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" (12) describe the methods to be used to assess the effectiveness and accomplishments of the State in meeting the needs of persons with developmental disabilities in the State; "(13) provide for the development of a program of construction of facilities for the provision of services for persons with developmental disabilities which (A) is based on a statewide inventory of existing facilities and survey of need; and (B) meets the requirements prescribed by the Secretary for furnishing needed services to persons unable to pay therefor; " (14) set forth the relative need, determined in accordance with regulations prescribed by the Secretary, for the several projects included in the construction program referred to in paragraph (13), and assign priority to the construction of projects, insofar as financial resources available therefor and for maintenance and operation make possible, in the order of such relative need; "(15) specify the per centum of the States allotment (under section 132) for any year which is to be devoted to construction of facilities, which per centum shall be not more than 50 per centum of the State's allotment or such lesser per centum as the Secretary may from time to time prascribe; "(16) provide for affording to every applicant for a construction project an opportunity for hearing before the State agency; "(17) provide for such fiscal control and fund accounting procedures as may be necessary to assure the proper disbursement of and accounting for funds paid to the State under this part; and "(18) contain such additional information and assurances as the Secretary may find necessary to carry out the provisions and purposes of this part. "(c) The Secretary shall approve any State plan and any modification thereof which complies with the provisions of subsection (b). The Secretary shall not finally disapprove a State plan except after reasonable notice and opportunity for a hearing to the State. uAPPROVAL OF PROJECTS FOR CONSTRUCTION

"SEC. 135. (a) For each project for construction pursuant to a Application. State plan approved under this part, there shall be submitted to the Secretary, through the State agency designated pursuant to section 134(b)(1)(C), an application by the State or a political subdivision thereof or by a public or nonprofit private agency. If two or more agencies join in the construction of the project, the application may be filed by one or more of such agencies. Such application shall set forth— " (1) a description of the site for such project; "(2) plans and specifications thereof, in accordance with regulations prescribed by the Secretary; "(3) reasonable assurance that title to such site is or will be vested in one or more of the agencies filing the application or in a public or nonprofit private agency which is to operate the facility; "(4) reasonable assurance that adequate financial support will be available for the construction of the project and for its maintenance and operation when completed; "(5) reasonable assurance that all laborers and mechanics employed by contractors or subcontractors in the performance of work on construction of the project 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

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 1322 49 Stat. 1011;

64 Stat. 1267. 63 Stat. 108.

PUBLIC LAW 91-517-OCT. 30, 1970

[84 STAT.

Davis-Bacon Act, as amended (40 U.S.C. 276a—2T6a-5); and the Secretary of Labor shall have with respect to the labor standards specified in this paragraph the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 8176; 5 U.S.C. 183z-15) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c); and "(6) a certification by the State agency of the Federal share for the project. " (b) The Secretary shall approve such application if sufficient funds to pay the Federal share of the cost of construction of such project are available from the allotment to the State, and if the Secretary finds (1) that the application contains such reasonable assurances as to title, financial support, and payment of prevailing rates of wages and overtime pay, (2) that the plans and specifications are in accord with regulations prescribed by the Secretary, (3) that the application is in conformity with the State plan approved under this part, and (4) that the application has been approved and recommended by the State agency and is entitled to priority over other projects within the State in accordance with the State's plan for persons with developmental disabilities and in accordance with regulations prescribed by the Secretary. "(c) No application shall be disapproved until the Secretary has afforded the State agency an opportunity for a hearing. " (d) Amendment of any approved application shall be subject to approval in the same manner as the original application. "WITHHOLDING OF PAYMENTS FOR CONSTRUCTION

"SEC. 136. Whenever the Secretary, after reasonable notice and opportunity for hearing to the State planning and advisory council designated pursuant to section 134(b)(1)(A) and the State agency designated pursuant to section 134(b)(1)(C) finds— " (a) that the State agency is not complying substantially with the provisions required by section 134(b) to be included in the State plan, or with regulations of the Secretary; "(b) that any assurance required to be given in an application filed under section 135 is not being or cannot be carried out; "(c) that there is a substantial failure to carry out plans and specifications related to construction approved by the Secretary under section 134; or " (d) that adequate funds are not being provided annually for the direct administration of the State plan, the Secretary may forthwith notify such State council and agency the<>"(e) no further payments will be made to the State for construction from allotments under this part; or "(f) no further payments will be made from allotments under this part for any project or projects designated by the Secretary as being affected by the action or inaction referred to in paragraph (a), (b), (c),or (d) of this section; as the Secretary may determine to be appropriate under the circumstances; and, except with regard to any project for which the application has already been approved and which is not directly affected, further payments for construction projects may be withheld, in whole or in part, until there is no longer any failure to comply (or to carry out the assurance or plans and specifications or to provide adequate funds, as the case may be) or, if such compliance (or other action) is impossible, until the State repays or arranges for the repayment of Federal moneys to which the recipient was not entitled.

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"PAYMENTS TO THE STATES FOR PLANNING, ADMINISTRATION, AND SERVICES

"SEC. 137. (a)(1) From each State's allotments for a fiscal year under section 132, the State shall be paid the Federal share of the expenditures, other than expenditures for construction, incurred during such year under its State plan approved under this part. Such payments shall be made from time to time in advance on the basis of estimates by the Secretary of the sums the State will expend under the State plan, except that such adjustments as may be necessary shall be made on account of previously made underpayments or overpayments under this section. " (2) For the purpose of determining the Federal share with respect to any State, expenditures by a political subdivision thereof or by nonprofit private agencies, organizations, and groups shall, subject to such limitations and conditions as may be prescribed by regulations, be regarded as expenditures by such State. "(b)(1) Except as provided in paragraph (2), the 'Federal share' ^"Fe^derai with respect to any State for purposes of this section for any fiscal share." year shall be 75 per centum of the expenditures, other than expenditures for construction, incurred by the State during such year under its State plan approved under this part during each of the fiscal years ending June 30, 1971, and June 30, 1972, and 70 per centum of such nonconstruction expenditures during the fiscal year ending June 30, 1973. "(2) In the case of any project located in an area within a State „„)/'^(.^"^°'J"'"^' determined by the Secretary to be an urban or rural poverty area, poverty area. the 'Federal share' with respect to such project for purposes of this section for any fiscal year may be up to 90 per centum of the expenditures, other than expenditures for construction, incurred by the Sta^^e during such year under its State plan approved under this part wth respect to such project for the first twenty-four months of such project, and 80 per centum of such nonconstruction expenditures for the next tAvelve months. "WITHHOLDING OF PAYMENTS FOR PLANNING, ADMINISTRATION, AND SERVICES

"SEC. 138. Whenever the Secretary, after reasonable notice and opportunity for hearing to the State planning and advisory council and the appropriate State agencies or agency, designated pursuant to section 134(b)(1) finds that— " (a) there is a failure to comply substantially with any of the provisions required by section 134 to be included in the State plan; or "(b) there is a failure to comply substantially with any regulations of the Secretary which are applicable to this part, the Secretary shall notify such State council and agency or agencies that further payments will not be made to the State under this part (or, in his discretion, that further payments will not be made to the State under this part for activities in which there is such failure), until he is satisfied that there will no longer be such failure. Until he is so satisfied, the Secretary shall make no further payment to the State under this part, or shall limit further payment under this part to such State to activities in which there is no such failure. "REGULATIONS

"SEC. 139. The Secretary, as soon as practicable, by general regulations applicable uniformly to all the States, shall prescribe— " (a) the kinds of services which are needed to provide adequate programs for persons with developmental disabilities, the kinds of

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[84 STAT.

services which may be provided under a State plan approved under this part, and the categories of persons for whom such services may be provided; "(b) sta,ndards as to the scope and quality of services provided for persons with developmental disabilities under a State plan approved under this part; "(c) the general manner in which a State, in carrying out its State plan approved under this part, shall determine priorities for services ajid facilities based on type of service, categories of persons to be served, and type of disability, with special consideration being given to the needs for such services and facilities in areas of urban and rural poverty; and "(d) general standards of construction and equipment for facilities of different classes and in different types of location. After appointment of the Council, regulations and revisions therein shall be promulgated by the Secretary only after consultation with Council. "NONDUPLICATION

Ante, p. 54>

77 Stat, 296. " F a c i l i t y for persons with developmental d i s abilities."

Ante,

p. 5 5.

"SEC. 140. (a) In determining the amount of any payment for the construction of any facility under a State plaoi approved under this part, there shall be disregarded (1) any portion of the costs of such construction which are financed by Federal funds provided under any provision of law other than this part, and (2) the amount of a,ny nonFederal funds required to be expended as a condition of receipt of such Federal funds. "(b) In determining the amount of any State's Federal share of expenditures for planning, administration, ajid services incurred by it under a State plan approved under this part, there shall be disregarded (1) any portion of such expenditures which are financed by Federal funds provided under any provision of law other than this paa:i:, and (2) the amount of any non-Federal funds required to be expended as a condition of receipt of such Federal funds." SEC. 102. (a) Section 401 of the Mental Eetardation Facilities and Community Mental Health Centers Construction Act of 1963, as amended (42 U.S.C. 2691), is amended by— (1) striking out "; for purposes of this title and title II only, includes the Trust Territory of the Pacific Islands" in subsection (a,) and inserting "the Trust Territory of the Pacific Islands," after "Virgin Islands,"; (2) striking out subsection (b) and inserting in lieu thereof the following: " (b) The term 'facility for persons with developmental disabilities' means a facility, or a specified portion of a facility, designed primarily for the delivery of one or more services to persons wim one or more developmental disabilities."; (3) striking out the words "the mentally retarded" wherever they occur in subsection (d) and inserting the words "persons with developmental disabilities" in lieu thereof; (4) amending the first sentence of subsection (h)(2) to read as follows: "The Federal share with respect to any project in the State shall be the amount determined by the appropriate State agency designated in the State plan, but, except as provided in paragraph (3), the Federal share (A) for any project under part C of title I may not exceed 66% per centum of the costs of construction of such project; and (B) for any project under part A of title II may not exceed 66% per centum of the costs of construction of such project or the State's Federal percentage, whichever is the lower."; and

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(5) adding at the end of the section the following subsections: "(1) The term 'developmental disability' means a disability attributable to mental retardation, cerebral palsy, epilepsy, or another neurological condition of an individual found by the Secretary to be closely related to mental retardation or to require treatment similar to that required for mentally retarded individuals, which disability originates before such individual attains a^e eighteen, which has continued or can be expected to continue indefinitely, and which constitutes a substantial handicap to such individual. " (m) The term 'services for persons with developmental disabilities' means specialized services or special adaptations of generic services directed toward the alleviation of a developmental disability or toward the social, personal, physical, or economic habilitation or rehabilitation of an individual with such a disability, and such term includes diagnosis, evaluation, treatment, personal care, daycare, domiciliary care, special living arrangements, training, education, sheltered employment, recreation, counseling of the individual with such disability and of his family, protective and other social and socio-legal services, information and referral services, follow-along services, and transportation services necessary to assure delivery of services to persons with developmental disabilities. " (n) The term 'regulations' means (unless the text otherwise indicates) regulations promulgated by the Secretary." (b) Sections 403, 405, and 406 of such Act are amended by inserting the words "or persons with other developmental disabilities" after the words "mentally retarded" wherever they occur. (c) Section 404 of such Act is amended by deleting "134(b)" and inserting "134(c)" in lieu thereof.

"Developmental disability."

"services for veiopmentafdisabilities."

"Regulations." 77 Stat. 297., 26^5,^2696. * 42 USC 2694.

EFFECTIVE DATE

SEC. 103. The amendments made by sections 101 and 102 of this title shall apply with respect to fiscal years beginning after June 30, 1970. Funds appropriated before June 30, 1970, under part C of the Mental Retardation Facilities Construction Act shall remain available for obligation during the fiscal year ending June 30, 1971.

Ante,

p. 1316.

TITLE II — AMENDMENTS TO P A R T B O F THE M E N T A L R E T A R D A T I O N F A C I L I T I E S CONSTRUCTION ACT CONSTRUCTION

GRANTS

SEC. 201. (a) The first sentence of section 121(a) of the Mental Retardation Facilities Construction Act is amended— (1) by striking out "clinical facilities providing, as nearly as practicable, a full range of inpatient and outpatient services for the mentally retarded (which, for purposes of this part, includes other neurological handicapping conditions found by the Secretary to be sufficiently related to mental retardation to warrant inclusion in this part) and"; (2) by striking out "clinical training" and inserting in lieu thereof: "interdisciplinary training"; and (3) by striking out "each for the fiscal year ending June 30, 1969, and the fiscal year ending June 30, 1970" and inserting in lieu thereof: "for each of the next five fiscal years through the fiscal year ending June 30, 1973". (b) Such section 121(a) is amended by striking out "the mentally

77 Stat. 284; 81 Stat. 5 2 7. 42 USC 2 6 6 1.

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77 Stat. 285; 2665. '
 * ^4rusc 26*64

PUBLIC LAW 91-517-OCT. 30, 1970

[84 STAT.

retarded" in the second sentence and the second time and third time it appears in the first sentence and inserting in lieu thereof "persons with developmental disabilities". (c) Sections 124 and 125 of the Mental Retardation Facilities Construction Act are each amended by striking out "the mentally retarded" each place it appears in those sections and inserting in lieu thereof "persons with developmental disabilities". DEMONSTRATION A N D T R A I N I N G GRANTS

42_ use 2662-

2665.

SEC. 202. Part B of the Mental Retardation Facilities Construction ^ c t is amended by redesignating sections 122, 123, 124, and 125 as sections 123, 124, 125, and 126, respectively, and by adding the following new section after section 121: DEMONSTRATION A N D T R A I N I N G GRANTS

"SEC. 122. (a) For the purposes of assisting institutions of higher education to contribute more effectively to the solution of complex health, education, and social problems of children and adults suffering from developmental disabilities, the Secretary may, in accordance with the provisions of this part, make grants to cover costs of administering and operating demonstration facilities and interdisciplinary training programs for personnel needed to render specialized services to persons with developmental disa,bilities, including established disciplines as well as new kinds of training to meet critical shortages in the care of persons with developmental disabilities. Appropriations. "(b) For the purposc of making grants under this section, there are authorized to be appropriated $15,000,000 for the fiscal year ending June 30, 1971; $17,000,000 for the fiscal year ending June 30, 1972; and $20,000,000 for the fiscal year ending June 3, 1973." SEC. 203. Section 123 of such Act, as so redesignated by section 202 of this Act, is amended by inserting " (a) " after "SEC. 123.", by inserting "the construction of" before "any facility", by striking out "section Ante, p. 1323. 133(3)" aud inserting in lieu thereof "section 139(d)", and by adding the following new subsection at the end thereof: "(b) Applications for demonstration and training grants under this part may be approved by the Secretary only if the applicant is a college or university operating a facility of the type described in section 121, or is a public or nonprofit private agency or organization operating such a facility. I n considering applications for such grants, the Secretary shall give priority to any application which shows that the applicant has made arrangements, in accordance with regulations of the Secretary, for a junior college to participate in the programs for which the application is made." SEC. 204. Section 124 of such Act, as so redesignated by section 202 of this Act, is amended by striking out "for the construction of a facility" and "of construction" in subsection (a) thereof, and by striking out "in such installments consistent with construction progress," in subsection (b). SEC. 205. Section 125 of such Act, as so redesignated by section 202 of this Act, is amended by inserting "construction" before "funds". M A I N T E N A N ( ' E OF EP^FORT

^g'^^g use 2661-

gji;c. 206. Part B of such Act is amended by adding at the end thereof the following new section:

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a MAINTENANCE OF EFFORT

"SEC. 127. Applications for grants under this part may be approved by the Secretary only if the application contains or is supported by reasonable assurances that the grants will not result in any decrease in the level of State, local, and other non-Federal funds for services for persons with developmental disabilities and training of persons to provide such services which would (except for such grant) be available to the applicant, but that such grants will be used to supplement, and, to the extent practicable, to increase the level of such funds." CONFORMING AMENDMENTS

SEC. 207. (a) Section 100 of such title is amended to read as follows: ^ ^ li

SHORT TITLE

^^ ^*°*' 282. 42 USC 2661 note.

"SEC. 100. This title may be cited as the 'Developmental Disabilities Services and Facilities Construction Act'." (b) The heading for part B of such title is amended to read as follows: " P A R T B—CONSTRUCTION, DEMONSTRATION, AND TRAINING GRANTS FOR UNIVERSITY-AFFILIATED FACILITIES FOR PERSONS WITH DEVELOPMENTAL DISABILITIES".

Approved October 30, 1970.

Public Law 91-518 AN ACT October 30, 1970 To provide financial assistance for and establisliment of a national rail passen[H. R. 17849] ger system, to provide for the modernization of railroad passenger eiiuipment, to authorize the prescribing of minimum standard s for railroad passenger service, to amend section 13a of the I n t e r s t a t e Commerce Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the Rail United States of America in Congress assembled, That this Act may ServicePasseng;er Act of be cited as the "Kail Passenger Service Act of 1970". . T9V0.

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[84 STAT.

TITLE I—FINDINGS, PURPOSES, AND DEFINITIONS SEC. 101. CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSE.

41 Stat. 474; 54 Stat. 899. Post,

p, 1330,

The Congress finds that modern, efficient, intercity railroad passenger service is a necessary part of a balanced transportation system; that the public convenience and necessity require the continuance and improvement of such service to provide fast and comfortable transportation between crowded urban areas and in other areas of the country; that rail passenger service can help to end the congestion on our highways and the overcrowding of airways and airports; that the traveler in America should to the maximum extent feasible have freedom to choose the mode of travel most convenient to his needs; that to achievethese goals requires the designation of a basic national rail passenger system and the establishment of a rail passenger corporation for the purpose of providing modern, efficient, intercity rail passenger service; that Federal financial assistance as well as investment capital from the private sector of the economy is needed for this purpose; and that interim emergency Federal financial assistance to certain railroads may be necessary to permit the orderly transfer of railroad passenger service to a railroad passenger corporation. SEC. 102. DEFINITIONS. For the purposes of this Act— (1) "Railroad" means a common carrier by railroad, as defined in section 1(3) of part I of the Interstate Commerce Act, as amended (49 U.S.C. 1(3)) other than the corporation created by title III of fhisAot llllb-tl.01.

1.

1

(2) "Secretary" means the Secretary of Transportation or his delegate unless the context indicates otherwise. (3) "Commission" means the Interstate Commerce Commission. (4) "Basic system" means the system of intercity rail passenger service designated by the Secretary under title II and section 403(a) Post, pp. 1329, of this Act. ^^^* (5) "Intercity rail passenger service" means all rail passenger service other than (A) commuter and other short-haul service in metropolitan and suburban areas, usually characterized by reduced fare, multiple-ride and commutation tickets, and by morning and evening peak period operations, and (B) auto-ferry service characterized by transportation of automobiles and their occupants where contracts for such service have been consummated prior to enactment of this Act. (6) "Avoidable loss" means the avoidable costs of providing passenger service, less revenues attributable thereto, as determined by the Interstate Commerce Commission pursuant to the provisions of 80 Stat. 383. gection 553 of title 5, United States Code. (7) "Corporation" means the National Railroad Passenger Corporation created under title III of this Act.

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(8) "Regional transportation agency" means an authority, corporation, or other entity established for the purpose of providing passenger service within a region. TITLE II—BASIC NATIONAL RAIL PASSENGER SYSTEM SEC. 201. DESIGNATION OF SYSTEM.

In carrying out the congressional findings and declaration of pur- o^t'^^^'J'c'^'Jnij*' pose set forth in title I of this Act, the Secretary, acting in cooperation congress, with other interested Federal agencies and departments, is authorized and directed to submit to the Commission and to the Congress within thirty days after the date of enactment of this Act his preliminary report and recommendations for the basic system. Such recommendations shall specify those points between which intercity passenger trains shall be operated, identify all routes over which service may be provided, and the trains presently operated over such routes, together with basic service characteristics of operations to be provided within the basic system, taking into account schedules, number of trains, connections, through car service, and sleeping, parlor, dining, and lounge facilities. I n recommending the basic system the Secretary shall take into account the need for expeditious intercity rail passenger service within and between all regions of the continental United States, and the Secretary shall consider the need for such service within the States of Alaska and Hawaii and the Commonwealth of Puerto Rico. I n formulating such recommendations the Secretary shall consider opportunities for provision of faster service, more convenient service, service to more centers of population, and service at lower cost, by the joint operation, for passenger service, of facilities of two or more railroad companies; the importance of a given service to overall viability of the basic system; adequacy of other transportation facilities serving the same points; unique characteristics and advantages of rail service as compared to other modes of transportation; the relationship of public benefits of given services to the costs of providing such services; and potential profitability of the service. The exclusion of a particular route, train, or service from the basic system shall not be deemed to create a presumption that the route, train, or service is not required by public convenience and necessity in any proceeding under section 13a of the Interstate Commerce Act (49 U.S.C. 13a). 72 Stat. 571. SEC. 202. REVIEW OF THE BASIC SYSTEM.

The Commission, the State Commissions, the representatives of the railroads, and labor organizations duly authorized under the Railway Labor Act to represent railroad employees shall, within thirty days 4g^ltllTiigJ' after receipt of the preliminary report of the Secretary designating 45 USC 151*. the basic system, review such report consistent with the purposes of this Act and provide the Secretary with their comments and recommendations in writing. The Secretary shall give due consideration to such comments and recommendations. The Secretary shall, within con^reir^"'* *° ninety days after the date of enactment of this Act, submit his final °"^''^^^* report designating the basic system to the Congress. Such final report shall include a summary of their recommendations together with his reasons for failing to adopt any such recommendation. The basic sys- Effective date. tem as d e s i ^ a t e d by the Secretary shall become effective for the purposes of this Act upon the date that the final report of the Secretary IS submitted to Congress and shall not be reviewable in any court.

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[84 STAT.

TITLE III—CREATION OF A RAIL PASSENGER CORPORATION SEC. 301. CREATION OF THE CORPORATION.

68 Stat. 177; 77 Stat. 140. D.C. Code 29901. Incorporators, Presidential appointments.

Board of directors.

Conflict of interest, prohibition. Compensation, travel expenses.

There is authorized to be created a National Railroad Passenger Corporation. The Corporation shall be a for profit corporation, the purpose of which shall be to provide intercity rail passenger service, employing innovative operating and marketing concepts so as to fully develop the potential of modern rail service in meeting the Nation's intercity passenger transportation requirements. The Corporation will not be an agency or establishment of the United States Government. I t shall be subject to the provisions of this Act and, to the extent consistent with this Act, to the District of Columbia Business Corporation Act. The right to repeal, alter, or amend this Act at any time is expressly reserved. SEC. 302. PROCESS OF ORGANIZATION.

The President of the United States shall appoint not fewer than three incorporators, by and with the advice and consent of the Senate, who shall also serve as the board of directors for one hundred and eighty days following the date of enactment of this Act. The incorporators shall take whatever actions are necessary to establish the Corporation, including the filing of articles of incorporation, as approved by the President. SEC. 303. DIRECTORS AND OFFICERS.

(a) The Corporation shall have a board of fifteen directors consisting of individuals who are citizens of the United States, of whom one shall be elected annually by the board to serve as chairman. Eight members of the board shall be appointed by the President of the Ignited States, by and with the advice and consent of the Senate, for terms of four years or until their successors have been appointed and qualified, except that the first three members of the board so appointed shall continue in office for terms of two years, and the next three members for terms of three years. Any member appointed to fill a vacancy may be appointed only for the unexpired term of the director whom he succeeds. At all times the Secretary shall be one of the members of the board of directors appointed by the President and at all times at least one such member shall be a consumer representative. Three members of the board shall be elected annually by common stockholders, and four shall be elected annually by preferred stockholders of the Corporation. The members of the board appointed by the President and those elected by common stockholders shall take office on the one hundred and eighty-first day after the date of enactment of this Act. Election of the remaining four members of the board shall take place as soon as practicable after the first issuance of preferred stock by the Corporation. Pending election of the remaining four members, seven members shall constitute a quorum for the purpose of conducting the business of the board. No director appointed by the President may have any direct or indirect financial or employment relationship with any railroad during the time that he serves on the board. Each of the directors not employed by the Federal Government shall receive compensation at the rate of $800 for each meeting of the board he attends. In addition, each director shall be reimburs-ed for necessary travel and subsistence expenses incurred in attending the meetings of the board. No director elected by railroads shall vote on any action of the board of directors relating to any contract or operating relationship between the Corporation and a railroad, but he may be present at meetings of the board at which such matters are voted upon, and he may be included for purposes of

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determining a quorum and may participate in discussions at any such meeting. (b) The board of directors is empowered to adopt and amend bylaws governing the operation of the Corporation. Such bylaws shall not be inconsistent with the provisions of this Act or of the articles of incorporation. (c) The articles of incorporation of the Corporation shall provide for cumulative voting for all stockholders and shall provide that, upon conversion of one-fourth of the outstanding shares of preferred stock, the common stockholders shall be entitled to elect four directors and the preferred stockholders shall be entitled to elect three directors: upon the conversion of one-half of the outstanding shares of preferred stock, the common stockholders shall be entitled to elect five directors and the preferred stockholders shall be entitled to elect two directors; upon the conversion of three-fourths of the outstanding shares of preferred stock, the common stockholders shall be entitled to elect six directors and the preferred stockholders shall be entitled to elect one director; and upon conversion of all outstanding shares of preferred stock, the common stockholders shall be entitled to elect seven directors. Any change of directors resulting from such stock conversion shall take effect at the next annual meeting of the Corporation following such stock conversion. (d) The Corporation shall have a president and such other officers as may be named and appointed by the board. The rates of compensation of all officers shall be fixed by the board. Officers shall serve at the pleasure of the board. No individual other than a citizen of the Ignited States may be an officer of the Corporation. No officer of the Corporation may have any direct or indirect employment or financial relationship with any railroad during the time of his employment by the Corporation.

Bylaws,

Corporation, P r e s i d e n t and officers.

SEC. 304. FINANCING OF THE CORPORATION.

(a) The Corporation is authorized to issue and have outstanding, in such amounts as it shall determine, two issues of capital stock, a common and a preferred, each of which shall carry voting rights and be eligible for dividends. Common stock may be initially issued only to a railroad. Preferred stock may be issued to and held only by any person other than (1) a railroad or (2) any person controlling one or more railroads, as defined in section 1(3)(b) of the Interstate Commerce Act. The articles of incorporation of the Corporation shall provide for the following respective rights of each issue of stock: (A) COMMON STOCK.—Common stock shall have a par value of $10 per share and shall be designated fully paid and nonassessable. No dividends shall be paid on the common stock whenever dividends on the preferred stock are in arrears. (B)(i) PREFERRED STOCK.—Preferred stock shall have a par value of $100 per share and shall be designated fully paid and nonassessable. Dividends shall be fixed at a rate not less than 6 per centum per annum, and shall be cumulative so that, if for any dividend period dividends at the rate fixed in the articles of incorporation shall not have been declared and paid or set aside for payment on the preferred shares, the deficiency shall be declared and paid or set apart for payment prior to the making of any dividend or other distribution on the common shares. (ii) Preferred stock shall be entitled to a liquidation preference over common stock, which shall entitle preferred stockholders to a liquidating payment not less than par value plus all accrued unpaid dividends prior to any payment on liquidation to common stockholders.

Stock i s s u e s, restriction.

54 Stat. 899.

49 USC 1.

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Stock ownei" ship, limitation. 54 Stat, 899. 49 USC 1.

Bonds, securi* t i e s, e t c., author> ization.

Inspection rights requirements, exception* 68 Stat* 197*

PUBLIC LAW 91-518--OCT. 30, 1970

[84 STAT.

(iii) Preferred stock shall be convertible into shares of common stock at such time and upon such terms as the articles of incorporation shall provide. (b) At no time after the initial issue is completed shall the aggregate of the shares of common stock of the Corporation owned by a single railroad or by any person controlling one or more railroads, as defined in section 1(3)(b) of the Interstate Commerce Act, directly or indirectly through subsidiaries or affiliated companies, nominees, or any person subject to its direction or control, exceed 331/^ per centum of such shares issued and outstanding. (c) At no time may any stockholder, or any syndicate or affiliated group of such stockholders, own more than 10 per centum of the shares of preferred stock of the Corporation issued and outstanding. (d) The articles of incorporation shall provide that no shares of any issue of stock may be redeemed or repurchased for five years, following the date of enactment of this Act. (e) The Corporation is authorized to issue, in addition to the stock authorized by subsection (a) of this section, nonvoting securities, bonds, debentures, and other certificates of indebtedness as it may determine. (f) The requirement of section 45(b) of the District of Columbia Business Corporation Act (D.C. Code, sec. 29-920(b)) as to the percentage of stock which a stockholder must hold in order to have the rights of inspection and copying set forth in that subsection shall not be applicable in the case of holders of the stock of the Corporation, and they may exercise such rights without regard to the percentage of stock they hold.

SEC. 305. GENERAL POWERS OF THE CORPORATION.

68 Stat* 179; 77 Stat. 140* D. C. Code 29901. 41 Stat. 474; 54 Stat. 899. 49 USC 1.

The Corporation is authorized to own, manage, operate, or contract for the operation of intercity trains operated for the purpose of providing modern, efficient, intercity transportation of passengers and to carry mail and express on such trains; to conduct research and development related to its mission; and to acquire by construction, purchase, or gift, or to contract for the use of, physical facilities, equipment, and devices necessary to rail passenger operations. The Corporation shall, consistent with prudent management of the affairs of the Corporation, rely upon railroads to provide the employees necessary to the operation and maintenance of its passenger trains and to the performance of all services and work incidental thereto, to the extent the railroads are able to provide such employees and services in an economic and efficient manner. To carry out its functions and purposes, the Corporation shall have the usual powers conferred upon a stock corporation by the District of Columbia Business Corporation Act. SEC. 306. APPLICABILITY OF THE INTERSTATE COMMERCE ACT AND OTHER LAWS. (a) The Corporation shall be deemed a common carrier by railroad within the meaning of section 1(^3) of the Interstate Commerce Act and shall be subject to all provisions of the Interstate Commerce Act other than those pertaining to— (1) regulation of rates, fares, and charges; (2) abandonment or extension of lines of railroads utilized solely for passenger service, and the abandonment or extension of operations over such lines of railroads, whether by trackage rights or otherwise; (3) regulation of routes and service and, except as otherwise provided in this Act, the discontinuance or change of passenger train service operations.

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(b) The Corporation shall be subject to the same laws and regulations with respect to safety and with respect to the representation of its employees for purposes of collective bargaining, the handling of disputes between carriers and their employees, employee retirement, annuity and unemployment systems, and other dealings with its employees as any other common carrier subject to part I of the Interstate Commerce Act. 24 Stat. 379; (c) The Corporation shall not be subject to any State or other law ^M^usc aVand pertaining to the transportation of passengers by railroad as it relates note. to rates, routes, or service. (d) Leases and contracts entered into by the Corporation, regardless of the place where the same may be executed, shall be governed by the laws of the District of Columbia. (e) Persons contracting with the Corporation for the joint use or operation of such facilities and equipment as may be necessary for the provision of efficient and expeditious passenger service shall be and are hereby relieved from all prohibitions of existing law, including the antitrust laws of the United States, with respect to such contracts, agreements, or leases insofar as may be necessary to enable them to enter into such contracts and to perform their obligations thereunder. SEC. 307. SANCTIONS.

(a) If the Corporation or any railroad engages in or adheres to any action, practice, or policy inconsistent with the policies and purposes of this Act, obstructs or interferes with any activities authorized by this Act, refuses, fails, or neglects to discharge its duties and responsibilities under this Act, or threatens any such violation, obstruction, interference, refusal, failure, or neglect, the district court of the United States for any district in which the Corporation or other person resides or may be found shall have jurisdiction, except as otherwise prohibited by law, upon petition of the Attorney General of the United States or, in a case involving a labor agreement, upon petition of any employee affected thereby, including duly authorized employee representatives, to grant such equitable relief as may be necessary or appropriate to prevent or terminate any violation, conduct, or threat. (b) Nothing contained in this section shall be construed as relieving any person of any punishment, liability, or sanction which may be imposed otherwise than under this Act. SEC. 308. REPORTS TO THE CONGRESS.

(a) The Corporation shall transmit to the President and the Congress, annually, commencing one year from the date of enactment of this Act, and at such other times as it deems desirable, a comprehensive and detailed report of its operations, activities, and accomplishments under this Act, including a statement of receipts and expenditures for the previous year. At the time of its annual report, the Corporation shall submit such legislative recommendations as it deems desirable, including the amount of financial assistance needed for operations and for capital improvements, the manner and form in which the amount of such assistance should be computed, and the sources from which such assistance should be derived. (b) The Secretary and the Commission shall transmit to the President and the Congress, one year following the date of enactment of this Act and biennially thereafter, reports on the state of rail passenger service and the effectiveness of this Act in meeting the requirement for a balanced national transportation system, together with any legislative recommendations.

Annual reports.

Legislative re commendations.

Biennial reports.

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PUBLIC LAW 91-518-OCT. 30, 1970

[84 STAT.

TITLE IV—PROVISION OF RAIL PASSENGER SERVICES

as^en^er^sTrv. ice, contracts.

Ante, p. 1328.

24 Stat. 379; ^^g^usc 27'and note. 72 Stat. 571.

SEC. 401. ASSUMPTION OF PASSENGER SERVICE BY THE CORPORATION; COMMENCEMENT OF OPERATIONS. (^) (^) ^ ^ ^^ before May 1, 1971, the Corporation is authorized to coiitract and, upon written request therefor from a railroad, shall tender a contract to relieve the railroad, from and after May 1, 1971, of its entire responsibility for the provision of intercity rail passenger service. On or after March 1, 1973, but before January 1, 1975, the Corporation is authorized to contract, and upon written request therefor, shall tender a contract to relieve the railroad of its entire responsibility for the provision of intercity rail passenger service and such relief shall become effective upon the date on which such contract is entered into. Contracts may be entered into on or before May 1, 19Y1, notwithstanding the fact that the decision of the Commission under section 102(f) of this Act with respect to avoidable loss has not become final. Any contract entered into before such decision of the Commission has become final shall be subject to adjustment to assure that the contract is consistent with such final decision of the Commission. The contract may be made upon such terms and conditions as necessary to permit the Corporation to undertake passenger service on a timely basis. Upon its entering into a valid contract (including protective arrangements for employees), the railroad shall be relieved of all its responsibilities as a common carrier of passengers by rail in intercity rail passenger service under part I of the Interstate Commerce Act or any State or other law relating to the provision of intercity passenger service: Provided, That any railroad discontinuing a train hereunder must give notice in accordance with the notice procedures contained in section 13a (1) of the Interstate Commerce ^^ct.

passenge/serv(2) l u Consideration of being relieved of this responsibility by the ice deficit payCorporation, the railroad shall agree to pay to the Corporation each '"*"*^* year for three years an amount equal to one-third of 50 per centum of the fully distributed passenger service deficit of the railroad as reported to the Commission for the year ending December 31, 1969. The payment to the Corporation may be made in cash or, at the option of the Corporation, by the transfer of rail passenger equipment or the provision of future service as requested by the Corporation. Unless the railroad waives all rights to receive stock in exchange for its payments, the railroad shall receive common stock from the Corporation in an amount equivalent in par value to each payment. (3) In agreeing to pay the amount specified in paragraph (2) of this subsection, a railroad may reserve the right to pay a lesser sum to be determined by calculating either of the following: (A) 100 per centum of the avoidable loss of all intercity rail passenger service operated by the railroad during the period January 1, 1969, through December 31, 1969; or (B) 200 per centum of the avoidable loss of the intercity rail passenger service operated by the railroad during the period January 1, 1969, through December 31, 1969, covering all intercity service over the routes between those points between which Ante. p. 1329. ^^iQ Sccrctary, under sections 201 and 202 of title II of this Act, has specified that intercity passenger trains shall be operated within the basic system. If the amount owed the Corporation under either of these alternatives is agreed by the parties to be less than the amount paid pursuant to paragraph (2), the Corporation shall pay the difference to the railroad and the railroad shall surrender to the Corporation an amount of stock, at par value, equivalent to such payment. If the railroad and the

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Corporation are unable to agree as to the amount owed, the matter shall be referred to the Interstate Commerce Commission for decision. The Commission, upon investigation, shall decide the issue within ninety days following the date of referral, or within such additional time as the Commission may order not to exceed an aggregate of one hundred and eightj days following such date of referral, and its decision shall be binding on both parties. (4) The payments to the Corporation shall be made in accordance with a schedule to be agreed upon between the parties. Unless the parties otherwise agree, the payments for each of the first twelve months following the date on which the Corporation assumes any of the operational responsibilities of the railroad shall be in cash and not less than one thirty-sixth of the amount owed. (b) On May 1, 1971, the Corporation shall begin the provision of intercity rail passenger service between points within the basic system unless such service is being provided (i) either by a railroad with which it has not entered into a contract under subsection (a) of this section or (ii) by a regional transportation agency, provided such agency gives satisfactory assurance to the Corporation of the agency's financial and operating capability to provide such service, and of its willingness to cooperate with the Corporation and with other regional transportation agencies on matters of through train service, through car service, and connecting train service. The Corporation may at any time subsequent to May 1, 1971, contract with a regional transportation agency to provide intercity rail passenger service between points within the basic system included within the service of such agency. (c) No railroad or any other person may, without the consent of the Corporation, conduct intercity rail passenger service over any route over which the Corporation is performing scheduled intercity rail passenger service pursuant to a contract under this section.

1335

Payment schedule.

Operations, commencement.

Prohibition.

SEC. 402. FACILITY AND SERVICE AGREEMENTS.

(a) The Corporation may contract with railroads or with regional transportation agencies for the use of tracks and other facilities and the provision of services on such terms and conditions as the parties may agree. In the event of a failure to agree, the Interstate Commerce Commission shall, if it finds that doing so is necessary to carry out the purposes of this Act, order the provision of services or the use of tracks or facilities of the railroad by the Corporation, on such terms and for such compensation as the Commission may fix as just and reasonable, and the rights of the Corporation to such services or to the use of tracks or facilities of the railroad or agency under such order or under an order issued under subsection (b) of this section shall be conditioned upon payment by the Corporation of the compensation fixed by the Commission. If the amount of compensation fixed is not duly and promptly paid, the railroad or agency entitled thereto may bring an action against the Corporation to recover the amount properly owed. (b) To facilitate the initiation of operations by the Corporation within the basic system, the Commission shall, upon application by the Corporation, require a railroad to make immediately available tracks and other facilities. The Commission shall thereafter promptly proceed to fix such terms and conditions as are just and reasonable. SEC. 403. NEW SERVICE.

(a) The Corporation may provide intercity rail passenger service in excess of that prescribed "for the basic system, either within or outside the basic system, including the operation of special and extra passenger trains, if consistent with prudent management. Any intercity rail passenger service provided under this subsection for a continuous period of two years shall be designated by the Secretary as a part of the basic system.

47-348 O - 72 - 87 (Pt. 1)

Interstate Commerce Commission authority.

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Page:United States Statutes at Large Volume 84 Part 1.djvu/1394

 1336 Rail service beyond basic s y s tem*

Reimbursement costs*

PUBLIC LAW 91-518~OCT. 30, 1970

[84 STAT.

(b) Any State, regional, or local agency may request of the Corporation rail passenger service beyond that included within the basic system. The Corporation shall institute such service if the State, regional, or local agency agrees to reimburse the Corporation for a reasonable portion of any losses associated with such services. (c) For purposes of this section the reasonable portion of such losses to be assumed by the State, regional, or local agency, shall be no less than 66% per centum of, nor more than, the solely related costs and associated capital costs, including interest on passenger equipment, less revenues attributable to, such service. If the Corporation and the State, regional, or local agency are unable to agree upon a reasonable apportionment of such losses, the matter shall be referred to the Secretary for decision. In deciding this issue the Secretary shall take into account the intent of this Act, and the impact of requiring the Corporation to bear such losses upon its ability to provide improved service within the basic system. SEC. 404. DISCONTINUANCE OF SERVICE.

72 Stat. 5 7 1. 49 USC 13a.

Change in service, notice to Governors.

(a) Unless it has entered into a contract with the Corporation pursuant to section 401(a)(1) of this Act, no railroad may discontmue any intercity passenger train whatsoever prior to January 1, 1975, the provisions of any other Act, the laws or constitution of any State, or the decision or order of, or the pendency of any proceeding before, a Federal or State court, agency, or authority to the contrary notwithstanding. On and after January 1, 1975, passenger train service operated by such railroad may be discontinued under the provisions of section 13a of the Interstate Commerce Act. Upon filing of a notice of discontinuance by such railroad, the Corporation may undertake to initiate passenger train operations between the points served. (b)(1) The Corporation must provide the service included within the basic system until July 1, 1973, to the extent it has assumed responsibility for such service by contract with a railroad pursuant to section 401 of this Act. (2) Except as provided in section 403(a) of this Act, service beyond that prescribed for the basic system undertaken by the Corporation upon its own initiative may be discontinued at any time. (3) If at any time after July 1, 1973, the Corporation determines that any train or trains in the basic system in whole or in part are not required by public convenience and necessity, or will impair the ability of the Corporation to adequately provide other services, such train or trains may be discontinued under the procedures of section 13a of the Interstate Commerce Act (49 U.S.C. 13a): Provided, however. That at least thirty days prior to any change or discontinuance, in whole or in oart, of any service under this subsection, the Corporation shall mail to the Governor of each State in which the train in question is operated, and post in every station, depot, or other facility served thereby notice of the proposed change or discontinuance. The Corporation may not change or discontinue this service if prior to the end of the thirty-day notice period. State, regional, or local agencies request continuation of the service and within ninety days agree to reimburse the Corporation for a reasonable portion of any losses associated with the continuation of service beyond the notice period. (4) For the purposes of paragraph (3) of this subsection, the reasonable portion of such losses to be assumed by the State, regional, or local agency shall be no less than 66% per centum of, nor more than, the solely related costs and associated capital costs, including interest on passenger equipment, less revenues attributable to, such service. If the Corporation and the State, regional, or local agencies are unable to agree upon a reasonable apportionment of such losses, the matter

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1337

shall be referred to the Secretary for decision. I n deciding this issue the Secretary shall take into account the purposes of this Act and the impact of requiring the Corporation to bear such losses upon its ability to provide improved service within the basic system. SEC. 405. PROTECTIVE ARRANGEMENTS FOR EMPLOYEES.

(a) A railroad shall provide fair and equitable arrangements to protect the interests of employees affected by discontinuances of intercity rail passenger service whether occurring before, on, or after January 1, 1975. (b) Such protective arrangements shall include, without being limited to, such provisions as may be necessary for (1) the preservation of rights, privileges, and benefits (including continuation of pension rights and benefits) to such employees under existing collective-baraining agreements or otherwise; (2) the continuation of coUectivear^aining rights; (3) the protection of such individual employees against a worsening of their positions with respect to their employment; (4) assurances of priority of reemployment of employees terminated or laid off; and (5) paid training or retraining programs. Such arrangements shall include provisions protecting individual employees against a worsening of their positions with respect to their employment which shall in no event provide benefits less than those established pursuant to section 5(2)(f) of the Interstate Commerce Act. Any contract entered into pursuant to the provisions of this title 54 Stat. 905. shall specify the terms and conditions of such protective arrangements. '*^ ^^^ ^' No contract under section 401(a)(1) of this Act between a railroad and the Corporation may be made unless the Secretary of Labor has certified to the Corporation that the labor protective provisions of such contract afford affected employees fair and equitable protection by the railroad. (c) After commencement of operations in the basic system, the substantive requirements of subsection (b) of this section shall apply to the Corporation. The certification by the Secretary of Labor that employees affected have been provided fair and equitable protection as required by this section shall be a condition to the completion of any transaction requiring such protection. (d) The Corporation shall take such action as may be necessary to insure that all laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed with the assistance of funds received under any contract or agreement entered into under this title shall 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. 78*1^1**238°^^' The Corporation shall not enter into any such contract or agreement 40 USC 276*. without first obtaining adequate assurance that required labor stand- 2760-5. ards will be maintained on the construction work. Health and safety standards promulgated by the Secretary of Labor pursuant to section 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 333) shall be applicable to all construction work performed ^^ ^*"** ^^* under such contracts or agreements, except any construction work performed by a railroad employee. Wage rates provided for in collective barsraining agreements negotiated under and pursuant to the Railway Labor Act shall be considered as being in compliance with '*'* Stat. 577; 49 Stat. 1189. the Davis-Bacon Act. 45 USC 151-188. (e) The Corporation shall not contract out any work normally performed by employees in any bargaining unit covered by a contract between the Corporation or any railroad providing intercity rail passenger service upon the date of enactment of this Act and any labor organization, if such contracting out shall result in the layoff of any employee or employees in such bargaining unit.

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PUBLIC LAW 91-518-OCT. 30, 1970

[84

STAT.

TITLE V—ESTABLISHMENT OF A FINANCIAL INVESTMENT ADVISORY PANEL SEC. 501. APPOINTMENT OF ADVISORY PANEL.

Within thirty days after enactment of this Act, the President shall appoint a fifteen-man financial advisory panel. Six members of the panel shall represent the business of investment banking, commercial banking, and rail transportation. Two members shall be representatives of the Secretary of the Treasury and seven members shall represent the public in the various regions of the Nation. SEC. 502. PURPOSE OF ADVISORY PANEL.

The advisory panel appointed by the President shall advise the directors of the Corporation on ways and means of increasing capitalization of the Corporation. SEC. 503. REPORT TO CONGRESS.

On or before January 1, 1971, the panel shall submit a report to Congress evaluating the initial capitalization of the Corporation and the prospects for increasing its capitalization. TITLE VI—FEDERAL FINANCIAL ASSISTANCE SEC. 601. FEDERAL GRANTS.

There is authorized to be appropriated to the Secretary in fiscal year 1971, $40,000,000 to remain available until expended, for payment to the Corporation for the purpose of assisting in— (1) the initial organization and operation of the Corporation; (2) the establishment of improved reservations systems and advertising; (3) servicing, maintenance, and repair of railroad passenger equipment; (4) the conduct of research and development and demonstration programs respecting new rail passenger services; (5) the development and demonstration of improved rolling stock; and (6) essential fixed facilities for the operation of passenger trains on lines and routes included in the basic system over which no through passenger trains are being operated at the time of enactment of this Act, including necessary track connections between lines of the same or different railroads. SEC. 602. GUARANTY OF LOANS.

Maturity date.

Appropriation,

The Secretary is authorized, on such terms and conditions as he may prescribe, to guarantee any lender against loss of principal or interest on securities, obligations, or loans issued to finance the upgrading of roadbeds and the purchase by the Corporation or agency of new rolling stock, rehabilitation of existing rolling stock and for other corporate purposes. The maturity date of such securities, obligations, or loans, including all extensions and renewals thereof, shall not be later than twenty years from their date of issuance, and the amount of guaranteed loans outstanding at any time may ^^ot exceed $100,000,000. The Secretary shall prescribe and collect " the '^-^ ing institution a reasonable annual guaranty fee. Thero t to be appropriated such amounts as necessary to carry out tiiis beet j not to exceed $100,000,000.

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TITLE VII—INTERIM EMERGENCY FEDERAL FINANCIAL ASSISTANCE SEC. 701. INTERIM AUTHORITY TO PROVIDE EMERGENCY FINANCIAL ASSISTANCE FOR RAILROADS OPERATING PASSENGER SERVICE.

(a) For the purpose of permitting a railroad to enter into or carry out a contract entered into under this Act, the Secretary is authorized, on such terms and conditions as he may prescribe, to (1) make loans to such railroad, or (2) guarantee any lender against loss of principal or interest on any loan to such railroad. (b) Before making a loan or a guarantee under this section, the Conditions, Secretary must find, in writing, that— (1) the loan or guarantee is necessary to carry out the provisions of this Act; (2) the proceeds of any loan made or guaranteed under this Act will be used solely to carry out contracts entered into under this Act; (3) the loan or guarantee is not otherwise available on reasonable terms and conditions; and (4) there is reasonable assurance that the business affairs of the railroad will be conducted in a prudent manner. (c)(1) In any case in which there is a liquidation of the assets of any railroad which is the recipient of a loan made or guaranteed under this Act, the United States shall have the first right to redeem that portion of such assets consisting of those rights-of-way, tracks, and other facilities designated by the Secretary to be necessary for the purpose of providing intercity rail passenger service, including services employing innovative technology, within the basic system. (2) I t is the intent of the Congress that, in the case of a loan guarantee under this Act, the United States shall stand in the same position with respect to other creditors as in the case of a direct loan by the United States giving the United States priority over secured and unsecured creditors. Interest rate, (d) Interest on loans made under this section shall be at a rate not determination by less than a rate determined by the Secretary of the Treasury, taking Trea'surTs ecreinto consideration the current average market yield on outstanding ^^'•y* marketable obligations of the United States with remaining periods to maturity comparable to the average maturity of such loans adjusted to the nearest one-eighth of one per centum. (e) The maturity date on any loan made or guaranteed under this section, including renewals and extensions thereof, shall not be later than five years from the date of issuance. (f) The aggregate amount of loans and loan guarantees made under this section shall not exceed $200,000,000. SEC. 702. AUTHORIZATION FOR APPROPRIATIONS.

There are hereby authorized to be appropriated such amounts not to exceed $200,000,000 as may be necessary to carry out the purposes of this title. Any sums appropriated shall be available until expended. TITLE VIII—MISCELLANEOUS PROVISIONS SEC. SOL ADEQUACY OF SERVICE.

The Commission is authorized to prescribe such regulations as it considers necessary to provide safe and adequate service, equipment, and facilities for intercity rail passenger service. Any person who violates a regulation issued under this section shall be subject to a civil penalty of not to exceed $500 for each violation. Each day a violation continues shall constitute a separate offense.

Regulations, violation, penalty.

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59 Stat. 600; 70 Stat. 667.

Annual audit by independent accountants.

Records, availability.

Report to Congress, contents. Ante, p. 1333.

Audit by Comptroller General.

Records, availability.

Report to Congress, contents.

PUBLIC LAW 91.518-OCT. 30, 1970

[84 STAT.

SEC. 8a2. EFFECT ON PENDING PROCEEDINGS. Upon enactment of this Act, no railroad may discontinue any intercity rail passenger service whatsoever other than in accordance with the provisions of this Act, notwithstanding the provisions of any other Act, the laws or constitution of any State, or the decision or order of, or the pendency of any proceeding before, any Federal or State court, agency, or authority. SEC. 803. SEPARABILITY. If any provision of this Act or the application thereof to any person or circumstance is held invalid, the remainder of the Act and the application of such provision to other persons or circumstances shall not be affected thereby SEC. 804. ACCOUNTABILITY. Section 201 of the Government Corporation Control Act (31 U.S.C. 856) is amended by striking out "and" immediately preceding " (5) " and b}^ inserting immediately before the period at the end thereof the following: "and (6) the National Railroad Passenger Corporation". SEC. 805. RECORDS AND AUDIT OF THE CORPORATION. (1)(A) The accounts of the Corporation shall be audited annually in accordance with generally accepted auditing standards by independent certified public accountants or independent licensed public accountants certified or licensed by a regulatory authority of a State or other political subdivision of the United States. The audit shall be conducted at the place or places where the accounts of the Corporation are normally kept. All books, accounts, financial records, reports, files, and other papers, things, or property belonging to or in use by the Corporation and necessary to facilitate the audit shall be made available to the person conducting the audit; and full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians shall be afforded to such person. (B) The report of each such independent audit shall be included in the annual report required by section 308(a) of this Act. The audit report shall set forth the scope of the audit and include such statements as are necessary to present fairly the Corporation's assets and liabilities, surplus or deficit, with an analysis of the changes therein during the year, supplemented in reasonable detail by a statement of the Corporation's income and expenses during the year, and a statement of the sources and application of funds, together with the independent auditor's opinion of those statements. (2)(A) The financial transactions of the Corporation for any fiscal year during which Federal funds are available to finance any portion of its operations' may be audited by the Comptroller General of the United States in accordance with the principles and procedures applicable to commercial corporate transactions and under such rules and regulations as may be prescribed by the Comptroller General. Any such audit shall be conducted at the place or places where accounts of the Corporation are normally kept. The representative of the Comptroller General shall have access to all books, accounts, records, reports, files, and other papers, things, or property belonging to or in use by the Corporation pertaining to its financial transactions and necessary to facilitate the audit, and they shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians. All such books, accounts, records, reports, files, papers, and property of the Corporation shall remain in possession and custody of the Corporation. (B) A report of each such audit shall be made by the Comptroller General to the Congress. The report to the Congress shall contain such comments and information as the Comptroller General may

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deem necessary to inform Congress of the financial operations and condition of the Corporation, together with such recommendations with respect thereto as he may deem advisable. The report shall also show specifically any program, expenditure, or other financial transaction or undertaking observed in the course of the audit, which, in the opinion of the Comptroller General, has been carried on or made without authority of law. A copy of each report shall be furnished to the President, to the Secretary, and to the Corporation at the time submitted to the Congress.

1341

copies,

TITLE IX—TAX DEDUCTION FOR CERTAIN PAYMENTS TO THE N A T I O N A L R A I L R O A D P A S S E N G E R CORPORATION SEC. 901. (a) Part VIII of subchapter B of chapter 1 of the Internal Revenue Code of 1954 (relating to special deductions for esA Stat. 72; corporations) is amended by adding at the end thereof the following ^ \ r u s c 24'i-249. new section: "SEC. 250. CERTAIN PAYMENTS TO THE NATIONAL RAILROAD PASSEN<1ER CORPORATION. "(a)

GENERAL RULE.—If—

"(1) any corporation which is a common carrier by railroad (as defined in section 1(3) of the Interstate Commerce Act (49 U.S.C. 1 (3))) makes a payment in cash, rail passenger equip- '*^ Stat. 474; ment, or services to the National Railroad Passenger Corporation ^'^ ^'°'* *^^* (hereinafter in this section referred to as the 'Passenger Corporation') pursuant to a contract entered into under section 401(a) of the Rail Passenger Service Act of 1970, and "(2) no stock in the Passenger Corporation is issued at any time to such corporation in connection with any contract entered into under such section 401(a), then the amount of such payment shall (subject to subsection (c)) be allowed as a deduction for the taxable year in which it is made. "(b) W H E N PAYMENT Is MADE.—Under regulations prescribed by the Secretary or his delegate, a payment in rail passenger equipment shall be treated as made when title to the equipment is transferred, and a payment in services shall be treated as made when the services are rendered. "(c)

EFFECT OF CERTAIN SUBSEQUENT ACQUISITIONS OF STOCK.— " (1) DISALLOWANCE OF DEDUCTIONS.—If any deduction has been

allowed under subsection (a) to a corporation and such corporation (or a successor corporation) acquires any stock in the Passenger Corporation (other than m a transaction described in section 374 or 381) before the close of the 36-month period which eg A* lutV m. ' begins with the day on which the last payment is made to the 26 USC 374i38i. Passenger Corporation pursuant to the contract entered into under such section 401(a), then such deduction shall be disallowed (as of the close of the taxable year for which it was allowed under subsection (a)). " (2) COLLECTION or DEFICIENCY.—If any deduction is disal-

lowed by reason of paragraph (1), then the periods of limitation provided in sections 6501 and 6502 on the making of an assess- seljsc^esS^* ment and the collection by levy or a proceeding m court shall, 6502. with respect to any deficiency (including interest and additions to the tax) resulting from such a disallowance, include one year following the date on which the person acquiring the stock which results in the disallowance (in accordance with regulations prescribed by the Secretary or his delegate) notifies the Secretary or his delegate of such acquisition; and such assessment and col-

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78 Stat. 120; 83 Stat. 602. 26 USC 1563.

[84 STAT.

lection may be made notwithstanding any provision of law or rule of law which otherwise would prevent such assessment and collection. " (d) MEMBERS OF CONTROLLED (TROUP.—Under regulations prescribed by the Secretary or his delegate, if a corporation is a member of a controlled group of corporations (within the meaning of section 1563), subsections (a)(2) and (c) shall be applied by treating all members of such controlled group as one corporation.'' (b) The table of sections for such part VIII is amended by adding at the end thereof the following: "Sec. 250. Certain payments to the National Railroad Passenger Corporation."

Effective date.

(c) The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. Approved October 30, 1970.

Public Law 91-519 November 2, 1970 [S.3586]

Health Training Improvement Act of 1970.

AN ACT To amend title VII of the Public Health Service Act to establish eligibility of new schools of medicine, dentistry, osteopathy, pharmacy, optometry, veterinary medicine, and podiatry for institutional grants under section 771 thereof, to extend and improve the program relating to training of personnel in the allied health professions, and for other purposes.

Be it enacted by the Senate and House of Representatives United States of America in Congress assembled,

of the

SHORT TITLE

1. This Act may be cited as the "Health Training Improvement Act of 1970". SECTION

TITLE I—SCHOOLS OF M E D I C I N E, D E N T I S T E Y, OSTEOPATHY, PHARMACY, OPTOMETRY, VETERINARY MEDICINE, AND PODIATRY

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INSTITUTIONAL GRANTS

SEC. 101. (a) Section 771 of the Public Health Service Act (42 U.S.C. 295f-l) is amended by adding at the end thereof the following new subsection: " (d) I n the case of a new school of medicine, dentistry, osteopathy, pharmacy, optometry, veterinary medicine, or podiatry, which applies for a grant under this section m the fiscal year preceding the fiscal year in which it will admit its first class, the enrollment for purposes of subparagraph (a)(1)(A) of this section shall be the number of full-time students which the Secretary determines, on the basis of assurances provided by the school, will be enrolled in the school, in the fiscal year after the fiscal year in which the grant is made." (b) The amendment made by subsection (a) of this section shall be effective only with respect to sums available for grants under section 771 of the Public Health Service Act from appropriations under section 770 of such Act for the fiscal years ending after June 30, 1970.

^^ ^'^'* ^^s.

^2 USC 295f.

MEDICAL AND DENTAL SCHOOLS IN FINANCIAL DISTRESS

SEC. 102. (a) Section 772 of the Public Health Service Act (42 U.S.C. 295f-2) is amended— (1) by adding at the end thereof the following new sentence: ^ift'"'^^' ^''^^^°" "Sums appropriated under section 770 for the fiscal year ending June 30, 1971, for grants under this section to assist any such schools which are in serious financial straits to meet their costs of operation shall remain available to make such grants until June 30, 1972."; and (2) by inserting " (a) " after "Sec. 772." and by adding at the end the following new subsection: "(b) The Congress finds and declares that the Nation's economy, welfare, and security are adversely affected by the acute financial crisis which threatens the survival of medical and dental schools which provide the highest quality of teaching, medical and dental research, and delivery of health care for the Nation. The Secretary shall determine the need for emergency financial assistance to such medical and dental schools and shall report to the Congress on or before June 30, Report to ^

^

' Congress.

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!? f}^i'11^:

42 USC 795f.

PUBLIC LAW 91-519-NOV. 2, 1970

[84 STAT.

1971, his determinations of such need and his recommendations for such administrative and legislative action as he determines is necessary to meet such needs.". (b) The ajnendment made by paragraph (1) of subsection (a) of this section shall apply only with respect to appropriations under section 770 of the Piiblic Health Service Act made after the date of the enactment of this Act. TITLE II—ALLIED HEALTH PEOFESSIONS GRANTS FOR CONSTRUCTION OF TEACHING FACILITIES FOR ALLIED HEALTH PROFESSIONS PERSONNEL

80 Stat. 1222; 2 Stat, 788.

SEC. 201. (a) Paragraph (1) of subsection (a) of section 791 of the Public Health Service Act (42 U.S.C. 295h(a)(1)) is amended (1) by striking out "and" after "June 30, 1969;"^ and (2) by striking out the period and inserting in lieu thereof a semicolon and the following: "; $20,000,000 for the fiscal year ending June 30, 1971; $30,000,000 for the fiscal year ending June 30, 1972; and $40,000,000 for the fiscal year ending June 30, 1973." (b) Paragraph (1) of subsection (b) of such section is amended by striking out "July 1, 1969" and inserting in lieu thereof "July 1, 1972". GRANTS TO IMPROVE THE QUALITY OF TRAINING FOR ALLIED HEALTH PROFESSIONS

SEC. 202. (a) Effective with respect to appropriations for the fiscal year beginning July 1, 1970, section 792 of the Public Health Service Act (42 U.S.C. 295h-l (a)) is amended as follows: (1) Sul^ection (a) of such section is amended to read as follows: "Basic Improvement Grants

Repeal.

"SEC. 792. (a)(1) There are authorized to be appropriated $15,000,000 for the fiscal year ending June 30, 1971, $15,000,000 for the fiscal year ending June 30. 1972^ and $15,000,000 for the fiscal year ending June 30, 1973, for oasic improvement grants under this subsection." (2) Subsection (b) of such section is amended— (A) by striking out the subsection heading, (B) by striking out " (b)(1) " and inserting in lieu thereof "(2)", .. (C) by striking out "paragraph (2)" and inserting m lieu thereof "paragraph (3)'*, (D) by striking out "June 30, 1970" and inserting in lieu thereof "June 30, 1973", and (E) by striking out " (2) " in paragraph (2) aad inserting in lieu thereof "(3)". ^3^ Subsection (c) is repealed and the following new subsections are inserted immediately before subsection (d): "Special Improvement Grants "(b) There are authorized to be appropriated $15,000,000 for the fiscal year ending June 30, 1971, $20,000,000 for the fiscal year ending June 30, 1972» and $30,000,000 for the fiscal year ending June 30, 1973, for special improvement grants to assist training centers for allied

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health professions in projects for the provision, maintenance, or improvement of the specialized functions which the center serves. ^'Special Projects for Experimentation, Demonstration, and Institutional Improvement " (c)(1) There are authorized to be appropriated $10,000,000 for the fiscal year ending June 30, 1971, $20,000,000 for the fiscal year ending June 30, 1972, and $30,000,000 for the fiscal year ending June 30, 1973, for grants and contracts for special projects under this subsection. "(2) The Secretary is authorized, from sums available therefor from appropriations made under this subsection and subsection (b), to make grants to public or nonprofit private agencies, organizations, and institutions, and to enter into contracts with individuals, agencies, organizations, and institutions, for special projects related to training or retraining of allied health personnel, including— " (A) planningj establishing, demonstrating, or developing new programs, or modifying or expanding existing programs, including interdisciplinary training programs; "(B) develoj^ing, demonstrating, or establishing special programs, or adapting existing programs, to reach special groups such as returning veterans with experience in a health field, the economically or culturally deprived, or persons reentering any of the allied health fields; " (C) developing, demonstrating, or evaluating new or improved teaching methods or curriculums; "(D) developing, demonstrating, or establishing interrelationships amon^ institutions which will facilitate the training, retraining, or utilization of allied health manpower; "(E) developing, demonstrating, or evaluating new types of health manpower; "(F) developing, demonstrating, or evaluating techniques for appropriate recognition (including equivalency and proficiencjjr testing mechanisms) of previously acquired training or experience; and "(G) developing, demonstrating, or evaluating new or improved means of recruitment, retraining, or retention of allied health manpower." (b) Effective with respect to grants from appropriations for the fiscal year beginning July 1, 1970, subsection (d) of section 792 is amended— (A) by striking out "basic or special improvement" in paragraph (1); (B) by inserting "in the case of a basic or special improvement grant," immediately after " (A) " in paragraph (2)(A); and (C) by striking out "for grants under subsection fc)" in paragraph (3) and inserting in lieu thereof "for special improvem^it grants under subsection (b) and for special project grants under subsection (c)". (c) Effective with respect to grants from appropriations for the fiscal year beginning July 1, 1970^ section 796(3) of such Act (42 TJ.S.C. 295h-4) is amended by striking out "as applied to any training center for allied health professions'" and inserting in lieu thereoi ", as applied to any training center for allied health professions or to any private agency, organization, or institution^". (d) Effective with respect to the fiscal year beginning July 1, 1970, section 794 of such Act (42 U.S.C. 295h-3) is repealed.

Contract authoi ity.

80 Stat. 1227. 42 USC 295h-l,

Repeal. Effective date» 80 Stat. 1228; 82 Stat. 788.

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PUBLIC LAW 91-519-NOV. 2, 1970 a R A I N E P: S H I P S FOR ADVANCED T R A I N I N G OF ALLIED H E A L T H PERSONNEL

80 Stat. 1228; 82 Stat. 788.

PROFESSIONS

SEC. 203. (a) Subsection (a) of section 793 of the Public Healtli Service Act (42 U.S.C. 295h-2(a)) is amended (1) by striking out u^^^v ^f^.^^. uj^j^g gQ^ 1969;", aud (2) by inserting after "June 30, 1970;" the following: "$8,000,000 for the fiscal year ending June 30, 1971; $10,000,000 for the fiscal year ending June 30, 1972; and $12,000,000 for the fiscal year ending June 30, 1973;". (b) Effective with respect to grants from appropriations for the fiscal year beginning July 1, 1970— (1) Subsection (b) of such section is amended by striking out "training centers for allied health professions" and inserting in lieu thereof "agencies, organizations, and institutions". (2) Subsection (c) of such section is amended by striking out "centers" and inserting in lieu thereof "public or nonprofit private agencies, organizations, and institutions". ENCOURAGEMENT

42 USC 295h.

[84 STAT.

OF F U L L UTILIZiVTION OF EDUCATIONAL THE ALLIED H E A L T H PROFESSIONS

TALENT

FOR

SEC. 204. Part G of title VII of the Public Health Service Act is amended by adding immediately after section 793 thereof the following new sections: " G R A N T S A N D CONTRACTS TO ENCOURAGE F U L L U T I L I Z A T I O N OF EDUCAT I O N A L T A L E N T FOR ALLIED H E A L T H PROFESSIONS

Appropriation.

"SEC. 794A. (a) To assist in meeting the need for additional trained personnel in the allied health professions, the Secretary is authorized to make grants to State or local educational agencies or other public or nonprofit private agencies, institutions, and organizations, or enter into contracts without regard to section 3709 of the Revised Statutes (41 U.S.C. (5)), for the purpose of— "(1) identifying individuals of financial, educational, or cultural need with a potential for education or training in the allied health professions, including returning veterans of the Armed Forces of the United States with training or experience in the health field, and encouraging and assisting them, whenever appropriate, to (A) complete secondary school, (B) undertake such postsecondary training as may be required to qualify them for training in the allied health professions, and (C) undertake postsecondary educational training in the allied health professions, or "(2) publicizing existing sources of financial aid available to persons undertaking training or education in the allied health professions. "(b) For the purpose of carrying out the provisions of this section, there are authorized to be appropriated $750,000 for the fiscal year ending June 30, 1971; $1,000,000 for the fiscal year ending June 30, 1972: and $1,250,000 for the fiscal year ending June 30, 1973. "SCHOLARSHIP GRANTS

"SEC. 794B. (a) The Secretary is authorized to make (in accordance wnth such regulations as he may prescribe) grants to public or nonprofit private agencies, institutions, and organizations with an established program for training or retraining of personnel in the allied health professions or occupations specified by the Secretary for (1) scholarships to be awarded by such agency, institution, or organization to students thereof, and (2) scholarships in retaining programs

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of such agency, institution, or organization to be awarded to allied health professions personnel in occupations for which such agency, institution, or organization determines that there is a need for the development of, or the expansion of, training. "(b) Scholarships awarded by any agency, institution, or organization from grants under subsection (a) shall be awarded for any year only to individuals of exceptional financial need who require such assistance for such year in order to pursue a course of study offered by such agency, institution, or organization. "(c) Grants under subsection (a) may be paid in advance or by way of reimbursement and at such intervals as the Secretary may deem appropriate and with appropriate adjustments on account of overpayments or underpayments previously made. " (d) Any scholarship awarded from grants under subsection (a) to any individual for any year shall cover such portion of the individual's tuition, fees, books, equipment, and living expenses as the agency, institution, or organization awarding the scholarship may determine to be needed by such individual for such year on the basis of his requirements and financial resources; except that the amount of any such scholarship shall not exceed $2,000, plus $600 for each dependent (not in excess of three) in the case of any individual who is awarded such a scholarship. "(e) The Secretary shall not approve any grant under this section unless the applicant therefor provides assurances satisfactory to the Secretary that funds made available through such grant will be so used as to supplement and, to the extent practicable, increase the level of non-Federal funds, which would in the absence of such grant, be made available for the purpose for which such grant is requested. "(f) For the purpose of carrying out the provisions of this section, there is authorized to be appropriated $4,000,000 for the fiscal year ending June 30, 1971; $5,000,000 for the fiscal year ending June 30, 1972; and $6,000,000 for the fiscal year ending June 30, 1973. "WORK-STUDY

PROGRAMS

"SEC. 794C. (a) The Secretary is authorized to enter into agreements with public or nonprofit private agencies, institutions, and organizations with established programs for the training or retraining of personnel in the allied health professions specified by the Secretary under which the Secretary will make grants to such agencies, institutions, and organizations to assist them in the operation of work-study programs for individuals undergoing training or retraining provided by such programs. " (b) Any agreement entered into pursuant to this section with a public or nonprofit private agency, institution, or organization shall— "(1) provide that such agency, institution, or organization, will operate a work-study program for the part-time employment of its students or trainees either (A) in work for such agency, institution, or organization or (B) pursuant to arrangements between such agency, institution, or organization and another public or private nonprofit agency, institution, or organization, in work which is in the public interest for such other agency, institution, or organization; "(2) provide that any such work-study program shall be operated in such manner that its operation will not result in the displacement of employed workers or impair existing contracts for employment; "(3) provide that any such work-study program will provide conditions of employment, for the students or trainees partici-

1347

Scholarship, limitation.

Appropriation.

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[84 STAT.

pating therein, which are appropriate and reasonable in light of such factors as type of work performed, prevailing wages in the area for similar work, and proficiency of the individual in the performance of the work involved; "(4) provide that no Federal funds made available to such agency, institution, or organization pursuant to such agreement shall be used for the construction, operation, or maintenance of any facility or part thereof which is used or is to be used for sectarian instruction or as a place for religious worship; "(5) provide that Federal funds made available to such agency, institution, or organization pursuant to such agreement shall be used only to make payments to its students or trainees performing work in the work-study program operated by such agency, instiAdministrative tution, or Organization; except that such agency, institution, or expenses. Organization may use a portion of such funds to meet administrative expenses connected with the operation of such program, but Funds, limitathe portion which may be so used shall not exceed 5 per centum of that part of such funds which is used for the purpose of making payments, to such students or trainees, for work performed for a public or private nonprofit agency, institution, or organization other than the agency, institution, or organization receiving such Federal funds pursuant to such agreement; famm^t"°°rtfet"^^^ provide that such agency, institution, or organization, in en'^e.*^* ^^^ ^^ Selecting students or trainees for employment in such work-study program, will give preference to individuals from low-income lamilies, and that no individual will be selected for employment in such program unless he (A) is in need of the earnings from such employment in order to pursue a course of study (whether on a full-time or part-time basis) for training or retraining of personnel in the allied health professions provided by such agency, institution, or organization, (B) is capable, in the opinion of such agency, institution, or organization, of maintaining good standing in such course of study while employed under such work-study program, and (C) in the case of any individual who at the time he applies for such employment is a new student or trainee, has been accepted for enrollment in such course of study on a fulltime basis or part-time and, in the case of any other individual, is enrolled in such course of study on such a basis and is maintaining good standing in such course of study; ortuniti^"^"* °^" " (^) provide that such agency, institution, or organization shall, in the operation of such work-study program, provide all individuals desiring employment therein an opportunity to make application for such employment and that, to the extent that necessary funds are available, all eligible applicants will be employed in such program; and "(8) include such other provisions as the Secretary may deem necessary or appropriate to carry out the purposes of this section. "(c) The Secretary shall not approve any grant under this section unless the applicant therefor provides assurances satisfactory to the Secretary that funds made available through such grant will be so used as to supplement and, to the extent practical, increase the level of nonFederal funds which would, in the absence of such grant, be made available for the purpose for which such grant is requested, ^unds, limita" (d)(1) Fuuds provided through any grant made under this section tion. shall not be used to pay more than— " (A) 90 per centum, in the case of the period commencing on the date of the enactment of this section and ending with the close of the third June 30th thereafter, " (B) 85 per centum, in the case of the one-year period which immediately succeeds the period referred to in clause (A),

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"(C) 80 per centum, in the case of the one-year period which immediately succeeds the period referred to in clause (B), nor "(D) 75 per centum, in the case of any period after the period referred to in clause (C), of the costs attributable to the payment of compensation to students or trainees for employment in the work-study program with respect to which such grant is made. "(2)(A) In determining (for purposes of paragraph (1)) the amounts attributable to the payment of compensation to students or trainees for employment in any work-study program, there shall be disregarded any Federal funds (other than such funds derived from a grant under this section) used for the payment of such compensation. "(B) In determining (for purposes of paragraph (1)) the total amounts expended for the payment of compensation to students or trainees for employment in any work-study program operated by any agency, institution, or organization receiving a grant under this section, there shall be included the reasonable value of compensation provided by such agency, institution, or organization to such students or trainees in the form of services and supplies (including tuition, board, and books). " (e) For the purpose of carrying out the provisions of this section, there is authorized to be appropriated $2,000,000 for the fiscal year ending June 30, 1971, $4,000,000 for the fiscal year ending June 30, 1972, and $6,000,000 for the fiscal year ending June 30, 1973.

1349

student services and supplies*

Appropriation>

" L O A N S rOR STUDENTS OF THE ALLIED H E A L T H PROFESSIONS

"SEC. 794D. (a)(1) The Secretary is authorized (in accordance with such regulations as he may prescribe) to enter into an agreement for the establishment and operation of a student loan fund in accordance with this section with any public or private nonprofit agency, institution, or organization which has an established program for the training or retraining of personnel in the allied health professions specified by the Secretary. " (2) Each agreement entered into under this subsection shall— "(A) provide for establishment of a student loan fund by such agency, institution, or organization for students or trainees enrolled in such program; "(B) provide for deposit in the fund of (i) the Federal capital contributions paid under this section to the agency, institution, or organization by the Secretary, (ii) an additional amount from other sources equal to not less than one-ninth of such Federal capital contributions, (iii) collections of principal and interest on loans made from the fund, (iv) collections pursuant to subsection (b)(6), and (v) any other earnings of the fund; "(C) provide that the fund shall be used only for loans to students or trainees enrolled in such program of the agency, institution, or organization in accordance with the agreement and for costs of collection of such loans and interest thereon; "(D) provide that loans may be made from such fund to students pursuing a course of study (whether full time or part time) in such program of such agency, institution, or organization and that while the agreement remains in effect no such student who is attending such program of such agency, institution, or organization shall receive a loan from a loan fund established under section 204 of the National Defense Education Act of 1958 or pursuant to part B of the title IV of the Higher Education Act of 1965; and "(E) contain such other provisions as are necessary to protect the financial interests of the United States.

student loan fund*

Fund deposits^

72 Stat. 1584; 82 Stat. 1034. 20 USC 424. 20 USC 1071.

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