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sources (other than this part) and non-Federal sources

so that the center will be able to continue to provide comprehensive mental health services when financial assistance provided under this part is reduced or terminated, as the case may be; .

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"(5) such community mental health center will make available a reasonable volume of services to per

sons unable to pay therefor; and

"(6) such community mental health center will adopt and enforce a policy (A) under which fees for the provision of mental health services through the center will be paid to the center, and (B) which prohibits

13 health professionals who provide such services to patients

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through the center from providing such services to such

patients except through the center.

"(b) The Secretary may approve an application for a 17 grant under section 203 or 204 if the application is recom18 mended for approval by the National Advisory Mental Health 19 Council and the application meets the requirements of sub 20 section (a) and the Secretary

"(1) determines that the facilities and equipment

of the applicant under the application meet such requirements as the Secretary may prescribe;

"(2) determines that the application contains or is

supported by satisfactory assurances that

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"(A) the comprehensive mental health services (in the case of an application for a grant under

section 203) or the consultation and education serv

ices (in the case of an application for a grant under

section 204) to be provided by the applicant will constitute an addition to, or a significant improvement in quality (as determined in accordance with criteria of the Secretary) of, services that would otherwise be provided in the catchment area of the applicant; and

"(B) Federal funds made available under section 203 or 204, as the case may be, will (i) bé used to supplement and, to the extent practical, increase the level of State, local, and other non-Federal funds, including third-party health insurance payments, that would in the absence of such Federal funds be made available for the applicant's comprehensive mental health services or consultation and education services, as the case may be, and (ii)

in no event supplant such State, local, and other non-Federal funds;

"(3) determines that the applicant's comprehensive

mental health services or consultation and education

services, as the case may be, are not inconsistent with the

mental health services portion of the State plan sub

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17.

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mitted under section 314 (d) of the Public Health Service Act by the State in which the applicant is located; "(4) in the case of an applicant which received

a grant for the preceding fiscal year, determines that during such preceding fiscal year the applicant met the requirements of section 201 and complied with the assurances which were contained in or supported the ap

plicant's application for its grant for the preceding fiscal year; and

"(5) in the case of an application for a grant the amount of which is to be determined under section 203 (c) (2) or 204 (b) (3) (B), determines that the ap

plication contains or is supported by assurances satis

factory to the Secretary that the services of the applicant will, to the extent feasible, be utilized by a signifi

cant number of persons residing in an area designated by

the Secretary as urban or rural poverty area and requiring such services.

"(c) In each fiscal year for which a community mental 20 health center receives a grant under section 203 or 204, 21 such center shall obligate for a program of continuing 22 evaluation of the effectiveness of its programs in serving the 23 needs of the residents of its catchment area and for a review 24 of the quality of the services provided by the center not less 25 than an amount equal to 2 per centum of the amount

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1 obligated by the center in the preceding fiscal year for its

2 operating expenses.

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"(d) The costs for which grants may be made under 4 section 203 or 204 shall be determined in the manner pre

5 scribed in regulations of the Secretary issued after consulta

6 tion with the National Advisory Mental Health Council.

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"GRANTS FOR INITIAL OPERATION OF CENTERS

"SEC. 203. (a) The Secretary may make grants to 9 public and nonprofit private community mental health cen10 ters to assist them in meeting their costs of operation during 11 the first five years (or eight years in the case of a community 12 mental health center providing services for persons residing 13 in an area designated by the Secretary as an urban or rural 14 poverty area) after their establishment.

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"(b) Each grant under this section to a community 16 mental health center shall be made for the costs of its opera17 tion for the one year period beginning on the first day of the 18 first month for which such grant is made. No center may 19 receive more than five grants under this section unless the 20 center provides services for persons residing in an area desig21 nated by the Secretary as an urban or rural poverty area, 22 in which case it may receive not more than eight such grants. "(c) (1) Except as provided in paragraph (2), the 24 amount of any grant made under this section for a community

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25 mental health center's costs of operation may not exceed 75

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1 per centum of such costs for the first year of the center's

2 operation, 60 per centum of such costs for the second year

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of its operation, 45 per centum of such costs for the third

4 year of its operation, 30 per centum of such costs for the 5 fourth year of its operation, and 15 per centum of such costs 6 for the fifth year of its operation.

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"(2) In the case of any grant under the section for

a community mental health center providing services for 9 persons in an area designated by the Secretary as an urban

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or rural poverty area, the amount of such grant for the 11 center's costs of operation may not exceed 90 per centum 12 of such costs for the first year of its operation, 80 per centum 13 of such costs for the second year of its operation, 70 per 14 centum of such costs for the third year of its operation, 60 per centum of such costs for the fourth year of its operation, 16 50 per centum of such costs for the fifth year of its operation, 17 40 per centum of such costs for the sixth year of its operation, of its opera

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30 per centum of such costs for the seventh year 19 tion, and 15 per centum of such costs for the eighth year

20 of its operation.

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"(d) No grant may be made under this section after

22 June 30, 1976, for the costs of operation of a community. 23 mental health center unless a grant was made under this 24 section before July 1, 1976, for such costs of such center.