formance of routine staffing and planning functions.

§ 122.112 Subarea advisory councils.

(a) A health systems agency may establish subarea advisory councils representing parts of the agency's health service area to advise the agency on the performance of its functions. The composition of such council must conform to the requirements of section 1512(b) (3) (C) of the Act as applied to that part of the agency's health service area which the subarea advisory council represents.

(b) Consistent with the provisions of § 122.111 (c) of this subpart, a health systems agency may make financial and other resources available to the subarea advisory council to assist it in performing agreed upon activities which the agency has requested such council to perform. Such activities may include making recommendations to the agency (1) to assist it in obtaining local or regional advice on the performance of its functions, (2) with regard to proposed membership on the governing body and advisory groups and (3) with regard to planning needs for the local area.

§ 122.113 Private funds, services, or facilities.

systems agency

(a) No health (whether conditionally or fully designated) may accept any funds or contributions of services or facilities from any individual or private entity which has a financial, fiduciary, or other direct interest in the development, expansion, or support of health resources, unless in the case of an entity, it is an organization described in section 509(a) of the Internal Revenue Code of 1954 and is not directly engaged in the provision of health care in the health service area of the agency. The prohibition of this section includes contributions of cash, bonds and other securities, services, property, or equipment as well as payments made to the agency under contracts, grants, or loans; Provided, That service on a governing body, executive committee, subcommittee, subarea advisory council or advisory group shall not be deemed to be a contribution of services.

(b) For purposes of this section, an individual or private entity which has a financial, fiduciary, or other direct interest in the development, expansion or support of health resources includes but is not limited to:

(1) With respect to any individual, one who

(i) Is a provider of health care as defined in § 122.1(o) of this part;

(ii) Is an employee of any entity described in paragraph (2) of this section;

or

(iii) Holds a fiduciary position or has a fiduciary interest as defined in § 122.1 (o) of this part in any entity described in paragraph (2) of this section.

(2) With respect to any private entity: (i) Entities and organizations and associations composed of entities engaged in the provision of health care, including hospitals, long-term care facilities, and health maintenance organizations) and organizations and associations of such institutions; Provided, That an entity will not be considered a health care institution for purposes of this section solely on the basis of providing (directly or indirectly) health care for its employees;

(ii) Entities and organizations and associations of entities engaged in research into the provision of health care;

(iii) Health professions schools and organizations and associations of such schools;

(iv) Health professions professional societies;

(v) Entities and organizations and associations of entities engaged in issuing any policy or contract of individual or group health insurance or hospital or medical services benefits and associations and organizations of health care insurers;

(vi) Providers of ancillary medical services (including laboratory services, manufacture or sale of medical devices and equipment, and pharmaceutical services);

(vii) Allied health professions training programs;

(viii) Entities producing drugs for individuals or entities for use in the provision of health care or research into or instruction in the provision of health care; and

(ix) Entities which are in a position with respect to the entities listed in this paragraph affected with the character of a trust, including trustees, boards of directors and majority shareholders.

Provided, That private entities which would be included within this paragraph shall not be included if such contribution

(a) Each agency shall adopt a policy for making its records and data available to the public for inspection and copying in accordance with section 1512(b) (3) (B) of the Act, which shall include a procedure for the submission of requests to the agency by members of the public, the agency's procedure for handling such requests, and a uniform fee schedule for copying such material which shall be limited to reasonable costs. For purposes of this section, "records and data" includes publications, brochures, pamphlets, punch cards, magnetic tapes, minutes, staff manuals, slides, photographs, or other documentary materials, regardless of physical form or characteristics, made or received by the agency in connection with the performance of the agency's functions under its designation agreement and retained by the agency as evidence of the agency's functions, policies, decisions, procedures, operations, programs, or other activities.

(b) Each agency is required to maintain and make available for public inspection and copying an index of the records and data of the agency and must publish within 3 months of the effective date of its designation agreement, in at least two newspapers of general circulation throughout its health service area, a notice setting forth the policy adopted pursuant to paragraph (a) of this section. § 122.115 Annual report.

(a) Each agency shall issue an annual report concerning the activities of the agency which shall include:

(1) the HSP and AIP developed by the agency pursuant to section 1513 (b) (2) and (3) of the Act and this subpart, either in their entirety or by incorporation by reference. Where such plans are included by incorporation by reference, the report shall include a summary of the HSP and AIP and a statement of where copies of the HEP and AIP and supporting documentation may be obtained by interested persons;

(2) a detailed description of the agency's progress in meeting the objectives of its work program during the past year;

(3) a list of the agency's income, expenses, assets, and liabilities including a list of all contributors to the agency; and

(4) a list of the members of the agency's governing body, executive committee, if any, and staff.

(b) Such report shall be made available at no cost upon request to the residents of the health service area served by the agency and shall be distributed to all public libraries throughout the health service area, to the State Agency for each State in which the agency's health service area is located, and to all newspapers, radio stations and television stations serving the population of the health service area. Notice of the availability of the annual report shall appear in at least two newspapers of general circulation throughout the health service area.

Subpart C-Grants to Health Systems
Agencies

§ 122.201 Applicability.

The regulations of this subpart are applicable to grants under section 1516 of the Public Health Service Act (42 U.S.C. 3007-5) to health systems agencies designated under section 1515 of the Public Health Service Act (42 U.S.C. 300Z-4) tɔ assist in meeting the cost of compensation for health systems agency personnel, collection of data, planning, and the performance of the functions of the health systems agency.

§ 122.202 Eligibility.

Any conditionally or fully designated health systems agency is eligible for a grant under this subpart.

§ 122.203 Application.

(a) An application for a grant under this subpart shall be submitted to the Secretary at such time and in such form and manner as the Secretary may prescribe and shall be executed by an individual authorized to act for the applicant and to assume on behalf of the applicant the obligations imposed by the Act, the regulations of this subpart, and any additional terms or conditions of the grant.1 A copy of such application shall at that time also be submitted to the SHCC, if any, for each State in which

the agency's health service area is located.

(b) The application shall contain the following:

(1) A detailed budget for the grant period;

(2) A statement and justification of the amount of grant funds requested; and

(3) Where the applicant is requesting an increased amount of grant funds pursuant to section 1516(b) (2) of the Act and § 122.204 of this subpart based on its assurance of providing non-Federal funds to be expended or obligated during the grant period, the application shall also contain:

(i) A total dollar figure of the amount of non-Federal funds meeting the requirements of § 122.206 of this subpart that the applicant assures will be expended or obligated during the grant period for the purposes for which funds awarded under this subpart may be expended or obligated, and

(ii) A statement of the dollar figure of the amount of non-Federal funds which the applicant has currently available and a detailed timetable for the applicant's receipt of the remainder of the funds assured, including documentary evidence concerning the sources and amounts of the proposed contributions, such as letters of intent to contribute specific amounts of funds.

§ 122.204 Grant award.

(a) The Secretary will after considering any recommendations made by the SHCC, if any, for each State in which the agency's health service area is located award a grant under this subpart to each health systems agency whose application meets the applicable requirements of the Act and this subpart.

(b) The amount of any grant under this subpart shall be:

(1) With respect to grants made in a fiscal year in which all agencies are conditionally designated, an amount determined by the Secretary in accordance with the formula set forth in section 1516 (b) (1) and (2) of the Act, except that no such grant may be less than $145,000 where the population of the agency's health service area is 350,000 or less; $160,000 where the population of the health service area is more than 350,000 and less than 500,000; and $175,000 where the population of the agency's

health service area is 500,000 or more; Provided, That where the total of the amounts so computed exceeds the total amount appropriated for such grants in such fiscal year, the amount of the grant to each conditionally designated agency shall be an amount which bears the same ratio to the amount so computed for that agency for that fiscal year as the total of the amounts appropriated for such grants for such fiscal year bears to the total of the amounts so computed, except that the amount of any grant to such agency shall not be less than $145,000 where the population of the agency's health service area is 350,000 or less; $160,000 where the population of the health service area is more than 350,000 and less than 500,000; and $175,000 where the population of the agency's health service area is 500,000 or more; and Provided further, That no grant to a health systems agency under this subparagraph will exceed the amount requested by such agency.

(2) With respect to grants made in a fiscal year in which some of the agencies are fully designated health systems agencies, an amount determined by the Secretary in accordance with the formula set forth in section 1516(b) (1) and (2) of the Act; except that no such grant may be less than (i) with respect to fully designated health systems agencies, $175,000 or (ii) with respect to conditionally designated health systems agencies $145,000 where the population of the agency' health service area is 350,000 or less; $160,000 where the population of the agency's health service area is more than 350,000 and less than 500,000; and $175,000 where the population of the agency's health service area is 500,000 or more; Provided, That if the total of the amounts so computed for any fiscal year exceeds the total of the amounts appropriated for such grants in such year, the amount of the grant for that fiscal year to each agency shall be an amount which bears the same ratio to the amount so computed for that agency for that fiscal year as the total of the amounts appropriated for such grants for such fiscal year bears to the total of the amount so computed, except that the amount of any grant to a fully designated health systems agency for any fiscal year shall not be less than $175,000, unless the amount appropriated for that fiscal year is less than the

(c) Funds granted pursuant to this subpart shall be available for obligation during the period of an agency's designation agreement current at the time of the grant award.

§ 122.209 Nondiscrimination.

(a) Attention is called to the requirements of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. 2000d et seq.) and in particular section 601 of such Act which provides that no person in the United States shall on the grounds of race, color, or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. A regulation implementing such Title VI, which is applicable to grants made under this subpart, has been issued by the Secretary with the approval of the President (45 CFR Part 80). Nor shall any person be denied employment in or by such program or activity so receiving Federal financial assistance on the ground of sex, age, creed, or marital status.

(b) Attention is called to the requirements of section 504 of the Rehabilitation Act of 1973, as amended, which provides that no otherwise qualified handicapped individual in the United States shall, solely by reason of his handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.

(c) Grant funds used for alteration or renovation shall be subject to the condition that the grantee shall comply with the requirement of Executive Order 11246, 30 FR 12319 (September 24, 1965), as amended, and the applicable rules, regulations, and procedures prescribed pursuant thereto.

[41 FR 12833, Mar. 26, 1976; 41 FR 23386, June 10, 1976]

§ 122.210 Publications and copyright.

(a) Local governments. Where the grantee is a local government as defined in 45 CFR 74.3, the Department of Health, Education, and Welfare copyright requirement set forth in 45 CFR 74.140 shall apply with respect to any book or other copyrightable material developed or resulting from the activity supported by a grant under this subpart. (b) Grantees other than local governments. Where the grantee is not a local

government as so defined, except as may otherwise be provided under the terms and conditions of the award, the grantee may copyright without prior approval any publications, films or similar materials developed or resulting from an activity supported by a grant under this subpart, subject, however, to a royaltyfree, nonexclusive, and irrevocable license in the Department to reproduce, publish, or otherwise use, and to authorize others to use the work for government purposes.

§ 122.211

Grantee accountability.

(a) Accounting for grant award payments. All payments made by the Secretary shall be recorded by the grantee in accounting records separate from the records of all other grant funds, including funds derived from other grant awards. With respect to each approved project the grantee shall account for the sum total of all amounts paid by presenting or otherwise making available evidence satisfactory to the Secretary of expenditures for costs meeting the requirements of this subpart.

(b) Accounting for non-Federal funds. Where a health systems agency has received an increased amount of grant funds based on its assurance of expenditure of non-Federal funds, the agency shall account for the sum total of the amount so assured by presenting or otherwise making available evidence satisfactory to the Secretary of expenditures in such amount during the grant period for costs meeting the requirements of this subpart.

(c) Accounting for royalties. Royalties received by grantees from copyrights on publications or other works developed under the grant, or from patents or inventions conceived or first actually reduced to practice in the course of or under such grant, shall be accounted for as follows:

(1) Local governments. Where the grantee is a local government as defined in Subpart A or 45 CFR Part 74, royalties shall be accounted for as provided in 45 CFR 74.44.

(2) Grantee other than local governments. Where the grantee is not a local government as so defined royalties shall be accounted for as follows:

(i) Patent royalties, whether receivcd during or after the grant period, shall be governed by agreements between the Assistant Secretary for Health, Department of Health, Education, and Welfare,