An Act to amend the Act of August 1,1939, to provide that professional nurses shall be registered as staff oflScers in the United States Merchant Marine, and for other purposes
PL 88-128 (H.R.5781), enacted 09/23/1963

164 
PUBLIC LAW 88-128-SEPT. 23, 1963 
[77 STAT. 
Public Law 88-128 
September23, 1963 
^ N ACT 
—[H- R- 5781] 
To amend the Act of August 1,1939, to provide that professional nurses shall be 
registered as staff oflScers in the United States Merchant Marine, and for 
other purposes. 
Be it enmted hy the Senate and House of Representatives 
of the 
V. s. Merchant 
United States of America in Congress assembled^ That (a) the first 
Marine. 
SGiitence of the Act entitled "An Act to provide for the registry of 
tritrJn*^' "^^^'^ 
pursers and surgeons as staff officers on vessels of the United States, 
and for other purposes", approved August 1, 1939 (46 U.S.C., sec. 
242), is amended by striking out "and (5) surgeon" and inserting in 
lieu thereof "(5) surgeon, and (6) professional nurse". 
53 Stat. 1146. 
(b) Sectiou 2 of such Act of August 1,1939, is amended by striking 
46 use 243. 
out the last sentence and inserting in lieu thereof the following: 
"Applicants for registry as surgeon or professional nurse shall be 
required to possess a valid license as physician and surgeon or regis-
tered nurse, respectively, issued under the authority of a State or 
territory of the United States, the Commonwealth of Puerto Rico, or 
the District of Columbia." 
Approved September 23, 1963. 
Public Law 88-129 
September 24, 1963 
AN ACT 
[H. R. 12] 
To increase the opportunities for training of physicians, dentists, and professional 
public health personnel, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
Health Profes- 
United States of America in Congress assemhled^ That this Act may 
sions Educational \^^ cltcd as tliB "Health Professions Educational Assistance Act of 
1963". 
Assistance Act of 
1963 
292i 
GRANTS FOR CONSTRUCTION OF MEDICAL, DENTAL, PHARSIACEUTICAL, 
OPTOMETRIC, PODIATRIC, NURSING, OSTEOPATHIC, AND PUBLIC HEALTH 
TEACHING FACILITIES 
SEC. 2. (a) Title VII of the Public Health Service Act (42 U.S.C. 
70 Stat 717- 
chap. 6A) is amended bv inserting "AND TEACHING" after 
721. 
"RESEARCH" in the heading thereof, by inserting "AND TRAIN-
42 use 292- 
ING OF PROFESSIONAL 
H E A L T H 
PERSONNEL" 
after 
"FACILITIES" in such heading, and by inserting immediately below 
such heading "PART A—GRANTS FOR CONSTRUCTION OF HEALTH 
RESEARCH FACILITIES", and by changing the words "this title" 
wherever they appear in such title to read this part". 
(b) Such title is further amended by adding at the end thereof the 
following: 
"PART B—GRANTS FOR CONSTRUCTION OF TEACHING FACILITIES FOR 
MEDICAL, DENTAL, AND OTHER HEALTH PERSONNEL 
(( 
A U T H O R I Z A T I O N O F A P P R O P R I A T I O N S 
"SEC. 720. There are hereby authorized to be appropriated over a 
period of three fiscal years, beginning with the fiscal year ending June 
30, 1964, not to exceed the following amounts— 
"(1) $105,000,000 in the aggregate for grants to assist in the con-
struction of new teaching facilities for the training of physicians. 
77 STAT. ] 
PUBLIC LAW 88-129-SEPT. 24, 1963 
165 
pharmacists, optometrists, podiatrists, nurses, or professional 
gublic health personnel, of which not more than $15,000,000 may 
e available for grants before July 1, 1964, and not more than 
$60,000,000 in the aggregate may be available for grants before 
July 1,1965; 
"(2) $35,000,000 in the aggregate for grants to assist in the 
construction of new teaching facilities for me training of dentists, 
of which not more than $5,000,000 may be available for grants 
before July 1, 1964, and not more than $20,000,000 in the aggre-
gate may be available for grants before July 1,1965; and 
" (3) $35,000,000 in the ag^re^ate for replacement or rehabilita-
tion of existing teaching facilities for the training of physicians, 
pharmacists, optometrists, podiatrists, nurses, professional public 
health personnel, or dentists, of which not more than $5,000,000 
may be available for grants before July 1, 1964, and not more 
than $20,000,000 in the aggregate may be available for grants 
before July 1,1965. 
If and to the extent the Surgeon General determines such action will 
better carry out the objectives of this part, the limitations on the 
amounts available for grants before July 1,1964, under any paragraph 
of this section shall fe decreased and the limitation on the amount 
so available under any other paragraph of this section shall be cor-
respondingly increased; and the amounts appropriated for the fiscal 
year ending June 30, 1964, under each of such paragraphs shall be 
similarly adjusted by transfer between them. J n applying the dollar 
limitations of each of those paragraphs for the three-year period 
ending June 30,1966, any amount appropriated under any such para-
graph but transferred under the preceding sentence to the appropri-
ation under smother paragraph shall be deemed to have been 
appropriated only under such other paragraph. 
"APPROVAL or APPLICATIONS 
"SEC. 721. (a) No application for a grant under this part may be 
approved unless it is submitted to the Surgeon General prior to July 
1, 1965. 
"(b) (1) To be eligible to apply for a grant to assist in the con-
struction of any facility under this part, the applicant must be (A) 
a public or other nonprofit school of medicine, dentistry, osteopathy, 
pharmacy, optometry, podiatry, nursing, 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 })art, 
eligible for accreditation by such a recognized body or bodies, shall be 
deemed accredited for purposes of this part if the Commissioner of 
Education finds, after consultation with the appropriate accredita-
tion body or bodies, that there is reasonable assurance that the school 
will, upon completion of such facility, meet the accreditation standards 
of such body or bodies. 
"(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. 
eo stat. 1045. 
"(3) In the case of any application, whether filed by a school or, in 
'*2 use 29ih. 
the case of an affiliated hospital, by any other public or other nonprofit 
agency, for a ^ a n t under this part to assist m the construction of a 
facility which is a hospital as defined in section 631— 
42 use 2911. 
166 
PUBLIC LAW 88-129-SEPT. 24, 1963 
[77 STAT. 
"(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 
gortion of the project which the Surgeon General determines to 
e 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 
thereior is approved by the Surgeon General upon his determination 
that— 
"(1) the applicant meets the eligibility conditions set forth in 
subsection (b); 
"(2) the application contains or is supported by reasonable 
assurances that (A) for not less than ten years after completion 
of construction, the facility will be used for the purposes of the 
teaching for which it is to be constructed, (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 apj)lication for construction to expand the training 
capacity of an existing school of medicine, dentistry, osteopathy, 
pharmacy, optometry, podiatry, nursing, or public health, the 
first-year enrollment at such school during the first full school 
year after the completion of the construction and for each of 
the next nine school 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 from funds 
appropriated pursuant to clause (1) of section 720, such applica-
tion is for aid in the construction of a new school of medicine, 
osteopathy, pharmacy, optometry, podiatry, nursing, or public 
health, or construction which will expand the training capacity of 
an existing school of medicine, osteopathy, pharmacy, optometry, 
podiatry, nursing, or public health, (B) in the case of an applica-
tion for a grant from funds appropriated pursuant to clause (2) 
of such section, such application is for aid in the construction of 
a new school of dentistiy or construction which will expand the 
capacity of an existing school of dentistry, or (C) in the case of 
an application for a grant from funds appropriated pursuant to 
clause (3) of such section, such application is for aid in construc-
tion which will replace or rehabilitate facilities of, or used by, 
an existing school of medicine, dentistry, pharmacy, optometry, 
podiatry, nursing, osteopathy, or public health which are so 
obsolete as to require the school to curtail substantially either its 
enrollment or the quality of the training provided; 
291z. 
77 STAT. ] 
PUBLIC LAW 88-129-SEPT. 24, 1963 
167 
"(4) the plans and specifications are in accordance with regu-
lations relating to minimum standards of construction and equip-
ment; 
" (5) the application contains or is supported by adequate assur-
ance that any laborer or mechanic employed by any contractor 
or subcontractors 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 
49 stat. lo 11. 
Labor shall have, with respect to the labor standards specified in 
this paragraph, the authority and functions set forth in Reorga-
nization Plan Numbered 14 of 1960 (15 F.R. 3176; 64 Stat. 1267), 
s use i33z-
and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. is note. 
276c); and 
63 stat. los. 
" (6) if the application requests aid in construction of a facility 
which is a hospital or diagnostic or treatment center, as defined in 
section 631, an application with respect thereto has been filed 
eo stat. 1
0
4
1
5
. 
under title VI and has been denied thereunder because (A) the 
^2 use 2911. 
project has no or insufficient priority, or (B) funds are not avail- 104^*°* ^°^^' 
able for the project from the State's allotments under title VI. 
^42 use 291-
Before approving or disapproving an application under this part, 
the Surgeon General shall secure the advice of the National Advisory 
Council on Education for Health Professions established by section 
725 (hereinafter in this part referred to as the 'Council'). 
"(d) 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, or used by, an existing school, the relative 
effectiveness of the proposed facilities in expanding the capacity 
for the training of first-year students of medicine, dentistry, 
pharmacy, optometry, podiatry, nursing, or osteopathy (or, in 
the case of a two-year school which is expanding to a four-year 
school, expanding the capacity for four-year tra^ining of students 
in the field), or for the training of professional public health 
personnel, and in promoting an equitable geographical distribu-
tion of opportunities for such training (giving due consideration 
to population, available physicians, pharmacists, optometrists, 
podiatrists, nurses, dentists, or professional public health per-
sonnel, and available resources in various areas of the Nation for 
training such persons); or 
"(B) in the case of a project for replacement or rehabilitation 
of existing facilities of, or used by, a school, the relative need for 
such replacement or rehabilitation to prevent curtailment of the 
school's enrollment or deterioration of the quality of the training 
provided by the school, and the relative size of any such curtail-
ment and its effect on the geographical distribution of oppor-
tunities for training (giving consideration to the factors men-
tioned above in paragraph ( A ) ) ; and 
"(2) in the case of an applicant in a State which has in exist-
ence a State planning agency, or which participates in a regional 
or other interstate planning agency, described in section 728, the 
relationship of the application to the construction or training 
program which is being developed by such agency with respect 
to such State and, if such agency has reviewed such application, 
any comment thereon submitted by such agency. 
168 
PUBLIC LAW 88-129-SEPT. 24, 1963 
[77 STAT. 
"AMOUNT OF GRANT : PAYMENTS 
"SEC. 722. (a)(1) Except as provided in paragraph (2) of this 
subsection, the amount of any grant 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) m the case of a 
graiit for a project for a new school, and in the case of a grant for new 
facilities for an existing school in cases where such facilities are of 
particular importance m providing a major expansion of training 
capacity, as determined in accordance with regulations, such amount 
may not exceed 66% per centum of the necessar^'^ cost or construction, 
as determined by the Surgeon Genei'al, 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. 
"(2) The amount of any grant under this part for construction of 
a project with respect to a school of public health shall be such amount 
as the Surgeon General determines to be appropriate after obtaining 
the advice of the Council, and may not exceed 75 per centum of the 
necessary cost of construction, as determined by the Surgeon General, 
of such project. 
"(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 determmed under subsection 
(a); the amount so reserved may be paid in advance or by way of 
reimbursement, and in such installments consistent with construction 
progress, as the Surgeon General may determine. The Surgeon Gen-
eral'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. 723. 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 school or, in case the :^acility was an 
affiliated hospital, the applicant or other owner of the facility 
ceases to be a public or other nonprofit agency qualified to file an 
60 Stat. 1045. 
application under section 625, or 
42 use 29ih. 
a^Y)) the facility shall cease to be used for the teaching pur-
poses for which it was constructed (unless the Surgeon General 
determines, in accordance with regulations, that tliere is good 
cause for releasing the applicant or other owner from the obliga-
tion to do so), 
"(c) the facility is used for sectarian instruction or as a place 
for religious worship, 
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. 
77 STAT. ] 
PUBLIC LAW 88-129-SEPT. 24, 1963 
169 
"DEFINITIONS 
"SEC. 724. As used in this part— 
"(1) The terms 'construction' and 'cost of construction' include 
(A) the construction of new buildings, the expansion of existing build-
ings, and remodeling, replacement, renovation, major repair (to the 
extent permitted by regulations), or alteration of existing buildings, 
including architects' fees, but not including the cost of acquisition of 
land or oflfsite improvements, and (B) initial equipment of new 
buildings and of the expanded, remodeled, repaired, renovated, or 
altered part of existing buildings; but such term shall not include the 
construction or cost of construction of so much of any facility as is 
used or is to be used for sectarian instruction or as a place for religious 
worship; 
" (2) The term 'nonprofit school' means a school 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; 
"(^3) The term 'affiliated hospital' means a hospital, as defined in 
section 631, which is not owned oy, but is affiliated (to the extent and 
42 use 2911. 
in the manner determined in accordance with regulations) with, a 
school of medicine or school of osteopathy which meets the eligibility 
conditions set forth in section 721(b) (1); 
" (4) The terms 'school of medicine', 'school of dentistry', 'school of 
osteopathy', 'school of pharmacy', 'school of optometry', 'school of 
podiatry', and 'school of public health' mean a school which provides 
training leading, respectively, to a degree of doctor of medicine, a 
degree of doctor of dentistry or an equivalent degree, a degree of doctor 
of osteopathy, a degree of bachelor of science in pharmacy or doctor 
of pharmacy, a degree of doctor of optometry or an equivalent degree, a 
degree of doctor of podiatry or doctor of surgical chiropody, and a 
graduate degree in public health; and 
"(5) The term 'school of nursing' means a department, school, divi-
sion, or other administrative unit, in a college or university, which 
provides, primarily or exclusively, a program of education in profes-
sional nursing and allied subjects leading to the degree of bachelor 
of arts, bachelor of science, bachelor of nursing, or other baccalaureate 
degree of equivalent rank; or to a graduate degree in nursing. 
"NATIONAL ADVISORY COUNCIL ON EDUCATION FOR HEALTH PROFESSIONS 
"SEC. 725. (a) There is hereby established in the Public Health 
Service a National Advisory Council on Education for Health Profes-
sions, consisting of the Surgeon General of the Public Health Service, 
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 
appointed members shall be selected from the general public and 
twelve shall be selected from among leading authorities in the iields 
of higher education, at least ei^ht 01 whom are particularly concerned 
with training in medicine, dentistry, osteopathy, pharmacy, optometry, 
podiatry, nursing, or the public health proTessions. 
In selecting 
persons for appointment to the Council, consideration shall be given 
to such factors, among others, as (1) experience in the planning, con-
structing, 
financing, 
or administration of schools of medicine, 
dentistry, osteopathy, pharmacy, optometry, podiatry, nursing, or 
schools of public health, and (2) familiarity with the need for teaching 
facilities in all areas of the Nation. 
"(b) The Council shall advise the Surgeon General in the prepara-
tion of general regulations and with respect to policy matters arising 
170 
PUBLIC LAW 88-129-SEPT. 24, 1963 
[77 STAT. 
in the administration of this part, and in the review of applications 
thereunder. 
"(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, for such periods, in addition to 
conference periods, as he may determine. The Surgeon General shall, 
in addition, make appropriate provision for consultation between and 
coordination of the work of the Council and the National Advisory 
Council on Health Research Facilities with respect to matters bearing 
on the purposes and administration of this part. 
"(d) Appointed members of the Council, while attending confer-
ences or meetings of the Council or while otherwise serving at the 
request of the Surgeon General, shall be entitled to receive compen-
sation at a rate to be fixed by the Secretary but not exceeding $50 per 
diem, including travel time, and while away from their homes or 
regular places of business they may be allowed travel expenses, includ-
ing per diem in lieu of subsistence, as authorized by section 5 of the 
60 Stat. 810. 
Administrative Expenses Act of 1946 (5 U.S.C. 73b-2) for persons in 
the Government service employed intermittently. 
"NONINTERFERENCE WITH ADMINISTRATION OF INSTITUTIONS 
"SEC. 726. 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 personnel, 
curriculum, methods of instuction, or administration of any institution. 
"REGULATIONS 
"SEC. 727. (a) The Surgeon General, after consultation with the 
Council and with the approval of the Secretary, shall prescribe gen-
eral regulations for this part covering the eligibility of institutions, 
the order of priority in approving applications, the terms and condi-
tions for approving applications, determinations of the amounts of 
grants, and minimum standards of construction and equipment for 
various types of institutions. 
"(b) The Surgeon General is authorized to make, with the approval 
of the Secretary, such other regulations as he finds necessary to carry 
out the provisions of this part. 
"TECHNICAL ASSISTANCE 
"SEC. 728. In carrying out the purposes of this part, and to further 
the development of State, or joint or coordinated regional or other 
interstate, planning of programs for relieving shortages of training 
capacity in the fields of medicine, dentistry, osteopathy, pharmacy, 
optometry, podiatry, nursing, and public health, through constructing 
teaching facilities, providing adequate financial support for sch(K>ls, 
or otherwise, the Surgeon General is authorized to provide technical 
assistance and consultative services to State or interstate planning 
agencies established for any of such purposes. 
"PART C—STUDENT LOANS 
"IX)AN AGREEMENTS 
"SEC. 740. (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 other nonprofit school of medicine, osteopathy, or dentistry 
77 STAT. ] 
PUBLIC LAW 88-129-SEPT. 24, 1963 
171 
(as defined in section 724) which is located in a State and is accredited 
as provided in section 721 (b) (1) (B). 
"(b) Each agreement entered into under this section shall— 
"(1) provide for establislinient of a student loan fund by the 
school; 
"(2) provide for deposit in the fund of (A) the amounts 
allocated under this part to the school by the Secretary, (B) an 
additional amount from other sources equal to not less than one-
ninth of amounts deposited pursuant to clause (A), (C) collec-
tions of principal and interest on loans made from the fund, and 
(D) any other earnings of the fund; 
"(3) provide that the fund shall be used only for loans to 
students 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 degree of doctor of medicine, doctor of dentistry or an 
equivalent degree, or doctor of osteopathy, 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 7
2 stat. iss.*. 
Act of 1958; and 
20 use 424. 
"(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 prefer-
ence 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, or doctor of osteopathy. 
" (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 
<jeases to pursue a full-time course of study at a school of medicine, 
osteopathy, or dentistry, excluding from such ten-year period all 
periods (up to three years) of (1) active duty performed by the bor-
rower as a member of a uniformed service, or (2) service as a volunteer 
under the Peace Corps Act. 
75 stat. ei 2. 
"(d) The liability to repay the unpaid balance of such a loan and ^J^ use 2501 
accrued interest thereon shall be canceled upon the death of the 
borrower, or if the Secretary determines that he has become perma-
nently 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 
note. 
172 
PUBLIC LAW 88-129~SEPT. 24, 1963 
[77 STAT. 
estimated average annual yield to the next higher multiple of one-
eighth 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 endorse-
ment 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 pro-
gram 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 sucn fund at the close of June 
30, 1969, as the total amount of the allotments to such fund 
77 STAT. ] 
PUBLIC L
A
W 88-129-SEPT. 24, 1963 
173 
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 Secre-
tary 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 subsec-
tion (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 
"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 ot the United States arising or 
acquired under this part." 
SEC. 3. (a) Section 705(c) of the Public Health Service Act is 7
o stat. 713. 
amended by striking out "and" at the end of paragraph (2), by strik- 
'^^ ^^^ '^^^''^• 
ing out the period at the end of paragraph (3) and mserting in lieu 
thereof ": and", and by adding after paragraph (3) the following new 
paragraph: 
" (4) the application contains or is supported by adequate assur-
ance 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 siniilar 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 4
9 stat. lou. 
shall have, with respect to the labor ^andards specified in this 
paragraph, the authority and functions set forth m Keorganiza-
tion Plan Numbered 14 of 1950 (15 F.E. 3176; 64 Stat. 1267), s use us^-is 
and section 2 of the Act of June 13,1934, as amended (40 U.S.C. "°63stat los 
276c)." 
(b) Part A of title VII of such Act is further amended by inserting 4
2 use 292-
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." 
Approved September 24, 1963.