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clude therein provisions to assure that (a) preference in employment on public works undertaken pursuant to the Act shall, insofar as practicable, be given to qualified local labor, (b) funds allocated under the Act shall be supplementary to other Federal funds which otherwise would have been expended in eligible areas as defined in the Act, and (c) appropriate State and local agencies shall direct requests for Federal assistance to the Federal agency administering the law authorizing such assistance. SEC. 3. Federal departments and agencies receiving allocations of funds appropriated pursuant to the Act shall make such regular reports and provide such other information to the Secretary of Commerce as he deems necessary in order to carry out his responsibilities under this order, and shall cooperate with the Secretary to assure that Federal funds are expended in accordance with the requirements of the Act and of the rules, regulations, and procedures prescribed pursuant to the Act. JOHN F. KENNEDY

§ 2643. Increase of State or local expenditures.

(a) No part of any allocation made by the President under this chapter shall be made available during any fiscal year to any State or local government for any public works project, unless the proposed or planned total expenditure (exclusive of Federal funds) of such State or local government during such fiscal year for all its capital improvement projects is increased by an amount approximately equal to the non-Federal funds required to be made available for such public works project.

(b) No part of any allocation made by the President under this chapter shall be made available for any planning or construction, directly or indirectly, of any school or other educational facility. (Pub. L. 87-658, § 4, Sept. 14, 1962, 76 Stat. 543.)

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2653.

(a) Determination and establishment or rea-
sonable value of care and treatment.
(b) Settlement, release and waiver of claims.
(c) Damages recoverable for personal injury
unaffected.

Limitation or repeal of other provisions for re-
covery of hospital and medical care costs.

§ 2651. Recovery by United States.

(a) Conditions; exceptions; persons liable; amount of recovery; subrogation; assignment.

In any case in which the United States is authorized or required by law to furnish hospital, medical, surgical, or dental care and treatment (including prostheses and medical appliances) to a person who is injured or suffers a disease, after the effective date of this Act, under circumstances creating a tort liability upon some third person (other than or in addition to the United States and except employers

of seamen treated under the provisions of section 249 of this title) to pay damages therefor, the United States shall have a right to recover from said third person the reasonable value of the care and treatment so furnished or to be furnished and shall, as to this right be subrogated to any right or claim that the injured or diseased person, his guardian, personal representative, estate, dependents, or survivors has against such third person to the extent of the reasonable value of the care and treatment so furnished or to be furnished. The head of the department or agency of the United States furnishing such care or treatment may also require the injured or diseased person, his guardian, personal representative, estate, dependents, or survivors, as appropriate, to assign his claim or cause of action against the third person to the extent of that right or claim.

(b) Enforcement procedure; intervention; joinder of parties; State or Federal court proceedings. The United States may, to enforce such right, (1) intervene or join in any action or proceeding brought by the injured or diseased person, his guardian, personal representative, estate, dependents, or survivors, against the third person who is liable for the injury or disease; or (2) if such action or proceeding is not commenced within six months after the first day in which care and treatment is furnished by the United States in connection with the injury or disease involved, institute and prosecute legal proceedings against the third person who is liable for the injury or disease, in a State or Federal court, either alone (in its own name or in the name of the injured person, his guardian, personal representative, estate, dependents, or survivors) or in conjunction with the injured or diseased person, his guardian, personal representative, estate, dependents, or survivors.

(c) Veterans' exception.

The provisions of this section shall not apply with respect to hospital, medical, surgical, or dental care and treatment (including prostheses and medical appliances) furnished by the Veterans' Administration to an elegible veteran for a service-connected disability under the provisions of chapter 17 of Title 38. (Pub. L. 87-693, § 1, Sept. 25, 1962, 76 Stat. 593.)

REFERENCES IN TEXT

Effective date of this Act, referred to in subsec. (a), as the first day of the fourth month following September, 1962, see effective date note under this section.

EFFECTIVE DATE

Section 4 of Pub. L. 87-693 provided that: "This Act [enacting this chapter] becomes effective on the first day of the fourth month following the month [September, 1962] in which enacted."

§ 2652. Regulations.

(a) Determination and establishment of reasonable value of care and treatment.

The President may prescribe regulations to carry out this chapter, including regulations with respect to the determination and establishment of the reasonable value of the hospital, medical, surgical, or dental care and treatment (including prostheses and medical appliances) furnished or to be furnished.

(b) Settlement, release and waiver of claims.

To the extent prescribed by regulations under subsection (a) of this section, the head of the department or agency of the United States concerned may (1) compromise, or settle and execute a release of, any claim which the United States has by virtue of the right established by section 2651 of this title; or (2) waive any such claim, in whole or in part, for the convenience of the Government, or if he determines that collection would result in undue hardship upon the person who suffered the injury or disease resulting in care or treatment described in section 2651 of this title.

(c) Damages recoverable for personal injury unaffected.

No action taken by the United States in connection with the rights afforded under this legislation shall operate to deny to the injured person the recovery for that portion of his damage not covered hereunder. (Pub. L. 87-693, § 2, Sept. 25, 1962, 76 Stat. 593.)

Ex. ORD. No. 11060. DELEGATION OF AUTHORITY TO
PRESCRIBE REGULATIONS

Ex. Ord. No. 11060, Nov. 7, 1962, 27 F.R. 10925, provided: Under and by virtue of the authority vested in me by Title 3 of the United States Code and by Section 2(a) of the Act of September 25, 1962 (Public Law 87-693) [subsec. (a) of this section], it is hereby ordered as follows:

SECTION 1. The Director of the Bureau of the Budget shall, for the purposes of the Act of September 25, 1962, [this chapter], from time to time, determine and establish rates that represent the reasonable value of hospital, medical, surgical, or dental care and treatment (including prostheses and medical appliances) furnished or to be furnished.

SEC. 2. Except as provided in Section 1 of this order, the Attorney General shall prescribe regulations to carry out the purposes of the Act of September 25, 1962 [this chapter].

JOHN F. KENNEDY

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2694.

2695. 2696.

State standards for variable Federal share of cost. Payments for construction.

(a) Installments; payments to applicants; withholding of payments; maximum amounts. (b) Amendment of application; revision of estimate.

Appeals; petitions; record; jurisdiction of courts of appeals; conclusiveness of findings; review by Supreme Court; stay of administrative action. Recovery of expenditures under certain conditions. State control of operations.

SUBCHAPTER I.-UNIVERSITY-AFFILIATED MENTAL RETARDATION FACILITIES

CROSS REFERENCES

Public Health Service mental retardation research facilities, see section 295 et seq. of this title.

§ 2661. Authorization of appropriations.

For the purpose of assisting in the construction of clinical facilities providing, as nearly as practicable, a full range of inpatient and outpatient services for the mentally retarded and facilities which will aid in demonstrating provision of specialized services for the diagnosis and treatment, education, training, or care of the mentally retarded or in the clinical training of physicians and other specialized personnel needed for research, diagnosis and treatment, education, training, or care of the mentally retarded, there are authorized to be appropriated $5,000,000 for the fiscal year ending June 30, 1964, $7,500,000 for the fiscal year ending June 30, 1965, and $10,000,000 each for the fiscal year ending June 30, 1966,

and the fiscal year ending June 30, 1967. The sums so appropriated shall be used for project grants for construction of public and other nonprofit facilities for the mentally retarded which are associated with a college or university. (Pub. L. 88-164, title I, § 121, Oct. 31, 1963, 77 Stat. 284.)

SHORT TITLE

Section 1 of Pub. L. 88-164 provided: "That this Act [enacting this chapter, sections 295-295e of this title and section 618 of Title 20, amending section 291k of this title and sections 611-613, 617, 676 of Title 20, and enacting provisions set out as notes under section 291k of this title and section 611 of Title 20] may be cited as the 'Mental Retardation Facilities and Community Mental Health Centers Construction Act of 1963'."

Section 100 of Pub. L. 88-164 provided that: "This title [enacting subchapters I and II of this chapter and sections 295-295e of this title] may be cited as the 'Mental Retardation Facilities Construction Act'."

§ 2662. Applications; approval by Secretary.

Applications for grants under this subchapter with respect to any facility may be approved by the Secretary only if the application contains or is supported by reasonable assurances that

(1) the facility will be associated, to the extent prescribed in regulations of the Secretary, with a college or university hospital (including affiliated hospitals), or with such other part of a college or university as the Secretary may find appropriate in the light of the purposes of this subchapter;

(2) the plans and specifications are in accord with regulations prescribed by the Secretary under section 2673 (3) of this title;

(3) title to the site for the project is or will be vested in one or more of the agencies or institutions filing the application or in a public or other nonprofit agency or institution which is to operate the facility;

(4) adequate financial support will be available for construction of the project and for its maintenance and operation when completed; and

(5) 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 Davis-Bacon Act, as amended; 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. 3176 and section 276c of Title 40.

(Pub. L. 88-164, title I, § 122, Oct. 31, 1963, 77 Stat. 284.)

REFERENCES IN TEXT

The Davis-Bacon Act, as amended, referred to in par. (5), is classified to sections 276a to 276a-5 of Title 40, Public Buildings, Property, and Works.

Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176), referred to in par. (5), is set out as a note under section 133z-15 of Title 5, Executive Departments and Government Officers and Employees.

§ 2663. Amount of grants. (a) Maximum payments.

The total of the grants with respect to any project for the construction of a facility under this subchapter may not exceed 75 per centum of the neces

sary cost of construction thereof as determined by the Secretary.

(b) Advances or reimbursement; installments; conditions.

Payments of grants under this subchapter shall be made in advance or by way of reimbursement, in such installments consistent with construction progress, and on such conditions as the Secretary may determine. (Pub. L. 88-164, title I, § 123, Oct. 31, 1963, 77 Stat. 285.)

§ 2664. Recovery of expenditures under certain conditions.

If any facility with respect to which funds have been paid under this subchapter shall, at any time within twenty years after the completion of construction

(1) be sold or transferred to any person, agency, or organization which is not qualified to file an application under this subchapter, or

(2) cease to be a public or other nonprofit facility for the mentally retarded, unless the Secretary determines, in accordance with regulations, that there is good cause for releasing the applicant or other owner from the obligation to continue such facility as a public or other nonprofit facility for the mentally retarded,

the United States shall be entitled to recover from either the transferor or the transferee (or, in the case of a facility which has ceased to be a public or other nonprofit facility for the mentally retarded, from the owners thereof) an amount bearing the same ratio to the then value (as determined by the agreement of the parties or by action brought in the district court of the United States for the district in which the facility is situated) of so much of the facility as constituted an approved project or projects, as the amount of the Federal participation bore to the cost of the construction of such project or projects. (Pub. L. 88-164, title I, § 124, Oct. 31, 1963, 77 Stat. 285.)

§ 2665. Nonduplication of grants.

No grant may be made after January 1, 1964, under any provision of the Public Health Service Act, for any of the four fiscal years in the period beginning July 1, 1963, and ending June 30, 1967, for construction of any facility for the mentally retarded described in this subchapter, unless the Secretary determines that funds are not available under this subchapter to make a grant for the construction of such facility. (Pub. L. 88-164, title I, § 125, Oct. 31, 1963, 77 Stat. 285.)

REFERENCES IN TEXT

The Public Health Service Act, referred to in the text, is classified to chapter 6A of this title. SUBCHAPTER II.-STATE MENTAL RETARDATION FACILITIES

§ 2671. Authorization of appropriations.

There are authorized to be appropriated, for grants for construction of public and other nonprofit facilities for the mentally retarded, $10,000,000 for the fiscal year ending June 30, 1965, $12,500,000 for the fiscal year ending June 30, 1966, $15,000,000 for the fiscal year ending June 30, 1967, and $30,000,000

for the fiscal year ending June 30, 1968. (Pub. L. 88-164, title I, § 131, Oct. 31, 1963, 77 Stat. 286.)

§ 2672. Allotments to States.

(a) Determination of amount; availability of unexpended funds.

For each fiscal year, the Secretary shall, in accordance with regulations, make allotments from the sums appropriated under section 2671 of this title to the several States on the basis of (1) the population, (2) the extent of the need for facilities for the mentally retarded, and (3) the financial need of the respective States; except that no such allotment to any State, other than the Virgin Islands, American Samoa, and Guam, for any fiscal year may be less than $100,000. Sums so allotted to a State for a fiscal year for construction and remaining unobligated at the end of such year shall remain available to such State for such purpose for the next fiscal year (and for such year only), in addition to the sums allotted, to such State for such next fiscal year.

(b) Transfers of allotments between States.

In accordance with regulations of the Secretary, any State may file with him a request that a specified portion of its allotment under this subchapter be added to the allotment of another State under this subchapter for the purpose of meeting a portion of the Federal share of the cost of a project for the construction of a facility for the mentally retarded in such other State. If it is found by the Secretary that construction of the facility with respect to which the request is made would meet needs of the State making the request and that use of the specified portion of such State's allotment, as requested by it, would assist in carrying out the purposes of this subchapter, such portion of such State's allotment shall be added to the allotment of the other State under this subchapter, to be used for the purpose referred to above.

(c) Adjustment of allotments to a State.

Upon the request of any State that a specified portion of its allotment under this subchapter be added to the allotment of such State under subchapter III of this chapter, and upon (1) the simultaneous certification to the Secretary by the State agency designated as provided in the State plan approved under this subchapter to the effect that it his afforded a reasonable opportunity to make applications for the portion so specified and there have been no approvable applications for such portion, or (2) a showing satisfactory to the Secretary that the need for the community mental health centers in such State is substantially greater than for the facilities for the mentally retarded, the Secretary shall, subject to such limitations as he may by regulations prescribe, promptly adjust the allotments of such State in accordance with such request and shall notify such State agency and the State agency designated under the State plan approved under subchapter III of this chapter, and thereafter the allotments as so adjusted shall be deemed the State's allotments for purposes of this subchapter and subchapter III of this chapter. (Pub. L. 88-164, title I, § 132, Oct. 31, 1963, 77 Stat. 286.)

§ 2673. General regulations.

Within six months after October 31, 1963, the Secretary shall, after consultation with the Federal Hospital Council (established by section 291k of this title and hereinafter in this subchapter referred to as the “council”), by general regulations applicable uniformly to all the States, prescribe

Adequacy of services.

(1) the kinds of services needed to provide adequate services for mentally retarded persons residing in a State;

Priority of projects.

(2) the general manner in which the State agency (designated as provided in the State plan approved under this subchapter) shall determine the priority of projects based on the relative need of different areas, giving special consideration to facilities which will provide comprehensive services for a particular community or communities; Standards of construction and equipment.

(3) general standards of construction and equipment for facilities of different classes and in different types of location; and

State plan.

(4) that the State plan shall provide for adequate facilities for the mentally retarded for persons residing in the State, and shall provide for adequate facilities for the mentally retarded to furnish needed services for persons unable to pay therefor. Such regulations may require that before approval of an application for a facility or addition to a facility is recommended by a State agency, assurance shall be received by the State from the applicant that there will be made available in such facility or addition a reasonable volume of services to persons unable to pay therefor, but an exception shall be made if such a requirement is not feasible from a financial viewpoint. (Pub. L. 88-164, title I, § 133, Oct. 31, 1963, 77 Stat. 287.)

§ 2674. State plans.

(a) Submission; requirements.

After such regulations have been issued, any State desiring to take advantage of this subchapter shall submit a State plan for carrying out its purposes. Such State plan must

(1) designate a single State agency as the sole agency for the administration of the plan, or designate such agency as the sole agency for supervising the administration of the plan;

(2) contain satisfactory evidence that the State agency designated in accordance with paragraph (1) hereof will have authority to carry out such plan in conformity with this subchapter;

(3) provide for the designation of a State advisory council which shall include representatives of State agencies concerned with planning, operation, or utilization of facilities for the mentally retarded and of nongovernment organizations or groups concerned with education, employment, rehabilitation, welfare, and health, and including representatives of consumers of the services provided by such facilities;

(4) set forth a program for construction of facilities for the mentally retarded (A) which is based on a statewide inventory of existing facilities and survey of need; (B) which conforms with the regulations prescribed under section 2673(1) of this title; and (C) which meets the requirements for furnishing needed services to persons unable to pay therefor, included in regulations prescribed under section 2673(4) of this title;

(5) set forth the relative need, determined in accordance with the regulations prescribed under section 2673 (2) of this title, for the several projects included in such programs, and provide for the construction, insofar as financial resources available therefor and for maintenance and operation make possible, in the order of such relative need;

(6) provide such methods of administration of the State plan, including methods relating to the establishment and maintenance of personnel standards on a merit basis (except that the Secretary shall exercise no authority with respect to the selection, tenure of office, or compensation of any individual employed in accordance wiith such methods), as are found by the Secretary to be necessary for the proper and efficient operation of the plan;

(7) provide minimum standards (to be fixed in the discretion of the State) for the maintenance and operation of facilities which receive Federal aid under this subchapter;

(8) provide for affording to every applicant for a construction project an opportunity for hearing before the State agency;

(9) provide that the State agency will make such reports in such form and containing such information as the Secretary may from time to time reasonably require, and will keep such records and afford such access thereto as the Secretary may find necessary to assure the correctness and verification of such reports; and

(10) provide that the State agency will from time to time, but not less often than annually, review its State plan and submit to the Secretary any modifications thereof which it considers

necessary.

(b) Approval by Secretary; notice and hearing prior to disapproval.

The Secretary shall approve any State plan and any modification thereof which complies with the provisions of subsection (a) of this section. The Secretary shall not finally disapprove a State plan except after reasonable notice and opportunity, for a hearing to the State. (Pub. L. 88-164, title I, § 134, Oct. 31, 1963, 77 Stat. 287.)

§ 2675. Projects for construction.

(a) Application; contents; approval by Secretary; hearing prior to disapproval.

For each project for construction pursuant to a State plan approved under this subchapter, there shall be submitted to the Secretary through the State agency an application by the State or a political subdivision thereof or by a public or other nonprofit agency. If two or more such agencies join in the construction of the project, the application 36-500 0 65-vol. 9- 40

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 therefor in accordance with the regulations prescribed by the Secretary under section 2673 (3) of this title;

(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 other nonprofit 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 Davis-Bacon Act, as amended; 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. 3176 and section 276c of Title 40; and

(6) a certification by the State agency of the Federal share for the project.

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 (A) that the application contains such reasonable assurance as to title, financial support, and payment of prevailing rates of wages and overtime pay; (B) that the plans and specifications are in accord with the regulations prescribed pursuant to section 2673 of this title; (C) that the application is in conformity with the State plan approved under section 2674 of this title and contains an assurance that in the operation of the facility there will be compliance with the applicable requirements of the State plan and of the regulations prescribed under section 2673 (4) of this title for furnishing needed facilities for persons unable to pay therefor, and with State standards for operation and maintenance; and (D) 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 regulations prescribed pursuant to section 2673 (2) of this title. No application shall be disapproved by the Secretary until he has afforded the State agency an opportunity for a hearing. (b) Amendment of application.

Amendment of any approved application shall be subject to approval in the same manner as an original application. (Pub. L. 88-164, title I, § 135, Oct. 31, 1963, 77 Stat. 288.)

REFERENCES IN TEXT

The Davis-Bacon Act, as amended, referred to in subsec. (a) (5), is classified to sections 276a to 276a-5 of Title 40, Public Buildings, Property, and Works.

Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176), referred to in subsec. (a) (5), is set out as a note under section 133z-15 of Title 5, Executive Departments and Government Officers and Employees.

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