Health Professions Training Assistance Act of 1985
PL 99-129 (H.R.2410), enacted 10/22/1985

PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 523 
Public Law 99-129 
99th Congress 
An Act 
To amend the Public Health Service Act to revise and extend the programs under 
title VII of that Act. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Health Professions Training Assistance Act of 
1985". 
REFERENCE 
SEC. 2. Except as otherwise specifically provided, whenever in this 
Act an amendment or repeal is expressed in terms of an amendment 
to, or a repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Public 
Health Service Act. 
Oct. 22, 1985 
[H.R. 2410] 
Health 
Professions 
Training 
Assistance Act of 
1985. 
42 u s e 201 note. 
TITLE I—AUTHORIZATIONS OF APPROPRIATIONS 
SCOPE AND DURATION OF FEDERAL LOAN INSURANCE PROGRAM 
SEC. 101. (a) The first sentence of section 728(a) is amended by 42 use 294a. 
striking out "and" after "1983;" and by inserting before the period a 
semicolon and "$250,000,000 for the fiscal year ending September 30, 
1985; $275,000,000 for the fiscal year ending September 30, 1986; 
$290,000,000 for the fiscal year ending September 30, 1987; and 
$305,000,000 for the fiscal year ending September 30,1988". 
(b) The second sentence of such section is amended by striking out 
"1987," and inserting in lieu thereof "1991,". 
SCHOLARSHIPS FOR STUDENTS OF EXCEPTIONAL FINANCIAL NEED 
SEC. 102. Section 758(d) is amended by striking out "and" after 42 use 294z. 
"1983," and by inserting before the period a comma and "$7,000,000 
for the fiscal year ending September 30, 1986, $7,000,000 for the 
fiscal year ending September 30, 1987, and $7,000,000 for the fiscal 
year ending September 30,1988". 
DEPARTMENTS OF FAMILY MEDICINE 
SEC. 103. Section 780(c) is amended by striking out "and" after 42 use 295g. 
"1983," and by inserting a comma and "$7,000,000 for the fiscal year 
ending September 30, 1986, $7,000,000 for the fiscal year ending 
September 30, 1987, and $7,000,000 for the fiscal year ending 
September 30,1988" after "1984". 
AREA HEALTH EDUCATION CENTERS 
SEC. 104. The first sentence of section 781(g) is amended by 42USC295g-i. 
striking out "and" after "1983," and by inserting before the period a 
comma and "$18,000,000 for the fiscal year ending September 30, 
51-194 O -
QL. 3 
Parti 
99 STAT. 524 
PUBLIC LAW 99-129—OCT. 22, 1985 
1986, $18,000,000 for the fiscal year ending September 30, 1987, and 
$18,000,000 for the fiscal year ending September 30,1988". 
PHYSICIAN ASSISTANTS 
42 use 295g-3. 
SEC. 105. Section 783(d) is amended by striking out "and" after 
"1983," and by inserting before the period a comma and "$4,800,000 
for the fiscal year ending September 30, 1986, $4,800,000 for the 
fiscal year ending September 30, 1987, and $4,800,000 for the fiscal 
year ending September 30,1988". 
GENERAL INTERNAL MEDICINE AND GENERAL PEDIATRICS 
42 use 295g-4. 
SEC. 106. Section 784(b) is amended by striking out "and" after 
"1983," and by inserting before the period a comma and 
"$18,500,000 for the fiscal year ending September 30, 1986, 
$19,500,000 for the fiscal year ending September 30, 1987, and 
$22,000,000 for the fiscal year ending September 30,1988". 
FAMILY MEDICINE AND GENERAL PRACTICE OF DENTISTRY 
42 use 295g-6. 
SEC. 107. (a) The first sentence of section 786(c) is amended by 
striking out "and" after "1983," and by inserting before the period a 
comma and "$36,000,000 for the fiscal year ending September 30, 
1986, $37,000,000 for the fiscal year ending September 30, 1987, and 
$39,400,000 for the fiscal year ending September 30,1988". 
(b) The second sentence of such section is amended by striking out 
"and" after "1983," and by inserting "September 30, 1986, Septem-
ber 30,1987, and September 30,1988," after "1984,". 
EDUCATIONAL ASSISTANCE TO INDIVIDUALS FROM DISADVANTAGED 
BACKGROUNDS 
42USC295g-7. 
SEC. 108. The first sentence of section 787(b) is amended by 
striking out "and" after "1983," and by inserting before the period a 
comma and "$26,000,000 for the fiscal year ending September 30, 
1986, $28,000,000 for the fiscal year ending September 30, 1987, and 
$30,000,000 for the fiscal year ending September 30,1988". 
CURRICULUM DEVELOPMENT AND FACULTY TRAINING GRANTS 
42 use 295g-8. 
SEC. 109. Section 788(f) is amended by striking out "and" after 
"1983;" and by inserting before the period a semicolon and 
"$8,000,000 for the fiscal year ending September 30, 1986; $8,000,000 
for the fiscal year ending September 30, 1987; and $8,000,000 for the 
fiscal year ending September 30,1988". 
ADVANCED FINANCIAL DISTRESS ASSISTANCE 
42 use 295g-8b. 
SEC. 110. The first sentence of section 788B(h) is amended by 
inserting before the period a comma and "$4,200,000 for the fiscal 
year ending September 30, 1986, and $3,800,000 for the fiscal year 
ending September 30,1987". 
GRADUATE PROGRAMS IN HEALTH ADMINISTRATION 
42USe295h. 
SEC. 111. Section 791(d) is amended by striking out "and" after 
"1983," and by inserting before the period a comma and "$1,500,000 
for the fiscal year ending September 30, 1986, $1,500,000 for the 
PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 525 
fiscal year ending September 30, 1987, and $1,500,000 for the fiscal 
year ending September 30,1988". 
TRAINEESHIPS FOR STUDENTS IN OTHER GRADUATE PROGRAMS 
SEC. 112. Section 791 
A(c) is amended by striking out "and" after 
42 use 295h-ia. 
"1980;" and by inserting before the period a semicolon and "and 
$500,000 for the fiscal year ending September 30, 1986, and each of 
the next two fiscal years". 
PUBUC HEALTH TRAINEESHIPS 
SEC. 113. Section 792(c) is amended by striking out "and" after 
42 use 295h-lb. 
"1983;" and by inserting before the period a semicolon and 
"$3,000,000 for the fiscal year ending September 30,1986; $3,075,000 
for the fiscal year ending September 30,1987; and $3,150,000 for the 
fiscal year ending September 30,1988". 
TRAINING IN PREVENTIVE MEDICINE 
SEC. 114. Section 793(c) is amended by striking out "and" after 
42 use 295h-ic. 
"1983," and by inserting before the period a comma and "$1,600,000 
for the fiscal year ending September 30, 1986, $1,600,000 for the 
fiscal year ending September 30, 1987, and $1,600,000 for the fiscal 
year ending September 30,1988". 
TITLE II—PROGRAM REVISIONS 
SCHOOLS OF CHIROPRACTIC 
SEC. 201. (a) The first sentence of section 701(4) is amended— 
42 use 292a. 
(1) by striking out "and" after "'school of veterinary 
medicine',"; 
(2) by inserting a comma and "and 'school of chiropractic'" 
after " 'school of public health' "; 
(3) by striking out "and" after "a degree of doctor of veteri-
nary medicine or an equivalent degree,"; and 
(4) by inserting "and a degree of doctor of chiropractic or an 
equivalent degree," before "and including advanced training 
related to". 
(b) Section 701(5) is amended— 
(1) by striking out "or" after "pharmacy,"; and 
(2) by inserting "or chiropractic," after "public health,". 
(c) Section 737 is amended by striking out paragraph (2) and by 42 use 294j. 
redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and 
(4), respectively. 
TRAINING OF PHYSICIAN ASSISTANTS 
SEC. 202. Section 701(8) is amended to read as follows: 
Education. 
"(8)(A) The term 'program for the training of physician assist- 42 use 292a. 
ants' means an educational program which (i) has as its objec-
tive the education of individuals who will, upon completion of 
their studies in the program, be qualified to provide primary 
health care under the supervision of a physician, and (ii) meets 
regulations prescribed by the Secretary in accordance with 
subparagraph (B). 
"(B) After consultation with appropriate organizations, the 
Secretary shall, not later than October 1,1986, prescribe regula-
99 STAT. 526 
PUBLIC LAW 99-129—OCT. 22, 1985 
tions for programs for the training of physician assistants. Such 
regulations shall, as a minimum, require that such a program— 
"(i) extend for at least one academic year and consist of— 
"(I) supervised clinical practice, and 
"(II) at least four months (in the aggregate) of class-
room instruction, 
directed toward preparing students to deliver health care; 
"(ii) have an enrollment of not less than eight students; 
and 
"(iii) train students in primary care, disease prevention, 
health promotion, geriatric medicine, and home health 
care.". 
SCHOOLS OF ALLIED HEALTH 
42 use 292a. 
SEC. 203. (a) Section 701(10) is amended— 
(1) by inserting "college," before "junior college,"; and 
(2) by striking out "in a discipline of allied health leading to a 
baccalaureate or associate degree (or an equivalent degree of 
either) or to a more advanced degree" in subparagraph (A) and 
inserting in lieu thereof "to enable individuals to become allied 
health professionals or to provide additional training for allied 
health professionals". 
(b) Section 701 is amended by adding at the end thereof the 
following new paragraph: 
"(13) The term 
'allied health professional' 
means 
an 
individual— 
"(A) who has received a certificate, an associate's degree, 
a bachelor's degree, a masters' degree, a doctoral degree, or 
postbaccalaureate training, in a science relating to health 
care; 
"(B) who shares in the responsibility for the delivery of 
health care services or related services, including— 
"(i) services relating to the identification, evaluation, 
and prevention of diseases and disorders; 
"(ii) dietary and nutrition services; 
"(iii) health promotion services; 
"(iv) rehabilitation services; or 
"(v) health systems management services; and 
"(C) who has not received a degree of doctor of medicine, 
a degree of doctor of osteopathy, a degree of doctor of 
dentistry or an equivalent degree, a degree of doctor of 
veterinary medicine or an equivalent degree, a degree 
of doctor of optometry or an equivalent degree, a degree of 
doctor of podiatry or an equivalent degree, a degree of 
bachelor of science in pharmacy or an equivalent degree, a 
degree of doctor of pharmacy or an equivalent degree, a 
graduate degree in public health or an equivalent degree, 
a degree of doctor of chiropractic or an equivalent degree, a 
graduate degree in health administration or an equivalent 
degree, or a doctoral degree in clinical psychology or an 
equivalent degree.". 
GRADUATE PROGRAMS IN CLINICAL PSYCHOLOGY 
SEC. 204. (a) Section 701 (as amended by section 203(b) of this Act) 
is further amended by adding at the end thereof the following new 
paragraph: 
PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 527 
"(14) The term 'graduate program in clinical psychology' 
means an accredited graduate program in a public or nonprofit 
private institution in a State which provides training leading to 
a doctoral degree in clinical psychology or an equivalent 
degree.". 
(b) Section 701(5) (as amended by section 201(b) of this Act) is 
further amended— 
(1) by striking out "or" after "chiropractic,"; and 
(2) by inserting "or a graduate program in clinical psychol-
ogy," after "health administration,". 
(c) Section 737 (as amended by section 201(c) of this Act) is further 
amended by striking out paragraph (2) (as redesignated by section 
201(c) of this Act) and by redesignating paragraphs (3) and (4) (as 
redesignated by section 201(c) of this Act) as paragraphs (2) and (3), 
respectively. 
NATIONAL ADVISORY COUNCIL ON HEALTH PROFESSIONS EDUCATION 
SEC. 205. (a) Section 702(a) is amended by striking out the last 42 use 292b. 
sentence and inserting in lieu thereof the following: "Of the 
appointed members of the Council— 
"(1) twelve shall be representatives of the health professions 
schools assisted under programs authorized under this title, 
including— 
"(A) one representative of each of schools of veterinary 
medicine, optometry, pharmacy, podiatry, public health, 
and allied health, and graduate programs in health 
administration; and 
"(B) at least six persons experienced in university 
administration, at least one of whom shall be a representa-
tive of a school described in subparagraph (A); 
"(2) two shall be full-time students enrolled in health profes-
sions schools; and 
"(3) six shall be members of the general public". 
TECHNICAL ASSISTANCE 
SEC. 206. Section 709(d) is amended to read as follows: 
42 use 292j. 
"(d) Funds appropriated under this title may be used by the 
Secretary to provide technical assistance in relation to any of the 
authorities under this title.". 
RECOVERY OF ASSISTANCE 
SEC. 207. (a) Section 723 is amended to read as follows: 
42 use 293c. 
"RECOVERY 
"SEC. 723. (a) If at any time within twenty years (or within such 
shorter period as the Secretary may prescribe by regulation for an 
interim facility) after the completion of construction of a facility 
with respect to which funds have been paid under section 720(a)— 42 USe 293. 
"(IXA) in case of a facility which w£is an affiliated hospital or 
outpatient facility with respect to which funds have been paid 
under section 720(aXl), the owner of the facility ceases to be a 
public or other nonprofit agency that would have been qualified 
to file an application under section 605, 
42 use 29ie. 
99 STAT. 528 
PUBLIC LAW 99-129—OCT. 22, 1985 
"(B) in case of a facility which was not an affiliated hospital 
or outpatient facility but was a facility with respect to which 
42 use 293. 
funds have been paid under paragraph (1) or (3) of section 720(a), 
the owner of the facility ceases to be a public or nonprofit 
school, or 
"(C) in case of a facility which was a facility with respect to 
which funds have been paid under section 720(a)(2), the owner of 
the facility ceases to be a public or nonprofit entity, 
"(2) the facility ceases to be used for the teaching or training 
42 use 293b. 
purposes (or other purposes permitted under section 722) for 
which it was constructed, or 
"(3) the facility is used for sectarian instruction or as a place 
for religious worship, 
the United States shall be entitled to recover from the owner of the 
facility the base amount prescribed by subsection (cXD plus the 
interest (if any) prescribed by subsection (cX2). 
"(b) The owner of a facility which ceases to be a public or 
nonprofit agency, school, or entity as described in subparagraph (A), 
(B), or (C) of subsection (aXD, as the case may be, or the owner of a 
facility the use of which changes as described in paragraph (2) or (3) 
of subsection (a), shall provide the Secretary written notice of such 
cessation or change of use within 10 days after the date on which 
such cessation or change of use occurs or within 30 days after the 
date of enactment of this subsection, whichever is later. 
"(cXl) The base amount that the United States is entitled to 
recover under subsection (a) is the amount bearing the same ratio to 
the then value (as determined by the agreement of the parties or in 
an action brought in the district court of the United States for the 
district in which the facility is situated) of the facility as the amount 
of the Federal participation bore to the cost of construction. 
"(2XA) The interest that the United States is entitled to recover 
under subsection (a) is the interest for the period (if any) described 
in subparagraph (B) at a rate (determined by the Secretary) based on 
the average of the bond equivalent rates of ninety-one-day Treasury 
bills auctioned during that period. 
"(B) The period referred to in subparagraph (A) is the period 
beginning— 
"(i) if notice is provided as prescribed by subsection (b), 191 
days after the date on which the owner of the facility ceases to 
be a public or nonprofit agency, school, or entity as described in 
subparagraph (A), (B), or (C) of subsection (aXl), as the case may 
be, or 191 days after the date on which the use of the facility 
changes as described in paragraph (2) or (3) of subsection (a), or 
"(ii) if notice is not provided as prescribed by subsection (b), 11 
days after the date on which such cessation or change of use 
occurs, 
and ending on the date the amount the United States is entitled to 
recover is collected. 
"(d) The Secretary may waive the recovery rights of the United 
States under subsection (aX2) with respect to a facility (under such 
conditions as the Secretary may establish by regulation) if the 
Secretary determines that there is good cause for waiving such 
rights. 
Prohibition. 
"(e) The right of recovery of the United States under subsection (a) 
shall not, prior to judgment, constitute a lien on any facility.". 
42 use 293c 
(b) In the case of any facility that was or is constructed on or 
note. 
before the date of enactment of this Act or within 180 days after the 
PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 529 
date of enactment of this Act, the period described in clause (i) or 
(ii), as the case may be, of section 723(cX2)(B) of the Public Health 
Service Act (as amended by subsection (a) of this section) shall begin 
no earlier than 181 days after the date of enactment of this Act. 
(c) The amendment made by subsection (a) of this section shall not 
adversely affect other legal rights of the United States. 
(d) In addition to the authority of the Secretary of Health and 
Human Services under subsection (d) of section 723 of the Public 
Health Service Act (as amended by subsection (a) of this section), the 
Secretary may waive the recovery rights of the United States under 
subsection (a) of such section 723 with respect to St. Joseph's Hos-
pital in Omaha, Nebraska, if the Secretary determines that ade-
quate provision has been made, through establishment of an 
irrevocable trust or other legally enforceable means, to assure that 
the teaching and other obligations assumed with respect to such St. 
Joseph's Hospital as a condition of assistance under title VII of the 
Public Health Service Act will continue to be met. 
(e)(1) Section 858(b) is amended— 
(A) by striking out "not later than" and inserting in lieu 
thereof "within"; and 
(B) by inserting "or within 30 days after the date of enact-
ment of the Health Professions Training Assistance Act of 1985, 
whichever is later" before the period. 
(2) Section 858(cX2XB) is amended by striking out "(1)" and insert-
ing in lieu thereof "(i)". 
(3) Section 858(d) is amended by striking out "subsection (a)" and 
inserting in lieu thereof "subsection (aX2)". 
(4) Section 9(cX2) of the Nurse Education Amendments of 1985 is 
amended by striking out "subsection (cX2XBXi) of section 858" and 
inserting in lieu thereof "clause (i) or (ii), as the case may be, of 
section 858(cX2XB)". 
42 u s e 293c 
note. 
Nebraska. 
42 u s e 292a. 
Ante, p. 400. 
42 u s e 298b-5. 
Ante, p. 523. 
Ante, p. 400. 
42 u s e 298b-5 
note. 
HEALTH EDUCATION ASSISTANCE LOAN PROGRAM 
SEC. 208. (aXD Section 731(aXlXA) is amended by striking out 42USe294d. 
"and" at the end of clause (iii), by redesignating clause (iv) as clause 
(v), and by inserting after clause (iii) the following: 
"(iv) if required under section 3 of the Military Selec-
tive Service Act to present himself for and submit to 
50 use app. 
registration under such section, has presented himself 2216. 
and submitted to registration under such section; and". 
(2) Section 731(aXlXB) is amended by striking out "and" at the end 
of clause (ii), and by inserting after clause (iii) the following: 
"(iv) if required under section 3 of the Military Selec-
tive Service Act to present himself for and submit to 
registration under such section, has presented himself 
and submitted to registration under such section; and". 
(bXD Section 731(aX2XB) is amended to read as follows: 
"(B) provides for repayment of the principal amount of 
the loan in installments over a period of not less than 10 
years (unless sooner repaid) nor more than 25 years begin-
ning not earlier than 9 months nor later than 12 months 
after the later of— 
"(i) the date on which— 
"(I) the borrower ceases to be a participant in an 
accredited internship or residency program of not 
more than four years in duration; 
99 STAT. 530 
PUBLIC LAW 99-129—OCT. 22, 1985 
"(ID the borrower completes the fourth year of 
an accredited internship or residency program of 
more than four years in duration; or 
"(III) the borrower, if not a participant in a 
program described in subclause (I) or (II), ceases to 
carry, at an eligible institution, the normal full-
time academic workload as determined by the 
institution; or 
"(ii) the date on which a borrower who is a graduate 
of an eligible institution ceases to be a participant in a 
fellowship training program not in excess of two years 
or a participant in a full-time educational activity not 
in excess of two years, which— 
"(I) is directly related to the health profession for 
which the borrower prepared at an eligible institu-
tion, as determined by the Secretary; and 
"(II) may be engaged in by the borrower during 
such a two-year period which begins within twelve 
months after the completion of the borrower's 
participation in a program described in subclause 
(I) or (II) of clause (i) or prior to the completion of 
the borrower's participation in such program, 
except as provided in subparagraph (C), except that the 
period of the loan may not exceed 33 years from the date of 
execution of the note or written agreement evidencing it, 
and except that the note or other written instrument may 
contain such provisions relating to repayment in the event 
of default in the payment of interest or in the payment of 
the costs of insurance premiums, or other default by the 
borrower, as may be authorized by regulations of the Sec-
retary in effect at the time the loan is made;". 
42 use 294d. 
(2) Section 731(a)(2)(C) is amended— 
(A) by inserting "(including any period in such a program 
described in subclause (I) or subclause (II) of subparagraph 
(B)(i))" before the comma in clause (ii); 
(B) by striking out "or the 33-year period" in clause (vi); 
(C) by striking out "or" after "National Health Service 
Corps," in clause (v); and 
(D) by inserting "or (vii) any period not in excess of two years 
which is described in subparagraph (BXii)," after "Domestic 
Volunteer Service Act of 1973,". 
42 use 294d 
(3)(A) The provisions of clause (i) of section 731(a)(2)(B) of the 
note. 
Public Health Service Act (as amended by paragraph (1) of this 
subsection) and the provisions of clauses (ii) and (vi) of section 
731(a)(2)(C) of such Act (as amended by subparagraphs (A) and (B) of 
paragraph (2)) shall not apply to any individual who, prior to the 
date of enactment of this Act, received a loan insured under subpart 
42 use 294. 
I of part C of title VII of such Act. 
(B) The provisions of clause (ii) of section 731(a)(2XB) of the Public 
Health Service Act and clause (vii) of section 731(a)(2XC) of such Act 
(as added by the amendments made by paragraphs (1) and (2)(D) of 
this subsection, respectively) shall apply to any loan insured under 
subpart I of part C of title VII of such Act after the date of 
enactment of this Act. 
Regulations. 
(4) Within 90 days after the date of enactment of this Act, the 
42 use 294d 
Secretary of Health and Human Services shall promulgate regula-
n°*e. 
tions to carry out clause (ii) of section 731(aX2)(B) of the Public 
PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 531 
Health Service Act and clause (vii) of section 731(a)(2)(C) of such Act 
(as added by the amendments made by paragraphs (1) and (2)(D) of 
this subsection, respectively). Such regulations shall— 
(A) prescribe criteria for the determination of the types of 
fellowship training programs and full-time educational activi-
ties which will be permitted under such clauses; and 
(B) establish procedures for a borrower to apply to the Sec-
retary for a determination concerning whether a particular 
fellowship training program or full-time educational activity 
will be permitted under such clauses. 
(c)(1) Section 731(b) is amended by striking out "3y2" and inserting 
in lieu thereof "3". 
(2) The amendment made by paragraph (1) of this subsection shall 
apply to any loan insured under subpart I of part C of title VII of the 
Public Health Service Act after the date of enactment of this Act. 
(d) Section 731(c) is amended— 
(1) by striking out "section 731(aX2)(C)" and inserting in lieu 
thereof "subsection (a)(2)(C)"; and 
(2) by inserting before the period a comma and "unless the 
borrower, in the written agreement described in subsection 
(a)(2), agrees to make payments during any year or any repay-
ment period in a lesser amount". 
(e) Section 732(c) is amended— 
(1) by redesignating clauses (1) and (2) of the second sen-
tence as clauses (A) and (B), respectively; 
(2) by inserting "(1)" before "The" in the first sentence; 
(3) by striking out "2 percent per year" in the first sentence 
and inserting in lieu thereof "8 percent"; 
(4) by striking out "in advance, at such times" in the first 
sentence and inserting in lieu thereof "in advance at the time 
the loan is made"; and 
(5) by adding at the end thereof the following new paragraph: 
"(2) The Secretary may not increase the percentage on the prin-
cipal balance of loans charged pursuant to paragraph (1) for insur-
ance premiums, unless the Secretary has, prior to any such 
increase— 
"(A) requested a qualified public accounting firm to evaluate 
whether an increase in such percentage is necessary to ensure 
the solvency of the student loan fund established by section 734, 
and to determine the amount of such an increase, if necessary; 
and 
"(B) such accounting firm has recommended such an increase 
and has determined the amount of such increase necessary to 
ensure the solvency of such fund. 
The Secretary may not increase such percentage in excess of the 
maximum percentage permitted by paragraph (1) or increase such 
percentage by an amount in excess of the amount of the increase 
determined by a qualified accounting firm pursuant to this 
paragraph.". 
(0 The first sentence of subsection (a) of section 734 and the first 
sentence of subsection (b) of such section are each amended by 
inserting "collection or" before "default". 
(gXD Section 729(a) is amended by inserting "allied health," after 
"public health," each place it appears. 
(2) Section 737 (as amended by sections 201(c) and 204(c) of this 
Act) is further amended— 
42 u s e 294d. 
42 use 294d 
note. 
42 use 294. 
42 use 294d. 
42 use 294e. 
Prohibition. 
42 use 294g. 
Prohibition. 
42 use 294g. 
42 use 294b. 
42 use 294j. 
99 STAT. 532 
PUBLIC LAW 99-129—OCT. 22, 1985 
(A) bv inserting a comma and "allied health," after "public 
health in paragraph (1); and 
(B) by adding at the end thereof the following new paragraph: 
"(4) The term 'school of allied health' means a program in a 
Ante, p. 526. 
school of allied health (as defined in section 701(10)) which leads 
to a masters' degree or a doctoral degree.". 
42 use 294a. 
(h) Section 728(a) (as amended by section 101 of this Act) is further 
amended by inserting after the first sentence the following new 
sentence: "If the total amount of new loans made and installments 
paid pursuant to lines of credit in any fiscal year is less than the 
ceiling established for such year, the difference between the loans 
made and installments paid and the ceiling shall be carried over to 
the next fiscal year and added to the ceiling applicable to that fiscal 
year.". 
42 use 294d. 
(i) Section 731(a)(2) is amended by striking out "and" at the end of 
subparagraph (F), by redesignating subparagraph (G) as subpara-
graph (H), and by inserting after subparagraph (F) the following new 
subparagraph: 
' (G) provides that the check for the proceeds of the loan 
shall be made payable jointly to the borrower and the 
eligible institution in which the borrower is enrolled; and". 
HEALTH PROFESSIONS STUDENT IXDAN PROGRAM 
42 use 294m. 
SEC. 209. (aXD Section 740(bX4) is amended bv inserting "doctor of 
pharmacy or an equivalent degree," before 
doctor of podiatry". 
42 use 294n. 
(2) Section 7410t>) is amended by inserting "doctor of pharmacy or 
an equivalent degree," before "doctor of podiatry". 
(3) Section 741(fXl)(A) is amended by inserting "doctor of phar-
macy or £in equivalent degree," before "or doctor of podiatry or an 
equivalent degree". 
(4) Subpart II of part C of title VII is amended by adding at the 
end thereof the following new section: 
"DEFINITION 
42 use 294q-3. 
"SEC. 745. For purposes of this subpart, the term 'school of phar-
macy' means a public or nonprofit private school in a State that 
provides training leading to a degree of bachelor of science in 
pharmacy or an equivalent degree or a degree of doctor of pharmacy 
or an equivalent degree and which is accredited in the manner 
Ante, p. 525. 
described in section 701(5).". 
42 use 294n. 
(b) Section 741(b) (as amended by subsection (aX2) of this section) is 
further amended by inserting "(1) who is" after "student" and by 
inserting before the period a comma and the following: "(2) who, if 
pursuing a full-time course of study at the school leading to a degree 
of doctor of medicine or doctor of osteopathy, is of exceptional 
financial need (as defined by regulations of the Secretary), and (3) 
50 use app. 
who, if required under section 3 of the Military Selective Service Act 
2216. 
to present himself for and submit to registration under such section, 
has presented himself and submitted to registration under such 
section.". 
42 use 294n. 
(cXD Section 741(c) is amended to read as follows: 
"(c) Such loans shall be repayable in equal or graduated periodic 
installments (with the right of the borrower to accelerate repay-
ment) 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 
PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 533 
medicine, osteopathy, dentistry, pharmacy, podiatry, optometry, vet-
erinary medicine, excluding from such ten-year period— 
"(1) all periods— 
"(A) not in excess of three years of active duty performed 
by the borrower as a member of a uniformed service; 
"(B) not in excess of three years during which the bor-
rower serves as a volunteer under the Peace Corps Act; and 
"(C) during which the borrower participates in advanced 
professional training, including internships and residencies; 
and 
"(2) a period— 
"(A) not in excess of two years during which a borrower 
who is a full-time student in such a school leaves the school, 
with the intent to return to such school as a full-time 
student, in order to engage in a full-time educational activ-
ity which is directly related to the health profession for 
which the borrower is preparing, as determined by the 
Secretary; or 
"(B) not in excess of two years during which a borrower 
who is a graduate of such a school is a participant in a 
fellowship training program or a full-time educationsil 
activity which— 
"(i) is directly related to the health profession for 
which such borrower prepared at such school, as deter-
mined by the Secretary; and 
"(ii) may be engaged in by the borrower during such 
a two-year period which begins within twelve months 
after the completion of the borrower's participation in 
advanced professional training described in paragraph 
(IXC) or prior to the completion of such borrower's 
participation in such training.". 
(2) The provisions of section 741(cX2)(A) of the Public Health 
Service Act (as added by the amendment made by paragraph (1) of 
this subsection) shall apply to— 
(A) any individual who received a loan under subpart II of 
part C of title VII of the Public Health Service Act and to whom 
the provisions of such section (if such provisions had been in 
effect) would have applied between June 17, 1982, and July 7, 
1983; and 
(B) any individual who, after the date of enactment of this 
Act, is a full-time student in a school referred to in such section 
and who (prior to, on, or after the date of enactment of this Act), 
receives a loan under such subpart to assist such student in 
such student's studies in such school. 
(3) The provisions of section 741(cX2XB) of the Public Health 
Service Act (as added by the amendment made by paragraph (1) of 
this subsection) shall apply to any loan made under subpart II of 
part C of title VII of such Act after the date of enactment of this Act. 
(4) Within 90 days after the date of enactment of this Act, the 
Secretary of Health and Human Services shall promulgate regula-
tions to carry out section 741(cX2) of the Public Health Service Act 
(as added by the amendment made by paragraph (1) of this subsec-
tion) with respect to any loan made under subpart II of part C of 
title VII of such Act on or after the date of enactment of this Act. 
Such regulations shall— 
(A) with respect to the provisions of subparagraph (A) of such 
section— 
22 u s e 2501 
note. 
42 u s e 294n 
note. 
42 u s e 294m. 
42 u s e 294n 
note. 
42 u s e 294m. 
Regulations. 
42 u s e 294n 
note. 
42 u s e 294m. 
99 STAT. 534 
PUBLIC LAW 99-129—OCT. 22, 1985 
(i) prescribe criteria for the determination of the types of 
full-time educational activities which will be permitted 
under such subparagraph; 
(ii) require the school in which the borrower was enrolled 
as a full-time student to determine, prior to the borrower's 
leaving such school, whether an educational activity in 
which the student proposes to engage qualifies for purposes 
of such subparagraph and such regulations; and 
(B) with respect to the provisions of subparagraph (B) of such 
section— 
(i) prescribe criteria for the determination of the types of 
fellowship training programs and full-time educational 
activities which will be permitted under such subpara-
graph; and 
(ii) establish procedures for a borrower to apply to the 
Secretary for a determination concerning whether a 
particular 
fellowship 
training 
program 
or 
full-time 
educational activity will be permitted under such sub-
paragraph. 
42 use 294n. 
(d) Section 741(i) is amended to read as follows: 
"(i) Subject to regulations of the Secretary, a school may assess a 
charge with respect to loans made under this subpart to cover the 
costs of insuring against cancellation of liability under subsection 
(d).". 
(e) Section 741(j) is amended— 
(1) by inserting "and in accordance with this section" after 
"Secretary" in the first sentence; 
(2) by striking out "may" in such sentence and inserting in 
lieu thereof "shall"; and 
(3) by striking out the second sentence and inserting in lieu 
thereof the following: "No such charge may be made if the 
payment of such installment or the filing of such evidence is 
made within 60 days after the date on which such installment 
or filing is due. The amount of any such charge may not 
exceed an amount equal to 6 percent of the amount of such 
installment.". 
(f) Section 741 is amended by adding at the end thereof the 
following new subsection: 
"(m) The Secretary is authorized to attempt to collect any loan 
which was made under this subpart, which is in default, and which 
was referred to the Secretary by a school with which the Secretary 
has an agreement under this subpart, on behalf of that school under 
such terms and conditions as the Secretary may prescribe (including 
reimbursement from the school's student loan fund for expenses the 
Secretary may reasonably incur in attempting collection), but only if 
the school has complied with such requirements as the Secretary 
may specify by regulation with respect to the collection of loans 
under this subpart. A loan so referred shall be treated as a debt 
subject to section 5514 of title 5, United States Code. Amounts 
collected shall be deposited in the school's student loan fund. When-
ever the Secretary desires the institution of a civil action regarding 
any such loan, the Secretary shall refer the matter to the Attorney 
General for appropriate action.". 
42 use 294o. 
(g) Section 742(b) is amended by adding at the end thereof the 
following new paragraph: 
"(5) Any funds from a student loan fund established under this 
subpart which are returned to the Secretary in any fiscal year shall 
PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 535 
be available for allotment under this subpart, in such fiscal year and 
the fiscal year succeeding such fiscal year, to schools which, during 
the period beginning on July 1, 1972, and ending on September 30, 
1985, established student loan funds with Federal capital contribu-
tions under this subpart.". 
(h) Subpart II of part C of title VII (as amended by subsection (aX4) 
of this subsection) is further amended— 
(1) by redesignating section 745 (as added by subsection (a)(4) 42 USC 294q-3. 
of this section) as section 747; and 
(2) by inserting after section 744 the following new sections: 
"STUDENT LOAN INFORMATION BY INSTITUTIONS 
"SEC. 745. (a) With respect to loans made by a school under this 
42 use 294q-i. 
subpart after June 30, 1986, each school, in order to carry out the 
provisions of sections 740 and 741, shall, at any time such school 
Ante, p. 532. 
makes such a loan to a student under this subpart, provide thorough 
and adequate loan information on loans made under this subpart to 
the student. The loan information required to be provided to the 
student by this subsection shall include— 
"(1) the yearly and cumulative maximum amounts that may 
be borrowed by the student; 
"(2) the terms under which repayment of the loan will begin; 
"(3) the maximum number of years in which the loan must be 
repaid; 
"(4) the interest rate that will be paid by the borrower and the 
minimum amount of the required monthly payment; 
"(5) the amount of any other fees charged to the borrower by 
the lender; 
"(6) any options the borrower may have for deferral, cancella-
tion, prepayment, consolidation, or other refinancing of the 
loan; 
"(7) a definition of default on the loan and a specification of 
the consequences which will result to the borrower if the bor-
rower defaults, including a description of any arrangements 
which may be made with credit bureau organizations; 
"(8) to the extent practicable, the effect of accepting the loan 
on the eligibility of the borrower for other forms of student 
assistance; and 
"(9) a description of the actions that may be taken by the 
Federal Government to collect the loan, including a description 
of the tjrpe of information concerning the borrower that the 
Federal Government may disclose to (A) officers, employees, or 
agents of the Department of Health and Human Services, (B) 
officers, employees, or agents of schools with which the Sec-
retary has an agreement under this subpart, or (C) any other 
person involved in the collection of a loan under this subpart. 
"(b) Each school shall, immediately prior to the graduation from 
such school of a student who receives a losm under this subpart after 
June 30, 1986, provide such student with a statement specifying— 
"(1) each amount borrowed by the student under this subpart; 
"(2) the total amount borrowed by the student under this 
subpart; and 
"(3) a schedule for the repayment of the amounts borrowed 
under this subpart, including the number, amount, and fre-
quency of payments to be made. 
99 STAT. 536 
PUBLIC LAW 99-129—OCT. 22, 1985 
"PROCEDURES FOR APPEAL OF TERMINATIONS 
42 use 294q-2. 
"SEC. 746. In any case in which the Secretary intends to terminate 
an agreement with a school under this subpart, the Secretary shall 
provide the school with a written notice specifying such intention 
and stating that the school may request a formal hearing with 
respect to such termination. If the school requests such a hearing 
within 30 days after the receipt of such notice, the Secretary shall 
provide such school with a hearing conducted by an administrative 
law judge.". 
42 use 294p. 
(i) Section 743 is amended by striking out "1987" each place it 
appears and inserting in lieu thereof "1991". 
42 use 294m. 
(jKX) Section 740 is amended by adding at the end thereof the 
following new subsection: 
Loans. 
"(c)(1) Any standard established by the Secretary by regulation for 
the collection by schools of medicine, osteopathy, dentistry, phar-
macy, podiatry, optometry, or veterinary medicine of loans made 
pursuant to loan agreements under this subpart shall provide that 
the failure of any such school to collect such loans shall be measured 
in accordance with this subsection. 
"(2) The measurement of a school's failure to collect loans made 
under this subpart shall be the ratio (stated as a percentage) that 
the defaulted principal amount outstanding of such school bears to 
the matured loans of such school. 
"(3) For purposes of this subsection— 
"(A) the term 'default' means the failure of a borrower of a 
loan made under this subpart to— 
"(i) make an installment payment when due; or 
"(ii) comply with any other term of the promissory note 
for such loan, 
except that a loan made under this subpart shall not be consid-
ered to be in default if the loan is discharged in bankruptcy or if 
the school reasonably concludes from written contacts with the 
borrower that the borrower intends to repay the loan; 
"(B) the term 'defaulted principal amount outstanding' means 
the total amount borrowed from the loan fund of a school that 
has reached the repayment stage (minus any principal amount 
repaid or cancelled) on loans— 
"(i) repayable monthly and in default for at least 120 
davs; and 
(ii) repayable less frequently than monthly and in de-
fault for at least 180 days; 
"(C) the term 'grace period' means the period of one year 
beginning on the date on which the borrower ceases to pursue a 
full-time course of study at a school of medicine, osteopathy, 
dentistry, pharmacy, podiatry, optometry, or veterinary medi-
cine; and 
"(D) the term 'matured loans' means the total principal 
amount of all loans made by a school under this subpart minus 
the total principal amount of loans made by such school to 
students who are— 
"(i) enrolled in a full-time course of study at such school; 
or 
"(ii) in their grace period.". 
Ante, p. 397. 
(2) Section 835(c)(3) is amended— 
(A) by striking out subparagraph (C) and inserting in lieu 
thereof the following: 
PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 537 
"(C) the term 'grace period' means the period of nine months 
beginning on the date on which the borrower ceases to pursue a 
full-time or half-time course of study at a school of nursing; 
and"; and 
(B) by striking out "first" in subparagraph (DXii). 
SCHOLARSHIPS FOR FIRST-YEAR STUDENTS OF EXCEPTIONAL FINANCIAL 
NEED 
SEC. 210. (a) Section 758(b) is amended by redesignating paragraph 
42 USC 294z. 
(3) as paragraph (6) and by striking out paragraph (2) and inserting 
in lieu thereof the following: 
"(2) A scholarship provided to a student for a school year under a 
grant under subsection (a) shall consist o
f
— 
"(A) payment to, or (in accordance with paragraph (4)) on 
behaljf of, the student of the amount (except as provided in 
section 710) of— 
42 USC 292k. 
"(i) the tuition of the student in such school year; and 
"(ii) all other reasonable educational expenses, including 
fees, books, and laboratory expenses, incurred by the stu-
dent in such school year; and 
"(B) payment to the student of a stipend of $400 per month 
(adjusted in accordance with paragraph (5)) for each of the 12 
consecutive months beginning with the first month of such 
school year. 
"(3) Notwithstanding paragraph (2), the total scholarship award to 
a student for each year shall not exceed the cost of attendance for 
that year at the educational institution attended by the student (as 
determined by such educational institution). 
"(4) The Secretary may contract with an educational institution in Contracts, 
which is enrolled a student who has received a scholarship with a 
grant under subsection (a) for the payment to the educational 
institution of the amounts of tuition and other reasonable edu-
cational expenses described in paragraph (2)(A). Payment to such an 
educational institution may be made without regard to section 3324 
of title 31, United States Code. 
"(5) The amount of the monthly stipend, specified in paragraph 
(2)(B) and as previously adjusted (if at all) in accordance with this 
paragraph, shall be increased by the Secretary for each school year 
by an amount (rounded to the next highest multiple of $1) equal to 
the amount of such stipend multiplied by the overall percentage (as 
set forth in the report transmitted to the Congress under section 
5305 of title 5, United States Code) of the adjustment (if such 
adjustment is an increase) in the rates of pay under the General 
Schedule made effective in the fiscal year in which such school year 
ends.". 
(b) Section 338A(g)(l) is amended by striking out "or under section 
42 USC 254Z. 
758 (relating to scholarships for first-year students of exceptional 
financial need),". 
CAPITATION GRANTS FOR SCHOOLS OF PUBUC HEALTH 
SEC. 211. (a)(1) Section 770 is amended to read as follows: 
42 USC 295f. 
"CAPITATION GRANTS FOR SCHOOLS OF PUBUC HEALTH 
"SEC. 770. (a)(1) The Secretary shall make annual grants to schools 
of public health for the support of the education programs of such 
99 STAT. 538 
PUBLIC LAW 99-129—OCT. 22, 1985 
schools. The amount of the annual grant to each such school with an 
approved application shall be computed for each fiscal year in 
accordance with paragraphs (2) and (3). 
"(2) Each school of public health shall receive for the fiscal year 
ending September 30, 1986, and for each of the next two fiscal years, 
an amount equal to the product of— 
"(A) $1,400, and 
"(B) the sum of (i) the number of full-time students enrolled in 
degree programs in such school in the school year beginning in 
such fiscal year, and (ii) the number of full-time equivalents of 
part-time students enrolled in degree programs in such school, 
determined pursuant to paragraph (3), for such school for such 
school year. 
"(3) For purposes of paragraph (2), the number of full-time equiva-
lents of part-time students for a school of public health for any 
school year is a number equal to— 
"(A) the total number of credit hours of instruction in such 
year for which part-time students of such school, who are 
pursuing a course of study leading to a graduate degree in 
public health or an equivalent degree, have enrolled, divided by 
"(B) the greater of (i) the number of credit hours of instruc-
tion which a full-time student of such school was required to 
take in such year, or (ii) 9, 
rounded to the next highest whole number. 
"(b) Notwithstanding subsection (a), if the aggregate of the 
amounts of the grants to be made in accordance with such subsec-
tion for any fiscal year to schools of public health with approved 
applications exceeds the total of the amounts appropriated for such 
grants for such schools under subsection (e), the amount of a school's 
grant for such fiscal year shall be an amount which bears the same 
ratio to the amount determined for the school under subsection (a) 
as the total of the amounts appropriated for that year under subsec-
tion (e) for grants to schools of public health bears to the amount 
required to make grants in accordance with subsection (a) to each of 
the schools of public health with approved applications. 
Regulations. 
"(c)(1) For purposes of this section, regulations of the Secretary 
shall include provisions relating to the determination of the number 
of students enrolled in a school or in a particular year-class in a 
school on the basis of estimates, on the basis of the number of 
students who in an earlier year were enrolled in a school or in a 
particular year-class, or on such other basis as the Secretary deems 
appropriate for making such determination, and shall include meth-
ods of making such determination when a school or a year-cl£iss was 
not in existence in an earlier year at a school. 
"(2) For purposes of this section, the term 'full-time students' 
(whether such term is used by itself or in connection with a particu-
lar year-class) means students pursuing a full-time course of study 
leading to a graduate degree in public health or equivalent degree. 
"(d) In the case of a new school of public health which applies for a 
grant under this section in the fiscal year preceding the fiscal year 
in which it will admit its first class, the enrollment for purposes of 
subsection (a) shall be the number of full-time students which the 
Secretary determines, on the basis of assurances provided by the 
school, will be enrolled in the school, in the fiscal year after 
the fiscal year in which the grant is made. 
"(e) For payments under this section, there are authorized to be 
appropriated $5,000,000 for the fiscal year ending September 30, 
PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 589 
1986, $5,125,000 for the fiscal year ending September 30, 1987, and 
$5,250,000 for the fiscal year ending September 30,1988.". 
(2) Section 731(aXlXAXii) is amended by striking out "(as defined 
42 use 294d. 
in section 770(cX2))" and inserting in lieu thereof "(as defined in 
section 770(cX2) (as such section was in effect on September 30, Ante, p. 537. 
1985))". 
(b) Section 771 is amended to read as follows: 
42 use 295f-i. 
"EUGIBILTTY FOR CAPITATION GRANTS 
"SEC. 771. (aXD The Secretary shall not make a grant under 
Prohibition. 
section 770 to any school of public health in a fiscal year beginning Ante, p. 537. 
after September 30, 1985, unless the application for the grant con-
tains, or is supported by, assurances satisfactory to the Secretary 
that— 
"(A) the enrollment of full-time equivalent students enrolled 
in degree programs in the school in the school year beginning in 
the fiscal year in which the grant applied for is to be made will 
not be less than the enrollment of such students in degree 
programs in the school in the school year beginning in the fiscal 
year ending September 30,1983; and 
"(B) the applicant will expend in carrying out its functions as 
a school of public health during the fiscal year for which such 
grant is sought, an amount of funds (other than funds for 
construction as determined by the Secretary) from non-Federal 
sources which is at least as great as the amount of funds 
expended by such applicant for such purpose (excluding 
expenditures of a nonrecurring nature) in the fiscal year preced-
ing the fiscal year for which such grant is sought. 
"(2) For purposes of subsection (aXlXA), the number of full-time 
equivalent students enrolled in a degree program in a school in a 
school year is equal to the sum calculated under section 770(aX2XB) Ante, p. 537. 
for that school year. 
"(b) The Secretary may waive (in whole or in part) application to a 
school of public health of the requirement of subsection (aXlXA) if 
the Secretary determines, after receiving the written recommenda-
tion of the appropriate accreditation body or bodies (approved for 
such purpose by the Commissioner of Education) that compliance by 
such school with such requirement will prevent it from maintaining 
its accreditation.". 
(cXD Section 772(b) is amended— 
42 use 295f-2. 
(A) by striking out "or subsection (a) or (b) of section 788"; 
(B) by striking out "medicine, osteopathy, dentistry, public 
health, veterinary medicine, optometry, pharmacy, or podia-
try," and inserting in lieu thereof "public health,"; 
(C) by striking out "Commissioner of Education" and insert-
ing in lieu thereof "Secretary of Education"; and 
(D) by striking out "Commissioner" each place it appears and 
inserting in lieu thereof "Secretary of Education". 
(2) The section heading for section 772 is amended to read as 
follows: 
"APPUCATIONS FOR CAPITATION GRANTS". 
(d) The heading for part E of title VII is amended to read as 42 use 295f. 
follows: 
99 STAT. 540 
PUBLIC LAW 99-129—OCT. 22, 1985 
"PART E—GRANTS TO IMPROVE THE QUAUTY OF SCHOOLS OF PUBUC 
HEALTH". 
DEPARTMENTS OF FAMILY MEDICINE 
SEC. 212. Section 780 is amended by redesignating subsection (c) 
(as amended by section 103 of this Act) as subsection (d) and by 
inserting after subsection (h) the following new subsection: 
"(c) In making grants under subsection (a), the Secretary shall 
give priority to applicants that demonstrate to the satisfaction of the 
Secretary a commitment to family medicine in their medical edu-
cation training programs.". 
42 u s e 295g-l. 
Contracts. 
42 u s e 295g-l 
note. 
42 u s e 295g-l. 
Grants. 
Contracts. 
Education. 
AREA HEALTH EDUCATION CENTERS 
SEC. 213. (a) Section 781(a)(2) is amended by redesignating sub-
paragraphs (A), (B), and (C) £is clauses (i), (ii), and (iii), respectively, 
and by striking out all that precedes clause (i) (as so redesignated) 
and inserting in lieu thereof the following: 
"(2XA) The Secretary shall enter into contracts with schools of 
medicine and osteopathy— 
"(i) which have previously received Federal financial assist-
ance for an area health education center program under section 
802 of the Health Professionals Educational Assistance Act of 
1976 in fiscal year 1979 or under paragraph (1), or 
"(ii) which are receiving assistance under paragraph (1), 
to carry out projects described in subparagraph (B) through area 
health education centers for which Federal financial assistance was 
provided under paragraph (1) and which are no longer eligible to 
receive such assistance. 
"(B) Projects for which assistance may be provided under subpara-
graph (A) are—". 
Ot)) The last sentence of section 781(g) is gmiended by striking out 
"may" and inserting in lieu thereof "shall", 
(c) Section 781(dX2)(F) is amended to read as follows: 
"(F) conduct interdisciplinary training and practice involving 
physicians and other health personnel including, where prac-
ticable, physician assistants and nurse practitioners;". 
GENERAL INTERNAL MEDICINE AND GENERAL PEDIATRICS 
SEC. 214. Section 784 is amended by redesignating subsection 0)) 
(as amended by section 106 of this Act) as subsection (c) and by 
inserting after subsection (a) the following new subsection: 
"(b) In making grants and entering into contracts under subsec-
tion (a), the Secretary shall give priority to applicants that dem-
onstrate to the satisfaction of the Secretary a commitment to 
general internal medicine and general pediatrics in their medical 
education training programs.". 
FAMILY MEDICINE AND GENERAL DENTISTRY 
42 use 295g-6. 
SEC. 215. (a) Section 786(b) is amended— 
(1) by inserting "or an approved advanced educational pro-
gram in the general practice of dentistry" before the semicolon 
in paragraph (1); and 
(2) by striking out "residents" in paragraph (2) and inserting 
in lieu thereof "participants". 
PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 541 
(b) Section 786 is amended by redesignating subsection (c) (as 
amended by section 107 of this Act) as subsection (d) and by insert-
ing after subsection (b) the following new subsection: 
"(c) In making grants and entering into contracts under subsec-
tion (a), the Secretary shall give priority to applicants that 
demonstrate to the satisfaction of the Secretary a commitment to 
family medicine in their medical education training programs.", 
(c) Section 786(d) (as amended by section 107 of this Act and 
redesignated by subsection (b) of this section) is further amended by 
inserting before the period in the second sentence a comma and 
"and shall obligate not less than 7.5 percent of such amounts in each 
such fiscal year for grants under subsection (\))". 
Grants. 
Contracts. 
Education. 
EDUCATIONAL ASSISTANCE TO INDIVIDUALS FROM DISADVANTAGED 
BACKGROUNDS 
SEC. 216. (a) Section 787(aXl) is amended— 
(1) by inserting "chiropractic," after "allied health,"; and 
(2) by inserting after "podiatry" a comma and "public and 
nonprofit private schools which offer graduate programs in 
clinical psychology,". 
(b) Section 787(aX2) is amended— 
(1) by striking out "and" after the last comma in subpara-
graph (D); 
(2) by striking out the period at the end of subparagraph (E) 
and inserting in lieu thereof a comma and "and"; and 
(3) by inserting after subparagraph (E) the following: 
"(F) paying such stipends as the Secretary may determine for 
such individuals for any period of health professions education 
at a school of medicine, osteopathy, or dentistry. 
The term 'regular course of education of such a school' as used in 
subparagraph 
(D) includes a graduate 
program 
in 
clinical 
psychology.'. 
(c) Section 7870t>) is amended by adding at the end thereof the 
following new sentence: "Of the funds appropriated under this 
section for any fiscal year, 20 percent shall be obligated for stipends 
under subsection (aX2XF) to individuals of exceptional financial need 
(as defined by regulations promulgated by the Secretary under 
section 758) who are students at schools of medicine, osteopathy, or 
dentistry.". 
SPECIAL PROJECTS 
SEC. 217. (aXl) Section 788(aXl) is amended to read as follows: 
"(aXD The Secretary may make grants to maintain and improve 
schools which provide the first or last two years of education leading 
to the degree of doctor of medicine or osteopathy. Grants provided 
under this paragraph to schools which were in existence on Septem-
ber 30, 1985, may be used for construction and the purchase of 
equipment.", 
(2) Paragraph (2) of section 788(a) is repealed and paragraph (3) of 
such section is redesignated as paragraph (2). 
(3) Section 788(aX2) (as redesignated by paragraph (2) of this 
subsection) is amended by inserting "or Igist after 
the first", by 
inserting "or osteopathy" after "medicine" and by inserting "or be 
operated jointly with a school that is accredited by" after 
accred-
ited by". 
(b) Section 788(b) is amended to read as follows: 
42 u s e 295g-7. 
42 u s e 294z. 
Grants. 
Contracts. 
Education. 
42 u s e 295g-
99 STAT. 542 
PUBLIC LAW 99-129—OCT. 22, 1985 
"(b)(1) The Secretary may make grants to and enter into contracts 
with any health profession, aUied health profession, or nurse train-
ing institution, or any other public or nonprofit private entity for 
projects in areas such as— 
"(A) health promotion and disease prevention; 
"(B) curriculum development and training in health policy 
and policy analysis, including curriculum development and 
training in areas such as— 
"(i) the organization, delivery, and financing of health 
care; 
"(ii) the determinants of health and the role of medicine 
in health; and 
"(iii) the promotion of economy in health professions 
teaching, health care practice, and health care systems 
management; 
"(C) curriculum development in clinical nutrition; 
"(D) the development of initiatives for assuring the com-
petence of health professionals; and 
"(E) curriculum and program development and training in 
applying the social and behavioral sciences to the study of 
health and health care delivery issues. 
"(2)(A) Of the amounts available for grants and contracts under 
Post, p. 543. 
this subsection from amounts appropriated under subsection (g), at 
least 75 percent shall be obligated for grants to and contracts with 
health professions institutions, allied health institutions, and nurse 
training institutions. 
"(B) Any application for a grant to institutions described in 
subparagraph (A) shall be subject to appropriate peer review by peer 
review groups composed principally of non-Federal experts. 
"(C) The Secretary may not approve or disapprove an application 
for a grant to an institution described in subparagraph (A) unless 
the Secretary has received recommendations with respect to such 
application from the appropriate peer review group required under 
subparagraph (B) and has consulted with the National Advisory 
Council on Health Professions Education with respect to such 
application. 
Prohibition. 
*(3) Of the amounts available for grants and contracts under this 
Post, p. 543. 
subsection from amounts appropriated under subsection (g), not 
more than 25 percent shall be obligated for grants to and contracts 
with public and nonprofit entities which are not health profes-
sions institutions, allied health institutions, or nurse training 
institutions.". 
42 use 295g-8. 
(c) Section 788(d) is amended to read as follows: 
"(d)(1) The Secretary may make grants to and enter into contracts 
with accredited health professions schools referred to in section 
Ante, pp. 525, 
701(4) or 701(10) and programs referred to in section 701(8) to assist 
526. 
in meeting the costs of such schools or programs of providing 
projects to— 
Aged persons. 
"(A) improve the training of health professioneds in geriatrics; 
"(B) develop and disseminate curricula relating to the treat-
ment of the health problems of elderly individuals; 
"(C) expand and strengthen instruction in methods of such 
treatment; 
"(D) support the training and retraining of faculty to provide 
such instruction; 
"(E) support continuing education of health professionals and 
allied health professionals who provide such treatment; and 
PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 543 
"(F) establish new affiliations with nursing homes, chronic 
and acute disease hospitals, ambulatory care centers, and senior 
centers in order to provide students with clinical training in 
geriatric medicine. 
"(2)(A) Any application for a grant or contract under this subsec-
tion shall be subject to appropriate peer review by peer review 
groups composed principally of non-Federal experts. 
"(B) The Secretary may not approve or disapprove an application 
for a grant or contract under this subsection unless the Secretary 
has received recommendations with respect to such application from 
the appropriate peer review group required under subparagraph (A) 
and has consulted with the National Advisory Council on Health 
Professions Education with respect to such application.". 
(d) Section 788(f) (as amended by section 109 of this Act) is further 
amended by adding at the end thereof the following new sentence: 
"Of the amounts appropriated for each fiscal year to carry out this 
section— 
"(1) 25 percent of such amount for the fiscal year ending 
September 30,1986; and 
"(2) 37.5 percent of such amount for each of the fiscal years 
ending September 30,1987, and September 30,1988, 
shall be available to carry out subsection (d).". 
(e) Section 788 is amended by redesignating subsection (f) (as 
amended by section 109 of this Act and subsection (d) of this section) 
as subsection (g) and by inserting after subsection (e) the following: 
"(f) The Secretary may make grants to schools of veterinary 
medicine for— 
"(1) the development of curricula for training in the care of 
animals used in research, the treatment of animals while being 
used in research, and the development of alternatives to the use 
of animals in research; 
"(2) the provision of such training; and 
"(3) large animal care and research.". 
(f) The heading for section 788 is amended to read as follows: 42USC295g-8. 
Animals. 
Research and 
development. 
TWO-YEAR SCHOOLS OF MEDICINE, INTERDISCIPUNARY TRAINING, AND 
CURRICULUM DEVELOPMENT". 
ADVANCED FINANCIAL DISTRESS ASSISTANCE 
SEC 218. Subsections (bXD and (f) of section 788B are each 
amended by striking out "five" and inserting in lieu thereof "six". 
42 u s e 295g-8b. 
GRADUATE PROGRAMS IN HEALTH ADMINISTRATION 
SEC 219. Section 791(cX2XAXi) is amended by inserting before the 
semicolon a comma and "except that in any case in which the 
number of minority students enrolled in the graduate educational 
programs of such entity in such school year will exceed an amount 
equal to 45 percent of the number of all students that will be 
enrolled in such programs in such school year, such application 
shall only be required to contain assurances that at least 20 individ-
uals will complete such programs in such school year". 
Minorities. 
42 u s e 295h. 
PROGRAM ELIMINATIONS 
SEC. 220. (a) Section 703 is repealed, 
(b) Section 708(c) is repealed. 
42 u s e 292c. 
42 u s e 292h. 
99 STAT. 544 
PUBLIC LAW 99-129—OCT. 22, 1985 
42 use 
295—295e-5. 
42 u s e 295g-2. 
42 u s e 295g-5. 
42 u s e 295g-8a. 
42 u s e 295g-8b. 
42 u s e 295g-9. 
Report. 
42 u s e 292h 
note. 
(c) Part D of title VII is repealed. 
(d) Section 782 is repealed. 
(e) Section 785 is repealed. 
(fKl) Section 788A is repealed. 
(2) The second sentence of section 788B(a) is amended by inserting 
"(as such section was in effect prior to October 1, 1985)" after 
"section 788A". 
(3) Section 788B(f) (as amended by section 218 of this Act) is 
further amended by striking out the last sentence. 
(4) Section 788B(h) (as amended by section 110 of this Act) is 
further amended— 
(A) by striking out "and section 788A" in the first sentence; 
and 
(B) by striking out the second sentence, 
(g) Section 789 is repealed. 
ANALYSIS OF FINANCIAL DISINCENTIVES TO CAREER CHOICES IN HEALTH 
PROFESSIONS 
SEC. 221. By October 1, 1986, the Secretary of Health and Human 
Services shall prepare and transmit to the Congress a report which 
contains— 
(1) an analysis of any financial disincentive to graduates of 
health professions schools which affects the specialty of practice 
chosen by such graduates or the decision of such graduates to 
practice their profession in an area which lacks an adequate 
number of health care professionals; and 
(2) recommendations for legislation and administrative action 
to correct any disincentives which are identified pursuant to 
clause (1) and which are contrary to the achievement of na-
tional health goals, including recommendations concerning the 
appropriateness of providing financial assistance to mitigate 
such disincentives. 
Loans. 
50 u s e app. 462 
note. 
50 u s e app. 
2216. 
Report. 
STUDY ON COMPUANCE WITH SELECTIVE SERVICE ACT 
SEC. 222. The Secretary of Health and Human Services, in 
cooperation with the Director of Selective Service, shall conduct a 
study to determine if health professions schools are engaged in a 
pattern or practice of failure to comply with section 12(f) of the 
Military Selective Service Act (50 U.S.C. App. 462(f)) (or regulations 
issued under such section) or are engaged in a pattern or practice of 
providing loans or work assistance to persons who are required to 
register under section 3 of such Act (and any proclamation of the 
President and regulations prescribed under that section) and have 
not so registered. The Secretary shall complete the study and report 
its resulte to the Congress not later than one year after the date of 
enactment of this Act. 
42 u s e 292h 
note. 
STUDY OF THE ROLE OF ALLIED HEALTH PERSONNEL IN HEALTH CARE 
D E U V E R Y 
SEC. 223. (aXD The Secretary of Health and Human Services shall 
arrange for the conduct of a study concerning the role of allied 
health personnel in health care delivery. The Secretary shall re-
quest the National Academy of Sciences to conduct the study under 
an arrangement under which the actual expenses incurred by the 
Academy in conducting such study will be paid by the Secretary and 
PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 545 
the Academy will prepare the report required by subsection (c). If 
the National Academy of Sciences is willing to do so, the Secretary 
shall enter into such an arrangement with the Academy for the 
conduct of the study. 
(2) If the National Academy of Sciences is unwilling to conduct the 
study required by paragraph (1) under the type of arrangement 
described in such paragraph, the Secretary shall enter into a similar 
arrangement with one or more appropriate nonprofit private 
entities. 
(b) The study required by subsection (a) shall— 
(1) assess the role of allied health personnel in health care 
delivery; 
(2) identify projected needs, availability, and requirements of 
various types of health care delivery systems for each type of 
allied health personnel; 
(3) investigate current practices under which each type of 
allied health personnel obtain licenses, credentials, and 
accreditation; 
(4) assess changes in programs and curricula for the education 
of allied personnel and in the delivery of services by such 
personnel which are necessary to meet the needs and require-
ments identified pursuant to paragraph (2); and 
(5) assess the role of the Federal, State, and local govern-
ments, educational institutions, and health care facilities in 
meeting the needs and requirements identified pursuant to 
paragraph (2). 
(c) By October 1, 1987, the Secretary of Health and Human 
Services shall transmit to the Committee on Labor and Human 
Resources of the Senate and the Committee on Energy and Com-
merce of the House of Representatives, and make available to the 
public, a report— 
(1) describing the study conducted under this section; 
(2) containing a statement of the data obtained under such 
study; and 
(3) specifying such recommendations for legislation and 
administrative action as the Secretary considers appropriate. 
State and local 
governments. 
Report. 
STUDY OF THE SUPPLY OF, AND REQUIREMENTS FOR, HEALTH 
PROFESSIONALS 
SEC. 224. (a) The Secretary of Health and Human Services shall 
conduct or enter into contracts for the conduct of analytic and 
descriptive studies of chiropractors, clinical psychologists, veterinar-
ians, optometrists, pharmacists, podiatrists, public health profes-
sionals, and health administrators. The studies shall include 
evaluations and projections of the supply of, and requirements for, 
each such profession by specialty and geographic location. The 
Secretary shall include in the report submitted on October 1, 1987, 
under section 708(dXl) of the Public Health Service Act the results 
of the studies conducted under this subsection. 
(b) The authority of the Secretary of Health and Human Services 
to enter into contracts under subsection (a) shall be effective for any 
fiscal year only to the extent or in such amounts as are provided in 
advance by appropriation Acts. 
Contracts. 
42 u s e 292h 
note. 
Report. 
42 u s e 292h. 
99 STAT. 546 
PUBLIC LAW 99-129—OCT. 22, 1985 
STUDY OF THE DEUVERY OF HEALTH CARE SERVICES TO HOMELESS 
INDIVIDUALS 
SEC. 225. (a) The Secretary of Health and Human Services shall 
arrange, in accordance with subsection (c), for the conduct of a study 
of the delivery of inpatient and outpatient health care services to 
homeless individuals. Such study shall include— 
(1) an evaluation of whether eligibility requirements in exist-
ing health care programs prevent homeless individuals from 
receiving health care services; 
(2) an evaluation of the efficiency of the delivery of health 
care services to homeless individuals; and 
State and local 
(3) recommendations for activities by Federal, State, and local 
governments. 
governments and private entities that would improve the avail-
ability of health care service delivery to homeless individuals. 
Report. 
(b) The Secretary shall report the results of the study required by 
subsection (a) to the Committee on Labor and Humsm Resources of 
the Senate and the Committee on Energy and Commerce of the 
House of Representatives not later than September 30,1986. 
(c)(1) The Secretary shall request the National Academy of Sci-
ences, acting through the Institute of Medicine, to conduct the study 
required by subsection (a) under an arrangement whereby the 
actual expenses incurred by the Academy directly related to the 
conduct of such study will be paid by the Secretary. If the Academy 
agrees to such request, the Secretary shall enter into such an 
agreement with the Academy. 
(2) If the National Academy of Sciences declines the Secretary's 
request to conduct such study under such arrangement, then the 
Secretary, after consultation with the Committee on Labor and 
Human Resources of the Senate and the Committee on Energy and 
Commerce of the House of Representatives, shall enter into a simi-
lar arrangement with another appropriate public or nonprofit entity 
to conduct such study. 
RECOVERY OF ASSISTANCE FOR COMMUNITY MENTAL HEALTH CENTERS 
SEC. 226. (a) Section 2115 is amended to read as follows: 
"RECOVERY 
"SEC. 2115. (a) If any facility with respect to which funds have 
been paid under the Community Mental Health Centers Act (as 
such Act was in effect prior to October 1,1981) is, at any time within 
twenty years after the completion of remodeling, construction, or 
expansion or after the date of its acquisition— 
"(1) sold or transferred to any entity (A) which would not have 
been qualified to file an application under section 222 of such 
42 use 2689J. 
Act (as such section wsus in effect prior to October 1,1981) or (B) 
which is disapproved as a transferee by the State mental health 
agency or by another entity designated by the chief executive 
officer of the State, or 
"(2) ceases to be used by a community mental health center in 
the provision of comprehensive mental health services, 
the United States shall be entitled to recover from the transferor, 
transferee, or owner of the facility, the base amount prescribed by 
subsection (cXD plus the interest (if any) prescribed by subsection 
(cX2). 
42 use 
300aa-14. 
42 u s e 2681. 
PUBLIC LAW 99-129—OCT. 22, 1985 
99 STAT. 547 
"(b) The transferor and transferee of a facility that is sold or 
transferred as described in subsection (a)(1), or the owner of a 
facility the use of which changes as described in subsection (aX2), 
shall provide the Secretary written notice of such sale, transfer, or 
change within 10 days after the date on which such sale, transfer, or 
cessation of use occurs or within 30 days after the date of enactment 
of this subsection, whichever is later. 
"(cXl) The base amount that the United States is entitled to 
recover under subsection (a) is the amount bearing the same ratio to 
the then value (as determined by the agreement of the parties or in 
an action brought in the district court of the United States for the 
district in which the facility is situated) of so much of the facility as 
constituted an approved project or projects as the amount of the 
Federal participation bore to the cost of the remodeling, construc-
tion, expansion, or acquisition of the project or projects. 
"(2)(A) The interest that the United States is entitled to recover 
under subsection (a) is the interest for the period (if any) described 
in subparagraph (B) at a rate (determined by the Secretary) based on 
the average of the bond equivalent rates of ninety-one-day Treasury 
bills auctioned during that period. 
"(B) The period referred to in subparagraph (A) is the period 
beginning— 
"(i) if notice is provided as prescribed by subsection (b), 191 
days after the date on which such sale, transfer, or cessation of 
use occurs, or 
"(ii) if notice is not provided as prescribed by subsection (b), 11 
days after such sale, transfer, or cessation of use occurs, 
and ending on the date the amount the United States is entitled to 
recover is collected. 
"(d) The Secretary may waive the recovery rights of the United 
States under subsection (aX2) with respect to a facility (under such 
conditions as the Secretary may establish by regulation) if the 
Secretary determines that there is good cause for waiving such 
rights. 
"(e) The right of recovery of the United States under subsection (a) Prohibition 
shall not, prior to judgment, constitute a lien on any facility.". 
(b) In the case of any facility that was or is constructed, 
remodeled, expanded, or acquired on or before the date of enactment 
of this Act or within 180 days after the date of enactment of this 
Act, the period described in clause (i) or (ii), as the case may be, of 
section 2115(cX2XB) of the Public Health Service Act (as amended by 
subsection (a) of this section) shall begin no earlier than 181 days 
after the date of enactment of this Act. 
(c) The amendments made by subsection (a) of this section shall 
not adversely affect other legal rights of the United States. 
42 u s e 300aa-14 
note. 
42 u s e 300aa-14 
note. 
NURSING EDUCATION IN GERIATRICS 
SEC. 227. (aXl) Section 820(a) is amended by redesignating para-
graphs (4), (5), (6), (7), and (8) as paragraphs (5), (6), (7), (8), and (9), 
respectively, and by inserting after paragraph (3) the following new 
paragraph: 
"(4) demonstrate improved geriatric training in preventive 
care, acute care, and long-term care (including home health 
care and institutional care);". 
(2) Section 820(d) is amended— 
Ante, p. 393. 
99 STAT. 548 
PUBLIC LAW 99-129—OCT. 22, 1985 
Grants. 
Contracts. 
Education. 
Aged persons. 
Ante, p. 394. 
Ante, p. 394. 
(A) by striking out "paragraphs (1) through (5)" in paragraph 
(1) and inserting in lieu thereof "paragraphs (1) through (6)"; 
(B) by striking out "paragraphs (6), (7), and (8)" in the first 
sentence of paragraph (2) and inserting in lieu thereof "para-
graphs (7), (8), and (9)"; and 
(C) by striking out "paragraph (7)" in the second sentence of 
paragraph (2) and inserting in lieu thereof "paragraph (8)". 
(b) Section 821(a) is amended by adding at the end thereof the 
following new sentence: "In making grants and entering into con-
tracts under this section, the Secretary shall give priority to applica-
tions for grants and contracts for education projects in geriatric and 
gerentologiceil nursing.". 
(c) The second sentence of section 822(aXl) is amended by inserting 
"(particularly problems in the delivery of preventive care, acute 
care, and long-term care (including home health care and institu-
tional care) to such patients)" after "geriatric patients". 
42 u s e 254/ 
note. 
Ante, p. 536. 
EFFECTIVE DATE 
SEC. 228. (a) Except as provided in subsection (b), this Act and the 
amendments and repeals made by this Act shall take effect on the 
date of enactment of this Act. 
(bXl) The amendments made by section 101(a) of this Act shall 
take effect as of October 1,1985. 
(2) The amendments made by section 208(e) of this Act shall teike 
effect nine months after the date of enactment of this Act. 
(3) The amendment made by section 208(h) of this Act shall take 
effect as of October 1,1983. 
(4) The provisions of section 746 of the Public Health Service Act 
(as added by the amendment made by section 209(hX2) of this Act) 
shall take effect as of June 30,1984. 
(5) The amendments made by section 209(j) of this Act shall take 
effect as of June 30,1984. 
(6) The amendments made by section 213(a) of this Act shall take 
effect as of October 1,1985. 
Approved October 22, 1985. 
LEGISLATIVE HISTORY—H.R. 2410 (S. 1288): 
HOUSE REPORT No. 99-145 (Ck)mm. on Energy and Commerce). 
SENATE REPORT No. 99-105 accompanying S. 1283 (Comm. on Labor and Human 
RGSourcGs) 
CONGRESSIONAL RECORD, Vol. 131 (1985): 
July 15, considered and passed House. 
July 19, S. 1283 considered in Senate; H.R. 2410, amended, passed in lieu. 
Oct. 3, House concurred in Senate amendment with amendment. 
Oct. 4, Senate concurred in House amendment.