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1 plan community mental health center programs. In connec

2 tion with a project to plan a community mental health cen

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ter program for an area the grant recipient shall (1) assess 4 the needs of the area for mental health services, (2) design 5 a community mental health center program for the area based 6 on such assessment, (3) obtain within the area financial and 7 professional assistance and support for the program, and (4) 8 initiate and encourage continuing community involvement in 9 the development and operation of the program. The amount 10 of any grant under this subsection may not exceed $75,000. 11 "(b) A grant under subsection (a) may be made for 12 not more than one year, and, if a grant is made under such 13 subsection for a project, no other grant may be made for 14 such project under such subsection.

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"(c) The Secretary shall give special consideration to 16 applications submitted for grants under subsection (a) for 17 projects for community mental health centers programs for 18 areas designated by the Secretary as urban or rural poverty 19 areas. No applications for a grant under subsection (a) may 20 be approved unless the application is recommended for ap21 proval by the National Advisory Mental Health Council. "(d) There are authorized to be appropriated for pay

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ments under grants under subsection (a) $5,000,000 for the 24 fiscal year ending June 30, 1975, and $5,000,000 for the 25 fiscal year ending June 30, 1976,

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"GRANTS FOR INITIAL OPERATION

"SEC. 203. (a) (1) The Secretary may make grants

"(A) public and nonprofit private community mental health centers, and

"(B) any public or nonprofit private entity which— "(i) is providing mental health services.

"(ii) meets the requirements of section 201 except that it is not providing all of the comprehensive mental health services described in subsection (b) (1) of such section, and

"(iii) has a plan satisfactory to the Secretary for the provision of all such services within two years

after the date of the receipt of the first grant under this subsection,

16 to assist them in meeting their costs of operation (other

17 than costs related to construction).

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"(2) Grants under subsection (a) may only be made 19 for a grantee's costs of operation during the first eight years 20 after its establishment. In the case of a community mental 21 health center or other entity which received a grant under 22 section 220 (as in effect before the date of enactment of 23 the Community Mental Health Centers Amendments of 24 1975), such center or other entity shall, for purposes of 25 grants under subsection (a), be considered as being in

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1 operation for a number of years equal to the sum of the 2 number of grants in the first series of grants it received under 3 such section and the number of grants it received under 4 this subsection.

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5 “(b) (1) Each grant under subsection (a) to a com6 munity mental health center or other entity shall be made 7 for the costs of its operation for the one-year period beginning 8 on the first day of the month in which such grant is made. "(2) No community mental health center may receive 10 more than eight grants under subsection (a). No entity de11 scribed in subsection (a) (1) (B) may receive more than 12 two grants under subsection (a). In determining the num13 ber of grants that a community mental health center has 14 received under subsection (a), there shall be included any 15 grants which the center received under such subsection as an 16 entity described in paragraph (1) (B) of such subsection. 17 "(c) The amount of a grant for any year made under 18 subsection (a) shall be the lesser of the amounts computed 19 under paragraph (1) or (2) as follows:

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"(1) An amount equal to the amount by which the grantee's projected costs of operation for that year exceed the total of State, local, and other funds and of the fees, premiums, and third-party reimbursements which

the grantee may reasonably be expected to collect in that year.

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"(2) (A) Except as provided in subparagraph

(B), an amount equal to the following percentages of the grantee's projected costs of operation: 80 per centum of such costs for the first year of its operation, 65 per centum of such costs for the second year of its operation, 40 percentum of such costs for the third year of its operation, 35 per centum of such costs for the fourth year of its operation, 30 per centum of such costs for the fifth and sixth years of its operation, and 25 per centum of such costs for the seventh and eighth years of its operation costs for the fifth year of its operation, 50 per centum of such costs for the sixth year of its operation, 40 per centum of such costs for the seventh year of its

operation, and 30 per centum of such costs for the eighth year of its operation.

16 In any year in which a grantee receives a grant under 17 section 204 for consultation and education services, the costs

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of the grantee's operation for that year attributable to the 19 provision of such services and its collections in that year 20 for such services shall be disregarded in making a computa21 tion under paragraph (1) or (2) respecting a grant under 22 subsection (a) for that year.

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"(d) (1) There are authorized to be appropriated for 24 payments under initial grants under subsection (a)

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1 $85,000,000 for the fiscal year ending June 30, 1975, and

2 $100,000,000 for the fiscal year ending June 30, 1976.

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"(2) For the fiscal year ending June 30, 1976, and 4 for each of the succeeding seven fiscal years, there are 5 authorized to be appropriated such sums as may be neces6 sary to make payments under continuation grants under 7 subsection (a) to community mental health centers and. 8 other entities which first received an initial grant under this 9 section for the fiscal year ending June 30, 1975, or the

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next fiscal year and which are eligible for a grant under this 11 section in a fiscal year for which sums are authorized to be 12 appropriated under this paragraph.

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"(e) (1) Any entity which has not received a grant 14 under subsection (a), which received a grant under section 15 220, 242, 243, 251, 256, 264, or 271 of this title (as in 16 effect before the date of enactment of the Community Mental 17 Health Centers Amendments of 1975) from appropriations 18 under this title for a fiscal year ending before July 1, 1974, 19 and which would be eligible for another grant under such 20 section from an appropriation for a succeeding fiscal year if 21 such section were not repealed by the Community Mental 22 Health Centers Amendments of 1975 may, in lieu of receiv23 ing a grant under subsection (a) of this section, continue to 24 receive a grant under each such repealed section under which 25 it would be so eligible for another grant

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