Urban or rural special

poverty area,

assistance.

"(11) provide that special financial and technical assistance shall be given to areas of urban or rural poverty in providing services and facilities for persons with developmental disabilities who are residents of such areas; "(12) describe the methods to be used to assess the effec- 84 Stat. 1321. tiveness and accomplishments of the State in meeting the needs of persons with developmental disabilities in the State:

"(13) provide for the development of a program of construction of facilities for the provision of services for persons with developmental disabilities with (A) is based on a statewide inventory of existing facilities and survey of need; and (B) meets the requirements prescribed by the Secretary for furnishing needed services to persons unable to pay therefor;

(14) set forth the relative need, determined in accordance with regulations prescribed by the Secretary, for the several projects included in the construction program referred to in paragraph (13), and assign priority to the construction of projects, insofar as financial resources available therefor and for maintenance and operation make possible, in the order of such relative need;

"(15) specify the per centum of the State's allotment (under section 132) for any year which is to be devoted to construction of facilities, which per centum shall be not more than 50 per centum of the State's allotment or such lesser per centum as the Secretary may from time to time prescribe;

"(16) provide for affording to every applicant for a construction project an opportunity for hearing before the State agency;

"(17) provide for such fiscal control and fund accounting procedures as may be necessary to assure the proper disbursement of any accounting for funds paid to the State under this part; and

"(18) contain such additional information and assurances as the Secretary may find necessary to carry out the provisions and purposes of this part.

"(c) The Secretary shall approve any State plan and any modification thereof which complies with the provisions of subsection (b). The Secretary shall not finally disapprove a State plan except after reasonable notice and opportunity for a hearing to the State.

"APPROVAL OF PROJECTS FOR CONSTRUCTION

"SEC. 135. (a) For each project for construction pursuant Application. to a State plan approved under this part, there shall be submitted to the Secretary, through the State agency designated pursuant to section 134 (b) (1) (C), an application by the State or a political subdivision thereof or by a public or nonprofit private agency. If two or more agencies join in the construe

84 Stat. 1322. 49 Stat. 1011; 78 Stat. 238.

64 Stat. 1267. 63 Stat. 108.

tion of the project, the application may be filed by one or more of such agencies. Such application shall set forth

"(1) a description of the site for such project:

"(2) plans and specifications thereof, in accordance with regulations prescribed by the Secretary;

"(3) reasonable assurance that title to such site is a will be vested in one or more of the agencies filing the ap- ■ plication or in a public or nonprofit private agency which is to operate the facility;

"(4) reasonable assurance that adequate financial sup port will be available for the construction of the project and for its maintenance and operation when completed:

"(5) reasonable assurance that all laborers and chanics employed by contractors or subcontractors in the performance of work on construction of the project wil be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act of June 13, 1934, as amended (40 U.S.C. 276a-5); and the Secretary of Labor shall have with respect to the labor standards specified in this paragraph the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 5 U.S.C. 133z-15) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c); and

"(6) a certification by the State agency of the Federa share for the project.

"(b) The Secretary shall approve such application if suffcient funds to pay the Federal share of the cost of construction of such project are available from the allotment to the State, and if the Secretary finds (1) that the application contains such reasonable assurances as to title, financial support, and payment of prevailing rates of wages and overtime pay, (2) that the plans and specifications are in accord with regulations prescribed by the Secretary, (3) that the application is in conformity with the State plan approved under this part, and (4) that the application has been approved and recommended by the State agency and is entitled to priority over other projects within the State in accordance with the State's plan for persons with developmental disabilities and in accordance with regula tions prescribed by the Secretary.

"(c) No application shall be disapproved until the Secretary: has afforded the State agency an opportunity for a hearing. "(d) Amendment of any approved application shall be subject to approval in the same manner as the original application.

"WITHHOLDING OF PAYMENTS FOR CONSTRUCTION

"SEC. 136. Whenever the Secretary, after reasonable notice and opportunity for hearing to the State planning and advisory council designated pursuant to section 134(b) (1) (A) and the State agency designated pursuant to section 134 (b) (1) (C)

"(a) that the State agency is not complying substantially with the provisions required by section 134 (b) to be included in the State plan, or with regulations of the Secretary;

"(b) that any assurance required to be given in an application filed under section 135 is not being or cannot be carried out;

"(c) that there is a substantial failure to carry out plans and specifications related to construction approved by the Secretary under section 134; or

"(d) that adequate funds are not being provided annually for the direct administration of the State plan, e Secretary may forthwith notify such State council and ency that

"(e) no further payments will be made to the State for construction from allotments under this part; or

"(f) no further payments will be made from allotments. under this part for any project or projects designated by the Secretary as being affected by the action or inaction referred to in paragraph (a), (b), (c), or (d) of this section;

the Secretary may determine to be appropriate under the rcumstances; and, except with regard to any project for which e application has already been approved and which is not rectly affected, further payments for construction projects ay be withheld, in whole or in part, until there is no longer y failure to comply (or to carry out the assurance or plans nd specifications or to provide adequate funds, as the case ay be) or, if such compliance (or other action) is impossible, ntil the State repays or arranges for the repayment of Federal oneys to which the recipient was not entitled.

PAYMENTS TO THE STATES FOR PLANNING, ADMINISTRATION, AND 84 Stat. 1323. SERVICES

"SEC. 137. (a) (1) From each State's allotments for a fiscal ear under section 132, the State shall be paid the Federal share f the expenditures, other than expenditures for construction, neurred during such year under its State plan approved under his part. Such payments shall be made from time to time in adance on the basis of estimates by the Secretary of the sums the State will expend under the State plan, except that such adjustnents as may be necessary shall be made an account of preiously made underpayments or overpayments under this sec

ion.

"(2) For the purpose of determining the Federal share with espect to any State, expenditures by a political subdivision hereof or by nonprofit private agencies, organizations, and groups shall, subject to such limitations and conditions as may De prescribed by regulations, be regarded as expenditures by

Such State.

"Federal share."

Urban or rural poverty area.

84 Stat. 1324.

"(b) (1) Except as provided in paragraph (2), the 'Federal share' with respect to any State for purposes of this section for any fiscal year shall be 75 per centum of the expenditures, other than expenditures for construction, incurred by the State during such year under its State plan approved under this part during each of the fiscal years ending June 30, 1971, and June 30, 1972, and 70 per centum of such nonconstruction expenditures during the fiscal year ending June 30, 1973.

"(2) In the case of any project located in an area within a State determined by the Secretary to be an urban or rural poverty area, the 'Federal share' with respect to such project for purposes of this section for any fiscal year may be up to 90 per centum of the expenditures, other than expenditures for construction, incurred by the State during such year under its State plan approved under this part with respect to such project for the first twenty-four months of such project, and 80 per centum of such nonconstruction expenditures for the next twelve months.

"WITHHOLDING OF PAYMENTS FOR PLANNING, ADMINISTRATION,

AND SERVICES

"SEC. 138. Whenever the Secretary, after reasonable notice and opportunity for hearing to the State planning and advisory council and the appropriate State agencies or agency, designated pursuant to section 134 (b) (1) finds that—

"(a) there is a failure to comply substantially with any of the provisions required by section 134 to be included in the State plan; or

"(b) there is a failure to comply substantially with any regulations of the Secretary which are applicable to this part,

the Secretary shall notify such State council and agency or agencies that further payments will not be made to the State under this part (or, in his discretion, that further payments will not be made to the State under this part for activities in which there is such failure), until he is satisfied that there will no longer be such failure. Until he is so satisfied, the Secretary shall make no further payment to the State under this part, or shall limit further payment under this part to such State to activities in which there is no such failure.

"REGULATIONS

"SEC. 139. The Secretary, as soon as practicable, by general regulations applicable uniformly to all the States, shall pre

scribe

"(a) the kinds of services which are needed to provide adequate programs for persons with developmental disabilities, the kinds of services which may be provided under a State plan approved under this part, and the categories of persons for whom such services may be provided;

"(b) standards as to the scope and quality of services provided for persons with developmental disabilities under a State plan approved under this part;

"(c) the general manner in which a State, in carrying out its State plan approved under this part, shall determine priorities for services and facilities based on type of service, categories of persons to be served, and type of disability, with special consideration being given to the needs for such services and facilities in areas of urban and rural poverty; and

"(d) general standards of construction and equipment for facilities of different classes and in different types of location.

After appointment of the Council, regulations and revisions therein shall be promulgated by the Secretary only after consultation with Council.

"NONDUPLICATION

"SEC. 140. (a) In determining the amount of any payment for the construction of any facility under a State plan approved under this part, there shall be disregarded (1) any portion of the costs of such construction which are financed by Federal funds provided under any provision of law other than this part, and (2) the amount of any non-Federal funds required to be expended as a condition of receipt of such Federal funds.

"(b) In determining the amount of any State's Federal share of expenditures for planning, administration, and services incurred by it under a State plan approved under this part, there shall be disregarded (1) any portion of such expenditures which are financed by Federal funds provided under any provision of law other than this part, and (2) the amount of any non-Federal funds required to be expended as a condition of receipt of such Federal funds.”

SEC. 102. (a) Section 401 of the Mentral Retardation Facilities and Community Mental Health Centers Construction Act of 1963, as amended (42 U.S.C. 2691), is amended by

(1) striking out"; for purposes of this title and title Ante, p. 54. II only, includes the Trust Territory of the Pacific Islands"

in subsection (a) and inserting "the Trust Territory of the Pacific Islands," after "Virgin Islands,";

(2) striking out subsection (b) and inserting in lieu thereof the following:

"(b) The term 'facility for persons with developmental disabilities' means a facility, or a specified portion of a facility, designed primarily for the delivery of one or more services to persons with one or more developmental disabilities.";

(3) striking out the words "the mentally retarded" wherever they occur in subsection (d) and inserting the words "persons with developmental disabilities" in lieu thereof;

"Facility for persons with

developmental disabilities."