grants and contracts to improve the quality of schools of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, and podiatry; health manpower education initiative awards

grants and contracts to improve the quality of schools of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, and podiatry; health manpower education initiative awards Sec. 104. (a) Capitation, Special Project, and Other Grant and Contract Programs.—Part E of title VII is amended to read as follows: “Part E—Grants and Contracts To Improve the Quality of Schools of Medicine, Osteopathy, Dentistry, Veterinary Medicine, Optometry, Pharmacy, and Podiatry; Health Man-power Education Initiative Awards “capitation grants “Sec. 770. (a) Grant Computation.—The Secretary shall make annual grants to schools of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, and podiatry for the support of the education programs of such schools. The amount of the annual grant to 85 Stat. 438each such school with an approved application shall be computed for each fiscal year as follows. “(1) Each school of medicine (other than a two-year school of medicine), osteopathy, and dentistry shall receive— “(A) in the case of full-time students enrolled in such school in such year in a training program which is more than three years, $2,500 for each such first-, second-, and third-year student and $4,000 for each such student who will graduate from such school in such year; “(B) in the case of full-time students enrolled in such school in such year in a training program which is not more than three years, $2,500 for each such student enrolled and $6,000 for each such student who will graduate from such school in such year; “(C) in the case of full-time students enrolled in such school in such year in a training program which is designed to permit such students to complete, within six years after completing secondary school, the requirements for the degree of doctor of medicine, $2,500 for each such student enrolled in such year in the last three years of such program and $6,000 for each such student who will graduate from such school in such year, and for purposes of subsections (d) and (f), a student enrolled in the first year of the last three years of such school’s medical training program shall be considered a first-year student. “(D) $1,000 for each student who is enrolled in such year on a full-time basis in a program of such school for the training of physicians’ assistants or dental therapists; and “(E) $1,000 for each enrollment bonus student (as determined under subsection (d)) enrolled in such school in such year. “(2) Each two-year school of medicine shall receive (A) $2,500 for each full-time student enrolled in such school in such year in the last two years of the training program of such school; (B) $1,000 for each enrollment bonus student enrolled in such school in such year in such last two years; and (C) $1,000 for each student who is enrolled in such year on a full-time basis in a program of such school for the training of physicians’ assistants. For purposes of subsections (d) and (f), a student enrolled in the first year of the last two years of such school’s medical training program shall be considered a first-year student. “(3) Each school of veterinary medicine shall receive $1,750 for each full-time student, and $700 for each enrollment bonus student, enrolled in such school in such year. “(4) Each school of optometry shall receive $800 for each full-time student, and $320 for each enrollment bonus student, enrolled in such school in such year. “(5) Each school of pharmacy (other than a school of pharmacy with a course of study of more than four years) shall receive $800 for each full-time student, and $320 for each enrollment bonus student, enrolled in such school in such year. Each school of pharmacy with a course of study of more than four years shall receive $800 for each full-time student enrolled in the last four years of such school and $320 for each enrollment bonus student enrolled in the last four years of such school. For purposes of subsections (d) and (f), a student enrolled in the first year of the last four years of such school shall be considered a first-year student. “(6) Each school of podiatry shall receive $800 for each full-time student, and $320 for each enrollment bonus student, enrolled in such school in such year. 85 Stat. 439 That part of a grant to any school which is computed under this subsection on the number of enrollment bonus students enrolled in such school may not exceed $150,000 for each class in which such students are enrolled. “(b) Small Medical, Osteopathic, and Dental Schools.—If the first fiscal year (beginning after June 30, 1971) in which any school of medicine, osteopathy, or dentistry receives a grant under subsection (a) is a fiscal year in which the number of first-year students enrolled in such school is not more than 50, then, in such year, and in the succeeding fiscal year, the amount of the grant payable to such school under subsection (a) shall be increased by $50,000. “(c) Apportionment of Appropriations.—If the total of the grants to be made under this section for any fiscal year— “(1) to schools of medicine, osteopathy, and dentistry with approved applications exceeds the amounts appropriated under subsection (j) (1) for such grants, or “(2) to schools of veterinary medicine, optometry, pharmacy, and podiatry with approved applications exceeds the. amounts appropriated under subsection (j) (2) for such grants, the amount of the grant for that fiscal year to each such school shall be an amount which bears the same ratio to the amount determined for the school for that fiscal year under the applicable provisions of subsections (a) and (b) as the total of the amounts appropriated for that year under subsection (j) (1) or (j) (2), as the case may be, bears to the amount required to make grants in accordance with subsections (a) and (b) to each school referred to in clause (1) or (2), as the case may be. “(d) Enrollment Bonus Student Defined.—For purposes of subsection (a), a full-time student enrolled for any school year in a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, or podiatry (other than a student enrolled in a program of such school for the training of physician’s assistants or dental therapists and a student for whom a grant is made under section 771) shall be considered to be an enrollment bonus student if— “(1) he enrolled in such school as a first-year student for a school year beginning after June 30, 1971: and “(2) the size of the class of first-year students which enrolled in such school for such school year met the applicable requirement of subsection (e)(1) (A) or (e) (2) (A), and the application of such school for a grant under this section for the fiscal year in which such school year began met the applicable requirement of subsection (e)(1)(B) or (e)(2)(B). Any student who is considered to be an enrollment bonus student for the. school year for which he enrolled as a first-year student in a school shall be considered to be an enrollment bonus student for each school year thereafter for which he is enrolled in such school. “(e) Class Size and Application Requirements for Bonus Enrollment Students.— “(1) School year 1971–1972.— If the school year for which a class enrolled as a class of first-year students in a school was the first school year beginning after June 30, 1971— “(A) the number of students who enrolled in such class for such school year must exceed the number of first-year students who enrolled in such school for the preceding school year by 5 per centum of such number or by five students, whichever is greater; and “(B) the application of such school for a grant under this section in the fiscal year ending June 30, 1972, must contain or be supported by reasonable assurances that, for the first 85 Stat. 440school year beginning after June 30, 1972 and for each school year thereafter, the number of students enrolled in such school as a class of first-year students will not be less than a number equal to the sum of— “(i) the minimum enrollment of first-year students required under subparagraph (A); and “(ii) 10 per centum of the number of first-year students enrolled for the first school year beginning after June 30, 1970, if such number was not. more than 100, or, if such number was more than 100, 5 per centum of such number or ten students, whichever is greater. “(2) School years after school year 1971–1972.— If the school year for which a class enrolled as a class of first-year students in a school was any school year beginning after June 30, 1972— “(A) the number of students who enrolled in such class for such school year— “(i) if such school has not previously received a grant for bonus enrollment students, must be not less than the sum of (I) the minimum number of first-year students which such school is required pursuant to subsection (f) (or would be required pursuant to subsection (f) except for paragraph (2) thereof) to enroll for such school year, and (II) 5 per centum of that number or 5 students, whichever is greater; or “(ii) if such school has previously qualified for a bonus enrollment grant under this section, must be not less than the sum of (I) the minimum number of students which such school was required, pursuant to paragraph (1) (B) or (2) (B) (as the case may be), to assure the Secretary would be enrolled for such school year, and (II) 5 per centum of that number or 5 students, which-ever is greater; and “(B) the application of such school for a grant under this section for the fiscal year in which such school year begins contains or is supported by reasonable assurances that, for the first school year beginning after the close of such fiscal year and for each fiscal year thereafter, the number of students enrolled in such school as a class of first-year students will not be less than the minimum number of students such school was required under subparagraph (A) to enroll as first-year students. “(f) Maintenance of Effort and Enrollment Increase Requirements.— “(1) The Secretary shall not make a grant under this section to any school in a fiscal year beginning after June 30, 1971, unless the application for such grant contains or is supported by reasonable assurances satisfactory to the Secretary— “(A) that for the first school year beginning after the close of the fiscal year in which such grant is first made and for each school year thereafter during which such a grant is made the first-year enrollment of full-time students in such school will exceed the number of such students enrolled in the school year beginning during the fiscal year ending June 30, 1971— “(i) by 10 per centum of such number if such number was not more than 100, or “(ii) by 5 per centum of such number, or 10 students, whichever is greater, if such number was more than 100; and 85 Stat. 441 “(B) that the applicant will expend in carrying out its function as a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, or podiatry, as the case may be, during the fiscal year for which such grant is sought, an amount of funds (other than funds for construction as determined by the Secretary) from non-Federal sources which is at least as great as the average amount of funds expended by such applicant for such purpose (excluding expenditures of a nonrecurring nature) in the 3 fiscal years immediately preceding the fiscal year for which such grant is sought. The requirements of subparagraph (A) shall be in addition to the requirements of section 721(c) (2), where applicable. “(2) The Secretary is authorized to waive (in whole or in part) the provisions of paragraph (1) (A) if he determines, after consultation with the National Advisory Council on Health Professions Education, that the required increase in first-year enrollment of full-time students in a school cannot, because of limitations of physical facilities available to the school for training or because of other relevant factors, be accomplished without lowering the quality of training provided therein. “(3) In those instances where enrollment increases proposed exceed the requirements of paragraph (1) (A), the Secretary shall satisfy himself, after consultation with the appropriate accreditation body or bodies (as defined in section 721(b) (1)), that there is reasonable assurance that such expanded program will meet the accreditation standards of such body or bodies. “(g) Plan Requirement.— “(1) In the case of a school which has not received a grant under subsection (a) in a fiscal year beginning after June 30, 1971, an application by such school for a grant for a fiscal year beginning after that date shall contain or be accompanied by a plan to carry out or establish and carry out. during the two-school-year period commencing not later than the first day of the fiscal year next following the fiscal year in which the grant is made, specific projects in at least three of the following categories of projects (or if the application is for a school of pharmacy, specific projects in the category described in clause (G) and specific projects in at least two other categories): “(A) Projects to effect significant improvements in the curriculum of such school (including projects for shortening of the length of time required to complete training programs provided by such school). “(B) Projects to establish cooperative interdisciplinary training among schools of medicine, dentistry, osteopathy, optometry, podiatry, pharmacy, veterinary medicine, nursing, public health, and allied health, including projects for training for the use of the team approach to the provision of health services. “(C) Projects to train for new roles, types, or levels of health personnel, including programs for the training of physicians’ assistants, dental therapists, and other health pro-fessions’ assistants, and nurse practitioners, in cooperation with appropriate academic institutions and hospitals. “(D) Projects to make innovative modifications of existing programs of education in the health professions, including projects for the teaching of the organization, provision, financing, or evaluation, of health care. “(E) Projects to assist in significantly increasing the sup-85 Stat. 442ply of adequately trained personnel in the health professions needed to meet the health needs of the Nation. “(F) Projects to establish, at schools of medicine, osteopathy, or dentistry, increased emphasis on, and training in, the science of clinical pharmacology; diagnosis, treatment, and prevention of drug and alcohol use and abuse; the assessment of the efficacy of various therapeutic regimens, and; in the case of schools of medicine and osteopathy, the science of nutrition. “(G) Projects to provide, at schools of pharmacy, for increased emphasis on, and training in, clinical pharmacy, drug use and abuse, and where appropriate clinical pharmacology. “(H) Projects to increase admissions to, and enrollment and retention in, such schools of qualified individuals who, due to socioeconomic factors, are financially or educationally disadvantaged. “(I) Projects to train and educate primary care health professionals with particular emphasis (in the case of schools of medicine, osteopathy, and dentistry) upon the establishment of new, or expansion of existing, programs for training in family medicine. “(2) The Secretary may make on-site inspections of any school, or require the supplying of information or data from any school, receiving a grant under subsection (a) to determine the extent to which such school is carrying out the specific projects required to be included in the plan submitted by such school (pursuant to paragraph (1)) in connection with its application for such grant. “(3) The Secretary shall submit to the Committee on Labor and Public Welfare of the Senate and the Committee on Interstate and Foreign Commerce of the House of Representatives two reports containing full and complete information as to the extent to which schools receiving grants under subsection (a) are carrying out the specific projects included in plans submitted by them pursuant to paragraph (1). The first such report shall be submitted not later than January 1, 1973, and the second such report shall be submitted not later than September 1, 1974. “(h) Enrollment and Graduation Determinations.— “(1) For purposes of this part and part F, regulations of the Secretary shall include provisions relating to determination of the number of students enrolled in a school, or in a particular year-class in a school, or the number of graduates, as the case may be, on the basis of estimates or on the basis of the number of students who were enrolled in a school, or in a particular year-class in a school, or were graduates, in an earlier year, as the case may be, or on such basis as he deems appropriate for making such determination, and shall include methods of making such determination when a school or a year-class was not in existence in an earlier year at a school. “(2) For purposes of this part and part F, the term ‘full-time students’ (whether such term is used by itself or in connection with a particular year-class) means students pursuing a full-time course of study leading to a degree of doctor of medicine, doctor of dentistry, or an equivalent degree, doctor of osteopathy, bachelor of science in pharmacy or an equivalent degree, doctor of optometry or an equivalent degree, doctor of veterinary medicine or an equivalent degree, or doctor of podiatry or an equivalent degree. 85 Stat. 443 “(i) Applications for New Schools.—In the case of a new school of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, or podiatry, which applies for a grant under this section in the fiscal year preceding the fiscal year in which it will admit its first class, the enrollment for purposes of subsections (a) and (b) 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. “(j) Authorization of Appropriations.— “(1) There are authorized to be appropriated $200,000,000 for the fiscal year ending June 30, 1972, $213,000,000 for the fiscal year ending June 30, 1973, and $238,000,000 for the fiscal year ending June 30, 1974, for grants under this section to schools of medicine, osteopathy, and dentistry. “(2) There are authorized to be appropriated $34,000,000 for the fiscal year ending June 30, 1972, $37,000,000 for the fiscal year ending June 30, 1973, and $41,000,000 for the fiscal year ending June 30, 1974, for grants under this section to schools of veterinary medicine, optometry, pharmacy, and podiatry. “(3) No funds appropriated under any provision of this Act (other than this subsection) may be used to make grants under this section. “start-up assistance “Sec. 771. (a) (1) In the case of any new school of medicine, osteopathy or dentistry which begins instruction after the date of enactment of this section, the Secretary may, after taking into account— “(A) the ability of such school to use a grant under this section to (i) accelerate the date it will begin instruction, or (ii) increase the number of students in its entering class, and “(B) the other resources available to such school, make a grant to such school for each year such school is a new school (as determined under paragraph (4)). No school may receive a grant under this subsection unless the Secretary estimates that the number of full-time students enrolled in its first academic year of operation will exceed twenty-three. “(2) The Secretary shall determine the amount of any grant under this subsection; but no such grant to any school may exceed— “(A) in the case of the year preceding the first year in which such school has students enrolled, an amount equal to the product of $10,000 and the number of full-time students which the Secretary estimates will enroll in such school in such first year; “(B) in the case of the first year in which such school has students enrolled, an amount equal to the product of $7,500 and the number of full-time students enrolled in such school in such year; “(C) in the case of the second year in which such school has students enrolled, an amount equal to the product of $5,000 and the number of full-time students enrolled in such school in such year; “(D) in the case of the third year in which such school has students enrolled, an amount equal to the product of $2,500 and the number of full-time students enrolled in such school in such year. Estimates by the Secretary under this subsection of the number of full-time students enrolled in a school may be made on the basis of assurances provided by the school. “(3) The Secretary shall give special consideration to each application of a school for grant assistance under this subsection which contains or is reasonably supported by assurances, that, because of the 85 Stat. 444use that the school will make of existing facilities (including Federal medical or dental facilities), it will be able to accelerate the date on which it will begin its teaching program. “(4) For purposes of this subsection, any school of medicine, osteopathy, or dentistry shall be considered a new school for any year if such year is the year preceding the first year in which such school has students enrolled, such first year, and the next two years. “(5) Payments under grants under this subsection may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Secretary finds necessary. “(6) There is authorized to be appropriated to make grants under this subsection not to exceed $10,000,000 for the fiscal year ending June 30, 1972, and a like amount for each of the next two fiscal years. Sums appropriated under this paragraph shall remain available until expended. “(b) (1) The Secretary shall make a grant to any public or nonprofit private two-year school of medicine (or any school accredited as such a two-year school) which intends to become a school accredited to grant the degree of doctor of medicine. The amount of the grant to a school under this subsection shall be equal to the product of $50,000 and the number of third-year students which the Secretary determines will be initially enrolled in such school. Upon application by the school, the Secretary shall (if the school so requests) make a grant to such school for expenditure in the year preceding the initial enrollment of third-year students in such school, or thereafter. No school may receive more than one grant under this subsection. “(2) No grant may be made under this subsection unless an application therefor has been submitted before July 1, 1974, and the school enrolls third-year students not later than the school year beginning in the fiscal year ending June 30, 1975. The Secretary may not approve an application for a grant under this subsection unless he determines it contains or is supported by reasonable assurances that the school for which the application is made will be affiliated with an accredited hospital in the fiscal year for which such grant is made. Payments under grants under this subsection may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Secretary finds necessary. “special project grants and contracts “Sec. 772. (a) The Secretary may make grants to assist schools of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, and podiatry in meeting the costs of special projects to— “(1) effect significant improvements in the curriculums of any such schools (including projects to shorten the length of time required for training in such schools), with particular emphasis, in the case of schools of medicine or osteopathy, upon the establishment of new, or expansion of existing, programs for training in family medicine; “(2) develop programs for cooperative interdisciplinary training among schools of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, podiatry, nursing, public health, and allied health, including projects for training in the use of the team approach to the delivery of health services; “(3) develop and operate training programs, and train, for new roles, types, or levels of health personnel, including programs for the training of physicians’ assistants and other health professions’ assistants; “(4) plan, develop, or establish new programs, or innovative modifications of existing programs, of education in such health 85 Stat. 445professions, including the teaching of the organization, delivery, financing, or evaluation of health care; “(5) research, develop, or demonstrate advances in the various fields related to education in such health professions; “(6) assist in increasing the supply, or improving the distribution, by geographic area or specialty group, of adequately trained personnel in such health professions needed to meet the health needs of the Nation; “(7) establish and operate programs at schools of medicine or osteopathy (and where applicable at other health professions schools) (A) providing increased emphasis on, and training in, the science of clinical pharmacology, the prevention, diagnosis, treatment, and rehabilitation of alcoholism and drug dependence, and the assessment of the efficacy of various therapeutic regimens, or (B) providing increased emphasis on, and training and research in, the science of human nutrition and the application of such science to health; “(8) establish and operate projects designed to identify, and in-crease admissions to and enrollment in schools of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, and podiatry of, individuals whose background and interests make it reasonable to assume that they will engage in the practice of their health profession in rural or other areas having a severe shortage of personnel in such health profession; “(9) establish and operate projects designed to increase admissions to and enrollment in such schools of qualified invididuals from minority or low-income groups; “(10) plan experimental teaching programs or facilities; “(11) provide traineeships (including costs of training and fees, stipends, and allowances for the students (including travel and subsistence expenses and dependency allowances)) for full-time students to secure part of their education under a preceptor in family practice, pediatrics, internal medicine, or other health fields designated by the Secretary, or in rural or other areas having a severe shortage of physicians: “(12) utilize health personnel more efficiently, through the use of computer technology and otherwise; or “(13) encourage new or more effective approaches to the organization and delivery of health services through the use of the team approach to delivery of health services and the utilization of computer technology to process biomedical information in the provision of health services. The Secretary may also enter into contracts with public or private health or educational entities to carry out any project described in this subsection. “(b) Grants and contracts may also be made by the Secretary under this section for— “(1) the discovery, collection, development, or confirmation of information for, “(2) the planning, development, demonstration, establishment, or maintenance of. “(3) the alteration or renovation of existing facilities for, any project described in subsection (a). “(c) Contracts under this section may be entered into without regard to sections 3648 and 3709 of the Revised Statutes (31 U.S.C. 529; 41 U.S.C. 5). “(d) There are authorized to be appropriated $118,000,000 for the fiscal year ending June 30, 1972, $138,000,000 for the fiscal year ending June 30, 1973, and $156,000,000 for the fiscal year ending June 30, 85 Stat. 4461974, for the purpose of making payments pursuant to grants and contracts under this section. Funds appropriated under this subsection for the fiscal year ending June 30, 1972, shall remain available for obligation through September 30, 1972. “grants to assist health professions schools which are in financial distress “Sec. 773. (a) There are authorized to be appropriated $20,000,000 for the fiscal year ending June 30, 1972, $15,000,000 for the fiscal year ending June 30, 1973, and $10,000,000 for the fiscal year ending June 30, 1974, to make grants under this section, and, to the extent that sums appropriated under this subsection are not used for such grants, for grants under section 772. Funds appropriated under this subsection for the fiscal year ending June 30, 1972, shall remain available for obligation through September 30, 1972. “(b) The Secretary may make grants to assist any school of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, or podiatry which is in serious financial straits to meet its costs of operation or which has special need for financial assistance to meet accreditation requirements. “(c) Any grant under this section may be made upon such terms and conditions as the Secretary determines to be reasonable and necessary, including requirements that the school agree (1) to disclose any financial information or data deemed by the Secretary to be necessary to determine the sources or causes of that school’s financial distress, (2) to conduct a comprehensive cost analysis study in cooperation with the Secretary, and (3) to carry out appropriate operational and financial reforms on the basis of information obtained in the course of the comprehensive cost analysis study or on the basis of other relevant information. “(d) An application for a grant under this section must contain or be supported by assurances satisfactory to the Secretary that the applicant will expend in carrying out its function as a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, or podiatry, as the case may be, during the fiscal year for which such grant is sought, an amount of funds (other than funds for construction, as determined by the Secretary) from non-Federal sources which is at least as great as the average amount of funds expended by such applicant for such purpose (excluding expenditures of a nonrecurring nature) in the three fiscal years immediately preceding the fiscal year for which such grant is sought. The Secretary may, after consultation with the National Advisory Council on Health Professions Education, waive the requirement of the preceding sentence with respect to any school if he determines application of such requirement to such school would be inconsistent with the purposes of this section. “health manpower education initiative awards “Sec. 774. (a) (1) For the purpose of improving the distribution, supply, quality, utilization, and efficiency of health personnel and the health services delivery system, the Secretary may make grants to public or nonprofit private health or educational entities, and may enter into contracts with public or private health or educational entities, for projects— “(A) to encourage the establishment or maintenance of programs to alleviate shortages of health personnel in areas designated by the Secretary through training or retraining such personnel in facilities located in such areas or to otherwise im-85 Stat. 447prove the distribution of health personnel by area or by specialty group; “(B) to provide training programs leading to more efficient utilization of health personnel; “(C) to initiate new types and patterns or improve existing patterns of training, retraining, continuing education, and advanced training of health personnel, including teachers, administrators, specialists, and paraprofessionals (particularly physicians’ assistants, dental therapists, and pediatric nurse practitioners); “(D) to encourage new or more effective approaches to the organization and delivery of health services through training individuals in the use of the team approach to delivery of health services and otherwise; or “(E) to assist State, local, or other regional arrangements among schools and related organizations and institutions to carry out the purpose of this subsection. “(2) Grants and contracts may also be made by the Secretary under this section for (A) the discovery, collection, development or confirmation of information for, (B) the planning development, demonstration, establishment, or maintenance of, or (C) the alteration or renovation of existing facilities for, any of the projects described in paragraph (1) of this subsection. “(3) Contracts may be entered into under this subsection without regard to sections 3648 and 3709 of the Revised Statutes (31 U.S.C. 529; 41 U.S.C. 5). “(b) The Secretary may also make grants to public or nonprofit private health or educational entities to assist in meeting the costs of special projects to— “(1) establish or operate projects designed to identify, and increase admissions to and enrollment in schools of medicine, dentistry, osteopathy, optometry, podiatry, pharmacy, veterinary medicine, public health, or other health training of, individuals whose background and interests make it reasonable to assume that they will engage in the practice of their health profession in rural or other areas having a severe shortage of personnel in such health profession; or “(2) (A) identify individuals with a potential for education or training in the health professions (including veterans of the Armed Forces of the United States with training or experience in the health field) who due to socioeconomic factors are financially or otherwise disadvantaged and encouraging and assisting them (i) to enroll in a school of medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, veterinary medicine, public health, or other health training; or (ii) if they are not qualified to enroll in such a school, to undertake such postsecondary education or training as may be required to qualify them to enroll in such a school; “(B) publicize existing sources of financial aid available to persons enrolled in any such school or who are undertaking training necessary to qualify them to enroll in any such school; or “(C) establish such programs as the Secretary determines will enhance and facilitate the enrollment, pursuit, and completion of study by individuals referred to in clause (A) in schools referred to in clause (A) (i). Of the sums appropriated under subsection (e) for any fiscal year, not more than 15 per centum of such sums, but in no event less than $5,000,000, shall be used to make grants under this subsection in such fiscal year. Of the sums available for grants under this subsection for any fiscal year, not more than one-half of such sums may be used for 85 Stat. 448such fiscal year for projects described in clause (1) and not more than one-half of such sums may be used for such fiscal year for projects described in clause (2). “(c) (1) No grant may be made under this section unless an application therefor has been submitted to, and approved by, the Secretary. Such application shall be in such form, submitted in such manner, and contain such information as the Secretary shall by regulation prescribe. “(2) The amount of any grant under this section shall be determined by the Secretary. Payments under grants under this section may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Secretary finds necessary. “(d) Each grant or contract under subsection (a) of this section must be coordinated with the regional medical program for the area in which the grant or contract will be carried out. “(e) For the purpose of making payments pursuant to grants and contracts under this section, there are authorized to be appropriated $45,000,000 for the fiscal year ending June 30, 1972, $90,000,000 for the fiscal year ending June 30, 1973, and $135,000,000 for the fiscal year ending June 30, 1974. Funds appropriated under this subsection for the fiscal year ending June 30, 1972, shall remain available for obligation through September 30, 1972. “applications for capitation, start-up, special project, and financial distress grants “Sec. 775. (a) The Secretary may from time to time set dates (not earlier than in the fiscal year preceding the year for which a grant is sought) by which applications for grants under section 770, 771, 772, or 773 for any fiscal year must be filed. “(b) To be eligible for a grant under section 770, 771, 772, or 773, the applicant must (1) be a public or other nonprofit school of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, or podiatry, and (2) be accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education, except that the requirement of this clause shall be deemed to be satisfied if (A) in the case of a school which by reason of no, or an insufficient, period of operation is not, at the time of application for a grant under this part, eligible for such accreditation, the Commissioner finds, after consultation with the appropriate accreditation body or bodies, that there is reasonable assurance that the school will meet the accreditation standards of such body or bodies prior to the beginning of the academic year following the normal graduation date of students who are in their first year of instruction at such school during the fiscal year in which the Secretary makes a final determination as to approval of the application, or (B) in the case of any other school, the Commissioner finds after such consultation and after consultation with the Secretary that there is reasonable ground to expect that, with the aid of a grant (or grants) under those sections, having regard for the purposes of the grant for which application is made, such school will meet such accreditation standards within a reasonable time. “(c) The Secretary shall not approve or disapprove any application for a grant under this part except after consultation with the National Advisory Council on Health Professions Education (established by section 725). “(d) A grant under section 770, 771, 772, or 773 may be made only if the application therefor— “(1) is approved by the Secretary upon his determination that the applicant (and its application) meet the applicable eligibility 85 Stat. 449conditions prescribed by section 770, 771, or 773 or subsection (b) of this section; “(2) contains such additional information as the Secretary may require to make the determinations required of him under the section authorizing the grant for which the application is made and such assurances as he may find necessary to carry out the purposes of such section; and “(3) provides for such fiscal-control and accounting procedures and reports, and access to the records of the applicant, as the Secretary may require to assure proper disbursement of and accounting for Federal funds paid to the applicant under such grant.”