grants and contracts

grants and contracts Sec. 801. (a) Effective October 1, 1976, part F of title VII is amended to read as follows: “Part F— Grants and Contracts for Programs and Projects “project grants for establishment of departments of family medicine “Sec. 780. (a) The Secretary may make grants to schools of medicine and osteopathy to meet the costs of projects to establish and maintain academic administrative units (which may be departments, divisions, or other units) to provide clinical instruction in family medicine. “(b) The Secretary may not approve an application for a grant under subsection (a) unless such application contains— “(1) assurance satisfactory to the Secretary that the academic administrative unit with respect to which the application is made will (A) be comparable to academic administrative units for other major clinical specialties offered by the applicant, (B) be responsible for directing an amount of the curriculum for each member of the student body engaged in an education program leading to the awarding of the degree of doctor of medicine or doctor of osteopathy which amount is determined by the Secretary to be comparable to the amount of curriculum required for other major clinical specialties in the school, (C) have a number90 STAT. 2312 of full-time faculty which is determined by the Secretary to be sufficient to conduct the instruction required by clause (B) and to be comparable to the number of faculty assigned to other major clinical specialties in the school, and (D) have control over a three-year approved or provisionally approved residency training program in family practice or its equivalent as determined by the Secretary which shall have the capacity to enroll a total of no less than twelve interns or residents per year; and “(2) such other information as the Secretary shall by regulation prescribe. “(c) There arc authorized to be appropriated $10,000,000 for the fiscal year ending September 30, 1978, $15,000,000 for the fiscal year ending September 30, 1979, and $20,000,000 for the fiscal year ending September 30, 1980, for payments under grants under subsection (a). “area health education centers “Sec. 781. (a) For the purpose of improving the distribution, supply, quality, utilization, and efficiency of health personnel in the health services delivery system and for the purpose of encouraging the regionalization of educational responsibilities of health professions schools, the Secretary may enter into contracts for projects to assist in the planning, development, and operation of area health education center programs. “(b) An area health education center program shall be a cooperative program of one or more medical or osteopathic schools and one or more nonprofit private or public area health education centers. “(c) Each medical or osteopathic school participating in an area health education center program shall— “(1) provide for the active participation in such program by individuals who are associated with the administration of the school and each of the departments (or specialties if the school has no such departments) of internal medicine, pediatrics, obstetrics and gynecology, surgery, psychiatry, and family medicine; “(2) provide that no less than 10 percent of all undergraduate medical or osteopathic clinical education of the school will be conducted in an area health education center and at locations under the sponsorship of such center; “(3) be responsible for, or conduct, a program for the training of physician assistants (as defined in section 701(7)) or nurse practitioners (as defined in section 822) which gives special consideration to the enrollment of individuals from, or intending to practice in, the area served by the area health education center of the program; and “(4) provide for the active participation of at least 2 schools or programs of other health professions (including a school of dentistry if there is one affiliated with the university with which the school of medicine or osteopathy is affiliated) in the educational program conducted in the area served by the area health education center. “(d) (1) Each area health education center shall specifically designate a geographic area in which it will serve, or shall specifically designate a medically underserved population it will serve (such area or population with respect to such center in this section inferred to as ‘the area served by the center’), which area or population is in a location remote from the main site of the teaching facilities of the school or schools which participate in the program with such center. 90 STAT. 2313 “(2) Each area health education center shall— “(A) provide for or conduct training in health education services, including education in nutrition evaluation and counseling, in the area served by the center; “(B) assess the health manpower needs of the area served by the center and assist in the planning and development of training programs to meet such needs; “(C) provide for or conduct a medical residency training program in family medicine or general internal medicine in which no fewer than six individuals are enrolled in first-year positions in such program; “(D) provide opportunities for continuing medical education (including education in disease prevention) to all physicians and other health professionals (including allied health personnel) practicing within the area served by the center; “(E) provide continuing medical education and other support services to the National Health Service Corps members serving within the area served by the center; “(F) encourage the utilization of nurse practitioners and physician assistants within the area served by the center and the recruitment of individuals for training in such professions at the participating medical or osteopathic schools; “(G) arrange and support educational opportunities for medical and other students at health facilities, ambulatory care centers, and health agencies throughout the area served by the center; and “(H) have an advisory board of which at least 75 percent of the members shall be individuals, including both health service providers and consumers, from the area served by the center. Any area health education center which is participating in an area health education center program in which another center has a medical residency training program described in subparagraph (C) need not provide for or conduct such a medical residency training program. “(e) The Secretary is authorized to enter into contracts with medical and osteopathic schools, which have cooperative arrangements with area health education centers, for the planning, development, and operation of area health education center programs. In entering into contracts under this section the Secretary shall assure that— “(1) at least 75 percent of the total funds provided to any school shall be expended by an area health education center program in the area health education centers; “(2) not more than 75 percent of the total operating funds of a program in any year shall be provided by the Secretary; and “(3) no contract shall provide funds solely for the planning or development of such a program for a period of longer than two years. “(f) For the purpose of this section the term ‘area health education center program’ means a program which is organized and operated in a maimer described in subsection (b) and which is capable, as determined by the Secretary, of performing each of the functions described in subsection (d)(2). The Secretary shall, by regulation, establish standards and criteria for the requirements of this section. “(g) There are authorized to be appropriated to carry out the provisions of this section $20,000,000 for the fiscal year ending September 30, 1978, $30,000,000 for the fiscal year ending September 30, 1979, and $40,000,000 for the fiscal year ending September 30, 1980. 90 STAT. 2314 “education of returning united states students from foreign medical schools “Sec. 782. (a) The Secretary may make grants to schools of medicine and osteopathy in the States to plan, develop, and operate programs— “(1) to train United States citizens who were students in medical schools in foreign countries before the date of enactment of the Health Professions Educational Assistance Act of 1976 to enable them to meet the requirements for enrolling in schools of medicine or osteopathy in the States as full-time students with advanced standing; or “(2) to train United States citizens who have transferred from medical schools in foreign countries in which they were enrolled before the date of enactment of the Health Professions Educational Assistance Act of 1976, and who have enrolled in schools of medicine or osteopathy in the States as full-time students with advanced standing. The costs for which a grant, under this subsection may be made may include the costs of identifying deficiencies in the medical school education of the United States citizens who were students in foreign medical schools, the development of materials and methodology tor correcting such deficiencies, and specialized training designed to prepare such United States citizens for enrollment in schools of medicine or osteopathy in the States as full-time students with advanced standing. “(b) More than one school of medicine or osteopathy may join in the submission of an application for a grant under subsection (a). “(c) Any school of medicine or osteopathy which receives a grant under this subsection in the fiscal year ending Sept ember 30, 1978, shall submit to the Secretary before June 30, 1979, a report on the deficiencies (if any) identified by the school in the foreign medical education of the students trained by such school under the program for which such grant was made. The Secretary shall compile the reports submitted under the preceding sentence, and before September 30, 1979 submit to the Congress his analysis and evaluation of the information contained in such reports. “(d) There are authorized to be appropriated for the purposes of this section $2,000,000 for the fiscal year ending September 30, 1977, $2,000,000 for the fiscal year ending September 30, 1978, $3,000,000 for the fiscal year ending September 30, 1979, and $4,000,000 for the fiscal year ending September 30, 1980. “programs for physician assistants, expanded function dental auxiliaries and dental team practice “Sec. 783. (a) The Secretary may make grants to and enter into contracts with public or nonprofit private schools of medicine, osteopathy, and dentistry and other public or nonprofit private entities to meet the costs of projects to— “(1) plan, develop, and operate or maintain programs for the training of physician assistants (as defined in section 701(7)); “(2) plan, develop, and operate or maintain programs for the training of expanded function dental auxiliaries (as defined in section 701(8)); and “(3) plan, develop, and. operate or maintain a program to train dental students in the organization and management of multiple90 STAT. 2315 auxiliary dental team practice in accordance with regulations of the Secretary. “(b) No grant or contract may be made under subsection (a) unless the application therefor contains or is supported by assurances satisfactory to the Secretary that the school or entity receiving the grant or contract has appropriate mechanisms for placing graduates of the training program with respect to which the application is submitted, in positions for which they have been trained. “(c) The Secretary shall ensure t hat the making of grants and entering into contracts under this section shall be integrated with the making of grants and entering into contracts under section 830. “(d) The costs for which a grant or contract under this section may be made include costs of preparing faculty members to teach in programs for the training of physician assistants and expanded function dental auxiliaries. “(e) For payments under grants and contracts under this section, there is authorized to be appropriated $25,000,000 for the fiscal year ending September 30, 1978, $30,000,000 for the fiscal year ending September 30, 1979. and $35,000,000 for the fiscal year ending September 30, 1980. “grants for training, traineeships, and fellowships in general internal medicine and general pediatrics “Sec. 784. (a) The Secretary may make grants to and enter into contracts with schools of medicine and osteopathy to meet the costs of projects— “(1) to plan, develop, and operate approved residency training programs in internal medicine or pediatries, which emphasize the training of residents for the practice of general internal medicine or general pediatrics (as defined by the Secretary in regulations); and “(2) which provide financial assistance (in the form of traineeships and fellowships) to residents who are participants in any such program, and who plan to specialize or work in the practice of general internal medicine or general pediatrics. “(b) There are authorized to be appropriated to carry out the provisions of this section $10,000,000 for the fiscal year ending September 30, 1977, $15,000,000 for the fiscal year ending September 30, 1978, $20,000,000 for the fiscal year ending September 30, 1979. and $25,000,000 for the fiscal year ending September 30, 1980. “occupational health training and education centers “Sec. 785. (a) (1) The Secretary shall, by grants, assist public or private nonprofit colleges or universities to establish, operate, and administer occupational health training and education centers through cooperative arrangements between schools of medicine and schools of public health (or other qualified departments or schools within such colleges or universities which are qualified to participate in carrying out activities set forth in this section). “(2) To be eligible for a grant under this section, the applicant must demonstrate to the Secretary that it has or will have available full-time faculty members with training and experience in the field of occupational health and support from other faculty members90 STAT. 2316 trained in the occupational health sciences and other relevant disciplines and medical and public health specialties and that it will substantially carry out occupational health training and education activities including, but not limited to— “(A) the establishment and operation of a new graduate training program or, where appropriate, the substantial expansion of an existing graduate training program in the field of occupational health; “(B) the development of curricula and operation of continuing education for physicians, nurses, industrial hygienists, and other professionals who practice full- or part-time in the field of occupational health in order to upgrade their proficiency in delivering such services; “(C) the establishment and operation of projects designed to increase admissions to and enrollment in occupational health programs of individuals who by virtue of their background and interests are likely to engage in the delivery of occupational health services; “(D) the establishment of traineeships for industrial hygiene students; “(E) the establishment and operation of medical residencies in the field of occupational health at a level of financial support comparable to that provided to individuals undergoing training in medical residencies in other medical specialties; “(F) the establishment and operation of traineeships in the field of occupational health for medical students, residents, nursing students, nurses, physicians, sanitarians, and students and professionals in related fields; “(G) the establishment and operation of short-term traineeships for continuing education in the field of occupational health for health professionals dealing with problems of occupational health; and “(H) the appointment of full-time staff for the center, who have training, experience and demonstrated capacity for leadership in the field of occupational health. “(b) To the extent feasible, the Secretary shall approve, at least 10 such centers and at least one of which shall be located in each region of the Department. “(c) For the purpose of making grants to carry out this section, there are authorized to be appropriated $5,000,000 for the fiscal year ending September 30, 1977, $5,000,000 for the fiscal year ending September 30, 1978, $8,000,000 for the fiscal year ending September 30, 1979, and $10,000,000 for the fiscal year ending September 30, 1980. “family medicine and general practice of dentistry “Sec. 786. (a) The Secretary may make grants to, or enter into contracts with, any public or nonprofit private hospital, school of medicine or osteopathy, or to or with a public or private nonprofit entity (which the Secretary has determined is capable of carrying out such grant or contract)— “(1) to plan, develop, and operate, or participate in, an approved professional training program (including a continuing education program or an approved residency or internship program) in the field of family medicine for medical and osteopathic students, interns (including interns in internships in osteopathic medicine), residents, or practicing physicians; 90 STAT. 2317 “(2) to provide financial assistance (in the form of traineeships and fellowships) to medical and osteopathic students, interns (including interns in internships in osteopathic medicine), residents, practicing physicians, or other medical personnel, who are in need thereof, who are participants in any such program, and who plan to specialize or work in the practice of family medicine; “(3) to plan, develop, and operate a program for the training of physicians who plan to teach in family medicine training programs; and “(4) to provide financial assistance (in the form of traineeships and fellowships) to physicians who are participants in any such program and who plan to teach in a family medicine training program. “(b) The Secretary may make grants to any public or nonprofit private school of dentistry or accredited postgraduate dental training institution— “(1) to plan, develop, and operate an approved residency program in the general practice of dentistry; and “(2) to provide financial assistance (in the form of traineeships and fellowships) to residents in such a program who are in need of financial assistance and who plan to specialize in the practice of general dentistry. “(c) Not loss than 10 percent of the amount appropriated in each fiscal year to make grants under this Section shall lie made available for grants under subsection (b). “(d) There are authorized to be appropriated to make grants under this section $45,000,000 for the fiscal year ending September 30, 1978, $45,000,000 for the fiscal year ending September 30, 1979, and $50,000,000 for the fiscal year ending September 30, 1980. “educational assistance to individuals from disadvantaged backgrounds “Sec. 787. (a) (1) For the purpose of assisting individuals from disadvantaged backgrounds, as determined in accordance with criteria prescribed by the Secretary, to undertake education to enter a health profession, the Secretary may make grants to and enter into contracts with schools of medicine, osteopathy, public health, dentistry, veterinary medicine, optometry, pharmacy, and podiatry and other public or private nonprofit health or educational entities to assist in meeting the costs described in paragraph (2). “(2) A grant or contract under paragraph (1) may be used by the health or educational entity to meet the cost of— “(A) identifying, recruiting, and selecting individuals from disadvantaged backgrounds, as so determined, for education and training in a health profession. “(B) facilitating the entry of such individuals into such a school, “(C) providing counseling or other services designed to assist such individuals to complete successfully their education at such a school, “(D) providing, for a period prior to the entry of such individuals into the regular course of education or such a school, preliminary education designed to assist them to complete successfully such regular course of education at such a school, or referring such individuals to institutions providing such preliminary education, and 90 STAT. 2318 “(E) publicizing existing sources of financial aid available to students in the education program of such a school or who are undertaking training necessary to qualify them to enroll in such a program. “(b) There are authorized to be appropriated $20,000,000 for the fiscal year ending September 30, 1978, $20,000,000 for the fiscal year ending September 30, 1979, and $20,000,000 for the fiscal year ending September 30, 1980, for payments under grants and contracts under subsection (a). “project grant authority for start-up assistance, financial distress interdisciplinary training, and curriculum development “Sec. 788. (a) (1) In the case of any new school of medicine, osteopathy, dentistry, public health, veterinary medicine, optometry, pharmacy, or podiatry which begins instruction after July 1, 1974, the Secretary may, after taking into account— “(A) the ability of such school to use a grant under this subsection 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 (5)). No school may receive a grant under this subsection unless the Secretary estimates that the number of full-time students enrolled in its first school 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: and “(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) A grant may not be made under this subsection unless an application for such grant is submitted to, and approved by, the Secretary. The Secretary shall give priority to applications which provide for projects which— “(A) assist in the planning, development, or initial operation of a new school of medicine, osteopathy, or dentistry (i) which will conduct exceptionally innovative programs for training students in ambulatory primary care in cooperation with accredited psychiatric practitioners or programs, as appropriate, or (ii) which will have as a major objective the provision of training opportunities for individuals from disadvantaged backgrounds; 90 STAT. 2319 “(B) assist in the planning, development, expansion, or initial operation of a regional health profession school granting a degree in one or more of the following professions: medicine, osteopathy, dentistry, veterinary medicine, optometry, podiatry, or public health; or “(C) the Secretary determines will meet a national or regional need for members of the profession to be trained in the new school for which the application is submitted. “(4) The Secretary shall give special consideration to each application of a school for a grant under this subsection— “(A) which application contains or is reasonably supported by assurances that, because of the use that the school will make of existing facilities (including Federal medical or dental facilities), such school will he able to accelerate the date on which it will begin its teaching program; “(B) which school will be located in a health manpower shortage area (designated under section 332); or “(C) which school is a school of medicine or osteopathy which will be located in a State which has no other such school. “(5) For purposes of this subsection, any school of medicine, osteopathy, dentistry, public health, veterinary medicine, optometry, pharmacy, or podiatry 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. “(b) (1) The Secretary may make grants to, and enter into contracts with, schools of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, podiatry, or public health for the purposes of assisting in— “(A) (i) meeting the costs of operation of any school of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, podiatry, and public health if they are in serious financial distress, or “(ii) meeting accreditation requirements, if they have a special need to be assisted in meeting such requirements, and “(B) carrying out appropriate operational, managerial, and financial reforms on the basis of information obtained in a comprehensive cost analysis study or on the basis of other relevant information. “(2) Any grant wider this subsection may be made upon such terms and conditions as the Secretary determines to be reasonable and necessary, including requirements that the school agree— “(A) 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. “(B) to conduct a comprehensive cost analysis study in cooperation with the Secretary, and “(C) to carry out appropriate operational, managerial, and financial reforms (as the Secretary may require), including the securing of increased financial support from State, or local governmental units or the increasing of tuition on the basis of information obtained in the course of a comprehensive, cost analysis study or on the basis of other relevant information. “(3) An application for a grant under this subsection 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, podiatry, or public health, as the case may be, during the fiscal year for90 STAT. 2320 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 training in the preceding two years. “(4) In the case of a school which has received a grant under this subsection in the immediately preceding fiscal year, the amount granted to that school under this subsection in any fiscal year may not exceed 75 percent of the amount granted to that school under this subsection in that immediately preceding fiscal year. “(5) The Secretary may provide to any school eligible for a grant under this subsection technical assistance to enable the school to conduct a comprehensive cost analysis study of its operations, to identify operational in efficiencies, and to develop or carry out appropriate operational, managerial, and financial re forms. “(6) The Secretary shall prepare and submit on or before September 30, 1978, a report, on the administration of this subsection. Such report shall give special emphasis to a description of the results of any comprehensive cost analysis study carried out under paragraph (2)(B) and any operational, managerial, and financial reforms instituted under paragraph (2)(C). “(c) The Secretary may make grants to any health profession, allied health profession, or nurse training institution, or to any other public or nonprofit private entity’ for the development of programs for cooperative interdisciplinary training among schools of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, podiatry, nursing, public health, and allied health, which emphasize— “(1) the use of the team approach to the delivery of health services, “(2) the training of physician assistants and nurse practitioners with physicians and expanded function dental auxiliaries with dentists, and “(3) the training of physicians, dentists, nurses, and other health professionals in the organization, management, and effective utilization of such assistants, practitioners, and auxiliaries. “(d) The Secretary may make grants to and enter into contracts with any health profession, allied health profession, or min e training institution, or any other public or nonprofit private entity for health manpower projects and programs such as— “(1) speech pathology, audiology, bioanalysis, and medical technology; “(2) establishing humanism in health care centers; “(3) biomedical combined educational programs; “(4) cooperative human behavior and psychiatry in medical and dental education and practice; “(5) bilingual health clinical training centers; “(6) curriculum development in schools of optometry, pharmacy and podiatry; “(7) social work in health care; “(8) health manpower development; “(9) environmental health education and preventive medicine; “(10) the special medical problems related to women; “(11) the development or expansion of regional health professions schools; “(12) training of citizens of the United States from foreign health professions schools to enable them to enroll in residency programs in the States; 90 STAT. 2321 “(13) psychology training programs; “(14) ethical implications of biomedical research; “(15) establishment of dietetic residencies; “(16) regional systems of continuing education; “(17) computer technology; “(18) training of professional standards review organization staff; “(19) training of health professionals in human nutrition and its application to health; “(20) health manpower development for the Trust Territories and incorporated Trust Territories of the United States; and “(21) training in the diagnosis, treatment, and prevention of the diseases and related medical and behavioral problems of the aged. “(e) (1) There are authorized to be appropriated to carry out the provisions of this section (other than the provisions of subsections (f) and (g)) $25,000,000 for the fiscal year ending September 30, 1978. $25,000,006 for the fiscal year ending September 30, 1979, and $25,000,000 for the fiscal year ending September 30, 1980. “(2) From the sums authorized to be appropriated under paragraph (1) not more than— “(A) $5,000,000 may be obligated or expended for the purposes of subsection (a), and “(B) $5,000,000 may be obligated or expended for the purposes of subsection (b). “(f) (1) The Secretary may make grants to any school of medicine to meet the planning costs for projects for the training of students, enrolled in the last two years of such school, in facilities— “(A) which are other than the principal teaching facilities of such school and which are existing Federal health care facilities or are other public or private health care facilities; and “(B) which are located in a health manpower shortage area (designated under section 332). No grant may be made under this paragraph with respect to any project unless before the fiscal year for which the grant is to be made the project has received at least $100,(100 from non-Federal sources and has been approved by the legislature of the State in which it is located. “(2) For payments under grants under paragraph (1), there are authorized to be appropriated $400,000 for the fiscal year ending September 30, 1977. “(g) (1) The Secretary may make grants to public and nonprofit private institutions of higher education and hospitals and other health care delivery facilities which are engaged in the development of new schools of medicine to assist such institutions and facilities in meeting the costs of employing faculty, acquiring equipment, and taking such other action related to the initial operation of a school of medicine as may be necessary for the proposed schools to meet the eligibility requirements for a grant under subsection (a) of this section. “(2) No application for a grant under paragraph (1) may be approved by the Secretary unless the application contains or is supported by assurances satisfactory to the Secretary that— “(A) with the assistance provided under the grant applied for the applicant will be able to accelerate the date on which the school of medicine being developed by the applicant will be able to begin its teaching program. “(B) there is a reasonable indication of non-Federal financial resources for development and operation of such school, and 90 STAT. 2322 “(C) the school of medicine will emphasize training programs in family medicine and will improve access to health care for residents of the geographical regions in which such training programs are located. The Secretary may not approve or disapprove an application submitted under this subsection unless he has consulted with the body recognized by the Commissioner of Education as the accrediting body for schools of medicine respecting approval of the application. “(3) No institution or facility may receive more than one grant under this subsection. For payment under grants under this subsection, there is authorized to be appropriated $1,500,000 for the fiscal year ending September 30, 1977 and $1,500,000 for the fiscal year ending September 30, 1978. “(4) Upon graduation of the second class from each school of medicine for which a grant was made under this subsection, the Secretary shall report to the Congress on the ability of t he school of medicine to improve access to health care for residents of the geographical regions in which the clinical training programs of the school are located.”. (b) Effective November 1, 1976. section 776 of the Public Health Service Act is redesignated as section 789 of such Act, and all references to such section in title XII of such Act are redesignated accordingly. (c) Effective October 1, 1976, part F of title VII is amended by adding after section 789 (redesignated by subsection (b)) the following new section: “general provisions “Sec. 790. Except as otherwise provided in this part: “(1) No grant may be made or contract entered into under this part 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. The Secretary may not approve or disapprove any application for a grant or contract under this part except after consultation with the National Advisory Council on Health Professions Education. “(2) Payments by recipients of grants or contracts under this part for (A) traineeships shall be limited to such amounts as the Secretary finds necessary to cover the cost of tuition and fees of, and stipends and allowances (including travel and subsistence expenses and dependency allowances) for the trainees; and (B) fellowships shall be limited to such amounts as the Secretary finds necessary to cover the cost of advanced study by, and stipends and allowances (including travel and subsistence expenses and dependency allowances) for, the fellows. “(3) The amount of any grant or contract under this part shall be determined by the Secretary. Contracts may be entered into under this part without regard to sections 3648 and 3709 of the Revised Statutes (31 U.S.C. 529; 41 U.S.C. 5).”.