Page:United States Statutes at Large Volume 95.djvu/952

 95 STAT. 926

Ante, p. 923.

PUBLIC LAW 97-35—AUG. 13, 1981 "(1) disclose any financial information or data necessary to determine the sources or causes of such school's financial distress; "(2) conduct a comprehensive cost analysis study in cooperation with the Secretary; and "(3) carry out appropriate operational, managerial, and financial reforms including the securing of increased financial support from non-Federal sources. "(c) No school may receive a grant under this section if such school has previously received support for three or more years under this section or under section 788(b) (as such section was in effect prior to October 1, 1981).". "ADVANCED FINANCIAL DISTRESS ASSISTANCE

42 USC 295g-8b.

"SEC. 788B. (a) The Secretary may enter into a multiyear contract with a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, podiatry, or pharmacy to provide financial assistance to such school to meet incurred or prospective costs of operation if the Secretary determines that payment of such costs is essential to remove the school from serious and long-standing financial instability. To be eligible for a contract under this section, a school must have Ante, p. 925. previously received financial support under section 788A or under Ante, p. 923. section 788(b) (as such section was in effect prior to October 1, 1981) for a period of not less than three years. "(b) No school may enter into a contract under this section unless— "(1) the school has submitted to the Secretary a plan providing for the school to achieve financial solvency within five years and has agreed to carry out such plan; "(2) such plan includes securing increased financial support from non-Federal sources; "(3) such plan has been reviewed by a panel selected by the Secretary and consisting of three experts in the field of financial management who are not directly affiliated with the school or the Federal Government; and "(4) the Secretary determines, after consultation with such panel, that such plan has a reasonable likelihood of achieving success. "(c) The panel described in subsection (b)(3) shall be appointed by the Secretary within thirty days after the date of receipt of the school's plan and shall be dissolved no later than forty-five days after the panel's recommendation has been transmitted to the Secretary. Members of the panel shall be entitled to receive the daily equivalent of the annual rate of basic pay in effect for grade GS-18 of the 5 USC 5332 note. General Schedule for each day (including traveltime) during which they perform duties. "(d) Any contract under this section may be entered into upon such terms and conditions as the Secretary determines to be reasonable and necessary, including requirements that the school agree to— "(1) disclose any financial information or data necessary to determine the sources or causes of such school's financial distress; "(2) conduct a comprehensive cost analysis study in cooperation with the Secretary; and "(3) carry out appropriate operational, managerial, and financial reforms including the securing of increased financial support from non-Federal sources.

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