An Act to amend the Public Health Service Act to increase the opportunities for training professional nursing personnel, and for other purposes
PL 88-581 (H.R.11241), enacted 09/04/1964

908 
PUBLIC LAW 88-580-SEPT. 3, 1964 
[78 STAT. 
Public Law 88-580 
September 3, 1964 
-^^ ACT 
To authorize the mint to inscribe the figure 1964 on all coins minted until ade-
quate supplies of coins are available. 
[S. 2950] 
Be it enacted hy the Senate and House of Representatives 
of the 
oifc^ohii"^'^"^*^"" ^''^^t^d States of^ America in Congress assemoled, That, notwithstand-
ing section 3517 of the Kevised Statutes (31 U.S.C. 324), all coins 
minted from the date of enactment of this Act until July 1 or January 
1, whichever date first occurs after the date on which the Secretary of 
the Treasury determines that adequate supplies of coins are available, 
shall be inscribed with the figure "1964" in lieu of the year of the 
coinage. 
SEC. 2. The requirement of section 3550 of the Revised Statutes 
(31 U.S.C. 366) that the obverse working dies at each mint shall be 
destroyed at the end of each calendar year shall not be applicable 
during the period provided for in section 1 of this Act. 
Approved September 3, 1964. 
Public Law 88-581 
September 4, 1964 
AN ACT 
IJH.R. 11241] 
rpQ 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 
Nurse Training 
United Statcs of America in Congress assembled, That this Act may 
be cited as the "Nurse Training Act of 1964". 
58 s.at. 682. 
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 
u 
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 replace-
78 STAT. ] 
PUBLIC LAW 88-581-SEPT. 4, 1964 
909 
ment 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 oy reasonable 
assurances that (A) for not less than twenty years after comple-
tion 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 con-
structed, and (D) in the case of an application for a grant for 
construction to expand the training capacity of a school of nurs-
ing, 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 con-
struction 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 nurs-
ing, or (B) in the case of an application for a grant for replace-
ment or rehabilitation of existing facilities, such application is 
for aid in construction which will replace or rehabilitate facilities 
910 
PUBLIC LAW 88-581-SEPT. 4, 1964 
[78 STAT. 
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 regu-
lations relating to minimum standards of construction and equip-
ment; and 
"(5) the application contains or is supported by adequate as-
surance 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 pre-
vailing on similar construction in the locality as determined by 
the Secretary of Labor in accordance with the Davis-Bacon Act, 
^^49stat.^^iou; 
^s 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 Reorganiza-
5 use 133Z.15 
tion Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267), and 
"°63"stat. 108. 
section 2 of the Act of June 13,1934, as amended (40 U.S.C. 276c). 
Before approving or disapproving an application for a construction 
project under this part, the Surgeon General shall secure the advice of 
the National Advisory Council on Nurse Training established by sec-
tion 841 (hereinafter in this part referred to as the 'council'). 
"(c) In considering applications for grants, the Council and the 
Surgeon General shall take into account— 
" (1) (A) in the case of a project for a new school or for expan-
sion of the facilities of an existing school, the relative effectiveness 
of the proposed facilities in expanding the capacity for the train-
ing of first-year students of nursing in the field involved and in 
promoting an equitable geographical distribution of opportuni-
ties for such training (giving due consideration to population, 
relative unavailability of nurses of the kind to be trained by such 
school, and available resources in various areas of the Nation for 
training such nurses) ; or 
"(B) in the case of a project for replacement or rehabilitation 
of existing facilities of a school, the relative need for such replace-
ment or rehabilitation to prevent curtailment of the school's en-
rollment or deterioration of the quality of the training provided 
by the school, and the relative size of any such curtailment and its 
effect on the geographical distribution of opportunities for train-
ing in the field of nursing involved (giving consideration to the 
factors mentioned above in paragraph ( A ) ) ; and 
" (2) in the case of an applicant in a State which has in existence 
a State or local area agency involved with planning for nurse 
training facilities, or which participates in a regional or other 
interstate agency involved with planning for nurse training facili-
ties, the relationship of the application to the construction or 
training program which is being developed by such agency or 
agencies and, if such agency or agencies have reviewed such appli-
cation, any comment thereon submitted by them. 
78 STAT. ] 
PUBLIC LAW 88-581-SEPT. 4, 1964 
911 
'AMOUNT OF CONSTRUCTION GRANT: PAYMENTS 
«/ 
"SEC. 803. (a) The amount of any grant for a construction project 
under this part shall be such amount as the Surgeon General determines 
to be appropriate after obtaining the advice of the Council; except that 
(A) in the case of a grant for a project for a new school, and in the 
case of a grant for a project for new facilities for an existing school 
in cases where such facilities are of particular importance in providing 
a major expansion of training capacity, as determined in accordance 
with regulations, such amount may not exceed 66% per centum of the 
necessary cost of construction, as determined by the Surgeon General, 
of such project; and (B) in the case of any other grant, such amount 
may not exceed 50 per centum of the necessary cost of construction, 
as so determined, of the project with respect to which the grant is 
made. 
"(b) Upon approval of any application for a grant for a construction 
project under this part, the Surgeon General shall reserve, from any 
appropriation available therefor, the amount of such grant as de-
termined under subsection (a); the amount so reserved may be paid 
in advance or by way of reimbursement, and in such installments con-
sistent with construction progress, as the Surgeon General may de-
termine. 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 such 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. 804. If, within twenty years after completion of any construc-
tion 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 private school, or 
" (b) the facility shall cease to be used for the training purposes 
for which it was constructed (unless the Surgeon General de-
termines, in accordance with regulations, that there is good cause 
for releasing the applicant or other owner from the obligation to 
do so), or 
"(c) the facility is used for sectarian instruction or as a place 
for religious worship, 
the United States shall oe 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. 
912 
PUBLIC LAW 88-581-SEPT. 4, 1964 
[78 STAT. 
"IMPROVEMENT I N NURSE TRAINING 
Appropriation. 
"SEC. 805. (a) There are authorized to be appropriated for grants 
to public and nonprofit private diploma, collegiate and associate degree 
schools of nursing to assist them in meeting the additional costs of 
projects of limited duration which will strengthen, improve, or expand 
their programs to teach and train nurses, $2,000,000 for the fiscal year 
ending June 30, 1965, $3,000,000 for the fiscal year ending June 30, 
1966, $4,000,000 for the fiscal year ending June 30, 1967, and each of 
the next two fiscal years, and such sums for each of the next four fiscal 
years as may be necessary to complete projects for which a grant was 
made under this section from funds appropriated for the fiscal year 
ending June 30, 1969, or any preceding year. 
"(b) In determining whether to approve applications for grants 
described in subsection (a), the order in which to approve such ap-
plications, and the amount of the grants, the Surgeon General shall give 
consideration to the extent to which such projects will contribute to 
general improvement in the teaching and training of nurses of the kind 
involved, the extent to which they will aid m attaining a wider 
geographical distribution throughout the United States of high quality 
schools of the type involved, and the relative need in the area in which 
the school is situated and surrounding areas for nurses of the type 
trained in such school. 
"(c) No grant may be made under subsection (a) of this section 
for any project for any period after grants have been made with respect 
to such project for five fiscal years. 
"PARTIAL REIMBURSEMENT TO DIPLOMA SCHOOLS FOR COSTS A'PFRIBUTABLE 
TO THIS Tin.E 
"SEC. 806. (a) In order to prevent further attrition and promote the 
development of public and nonprofit private diploma schools of nurs-
ing, there are hereby authorized to be appropriated $4,000,000 for the 
fiscal year ending June 30, 1965, $7,000,000 for the fiscal year ending 
June 30,1966, and $10,000,000 for the fiscal year ending June 30, 1967, 
and each of the two succeeding fiscal years, to defray a portion of the 
cost of training students of nursing whose enrollment in such schools 
can be reasonably attributed to the provisions of this title. 
"(b) From the amounts appropriated pursuant to subsection (a), 
the Surgeon General shall pay to each public or nonprofit private 
diploma school of nursing for each fiscal year in the five-year period 
beginning on July 1,1964, and ending June 30,1969, an amount equal 
to the product of $250 and the sum of the number of federally-spon-
sored students in such school during such year and the number by 
which the full-time enrollment in such school during such year exceeds 
the average of the full-time enrollments in such school during the 
fiscal years ending June 30, 1962, June 30, 1963, and June 30, 1964, 
except that no such diploma school of nursing shall for any fiscal year 
receive an amount in excess of the product of $100 and the full-time 
enrollment in such school during such year. If the amounts appro-
priated pursuant to subsection (a) for any fiscal year are inadequate 
to make the grants provided for in the preceding sentence, the amount 
of the grant to each such diploma school of nursing shall be reduced 
so that it shall bear the same ratio to such amounts appropriated for 
such year as the amount such school would be entitled to under the 
preceding sentence bears to the aggregate amount which all diploma 
schools of nursing would be entitled to for such year under such 
sentence. 
78 STAT. ] 
PUBUC LAW 88-581-SEPT. 4, 1%4 
913 
" (c) For the purposes of this section— 
"(1) the term 'federally-sponsored student' means any student ^ "nror^e'd^fu-
enroUed in a public or nonprofit private diploma school of nurs- dent." 
ing on a full-time basis who has received for that year a loan of 
$100 or more from a loan fund established pursuant to section 
822; and 
"(2) the full-time enrollment in any school and the number of 
federally-sponsored students in any school shall be determined as 
of February 15 of each fiscal year. 
"PART B—ASSISTANCE TO NURSING STUDENTS 
"TRAINEESHIPS FOR ADVANCED TRAINING OF 
PROFESSIONAL NURSES 
"SEC. 821. (a) There are authorized to be appropriated $8,000,000 
for the fiscal year ending June 30, 1965, $9,000,000 for the fiscal year 
ending June 30, 1966, $10,000,000 for the fiscal year ending June 30, 
1967, $11,000,000 for the fiscal year ending June 30, 1968, and 
$12,000,000 for the fiscal year ending June 30, 1969, to cover the cost 
of traineeships for the training of professional nurses to teach in the 
various fields of nurse training (including practical nurse training), 
to serve in administrative or supervisory capacities, or to serve in other 
professional nursing specialties determined by the Surgeon General 
to require advanced training. 
"(b) Traineeships under this section shall be awarded by the Sur-
geon General through grants to public or nonprofit private institutions 
providing the training. 
"(c) Payments to institutions under this section may be made in 
advance or by way of reimbursement, and at such intervals and on such 
conditions, as the Surgeon General finds necessary. 
Such payments 
may be used only for traineeships and shall be limited to such amounts 
as the Surgeon General finds necessary to cover the costs of tuition and 
fees, and a stipend and allowances (including travel and subsistence 
expenses) for the trainees. 
Appropriation. 
"LOAN AGREEMENTS 
"SEC. 822. (a) The Secretary of Health, Education, and Welfare is 
authorized to enter into an agreement for the establishment and opera-
tion of a student loan fund in accordance with this part with any public 
or nonprofit private school of nursing which is located in a State. 
"(b) Each agreement entered into under this section shall— 
"(1) provide for establishment of a student loan fund by the 
school; 
" (2) provide for deposit in the fund of (A) the Federal capital 
contributions paid under this part to the school by the Secretary, 
(B) an additional amount from other sources equal to not less than 
one-ninth of such Federal capital contributions, (C) collections of 
principal and interest on loans made from the fund, and (D) any 
other earning of the fund; 
"(3) provide that the fund shall be used only for loans to stu-
dents of the school in 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 baccalaureate or associate degree in nursing or an equivalent 
degree or a diploma in nursing, or to a graduate degree in nursing, 
and that while the agreement remains in effect no such student who 
has attended such school before July 1, 1969, shall receive a loan 
914 
PUBLIC LAW 88-581-SEPT. 4, 1964 
[78 STAT. 
from a loan fund established under section 204 of the National 
20 us^c i2t' 
Defense Education Act of 1958; and 
"(5) contain such other provisions as are necessary to protect 
the financial interests of the United States. 
u 
LOAN PROVISIONS 
"SEC. 823. (a) The total of the loans for any academic year (or its 
equivalent, as determined under regulations of the Secretary) made by 
schools of nursing from loan funds established pursuant to agreements 
under this part may not exceed $1,000 in the case of any student. 
In 
the granting of such loans, a school shall give preference to persons 
who enter as first-year students after enactment of this title. 
"(b) Loans from any such student loan fund by any school shall be 
made on such terms and conditions as the school may determine; 
subject, however, to such conditions, limitations, and requirements as 
the Secretary of Health, Education, and Welfare may prescribe (by 
regulation or in the agreement with the school) with a view to pre-
venting impairment of the capital of such fund to the maximum 
extent practicable in the light of the objective of enabling the student 
to complete his course of studv; and except that— 
"(1) such a loan may be made only to a student who (A) is in 
need of the amount oi the loan to pursue a full-time course of 
study at the school leading to a baccalaureate or associate degree 
in nursing or an equivalent degree, or a diploma in nursing, or 
a graduate degree in nursing, and (B) is capable, in the opinion 
of the school, of maintaining good standing in such course of 
study; 
"(2) such a loan 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 one year after 
the student ceases to pursue a full-time course of study at a 
school of nursing, except that (A) interest shall not accrue on 
any such loan, and periodic installments need not be paid, during 
any period during which the borrower is pursuing a full-time 
course of study at a collegiate school of nursing leading to a 
baccalaureate degree in nursing or an equivalent degree, or to a 
graduate degree in nursing, and (B) any such period shall not be 
included in determining such ten-year period; 
"(3) not to exceed 50 per centum of any. such loan (plus inter-
est) shall be canceled for full-time employment as a professional 
nurse (including teaching in any of the fields of nurse training 
and service as an administrator, supervisor, or consultant in any 
of the fields of nursing) in any public or nonprofit private in-
stitution or agency, at the rate of 10 per centum of the amount 
of such loan plus interest thereon, which was unpaid on the 
first day of such service, for each complete year of such service; 
"(4) the liability to repay the unpaid balance of such 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; 
"(5) such a loan 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 is the 
ratl^'°'"^ ^^"^"'^^ 
greater; and for purposes of this paragraph, 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, 
78 STAT. ] 
PUBLIC LAW 88-581-SEPT. 4, 1964 
915 
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 hj rounding oft' 
such estimated average annual yield to the next higher multiple 
of one-eighth of 1 per centum; 
"(6) such a loan shall be made without security or endorse-
ment, 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; 
"(7) no note or other evidence of any such loan may be trans-
ferred 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. 
"(c) Where all or any part of a loan, or interest, is canceled under 
this section, the Secretary of Health, Education, and Welfare shall 
pay to the school an amount equal to the school's proportionate share 
of the canceled portion, as determined by the Secretary. 
"(d) Any loan for any year by a school from a student loan fund 
established pursuant to an agreement under this part shall be made in 
such installments as may be provided in regulations of the Secretary 
or such agreement and, upon notice to the Secretary by the school 
that any recipient of a loan is failing to maintain satisfactory stand-
ing, any or all further installments of his loan shall be withheld, as 
may be appropriate. 
"(e) An agreement under this part with any school shall include 
provisions designed to make loans from the student loan fund estab-
lished thereunder reasonably available (to the extent of the available 
funds in such fund) to all eligible students in the school in need 
thereof. 
'^AUTHORIZATION OF APPROPRIATIONS FOR LOANS 
"SEC. 824. There are authorized to be appropriated to the Secretary 
of Health, Education, and Welfare for Federal capital contributions 
to student loan funds pursuant to section 822(b)(2)(A) $3,100,000 
for the fiscal year ending June 30, 1965, $8,900,000 for the fiscal year 
ending June 30, 1966, $16,800,000 for the fiscal year ending June 30, 
1967, $25,300,000 for the fiscal year ending June 30, 1968, $30,900,000 
for the fiscal year ending June 30, 1969, and such sums for the fiscal 
year ending June 30,1970, 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, 1969, to continue or complete 
their education. 
Sums appropriated pursuant to this section for any 
fiscal year shall be available, in accordance with agreements under 
this part, for Federal capital contributions to schools with which such 
agreements have been made, to be used, together with deposits in 
such fund pursuant to section 822(b) (2) (B), for establishment and 
maintenance of student loan funds. 
" A I X O T M E N T S A N D P A Y M E N T S O F FEDERAL CAPITAL CONTRIBUTIONS 
"SEC. 825. (a) Sums appropriated pursuant to section 824 for any 
fiscal year shall be allotted by the Secretary of Health, Education, 
and Welfare among the States as follows: (1) He shall allot to esuch. 
State an amount which bears the same ratio to 50 per centum of such 
sums as the number of students who graduated from secondary schools 
916 
PUBLIC LAW 88-581-SEPT. 4, 1964 
[78 STAT. 
in such State during the preceding fiscal year bears to the total number 
of students who graduated from secondary schools in all of the States 
during such year; and (2) he shall also allot to each State an amount 
which bears the same ratio to 50 per centum of such sums as the num-
ber of students who will be enrolled full time in public or nonprofit 
private schools of nursing in such State bears to the total number of 
students who will be enrolled full time in all such schools of nursing 
in all of the States. 
The sum of such two amounts for each State 
shall be its allotment. 
For purposes of allotments under this section, 
a school of nursing also includes any school with which the Secretary 
has, prior to the time the allotment is made, entered into an agreement 
for establishment of a student loan fund under this part. 
"(b) (1) The Secretary shall from time to time set dates by which 
schools of nursing with which he has in effect agreements under this 
part must file applications for Federal capital contributions to their 
loan funds pursuant to section 822(b) (2) (A). 
"(2) If the total of the amounts requested for any fiscal year in 
such applications which are made by schools in a State exceeds the 
amount of the allotment of such State for that fiscal year, the amounts 
to be paid 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 amount of the allotment of such State as the number of students 
who will be enrolled full time in such school during such fiscal year 
bears to the total number of students who will be enrolled full time 
in all such schools in such State during such year. Amounts remain-
ing after allotment under the preceding sentence shall be redistributed 
in accordance with clause (B) of such sentence among schools which 
in their applications requested more than the amounts so paid to 
their loan funds, but with such adjustments as may be necessary to 
prevent the total paid to any such school's loan fund from exceeding 
the total so requested by it. 
If the total of the amounts requested for 
any fiscal year in such applications which are made by schools in a 
State is less than the amount of the allotment of such State for that 
fiscal year, the Secretary may reallot the remaining amount from 
time to time, on such date or dates as he may fix, to other States in 
proportion to the original allotments to such States under subsection 
(a) for such year. For the purpose of this section, the number of 
students who graduated from secondary schools in each State during 
a fiscal year and the number of students who will be enrolled full 
time in schools of nursing in each State shall be estimated by the 
Secretary of Health, Education, and Welfare on the basis of the best 
information available to him; and in making such estimates, the num-
ber of students enrolled full time in any collegiate school of nursing 
shall be deemed to be twice their actual number. 
"(c) The Federal capital contributions to a loan fund of a school 
under this part shall be paid to it from time to time in such install-
ments as the Secretary determines will not result in unnecessary 
accumulations in the loan fund at such school. 
"DISTRIBUTION or ASSETS FROM LOAN FUNDS 
"SEC. 826. (a) After June 30, 1972, and not later than Septem-
ber 30, 1972, 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 of Health, Education, and Welfare shall first 
be paid an amount which bears the same ratio to the balance in such 
fund at the close of June 30,1972, as the total amount of the Federal 
capital contributions to such fund by the Secretary pursuant to section 
78 STAT. ] 
PUBLIC LAW 88-581-SEPT. 4, 1964 
917 
822(b) (2) (A) bears to the total amount in such fund derived from 
such Federal capital contributions and from funds deposited therein 
pursuant to section 822(b) (2) (B). 
"(2^ The remainder of such balance shall be paid to the school. 
" (b) After September 30,1972, each school with which the Secretary 
has made an agreement under this part shall pay to the Secretaiy, not 
less often than-quarterly, the same proportionate share of amounts 
received by the school after June 30, 1972, 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 sub-
section (a). 
"LOANS TO SCHOOLS 
"SEC. 827. (a) 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 822(b) (2) (B) m a loan fund established pursuant to such 
agreement. 
Such loan may be made only if the school shows it is 
imable 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. 
"(b) There are authorized to be appropriated such sums as may be 
necessary^ to carry out this section. 
" (c) Loans by the Secretary under this section shall mature within 
such period as the Secretary determines to be appropriate in each 
case, but not exceeding fifteen years. 
(( 
ADMINISTRATIVE PROVISIONS 
"SEC. 828. 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. 
"PART C—GENERAL 
Loan maturity. 
" N A T I O N A L ADVISORY C O U N C I L O N N U R S E TRAINING; REVIEW COMMITTEE 
"SEC. 841. (a) (1) There is hereby established a National Advisory 
Council on Nurse Training, consisting of the Surgeon General, who 
shall be Chairman, and the Commissioner of Education, both of whom 
shall be ex officio members, and sixteen members appointed by the 
Secretary without regard to the civil service laws. Four of the ap-
pointed members shall be selected from the general public and twelve 
shall be selected from among leading authorities in the various fields 
of nursing, higher, and secondary education, and from representatives 
of hospitals and other institutions and organizations which provide 
nursing services. 
" (2) The Council shall advise the Surgeon General in the prepara-
tion of general regulations and with respect to policy matters arising 
in the administration of this title, and m the review of applications 
for construction projects under part A and of applications under 
section 805. 
"(b) The Secretary of Health, Education, and Welfare shall, prior 
to July 1, 1967, and without regard to the civil service laws, appoint 
a committee, consisting of members of the public, of various groups 
particularly interested in or expert in matters relating to education 
of various types of nurses, for the purpose of reviewing the programs 
Establishment. 
Program review. 
Appointment of 
committee. 
918 
PUBLIC LAW 88-581-SEPT. 4, 1964 
[78 STAT. 
authorized by this title and making recommendations with respect 
to continuation, extension, and modification of any of such programs. 
^^Report to Secre- ^ report of the fiudiugs and recommendations of such committee shall 
be submitted to the Secretary not later than November 1, 1967, after 
Report to Con- which date such committee shall cease to exist. The Secretary shall 
gress. 
submit such report, together with his comments and recommendations 
thereon, to the Congress on or before January 1, 1968. 
"(c) Appointed members of the Council or the review committee 
who are not regular full-time employees of the United States shall, 
while attending conferences or meetings thereof, be entitled to receive 
compensation at a rate to be fixed by the Secretary but not exceeding 
$75 per diem, including travel time, and while away from their homes 
or regular places of business they may be allowed travel expenses, 
including per diem in lieu of subsistence, as authorized by section 5 
75^sta5r339°34o. ^^ ^^^ Administrative Expenses Act of 1946 (5 U.S.C. 73b-2) for per-
sons in the Government service employed intermittently. 
"NONINTERFERENCE WITH ADMINISTRATION OF INSTITUTIONS 
"SEC. 842. Nothing contained in this title shall be construed as au-
thorizing any department, agency, officer, or employee of the United 
States to exercise any direction, supervision, or control over, or im-
pose any requirement or condition with respect to, the person-
nel, curriculum, methods of instruction, or administration of any 
institution. 
"DEFINITIONS 
"SEC. 843. For purposes of this title— 
"(a) The term 'State' means a State, the Commonwealth of Puerto 
Rico, the District of Columbia, the Canal Zone, Guam, American 
Samoa, or the Virgin Islands. 
" (b) The term 'school of nursing' means a collegiate, associate de-
gree, or diploma school of nursing. 
"(c) The term 'collegiate school of nursing' means a department, 
division, or other administrative unit in a college or university which 
provides primarily or exclusively an accredited program of education 
m professional nursing and allied subjects leading to the degree of 
bachelor of arts, bachelor of science, bachelor of nursing, or to an 
equivalent degree, or to a graduate degree in nursing. 
"(d) The term 'associate degree school of nursing' means a depart-
ment, division, or other administrative unit in a junior college, com-
munity college, college, or university which provides primarily or 
exclusively an accredited two-year program of education in profes-
sional nursing and allied subjects leading to an associate degree in 
nursing or to an equivalent degree. 
" (e) The term 'diploma school of nursing' means a school affiliated 
with a hospital or university, or an independent school, which pro-
vides primarily or exclusively an accredited program of education in 
professional nursing and allied subjects leading to a diploma or to 
equivalent indicia that 
such program 
has been 
satisfactorily 
completed. 
"(f) The term 'accredited' when applied to any program of nurse 
education means a program accredited by a recognized body or bodies 
approved for such purpose by the Commissioner of Education, except 
that a program which is not, at the time of the application under 
this title by the school which provides or will provide such program, 
eligible for accreditation by such a recognized body or bodies, shall 
be deemed accredited for purposes of this title in the following cases 
if the Commissioner of Education finds, after consultation with the 
78 STAT. ] 
PUBLIC LAW 88-581-SEPT. 4, 1964 
919 
appropriate accreditation body or bodies, that there is reasonable as-
surance that the program will meet the accreditation standards of 
such body or bodies (1) in the case of an applicant under part A for 
a grant for a project for construction of a new school, prior to or 
upon completion of the facility with respect to which the application 
is filed; (2) in the case of a school applymg for a grant under section 
805 for a project to strengthen, improve, or expand its programs to 
teach and train nurses, prior to or upon completion of the project 
with respect to which the application is filed; and (3) in the case of 
a school seeking an agreement under part B for establishment of a 
student loan fund, prior to the beginning of the academic year fol-
lowing the normal graduation date of students who are in their first 
year of instruction at such school during the fiscal year in which the 
agreement with such school is made under part B; except that the 
provisions of this clause (3) shall not apply for purposes of section 
825. 
"(g) The term 'nonprofit' as applied to any school, agency, organi-
zation, or institution means one which is a corporation or association, 
or is owned and operated by one or more corporations or associations, 
no part of the net earnings of which inures, or may lawfully inure, 
to the benefit of any private shareholder or individual. 
"(h) The term 'secondary school' means a school which provides 
secondary education, as determined under State law except that it 
d oes not include any education provided beyond grade 12. 
"(i) The terms 'construction' and 'cost of construction' include 
(1) the construction of new buildings, and the acquisition, expansion, 
remodeling, replacement, and alteration of existing buildings, includ-
ing architects' fees, but not including the cost of acquisition of land 
(except in the case of acquisition of an existing building), off-site 
improvements, 
living 
quarters, 
or 
patient-care 
facilities, 
and 
(2) equipping new buildings and existing buildings, whether or not 
acquired, expanded, remodeled, or altered." 
SEC. 3. (a) Effective with respect to appropriations for fiscal years 
beginning after June 30,1965, section 720 of the Public Health Service 
Act is amended by striking out "nurses," wherever it appears therein. 
^^ ^^^ ^
g
^
g
"
*
-
(b) Effective with respect to applications for grants from appro-
priations for fiscal years beginning after June 30, 1965, subsections 
(b), (c), and (d) of section 721 of such Act are amended by striking 
"
^
^ use 293a. 
out "nursing," and "nurses," wherever they appear therein, and sec-
tion 625(c) of such Act is amended by striking out "nurses' home and 
^"**' P- '*^°-
training facilities" and inserting in lieu thereof "nurses' home facili-
ties", and section 603(a) of such Act is amended by striking out clause 
"*"'*' ^' "^^ ^• 
(4), by striking out "and" following the semicolon at the end of 
clause (3), and by inserting "and" after the semicolon at the end 
of clause (2). 
(c) Effective with respect to appointments to the National Ad-
visory Council on Education for Health Professions made after 
enactment of this Act, section 725(a) of such Act is amended by 
^^ ?*^!.- ^^^• 
striking out "nursing,". 
^ 
42 use 293e. 
(d) Effective July 1, 1965, section 728 of such Act is amended by 
^2 use 293h. 
striking out "nursing,". 
SEC. 4. (a) Section 1 of the Public Health Service Act is amended 
to read as follows: 
"SECTION 1. Titles I to VIII, incl«sive, of this Act may be cited 
as the 'Public Health Service Act'." 
(b) The Act of July 1, 1944 (58 Stat. 682), as amended, is further 
amended by renumbering title V I I I (as in effect prior to the enact- 
'^0 s*^*- 721. 
ment of this Act) as title IX, and by renumbering sections 801 through 
814 (as in effect prior to the enactment of this Act), and references 
thereto, as sections 901 through 914, respectively. 
Approved September 4, 1964.