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42 U.S.C. 291v

or treatment centers, hospitals for the chronically ill and impaired, rehabilitation facilities, and nursing homes. The Surgeon General shall approve any such revision of, or supplement to, the State plan which is based upon a statewide inventory of existing facilities available for such purposes and which—

(1) meets the requirements of paragraphs (1), (2), (3), (6), (8), and (9) of section 623 (a): Provided, That if the designated advisory council does not include representatives of nongovernmental organizations or groups or State agencies, concerned with rehabilitation, the plan shall provide for consultation with organizations, groups, and State agencies so concerned;

(2) conforms with the regulations prescribed under section 622 as revised and supplemented for the purposes of this part;

(3) sets forth, with respect to each type of facility, the relative need determined in accordance with such revised regulations, and provides for the construction, insofar as financial resources available therefor and for maintenance and operation make possible, of such facilities in the order of such relative needs; and

(4) provides that the State agency will from time to time review its construction program for such facilities as a part of its State plan and submit to the Surgeon General any modifications thereof which it considers necessary.

(b) The provisions of subsections (b) and (c) of section 623 shall be applicable to State plans with respect to projects for construction under this part. Except with respect to hospitals, the provisions of subsection (d) of such section shall not be applicable to State plans with respect to projects for construction under this part.

APPROVAL OF PROJECTS AND PAYMENTS- -FEDERAL SHARE

SEC. 654. (a) Applications under this part by States, political subdivisions, or public or other nonprofit agencies for (1) public or other nonprofit diagnostic or treatment centers, (2) public or other nonprofit hospitals for the chronically ill and impaired, (3) public or other nonprofit rehabilitation facilities, or (4) public or other nonprofit nursing homes shall be submitted, and shall be approved by the Surgeon General (subject also, in the case of rehabilitation facilities, to the approval of the Secretary) if sufficient funds are available from the State's allotment under this part for such type of facility, in accordance with the procedures and subject to the conditions prescribed in subsection (a) of section 625 and the regulations issued under section 622 as revised and supplemented for the purposes of this part: Provided, however, That (except with respect to hospitals)

the assurances required for compliance with State standards for operation and maintenance shall be limited to such standards, if any, as the State may prescribe. Approved applications shall be subject to amendment as provided in subsection (c) of section 625.

(b) Upon the request of any State that a specified portion of any allotment to such State for the purposes of paragraph (1), (2), or (4) of section 651 be added to another allotment of such State for the purposes of one of such paragraphs, and upon the simultaneous certification to the Surgeon General by the State agency in such State to the effect that it has afforded a reasonable opportunity to make applications for the portion so specified and there have been no approvable applications for such portion, the Surgeon General shall promptly adjust the allotments in accordance with such request and shall notify the State agency, and thereafter the allotments as so adjusted shall be deemed the State's allotments for the purposes of such paragraphs.

(c) Procedures and conditions for payments under this part shall be in accord with the provisions of subsection (b) of section 625.143

(d) Notwithstanding subsection (a) of this section, no application for a diagnostic or treatment center shall be approved under such subsection unless the applicant is (1) a State, political subdivision, or public agency, or (2) a corporation or association which owns and operates a nonprofit hospital (as defined in section 631 (g)).143 PART H-LOANS FOR CONSTRUCTION OF HOSPITALS AND OTHER FACILITIES 144

AUTHORIZATION OF FEDERAL LOANS

SEC. 661.145 In order further to assist the States in carrying out the purposes of this title, the Surgeon General is authorized prior to July 1, 1964, to make a loan of funds to the applicant for any project for construction which meets all of the conditions specified in this title for a grant under part C or part G.

APPROVAL OF LOANS; PAYMENTS TO APPLICANTS SEC. 662. Except as hereinafter provided, an application for a loan with respect to any construction project under this part shall be submitted, and shall be approved by the Surgeon General in accordance with the same procedures and subject to the same limitations and conditions as would be applicable to the making of a grant under this title for the construction of such project.

143 Former subsec. 654 (c) was redesignated as sec. 637 and transferred to Part D; and former subsecs. (d) and (e) have been redesignated as (c) and (d) by P.L. 86-158. 144 Part H added by P.L. 85-589, effective August 1, 1958.

145 Sec. 661 amended by sec. 6 of P.L. 87-395.

42. U.S.C. 291w

42 U.S.C. 291x

42 U.S.C. 291y

42 U.S.C. 291z

Any such application may be approved in any fiscal year only if sufficient funds are available from the allotment for the type of facility involved. All loans under this part shall be paid directly to the applicant.

TERMS OF LOANS

SEC. 663. (a) The amount of a loan under this part shall not exceed an amount equal to the Federal share of the estimated cost of construction of the project. Where a loan under this part and a grant under part C or part G are made with respect to the same project, the aggregate amount of such loan and such grant shall not exceed an amount equal to the Federal share of the estimated cost of constructing the project. Each loan shall bear interest at the rate arrived at by adding onequarter of 1 per centum per annum to the rate which the Secretary of the Treasury determines to be equal to the current average yield on all outstanding marketable obligations of the United States as of the last day of the month preceding the date the application for the loan is approved and by adjusting the result so obtained to the nearest one-eighth of 1 per centum. Each loan made under this part shall mature not more than forty years after the date on which such loan is made: Provided, That nothing in this Act shall prohibit the payment of all or part of the loan at any time prior to maturity date. In addition to the terms and conditions provided for, each loan under this part shall be made subject to such terms, conditions, and covenants relating to repayment of principal, payment of interest, and other matters as may be agreed upon by the ap plicant and the Surgeon General.

(b) Where the Surgeon General determines it necessary to protect the financial interest of the United States, he may enter into agreements modifying any of the terms and conditions of a loan made under this part.

(c) If, at any time before a loan for a project has been repaid in full, any of the events specified in clause (A) or clause (B) of section 625 (e) shall occur with respect to such project, the unpaid balance of the loan shall become immediately due and payable by the applicant, and any transferee of the facility shall be liable to the United States for such repayment.

FUNDS FOR LOANS BY THE SURGEON GENERAL

SEC. 664. Any loan under this title shall be made out of the allotment from which a grant for the project concerned would be made. Payments of interest and repayments of principal on loans under this part shall be deposited in the Treasury as miscellaneous receipts.

TITLE VII-HEALTH RESEARCH

FACILITIES 146

DECLARATION OF POLICY

SEC. 701. (a) The Congress hereby finds and declares that (1) the Nation's economy, welfare, and security are adversely affected by many crippling and killing diseases the prevention and control of which require a substantial increase, in all areas of the Nation, of research activities in the sciences related to health, and (2) funds for the construction of new and improved non-Federal facilities to house such activities are inadequate.

(b) It is therefore the purpose of this title to assist in the construction of facilities for the conduct of research in the sciences related to health by providing grants-in-aid on a matching basis to public and nonprofit institutions for such purpose.

DEFINITIONS

SEC. 702. As used in this title

(1) the term "Council" means the National Advisory Council on Health Research Facilities established by section 703;

(2) the terms "construction" and "cost of construction" include (A) the construction of new buildings and the expansion, remodeling and alteration of existing buildings, including architects' fees, but not including the cost of acquisition of land or off-site improvements, and (B) equipping new buildings and existing buildings, whether or not expanded, remodeled, or altered;

(3) the term "nonprofit institution" means an institution owned and operated by one or more corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual; and

(4) the term "sciences related to health" includes medicine, osteopathy, dentistry, and public health, and fundamental and applied sciences when related thereto.

NATIONAL ADVISORY COUNCIL ON HEALTH RESEARCH
FACILITIES

SEC. 703. (a) There is hereby established in the Pub-
lic Health Service a National Advisory Council on
Health Research Facilities, consisting of the Surgeon
General of the Public Health Service, who shall be
Chairman, and an official of the National Science
Foundation designated by the National Science Board,

146 The PHS Act was amended by P.L. 835, 84th Congress, by adding a new Title VII.

42 U.S.C. 292

42 U.S.C. 292a

42 U.S.C. 292b

who shall be ex officio members, and twelve members appointed by the Secretary without regard to the civilservice laws. Four of the appointed members shall be selected from the general public and eight shall be selected from among leading medical, dental, or scientific authorities who are skilled in the sciences related to health. In selecting persons for appointment to the Council, consideration shall be given to such factors, among others, as (1) experience in the planning, constructing, financing, and administration of institutions engaged in the conduct of research in the sciences related to health, and (2) familiarity with the need for research facilities in all areas of the Nation.

(b) The Council shall—

(1) advise and assist the Surgeon General in the preparation of general regulations and with respect to policy matters arising in the administration of this title; and

(2) consider all applications for grants under this title and make to the Surgeon General such recommendations as it deems advisable with respect to (A) the approval of such applications, and (B) the amount which should be granted to each applicant whose application, in its opinion, should be approved.

(c) The Surgeon General is authorized to use the services of any member or members of the Council, and where appropriate, any member or members of the Federal Hospital Council, the National Advisory Health Council or the other national advisory councils referred to in section 217 of this Act, in connection with matters related to the administration of this title, for such periods, in addition to conference periods, as he may determine. The Surgeon General shall, in addition, make appropriate provision for consultation between and coordination of the work of the Council, the Federal Hospital Council, the National Advisory Health Council and such other national advisory councils, with respect to matters bearing on the purposes and administration of this title.

(d) Appointed members of the Council, while attending conferences or meetings of the Council or while otherwise serving at the request of the Secretary, shall be entitled to receive compensation at a rate to be fixed by the Secretary but not exceeding $50 per diem, including travel time, and while away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by law (5 U.S.C. 73b-2) for persons in the Government service employed intermittently.

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