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127

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quent year for which a center receives such a grant, the

sum of (i) an amount equal to the product of $0.25 and the population of the center's catchment area, and (ii)

the lesser of (I) the amount determined under clause (i) of this subparagraph, or (II) one-fourth of the

amount received by the center in such year from charges

for the provision for such services if the amount of the

last grant received by the center under section 220 of this title (as in effect before the date of the enactment of the Community Mental Health Amendments of 1975) or section 203 of this title, as the case may be, was determined on the basis of the center providing serv

ices to persons in an area designated by the Secretary as an urban or rural poverty area.

15 For purposes of this subsection, the term 'center' includes an

16 entity which receives a grant under subsection (a) (2).

17

"(c) There are authorized to be appropriated for pay18 ments under grants under this section $4,000,000 for the 19 fiscal year ending June 30, 1975, and $9,000,000 for the 20 fiscal year ending June 30, 1976.

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"CONVERSION GRANTS

"SEC. 205. (a) The Secretary may make not more than

23 two grants to any public or nonprofit entity which—

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25

"(1) has an approved application for a grant under section 203 or 211, and

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"(2) can reasonably be expected to have an operating deficit, for the period for which a grant is or will be

made under such application, which is greater than the

4

amount of the grant the entity is receiving or will receive under such application,

5

6 for the entity's reasonable costs in providing mental health 7 services which are described in section 201 (b) (1) but 8 which the entity did not provide before the date of the enact9 ment of the Community Mental Health Centers Amendments 10 of 1975. For purposes of this section, the term 'projected 11 operating deficit' with respect to an entity described in the 12 preceding sentence means the excess of its projected costs 13 of operation (including the costs of operation related to the 14 provision of services for which a grant may be made under 15 this subsection) for a particular period over the total of the 16 amount of State, local, and other funds (including funds 17 under a grant under section 203, 204, or 211) received by 18 the entity in that period and the fees, premiums, and third19 party reimbursements to be collected by the entity during 20 that period.

21

"(b) (1) Each grant under subsection (a) to an entity 22 shall be made for the same period as the period for which 23 the grant under section 203 or 211 for which the entity had 24 an approved application is or will be made.

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"(2). The amount of any grant under subsection (a) to

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1 any entity shall be determined by the Secretary, but no such 2 grant may exceed that part of the entity's projected operating 3 deficit for the year for which the grant is made which is 4 reasonably attributable to its costs of providing in such year 5 the services with respect to which the grant is made. 6 "(c) There are authorized to be appropriated for pay7 ments under grants under subsection (a) $20,000,000 for 8 the fiscal year ending June 30, 1975, and $20,000,000 for 9 the fiscal year ending June 30, 1976.

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"GENERAL PROVISIONS RESPECTING GRANTS UNDER

THIS PART

"SEC. 206. (a) (1) No grant may be made under this

13 part to any entity or community mental health center in any 14 State unless a State plan for the provision of comprehensive 15 mental health services within such State has been submitted 16 to, and approved by, the Secretary under section 237. "(b) No grant may be made under this part unless

17

"(1) an application (meeting the requirements of subsection (c)) for such grant has been submitted to, and approved by, the Secretary; and

"(2) the proposed use of grant funds in any area under the jurisdiction of a State or area health planning agency established under the Public Health Service Act has been reveiwed to the extent provided by law by such agencies to determine whether such use is

34

1 consistent with any plans which such agencies have

developed for such area, and with respect to

"(A) the need for a community mental health center in such area;

"(B) the definition of the catchment area to be served, which shall be determined after consideration of any such area previously designated;

"(C) the need for the services to be offered;

"(D) in the case of an applicant described in section 203 (a) (1) (B), the applicant's plans for developing comprehensive mental health services;

"(E) the adequacy of the resources of the applicant for the direct provision of mental health services and the adequacy of agreements with the

.applicant for the indirect provision of such services;

"(F) the adequacy of the applicant's arrangements for the appropriate use of and integration with existing health delivery services and facilities to assure optimum utilization of and nonduplication of such services and facilities and to assure continuity of patient care, including arrangements of the applicant with health maintenance organizations and community health centers serving individuals who

reside in or are employed in the area served by the applicant for the provision by the applicant of mental

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health services for the members and patients of

such organizations and centers;

"(G) the adequacy of arrangements of the applicant for the coordination of its services with those

of other health and social service agencies includ

ing, where appropriate, exchange of staff resources; and

"(H) any other factor which the State or area health planning agency determines to be significant for purposes of planning and coordination of health

services for the area within the jurisdiction of such planning agency.

"(c) (1) An application for a grant under this part

14 shall be submitted in such form and manner as the Secre15 tary shall prescribe and shall contain such information as 16 the Secretary may require. Except as provided in paragraph 17 (3), an application for a grant under section 203, 204, or 205 shall contain or be supported by assurances satisfactory to the Secretary that

18

19

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"(A) the community mental health center for which the application is submitted will provide, in accordance with regulations of the Secretary (i) an overall plan and budget that meets the requirements of section 1861 (z) of the Social Security Act, and (ii)

an effective procedure for developing, compiling, eval