health authority shall submit to the Surgeon General:

(1)*

(2) Such additional information as the Surgeon General may require in order to show:

(i)* * * (iv) the amount of funds derived from public revenues of the State expended or estimated to be expended during the current calendar year and the 2 preceding calendar years to provide public and private nonprofit mental health services for the population of the State, sufficiently documented to enable the Surgeon General to determine that the amount expended or estimated to be expended by the State for such purposes during such current year has not declined or will not decline, either on a per capita basis or in proportion to the total amount expended in the State for such services from all sources, from the amount expended in either of such 2 preceding years. [For recipients of staffing grants under section 203(e) of the Act, paragraph (d)(2)(iv) has been superseded by section 206(c)(2)(B)(ii) of the Act, 42 U.S.C. 2689e(c)(2)(B)(ii).]

(f) The center shall be one which will serve a population of not less than 75,000 and not more than 200,000 persons, except that the Surgeon General may, in particular cases, permit modification of this population range if he finds that such modifications will not impair the effectiveness of the services to be provided.

§ 54.303 Eligible costs.

(a) Personnel covered. For purposes of section 220(a) of the Act and of this subpart, professional and technical personnel shall be those persons who participate in the provision of an element or elements of service in accordance with section 221(a)(3) of the Act and as set forth in § 54.302(b) and who are found by the Surgeon General to be appropriately qualified under the circumstances to occupy positions which require professional or special mental health training or experience.

(b) Allowable compensation. Federal funds may be granted under Part B of Title II of the Act, with respect to the costs of compensation of personnel of the types described in paragraph (a) of this section. For purposes of this subpart, "compensation" shall include remuneration for services, vacation, holiday and severance pay, sick leave, workmen's compensation and employee insurance, social security taxes and retirement plans costs, and such other benefits in return for service performed as the Surgeon General finds reasonably necessary to secure the services of qualified personnel in the area.

§ 54.305 Submittal of application.

(c) Assurance as to community service and nondiscrimination. (1) Each application for assistance under Part B of Title II of the Act shall contain the assurances required of the applicants under § 54.210 of Subpart C of this part relating to community service and services for persons unable to pay. Such assurances shall also contain a specific assurance that the applicant and affiliates will not refuse to provide any service to an individual solely for the reason that the individual is able to pay if an equivalent program of services is not otherwise available to the individual.

(2) Each application for assistance under Part B of Title II of the Act shall contain the assurances required of the applicants as provided in § 54.210 of Subpart C of this part relating to nondiscrimination. Such assurances shall also contain a specific assurance that in the selection, compensation, or other employment practices with respect to the technical or professional personnel referred to in § 54.303(a) there shall be no discrimination because of race, creed, color, sex, or national origin.

§ 54.305a Content of application-programs for the provision of drug abuse treatment and rehabilitation services.

(a) Information. Each application for a grant under section 220(a) of the Act (including applications for continuation support) for any fiscal year beginning after June 30, 1972, shall contain:

(1) Information sufficient to enable the Secretary to determine whether the need for a program of treatment and rehabilitation services for drug addicts and other persons with drug abuse and other drug dependence problems residing in the catchment area served by the applicant is of such magnitude, in the fiscal year for which grant support is requested, as to warrant the provision of such a program of services by the applicant for such fiscal year. Such information shall include:

(i) An estimate of the total population of the catchment area served by the applicant and an estimate of the number of drug addicts and drug abusers (classified by type of drug abused) in such catchment area, which shall be supported by relevant information obtained from local hospitals, medical personnel, law enforcement agencies, educational institutions, and citizen groups concerned with drug abuse problems;

(ii) Identification of existing Federal, State and local programs for the provisions of drug abuse treatment and rehabilitation services to residents of the catchment area served by the applicant and an estimate of

whether such programs are sufficient to meet the need for such services within the catchment area; and

(iii) Such information as may be available to the applicant with respect to planned Federal, State, and local programs for the provision of drug abuse treatment and rehabilitation services to residents of the catchment area, including a statement with respect to the developmental stage of any such plans, and a brief description of the nature and scope of each such program.

(2) Information sufficient to enable the Secretary to determine whether it is feasible, in the fiscal year for which grant support is requested, for the applicant to establish a program for the provision of drug abuse treatment and rehabilitation services to drug addicts and other persons with drug abuse and other drug dependence problems residing in the catchment area served by the applicant and whether it is feasible for the applicant to assist departments and agencies of the Federal Government in conducting treatment and rehabilitation programs for drug addicts and other persons with drug abuse and other drug dependence problems who are in the catchment area served by the applicant. Such information shall include:

(i) A description of the applicant's existing staff, equipment, facilities, and other resources and a plan for utilizing such existing resources for the provision of drug abuse treatment and rehabilitation services which shall take into account the continuing commitment of the applicant to provide comprehensive mental health services to all residents of the catchment area, the available resources of other agencies with which it has established, or could establish, agreements of affiliation, and the availability of other State and local resources;

(ii) An estimate of additional resources needed to bridge the gap, if any between available existing resources and the need for drug abuse treatment and rehabilitation services in the catchment area and, if existing resources are inadequate, a plan for obtaining additional resources including proposed or pending applications for Federal support, efforts to obtain additional State and local funding, efforts to secure third party reimbursement for services, and specific staff recruiting efforts; and

(iii) A description of any local conditions or other factors such as State and local laws or lack of resources which would affect the applicant's ability to establish or operate new programs, or expand existing programs for the provision of drug abuse treatment and rehabilitation services.

(b) Direct provision of services—(1) Conditional grant awards. A grant award under section 220(a) of the Act (including awards of continuation grant support) for any fiscal year beginning after June 30, 1972, shall be

subject to the condition that upon a determination by the Secretary, with respect to the fiscal year for which grant support is requested, (i) that the need for a treatment and rehabilitation program for drug addicts and other persons with drug abuse and other drug dependence problems residing in the catchment area served by the applicant is of such magnitude as to warrant the provision of such a program by the applicant and (ii) that it is feasible for the applicant to provide such a program, the applicant shall submit an assurance satisfactory to the Secretary that the applicant will provide such a program for the provision of drug abuse treatment and rehabilitation services during such fiscal year.

(2) Determination of need. The Secretary may determine that the need for a program of drug abuse treatment and rehabilitation services in the catchment area served by the applicant is of such magnitude as to warrant the provision of such a program by the applicant if he finds, on the basis of the information submitted pursuant to paragraph (a)(1) of this section, the State plan, if any, developed pursuant to section 409 of the Drug Abuse Office and Treatment Act of 1972 (21 U.S.C. 1176), and such other pertinent information, as may be available that: (i) The number of drug abusers in the catchment area served by the applicant is sufficiently large as to warrant the provision of a drug abuse treatment and rehabilitation program in such area;

(ii) Existing Federal, State, and local drug abuse treatment and rehabilitation programs do not adequately serve the population of drug abusers in the catchment area served by the applicant; and

(iii) There are no immediate prospects, within the fiscal year for which staffing grant support is sought, for the implementation of new drug abuse treatment and rehabilitation programs through resources other than those available to the application.

(3) Determination of feasibility. The Secretary may determine that it is feasible for the applicant to provide a treatment and rehabilitation program for drug addicts and other persons with drug abuse and other drug dependence problems residing in the catchment area served by the applicant if he finds, on the basis of the information submitted pursuant to paragraph (a)(2) of this section and such other pertinent information as may be available, that:

(i) Existing facilities, qualified staff, and other resources available to the applicant during the fiscal year in question, either directly or through affiliation agreements and contractual arrangements, are adequate and appropriate for the provision of drug abuse treatment and rehabilitation services, or that the applicant has reasonable prospects

for obtaining, during the fiscal year in question, such additional resources as may be necessary for the provision of such services.

(ii) The applicant's plan for a program for the provision of drug abuse treatment and rehabilitation services, submitted pursuant to paragraph (a)(2) of this section, does not jeopardize the applicant's continuing commitment to provide other mental health services to all residents of the catchment area; and

(iii) there are no local conditions which would have a significant adverse affect on implementation of the applicant's plan to provide drug abuse treatment and rehabilitation services.

(4) Assurance. Upon a determination of need and feasibility in accordance with paragraph (b) (2) and (3) of this section, the Secretary will provide a written notification to the applicant which will briefly state the basis for the Secretary's determinations of need and feasibility. The notification will be accompanied by a form for providing the required assurance. The applicant shall promptly execute the assurance and return it to the Secretary. An applicant shall be deemed to be in compliance with its assurance if it provides, in the fiscal year to which the assurance is applicable, those drug abuse treatment and rehabilitation services which the Secretary has determined to be feasible for such fiscal year.

(5) Continuation of obligation. A determination of need and feasibility by the Secretary with respect to the provision of drug abuse treatment and rehabilitation services for any fiscal year shall be presumed to continue to apply to an applicant's requests for support in subsequent fiscal years unless, on the basis of the information submitted by the applicant in its continuation grant application, the Secretary finds that:

(i) It is no longer necessary or feasible for the center to provide the program of drug abuse treatment and rehabilitation services which the Secretary determined to be needed and feasible in the preceding fiscal year; or

(ii) An expanded program of drug abuse treatment and rehabilitation services is needed in the catchment area served by the applicant and it is feasible for the applicant to expand its existing program.

(c) Assistance to Federal programs—(1) Conditional grant awards. A grant award under section 220(a) of the Act (including awards of continuation grant support) for any fiscal year beginning after June 30, 1972, shall be subject to the conditions that upon a determination by the Secretary that it is feasible for the applicant to assist the Federal Government in drug abuse treatment and rehabilitation programs for drug addicts and other persons with drug abuse and other drug dependence problems who are in the catchment area served by the ap

plicant, the applicant shall submit an assurance satisfactory to the Secretary that the applicant will, if requested, enter into agreements with departments or agencies of the Federal Government pursuant to which the applicant's facilities may be used, to the maximum extent practicable, in drug abuse treatment and rehabilitation programs, if any, provided by such departments or agencies.

(2) Determination of feasibility. The Secretary may determine that it is feasible for the applicant to assist the Federal Government in treatment and rehabilitation programs for drug addicts and other persons with drug abuse and other drug dependence problems who are in the catchment area served by the applicant if he finds, on the basis of the information submitted pursuant to paragraph (a)(2) of this section and such other pertinent information as may be available, that:

(i) Existing facilities, qualified staff, and other resources available to the applicant during the fiscal year in question, either directly or through affiliation agreements and contractual arrangements, are adequate and appropriate for assisting the Federal Government in such drug abuse treatment and rehabilitation programs as may be available for persons who are in the catchment area, or that the applicant has reasonable prospects for obtaining during the fiscal year in question, such additional resources as may be necessary for the provision of such assistance; and

(ii) Utilization of the applicant's existing or anticipated resources for assisting the Federal Government in such drug abuse treatment and rehabilitation programs as may be available for residents of the area would not necessitate curtailment of drug abuse treatment and rehabilitation services provided or to be provided directly by the applicant or curtailment of other mental health services provided or to be provided by the applicant.

(3) Assurance. Upon a determination that it is feasible for the applicant to assist the Federal Government in treatment and rehabilitation programs for drug addicts and other persons with drug abuse and other drug dependence problems in accordance with paragraph (c)(2) of this section the Secretary will provide a written notification to the applicant which will briefly state the bases for the Secretary's determination. The notification will be accompanied by a form for providing the required assurance. The applicant shall promptly execute the assurance and return it to the Secretary. The assurance imposes a continuing obligation upon the applicant not to refuse a request from an agency or department of the Federal Government to enter into an agreement under which the applicant's facilities

may be used, to the maximum extent practicable, in drug abuse treatment and rehabilitation programs provided by such departments or agencies for persons who are in the catchment area served by the applicant: Provided, however, That the Secretary may, upon a written request from the applicant which shall be supported by pertinent information, determine that it is not feasible for the applicant to comply with its assurance in a particular fiscal year or that it is not practicable for the applicant to enter into a specific agreement which has been proposed by a department or agency of the Federal Government.

[39 FR 13780, Apr. 17, 1974]

§ 54.307 Expenditures by applicant.

Any amounts received pursuant to an initial or other grant may be expended by the applicant for compensation of personnel as provided in § 54.303 throughout both the initial grant period and any subsequent grant period with respect to which a request for assistance is approved by the Surgeon General.

§ 54.308 Records, audits and reports.

The applicant shall keep such records as the Surgeon General shall prescribe and as are required by section 408(a) of the Act, and shall make any books, documents, papers, and records of the applicant that are pertinent to assistance under the Act available for audit and examination by representatives of the Surgeon General and the Comptroller General of the United States as required by section 408(b) of the Act. The applicant shall also submit such reports or other information as the Surgeon General may find necessary in administering the provisions of this subpart. [For recipients of staffing grants under section 203(e) of the Community Mental Health Centers Act, this section has been superseded by section 240 of the Act, 42 U.S.C. 2689w, which continues essentially the same requirements as those of section 408 of the Mental Retardation Facilities and Community Mental Health Centers Construction Act of 1963 as it was in effect prior to the Amendments of 1975 (Title III of Pub. L. 94-63).]

§ 54.309 Applicability of 45 CFR Part 74.

The provisions of 45 CFR Part 74, establishing uniform administrative requirements and cost principles, shall apply to all grants under this subpart to State and local governments as those terms are defined in Subpart A of that Part 74. The relevant provisions of the following subparts of Part 74 shall also apply to grants to all other grantee organizations under this subpart:

54a.507 Expenditure of grant funds.
54a.508-54a.509 [Reserved]
54a.510 Additional conditions.

AUTHORITY: Sec. 504, 90 Stat. 1035 (42 U.S.C. 4588).

EFFECTIVE DATE NOTE: At 46 FR 48593, Oct. 1, 1981, the authority for Part 54a was amended to read as set forth above, effective Oct. 1, 1982. For the convenience of the user, the superseded authority, in effect until Oct. 1, 1982, appears below

AUTHORITY: Sec. 504, 90 Stat. 1035 (42 U.S.C. 4588); sec. 1743 of Pub. L. 97-35, 95 Stat. 763 (31 U.S.C. 1243 note).

SOURCE: 43 FR 40391, Sept. 11, 1978, unless otherwise noted.

Subpart A-General

EFFECTIVE DATE NOTE: At 46 FR 48593, Oct. 1, 1981, Subpart A (§§ 54a.101-54a.107) was removed, effective Oct. 1, 1982.

§ 54a.101 Applicability.

This subpart applies to: (a) Formula and special grants to assist States, respectively, in the development of more effective alcohol abuse and alcoholism prevention, treatment, and rehabilitation programs, and in implementing the Uniform Alcoholism and Intoxication Treatment Act as those grants are authorized to be continued during fiscal year 1982 by section 1743 of the Omnibus Reconciliation Act of 1981; (b) grants for alcohol abuse and alcoholism prevention and treatment projects as authorized to be continued during fiscal year 1982 by section 1743

(a) "Act" means the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation Act of 1970, as amended (42 U.S.C. 4541, et seq.).

(b) "Council" means the National Advisory Council on Alcohol Abuse and Alcoholism established pursuant to section 217 of the Public Health Service Act (42 U.S.C. 218).

(c) "Nonprofit" as applied to a private entity means that no part of the net earnings of such entity inures or may lawfully inure to the benefit of any shareholder or individual.

(d)-(e) [Reserved]

(f) "Secretary" means the Secretary of Health and Human Services and any other officer or employee of the Department of Health and Human Services to whom the authority involved may be delegated.

(g) "State" means the 50 States, the District of Columbia, the Virgin Islands, the Commonwealth of Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Northern Mariana Islands.

[43 FR 40391, Sept. 11, 1978, as amended at 45 FR 31094, May 12, 1980]

§ 54a.107 Other HHS regulations that apply.

Other HHS regulations which apply to grants under this part include, but are not limited to:

42 CFR Part 2-Confidentiality of alcohol and drug abuse patient records

45 CFR Part 15-Relocation assistance and real property acquisition policies

45 CFR Part 16-HHS grant appeals proc

ess

45 CFR Part 46-Protection of human subjects

42 CFR Part 50-PHS grant appeals proc

ess

45 CFR Part 74-Administration of grants