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assurances that the area wide health planning agency has made provision for assisting health care facilities in its area to develop a program for capital expenditures for replacement, modernization, and expansion which is consistent with an overall State plan which will meet the needs of the State and the area for health care facilities, equipment, and services without duplication and otherwise in the most efficient and economical manner.

PROJECT GRANTS FOR TRAINING, STUDIES, AND

DEMONSTRATIONS

(c) The Secretary is also authorized, during the period beginning July 1, 1966, and ending June 30, 1973, to make grants to any public or nonprofit private agency, institution, or other organization to cover all or any part of the cost of projects for training, studies, or demonstrations looking toward the development of improved or more effective comprehensive health planning throughout the Nation. For the purposes of carrying out this subsection, there are hereby authorized to be appropriated $1,500,000 for the fiscal year ending June 30, 1967, $2,500,000 for the fiscal year ending June 30, 1968, $5,000,000 for the fiscal year ending June 30, 1969, $7,500,000 for the fiscal year ending June 30, 1970, $8,000,000 for the fiscal year ending June 30, 1971, $10,000,000 for the fiscal year ending June 30, 1972, and $12,000,000 for the fiscal year ending June 30, 1973.

GRANTS FOR COMPREHENSIVE PUBLIC HEALTH SERVICES

(d) (1) 34a AUTHORIZATION OF APPROPRIATIONS.-There are authorized to be appropriated $70,000,000 for the fiscal year ending June 30, 1968, $90,000,000 for the fiscal year ending June 30, 1969, $100,000,000 for the fiscal year ending June 30, 1970, $130,000,000 for the fiscal year ending June 30, 1971, $145,000,000 for the fiscal year ending June 30, 1972, and $165,000,000 for the fiscal year ending June 30, 1973, to enable the Secretary to make grants to State health or mental health authorities to assist the States in establishing and maintaining adequate public health services, including the training of personnel for State and local health work. The sums so appropriated shall be used for making payments to States which have submitted, and had approved by the Secretary, State plans for provision of public health services.

4 Subsec. 314 (c) amended by subsec. 2(b)(2) of P.L. 90-174, and further amended by sec. 240 of P.L. 91-515.

Subsec. 314(d) amended by subsec. 2(d) (1) (a) of P.L. 90-174. Effective with respect to appropriations for fiscal years beginning after 6/30/70, sec. 314(d) (1) amended by sec. 401(b) (1) (C) of P.L. 91-296, and further amended by subsec. 250(a) of P.L. 91-515.

(2) STATE PLANS FOR PROVISION OF PUBLIC HEALTH SERVICES.-In order to be approved under this subsection, a State plan for provision of public health services

must

(A) provide for administration or supervision of administration by the State health authority or, with respect to mental health services, the State mental health authority;

(B) set forth the policies and procedures to be followed in the expenditure of the funds paid under this subsection;

(C) 35 contain or be supported by assurances satisfactory to the Secretary that (i) the funds paid to the State under this subsection will be used to make a significant contribution toward providing and strengthening public health services in the various political subdivisions in order to improve the health of the people; (ii) such funds will be made available to other public or nonprofit private agencies, institutions, and organizations, in accordance with criteria which the Secretary determines are designed to secure maximum participation of local, regional, or metropolitan agencies and groups in the provision of such services; (iii) such funds will be used to supplement and, to the extent practical, to increase the level of funds that would otherwise be made available for the purposes for which the Federal funds are provided and not to supplant such non-Federal funds; and (iv) the plan is compatible with the total health program of the State;

(D) provide for the furnishing of public health services under the State plan in accordance with such plans as have been developed pursuant to subsection (a);

(E) provide that public health services furnished under the plan will be in accordance with standards prescribed by regulations, including standards as to the scope and quality of such services;

(F) 35a provide such methods of administration (including methods relating to the establishment and maintenance of personnel standards on a merit basis, except that the Secretary shall exercise no authority with respect to the selection, tenure of office, and compensation of any individual employed in accordance with such methods) as are found by the Secretary to be necessary for the proper and efficient operation of the plan;

(G) provide that the State health authority or, with respect to mental health services, the State

35 Subsec. 314 (d) (2) (C) amended by subsec. 250(b) of P.L. 91-515. 35a Sec. 208 (a) (3) of P.L. 91-648 transfers to the U.S. Civil Service Commission all functions, powers, and duties of the Secretary under sec. 314 (₫) (2) (F) insofar as they relate to the prescription of personnel standards on a merit basis.

mental health authority, will from time to time, but
not less often than annually, review and evaluate its
State plan approved under this subsection and sub-
mit to the Secretary appropriate modifications
thereof;

requirements

(H) provide that the State health authority or, with respect to mental health services, the State Recordkeeping mental health authority, will make such reports, in such form and containing such information, as the Secretary may from time to time reasonably require, and will keep such records and afford such access thereto as the Secretary finds necessary to assure the correctness and verification of such reports;

(I) 36 provide for such fiscal control and fund ac-
counting procedures as may be necessary to assure
the proper disbursement of and accounting for
funds paid to the State under this subsection;

(J) 36,
36, 37 contain such additional information and
assurances as the Secretary may find necessary to
carry out the purposes of this subsection;

(K) 36, 37
provide for services for the prevention
and treatment of drug abuse and drug dependence,
commensurate with the extent of the problem, and

(L) 37 Provide for services for the prevention and
treatment of alcohol abuse and alcoholism, commen-
surate with the extent of the problem.

(3) STATE ALLOTMENTS.-From the sums appropriated to carry out the provisions of this subsection the several States shall be entitled for each fiscal year to allotments determined, in accordance with regulations, on the basis of the population and financial need of the respective States, except that no State's allotment shall be less for any year than the total amounts allotted to such State under formula grants for cancer control, plus other allotments under this section, for the fiscal year ending June 30, 1967.

(4) (Á) PAYMENTS TO STATES.-From each State's allotment under this subsection for a fiscal year, the State shall be paid the Federal share of the expenditures incurred during such year under its State plan approved under this subsection. Such payments shall be made from time to time in advance on the basis of estimates by the Secretary of the sums the State will expend under the State plan, except that such adjustments as may be necessary shall be made on account of previously made underpayments or overpayments under this subsection.

(B) For the purpose of determining the Federal share for any State, expenditures by nonprofit private agencies, organizations, and groups shall, subject to such limitations and conditions as may be prescribed by regulations, be regarded as expenditures by such State or a political subdivision thereof.

Subparagraphs (I) and (J) of sec. 314(d) (2) amended and a new subparagraph (K) added, by sec. 3(b) of P.L. 91-513.

Sec. 331 of P.L. 91-616 amends sec. 314(d) (2) and adds sub. par. (L).

(5) 38 FEDERAL SHARE.-The "Federal share" for any State for purposes of this subsection shall be 100 per centum less that percentage which bears the same ratio to 50 per centum as the per capita income of such State bears to the per capita income of the United States; except that in no case shall such percentage be less than 33% per centum or more than 6623 per centum, and except that the Federal share for the Commonwealth of Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Virgin Islands shall be 66% per

centum.

(6) DETERMINATION OF FEDERAL SHARES.-The Federal shares shall be determined by the Secretary between July 1 and September 1 of each year, on the basis of the average per capita incomes of each of the States and of the United States for the most recent year for which satisfactory data are available from the Department of Commerce, and such determination shall be conclusive for the fiscal year beginning on the next July 1. The populations of the several States shall be determined on the basis of the latest figures for the population of the several States available from the Department of Com

merce.

(7) 39 ALLOCATION OF FUNDS WITHIN THE STATES.—At least 15 per centum of a State's allotment under this subsection shall be available only to the State mental health authority for the provision under the State plan of mental health services. Effective with respect to allotments under this subsection for fiscal years ending after June 30, 1968, at least 70 per centum of such amount reserved for mental health services and at least 70 per centum of the remainder of a State's allotment under this subsection shall be available only for the provision under the State plan of services in communities of the State.

PROJECT GRANTS FOR HEALTH SERVICES DEVELOPMENT

(e) 40, 41, 42 There are authorized to be appropriated $90,000,000 for the fiscal year ending June 30, 1968, $95,000,000 for the fiscal year ending June 30, 1969, $80,000,000 for the fiscal year ending June 30, 1970, $109,500,000 for the fiscal year ending June 30, 1971, $135,000,000 for the

38 The addition of the Trust Territory of the Pacific Islands is not effective until July 1, 1968, sec. 2(d) (2) of P.L. 90–174.

Subsec. 314 (d) (7) amended by subsec. (d) (3) of P.L. 90-174.

40 Subsec. 314 (e) amended by subsecs. 2(e), 3(b), and 8(b), respectively. of P.L. 90-174. Subsec. 3(b) of P.L. 90-174 also provides that any sums appropriated for the fiscal year ending June 30, 1968, for carrying out sec. 314(e) (3) which remain unobligated on the date of enactment of this Act shall be available for carrying out sec. 304 of the Public Health Service Act.

41 Subsec. 314 (e) amended by subsec. 260 (a) and (b) of P.L. 91-515, and further amended by subsec. (c) (1) and (2) of the same P.L., effective with respect to grants under sec. 314 (e) of the PHS Act which are made after the date of enactment of this Act.

42 Effective with respect to appropriations for the fiscal years beginning after 6/30/70, sec. 314(e) amended by sec. 401(b) (1) (D) of P.L. 91-296, 6/30/70.

fiscal year ending June 30, 1972, and $157,000,000 for the fiscal year ending June 30, 1973, for grants to any public or nonprofit private agency, institution, or organization to cover part of the cost (including equity requirements and amortization of loans on facilities acquired from the Office of Economic Opportunity or construction in connection with any program or project transferred from the Office of Economic Opportunity) of (1) providing services (including related training) to meet health needs of limited geographic scope or of specialized regional or national significance, or (2) developing and supporting for an initial period new programs of health services (including related training). Any grant made under this subsection may be made only if the application for such grant has been referred for review and comment to the appropriate area wide health planning agency or agencies (or, if there is no such agency in the area, then to such other public or nonprofit private agency or organization (if any) which performs similar functions) and only if the services assisted under such grant will be provided in accordance with such plans as have been developed pursuant to subsection (a).

INTERCHANGE OF PERSONNEL WITH STATES

(f) 42a (1) For the purposes of this subsection, the term "State" means a State or a political subdivision of a State, or any agency of either of the foregoing engaged in any activities related to health or designated or established pursuant to subparagraph (A) of paragraph (2) of subsection (a); the term "Secretary" means (except when used in paragraph (3)(D)) the Secretary of Health, Education, and Welfare; and the term "Department" means the Department of Health, Education, and Welfare.

(2) The Secretary is authorized, through agreements or otherwise, to arrange for assignment of officers and employees of States to the Department and assignment to States of officers and employees in the Department engaged in work related to health, for work which the Secretary determines will aid the Department in more effective discharge of its responsibilities in the field of health as authorized by law, including cooperation with States and the provision of technical or other assistance. The period of assignment of any officer or employee under an arrangement shall not exceed two years.

(3) (A) Officers and employees in the Department assigned to any State pursuant to this subsection shall be considered, during such assignment, to be (i) on detail to a regular work assignment in the Department, or (ii)

42 Sec. 403 of P.L. 91-648 repealed sec. 314 (f) (less applicability of commissioned officers of the Public Health Service).

53-741 0-71-vol. 1- -5

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