19

1 000 for the fiscal year ending June 30, 1976, for grants

2 under section 204.

3

4

5

"PART B-FINANCIAL DISTRESS GRANTS

"GRANT AUTHORITY

"SEC. 211. The Secretary may make grants for the 6 operation of community mental health centers which received 7 grants under section 220 of this title as in effect before the 8 date of the enactment of the Community Mental Health 9 Centers Amendments of 1973 or a continuation of such sec10 tion 220 grant under section 204 of such Amendments, 11 which because of limitations respecting the period for which 12 grants under such section 204 may be made are not eligible 13 for additional continuation grants under that section, and 14 which demonstrate that without a grant under this section 15 there will be a significant reduction in the types or quality 16 of services provided or there will be an inability to provide 17 the services described in section 201 (b).

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"GRANT REQUIREMENTS

"SEC. 212. (a) Any grant under section 211 may be 20 made upon such terms and conditions as the Secretary deter21 mines to be reasonable and necessary, including require22 ments that the community mental health center agree (1) to disclose any financial information or data deemed by the 24 Secretary to be necessary to determine the sources or causes

23

25 of that center's financial distress, (2) to conduct a compre

20

1 hensive cost analysis study in cooperation with the Secre2 tary, and (3) to carry out appropriate operational and fi

3 nancial reforms on the basis of information obtained in the

4

course of the comprehensive cost analysis study or on the

5 basis of other relevant information.

6

"(b) An application for a grant under section 211 must 7 contain or be supported by the assurances prescribed by para8 graphs (1), (2), (3), (5), and (6) of section 202 (a) 9 and assurances satisfactory to the Secretary that the applicant 10 will expend, during the fiscal year for which such grant is 11 sought, an amount of funds (other than funds for construc12 tion, as determined by the Secretary) from non-Federal sources which is at least as great as the average amount of 14 funds expended by such applicant for such purpose (exclud15 ing expenditures of a nonrecurring nature) in the three fiscal 16 years immediately preceding the fiscal year for which such 17 grant is sought. The Secretary may not approve such an ap18 plication unless it has been recommended for approval by 19 the National Advisory Mental Health Council.

13

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"(c) The amount of any grant under this section shall 21 be determined by the Secretary, but (1) the first grant 22 under this section to any community mental health center 23 may not exceed 75 per centum of the amount of the last 24 grant which such center received under section 220 of this 25 title as in effect before the date of the enactment of the

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1 Community Mental Health Centers Amendments of 1973 or 2 if such center received a continuation grant under sec3 tion 204 of such Amendments, not more than 75 per 4 centum of the amount of the last grant made under that 5 section to such center, and (2) the amount of the second 6 and any subsequent grant under this section to such center 7 may not exceed 75 per centum of the amount of the last 8 grant made under this section to such center.

9

10

"AUTHORIZATION OF APPROPRIATIONS

"SEC. 213. There are authorized to be appropriated 11 $10,000,000 for the fiscal year ending June 30, 1975, and 12 $10,000,000 for the fiscal year ending June 30, 1976, for 13 grants under section 211.

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15

16

"PART C-FACILITIES ASSISTANCE

"ASSISTANCE AUTHORITY

"SEC. 221. (a) From allotments made under section

17 229 the Secretary shall pay, in accordance with this part, 18 the Federal share of projects for (1) the acquisition or re19 modeling, or both, of facilities for community mental health 20 centers, (2) the leasing (for not more than twenty-five 21 years) of facilities for such centers, (3) the construction of new facilities or expansion of existing facilities for commu23 nity mental health centers, the catchment areas of which 24 include (in whole or in part) areas designated by the Secre25 tary as urban or rural poverty areas, and (4) the initial

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22

1 equipment of a facility acquired, remodeled, leased, or con2 structed with financial assistance provided under payments 3 under this part. Payments shall not be made for the con4 struction of a new facility or the expansion of an existing one 5 unless the Secretary determines that it is not feasible for the 6 recipient to acquire or remodel an existing facility. 7 "(b) (1) For purposes of this part, the term 'Federal 8 share' with respect to any project means the portion of the 9 cost of such project to be paid by the Federal Government 10 under this part.

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"(2) The Federal share with respect to any project in 12 the State shall be the amount determined by the appropriate 13 State agency designated in the State plan of the State under 14 section 223, but, except as provided in paragraph (3), the 15 Federal share for any project may not exceed 66 per centum 16 of the costs of such project or the State's Federal percentage, 17 whichever is the lower. Prior to the approval of the first 18 such project in the State during any fiscal year, such State 19 agency shall give the Secretary written notification of the 20 maximum Federal share established pursuant to this para21 graph for such projects in such State to be approved by the 22 Secretary during such fiscal year and the method for deter23 mining the actual Federal share to be paid with respect to 24 such projects; and such maximum Federal share and such 25 method of determination for such projects in such State ap

23

1 proved during such fiscal year shall not be changed after the

2 approval of the first such project in the State during such

3 fiscal year.

4 "(3) In the case of any community mental health center 5 which provides or will, upon completion of the project for 6 which application has been made under this part, provide 7 services for persons in an area designated by the Secretary as 8 an urban or rural poverty area, the maximum Federal share 9 determined under paragraph (2) may not exceed 90 per 10 centum of the costs of the project.

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"(4) (A) For purposes of paragraph (2), the Federal 12 percentage for any State shall be 100 per centum less that 13 percentage which bears the same ratio to 50 per centum as 14 the per capita income of such State bears to the per capita in15 come of the United States, except that the Federal per16 centage for Puerto Rico, Guam, American Samoa, and the 17 Virgin Islands shall be 66 per centum.

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"(B) The Federal percentages shall be promulgated 19 by the Secretary between July 1 and September 30 of each 20 even-numbered year, on the basis of the average of the per 21 capita incomes of the States and of the United States for the 22 three most recent consecutive years for which satisfactory 23 data are available from the Department of Commerce. Such 24 promulgation shall be conclusive for each of the two fiscal 25 years in the period beginning July 1 next succeeding such

15