration of this part and part F, and in the review of 
applications imder this part. 
"(c) The Surgeon General is authorized to use the services of any 
member or members of the Council in connection with matters related 
to the administration of this part or part F, for such periods, in addi-
tion to conference periods, as he may determine. 
"(d) Appointed members of the Council, while attending confer- 
compensation; 
ences or meetings of the Council or while otherwise serving at the *'"°''*^ expenses. 
request of the Surgeon General, shall be entitled to receive compen-
sation at rates to be fixed by the Secretary but not exceeding $100 
per day, including travel time; and while away from their homes or 
regular places of business they may be allowed travel expenses, in-
cluding per diem in lieu of subsistence, as authorized by section 5 of 
the Administrative Expenses Act of 1946 (5 U.S.C. 73b-2) for per- ^^^o sta^ aos; 75 
sons in the Government service employed intermittently. 
"PART F—SCHOLARSHIP GRANTS TO SCHOOLS OF MEDICINE, OSTEOP-
ATHY, DENTRISTRT, OPTOMETRY, PODIATRY, OR PHARMACY 
Stat. 339, 340. 
(( 
SCHOLARSHIP GRANTS 
"SEC. 780. (a) The Surgeon General shall make grants as provided 
in this part to each public or other nonprofit school of medicine, osteop-
athy, dentistry, optometry, podiatry, or pharmacy, which is accredited 
as provided in section 721 (b)(1)(B) or section 773 (b) (2), for scholar- 
^os'' P- loss. 
ships to be awarded annually by such school to students thereof. 
"*"''' ^' ^ °^^• 
"(b) The amount of the grant under subsection (a) to each such 
school shall be equal to $2,000 multiplied (1) for the fiscal year ending 
June 30, 1966, by one-tenth of the number of full-time 
first-year 
students of such school; (2) for the fiscal year ending June 30,1967, 
by one-tenth of the number of full-time first-year students and second-
year students of such school; (3) for the fiscal year ending June 30, 
1968, by one-tenth of the number of full-time first-year students, sec-
ond-year students, and third-year students of such school; and (4) for 
the fiscal year ending June 30, 1969, by one-tenth of the number of 
full-time students of such school. For the fiscal year ending June 30, 
1970, and for each of the two succeeding fiscal years, the grant under 
subsection (a) shall be such amount as may be necessary to enable 
such school to continue making paymeiits under scholarship awards to 
students who initially received such awards out of grants made to the 
school for fiscal years ending prior to July 1, 1969. 
" (c) (1) Scholarships may be awarded by schools from grants under 
Recipients, 
subsection ( a ) - 
"^ 
' 
""«^^^^"--
*'(A) only to individuals who have been accepted by them for 
enrollment as full-time first-year students, in the case of awards 
from such grants for the fiscal year ending June 30,1966; 
"(B) only to individuals who have been so accepted, and indi-
viduals enrolled and in good standing as full-time second-year 
students, in the case of awards from such grants for the fiscal year 
ending June 30,1967; 
"(C) only to individuals who have been so accepted, and indi-
viduals enrolled and in good standing as full-time second-year or 
1056 
PUBLIC LAW 89-290-OCT. 22, 1965 
[79 STAT 
77 Stat. 169. 
42 u s e 293d. 
42 u s e 294. 
third-year students, in the case of awards from such grants for 
the fiscal year ending June 30, 1968; 
"(D) only to individuals who have been so accepted, and indi-
viduals enrolled and in good standing as full-time students, in the 
case of awards from such grants for the fiscal year ending June 30, 
1969; and 
"(E) only to individuals enrolled and in good standing as full-
time students who initially received scholarship awards out of 
such grants for a fiscal year ending prior to July 1,1969, in the case 
of awards from such grants for the fiscal year ending June 30, 
1970, or the two succeeding fiscal years. 
"(2) Scholarships from grants under subsection (a) for any school 
year shall be awarded only to students from low-income families who, 
without such financial assistance could not pursue a course of study at 
the school for such year. 
Any such scholarship awarded for a school 
year shall cover such portion of the student's tuition, fees, books, equip-
ment, and living expenses at the school making the award, but not to 
exceed $2,500 for any year, as such school may determine the student 
needs for such year on the basis of his requirements and financial 
resources. 
"(d) Grants under subsection (a) shall be made in accordance with 
regulations prescribed by the Surgeon General after consultation with 
the National Advisory Council on Medical, Dental, Optometric, and 
Podiatric Education. 
" (e) Grants under subsection (a) may be paid in advance or by way 
of reimbursement, and at such intervals as the Surgeon General may 
find necessary; and with appropriate adjustments on account of over-
payments or underpayments previously made." 
(b) Section 724 of such Act (containing definitions) is amended 
by striking out "As used in this part" and inserting in lieu thereof "As 
used in this part and parts C, E, and F " ; and section 740(a) of such 
Act is amended by striking out " (as defined in section 724)". 
42 u s e 293. 
Appropriation. 
42 u s e 293a. 
EXTENSION OF CONSTRUCTION PROGRAM FOR MEDICAL, DENTAL, AND OTHER 
H E A L T H PROFESSION 
SCHOOLS 
SEC 3. (a) Effective with respect to appropriations for fiscal years 
beginning after June 30, 1966, section 720 of such Act is amended to 
read as follows: 
"SEC. 720. 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, f or— 
"(1) grants to assist in the construction of new teaching facili-
ties for the training of physicians, pharmacists, optometrists, 
podiatrists, or professional public health personnel; 
"(2) grants to assist in the construction of new teaching facili-
ties for the training of dentists; and 
"(3) grants to assist in the replacement or rehabilitation of 
existing teaching facilities for the training of physicians, pharma-
cists, optometrists, podiatrists, professional public health person-
nel, or dentists. 
Sums so appropriated shall remain available until expended." 
(b) Subsection (a) of section 721 of such Act is amended to read 
as follows: 
79 STAT. ] 
PUBLIC LAW 89-290-OCT. 22, 1965 
1057 
"(a) The Surgeon General may from time to 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." 
(c) Section 721(c)(2)(D) of such Act is amended by inserting 
42 use 2
9
3
^
3 
immediately before the semicolon at the end thereof the following: 
", and the requirements of this clause (D) shall be in addition to the 
requirements of section 771(b) of this Act, where applicable". 
Ante. p. 1052. 
EXTENSIOX OF, AND IMPRO^'EMENTS IN, PROGRAM FOR STUDENT LOANS 
SEC. 4. (a) Subsection (b) (4) of section 740 of such Act is amended 
^2 use 294. 
by striking out "July 1, 1966" and inserting in lieu thereof "July 1, 
1969". 
(b) (1) Subsection (a) of section 741 of such Act is amended by 
^2 use 294a. 
striking out "may not exceed $2,000" and inserting in lieu thereof "may 
not exceed $2,500". 
(2) Section 741 of such Act is further amended (A) by redesig-
nating subsections "(f)", "(g)", and " ( h ) " thereof as subsections 
" (g) , " (h)", and " (i)", respectively, and (B) by adding immediately 
after subsection (e) thereof the following new subsection: 
"(f)" 
Where any person who obtained one or more loans from a 
loan fund established under this part— 
"(1) engages in the practice of medicine, dentistry, optometry, 
or osteopathy in an area in a State determined by the appropriate 
State health authority, in accordance with regulations provided 
by the Secretary, to have a shortage of and need for physicians, 
optometrists or dentists; and 
"(2) the appropriate State health authority certifies to the 
Secretary of Health, Education, and Welfare in such form and at 
such times as the Secretary may prescribe that such practice 
helps to meet the shortage of and need for physicians, optome-
trists or dentists in the area where the practice occurs; then 10 
per centum of the total of such loans, plus accrued interest on 
such amount, which are unpaid as of the date that such practice 
begins, shall be canceled thereafter for each year of such prac-
tice, up to a total of 50 per centum of such total, plus accrued 
interest thereon." 
(c) Subsection (a) of section 742 of such Act is amended (1) by 
42 use 294b. 
inserting "(other than section 744)" after "to carry out this part", 
and (2) by striking out that part of the first sentence that follows 
"June 30, 1966," and inserting in lieu thereof the following: "and 
$25,000,000 each for the fiscal year ending June 30, 1967, and the two 
succeeding fiscal years. There are further authorized to be appro-
priated to the Secretary such sums for the fiscal year ending June 
30, 1970, and each of the two succeeding fiscal years as may be neces-
sary to enable students who have received a loan under this part for 
any academic year ending before July 1, 1969, to continue or com-
plete their education." 
(d) Section 743 of such Act is amended by striking out "1969" 
42 use 294c. 
wherever it appears therein and inserting in lieu thereof "1972". 
(e) Section 744 of such Act is amended by adding at the end thereof 
'^^ ^^^ ^^'^'^• 
the following new sentences: "There are hereby authorized to be 
appropriated such sums as may be necessary to carry out the purposes 
of this section, but not to exceed a total of $1,500,000. Loans made by 
the Surgeon General under this section shall mature within such 
42 u s e 294a. 
1058 
PUBLIC LAW 89-290-OCT. 22, 1965 
[79 STAT. 
period as may be determined by the Surgeon General to be appropriate 
m each case, but not exceeding fifteen years." 
42 use 294 
(f)(1) Subsection (a) of section 740 of such Act is amended by 
inserting "pharmacy, podiatry," immediately after "dentistry,". 
(2) Subsection (b) (4) of section 740 of such Act is amended by 
inserting immediately after "doctor of osteopathy," the following: 
"bachelor of science in pharmacy or doctor of pharmacy, doctor of 
podiatry or doctor of surgical chiropody,". 
(3) Subsection (b) of section 741 of such Act is amended by insert-
ing immediately after "doctor of osteopathy," the following: "oachelor 
of science in pharmacy or doctor of pharmacy, doctor of podiatry or 
doctor of surgical chiropody,". 
(4) Subsection (c) of such section 741 is amended by inserting 
"pharmacy, podiatry," immediately after "dentistry,". 
(5) The amendments made by paragraphs (1), (2), (3), and (4) of 
this subsection shall only be effective with respect to periods beginning 
on or after July 1,1966. 
(^) (1) Subsection (e) of section 741 of such Act is amended by 
adding at the end thereof the following sentence: "Notwithstanding 
the foregoing provisions of this subsection, the rate of interest deter-
mined in accordance with such provisions for the first loan obtained 
by a student from a loan fund established under this part shall also 
apply to any subsequent loan to such student from such fund during 
his course of study." 
42 use 2
9
V
b 
(^) Paragraph (5) of section 823(b) of such Act is amended by 
inserting immediately before the semicolon at the end thereof a colon 
and the following: ^''Provided^ That notwithstanding the foregoing 
provisions of this paragraph, the rate of interest determined in accord-
ance with such proAdsions for the first loan obtained by a student from 
a loan fund established under this part shall also apply to any subse-
quent loan to such student from such fund during his course oi study". 
Effective date. 
Interest rate. 
77 Stat. 165. 
42 use 293a. 
TECHNICAL AMENDMENTS 
SEC. 5. (a) Clause (B) of section 721(b) (1) of such Act (relating 
to the accreditation of new schools of medicine, etc.) is amended by 
(1) striking out", upon completion of such facility," and (2) inserting 
the following after "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." 
42 use" 298b. 
(^) Section 843(f) of such Act (relating to accreditation of new 
schools of nursing), is amended (1) by striking out "any program 
of nurse education means a program accredited by a recognized body 
or bodies approved for such purpose by the Commissioner of Educa-
tion" and inserting in lieu thereof the following: "any program of 
nurse education means a program accredited by a recognized body or 
bodies approved for such purpose by the Commissioner of Education, 
or a program accredited for the purpose of this Act by the Commis-
sioner of Education", and (2) by striking out "new school" and the 
remainder of such clause and inserting in lieu thereof the following: 
"new school (which shall include a school that has not had a sufficient 
period of operation to be eligible for accreditation), (A) upon com-
pletion of such project and other construction projects (if any) then 
under construction or planned and to be commenced within a reason-
able time, or (B) if later, then prior to the beginning of the first 
academic year following the normal graduation date of the first enter-
ing class in such school;". 
Approved October 22, 1965.