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(b) The Commissioner may, if he finds it necessary to do so in order to assure an equitable distribution of the benefits of this Act, assign, within the maximum amounts specified in subsection (a), insurance uotas applicable to eligible lenders, or to States or areas, and may rom time to time reassign unused portions of these quotas.

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LIMITATIONS ON INDIVIDUAL. LOANS A N D ON INSURANCE

SEC. 6, (a) No loan or loans by one or more eligible lenders in excess of $1,000 in the aggregate to any student in any academic year or its equivalent shall be covered by insurance under this Act. The aggregate insured unpaid principal amount of all such insured loans made to any student shall not at any time exceed $2,000. The annual insurable limit per student shall not be deemed to be exceeded by a line of credit under which actual payments by the lender to the borrower will not be made in any year in excess of the annual limit. (b) The insurance liability on any loan insured under this Act shall be 100 per centum of the unpaid balance of the principal amount of the loan. Such insurance liability shall not include liability for interest whether or not that interest has been added to the principal amount of the loan. SOURCES OF F U N D S

SEC. 7. Loans made by eligible lenders in accordance with this Act shall be insurable whether made from funds fully owned by the lender or from funds held by the lender in a trust or similar capacity and available for such loans. ELIGIBILITY OF STUDENT BORROWERS A N D TERMS OF STUDENT LOANS

SEC. 8. (a) A loan by an eligible lender shall be insurable under the provisions of this Act only if— (1) made to a student who (A) has been accepted for enrollment at an eligible institution or, m the case of a student already attending such institution, is in good standing there as determined by the institution, and (B) is carrying at least one-half of the normal full-time workload as determined by the institution, and (C^ has provided the lender with a statement of the institution which sets forth a schedule of the tuition and fees applicable to that student and its estimate of the cost of board and room for such a student; and (2) evidenced by a note or other written agreement which— (A) is made without security and without endorsement, except that if the borrower is a minor and such note or other written agreement executed by him would not, under the applicable law, create a binding obligation, endorsement may be required, (B) provides for repayment (except as provided in subsection (c)) of the principal amount of the loan in installments over a period of not less than three years (unless sooner repaid) nor more than six years beginning not earlier than nine months nor later than one year after the date on which the student ceases to carry at an eligible institution at least one-half the normal full-time academic workload as determined by the institution in accordance with regulations of the Commissioner, except (i) as provided in clause (C) below, (ii) that the period of the loan may not exceed nine years from the execution of the note or written agreement

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evidencing it and (iii) 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 cost of insurance premiums, or other default by the borrower, as may be authorized by regulations of the Commissioner in effect at the time the loan is made, (C) provides that periodic installments of principal need not be paid, but interest shall accrue and be paid, during any period (i) during which the borrower is pursuing a full-time course of study at an institution of higher education or at a comparable institution outside the States approved for this purpose by the Commissioner, (ii) not in excess of three years, during which the borrower is a member of the Armed Forces of the United States, or (iii) not in excess of three years during which the borrower is in service as a volunteer under the Peace Corps Act, and any such period shall not be included in determining the six-year period or the nineyear period provided in clause (B) above, (D) provides for interest on the unpaid principal balance of the loan at a yearly rate, not exceeding the applicable maximum rate prescribed and defined by the Secretary (within the limits set forth in subsection (b)) on a national, regional, or other appropriate basis, which interest shall be payable in installments over the period of the loan except that, if provided in the note or other written agreement, any interest payable by the student may be deferred until not later than the date upon which repayment of the first installment of principal falls due, in which case interest that has so accrued during that period may be added on that date to the principal (but without thereby increasing the insurance liability under this Act), (E) provides that the lender will not collect or attempt to collect from the borrower any portion of the interest on the note which is payable by the Commissioner under this Act, (F) entitles the student borrower to accelerate without penalty repayment of the whole or any part of the loan, and (G) contains such other terms and conditions, consistent with the provisions of this Act and with the regulations issued by the Commissioner pursuant to this Act, as may be agreed upon by the parties to such loan, including, if agreed upon, a provision requiring the borrower to pay to the lender, in addition to principal and interest, amounts equal to the insurance premiums payable by the lender to the Commissioner with respect to such loan. (b) No maximum rate of interest prescribed and defined by the Secretary for the purposes of clause (2)(D) of subsection (a) may exceed 6 per centum per annum on the unpaid principal balance of the loan, except that under circumstances which threaten to impede the carrying out of the purposes of this Act, one or more of such maximum rates of interest may be as high as 7 per centum per annum on the unpaid principal balance of the loan. (c) The total of the payments by a borrower during any year of any repayment period with respect to the aggregate amount of all loans to that borrower which are insured under this Act shall not be less than $360 or the balance of all such loans (together with interest thereon), whichever amount is less.

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PUBLIC LAW 89-287-0 CT. 22, 1965

FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS

SEC. 9. (a)(1) Each student who has received a loan— ^ A) which is insured under this Act; (B) which was made for study at an eligible institution under a State student loan program (meeting criteria prescribed by the Commissioner), and which was contracted for, and paid to the student, within the period specified by paragraph (4); or (C) which is insured under a program of a State or of a nonprofit private institution or organization, which was contracted for, and paid to the student, within the period specified in paragraph (4), and which— (i) in the case of a loan insured prior to July 1, 1967, was made by an eligible lender and is insured under a program which meets the requirements of subparagraph (E) of subsection (b)(1) and provides that repayment of such loan shall be in installments beginning not earlier than sixty days after the student ceases to pursue a course of study (as described in subparagraph (D) of subsection (b)(1)) at an eligible institution, or (ii) in the case of a loan insured after June 30, 1967, is insured under a program covered by an agreement made pursuant to subsection (b), and whose adjusted family income is less than $15,000 at the time of execution of the note or written agreement evidencing such loan, shall be entitled to have paid on his behalf and for his account to the holder of the loan, over the period of the loan, a portion of the interest on the loan. For the purposes of this paragraph, the adjusted family income of a student shall be determined pursuant to regulations of the Commissioner in effect at the time of the execution of the note or written agreement evidencing the loan. Such regulations shall provide for taking into account such factors, including family size, as the Commissioner deems appropriate. (2) The portion of the interest on a loan which a student is entitled to have paid on his behalf and for his account to the holder of the loan pursuant to paragraph (1) shall be equal to the total amount of the interest on the unpaid principal amount of the loan which accrues prior to the beginning of the repayment period of the loan, and 3 per centum per annum of the unpaid principal amount of the loan (excluding interest which has been added to principal) thereafter; but such portion of the interest on a loan shall not exceed, for any period, the amount of the interest on that loan which is payable by the student after taking into consideration the amount of any interest on that loan which the student is entitled to have paid on his behalf for that period under any State or private loan insurance program. I n the absence of fraud by the lender, that determination shall be final so far as the obligation of the Commissioner to pay a portion of the interest on a loan is concerned. The holder of a loan with respect to which payments are required to be made under this section shall be deemed to have a contractual right, as against the United States, to receive from the Commissioner the portion of interest which has been so determined. The Commissioner shall pay this portion of the interest to the holder of the loan on behalf of and for the account of the borrower at such times as may be specified in regulations in force when the applicable agreement entered into pursuant to subsection (b) was made, or if the loan was made by a State or is insured under a program which is not covered by such an agreement, at such times as may be specified in regulations in force at the time the loan was paid to the student.

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[79 STAT.

(3) Each holder of a loan with respect to which payments of interest are required to be made by the Commissioner shall submit to the Commissioner, at such time or times and in such manner as he may prescribe, statements containing such information as may be required by or pursuant to regulation for the purpose of enabling the Commissioner to determine the amount of the payment which he must make with respect to that loan. (4) The period referred to in subparagraphs (B) and (C) of paragraph (1) of this subsection shall begin on the date of enactment of this Act and end on June 30, 1968, except that, in the case of a loan made or insured under a student loan or loan insurance program, to enable a student who has obtained a prior loan made or insured under such program to continue his educational program, such period shall end on June 30, 1972. (5) No payment may be made under this section with respect to the interest on a loan made from a student loan fund established under title II of the National Defense Education Act of 1958. (b)(1) Any State or any nonprofit private institution or organization may enter into an agreement with the Commissioner for the purpose of entitling students who receive loans which are insured under a student loan insurance program of that State, institution, or organization to have made on their behalf payments equal to those provided for in subsection (a) if the Commissioner determines that the student loan insurance program— (A) authorizes the insurance of not less than $1,000 in loans to any individual student in any academic year or its equivalent (as determined under regulations of the Commissioner); (B) authorizes the insurance of loans to any individual student for at least two academic years of study or their equivalent (as determined under regulations of the Commissioner); (C) provides that (i) the student borrower shall be entitled to accelerate without penalty the whole or any part of an insured loan, (ii) the period of any insured loan may not exceed nine years from the date of execution of the note or other written evidence of the loan, and (iii) the note or other written evidence of any loan may contain such provisions relating to repayment in the event of default by the borrower as may be authorized by regulations of the Commissioner in effect at the time such note or written evidence was executed; (D) subject to subparagraph (C), provides that, where the total of the insured loans to any student which are held by any one person exceeds $1,000, repayment of such loans shall be in installments over a period of not less than three years nor more than six years beginning not earlier than nine months nor later than one year after the student ceases to pursue a full-time course of study lat an eligible institution, except that if the program provides for the insurance of loans f|Or part-time study at eligible institutions the program shall provide that such repayment period shall begin not earlier than nine months nor later than one year after the student ceases to carry at an eligible institution at least one-half the normal full-time academic workload as determined by the institution; (E) authorizes interest on the unpaid balance of the loan at a yearly rate not in excess of 6 per centum per annum on the unpaid principal balance of the loan (exclusive of any premium for insurance which may be passed on to the borrower); (F) insures not less than 90 per centum of the unpaid principal of loans insured under the program;

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(G) does not provide for collection of an excessive insurance premium; (H) provides that the benefits of the loan insurance program will not be denied any student because of his family income or lack of need if his adjusted family income at the time the note or written agreement is executed is less than $15,000 (as determined pursuant to the regulations of the Commissioner prescribed under section 9(a)(1)); (I) provides that a student may obtain insurance under the program for a loan for any year of study at an eligible institution; and (J) in the case of a State program, provides that such State program is administered by a single State agency, or by one or more nonprofit private institutions or organizations under the supervision of a single State agency. (2) Such an agreement shall— (A) provide that the holder of any such loan will be required to submit to the Commissioner, at such time or times and in such manner as he may prescribe, statements containing such information as may be required by or pursuant to regulation for the purpose of enabling the Commissioner to determine the amount of the payment which he must make with respect to that loan; (B) include such other provisions as may be necessary to protect the financial interest of the United States and promote the purposes of this Act and as are agreed to by the Commissioner and the State or private organization or institution; and (C) provide for making such reports in such form and containing such information as the Commissioner may reasonably require to carry out his function under this Act and for keeping such records and for affording such access thereto as the Commissioner may find necessary to assure the correctness and verification of such reports. DIRECT LOANS

SEC. 10. (a) The Commissioner may make a direct loan to any student who would be eligible for an insured loan under this Act if (1) in the particular area in which the student resides loans which are insurable under this Act are not available at the rate of interest prescribed by the Secretary pursuant to section 8(a)(2)(D) for such area, or (2) the particular student has been unable to obtain an insured loan at a rate of interest which does not exceed such rate prescribed by the Secretary. (b) Loans made under this section shall bear interest at the rate prescribed by the Secretary under section 8(a)(2)(D) for the area where the student resides, and shall be made on such other terms and conditions as the Commissioner shall prescribe, which shall conform as nearlj^ as practicable to the terms and conditions of loans insured under this Act. (c) There is authorized to be appropriated the sum of $1,000,000 for the fiscal year ending June 30, 1966 and for each of the four succeeding fiscal years to carry out this section. CEKTTFICATES OF INSURANCE — ^ EFFECTIVE DATE OF INSURANCE

SEC. 11. (a)(1) If, upon application by an eligible lender, made upon such form, containing such information, and supported by such evidence as the Commissioner may require, and otherwise in conformity with this section, the Commissioner finds that the applicant has made a loan to an eligible student which is insurable under the provir

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sions of this Act, he may issue to the applicant a certificate of insurance covering the loan and setting forth the amount and terms of the insurance. Certificates of ^2) lusurance evidenced by a certificate of insurance pursuant to "EffT^^ive date, subsection (a)(1) shall become effective upon the date of issuance of the certificate, except that the Commissioner is authorized, in accordance with regulations, to issue commitments with respect to proposed loans, or with respect to lines (or proposed lines) of credit, submitted by eligible lenders, and in that event, upon compliance with subsection (a)(1) by the lender, the certificate of insurance may be issued effective as of the date when any loan, or any payment by the lender pursuant to a line of credit, to be covered by such insurance was made. Such insurance shall cease to be effective upon sixty days' default by the lender in the payment of any installment of the premiums payable pursuant to subsection (c). (3) An application submitted pursuant to subsection (a)(1) shall contain (A) an agreement by the applicant to pay, in accordance with regulations, the premiums fixed by the Commissioner pursuant to subsection (c), and (B) an agreement by the applicant that if the loan is covered by insurance the applicant will submit such supplementary reports and statements during the effective period of the loan agreement, upon such forms, at such times, and containing such information as the Commissioner may prescribe by or pursuant to regulation. Comprehensive (j^) ([) j j j j^g^ ^f requiring a separate insurance application and issuing a separate certificate of insurance for each student loan made by an eligible lender as provided in subseotion (a), the Commissioner may, in accordance with regulations consistent with section 5, issue to any eligible lender applying therefor a certificate of comprehensive insurance coverage which shall, without further action by the Commissioner, insure all insurable loans made by that lender, on or after the date of the certificate and before a specified cutoff date, within the limits of an aggregate maximum amount stated in the certificate. Such regulations may provide for conditioning such insurance, with respect to any loan, upon compliance by the lender with such requirements (to be stated or incorporated by reference in the certificate) as in the Commissioner's judgment will best achieve the purpose of this subsection while protecting the financial interest of the United States and promoting the objectives of this Act, including (but not limited to) provisions as to the reporting of such loans and information relevant thereto to the Commissioner and as tO' the payment of initial and other premiums and the effect of default therein, and including provision for confirmation by the Commissioner from time to time (through endorsement of the certificate) of the coverage of specific new loans by such certificate, which confirmation shall be incontestable by the Commissioner in the absence of fraud or misrepresentation of fact or patent error. (2) If the holder of a certificate of comprehensive insurance issued under this subsection grants to a student a line of credit extending beyond the cutoff date specified in that certificate, loans or payments thereon made by the holder after that date pursuant to the line of credit shall not be deemed to be included in the coverage of that certificate except as may be specifically provided therein; but, subject to the limitations of section 5, the Cormnissioner may, in accordance with regulations, make commitments to insure such future loans or payments, and such commitments may be honored either as provided m subsection (a) or by inclusion of such insurance in comprehensive coverage under this subsection for the period or periods in which such future loans or payments are made.

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(c) The Commissioner shall, pursuant to regulations, charge for premium insurance on each loan under this Act a premium in an amount not '^ ^'•^^^• to exceed one-fourth of 1 per centum per year of the unpaid principal amount of such loan (excluding interest added to principal), payable in advance, at such time and in such manner as may be prescribed by the Commissioner. Such regulations may provide that such premium shall not be payable, or if paid shall be refundable, with respect to any period after default in the payment of principal or interest or after the borrower has died or become totally and permanently disabled, if (1) notice of such default or other event has been duly given, and (2) request for payment of the loss insured against has been made or the Commissioner has made such payment on his own motion pursuant to section 12(a). (d) The rights of an eligible lender arising under insurance evidenced by a certificate of insurance issuied to it under this section may be assigned as security by such lender 'only to another eligible lender, and subject to regulation by the Commissioner. (e) The consolidation of the obligations of two or more insured Consolidated loans obtained by a student borrower in any fiscal year into a single l o a n s. obligation evidenced by a single instrument of indebtedness shall not affect the insurance by the United States. If the loans thus consolidated are covered by separate certificates of insurance issued under subsection (a), the Commissioner may upon surrender of the original certificates issue a new certificate of insurance in accordance with that subsection upon the consolidated obligation; if they are covered by a single comprehensive certificate issued under subsection (b), the Commissioner may amend that certificate accordingly. PROCEDURE ON D E F A U L T, D E A T H, OR DISABILITY OF S T U D E N T

SEC. 12. (a) Upon default by the student borrower on any loan covered by insurance pursuant to this Act, or upon the death of the student borrower or a finding by the insurance beneficiary that the borrower has become totally and permanently disabled (as determined in accordance with regulations established by the Commissioner) before the loan has been repaid in full, and prior to the commencement of suit or other enforcement proceeding upon security for that loan, the insurance beneficiary shall promptly notify the Commissioner, and the Commissioner shall if requested (at that time or after further collection efforts) by the beneficiary, or may on his own motion, if the insurance is still in effect, pay to the beneficiary the amount of the loss sustained by the insured upon that loan as soon as that amount has been determined. The "amount of the loss" on any loan shall, for the purposes of this subsection and subsection (b), be deemed to be an amount equal to the unpaid balance of the principal amount of the loan. (b) Upon payment by the Commissioner of the insured portion of the loss pursuant to subsection (a), the United States shall be subrogated to all of the rights of the holder of the obligation upon the insured loan and shall be entitled to an assignment of the note or other evidence of the insured loan by the insurance beneficiary. If the net recovery made by the Commissioner on a loan after deduction of the cost of that recovery (including reasonable administrative costs) exceeds the amount of the loss, the excess shall be paid over to the insured. (c) Nothing in this section or in this Act shall be construed to preclude any forbearance for the benefit of the student borrower which may be agreed upon by the parties to the insured loan and approved by the Commissioner, or to preclude forbearance by the Commissioner

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"Insurance beneficiary." "Default."

PUBLIC LAW 89-287-OCT. 22, 1965

[79 STAT.

in the enforcement of the insured obliga-tion after payment on that insurance, or to require collection of the amount of any loan by the insurance beneficiary or by the Commissioner from the estate of a deceased borrower or from a borrower found by the insurance beneficiary to have become permanently and totally disabled. (d) Nothing in this section or in this Act shall be construed to excuse the holder of a loan from exercising reasonable care and diligence in the making and collection of loans under the provisions of this Act. If the Commissioner, after reasonable notice and opportunity for hearing to an eligible lender, finds that it has substantially failed to exercise such care and diligence or to make the reports and statements required under section 9(a)(3) and section 11(a)(3), or to pay the required insurance premiums, he shall disqualify that lender for further insurance on loans granted pursuant to this Act until he is satisfied that its failure has ceased and finds that there is reasonable assurance that the lender will in the future exercise necessary care and diligence or comply with such requirements, as the case may be. (e) As used in this section— (1) the term "insurance beneficiary" means the insured or its authorized assignee in accordance with section 1 1 (d); and (2) the term "default" includes only such defaults as have existed for (A) one hundred and twenty days in the case of a loan which is repayable in monthly installments, or (B) one hundred and eighty days in the case of a loan which is repayable in less frequent installments. INSURANCE FUND

Insufficient moneys.

SEC. 13. (a) There is hereby established a vocational student loan insurance fund (hereinafter in this section called the "fund") which shall be available without fiscal year limitation to the Commissioner for making payments in connection with the default of loans insured under this Act. All amounts received by the Commissioner as premium charges for insurance and as receipts, earnings, or proceeds derived from any claim or other assets acquired by the Commissioner in connection with his operations under this Act, and any other moneys, property, or assets derived by the Commissioner from his operations m connection with this section, shall be deposited in the fund. All payments in connection with the default of loans insured under this Act shall be paid from the fund. Moneys in the fund not needed for current operations under this section may be invested in bonds or other obligations guaranteed as to principal and interest by the United States. (b) If at any time the moneys in the fund are insufficient to make payments in connection with the default of any loan insured under this Act, the Commissioner is authorized to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Commissioner with the approval of the Secretary of the Treasury. Such notes pr other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations issued hereunder and for that purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the

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Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under that Act, as amended, are extended to include any purchases of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. Sums borrowed under this subsection shall be deposited in the fund and redemption of such notes and obligations shall be made by the Commissioner from such fund. LEGAL POWERS A N D

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RESPONSIBILITIES

SEC. 14. (a) In the performance of, and with respect to, the functions, powers, and duties vested in him by this Act, the Commissioner may— (1) prescribe such regulations as may be necessary to carry out the purposes of this Act; (2) sue and be sued in any court of record of a State having general jurisdiction or in any district court of the United States, and such district courts shall have jurisdiction of civil actions arising under this Act with out regard to the amount in controversy, and any action instituted under this subsection by or against the Commissioner shall survive notwithstanding any change in the person occupying the office of Commissioner or any vacancy in that office; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Commissioner or property under his control, and nothing herein shall be construed to except litigation arising out of activities under this Act from the application of sections 507(b) and 2679 of title 28 of the United States Code and of section 367 of the Revised Statutes (5 U.S.C. 316); (3) include in any contract for insurance such terms, conditions, and covenants relating to repayment of principal and payment of interest, relating to his obligations and rights and to those of eligible lenders, and borrowers in case of default, and relating to such other matters as the Commissioner determines to be necessary to assure that the purposes of this Act will be achieved; and any term, condition, and covenant made pursuant to this clause or any other provisions of this Act may be modified by the Commissioner if he determines that modification is necessary to protect the financial interest of the United States; (4) subject to the specific limitations in this Act, consent to the modification, with respect to rate of interest, time of payment of any installment of principal and interest or any portion thereof, or any other provision or any note or other instrument evidencing a loan which has been insured under this Act; (5) enforce, pay, or compromise, any claim on, or arising because of, any such insurance; and (6) enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right or redemption. (b) The Commissioner shall, with respect to the financial operations arising by reason of this Act— (1) prepare annually and submit a budget program as provided for wholly owned Government corporations by the Government Corporation Control Act; and (2) maintain with respect to insurance under this Act an integral set of accounts, which shall be audited annually by the

^^ Stat. 910, Ht: ^^ ^'^'^

ram''^*ub-^'° mTs^ion" 59 Stat. 597. 31 USC 841 "Vudit.

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[79 STAT.

General Accounting OiRce in accordance with principles and procedures applicable to commercial corporate transactions, as provided by section 105 of the Government Corporation Control Act, except that the transactions of the Commissioner, including ^^^ Settlement of insurance claims and of claims for payments pursuant to section 9^, and transactions related thereto and vouchers approved by the Commissioner in connection with such transactions, shall be final and conclusive upon all accounting and other officers of the Government.

59 stat^- ^59^9.

31 Tso^850. ^1 uTe acn r

ADVISORY COUNCIL ON INSURED LOANS TO VOCATIONAL STUDENTS

e^^sHnr'''°™"

pensation.

60 Stat. 808:

75 Stat. 339, 340.

SEC. 15. (a) The Secretary shall establish in the Office of Education an Advisory Council on Insured Loans to Vocational Students, consisting of the Commissioner, who shall be Chairman, and eight members appointed, without regard to the civil service laws, by the Secretary. The membership of the Council shall include persons representing State loan insurance programs, private nonprofit loan insurance programs, financial and credit institutions, and eligible institutions. (b) The Advisory Council shall advise the Commissioner in the preparation of general regulations and with respect to policy m'atters arising in the administration of this Act, including policies and procedures governing the making of advances under section 3, the Federal payments to reduce student interest costs under section 9 and the making of loans under section 10. (^) Members of the Advisory Council, while attending meetings or conferences of such Council, or otherwise engaged in the business of such Council, shall be entitled to receive compensation at a rate fixed by the Secretary, but noit exceeding $100 per diem, including travel time, and while so serving on the business of the Advisory Council away from their homes or regular places of business, they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5 of the Administrative Expenses Act of 1946 (5 U.S.C. 73l)-2), for persons in the Government service

employed intermittently. PARTICIPATION BY FEDERAL CREDIT UNIONS I N FEDERAL, STATE, AND PRIVATE STUDENT LOAN INSURANCE PROGRAMS

SEC. 16. Notwithstanding any other provision of law. Federal credit unions shall, pursuant to regulations of the Director of the Bureau of Federal Credit Unions, have power to make insured loans u p to 5 per centum of their assets, to student members in accordance with the provisions of this Act or in accordance with the provisions of any State or nonprofit private student loan insurance program with respect to which there is in effect an agreement with the Commissioner under section 9(b). DEFINITIONS

SEC. 17. As used in this Act— (a) The term "eligible institution" means a business or trade school, or technical institution or other technical or vocational school, in any State, which (1) admits as regular students only persons who have completed or left elementary or secondary school and who have the ability to benefit from the training offered by such institution; (2) is legally authorized to provide, and provides within that State, a proram of postsecondary vocational or technical education designed to t individuals for useful employment in recognized occupations; (3) has been in existence for two years or has been specially accredited by

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the Commissioner as an institution meeting the other requirements of this subsection; and (4) is accredited (A) by a nationally recognized accrediting agency or association listed by the Commissioner pursuant to this clause, (B) if the Commissioner determines that there is no nationally recognized accrediting agency or association qualified to accredit schools of a particular category, by a State agency listed by the Commissioner pursuant to this clause, and (C) if the Commissioner determines there is no nationally recognized or State agency or association qualified to accredit schools of a particular category, by an advisory committee appointed by him and composed of persons specially qualified to evaluate training provided by schools of that category, which committee shall prescribe the standards of content, scope, and quality which must be met by those schools in order for loans to students attending them to be insurable under this Act and shall also determine whether particular schools meet those standards. For the purpose of this subsection, the Commissioner shall publish a list of nationally recognized accrediting agencies or associations and State agencies which he determines to be reliable authority as to the quality of education or training afforded. (b) The term "eligiole lender" means an eligible institution, an agency or instrumentality of a State, or a financial or credit institution (mcluding an insurance company) which is subject tp examination and supervision by an agency of the United States or of any State. (c) The term "line of credit" means an arrangement or agreement between the lender and the borrower whereby a loan is paid out by the lender to the borrower in annual installments, or whereby the lender agrees to make, in addition to the initial loan, additional loans in subsequent years. (d) The term "State" includes, in addition to the several States of the Union, the Commonwealth of Puerto Kico, the District of Columbia, Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands. (e) The term "Secretary" means the Secretary of Health, Education, and Welfare. (i) The term "Commissioner" means the Commissioner of Education. Approved October 22, 1965.

49-850 0-66—69

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PUBLIC LAW 89-288-OCT. 22, 1965

[79 STAT.

Public Law 89-288 October 22, 1965 [H. R. 7484]

Armed Forces. Surgeons General, rank. 70A Stat. 163.

10 USC 80318035.

AN ACT To amend title 10, United States Code, to provide for the rank of lieutenant general or vice admiral of officers of the Army, Navy, and Air Force while serving as Surgeons General.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 3036(b) of title 10, United States Code, is amended by striking out the second sentence and inserting in place thereof the following sentences: "Each officer covered by the preceding sentence, except the Surgeon General, shall be appointed in the regular grade of major general. The Surgeon General, while so serving, has the grade of lieutenant general." SEC. 2. Section 3962(a) of title 10, United States Code, is amended to read as follows: " (a) Upon retirement, a commissioned officer of the Regular Army who has served (1) as Chief of Staff to the President, (2) as Chief of Staff of the Army, (3) as a senior member of the Military Staff Committee of the United Nations, (4) in a position of importance and responsibility designated by the President to carry the grade of general or lieutenant general under section 3066 of this title, or (5) as Surgeon General of the Army in the grade of lieutenant general may, in the discretion of the President^ be retired, by and with the advice and consent of the Senate, in the highest grade held by him at any time on the active list." SEC. 3. Section 5133(b) of title 10, United States Code, is amended to read as follows: " (b) Except for an officer who is serving or has served in the grade of vice admiral under section 5137(a) of this title, an officer who is retired while serving as a chief of bureau, or who, after serving at least two and one-half years as a chief of bureau, is retired after completion of that service while serving in a lower rank or grade, may, in the discretion of the President, be retired with the grade of rear admiral or major general, as appropriate, and with retired pay based on that grade. If he is retired with the grade of rear admiral, he is entitled to the retired pay of a rear admiral in the upper half of that grade. An officer who is serving or has served in m e grade of vice admiral under section 5137(a) of this title may, upon retirement, be appointed by the President, by and with the advice and consent of the Senate, to the highest grade held by him while on the active list and with retired pay based on that grade." • SEC. 4. Section 5137(a) of title 10, United States Code, is amended by adding the following sentence: "The Surgeon General, while so serving, has the grade of vice admiral." SEC. 5. (a) Chapter 805 of title 10, United States Code, is amended by adding the following section: "§ 8036. Surgeon G e n e r a l: appointment, g r a d e "There is a Surgeon General of the Air Force who is appointed by the President by and with the advice and consent of the Senate from officers of the Air Force who are designated as medical officers under section 8067(a) of this title. The Surgeon General, while so serving, has the grade of lieutenant general." (b) The analysis of chapter 805 of title 10, United States Code, is amended by inserting the following item: "8036. Surgeon General: appointment, grade."

SEC. 6. Section 8962(a) of title 10, United States Code, is amended to read as follows:

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PUBLIC LAW 89-289-OCT. 22, 1965

" (a) Upon retirement, a commissioned ofl3.cer of the Kegular Air Force who has served (1) as Chief of Staff to the President, (2) as Chief of Staff of the A i r Force, (3) as a senior member of the Military Staff Committee of the United Nations, (4) in a position of importance and responsibility designated by the President to carry the grade of general or lieutenant general under section 8066 of this title, or (5) as Surgeon General of the A i r Force in the grade of lieutenant general may, in the discretion of the President, be retired, by and with the advice and consent of the Senate, in the highest grade held by him at any time on the active list." Approved October 22, 1965.

1051

^OA Stat. 494.

Public Law 89-289 AN ACT

October 22, 1965

To amend the StHiurities Act of 1933 with respe<t to oiTttiin registration fees. — [ H. R. /169]—

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 6(b) of the Securities Act of 1933 (15 U.S.C. 77f(b)) is amended by striking out "one one-hundredth" and insetting in lieu thereof "onefiftieth', and by striking out "$25.*' and ii^serting in lieu thereof "$100." SEC. 2. The amendments made by the first section of this Act shall take effect January 1, 1966. Approved October 22, 1965.

48 Stat. 78.

Effective date.

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PUBLIC LAW 89-290-OCT. 22, 1965

[79

STAT.

Public Law 89-290 October 22, 1965 [H. R. 3141]

Health Professions Educational Assistance Amendments of 1965.

AN ACT

To amend the Public Health Service Act to improve the educational quality of schools of medicine, dentistry, and osteopathy, to authorize grants "under that Act to such schools for the awarding of scholarships to needy students, and to extend expiring provisions of that Act for student loans and for aid in construction of teaching facilities for students in such schools and schools for other health professions, and for other purposes. 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 Educational Assistance Amendments of 1965". EDUCATIONAL IMPROVEMENT GRANTS A N D S C H O L A R S H I P GRANTS TO SCHOOLS OF M E D I C I N E, D E N T I S T R Y, OSTEOPATHY, OPTOMETRY, A N D PODIATRY

70 Stat. 717; 77 Stat. 164, 282. 42 USC 292 et seq.

SEC. 2. (a) Title VII of the Public Health Service Act is amended by adding at the end thereof the following new part s: " P A R T E — G R A N T S To IMPROVE THE QUALITY OF SCHOOLS OF MEDICINE, DENTISTRY, OSTEOPATHY, OPTOMETRY, AND PODIATRY "AUTHORIZATION OF APPROPRIATIONS

"SEC. 770. There are authorized to be appropriated $20,000,000 for the fiscal year ending June 30, 1966, $40,000,000 for the fiscal year ending June 30, 1967, $60,000,000 for the fiscal year ending June 30, 1968, and $80,000,000 for the fiscal year ending June 30, 1969, for grants under this part to assist schools of medicine, dentistry, osteopathy, optometry, and podiatry to improve the quality of their educational programs. "BASIC IMPROVEMENT GRANTS

Enrollment inc r e a s e requirement.

42 USC 293a.

"SEC. 771. (a) Subject to the provisions of subsection (b), the Surgeon General may make basic improvement grants as follows: "(1) For the fiscal year ending June 30, 1966, each school of medicine, dentistry, osteopathy, optometry, or podiatry whose application for a basic improvement grant for such year has been approved by the Surgeon General shall oe paid the sum of $12,500 plus the product obtained by multiplying $250 by the number of full-time students in such school. "(2) For each fiscal year in the period beginning July 1, 1966, and ending June 30, 1969, each such school whose application has been approved for such a grant for such year shall be paid the sum of $25,000 plus the product obtained by multiplying $500 by the number of full-time students in such school. " (b) The Surgeon General shall not make a grant under this section to any school unless the application for such grant contains or is supported by reasonable assurances that for the first school year beginning after the fiscal year for which such grant is made and each school year thereafter during which such a grant is made the first-year enrollment of full-time students in such school will exceed the highest firstyear enrollment of such students in such school for any of the five school years during the period July 1, 1960, through July 1, 1965, by at least 2i^ per centum of such highest first-year enrollment, or by fiive students, whichever is greater. The requirements of this subsection shall be in addition to the requirements of section 721(c)(2) (l>) of this Act, where applicable. The Surgeon General is authorized to waive (in whole or in part) the provisions of this subsection

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1053

if he determines, after consultation with the National Advisory Council on Medical, Dental, and Optometric, and Pediatric Education, that the required increase in first-year enrollment of full-time students in a school cannot, because of limitations of physical facilities available to the school for training, be accomplished without lowering the quality of training for such students. "(c) For purposes of this part and part F, regulations of the Surgeon General shall include provisions relating to determination of the number of Students enrolled in a school, or in a particular year-class in a school, as the case may be, on the basis of estimates, or on the basis of the number of students enrolled in a SChool, or in a particular yearclass in a school, in an earlier year, as the case may be, or on such basis as he deems appropriate for making such determination, and shall include methods of making such determinations when a school or a year-class was not in existence in an earlier year at a school. " (d) For purposes of this part and part F, the term 'full-time s t u d e n t s. ' ,t',X""l"r^ students' (whether such term is used by itself or in connection with a particular year-^class) means students pursuing a full-time course of study leading to a degree of doctor of medicine, doctor of dentistry or an equivalent degree, doctor of o to p a t h y, doctor of optometry or an equivalent degree, or doctor of podiatry or an equivalent degree. ((SPECIAL

IMPROVEMENT GRANTS

"SEC. 772. (a) From the sums appropriated under section 770 for any fiscal year and not required for making grants under section 771, the Surgeon General may make an additional grant for such year to any school of medicine, dentistry, o^teopaithy, optometry, or podiatry which has an approved application therefor and for which an application has been approved under section 771, if he determines that the requirements of subsection (b) are satisfied in the case of such applicant. "(b) No special improvement grant shall be made under this section unless such grant is recommended by the National Advisory Council on Medical, Dental, Optometric, and Pediatric Education and the Surgeon General determines that such grant will be utilized by the recipient school (1) to contribute toward the maintenance of, or to provide for, accreditation, or (2) to contribute toward the maintenance of, or to provide for, specialized functions which the school serves. "(c) No grant to any school under this section may exceed $100,000 for the fiscal year ending June 30, 1966; $200,000 for the fiscal year ending June 30, 1967; $300,000 for the fiscal year ending June 30, 1968; or $400,000 for the fiscal year ending June 30, 1969. ((APPLICATION S

FOR GRANTS

"SEC. 773. (a) The Surgeon General may from time to time set dates (not earlier than in the fiscal year preceding the year for which a grant is sought) by which applications for basic or special grants under section 771 or 772 for any fiscal year must be filed. "(b) To be eligible for a grant under this part, the applicant must (1) be a public or other nonprofit school of medicine, dentistry, osteopathy, optometry, or podiatry, and (2) be accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education, except that the requirement of this clause (2) shall be deemed to be satisfied if, (A) in the case of a school which by reason of no, or an insufficient, period of operation is not, at the time of application for a grant under this part, eligible for such accreditation, the

Limitation.

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PUBLIC LAW 89-290-OCT. 22, 1965

[79 STAT.

Commissioner finds, after consultation with the appropriate accreditation body or bodies, that there is reasonable assurance that the school will meet the accreditation standards of such body or bodies prior to the beginning of the academic year following the normal graduation date of students who are in their first year of instruction at such school during the fiscal year in which the Surgeon General makes a final determination as to approval of the application, or (B) in the case of any other school, the Commissioner finds after such consultation and after consultation with the Surgeon General that there is reasonable ground to expect that, with the aid of a grant or grants under this part, having regard for the purposes of the grant sought, such school will meet such accreditation standards within a reasonable time. "(c) The Surgeon General shall not approve or disapprove any application for a ^rant under this part except after consultation with the National Advisory Council on Medical, Dental, Optometric, and Podiatric Education (established by section 774). " (d) A grant under this part may be made only if the application therefor— "(1) is approved by the Surgeon General upon his determination that the applicant meets the eligibility conditions set forth in subsection (6) of this section; "(2) contains or is supported by assurances satisfactory to the Surgeon General that the applicant will expend in carrying out its functions as a school of medicine, dentistry, osteopathy, optometry, or podiatry, as the case may be, during the fiscal year for which such grant is sought, an amount of funds (other than funds for construction as determined by the Surgeon General) from nonFederal sources which are at least as great as the average amount of funds expended by such applicant for such purpose in the three fiscal years immediately preceding the fiscal year for which such grant is sought; " (3) contains such additional information as the Surgeon General may require to make the determinations required of him under this part and such assurances as he may find necessary to carry out the purposes of this part; and " (4) provides for such fiscal-control and accounting procedures and reports, and access to the records of the applicant, as the Surgeon General may require to assure proper disbursement of and accounting for Federal funds paid to the applicant under this part. "(e) I n considering applications for grants under section 772, the Surgeon General shall take into consideration the relative financial need of the applicant for such a grant and the relative effectiveness of the applicant's plan in carrying out the purposes set forth in clauses (1) or (2) of subsection (b) of section 7T2 and in contributing to an equitable geographical distribution of schools offering high-quality training of physicians, dentists, optometrists, and podiatrists. "NATIONAL ADVISORY COUNCIL ON MEDICAL, DENTAL, OPTOMETRIC, AND PODIATRIC E D U C A T I O N

Membership.

"SEC. 774. (a) There is hereby established in the Public Health Service a National Advisory Council on Medical, Dental, Optometric, and Podiatric Education consisting of the Surgeon General, who shall be Chairman, and twelve members appointed without regard to the civil service laws by the Surgeon General with the approval of the Secretary of Health, Education, and Welfare, and such appointments may be made for specified staggered terms. The appointed members

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of the Council shall be selected from, among leading authorities in the fields of medical, dental, optometric, and pediatric education, respectively, except that not less than three of such members shall be selected from the general public. " (b) The Council shall advise the Surgeon General in the prej^aration of general regulations and with respect to policy matters arising in the administration of this part and part F, and in the review of applications under this part. "(c) The Surgeon General is authorized to use the services of any member or members of the Council in connection with matters related to the administration of this part or part F, for such periods, in addition to conference periods, as he may determine. " (d) Appointed members of the Council, while attending confer- compensation; ences or meetings of the Council or while otherwise serving at the *'"°''*^ expenses. request of the Surgeon General, shall be entitled to receive compensation at rates to be fixed by the Secretary but not exceeding $100 per day, including travel time; and while away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5 of the Administrative Expenses Act of 1946 (5 U.S.C. 73b-2) for per- ^^^o sta^ aos; 75 Stat. 339, 340. sons in the Government service employed intermittently. " P A R T F—SCHOLARSHIP GRANTS TO SCHOOLS OF MEDICINE, OSTEOPATHY, DENTRISTRT, OPTOMETRY, PODIATRY, OR PHARMACY

((SCHOLARSHIP GRANTS "SEC. 780. (a) The Surgeon General shall make grants as provided in this part to each public or other nonprofit school of medicine, osteopathy, dentistry, optometry, podiatry, or pharmacy, which is accredited as provided in section 721(b)(1)(B) or section 773(b)(2), for scholar- ^os P- loss. ships to be awarded annually by such school to students thereof. "*"' ^' ^ °^^• " (b) The amount of the grant under subsection (a) to each such school shall be equal to $2,000 multiplied (1) for the fiscal year ending June 30, 1966, by one-tenth of the number of full-time first-year students of such school; (2) for the fiscal year ending June 30, 1967, by one-tenth of the number of full-time first-year students and secondyear students of such school; (3) for the fiscal year ending June 30, 1968, by one-tenth of the number of full-time first-year students, second-year students, and third-year students of such school; and (4) for the fiscal year ending June 30, 1969, by one-tenth of the number of full-time students of such school. For the fiscal year ending June 30, 1970, and for each of the two succeeding fiscal years, the grant under subsection (a) shall be such amount as may be necessary to enable such school to continue making paymeiits under scholarship awards to students who initially received such awards out of grants made to the school for fiscal years ending prior to July 1, 1969. " (c)(1) Scholarships may be awarded by schools from grants under Recipients, subsection (a) "^ ' ""«^^^^"-*'(A) only to individuals who have been accepted by them for enrollment as full-time first-year students, in the case of awards from such grants for the fiscal year ending June 30, 1966; " (B) only to individuals who have been so accepted, and individuals enrolled and in good standing as full-time second-year students, in the case of awards from such grants for the fiscal year ending June 30, 1967; " (C) only to individuals who have been so accepted, and individuals enrolled and in good standing as full-time second-year or

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77 Stat. 169. 42 USC 293d. 42 USC 294.

PUBLIC LAW 89-290-OCT. 22, 1965

[79 STAT

third-year students, in the case of awards from such grants for the fiscal year ending June 30, 1968; " (D) only to individuals who have been so accepted, and individuals enrolled and in good standing as full-time students, in the case of awards from such grants for the fiscal year ending June 30, 1969; and " (E) only to individuals enrolled and in good standing as fulltime students who initially received scholarship awards out of such grants for a fiscal year ending prior to July 1, 1969, in the case of awards from such grants for the fiscal year ending June 30, 1970, or the two succeeding fiscal years. "(2) Scholarships from grants under subsection (a) for any school year shall be awarded only to students from low-income families who, without such financial assistance could not pursue a course of study at the school for such year. Any such scholarship awarded for a school year shall cover such portion of the student's tuition, fees, books, equipment, and living expenses at the school making the award, but not to exceed $2,500 for any year, as such school may determine the student needs for such year on the basis of his requirements and financial resources. " (d) Grants under subsection (a) shall be made in accordance with regulations prescribed by the Surgeon General after consultation with the National Advisory Council on Medical, Dental, Optometric, and Podiatric Education. " (e) Grants under subsection (a) may be paid in advance or by way of reimbursement, and at such intervals as the Surgeon General may find necessary; and with appropriate adjustments on account of overpayments or underpayments previously made." (b) Section 724 of such Act (containing definitions) is amended by striking out "As used in this part" and inserting in lieu thereof "As used in this part and parts C, E, and F "; and section 740(a) of such Act is amended by striking out " (as defined in section 724)". E X T E N S I O N OF CONSTRUCTION PROGRAM FOR MEDICAL, D E N T A L, A N D OTHER H E A L T H PROFESSION SCHOOLS

42 USC 293. Appropriation.

42 USC 293a.

S E C 3. (a) Effective with respect to appropriations for fiscal years beginning after June 30, 1966, section 720 of such Act is amended to read as follows: "SEC. 720. There are hereby authorized to be appropriated $480,000,000 for the three fiscal years in the period beginning July 1, 1966, and ending June 30, 1969, of which not more than $160,000,000 may be available for grants before July 1, 1967, and not more than $320,000,000 may be available for grants before July 1, 1968, for— "(1) grants to assist in the construction of new teaching facilities for the training of physicians, pharmacists, optometrists, podiatrists, or professional public health personnel; "(2) grants to assist in the construction of new teaching facilities for the training of dentists; and "(3) grants to assist in the replacement or rehabilitation of existing teaching facilities for the training of physicians, pharmacists, optometrists, podiatrists, professional public health personnel, or dentists. Sums so appropriated shall remain available until expended." (b) Subsection (a) of section 721 of such Act is amended to read as follows:

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PUBLIC LAW 89-290-OCT. 22, 1965

" (a) The Surgeon General may from time to time set dates (not earlier than in the fiscal year preceding the year for which a grant is sought) by which applications for grants under this part for any fiscal year must be filed." (c) Section 7 2 1 (c)(2)(D) of such Act is amended by inserting immediately before the semicolon at the end thereof the following: ", and the requirements of this clause (D) shall be in addition to the requirements of section 771(b) of this Act, where applicable".

1057

42 USC 293^3 Ante. p. 1052.

EXTENSIOX OF, AND IMPRO^'EMENTS I N, PROGRAM FOR STUDENT LOANS

SEC. 4. (a) Subsection (b)(4) of section 740 of such Act is amended by striking out "July 1, 1966" and inserting in lieu thereof "July 1, 1969". (b)(1) Subsection (a) of section 741 of such Act is amended by striking out "may not exceed $2,000" and inserting in lieu thereof "may not exceed $2,500". (2) Section 741 of such Act is further amended (A) by redesignating subsections " (f) ", " (g) ", and " (h) " thereof as subsections " (g), " (h) ", and " (i) ", respectively, and (B) by adding immediately after subsection (e) thereof the following new subsection: " (f) " Where any person who obtained one or more loans from a loan fund established under this part— "(1) engages in the practice of medicine, dentistry, optometry, or osteopathy in an area in a State determined by the appropriate State health authority, in accordance with regulations provided by the Secretary, to have a shortage of and need for physicians, optometrists or dentists; and "(2) the appropriate State health authority certifies to the Secretary of Health, Education, and Welfare in such form and at such times as the Secretary may prescribe that such practice helps to meet the shortage of and need for physicians, optometrists or dentists in the area where the practice occurs; then 10 per centum of the total of such loans, plus accrued interest on such amount, which are unpaid as of the date that such practice begins, shall be canceled thereafter for each year of such practice, up to a total of 50 per centum of such total, plus accrued interest thereon." (c) Subsection (a) of section 742 of such Act is amended (1) by inserting "(other than section 744)" after "to carry out this part", and (2) by striking out that part of the first sentence that follows "June 30, 1966," and inserting in lieu thereof the following: "and $25,000,000 each for the fiscal year ending June 30, 1967, and the two succeeding fiscal years. There are further authorized to be appropriated to the Secretary such sums for the fiscal year ending June 30, 1970, and each of the two succeeding fiscal years as may be necessary to enable students who have received a loan under this part for any academic year ending before July 1, 1969, to continue or complete their education." (d) Section 743 of such Act is amended by striking out "1969" wherever it appears therein and inserting in lieu thereof "1972". (e) Section 744 of such Act is amended by adding at the end thereof the following new sentences: "There are hereby authorized to be appropriated such sums as may be necessary to carry out the purposes of this section, but not to exceed a total of $1,500,000. Loans made by the Surgeon General under this section shall mature within such

^2 USC 294. ^2 USC 294a.

42 USC 294b.

42 USC 294c. '^^ ^^^ ^^'^'^•

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42 USC 294

42 USC 294a.

Effective date.

Interest rate.

42 USC 29Vb

PUBLIC LAW 89-290-OCT. 22, 1965

[79 STAT.

period as may be determined by the Surgeon General to be appropriate m each case, but not exceeding fifteen years." (f)(1) Subsection (a) of section 740 of such Act is amended by inserting "pharmacy, podiatry," immediately after "dentistry,". (2) Subsection (b)(4) of section 740 of such Act is amended by inserting immediately after "doctor of osteopathy," the following: "bachelor of science in pharmacy or doctor of pharmacy, doctor of podiatry or doctor of surgical chiropody,". (3) Subsection (b) of section 741 of such Act is amended by inserting immediately after "doctor of osteopathy," the following: "oachelor of science in pharmacy or doctor of pharmacy, doctor of podiatry or doctor of surgical chiropody,". (4) Subsection (c) of such section 741 is amended by inserting "pharmacy, podiatry," immediately after "dentistry,". (5) The amendments made by paragraphs (1), (2), (3), and (4) of this subsection shall only be effective with respect to periods beginning on or after July 1, 1966. (^) (1) Subsection (e) of section 741 of such Act is amended by adding at the end thereof the following sentence: "Notwithstanding the foregoing provisions of this subsection, the rate of interest determined in accordance with such provisions for the first loan obtained by a student from a loan fund established under this part shall also apply to any subsequent loan to such student from such fund during his course of study." (^) Paragraph (5) of section 823(b) of such Act is amended by inserting immediately before the semicolon at the end thereof a colon and the following: ^''Provided, That notwithstanding the foregoing provisions of this paragraph, the rate of interest determined in accordance with such proAdsions for the first loan obtained by a student from a loan fund established under this part shall also apply to any subsequent loan to such student from such fund during his course oi study". TECHNICAL AMENDMENTS

77 Stat. 165. 42 USC 293a.

42 USC" 298b.

SEC. 5. (a) Clause (B) of section 721(b)(1) of such Act (relating to the accreditation of new schools of medicine, etc.) is amended by (1) striking o u t ", upon completion of such facility," and (2) inserting the following after "meet the accreditation standards of such body or bodies": "(i) prior to the beginning of the academic year following the normal graduation date of the first entering class in such school or (ii) if later, upon completion of the project for which assistance is requested and other projects (if any) under construction or planned and to be commenced within a reasonable time." (^) Section 843(f) of such Act (relating to accreditation of new schools of nursing), is amended (1) by striking out "any program of nurse education means a program accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education" and inserting in lieu thereof the following: "any program of nurse education means a program accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education, or a program accredited for the purpose of this Act by the Commissioner of Education", and (2) by striking out "new school" and the remainder of such clause and inserting in lieu thereof the following: "new school (which shall include a school that has not had a sufficient period of operation to be eligible for accreditation), (A) upon completion of such project and other construction projects (if any) then under construction or planned and to be commenced within a reasonable time, or (B) if later, then prior to the beginning of the first academic year following the normal graduation date of the first entering class in such school;". Approved October 22, 1965.

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 self, he saw an angel sitting above his head. This he immediately perceived was the cause of evils, as it had once been the cause of his successes. And he felt a pain through his heart, and a sudden pang seize his bowels, which began to torment him with great violence. Turning, then, to his friends, he said, "I, your god, am now commanded to depart this life, and fate will soon disprove your false assertions respecting me. He whom you have called an immortal, is now compelled to die, but we must receive our destiny as it is determined by God. Neither have we passed our life ingloriously, but in that splendour which is so much extolled." Saying this, he laboured much with the increase of pain. He was then carried with great haste into the palace, while the report spread throughout the people, that the king at all events would soon die. But the multitude with their wives and children, after their country's custom, sitting in sackcloth, implored God in behalf of the king; all places were filled with lamentation and weeping. But the king, as he lay reclining in an elevated chamber, and looking down upon them falling prostrate to the ground, could not refrain from tears himself. At length, overpowered by the pain of his bowels, for four days in succession, he ended his life, in the fifty-fourth year of his age and seventh of his reign. He reigned, therefore, four years under Caius Cesar, had the tetrarchy of Philip three years, and received that of Herod in the fourth year, reigning subsequently three years under Claudius Cesar." Thus far Josephus: in which statement, as in others, so in this, I cannot but admire his agreement with the divine Scriptures. But if he should appear to any to differ, in regard to the epithet of the king; yet the time and the fact show that it was the same individual, whether it happened by an error in writing that the name was changed, or in consequence of a double name applied to him; such as was the case with many.


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1059

Public Law 89-291 AN ACT

To amend the Public Health Service Act to provide for a program of grants to assist in meeting the need for adequate medical library services and facilities.

October 22, 1965

f - 597] ^

Be it enacted, by the Senate any House of Representatives of the United States of America in Congress assembled, A^slstanc.^'Acr^ SECTION 1. This Act may be cited as the "Medical Library Assist- of iges. ance Act of 1965". 691. SEC. 2. Title III of the Public Health Service Act is amended by 58 Stat. 241-280a. 42 USC inserting at the end thereof the following new part: " P A R T I—^ASSISTANCE TO MEDICAL LIBRARIES U

DECLARATION or POLICY AND STATEMENT OF PURPOSE

"SEC. 390. (a) The Congress hereby finds and declares that (1) the unprecedented expansion of knowledge in the health sciences within the past two decades has brought about a massive growth in the quantity, and major changes in the nature of, biomedical information, materials, and publications; (2) there has not been a corresponding growth in the facilities and techniques necessary adequately to coordinate and disseminate among health scientists and practitioners the ever-increasing volume of knowledge and information which has been developed in the health science field; (3) much of the value of the everincreasing volume of knowledge and information which has been, and continues to be, developed in the health science field will be lost unless proper measures are taken in the immediate future to develop facilities and techniques necessary to collect, preserve, store, process, retrieve, and facilitate the dissemination and utilization of, such knowledge and information. " (b) I t is therefore the policy of this part to— "(1) assist in the construction of new, and the renovation, expansion, or rehabilitation of existing medical library facilities; "(2) assist in the training of medical librarians and other information specialists in the health sciences; "(3) assist, through the awarding of special fellowships to physicians and other practitioners in the sciences related to health and scientists, in the compilation of existing, and the creation of additional, written matter which will facilitate the distribution and utilization of knowledge and information relating to scientific, social, and cultural advancements in sciences related to health; "(4) assist in the conduct of research and investigations in the field of medical library science and related activities, and in the development of new techniques, systems, and equipment for processing, storing, retrieving, and distributing information in the sciences related to health; "(5) assist in improving and expanding the basic resources of medical libraries and related facilities; "(6) assist in the development of a national system of regional medical libraries each of which would have facilities of sufficient depth and scope to supplement the services of other medical libraries within the region served by i t; and "(7) provide financial support to biomedical scientific publications. "DEFINITIONS

"SEC. 391. As used in this part— "(1) the term 'sciences related to health' includes medicine, osteopathy, dentistry, and public health, and fundamental and applied sciences when related thereto;

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 1060

70 Stat. 960. 42 USC 277.

PUBLIC LAW 89-291-OCT. 22, 1965

[79

STAT.

"(2) the terms 'National Medical Libraries Assistance Advisory Board' and 'Board' mean the Board of Regents of the National Library of Medicine established under section 373(a) of this Act; "(3) the terms 'construction' and 'cost of construction', when used with reference to any medical library facility, include (A) the construction of new buildings, and the expansion, remodeling, and alteration of existing buildings, including architects' fees, but not including the cost of acquisition of land or off-site improvements, and (B) equipping new buildings and existing buildings (whether or not expanded, remodeled, or altered) for use as a library (including provision of automatic data processing equipment), but not with books, pamphlets, or related material; " (4) the term 'medical library' means a library related to the sciences related to health. ' N A T I O N A L MEDICAL LIBRARIES ASSISTANCE BOARD

Functions.

Members, compensation.

Post, p. 1067. 42 USC 275280a.

"SEC. 392. (a) The Board of Regents of the National Library of Medicine established pursuant to section 373(a) shall, in addition to its functions prescribed under section 373, constitute and serve as the National Medical Libraries Assistance Advisory Board (hereinafter in this part referred to as the 'Board'). "(b) The Board shall— "(1) advise and assist the Surgeon General in the preparation of general regulations and with respect to policy matters arising in the administration of this part, and "(2) consider all applications for construction grants under this part and make to the Surgeon General such recommendations as it deems advisable with respect to (A) the approval of such applications, and (B) the amount which should be granted to each applicant whose application, in its opinion, should be approved. "(c) The Surgeon General is authorized to use the services of any member or members of the Board, in connection with matters related to the administration of this part, for such periods, in addition to conference periods, as he may determine. " (d) Appointed members of the Board who are not otherwise in the employ of the. United States, while attending conferences of the Board or otherwise serving at the request of the Surgeon General in connection with the administration of this part, shall be entitled to receive compensation, per diem in lieu of subsistence, and travel expenses in the same manner and under the same conditions as that prescribed under section 373(d), when attending conferences, traveling, or serving at the request of the Surgeon General in connection with the administration of part II which deals with the National Library of Medicine. a ASSISTANCE FOR CONSTRUCTION OF FACILITIES

construction grants.

eonditions for approval.

"SEC. 393. (a) In carrying out the purposes of section 390(b)(1), the Surgeon General may, upon application of any public or private nonprofit agency or institution, make grants to such agency or institution toward the cost of construction of any medical library facility to be constructed by such agency or institution. " (b) A grant under this section may be made only if the application therefor is recommended for approval by the Board and is approved by the Surgeon General upon his determination that— "(1) the application contains or is supported by reasonable assurances that (A) for not less than twenty years after completion of construction, the facility will be used as a medical library

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1061

facility, (B) subject to subsection (c), sufficient funds will be available to meet the non-Federal share of the cost of constructing the facility, and (C) sufficient funds will be available, when construction is completed, for effective use of the facility for the purpose for which it is being constructed; " (2) the proposed construction is necessary to meet the demonstrated needs for additional or improved medical library facilities in the community or area in which the proposed construction is to take place; "(3) the application contains or is supported by adequate assurance that any laborer or mechanic employed by any contractor or subcontractor in the performance of work on projects of the type covered by the Davis-Bacon Act, as amended, will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a5). The Secretary of Labor shall have, with respect 78^stS.^*238°"' to the labor standards specified in this paragraph, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267), and section 2 of the Act of f use i.isz-is June 13, 1934, as amended (40 U.S.C. 276c). "°63stat. los. "(c) Within such aggregate monetary limit as the Surgeon General may prescribe, after consultation with the Board, applications which (solely by reason of the inability of the applicants to give the assurance required by clause (B) of subsection (b)(1)) fail to meet the requirements for approval set forth in subsection (b) may be approved upon condition that the applicants give the assurance required by such clause (B) within a reasonable time and upon such other reasonable terms and conditions as he may determine after consultation with the Board. " (d) I n acting upon applications for grants under this section, the Board and the Surgeon General shall take into consideration the relative effectiveness of the proposed facilities in meeting demonstrated needs for additional or improved medical library services, and shall give priority to applications for construction of facilities for which the need is greatest. "(e) The amount of any grant made under this section shall be that recommended by the Board or such lesser amount as the Surgeon General determines to be appropriate; except that in no event may such amount exceed 75 per centum of the necessary cost of the construction of such facility as determined by him. " (f) Upon approval of any application for a grant under this section, the Surgeon General shall reserve, from any appropriation available therefor, the amount of such grant as detemiined under subsection (e), and shall pay such amount, in advance or by way of reimbursement, and in such installments consistent with construction progress, as he may determine. Such payments shall be made through the disbursement facilities of the Department of the Treasury. The Surgeon General's reservation of any amount under this subsection 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. " (g) In determining the amount of any grant under this section, 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 section, and (2) the amount of any non-Federal

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1062

Recovery of Federal funds.

Appropriation,

funds required to be expended as a condition of such other Federal grant. " (h) If, within twenty years after completion of any construction for which funds have been paid under this section— "(1) the applicant or other owner of the facility shall cease to be a public or nonprofit institution, or "(2) the facility shall cease to be used for medical library purposes, unless the Surgeon General determines, in accordance with regulations prescribed by him after consultation with the Board, that there is good cause for releasing the applicant or other owner from the obligation to do so, 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. " (i) For the purposes of carrying out the provisions of this section, there are hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1967, and ending with the fiscal year ending June 30, 1970, such sums, not to exceed $10,000,000 for any fiscal year, as may be necessary. GRANTS ((,

Appropriation.

FOR T R A I N I N G I N

MEDICAL LIBRARY

SCIENCES

"SEC. 394. (a) l u Order to enable the Surgeon General to carry out the purposes of section 390(b)(2), there are hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1966, and ending with the fiscal year ending June 30, 1970, such sums, not to exceed $1,000,000 for any fiscal year, as may be necessary. Sums made available under this section shall be utilized by the Surgeon General in making grants— "(1) to individuals to enable them to accept traineeships and fellowships leading to postbaccalaureate academic degrees in the field of medical library science, in related fields pertaining to sciences related to health, or in the field of the communication of information; " (2) to individuals who are librarians or specialists in information on sciences relating to health, to enable them to undergo intensive training or retraining so as to attain greater competence in their occupations (including competence in the fields of automatic data processing and retrieval); "(3) to assist appropriate public and private nonprofit institutions in developing, expanding, and improving, training programs in library science and the field of communications of information pertaining to sciences relating to health; and "(4) to assist in the establishment of internship programs in established medical libraries meeting standards which the Surgeon General shall prescribe. "(b) Payment pursuant to grants made under this section may be made in advance or by way of reimbursement and in such installments as the Surgeon General shall prescribe by regulations after consultation with the Board. "ASSISTANCE

Fellowships, establishment. Appropriation.

[79 STAT.

TO SPECIAL

SCIENTIFIC

PROJECTS

"SEC. 395. I n order to enable the Surgeon General to carry out the purposes of section 390(b)(3), there are hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June

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1063

30, 1966, and ending with the fiscal year ending June 30, 1970, such sums, not to exceed $500,000 for any fiscal year, as may be necessary. Sums made available under this section shall be utilized by the Surgeon General for the establishment of special fellowships to be awarded to physicians and other practitioners in the sciences related to health and scientists for the comf)ilation of existing, or writing of original, contributions relating to scientific, social, or cultural, advancements in sciences related to health. I n establishing such fellowships, the Surgeon General shall make appropriate arrangements whereby the facilities of the National Library of Medicine and the facilities of libraries of public and private nonprofit institutions of higher learning may be made available in connection with the projects for which such fellowships are established. "RESEARCH AND DEVELOPMENT IN MEDICAL LIBRARY SCIENCE AND RELATED FIELDS

"SEC. 396. (a) I n order to enable the Surgeon General to carry out the purposes of section 390(b)(4), there are hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1966, and ending with the fiscal year ending June 30, 1970, such sums, not to exceed $3,000,000 for any fiscal year, as may be necessary. Sums made available under this section shall be utilized by the Surgeon General in making grants to appropriate public or private nonprofit institutions and entering into contracts with appropriate persons, for purposes of carrying out projects of research and investigations in the field of medical library science and related activities and for the development of new techniques, systems and equipment, for processing, storing, retrieving, and distributing information pertaining to sciences related to health. " (b) Payment pursuant to grants made under this section may be in advance or by way of reimbursement and in such installments as the Surgeon General shall prescribe by regulations after consultation with the Board.

Appropriation.

" G R A N T S FOR IMPROVING AND EXPANDING THE BASIC RESOURCES OF MEDICAL LIBRARIES AND RELATED INSTRUMENTALITIES

"SEC. 397. (a) I n order to enable the Surgeon General to carry out the purposes of section 390(b)(5), there are hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1966, and ending with the fiscal year ending June 30, 1970, such sums, not to exceed $3,000,000 for any fiscal year, as may be necessary. " (b) Sums made available under this section shall be utilized by the Surgeon General for making grants of money, materials, or both, to public or private nonprofit medical libraries and related scientific communication instrumentalities for the purpose of expanding and improving their basic medical library or related resources. The uses for which grants so made may be employed include, but are not limited to, the following: (A) acquisition of books, journals, photographs, motion picture and other films, and other similar materials, (B) cataloging, binding, and other services and procedures for processing library resource materials for use by those who are served by the library or related instrumentality, and (C) acquisition of duplication devices, facsimile equipment, film projectors, recording equipment, and other equipment to facilitate the use of the resources of the library or related instrumentality by those who are served by it, and (D) introduction of new technologies in medical librarianship.

Appropriation.

^^^^

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Page:United States Statutes at Large Volume 79.djvu/1104

 1064 Determination of amount.

Factors.

•Annual operating "'"""""^ " "" expense.'

PUBLIC LAW 89-291-OCT. 22, 1965

[79 STAT.

"(c)(1) The amount of any ^rant under this section to any medical library or related instrumentality shall be determined by the Surgeon General on the basis of the scope of library or related services provided by such library or instrumentality in relation to the population and purposes served by it. I n making a determination of the scope of services served by any medical library or related instrumentality, the Surgeon General shall take into account the following factors— " (A) the number of graduate and undergraduate students making use of the resources of such library or instrumentality; " (B) the number of physicians and other practitioners in the sciences related to health utilizing the resources of such library or instrumentality; " (C) the type of supportive staffs, if any, available to such library or instrumentality; " (D) the type, size, and qualifications of the faculty of any school with which such library or instrumentality is affiliated; " (E) the staff of any hospital or hospitals or of any clinic or clinics with which such library or instrumentality is affiliated; and " (F) the geographic area served by such library or instrumentality and the availability, within such area, of medical library or related services provided by other libraries or related instrumentalities. " (2) I n no case shall any grant under this section to a medical library or related instrmnentality during any fiscal year exceed $200,000, or, if lesser, an amount equal to— " (A) 60 per centum of the annual operating expenses of such library or related instrumentality, if such fiscal year is the first fiscal year with respect to which a grant under this section is made to it; " (B)(i) 50 per centum of the annual operating expenses of such library or related instrumentality, (ii) or, if lesser, five-sixths of the amount of its first year grant under this section, if such year is the second fiscal year with respect to which a grant under this section has been made to it; " (C)(i) 40 per centum of the annual operating expenses of such library or related instrumentality, (ii) or, if lesser, four-fifths of the amount of the second year grant under this section, if such year is the third fiscal year with respect to which a grant under this section has been made to it; " (D)(i) 30 per centum of the annual operating expenses of such library or related instrumentality, (ii) or, if lesser, three-fourths of the amount of the third year grant under this section, if such year is the fourth fiscal year with respect to which a grant under this section has been made to it; and " (E)(i) 20 per centum of the annual operating expenses of such library or related instrumentality, (ii) or, if lesser, two-thirds of the amount of the fourth year grant under this section, if such year is the fifth fiscal year with respect to which a grant under this section has been made to it. "phc 'annual operating expense' of a library or related instrumentality shall, for purposes of the preceding sentence, be an amount equal (if such annual operating expense is to be determined with respect to the first grant to be made to such library or instrumentality under this section) to the amount of the average of the annual operating expenses of such library or instrumentality over the three fiscal years preceding the year in which such grant is applied for; and if such library or related instrumentality has been operating for less than three yea,rs prior to applying for such grant, its 'annual operating expense' shall be an amount determined by the Surgeon General pur-

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 79 STAT. ]

PUBLIC LAW 89-291-OCT. 22, 1965

1065

suant to regulations prescribed by him. For the second or succeeding fiscal year m which a grant is made to a library or related instrumentality, the 'annual operating expense' of such library or related instrumentality shall, for purposes of such sentence, be equal to its operating expense (exclusive of Federal financial assistance under this part) for the preceding fiscal year. GRANTS FOR E S T A B L I S H II E N T OF REGIONAL MEDICAL LIBRARIES

"SEC. 398. (a) I n order to enable the Surgeon General to carry Appropriation. out the purposes of section 390(b)(6), there are hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1966, and ending with the fiscal year ending June 30, 1970, such sums, not to exceed $2,500,000 for any fiscal year, as may be necessary. Sums made available under this section shall be utilized by the Surgeon General, with the advice of the Board, to make grants to existing public or private nonprofit medical libraries so as to enable each of them to serve as the regional medical library for the geographical area in which it is located. "(b) The uses for which grants made under this section may be U s e s. employed include, but are not limited to, the following— "(1) acquisition of books, journals, and other similar materials; "(2) cataloging, binding, and other procedures for processing library resource materials for use by those who are served by the library; "(3) acquisition of duplicating devices and other equipment to facilitate the use of the resources of the library by those who are served by it; "(4) acquisition of mechanisms and employment of personnel for the speedy transmission of materials from the regional library to local libraries in the geographic area served by the regional library; and "(5) construction, renovation, rehabilitation, or expansion of physical plant considered necessary by such library to carry out its proper functions as a regional library. " (c)(1) Grants under this section shall be made only to medical rant'f'"°"^ ^°' libraries which agree (A) to modify and increase their library ^"^^^ " ^ resources so as to be able to provide supportive services to other libraries in the region as well as individual users of library services, (B) to provide free loan services to qualified users, and make available photoduplicated or facsimile copies of biomedical materials which qualified requesters may retain. "(2) The Surgeon General, in awarding grants under this section, ^^^^1°^^^^ shall give priority to medical libraries having the greatest potential factors. of fulfilling the needs for regional medical libraries. In determining the priority to be assigned to any medical library, he shall consider— " (A) the need of such library, as determined by the levels of research, teaching, and medical activities of the library in relation to other existing library and medical communication services in the region; " (B) the adequacy of the library (in terms of collections, personnel, equipment, and other facilities) as a basis for a regional medical library; and " (C) the size and nature of the population to be served in the region in which the library is located. " (d) Grants under this section for construction, renovation, rehabilitation, or expansion of physical plant shall be made in the same manner and subject to the same conditions as are provided for 49-850 0-66—70

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 PUBLIC LAW 89-291-OCT. 22, 1965

1066

Limitation.

grants made under section 393, except that the eligibility for any such grant would be determined on the basis of the construction requirements of the library so as to be able to serve as a regional medical library. Grants under this section for basic resource materials to a library may not exceed 50 per centum of the library's annual operating expense (exclusive of Federal financial assistance under this part) for the preceding year; or in case of the first year in which the library receives a grant under this section for basic resource materials, 50 per centum of its average annual operating expenses over the past three years (or if it had been in operation for less than three years, its annual operating expenses determined by the Surgeon General in accordance with regulations prescribed by h i m). "(e) Payment pursuant to grants made under this section may be made in advance or by way of reimbursement and in such installments as the Surgeon General shall prescribe by regulations after consultation with the Board. "FINANCIAL

Appropriation. Ante, p. 1059.

[79 STAT.

SUPPORT

or

BIOMEDICIAL

SCIENTino

PUBLICATIONS

"SEC. 399. (a) I n order to enable the Surgeon General to carry out the purposes of section 390(b)(7), there are hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1966, and ending with the fiscal year ending June 30, 1970, such sums, not to exceed $1,000,000 for any fiscal year, as may be necessary. Sums made available under this section Shall be utilized by the Surgeon General, with the advice of the Board, in making grants to, and entering into appropriate contracts with, public or private nonprofit institutions of higher education and individual scientists for the purpose of supporting biomedical scientific publications of a nonprofit nature and to procure the compilation, writing, editing, and publication of reviews, abstracts, indices, handbooks, bibliographies, and related matter pertaining to scientific works and scientific developments. "(b) Grants under this section in support of any single periodical publication may not be made for more than three years. "(c) Payment pursuant to grants made under this section may be made in advance or by way of reimbursement and in such installments as the Surgeon General shall prescribe by regulations after consultation with the Board. u,CONTINUING AVAILABILITY OF APPROPRIATED FUNDS

"SEC. 399a. Funds appropriated to carry out any of the purposes of this part for any fiscal year shall remain available for such purposes for the fiscal year immediately following the fiscal year for which they were appropriated. " R E C O R D S AND AUDIT

"SEC. 399b. (a) Each recipient of a grant under this part shall keep such records as the Surgeon General shall prescribe, including records which fully disclose the amount and disposition by such recipient of the proceeds of such grant, the total cost of the project or undertaking in connection with which such grant is given or used, and the amount of that portion of the cost of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit. " (b) The Secretary of Health, Education, and Welfare and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and

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