PUBLIC LAW 93-650, 89 Stat. 2 - 1

93rd Congress, H.R. 10511 JANUARY 4, 1975
AN ACT To amend the Urban Mass Transportation Act of 1964 to permit financial assistance to be furnished under that Act for the acquisition of certain equipment which may be used for charter service in a manner which does not foreclose private operators from furnishing such service, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 3 of the Urban Mass Transportation Act of 1964 is amended by adding at the end thereof the following new subsection:

"(f) No Federal financial assistance under this Act may be provided for the purchase of buses unless as a condition of such assistance the applicant or any public body receiving assistance for the purchase of of buses under this Act or any publicly owned operator receiving such assistance shall as a condition of such assistance enter into an agreement with the Secretary that such public body, or any operator of mass transportation for the public body, shall not engage in charter bus operations outside of the urban area within which it provides regularly scheduled mass transportation service, except as provided in the agreement authorized by this subsection. Such agreement shall provide for fair and equitable arrangements, appropriate in the judgment of the Secretary, to assure that the financial assistance granted under this Act will not enable public bodies and publicly and privately owned operators for public bodies to foreclose private operators from the intercity charter bus industry where such operators are willing and able to provide such service. In addition to any other remedies specified in the agreements, the Secretary shall have the authority to bar a grantee or operator from the receipt of further financial assistance for mass transportation facilities and equipment where he determines that there has been a continuing pattern of violations of the terms of the agreement. Upon receiving a complaint regarding an alleged violation, the Secretary shall investigate and shall determine whether a violation has occurred. Upon determination that a violation has occurred, he shall take appropriate action to correct the violation under the terms and conditions of the agreement.".

(b) (1) The first sentence of section 164(a) // 49 USC 1602a. // of Public Law 93 - 87, approved August 13, 1973, is amended--,

(1) by inserting "or" before "(2)"; and

(2) by striking out "or (3) the Urban Mass Transportation Act of 1964,".

(2) The second sentence of such section 164(a) is amended by striking out ", (2), and (3)" and inserting in lieu thereof "and (2)".

Sec. 2. The Secretary shall amend any agreements entered into pursuant to section 164a of the Federal-Aid Highway Act of 1973, Public Law 93 - 87, to conform to the requirements of section 1 of this Act. The effective date of such conformed agreements shall be the effective date of the original agreements entered into pursuant to section 164a.

(Note by the Office of the Federal Register.--The foregoing Act, having been presented to the President of the United States on Saturday, December 22, 1973, for his approval and not having been returned by him to the House of Congress in which it originated within the time prescribed by the Constitution of the United States, has become a law without his approval on January 4, 1974, in accordance with the order of the United States District Court for the District of Columbia, Kennedy v. Jones, et al., Civil Action No. 74 - 194, D.D.C. 1976. The Court decision came too late for this law to be published in regular sequence in 88 Stat. Therefore it will be placed at the beginning of 89 Stat.)

LEGISLATIVE HISTORY:

HOUSE REPORT No. 93 - 553 (Comm. on Public Works).

SENATE REPORT No. 93 - 547 (Comm. on Banking, Housing and Urban Affairs).

CONGRESSIONAL RECORD, Vol. 119 (1973):

Oct. 15, considered and passed House.

Nov. 20, considered and passed Senate, amended.

Dec. 21, House agreed to Senate amendments with an amendment; Senate agreed to House amendment.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 10, No. 1:

Jan. 3, Presidential memorandum of disapproval.

Kennedy v. Jones, et al.,

Civil Action No. 71 - 194 (D.D.C. 1976).

PUBLIC LAW 93-649, 88 STAT 2361

93RD CONGRESS, H.R. 12860 JANUARY 8, 1975
AN ACT TO AMEND TITLE 10 OF THE UNITED STATES CODE IN ORDER TO CLARIFY WHEN CLAIMS MUST BE PRESENTED FOR REIMBURSEMENT OF MEMORIAL SERVICE EXPENSES IN THE CASE OF MEMBERS OF THE ARMED FORCES WHOSE REMAINS ARE NOT RECOVERED.

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE LAST SENTENCE OF SECTION 1482(E) OF TITLE 10, UNITED STATES CODE, IS AMENDED BY INSERTING IMMEDIATELY BEFORE "WHICHEVER IS LATER." THE FOLLOWING: "OR THE DATE THE PERSON WHO WOULD HAVE BEEN DESIGNATED UNDER SUBSECTION (C) TO DIRECT DISPOSITION OF THE REMAINS, IF THEY HAD BEEN RECOVERED, RECEIVES NOTIFICATION THAT THE MEMBER HAS BEEN REPORTED OR DETERMINED TO BE DEAD UNDER AUTHORITY OF CHAPTER 10, TITLE 37.". //37 USC 551.//

LEGISLATIVE HISTORY:

HOUSE REPORT NO. 93 - 1387 (COMM. ON ARMED SERVICES).

SENATE REPORT NO. 93 - 1345 (COMM. ON ARMED SERVICES).

CONGRESSIONAL RECORD, VOL. 120 (1974):

OCT. 7, CONSIDERED AND PASSED HOUSE.

DEC. 13, CONSIDERED AND PASSED SENATE, AMENDED.

DEC. 20, HOUSE CONCURRED IN SENATE AMENDMENT.

PUBLIC LAW 93-648, 88 STAT 2361

9ORD CONGRESS, H.R. 510 JANUARY 8, 1975
AN ACT TO AUTHORIZE AND DIRECT THE SECRETARY OF AGRICULTURE TO CONVEY ANY INTEREST HELD BY THE UNITED STATES IN CERTAIN PROPERTY IN JASPER COUNTY, GEORGIA, TO THE JASPER COUNTY BOARD OF EDUCATION.

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE SECRETARY OF AGRICULTURE IS AUTHORIZED AND DIRECTED TO CONVEY TO THE JASPER COUNTY BOARD OF EDUCATION, JASPER COUNTY, GEORGIA, ALL RIGHT, TITLE AND INTEREST IN AND TO THE REAL PROPERTY DESCRIBED IN THE QUITCLAIM DEED MADE BY THE UNITED STATES, AS GRANTOR, TO THE JASPER COUNTY BOARD OF EDUCATION, AS GRANTEE, ON APRIL 26, 1940, AND RECORDED ON JUNE 5, 1940, IN JASTER COUNTY, GEORGIA, WHICH THE UNITED STATES MIGHT HOLD AS A RESULT OF COVENANTS CONTAINED IN SUCH QUITCLAIM DEED: PROVIDED, HOWEVER, THAT ANY PROCEEDS FROM THE SALE, LEASE, EXCHANGE OR OTHER USE OR DISPOSITION OF THE LANDS SHALL BE USED EXCLUSIVELY FOR EDUCATIONAL PURPOSES BY THE JASPER COUNTY BOARD OF EDUCATION.

LEGISLATIVE HISTORY:

HOUSE REPORT NO. 93 - 986 (COMM. ON INTERIOR AND INSULAR AFFAIRS).

SENATE REPORT NO. 93 - 1403 (COMM. ON AGRICULTURE AND FORESTRY).

CONGRESSIONAL RECORD, VOL. 120 (1974):

MAY 6, CONSIDERED AND PASSED HOUSE.

DEC. 20, CONSIDERED AND PASSED SENATE.

PUBLIC LAW 93-647, 88 STAT. 2337, SOCIAL SERVICES AMENDMENTS OF 1974.

93RD CONGRESS, H.R. 17045 JANUARY 4, 1975
AN ACT TO AMEND THE SOCIAL SECURITY ACT TO ESTABLISH A CONSOLIDATED PROGRAM OF FEDERAL FINANCIAL ASSISTANCE TO ENCOURAGE PROVISION OF SERVICES BY THE STATES.

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE CITED AS THE "SOCIAL SERVICES AMENDMENTS OF 1974".

PART A--SOCIAL SERVICES AMENDMENTS //42 USC 1397 NOTE.//

SEC. 2. THE SOCIAL SECURITY ACT IS AMENDED BY INSERTING AT THE END THEREOF THE FOLLOWING NEW TITLE: //42 USC 301.//

"TITLE XX--GRANTS TO STATES FOR SERVICES

"APPROPRIATION AUTHORIZED //42 USC 1397.//

"SEC. 2001. FOR THE PURPOSE OF ENCOURAGING EACH STATE, AS FAR PRACTICABLE UNDER THE CONDITIONS IN THE STATE, TO FURNISH SERVICES DIRECTED AT THE GOAL OF--,

"(1) ACHIEVING OR MAINTAINING ECONOMIC SELF-SUPPORT TO PREVENT, REDUCE, OR ELIMINATE DEPENDENCY,

"(2) ACHIEVING IR MAINTAINING SELF-SUFFICIENCY, INCLUDING REDUCTION OR PREVENTION OF DEPENDENCY,

"(3) PREVENTING OR REMEDYING NEGLECT, ABUSE, OR EXPLOITATION OF CHILDREN AND ADULTS UNABLE TO PROTECT THEIR OWN INTERESTS, OR PRESERVING, REHABILITATING, OR REUNITING FAMILIES,

"(4) PREVENTING OR REDUCING INAPPROPRIATE INSTITUTIONAL CARE BY PROVIDING FOR COMMUNITY-BASED CARE, HOME-BASED CARE, OR OTHER FORMS OF LESS INTENSIVE CARE, OR

"(5) SECURING REFERRAL OR ADMISSION FOR INSTITUTIONAL CARE WHEN OTHER FORMS OF CARE ARE NOT APPROPRIATE, OR PROVIDING SERVICES TO INDIVIDUALS IN INSTITUTIONS,

THERE IS AUTHORIZED TO BE APPROPRIATED FOR EACH FISCAL YEAR A SUM SUFFICIENT TO CARRY OUT THE PURPOSES OF THIS TITLE. THE SUMS MADE AVAILABLE UNDER THIS SECTION SHALL BE USED FOR MAKING PAYMENTS TO STATES UNDER SECTION 2002.

"PAYMENTS TO STATES //42 USC 1397A.//

"SEC. 2002. (A)(1) FORM THE SUMS APPROPRIATED THEREFOR, THE SECTRARY SHALL, SUBJECT TO THE PROVISIONS OF THIS SECTION AND SECTION 2003, //POST, P. 2343.// PAY TO EACH STATE, FOR EACH QUARTER, AN AMOUNT EQUAL TO 90 PER CENTUM OF THE TOTAL EXPENDITURES DURING THAT QUARTER FOR THE PROVISION OF FAMILY PLANNING SERVICES AND 75 PER CENTUM OF THE TOTAL EXPENDITURES DURING THAT QUARTER FOR THE PROVISION OF OTHER SERVICES DIRETED AT THE GOAL OF--,

"(A) ACHIEVING OR MAINTAINING ECONOMIC SELF-SUPPORT TO PREVENT, REDUCE, OR ELIMINATE DEPENDENCY,

"(B) ACHIEVING OR MAINTAINING SELF-SUFFICIENCY, INCLUDING REDUCTION OR PREVENTION OF DEPENDENCY,

"(C) PREVENTING OR REMEDYING NEGLECT, ABUSE, OR EXPLOITATION OF CHILDREN AND ADULTS UNABLE TO PROTECT THEIR OWN INTERESTS, OR PRESERVING, REHABILITATING, OR REUNITING FAMILIES,

"(D) PREVENTING OR REDUCING INAPPROPRIATE INSITUTIONAL CARE BY PROVIDING FOR COMMUNITY-BASED CARE, HOME-BASED CARE, OR OTHER FORMS OF LESS INTENSIVE CARE, OR

"(E) SECURING REFERRAL OR ADMISSION FOR INSTITUTIONAL CARE WHEN OTHER FORMS OF CARE ARE NOT APPROPRIATE, OR PROVING SERVICES TO INDIVIDUALS IN INSTITUTIONS,

INCLUDING EXPENDITURES FOR ADMINISTRATION (INCLUDING PLANNING AND EVALUATION) AND PERSONNEL TRAINING AND RETRAINING DIRECTLY RELATED TO THE PROVISION OF THOSE SERVICES (INCLUDING BOTH SHORT- AND LONG-TERM TRAINING AT EDUCATIONAL INSTITUTIONS THROUGH GRANTS TO SUCH INSTITUTIONS OR BY DIRECT FINANCIAL ASSISTANCE TO STUDENTS ENROLLED IN SUCH INSTITUTIONS). SERVICES THAT ARE DIRECTED AT THESE GOALS INCLUDE, BUT ARE NOT LIMITED TO, CHILD CARE SERVICES, PROTECTIVE SERVICES FOR CHILDREN AND ADULTS, SERVICES FOR CHILDREN AND ABULTS IN FOSTER CARE, SERVICES RELATED TO THE MANAGEMENT AND MAINTENANCE OF THE HOME, DAY CARE SERVICES FOR ADULTS, TRANSPORTATION SERVICES, TRAINING AND RELATED SERVICES, EMPLOYMENT SERVICES, INFORMATION, REFERRAL, AND COUNSELING SERVICES, THE PREPARATION AND DELIVERY OF MEALS, HEALTH SUPPORT SERVICES AND APPROPRIATE COMBINATIONS OF SERVICES DESIGNED TO MEET THE SPECIAL NEEDS OF CHILDREN, THE AGED, THE MENTALLY RETARDED, THE BLIND, THE EMOTIONALLY DISTURBED, THE PHYSICALLY HANDICAPPED, AND ALCHOLICS AND DRUG ADDICTS.

"(2)(A) NO PAYMENT WITH RESPECT TO ANY EXPENDITURES OTHER THAN EXPENDITURES FOR PERSONNEL TRAINING OR RETAINING DIRECTLY RELATED TO THE PROVISION OF SERVICES MAY BE MADE UNDER THIS SECTION TO ANY STATE FOR ANY FISCAL YEAR IN EXCESS OF AN AMOUNT WHICH BEARS THE SAME RATIO TO $2,500,000,000 AS THE POPULATION OF THE STATE BEARS TO THE POPULATION OF THE FIFTY STATES AND THE DISTRICT OF COLUMBIA. THE SECRETARY SHALL PROMULGATE THE LIMITATION APPLICABLE TO EACH STATE FOR EACH FISCAL YEAR UNDER THIS PARAGRAPH PRIOR TO THE FIRST DAY OF THE THIRD MONTH OF THE PRECEDING FISCAL YEAR, AS DETERMINED ON THE BASIS OF THE MOST RECENT SATISFACTORY DATA AVAILABLE FROM THE DEPARTMENT OF COMMERCE.

"(B) EACH STATE WITH RESPECT TO WHICH A LIMITATION IS PROMULGATED UNDER SUBPARAGRAPH (A) FOR ANY FISCAL YEAR SHALL, AT THE EARLIEST PRACTICABLE DATE AFTER THE COMMENCEMENT OF SUCH FISCAL YEAR (AND IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE SECRETARY), CERTIFY TO THE SECRETARY WHETHER THE AMOUNT OF ITS LIMITATION IS GREATER OR LESS THAN THE AMOUNT NEEDED BY THE STATE, FOR USES TO WHICH THE LIMITATION APPLIES, FOR SUCH FASCAL YEAR AND, IF SO, THE AMOUNT BY WHICH THE AMOUNT OF SUCH LIMITATION IS GREATER OR LESS THAN SUCH NEED.

"(C) IF ANY STATE CERTIFIES, IN ACCORDANCE WITH SUBPARAGRAPH (B), THAT THE AMOUNT OF ITS LIMITATION FOR ANY FISCAL YEAR IS GREATER THAN ITS NEED FOR SUCH YEAR, THEN THE AMOUNT OF THE LIMITATION OF SUCH STATE FOR SUCH YEAR SHALL BE REDUCED BY THE EXCESS OF ITS LIMITATION AMOUNT OVER ITS NEED, AND THE AMOUNT OF SUCH REDUCTION SHALL BE ABAILABLE FOR ALLOTMENT AS PROVIDED IN SUBPARAGRAPH (D).

"(D) OF THE AMOUNTS MADE AVAILABLE, PURSUANT TO SUBPARAGRAPH (C), FOR ALLOTMENT FOR ANY FISCAL YEAR, THE SECRETARY (I) SHALL ALLOT TO THE JURISDICTION OF PRERTO RICO $15,000,000, TO THE JURISDICTION OF GUAM $500,000, AND TO THE JURISDICTION OF THE VIRGIN ISLANDS $500,000, WHICH SHALL BE AVAILABLE TO EACH SUCH JURISDICTION IN ADDITION TO AMOUNTS AVAILABLE UNDER SECTION 1108 FOR PURPOSES OF MATCHING THE EXPENDITURES OF SUCH JURISDICTIONS FOR SERVICES PURSUANT TO SECTIONS 3(A)(4) AND (5), 403(A)(3), 1003(A)(3) AND (4), 1403(A)(3) AND (4), AND 1603(A)(4) AND (5): //42 USC 1308, 42 USC 303, 603, 1203, 1353, AND 1383 NOTE.// PROVIDED, THAT IF THE AMOUNTS MADE AVAILABLE, PURSUANT TO SUBPARAGRAPH (C), ARE INSUFFICIENT TO MEET THE REQUIREMENTS OF THIS CLAUSE, THEN SUCH AMOUNTS AS ARE AVAILABLE SHALL BE ALLOTTED TO EACH OF THE THREE JURISDICTIONS IN PROPORTION TO THEIR RESPECTIVE POPULATIONS.

"(3) NO PAYMENT MAY BE MADE UNDER THIS SECTION TO ANY STATE WITH RESPECT TO ANY EXPENDITUR FOR THE PROVISION OF ANY SERVICE TO ANY INDIVIDUAL UNLESS--,

"(A) THE STATE'S SERVICES PROGRAM PLANNING MEETS THE REQUIREMENTS OF SECTION 2004, AND //POST, P. 2346.//

"(B) THE FINAL COMPREHENSIVE ANNUAL SERVICES PLAN IN EFFECT WHEN THE SERVICE IS PROVIDED TO THE INDIVIDUAL INCLUDES THE PROVISION OF THAT SERVICE TO A CATEGORY OF INDIVIDUALS WHICH INCLUDES THAT INDIVIDUAL IN THE DESCRIPTIONS REQUIRED BY SECTION 2004(2) (B) AND (C) OF THE SERVICES TO BE PROVIDED UNDER THE PLAN AND THE CATEGORIES OF INDIVIDUALS TO WHOM THE SERVICES ARE TO BE PROVIDED.

THE SECRETARY MAY NOT DENY PAYMENT UNDER THIS SECTION TO ANY STATE WITH RESPECT TO ANY EXPENDITURE ON THE GROUND THAT IT IS NOT AN EXPENDITURE FOR THE PROVISION OF A SERVICE OR IS NOT AN EXPENDITURE FOR THE PROVISION OF A SERVICE DIRECTED AT A GOAL DESCRIBED IN PARAGRAPH (1) OF THIS SUBSECTION.

"(4) SO MUCH OF THE AGGREGATE EXPENDITURE WITH RESPECT TO WHICH PAYMENT IS MADE UNDER THIS SECTION TO ANY STATE FOR ANY FISCAL YEAR AS EQUALS 50 PER CENTUM OF THE PAYMENT MADE UNDER THIS SECTION TO THE STATE FOR THAT FISCAL YEAR MUST BE EXPENDED FOR THE PROVISION OF SERVICES TO INDIVIDUALS--,

"(A) WHO ARE RECEIVING AID UNDER THE PLAN OF THE STATE APPROVED UNDER PART A FO THILE IV OR WHO ARE ELIGIBLE TO RECEIVE SUCH AID, OR //42 USC 601.//

"(B) WHOSE NEEDS ARE TAKEN INTO ACCOUNT IN DETERMINING THE NEEDS OF A INDIVIDUAL WHO IS RECEIVING AID UNDER THE PLAN OF THE STATE APPROVED UNDER PART A OF TITLE IV, OR WHO ARE ELIGIBLE TO HAVE THEIR NEEDS TAKEN INTO ACCOUNT IN DETERMINING THE NEEDS OF AN INDIVIDUAL WHO IS RECEIVING OR IS ELIGIBLE TO RECEIVE SUCH AID, OR

"(C) WITH RESPECT TO WHOM SUPPLEMENTAL SECURITY INCOME BENEFITS UNDER TITLE XVI OR STATE SUPPLEMENTARY PAYMENTS, AS DEFINED IN SECTION 2007(1), //42 USC 1381.// ARE BEING PAID, OR WHO ARE ELIGIBLE TO HAVE SUCH BENEFITS OR PAYMENTS PAID WITH RESPECT TO THEM, OR //POST, P. 2348.//

"(D) WHOSE INCOME AND RESOURCES ARE TAKEN INTO ACCOUNT IN DETERMINING THE AMOUNT OF SUPPLEMENTAL SECURITY INCOME BENEFITS OR STATE SUPPLEMENTARY PAYMENTS, AS DEFINED IN SECTION 2007(1), BEING PAID WITH RESPECT TO AN INDIVIDUAL, OR WHOSE INCOME AND RESOURCES WHOUL BE TAKEN INTO ACCOUNT IN DETERMINING THE AMOUNT OF SUCH BENEFITS OR PAYMENTS TO BE PAID WITH RESPECT TO AN INDIVIDUAL WHO IS ELIGIBLE TO HAVE SUCH BENEFITS OR PAYMENTS PAID WITH RESPECT TO HIM, OR

"(E) WHO ARE ELIGIBLE FOR MEDICAL ASSISTANCE UNDER THE PLAN OF THE STATE APPROVED UNDER TITLE XIX. //42 USC 1396.//

"(5) NO PAYMENT MAY BE MADE UNDER THIS SECTION TO ANY STATE WITH RESPECT TO ANY EXPENDITURE FOR THE PROVISION OF ANY SERVICE TO ANY INDIVIDUAL--,

"(A) WHO IS RECEIVING, OR WHOSE NEEDS ARE TAKEN INTO ACCOUNT IN DETERMINING THE NEEDS OF AN INDIVIDUAL WHO IS RECEIVING, AID UNDER THE PLAN OF THE STATE APPROVED UNDER PART A OF TITLE IV, OR WITH RESPECT TO WHOM SUPPLEMENTAL SECURITY INCOME BENEFITS UNDER TITLE XVO OR STATE SUPPLEMENTARY PAYMENTS, AS DEFINED IN SECTION2007(1), ARE BEING PAID, OR

"(B) WHO IS A MEMBER OF A FAMILY THE MONTHLY GROSS INCOME OF WHICH IS LESS THAN THE LOWER OF--,

"(I) 80 PER CENTUM OF THE MEDIAN INCOME OF A FAMILY OF FOUR IN THE STATE, OR

(II) THE MEDIAN INCOME OF A FAMILY OF FOUR IN THE FIFTY STATES AND THE DISTRICT OF COLUMBIA, ADJUSTED, IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE SECRETARY, TO TAKE INTO ACCOUNT THE SIZE OF THE FAMILY,

IF ANY FEE OR OTHER CHARGE (OTHER THAN A VOLUNTARY CONTRIBUTION) IMPOSED ON THE INDIVIDUAL FOR THE PROVISION OF THAT SERVICE IS NOT CONSISTENT WITH SUCH REQUIREMENTS (INCLUDING REQUIREMENTS PROHIBITING THE IMPOSITION OF ANY SUCH FEE OR CHARGE) AS THE SECRETARY SHALL PRESCRIBE.

"(6) NO PAYMENT MAY BE MADE UNDER THIS SECTION TO ANY STATE WITH RESPECT TO ANY EXPENDITURE FOR THE PROVISION OF ANY SERVICE, OTHER THAN AN INFORMATION OR REFERRAL SERVICE OR A SERVICE DIRECTED AT THE GOAL OF PREVENTING OR REMEDYING NEGLECT, ABUSE, OR EXPLOITATION OF CHILDEN AND ADULTS UNABLE TO PROTECT THEIR OWN INTERESTS, TO ANY INDIVIDUAL WHO IS NOT AN INDIVIDUAL DESCRIBED IN PARAGRAPH (5), AND--,

"(A) WHO IS A MEMBER OF A FAMILY THE MONTHLY GROSS INCOME OF WHICH EXCEEDS 115 PER CENTUM OF THE MEDIAN INCOME OF A FAMILY OF FOUR IN THE STATE, ADJUSTED, IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE SECRETARY, TO TAKE INTO ACCOUNT THE SIZE OF THE FAMILY, OR

"(B) WHO IS A MEMBER OF A FAMILY THE MONTHLY GROSS INCOME OF WHICH--,

"(I) EXCEEDS TE LOWER OF--,

"(I) 80 PER CENTUM OF THE MEDIAN INCOME OF A FAMILY OF FOUR IN THE STATE, OR

"(II) THE MEDIAN INCOME OF A FAMILY OF FOUR IN THE FIFTY STATES AND THE DISTRICT OF COLUMBIA, ADJUSTED, IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE SECRETARY, TO TAKE INTO ACCOUNT THE SIZE OF THE FAMILY, AND

(II) DOES NOT EXCEED 115 PER CENTUM OF THE MEDIAN INCOME OF A FAMILY OF FOUR IN THE STATE, ADJUSTED, IN ACCORDANCE WITH REGUALTIONS PRESCRIBED BY THE SECRETARY, TO TAKE INTO ACCOUNT THE SIZE OF THE FAMILY, UNLESS A FEE OR OTHER CHARGE REASONABLY RELATED TO INCOME IS IMPOSED ON THE INDIVIDUAL FOR THE PROVISION OF THE SERVICE.

THE SECRETARY SHALL PROMULGATE THE MEDIAN INCOME OF A FAMILY OF FOUR IN EACH STATE AND THE FIFTY STATES AND THE DISTRICT OF COLUMBIA APPLICABLE TO PAYMENTS WITH RESPECT TO EXPENDITURES IN EACH FISCAL YEAR PRIOR TO THE FIRST DAY OF THE THIRD MONTH OF THE PRECEDING FISCAL YEAR.

"(7) NO PAYMENT MAY BE MADE UNDER THIS SECTION TO ANY STATE WITH RESPECT TO ANY EXPENDITURE--,

"(A) FOR THE PROVISION OF MEDICAL OR ANY OTHER REMEDIAL CARE, OTHER THAN FAMILY PLANNING SERVICES, UNLESS IT IS AN INTEGAL BUT SUBORDINATE PART OF A SERVICE DESCRIBED IN PARAGRAPH (1) OF THIS SUBSECTION AND FEDERAL FINANCIAL PARTICIPATION WITH RESPECT TO THE EXPENDITURE IS NOT AVAILABLE UNDER THE PLAN OF THE STATE APPROVED UNDER TITLE XIX; OR //42 USC 1396.//

"(B) FOR THE PURCHASE, CONSTRUCTION, OR MAJOR MODIFICATION OF ANY LAND, BUILDING OR OTHER FACILITY, OR FIXED EQUIPMENT; OR

"(C) WHICH IS IN THE FORM OF GOODS OR SERVICES PROVIDED IN KIND BY A PRIVATE ENTITY; OR

"(D) WHICH IS MADE FROM DONATED PRIVATE FUNDS, UNLESS SUCH FUNDS--,

"(I) ARE TRANSFERRED TO THE STATE AND ARE UNDER ITS ADMINISTRATIVE CONTROL, AND

"(II) ARE DONATED TO THE STATE WITHOUT RESTRICTIONS AS TO USE, OTHER THAN RESTRICTIONS AS TO THE SERVICES WITH RESPECT TO WHICH THE FUNDS ARE TO BE USED IMPOSED BY A DONOR WHO IS NOT A SOPOSOR OR OPERATOR OF A PROGRAM TO PROVICE THOSE SERVICES, OR THE GEOGRAPHIC AREA IN WHICH THE SERVICES WITH RESPECT TO WHICH THE CONTRIBUTION IS USED ARE TO BE PROVIDED, AND

"(III) DO NOT REVERT TO THE DONOR'S FACILITY OR USE IF THE DONOR IS OTHER THAN A NONPROFIT ORGANIZATION; OR

(E) FOR THE PROVISION OF ROOM OR BOARD (EXCEPT AS PROVIDED BY PARAGRAPH (11)(C)) OTHER THAN ROOM OR BOARD PROVIDED FOR A PERIOD OF NOT MORE THAN SIX CONSECUTIVE MONTHS AS AN INTEGRAL BUT SUBORDINATE PART OF A SERVICE DESCRIBED IN PARAGRAPH (1) OF THIS SUBSECTION.

"(8) NO PAYMENT MAY BE MADE UNDER THIS SECTION WITH RESPECT TO ANY EXPENDITURE IF PAYMENT IS MADE WITH RESPECT TO THAT EXPENDITURE UNDER SECTION 403 OR 422 OF THIS ACT //42 USC 603, 622.//

"(9)(A) NO PAYMENT MAY BE MADE UNDER THIS SECTION WITH RESPECT TO ANY EXPENDITURE IN CONNECTION WITH THE PROVISION OF ANY CHILD DAY CARE SERVICE, UNLESS--,

"(I) IN THE CASE OF CARE PROVIDED IN THE CHILD'S HOME, THE CARE MEETS STANDARDS ESTABLISHED BY THE STATE WHICH ARE REASONABLY IN ACCORD WITH RECOMMENDED STANDARDS OF NATIONAL STANDARDSETTING ORGANIZATIONS CONCERNED WITH THE HOME CARE OF CHILDREN, OR

(II) IN THE CASE OF CARE PROVIDED OUTSIDE THE CHILD'S HOME, THE CARE MEETS THE FEDERAL INTERAGENCY DAY CARE REQUIREMENTS AS APPROVED BY THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE AND THE OFFICE OF ECONOMIC OPPORTUNITY ON SEPTEMBER 23, 1968; EXCEPT THAT (I) SUBDIVISION III OF SUCH REQUIREMENTS WITH RESPECT TO EDUCATIONAL SERVICES SHALL BE RECOMMENDED TO THE STATES AND NOT REQUIRED, AND STAFFING STANDARDS FOR SCHOOL-AGE CHILDERN IN DAY CARE CENTERS MAY BE REVISED BY THE SECRETARY, (II) THE STAFFING STANDARDS IMPOSED WITH RESPECT TO SUCH CARE IN THE CASE OF CHILDREN UNDER AGE 3 SHALL CONFORM TO REGULATIONS PRESCRIBED BY THE SECRETARY, AND (III) THE STAFFING STANDARDS IMPOSED WITH RESPECT TO SUCH CARE IN THE CASE OF CHILDREN AGED 10 TO 14 SHALL REQUIRE AT LEAST ONE ADULT FOR EACH 20 CHILDREN, AND IN THE CASE OF SCHOOLAGED CHILDREN UNDR AGE 10 SHALL REQUIRE AT LEAST ONE ABULT FOR EACH 15 CHILDREN, EXCEPT AS PROVIDED IN SUBPARAGRAPH (B).

"(B) THE SECRETARY SHALL SUBMIT TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, AFTER DECEMBER 31, 1976, AND PRIOR TO JULY 1, 1977, AN EVALUATION OF THE APPROPRIATENESS OF THE REQUIREMENTS IMPOSED BY SUBPARAGRAPH (A), TOGETHER WITH ANY RECOMMENDATIONS HE MAY HAVE FOR MODIFICATION OF THOSE REQUIREMENTS. NO EARLIER THAN NINETY DAYS AFTER THE SUBMISSION OF THE REPORT, THE SECRETARY MAY, BE REGULATION, MAKE SUCH MODIFICATIONS IN THE REQUIREMENTS IMPOSED BY SUBPARAGRAPH (A) AS HE DETERMINES ARE APPROPRIATE.

"(C) THE REQUIREMENTS IMPOSED BY THIS PARAGRAPH ARE IN LIEU OF ANY REQUIREMENTS THAT WOULD OTHERWISE BY APPLICABLE UNDER SECTION 552(D) OF THE ECONOMIC OPPORTUNITY ACT OF 1964 TO CHILD DAY CARE SERVICES WITH RESPECT TO WHICH PAYMENT IS MADE UNDER THIS SECTION. //42 USC 2932.//

"(10) NO PAYMENT MAY BE MADE UNDER THIS SECTION WITH RESPECT TO ANY EXPENDITURE FOR THE PROVISION OF ANY EDUCATIONAL SERVICE WHICH THE STATE MAKES GENERALLY AVAILABLE TO ITS RESIDENTS WITHOUT COST AND WITHOUT REGARD TO THEIR INCOME.

"(11) NO PAYMENT MAY BE MADE UNDER THIS SECTION WITH RESPECT TO ANY EXPENDITURE FOR THE PROVISION OF ANY SERVICE TO ANY INDIVIDUAL LIVING IN ANY HOSPITAL, SKILLED NURSING FACILITY, OR INTERMEDIATE CARE FACILITY (INCLUDING ANY SUCH HOSPITAL OR FACILITY FOR MENTAL DISEASES OR FOR THE MENTALLY RETARDED), ANY PRISON, OR ANY FOSTER FAMILY HOME EXCEPT--,

"(A) ANY EXPENDITURE FOR THE PROVISION OF A SERVICE THAT (I) IS PROVIDED BY OTHER THAN THE HOSPITAL, FACILITY, PRISON, OR FOSTER FAMILY HOME IN WHICH THE INDIVIDUAL IS LIVING, AND (II) IS PROVIDED, UNDER THE STATE'S PROGRAM FOR THE PROVISION OF THE SERVICES DESCRIBED IN PARAGRAPH (1), TO INDIVIDUALS WHO ARE NOT LIVING IN A HOSPITAL, SKILLED NURSING FACILITY, INTERMEDIATE CARE FACILITY, PRISON, OR FOSTER FAMILY HOME,

"(B) ANY EXPENDITURE WHICH IS FOR THE COST, IN ADDITION TO THE COST OF BASIC FOSTER CARE, OF THE PROVISION, BY A FOSTER FAMILY HOME, TO AN INDIVIDUAL LIVING IN THAT HOME, OF A SERVICE WHICH MEETS A SPECIAL NEED OF THAT INDIVIDUAL, AS DETERMINED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY, AND

"(C) ANY EXPENDITURE FOR THE PROVISION OF EMERGENCY SHELTER PROVIDED TO A CHILD, FOR NOT IN EXCESS OF THIRTY DAYS, AS A PROTECTIVE SERVICE.

"(12) NO PAYMENT MAY BE MADE UNDER THIS SECTION WITH RESPECT TO ANY EXPENDITURE FOR THE PROVISION OF CASH PAYMENTS AS A SERVICE.

"(13) NO PAYMENT MAY BE MADE UNDER THIS SECTION WITH RESPECT TO ANY EXPENDITURE FOR THE PROVISION OF ANY SERVICE TO ANY INDIVIDUAL TO THE EXTENT THAT THE PROVIDED OF THE SERVICE OR THE INDIVIDUAL RECEIVING THE SERVICE IS ELIGIBLE TO RECEIVE PAYMENT UNDER TITLE XVIII WITH RESPECT TO THE PROVISION OF THE SERVICE. //42 USC 1395.//

"(B)(1) PRIOR TO THE BEGINNING OF EACH QUARTER THE SECRETARY SHALL ESTINATE THE AMOUNT TO WHICH A STATE WILL BE ENTITLED UNDER THIS SECTION FOR THE QUARTER ON THE BASIS OF A REPORT FILED BY THE STATE CONTAINING ITS ESTIMATE OF THE AMOUNT TO BE EXPENDED DURING THAT QUARTER WITH RESPECT TO WHICH PAYMENT MUST BE MADE UNDER THIS SECTION, TOGETHER WITH AN EXPLANATION OF THE BASES FOR THAT ESTIMATE.

"(2) THE SECRETARY SHALL THEN PAY TO THE STATE, IN SUCH INSTALLMENTS AS HE MAY DETERMINE, THE AMOUNT SO ESTIMATED, REDUCED OR INCREASED TO THE EXTENT OF ANY OVERPAYMENT OR UNDERPAYMENT WHICH THE SECRETARY DETERMINES WAS MADE UNDER THIS SECTION TO THE STATE FOR ANY PRIOR QUARTER AND WITH RESPECT TO WHICH ADJUSTMENT HAS NOT ALREADY BEEN MADE UNDER THIS SUBSECTION.

"(3) UPON THE MAKING OF ANY ESTIMATE BY THE SECRETARY UNDER THIS SUBSECTION, ANY APPROPRIATIONS AVAILABLE FOR PAYMENTS UNDER THIS SECTION SHALL BE DEEMED OBLIGATED.

"PROGRAM REPORTING //42 USC 1397B.//

"SEC. 2003. (A) EACH STATE WHICH PARTICIPATES IN THE PROGRAM ESTABLISHED BY THIS TITLE SHALL MAKE SUCH REPORTS CONCERNING ITS USE OF FEDERAL SOCIAL SERVICES FUNDS AS THE SECRETARY MAY BE REGULATION PROVIDE."

"(B) EACH STATE WHICH PARTICIPATES IN THE PROGRAM ESTABLISHED BY THIS TITLE SHALL ASSURE THAT THE AGGREGATE EXPENDITURES FROM APPROPRIATED FUNDS FROM THE STATE AND POLITICAL SUBDIVISIONS THEREOF FOR THE PROVISION OF SERVICES DURING EACH SERVICES PROGRAM YEAR (AS ESTABLISHED UNDER THE REQUIREMENTS OF SECTION 2002(A)(3) //ANTE, P. 2337.// WITH RESPECT TO WHICH PAYMENT IS MADE UNDER SECTION 2002 IS NOT LESS THAN THE AGGREGATE EXPENDITURES FROM SUCH APPROPRIATED FUNDS FOR THE PROVISION OF THOSE SERVICES DURING THE FISCAL YEAR ENDING JUNE 30, 1973, OR THE FISCAL YEAR ENDING JUNE 30, 1974, WITH RESPECT TO WHICH PAYMENT WAS MADE UNDER THE PLAN OF THE STATE APPROVED UNDER TITLE I, VI, X, XIV, OR XVI, OR PART A OF THTLE IV, //42 USC 301, 801, 12501, 1351, 1381, 601.// WHICHEVER IS LESS, EXCEPT THAT THE REQUIREMENTS OF THIS SUBSECTION SHALL NOT APPLY TO ANY STATE FOR ANY SERVICES PROGRAM YEAR IF THE PAYMENT TO THE STATE UNDER SECTION 2002, FOR EACH FISCAL YEAR ANY PART OF WHICH IS INCLUDED IN THE SERVICES PROGRAM YEAR, WITH RESPECT TO EXPENDITURES OTHER THAN EXPENDITURES FOR PERSONNEL TRAINING OR RETRAINING DIRECTLY RELATED TO THE PROVISION OF SERVICES, EQUALS THE ALLOTMENT OF THE STATE FOR THAT FISCAL YEAR UNDER SECTION 2002(A)(2).

"(C)(1) IF THE SECRETARY, AFTER REASONABLE NOTICE AND AN OPPORTUNITY FOR A HEARING TO THE STATE, FINDS THAT THERE IS A SUBSTANTIAL FAILURE TO COMPLY WITH ANY OF THE REQUIREMENTS IMPOSED BY SUBSECTIONS (A) AND (B) OF THIS SECTION, HE SHALL, EXCEPT AS PROVIDED IN PARAGRAPH(2)8 NOTIFY THE STATE THAT FURTHER PAYMENTS WILL NOT BE MADE TO THE STATE UNDER SECTION 2002 UNTIL HE IS SATISFIED THAT THERE WILL NO LONGER BE ANY SUCH FAILURE TO COMPLY, AND UNTIL HE IS SO SATISFIED HE SHALL MAKE NO FURTHER PAYMENTS TO THE STATE.

"(2) THE SECRETARY MAY SUSPEND IMPLEMENTATION OF ANY TERMINATION OF PAYMENTS UNDER PARAGRAPH (1) FOR SUCH PERIOD AS HE DETERMINES APPROPRIATE AND INSTEAD REDUCE THE AMOUNT OTHERWISE PAYABLE TO THE STATE UNDER-SECTION 2002 FOR EXPENDITURES DURING THAT PERIOD BY 3 PER CENTUM FOR EACH OF SUBSECTIONS (A) AND (B) OF THIS SECTION WITH RESPECT TO WHICH THERE WAS A FINDING OF SUBSTANTIAL NONCOMPLIANCE AND WITH RESPECT TO WHICH HE IS NOT YET SATISFIED THAT THERE WILL NO LONGER BE ANY SUCH FAILURE TO COMPLY.

"(D)(1) EACH STATE WHICH PARTICIPATES IN THE PROGRAM ESTABLISHED BY THIS TITLE SHALL HAVE A PLAN APPLICABLE TO ITS PROGRAM FOR THE PROVISION OF THE SERVICES DECRIBED IN SECTION 2202(A)(1) WHICH--,

"(A) PROVIDES THAT AN OPPORTUNITY FOR A FAIR HEARING BEFORE THE APPROPRIATE STATE AGENCY WILL BE GRANTED TO ANY INDIVIDUAL WHOSE CLAIM FOR ANY SERVICE DESCRIBED IN SECTION 2002(A)(1) IS DENIED OR IS NOT ACTED UPON WITH REASONABLE PROMPTNESS;

"(B) PROVIDES THAT THE USE OR DISCLOSURE FO INFORMATION OBTAINED IN CONNECTION WITH ADMINISTRATION OF THE STATE'S PROGRAM FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1) CONCERNING APPLICANTS FOR AND RECIPIENTS OF THOSE SERVICES WILL BE RESTRICTED TO PURPOSES DIRECTLY CONNECTED WITH THE ADMINISTRATION OF THAT PROGRAM, THE PLAN OF THE STATE APPROVED UNDER PART A OF TITLE IV, THE PLAN OF THE STATE DEVELOPED UNDER PART B OF THAT TITLE, THE SUPPLEMENTAL SECURITY INCOME PROGRAM ESTABLISHED BY TITLE XVI, OR THE PLAN OF THE STATE APPROVED UNDER TITLE XIX; //42 USC 601, 620, 42 USC 1381, 1396.//

"(C) PROVIDES FOR THE DESIGNATION, BY THE CHIEF EXECUTIVE OFFICER OF THE STATE OR AS OTHERWISE PROVIDED BY THE LAWS OF THE STATE, OF AN APPROPRIATE AGENCY WHICH WILL ADMINISTER OR SUPERVISE THE ADMINISTRATION OF THE STATE'S PROGRAM FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1);

"(D) PROVIDES THAT THE STATE WILL, IN THE ADMINISTRATION OF ITS PROGRAM FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1), USE SUCH METHODS RELATING TO THE ESTABLISHMENT AND MAINTENANCE OF PERSONNEL STANDARDS ON A MERIT BASIS AS ARE FOUND BY THE SECRETARY TO BE NECESSARY FOR THE PROPER AND EFFICIENT OPERATION OF THE PROGRAM, EXCEPT THAT THE SECRETARY SHALL EXERCISE NO AUTHORITY WITH RESPECT TO THE SELECTION, TENURE OF OFFICE, OR COMPENSATION OF ANY INDIVIDUAL EMPLOYED IN ACCORDANCE WITH SUCH METHODS;

(E) PROVICES THAT NO DURATIONAL RESIDENCY OR CITIZENSHIP REQUIREMENT WILL BE IMPOSED AS A CONDITION TO PARTICIPATION IN THE PROGRAM OF THE STATE FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1);

"(F) PROVIDES, IF THE STATE PROGRAM FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1) INCLUDES SERVICES TO INDIVIDUALS LIVING IN INSTITUTIONS OR FOSTER HOMES, FOR THE ESTABLISHMENT OR DESIGNATION OF A STATE AUTHORITY OR AUTHORITIES WHICH SHALL BE RESPONSIBLE FOR ESTABLISHING AND MAINTAING STANDARDS FOR SUCH INSTITUTIONS OR HOMES WHICH ARE REASONABLE IN ACCORD WITH RECOMENDED STANDARDS OF NATIONAL ORGANIZATIONS CONCERNED WITH STANDARDS FOR SUCH INSTITUTIONS OR HOMES, INCLUDING STANDARDS RELATED TO ADMISSIONS POLICIES, SAFETY, SANITATION, AND PROTECTION OF CIVIL RIGHTS;

"(G) PROVIDES, IF THE STATE PROGRAM FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1) //ANTE, P. 2337.// INCLUDES CHILD DAY CARE SERVICES, FOR THE ESTABLISHMENT OR DESIGNATION OF A STATE AUTHORITY OR AUTHORITIES WHICH SHALL BE RESPONSIBLE FOR ESTABLISHING AND MAINTAINING STANDARDS FOR SUCH SERVICES WHICH ARE REASONABLY IN ACCORD WITH RECOMMENDED STANDARDS OF NATIONAL ORGANIZATIONS CONCERNED WITH STANDARDS FOR SUCH SERVICES, INCLUDING STANDARDS RELATED TO ADMISSION POLICIES FOR FACILITIES PROVIDING SUCH SERVICES, SAFETY, SANITATION, AND PROTECTION OF CIVIL RIGHTS;

"(H) PROVIDES THAT THE STATE'S PROGRAM FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1) WILL BE IN EFFECT IN ALL POLITICAL SUBDIVISIONS OF THE STATE; AND

"(I) PROVIDES FOR FINANCIAL PARTICIPATION BY THE STATE IN THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1).

NOTWITHSTANDING CLAUSE (C), IF ON DECEMBER 1, 1974, THE STATE AGENCY WHICH ADMINISTERED OR SUPERVISED THE ADMINISTRATION OF THE PORTION OF THE PLAN OF THE STATE FOR SERVICES TO THE AGED, BLIND, OR DISABLED APPROVED UNDER TITLE VI OF THIS ACT //42 USC 801.// WHICH RELATED TO BLIND INDIVIDUALS WAS DIFFERENT FROM THE AGENCY WHICH ADMINISTERED OR SUPERVISED THE ADMINISTRATION OF THE REST OF THAT PLAN, THE STATE AGENCY WHICH ADMINISTERED OR SUPERVISED THE ADMINISTRATION OF THE PORTION OF THE PLAN OF THE STATE FOR SERVICES TO THE AGED, BLIND, OR DISABLED RELATED TO BLIND INDIVIDUALS MAY BE DESIGNATED TO ADMINISTER OR SUPERVISE THE ADMINISTRATION OF THE PORTION OF THE STATE'S PROGRAM FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1) RELATED TO BLIND INDIVIDUALS AND A SEPARATE STATE AGENCY MAY BE DESIGNATED TO ADMINISTER OR SUPERVISE THE ADMINISTRATION OF THE REST OF THE PROGRAM; AND IN SUCH CASE THE PART OF THE PROGRAM WHICH EACH AGENCY ADMINISTERS, OR THE ADMINISTRATION OF WHICH EACH AGENCY SUPERVISES, SHALL BE REGARDED AS A SEPARATE PROGRAM FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1) FOR PURPOSES OF THIS TITLE. THE DATRE SELECTED BY THE STATE PURSUANT TO SECTION 2004(1) //POST, P. 2346.// AS THE BEGINNING OF THE SERVICES PROGRAM YEAR FOR EACH OF THE SEPARATE PROGRAMS SHALL BE THE SAME.

"(2) THE SECRETARY SHALL APPROVE ANY PLAN WHICH COMPLIES WITH THE PROVISIONS OF PARAGRAPH (1).

"(E)(1) NO PAYMENT MAY BE MADE UNDER SECTION 2002 TO ANY STATE WHICH DOES NOT HAVE A PLAN APPROVED UNDER SUBSECTION (G).

"(2) IN THE CASE OF ANY STATE PLAN WHICH HAS BEEN APPROVED BY THE SECRETARY UNDER SUBSECTION (D), IF THE SECRETARY, AFTER REASONABLE NOTICE AND AN OPPORTUNITY FOR A HEARING TO THE STATE, FINDS--,

"(A) THAT THE PLAN NO LONGER COMPLIES WITH THE PROVISIONS OF SUBSECTION (D)(1), OR

"(B) THAT IN THE ADMINISTRATION OF THE PLAN THERE IS A SUBSTANTIAL FAILURE TO COMPLY WITH ANY SUCH PROVISION,

THE SECRETARY SHALL, EXCEPT AS PROVIDED IN PARAGRAPH (3), NOTIFY THE STATE THAT FURTHER PAYMENTS WILL NOT BE MADE TO THE STATE UNDER SECTION 2002 UNTIL HE IS SATISFIED THAT THERE WILL NO LONGER BE ANY SUCH FAILTURE TO COMPLY, AND UNTIL HE IS SO SATISFIED HE SHALL MAKE NO FURTHER PAYMENTS TO THE STATE.

"(3) THE SECRETARY MAY SUSPEND IMPLEMENTATION OF ANY TERMINATION OF PAYMENTS UNDER PARAGRAPH (2) FOR SUCH PERIOD AS HE DETERMINES APPROPRIATE AND INSTEAD REDUCE THE AMOUNT OTHERWISE PAYABLE TO THE STATE UNDER SECTION 2002 FOR EXPENDITURES DURING THAT PERIOD BY 3 PERCENT FOR EACH CLAUSE OF SUBSECTION (D)(1) WITH RESPECT TO WHICH THERE IS A FINDING OF NONCOMPLIANCE AND WITH RESPECT TO WHICH HE IS NOT YET SATISFIED THAT THERE WILL NO LONGER BE ANY SUCH FAILURE TO COMPLY.

"SERVICES PROGRAM PLANNING

"SEC. 2004. //42 USC 1397C.// A STATE'S SERVICES PROGRAM PLANNING MEETS THE REQUIREMENTS OF THIS SECTION IF, FOR THE PURPOSE OF ASSURING PUBLIC PARTICIPATION IN THE DEVELOPMENT OF THE PROGRAM FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1) //ANTE, P. 2337.// WITHIN THE STATE--,

"(1) THE BEGINNING OF THE FISCAL YEAR OF EITHER THE FEDERAL GOVERNMENT OR THE STATE GOVERMENT IS ESTABLISHED AS THE BEGINNING OF THE STATE'S SERVICES PROGRAM YEAR; AND

"(2) AT LEAST NINETY DAYS PRIOR TO THE BEGINNING OF THE STATE'S SERVICES PROGRAM YEAR, THE CHIEF EXECUTIVE OFFICER OF THE STATE, OR SUCH OTHER OFFICIAL AS THE LAWS OF THE STATE PROVIDE, PUBLISHES AND MAKES GENERALLY AVAILABLE (AS DEFINED IN REGULATIONS PRESCRIBED BY THE SECRETARY AFTER CONSIDERATION OF STATE LAWS GOVERNING NOTICE OF ACTIONS BY PUBLIC OFFICIALS) TO THE PUBLIC A PROPOSED COMPREHENSIVE ANNUAL SERVICES PROGRAM PLAN PREPARED BY THE AGENCY DESIGNATED PURSUANT TO THE REQUIREMENTS OF SECTION 2003(D)(1)(C) //ANTE, P. 23439// AND, UNLESS THE LAWS OF THE STATE PROVIDE OTHERWISE, APPROVED BY THE CHIEF EXECUTIVE OFFICER, WHICH SETS FORTH THE STATE'S PLAN FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1) DURING THAT YEAR, INCLUDING--

"(A) THE OBJECTIVES TO BE ACHIEVED UNDER THE PROGRAM,

"(B) THE SERVICES TO BE PROVIDED UNDER THE PROGRAM, INCLUDING AT LEAST ONE SERVICE DIRECTED AT AT LEAST ONE OF THE GOALS IN EACH OF THE FIVE CATEGORIES OF GOALS SET FORTH IN SECTION 2002( A)(1) (AS DETERMINED BY THE STATE) AND INCLUDING AT LEAST THREE TYPES OF SERVICES (SELECTED BY THE STATE) FOR INDIVIDUALS WHO ARE RECIPIENTS OF SUPPLEMENTAL SECURITY INCOME BENEFITS UNDER TITLE XVI AND WHO ARE IN NEED OF SUCH SERVICES, TOGETHER WITH A DEFINITION OF THOSE SERVICES AND A DESCRIPTION OF THEIR RELATIONSHIP TO THE OBJECTIVES TO BE ACHIEVED UNDER THE PROGRAM AND THE GOALS DESCRIBED IN SECTION 2002(A)(1), //42 USC 1381.//

"(C) THE CATEGORIES OF INDIVIDUALS TO WHOM THOSE SERVICES ARE TO BE PROVIDED, INCLUDING ANY CATEGORIES BASED ON THE INCOME OF INDIVIDUALS OR THEIR FAMILIES,

"(D) THE GEOGRAPHY AREAS IN WHICH THOSE SERVICES ARE TO BE PROVIDED, AND THE NATURE AND AMOUNT OF THE SERVICES TO BE PROVIDED IN EACH AREA,

"(E) A DESCRIPTION OF THE PLANNING, EVALUATION, AND REPORTING ACTIVITIES TO BE CARRIED OUT UNDER THE PROGRAM,

"(F) THE SOURCES OF THE RESOURCES TO BE USED TO CARRY OUT THE PROGRAM,

"(G) A DESCRIPTION OF THE ORGANIZATIONAL STRUCTURE THROUGH WHICH THE PROGRAM WILL BE ADMINISTERED, INCLUDING THE EXTENT TO WHICH PUBLIC AND PRIVATE AGENCIES AND VOLUNTEERS WILL BE UTILIZED IN THE PROVISION OF SERVICES,

"(H) A DESCRIPTION OF HOW THE PROVISION OF SERVICES UNDER THE PROGRAM WILL BE COORDINATED WITH THE PLAN OF THE STATE APPROVED UNDER PART A OF TITLE IV, 0042 USC 6019// THE PLAN OF THE STATE DEVELOPED UNDER PART B OF THAT TITLE, THE SUPPLEMENTAL SECURITY INCOME PROGRAM ESTABLISHED BY TITLE XVI, THE PLAN OF THE STATE APPROVED UNDER TITLE XIX, //42 USC 1396.// AND OTHER PROGRAMS FOR THE PROVISION OF RELATED HUMAN SERVICES WITHIN THE STATE, INCLUDING THE STEPS TAKEN TO ASSURE MAXIMUM FEASIBLE UTILIZATION OF SERVICES UNDER THESE PROGRAMS TO MEET THE NEEDS OF THE LOW INCOME POPULATION,

"(I) THE ESTIMATED EXPENDITURES UNDER THE PROGRAM, INCLUDING ESTIMATED EXPENDITURES WITH RESPECT TO EACH OF THE SERVICES TO BE PROVIDED, EACH OF THE CATEGORIES OF INDIVIDUALS TO WHOM THOSE SERVICES ARE TO BE PROVIDED, AND EACH OF THE GEOGRAPHIC AREAS IN WHICH THOSE SERVICES ARE TO BE PROVIDED, AND A COMPARISON BETWEEN ESTIMATED NON-FEDERAL EXPENDITURES UNDER THE PROGRAM AND NON-FEDERAL EXPENDITURES FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2202(A)(1) //ANTE, P. 2337.// IN THE STATE DURING THE PRECEDING SERVICES PROGRAM YEAR, AND

"(J) A DESCRIPTION OF THE STEPS TAKEN, OR TO BE TAKEN, TO ASSUFE THAT THE NEEDS OF ALL RESIDENTS OF, AND ALL GEOGRAPHIC AREAS IN, THE STATE WERE TAKEN INTO ACCOUNT IN THE DEVELOPMENT OF THE PLAN; AND

"(3) PUBLIC COMMENT ON THE PROPOSED PLAN IS ACCEPTED FOR A PERIOD OF AT LEAST FORTY-FIVE DAYS; AND

"(4) AT LEAST FORTY-FIVE DAYS AFTER PUBLICATION OF THE PROPOSED PLAN AND PRIOR TO THE BEGINNING OF THE STATE'S SERVICES PROGRAM YEAR, THE CHIEF EXECUTIVE OFFICER OF THE STATE, OR SUCH OTHER OFFICIAL AS THE LAWS OF THE STATE PROVIDE, PUBLISHES A FINAL COMPREHENSIVE ANNUAL SERVICES PROGRAM PLAN PREPARED BY THE AGENCY DESIGNED PURSUANT TO THE REQUIREMENTS OF SECTION 2003(D)( 1)(C) //ANTE, P. 2343.// AND, UNLESS THE LAWS OF THE STATE PROVIDE OTHERWISE, APPROVED BY THE CHIEF EXECUTIVE OFFICER, WHICH SETS FORTH THE SAME INFORMATION REQUITED TO BE INCLUDED IN THE PROPOSED PLAN, TOGETHER WITH AN EXPLANATION OF THE DIFFERENCES BETWEEN THE PROPOSED AND FINAL PLAN AND THE REASONS THEREOFR; AND

"(5) ANY AMENDMENT TO A FINAL COMPREHENSIVE SERVICES PROGRAM PLAN IS PREPARED BY THE AGENCY DESIGNATED PURSUANT TO SECTION 2003(D)(1)(C), APPROVED BY THE CHIEF EXECUTIVE OFFICER OF THE STATE UNLESS THE LAWS OF THE STATE PROVIDE OTHERWISE, AND PUBLISHED BY THE CHIEF EXECUTIVE OFFICER OF THE STATE, OR SUCH OTHER OFFICIAL AS THE LAWS OF THE STATE PROVIDE, AS APROPOSED AMENDMENT ON WHICH PUBLIC COMMENT IS ACCEPTED FOR A PERIOD OF AT LEAST THIRTY DAYS, AND THEN PREPARED BY THE AGENCY DESIGNATED PURSUANT TO SECTION 2003(D)(1)(C), APPROVED BY THE CHIEF EXECUTIVE OFFICER OF THE STATE UNLES THE LAWS OF THE STATE PROVIDE OTHERWISE, AND PUBLISHED BY THE CHIEF EXECUTIVE OFFICER OF THE STATE, OR SUCH OTHER OFFICIAL AS THE LAWS OF THE STATE PROVIDE, AS A FINAL AMENDMENT, TOGETHER WITH AN EXPLANATION OF THE DIFFERENCES BETWEEN THE PROPOSED AND FINAL AMENDMENT AND THE REASONS THEREFOR.

"EFFECTIVE DATE OF REGULATIONS PUBLISHED BY THE SECRETARY //42 USC 1397D.//

"SEC. 2005. NO FINAL REGULATION PUBLISHED BY THE SECRETARY UNDER THIS TITLE SHALL BE EFFECTIVE WITH RESPECT TO PAYMENTS UNDER SECTION 2002 FOR EXPENDITURES, DURING ANY QUARTER COMMENCING BEFORE THE BEGINNING OF THE FIRST SERVICES PROGRAM YEAR ESTABLISHED BY THE STATE UNDER THE REQUIREMENTS OF SECTION 2002(A)(3) WHICH BEGINS AT LEAST SIXTY DAYS AFTER THE PUBLICATION OF THE FINAL REGULATION.

"EVALUATION; PROGRAM ASSISTANCE //42 USC 1397E.//

" SEC. 2006. (A) THE SECRETARY SHALL PROVIDE FOR THE CONTINUING EVALUATION OF STATE PROGRAMS FOR THE PROVISION OF THE SERVICES DESCRIBED IN SECTION 2002(A)(1).

"(B) THE SECRETARY SHALL MAKE AVAILABLE TO THE STATES ASSISTANCE WITH RESPECT TO THE CONTENT OF THEIR SERVICES PROGRAM, AND THEIR SERVICES PROGRAM PLANNING, REPORTING, ADMINISTRATION, AND EVALUATION.

"(C) WITHIN SIX MONTHS AFTER THE CLOSE OF EACH FISCAL YEAR, THE SECRETARY SHALL SUBMIT TO THE CONGRESS A REPORT ON THE OPERATION OF THE PROGRAM ESTABLISHED BY THIS TITLE DURING THAT YEAR, INCLUDING--

"(1) THE EVALUATIONS CARRIED OUT UNDER SUBSECTION (A) AND THE RESULTS OBTAINED THEREFROM, AND

"(2) THE ASSISTANCE PROVIDED UNDER SUBSECTION (B) DURING THAT YEAR.

"DEFINITIONS //42 USC 1397F.

"SEC. 2007. FOR PURPOSES OF THIS TITLE--

"(1) THE TERM 'STATE SUPPLEMENTARY PAYMENT' MEANS ANY CASH PAYMENT MADE BY A STATE ON A REGULAR BASIS TO AN INDIVIDUAL WHO IS RECEIVING SUPPLEMENTAL SECURITY INCOME BENEFITS UNDER TITLE XVI OR WHO WOULD BUT FOR HIS INCOME BE ELIGIBLE TO RECEIVE SUCH BENEFITS, AS ASSISTANCE BASED ON NEED IN SUPPLEMENTATION OF SUCH BENEFITS, AS DETERMINED BY THE SECRETARY, AND

"(2) THE TERM 'STATE' MEANS THE FIFTY STATES AND THE DISTRICT OF COLUMBIA.".

TECHNICAL AND CONFORMING AMENDMENTS

SEC. 3. (A)(1) SECTION 402(A)(5) OF THE SOCIAL SECURITY ACT IS AMENDED BY STRIKING OUT "(A)" AND STRIKING OUT EVERYTHING AFTER "PROPER AND EFFICIENT OPERATION OF THE PLAN" AND INSERTING"; AND" IN LIEU THEREOF. //42 USC 602.//

(2) SECTION 402(A) OF THAT ACT IS FURTHER AMENDED BY STRIKING OUT PARAGRAPHS (13) AND (14).

(3) SECTION 403(A)(3) OF THAT ACT IS AMENDED TO READ AS FOLLOWS: //42 USC 603.//

"(3) IN THE CASE OF ANY STATE, AN AMOUNT EQUAL TO THE SUM OF THE FOLLOWING PROPORTIONS OF THE TOTAL AMOUNTS EXPENDED DURING SUCH QUARTER AS FOUND NECESSARY BY THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE FOR THE PROPER AND EFFICIENT ADMINISTRATION OF THE STATE PLAN--,

"(A) 75 PER CENTUM OF SO MUCH OF SUCH EXPENDITURES AS ARE FOR THE TRAINING OF PERSONNEL EMPLOYED OR PREPARING FOR EMPLOYMENT BY THE STATE AGENCY OR BY THE LOCAL AGENCY ADMINISTERING THE PLAN IN THE POLITICAL SUBDIVISION, AND

"(B) ONE-HALF OF THE REMAINDER OF SUCH EXPENDITURES, EXCEPT THAT NO PAYMENT SHALL BE MADE WITH RESPECT TO AMOUNTS EXPENDED IN CONNECTION WITH THE PROVISION OF ANY SERVICE DESCRIBED IN SECTION 2002(A)(1) //ANTE, P. 2337.// OF THIS ACT OTHER THAN SERVICES THE PROVISION OF LWHICH IS REQUIRED BY SECTION 402(A)(19) TO BE INCLUSED IN THE PLAN OF THE STATE; AND" (4) SECTION 403 OF THAT ACT IS FURTHER AMENDED BY STRIKING OUT SUBSECTION (E).

(5) SECTION 406 OF THAT ACT IS AMENDED BY STRIKING OUT SUBSECTION (D). //42 USC 606.//

(6) SECTION 422(A)(1)(A)(I) OF THAT ACT //42 USC 622.// IS AMENDED BY STRIKING OUT "THE STATE AGENCY DESIGNATED PURAUANT TO SECTION 402( A)(3) TO ADMINISTER OR SUPERVISE THE ADMINISTRATION OF THE PLAN OF THE STATE APPROVED UNDER PART A OF THIS TITLE" AND INSERTING "THE INDIVIDUAL OR AGENCY DESIGNATED PURSUANT TO SECTION 2003(D)(1)(C) ANTE, P. 2343.// TO ADMINISTER OR SUPERVISE THE ADMINISTRATION OF THE STATE'S SERVICES PROGRAM" IN LIEU THEREOF.

(7) SECTION 422(A)(1)(A)(II) OF THAT ACT IS AMENDED BY STRIKING OUT "THE ORGANIZATIONAL UNIT IN SUCH STATE OF LOCAL AGENCY ESTABLISHED PURSUANT TO SECTION 402(A)(15)" AND INSERTING A "SINGLE ORGANIZATIONAL UNIT IN SUCH STATE OR LOCAL AGENCY, AS THE CASE MAY BE" IN LIEU THEREOF.

(8) SECTION 402(A)(15) OF THAT ACT IS AMENDED BY INSERTING "AS PART OF THE PROGRAM OF THE STATE FOR THE PROVISION OF SERVICES UNDER TITLE XX" IMMEDIATELY AFTER "PROVIDE". //42 USC 6029//

(B) TITLE VI OF THE SOCIAL SECURITY ACT IS REPEALED. //42 USC 801 - 805.//

(C) SECTION 1115 OF THE SOCIAL SECURITY ACT IS AMENDED BY--

(1) STRIKING OUT "OR XIX" AND INSERTING "XIX, OR XX" IN LIEU THEREOF, 0042 USC 1315.//

(2) STRIKING OUT "OR 1902" IN CLAUSE (A) AND INSERTING "1902, 2202, 2003, OR 2004" IN LIEU THEREOF,

(3) STRIKING OUT "OR 1903" IN CLAUSE (B) AND INSERTING "1903, OR 2002" IN LIEU THEREOF, AND

(4) INSERTING "OR EXPENDITURES WITH RESPECT TO WHICH PAYMENT SHALL BE MADE UNDER SECTION 2002," IMMEDIATELY AFTER "ADMINISTRATION OF SUCH STATE PLAN OF PLANS," IN CLAUSE (B).

(D) SECTION 1116 OF THE SOCIAL SECURITY ACT IS AMENDED BY-- //42 USC 1316.//

(1) STRIKING OUT "OR XIX" IN SUBSECTIONS (A)(1) AND (B) AND INSERTING "XIX OR XX" IN LIEU THEREOF,

(2) STRIKING OUT "OR 1904" AND INSERTING "1904, OR 2003" IN LIEU THEREOF IN SUBSECTION (A)(3), AND

(3) INSERTING "XX," IMEDIATELY AFTER "XIX," IN SUBSECTION

(D).

(E)(1) SECTION 1130 OF THE SOCIAL SECURITY ACT IS REPEALED. //42 USC 1320B.//

(2) SECTIONS 3(A) , 403(A), 1003(A), 1403(A), AND 1603(A) OF THAT ACT (RELATING TO PAYMENTS TO STATES WITH APPROVED STATE PLANS) ARE EACH AMENDED BY STRIKING OUT"(SUBJECT TO SECTION 1130)". //42 USC 303, 603, 1203, 1353, 1383 NOTE.//

(F) ANY CHILD DAY CARE SERVICE PROVIDED UNDER ANY PLAN OF A STATE APPROVED UNDER PART A, OR DEVELOPED UNDER PART B. OF TITLE IV OF THE SOCIAL SECURITY ACT MUST MEET THE REQUIREMENTS APPLICABLE, UNDER SUBSECTION (A)(9) OF SECTION 2002 OF THE SOCIAL SECURITY ACT, AS AMENDED BY THIS ACT, TO CHILD DAY CARE SERVICES WITH RESPECT TO WHICH PAYMENT IS MADE UNDER THAT SECTION. //42 USC 1397A NOTE, 42 USC 601, 620, ANTE, P. 2337.// THE REQUIREMENTS IMPOSED BY THIS SUBSECTION ARE IN LIEU OF ANY REQUIREMENTS THAT WOULD OTHERWISE BE APPLICABLE UNDER SECTION 522(:) OF THE ECONOMIC OPPORTUNITY ACT OF 1964 TO CHILD DAY CARE SERVICES PROVIDED UNDER ANY PLAN OF A STATE APPROVED UNDER PART A, OR DEVELOPED UNDER PART B, OF TITLE IV OF THE SOCIAL SECURITY ACT. //42 USC 2932.//

(G) SECTION 12(A) OF PUBLIC LAW 93 - 233 IS AMENDED BY STRIKING OUT "JANUARY 1, 1975" AND INSERTING "OCTOBER 1, 1975" IN LIEU THEREOF NOTWITHSTANDING THE PROVISIONS OF SECTION 12(A) OF PUBLIC LAW 93 - 233, THE SECRETARY MAY MAKE ANY MODIFICATION IN ANY REGULATION DESCRIBED IN THAT SECTION IF THE MODIFICATION IS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS PART. //42 USC 1320B NOTE.//

(H) SECTION 422 OF THE SOCIAL SECURITY ACT IS AMENDED BY INSERTING AT THE END THEREOF THE FOLLOWING NEW SUBSECTION: //42 USC 622.//

"(C) IF ON DECEMBER 1, 1974, THE AGENCY OF A STATE ADMINISTERING ITS PLAN UNDER THIS PART WAS NOT THE AGENCY DESIGNATED PURSUANT TO SECTION 402(A)(3), SUBSECTION (A)(1)(A) OF THIS SECTION SHALL NOT APPLY WITH RESPECT TO SUCH AGENCY BUT ONLY SO LONG AS SUCH AGENCY IS NOT THE AGENCY DESIGNATED UNDER SECTION 2003(D)(1)(C), AND IF ON DECEMBER 1, 1974, THE LOCAL AGENCY ADMINISTERING THE PLAN OF A STATE UNDER THIS PART IN A SUBDIVISION OF THE STATE IS NOT THE LOCAL AGENCY IN SUCH SUBDIVISION ADMINISTERING THE PLAN OF SUCH STATE UNDER PART A OF THIS TITLE, SUBSECTION (A)(1)(A) OF THIS SECTION SHALL NOT APPLY WITH RESPECT TO SUCH LOCAL AGENCY BUT ONLY SO LONG AS SUCH LOCAL AGENCY IS NOT THE LOCAL AGENCY ADMINISTERING THE PROGRAM OF THE STATE FOR THE PROVISION OF SERVICES UNDER TITLE XX."

(I) SECTION 1108(A) OF THE SOCIAL SECURITY ACT //42 USC 1308.// IS AMENDED BY STRIKING OUT "THE TOTAL AMOUNT" AND INSERTING IN LIEU THEREOF "EXCEPT AS PROVIDED IN 2002(A)(2)(D), //ANTE, P. 2337.// THE TOTAL AMOUNT".

(J) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (2) OF SECTION 2002( A) OF THE SOCIAL SECURITY ACT, AS AMENDED BY THIS ACT, THE LIMITATION IMPOSED BY SUCH PARAGRAPH (2) FOR THE FISCAL YEAR BEGINNING JULY 1, 1975, WITH RESPEC TO ANY STATE SHALL BE THE ALLOTMENT OF THE STATE FOR THAT FISCAL YEAR AS DETERMINED UNDER SECTION 1130 OF THE SOCIAL SECURITY ACT. IN DETERMINING, FOR THE PURPOSES OF THAT LIMITATION, THE TOTAL AMOUNT OF THE PAYMENTS MADE TO ANY STATE WITH RESPECT TO EXPENDITURES DURING THE FISCAL YEAR BEGINNING JULY 1, 1975, THERE SHALL BE INCLUDED THE AMOUNT OF ANY PAYMENTS MADE TO THE STATE THAT ARE CHARGEABLE AGAINST THE ALLOTMENT OF THE STATE FOR THE FISCAL YEAR BEGINNING JULY 1, 1975, UNDER SUCH SECTION 1130.

REPORT BY THE SECRETARY

SEC. 4. PRIOR TO JULY 1, 1977, THE SECRETARY SHALL SUBMIT TO THE CONGRESS A REPORT ON THE EFFECTIVENESS OF THE PROGRAM ESTABLISHED BY TITLE XX OF THE SOCIAL SECURITY ACT, AS AMENDED BY THIS ACT, DURING CALENDAR YEARS 1975 AND 1976, TOGETHER WITH RECOMMENDATIONS, IF ANY, FOR IMPROVEMENTS IN THAT PROGRAM. //42 USC 1397A NOTE.//

PAYMENTS TO STATES FOR EDUCATIONAL PURPOSES

SEC. 5. (A) SECTION 3(A)(4)(A)(IV) OF THE SOCIAL SECURITY ACT (AS APPLICABLE TO PUERTO RICO, THE VIRGIN ISLANDS, AND GUAM) IS AMENDED BY INSERTING "(INCLUDING BOTH SHORT- AND LONG-TERM TRAINING AT EDUCATIONAL INSTITUTIONS THROUGH GRANTS TO SUCH INSTITUTIONS OR BY DIRECT FINANCIAL ASSISTANCE TO STUDENTS ENROLLED IN SUCH INSTITUTIONS)" FOLLOWING "TRAINING". //42 USC 1203.//

(D) SECTION 1403(A)(3)(A)(IV) OF THE SOCIAL SECURITY ACT (AS APPLICABLE TO PUERTO RICO, THE VIRGIN ISLANDS, AND GUAM) IS AMENDED BY INSERTING "(INCLUDING BOTH SHORT- AND LONG-TERM TRAINING AT EDUCATIONAL INSTITUTIONS THROUGH GRANTS TO SUCH INSTITUTIONS OR BY DIRECT FINANCIAL ASSISTANCE TO STUDENTS ENROLLED IN SUCH INSTITUTIONS)" FOLLOWING "TRAINING". //42 USC 1353.//

(E) SECTION 1603(A)(4)(A)(IV) OF THE SOCIAL SECURITY ACT (AS APPLICABLE TO PUERTO RICO, THE VIRGIN ISLANDS, AND GUAM) IS AMENDED BY INSERTING "(INCLUDING BOTY SHORT- AND LON-TERM TRAINING AT EDUCATIONAL INSTITUTIONS THROUGH GRANTS TO SUCH INSTITUTIONS OR BY DIRECT FINANCIAL ASSISTANCE TO STUDENTS ENROLLED AT SUCH INSTITUTIONS)" FOLLOWING "TRAINING". //42 USC 1383 NOTE.//

DEFINITION OF SECRETARY

SEC. 6. AS USED IN THIS PART AND THE AMENDMENTS MADE BY THIS PART, THE TERM "SECRETARY" MEANS, UNLESS THE CONTEXT OTHERWISE REQUIRES, THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE.

EFFECTIVE DATES

SEC. 7. (A)(1) THE AMENDMENTS MADE BYR SECTIONS 2 AND 5 OF THIS ACT SHALL BE EFFECTIVE WITH RESPECT TO PAYMENTS FOR QUARTERS COMMENCING AFTER SEPTEMBER 30, 1975. //42 USC 1397 NOTE, ANTE, PP. 2337, 2350.//

(2) NOTWITHSTANDING THE PROVISIONS OF SECTION 2004 OF THE SOCIAL SECURITY ACT, AS AMENDED BY THIS ACT, THE FIRST SERVICES PROGRAM YEAR OF EACH STATE SHALL BEGIN ON OCTOBER 1, 1975, AND END WITH THE CLOSE OF, AT THE OPTION OF THE STATE-- //ANTE, P. 2346.//

(A) THE DAY IN THE TWELVE-MONTH PERIOD BEGINNING OCTOBER 1, 1975, OR

(B) THE DAY IN THE TWELVE-MONTH PERIOD BEGINNING OCTOBER 1, 1976,

WHICH IS THE LAST DAY OF THE TWELVE-MONTH PERIOD ESTABLISHED BY THE STATE AS ITS SERVICES PROGRAM YEAR UNDER THAT SECTION. NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (B) OF SECTION 2003 OF THE SOCIAL SECURITY ACT, AS AMENDED BY THIS ACT, //ANTE P. 2343.// THE AGGREGATE EXPENDITURES REQUIRED BY THAT SUBSECTION WITH RESPECT TO THE FIRST SERVICES PROGRAM YEAR OF EACH STATE SHALL BE THE AMOUNT WHICH BEARS THE SAME RATIO TO THE AMOUNT THAT WOULD OTHERWISE BE REQUIRED UNDER THAT SUBSECTION AS THE NUMBER OF MONTHS IN THE STATE'S FIRST SERVICES PROGRAM YEAR BEARS TO TWELVE.

(B) THE AMENDMENTS MADE BY SECTION 3 OF THIS ACT //ANTE, P. 2348.// SHALL BE EFFECTIVE WITH RESPECT TO PAYMENTS UNDER SECTIONS 403 AND 603 OF THE SOCIAL SUCURITY ACT FOR QUARTERS COMMENCING AFTER SEPTEMBER 30, 1975, EXCEPT THAT THE AMENDMENTS MADE BY SECTION 3(A) SHALL NOT BE EFFECTIVE WITH RESPECT TO THE COMMONWEALTH OF PUERTO RICO, THE VIRGIN ISLANDS, OR GUAM. //42 USC 603, 803.//

PART B--CHILD SUPPORT PROGRAMS

CHILD SUPPORT AND ESTABLISHMENT OF PATERNITY

IN GENERAL

SEC. 101. (A) TITLE IV OF THE SOCIAL SECURITY ACT IS AMENDED BY ADDING AFTER PART C THE FOLLOWING PART:

"PART D--CHILD SUPPORT AND WSTABLISHMENT OF PATERNITY

"APPROPRIATION

"SEC. 451. FOR THE PURPOSE OF ENFORCING THE SUPPORT OBLIGATIONS OWED BY ABSENT PARENTS TO THEIR CHILDREN, LOCATING ABSENT PARENTS, ESTABLISHING PATERNITY, AND OBTAINING CHILD SUPPORT, THERE IS HEREBY AUTHORIZED TO BE APPROPRIATED FOR EACH FISCAL YEAR A SUM SUFFICIENT TO CARRY OUT THE PURPOSES OF THIS PART.

"DUTIES OF THE SECRETARY //42 USC 652.//

"SEC. 452. (A) THE SECRETARY SHALL ESTABLISH, WITHIN THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE A SEPARATE ORGANIZATIONAL UNIT, UNDER THE DIRECTION OF A DESIGNEE OF THE SECRETARY, WHO SHALL REPORT DIRECTLY TO THE SECRETARY AND WHO SHALL--

"(1) ESTABLISH SUCH STANDARDS FOR STATE PROGRAMS FOR LOCATING ABSENT PARENTS, ESTABLISHING PATERNITY, AND OBTAINING CHILD SUPPORT AS HE DETERMINES TO BE NECESSARY TO ASSURE THAT SUCH PROGRAMS WILL BE EFFECTIVE;

"(2) ESTABLISH MINIMUM ORGANIZATIONAL AND STAFFING REQUIREMENTS FOR STATE UNITS ENGAGED IN CARRYING OUT SUCH PROGRAMS UNDER PLANS APPROVED UNDER THIS PART;

"(3) REVIEW AND APPROVE STATE PLANS FOR SUCH PROGRAMS;

"(4) EVALUATE THE IMPLEMENTATION OF STATE PROGRAMS ESTABLICHED PURSUANT TO SUCH PLAN, CONDUCT SUCH AUDITS OF STATE PROGRAMS ESTABLISHED UNDER THE PLAN APPROVED UNDER THIS PART AS MAY BE NECESSARY TO ASSURE THEIR CONFORMITY WITH THE REQUIREMENTS OF THIS PART, AND, NOT LESS OFTEN THAN ANNUALLY, CONDUCT A COMPLETE AUDIT OF THE PROGRAMS ESTABLISHED UNDER SUCH PLAN IN EACH STATE AND DETERMINE FOR THE PURPOSES OF THE PENALTY PROVISION OF SECTION 403(H) WHETHER THE ACTUAL OPERATION OF SUCH PROGRAMS IN EACH STATE CONFORMS TO THE REQUIREMENTS OF THIS PART;

"(5) ASSIST STATES IN ESTABLISHING ADEQUATE REPORTING PROCEDURES AND MAINTAIN RECORDS OF THE OPERATIONS OF PROGRAMS ESTABLISHED PURSUANT TO THIS PART IN EACH STATE;

"(6) MAINTAIN RECORDS OF ALL AMOUNTS COLLECTED AND DISBURSED UNDER PROGRAMS ESTABLISHED PURSUANT TO THE PROVISIONS OF THIS PART AND OF THE COSTS INCURRED IN COLLELCTING SUCH AMOUNTS;

"(7) PROVIDE TECHNICAL ASSISTANCE TO THE STATES TO HELP THEM ESTABLISH EFFECTIVE SYSTEMS FOR COLLECTING CHILD SUPPORT AND ESTABLISHING PATERNITY;

"(8) RECEIVE APPLICATIONS FROM STATES FOR PERMISSION TO UTILIZE THE COURTS OF THE UNITED STATES TO ENFORCE COURT ORDERS FOR SUPPORT AGAINST ABSENT PARENTS AND, UPON A FINDING THAT (A) ANOTHER STATE HAS NOT UNDERTAKEN TO ENFORCE THE COURT ORDER OF THE ORIGINATING STATE AGAINST THE ABSENT PARENT WITHIN A REASONABLE TIME, AND (B) THAT UTILIZATION OF THE FEDERAL COURTS IS THE ONLY REASONABLE METHOD OF ENFORCING SUCH ORDER, APPROVE SUCH APPLICATIONS;

"(9) OPERATE THE PARENT LOCATOR SERVICE ESTABLISHED BY SECTION 453; AND //POST, P. 2353.//

"(10) NOT LATER THAN JUNE 30 OF EACH YEAR BEGINNING AFTER DECEMBER 31, 1975, SUBMIT TO THE CONGRESS A REPORT ON ALL ACTIVITIES UNDERTAKEN PURSUANT TO THE PROVISIONS OF THIS PART.

"(B) THE SECRETARY SHALL, UPON THE REQUEST OF ANY STATE HAVING IN EFFECT A STATE PLAN APPROVED UNDER THIS PART, CERTIFY THE AMOUNT OF ANY CHILD SUPPORT OBLIGATION ASSIGNED TO SUCH STATE TO THE SECRETARY OF THE TREASURY FOR COLLECTION PURSUANT TO THE PROVISIONS OF SECTION 6305 OF THE INTERNAL REVENUE CODE OF 1954. //POST, P. 2358.// NO AMOUNT MAY BE CERTIFIED FOR COLLECTION UNDER THIS SUBSECTION EXCEPT THE AMOUNT OF THE DELINQUENCY UNDER A COURT ORDER FOR SUPPORT AND UPON A SHOWING BY THE STATE THAT SUCH STATE HAS MADE DILIGENT AND REASONABLE EFFORTS TO COLLECT SUCH AMOUNTS UTILIZING ITS OWN COLLECTION MECHANISMS, AND UPON AN ATREEMENT THAT THE STATE WILL REIMBURSE THE UNITED STATES FOR ANY COSTS INVOLVED IN MAKING THE COLLECTION. THE SECRETARY AFTER CONSULTATION WITH THE SECRETARY OF THE TREASURY MAY, BY REGULATION, ESTABLISH CRITERIA FOR ACCEPTING AMOUNTS FOR COLLECTION AND FOR MAKING CERTIFICATION UNDER THIS SUBSECTION INCLUDING IMPOSING SUCH LIMITATIONS ON THE FREQUENCY OF MAKING SUCH CERTIFICATIONS UNDER THIS SUBSECTION.

"(C)(1) THERE IS HEREBY ESTABLISHED IN THE TREASURY A REVOLVING FUND WHICH SHALL BE AVAILABLE TO THE SECRETARY WITHOUT FISCAL YEAR LIMITATION, TO ENABLE HIM TO PAY TO THE STATES FOR DISTRIBUTION IN ACCORDANCE WITH THE PROVISIONS OF SECTION 457 SUCH AMOUNTS AS MAY BE COLLECTED AND PAID (SUBJECT TO PARAGRAPH (2)) INTO SUCH FUND UNDER SECTION 6305 OF THE INTERNAL REVENUE CODE OF 1954. //POST, P. 2356.//

"(2) THERE IS HEREBY APPROPRIATED TO THE FUND, OUT OF ANY MONEYS IN THE TREASURY NOT OTHERWISE APPROPRIATED, AMOUNTS EQUAL TO THE AMOUNTS COLLECTED UNDER SECTION 6305 OF THE INTERNAL REVENUE CODE OF 1954, REDUCED BY THE AMOUNTS CREDITED OR REFUNDED AS OVERPAYMENTS OF THE AMOUNTS SO COLLECTED. THE AMOUNTS APPROPRIATED BY THE PRECEDING SECTION SHALL BE TRANSFERRED AT LEAST QUARTERLY FROM THE GENERAL FUND OF THE TREASURY TO THE FUND ON THE BASIS OF ESTIMATED MADE BY THE SECRETARY OF THE TREASURY. PROPER ADJUSTMENTS SHALL BE MADE IN THE AMOUNTS SUBSEQUENTLY TRANSFERRED TO THE EXTENT PRIOR ESTIMATES WERE IN EXCESS OF OR LESS THAN THE AMOUNTS REQUIRED TO BE TRANSFERRED.

"PARENT LOCATOR SERVICE //42 USC 653.//

"SEC. 453. (A) THE SECRETARY SHALL ESTABLISH AND CONDUCT A PARENT LOCATOR SERVICE, UNDER THE DIRECTION OF THE DESIGNEE OF THE SECRETARY REFERRED TO IN SECTION 452(A), WHICH SHALL BE USED TO OBTAIN AND TRANSMIT TO ANY AUTHORIZED PERSON (AS DEFINED IN SUBSECTION (C)) INFORMATION AS TO THE WHEREABOUTS OF ANY ABSENT PARENT WHEN SUCH INFORMATION IS TO BE USED TO LOCATE SUCH PARENT FOR THE PURPOSE OF ENFORCING SUPPORT OBLIGATIONS AGAINST SUCH PARENT.

"(B) UPON REQUEST, FILED IN ACCORDANCE WITH SUBSECTION (D) OF ANY AUTHORIZED PERSON (AS DEFINED IN SUBSECTION (C)) FOR THE MOST RECENT ADDRESS AND PLACE OF LEMPLOYMENT OF ANY ABSENT PARENT, THE SECRETARY SHALL, NOTWITHSTANDING ANY OTHER PROVISION OF LAW, PROVIDE THROUGH THE PARENT LOCATOR SERVICE SUCH INFORMATION TO SUCH PERSON, IF SUCH INFORMATION--

"(1) IS CONTAINED IN ANY FILES OR RECORDS MAINTAINED BY THE SECRETARY OR BY THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE; OR

"(2) IS NOT CONTAINED IN SUCH FILES OR RECORDS, BUT CAN BE OBTAINED BY THE SECRETARY, UNDER THE AUTHORITY CONFERRED BY SUBSECTION (E), FROM ANY OTHER DEPARTMENT, AGENCY, OR INSTRUMENTALITY, OR THE UNITED STATES OR OF ANY STATE.

NO INFORMATION SHALL BE DISCLOSED TO ANY PERSON IF THE DISCLOSURE OF SUCH INFORMATION WOULD CONTRAVENE THE NATIONAL POLICY OR SECURITY INTERESTS OF THE UNITED STATES OR THE CONFIDENTIALITY OF CNSUS DATA. THE SECRETARY SHALL GIVE PRIORITY TO REQUESTS MADE BY ANY AUTHORIZED PERSON DESCRIBED IN SUBSECTION (C)(1).

"(C) AS USED IN SUBSECTION (A), THE TERM 'AUTHORIZED PERSON'

MEANS--

"(1) ANY AGENT OR ATTORNEY OF ANY STATE HAVING IN EFFECT A PLAN APPROVED UNDER THIS PART, WHO HAS THE DUTY OR AUTHORITY UNDER SUCH PLANS TO SEEK TO RECOVER ANY AMOUNTS OWED AS CHILD SUPPORT (INCLUDING, WHEN AUTHORIZED UNDER THE STATE PLAN, ANY OFFICIAL OF A POLITICAL SUBDIVISION);

"(2) THE COURT WHICH HAS AUTHORITY TO ISSUE AN ORDER AGAINST AN ABSENT PARENT FOR THE SUPPORT AND MAINTENANCE OF A CHILD, OR ANY AGENT OF SUCH COURT; AND

"(3) THE RESIDENT PARENT, LEGAL GUARDIAN, ATTORNEY, OR AGENT OF A CHILD (OTHER THAN A CHILD RECEIVING AID UNDER PART A OF THIS TITLE) (AS DETERMINED BY REGULATIONS PRESCRIBED BY THE SECRETARY) WITHOUT REGARD TO THE EXISTENCE OF A COURT ORDER AGANIST AN ABSENT PARENT WHO HAS A DUTY TO SUPPORT AND MAINTAIN ANY SUCH CHILD.

"(D) A REQUEST FOR INFORMATION UNDER THIS SECTION SHALL BE FILED IN SUCH MANNER AND FORM AS THE SECRETARY SHALL BY REGULATION PRESCRIBE AND SHALL BE ACCOMPANIED OR SUPPORTED BY SUCH DOCUMENTS AS THE SECRETARY MAY DETERMINE TO BE NECESSARY.

"(E)(1) WHENEVER THE SECRETARY RECEIVES A REQUEST SUBMITTED UNDER SUBSECTION (B) WHICH HE IS REASONABLY SATISFIED MEETS THE CRITERIA ESTABLISHED BY SUBSECTIONS (A), AND (C), HE SHALL PROMPTLY UNDERTAKE TO PROVIDE THE INFORMATION REQUESTED FROM THE FILES AND RECORDS MAINTAINED BY ANY OF THE DEPARTMENTS, AGENCIES, OR INSTRUMENTALITIES OF THE UNITED STATES OR OF ANY STATE.

"(2) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHENEVER THE INDIVIDUAL WHO IS THE HEAD OF ANY DEPARTMENT, AGENCY, OR INSTRUMENTALITY OF THE UNITED STATES RECEIVES A REQUEST FROM THE SECRETARY FOR INFORMATION AUTHORIZED TO BE PROVIDED BY THE SECRETARY UNDER THIS SECTION, SUCH INDIVIDUAL SHALL PROMPTLY CAUSE A SEARCH TO BE MADE OF THE FILES AND RECORDS MAINTAINED BY SUCH DEPARTMENT, AGENCY, OR INSTRUMENTALITY WITH A VIEW TO DETERMINING WHETHER THE INFORMATION REQUESTED IS CONTAINED IN ANY SUCH FILES OR RECORDS. IF SUCH SEARCH DISCLOSES THE INFORMATION REQUESTED, SUCH INDIVIDUAL SHALL IMMEDIATELY TRANSMIT SUCH INFORMATION TO THE SECRETARY, EXCEPT THAT IF ANY INFORMATION IS OBTAINED THE DISCLOSURE OF WHICH WOULD CONTRAVENE NATIONAL POLICY OR SECURITY INTERESTS OF THE UNITED STATES OR THE CONFIDENTIALITY OF CENSUS DATA, SUCH INFORMATION SHALL NOT BE TRANSMITTED AND SUCH INDIVIDUAL SHALL IMMEDIATELY NOTIFY THE SECRETARY. IF SUCH SEARCH FAILS TO DISCLOSE THE INFORMATION REQUESTED, SUCH INDIVIDUAL SHALL IMMEDIATELY SO NOTIFY THE SECRETARY. THE COSTS INCURRED BY ANY SUCH DEPARTMENT, AGENCY, OR INSTRUMENTALITY OF THE UNITED STATES OR OF ANY STATE IN PROVIDING SUCH INFORMATION TO THE SECRETARY SHALL BE REIMBURSED BY HIM. WHENEVER SUCH SERVICES ARE FURNISHED TO AN INDIVIDUAL SPECIFIED IN SUBSECTION (C)(3), A FEE SHALL BE CHARGED SUCH INDIVIDUAL. THE FEE SO CHARGED SHALL BE USED TO REIMBURSE THE SECRETARY OR HIS DELEGATE FOR THE EXPENSE OF PROVIDING SUCH SERVICES.

"(F) THE SECRETARY, IN CARRYING OUT HIS DUTIES AND FUNCTIONS UNDER THIS SECTION, SHALL ENTER INTO ARRANGEMENTS WITH STATE AGENCIES ADMINISTERING STATE PLANS APPROVED UNDER THIS PART FOR SUCH STATE AGENCIES TO ACCEPT FROM RESIDENT PARENTS, LEGAL GUARDIANS, OR AGENTS OF A CHILD DESCRIBED IN SUBSECTION (C)(3) AND, AFTER DETERMINING THAT THE ABSENT PARENT CANNOT BE LOCATED THROUGH THE PROCEDURES UNDER THE CONTROL OF SUCH STATE AGENCIES, TO TRANSMIT TO THE SECRETARY REQUESTS FOR INFORMATION WITH REGARD TO THE WHEREABOUTS OF ABSENT PARENTS AND OTHERWISE TO COOPERATE WITH THE SECRETARY IN CARRYING OUT THE PURPOSES OF THIS SECTION.

"STATE PLAN FOR CHILD SUPPORT //42 USC 654.//

"SEC. 454. A STATE PLAN FOR CHILD SUPPORT MUST--

"(1) PROVIDE THAT IT SHALL BE IN EFFECT IN ALL POLITICAL SUBDIVISIONS OF THE STATE;

"(2) PROVIDE FOR FINANCIAL PARTICIPATION BY THE STATE;

"(3) PROVIDE FOR THE ESTABLISHMENT OR DESIGNATION OF A SINGLE AND SEPARATE ORGANIZATIONAL UNIT, WHICH MEETS SUCH STAFFING AND ORGANIZATIONAL REQUIREMENTS AS THE SECRETARY MAY BY REGULATION PRESCRIBE, WITHIN THE STATE TO ADMINISTER THE PLAN;

"(4) PROVIDE THAT STATE WILL UNDERTAKE--

"(A) IN THE CASE OF A CHILD BORN OUT OF WEDLOCK WITH RESPECT TO WHOM AN ASSIGNMENT UNDER SECTION 402(A)(26) OF THIS TITLE IS EFFECTIVE, TO EXTABLISH THE PATERNITY OF SUCH CHILD, AND //42 USC 602.//

"(B) IN THE CASE OF ANY CHILD WITH RESPECT TO WHOM SUCH ASSIGNMENT IS EVVECTIVE, TO SECURE SUPPORT FOR SUCH CHILD FROM HIS PARENT (OR FROM ANY OTHER PERSON LEGALLY LIABLE FOR SUCH SUPPORT), UTILIZING ANY RECIPROCAL ARRANGEMENTS ADOPTED WITH OTHER STATES, EXCEPT THAT WHEN SUCH ARRANGEMENTS AND OTHER MEANS HAVE PROVEN INEFFECTIVE, THE STATE MAY UTILIZE THE FEDERAL COURTS TO OBTAIN OR ENFORCE COURT ORDERS FOR SUPPORT;

"(5) PROVIDE THAT, IN ANY CASE IN WHICH CHILD SUPPORT PAYMENTS ARE COLLECTED FOR A CHILD WITH RESPECT TO WHOM AN ASSIGNMENT UNDER SECTION 402(A(26) IS EFFECTIVE, SUCH PAYMENTS SHALL BE MADE TO THE STATE FOR DISTRIBUTION PURSUANT TO SECTION 457 //POST, P. 2356.// AND SHALL NOT BE PAID DIRECTLY TO THE FAMILY EXCEPT THAT THIS PARAGRAPH SHALL NOT APPLY TO SUCH PAYMENTS (EXCEPT AS PROVIDED IN SECTION 457(C)) FOR ANY MONTH IN WHICH THE AMOUNT COLLECTED IS SUFFICIENT TO MAKE SUCH FAMILY INELIGIBLE FOR ASSISTANCE UNDER THE STATE PLAN APPROVED UNDER PART A;

"(6) PROVIDE THAT (A) THE CHILD SUPPORT COLLECTION OR PATERNITY DETERMINATION SERVICES ESTABLISHED UNDER THE PLAN SHALL BE MADE AVAILABLE TO ANY INDIVIDUAL NOT OTHERWISE ELIGIBLE FOR SUCH SERVICES UPON APPLICATION FILED BY SUCH INDIVIDUAL WITH THE STATE, (B) AN APPLICATION FEE FOR FURNISHING SUCH SERVICES MAY BE IMPOSED, EXCEPT THAT THE AMOUNT OF ANY SUCH APPLICATION FEE SHALL BE REASONABLE, AS DETERMINED UNDER REGULATIONS OF THE SECRETARY, AND (C) ANY COSTS IN EXCESS OF THE FEE SO IMPOSED MAY BE COLLECTED FROM SUCH INDIVIDUAL BY DEDUCTING SUCH COSTS FROM THE AMOUNT OF ANY RECOVERY MADE;

"(7) PROVIDE FOR ENTERING INTO COOPERATIVE ARRANGEMENTS WITH APPROPRIATE COURTS AND LAW ENFORCEMENT OFFICIALS (A) TO ASSIST THE AGENCY ADMINISTERING THE PLAN, INCLUDING THE ENTERING INTO OF FINANCIAL ARRANGEMENTS WITH SUCH COURTS AND OFFICIALS IN ORDER TO ASSURE OPTIMUM RESULTS UNDER SUCH PROGRAM, AND (B) WITH RESPECT TO ANY OTHER MATTERS OF COMMON CONCERN TO SUCH COURTS OR OFFICIALS AND THE AGENCY ADMINISTERING THE PLAN;

"(8) PROVIDE THAT THE AGENCY ADMINISTERING THE PLAN WILL ESTABLISH A SERVICE TO LOCATE ABSENT PARENTS UTILIZING--

"(A) ALL SOURCES OF INFORMATION AND AVAILABLE RECORDS, AND

"(B) THE PARENT LOCATOR SERVICE IN THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE;

"(9) PROVIDE THAT THE STATE WILL, IN ACCORDANCE WITH STANDARDS PRESCRIBED BY THE SECRETARY, COOPERATE WITH ANY OTHER STATE--

"(A) IN ESTABLISHING PATERNITY, IF NECESSARY,

"(B) IN LOCATING AN ABSENT PARENT RESIDING IN THE STATE (WHETHER OR NOT PERMANENTLY) AGAINST WHOM ANY ACTION IS BEING TAKEN UNDER A PROGRAM ESTABLISHED UNDER A PLAN APPROVED UNDER THIS PART IN ANOTHER STATE,

"(C) IN SECURING COMPLIANCE BY AN ABSENT PARENT RESIDING IN SUCH STATE (WHETHER OR NOT PERMANENTLY) WITH AN ORDER ISSUED BY A COURT OF COMPETENT JURISDICTION AGAINST SUCH PARENT FOR THE SUPPORT AND MAINTENANCE OF A CHILD OR CHILDREN OF SUCH PARENT WITH RESPECT TO WHOM AID IS BEING PROVIDED UNDER THE PLAN OF SUCH OTHER STATE, AND

"(D) IN CARRYING OUT OTHER FUNCTIONS REQUIRED UNDER A PLAN APPROVED UNDER THIS PART;

"(10) PROVIDE THAT THE STATE WILL MAINTAIN A FULL RECORD OF COLLECTIONS AND DISBURSEMENTS MADE UNDER THE PLAN AND HAVE AN ADEQUATE REPORTING SYSTEM;

"(11) PROVIDE THAT AMOUNTS COLLECTED AS CHILD SUPPORT SHALL BE DISTRIBUTED AS PROVIDED IN SECTION 457; //POST, P. 2356.//

"(12) PROVIDE THAT ANY PAYMENT REQUIRED TO BE MADE UNDER SECTION 456 OR 457 TO A FAMILY SHALL BE MADE TO THE RESIDENT PARENT, LEGAL GUARDIAN, OR CARETAKER RELATIVE HAVING CUSTODY OF OR RESPONSIBILITY FOR THE CHILD OR CHILDREN; AND

"(13) PROVIDE THAT THE STATE WILL COMPLY WITH SUCH OTHER REQUIREMENTS AND STANDARDS AS THE SECRETARY DETERMINES TO BE NECESSARY TO THE ESTABLISHMENT OF AN EFFECTIVE PROGRAM FOR LOCATING ABSENT PARENTS, ESTABLISHING PATERNITY, OBTAINING SUPPORT ORDERS, AND COLLECTING SUPPORT PAYMENTS.

"PAYMENTS TO STATES //42 USC 655.//

"SEC. 455. FROM THE SUMS APPROPRIATED THEREFOR, THE SECRETARY SHALL PAY TO EACH STATE FOR EACH QUARTER, BEGINNING WITH THE QUARTER COMMENCING JULY 1, 1975, AN AMOUNT EQUAL TO 75 PERCENT OF THE TOTAL AMOUNTS EXPENDED BY SUCH STATE DURING SUCH QUARTER FOR THE OPERATION OF THE PLAN APPROVED UNDER SECTION 454 //ANTE, P. 2354.// ESCEPT THAT NO AMOUNT SHALL BE PAID TO ANY STATE ON ACCOUNT OF FURNISHING COLLECTION SERVICES (OTHER THAN PARENT LOCATOR SERVICES) TO INDIVIDUALS UNDER SECTION 454(6) DURING ANY PERIOD BEGINNING AFTER JUNE 30, 1976.

"SUPPORT OBLIGATIONS //42 USC 656.//

"SEC. 456. (A) THE SUPPORT RIGHTS ASSIGNED TO THE STATE UNDER SECTION 402(A)(26) SHALL CONSTITUTE AN OBLIGATION OWED TO SUCH STATE BY THE INDIVIDUAL RESPONSIBLE FOR PROVIDING SUCH SUPPORT. SUCH OBLIGATION SHALL BE DEEMED FOR COLLECTION PURPOSES TO BE COLLECTIBLE UNDER ALL APPLICABLE STATE AND LOCAL PROCESSES. //42 USC 602.//

"(1) THE AMOUNT OF SUCH OBLIGATION SHALL BE--

"(A) THE AMOUNT SPECIFIED IN A COURT ORDER WHICH COVERS THE ASSIGNED SUPPORT RIGHTS, OR

"(B) IF THERE IS NO COURT ORDER, AN AMOUNT DETERMINED BY THE STATE IN ACCORDANCE WITH A FORMULA APPROVED BY THE SECRETARY, AND

"(2) ANY AMOUNTS COLLECTED FROM AN ABSENT PARENT UNDER THE PLAN SHALL REDUCE, DOLLAR FOR DOLLAR, THE AMOUNT OF HIS OBLIGATION UNDER PARAGRAPHS (1)(A) AND (B)

"(B) A DEBT WHICH IS A CHILD SUPPORT OBLIGATION ASSIGNED TO A STATE UNDER SECTION 402(A)(26) IS NOT RELEASED BY A DISCHARGE IN BANKRUPTCY UNDER THE BANKRUPTCY ACT. //11 USC 1 NOTE.//

"DISTRIBUTION OF PROCEEDS //42 USC 657.//

"SEC. 457. (A) THE AMOUNTS COLLECTED AS CHILD SUPPORT BY A STATE PURSUANT TO A PLAN APPROVED UNDER THIS PART DURING THE 15 MONTHS BEGINNING JULY 1, 1975, SHALL BE DISTRIBUTED AS FOLLOWS:

"(1) 40 PER CENTUM OF THE FIRST $50 OF SUCH AMOUNTS AS ARE COLLECTED PERIODICALLY WHICH REPRESENT MONTHLY SUPPORT PAYMENTS SHALL BE PAID TO THE FAMILY WITHOUT ANY DECREASE IN THE AMOUNT PAID AS ASSISTANCE TO SUCH FAMILY DURING SUCH MONTH;

"(2) SUCH AMOUNTS AS ARE COLLECTED PERIODICALLY WHICH ARE IN EXCESS OF ANY AMOUNT PAID TO THE FAMILY UNDER PARAGRAPH (1) WHICH REPRESENT MONTHLY SUPPORT PAYMENTS SHALL BE RETAINED BY THE STATE TO REIMBURSE IT FOR ASSISTANCE PAYMENTS TO THE FAMILY DURING SUCH PERIOD (WITH APPROPRIATE REIMBURSEMENT OF THE FEDERAL GOVERNMENT TO THE EXTENT OF ITS PARTICIPATION IN THE FINANCING);

"(3) SUCH AMOUNTS AS ARE IN EXCESS OF AMOUNTS RETAINED BY THE STATE UNDER PARAGRAPH (2) AND ARE NOT IN EXCESS OF THE AMOUNT REQUIRED TO BE PAID DURING SUCH PERIOD TO THE FAMILY BY A COURT ORDER SHALL BE PAID TO THE FAMILY; AND

"(4) SUCH AMOUNTS AS ARE IN EXCESS OF AMOUNTS REQUIRED TO BE DISTRIBUTED UNDER PARAGRAPHS (1), (2), AND (3) SHALL BE (A) RETAINED BY THE STATE (WITH APPROPRIATE REIMBURSEMENT OF THE FEDERAL GOVERNMENT TO THE EXTENT OF ITS PARTICIPATION IN THE FINANCING) AS REIMBURSEMENT FOR ANY PAST ASSISTANCE PAYMENTS MADE TO THE FAMILY FOR WHICH THE STATE HAS NOT BEEN REIMBURSED OR (B) IF NO ASSISTANCE PAYMENTS HAVE BEEN MADE BY THE STATE WHICH HAVE NOT BEEN REPAID, SUCH AMOUNTS SHALL BE PAID TO THE FAMILY.

"(B) THE AMOUNTS COLLECTED AS CHILD SUPPORT BY A STATE PURSUANT TO A PLAN APPROVED UNDER THIS PART DURING ANY FISCAL YEAR BEGINNING AFTER SEPTEMBER 30, 1976, SHALL BE DISTRIBUTED AS FOLLOWS:

"(1) SUCH AMOUNTS AS ARE COLLECTED PERIODICALLY WHICH REPRESENT MONTHLY SUPPORT PAYMENTS SHALL BE RETAINED BY THE STATE TO REIMBURSE IT FOR ASSISTANCE PAYMENTS TO THE FAMILY DURING SUCH PERIOD (WITH APPROPRIATE REIMBURSEMENT OF THE FEDERAL GOVERNMENT TO THE EXTENT OF ITS PARTICIPATION IN THE FINANCING);

"(2) SUCH AMOUNTS AS ARE IN EXCESS OF AMOUNTS RETAINED BY THE STATE UNDER PARAGRAPH (1) AND ARE NOT IN EXCESS OF THE AMOUNT REQUIRED TO BE PAID DURING SUCH PERIOD TO THE FAMILY BY A COURT ORDER SHALL BE PAID TO THE FAMILY; AND

"(3) SUCH AMOUNTS AS ARE IN EXCESS OF AMOUNTS REQUIRED TO BE DISTRIBUTED UNDER PARAGRAPHS (1) AND (2) SHALL BE (A) RETAINED BY THE STATE (WITH APPROPRIATE REIMBURSEMENT OF THE FEDERAL GOVERNMENT TO THE EXTENT OF ITS PARTICIPATION IN THE FINANCING) AS REIMBURSEMENT FOR ANY PAST ASSISTANCE PAYMENTS MADE TO THE FAMILY FOR WHICH THE STATE HAS NOT BEEN REIMBURSED OR (B) IF NO ASSISTANCE PAYMENTS HAVE BEEN MADE BY THE STATE WHICH HAVE NOT BEEN REPAID, SUCH AMOUNTS SHALL BE PAID TO THE FAMILY.

"(C) WHENEVER A FAMILY FOR WHOM CHILD SUPPORT PAYMENTS HAVE BEEN COLLECTED AND DISTRIBUTED UNDER THE PLAN CEASES TO RECEIVE ASSISTANCE UNDER PART A OF THIS TITLE, THE STATE MAY--

"(1) CONTINUE TO COLLECT SUCH SUPPORT PAYMNENTS FROM THE ABSENT PARENT FOR A PERIOD OF NOT TO EXCEED THREE MONTHS FROM THE MONTH FOLLOWING THE MONTH IN WHICH SUCH FAMILY CEASED TO RECEIVE ASSISTANCE UNDER PART A OF THIS TITLE, AND PAY ALL AMOUNTS SO COLLECTED TO THE FAMILY; AND

"(2) AT THE END OF SUCH THREE-MONTH PERIOD, IF THE STATE IS AUTHORIZED TO DO SO BY THE INDIVIDUAL ON WHOSE BEHALF THE COLLECTION WILL BE MADE, CONTINUE TO COLLECT SUCH SUPPORT PAYMENTS FROM THE ABSENT PARENT AND PAY THE NET AMOUNT OF ANY AMOUNT SO COLLECTED TO THE FAMILY AFTER DEDUCTING ANY COSTS INCURRED IN MAKING THE COLLECTION FROM THE AMOUNT OF ANY RECOVERY MADE.

"INCENTIVE PAYMENT TO LOCALITIES //42 USC 658.//

"SEC. 458. (A) WHEN A POLITICAL SUBDIVISION OF A STATE MAKES, FOR THE STATE OF WHICH IT IS A POLITICAL SUBDIVISION, OR ONE STATE MAKES, FOR ANOTHER STATE, THE ENFORCEMENT AND COLLECTION OF THE SUPPORT RIGHTS ASSIGNED UNDER SECTION 402(A)(26) //42 USC 602.// (EITHER WITHIN OR OUTSIDE OF SUCH STATE), THERE SHALL BE PAID TO SUCH POLITICAL SUBDIVISION OR SUCH OTHER STATE FROM AMOUNTS WHICH WOULD OTHERWISE REPRESENT THE FEDERAL SHARE OF ASSISTANCE TO THE FAMILY OF THE ABSENT PARENT--

"(1) AN AMOUNT EQUAL TO 25 PER CENTUM OF ANY AMOUNT COLLECTED (AND REQUIRED TO BE DISTRIBUTED AS PROVIDED IN SECTION 457 TO REDUCE OR REPAY ASSISTANCE PAYMENTS) WHICH IS ATTRIBUTABLE TO THE SUPPORT OBLIGATION OWED FOR 12 MONTHS; AND

"(2) AN AMOUNT EQUAL TO 10 PER CENTUM OF ANY AMOUNT COLLECTED (AND REQUIRED TO BE DISTRIBUTED AS PROVIDED IN SECTION 457 TO REDUCE OR REPAY ASSISTANCE PAYMENTS) WHICH IS ATTRIBUTABLE TO THE SUPPORT OBLIGATION OWED FOR ANY MONTH AFTER THE FIRST TWELVE MONTHS FOR WHICH SUCH COLLECTIONS ARE MADE.

"(B) WHERE MORE THAN ONE JURISDICTION IS INVOLVED IN SUCH ENFORCEMENT OR COLLECTION, THE AMOUNT OF THE INCENTIVE PAYMENT DETERMINED UNDER PARAGRAPHS (1) AND (2) OF SUBSECTION (A) SHALL BE ALLOCATED AMONG THE JURISDICTIONS IN A MANNER TO BE PRESCRIBED BY THE SECRETARY.

"CONSENT BY THE UNITED STATES TO GARNISHMENT AND SIMILAR PROCEEDINGGS FOR ENFORCEMENT OF CHILD SUPPORT AND ALIMONY OBLIGATIONS //42 USC 659.//

"SEC. 459. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, EFFECTIVE JANUARY 1, 1975, MONEYS (THE ENTITLEMENT TO WHICH IS BASED UPON REMUNERATION FOR EMPLOYMENT) DUE FROM, OR PAYABLE BY, THE UNITED STATES (INCLUDING ANY AGENCY OR INSTRUMENTALITY THEREOF AND ANY WHOLLY OWNED FEDERAL CORPORATION) TO ANY INDIVIDUAL, INCLUDING MEMBERS OF THE ARMED SERVICES, SHALL BE SUBJECT, IN LIKE MANNER AND TO THE SAME EXTENT AS IF THE UNITED STATES WERE A PRIVATE PERSON, TO LEGAL PROCESS BROUGHT FOR THE ENFORCEMENT, AGAINST SUCH INDIVIDUAL OF HIS LEGAL OBLIGATIONS TO PROVIDE CHILD SUPPORT OR MAKE ALIMONY PAYMENTS.

"CIVIL ACTIONS TO ENFORCE CHILD SUPPORT OBLIGATIONS

//42 USC 660.//

"SEC. 460. THE DISTRICT COURTS OF THE UNITED STATES SHALL HAVE JURISDICTION, WITHOUT REGARD TO ANY AMOUNT IN CONTROVERSY, TO HEAR AND DETERMINE ANY CIVIL ACTION CERTIFIED BY THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE UNDER SECTION 452(A)(8) OF THIS ACT. //ANTE, P. 2351.// A CIVIL ACTION UNDER THIS SECTION MAY BE BROUGHT IN ANY JUDICIAL DISTRICT IN WHICH THE CLAIM AROSE, THE PLAINTIFF RESIDES, OR THE DEFENDANT RESIDES."

COLLECTION OF CHILD SUPPORT OBLIGATIONS

(B)(1) SUBCHAPTER A OF CHAPTER 64 OF THE INTERNAL REVENUE CODE OF 1954 (RELATING TO COLLECTION OF TAXES) IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SECTION:

"SEC. 6305. COLLECTION OF CERTAIN LIABILITY. //26 USC 6305.//

"(A) IN GENERAL.--UPON RECEIVING A CERTIFICATION FROM THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE, UNDER SECTION 452(B) OF THE SOCIAL SUCURITY ACT WITH RESPECT TO ANY INDIVIDUAL, THE SECRETARY OR HIS DELEGATE SHALL ASSESS AND COLLECT THE AMOUNT CERTIFIED BY THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE, IN THE SAME MANNER, WITH THE SAME POWERS, AND (EXCEPT AS PROVIDED IN THIS SECTION) SUBJECT TO THE SAME LIMITATIONS AS IF SUCH AMOUNT WERE A TAX IMPOSED BY SUBTITLE C THE COLLECTION OF WHICH WOULD BE JEOPARDIZED BY DELAY, EXCEPT THAT--

"(1) NO INTEREST OR PENALTIES SHALL BE ASSESSED OR COLLECTED,

"(2) FOR SUCH PURPOSES, PARAGRAPHS (4), (6), AND (8) OF SECTION 6334(A) (RELATING TO PROPERTY EXEMPT FROM LEVY) SHALL NOT APPLY, //26 USC 6334.//

"(3) THERE SHALL BE EXEMPT FROM LEVY SO MUCH OF THE SALARY, WAGES, OR OTHER INCOME OF AN INDIVIDUAL AS IS BEING WITHHELD THEREFROM IN GARNISHMENT PURSUANT TO A JUDGMENT ENTERED BY A COURT OF COMPETENT JURISDICTION FOR THE SUPPORT OF HIS MINOR CHILDREN, AND

"(4) IN THE CASE OF THE FIRST ASSESSMENT AGAINST AN INDIVIDUAL FOR DELINQUENCY UNDER A COURT ORDER AGAINST SUCH INDIVIDUAL FOR A PARTICULAR PERSON OR PERSONS, THE COLLECTION SHALL BE STAYED FOR A PERIOD OF 60 DAYS IMMEDIATELY FOLLOWING NOTICE AND DEMAND AS DESCRIBED IN SECTION 6303. //26 USC 6303.

"(B) REVIEW OF ASSESSMENTS AND COLLECTIONS.--NO COURT OF THE UNITED STATES, WHETHER ESTABLISHED UNDER ARTICLE I OR ARTICLE III OF THE CONSTITUTION, SHALL HAVE JURISDICTION OF ANY ACTION, WHETHER LEGAL OR EQUITABLE, BROUGHT TO RESTRAIN OR REVIEW THE ASSESSMENT AND COLLECTION OF AMOUNTS BY THE SECRETARY OR HIS DELEGATE UNDER SUBSECTION (A), NOR SHALL ANY SUCH ASSESSMENT AND COLLECTION BE SUBJECT TO REVIEW BY THE SECRETARY OR HIS DELEGATE IN ANY PROCEEDING. THIS SUBSECTION DOES NOT PRECLUDE ANY LEGAL, EQUITABLE, OR ADMINISTRATIVE ACTION AGAINST THE STATE BY AN INDIVIDUAL IN ANY STATE COURT OR BEFORE ANY STATE AGENCY TO DETERMINE HIS LIABILITY FOR ANY AMOUNT ASSESSED AGAINST HIM AND COLLECTED, OR TO RECOVER ANY SUCH AMOUNT COLLECTED FROM HIM, UNDER THIS SECTION.". //USC PREC. TITLE 1.//

(2) THE TABLE OF SECTIONS FOR SUCH SUBCHAPTER IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW ITEM:

"SEC. 6305. COLLECTION OF CERTAIN LIABILITY.".

AMENDMENTS TO PART A OF TITLE IV

(C)(1) NOTWITHSTANDING THE PROVISIONS OF SECTION 402(A) OF THE SOCIAL SUCURITY ACT, //42 USC 602 NOTE.// IN ADDITION TO THE AMOUNTS REQUIRED TO BE DISREGARDED UNDER CLAUSE (8)(A) OF SUCH SECTION, THERE IS IMPOSED THE REQUIREMENT (AND THE STATE PLAN SHALL BE DEEMED TO INCLUDE THE REQUIREMENT) THAT FOR THE 15 MONTHS BEGINNING JULY 1, 1975, IN MAKING THE DETERMINATION UNDER CLAUSE (7), THE STATE AGENCY SHALL WITH RESPECT TO ANY MONTH IN SUCH YEAR AND IN ADDITION TO THE AMOUNTS REQUIRED TO BE DISREGARDED UNDER CLAUSE (8)(A), DISREGARD AMOUNTS PAYABLE UNDER SECTION 457(A)(1).

(2) SECTION 402(A)(9) IS AMENDED TO READ AS FOLLOWS: //42 USC 602.//

"(9) PROVIDE SAFEGUARDS WHICH PERMIT THE USE OR DISCLOSURE OF INFORMATION CONCERNING APPLICANTS OR RECIPIENTS ONLY TO (A) PUBLIC OFFICIALS WHO REQUIRE SUCH INFORMATION IN CONNECTION WITH THEIR OFFICIAL DUTIES, OR (B) OTHER PERSONS FOR PURPOSES DIRECTLY CONNECTED WITH THE ADMINISTRATION OF AID TO FAMILIES WITH DEPENDENT CHILDREN;"

(3) SECTION 402(A)(10) IS AMENDED BY INSERTING IMMEDIATELY BEFORE "BE FURNISHED" THE FOLLOWING: ", SUBJECT TO PARAGRAPHS (25) AND (26) 8".

(4) SECTION 402(A)(11) IS AMENDED TO READ AS FOLLOWS:

"(11) PROVIDE FOR PROMPT NOTICE (INCLUDING THE TRANSMITTAL OF ALL RELEVANT INFORMATION) TO THE STATE CHILD SUPPORT COLLECTION AGENCY (ESTABLISHED PURSUANT TO PART D OF THIS TITLE) OF THE FURNISHING OF AID TO FAMILIES WITH DEPENDENT CHILDREN WITH RESPECT TO A CHILD WHO HAS BEEN DESERTED OR ABANDONED BY A PARENT (INCLUDING A CHILD BORN OUT OF WEDLOCH WITHOUT REGARD TO WHETHER THE PATERNITY OF SUCH CHILD HAS BEEN ESTABLISHED);".

(5) SECTION 402(A) IS FURTHER AMENDED--

(A) BY STRIKING OUT "AND" AT THE END OF PARAGRAPH (23);

(B) BY INSERTING IMMEDIATELY BEFORE THE FIRST WORD IN PARAGRAPH (24) THE FOLLOWING: "PROVIDE THAT"; AND

(C) BY STRIKING OUT THE PERIOD AT THE END OF PARAGRAPH (24) AND INSERTING IN LIEU THEREOF A SEMICOLON AND THE FOLLOWING:

"(25) PROVIDE (A) THAT, AS A CONDITION OF ELIGIBILITY UNDER THE PLAN, EACH APPLICANT FOR OR RECIPIENT OF AID SHALL FURNISH TO THE STATE AGENCY HIS SOCIAL SECURITY ACCOUNT NUMBER (OR NUMBERS, IF HE HAS MORE THAN ONE SUCH NUMBER), AND (B) THAT SUCH STATE AGENCY SHALL UTILIZE SUCH ACCOUNT NUMBERS, IN ADDITION TO ANY OTHER MEANS OF IDENTIFICATION IT MAY DETERMINE TO EMPLOY IN THE ADMINISTRATION OF SUCH PLAN;

"(26) PROVIDE THAT, AS A CONDITION OF ELIGIBILITY FOR AID, EACH APPLICANT OR RECIPIENT WILL BE REQUIRED--

"(A) TO ASSIGN THE STATE ANY RIGHTS TO SUPPORT FROM ANY OTHER PERSON SUCH APPLICANT MAY HAVE (I) IN HIS OWN BEHALF OR IN BEHALF OF ANY OTHER FAMILY MEMBER FOR WHOM THE APPLICANT IS APPLYING FOR OR RECEIVING AID, AND (II) WHICH HAVE ACCRUED AT THE TIME SUCH ASSIGNMENT IS EXECUTED,

"(B) TO COOPERATE WITH THE STATE (I) IN ESTABLISHING THE PATERNITY OF A CHILD BORN OUT OF WEDLOCK WITH RESPECT TO WHOM AID IS CLAIMED, AND (II) IN OBTAINING SUPPORT PAYMENTS FOR SUCH APPLICANT AND FOR A CHILD WITH RESPECT TO WHOM SUCH AID IS CLAIMED, OR IN OBTAINING ANY OTHER PAYMENTS OR PROPERTY DUE SUCH APPLICANT OR SUCH CHILD AND THAT, IF THE RELATIVE WITH WHOM A CHILD IS LIVING IS FOUND TO BE INELIGIBLE BECAUSE OF FAILURE TO COMPLY WITH THE REQUIREMENTS OF SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH, ANY AID FOR WHICH SUCH CHILD IS ELIGIBLE WILL BE PROVIDED IN THE FORM OF PROTECTIVE PAYMENTS AS DESCRIBED IN SECTION 406(B)(2) (WITHOUT REGARD TO SUBPARAGRAPHS (A) THROUGH (E) OF SUCH SECTION); AND //42 USC 606.//

"(27) PROVIDE, THAT THE STATES HAVE IN EFFECT A PLAN APPROVED UNDER PART D AND OPERATE A CHILD SUPPORT PROGRAM IN CONFORMITY WITH SUCH PLAN.".

(6)(A) SECTION 403 OF THE SOCIAL SECURITY ACT IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SUBSECTION: //42 USC 603.//

"(H) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, THE AMOUNT PAYABLE TO ANY STATE UNDER THIS PART FOR QUARTERS IN A FISCAL YEAR SHALL WITH RESPECT TO QUARTERS BEGINNING AFTER DECEMBER 31, 1976, BE REDUCED BY 5 PER CENTUM OF SUCH AMOUNT IF SUCH STATE IS FOUND BY THE SECRETARY AS THE RESULT OF THE ANNUAL AUDIT TO HAVE FAILED TO HAVE AN EFFECTIVE PROGRAM MEETING THE REQUIREMENTS OF SECTION 402(A)(27) //42 USC 602.// IN ANY FISCAL YEAR BEGINNING AFTER SEPTEMBER 30, 1976 (BUT, IN THE CASE OF THE FISCAL YEAR BEGINNING OCTOBER 1, 1976, ONLY CONSIDERING THE SECOND, THIRD, AND FOURTH QUARTERS THEREOF).".

(B) SECTION 404 OF SUCH ACT IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SUBSECTIONS: //42 USC 604.//

"(C) NO STATE SHALL BE FOUND, PRIOR TO JANUARY 1, 1977, TO HAVE FAILED SUBSTANTIALLY TO COMPLY WITH THE REQUIREMENTS OF SECTION 402(A)( 27) IF, IN THE JUDGMENT OF THE SECRETARY, SUCH STATE IS MAKING A GOOD FAITH EFFORT TO IMPLEMENT THE PROGRAM REQUIRED BY SUCH SECTION.

"(D) AFTER DECEMBER 31, 1976, IN THE CASE OF ANY STATE WHICH IS FOUND TO HAVE FAILED SUBSTANTIALLY TO COMPLY WITH THE REQUIREMENTS OF SECTION 402(A)(27), THE REDUCTION IN ANY AMOUNT PAYABLE TO SUCH STATE REQUIRED TO BE IMPOSED UNDER SECTION 403(H) SHALL BE IMPOSED IN LIEU OF ANY REDUCTION, WITH RESPECT TO SUCH FAILURE, WHICH WOULD OTHERWISE BE REQUIRED TO BE IMPOSED UNDER THIS SECTION."

(7) SECTION 406 OF THE SOCIAL SECURITY ACT IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SUBSECTION:

"(F) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (B), THE TERM 'AID TO FAMILIES WITH DEPENDENT CHILDREN' DOES NOT MEAN PAYMENTS WITH RESPECT TO A PARENT (OR OTHER INDIVIDUAL WHOSE NEEDS SUCH STATE DETERMINES SHOULD BE CONSIDERED IN DETERMINING THE NEED OF THE CHILD OR RELATIVE CLAIMING AID UNDER THE PLAN OF SUCH STATE APPROVED UNDER THIS PART) OF A CHILD WHO FAILS TO COOPERATE WITH ANY AGENCY OR OFFICIAL OF THE STATE IN OBTAINING SUCH SUPPORT PAYMENTS FOR SUCH CHILD. NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO MAKE AN OTHERWISE ELIGIBLE CHILD INELIGIBLE FOR PROTECTIVE PAYMENTS BECAUSE OF THE FAILURE OF SUCH PARENT (OR SUCH OTHER INDIVIDUAL) TO SO COOPERATE.".

(8) SECTION 402(A), (17), (18), (21), AND (22), AND SECTION 410 OF SUCH ACT ARE REPEALED. //42 USC 602, 610.//

CONFORMING AMENDMENTS TO TITLE XI

(D) SECTION 1106 OF SUCH ACT IS AMENDED-- //42 USC 1306.//

(1) BY STRIKING OUT THE PERIOD AT THE END OF THE FIRST SENTENCE OF SUBSECTION (A) AND INSERTING IN LIEU THEREOF THE FOLLOWING: "AND EXCEPT AS PROVIDED IN PART D OF TITLE IV OF THIS ACT."; //ANTE, P. 2351.//

(2) BY ADDING AT THE END OF SUBSECTION (B) THE FOLLOWING NEW SENTENCE: "NOTWITHSTANDING THE PRECEDING PROVISIONS OF THIS SUBSECTION, REQUESTS FOR INFORMATION MADE PURSUANT TO THE PROVISIONS OF PART D OF TITLE IV OF THIS ACT FOR THE PURPOSE OF USING FEDERAL RECORDS FOR LOCATING PARENTS SHALL BE COMPLIED WITH AND THE COST INCURRED IN PROVIDING SUCH INFORMATION SHALL BE PAID FOR AS PROVIDED IN SUCH PART D OF TITLE IV."; AND

(3) BY STRIKING OUT SUBSECTION (C).

AUTHORIZATION OF APPROPRIATIONS

(E) THERE ARE AUTHORIZED TO BE APPROPRIATED TO THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE SUCH SUMS AS MAY BE NECESSARY TO PLAN AND PREPARE FOR THE IMPLEMENTATION OF THE PROGRAM ESTABLISHED BY THIS SECTION. //42 USC 651 NOTE.//

EFFECTIVE DATE

(F) THE AMENDMENTS MADE BY THIS SECTION SHALL BECOME EFFECTIVE ON JULY 1, 1975, EXCEPT THAT SECTION 459 OF THE SOCIAL SECURITY ACT, AS ADDED BY SUBSECTION (A) //ANTE, P. 2357.// OF THIS SECTION SHALL BECOME EFFECTIVE ON JANUARY 1, 1975, AND SUBSECTION (E) OF THIS SECTION SHALL BECOME EFFECTIVE UPON THE DATE OF ENACTMENT OF THIS ACT. //42 USC 651.//

LEGISLATIVE HISTORY:

HOUSE REPORTS: NO. 93 - 1490 (COMM. ON WAYS AND MEANS) AND NO. 93 - 1643 (COMM. OF CONFERENCE).

SENATE REPORT NO. 93 - 1356 (COMM. ON FINANCE).

CONGRESSIONAL RECORD, VOL. 120 (1974):

DEC. 9, CONSIDERED AND PASSED HOUSE.

DEC. 17, CONSIDERED AND PASSED SENATE, AMENDED.

DEC. 20, HOUSE AND SENATE AGREED ON CONFERENCE REPORT.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, VOL. 11, NO. 2:

JAN. 4, PRESIDENTIAL STATEMENT.

PUBLIC LAW 93-646, 88 STAT. 2333, EXPORT-IMPORT BANK AMENDMENTS OF 1974.

93RD CONGRESS, H.R. 15977 JANUARY 4, 1975
AN ACT TO AMEND THE EXPORT-IMPORT BANK ACT OF 1945, AND FOR OTHER PURPOSES.

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED,

SHORT TITLE

SECTION 1. THIS ACT MAY BE CITED AS THE "EXPORT-IMPORT BANK AMENDMENTS OF 1974". //12 USC 635 NOTE.//

CHARTER AMENDMENTS

SEC. 2. SECTION 2(A)(1) OF THE EXPORT-IMPORT BANK ACT OF 1945 IS AMENDED-- //12 USC 635.//

(1) BY INSERTING IN THE THIRD SENTENCE IMMEDIATELY AFTER "OTHER EVIDENCES OF INDEBTEDNESS;" THE FOLLOWING: "TO GUARANTEE, INSURE, COINSURE, AND REINSURE AGAINST POLITICAL AND CREDIT RISKS OF LOSS;";

(2) BY INSERTING IN THE THIRD SENTENCE IMMEDIATELY AFTER "COMPETENT JURISDICTION;" THE FOLLOWING: "TO REPRESENT ITSELF OR TO CONTRACT FOR REPRESENTATION IN ALL LEGAL AND ARBITRAL PROCEEDINGS OUTSIDE THE UNITED STATES;"; AND

(3) BY INSERTING AFTER THE FOURTH SENTENCE THE FOLLOWING NEW SENTENCE: "THE BANK IS AUTHORIZED TO PUBLISH OR ARRANGE FOR THE PUBLICATION OF ANY DOCUMENTS, REPORTS, CONTRACTS, OR OTHER MATERIAL NECESSARY IN CONNECTION WITH OR IN FURTHERANCE OF ITS OBJECTS AND PURPOSES WITHOUT REGARD TO THE PROVISIONS OF SECTION 501 OF TITLE 44, UNITED STATES CODE, WHENEVER THE BANK DETERMINES THAT PUBLICATION IN ACCORDANCE WITH THE PROVISIONS OF SUCH SECTION WOULD NOT BE PRACTICABLE.".

POLICY

SEC. 3.L SECTION 2(B)(1) OF THE EXPORT-IMPORT BANK ACT OF 1945 IS AMENDED TO READ AS FOLLOWS: //12 USC 635.//

(B)(1)(A) IT IS THE POLICY OF THE UNITED STATES TO FOSTER EXPANSION OF EXPORTS OF GOODS AND RELATED SERVICES, THEREBY CONTRIBUTING TO THE PROMOTION AND MAINTENANCE OF HIGH LEVELS OF EMPLOYMENT AND REAL INCOME AND TO THE INCREASED DEVELOPMENT OF THE PRODUCTIVE RESOURCES OF THE UNITED STATES. TO MEET THIS OBJECTIVE, THE EXPORT-IMPORT BANK IS DIRECTED, IN THE EXERCISE OF ITS FUNCTIONS, TO PROVIDE GUARANTEES, INSURANCE, AND EXTENSIONS OF CREDIT AT RATES AND ON TERMS AND OTHER CONDITIONS WHICH ARE COMPETITIVE WITH THE GOVERNMENT-SUPPORTED RATES AND TERMS AND OTHER CONDITIONS AVAILABLE FOR THE FINANCING OF EXPORTS FROM THE PRINCIPAL COUNTRIES WHOSE EXPORTERS COMPETE WITH UNITED STATES EXPORTERS. THE BANK SHALL, IN COOPERATION WITH THE EXPORT FINANCING INSTRUMENTALITIES OF OTHER GOVERNMENTS, SEEK TO MINIMIZE COMPETITION IN GOVERNMENT-SUPPORTED EXPORT FINANCING. THE BANK SHALL, ON A SEMIANNUAL BASIS, REPORT TO THE APPROPRIATE COMMITTEES OF CONGRESS ITS ACTIONS IN COMPLYING WITH THESE DIRECTIVES. IN THIS REPORT THE BANK SHALL INCLUDE A SURVEY OF ALL OTHER MAJOR EXPORT-FINANCING FACILITIES AVAILABLE FROM OTHER GOVERNMENTS AND GOVERNMENT-RELATED AGENCIES THROUGH WHICH FOREIGN EXPORTERS COMPLETE WITH THE UNITED STATES EXPORTERS AND INDICATE IN SPECIFIC TERMS THE WAYS IN WHICH THE BANK'S RATES, TERMS, AND OTHER CONDITIONS COMPARE WITH THOSE OFFERED FROM SUCH OTHER GOVERNMENTS DIRECTLY OR INDIRECTLY. FURTHER, THE BANK SHALL AT THE SAME TIME SURVEY A REPRESENTATIVE NUMBER OF UNITED STATES EXPORTERS AND UNITED STATES COMMERCIAL LENDING INSTITUTIONS WHICH PROVIDE EXPORT CREDIT TO DETERMINE THEIR EXPERIENCE IN MEETING FINANCIAL COMPETITION FROM OTHER COUNTRIES WHOSE EXPORTERS COMPETE WITH UNITED STATES EXPORTERS. THE RESULTS OF THIS SURVEY SHALL BE INCLUDED AS PART OF THE SEMIANNUAL REPORT REQUIRED BY THIS SUBPARAGRAPH. TH BANK SHALL ALSO INCLUDE IN THE SEMIANNUAL REPORT A DESCRIPTION OF EACH LOAN BY THE BANK INVOLVING THE EXPORT OF ANY PRODUCT OR SERVICE RELATED TO THE PRODUCTION, REFINING OR TRANSPORTATION OF ANY TYPE OF ENERGY OR THE DEVELOPMENT OF ANY ENERGY RESOURCE WITH A STATEMENT ASSESSING THE IMPACT, IF ANY, ON THE AVAILABILITY OF SUCH PRODUCTS, SERVICES, OR ENERGY SUPPLIES THUS DEVELOPED FOR USE WITHIN THE UNITED STATES.

"(B) IT IS FURTHER THE POLICY OF THE UNITED STATES THAT LOANS MADE BY THE BANK SHALL BEAR INTEREST AT RATES DETERMINED BY THE BOARD OF DIRECTORS OF THE BANK, TAKING INTO CONSIDERATION THE AVERAGE COST OF MONEY TO THE BANK AS WELL AS THE BANK'S MANDATE TO SUPPORT UNITED STATES EXPORTS AT RATES AND ON TERMS AND CONDITIONS WHICH ARE COMPETITIVE WITH EXPORTS OF OTHER COUNTRIES; THAT THE BANK IN THE EXERCISE OF ITS FUNCTIONS SHOULD SUPPLEMENT AND ENCOURAGE, AND NOT COMPETE WITH, PRIVATE CAPITAL; THAT THE BANK SHALL ACCORD EQUAL OPPORTUNITY TO EXPORT AGENTS AND MANAGERS, INDEPENDENT EXPORT FIRMS, AND SMALL COMMERCIAL BANKS IN THE FORMULATION AND IMPLEMENTATION OF ITS PROGRAMS; THAT THE BANK SHALL GIVE DUE RECOGNITION TO THE POLICY STATED IN SECTION 2(A) OF THE SMALL BUSINESS ACT //15 USC 631.// THAT 'THE GOVERNMENT SHOULD AID, COUNSEL, ASSIST, AND PROTECT, INSOFAR AS IS POSSIBLE, THE INTERESTS OF SMALL BUSINESS CONCERNS IN ORDER TO PRESERVE FREE COMPETITIVE ENTERPRISE' AND THAT IN FURTHERANCE OF THIS POLICY THE BOARD OF DIRECTORS SHALL DESIGNATE AN OFFICER OF THE BANK WHO/ SHALL BE RESPONSIBLE TO THE PRESIDENT OF THE BANK FOR ALL MATTERS CONCERNING OR AFFECTING SMALL BUSINESS CONCERNS AND WHO, AMONG OTHER DUTIES, SHALL BE RESPONSIBLE FOR ADVISING SMALL BUSINESSMEN OF THE OPPORTUNITIES FOR SMALL BUSINESS CONCERNS IN THE FUNCTIONS OF THE BANK AND FOR MAINTAINING LIASON WITH THE SMALL BUSINESS ADMINISTRATION AND OTHER DEPARTMENTS AND AGENCIES IN MATTERS AFFECTING SMALL BUSINESS CONCERNS; THAT LOANS, FO FAR AS POSSIBLE CONSISTENT WITH THE CARRYING OUT OF THE PURPOSES OF SUBSECTION (A) OF THIS SECTION, SHALL GENERALLY BE FOR SPECIFIC PURPOSES, AND, IN THE JUDGMENT OF THE BOARD OF DIRECTORS, OFFER REASONABLE ASSURANCE OF REPAYMENT; AND THAT IN AUTHORIZING ANY LOAN OR GUARANTEE, THE BOARD OF DIRECTORS SHALL TAKE INTO ACCOUNT ANY SERIOUS ADVERSE EFFECT OF SUCH LOAN OR GUARANTEE ON THE COMPETITIVE POSITION OF UNITED STATES INDUSTRY, THE AVAILABILITY OF MATERIALS WHICH ARE IN SHORT SUPPLY IN THE UNITED STATES, AND EMPLOYMENT IN THE UNITED STATES.".

NATIONAL INTEREST DETERMINATIONS

SEC. 4. SECTION 2(B)(2) OF THE EXPORT-IMPORT BANK ACT OF 1945 IS AMENDED TO READ AS FOLLOWS: //12 USC 635.//

"(2) THE BANK IN THE ESERCISE OF ITS FUNCTIONS SHALL NOT GUARANTEE, INSURE, OR EXTEND CREDIT, OR PARTICIPATE IN ANY EXTENSION OF CREDIT--

"(A) IN CONNECTION WITH THE PURSHCASE OR LEASE OF ANY PRODUCT BY ANY OTHER FOREIGN COUNTRY, OR AGENCY OR NATIONAL THEREOF, IF THE PRODUCT TO BE PURCHASED OR LEASED BY SUCH OTHER COUNTRY, AGNECY, OR NATIONAL IS, TO THE KNOWLEDGE OF THE BANK, PRINCIPALLY FOR USE IN, OR SALE OR LEASE TO, A COMMUNITST COUNTRY (AS SO DEFINED),

UNLESS THE PRESIDENT DETERMINES THAT GUARANTEES, INSURANCE, OR EXTENSIONS OF CREDIT IN CONNECTION THEREWITH TO SUCH COMMUNIST OR SUCH OTHER COUNTRY OR AGENCY OR NATIONAL THEREOF WOULD BE IN THE NATIONAL INTEREST. THE PRESIDENT SHALL MAKE A SEPARATE DETERMINATION WITH RESPECT TO EACH TRANSACTION IN WHICH THE BANK WOULD EXTEND A LOAN TO SUCH COMMUNIST OR OTHER SUCH OTHER COUNTRY, OR AGENCY, OR NATIONAL THEREOF AN AMOUNT OF $50,000,000 OR MORE. ANY DETERMINATION REQUIRED UNDER THE FIRST SENTENCE OF THIS PARAGRAPH SHALL BE REPORTED TO THE CONGRESS NOT LATER THAN THE EARLIER OF THIRTY DAYS FOLLOWING THE DATE OF SUCH DETERMINATION, OR THE DATE ON WHICH THE BANK TAKES FINAL ACTION ON A TRANSACTION WHICH IS THE FIRST TRANSACTION INVOLVING SUCH COUNTRY OR AGENCY OR NATIONAL AFTER THE DATE OF ENACTMENT OF THE EXPORT-IMPORT BANK AMENDMENTS OF 1974, //ANTE, P. 23339// UNLESS A DETERMINATION WITH RESPECT TO SUCH COUNTRY OR AGENCY OR NATIONAL HAS BEEN MADE AND REPORTED PRIOR TO SUCH DATE OF ENACTMENT. ANY DETERMINATION REQUIRED TO BE MADE UNDER THE SECOND SENTENCE OF THIS PARAGRAPH SHALL BE REPORTED TO THE CONGRESS NOT LATER THAN THE EARLIER OF THIRTY DAYS FOLLOWING THE DATE OF SUCH DETERMINATION OR THE DATE ON WHICH THE BANK TAKES FINAL ACTION ON THE TRANSACTION INVOLVED."

CONGRESSIONAL NOTIFICATION

SEC. 5. SECTION 2(B) OF THE EXPORT-IMPORT BANK ACT OF 1945 IS AMENDED-- //12 USC 635.//

(1) BY REDESIGNATING PARAGRAPHS (3), (4), AND (5) AS PARAGRAPHS (4), (5), AND (6) RESPECTIVELY; AND

(2) BY INSERTING AFTER PARAGRAPH (2) THE FOLLOWING NEW PARAGRAPH:

"(3) NO LOAN OR FINANCIAL GUARANTEE OR CONMBINATION THEREOF IN AN AMOUNT WHICH EQUAOLS OR EXCEEDS $60,000,000 SHALL BE FINALLY APPROVED BY THE BOARD OF DIRECTORS OF THE BANK, AND NO LOAN OR FINANCIAL GUARANTEE OR COMBINATION THEREOF WHICH EQUALS OR EXCEEDS $25,000,000 FOR THE EXPORT OF GOODS OR SERVICES INVOLVING RESEARCH, EXPLORATION, OR PRODUCTION OF FOSSIL FUEL ENERGY RESOURCES IN THE UNION OF SOVIET SOCIALIST REPUBLICS SHALL BE FINALLY APPROVED BY THE BOARD OF DIRECTORS OF THE BANK, UNLESS IN EACH CASE THE BANK HAS SUBMITTED TO THE CONGRESS WITH RESPECT TO SUCH LOAN, FINANCIAL GUARANTEE, OR COMBINATION THEREOF, A DETAILED STATEMENT DESCRIBING AND EXPLAINING THE TRANSACTION, AT LEAST 25 DAYS OF CONTINUOUS SESSION OF THE CONGRESS PRIOR TO THE DATE OF FINAL APPROVAL. FOR THE PURPOSE OF THE PRECEDING SENTENCE, CONTINUITY OF A SESSION OF THE CONGRESS SHALL BE CONSIDERED AS BROKEN ONLY BY AN ADJOURNMENT OF THE CONGRESS SINE DIE, AND THE DAYS ON WHICH EITHER HOUSE IS NOT IN SESSION BECAUSE OF AN ADJOURNMENT OF MORE THAN 3 DAYS TO A DAY CERTAIN SHALL BE EXCLUDED IN THE COMPUTATION OF THE 25 DAY PERIOD REFERRED TO IN SUCH SENTENCE. SUCH STATEMENT SHALL CONTAIN--

"(A) A BRIEF DESCRIPTION OF THE PURPOSES OF THE TRANSACTION, THE IDENTITY OF THE PARTY OR PARTIES REQUESTING THE LOAN OR FINANCIAL GUARANTEE, THE NATURE OF THE GOODS OR SERVICES TO BE EXPORTED, AND THE USE FOR WHICH THE GOODS OR SERVICES ARE TO BE EXPORTED; AND

"(B) A FULL EXPLANATION OF THE REASONS FOR BANK FINANCING OF THE TRANSACTION, THE AMOUNT OF THE LOAN TO BE PROVIDED BY THE BANK, THE APPROXIMATE RATE AND REPAYMENT TERMS AT WHICH SUCH LOAN WILL BE MADE AVAILABLE AND THE APPROXIMATE AMOUNT OF THE FINANCIAL GUARANTEE."

FRACTIONAL CHARGE OF GUARANTEES AND INSURANCE

SEC. 6. SECTION 2(C)(1) OF THE EXPORT-IMPORT BANK ACT OF 1945 IS AMENDED TO READ AS FOLLOWS: //12 USZC 635.//

"(C)(1) THE BANK IS AUTHORIZED AND EMPOWERED TO CHARGE AGAINST THE LIMITATIONS IMPOSED BY SECTION 7 OF THIS ACT, //12 USC 635E.// NOT LESS THAN 25 PER CENTUM OF THE RELATED CONTRACTUAL LIABILITY WHICH THE BANK INCURS FOR GUARANTEES, INSURANCE, COINSURANCE, AND REINSURANCE AGAINST POLITICAL AND CREDIT RISKS OF LOSS. THE AGGREGATE AMOUNT OF GUARANTEES, INSURANCE, COINSURANCE, AND REINSURANCE WHICH MAY BE CHARGED ON THIS FRACTIONAL BASIS PURSUANT TO THIS SECTION SHALL NOT EXCEED $20,000,000,000 OUTSTANDING AT ANY ONE TIME. FEES AND PREMIUMS SHALL BE CHARGED IN CONNECTION WITH SUCH CONTRACTS COMMENSURATE, IN THE JUDGMENT OF THE BANK, WITH RISKS COVERED.".

INTEREST RATE ON OBLIGATIONS OF THE BANK

SEC. 7. //12 USC 635D.// SECTION 6 OF THE EXPORT-IMPORT BANK ACT OF 1945 IS AMENDED BY STRIKING THE THIRD SENTENCE AND INSERTING IN LIEU THEREOF THE FOLLOWING NEW SENTENCE: "EACH SUCH BANK OBLIGATION ISSUED TO THE TREASURY AFTER THE ENACTMENT OF THE EXPORT-IMPORT BANK AMENDMENTS OF 1974 SHALL BEAR INTEREST AT A RATE NOT LESS THAN THE CURRENT AVERAGE YIELD ON OUTSTANDING MARKETABLE OBLIGATIONS OF THE UNITED STATES OF COMPARABLE MATURITY DURING THE MONTH PRECEDING THE ISSUANCE OF THE OBLIGATION OF THE BANK AS DETERMINED BY THE SECRETARY OF THE TREASURY.".

AUTHORITY

SEC. 8. //12 USC 635E.// SECTION 7 OF THE EXPORT-IMPORT BANK ACT OF 1945 IS AMENDED--

(1) BY INSERTING "(A)" AFTER "SEC. 7";

(2) BY STRIKING OUT $20,000,000,000" AND INSERTING IN LIEU THEREOF "$25,000,000,000"; AND

(3) BY ADDING AT THE END THEREOF THE FOLLOWING:

"(B) AFTER THE DATE OF ENACTMENT OF THE EXPORT-IMPORT BANK AMENDMENTS OF 1974, THE BANK SHALL NOT APPROVE ANY LOANS OR FINANCIAL GUARANTEES, OR COMBINATION THEREOF, IN CONNECTION WITH EXPORTS TO THE UNION OF SOVIET SOCIALIST REPUBLICS IN AN AGGREGATE AMOUNT IN EXCESS OF $300,000,000. NO SUCH LOAN OR FINANCIAL GUARANTEE, OR COMBINATION THEREOF, SHALL BE FOR THE PURCHASE, LEASE, OR PROCUREMENT OF ANY PRODUCT OR SERVICE FOR PRODUCTION (INCLUDING PROCESSING AND DISTRIBUTION) OF FOSSIL FUEL ENERGY RESOURCES. NOT MORE THAN $40,000,000 OF SUCH AGGREGATE AMOUNT SHALL BE FOR THE PURCHASE, LEASE, OR PROCUREMENT OF ANY PRODUCT OR SERVICE WHICH INVOLVES RESEARCH OR EXPLORATION OF FOSSIL FUEL ENERGY RESOURCES. THE PRESIDENT MAY ESTABLISH A LIMITATION IN EXCESS OF $300,000,000 IF HE DETERMINES THAT SUCH HIGHER LIMITATION IS IN THE NATIONAL INTEREST AND IF HE REPORTS SUCH DETERMINATION TO THE CONGRESS TOGETHER WITH THE REASONS THERFOR, INCLUDING THE AMOUNT OF SUCH PROPOSED INCREASE WHICH WOULD BE AVAILABLE FOR THE EXPORT OF PRODUCTS AND SERVICES FOR RESEARCH, EXPLORATION, AND PRODUCTION (INCLUDING PROCESSING AND DISTRIBUTION) OF FOSSIL FUEL ENERGY RESOURCES IN THE UNION OF SOVIET SOCIALIST REPUBLICS, AND IF, AFTER THE RECEIPT OF SUCH REPORT TOGETHER WITH THE REASONS, THE CONGRESS ADOPTS A CONCURRENT RESOLUTION APPROVING SUCH DETERMINATION."

EXPIRATION

SEC. 9. //12 USC 635F.// SECTION 8 OF THE EXPORT-IMPORT BANK ACT OF 1945 IS AMENDED BY STRIKING OUT "NOVEMBER 30, 1974" AND INSERTING IN LIEU THEREOF "JUNE 30, 1978".

REPORT

SEC. 10. //12 USC 635G.// SECTION 9 OF THE EXPORT-IMPORT BANK ACT OF 1945 IS AMENDED TO READ AS FOLLOWS:

"SEC. 9. (A) THE EXPORT-IMPORT BANK OF THE UNITED STATES SHALL TRANSMIT TO THE CONGRESS ANNUALLY A COMPLETE AND DETAILED REPORT OF ITS OPERATIONS. SUCH REPORT SHALL BE AS OF THE CLOSE OF BUSINESS ON THE LAST DAY OF EACH FISCAL YEAR.

"(B) THE REPORT SHALL CONTAIN A DESCRIPTION OF ACTIONS TAKEN BY THE BANK IN PURSUANCE OF THE POLICY OF AIDING, COUNSELING, ASSISTING, AND PROTECTING, INSOFAR AS IS POSSIBLE, THE INTERESTS OF SMALL BUSINESS CONCERNS."

CEILING ON BORROWING BY NATIONAL BANKS

SEC. 11. SECTION 5202 OF THE REVISED STATUTES, AS AMENDED (12 U.S. C. 82), IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING:

"TWELFTH. LIABILITIES INCURRED IN BORROWING FROM THE EXPORT-IMPORT BANK OF THE UNITED STATES.".

RELATIONSHIP TO THE TRADE REFORM ACT

SEC. 12. UNTIL SUCH TIME AS THE TRADE REFORM ACT IS APPROVED BY THE CONGRESS AND SIGNED INTO LAW BY THE PRESIDENT, NO LOAN, GUARANTEE, INSURANCE, OR CREDIT SHALL BE EXTENDED BY THE EXPORT-IMPORT BANK OF THE UNITED STATES TO THE UNION OF SOVIET SOCIALIST REPUBLICS. //12 USC 635 NOTE, ANTE, P. 1978.//

REPEAL OF SECTION 2(A) (2)

SEC. 13. EFFECTIVE AT THE CLOSE OF SEPTEMBER 30, 1976, SECTION 2(A) (2) OF THE EXPORT-IMPORT BANK ACT OF 1945 IS REPEALED. //12 USC 635.//

LEGISLATIVE HISTORY:

HOUSE REPORTS: NO. 93 - 1261 (COMM. ON BANKING AND CURRENCY) AND NOS. 93 - 1439, 93 - 1582, AND 93 - 1633 (COMM. OF CONFERENCE).

SENATE REPORTS: NO. 93 - 1097 ACCOMPANYING S. 3917 (COMM. ON BANKING, HOUSING AND URBAN AFFAIRS) AND NO. 93 - 1335 (COMM. OF CONFERENCE).

CONGRESSIONAL RECORD, VOL. 120 (1974):

AUG. 21, CONSIDERED AND PASSED HOUSE.

SEPT. 19, CONSIDERED AND PASSED SENATE, AMENDED, IN LIEU OF S. 3917.

NOV. 20, HOUSE AGREED TO CONFERENCE REPORT.

NOV. 26, DEC. 2 - 4, 12 - 14, 16, CONFERENCE REPORTS CONSIDERED IN SENATE.

DEC. 18, HOUSE AGREED TO FURTHER CONFERENCE REPORT.

DEC. 19, SENATE AGREED TO FURTHER CONFERENCE REPORT.

PUBLIC LAW 93-645, 88 STAT 2330

93RD CONGRESS, H.R. 14689 JANUARY 4, 1975
AN ACT TO PROVIDE FOR A PLAN FOR THE PRESERVATION, INTERPRETATION, DEVELOPMENT, AND USE OF THE HISTORIC, CULTURAL, AND ARCHITECTURAL RESOURCES OF THE LOWELL HISTORIC CANAL DISTRICT IN LOWELL, MASSACHUSETTS, AND FOR OTHER PURPOSES.

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT FOR THE PURPOSE OF PRESERVING AND INTERPRETING FOR THE EDUCATIONAL AND INSIRATIONAL BENEFIT OF PRESENT AND FUTURE GENERATIONS THE UNIQUE AND SIGNIFICANT CONTRIBUTION TO OUR NATIONAL HERITAGE OF CERTAIN HISTORIC AND CULTURAL LANDS, WATERWAYS, AND EDIFICES IN THE CIRY OF LOWELL, MASSACHUSETTS (THE CRADLE OF THE INDUSTRIAL REVOLUTION IN AMERICA AS WELL AS AMERICA'S FIRST PLANNED INDUSTRIAL CITY) WITH EMPHASIS ON HARNESSING THIS UNIQUE URBAN ENVIRONMENT FOR ITS EDUCATIONAL VALUE AS WELL AS FOR RECREATION, THERE IS HEREBY ESTABLISHED THE LOWELL HISTORIC CANAL DISTRICT COMMISSION (HEREINAFTER REFERRED TO AS THE "COMMISSION"), THE PURPOSE OF WHICH SHALL BE TO PREPARE A PLAN FOR THE PRESERVATION, INTERPRETATION, DEVELOPMENT, AND USE, BY PUBLIC AND PRIVATE ENTITIES, OF THE HISTORIC, CULTURAL AND ARCHITECTURAL RESOURCES OF THE LOWELL HISTORIC CANAL DISTRICT IN THE CITY OF LOWELL, MASSACHUSETTS. //16 USC 461 NOTE.//

SEC. 2. (A) THE COMMISSION SHALL CONSIST OF NINE MEMBERS, AS FOLLOWS: //16 USC 461 NOTE.//

(1) THE SECRETARY OF THE INTERIOR, THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT, THE SECRETARY OF LTRANSPORTATION, AND THE SECRETARY OF COMMERCE, ALL EX OFFICIO; AND

(2) FIVE MEMBERS APPOINTED BY THE SECRETARY OF THE INTERIOR, ONE OF WHOM SHALL BE THE DIRECTOR OF THE NATIONAL PARK SERVICE, TWO OF WHOM SHALL BE APPOINTED FROM RECOMMENDATIONS SUBMITTED BY THE MANAGER OF THE CITY OF LOWELL, AND TWO OF WHOM SHALL BE APPOINTED FROM RECOMMENDATIONS SUBMITTED BY THE GOVERNOR OF THE COMMONWEALTH OF MASSACHUSETTS. THE MEMBERS APPOINTED PURSUANT TO THIS PARAGRAPH SHALL HAVE KNOWLEDGE AND EXPERIENCE IN ON OR MORE OF THE FIELDS OF HISTORY, ARCHITECTURE, THE ARTS, RECREATION PLANNING, CITY PLANNING, OR GOVERNMENT.

(B) EACH MEMBER OF THE COMMISSION SPECIFIED IN PARAGRAPH (1) OF SUBSECTION (A) AND THE DIRECTOR OF THE NATIONAL PARK SERVICE MAY DESIGNATE AN ALTERNATE OFFICIAL TO SERVE IN HIS STEAD. MEMBERS APPOINTED PURSUANT TO PARAGRAPH (2) OF SUBSECTION (A) WHO ARE OFFICERS OR EMPLOYEES OF THE FEDERAL GOVERNMENT, THE CITY OF LOWELL, OR THE COMMONWEALTH OF MASSACHUSETTS, SHALL SERVE WITHOUT COMPENSATION AS SUCH. OTHER MEMBERS, WHEN ENGAGED IN ACTIVITIES OF THE COMMISSION, SHALL BE ENTITLED TO COMPENSATION AT THE RATE OF NOT TO EXCEED $100 PER DIEM. ALL MEMBERS OF THE COMMISSION SHALL RECEIVE REIMBURSEMENT FOR NECESSARY TRAVEL AND SUBSISTENCE EXPENSES INCURRED BY THEM IN THE PERFORMANCE OF THE DUTIES OF THE COMMISSION.

SEC. 3. (A) THE COMMISSION SHALL ELECT A CHAIRMAN FROM AMONG ITS MEMBERS. //16 USC 461 NOTE.// FINANCIAL AND ADMINISTRATIVE SERVICES (INCLUDING THOSE RELATING TO BUDGETING, ACCOUNTING, FINANCIAL REPORTING, PERSONNEL, AND PROCUREMENT) SHALL BE PROVIDED FOR THE COMMISSION BY THE GENERAL SERVICES ADMINISTRATION, FOR WHICH PAYMENTS SHALL BE MADE IN ADVANCE, OR BY REIMBURSEMENT, FROM FUNDS OF THE COMMISSION IN SUCH AMOUNTS AS MAY BE AGREED UPON BY THE CHAIRMAN OF THE COMMISSION AND THE ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION: PROVIDED, THAT THE REGULATIONS OF THE DEPARTMENT OF THE INTERIOR FOR THE COLLECTION OF INDEBTEDNESS OF PERSONNEL RESULTING FROM ERRONEOUS PAYMENTS MADE TO OR ON BEHALF OF A COMMISSION EMPLOYEE, AND REGULATIONS OF SAID SECRETARY FOR THE ADMINISTRATIVE CONTROL OF FUNDS SHALL APPLY TO APPROPRIATIONS OF THE COMMISSION: AND PROVIDED FURTHER, THAT THE COMMISSION SHALL NOT BE REQUIRED TO PRESCRIBE SUCH REGULATIONS.

(B) THE COMMISSION SHALL HAVE POWER TO APPOINT AND FIX THE COMPENSATION OF SUCH ADDITIONAL PERSONNEL AS MAY BE NECESSARY TO CARRY OUT ITS DUTIES, WITHOUT REGARD TO THE PROVISIONS OF THE CIVIL SERVICE LAWS AND THE CLASSIFICATION ACT OF 1949. //63 STAT. 954.//

(C) THE COMMISSION MAY ALSO PROCURE, WITHOUT REGARD TO THE CIVIL SERVICE LAWS AND THE CLASSIFICATION ACT OF 1949, TEMPORARY AND INTERMITTENT SERVICES TO THE SAME EXTENT AS IS AUTHORIZED FOR THE EXECUTIVE DEPARTMENTS BY SECTION 15 OF THE ADMINISTRATIVE EXPENSES ACT OF 1946, BUT AT RATES NOT TO EXCEED $100 PER DIEM FOR INDIVIDUALS. //5 USC 3109B.//

(D) THE MEMBERS OF THE COMMISSION SPECIFIED IN PARAGRAPH (1) OF SECTION 2(A) SHALL PROVIDE THE COMMISSION, ON A REIMBURSABLE BASIS, WITH SUCH FACILITIES AND SERVICES UNDER THEIR JURISDICTION AND CONTROL AS MAY BE NEEDED BY THE COMMISSION TO CARRY OUT ITS DUTIES, TO THE EXTENT THAT SUCH FACILITIES AND SERVICES ARE REQUESTED BY THE COMMISSION AND ARE OTHERWISE AVAILABLE FOR THAT PURPOSE. TO THE EXTENT OF AVAILABLE APPROPRIATIONS, THE COMMISSION MAY OBTAIN, BY PURCHASE, RENTAL, DONATION, OR OTHERWISE, SUCH ADDITIONAL PROPERTY, FACILITIES, AND SERVICES AS MAY BE NEEDED TO CARRY OUT ITS DUTIES. UPON THE TERMINATION OF THE COMMISSION ALL PROPERTY, PERSONAL AND REAL, AND UNEXPENDED FUNDS SHALL BE TRANSFERRED TO THE DEPARTMENT OF THE INTERIOR.

SEC. 4. IT SHALL BE THE DUTY OF THE COMMISSION TO PREPARE THE PLAN REFERRED TO IN THE FIRST SECTION OF THIS ACT, AND TO SUBMIT THE PLAN TOGETHER WITH ANY RECOMMENDATIONS FOR ADDITIONAL LEGISLATION, TO THE CONGRESS NOT LATER THAN TWO YHEARS FROM THE EFFECTIVE DATE OF THIS ACT. //16 USC 461 NOTE.// THE PLAN FOR THE LOWELL HISTORIC CANAL DISTRICT SHALL INCLUDE CONSIDERATIONS AND RECOMMENDATIONS, WITHOUT LIMITATION, REGARDING (1) THE OBJECTIVES TO BE ACHIEVED BY THE ESTABLISHMENT, DEVELOPMENT, AND OPERATION OF THE AREA; (2) THE TYPES OF USE, BOTH PUBLIC AND PRIVATE, TO BE ACCOMMODATED; (3) CRITERIA FOR THE DESIGN AND APPEARANCE OF BUILDINGS, FACILITIES, OPEN SPACES, AND OTHER IMPROVEMENTS; (4) A PROGRAM FOR THE STAGING OF DEVELOPMENT; (5) THE ANTICIPATED INTERPRETIVE, CULTURAL, AND RECREATIONAL PROGRAMS AND USES FOR THE AREA; (6) THE PROPOSED OWNERSHIP AND OPERATION OF ALL STRUCTURES, FACILITIES, AND LANDS; (7) AREAS WHERE COOPERATIVE AGREEMENTS MAY BE ANTICIPATED; (8) ESTIMATES OF COSTS, BOTH PUBLIC AND PRIVATE, OF IMPLEMENTING THE PLAN; AND (9) PROCEDURES TO BE USED IN INPLEMENTING AND INSURING CONTINUING CONFORMANCE TO THE PLAN.

SEC. 5. THE COMMISSION SHALL BE DISSOLVED (1) UPON THE TERMINATION, AS DETERMINED BY ITS MEMBERS, OF NEED FOR ITS CONTINUED EXISTENCE FOR THE IMPLEMENTATION OF THE PLAN AND THE OPERATION OR COORDINATION OF THE ENTITY ESTABLISHED BY THE PLAN, OR (2) UPON EXPIRATION OF A TWO-YEAR PERIOD COMMENCING ON THE EFFECTIVE DATE OF THIS ACT, WHEREUPON THE COMPLETED PLAN HAS NOT BEEN SUBMITTED TO THE CONGRESS, WHICHEVER OCCURS FIRST.

SEC. 6. IT IS CONTEMPLATED THAT THE PLAN TO BE DEVELOPED MAY PROPOSE THAT THE COMMISSION MAY BE AUTHORIZED TO-- //16 USC 461 NOTE.//

(1) ACQUIRE LANDS AND INTERESTS THEREIN WITHIN THE LOWELL HISTORIC CANAL DISTRICT BY PURCHASE, LEASE, DONATION, OR EXCHANGE;

(2) HOLD, MAINTAIN, USE, DEVELOP, OR OPERATE BUILDINGS, FACILITIES, AND ANY OTHER PROPERTIES;

(3) SELL, LEASE, OR OTHERWISE DISPOSE OF REAL OR PERSONAL PROPERTY AS NECESSARY TO CARRY OUT THE PLAN;

(4) ENTER INTO AND PERFORM SUCH CONTRACTS, LEASES, COOPERATIVE AGREEMENTS, OR OTHER TRANSACTIONS WITH ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES, THE COMMONWEALTH OF MASSACHUSETTS, AND ANYV GOVERNMENTAL UNIT WITHIN ITS BOUNDARIES, OR ANY PERSON, FIRM, ASSOCIATION, OR CORPORATION AS MAY BE NECESSARY;

(5) ESTABLISH (THROUGH COVENANTS, REGULATIONS, AGREEMENTS, OR OTHERWISE) SUCH RESTRICTIONS, STANDARDS, AND REQUIREMENTS AS ARE NECESSARY TO ASSURE DEVELOPMENT, MAINTENANCE, USE, AND PROTECTION OF THE LOWELL HISTORIC CANAL DISTRICT IN ACCORDANCE WITH THE PLAN; AND

(6) BORROW MONEY FROM THE TREASURY OF THE UNITED STATES IN SUCH AMOUNTS AS MAY BE AUTHORIZED IN APPROPRIATION ACTS ON THE BASIS OF OBLIGATIONS ISSUED BY THE COMMISSION IN ACCORDANCE WITH TERMS AND CONDITIONS APPROVED BY THE SECRETARY OF THE TREASURY. THE SECRETARY OF THE TREASURY IS AUTHORIZED AND DIRECTED TO PURCHASE ANY SUCH OBLIGATIONS OF THE COMMISSION.

SEC. 7. TITLE TO PROPERTY OF THE COMMISSION SHALL BE IN THE NAME OF THE COMMISSION, BUT IT SHALL NOT BE SUBJECT TO ANY FEDERAL, STATE, OR MUNICIPAL TAXES. //16 USC 461 NOTE.//

SEC. 8. THERE ARE AUTHORIZED TO BE APPROPRIATED NOT TO EXCEED $150,000 FOR THE PREPARATION OF THE PLAN AUTHORIZED BY THIS ACT. //16 USC 461 NOTE.//

LEGISLATIVE HISTORY:

HOUSE REPORT NO. 93 - 1430 (COMM. ON INTERIOR AND INSULAR

AFFAIRS).

CONGRESSIONAL RECORD, VOL. 120 (!974):

OCT. 7, CONSIDERED AND PASSED HOUSE.

DEC. 17, CONSIDERED AND PASSED SENATE.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, VOL. 11, N/. 2: JAN. 4, PRESIDENTIAL STATEMENT.

PUBLIC LAW 93-644, 88 STAT 2291, HEADSTART, ECONOMIC OPPORTUNITY, AND COMMUNITY PARTNERSHIP ACT OF 1974

93RD CONGRESS, H.R. 14449 JANUARY 4, 1975
AN ACT TO PROVIDE FOR THE EXTENSION OF HEADSTART, COMMUNITY ACTION, COMMUNITY ECONOMIC DEVELOPMENT, AND OTHER OTHER PROGRAMS UNDER THE ECONOMIC OPPORTUNITY ACT OF 1964, TO PROVIDE FOR INCREASED INVOLVEMENT OF STATE AND LOCAL GOVERNMENTS IN ANTI-POVERTY EFFORTS, AND FOR OTHER PURPOSES.

BE IN ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE CITED AS THE "HEADSTART, ECONOMIC OPPORTUNITY, AND COMMUNITY PARTNERSHIP ACT OF 1974".

STATEMENT OF PURPOSE

SEC. 2. IT IS THE PURPOSE OF THIS ACT TO EXTEND PROGRAMS UNDER THE ECONOMIC OPPORTUNITY ACT OF 1964, INCLUDING HEADSTART, COMMUNITY ACTION, AND COMMUNITY ECONOMIC DEVELOPMENT PROGRAMS; AND TO PROVIDE FOR INCREASED INVOLVEMENT OF STATE AND LOCAL GOVERNMENTS IN ANTI-POVERTY EFFORTS BY AUTHORIZING A COMMUNITY PARTNERSHIP PROGRAM. //42 USC 2701 NOTE, 42 USC 2706 NOTE, 42 USC 2701 NOTE.//

SHORT TITLE AND DEFINITIONS

SEC. 3. THE ECONOMIC OPPORTUNITY ACT OF 1964 IS AMENDED BY ADDING AFTER SECTION 2 THE FOLLOWING NEW SECTIONS:

"SHORT TITLE

"SEC. 101. THIS TITLE AND TITLES II THROUGH IX OF THIS ACT MAY BE CITED AS THE 'COMMUNITY SERVICES ACT OF 1974'.

"DEFINITIONS

"SEC. 102. AS USED IN THIS ACT-- //42 USC 2706.//

"(1) THE TERM 'STATE' MEANS A STATE, THE DISTRICT OF COLUMBIA THE COMMONWEALTH OF PRERTO RICO, GUAM, AMERICAN SAMOA, THE VIRGIN ISLANDS, AND THE TRUST TERRITORY OF THE PACIFIC ISLANDS;

"(2) THE TERM 'UNITED STATES' WHEN USED IN A GEOGRAPHICAL SENSE INCLUDES ALL THOSE PLACES NAMED IN THE PREVIOUS SENTENCE AND ALL OTHER PLACES CONTINENTAL OR INUSLAR, SUBJECT TO THE JURISDICTION OF THE UNITED STATES;

"(3) THE TERM 'FINANCIAL ASSISTANCE' WHEN USED IN TITLE II, PART B OF TITLE III, AND TITLE VIII INCLUDES ASSISTANCE ADVANCED BY GRANT, AGREEMENT, OR CONTRACT, BUT DOES NOT INCLUDE THE PROCUREMENT OF PLANT OR EQUIPMENT, OR GOODS OR SERVICES; //POST P. 2292, 42 USC 2861, PLST, P. 2324.//

"(4) THE TERM 'SECRETARY' MEANS THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE;

"(5) THE TERM 'ADMINISTRATION' MEANS THE COMMUNITY SERVICES ADMINISTRATION; AND

"(6) THE TERM 'DIRECTOR' MEANS THE DIRECTOR OF THE COMMUNITY SERVICES ADMINISTRATION.".

RESEARCH AND DEMONSTRATION PROGRAMS

SEC. 4. TITLE I OF THE ECONOMIC OPPORTUNITY ACT OF 1964 IS AMENDED TO READ AS FOLLOWS: //42 USC 2711.//

"TITLE II--RESEARCH AND DEMONSTRATIONS

"STATEMENT OF PURPOSE

"SEC. 101. //42 USC 2711.// THE PURPOSE OF THE TITLE IS TO STIMULATE A BETTER FOCUSING OF ALL AVAILABLE LOCA., STATE, PRIVATE, AND FEDERAL RESOURCES UPON THE GOAL OF ENABLING LOW-INCOME FAMILIES, AND LOW-INCOME INDIVIDUALS OF ALL AGES, INCLUDING PERSONS OF LIMITED ENGLISH-SPEAKING ABILITY, IN RURAL AND URBAN AREAS TO ATTAIN THE SKILLS KNOWLEDGE, AND MOTICATIONS AND SECURE THE OPPORTUNITIES NEEDED FOR THEM TO BECOME FULLY SELF-SUFFICIENT.

"RESEARCH, DEMONSTRATION, AND PILOT PROJECTS

"SEC. 102. //42 USC 2712.// THE DIRECTOR MAY PROVIDE FINANCIAL ASSISTANCE THROUGH GRANTS OR CONTRACTS FOR RESEARCH, DEMONSTRATION, OR PILOT PROJECTS CONDUCTED BY PUBLIC OR PRIVATE AGENCIES WHICH ARE DESIGNED TO TEST OR ASSIST IN THE DEVELOPMENT OF NEW APPROACHES OR METHODS THAT WILL AID IN OVERCOMING SPECIAL PROBLEMS OR OTHERWISE FURTHERING THE PURPOSES OF THIS TITLE.

"(B) THE DIRECTOR SHALL ESTABLISH AN OVERALL PLAN TO GOVERN THE APPROVAL OF RESEARCH, DEMONSTRATION, AND PILOT PROJECTS AND THE USE OF ALL RESEARCH AUTHORITY UNDER THIS TITLE. SUCH PLAN SHALL SET FORTH SPECIFIC OBJECTIVES TO BE ACHIEVED AND PRIORITIES AMONG SUCH OBJECTIVES. IN FORMULATING THE PLAN, THE DIRECTOR SHALL CONSULT WITH OTHER FEDERAL AGENCIES FOR THE PURPOSE OF MINIMIZING DUPLICATION AMONG SIMILAR ACTIVITEES OF PROJECTS AND DETERMINING WHETHER THE FINDINGS RESULTING FROM ANY SUCH PROJECTS MAY BE INCORPORATED INTO ONE OR MORE PROGRAMS FOR WHICH THOSE AGENCIES ARE RESPONSIBLE.

"(C) NO PROJECT SHALL BE COMMENCED UNDER THIS SECTION UNLESS A PLAN SETTING FORTH SUCH PROPOSED PROJECT HAS BEEN SUBMITTED TO THE CHIEF EXECUTIVE OFFICER OF THE STATE IN WHICH THE PROJECT IS TO BE LOCATED AND SUCH PLAN HAS NOT BEEN DISAPPROVED BY HIM WITHIN THIRTY DAYS OF SUCH SUBMISSION, OR, IF SO DISAPPROVED, HAS BEEN RECONSIDERED BY THE DIRECTOR AND FOUND BY HIM TO BE FULLYT CONSISTENT WITH THE PROVISIONS AND IN FURTHERANCE OF THE PURPOSES OF THIS TITLE.

"(D) IN MAKING GRANTS OR CONTRACTS UNDER THIS TITLE, THE DIRECTOR SHALL GIVE DUE CONSIDERATION TO REQUESTS FOR FUNDS BY APPLICANTS RECEIVING FINANCIAL ASSISTANCE UNDER THIS TITLE IN ANY FISCAL YEAR SHALL BE MADE AVAILABLE FOR PROGRAMS OR PROJECTS RECEIVING FINANCIAL ASSISTANCE UNDER SECTION 221 OR 235 OF THIS ACT. //42 USC 2808, POST P. 2296.//

"CONSULTATION

"SEC. 103. //42 USC 2713.// IN CARRYING OUT PROJECTS UNDER THIS TITLE, THE DIRECTOR SHALL, WHENEVER FEASIBLE, ARRANGE TO OBTAIN THE OPINIONS OF PROGRAM PARTICIPANTS ABOUT THE STRENGTHS AND WEAKNESSES OF PROGRAMS.

"ANNOUNCEMENT OF RESEARCH, DEMONSTRATION, AND PILOT PROJECTS

"SEC. 104. //42 USC 2714.// (A) THE DIRECTOR SHALL MAKE A PUBLIC ANNOUNCEMENT CONCERNING--

"(1) THE TITLE, PURPOSE, INTENDED COMPLETION DATE, IDENTITY OF THE GRANTEE OR CONTRACTOR, AND PROPOSED COST OF ANY GRANT OR CONTRACT WITH A PRIVATE OR NON-FEDERAL PUBLIC AGENCY OR ORGANIZATION FOR ANY RESEARCH, DEMONSTRATION, OR PILOT PROJECT UNDER THIS TITLE; AND

"(2) THE RESULTS, FINDINGS, DATA, OR RECOMMENDATIONS MADE OR REPORTED AS A RESULT OF SUCH RESEARCH, DEMONSTRATION, OR PILOT PROJECT.

"(B) THE PUBLIC ANNOUNCEMENTS REQUIRED BY SUBSECTION (A) OF THIS SECTION SHALL BE MADE WITHIN THIRTY DAYS OF MAKING ANY SUCH GRANT OR CONTRACT, AND THE PUBLIC ANNOUNCEMENTS REQUIRED BY SUBSECTION (B) OF THIS SECTION SHALL BE MADE WITHIN THIRTY DAYS OF THE RECEIPT OF SUCH RESULTS, FINDINGS, DATA, OR RECOMMENDATIONS.

"(C) THE DIRECTOR SHALL TAKE NECESSARY ACTION TO ASSURE THAT ALL STUDIES, PROPOSALS, AND DATA PRODUCED OR DEVELOPED WITH FEDERAL FUNDS EMPLOYED UNDER THIS TITLE SHALL BECOME THE PROPERTY OF THE UNITED STATES.

"(D) THE DIRECTOR SHALL PUBLISH STUDIES OF THE RESULTS OF ACTIVITIES CARRIED OUT PURSUANT TO THIS TITLE NOT LATER THAN NINETY DAYS AFTER THE COMPLETION THEREOF. THE DIRECTOR SHALL SUBMIT TO THE APPROPRIATE COMMITTEES OF THE CONGRESS COPIES OF ALL SUCH STUDIES.

"PROHIBITION OF FEDERAL CONTROL

"SEC. 105. //42 USC 2715.// NOTHING CONTAINED IN THIS TITLE SHALL BE CONSTRUED TO AUTHORIZE ANY DEPARTMENT, AGENCY, OFFICER, OR EMPLOYEE OF THE UNITED STATES TO EXERCISE ANY DIRECTION, SUPERVISION, OR CONTROL OVER THE CURRICULUM, PROGRAM OF INSTRUCTION, ADMINISTRATION, OR PERSONNEL OF ANY EDUCATIONAL INSTITUTION OR SCHOOL SYSTEM."

COMMUNITYS ACTION PROGRAMS

SEC. 5. //42 USC 2790.// (A) SECTION 210 OF THE ECONOMIC OPPORTUNITY ACT OF 1964 IS AMENDED--

(1) IN SUBSECTION (A) THEREOF, BY INSERTING "OR AN INDIAN TRIBAL GOVERNMENT," BEFORE THE WORD "WHICH" THE SECOND PLACE IT APPEARS THEREIN; AND

(2) BY REPEALING SUBSECTION (F) THEREOF.

(B) SECTION 210 OF SUCH ACT IS FURTHER AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SUBSECTION.

"(F) IN CARRYING OUT HIS RESPONSIBILITIES UNDER THIS PART THE DIRECTOR MAY DELEGATE FUNCTIONS OTHER THAN POLICYMAKING FUNCTIONS AND THE FINAL APPROVAL OF GRANTS AND CONTRACTS TO A STATE, IN ACCORDANCE WITH CRITERIA AND GUIDELINES ESTABLISHED BY HIM, SUCH FUNCTIONS AS HE DEEMS APPROPRIATE, EXCEPT THAT NO SUCH DELEGATION SHALL TAKE PLACE UNLESS ALL THE COMMUNITY ACTION AGENCIES WITHIN SUCH STATE FORMALLY INDICATE THEIR APPROVAL OF SUCH PROPOSED DELEGATION, EXCEPT THAT WHENEVER SUCH DELEGATED FUNCTIONS INCLUDE THE AUTHORITY TO APPROVE PROGRAMS WITHIN EACH STATE THE DIRECTOR SHALL MAKE AVAILABLE TO THE STATE, IN ADDITION TO AN AMOUNT NOT LESS THAN THE AMOUNT MADE AVAILABLE TO SUCH STATE FOR STATE AGENCY ASSISTANCE UNDER SECTION 231 IN THE PREVIOUS FISCAL YEAR, AN AMOUNT IN EACH FISCAL YEAR EQUAL TO SUCH STATE'S SHARE (AS DETERMINED BY THE FORMULA SET FORTH IN THE SECOND SENTENCE OF SECTION 235(A) //POST, P. 2296.// OF THE AGGREGATE AMOUNT MADE AVAILABLE DURING THE FISCAL YEAR ENDING JUNE 30, 1974, FOR THE OPERATION OF REGIONAL OFFICES OF THE OFFICE OF ECONOMIC OPPORTUNITY.", //42 USC 2824.//

(C)(1) PARAGRAPH (1) OF SECTION 222(A) OF SUCH ACT IS REPEALED. //42 USC 2809.//

(2) PARAGRAPH (2) OF SECTION 222(A) OF SUCH ACT IS REPEALED.

(3) PARAGRAPH (6) OF SECTION 222(A) OF SUCH ACT IS REPEALED.

(4) PARAGRAPH (8) OF SECTION 222(A) OF SUCH ACT IS REPEALED.

(5) PARAGRAPH (9) OF SECTION 222(A) OS SUCH ACT IS REPEALED.

(D)(1) SECTION 222(A) OF THE ECONOMIC OPPORTUNITY ACT OF 1964 IS AMENDED BY INSERTING AFTER PARAGRAPH (11) THE FOLLOWING:

"(12) A PROGRAM TO BE KNOWN AS 'EMERGENCY ENERGY CONSERVATION SERVICES' DESIGNED TO ENABLE LOW-INCOME INDIVIDUALS AND FAMILIES, INCLUDING THE ELDERLY AND THE NEAR POOR, TO PARTICIPATE IN ENERGY CONSERVATION PROGRAMS DESIGNED TO LESSEN THE IMPACT OF THE HIGH COST OF ENERGY ON SUCH INDIVIDUALS AND FAMILIES AND TO REDUCE INDIVIDUAL AND FAMILY ENERGY CONSUMPTION. THE DIRECTOR IS AUTHORIZED TO PROVIDE FINANCIAL AND OTHER ASSISTANCE FOR PROGRAMS AND ACTIVITIES, INCLUDING, BUT NOT LIMITED TO, AN ENERGY CONSERVATION AND EDUCATION PROGRAM; WINTERIZATION OF OLD OR SUBSTANDARD DWELLINGS, IMPROVED SPACE CONDITIONING, AND INSULATION; EMERGANCY LOANS, GRANTS, AND REVOLVING FUNDS TO INSTALL ENERGY CONSERVATION TECHNOLOGIES AND TO DEAL WITH INCREASED HOUSING EXPENSES RELATING TO THE ENERGY CRISIS; ALTERNATIVE FUEL SUPPLIES, SPECIAL FUEL VOUCHER OR STAMP PROGRAMS; ALETENATIVE TRANSPORTATION ACTIVITIES DESIGNED TO SAVE FUEL AND ASSURE CONTINUED ACCESS TO TRAINING, EDUCATION, AND EMPLOYMENT; APPROPRIATE OUTREACH EFFORTS; FURNISHING PERSONNEL TO ACT AS COORDINATORS, PROVIDING LEGAL OR TECHNICAL ASSISTANCE, OR OTHERWISE REPRESENTING THE INTERESTS OF THE POOR IN EFFORTS RELATING TO THE ENERGY CRISIS; NUTRITION, HEALTH, AND OTHER SUPPORTIVE SERVICES IN EMERGENCY CASES; AND EVALUATION OF PROGRAMS AND ACTIVITIES UNDER THIS PARAGRAPH. SUCH ASSISTANCE MAY BE PROVIDED AS A SUPPLEMENT TO ANY OTHER ASSISTANCE EXTENDED UNDER THE PROVISIONS OF THIS ACT OR UNDER . OTHER PROVISIONS OF FEDERAL LAW. THE DIRECTOR, AFTER CONSULTATION WITH THE ADMINISTRATOR OF THE FEDERAL ENERGY OFFICE AND APPROPRIATE FEDERAL DEPARTMENTS AND AGENCIES SHALL ESTABLISH PROCEDURES AND TAKE OTHER APPROPRIATE ACTION NECESSARY TO INSURE THAT THE EFFECTS OF THE ENERGY CRISIS ON LOW-INCOME PERSONS, THE ELDERLY, AND THE NEAR POOR ARE TAKEN INTO ACCOUNT IN THE FORMULATION AND ADMINISTRATION OF PROGRAMS RELATING TO THE ENERGY CRISIS.

"(13) A PROGRAM TO BE KNOWN AS 'SUMMER YOUTH RECREATION' DESIGNED TO PROVIDE RECREATIONAL OPPORTUNITIES FOR LOW-INCOME CHILDREN DURING THE SUMMER MONTHS. FUNDS MADE AVAILABLE FOR THIS SECTION SHALL BE ALLOCATED BY THE DIRECTOR, AFTER CONSULTATION WITH THE SECRETARY OF LABOR, AMONG PRIME SPONSORS AND OTHER AGENCIES DESIGNATED UNDER TITLE I OF THE COMPREHENSIVE EMPLOYMENT AND TRAINING ACT OF 1973 ON THE BASIS OF //29 USC 811.// (1) THE RELATIVE NUMBER OF PUBLIC ASSISTANCE RECIPIENTS IN THE AREA SERVED BY SUCH PRIME SPONSOR OR AGENCY, AS COMPARED TO THE NATION; (2) THE RELATIVE NUMBER OF UNEMPLOYED PERSONS IN SUCH AREA AS COMPARED WITH THE NATION; AND (3) THE RELATIVE NUMBER OF RELATED CHILDREN LIVING WITH FAMILIES WITH INCOMES BELOW THE POVERTY LINE IN SUCH AREA, AS COMPARED TO THE NATION. THAT PART OF ANY ALLOTMENT WHICH THE DIRECTOR DETERMINES WILL NOT BE NEEDED MAY BE REAL-LOTTED, AT SUCH DATES DURING THE FISCAL YEAR AS THE DIRECTOR MAY FIX, TO THE EXTENT FEASIBLE, IN PROPORTION TO THE ORIGINAL ALLOTMENTS. IN MAKING ALLOCATIONS UNDER THIS SECTION, THE DIRECTOR SHALL INSURE, TO THE MAXIMUM EXTENT POSSIBLE, THAT FOR THE PROGRAM COMMENCING IN THE FISCAL YEAR ENDING JUNE 30, 1975, AND FOR THE PROGRAM IN EACH SUCCEEDING FISCAL YEAR NO PRIME SPONSOR OR OTHER DESIGNATED AGENCY SHALL RECEIVE AN AMOUNT LESS THAN THE AMOUNT RECEIVED FOR SUCH PROGRAMS DURING THE FISCAL YEAR ENDING JUNE 30, 1973, OR THE FISCAL YEAR ENDING JUNE 30, 1974, WHICHEVER IS HIGHER.

(2) SECTION 226(D) AND SECTION 228(C) ARE EACH AMENDED BY STRIKING OUT "SHALL MAKE WHATEVER ARRANGEMENTS ARE NECESSARY" AND INSERTING IN LIEU THEREOF "IS AUTHORIZED TO MAKE WHATEVER ARRANGEMENTS ARE NECESSARY". //42 USC 2813, 2815.//

(E)(1) SECTION 225(A) OF THE ECONOMIC OPPORTUNITY ACT OF 1964 IS AMENDED BY STRIKING OUT THE THIRD SENTENCE THEREOF AND INSERTING IN LIEU THEREOF THE FOLLOWING: //42 USC 2812.// "THE REMAINDER SHALL BE ALLOTTED AMONG THE STATES, IN ACCORDANCE WITH THE LATEST AVAILABLE DATA, SO THAT EQUAL PROPORTIONS ARE DISTRIBUTED ON THE BASIS OF (1) THE RELATIVE NUMBER OF PUBLIC ASSISTANCE RECIPIENTS IN EACH STATE AS COMPARED TO ALL STATES, (2) THE RELATIVE NUMBER OF UNEMPLOYED PERSONS IN EACH STATE AS COMPARED TO ALL STATES, AND (3) THE RELATIVE NUMBER OF RELATED CHILDREN LIVING WITH FAMILIES WITH INCOMES BELOW THE POVERTY LINE IN EACH STATE AS COMPARED TO ALL STATES. FOR PURPOSES OF THIS SUBSECTION, THE DIRECTOR SHALL UTILIZE THE CRITERIA OF POVERTY USED BY THE BUREAU OF THE CENSUS IN COMPILING THE 1970 DECENNIAL CENSUS. THE DIRECTOR SHALL INSURE THAT FOR THE FISCAL YEAR ENDING JUNE 30, 1975, AND FOR EACH SUCCEEDING FISCAL YEAR, NO STATE SHALL BE ALLOTTED FOR PROGRAMS UNDER SECTION 221 AND SECTION 222(A) AN AMOUNT WHICH IS LESS THAN THE AMOUNT RECEIVED FOR USE WITHIN SUCH STATE FOR PROGRAMS DESCRIBED IN SUCH SECTIONS DURING THE FISCAL YEAR ENDING JUNE 30, 1974.". //42 USC 2808, 42 USC 2809.//

(2) SECTION 225(C) OF SUCH ACT IS AMENDED BY STRIKING OUT "SHALL NOT EXCEED 90 PER CENTUM OF THE APPROVED COST OF THE ASSISTED PROGRAMS OR ACTIVITIES AND THEREAFTER SHALL NOT EXCEED 80 PER CENTUM OF SUCH COSTS" AND INSERTING IN LIEU THEREOF THE FOLLOWING: "SHALL NOT EXPEED 80 PER CENTUM OF THE APPROVED COST OF THE ASSISTED PROGRAMS OR ACTIVITIES WITH RESPECT TO FISCAL YEAR 1975, AND 70 PER CENTUM OF SUCH COSTS WITH RESPECT TO FISCAL YEAR 1976, AND SHALL NOT EXCEED 60 PER CENTUM OF SUCH COSTS WITH RESPECT TO FISCAL YEAR 1977, EXCEPT THAT IN THE CASE OF COMMUNITY ACTION AGENCIES RECEIVING SUCH FINANCIAL ASSISTANCE ANNUALLY OF $300,000 OR LESS, SUCH FINANCIAL ASSISTANCE SHALL NOT EXCEED 75 PER CENTUM OF SUCH COSTS WITH RESPECT TO FISCAL YEAR 1976, AND SHALL NOT EXCEED 70 PER CENTUM OF SUCH COSTS WITH RESPECT TO FISCAL YEAR 1977". //42 USC 2812.//

(F) THE ECONOMIC OPPORTUNITY ACT OF 1964 IS FURTHER AMENDED BY INSERTING AFTER SECTION 234 THEREOF THE FOLLOWING NEW SECTIONS:

"DEMONSTRATION COMMUNITY PARTNERSHIP AGREEMENTS

"SEC. 235. //42 USC 2828.// (A) THE DIRECTOR MAY PROVIDE FINANCIAL ASSISTANCE FROM FUNDS APPROPRIATED TO CARRY OUT THIS SECTION TO COMMUNITY ACTION AGENCIES OR PUBLIC OR PRIVATE NONPROFIT AGENCIES DESIGNATED UNDER SECTION 210 FOR PROGRAMS AUTHORIZED UNDER THIS TITLE, AND TO STATE ECONOMIC OPPORTUNITY OFFICES FOR PROGRAMS AND ACTIVITIES AUTHORIZED UNDER SECTION 231(A). //42 USC 2790.// FINANCIAL ASISTANCE EXTENDED TO A COMMUNITY ACTION AGENCY OR OTHER AGENCY PURSUANT TO THIS SECTION MAY BE USED FOR NEW PROGRAMS OR TO SUPPLEMENT EXISTING PROGRAMS AND SHALL NOT EXCEED 50 PER CENTUM OF THE COST OF SUCH NEW OR SUPPLEMENTAL PROGRAMS. //42 USC 2824.//

"(B) MATCHING LOCAL AND STATE FUNDS SUPPLIED UNDER THIS SECTION SHALL BE IN CASH AND SHALL REPRESENT STATE AND LOCAL INITIATIVES NEWLY OBLIGATED WITHIN THE PREVIOUS YEAR TO THE PURPOSES OF THE GRANT-SUPPORTED ACTIVITY; AND NO PROGRAM SHALL BE APPROVED FOR ASSISTANCE UNDER THIS SECTION UNLESS THE DIRECTOR SATISFIES HIMSELF (1) THAT THE ACTIVITIES TO BE CARRIED OUT UNDER SUCH PROGRAM WILL BE IN ADDITION TO, AND NOT IN SUBSTITUTION FOR, ACTIVITIES PREVIOUSLY CARRIED ON WITHOUT FEDERAL ASSISTANCE, (2) THAT FUNDS OR OTHER RESOURCES DEVOTED TO PROGRAMS DESIGNED TO MEET THE NEEDS OF THE POOR WITHIN THE COMMUNITY, AREA, OR STATE WILL NOT BE DIMINISHED IN ORDER TO PROVIDE THE CONTRIBUTIONS REQUIRED UNDER THIS SECTION. THE REQUIREMENT IMPOSED BY THE PRECEDING SENTENCE SHALL BE SUBJECT TO SUCH REGULATIONS AS THE SECRETARY MAY ADOPT AND PROMULGATE ESTABLISHING OBJECTIVE CRITERIA FOR DETERMINATIONS COVERING SITUATIONS WHERE A STRICT APPLICATION OF THAT REQUIREMENT WOULD RESULT IN UNNECESSARY HARDSHIP OR OTHERWISE BE INCONSISTENT WITH THE PURPOSES SOUGHT TO BA ACHIEVED.

"(C) THE PROVISIONS OF SECTION 242 OF THIS ACT SHALL NOT APPLY TO ASSISTANCE PROVIDED UNDER THIS SECTION. //42 USC 2834.//

"INTERGOVERNMENTAL ADVISORY COUNCIL ON COMMUNITY SERVICES

"SEC. 236. //42 USC 2829.// (A) THERE SHALL BE ESTABLISHED WITHIN THE OFFICE OF ECONOMIC OPPORTUNITY OR SUCCESSOR AUTHORITY AN INTERGOVERNMENTAL ADVISORY COUNCIL ON COMMUNITY SERVICES (REFERRED TO IN THIS SECTION AS THE 'COUNCIL').

"(B) THE COUNCIL SHALL BE COMPOSED OF NINE MEMBERS WHO SHALL BE APPOINTED BY THE PRESIDENT AS FOLLOWS:

"(I) THREE MEMBERS SHALL BE APPOINTED FROM AMONG REPRESENTATIVES OF STATES AND COUNTY AND MUNICIPAL GOVERERNMENTS OR ORGANIZATIONS WHICH REPRESENT SUCH GOVERNMENTAL UNITS, SELECTED ON AN EQUITABLE POLITICAL AND GEOGRAPHIC BASIS AFTER CONSIDERING RECOMMENDATIONS MADE BY THE NATIONAL GOVERNORS' CONFERENCE, THE NOTIONAL LEAGUE OF CITIES-UNITED STATES CONFERENCE OF MAYORS, THE NATIONAL ASSOCIATION OF COUNTIES AND SIMILAR ORGANIZATIONS REPRESENTATIVE OF STATE AND LOCAL GOVERNMENT.

"(II) THREE MEMBERS SHALL BE APPOINTED FROM AMONG REPRESENTATIVES OF COMMUNITY ACTION AGENCIES AND OTHER GRANTEES UNDER THIS ACT OR ORGANIZATIONS WHICH REPRESENT SUCH AGENCIES AND GRANTEES, SELECTED ON AN EQUITABLE POLITICAL AND GEOGRAPHIC BASIS AFTER CONSIDERING RECOMMENDATIONS PREVIOUSLY MADE BY THE DIRECTOR OF THE OFFICE OF ECONOMIC OPPORTUNITY.

"(III) THREE MEMBERS SHALL BE APPOINTED FROM AMONG REPRESENTATIVES OF LABOR, MANAGEMENT, AND OTHER SECTORS WHICH HAVE DEMONSTRATED ACTIVE INTEREST IN COMMUNITY ACTION AND ANTIPOVERTY PROGRAMS.

"(C) THE COUNCIL SHALL--,

"(1) ENCOURAGE THE FORMATION OF COMMUNITY PARTNERSHIP AGREEMENTS;

"(2) REVIEW THE SUBSTANCE OF SUCH AGREEMENTS AND ANY REGULATIONS, GUIDELINES, OR OTHER PROGRAM CRITERIA WITH RESPECT THERETO AND ADVISE THE DIRECTOR THEREON PRIOR TO FINAL APPROVAL THEREOF;

"(3) EVALUATE THE EFFECTIVENESS OF SUCH AGREEMENTS IN MEETING THE PURPOSES OF THIS ACT;

"(4) CONDUCT A CONTINUING SURVEY THROUGHOUT THE NATION ON THE EXTENT TO WHICH, AND TERMS UNDER WHICH, PUBLIC AND PRIVATE RESOURCES HAVE BEEN AND MAY BE AVAILABLE FOR ANTIPOVERTY EFFORTS;

"(5) IDENTIFY AND ENCOURAGE MEANS OF INCREASING RESOURCES AVAILABLE FOR SUCH ACTIVITIES; AND

"(6) SUBMIT ANNUAL REPORTS TO THE PRESIDENT AND TO THE CONGRESS ON OR BEFORE MARCH 1, 1976, AND MARCH 1, 1977, WITH RESPECT TO ITS ACTIVITIES AND FINDINGS, TOGETHER WITH SUCH RECOMMENDATIONS FOR LEGISLATION AS IT MAY DEEM APPROPRIATE.

"(D) THE DIRECTOR SHALL PROVIDE THE COUNCIL WITH SUCH INFORMATION AS SHALL BE NECESSARY FOR THE COUNCIL TO DISCHARGE ITS FUNCTIONS UNDER THIS SECTION AND SHALL FURNISH THE COUNCIL WITH COPIES OF ALL GRANT APPLICATIONS WITHIN TEN DAYS OF RECEIPT THEREOF.

"FUNDS AVAILABLE

"SEC. 237. //42 USC 2830.// THERE IS ALSO AUTHORIZED TO BE APPROPRIATED NOT TO EXCEED $50,000,000 TO CARRY OUT SECTION 235 DURING THE FISCAL YEAR 1975, AND SUCH SUMS AS MAY BE NECESSARY DURING EACH OF THE TWO SUCCEEDING FISCAL YEARS, EXCEPT THAT IN NO EVENT MAY MORE THAN 12 1/2 PER CENTUM OF SUCH ADDITIONAL AMOUNTS BE USED IN ANY ONE STATE." //ANTE, P. 2296.//

ASSISTANCE FOR MAGRANT AND OTHER SEASONALLY EMPLOYED FARMWORKERS AND THEIR FAMILIES

SEC. 6. (A) SECTION 312(B)(3) OF THE ECONOMIC OPPORTUNITY ACT OF 1964 IS AMENDED BY STRIKING OUT "AND TRAINING" AND INSERTING IN LIEU THEREOF "AND DEVELOPMENTAL PROGRAMS". //42 USC 2862.//

(B) THE ECONOMIC OPPORTUNTIY ACT OF 1964 IS FURTHER AMENDED BY INSERTING AFTER SECTION 314 THEREOF THE FOLLOWING NEW SECTION:

"SPECIAL RESPONSIBILITIES

"SEC. 315. //42 USC 2865.// THE DIRECTOR SHALL BE RESPONSIBLE FOR COORDINATING PROGRAMS UNDER THIS PART WITH OTHER FEDERAL PROGRAMS DESIGNED TO ASSIST OR SERVE MIGRANT AND SEASONAL FARMWORKERS, AND FOR REVIEWING AND MONITORING SUCH PROGRAMS."

(C) IN PROVIDING FINANCIAL ASSISTANCE UNDER THE PROVISIONS OF PART B OF TITLE III OF THE ECONOMIC OPPORTUNITY ACT OF 1964, THE DIRECTOR SHALL GIVE SPECIAL CONSIDERATION TO ANY PUBLIC OR PRIVATE NONPROFIT AGENCY WHICH HAS PREVIOUSLY RECEIVED FINANCIAL ASSISTANCE THEREUNDER FOR THE PROVISION OF SERVICES FOR MAGRANT AND OTHER SEASONALLY EMPLOYED FARMWORKERS AND THEIR FAMILIES, TAKING INTO ACCOUNT FINANCIAL ASSISTANCE PROVIDED TO ANY SUCH AGENCY UNDER SECTION 303 OF THE COMPREHENSIVE EMPLOYMENT AND TRAINING ACT OF 1973. //42 USC 2861, 29 USC 873.//

COMPREHENSIVE HEALTH SERVICES

SEC. 7. TITLE IV OF THE ECONOMIC OPPORTUNITY ACT OF 1964 IS AMENDED TO READ AS FOLLOWS:

"TITLE IV--COMPREHENSIVE HEALTH SERVICES

"COMPREHENSIVE HEALTH SERVICES

"SEC. 401. //42 USC 2901.// (A) THE SECRETARY SHALL ESTABLISH WITHIN THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE A 'COMPREHENSIVE HEALTH SERVICES PROGRAM WHITH SHALL INCLUDE--

"(1) PROGRAMS TO AID IN DEVELOPING AND CARRYING OUT COMPREHENSIVE HEALTH SERVICES PROJECTS FOCUSED UPON THE NEEDS OF URBAN AND RURAL AREAS HAVING HIGH CONCENTRATIONS OR PROPORTIONS OF POVERTY AND MARKED INADEQUACY OF HEALTH SERVICES FOR THE POOR. THESE PROJECTS SHALL BE DESIGNED--

"(A) TO MAKE POSSIBLE, WITH MAXIMUM FEASIBLE USE OF EXISTING AGENCIES AND RESOURCES, THE PROVISION OF COMPREHENSIVE HEALTH SERVICES, SUCH AS PREVENTIVE MEDICAL, DIAGNOSTIC, TREATMENT, REHABILITATION, FAMILY PLANNING, NARCOTIC ADDICTION AND ALCOHOLISM PREVENTION AND REHABILITATION, MENTAL HEALTH, DENTAL, AND FOLLOWUP SERVICES, TOGETHER WITH NECESSARY RELATED FACILITIES AND SERVICES, EXCEPT IN RURAL AREAS WHERE THE LACK OF EVEN ELEMANTAL HEALTH SERVICES AND PERSONNEL MAY REQUIRE SIMPLER, LESS COMPREHENSIVE SERVICES TO BE ESTABLISHED FIRST; AND

"(B) TO ASSURE THAT THESE SERVICES ARE MADE READILY ACCESSIBLE TO LOW-INCOME RESIDENTS OF SUCH AREAS, ARE FURNISHED IN A MANNER MOST RESPONSIVE TO THEIR NEEDS AND WITH THEIR PARTICIPATION AND WHEREVER POSSIBLE ARE COMBINED WITH, OR INCLUDED WITHIN, ARRANGEMENTS FOR PROVIDING EMPLOYMENT, EDUCATION, SOCIAL, OR OTHER ASSISTANCE NEEDED BY THE FAMILIES AND INDIVIDUALS SERVED EXCEPT THAT PURSUANT TO SUCH REGULATIONS AS THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE MAY PRESCRIBE, PERSONS PROVIDED ASSISTANCE THROUGH PROGRAMS ASSISTED UNDER THIS PARAGRAPH WHO ARE NOT MEMBERS OF LOW-INCOME FAMILIES MAY BE REQUIRED TO MAKE PAYMENT, OR HAVE PAYMENT MADE IN THEIR BEHALF, IN WHOLE OR IN PART FOR SUCH ASSISTANCE; AND

"(2) PROGRAMS TO PROVIDE FINANCIAL ASSISTANCE TO PUBLIC OR PRIVATE AGENCIES TO PROJECTS DESIGNED TO DEVELOP KNOWLEDGE OR ENHANCE SKILLS IN THE FIELD OF HEALTH SERVICES FOR THE POOR. SUCH PROJECTS SHALL ENCOURAGE BOTH PROSPECTIVE AND PRACTICING HEALTH PROFESSIONALS TO DIRECT THEIR TALENTS AND ENERGIES TOWARD PROVIDING HEALTH SERVICES FOR THE POOR.

FUNDS FOR FINANCIAL ASSISTANCE UNDER PARAGRAPH (1) OF THIS SUBSECTION SHALL BE ALLOTTED ACCORDING TO NEED, AND CAPACITYOF APPLICANTS TO MAKE RAPID AND EFFECTIVE USE OF THAT ASSISTANCE, AND MAY BE USED AS NECESSARY, TO PAY THE FULL COSTS OF PROJECTS. BEFORE APPROVING ANY PROJECT, THE SECRETARY SHALL SOLICIT AND CONSIDER THE COMMENTS AND RECOMMENDATIONS OF THE LOCAL MEDICAL ASSOCIATIONS IN THE AREA AND SHALL CONSULT WITH APPROPRIATE FEDERAL, STATE, AND LOCAL HEALTH AGENCIES AND TAKE SUCH STEPS AS MAY BE REQUIRED TO ASSURE THAT THE PROGRAM WILL BE CARRIED ON UNDER COMPETENT PROFESSIONAL SUPERVISION AND THAT EXISTING AGENCIES PROVIDING RELATED SERVICES ARE FURNISHED ALL ASSISTANCE NEEDED TO PERMIT THEM TO PLAN FOR PARTICIPATION IN THE PROGRAM AND FOR THE NECESSARY CONTINUATION OF THOSE RELATED SERVICES. IN CARRYING OUT THE PROVISIONS OF PARAGRAPH 2 OF THIS SUBSECTION, THE SECRETARY IS AUTHORIZED TO PROVIDE OR ARRANGE FOR TRAINING AND STUDY IN THE FIELD OF HEALTH SERVICES FOR THE POOR.

"(C) PURSUANT TO REGULATIONS PRESCRIBED BY HIM, THE SECRETARY MAY ARRANGE FOR THE PAYMENT OF STIPENDS AND ALLOWANCES (INCLUDING TRAVEL AND SUBSISTENCE EXPENSES) FOR PERSONS UNDERGOING SUCH TRAINING AND STUDY AND FOR THEIR DEPENDENTS.

"(D) THE SECRETARY SHALL ACHIEVE EFFECTIVE COORDINATION OF PROGRAMS AND PROJECTS AUTHORIZED UNDER THIS SECTION WITH OTHER RELATED ACTIVITIES.

"DRUG REHABILITAION AND ALCOHOLIC COUNSELING PROGRAMS

"SEC. 402. //42 USC 2902.// IN ADDITION TO THE AUTHORITY CONFERRED UNDER SECTION 401 OF THIS TITLE THE SECRETARY IS AUTHORIZED, AS PART OF THE COMPREHENSIVE HEALTH SERVICES PROGRAM, TO CARRY OUT THE FOLLOWING PROGRAMS:

"(1) AN 'ALCOHOLIC COUNSELING AND RECOVERY' PROGRAM DESIGNED TO DISCOVER AND TREAT THE DISEASE OF ALCOHOLISM. SUCH PROGRAM SHOULD BE COMMUNITY BASED, SERVE THE OBJECTIVE OF THE MAINTENANCE OF THE FAMILY STRUCTURE AS WELL AS THE RECOVERY OF THE INDIVIDUAL ALCOHOLIC, ENCOURAGE THE USE OF NEIGHBORHOOD FACILITIES AND THE SERVICES OF RECOVERED ALCOHOLICS AS COUNSELORS, AND EMPHASIZE THE REENTRY OF THE ALCOHOLIC INTO SOCIETY RATHER THAN THE INSTUTITIONALIZATION OF THE ALCOHOLIC.

"(2) A 'DRUG REHABILITATION' PROGRAM DESIGNED TO DISCOVER THE CAUSES OF DRUG ABUSE AND ADDICTION, TO TREAT NARCOTIC AND DRUG ADDICTION AND THE DEPENDENCE ASSOCIATED WITH DRUG ABUSE, AND TO REHABILITATE THE DRUG ABUSER AND DRUG ADDICT. SUCH PROGRAM SHOULD DEAL WITH THE ABUSE OR ADDITION RESULTING FROM THE USE OF NARCOTIC DRUGS SUCH AS HEROIN, OPIUM, ANC COCAINE, STIMULANTS SUCH AS AMPHETAMINES, DEPRESSANTS, MARIHAUNA, HALLUCINOGENS, AND TRANQUILIZERS. SUCH PROGRAM SHOULD BE COMMUNITY BASED, SERVE THE OBJECTIVE OF THE MAINTENANCE OF THE FAMILY STRUCTURE AS WELL AS THE RECOVERY OF THE INDIVIDUAL DRUG ABUSER OR ADDICT, ENCOURAGE THE USE OF NEIGHBORHOOD FACILITIES AND THE SERVICES OF RECOVERED DRUG ABUSERS AND ADDICTS AS COUNSELORS, AND EMPHASIZE THE REENTRY OF THE DRUG ABUSER AND ADDICT INTO SOCIETY RATHER THAN HIS INSTITUTIONALIZATION. THE DIRECTOR IS AUTHORIZED TO UNDERTAKE SPECIAL PROGRAMS AIMED AT PROMOTING EMPLOYMENT OPPORTUNITIES FOR REHABILITATED ADDICTS OR ADDICTS ENROLLED AND PARTICIPATING IN METHADONE MAINTENANCE TREATMENT OR THERAPEUTIC PROGRAMS, AND ASSISTING EMPLOYERS IN DEALING WITH ADDICTION AND DRUG ABUSE AND DEPENDENCY PROBLEMS AMONG FORMERLY HARDCORE UNEMPLOYED SO THAT THEY CAN BE MAINTAINED IN EMPLOYMENT. IN UNDERTAKING SUCH PROGRAMS, THE DIRECTOR SHALL GIVE SPECIAL PRIORITY TO VETERANS AND EMPLOYERS OF SIGNIFICANT NUMBERS OF VETERANS, WITH PRIORITY TO THOSE AREAS WITHIN THE STATES HAVING THE HIGHEST PERCENTAGES OF ADDICTS. THE DIRECTOR IS FURTHER AUTHORIZED TO ESTABLISH PROCEDURES AND POLICIES WHICH WILL ALLOW CLIENTS TO COMPLETE A FULL COURSE OF REHABILITATION EVEN THOUGH THEY BECOME NON-LOW-INCOME BY VIRTUE OF BECOMING EMPLOYED AS A PART OF THE REHABILITATION PROCESS BUT THERE SHALL BE NO CHANGE IN INCOME ELIGIBILITY CRITERIA FOR INITIAL ADMISSION TO TREATMENT AND REHABILITATION PROGRAMS UNDER THIS ACT."

HEADSTART AND FOLLOW THROUGH

SEC. 8. (A) TITLE V OF THE ECONOMIC OPPORTUNITY ACT OF 1964 IS AMENDED BY STRIKING OUT THE HEADING THEREOF AND ALL OF SUCH TITLE PRECEDING PART B THEREOF (WHICH IS HEREBY REDESIGNATED AS PART D) AND INSERTING IN LIEU THEREOF THE FOLLOWING:

"TITLE V--HEADSTART AND FOLLOW THROUGH

"SHORT TITLE

"SEC. 501. //42 USC 2921.// THIS TITLE MAY BE CITED AS THE "HEADSTART-FOLLOW THROUGH ACT" (HEREINAFTER IN THIS TITLE REFERRED TO AS THE "ACT").

"STATEMENT OF PURPOSE

"SEC. 502. //42 USC 2922.// IN RECOGNITION OF THE ROLE WHICH PROJECT HEADSTART HAS PLAYED IN THE EFFECTIVE DELIVERY OF COMPREHENSIVE HEALTH, EDUCATIONAL, NUTRITIONAL, SOCIAL, AND OTHER SERVICES TO ECONOMICALLY DISADVANTAGED CHILDREN AND THEIR FAMILIES, THE ACT EXTENDS THE AUTHORITY FOR APPROPRIATION OF FUNDS FOR THAT PROGRAM.

"POLICY WITH RESPECT TO INDIAN AND MIGRANT CHILDREN

"SEC. 503. //42 USC 2923.// IN CARRYING OUT THE PURPOSES OF PART A THE SECRETARY SHALL CONTINUE THE ADMINISTRATIVE ARRANGEMENT RESPONSIBLE FOR MEETING THE NEEDS OF MIGRANT AND INDIAN CHILDREN AND SHALL ASSURE THAT APPROPRIATE FUNDING IS PROVIDED TO MEET SUCH NEEDS.

"PART A--HEADSTART PROGRAMS

"FINANCIAL ASSISTANCE FOR HEADSTARY PROGRAMS

"SEC. 511. //42 USC 2928.// THE SECRETARY MAY, UPON APPLICATION BY AN AGENCY WHICH IS ELIGIBLE FOR DESIGNATION AS A HEADSTART AGENCY PURSUANT TO SECTION 514, PROVIDE FINANCIAL ASSISTANCE TO SUCH AGENCY FOR THE PLANNING, CONDUCT, ADMINISTRATION, AND EVALUATION OF A HEADSTART PROGRAM FOCUSED PRIMARILY UPON CHILDREN FROM LOW-INCOME FACILIES WHO HAVE NOT REACHED THE AGE OF COMPULSORY SCHOOL ATTENDANCE WHICH (1) WILL PROVIDE SUCH COMPREHENSIVE HEALTH, NUTRITIONAL, EDUCATIONAL, SOCIAL, AND OTHER SERVICES AS WILL AID THE CHILDREN TO ATTAIN THEIR FULL POTENTIAL, AND (2) WILL PROVIDE FOR DIRECT PARTICIPATION OF THE PARENTS OF SUCH CHILDREN IN THE DEVELOPMENT, CONDUCT, AND OVERALL PROGRAM DIRECTION AT THE LOCAL LEVEL.

"SEC. 512. //42 USC 2928A.// THERE ARE AUTHORIZED TO BE APPROPRIATED FOR CARRYING OUT THE PURPOSES OF THIS PART SUCH SUMS AS MAY BE NECESSARY FOR FISCAL YEARS 1975 THROUGH 1977.

"ALLOTMENT OF FUNDS; LIMITATIONS ON ASSISTANCE

"SEC. 513. //42 USC 2928B.// OF THE SUMS APPROPRIATED PURSUANT TO SECTION 512 FOR ANY FISCAL YEAR BEGINNING AFTER JUNE 30, 1975, THE SECRETARY SHALL ALLOT NOT MORE THAN 2 PER CENTUM AMONG GUAM, AMERICAN SAMOA, THE TRUST TERRITORY OF THE PACIFIC ISLANDS, AND THE VIRGIN ISLANDS, ACCORDING TO THEIR RESPECTIVE NEEDS. IN ADDITION, THE SECRETARY SHALL RESERVE NOT MORE THAN 20 PER CENTUM OF THE SUMS SO APPROPRIATED FOR USE IN ACCORDANCE WITH SUCH CRITERIA AND PROCEDURES AS HE MAY PRESCRIBE. THE REMAINDER SHALL BE ALLOTTED AMONG THE STATES, IN ACCORDANCE WITH THE LATEST SATISFACTORY AVAILABLE DATA, SO THAT EQUAL PROPORTIONS ARE DISTRIBUTED ON THE BASIS OF (1) THE RELATIVE NUMBER OF PUBLIC ASSISTANCE RECIPIENTS IN EACH STATE AS COMPARED TO ALL STATES, AND (2) THE RELATIVE NUMBER OF RELATED CHILDREN LIVING WITH FAMILIES WITH INCOMES BELOW THE POVERTY LINE IN EACH STATE AS COMPARED TO ALL STATES; BUT THERE SHALL BE MADE AVAILABLE, FOR USE BY HEADSTARE PROGRAMS WITHIN EACH STATE, NO LESS FUNDS FOR ANY FISCAL YEAR THAN WERE OBLIGATED FOR USE BY HEADSTART PROGRAMS WITHIN SUCH STATE WITH RESPECT TO FISCAL YEAR 1975. ALLOCATION OF SUCH INCREASES WITHIN EACH STATE SHALL, TO THE EXTENT FEASIBLE, BE MADE IN SUCH MANNER AS TO REFLECT THE PROPORTIONATE INCREASES IN PROGRAM COSTS INCURRED BY GRANTEES, IN ACCORDANCE WITH REGULATIONS WHICH THE SECRETARY SHALL PRESCRIBE FOR THIS PURPOSE. FOR THE PURPOSE OF THIS SUBSECTION, THE SECRETARY SHALL UTILIZE THE CRITERIA OF POVERTY USED BY THE BUREAU OF THE CENSUS IN COMPILING THE 1970 DECENNIAL CENSUS.

"(B) FINANCIAL ASSISTANCE EXTENDED UNDER THIS PART FOR A HEADSTARY PROGRAM SHALL NOT EXCEED 80 PER CENTUM OF THE APPROVED COSTS OF THE ASSISTED PROGRAM OR ACTIVITIES, EXCEPT THAT THE SECRETARY MAY APPROVE ASSISTANCE IN EXCESS OF SUCH PERCENTAGE IF HE DETERMINES, IN ACCORDANCE WITH REGULATIONS ESTABLISHING OBJECTIVE CRITERIA, THAT SUCH ACTION IS REQUIRED IN FURTHERANCE OF THE PURPOSES OF THIS PART. NON-FEDERAL CONTRIBUTIONS MAY BE IN CASH OR IN KIND, FAIRLY EVALUATED, INCLUDING BUT NOT LIMITED TO PLANT, EQUIPMENT, OR SERVICES. THE SECRETARY SHALL NOT REQUIRE NON-FEDERAL CONTRIBUTIONS IN EXCESS OF 20 PER CENTUM OF THE APPROVED COSTS OF PROGRAMS OR ACTIVITIES ASSISTED UNDER THIS PART.

"(C) NO PROGRAMS SHALL BE APPROVED FOR ASSISTANCE UNDER THIS PART UNLESS THE SECRETARY IS SATISFIED THAT THE SERVICES TO BE PROVIDED UNDER SUCH PROGRAM WILL BE IN ADDITION TO, AND NOT IN SUBSTITUTION FOR, COMPARABLE SERVICES PREVIOUSLY PROVIDED WITHOUT FEDERAL ASSISTANCE. THE REQUIREMENT IMPOSED BY THE PRECEDING SENTENCE SHALL BE SUBJECT TO SUCH REGULATIONS AS THE SECRETARY MAY PRESCRIBE.

"(D) THE SECRETARY SHALL ESTABLISH POLICIES AND PROCEDURES DESIGNED TO ASSURE THAT FOR FISCAL YEAR 1975 NOT LESS THAN 10 PER CENTUM OF THE TOTAL NUMBER OF ENROLLMENT OPPORTUNITIES IN HEADSTART PROGRAMS IN THE NATION SHALL BE AVAILABLE FOR HANDICAPPED CHILDREN AND THAT FOR FISCAL YEAR 1976 AND THEREAFTER NO LESS THAN 10 PER CENTUM OF THE TOTAL NUMBER OF ENROLLMENT OPPORTUNITIES IN HEADSTART PROGRAMS IN EACH STATE SHALL BE AVAILABLE FOR HANDICAPPED CHILDREN (AS DEFINED IN PARAGRAPH (1) OF SECTION 602 OF THE EDUCATION OF THE HANDICAPPED ACT) AND THAT SERVICES SHALL BE PROVIDED TO MEET THEIR SPECIAL NEEDS. //20 USC 1401.// THE SECRETARY SHALL REPORT TO THE CONGRESS AT LEAST ANNUALLY ON THE STATUS OF HANDICAPPED CHILDREN IN HEADSTART PROGRAMS, INCLUDING THE NUMBER OF CHILDREN BEING SERVED, THEIR HANDICAPPING CONDITIONS, AND THE SERVICES BEING PROVIDED SUCH CHILDREN.

"(E) THE SECRETARY SHALL ADOPT APPROPRIATE ADMINISTRATIVE MEASURES TO ASSURE THAT THE BENEFITS OF THIS PART WILL BE DISTRIBUTED EQUITABLY BETWEEN RESIDENTS OF RURAL AND URBAN AREAS.

"DESIGNATION OF HEADSTART AGENCIES

"SEC. 514. (A) //42 USC 2928C.// THE SECRETARY IS AUTHORIZED TO DESIGNATE AS A HEADSTART AGENCY ANY LOCAL PUBLIC OR PRIVATE NONPROFIT AGENCY WHICH (1) HAS THE POWER AND AUTHORITY TO CARRY OUT THE PURPOSES OF THIS PART AND PERFORM THE FUNCTIONS SET FORTH IN SECTION 515 WITHIN A COMMUNITY, AND (2) IS DETERMINED BY THE SECRETARY TO BE CAPABLE OF PLANNING, CONDUCTING, ADMINISTERING, AND EVALUATING, EITHER DIRECTLY OR BY OTHER ARRANGEMENTS, A HEADSTART PROGRAM.

"(B) FOR THE PURPOSES OF THIS TITLE, A COMMUNITY MAY BE A CITY, COUNTY, MULTICITY, OR MULTICOUNTY UNIT WITHIN A STATE, AN INDIAN RESERVATION, OR A NEIGHBOTHOOD OR OTHER AREA (IRRESPECTIVE OF BOUNDARIES OR POLITICAL SUBDIVISIONS) WHICH PROVIDES A SUITABLE ORGANIZATION BASE AND POSSESSES THE COMMONALITY OF INTEREST NEEDED TO OPERATE A HEADSTART PROGRAM.

"(C) IN THE ADMINISTRATION OF THE PROVISIONS OF THIS SECTION, THE SECRETARY SHALL GIVE PRIORITY IN THE DESIGNATION OF HEADSTART AGENCIES TO ANY LOCAL PUBLIC OR PRIVATE NONPROFIT AGENCY WHICH IS RECEIVING FUNDS UNDER ANY HEADSTART PROGRAM ON THE DATE OF THE ENACTMENT OF THIS ACT, EXCEPT THAT THE SECRETARY SHALL, BEFORE GIVING SUCH PRIORITY, DETERMINE THAT THE AGENCY INVOLVED MEETS PROGRAM AND FISCAL REQUIREMENTS ESTABLISHED BY THE SECRETARY.

"POWERS AND FUNCTIONS OF HEADSTART AGENCIES

"SEC. 515. //42 USC 2928D.// (A) IN ORDER TO BE DESIGNATED AS A HEADSTART AGENCY UNDER THIS PART, AN AGENCY MUST HAVE AUTHORITY UNDER ITS CHARTER OR APPLICABLE LAW TO RECEIVE AND ADMINISTER FUNDS UNDER THIS PART, FUNDS AND CONTRIBUTIONS FROM PRIVATE OR LOCAL PUBLIC SOURCES WHICH MAY BE USED IN SUPPORT OF A HEADSTART PROGRAM, AND FUNDS UNDER ANY FEDERAL OR STATE ASSISTANCE PROGRAM PURSUANT TO WHICH A PUBLIC OR PRIVATE NONPROFIT AGENCY (AS THE CASE MAY BE) ORGANIZED IN ACCORDANCE WITH THIS PART, COULD ACT A SGRANTEE, CONTRACTOR, OR SPONSOR OF PROJECTS APPROPRIATE FOR INCLUSION IN A HEADSTART PROGRAM. SUCH AN AGENCY MUST ALSO BE EMPOWERED TO TRANSFER FUNDS SO RECEIVED, AND TO DELEGATE POWERS TO OTHER AGENCIES, SUBJECT TO THE POWERS OF ITS GOVERNING BOARD AND ITS OVERALL PROGRAM RESPONSIBILITIES. THIS POWER TO TRANSFER SUNDS AND DELEGATE POWERS MUST INCLUDE THE POWER TO MAKE TRANSFERS AND DELEGATIONS COVERING COMPONENT PROJECTS IN ALL CASES WHERE THIS WILL CONTRIBUTE TO EFFICIENCY AND EFFECTIVENESS OR OTHERWISE FURTHER PROGRAM OBJECTIVES.

"(B) IN ORDER TO BE SO DESIGNATED, A HEADSTART AGENCY MUST ALSO (1) ESTABLISH EFFECTIVE PROCEDURES BY WHICH PARENTS AND AREA RESIDENTS CONCERNED WILL BE ENABLED TO INFLUENCE THE CHARACTER OF PROGRAMS AFFECTING THEIR INTERESTS, (2) PROVIDE FOR THEIR REGULAR PARTICIPATION IN THE IMPLEMENTATION OF SUCH PROGRAMS, AND (3) PROVIDE TECHNICAL AND OTHER SUPPORT NEEDED TO ENABLE PARENTS AND AREA RESIDENTS TO SECURE ON THEIR OWN BEHALF AVAILABLE ASSISTANCE FROM PUBLIC AND PRIVATE SOURCES.

"SUBMISSION OF PLANS TO GOVERNORS

"SEC. 516. //42 USC 2928E.// IN CARRYING OUT THE PROVISIONS OF THIS PART, NO CONTRACT, AGREEMENT, GRANT, OR OTHER ASSISTANCE SHALL BE MADE FOR THE PURPOSE OF CARRYING OUT A HEADSTART PROGRAM WITHIN A STATE UNLESS A PLAN SETTING FORTH SUCH PROPOSED CONTRACT, AGREEMENT, GRANT, OR OTHER ASSISTANCE HAS BEEN SUBMITTED TO THE GOVERNOR OF THE STATE, AND SUCH PLAN HAS NOT BEEN DISAPPROVED BY THE GOVERNOR WITHIN THIRTY DAYS OF SUCH SUBMISSION, OR, IF SO DISAPPROVED, HAS BEEN RECONSIDERED BY THE SECRETARY AND FOUND BY HIM TO BE FULLY CONSISTENT WITH THE PROVISIONS AND IN FURTHERANCE OF THE PURPOSES OF THIS APRT. FUNDS TO COVER THE COSTS OF TH* PROPOSED CONTRACT, AGREEMENT, GRANT, OR OTHER ASSISTANCE SHALL BE OBLIGATED FROM THE APPROPRIATION WHICH IS CURRENT AT THE TIME THE PLAN IS SUBMITTED TO THE GOVERNOR. THIS SECTION SHALL NOT, HOWEVER, APPLY TO CONTRACTS, AGREEMENTS, GRANTS, LOANS, OR OTHER ASSISTANCE TO ANY INSTITUTION OF HIGHER EDUCATION IN EXISTENCE ON THE DATE OF ENACTMENT OF THIS ACT.

"ADMINISTRATIVE REQUIREMENTS AND STANDARDS

"SEC. 517. //42 USC 2928F.// (A) EACH HEADSTART AGENCY SHALL OBSERVE STANDARDS OF ORGANIZATION, MANAGEMENT, AND ADMINISTRATION WHICH WILL ASSURE, SO FAR AS REASONABLY POSSIBLE, THAT ALL PROGRAM ACTIVITIES ARE CONDUCTED IN A MANNER CONSISTENT WITH THE PURPOSES OF THIS PART AND THE OBJECTIVE OF PROVIDING ASSISTANCE EFFECTIVELY, EFFICIENTLY, AND FREE OF ANY TAINT OF PARTISAN POLITICAL BIAS OR PERSONAL OR FAMILY FAVORITISM. EACH SUCH AGENCY SHALL ESTABLISH OR ADOPT RULES TO CARRY OUT THIS SECTION, WHICH SHALL INCLUDE RULES TO ASSURE FULL STAFF ACCOUNTABILITY IN MATTERS GOVERNED BY LAW, REGULATIONSH, OR AGENCY POLICY. EACH AGENCY SHALL ALSO PROVEDE FOR REASONABLE PUBLIC ACCESS TO INFORMATION, INCLUDING BUT NOT LIMITED TO PUBLIC HEARINGS AT THE REQUEST OF APPROPRIATE COMMUNITY GROUPS AND REASONABLE PUBLIC ACCESS TO BOOKS AND RECORDS OF THE AGENCY OR OTHER AGENCIES ENGAGED IN PROGRAM ACTIVITIES OR OPERATIONS INVOLVING THE USE OF AUTHORITY OR FUNDS FOR WHICH IT IS RESPONSIBLE. EACH SUCH AGENCY SHALL ADOPT FOR ITSELF AND OTHER AGNCIES USING FUNDS OR EXERCISING AUTHORITY FOR WHICH IT IS RESPONSIBLE, RULES DESIGNED TO ESTABLISH SPECIFIC STANDARDS GOVERNING SALARIES, SALARY INCREASES, TRAVEL AND PER DIEM ALLOWANCES, AND OTHER EMPLOYEE BENEFITS; TO ASSURE THAT ONLY PERSONS CAPABLE OF DISCHARGING THEIR DUTIES WITH COMPETENCE AND INTEGRITY ARE EMPLOYED AND THAT EMPLOYEES ARE PROMOTED OR ADVANCED UNDER IMPARTIAL PROCEDURES CALCULATED TO IMPROVE AGENCY PERFORMANCE AND EFFECTIVENESS; TO GUARD AGANIST PERSONAL OR FINANCIAL CONFLICTS OF INTERESTS; AND TO DEFINE EMPLOYEE DUTIES IN AN APPROPRIATE MANNER WHICH WILL IN ANY CASE PRECLUDE EMPLOYEES FROM PARTICIPATING, IN CONNECTION WITH THE PERFORMANCE OF THEIR DUTIES, IN ANY FORM OF PICKETING, PROTEST, OR OTHER DIRECT ACTION WHICH IS IN VIOLATION OF LAW.

"(B) NO FINANCIAL ASSISTANCE SHALL BE EXTENDED UNDER THE ACT IN ANY CASE IN WHICH THE SECRETARY DETERMINES THAT THE COSTS OF DEVELOPING AND ADMINISTERING A PROGRAM ASSISTED UNDER THE ACT EXCEED 15 PER ENCTUM OF THE TOTAL COSTS, INCLUDING NON-FEDERAL CONTRIBUTIONS TO SUCH COSTS, OF SUCH PROGRAM. THE SECRETARY SHALL ESTABLISH BY REGULATION, CRITERIA FOR DETERMINING (I) THE COSTS OF DEVELOPING AND ADMINISTERING SUCH PORGRAM AND (II) THE TOTAL COSTS OF SUCH PROGRAM. IN ANY CASE IN WHICH THE SECRETARY DETERMINES THAT THE COST OF ADMINISTERING SUCH PROGRAM DOES NOT EXCEED 15 PER CENTUM AND SUCH TOTAL COSTS BUT IS, IN HIS JUDGMENT, EXCESSIVE, HE SHALL FORTHWITH REQUIRE THE RECITIENT OF SUCH FINANCIAL ASSISTANCE TO TAKE SUCH STEPS PRESCRIBED BY HIM AS WILL ELIMINATE SUCH EXCESSIVE ADMINISTRATIVE COST, INCLUDING THE SHARING BY ONE OR MORE HEADSTART AGENCIES OF A COMMON DIRECTOR AND OTHER ADMINISTRATIVE PERSONNEL. THE SECRETARY MAY WAIVE THE LIMITATION PRESCRIBED BY THIS PARAGRAPH FOR SPECIFIC PERIODS OF TIME NOT TO EXCEED SIX MONTHS WHENEVER HE DETERMINES THAT SUCH A WAIVER IS NECESSARY IN ORDER TO CARRY OUT THE PURPOSES OF THE ACT.

"(C) THE SECRETARY SHALL PRESCRIBE RULES OR REGULATIONS TO SUPPLEMENT SUBSECTION (A) OF THIS SECTION, WHICH SHALL BE BINDING ON ALL AGENCIES CARRYING ON HEADSTART PROGRAM ACTIVITIES WITH FINANCIAL ASSISTANCE UNDER THIS PART. HE MAY, WHERE APPROPRIATE, ESTABLISH SPECIAL OR SIMPLIFIED REQUIREMENTS FOR SMALLER AGENCIES OR AGENCIES OPERATING IN RURAL AREAS. POLICIES AND PROCEDURES SHALL BE ESTABLISHED TO INSURE THAT INDIRECT COSTS ATTRIBUTABLE TO THE COMMON OR JOINT USE OF FACILITIES AND SERVICES BY PROGRAMS ASSISTED UNDER THIS PART AND OTHER PROGRAMS SHALL BE FAIRLY ALLOCATED AMONG THE VARIOUS PROGRAMS WHICH UTILIZE SUCH FACILITIES AND SERVICES.

"(D) AT LEAST THIRTY DAYS PRIOR TO THEIR EFFECTIVE DATE, ALL RULES, REGULATIONS, GUIDELINES, INSTRUCTIONS, AND APPLICATION FORMS SHALL BE PUBLISHED IN THE FEDERAL REGISTER AND SHALL BE SENT TO EACH GRANTEE WITH THE NOTIFIACTION THAT EACH SUCH GRANTEE HAS THE RIGHT TO SUBMIT COMMENS PERTAINING THERETO TO THE SECRETARY PRIOR TO THE FINAL ADOPTION THEREOF.

"PARTICIPATION IN HEADSTART PROGRAMS

"SEC. 518. //42 USC 2928G.// (A) THE SECRETARY SHALL BY REGULATION PRESCRIBE ELIGIBILITY FOR THE PARTICIPATION OF PERSONS IN HEADSTART PROGRAMS ASSISTED UNDER THIS PART. SUCH CRITERIA MAY PROVIDE (1) THAT CHILDREN FROM LOW-INCOME FAMILIES SHALL BE ELIGIBLE FOR PARTICIPATION IN PROGRAMS ASSISTED UNDER THIS PART IF THEIR FAMILIES ARE BELOW THE POVERTY LINE, OR IF THEIR FAMILIES ARE ELIGIBLE OR IN THE ABSENCE OF CHILD CARE WOULD POTENTIALLY BE ELIGIBLE FOR PUBLIC ASSISTANCE; AND (2) PURSUANT TO SUCH REGULATIONS AS THE SECRETARY SHALL PRESCRIBE THAT PROGRAMS ASSISTED UNDER THIS PART MAY INCLUDE, TO A REASONABLE EXTENT, PARTICIPATION OF CHILDREN IN THE AREA SERVED WHO WOULD BENEFIT FROM SUCH PROGRAMS BUT WHOSE FAMILIES DO NOT MEET THE LOW-INCOME CRITERIA PRESCRIBED PURSUANT TO CLAUSE (1).

"(B) TEH SECRETARY SHALL NOT PRESCRIBE ANY FEE SCHEDULE OR OTHERWISE PROVIDE FOR THE CHARGING OF ANY FEES FOR PARTICIPATION IN HEADSTART PROGRAMS, UNLESS SUCH FEES ARE AUTHORIZED BY LEGISLATION HEREAFTER ENACTED. NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO PREVENT THE FAMILIES GOF CHILDREN WHO PARTICIPATE IN HEADSTART PROGRAMS AND WHO ARE WILLING AND ABLE TO PAY THE FULL COST OF SUCH PARTICIPATION FROM DOING SO.

"APPEALS, NOTICE, AND HEARING

"SEC. 519. //42 USC 2928H.// THE SECRETARY SHALL PRESCRIBE PROCEDURES TO ASSURE THAT--

"(1) SPECIAL NOTICE OF AND AN OPPORTUNITY FOR A TIMELY AND ESPEDITIOUS APPEAL TO THE SECRETARY WILL BE PROVIDED FOR AN AGENCY OR ORGANIZATION WHICH DESIRES TO SERVE AS A DELEGATE AGENCY UNDER THIS PART AND WHOSE APPLICATION TO THE HEADSTART AGENCY HAS BEEN WHOLLY OR SUBSTANTIALLY REJECTED OR HAS NOT BEEN ACTED UPON WITHIN A PERIOD OF TIME DEEMED REASONABLE BY THE SECRETARY, IN ACCORDANCE WITH REGULATIONS WHICH HE SHALL PRESCRIBE;

"(2) FINANCIAL ASSISTANCE UNDER THIS PART SHALL NOT BE SUSPENDED, EXCEPT IN EMERGANCY SITUATIONS, UNLESS THE RECIPIENT AGENCY HAS BEEN GIVEN REASONABLE NOTICE AND OPPORTUNITY TO SHOW CAUSE WHY SUCH ACTION SHOULD NOT BE TAKEN; AND

"(3) FINANCIAL ASSISTANCE UNDER THIS PART SHALL NOT BE TERMINATED, AN APPLICATION FOR REFUNDING SHALL NOT BE DENIED, AND A SUSPENSION OF FINANCIAL ASSISTANCE WHALL NOT BE CONTINUED FOR LONGER THAN THIRTY DAYS, UNLESS THE RECIPIENT HAS BEEN AFFORDED REASONABLE NOTICE AND OPPORTUNITY FOR A FULL AND FAIR HEARING.

"SEC. 520. //42 USC 2928I.// (A) EACH RECIPIENT OF FINANCIAL ASSISTANCE UNDER THIS PART SHALL KEEP SUCH RECORDS AS THE SECRETARY SHALL PRESCRIBE, INCLUDING RECORDS WHICH FULLY DISCLOSE THE AMOUNT AND DISPOSITION BY SUCH RECIPIENT OF THE PROCEEDS OF SUCH FINANCIAL ASSISTANCE, THE TOTAL COST OF THE PROJECT OR UNDERTAKING IN CONNECTION WITH WHICH SUCH FINANCIAL ASSISTANCE IS GIVEN OR USED, THE AMOUNT OF THAT PORTION OF THE COST OF THE PROJECT OR UNDERTAKING SUPPLIED BY OTHER SOURCES, AND SUCH OTHER RECORDS AS WILL FACILITATE AN EFFECTIVE AUDIT.

"(B) THE SECRETARY AND THE COMPTROLLER GENERAL OF THE UNITED STATES, OR ANY OT THEIR DULY AUTHORIZED REPRESENTATIVES, SHALL HAVE ACCESS FOR THE PURPOSE OF AUDIT AND EXAMINATION TO ANY BOOKS, DOCUMENTS, PAPERS, AND RECORDS OF THE RECIPIENTS THAT ARE PERTINENT TO THE FINANCIAL ASSISTANCE RECEIVED UNDER THIS PART.

"TECHNICAL ASSISTANCE AND TRAINING

"SEC. 521. //42 USC 2928J.// THE SECRETARY MAY PROVIDE, DIRECTLY OR THROUGH GRANTS OR OTHER ARRANGEMENTS, (1) TECHNICAL ASSISTANCE TO COMMUNITIES IN DEVELOPING, CONDUCTING, AND ADMINISTERING PROGRAMS UNDER THIS PART, AND (2) TRAINING FOR SPECIALIZED OR OTHER PERSONNEL NEEDED IN CONNECTION WITH HEADSTART PROGRAMS.

"RESEARCH, DEMONSTRATION, AND PILOT PROJECTS

"SEC. 522. //42 USC 2928K.// (A) THE SECRETARY MAY PROVIDE FINANCIAL ASSISTANCE THROUGH GRANTS OR CONTRACTS FOR RESEARCH, DEMONSTRATION, OR PILOT PROJECTS CONDUCTED BY PUBLIC OR PRIVATE AGENCIES WHICH ARE DESIGNED TO TEST OR ASSIST IN THE DEVELOPMENT OF NEW APPROACHES OR METHODS THAT WILL AID IN OVERCOMING SPECIAL PROBLEMS OR OTHERWISE IN FURTHERING THE PURPOSES OF THIS PART.

"(B) THE SECRETARY SHALL ESTABLISH AN OVERALL PLAN TO GOVERN THE APPROVAL OF RESEARCH, DEMONSTRATION, OR PILOT PROJECTS AND THE USE OF ALL RESEARCH AUTHORITY UNDER THIS PART. SUCH PLAN SHALL SET FORTH SPECIFIC OBJECTIVES TO BE ACHIEVED AND PRIORITIES AMONG SUCH OBJECTIVES.

"ANNOUNCEMENT OF RESEARCH, DEMONSTRATION, AND PILOT PROJECTS CONTRACTS

"SEC. 523. //42 USC 2928L.// (A) THE SECRETARY SHALL MAKE A PUBLIC ANNOUNCEMENT CONCERNING--

"(1) THE TITLE, PURPOSE, INDENDED COMPLETION DATE, IDENTITY OF THE GRANTEE OR CONTRACTOR, AND PROPOSED COST OF ANY GRANT OR CONTRACT WITH A PRIVATE OR NON-FEDERAL PUBLIC AGENCY OR ORGANIZATION FOR ANY RESEARCH, DEMONSTRATION, OR PILOT PROJECT UNDER THIS TITLE; AND

"(2) THE RESULTS, FINDINGS, DATA, OR RECOMMENDATIONS MADE OR REPORTED AS A RESULT OF SUCH ACTIVITIES.

"(B) THE PUBLIC ANNOUNCEMENTS REQUIRED BY SUBSECTION (A) OF THIS SECTION SHALL BE MADE WITHIN THIRTY DAYS OF MAKING SUCH GRANTS OR CONTRACTS, AND THE PUBLIC ANNOUNCEMENTS REQUIRED BY SUBSECTION (B) OF THIS SECTION SHALL BE MADE WITHIN THIREY DAYS OF THE RECEIPT OF SUCH RESULTS.

"(C) THE DIRECTOR SHALL TAKE NECESSARY ACTION TO ASSURE THAT ALL STUDIES, PROPOSALS, AND DATA PRODUCED OR DEVELOPED WITH FEDERAL FUNDS EMPLOYED UNDER THIS TITLE SHALL BECOME THE PROPERTY OF THE UNITED STATES.

"(D) THE DIRECTOR SHALL PUBLISH STUDIES OF THE RESULTS OF ACTIVITIES CARRIED OUT PURSUANT TO THIS TITLE NOT LATER THAN NINETY DAYS AFTER THE COMPLETION THEREOF. THE DIRECTOR SHALL SUBMIT TO THE APPROPRIATE COMMITTEES OF THE CONGRESS COPIES OF ALL SUCH STUDIES.

"EVALUATION

"SEC. 524. //42 USC 2928M.// (A) THE SECRETARY SHALL PROVIDE, DIRECTLY OR THROUGH GRANTS OR CONTRACTS, FOR THE CONTINUING EVALUATION OF PROGRAMS UNDER THIS PART, INCLUDING EVALUATIONS THAT MEASURE AND EVALUATE THE IMPACT OF PROGRAMS AUTHORIZED BY THIS PART, IN ORDER TO DETERMINE THEIR EFFECTIVENESS IN ACHIEVING STATED GOALS, THEIR IMPACT ON RELATED PROGRAMS, AND THEIR STRUCTURE AND MECHANISMS FOR DELIVERY OF SERVICES, INCLUDING, WHERE APPROPRIATE, COMPARISONS WITH APPROPRIATE CONTROL GROUPS COMPOSED OF PERSONS WHO HAVE NOT PARTICIPATED IN SUCH PROGRAMS. EVALUATIONS SHALL BE CONDUCTED BY PERSONS NOT DIRECTLY INVOLVED IN THE ADMINISTRATION OF THE PROGRAM OR PROJECT EVALUATION.

"(B) PRIOR TO OBLIGATING FUNDS FOR THE PROGRAMS AND PROJECTS COVERED BY THIS PART WITH RESPECT TO FISCAL YEAR 1976, THE SECRETARY SHALL DEVELOP AND PUBLISH GENERAL STANDARDS FOR EVALUATION OF PROGRAM AND PROJECT EFFECTIVENESS IN ACHIEVING THE OBJECTIVES OF THIS PART. THE EXTENT TO WHICH SUCH STANDARDS HAVE BEEN MET SHALL BE CONSIDERED IN DECIDING WHETHER TO RENEW OR SUPPLEMENT FINANCIAL ASSISTANCE AUTHORIZED UNDER THIS PART.

"(C) IN CARRYING OUT EVALUATIONS UNDER THIS PART, THE SECRETARY MAY REQUIRE HEADSTART AGENCIES TO PROVIDE FOR INDEPENDENT EVALUATIONS.

"(D) IN CARRYING OUT EVALUATIONS UNDER THIS PART, THE SECRETARY SHALL, WHENEVER FEASIBLE, ARRANGE TO OBTAIN THE SPECIFIC VIEWS OF PERSONS P ARTICIPATING IN AND SERVED BY PROGRAMS AND PROJECTS ASSISTED UNDER THIS PART ABOUT SUCH PROGRAMS AND PROJECTS.

"(E) THE SECRETARY SHALL PUBLISH THE RESULTS OF EVALUATIVE RESEARCH AND SUMMARIES OF EVALUATIONS OF PROGRAM AND PROJECT IMPACT AND EFFECTIVENESS NOT LATER THAN NINETY DAYS AFTER THE COMPLETION THEREOF. THE SECRETARY SHALL SUBMIT TO THE APPROPRIATE COMMITTEDS OF THE CONGRESS COPIES OF ALL SUCH RESEARCH STUDIES AND EVALUATION SUMMARIES.

"(F) THE SECRETARY SHALL TAKE THE NECESSARY ACTION TO ASSURE THAT ALL STUDIES, EVALUATIONS, PROPOSALS, AND DATA PRODUCED OR DEVELOPED WITH ASSISTANCE UNDER THIS PART SHALL BECOME THE PROPERTY OF THE UNITED STATES.

"POVERTY LINE

"SEC. 525. //42 USC 2928N.// (A) THE SECRETARY SHALL REVISE ANNUALLY (OR AT ANY SHORTER INTERVAL HE DEEMS FEASIBLE AND DESIRABLE) A POVERTY LINE WHICH, EXCEPT AS PROVIDED IN SECTION 711, //POST, P. 2316.// SHALL BE USED AS A CRITERION OF ELIGIBILITY FOR PARTICIPATION IN HEADSTART PROGRAMS.

"(B) THE REVISION REQUIRED BY SUBSECTION (A) OF THIS SECTION SHALL BE ACCOMPLISHED BY MULTIPLYING THE OFFICIAL POVERTY LINE (AS DEFINED BY THE OFFICE OF LMANAGEMENT AND BUDGET) BY THE PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX DURING THE ANNUAL OR OTHER INTERVAL IMMEDIATELY PRECEDING THE TIME AT WHICH THE REVISION IS MADE.

"(C) REVISIONS REQUIRED BY SUBSECTION (A) OF THIS SECTION SHALL BE MADE AND ISSUED NOT MORE THAN THIRTY DAYS AFTER THE DATE ON WHICH THE NECESSARY CONSUMER PRICE INDEX DATA BECOMES AVAILABLE.

"PART B--FOLLOW THROUGH PROGRAMS

"FINANCIAL ASSISTANCE FOR FOLLOW THROUGH PROGRAMS

"SEC. 551. //42 USC 2929.// (A)(1) THE SECRETARY IS AUTHORIZED TO PROVIDE FINANCIAL ASSISTANCE IN THE FORM OF GRANTS TO LOCAL EDUCATIONAL AGENCIES, COMBINATIONS OF SUCH AGENCIES, AND, AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, ANY OTHER PUBLIC OR APPROPRIATE NONPROFIT PRIVATE AGNECIES, ORGANIZATIONS, AND INSTITUTIONS FOR THE PURPOSE OF CARRYING OUT FOLLOW THROUGH PROGRAMS FOCUSED PRIMARILY ON CHILDREN FROM LOW-INCOME FAMILIES IN KINDERGARTEN AND PRIMARY GRADES, INCLUDING SUCH CHILDREN ENROLLED IN PRIVATE NONPROFIT ELEMENTARY SCHOOLS, WHO WERE PREVIOUSLY ENROLLED IN HEADSTART OR SIMILAR PROGRAMS.

"(2) WHENEVER THE SECRETARY DETERMINES (A) THAT A LOCAL EDUCATIONAL AGENCY RECEIVING ASSISTANCE UNDER PARAGRAPH (1) IS UNABLE OR UNWILLING TO INCLUDE IN A FOLLOW THROUGH PROGRAM CHILDREN ENROLLED IN NONPROFIT PRIVATE SCHOOLS WHO WOULD OTHERWISE BE ELIGIBLE TO PARTICIPATE THEREIN, OR (B) THAT IT IS OTHERWISE NECESSARY IN ORDER TO ACCOMPLISH THE PURPOSES OF THIS SECTION, HE MAY PROVIDE FINANCIAL ASSISTANCE FOR THE PURPOSE OF CARRYING OUT A FOLLOW THROUGH PROGRAM TO ANY OTHER PUVLIC OR APPROPRIATE NONPROFIT PRIVATE AGENCY, ORGANIZATION, OR INSTITUTION.

"(3) PROGRAMS TO BE ASSISTED UNDER THIS SECTION SHALL PROVIDE SUCH COMPREHENSIVE SERVICES AS THE SECRETARY DETERMINES WILL AID IN THE CONTINUED DEVOLOPMENT OF CHILDREN DESCRIBED IN PARAGRAPH (1) TO THEIR FULL POTENTIAL. SUCH PROJECTS SHALL PROVIDE FOR THE DIRECT PARTICIPATION OF THE PARENTS OF SUCH CHILDREN IN THE DEVELOPMENT, CONDUCT, AND OVERALL DIRECTION OF THE PROGRAM AT THE LOCAL LEVEL. IF THE SECRETARY DETERMINES THAT PARTICIPATION IN THE PROJECT OF CHILDREN WHO ARE NOT FROM LOW-INCOME FAMILIES WILL SERVE TO CARRY OUT THE PURPOSES OF THIS SECTION, HE MAY PROVIDE FOR THE INCLUSION OF SUCH CHILDREN FROM NON-LOW-INCOME FAMILIES, BUT ONLY TO THE EXTENT THAT THEIR PARTICIPATION WILL NOT DILUTE THE EFFECTIVENESS OF THE SERVICES DESIGNED FOR CHILDREN DESCRIBED IN PARAGRAPH (1) OF THIS SUBSECTION.

"AUTHORIZATION OF APPROPRIATIONS

"SEC. 552. //42 USC 2929A.// (A) THERE ARE AUTHORIZED TO BE APPROPRIATED FOR CARRYING OUT THE PURPOSES OF THIS PART $60,000,000 FOR THE FISCAL YEAR 1975, AND FOR EACH OF THE TWO SUCCEEDING FISCAL YEARS. FUNDS SO APPROPRIATED SHALL REMAIN AVAILABLE FOR OBLIGATION AND EXPENDITURE DURING THE FISCAL YEAR SUCCEEDING THE FISCAL YEAR FOR WHICH THEY ARE APPROPRIATED.

"(B) FINANCIAL ASSISTANCE EXTENDED UNDER THIS PART FOR A FOLLOW THROUGH PROGRAM SHALL NOT EXCEED 80 PER CENTUM OF THE APPROVED COSTS OF THE ASSISTED PROGRAM OR ACTIVITIES, EXCEPT THAT THE SECRETARY MAY APPROVE ASSISTANCE IN EXCESS OF SUCH PERCENTAGE IF HE DETERMINES, IN ACCORDANCE WITH REGULATIONS ESTABLISHING OBJECTIVE CRITERIA, THAT SUCH ACTION IS REQUIRED IN FURTHERANCE OF THE PURPOSES OF THIS PART. NON-FEDERAL CONTRIBUTIONS MAY BE IN CASH OR IN KIND, FAIRLY EVALUATED, INCLUDING BUT NOT LIMITED TO PLANT, EQUIPMENT, OR SERVICES. THE SECRETARY SHALL NOT REQUIRE NON-FEDERAL CONTRIBUTIONS IN EXCESS OF 20 PER CENTUM OF THE APPROVED COSTS OF PROGRAMS OR ACTIVITIES ASSISTED UNDER THIS PART.

"(C) NO PROJECT SHALL BE APPROVED FOR ASSISTANCE UNDER THIS PART UNLESS THE SECRETARY IS SATISFIED THAT THE SERVICES TO BE PROVIDED UNDER SUCH PROJECT WILL BE IN ADDITION TO, AND NOT IN SUBSTITUTION FOR, SERVICES IMPOSED BY THE PRECEDING SENTENCE SHALL BE SUBJECT TO SUCH REGULATIONS AS THE SECRETARY MAY ADOPT.

"RESEARCH, DEMONSTRATION, AND PILIT PROJECTS; EVALUATION; AND TECHNICAL ASSISTANCE ACTIVITIES

"SEC. 553. //42 USC 2929B.// (A) IN CONJUNCTION WITH OTHER ACTIVITIES AUTHORIZED BY THIS PART, THE SECRETARY MAY--

"(1) PROVIDE FINANCIAL ASSISTANCE, BY CONTRACT OR OTHERWISE, FOR RESEARCH, DEMONSTRATION, OR PILOT PROJECTS CONDUCTED BY PUBLIC OR PRIVATE AGENCIES WHICH ARE DESIGNED TO TEST OR ASSIST IN THE DEVELOPMENT OF NEW APPROACHES OR METHODS THAT WILL AID IN OVERCOMING SPECIAL PROBLEMS OR OTHERWISE IN FURTHERING THE PURPOSES OF THIS PART;

"(2) PROVIDE, DIRECTLY OR THROUGH GRANTS OR CONTRACTS, FOR THE CONTINUING EVALUATION OF PROJECTS ASSISTED UNDER THIS PART, INCLUDING EVALUATIONS THAT DESCRIBE AND MEASURE THE IMPACT OF SUCH PROJECTS, THEIR EFFECTIVENESS IN ACHIEVING STATED GOALS, THEIR IMPACT ON RELATED PROGRAMS, AND THEIR STRUCTURE AND MECHANISMS FOR DELIVERY OF SERVICES, INCLUDING, WHERE APPROPRIATE, COMPARISONS WITH APPROPRIATE CONTROL GROUPS COMPOSED OF PERSONS WHO HAVE NOT PARTICIPATED IN SUCH PROJECTS, WHICH EVALUATIONS SHALL BE CONDUCTED BY PERSONS NOT DIRECTLY INVOLVED IN THE ADMINISTRATION OF THE PROJECT EVALUATED; AND

"(3) PROVIDE, DIRECTLY OR THROUGH GRANTS OR OTHER APPROPRIATE ARRANGEMENTS, (A) TECHNICAL ASSISTANCE TO FOLLOW THROUGH PROGRAMS IN DEVELOPING, CONDUCTING, AND ADMININSTERING PROGRAMS UNDER THIS PART, AND (B) TRAINING FOR SPECIALIZED OR OTHER PERSONNEL WHICH IS NEEDED IN CONNECTION WITH FOLLOW THROUGH PROGRAMS.

"SPECIAL CONDITIONS

"SEC. 554. //42 USC 2929C.// (A) RECIPIENTS OF FINANCIAL ASSISTANCE UNDER THIS PART SHALL PROVIDE MAXIMUM EMPLOYMENT OPPORTUNITIES FOR RESIDENTS OF THE AREA TO BE SERVED, AND TO PARENTS OF CHILDREN WHO ARE PARTICIPATING IN PROJECTS ASSISTED UNDER THIS PART.

"(B) FINANCIAL ASSISTANCE UNDER THIS PART SHALL NOT BE SUSPENDED FOR FAILURE TO COMPLY WITH APPLICABLE TERMS AND CONDITIONS, EXCEPT IN EMERGENCY SITUATIONS, NOR SHALL AN APPLICATION FOR REFUNDING BE DENIED, UNLESS THE RECIPIENT AGENCY HAS BEEN GIVEN REASONABLE NOTICE AND OPPORTUNITY TO SHOW CAUSE WHY SUCH ACTION SHOULD NOT BE TAKEN.

"(C) FINANCIAL ASSISTANCE UNDER THIS PART SHALL NOT BE TERMINATED FOR FAILURE TO COMPLY WITH APPLICABLE TERMS AND CONDITIONS UNLESS THE RECIPIENT HAS BEEN AFFORDED REASONABLE NOTICE AND OPPORTUNITY FOR A FULL AND FAIR HEARING.

"PART C--GENERAL PROVISIONS

"DEFINITIONS

"SEC. 571. //42 USC 2930.// AS USED IN THIS TITLE, THE TERM--,

"(1) 'SECRETARY' MEANS THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE;

"(2) 'STATE' MEANS A STATE, THE COMMONWEALTH OF PUERTO RICO, THE DISTRICT OF COLUMBIA, GUAM, AMERICAN SAMOA, THE VIRGIN ISLANDS, AND THE TRUST TERRITORY OF THE PACIFIC ISLANDS: EXCEPT THAT WHEN USED IN SECTION 513(A) OF THIS TITLE, //ANTE, P. 2301.// THE TERM MEANS ONLY A STATE, PUERTO RICO, OR THE DISTRICT OF COLUMBIA; AND

"(3) 'FINANCIAL ASSISTANCE' INCLUDES ASSISTANCE PROVIDED BY GRANT, AGREEMENT, OR CONTRACT, AND PAYMENTS MAY BE MADE IN INSTALLMENTS AND IN ADVANCE OR BY WAY OF REIMBURSEMENT WITH NECESSARY ADJUSTMENTS ON ACCOUNT OF OVERPAYMENTS OR UNDERPAYMENTS.

"LABOR STANDARDS

"SEC. 572. //42 USC 2930A.// ALL LABORERS AND MECHANICS EMPLOYED BY CONTRACOTRS OR SUBCONTRACTORS IN THE CONSTRUCTION, ALTERATION, OR REPAIR, INCLUDING PAINTING AND DECORATING OF PROJECTS, BUILDINGS, AND WORKS WHICH ARE FEDERALLY ASSISTED UNDER THIS TITLE SHALL 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, AS AMENDED (40 U.S.C. 276A - 276A - 5). THE SECRETARY OF LABOR SHALL HAVE, WITH RESPECT TO SUCH LABOR STANDARDS, THE AUTHORITY AND FUNCTIONS SET FORTH IN REORGANIZATION PLAN NUMBERED 14 OF 1950 (15 F.R. 3176; 64 STAT. 1267; 5 U.S.C. 133 - 133Z - 15), AND SECTION 2 OF THE ACT OF JUNE 1, 1934, AS AMENDED (48 STAT. 948, AS AMENDED; 40 U.S.C. 276(C)).

"COMPARABILITY OF WAGES

"SEC. 573. //42 USC 2930B.// (A) THE SECRETARY SHALL TAKE SUCH ACTION AS MAY BE NECESSARY TO ASSURE THAT PERSONS EMPLOYED IN CARRYING OUT PROGRAMS FINANCED UNDER THIS TITLE SHALL NOT RECEIVE COMPENSATION AT A RATE WHICH IS (1) IN EXCESS OF THE AVERAGE RATE OF COMPENSATION PAID IN THE AREA WHERE THE PROGRAM IS CARRIED OUT TO A SUBSTANTIAL NUMBER OF THE PERSONS PROVIDING SUBSTANTIALLY COMPARABLE SERVICES, OR IN EXCESS OF THE AVERAGE RATE OF COMPENSATION PAID TO A SUBSTANTIAL NUMBER OF THE PERSONS PROVIDING SUBSTANTIALLY COMPARABLE SERVICES IN THE AREA OF THE PERSON'S IMMEDIATELY PRECEDING EMPLOYMENT, WHICHEVER IS HIGHER, OR (2) LESS THAN THE MINIMUM WAGE RATE PRESCRIBED IN SECTION 6( A)(1) OF THE FAIR LABOR STANDARDS ACT OF 1938. //29 USC 206.//

"NONDICSRIMINATION PROVISIONS

"SEC. 574. //42 USC 2930C.// (A) THE SECRETARY SHALL NOT PROVIDE FINANCIAL ASSISTANCE FOR ANY PROGRAM, PROJECT, OR ACTIVITY UNDER THIS TITLE UNLESS THE GRANT OR CONTRACT WITH RESPECT THERETO SPECIFICALLY PROVIDES THAT NO PERSON WITH RESPONSIBILITIES IN THE OPERATION THEREOF WILL DISCRIMINATE WITH RESPECT TO ANY PROGRAM, PROJECT, OR ACTIVITY BECAUSE OF RACE, CREED, COLOR, NATIONAL ORIGIN, SEX, POLITICAL AFFILIATION, OR BELIEFS.

"(B) NO PERSON IN THE UNITED STATES SHALL ON THE GROUND OF SEX BE EXCLUSED FROM PARTICIPATION IN, BE DENIED THE BENEFITS OF, BE SUBJECTED TO DISCRIMINATION UNDER, OR BE DENIED EMPLOYMENT IN CONNECTION WITH ANY PROGRAM OR ACTIVITY RECEIVING ASSISTANCE UNDER THIS TITLE. THE DIRECTOR SHALL ENFORCE THE PROVISIONS OF THE PRECEDING SENTENCE IN ACCORDANCE WITH SECTION 602 OF THE CIVIL RIGHTS ACT OF 1964. SECTION 603 OF SUCH ACT SHALL APPLY WITH RESPECT TO ANY ACTION TAKEN BY THE SECRETARY TO ENFORCE SUCH SENTENCE. THIS SECTION SHALL NOT BE CONSTRUED AS AFFECTING ANY OTHER LEGAL REMEDY THAT A PERSON MAY HAVE IF THAT PERSON IS EXCLUDED FROM PARTICIPATION IN, DENIED THE BENEFITS OF, SUBJECTED TO DISCRIMINATION INDER, OR DENIED EMPLOYMENT IN CONNECTION WITH, ANY PROGRAM, PROJECT, OR ACTIVITY RECEIVING ASSISTANCE UNDER THIS TITLE. //42 USC 2000D - 1, 42 USC 2000D - 2.//

"LIMITATION WITH RESPECT TO CERTAIN UNLAWFUL ACTICITIES

"SEC. 575. NO INDIVIDUAL EMPLOYED OR ASSIGNED BY ANY HEADSTART AGENCY OR OTHER AGENCY ASSISTED UNDER THIS TITLE SHALL, PURSUANT TO OR DURING THE PERFORMANCE OF SERVICES RENDERED IN CONNECTION WITH ANY PROGRAM OR ACTIVITY CONDUCTED OR ASSISTED UNDER THIS PART BY SUCH HEADSTART AGENCY OR SUCH OTHER AGENCY, PLAN, INITIATE, PARTICIPATE IN, OR OTHERWISE AID OR ASSIST IN THE CONDUCT OF ANY UNLAWFUL DEMONSTRATION, RIOTING, OR CIVIL DISTURBANCE. //42 USC 2930D.//

"POLITICAL ACTIVITIES

"SEC. 576. //42 USC 2930E.// (A) FOR PURPOSES OF CHAPTER 15 OF TITLE 5 OF THE UNITED STATES CODE ANY AGENCY WHICH ASSUMES RESPONSIBILITY FOR PLANNING, DEVELOPING, AND COORDINATING HEADSTART PROGRAMS AND RECEIVES ASSISTANCE UNDER THIS TITLE SHALL BE DEEMED TO BE A STATE OR LOCAL AGENCY; AND FOR PURPOSES OF CLAUSES (1) AND (2) OF SECTION 1502(A) OF SUCH TITLE ANY AGENCY RECEIVING ASSISTANCE UNDER THIS PART SHALL BE DEEMED TO BE A STATE OR LOCAL AGENCY. //5 USC 1501, 5 USC 1502.//

"(B) PROGRAMS ASSISTED UNDER THIS TITLE SHALL NOT BE CARRIED ON IN A MANNER INVOLVING THE USE OF PROGRAM FUNDS, THE PROVISION OF SERVICES, OR THE EMPLOYMENT OR ASSIGNMENT OF PERSONNEL IN A MANNER SUPPORTING OR RESULTING IN THE IDENTIFICATION OF SUCH PROGRAMS WITH (1) ANY PARTISAN OR NONPARTISAN POLITICAL ACTIVITY OR ANY OTHER POLITICAL ACTIVITY ASSOCIATED WITH A CANDIDATE, OR CONTENDING FACTION OR GROUP, IN AN ELECTION FOR PUBLIC OR PARTY OFFICE, (2) ANY ACTIVITY TO PROVIDE VOTERS OR PROSPECTIVE VOTERS WITH TRANSPORTATION TO THE POLLS OR SIMILAR ASSISTANCE IN CONNECTION WITH ANY SUCH ELECTION, OR (3) ANY VOTER REGISTRATION ACTIVITY. THE SECRETARY, AFTER CONSULTATION WITH THE CIVIL SERVICE COMMISSION, SHALL ISSUE RULES AND REGULATIONS TO PROVIDE FOR THE ENFORCEMENT OF THIS SECTION, WHICH SHALL INCLUDE PROVISIONS FOR SUMMARY SUSPENSION OF ASSISTANCE OR OTHER ACTION NECESSARY TO PERMIT ENFORCEMENT ON AN EMERGANCY BASIS.

"ADVANCE FUNDING

"SEC. 577. //42 USC 2930F.// FOR THE PURPOSE OF AFFORDING ADEQUATE NOTICE OF FUNDING AVAILABLE UNDER THIS TITLE, APPROPRIATIONS FOR CARRYING OUT THIS PART ARE AUTHORIZED TO BE INCLUDED IN AN APPROPRIATION ACT FOR THE FISCAL YEAR PRECEDING THE FISCAL YEAR FOR WHICH THEY ARE AVAILABLE FOR OBLIGATION."

(B) THE ECONOMIC OPPORTUNITY ACT OF 1964 IS FURTHER AMENDED BY STRIKING OUT "DIRECTOR" EACH PLACE IT APPEARS IN SECTIONS 522 AND 523 AND INSERTING IN LIEU THEREOF "SECRETARY", BY STRIKING OUT "AND THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE" IN SECTION 522(D), AND BY STRIKING OUT "THEIR JURISDICTIONS" IN SECTION 522(D), AND INSERTING IN LIEU THEREOF "HIS JURISDICTION".

(C) SECTIONS 521 THROUGH 523 OF THE ECONOMIC OPPORTUNITY ACT OF 1964 ARE REDESIGNATED AS SECTIONS 581 THROUGH 89583, RESPECTIVELY. //42 USC 2931 - 2933.//

(D)(1) SECTION 2 OF THE CHILD ABUSE PREVENTION AND TREATMENT ACT IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SUBSECTION:

"(C) THE SECRETARY MAY CARRY OUT HIS FUNCTIONS UNDER SUBSECTION (B) OF THIS SECTION EITHER DIRECTLY OR BY WAY OF GRANT OR CONTRACT.".

(2) SECTION 4 OF SUCH ACT IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SUBSECTION: //42 USC 5103.//

"(E) FOR THE PURPOSE OF THIS SECTION, THE TERM 'STATE' INCLUDES EACH OF THE SEVERAL STATES, THE DISTRICT OF COLUMBIA, THE COMMONWEALTH OF PUERTO RICO, AMERICAN SAMOA, THE VIRGIN ISLANDS, GUAM AND THE TRUST TERRITORIES FO THE PACIFIC.".

ADMINISTRATION

SEC. 9. (A) SECTION 601 OF THE ECONOMIC OPPORTUNITY ACT OF 1964 IS AMENDED TO READ AS FOLLOWS:

"COMMUNITY SERVICES ADMINISTRATION

"SEC. 601. //42 USC 2941.// UPON THE DATE OF ENACTMENT OF THE HEADSTART, ECONOMIC OPPORTUNITY, AND COMMUNITY PARTNERSHIP ACT OF 1974, //42 USC 2941.// THERE IS ESTABLISHED WITHIN THE EXECUTIVE BRANCH AN AGENCY KNOWN AS THE "COMMUNITY SERVICES ADMINISTRATION' WHICH SHALL BE HEADED BY A DIRECTOR AND WHICH SHALL BE, IN ALL RESPECTS AND FOR ALL PURPOSES, THE SUCCESSOR AUTHORITY TO THE OFFICE OF ECONOMIC OPPORTUNITY. THE DIRECTOR OF THE ADMINISTRATION SHALL BE APPOINTED BY THE PRESIDENT BY AND WITH THE ADVICE AND CONSENT OF HE SENATE. THE DIRECTOR SHALL BE COMPENSATED AT A RATE EQUAL TO THE RATE IN EFFECT FOR THE COMPENSATION OF THE DIRECTOR OF THE OFCFICE OF ECONOMIC OPPORTUNITY ON THE DATE OF THE ENACTMENT OF SUCH ACT.

"(B) THERE SHALL ALSO BE IN THE ADMINISTRATION ONE DEPUTY DIRECTOR AND ASSISTANT DIRECTORS WHO SHALL BE APPOINTED BY THE PRESIDENT, BY AND WITH THE ADVICE AND CONSENT OF THE SENATE. THE DEPUTY DIRECTOR AND THE ASSISTANT DIRECTORS SHALL PERFORM SUCH FUNCTIONS AS THE DIRECTOR MAY PRESCRIBE. THE DEPUTY DIRECTOR AND THE ASSISTANT DIRECTORS SHALL BE COMPENSATED AT A RATE EQUAL TO THE RATE IN EFFECT FOR THE DEPUTY DIRECTOR AND THE ASSISTANT DIRECTORS, RESPECTIVELY, OF THE OFFICE OF ECONOMIC OPPORTUNITY ON THE DATE OF ENACTMENT OF THE HEADSTART, ECONOMIC OPPORTUNITY, AND COMMUNITY PARTNERSHIP ACT OF 1974. //ANTE, P. 2291.//

"(C) SUBJECT TO THE PROVISIONS OF SUBSECTION (E) OF THIS SECTION, THE ADMINISTRATION SHALL BE AN INDEPENDENT AGENCY. THE DIRECTOR SHALL HAVE THE RESPONISBILITY FOR CARRYING OUT TITLES I, II, III -B, VI, VII, AND IX OF THIS ACT. ANTE, P. 2292.// THE FUNCTIONS OF THE DIRECTOR WITH RESPECT TO CARRYING OUT TITLES I, II (EXCEPT SECTION 232), III - B, VI, VII, AND IX OF THIS ACT //42 USC 2961, 2941.// SHALL NOT BE DELEGATED TO ANY OTHER OFFICER NOT DIRECTLY RESPONSIBLE, BOTH WITH RESPECT TO PROGRAM OPERATION AND ADMINISTRATION, TO THE DIRECTOR. BEGINNING AFTER JUNE 15, 1975, THE POLICYMAKING FUNCTIONS, INCLUDING THE FINAL APPROVAL OF GRANTS AND CONTRACTS, OF THE DIRECTOR, SHALL NOT BE DELEGATED TO ANY REGIONAL OFFICE OR OFFICIAL. //42 USC 2861, 2941.//

"(D)(1) ALL OFFICIAL ACTIONS TAKEN BY THE DIRECTOR OF THE OFFICE OF ECONOMIC OPPORTUNITY, HIS DESIGNEE, OR ANY OTHER PERSON UNDER THE AUTHORITY OF THE ECONOMIC OPPORTUNITY ACT OF 1964 WHICH ARE IN FORCE ON THE DATE OF THE ENACTMENT OF THE HEADSTART, ECONOMIC OPPORTUNITY, AND COMMUNITY PARTNERSHIP ACT OF 1974, AND FOR WHICH THERE IS CONTINUING AUTHORITY UNDER THE PROVISIONS OF THIS ACT, SHALL CONTINUE IN FULL FORCE AND EFFECT UNTIL MODIFIED, SUPERSEDED, OR REVOKED BY THE DIRECTOR. //42 USC 2701 NOTE.//

"(2) ALL REFERENCES TO THE OFFICE OF ECONOMIC OPPORTUNITY, OR TO THE DIRECTOR OF THE OFFICE OF ECONOMIC OPPORTUNITY, IN ANY STATUTE, REORGANIZATION PLAN, EXECUTIVE ORDER, REGULATION, OR OTHER OFFICIAL DOCUMENT OR PROCEEDING SHALL, ON AND AFTER SUCH DATE, BE DEEMED TO REFER TO THE ADMINISTRATION, OR TO THE DIRECTOR, AS THE CASE MAY BE.

"(3) NO SUIT, ACTION, OR OTHER PROCEEDING, AND NO CAUSE OF ACTION, BY OR AGAINST THE OFFICE OF ECONOMIC OPPORTUNITY, OR ANY ACTION BY ANY OFFICER THEREOF ACTING IN HIS OFFICIAL CAPACITY, SHALL ABATE BY REASON OF THE ENACTMENT OF THE HEADSTART, ECONOMIC OPPORTUNITY, AND COMMUNITY PARTNERSHIP ACT OF 1974.

"(4) PERSONS APPOINTED BY THE PRESIDENT, BY AND WITH THE ADVICE AND CONSENT OF THE SENATE, TO POSITIONS IN THE OFFICE OF ECONOMIC OPPORTUNITY, REQUIRING APPOINTMENT BY AND WITH SUCH ADVICEAND CONSENT, MAY, IF THE PRESIDENT SO DESIRES, CONTINUE TO SERVE IN COMPARABLE POSITIONS IN THE ADMINISTRATION; BUT THE PRESIDENT MAY SUBMIT TO THE SENATE NOMINATIONS FOR APPOINTMENT TO ANY OR ALL POSITIONS IN THE ADMINISTRATION, REQUIRING THE ADVICE AND CONSENT OF THE SENATE.

"(E)(1) AFTER MARCH 15, 1975, THE PRESIDENT MAY SUBMIT TO THE CONGRESS A REORGANIZATION PLAN WHICH, SUBJECT TO THE PROVISIONS OF PARAGRAPH (2) OF THIS SUBSECTION, SHALL TAKE EFFECT IF SUCH REORGANIZATION PLAN IS NOT DISAPPROVED BY ENACTMENT OF A JOINT RESOLUTION WHICH SHALL BE CONSIDERED IN CONGRESS IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH (3) OF THIS SUBSECTION AND THE PROCEDURES ESTABLISHED WITH RESPECT TO REORGANIZATION PLANS BY CHAPTER 9 OF TITLE 5, UNITED STATES CODE, EXCEPT TO THE EXTENT OTHERWISE PROVIDED IN THIS ACT.

"(2) A REORGANIZATION PLAN SUBMITTED IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH (1) SHALL PROVIDE-- //5 USC 901.//

"(A) FOR ESTABLISHING IN THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE A COMMUNITY SERVICES ADMINISTRATION--

"(I) WHICH SHALL BE HEADED BY A DIRECTOR,

"(II) WHICH SHALL BE THE PRINCIPAL AGENCY, AND THE DIRECTOR OF WHICH SHALL BE THE PRINCIPAL OFFICER, FOR CARRYING OUT TITLES I, II, III - B, VI, AND IX OF THIS ACT, AND WHICH, WITH RESPECT TO SUCH PROVISIONS, SHALL BE THE SUCCESSOR AUTHORITY TO THE COMMUNITY SERVICES ADMINISTRATION ESTABLISHED BY SUBSECTION (A) OF THIS SECTION, //ANTE, P. 2292, 42 USC 2861, 2941, POST, P. 2328.//

"(III) THE DIRECTOR OF WHICH SHALL BE, IN THE PERFORMANCE OF HIS FUNCTIONS, DIRECTLY RESPONSIBLE TO THE SECRETARY, AND

"(IV) IN WHICH NO POLICYMAKING FUNCTIONS, INCLUDING THE FINAL APPROVAL OF GRANTS OR CONTRACTS, OF THE DIRECTOR SHALL BE DELEGATED TO ANY REGIONAL OFFICE OR OFFICIAL.

(B) FOR EXTABLISHING IN THE DEPARTMENT OF COMMERCE A COMMUNITY ECONOMIC DEVELOPMENT ADMINISTRATION--

"(I) WHICH SHALL BE HEADED BY A DIRECTOR,

"(II) WHICH SHALL BE THE PRINCIPAL AGENCY, AND THE DIRECTOR OF WHICH SHALL BE THE PRINCIPAL OFFICER, FOR CARRYYING OUT TITLE VII OF THIS ACT, //POST, P. 2315.// AND WHICH WITH RESPECT TO SUCH PROVISIONS, SHALL BE THE SUCCESSOR AUTHORITY TO THE COMMUNITY SERVICES ADMINISTRATION ESTABLISHED BY SUBSECTION (A) OF THIS SECTION,

"(III) THE DIRECTOR OF WHICH SHALL BE, IN THE PERFORMANCE OF HIS FUNCTIONS, DIRECTLY RESPONSIBLE TO THE SECRETARY, AND

"(IV) IN WHICH NO POLICYMAKING FUNCTIONS, INCLUDING THE FINAL APPROVAL OF GRANTS OR CONTRACTS, OF THE DIRECTOR SHALL BE DELEGATED TO ANY REGIONAL OFFICE OR OFFICIAL.

"(3) FOR THE PURPOSE OF THIS SUBSECTION AND CHAPTER 9, TITLE 5, UNITED STATES CODE, TO THE EXTENT INCORPORATED BY THIS SUBSECTION, THE FOLLOWING PROVISIONS APPLY: //5 USC 901.//

"(A) THE TERM 'RESOLUTION' MEANS A JOINT RESOLUTION THE MATTER AFTER THE RESOLVING CLAUSE OF WHICH IS: 'THAT THE CONGRESS OF THE UNITED STATESDISAPPROVES THE COMMUNITY SERVICES ADMINISTRATION REORGANIZATION PLAN TRANSMITTED TO THE CONGRESS BY THE PRESIDENT ON ------, 19--,'. THE BLANK SPACES THEREIN ARE TO BE APPROPRIATELY FILLED.

"(B) IF, PRIOR TO THE PASSAGE BY ONE HOUSE OF THE JOINT RESOLUTION OF THAT HOUSE WITH RESPECT TO THE REORGANIZATION PLAN, SUCH HOUSE RECEIVES FROM THE OTHER HOUSE A JOINT RESOLUTION WITH RESPECT TO THE SAME PLAN, THEN THE FOLLOWING PROCEDURE APPLIES:

"(I) IF NO RESOLUTION OF THE FIRST HOUSE WITH RESPECT TO SUCH PLAN HAS BEEN REFERRED TO COMMITTEE, NO OTHER RESOLUTION WITH RESPECT TO THE SAME PLAN MAY BE REPORTED OR (DESPITE THE PROVISIONS OF SECTION 912(A) OF TITLE 5, UNITED STATES CODE) BE MADE THE SUBJECT OF A MOTION TO DISCHARGE.

"(II) IF A RESOLUTION OF THE FIRST HOUSE WITH RESPECT TO SUCH PLAN HAS BEEN REFERRED TO COMMITTEE--

"(I) THE PROCEDURE WITH RESPECT TO THAT OR OTHER RESOLUTIONS OF SUCH HOUSE WITH RESPECT TO SUCH PLAN WHICH HAVE BEEN REFERRED TO COMMITTEE SHALL BE THE SAME AS IF NO RESOLUTION FROM THE OTHER HOUSE WITH RESPECT TO SUCH PLAN HAD BEEN RECEIVED; BUT

"(II) ON ANY VOTE ON FINAL PASSAGE OF A RESOLUTION OF THE FIRST HOUSE WITH RESPECT TO SUCH PLAN THE RESOLUTION FROM THE OTHER HOUSE WITH RESPECT TO SUCH PLAN SHALL BE AUTOMATICALLY SUBSTITUTED FOR THE RESOLUTION OF THE FIRST HOUSE."

"(4) THE TRANSFERS AUTHORIZED UNDER SUBPARAGRAPHS (A) AND (B) OF PARAGRAPH (3) OF THIS SUBSECTION SHALL BE EFFECTIVE 30 DAYS AFTER THE LAST DATE ON WHICH SUCH REORGANIZATION PLAN COULD BE DISAPPROVED UNDER THIS SUBSECTION.

"(F) IN THE EVENT THAT THE REORGANIZATION PLAN PURSUANT TO SUBSECTION (E) TAKES EFFECT, THE DIRECTOR OF THE COMMUNITY SERVICES ADMINISTRATION AND THE DIRECTOR OF THE COMMUNITY ECONOMIC DEVELOPMENT ADMINISTRATION SHALL EACH BE APPOINTED BY THE PRESIDENT, BY AND WITH THE ADVICE AND CONSENT OF THE SENATE, EXCEPT THAT THE PERSON SERVING AS DIRECTOR OF THE INDEPENDENT COMMUNITY SERVICES ADMINISTRATION PURSUANT TO THE ADVICE AND CONSENT OF THE SENATE MAY, IF THE PRESIDENT NOTIFIES THE CONGRESS ACCORDINGLY, CONTINUE TO SERVE AS DIRECTOR OF THE COMMUNITY SERVICES ADMINISTRATION WITHIN THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE; BUT THE PRESIDENT MAY IN SUCH EVENT SUBMIT TO THE SENATE A NOMINATION FOR SUCH POSITION.

"(G) IN THE EVENT THAT THE REORGANIZATION PLAN PURSUANT TO SUBSECTION (E) OF THIS SECTION TAKES EFFECT, ON THE EFFECTIVE DATE THEREOF THE PROPERTY, RECORDS, AND UNEXPENDED BALANCES OF APPROPRIATIONS, ALLOCATIONS, AND OTHER FUNDS EMPLOYED, USED, HELD, AVAILABLE, OR TO BE MADE AVAILABLE IN CONNECTION WITH THE FUNCTIONS OF THE DIRECTOR OF THE INDEPENDENT COMMUNITY SERVICES ADMINISTRATION, ESTABLISHED BY SUBSECTION (A) OF THIS SECTION, SHALL BE TRANSFERRED TO THE DIRECTOR OF THE COMMUNITY SERVICES ADMINISTRATION, WITHIN THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE AND TO THE DIRECTOR OF THE ECONOMIC DEVELOPMENT ADMINISTRATION WITHIN THE DEPARTMENT OF COMMERCE, AS APPROPRIATE. ALL GRANTS, APPLICATIONS FOR GRANTS, CONTRACTS, AND OTHER AGREEMENTS AWARDED OR ENTERED INTO BY THE DIRECTOR OF THE INDEPENDENT COMMUNITY SERVICES ADMINISTRATION SHALL CONTINUE TO BE RECOGNIZED SO THAT THERE IS NO DISRUPTION OF ONGOING ACTIVITIES FOR WHICH THERE IS CONTINUING AUTHORITY.

"(H)(1) IN THE EVENT THAT THE REORGANIZATION PLAN PURSUANT TO SUBSECTION (E) OF THIS SECTION TAKES EFFECT, ON THE EFFECTIVE DATE THEREOF ALL FEDERAL PERSONNEL EMPLOYED BY THE INDEPENDENT COMMUNITY SERVICES ADMINISTRATION UNDER THE AUTHORIZATION AND APPROPRIATIONS FOR THE ECONOMIC OPPORTUNITY ACT OF 1964, TRANSFERRED TO THE COMMUNITY SERVICES ADMINISTRATION WITHIN THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE OR TO THE COMMUNITY ECONOMIC DEVELOPMENT ADMINISTRATION WITHIN THE DEPARTMENT OF COMMERCE SHALL, TO THE EXTENT FEASIBLE, BE ASSIGNED TO RELATED FUNCTIONS AND ORGANIZATIONAL USITS IN THE APPROPRIATE ADMINISTRATION, WITHOUT LOSS OF SALARY, RANK, OR OTHER BENEFITS, INCLUDING THE RIGHT TO REPRESENTATION AND TO THE EXISTING BASIC COLLECTIVE-BARGAINING AGREEMENT. //42 USC 2701 NOTE.//

"(2) IN THE EVENT THAT THE REORGANIZATION PLAN PPRSUANT TO SUBSECTION (E) OF THIS SECTION TAKES EFFECT, ON THE EFFECTIVE DATE THEREOF ALL OFFICIAL ACTIONS TAKEN BY THE DIRECTOR OF THE INDEPENDENT COMMUNITY SERVICES ADMINISTRATION, HIS DESIGNEE, OR ANY OTHER PERSON UNDER THE AUTHORITY OF THE ECONOMIC OPPORTUNITY ACT OF 1964 WHICH ARE IN FORCE ON SUCH DATE, AND FOR WHICH THERE IS CONTINUING AUTHORITY UNDER THE PROVISIONS OF THIS ACT, SHALL CONTINUE IN FULL FORCE AND EFFECT UNTIL MODIFIED, SUPERSEDED, OR REVOKED BY THE DIRECTOR OF THE COMMUNITY SERVICES ADMINISTRATION WITHIN THE DEPARTMENT OF HEALTH, EDUCATION AND WELFARE OR THE DIRECTOR OF THE COMMUNITY ECONOMIC DEVELOPMENT ADMINISTRATION WITHIN THE DEPARTMENT OF COMMERCE, AS APPROPRIATE.

"(3) IN THE EVENT THAT THE REORGANIZATION PLAN SUBMITTED PURSUANT TO SUBSECTION (E) OF THIS SECTION TAKES EFFECT, ON THE EFFECTIVE DATE THEREOF ALL REFERENCES TO THE INDEPENDENT COMMUNITY SERVICES ADMINISTRATION OR TO THE DIRECTOR OF THAT ADMINISTRATION IN ANY STATUTE, REORGANIZATION PLAN, EXECUTIVE ORDER, REGULATION, OR OTHER OFFICIAL DOCUMENT OR PROCEEDING SHALL, ON AND AFTER SUCH DATE, BE DEEMED TO REFER TO THE COMMUNITY SERVICES ADMINISTRATION WITHIN THE DEPARTMENT OF HEALTH, EDUCATION AND WELFARE, OR THE DIRECTOR OF THE COMMUNITY ECONOMIC DEVELOPMENT ADMINISTRATION, IN THE DEPARTMENT OF COMMERCE AS APPROPRIATE, OR TO THE DIRECTOR OF EITHER SUCH ADMINISTRATION, AS THE CASE MAY BE.

"(4) IN THE EVENT THAT THE REORGANIZATION PLAN SUBMITTED PURSUANT TO SUBSECTION (E) OF THIS SECTION TAKES EFFECT, ON THE EFFECTIVE DATE THEREOF NO SUIT, ACTION, OR OTHER PROCEEDING, AND NO CAUSE OF ACTION, BY OR AGAINST THE INDEPENDENT COMMUNITY SERVICES ADMINISTRATION, OR ANY ACTION BY ANY OFFICE THEREOF ACTING IN HIS OFFICIAL CAPACITY, SHALL ABATE BY REASON OF THE TAKING EFFECT OF SUCH PLAN."

(B) SECTION 28 OF THE ECONOMIC OPPORTUNITY AMENDMENTS OF 1972 (86 STAT. 705, SEPTEMBER 19, 1972) IS REPEALED EFFECTIVE ON THE DATE ON WHICH A REORGANIZATION PLAN IS EFFECTIVE UNDER SUBSECTION (C) OF THIS SECTION. //42 USC 2942 NOTE.//

(C) THE ECONOMIC OPPORTUNITY ACT OF 1964 IS FURTHER AMENDED BY--,

(1) STRIKING OUT "OFFICE OF ECONOMIC OPPORTUNITY" AND "OFFICE" EACH TIME THAT THEY APPEAR IN SECTION 602(D) AND INSERTING IN LIEU THEREOF "COMMUNITY SERVICES ADMINISTRATION"; //42 USC 2942.//

(2) STRIKING OUT "OFFICE OF ECONOMIC OPPORTUNITY" IN SECTION 603(C) AND INSERTING IN LIEU THEREOF "COMMUNITY SERVICES ADMINISTRATION";

(3) STRIKING OUT "IN THE OFFICE" IN SECTION 605(A) AND INSERTING IN LIEU THEREOF "IN THE COMMUNITY SERVICES ADMINISTRATION";

(4) STRIKING OUT "OFFICE OF ECONOMIC OPPORTUNITY" IN SECTION 632(2) AND INSERTING IN LIEU THEREOF "COMMUNITY SERVICES ADMINISTRATION"; //42 USC 2974.//

(5) STRIKING OUT "OF THE OFFICE OF ECONOMIC OPPORTUNITY" IN SECTION 637(B)(2), AND INSERTING IN LIEU THEREOF "OF THE COMMUNITY SERVICES ADMINISTRATION", AND //42 USC 2979.//

(6) REPEALING SECTION 609 OF SUCH ACT.

(D) SECTION 625 OF THE ECONOMIC OPPORTUNITY ACT OF 1964 IS AMENDED TO READ AS FOLLOWS: //42 USC 2949.//

"CRITERIA FOR DETERMINING ELIGIBILITY

"SEC. 625. //42 USC 2971D.// (A) EVERY AGENCY ADMINISTERING PROGRAMS AUTHORIZED BY THIS ACT IN WHICH THE POVERTY LINE IS A CRITERION OF ELIGIBILITY SHALL REVISE THE POVERTY LINE AT ANNUAL INTERVALS, OR AT ANY SHORTER INTERVAL IT DEEMS FEASIBLE AND DESIRABLE.

"(B) THE REVISION REQUIRED BY SUBSECTION (A) OF THIS SECTION SHALL BE ACCOMPLISHED BY MULTIPLYING THE OFFICIAL POVERTY LINE (AS DEFINED BY THE OFFICE OF MANAGEMENT AND BUDGET) BY THE PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX DURING THE ANNUAL OR OTHER INTERVAL IMMEDIATELY PRECEDING THE TIME AT WHICH THE REVISION IS MADE.

"(C) REVISIONS REQUIRED BY SUBSECTION (A) OF THIS SECTION SHALL BE MADE AND ISSUED NOT MORE THAN THIRTY DAYS AFTER THE DATE ON WHICH THE NECESSARY CONSUMER PRICE INDEX DATA BECOMES AVAILABLE."

"(E) THE ECONOMIC OPPORTUNITY ACT OF 1964 IS FURTHER AMENDED BY INSERTING AFTER SECTION 625 THE FOLLOWING NEW SECTIONS:

"CRIMINAL PROVISIONS

"SEC. 626. //42 USC 2972F.// (A) WHOEVER, BEING AN OFFICER, DIRECTOR, AGENT, OR EMPLOYEE OF, OR CONNECTED IN ANY CAPACITY WITH, ANY AGENCY RECEIVING FINANCIAL ASSISTANCE UNDER THIS ACT EMBEZZLES, WILLFULLY MISAPPLIES, STEALS, OR OBTAINS BY FRAUD ANY OF THE MONEYS, FUNDS, ASSETS, OR PROPERTY WHICH ARE THE SUBJECT OF A GRANT OR CONTRACT OF ASSISTANCE PURSUANT TO THIS ACT, SHALL BE FINED NOT MORE THAN $10,000 OR IMPRISONED FOR NOT MORE THAN TWO YEARS, OR BOTH; BUT IF THE AMOUNT SO EMBEZZLED, MISAPPLIED, STOLEN, OR OBTAINED BY FRAUD DOES NOT EXCEED $100, HE SHALL BE FINED NOT MORE THAN $1,000 OR IMPRISONED NOT MORE THAN ONE YEAR, OR BOTH.

"(B) WHOEVER, BY THREAT OF PROCURING DISMISSAL OF ANY PERSON FROM EMPLOYMENT OR OF REFUSAL TO EMPLOY OR REFUSAL TO RENEW A CONTRACT OF EMPLOYMENT IN CONNECTION WITH A GRANT OR CONTRACT OF ASSISTANCE UNDER THIS ACT INDUCES ANY PERSON TO GIVE UP ANY MONEY OR THING OF ANY VALUE TO ANY PERSON (INCLUDING SUCH GRANTEE AGENCY), SHALL BE FINED NOT MORE THAN $1,000 OR IMPRISONED NOT MORE THAN ONE YEAR, OR BOTH.

"WITHHOLDING CERTAIN FEDERAL TAXES BY ANTIPOVERTY AGENCIES

"SEC. 627. //42 USC 2971G.// UPON NOTICE FROM THE SECRETARY OF THE TREASURY OR HIS DELEGATE THAT ANY PERSON OTHERWISE ENTITLED TO RECEIVE A PAYMENT MADE PURSUANT TO A GRANT, CONTRACT, AGREEMENT, LOAN OR OTHER ASSISTANCE MADE OR ENTERED INTO UNDER THIS ACT IS DELINQUENT IN PAYING OR DEPOSITING (1) THE TAXES IMPOSED ON SUCH PERSON UNDER CHAPTERS 21 AND 23 OF THE INTERNAL REVENUE CODE OF 1954, OR (2) THE TAXES DEDUCTED AND WITHHELD BY SUCH PERSON UNDER CHAPTERS 21 AND 24 OF SUCH CODE, THE DIRECTOR SHALL SUSPEND SUCH PORTION OF SUCH PAYMENT DUE TO SUCH PERSON, WHICH, IF POSSIBLE IS SUFFICIENT TO SATISFY SUCH DELINQUENCY, AND SHALL NOT MAKE OR ENTER INTO ANY NEW GRANT, CONTRACT, AGREEMENT, LOAN OR OTHER ASSISTANCE UNDER THIS ACT WITH SUCH PERSON UNTIL THE SECRETARY OF THE TREASURY OR HIS DELEGATE HAS NOTIFIED HIM THAT SUCH PERSON IS NO LONGER DELINQUENT IN PAYING OR DEPOSITING SUCH TAX OR THE DIRECTOR DETERMINES THAT ADEQUATE PROVISION HAS BEEN MADE FOR SUCH PAYMENT. //26 USC 3101, 3301, 26 USC 3401.// IN ORDER TO EFFECTUATE THE PURPOSE OF THIS SECTION ON A REASONABLE BASIS THE SECRETARY OF THE TREASURY AND THE DIRECTOR SHALL CONSULT ON A QUARTERLY BASIS."

COMMUNITY ECONOMIC DEVELOPMENT

SEC. 10. (A) TITLE VII OF THE ECONOMIC OPPORTUNITY ACT OF 1964 IS AMENDED TO READ AS FOLLOWS:

"TITLE VII--COMMUNITY ECONOMIC DEVELOPMENT

"STATEMENT OF PURPOSE

"SEC. 701. //42 USC 2981.// THE PURPOSE OF THIS TITLE IS TO ENCOURAGE THE DEVELOPMENT OF SPECIAL PROGRAMS BY WHICH THE RESIDENTS OF URBAN AND RURAL LOW-INCOME AREAS MAY, THROUGH SELF-HELP AND MOBILIZATION OF THE COMMUNITY AT LARGE, WITH APPROPRIATE FEDERAL ASSISTANCE, IMPROVE THE QUALITY OF THEIR ECONOMIC AND SOCIAL PARTICIPATION IN COMMUNITY LIFE IN SUCH A WAY AS TO CONTRIBUTE TO THE ELIMINATION OF POVERTY AND THE ESTABLISHMENT OF PERMANENT ECONOMIC AND SOCIAL BENEFITS.

"DEFINITION

"SEC. 702. //42 USC 2981A.// AS USED IN THIS TITLE THE TERM 'COMMUNITY DEVELOPMENT CORPORATION' MEANS A NONPROFIT ORGANIZATION RESPONSIBLE TO RESIDENTS OF THE AREA IT SERVES WHICH IS RECEIVING FINANCIAL ASSISTANCE UNDER PART A OF THIS TITLE AND ANY ORGANIZATION MORE THAN 50 PER CENTUM OF WHICH IS OWNED BY SUCH AN ORGANIZATION, OR OTHERWISE CONTROLLED BY SUCH AN ORGANIZATION, OR DESIGNATED BY SUCH AN ORGANIZATION FOR THE PURPOSE OF THIS TITLE.

"AUTHORIZATION OF APPROPRIATIONS

"SEC. 703. //42 USC 2981B.// FOR THE PURPOSE OF CARRYING OUT THIS TITLE, THERE ARE AUTHORIZED TO BE APPROPRIATED $39,000,000 AND SUCH ADDITIONAL SUMS AS MAY BE NECESSARY FOR FISCAL YEAR 1975 AND SUCH SUMS AS MAY BE NECESSARY FOR EACH OF THE TWO SUCCEEDING FISCAL YEARS.

"PART A--URBAN AND RURAL SPECIAL IMPACT PROGRAMS

"STATEMENT OF PURPOSE

"SEC. 711. //42 USC 2982.// THE PURPOSE OF THIS PART IS TO ESTABLISH SPECIAL PROGRAMS OF ASSISTANCE TO NONPROFIT PRIVATE LOCALLY INITIATED COMMUNITY DEVELOPMENT CORPORATIONS WHICH (1) ARE DIRECTED TO THE SOLUTION OF THE CRITICAL PROBLEMS EXISTING IN PARTICULAR COMMUNITIES OR NEIGHBORHOODS (DEFINED WITHOUT REGARD TO POLITICAL OR OTHER SUBDIVISIONS OR BOUNDERIES) WITHIN THOSE URBAN AND RURAL AREAS HAVING CONCENTRATIONS OR SUBSTANTIAL NUMBERS OF LOW-INCOME PERSONS; (2) ARE OF SUFFICIENT SIZE, SCOPE, AND DURATION TO HAVE AN APPRECIABLE IMPACT IN SUCH COMMUNITIES, NEIGHBOTHOODS, AND RURAL AREAS IN ARRESTING TENDENCIES TOWARD DEPENDENCY, CHRONIC UNEMPLOYMENT, AND COMMUNITY DETERIORATION; (3) HOLD FORTH THE PROSPECT OF CONTINUING TO HAVE SUCH IMPACT AFTER THE TERMINATION OF FINANCIAL ASSISTANCE TO START, EXPAND, OR LOCATE ENTERPRISES IN OR NEAR THE AREA TO BE SERVED SO AS TO PROVIDE EMPLOYMENT AND OWNERSHIP OPPORTUNITIES FOR RESIDENTS OF SUCH AREAS, INCLUDING THOSE WHO ARE DISADVANTAGED IN THE LABOR MARKET BECAUSE OF THEIR LIMITED SPEAKING, READING, AND WRITING ABILITIES IN THE ENGLISH LANGUAGE.

"ESTABLISHMENT AND SCOPE OF PROGRAMS

"SEC. 712. //42 USC 2982A.// (A) THE DIRECTOR IS AUTHORIZED TO PROVIDE FINANCIAL ASSISTANCE IN THE FORM OF GRANTS TO NONPROFIT AND FOR PROFIT COMMUNITY DEVELOPMENT CORPORATIONS AND OTHER AFFILIATED AND SUPPORTIVE AGENCIES AND ORGANIZATIONS ASSOCIATED WITH QUALIFYING COMMUNITY DEVELOPMENT CORPORATIONS FOR THE PAYMENT OF ALL OR PART OF THE COST OF PROGRAMS WHICH ARE DESIGNED TO CARRY OUT THE PURPOSES OF THIS PART. FINANCIAL ASSISTANCE SHALL BE PROVIDED SO THAT EACH COMMUNITY ECONOMIC DEVELOPMENT PROGRAM IS OF SUFFICIENT SIZE, SCOPE, AND DURATION TO HAVE AN APPRECIABLE IMPACT ON THE AREA SERVED. SUCH PROGRAMS MAY INCLUDE--

"(1) COMMUNITY ECONOMIC AND BUSINESS DEVELOPMENT PROGRAMS, INCLUDING BUT NOT LIMITED TO: (A) PROGRAMS WHICH PROVIDE FINANCIAL AND OTHER ASSISTANCE (INCLUDING EQUITY CAPITAL) TO START, EXPAND, OR LOCATE BUSINESSES IN OR NEAR THE AREA SERVED SO AS TO PROVIDE EMPLOYMENT AND OWNERSHIP OPPORTUNITIES FOR RESIDENTS OF SUCH AREAS, AND (B) PROGRAMS FOR SMALL BUSINESSES LOCATED IN OR OWNED BY RESIDENTS OF SUCH AREAS;

"(2) COMMUNITY DEVELOPMENT INCLUDING INDUSTRIAL PARKS AND HOUSING ACTIVITIES WHICH CONTRIBUTE TO AN IMPROVED ENVIRONMENT AND WHICH CREATE NEW TRAINING, EMPLOYMENT, AND OWNERSHIP OPPORTUNITIES FOR RESIDENTS OF SUCH AREA;

"(3) TRAINING AND PUBLIC SERVICE EMPLOYMENT PROGRAMS AND RELATED SERVICES FOR UNEMPLOYED OR LOW-INCOME PERSONS WHICH SUPPORT AND COMPLEMENT COMMUNITY DEVELOPMENT PROGRAMS FINANCED UNDER THIS PART, INCLUDING, WITHOUT LIMITATION, ACTIVITIES SUCH AS THOSE DSCRIBED IN THE COMPREHENSIVE EMPLOYMENT AND TRAINING ACT OF 1973; AND //29 USC 801 NOTE.//

"(4) SOCIAL SERVICE PROGRAMS WHICH SUPPORT AND COMPLEMTENT COMMUNITY ECONOMIC DEVELOPMENBT PROGRAMS FINANCED UNDER THIS PART, INCLUDING BUT NOT LIMITED TO CHILD CARE, EDUCATIONAL SERVICES, HEALTH SERVICES, CREDIT COUNSELING, ENERGY CONSERVATION, AND PROGRAMS FOR THE MAINTENANCE OF HOUSING FACILITIES.

"(B) THE DIRECTOR SHALL CONDUCT PROGRAMS ASSISTED UNDER THIS PART SO AS TO CONTRIBUTE, ON AN EQUITABLE BASIS BETWEEN URBAN AND RURAL AREAS, TO THE ELIMINATION OF POVERTY AND THE ESTABLISHMENT OF PERMANENT ECONOMIC AND SOCIAL BENEFITS IN SUCH AREAS.

"FINANCIAL ASSISTANCE REQUIREMENTS

"SEC. 713. //42 USC 2982B.// (A) THE DIRECTOR, UNDER SUCH REGULATIONS AS HE MAY ESTABLISH, SHALL NOT PROVIDE FINANCIAL ASSISTANCE FOR ANY COMMUNITY ECONOMIC DEVELOPMENT PROGRAM UNDER THIS PART UNLESS HE DETERMINES THAT--,

"(1) SUCH COMMUNITY DEVELOPMENT CORPORATION IS RESPONSIBLE TO RESIDENTS OF THE AREA SERVED (I) THROUGH A GOVERNING BODY NOT LESS THAN 50 PER CENTUM OF THE MEMBERS OF WHICH ARE AREA RESIDENTS AND (II) IN ACCORDANCE WITH SUCH OTHER GUIDELINES AS MAY BE ESTABLISHED BY THE DIRECTOR, EXCEPT THAT THE COMPOSITION OF THE GOVERNING BODIES OF ORGANIZATIONS OWNED OR CONTROLLED BY THE COMMUNITY DEVELOPMENT CORPORATION NEED NOT BE SUBJECT TO SUCH RESIDENCY REQUIREMENT;

"(2) THE PROGRAM WILL BE APPROPRIATELY COORDINATED WITH LOCAL PLANNING UNDER THIS TITLE, WITH HOUSING AND COMMUNITY DEVELOPMENT PROGRAMS, WITH EMPLOYMENT AND TRAINING PROGRAMS, AND WITH OTHER RELEVANT PLANNING FOR PHYSICAL AND HUMAN RESOURCES IN THE AREAS SERVED;

"(3) ADEQUATE TECHNICAL ASSISTANCE IS MADE AVAILABLE AND COMMITTED TO THE PROGRAMS BEING SUPPORTED;

"(4) SUCH FINANCIAL ASSISTANCE WILL METERIALLY FURTHER THE PURPOSES OF THIS PART;

"(5) THE APPLICANT IS FULFILLING OR WILL FULFILL A NEED FOR SERVICES, SUPPLIES, OR FACILITIES WHICH IS OTHERWISE NOT BEING MET;

"(6) ALL PROJECTS AND RELATED FACILITIES WILL, TO THE MAXIMUM FEASIBLE EXTENT, BE LOCATED IN THE AREAS SERVED;

"(7) PROJECTS WILL, WHERE FEASIBLE, PROMOTE THE DEVELOPMENT OF ENTREPRENEURIAL AND MANAGEMENT SKILLS AND THE OWNERSHIP OR PARTICIPATION IN OWNERSHIP OF ASSISTED BUSINESSES AND HOUSING, COOPERATIVELY OR OTHERWISE, BY RESIDENTS OF THE AREA SERVED;

"(8) PROJECTS WILL BE PLANNED AND CARRIED OUT WITH THE FULLEST POSSIBLE PARTICIPATION OF RESIDENT OR LOCAL BUSINESSMEN AND REPRESENTATIVES OF FINANCIAL INSTITUTIONS, INCLUDING PARTICIPATION THROUGH CONTRACT, JOINT VENTURE, PARTNERSHIP, STOCK OWNERSHIP OR MEMBERSHIP ON THE GOVERNING BOARDS OR ADVISORY COUNCILS OF SUCH PROJECTS CONSISTENT WITH THE SELF-HELP PURPOSES OF THIS TITLE;

"(9) NO PARTICIPANT WILL BE EMPLOYED ON PROJECTS INVOLVING POLITICAL PARTIES, OR THE CONSTRUCTION, OPERATION, OR MAINTENANCE OF SO MUCH OF ANY FACILITY AS IS USED OR TO BE USED FOR SECTARIAN INSTRUCTION OR AS A PLACE FOR RELIGIOUS WORSHIP;

"(10) THE PROGRAM WILL NOT RESULT IN THE DISPLACEMENT OF EMPLOYED WORKERS OR IMPAIR EXISTING CONTRACTS FOR SERVICES, OR RESULT IN THE SUBSTITUTION OF FEDERAL OR OTHER FUNDS IN CONNECTION WITH WORK THAT WOULD OTHERWISE BE PERFORMED;

"(11) THE RATES OF PAY FOR TIME SPENT IN WORK-TRAINING AND EDUCATION, AND OTHER CONDITIONS OF EMPLOYMENT, WILL BE APPROPRIATE AND REASONABLE IN THE LIGHT OF SUCH FACTORS AS THE TYPE OF WORK, GEOGRAPHICAL REGION, AND PROFICIENCY OF THE PARTICIPANT;

"(12) THE PROGRAM WILL, TO THE MAXIMUM EXTENT FEASIBLE, CONTRIBUTE TO THE OCCUPATIONAL DEVELOPMENT OR UPWARD MOBILITY OF INDIVIDUAL PARTICIPANTS;

"(13) PREFERENCE WILL BE GIVEN TO LOW-INCOME OR ECONOMICALLY DISADVANTAGED RESIDENTS OF THE AREAS SERVED IN FILLING JOBS AND TRAINING OPPORTUNITIES; AND

"(14) TRAINING PROGRAMS CARRIED OUT IN CONNECTION WITH PROJECTS FINANCED UNDER THIS PART SHALL BE DESIGNED WHEREVER FEASIBLE TO PROVIDE THOSE PERSONS WHO SUCCESSFULLY COMPLETE SUCH TRAINING WITH SKILLS WHICH ARE ALSO IN DEMAND IN COMMUNITIES, NEIGHBORHOODS OR RURAL AREAS OTHER THAN THOSE FOR WHICH PROGRAMS ARE ESTABLISHED UNDER THIS PART.

"(B) FINANCIAL ASSISTANCE UNDER THIS SECTION SHALL NOT BE EXTENDED TO ASSIST IN THE RELOCATION OF ESTABLISHNMENTS FROM ONE LOCATION TO ANOTHER IF SUCH RELOCATION WOULD RESULT IN AN INCREASE IN UNEMPLOYMENT IN THE AREA OF ORIGINAL LOCATION.

"(C) THE LEVEL OF FINANCIAL ASSISTANCE FOR RELATED PURPOSES UNDER THIS ACT, OR ANY OTHER PROGRAM FOR FEDERAL FINANCIAL ASSISTANCE, TO THE AREA SERVED BY A SPECIAL IMPACT PROGRAM SHALL NOT BE DIMINISHED IN ORDER TO SUBSTITUTE FUNDS AUTHORIZED BY THIS PART.

"FEDERAL SHARE OF PROGRAM COSTS

"SEC. 714. //42 USC 2982C.// FEDERAL ASSISTANCE TO ANY PROGRAM CARRIED OUT PURSUANT TO THIS PART, INCLUDING GRANTS USED BY COMMUNITY DEVELOPMENT CORPORATIONS FOR CAPITAL IMPROVEMENTS, SHALL (1) NOT EXCEED 90 PER CENTUM OF THE COST OF SUCH PROGRAM INCLUDING COSTS OF ADMINISTRATION UNLESS THE DIRECTOR DETERMINES THAT THE ASSISTANCE IN EXCESS OF SUCH PERCENTAGE IS REQUIRED IN FURTHERANCE OF THE PURPOSES OF THIS PART, AND (2) BE MADE AVAILABLE FOR DEPOSIT TO THE ORDER OF THE GRANTEE, UNDER CONDITIONS WHICH THE DIRECTOR DEEMS APPROPRIATE, WITHIN THIRTY DAYS FOLLOWING APPROVAL OF THE GRANT AGREEMENT BY THE DIRECTOR AND SUCH GRANTEE OF THE GRANT AGREEMENT. NON-FEDERAL CONTRIBUTIONS MAY BE IN CASH OR IN KIND, FAIRLY EVALUATED, INCLUDING BUT NOT LIMITED TO PLANT, EQUIPMENT, AND SERVICES. CAPITAL INVESTMENTS MADE WITH FUNDS GRANTED AS A RESULT OF THE FEDERAL SHARE OF THE COSTS OF PROGAMS CARRIED OUT UNDER THIS TITLE, AND THE PROCEEDS FROM SUCH CAPITAL INVESTMENTS, SHALL NOT BE CONSIDERED FEDERAL PROPERTY. UPON INVESTMENT, TITLE RIGHTS VEST IN THE COMMUNITY DEVELOPMENT CORPORATION. THE FEDERAL GOBERNMENT RETAINS THE RIGHT TO DIRECT THAT ON SEVERANCE OF THE GRANT RELATIONSHIP THE ASSETS PURCHASED CONTINUE TO BE USED FOR THE ORIGINAL PURPOSE FOR WHICH THEY WERE GRANTED.

"PART B--SPECIAL RURAL PROGRAMS

"STATEMENT OF PURPOSE

"SEC. 721. //42 USC 2983.// IT IS THE PURPOSE OF THIS PART TO MEET THE SPECIAL ECONOMIC NEEDS OF LRURAL COMMUNITIES OR AREAS WITH CONCENTRATIONS OR SUBSTANTIAL NUMBERS OF LOW-INCOME PERSONS BY PROVIDING SUPPORT TO SELF-HELP PROGRAMS WHICH PROMOTE ECONOMIC DEVELOPMENT AND INDEPENDENCE, AS A SUPPLEMENT TO EXISTING SIMILAR PROGRAMS CONDUCTED BY OTHER DEPARTMENTS AND AGENCIES OF THE FEDERAL GOVERNMENT. SUCH PROGRAMS SHOULD ENCOURAGE LOW-INCOME FAMILIES TO POOL THEIR TALENTS AND RESOURCES SO AS TO CREATE AND EXPAND RURAL ECONOMIC ENTERPRISE.

"FINANCIAL ASSISTANCE

"SEC. 722. //42 USC 2983A.// (A) THE DIRECTOR IS AUTHORIZED TO PROVIDE FINANCIAL ASSISTANCE INCLUDING LOANS HAVING A MAXIMUM MATURITY OF 15 YEARS AND IN AMOUNTS NOT RESULTING IN AN AGGREGATE PRINCIPAL INDEBTEDNESS OF MORE THAN $3,500 AT ANY ONE TIME, TO ANY LOW-INCOME RURAL FAMILY WHERE, IN THE JUDGMENT OF THE DIRECTOR, SUCH FINANCIAL ASSISTANCE HAS A REASONABLE POSSIBILITY OF EFFECTING A PERMANENT INCREASE IN THE INCOME OF SUCH FAMILIES. OR WILL CONTRIBUTE TO THE IMPROVEMENT OF THEIR LIVING OR HOUSING CONDITIONS, BY ASSISTING OR PERMITTING THEM TO--

"(1) ACQUIRE OR IMPROVE REAL ESTATE OR REDUCE ENCUMBRANCES OR ERECT IMPROVEMENTS THEREON;

"(2) OPERATE OR IMPROVE THE OPERATION OF FARMS NOT LARGER THAN FAMILY SIZED, INCLUDING BUT NOT LIMITED TO THE PURCHASE OF FEED, SEED, FERTILIZER, LIVESTOCK, POULTRY, AND EQUIPMENT; OR

"(3) PARTICIPATE IN COOPERATIVE ASSOCIATIONS, OR TO FINANCE NON-AGRICULTURAL ENTERPRISES WHICH WILL ENABLE SUCH FAMILIES TO SUPPLEMENT THEIR INCOME.

"(B) THE DIRECTOR IS AUTHORIZED TO PROVIDE FINANCIAL ASSISTANCE TO LOCAL COOPERATIVE ASSOCIATIONS IN RURAL AREAS CONTAINING CONCENTRATIONS OR SUBSTANTIAL NUMBERS OF LOW-INCOME PERSONS FOR THE PURPOSE OF DEFRAYING ALL OR PART OF THE COSTS OF ESTABLISHING AND OPERATING COOPERATIVE PROGRAMS FOR FARMING, PURCHASING, MARKETING, PROCESSING, AND TO IMPROVE THEIR INCOME AS PRODUCERS AND THEIR PURCHASING POWER AS CONSUMERS, AND TO PROVIDE SUCH ESSENTIALS AS CREDIT AND HEALTH SERVICES. COSTS WHICH MAY BE DEFRAYED SHALL INCLUDE BUT NOT BE LIMITED TO--,

"(1) ADMINISTRATIVE COSTS OF STAFF AND OVERHEAD;

"(2) COSTS OF PLANNING AND DEVELOPING NEW ENTERPRISES;

"(3) COSTS OF ACQUIRING TECHNICAL ASSISTANCE; AND

"(4) INITIAL CAPITAL WHERE IT IS DETERMINED BY THE DIRECTOR THAT THE POVERTY OF THE FAMILIES PARTICIPATING IN THE PROGRAM AND THE SOCIAL CONDITIONS OF THE RURAL AREA REQUIRE SUCH ASSISTANCE.

"LIMITATION ON ASSISTANCE

"SEC. 723. //42 USC 2983B.// (A) NO FINANCIAL ASSISTANCE SHALL BE PROVIDED UNDER THIS PART UNLESS THE DIRECTOR DETERMINES THAT--

"(1) ANY COOPERATIVE ASSOCIATION RECEIVING ASSISTANCE HAS A MINIMUM OF FITEEN ACTIVE MEMBERS, A MAJORITY OF WHICH ARE LOW-INCOME RURAL PERSONS;

"(2) ADEQUATE TECHNICAL ASSISTANCE IS MADE AVAILABLE AND COMMITTED TO THE PROGRAMS BEING SUPPORTED;

"(3) SUCH FINANCIAL ASSISTANCE WILL MATERIALLY FURTHER THE PURPOSES OF THIS PART; AND

"(4) THE APPLICANT IS FULFILLING OR WILL FULFILL A NEED FOR SERVICES, SUPPLIES, OR FACILITIES WHICH IS OTHERWISE NOT BEING MET.

"(B) THE LEVEL OF FINANCIAL ASSISTANCE FOR RELATED PURPOSES UNDER THIS ACT TO THE AREA SERVED BY A PROGRAM UNDER THIS PART SHALL NOT BE DIMINISHED IN ORDER TO SUBSTITUTE FUNDS AUTHORIZED BY THIS PART.

"PART C--DEVELOPMENT LOANS TO COMMUNITY ECONOMIC DEVELOPMENT PROGRAMS

"DEVELOPMENT LOAN FUND

"SEC. 731. //42 USC 2984.// (A) THE DIRECTOR IS AUTHORIZED TO MADE OR GUARANTEE LOANS (EITHER DIRECTLY OR IN COOPERATION WITH BANKS OR OTHER ORGANIZATIONS THROUGH AGREEMENTS TO PARTICIPATE ON AN IMMEDIATE OR DEFERRED BASIS) TO COMMUNITY DEVELOPMENT CORPORATIONS, AND FAMILIES AND LOCAL COOPERATIVES ELIGIBLE FOR FINANCIAL ASSISTANCE UNDER THIS TITLE, FOR BUSINESS, HOUSING, AND COMMUNITY DEVELOPMENT PROJECTS WHICH THE DIRECTOR DETERMINES WILL CARRY OUT THE PURPOSES OF THIS PART. NO LOANS, GUARANTEES, OR OTHER FINANCIAL ASSISTANCE WHSLL BE PROVIDED UNDER THIS SECTION UNLESS THE DIRECTOR DETERMINES THAT--

"(1) THERE IS REASONABLE ASSURANCE OF REPAYMENT OF THE LOAN;

"(2) THE LOAN IS NOT OTHERWISE AVAILABLE ON REASONABLE TERMS FROM PRIVATE SOURCES OR OTHER FEDERAL, STATE, OR LOCAL PROGRAMS; AND

"(3) THE AMOUNT OF THE LOAN, TOGETHER WITH OTHER FUNDS AVAILABLE, IS ADEQUATE TO ASSURE COMPLETION OF THE PROJECT OR ACHIEVEMENT OF THE PUSPOSES FOR WHICH THE LOAN IS MADE.

LOANS MADE BY THE DIRECTOR PURSUANT TO THIS SECTION SHALL BEAR THE INTEREST AT A RATE NOT LESS THAN A RATE DETERMINED BY THE SECRETARY OF THE TREASURY TAKING INTO CONSIDERATION THE AVERAGE MARKET YIELD ON OUTSTANDING TREASURY OBLIGATIONS OF COMPARABLE MATURITY, PLUS SUCH ADDITIONAL CHARGE IF ANY, TOWARD COVERING OTHER COSTS OF THE PROGRAM AS THE DIRECTOR MAY DETERMINE TO BE CONSISTENT WITH ITS PURPOSES, EXCEPT THAT, FOR THE FIVE YEARS FOLLOWING THE DATE IN WHICH FUNDS ARE INITIALLY AVAILABLE TO THE BORROWER, THE RATE OF INTEREST SHALL BE SET AT A RATE CONSIDERED APPROPRIATE BY THE DIRECTOR IN LIGHT OF THE PARTICULAR NEEDS OF THE BORROWER WHICH RATE SHALL NOT BE LOWER THAN 1 PER CENTUM. ALL SUCH LOANS SHALL BE REPAYABLE WITHIN A PERIOD OF NOT MORE THAN THIRTY YEARS.

"(B) THE DIRECTOR IS AUTHORIZED TO ADJUST INTEREST RATES, GRANT MORATORIUMS ON REPAYMENT OF PRINCIPAL AND INTEREST, COLLECT OR COMPROMISE ANY OBLIGATIONS HELD BY HIM, AND TO TAKE SUCH OTHER ACTIONS IN RESPECT TO SUCH LOANS AS HE SHALL DETERMINE TO BE NECESSARY OR APPROPRIATE, CONSISTENT WITH THE PURPOSES OF THIS SECTION.

"(C)(1) TO CARRY OUT THE LENDING AND GUARANTY FUNCTIONS AUTHORIZED UNDER THIS PART, THERE SHALL BE ESTABLISHED A DEVELOPMENT LOAN FUND CONSISTING OF TWO SEPARATE ACCOUNTS, ONE OF WHICH SHALL BE A REVOLVING FUND CALLED THE RURAL DEVELOPMENT LOAN FUND AND THE OTHER OF WHICH SHALL BE A REVOLVING FUND CALLED THE COMMUNITY DEVILOPMENT LOAN FUND. THE CAPITAL OF EACH SUCH REVOLVING FUND SHALL REMAIN AVAILABLE UNTIL EXPENDED.

"(2) THE RURAL DEVELOPMENT LOAN FUND SHALL CONSIST OF THE REMAINING FUNDS PROVIDED FOR IN PART A OF TITLE III OF THIS ACT AND SUCH AMOUNTS AS MAY BE DEPOSITED IN SUCH FUND BY THE DIRECTOR OUT OF FUNDS MADE AVAILABLE FROM APPROPRIATIONS FOR THE PURPOSES OF CARRYING OUT THIS PART. //42 USC 2841.// THE DIRECTOR SHALL UTILIZE THE SERVICES OF THE FARMERS HOME ADMINISTRATION IN ADMINISTERING THE FUND.

"(3) THE COMMUNITY DEVELOPMENT LOAN FUND SHALL CONSIST OF SUCH AMOUNTS AS MAY BE DEPOSITED IN SUCH FUND BY THE SECRETARY OUT OF FUNDS MADE AVAILABLE FROM APPROPRIATIONS FOR THE PURPOSE OF CARRYING OUT THIS SUBCHAPTER. THE SECRETARY MAY MAKE DEPOSITS IN THE COMMUNITY DEVELOPMENT LOAN FUND IN ANY FISCAL YEAR IN WHICH HE HAS MADE AVAILABLE FOR GRANTS TO COMMUNITY DEVELOPMENT CORPORATIONS UNDER PART B OF THIS TITLE NOT LESS THAN $60,000,000 OUT OF FUNDS MADE AVAILABLE FROM APPROPRIATIONS FOR THE PURPOSE OF CARRYING OUT THIS TITLE. //ANTE, P. 2318.//

"ESTABLISHMENT OF MODEL COMMUNITY ECONOMIC DEVELOPMENT FINANCE CORPORATION

"SEC. 732. //42 USC 2984A.// (A) TO THE EXTENT HE DEEMS APPROPRIATE, THE DIRECTOR SHABLL UTILIZE FUNDS AVAILABLE UNDER THIS PART TO PREPARE A PLAN OF ACTION FOR THE ESTABLISHMENT OF A MODEL COMMUNITY ECONOMIC DEVELOPMENT FINANCE CORPORATION TO PROVIDE A UNER-CONTROLLED INDEPENDENT AND PROFESSIONALLY OPERATED LONG-TERM FINANCING VEHICLE WITH THE PRINCIPAL PURPOSE OF PROVIDING FINANCIAL SUPPORT FOR COMMUNITY ECONOMIC DEVELOPMENT CORPORATIONS, COOPERATIVES, OTHER AFFILIATED AND SUPPORTIVE AGENCIES AND ORGANIZATIONS ASSOCIATED WITH COMMUNITY ECONOMIC DEVELOPMENT CORPORATIONS, AND OTHER ENTITIES ELIGIBLE FOR ASSISTANCE UNDER THIS TITLE.

"(D) NOT LATER THAN JUNE 1, 1975, THE DIRECTOR SHALL SUBMIT TO THE APPROPRIATE COMMITTEES OF THE CONGRESS THE PLAN REQUIRED BY THIS SECTION.

"PART D--SUPPORTIVE PROGRAMS AND ACTIVITIES

"TRAINING AND TECHNICAL ASSISTANCE

"SEC. 741. //42 USC 2985.// (A) THE DIRECTOR SHALL PROVIDE, DIRECTLY OR THROUGH GRANTS, CONTRACTS OR OTHER ARRANGEMENTS, SUCH TECHNICAL ASSISTANCE AND TRAINING OF PERSONAL AS MAY BE REQUIRED TO EFFECTIVELY IMPLEMENT THE PURPOSES OF THIS TITLE. NO FINANCIAL ASSISTANCE SHALL BE PROVIDED TO ANY PUBLIC OR PRIVATE ORGANIZATION UNDER THIS SECTION UNLESS THE DIRECTOR PROVIDES THE BENEFICIARIES OF THESE SERVICES WITH OPPORTUNITY TO PARTICIPATE IN THE SELECTION OF AND TO REVIEW THE QUALITY AND UTILITY OF THE SERVICES FURNISHED THEM BY SUCH ORGANIZATION.

"(B) TECHNICAL ASSISTANCE TO COMMUNITY DEVELOPMENT CORPORATIONS AND BOTH URBAN AND RURAL COOPERATIVES MAY INCLUDE PLANNING, MANAGEMENT, LEGAL PREPARATION OF FEASIBILITY STUDIES, PRODUCT DEVELOPMENT, MARKETING, AND THE PROVISION OF STIPENDS TO ENCOURAGE SKILLED PROFESSIONALS TO ENGAGE IN FULL-TIME ACTIVITIES UNDER THE DIRECTION OF A COMMUNITY ORGANIZATION FINANCIALLY ASSISTED UNDER THIS TITLE.

"(C) TRAINING FOR EMPLOYEES OF COMMUNITY DEVELOPMENT BORPORATIONS AND FOR EMPLOYWEES AND MEMBERS OF URBAN AND RURAL COOPERATIVES SHALL INCLUDE, BUT NOT BE LIMITED TO, ON-THE-JOB TRAINING, CLASSROOM INSTRUCTION, AND SCHOLARSHIPS TO ASSIST THEM IN DEVELOPMENT, MANAGERIAL, ENTREPRENEURIAL, PLANNING, AND OTHER TECHNICAL AND ORGANIZATIONAL SKILLS WHICH WILL CONTRIBUTE TO THE EFFECTIVENESS OF PROGRAMS ASSISTED UNDER THIS SUBCHAPTER.

"APPLICATIONS OF OTHER FEDERAL RESOURCES--SMALL BUSINESS ADMINISTRATION PROGRAMS

"SEC. 742. //42 USC 2985A.// (A)(1) FUNDS GRANTED UNDER THIS PART WHICH ARE INVESTED DIRECTLY OR INDIRECTLY, IN A SMALL BUSINESS INVESTMENT COMPANY OR A LOCAL DEVELOPMENT COMPANY, LIMITED SMALL BUSINESS INVESTMENT COMPANY SHALL BE INCLUDED AS "PRIVATE PAID-IN CAPITAL AND PAID-IN SURPLUS," "COMBINED PAID-IN CAPITAL AND PAID-IN SURPLUS," AND "PAID-IN CAPITAL" FOR PURPOSES OF SECTIONS 302, 303, AND 502, RESPECTIVELY, OF THE SMALL BUSINESS INVESTMENT ACT OF 1958. //15 USC 682, 683, 696.//

"(2) WITHIN NINETY DAYS OF THE ENACTMENT OF THIS TITLE, THE ADMINISTRATOR OF THE SMALL BUSINESS ADMINISTRATION, AFTER CONSULTATION WITH THE SECRETARY, SHALL PRESCRIBE SUCH REGULATIONS AS MAY BE NECESSARY AND APPROPRIATE TO INSURE THE AVAILABILITY TO COMMUNITY DEVELOPMENT CORPORATIONS OF SUCH PROGRAMS AS SHALL FURTHER THE PURPOSES OF THIS PART.

"(B)(1) AREAS SELECTED FOR ASSISTANCE UNDER THIS TITLE SHALL BE DEEMED 'REDEVELOPMENT AREAS' WITHIN THE MEANING OF SECTION 401 OF THE PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965, SHALL QUALIFY FOR ASSISTANCE UNDER THE PROVISIONS OF TITLE I AND TITLE II OF THAT ACT, AND SHALL BE DEEMED TO HAVE MET THE OVERALL ECONOMIC DEVELOPMENT PROGRAM REQUIREMENTS OF SECTION 202(B)(10) OF SUCH ACT. //42 USC 3161, 42 USC 3131, 3141, 42 USC 3142.//

"(2) WITHIN NINETY DAYS OF THE ENACTMENT OF THIS TITLE, THE SECRETARY SHALL PRESCRIBE REGULATIONS WHICH WILL INSURE THAT COMMUNITY DEVELOPMENT CORPORATIONS AND COOPERATIVES SHALL QUALIFY FOR ASSISTANCE AND SHALL BE ELIGIBLE TO RECEIVE SUCH ASSISTANCE UNDER ALL SUCH PROGRAMS OF THE ECONOMIC DEVELOPMENT ADMINISTRATION AS SHALL FURTHER THE PURPOSES OF THIS TITLE.

"DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PROGRAMS

"SEC. 743. //42 USC 2985B.// THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT, AFTER CONSULTATION WITH THE DIRECTOR, SHALL TAKE ALL NECESSARY STEPS TO ASSIST COMMUNITY DEVELOPMENT CORPORATIONS AND LOCAL COOPERATIVE ASSOCIATIONS TO QUALIFY FOR AND RECEIVE (1) SUCH ASSISTANCE IN CONNECTION WITH TECHNICAL ASSISTANCE, COUNSELING TO TENANTS AND HOMEOWNERS, AND LOANS TO SPONSORS OF LOW AND MODERATE-INCOME HOUSING UNDER SECTION 106 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968 //12 USC 1701X.// AS AMENDED BY SECTION 811 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, (2) SUCH LAND FOR HOUSING AND BUSINESS LOCATION AND EXPANSION UNDER TITLE I OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, //ANTE, P. 735.// AND (3) SUCH FUNDS FOR COMPREHENSIVE PLANNING UNDER SECTION 701 OF THE HOUSING ACT OF 1954 AS AMENDED BY SECTION 401 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS SHALL FURTHER THE PURPOSES OF THIS ACT. //40 USC 461, ANTE, P. 686.//

"DEPARTMENT OF AGRICULTURE AND FARMERS HOME ADMINISTRATION PROGRAMS

"SEC. 744. //42 USC 2985C.// (A) THE SECRETARY OF AGRICULTURE OR, WHERE APPROPRIATE, THE ADMINISTRATOR OF THE FARMERS HOME ADMINISTRATION, AFTER CONSULTATION WITH THE DIRECTOR, SHALL TAKE ALL NECESSARY STEPS TO INSURE THAT COMMUNITY DEVELOPMENT CORPORATIONS AND LOCAL COOPERATIVE ASSOCIATIONS SHALL QUALIFY FOR AND SHALL RECEIVE (1) SUCH ASSISTANCE IN CONNECTION WITH HOUSING DEVELOPMENT UNDER THE HOUSING ACT OF 1949, //42 USC 1441 NOTE.// (2) SUCH ASSISTANCE IN CONNECTION WITH HOUSING, BUSINESS, INDUSTRIAL, AND COMMUNITY DEVELOPMENT UNDER THE CONSOLIDATED FARMERS HOME ADMINISTRATION ACT OF 1961 AND THE RURAL DEVELOPMENT ACT OF 1972, //7 USC 1921 NOTE.// AND (3) SUCH FURTHER ASSISTANCE UNDER ALL SUCH PROGRAMS OF THE UNITED STATES DEPARTMENT OF AGRICULTURE, AS SHALL FURTHER THE PURPOSES OF THIS TITLE.

"(B) ON OR BEFORE SIX MONTHS AFTER THE ENACTMENT OF THIS TITLE, AND ANNUALLY THEREAFTER, THE SECRETARY SHALL SUBMIT TO THE CONGRESS A DETAILED REPORT SETTING FORTH A DESCRIPTION OF ALL FEDERAL AGENCY PROGRAMS WHICH HE FINDS RELEVANT TO ACHIEVING THE PURPOSES OF THIS PART AND THE EXTENT TO WHICH SUCH PROGRAMS HAVE BEEN MADE AVAILABLE TO COMMUNITY DEVELOPMENT CORPORATIONS RECEIVING FINANCIAL ASSISTANCE UNDER THIS PART INCLUDING SPECIFICALLY THE AVAILABILITY AND EFFECTIVENESS OF PROGRAMS REFERRED TO IN SUBSECTION (A) OF THIS SECTION. WHERE APPROPRIATE, THE REPORT REQUIRED UNDER THIS SUBSECTION ALSO SHALL CONTAIN RECOMMENDATIONS FOR THE MORE EFFECTIVE UTILIZATION OF FEDERAL AGENCY PROGRAMS FOR CARRYING OUT THE PURPOSES OF THIS TITLE.

"COORDINATION AND ELIGIBILITY

"SEC. 745. //42 USC 2985D.// (A) THE DIRECTOR SHALL TAKE ALL NECESSARY AND APPROPRIATE STEPS TO ENCOURAGE FEDERAL DEPARTMENTS AND AGENCIES AND STATE AND LOCAL GOVERNMENTS TO MAKE GRANTS, PROVIDE TECHNICAL ASSISTANCE, ENTER INTO CONTRACTS, AND GENERALLY SUPPORT AND COOPERATE WITH COMMUNITY DEVELOPMENT CORPORATIONS AND LOCAL COOPERATIVE ASSOCIATIONS.

"(B) ELIGIGILITY FOR ASSISTANCE UNDER OTHER FEDERAL PROGRAMS SHALL NOT BE DENIED TO ANY APPLICANT ON THE GROUND THAT IT IS A COMMUNITY DEVELOPMENT CORPORATION OR ANY OTHER ENTITY ASSISTED UNDER THIS TITLE.

"EVALUATION AND RESEARCH

"SEC. 746. //42 USC 2985E.// (A) EACH PROGRAM FOR WHICH GRANTS ARE MADE UNDER THIS TITLE SHALL PROVIDE FOR A THOROUGH EVALUATION OF THE EFFECTIVENESS OF THE PROGRAM IN ACHIEVING ITS PURPOSES, WHICH EVALUATION SHALL BE CONDUCTED BY SUCH PUBLIC OR PRIVATE ORGANIZATIONS AS THE DIRECTOR, IN CONSULTATION WITH EXISTING GRANTEES FAMILIAR WITH PROGRAMS CARRIED OUT UNDER THIS ACT, MAY DESIGNATE, AND ALL OR PART OF THE COSTS OF EVALUATION MAY BE PAID FROM FUNDS APPROPRIATED TO CARRY OUT THIS PART. IN EVALUATING THE PERFORMANCE OF ANY COMMUNITY DEVELOPMENT CORPORATION FUNDED UNDER PART A OF THIS TITLE, THE CRITERIA FOR EVALUATION SHALL BE BASED UPON SUCH PROGRAM OBJECTIVES, GOALS, AND PRIORITIES AS ARE CONSISTENT WITH THE PURPOSES OF THIS TITLE AND WERE SET FORTH BY SUCH COMMUNITY DEVELOPMENT CORPORATION IN ITS PROPOSAL FOR FUNDING AS APPROVED AND AGREED UPON BY THE DIRECTOR OR AS SUBSEQUENTLY MODIFIED FROM TIME TO TIME BY MUTUAL AGREEMENT BETWEEN THE DIRECTOR AND SUCH COMMUNITY DEVELOPMENT CORPORATION.

"(B) THE DIRECTOR SHALL CONDUCT, EITHER DIRECTLY OR THROUGH GRANTS OR OTHER ARRANGEMENTS, RESEARCH DESIGNED TO SUGGEST NEW PROGRAMS AND POLICIES TO ACHIEVE THE PURPOSES OF THIS TITLE IN SUCH WAYS AS TO PROVIDE OPPORTUNITIES FOR EMPLOYMENT, OWNERSHIP, AND A BETTER QUALITY OF LIFE FOR LOW-INCOME RESIDENTS.

"PLANNING GRANTS

"SEC. 747. //42 USC 2985F.// IN ORDER TO FACILITATE THE PURPOSES OF THIS TITLE, THE DIRECTOR IS AUTHORIZED TO PROVIDE FINANCIAL ASSISTANCE TO ANY PUBLIC OR PRIVATE NONPROFIT AGENCY OR ORGANIZATION FOR PLANNING OF COMMUNITY ECONOMIC DEVELOPMENT PROGRAMS AND COOPERATIVE PROGRAMS UNDER THIS TITLE.

"NONDISCRIMINATION PROVISIONS

"SEC. 748. //42 USC 2985G.// (A) THE DIRECTOR SHALL NOT PROVIDE FINANCIAL ASSISTANCE FOR ANY PROGRAM, PROJECT, OR ACTIVITY UNDER THIS TITLE UNLESS THE GRANT OR CONTRACT WITH RESPECT THERETO SPECIFICALLY PROVIDE THAT NO PERSON WITH RESPONSIBILITIES IN THE OPERATION THEREOF WILL DISCRIMINATE WITH RESPECT TO ANY SUCH PROGRAM, PROJECT, OR ACTIVITY BECAUSE OF RACE, CREED, COLOR, NATIONAL ORIGIN, SEX, POLITICAL AFFILIATION, OR BELIEFS.

"(B) NO PERSON IN THE UNITED STATES SHALL ON THE GROUND OF SEX BE EXCLUDED FROM PARTICIPATION IN, BE DENIED THE BENEFITS OF, BE SUBJECTED TO DISCRIMINATION UNDER, OR BE DENIED EMPLOYMENT IN CONNECTION WITH ANY PROGRAM OR ACTIVITY RECEIVING ASSISTANCE UNDER THIS TITLE. THE DIRECTOR SHALL ENFORCE THE PROVISIONS OF THE PRECEDING SENTENCE IN ACCORDANCE WITH SECTION 602 OF THE CIVIL RIGHTS ACT OF 1964. //42 USC 2000D - 1.// SECTION 603 OF SUCH ACT SHALL APPLY WITH RESPECT TO ANY ACTION TAKEN BY THE SECRETARY TO ENFORCE SUCH SENTENCE. //42 USC 2000D - 2.// THIS SECTION SHALL NOT BE CONSTRUED AS AFFECTING ANY OTHER LEGAL REMEDY THAT A PERSON MAY HAVE IF THAT PERSON IS EXCLUDED FROM PARTICIPATION IN, DENIED THE BENEFIRS OF, SUBJECTED TO DISCRIMINATION UNDER, OR DENIED EMPLOYMENT IN CONNECTION WITH, ANY PROGRAM, PROJECT, OR ACTIVITY RECEIVING ASSISTANCE UNDER THIS TITLE."

NATIVE AMERICAN PROGRAMS

SEC. 11. THE ECONOMIC OPPORTUNITY ACT OF 1964 IS FURTHER AMENDED BY INSERTING AFTER THE TITLE VII THEREOF THE FOLLOWING NEW TITLE VIII:

"TITLE VIII--NATIVE AMERICAN PROGRAMS

"SHORT TITLE

"SEC. 801. //42 USC 2991.// THIS TITLE MAY BE CITED AS THE 'NATIVE AMERICAN PROGRAMS ACT OF 1974'.

"STATEMENT OF PURPOSE

"SEC. 802. //42 USC 2991A.// THE PURPOSE OF THIS TITLE IS TO PROMOTE THE GOAL OF ECONOMIC AND SOCIAL SELF-SUFFICIENCY FOR AMERICAN INDIANS, HAWAIIAN NATIVES AND ALASKEN NATIVES.

"FINANCIAL ASSISTANCE FOR NATIVE AMERICAN PROJECTS

"SEC. 803. //42 USC 2991B.// (A) THE SECRETARY IS AUTHORIZED TO PROVEDE FINANCIAL ASSISTANCE TO PUBLIC AND NONPROFIT PRIVATE AGENCIES, INCLUDING BUT NOT LIMITED TO, GOVERNIN G BODIES OF INDIAN TRIBES ON FEDERAL AND STATE RESERVATIONS, ALASKAN NATIVE VILLAGES AND REGIONAL CORPORATIONS ESTABLISHED BY THE ALASKA NATIVE CLAIMS SETTLEMENT ACT, AND SUCH PUBLIC AND NONPROFIT PRIVATE AGENCIES SERVING HAWAIIAN NATIVES, AND INDIAN ORGANIZATIONS IN URBAN OR RURAL NONRESERVATION AREAS, FOR PROJECTS PERTAINING TO THE PURPOSES OF THIS TITLE. //43 USC 1061 NOTE.// IN DETERMINING THE PROJECTS TO BE ASSISTED UNDER THIS TITLE, THE SECRETARY SHALL CONSULT WITH OTHER FEDERAL AGENCIES FOR THE PURPOSE OF ELIMINATING DUPLICATION OR CONFLICT AMONG SIMILAR ACTIVITIES OR PROJECTS AND FOR THE PURPOSE OF DETERMINING WHETHER THE FINDINGS RESULTING FROM THOSE PROJECTS MAY BE INCORPORATED INTO ONE OR MORE PROGRAMS FOR WHICH THOSE AGENCIES ARE RESPONSIBLE.

"(B) FINANCIAL ASSISTANCE EXTENDED TO AN AGENCY UNDER THIS TITLE SHALL NOT EXCEED 80 PER CENTUM OF THE APPROVED COSTS OF THE ASSISTED PROJECT, EXCEPT THAT THE SECRETARY MAY APPROVE ASSISTANCE IN EXCESS OF SUCH PERCENTAGE IF HE DETERMINES, IN ACCORDANCE WITH REGULATIONS ESTABLISHING OBJECTIVE CRITERIA, THAT SUCH ACTION IS REQUIRED IN FURTHERANCE OF THE PURPOSES OF THIS TITLE. NON-FEDERAL CONTRIBUTIONS MAY BE IN CASH OR IN KIND, FAIRLY EVALUATED, INCLUDING BUT NOT LIMITED TO PLANT, EQUIPMENT, AND SERVICES. THE SECRETARY SHALL NOT REQUIRE NON-FEDERAL CONTRIBUTIONS IN EXCESS OF 20 PER CENTUM OF THE APPROVED COSTS OF PROGRAMS OR ACTIVITIES ASSISTED UNDER THIS TITLE.

"(C) NO PROJECT SHALL BE APPROVED FOR ASSISTANCE UNDER THIS TITLE UNLESS THE SECRETARY IS SATISFIED THAT THE ACTIVITIES TO BE CARRIED OUT UNDER SUCH PROJECT WILL BE IN ADDITION TO, AND NOT IN SUBSTITUTION FOR, COMPARABLE ACTIVITIES PREVIOUSLY CARRIED OUT WITHOUT FEDERAL ASSISTANCE, EXCEPT THAT THE SECRETARY MAY WAIVE THIS REQUIREMENT IN ANY CASE IN WHICH HE DETERMINES, IN ACCORDANCE WITH REGULATIONS ESTABLISHING OBJECTIVE CRITERIA, THAT APPLICATION OF THE REQUIREMENT WOULD RESULT IN UNNECESSARY HARDSHIP OR OTHERWISE BE INCONSISTENT WITH THE PURPOSES OF THIS TITLE.

"TECHNICAL ASSISTANCE AND TRAINING

"SEC. 804. //42 USC 2991C.// THE SECRETARY MAY PROVIDE, DIRECTLY OR THROUGH OTHER ARRANGEMENTS, (1) TECHNICAL ASSISTANCE TO PUBLIC AND PRIVATE AGENCIES IN DEVELOPING, CONDUCTING, AND ADMINISTERING PROJECTS UNDER THIS TITLE, AND (2) SHORT-TERM I-SERVICE TRAINING FOR SPECIALIZED OR OTHER PERSONNEL WHICH IS NEEDED IN CONNECTION WITH PROJECTS RECEIVING FINANCIAL ASSISTANCE UNDER THIS TITLE.

"RESEARCH, DEMONSTRATION, AND PILOT PROJECTS

"SEC. 805. //42 USC 2991D.// (A) THE SECRETARY MAY PROVIDE FINANCIAL ASSISTANCE THROUGH GRANTS OR CONTRACTS FOR RESEARCH, DEMONSTRATION, OR PILOT PROJECTS CONDUCTED BYZ PUBLIC OR PRIVATE AGENCIES WHICH ARE DESIGNED TO TEST OR ASSIST IN THE DEVELOPMENT OF NEW APPROACHES OR METHODS THAT WILL AID IN OVERCOMING SPECIAL PROBLEMS OR OTHERWISE FURTHERING THE PURPOSES OF THIS TITLE.

"(B) THE SECRETARY SHALL ESTABLISH AN OVERALL PLAN TO GOVERN THE APPROVAL OF RESEARCH, DEMONSTRATION, OR PILOT PROJECTS

"SEC. 806. //42 USC 2991E.// (A) THE SECRETARY SHALL MAKE A PUBLIC ANNOUNCEMENT CONCERNING--

"(1) THE TITLE, PURPOSE, INTENDED COMPLETION DATE, IDENTITY OF THE GRANTEE OR CONTRACTOR, AND PROPOSED COST OF ANY GRANT OR CONTRACT WITH A PRIVATE OR NON-FEDERAL PUBLIC AGENCY FOR A RESEARCH, DEMONSTRATION, OR PILOT PROJECT; AND

"(2) EXCEPT IN CASES IN WHICH THE SECRETARY DETERMINES THAT IT WOULD NOT BE CONSISTENT WITH THE PURPOSES OF THIS TITLE, THE RESULTS, FINDINGS, DATA, OR RECOMMENDATIONS MADE OR REPORTED AS A RESULT OF SUCH ACTIVITIES.

"(B) THE PUBLIC ANNOUNCEMENTS REQUIRED BY SUBSECTION (A) SHALL BE MADE WITHIN THIRTY DAYS OF MAKING SUCH GRANTS OR CONTRACTS, AND THE PUBLIC ANNOUNCEMENTS REQUIRED BY SUBSECTION (B) OF THIS SECTION SHALL BE MADE WITHIN THIRTY DAYS OF THE RECEIPT OF SUCH RESULTS.

"SUBMISSION OF PLANS TO STATE AND LOCAL OFFICIALS

"SEC. 807. //42 USC 2991F.// (A) NO FINANCIAL ASSISTANCE MAY BE PROVIDED TO ANY PROJECT UNDER SECTION 803 OF THIS TITLE OR ANY RESEARCH, DEMONSTRATION, OR PILOT PROJECT UNDER SECTION 805 OF THIS TITLE, WHICH IS TO BE CARRIED OUT ON OR IN AN INDIAN RESERVATION OR ALASKAN NATIVE VILLAGE, UNLESS A PLAN SETTING FORTH THE PROJECT HAS BEEN SUBMITTED TO THE GOVERNING BODY OF THAT RESERVATION OR VILLAGE AND THE PLAN HAS NOT BEEN DISAPPROVED BY THE GOVERNING BODY WITHIN THIRTY DAYS OF ITS SUBMISSION.

"(B) NO FINANCIAL ASISTANCE MAY BE PROVIDED TO ANY PROJECT UNDER SECTION 803 OF THIS TITLE OR ANY RESEARCH, DEMONSTRATION, OR PILOT PROJECT UNDER SECTION 805 OF THIS TITLE, WHICH IS TO BE CARRIED OUT IN A STATE OTHER THAN ON OR IN AN INDIAN RESERVATION OR ALASKAN NATIVE VILLAGE OR HAWAIIAN HOMESTEAD, UNLESS THE SECRETARY HAS NOTIFIED THE CHIEF EXECUTIVE OFFICER OF THE STATE OF HIS DECISION TO PROVIDE THAT ASSISTANCE.

"(C) NO FINANCIAL ASSISTANCE MAY BE PROVIDED TO ANY PROJECT UNDER SECTION 803 OF THIS TITLE OR ANY RESEARCH, DEMONSTRATION, OR PILOT PROJECT UNDER SECTION 805 OF THIS TITLE, WHICH IS TO BE CARRIED OUT IN A CITY, COUNTY, OR OTHER MAJOR POLITICAL SUBDIVISION OF A STATE, OTHER THAN ON OR IN AN INDIAN RESERVATION OR ALASKAN NATIVE VILLAGE, OR HAWAIIAN HOMESTEAD, UNLESS THE SECRETARY HAS NOTIFIED THE LOCAL GOVERNING OFFICIALS OF THE POLITICAL SUBDIVISION OF HIS DECISION TO PROVIDE THAT ASSISTANCE.

"RECORDS AND AUDITS

"SEC. 808. //42 USC 2991G.// (A) EACH AGENCY WHICH RECEIVES FINANCIAL ASSISTANCE UNDER THIS TITLE SHALL KEEP SUCH RECORDS AS THE SECRETARY MAY PRESCRIBE, INCLUDING RECORDS WHICH FULLY DISCLOSE THE AMOUNT AND DISPOSITION BY THAT AGENCY OF SUCH FINANCIAL ASSISTANCE, THE TOTAL COST OF THE PROJECT IN CONNECTION WITH WHICH SUCH FINANCIAL ASSISTANCE IS GIVEN OR USED, THE AMOUNT OF THAT PORTION OF THE COST OF THE PROJECT SUPPLIED BY OTHER SOURCES, AND SUCH OTHER RECORDS AS WILL FACILITATE AN EFFECTIVE AUDIT.

"(B) THE SECRETARY AND THE COMPTROLLER GENERAL OF THE UNITED STATES, OR ANY OF THEIR DULY AUTHORIZED REPRESENTATIVES, SHALL HAVE ACCESS FOR THE PURPOSE OF AUDIT AND EXAMINATION TO ANY BOOKS, DOCUMENTS, PAPERS, AND RECORDS OF ANY AGENCY WHICH RECEIVES FINANCIAL ASSISTANCE UNDER THIS TITLE THAT ARE PERTINENT TO THE FINANCIAL ASSISTANCE RECEIVED UNDER THIS TITLE.

"APPEALS, NOTICE, AND HEARING

"SEC. 809. //42 USC 2991H.// THE SECRETARY SHALL PRESCRIBE PROCEDURES TO ASSURE THAT--

"(1) FINANCIAL ASSISTANCE UNDER THIS TITLE SHALL NOT BE SUSPENDED, EXCEPT IN EMERGENCY SITUATIONS, UNLESS THE ASSISTED AGENCY HAS BEEN GIVEN REASONABLE NOTICE AND OPPORTUNITY TO SHOW CAUSE WHY SUCH ACTION SHOULD NOT BE TAKEN; AND

"(2) FINANCIAL ASSISTANCE UNDER THIS TITLE SHALL NOT BE TERMINATED, AND APPLICATION FOR REFUNDING SHALL NOT BE DENIED, AND A SUSPENSION OF FINANCIAL ASSISTANCE SHALL NOT BE CONTINUED FOR LONGER THAN THIRTY DAYS, UNLESS THE ASSISTED AGENCY HAS BEEN AFFORDED REASONABLE NOTICE AND OPPORTUNITY FOR A FULL AND FAIR HEARING.

"EVALUATION

"SEC. 810. //42 USC 2992.// (A) THE SECRETARY SHALL PROVIDE, DIRECTLY OR THROUGH GRANTS OR CONTRACTS, FOR THE EVALUATION OF PROJECTS ASSISTED UNDER THIS TITLE, INCLUDING EVALUATIONS THAT DESCRIBE AND MEASURE THE IMPACT OF SUCH PROJECTS, THEIR EFFECTIVENESS IN ACHIEVING STATED GOALS, THEIR IMPACT ON RELATED PROGRAMS, AND THEIR STRUCTURE AND MECHANISMS FOR DELIVERY OF SERVICES, INCLUDING, WHERE APPROPRIATE, COMPARISONS WITH APPROPRIATE CONTROL GROUPS COMPOSED OF PERSONS WHO HAVE NOT PARTICIPATED IN SUCH PROJECTS. EVALUATIONS SHALL BE CONDUCTED BY PERSONS NOT DIRECTLY INVOLVED IN THE ADMINISTRATION OF THE PROGRAM OR PROJECT EVALUATED.

"(B) PRIOR TO OBLIGATING FUNDS FOR THE PROGRAMS AND PROJECTS COVERED BY THIS TITLE WITH RESPECT TO FISCAL YEAR 1976, THE SECRETARY SHALL DEVELOP AND PUBLISH GENERAL STANDARDS FOR EVALUATION OF PROGRAM AND PROJECT EFFECTIVENESS IN ACHIEVING THE OBJECTIVES OF THIS TITLE. THE EXTENT TO WHICH SUCH STANDARDS HAVE BEEN MET SHALL BE CONSIDERED IN DECIDING WHETHER TO RENEW OR SUPPLEMENT FINANCIAL ASSISTANCE AUTHORIZED INDER THIS TITLE.

"(C) IN CARRYING OUT EVALUATIONS UNDER THIS TITLE, THE SECRETARY MAY REQUIRE AGENCIES WHICH RECEIVE ASSISTANCE UNDER THIS TITLE TO PROVIDE FOR INDEPENDENT EVALUATIONS.

"(D) IN CARRYING OUT EVALUATIONS UNDER THIS TITLE, THE SECRETARY SHALL, WHENEVER FEASIBLE, ARRANGE TO OBTAIN THE SPECIFIC VIEWS OF PERSONS PARTICIPATING IN AND SERVED BY PROGRAMS AND PROJECTS ASSISTED UNDER THIS TITLE ABOUT SUCH PROGRAMS AND PROJECTS.

"(E) THE SECRETARY SHALL PUBLISH THE RESULTS OF EVALUATIVE RESEARCH AND SUMMARIES OF EVALUATIONS OF PROGRAM AND PROJECT IMPACT AND EFFECTIVENESS NOT LATER THAN NINETY DAYS AFTER THE COMPLETION THEREOF. THE SECRETARY SHALL SUBMIT TO THE APPROPRIATE COMMITTEES OF THE CONGRESS COPIES OF ALL SUCH RESEARCH STUDIES AND EVALUATION SUMMARIES.

"(F) THE SECRETARY SHALL TAKE THE NECESSARY ACTION TO ASSURE THAT ALL STUDIES, EVALUATIONS, PROPOSALS, AND DATA PRODUCED OR DEVELOPED WITH ASSISTANCE UNDER THIS TITLE SHALL BECOME THE PROPERTY OF THE UNITED STATES.

"SEC. 811. //42 USC 2992A.// ALL LABORERS AND MECHANICS EMPLOYED BY CONTRACTORS OR SUBCONTRACTORS IN THE CONSTRUCTION, ALTERATION, OR REPAIR, INCLUDING PAINTING OR DECORATING, OF BUILDINGS OR OTHER FACILITIES IN CONNECTION WITH PROJECTS ASSISTED UNDER THIS TITLE, SHALL 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. //42 USC 276A NOTE.// THE SECRETARY OF LABOR SHALL HAVE, WITH RESPECT TO SUCH LABOR STANDARDS, THE AUTHORITY AND FUNCTIONS SET FORTH IN REORGANIZATION PLAN NUMBERED 14 OF 1950, AND SECTION 2 OF THE ACT OF JUNE 1, 1934. //5 USC APP II.//

"DELEGATION OF AUTHORITY

"SEC. 812. //42 USC 2992B.// (A) THE SECRETARY IS AUTHORIZED TO DELEGATE TO THE HEADS OF OTHER DEPARTMENTS AND AGENCIES OF THE FEDERAL GOVERNMENT ANY OF HIS FUNCTIONS, POWERS, AND DUTIES UNDER THIS TITLE, AS HE MAY DEEM APPROPRIATE, AND TO AUTHORIZE THE REDELEGATION OF SUCH FUNCTIONS, POWERS, AND DUTIES BY THE HEADS OF SUCH DEPARTMENTS AND AGENCIES.

"(B) DEPARTMENTS AND AGENCIES OF THE FEDERAL GOVERNMENT SHALL EXERCISE THEIR POWERS, DUTIES, AND FUNCTIONS IN SUCH MANNER AS WILL ASSIST IN CARRYING OUT THE OBJECTIVES OF THIS TITLE.

"(C) FUNDS APPROPRIATED FOR THE PURPOSE OF CARRYING OUT THIS TITLE MAY BE TRANSFERRED BETWEEN DEPARTMENTS AND AGENCIES OF THE GOVERNMENT, IF SUCH FUNDS ARE USED FOR THE PURPOSES FOR WHICH THEY ARE AUTHORIZED AND APPROPRIATED.

"DEFINITIONS

"SEC. 813. //42 USC 2992C.// AS USED IN THIS TITLE, THE TERM--,

"(1) 'FINANCIAL ASSISTANCE' INCLUDES ASSISTANCE ADVANCED BY GRANT, AGREEMENT, OR CONTRACT, BUT DOES NOT INCLUDE THE PROCUREMENT OF PLANT OR EQUIPMENT, OR GOODS OR SERVICES;

"(2) 'INDIAN RESERVATION OR ALASKAN NATIVE VILLAGE' INCLUDES THE RESERVATION OF ANY FEDERALLY OR STATE RECOGNIZED INDIAN TRIBE, INCLUDING ANY BAND, NATION, PUEBLO, OR RANCHERIA, ANY FORMER RESERVATION IN OKLAHOMA, ANY COMMUNITY UNDER THE JURISDICTION OF AN INDIAN TRIBE, INCLUDING A BAND, NATION, PUEBLO, OR RANCHERIA, WITH ALLOTTED LANDS OR LANDS SUBJECT TO A RESTRICTION AGAINST ALEINATION IMPOSED BY THE UNITED STATES OR A STATE, AND ANY LANDS OF OR UNDER THE JURISDICTION OF AN ALASKAN NATIVE VILLAGE OR GROUP, INCLUDING ANY LANDS SELECTED BY ALASKAN NATIVES OR ALASKAN NATIVE ORGANIZATIONS UNDER THE ALASKA NATIVE CLAIMS SETTLEMENT ACT;

"(3) 'NATIVE HAWAIIAN' MEANS ANY INDIVIDUAL ANY OF WHOSE ANCESTORS WERE NATIVES OF THE AREA WHICH CONSISTS OF THE HAWAIIAN ISLANDS PRIOR TO 1778.

"AUTHORIZATION OF APPROPRIATIONS

"SEC. 814. //42 USC 2992D.// THERE ARE AUTHORIZED TO BE APPROPRIATED FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS TITLE, SUCH SUMS AS MAY BE NECESSARY FOR FISCAL YEARS 1975 THROUGH 1977."

EVALUATION

SEC. 12. TITLE IX OF THE ECONOMIC OPPORTUNITY ACT OF 1964 IS AMENDED TO READ AS FOLLOWS:

"TITLE IX--EVALUATION

"PROGRAM AND PROJECT EVALUATION

"SEC. 901. //42 USC 2995.// (A)(1) THE DIRECTOR SHALL, DIRECTLY OR THROUGH GRANTS OR CONTRACTS, MEASURE AND EVALUATE THE IMPACT OF ALL PROGRAMS AUTHORIZED BY THIS ACT AND OF POVERTY-RELATED PROGRAMS AUTHORIZED BY OTHER ACTS, IN ORDER TO DETERMINE THEIR EFFECTIVENESS IN ACHIEVING STATED GOALS, THEIR IMPACT ON RELATED PROGRAMS, AND THEIR STRUCTURE AND MECHANISMS FOR DELIVERY OF SERVICES, INCLUDING WHERE APPROPRIATE, COMPARISONS WITH APPROPRIATE CONTROL GROUPS COMPOSED OF PERSONS WHO HAVE NOT PARTICIPATED IN SUCH PROGRAMS. EVALUATIONS SHALL BE CONDUCTED BY PERSONS NOT DIRECTLY INVOLVED IN THE ADMINISTRATION OF THE PROGRAM OR PROJECT EVALUATED.

"(2) IN CARRYING OUT HIS RESPONSIBILITIES UNDER THIS SECTION, THE DIRECTOR, IN THE CASE OF RESEARCH, DEMONSTRATIONS, AND RELATED ACTIVITIES CARRIED OUT UNDER TITLE I OF THIS ACT, SHALL, AFTER TAKING INTO CONSIDERATION THE VIEWS OF STATE AGENCIES AND COMMUNITY ACTION AGENCIES DESIGNATED PURSUANT TO SECTION 210 OF THIS ACT, //ANTE P. 2294.// ON AN ANNUAL BASIS--

"(A) REASSESS PRIORITIES TO WHICH SUCH ACTIVITIES SHOULD BE DIRECTED; AND

"(B) REVIEW PRESENT RESEARCH, DEMONSTRATION, AND RELATED ACTIVITIES TO DETERMINE, IN TERMS OF THE PURPOSE SPECIFIED FOR SUCH ACTIVITIES IN SECTION 102(A) OF THIS ACT, //ANTE, P. 2292.// WHETHER AND ON WHAT BASIS SUCH ACTIVITIES SHOULD BE CONTINUED, REVISED, OR TERMINATED.

"(3) THE DIRECTOR SHALL, WITHIN 12 MONTHS AFTER THE DATE OF ENACTMENT OF THIS ACT, AND ON EACH APRIL 1 THEREAFTER, PREPARE AND FURNISH TO THE APPROPRIATE COMMITTEES OF THE CONGRESS A COMPLETE REPORT ON THE DETERMINATION AND REVIEW CARRIED OUT UNDER PARAGRAPH (2) OF THIS SUBSECTION, TOGETHER WITH SUCH RECOMMENDATIONS, INCLUDING ANY RECOMMENDATIONS FOR ADDITIONAL LEGISLATION, AS HE DEEMS APPROPRIATE.

"(B) PRIOR TO OBLIGATING FUNDS FOR THE PROGRAMS AND PROJECTS COVERED BY THIS ACT WITH RESPECT TO FISCAL YEAR 1976, THE DIRECTOR SHALL DEVELOP AND PUBLISH GENERAL STANDARDS FOR EVALUATION OF PROGRAM AND PROJECT EFFECTIVENESS IN ACHIEVING THE OBJECTIVES OF THIS ACT. THE EXTENT TO WHICH SUCH STANDARDS HAVE BEEN MET SHALL BE CONSIDERED IN DECIDING WHETHER TO RENEW OR SUPPLEMENT FINANCIAL ASSISTANCE AUTHORIZED UNDER ANY SECTION OF THIS ACT. REPORTS SUBMITTED PURSUANT TO SECTION 608 OF THIS ACT SHALL DESCRIBE THE ACTIONS TAKEN AS A RESULT OF THESE EVALUATIONS. //42 USC 2948.//

"(C) IN CARRYING OUT EVALUATIONS UNDER THIS TITLE, THE DIRECTOR SHALL, WHENEVER FEASIBLE, ARRANGE TO OBTAIN THE SPECIFIC VIEWS OF PERSONS PARTICIPATING IN AND SERVED BY PROGRAMS AND PROJECTS ASSISTED UNDER THIS ACT ABOUT SUCH PROGRAMS AND PROJECTS, AND SHALL CONSULT, WHEN APPROPRIATE, WITH STATE AGENCIES AND COMMUNITY ACTION AGENCIES DESIGNATED PURSUANT TO SECTION 210, ANTE, P. 2294.// IN ORDER TO PROVIDE FOR JOINTLY SPONSORED OBJECTIVE EVALUATION STUSIES ON A STATE OR AREAWIDE BASIS.

"(D) THE DIRECTOR SHALL PUBLISH THE RESULTS OF EVALUATIVE RESEARCH AND SUMMARIES OF EVALUATIONS OF PROGRAM AND PROJECT IMPACT AND EFFECTIVENESS NOT LATER THAN NINETY DAYS AFTER THE COMPLETION THEREOF. THE DIRECTOR SHALL SUBMIT TO THE APPROPRIATE COMMITTEES OF THE CONGRESS COPIES OF ALL SUCH RESEARCH STUDIES AND EVALUATION SUMMARIES.

"(E) THE DIRECTOR SHALL TAKE THE NECESSARY ACTION TO ASSURE THAT ALL STUDIES, EVALUATIONS, PROPOSALS, AND DATA PRODUCED OR DEVELOPED WITH ASSISTANCE UNDER THIS ACT SHALL BECOME THE PROPERTY OF THE UNITED STATES.

"COOPERATION OF AND CONSULTATION WITH OTHER FEDERAL AGENCIES

"SEC. 902. //42 USC 2995A.// (A) SUCH INFORMATION AND COOPERATION AS THE DIRECTOR MAY DEEM NECESSARY FOR PURPOSES OF THE EVALUATIONS CONDUCTED UNDER THIS TITLE SHALL BE MADE AVAILABLE TO HIM, UPON REQUEST, BY THE AGENCIES OF THE EXECUTIVE BRANCH.

"(B) IN CARRYING OUT EVALUATIONS UNDER THIS TITLE, THE DIRECTOR SHALL CONSULT WITH THE HEADS OF OTHER FEDERAL AGENCIES CARRYING OUT ACTIVITIES RELATED TO THE SUBJECT MATTER OF THOSE EVALUATIONS.

"EVALUATION BY OTHER ADMINISTERING AGENCIES

"SEC. 903. //42 USC 2995B.// THE HEAD OF ANY AGENCY ADMINISTERING A PROGRAM AUTHORIZED UNDER THIS ACT MAY, WITH RESPECT TO SUCH PROGRAM, CONDUCT EVALUATIONS AND TAKE OTHER ACTIONS AUTHORIZED UNDER THIS TITLE TO THE SAME EXTENT AND IN THE SAME MANNER AS THE DIRECTOR UNDER THIS PART. NOTING IN THIS SECTION SHALL PRECLUDE THE DIRECTOR FROM CONDUCTING SUCH EVALUATIONS OR TAKING SUCH ACTIONS OTHERWISE AUTHORIZED UNDER THIS TITLE WITH RESPECT TO SUCH PROGRAMS."

CONGRESSIONAL REVIEW

SEC. 13. (A) THE SENATE COMMITTEE ON LABOR AND PUBLIC WELFARE AND THE HOUSE COMMITTEE ON EDUCATION AND LABOR SHALL CONDUCT JOINT STUDY WHICH SHALL INCLUDE-- //42 USC 2981 NOTE.//

(1) A CONSIDERATION OF AN APPROPRIATE ADMINISTRATIVE AGENCY FOR THE CONDUCT OF PROGRAMS AFTER JULY 1, 1975, UNDER TITLE VII OF THE ECONOMIC OPPORTUNITY ACT, //42 USC 2981.//

(2) REVIEW THE EXTENT TO WHICH PROGRAMS AND ACTIVITIES CONDUCTED UNDER TITLE VII OF THE ECONOMIC OPPORTUNITY ACT MEET THE OVERALL NEED IN THE NATION FOR COMMUNITY ECONOMIC DEVELOPMENT PROGRAMS AND THE RESOURCES AVAILABLE FROM PUBLIC AND PRIVATE FUNDS IN METING THOSE NEEDS, AND

(3) THE EXTENT TO WHICH THERE IS MAXIMUM UTILIZATION OF THE RESOURCES OF ALL FEDERAL AGENCIES HAVING RESPONSIBILITIES UNDER TITLE VII OF THE ECONOMIC OPPORTUNITY ACT, AND OTHER PUBLIC AND PRIVATE AGENCIES AND ORGANIZATIONS.

(B) THE SENATE COMMITTEE ON LABOR AND PUBLIC WELFARE AND THE HOUSE COMMITTEE ON EDUCATION AND LABOR SHALL SUBMIT SUCH REPORTS AS THEY DEEM APPROPRIATE ON THEIR FINDINGS, TOGETHER WITH ANY RECOMMENDATIONS FOR FURTHER LEGISLATION, NOT LATER THAN ONE YEAR AFTER ENACTMENT OF THIS TITLE.

EXTENSION OF PROGRAM AUTHORITY

SEC. 14. (A) SECTIONS 245, 321, AND 615 OF THE ECONOMIC OPPORTUNITY ACT OF 1964, ARE EACH AMENDED BY STRIKING OUT "EIGHT SUCCEEDING FISCAL YEARS" AND INSERTING IN LIEU THEREOF "ELEVEN SUCCEEDING FISCAL YEARS". //42 USC 2837, 2871, 2965.//

(B) SECTION 523 OF SUCH ACT (REDESIGNATED AS SECTION 583 BY SECTION 3(C) OF THIS ACT) IS AMENDED BY STRIKING OUT "SEVEN SUCCEEDING FISCAL YEARS" AND INSERTING IN LIEU THEREOF "TEN SUCCEEDING FISCAL YEARS". //42 USC 2933.//

AUTHORIZATION OF APPROPRIATIONS

SEC. 15. (A)(1) FOR THE PURPOSE OF CARRYING OUT TITLE I, TITLE II, TITLE III, TITLE IV, TITLE V, TITLE VI, TITLE VII, TITLE VIII, AND TITLE IX OF THE ECONOMIC OPPORTUNITY ACT OF 1964, THERE ARE AUTHORIZED TO BE APPROPRIATED SUCH SUMS AS MAY BE NECESSARY FOR EACH OF THE FISCAL YEARS 1975 THROUGH 1977. //42 USC 2707, ANTE, P. 2292, 42 USC 2841, 2901, 2921, 2941, ANTE, PP. 2315, 2324, 2328.//

(2) FOR THE PURPOSE OF LCARRYING OUT THE PROGRAMS AUTHORIZED UNDER SECTION 221 THERE IS AUTHORIZED TO BE APPROPRIATED $330,000,000 FOR THE FISCAL YEAR 1975 AND SUCH SUMS AS MAY BE NECESSARY FOR EACH OF THE TWO SUCCEEDING FISCAL YEARS. //42 USC 2808.//

(B) UNLESS THE CONGRESS HAS PASSED OR FORMALLY REJECTED LEGISLATION EXTENDING THE AUTHORIZATIONS OF APPROPRIATIONS FOR CARRYING OUT ANY TITLE OF THE ECONOMIC OPPORTUNITY ACT OF 1964 SPECIFIED IN SUBSECTION //42 USC 2701 NOTE.// (A) OF THIS SECTION, OR ADOPTS A CONCURRENT RESOLUTION PROVIDING THAT THE PROVISIONS OF THIS SUBSECTION SHALL NOT APPLY, THE AUTHORIZATIONS OF APPROPRIATIONS SPECIFIED IN SUBSECTION (A) ARE HEREBY AUTOMATICALLY EXTENDED FOR ONE ADDITIONAL FISCAL YEAR BEYOND THE TERMINAL YEAR SPECIFIED IN THE ECONOMIC OPPORTUNITY ACT OF 1964 OR IN THIS SECTION.

REPEALER

SEC. 16. (A) SECTION 115 OF THE ECONOMIC OPPORTUNITY AMENDMENTS OF 1969 IS REPEALED. //42 USC 2705.//

(B) SECTION 301 OF THE ECONOMIC OPPORTUNITY AMENDMENTS OF 1967 IS REPEALED. //42 USC 2703.//

LEGISLATIVE HISTORY:

HOUSE REPORTS: NO. 93 - 1043 (COMM. ON EDUCATION AND LABOR) AND NO. 93 - 1639 (COMM. OF CONFERENCE).

SENATE REPORT NO. 93 - 1291 (COMM. ON LABOR AND PUBLIC WELFARE).

CONGRESSIONAL RECORD, VOL. 120 (1974):

MAY 28, 29, CONSIDERED AND PASSED HOUSE.

DEC. 5, 10, 11, 13, CONSIDERED AND PASSED SENATE, AMENDED.

DEC. 19, SENATE AGREED TO CONFERENCE REPORT.

DEC. 20, HOUSE AGREED TO CONFERENCE REPORT.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, VOL. 11, NO. 2:

JAN. 4, PRESIDENTIAL STATEMENT.

PUBLIC LAW 93-643, 88 STAT 2281, FEDERAL-AID HIGHWAY AMENDMENTS OF 1974.

93 RD CONGESS, S. 3934 JANUARY 4, 1975
AN ACT TO AUTHORIZE APPROPRIATIONS FOR THE CONSTRUCTION OF CERTAIN HIGHWAYS IN ACCORDANCE WITH TITLE 23 OF THE UNITED STATES CODE, AND FOR OTHER PURPOSES.

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE CITED AS THE "FEDERAL-AID HIGHWAY AMENDMENTS OF 1974."

HIGHWAY AUTHORIZATIONS

SEC. 101. FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF TITLE 23, UNITED STATES CODE, THE FOLLOWING SUMS ARE HEREBY AUTHORIZED TO BE APPROPRIATED: //23 USC 101 NOTE, 23 USC 101 ET SEQ.//

(1) FOR THE FEDERAL-AID PRIMARY SYSTEM IN RURAL AREAS, OUT OF THE HIGHWAY TRUST FUND, AN ADDITIONAL $100,000,000 FOR THE FISCAL YEAR 1976. FOR THE FEDERAL-AID SECONDARY SYSTEM IN RUAL AREAS, OUT OF THE HIGHWAY TRUST FUND, AN ADDITIONAL $50,000,000 FOR THE FISCAL YEAR 1976. SUMS AUTHORIZED BY THIS PARAGRAPH ARE IN ADDITION TO THE AUTHORIZATIONS FOR FISCAL YEAR 1976 FOR THESE SYSTEMS IN SECTION 104(A)(1) OF THE FEDERAL-AID HIGHWAY ACT OF 1973. //87 STAT. 251.//

(2) FOR CONTROL OF OUTDOOE ADVERTISING UNDER SECTION 131 OF TITLE 23, UNITED STATES CODE, $50,000,000 FOR THE FISCAL YEAR 1975.

(3) FOR CONTROL OF JUNKYARDS UNDER SECTION 136 OF TITLE 23, UNITED STATES CODE, $15,000,000 FOR THE FISCAL YEAR 1975.

(4) FOR LANDSCAPING THE SCENIC ENHANCEMENT UNDER SECTION 319(B) OF TITLE 23, UNITED STATES CODE, $10,000,000 FOR THE FISCAL YEAR 1975.

(5) NOTHING IN PARAGRAPH (1) OR (6) OF THIS SECTION SHALL BE CONSTRUED TO AUTHORIZE THE APPROPRIATION OF ANY SUMS TO CARRY OUT SECTION 131, 136, 319(B), OR CHAPTER 4 OF TITLE 23, UNITED STATES CODE.

(6) FOR OFF-SYSTEM ROADS UNDER SECTION 219, TITLE I3, UNITED STATES CODE, $200,000,000 FOR THE FISCAL YEAR 1976.

INDIAN RESERVATION ROADS AND BRIDGES

SEC. 102. (A) PARAGRAPH (9) OF SUBSECTION (A) OF SECTION 104 OF THE FEDERAL-AID HIGHWAY ACT OF 1973 IS AMENDED TO READ AS FOLLOWS: //87 STAT. 252.//

"(9) FOR INDIAN RESERVATION ROADS AND BRIDGES, $83,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1974, $84,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1975, AND $83,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1976.".

(B) THE DEFINITION OF THE TERM "INDIAN RESERVATION ROADS AND BRIDGES" IN SUBSECTION (A) OF SECTION 101 OF TITLE 23, UNITED STATES CODE, IS AMENDED TO READ AS FOLLOWS:

"THE TERM 'INDIAN RESERVATION ROADS AND BRIDGES' MEANS ROADS AND BRIDGES, INCLUDING ROADS AND BRIDGES ON THE FEDERAL-AID SYSTEMS, THAT ARE LOCATED WITHIN OR PROVIDE ACCESS TO AN INDIAN RESERVATION OR INDIAN TRUST LAND OR RESTRICTED INDIAN LAND WHICH IS NOT SUBJECT TO FEE TITLE ALIENATION WITHOUT THE APPROVAL OF THE FEDERAL GOVERNMENT, OR INDIAN AND ALASKA NATIVE VILLAGES, GROUPS, OR COMMUNITIES IN WHICH INDIANS AND ALASKAN NATIVES REDISE, WHOM THE SECRETARY OF THE INTERIOR HAS DETERMINED ARE ELIGIBLE FOR SERVICES GENERALLY AVAILABLE TO INDIANS UNDER FEDERAL LAWS SPECIFICALLY APPLICABLE TO INDIANS.".

(C) SECTION 208 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY RELETTERING SUBSECTIONS (C) AND (D) AS (D) AND (E), RESPECTIVELY, AND ADDING A NEW SUBSECTION (C) AS FOLLOWS:

"(C) BEFORE APPROVING AS A PROJECT ON AN INDIAN RESERVATION ROAD OR BRIDGE ANY PROJECT ON A FEDERAL-AID SYSTEM IN A STATE, THE SECRETARY MUST DETERMINE THAT OBLIGATION OF FUNDS FOR SUCH PROJECT IS SUPPLEMENTARY TO AND NOT IN LIEU OF THE OBLIGATION, FOR PROJECTS ON INDIAN RESERVATION ROADS AND BRIDGES, OF A FAIR AND EQUITABLE SHARE OF FUNDS APPORTIONED TO SUCH STATE UNDER SECTION 104 OF THIS TITLE." //23 USC 104.//

(D) NO FUNDS APPROPRIATED UNDER THE EXPANDED DEFINITION OF THIS SECTION SHALL BE EXPENDED WITHOUT THE FORMAL CONSENT OF THE GOVERNING BODY OF THE TRIBE BAND OR GROUP OF INDIANS OR ALASKAN NATIVES FOR WHOSE USE THE INDIAN RESERVATION ROADS AND BRIDGES ARE INTENDED. //23 USC 101 NOTE.//

RURAL HIGHWAY PUBLIC TRANSPORTATION DEMONSTRATION PROGRAM

SEC. 103. SECTION 147 OF THE FEDERAL-AID HIGHWAY ACT OF 1973 IS AMENDED TO READ AS FOLLOWS: //23 USC 142 NOTE.//

"(A) TO ENCOURAGE THE DEVELOPMENT, IMPROVEMENT, AND USE OF PUBLIC MASS TRANSPORTATION SYSTEMS OPERATING VEHICLES ON HIGHWAYS FOR TRANSPROTATION OF PASSENGERS WITHIN RURAL AREAS AND SMALL URBAN AREAS, AND BETWEEN SUCH AREAS AND URBANIZED AREAS, IN ORDER TO ENHANCE ACCESS OF RURAL POPULATIONS TO EMPLOYMENT, HEALTH CARE, RETAIL CENTERS, EDUCATION, AND PUBLIC SERVICES, THERE ARE AUTHORIZED TO BE APPROPRIATED $15,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1975, AND $60,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1976, OF WHICH $50,000,000 SHALL BE OUT OF THE HIGHWAY TRUST FUND, TO THE SECRETARY OF TRANSPORTATION TO CARRY OUT DEMONSTRATION PROJECTS FOR PUBLIC MASS TRANSPORTATION ON HIGHWAYS IN RURAL AREAS AND SMALL URBAN AREAS. PROJECTS ELIGIBLE FOR FEDERAL FUNDS UNDER THIS SECTION SHALL INCLUDE HIGHWAY TRAFFIC CONTROL DEVICES, THE CONSTRUCTION OF PASSENGER LOADING AREAS AND FACILITIES, INCLUDING SHELTERS, FRINGE AND TRANSPORTATION CORRIDOR PARKING FACILITIES TO SERVE BUS AND OTHER PUBLIC MASS TRANSPORTATION PASSENGERS, THE PURCHASE OF PASSENGER EQUIPMENT OTHER THAN ROLLING STOCK FOR FIXED RAIL, AND THE PAYMENT FROM THE GENERAL FUND FOR OPERATING EXPENSES INCURRED AS A RESULT OF PROVIDING SUCH SERVICE. TO THE EXTENT INTERCITY BUS SERVICE IS PROVIDED UNDER THE PROGRAM, PREFERENCE SHALL BE GIVEN TO PRIVATE BUS OPERATORS WHO LAWFULLY HAVE PROVIDED RURAL HIGHWAY PASSENGER TRANSPORTATION OVER THE ROUTES OR WITHIN THE GENERAL AREA OF THE DEMONSTRATION PROJECT.

"(B) PRIOR TO THE OBLIGATION OF ANY FUNDS FOR A DEMONSTRATION PROJECT UNDER THIS SECTION, THE SECRETARY SHALL PROVIDE FOR PUBLIC NOTICE OF ANY APPLICATION FOR FUNDS UNDER THIS SECTION WHICH NOTICE SHALL INCLUDE THE NAME OF THE APPLICANT AND THE AREA TO BE SERVED. WITHIN SIXTY DAYS THEREAFTER, A PUBLIC HEARING ON THE PROJECT SHALL BE HELD WITHIN THE PROPOSED SERVICE AREA."

DEMONSTRATION PROJECT--RAILROAD-HIGHWAY CROSSING

SEC. 104. SECTION 163 OF THE FEDERAL-AID HIGHWAY ACT OF 1973 IS AMENDED BY RELETTERING SUBSECTION (A) AS PARAGRAPH (A) (1) AND ADDING THE FOLLOWING NEW PARAGRAPH: //23 USC 130 NOTE.//

"(2) THE SECRETARY OF TRANSPORTATION SHALL ENTER INTO SUCH ARRANGEMENTS AS MAY BE NECESSARY TO CARRY OUT AN ENGINEERING AND FEASIBILITY STUDY FOR A DEMONSTRATION PROJECT IN LAFAYETTE, INDIANA, FOR RELOCATION OF RAILROAD LINES FROM THE CENTRAL AREA OF THE CITY. THERE ARE AUTHORIZED TO BE APPROPRIATED TO CARRY OUT THIS PARAGRAPH $360,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1975."

TRANSPORTATION FOR ELDERLY AND HANDICAPPED PERSONS

SEC. 105. (A) IT IS HEREBY DECLARED TO BE THE NATIONAL POLICY THAT ELDERLY AND HANDICAPPED PERSONS HAVE THE SAME RIGHT AS OTHER PERSONS TO UTILIZE MASS TRANSPORTATION FACILITIES AND SERVICES; THAT SPECIAL EFFORTS SHALL BE MADE IN THE PLANNING, DESIGN, CONSTRUCTION, AND OPERATION OF MASS TRANSPORTATION FACILITIES AND SERVICES SO THAT THE AVAILABILITY TO ELDERLY AND HANDICAPPED PERSONS OF MASS TRANSPORTATION WHICH THEY CAN EFFECTIVELY UTILIZE WILL BE ASSURED; AND THAT ALL FEDERAL PROGRAMS OFFERING ASSISTANCE FOR MASS TRANSPORTATION (INCLUDING THE PROGRAMS UNDER TITLE 23, UNITED STATES CODE, THE FEDERAL-AID HIGHWAY ACT OF 1973, AND THIS ACT) EFFECTIVELY IMPLEMENT THIS POLICY. //23 USC 101 NOTE.//

(B) SUBSECTION (B) OF SECTION 165 OF THE FEDERAL-AID HIGHWAY ACT OF 1973 (87 STAT. 282) IS AMENDED TO READ AS FOLLOWS: //23 USC 142 NOTE.//

"(B) THE SECRETARY OF TRANSPORTATION SHALL REQUIRE THAT PROJECTS RECEIVING FEDERAL FINANCIAL ASSISTANCE UNDER (1) SUBSECTION (A) OR (C) OF SECTION 142 OF TITLE 23, UNITED STATES CODE, (2) PARAGRAPH (4) OF SUBSECTION (E) OF SECTION 103, TITLE 23, UNITED STATES CODE, OR (3) SECTION 147 OF THE FEDERAL-AID HIGHWAY ACT OF 1973 SHALL BE PLANNED. DESIGNED, CONSTRUCTED, AND OPERATED TO ALLOW EFFECTIVE UTILIZATION BY ELDERLY OR HANDICAPPED PERSONS WHO, BY REASON OF ILLNESS, INJURY, AGE, CONGENITAL MALFUNCTION, OR OTHER PERMANENT OR TEMPORARY INCAPACITY OR DISABILITY, INCLUDING THOSE WHO ARE NONAMBULATORY WHEELCHAIRBOUND AND THOSE WITH SEMIAMBULATYORY CAPABILITIES, ARE UNABLE WITHOUT SPECIAL FACILITIES OR SPECIAL PANNING OR DESIGN TO UTILIZE SUCH FACILITIES AND SERVICES EFFECTIVELY. //23 USC 142 NOTE.// THE SECRETARY SHALL NOT APPROVE ANY PROGRAM OR PROJECT TO WHICH THIS SECTION APPLIES WHICH DOES NOT COMPLY WITH THE PROVISIONS OF THIS SUBSECTION REQUIRING ACCESS TO PUBLIC MASS TRANSPORTATION FACILITIES, EQUIPMENT, AND SERVICES FOR ELDERLY OR HANDICAPPED PERSONS."

VEHICLE SIZES AND WEIGHTS

SEC. 106. (A) SECTION 127 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY STRIKING OUT "EIGHTEEN THOUSAND POUNDS CARRIED ON ANY ONE AXLE, OR WITH A TANDEM-AXLE WEIGHT IN EXCESS OF THIRTY-TWO THOUSAND POUNDS, OR WITH AN OVERALL GROSS WEIGHT IN EXCESS OF SEVENTY-THREE THOUSAND TWO HUNDRED AND EIGHTY POUNDS," AND INSERTING IN LIEU THEREOF THE FOLLOWING: "TWENTY THOUSAND POUNDS CARRIED ON ANY ONE AXLE, INCLUDING ALL ENFORCEMENT TOLERANCES; OR WITH A TANDEM AXLE WEIGHT IN EXCESS OF THIRTY-FOUR THOUSAND POUNDS, INCLUDING ALL ENFORCEMENT TOLERANCES; OR WITH AN OVERALL GROSS WEIGHT ON A GROUP OF TWO OR MORE CONSECUTIVE AXLES PRODUCED BY APPLICATION OF THE FOLLOWING FORMULA: (FORMULA OMITTED PAGE 3, 88 STAT 2283) WHERE W=OVERALL GROSS WEIGHT ON ANY GROUP OF TOW OR MORE CONSECUTIVE AXLES TO THE NEAREST 500 POUNDS, L=DISTANCE IN FEET BETWEEN THE EXTREME OF ANY GROUP OF TWO OR MORE CONSECUTIVE AXLES, AND (=NUMBER OF AXLES IN GROUP UNDER CONSIDERATION, EXCEPT THAT TWO CONSECUTIVE SETS OF TANDEM AXLES MAY CARRY A GROSS LOAD OF 34,000 POUNDS EACH PROVIDING THE OVERALL DISTANCE BETWEEN THE FIRST AND LAST AXLES OF SUCH CONSECUTIVE SETS OF TANDEM AXLES IS THIRTY-SIX FEET OR MORE: PROVIDED, THAT SUCH OVERALL GROSS WEIGHT MAY NOT EXCEED EIGHTY THOUSAND POUNDS, INCLUDING ALL ENFORCEMENT TOLERANCES,".

(B) THE FIRST SENTENCE OF SECTION 127 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY INSERTING IMMEDIATELY AFTER "JULY 1, 1956," THE FOLLOWING: "EXCEPT IN THE CASE OF THE OVERALL GROSS WEIGHT OF ANY GROUP OF TWO OR MORE CONSECUTIVE AXLES, ON THE DATE OF ENACTMENT OF THE FEDERAL-AID HIGHWAY AMENDMENTS OF 1974,". THE THIRD SENTENCE OF SUCH SECTION IS AMENDED BY STRIKING OUT THE PERIOD AT THE END THEREOF AND INSERTING IN LIEU THEREOF A COMMA AND THE FOLLOWING: "EXCEPT IN THE CASE OF THE OVERALL GROSS WEIGHT OF ANY GROUP OF TWO OR MORE CONSECUTIVE AXLES, ON THE DATE OF ENACTMENT OF THE FEDERAL-AID HIGHWAY AMENDMENTS OF 1974.".

ENFORCEMENT

SEC. 107. (A) CHAPTER 1 OF TITLE 23 OF THE UNITED STATES CODE IS AMENDED BY INSERTING AFTER SECTION 140 THE FOLLOWING NEW SECTION: //23 USC 101.//

141. ENFORCEMENT OF REQUIREMENTS

"EACH STATE SHALL CERTIFY TO THE SECRETARY BEFORE JANUARY 1 OF EACH YEAR THAT IT IS ENFORCING ALL STATE LAWS RESPECTING MAXIMUM VEHICLE SIZE AND WEIGHTS PERMITTED ON THE FEDERAL-AID PRIMARY, THE FEDERAL-AID URBAN SYSTEM AND THE FEDERAL-AID SECONDARY SYSTEM, INCLUDING THE INTERSTATE SYSTEM IN ACCORDANCE WITH SECTION 127 OF THIS TITLE, AND ALL SPEED LIMITS ON PUBLIC HIGHWAYS IN ACCORDANCE WITH SECTION 154 OF THIS TITLE. //23 USC 127.// THE SECRETARY SHALL NOT APPROVE ANY PROJECT UNDER SECTION 106 OF THIS TITLE IN ANY STATE WHICH HAS FAILED TO CERTIFY IN ACCORDANCE WITH THIS SECTION.". //23 USC 154, 23 USC 106.//

(B) THE ANALYSIS OF CHAPTER 1 OF TITLE 23 OF THE UNITED STATES CODE IS AMENDED BY STRIKING OUT "141. REAL PROPERTY ACQUISITION POLICIES." AND INSERTING IN LIEU THEREOF THE FOLLOWING: "141. ENFORCEMENT OF REQUIREMENTS.".

ALASKA FERRY OPERATIONS

SEC. 108. PARAGRAPH (5) OF SUBSECTION (G) OF SECTION 129 OF TITLE 23, UNITED STATES CODE, IS AMENDED TO READ AS FOLLOWS:

"(5) SUCH FERRY MAY BE OPERATED ONLY WITHIN THE STATE (INCLUDING THE ISLANDS WHICH COMPRISE THE STATE OFR HAWAII) OR BETWEEN ADJOINING STATES. EXCEPT WITH RESPECT TO OPERATIONS BETWEEN THE ISLANDS WHICH COMPRISE THE STATE OF HAWAII AND OPERATIONS BETWEEN ANY TWO POINTS IN ALASKA AND BETWEEN ALASKA AND WASHINGTON, INCLUDING STOPS AT APPROPRIATE POINTS IN THE DOMINION OF CANADA, NO PART OF SUCH FERRY OPERATION SHALL BE IN ANY FOREIGN OR INTERNATIONAL WATERS.".

CONTROL OF OUTDOOR ADVERTISING

SEC. 109. (A) THE FIRST SENTENCE OF SUBSECTION (B) OF SECTION 131 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY INSERTING AFTER "MAIN TRAVELED WAY OF THE SYSTEM," THE FOLLOWING: "AND FEDERAL-AID HIGHWAY FUNDS APPORTIONED ON OR AFTER JANUARY 1, 1975, OR AFTER THE EXPIRATION OF THE NEXT REGULAR SESSION OF THE STATE LEGISLATURE, WHICH-EVER IS LATER, TO ANY STATE WHICH THE SECRETARY DETERMINES HAS NOT MADE PROVISION FOR EFFECTIVE CONTROL OF THE ERECTION AND MAINTENANCE ALONG THE INTERSTATE SYSTEM AND THE PRIMARY SYSTEM OF THOSE ADDITIONAL OUTDOOR ADVERTISING SIGNS, DISPLAYS, AND DEVICES WHICH ARE MORE THAN SIX HUNDRED AND SIXTY FEET OFF THE NEAREST EDGE OF THE RIGHT-OF-WAY, LOCATED OUTSIDE OF URBAN AREAS, VISIBLE FROM THE MAIN TRAVELED WAY OF THE SYSTEM, AND ERECTED WITH THE PURPOSE OF THEIR MESSAGE BEING READ FROM SUCH MAIN TRAVELED WAY,".

(B) SUBSECTION (C) OF SECTION 131 OF TITLE 23, UNITED STATES CODE, IS AMENDED TO READ AS FOLLOWS:

"(C) EFFECTIVE CONTROL MEANS THAT SUCH SIGNS, DISPLAYS, OR DEVICES AFTER JANUARY 1, 1968, IF LOCATED WITHIN SIX HUNDRED AND SIXTY FEET OF THE RIGHT-OF-WAY AND, ON OR AFTER JULY 1, 1975, OR AFTER THE EXPIRATION OF THE NEXT REGULAR SESSION OF THE STATE LEGISLATURE, WHICHEVER IS LATER, IF LOCATED BEYOND SIX HUNDRED AND SIXTY FEET OF THE RIGHT-OF-WAY, LOCATED OUTSIDE OF URBAN AREAS, VISIBLE FROM THE MAIN TRAVELED WAY OF THE SYSTEM, AND ERECTED WITH THE PURPOSE OF THEIR MESSAGE BEING READ FROM SUCH MAIN TRAVELED WAY, SHALL, PURSUANT TO THIS SECTION, BE LIMITED TO (1) DIRECTIONAL AND OFFICIAL SIGNS AND NOTICES, WHICH SIGNS AND NOTICES SHALL INCLUDE, BUT NOT BE LIMITED TO, SIGNS AND NOTICES PERTAINING TO NATURAL WONDERS, SCENIC AND HISTORICAL ATTRACTIONS, WHICH ARE REQUIRED OR AUTHORIZED BY LAW, WHICH SHALL CONFORM TO NATIONAL STANDARDS HEREBY AUTHORIZED TO BE PROMULGATED BY THE SECRETARY HERE-UNDER, WHICH STANDARDS SHALL CONTAIN PROVISIONS CONCERNING LIGHTING, SIZE, NUMBER, AND SPACING OF SIGNS, AND SUCH OTHER REQUIREMENTS AS MAY BE APPROPRIATE TO IMPLEMENT THIS SECTION, (2) SIGNS, DISPLAYS, AND DEVICES ADVERTISING THE SALE OR LEASE OF PROPERTY UPON WHICH THEY ARE LOCATED (3) SIGNS, DISPLAYS, AND DEVICES ADVERTISING ACTIVITIES CONDUCTED ON THE PROPERTY ON WHICH THEY ARE LOCATED, AND (4) SIGNS LAWFULLY IN EXISTENCE ON OCTOBER 22, 1965, DETERMINED BY THE STATE, SUBJECT TO THE APPROVAL OF THE SECRETARY, TO BE LANDMARK SIGNS, INCLUDING SIGNS ON FARM STRUCTURES OR NATURAL SURFACES, OF HISTORIC OR ARTISTIC SIGNIFICANCE THE PRESERVATION OF WHICH WOULD BE CONSISTENT WITH THE PURPOSED OF THIS SECTION."

(C) SUBSECTION (G) OF SECTION 131 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY STRIKING OUT THE FIRST SENTENCE AND INSERTING THE FOLLOWING IN LIEU THERE OF:

"JUST COMPENSATION SHALL BE PAID UPON THE REMOVAL OF ANY OUTDOOR ADVERTISING SIGN, DISPLAY, OR DEVICE LAWFULLY ERECTED UNDER STATE LAW."

CONTROL OF JUNKYARDS

SEC. 110. SUBSECTION (J) OF SECTION 136 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY STRIKING OUT THE FIRST SENTENCE AND INSERTING IN LIEU THEREOF THE FOLLOWING:

"(J) JUST COMPENSATION SHALL BE PAID THE OWNER FOR THE RELOCATION, REMOVAL, OR DISPOSAL OF JUNKYARDS LAWFULLY ESTABLISHED UNDER STATE LAW.".

ADVANCE CONSTRUCTION

SEC. 111. (A) SUBSECTION (A) OF SECTION 115 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY STRIKING OUT "INCLUDING THE INTERSTATE SYSTEM," EACH OF THE TWO PLACES IT APPEARS AND INSERTING IN LIEU THEREOF AT EACH SUCH PLACE THE FOLLOWING: "OTHER THAN THE INTERSTATE SYSTEM,".

(B) SECTION 115 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY REDESIGNATING SUBSECTION (B) AS SUBSECTION (C) AND BY ADDING IMMEDIATELY AFTER SUBSECTION (A) THE FOLLOWING NEW SUBSECTION:

"(B) WHEN A STATE PROCEEDS TO CONSTRUCT ANY PROJECT ON THE INTERSTATE SYSTEM WITHOUT THE AID OF FEDERAL FUNDS, AS THAT SYSTEM MAY BE DESIGNATED AT THAT TIME, IN ACCORDANCE WITH ALL PROCEDURES AND ALL REQUIREMENTS APPLICABLE TO PROJECTS ON SUCH SYSTEM, EXCEPT INSOFAR AS SUCH PROCEDURES AND REQUIREMENTS LIMIT A STATE TO THE CONSTRUCTION OF PROJECTS WITH THE AID OF FEDERAL FUNDS PREVIOUSLY APPORTIONED TO IT, THE SECRETARY, UPON APPLICATION BY SUCH STATE AND HIS APPROVAL OF SUCH APPLICATION, IS AUTHORIZED TO PAY TO SUCH STATE THE FEDERAL SHARE OF THE COST OF CONSTRUCTION OF SUCH PROJECT WHEN ADDITIONAL FUNDS ARE APPORTIONED TO SUCH STATE UNDER SECTION 104 OF THIS TITLE IF-- //23 USC 104.//

"(1) PRIOR TO THE CONSTRUCTION OF THE PROJECT THE SECRETARY APPROVES THE PLANS AND SPECIFICATIONS THEREFOR IN THE SAME MANNER AS OTHER PROJECTS ON THE INTERSTATE SYSTEM, AND

"(2) THE PROJECT CONFORMS TO THE APPLICABLE STANDARDS UNDER SECTION 109 OF THIS TITLE.". //23 USC 109.//

DONATIONS

SEC. 112. SECTION 323 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY STRIKING OUT "AFTER HE HAS BEEN TENDERED THE FULL AMOUNT OF THE ESTIMATED JUST COMPENSATION AS ESTABLISHED BY AN APPROVED APPRAISAL OF THE FAIR MARKET VALUE OF THE SUBJECT REAL PROPERTY," AND BY INSERTING IN LIEU THEREOF THE FOLLOWING: "AFTER HE HAS BEEN FULLY INFORMED OF HIS RIGHT TO RECEIVE JUST COMPENSATION FOR THE ACQUISITION OF HIS PROPERTY,".

SPECIAL BRIDGE REPLACEMENT PROGRAM

SEC. 113. SUBSECTION (E) OF SECTION 144 OF TITLE 23, UNITED STATES CODE, IS AMENDED TO READ AS FOLLOWS:

"(E) FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS SECTION, THERE ARE HEREBY AUTHORIZED TO BE APPROPRIATED OUT OF THE HIGHWAY TRUST FUND $100,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1972, $150,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1973, $25,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1974, $75,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1975, AND $125,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1976, TO BE AVAILABLE UNTIL EXPENDED. SUCH FUNDS SHALL BE AVAILABLE FOR OBLIGATION AT THE BEGINNING OF THE FISCAL YEAR FOR WHICH AUTHOUIZED IN THE SAME MANNER AND TO THE SAME EXTENT AS IF SUCH FUNDS WERE APPORTIONED UNDER THIS CHAPTER.".

UNIFORM NATIONAL SPEED LIMIT

SEC. 114. (A) CHAPTER 1 OF TITLE 2O OF THE UNITED STATES CODE, RELATING TO HIGHWAYS, IS AMENDED BY INSERTING AT THE END THEREOF A NEW SECTION AS FOLLOWS: //23 USC 101.//

154. NATIONAL MAXIMUM SPEED LIMIT //23 USC 154.//

"(A) THE SECRETARY OF TRANSPORTATION SHALL NOT APPROVE ANY PROJECT UNDER SECTION 106 IN ANY STATE WHICH HAS (1) A MAXUMUM SPEED LIMIT ON ANY PUBLIC HIGHWAY WITHIN ITS JURISDICTION IN EXCESS OF FIFTY-FIVE MILES PER HOUR, OR (2) A SPEED LIMIT ON ANY OTHER PORTION OF A PUBLIC HIGHWAY WITHIN ITS JURISDICTION WHICH IS NOT UNIFORMLY APPLICABLE TO ALL TYPES OF MOTOR VEHICLES USING SUCH PORTION OF HIGHWAY, IF ON NOVEMBER 1, 1973, SUCH PORTION OF HIGHWAY HAD A SPEED LIMIT WHICH WAS UNIFORMLY APPLICABLE TO ALL TYPES OF MOTOR VEHICLES USING IT. //23 USC 106.// A LOWER SPEED LIMIT MAY BE ESTABLISHED FOR ANY VEHICLE OPERATING UNDER A SPECIAL PERMIT BECAUSE OF ANY WEIGHT OR DIMENSION OF SUCH VEHICLE, INCLUDING ANY LOAD THEREON. CLAUSE (2) OF THIS SUBSECTION SHALL NOT APPLY TO ANY PORTION OF A HIGHWAY DURING SUCH TIME THAT THE CONDITION OF THE HIGHWAY, WEATHER , AN ACCIDENT, OR OTHER CONDITION CREATES A TEMPORARY HAZARD TO THE SAFETY OF TRAFFIC ON SUCH PORTION OF A HIGHWAY.

"(B) AS USED IN THIS SECTION THE TERM 'MOTOR VEHICLE' MEANS ANY VEHICLE DRIVEN OR DRAWN BY MECHANICAL POWER MANUFACTURED PRIMARILY FOR USE ON PUBLIC HIGHWAYS, EXCEPT ANY VEHICLE OPERATED EXCLUSIVELY ON A RAIL OR RAILS.

"(C) NOTWITHSTANDING THE PROVISION OF SECTION 120 SUMS APPORTIONED TO ANY STATE UNDER SECTION 104 SHALL BE AVAILABLE TO PAY THE ENTIRE COST OF ANY MODIFICATION OF THE SIGNING OF THE FEDERAL-AID HIGHWAYS FOR WHICH SUCH SUMS ARE APPORTIONED WITHIN SUCH STATE DUE TO A REDUCTION IN SPEED LIMITS TO CONSERVE FUEL IF SUCH CHANGE IN SIGNING OCCURS OR HAS OCCURRED AFTER NOVEMBER 1, 1973. //23 USC 120, 23 USC 104.//

"(D) THE REQUIREMENTS OF THIS SECTION SHALL BE DEEMED COMPLIED WITH BY ADMINISTRATIVE ACTION LAWFULLY TAKEN BY THE GOVERNOR OR OTHER APPROPRIATE STATE OFFICIAL THAT COMPLIES WITH THIS SECTION."

(B) THE ANALYSIS OF SUCH CHAPTER 1 IS AMENDED BY INSERTING AT THE END THEREOF THE FOLLOWING: "154. NOATIONAL MAXIMUM SPEED LIMIT.".

(C) SECTION 2 OF THE EMERGENCY HIGHWAY ENERGY CONSERVATION ACT IS REPEALED. //293 USC 101 NOTE.//

ACCESS HIGHWAYS TO PUBLIC RECREATION AREAS ON CERTAIN LAKES

SEC. 115. (A) CHAPTER 1 OF TITLE 23, UNITED STATES CODE, IS FURTHER AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SECTION: //23 USC 101.//

155. ACCESS HIGHWAYS TO PUBLIC RECREATION AREAS ON

CERTAIN

LAKES //23 USC 101.//

"(A) THE SECRETARY IS AUTHOURIZED TO CONSTRUCT OR RECONSTRUCT ACCESS HIGHWAYS TO PUBLIC RECREATION AREAS ON LAKES IN ORDER TO ACCOMMODATE PRESENT AND PROJECTED TRAFFIC DENSITY. THE SECRETARY SHALL DEVELOP GUIDELINES AND STANDARDS FOR THE DESIGNATION OF ROUTES AND THE ALLOCATION OF FUNDS FOR THE PURPOSE OF THIS SECTION WHICH SHALL INCLUDE THE FOLLOWING CRITERIA:

"(1) NO PORTION OF ANY ACCESS HIGHWAY CONSTRUCTED OR RECONSTRUCTED UNDER THIS SECTION SHALL EXCEED THIRTY-FIVE MILES IN LENGTH NOR SHALL ANY PORTION OF SUCH HIGHWAY BE LOCATED MORE THAN THIRTY-FIVE MILES FORM THE NEAREST PART OF SUCH RECREATION AREA.

"(2) ROUTES SHALL BE DESIGNATED BY THE SECRETARY ON THE RECOMMENDATION OF THE STATE AND RESPONSIBLE LOCAL OFFICIALS, AFTER CONSULTATION WITH THE HEAD OF THE FEDERAL AGENCY (IF ANY) HAVING JURISDICTION OVER THE PUBLIC RECREATION AREA INVOLVED.

"(B) THE FEDERAL SHARE PAYABLE ON ACCOUNT OF ANY PROJECT AUTHORIZED PURSUANT TO THIS SECTION SHALL NOT EXCEED 70 PER CENTUM OF THE COST OF CONSTRUCTION OR RECONSTRUCTION OF SUCH PROJECT.

"(C) ALL OF THE PROVISIONS OF THIS TITLE APPLICABLE TO HIGHWAYS ON THE FEDERAL-AID SYSTEM (OTHER THAN THE INTERSTATE SYSTEM) DETERMINED APPROPRIATE BY THE SECRETARY, EXCEPT THOSE PROVISIONS WHICH THE SECRETARY DETERMINES ARE INCONSISTENT WITH THIS SECTION, SHALL APPLY TO ANY HIGHWAY DESIGNATED UNDER THIS SECTION WHICH IS NOT A PART OF THE FEDERAL-AID SYSTEM WHEN SO DESIGNATED.

"(D) FOR THE PURPOSE OF THIS SECTION THE TERM 'LAKE' MEANS ANY LAKE, RESERVOIR, POOL, OR OTHER BODY OF WATER RESULTING FROM THE CONSTRUCTION OF ANY LOCK, DAM, OR SIMILAR STRUCTURE BY THE CORPS OF ENGINEERS, DEPARTMENT OF THE ARMY, OR THE BUREAU OF RECLAMATION, DEPARTMENT OF THE INTERIOR, OR THE TENNESSEE VALLEY AUTHORITY, AND ANY MULTIPURPOSE LAKE RESULTING FROM CONSTRUCTION ASSISTANCE OF THE SOIL CONSERVATION SERVICE, DEPARTMENT OF AGRICULTURE. THIS SECTION SHALL APPLY TO LAKES HERETOFORE OR HEREAFTER CONSTRUCTED OR AUTHORIZED FOR CONSTRUCTION.

"(E) THERE IS SUTHORIZED TO BE APPROPRIATED NOT TO EXCEED $25,000,000 FOR THE FISCAL YEAR 1976 TO CARRY OUT THIS SECTION. AMOUNTS AUTHOURIZED BY THIS SUBSECTION FOR A FISCAL YEAR SHALL BE AVAILABLE FOR THAT FISCAL YEAR AND FOR THE TWO SUCCEEDING FISCAL YEARS.".

(B) THE ANALYSIS OF CHAPTER 1 OF TITLE 23 OF THE UNITED STATES CODE IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING: "155. ACCESS HIGHWAYS TO PUBLIC RECREATION AREAS ON CERTAIN LAKES.".

AUBURN BRIDGE

SEC. 116. (A) IN ORDER TO PROVIDE ACCESS BETWEEN THE HISTROICAL PORTION OF THE CITY OF AUBURN, CALIFORNIA, AUBURN DICTRICT FAIR-GROUNDS, CITY PARK AND PARKING LOTS, AND THE AUBURN DAM OVERLOOK AREA, FOR MOTOR VEHICLES AND FOR PASSAGE OF PEDESTRIANS, EQUESTRIANS, AND CYCLISTS UNDER A HIGHWAY RELOCATION, THE SECRETARY OF THE INTERIOR IS AUTHORIZED TO CONSTRUCT, IN LIEU OF A DRAINAGE CULVERT, AN INTERMEDIATE SIZE BRIDGE ACROSS A SHALLOW RAVINE. THE BRIDGE, AT APPROXIMATE STATIONS 154 + 46 TO 155 + 30 (84 FEET), SHALL BE PART OF THE STATE HIGHWAY NUMBER 49 RELOCATION THROUGHT THE CITY OF AUBURN, CALIFORNIA.

(B) UPON COMPLETION SUCH BRIDGE SHALL BE TRANSFERRED TO THE STATE OF CALIFORNIA FOR OPERATION AND MAINTENANCE AS A PART OF THE HIGHWAY RELOCATION. THE COST OF THE BRIDGE, LESS THE ORIGINAL PLANNED DRAINAGE CULVERT, SHALL BE CONSIDERED AS NONREIMBURSABLE.

(C) THERE IS AUTHORIZED TO BE APPROPRIATED TO CARRY OUT THIS SECTION THE SUM OF $250,000 (OCTOBER 1974 PRICE LEVELS) PLUS OR MINUS SUCH AMOUNTS AS MAY BE JUSTIFIED BY CHANGES IN PRICE INDEXES APPLICABLE TO THE TYPE OF DEVELOPMENT INVOLVED HEREIN.

NORTHEAST CORRIDOR DEMONSTRATION-RAIL CROSSINGS

SEC. 117. SUBSECTION (A) OF SECTION 322 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY INSERTING AT THE END THEREOF THE FOLLOWING:

"THE SECRETARY MAY PERMIT SELECTED INDIVIDUAL PUBLIC CROSSINGS OF UNUSUALLY LOW-POTENTIAL HAZARD TO REMAIN AT GROUND LEVEL, IF THEY ARE PROVIDED WITH THE BEST AVAILABLE PROTECTION."

OVERSEAS HIGHWAY

SEC. 118. (A) THE SECRETARY IS AUTHORIZED TO UNDERTAKE PROJECTS FOR THE RECONSTRUCTION OR REPLACEMENT OF BRIDGE STRUCTURES OF A TWO-LANE NATURE ON THE OVERSEAS HIGHWAY, TO KEY WEST, FLORIDA. THE FEDERAL SHARE PAYABLE ON ACCOUNT OF SUCH PROJECTS SHALL NOT EXCEED 70 PER CENTUM OF THE COSTS OF SUCH RECONSTRUCTION OR REPLACEMENT.

(B) THERE ARE AUTHORIZED TO BE APPROPRIATED, OUT OF THE HIGHWAY TRUST FUND, NOT TO EXCEED $109,200,000, TO CARRY OUT SUCH PROJECTS. SUCH SUMS SHALL BE AVAILABLE UNTIL EXPENDED EXCEPT THAT OF THE FUNDS AUTHORIZED UNDER THIS SECTION ONLY $10,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1975, AND $15,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1976, CAN BE OBLIGATED.

BIKEWAY DEMONSTRATION PROGRAM

SEC. 119. (A) FOR THE PURPOSE OF THIS SECTION THE TERM-- // 23 USC 217 NOTE. //

(1) "BIKEWAY" MEANS A BICYCLE LANE OR PATH, OR SUPPORT FACILITY, A BICYCLE TRAFFIC CONTROL DEVICE, A SHELTER, OR A PARKING FACILITY TO SERVE BICYCLES AND PERSONS USING BICYCLES;

(2) "STATE" MEANS ANY ONE OF THE FIFTY STATES, THE DISTRICT OF COLUMBIA, OR PUERTO RICO.

(B) (1) THE SECRETARY IS AUTHORIZED TO MAKE GRANTS TO STATES FOR DEMONSTRATION PROJECTS FOR THE CONSTRUCTION OF BIKE WAYS. SUCH BIKE-WAYS SHALL BE FOR COMMUTING AND FOR RECREATIONAL PURPOSES AND SHALL BE LOCATED IN URBANIZED AREAS AND SUCH OTHER URBAN AREAS AS ARE DESIGNATED BY THE STATE HIGHWAY DEPARTMENT UNDER SUBSECTION 103 (D) OF TITLE 23, UNITED STATES CODE.

(2) THE FEDERAL SHARE OF ANY DEMONSTRATION PROJECT FOR THE CONSTRUCTION OF A BIKEWAY SHALL BE 80 PER CENTUM OF THE TOTAL COST OF SUCH PROJECT. THE REMAINING 20 PER CENTUM OF SUCH COST SHALL BE PAID BY THE GRANTEE.

(3) NO GRANT SHALL BE MADE UNDER AUTHORITY OF THIS ACT UNLESS SUCH BIKEWAY PROJECT IS IN ACCORDANCE WITH CONTINUING COMPREHENSIVE TRANSPORTATION PLANNING PROCESS CARRIED ON COOPERATIVELY BY STATES AND LOCAL COMMUNITIES IN ACCORDANCE WITH SECTION 134 OF TITLE 23, UNITED STATES CODE.

(4) THE SECRETARY SHALL ESTABLISH, BY REGULATION, CONSTRUCTION STANDARDS FOR BIKEWAY PROJECTS FOR WHICH GRANTS ARE AUTHORIZED BY THIS ACT, AND SHALL ESTABLISH, BY REGULATION, SUCH OTHER REQUIREMENTS AS MAY BE NECESSARY TO CARRY OUT THIS ACT.

(C) GRANTS MADE UNDER THIS ACT SHALL BE IN ADDITION TO, AND NOT IN LIEU OF, ANY SUMS AVAILABLE FOR BICYCLE PROJECTS UNDER SECTION 217 OF TITLE 23, UNITED STATES CODE.

(D) THERE ARE AUTHORIZED TO BE APPROPRIATED TO THE SECRETARY TO CARRY OUT THIS SECTION $10,000,000 FOR THE FISCAL YEAR 1976.

EXTENSION OF CARPOOLS

SEC. 120. (A) THE LAST SENTENCE OF SECTION 3(D) OF THE EMERGENCY HIGHWAY ENERGY CONSERVATION ACT (PUBLIC LAW 93 - 239) IS AMENDED BY STRIKING OUT "DECEMBER 31, 1974" AND INSERTING IN LIEU THEREOF "DECEMBER 31, 1975". //23 USC 101 NOTE.//

(B) THE SECRETARY OF TRANSPORTATION IS AUTHORIZED TO MAKE GRANTS FOR DEMONSTRATION PROJECTS DESIGNED TO ENCOURAGE THE USE OF CARPOOLS IN URBAN AREAS. SUCH A PROJECT MAY INCLUDE, BUT NOT BE LIMITED TO, SUCH MEASURES AS SYSTEMS FOR LOCATING POTENTIAL RIDERS AND INFORMING THEM OF CONVENIENT CARPOOL OPPORTUNITIES, DESIGNATING EXISTING HIGHWAY LANES AS PREFERENTIAL CARPOOL HIGHWAY LANES OR SHARED BUS AND CARPOOL LANES, PROVIDING RELATED TRAFFIC CONT*ROL DEVICES, AND DESIGNATING EXISTING PUBLICLY OWBNED FACILITIES FOR USE AS PREFERENTIAL PARKING FOR CARPOOLS. THERE IS AUTHORIZED TO BE APPROPRIATED NOT TO EXCEED $7,500,000 TO CARRY OUT THIS SUBSECTION. //23 USC 101 NOTE.//

SAFER ROADS PROGRAM

SEC. 121. THE FIRST SENTENCE OF SUBSECTION (C) OF SECTION 405 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY STRIKING THE WORD "AND" AFTER "CROSSINGS," AND INSERTING IN LIU THEREOF THE FOLLOWING: "THE E CORRECTION OF HIGH-HAZARD LOCATIONS, AND".

OFF-SYSTEM ROADS

SEC. 122. (A) CHAPTER 2 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SECTION:

219. OFF-SYSTEM ROADS //23 USC 219.//

"(A) THE SECRETARY IS AUTHORIZED TO MAKE GRANTS TO STATES FOR PROJECTS FOR THE CONSTRUCTION, RECONSTRUCTION, AND IMPROVEMENT OF ANY OFF-SYSTEM ROAD (INCLUDING, BUT NOT LIMITED TO, THE REPLACEMENT OF BRIDGES, THE ELIMINATION OF HIGH-HAZARD LOCATIONS, AND ROADSIDE OBSTACLES).

"(B) ON OR BEFORE JANUARY 1 NEXT PRECEDING THE COMMENCEMENT OF EACH FISCAL YEAR THE SECRETARY SHALL APPORTION THE SUMS AUTHORIZED TO BE APPROPRIATED TO CARRY OUT THIS SECTION AMONG THE SEVERAL STATES AS FOLLOWS:

"(1) ONE-THIRD IN THE RATIO WHICH THE AREA OF EACH STATE BEARS TO THE TOTAL AREA OF ALL STATES; "(2) ONE-THIRD IN THE RATIO WHICH TGHE POPULATION OF RURAL AREAS OF EACH STATE BEARS TO THE TOTAL POPULATION OF RURAL AREAS OF ALL THE STATES; AND

"(3) ONE-THIRD IN THE RATIO IN WHICH THE OFF-SYSTEM ROAD MILEAGE OF EACH STATE BEARS TO THE TOTAL OFF-SYSTEM ROAD MILEAGE OF ALL THE STATES. OFF-SYSTEM ROAD MILEAGE AS USED IN THIS SUBSECTION SHALL BE DETERMINED AS OF THE END OF THE CALENDAR YEAR PRECEDING THE YEAR IN WHICH THE FUNDS ARE APPORTIONED AND SHALL BE CERTIFIED TO BY THE GOVERNOR OF THE STATE AND SUBJECT TO APPROVAL BY THE SECRETARY.

"(C) SUMS APPROPRIATED TO A STATE UNDER THIS SECTION SHALL BE MADE AVAILABLE FOR EXPENDITURES IN THE COUNTIES OF SUCH STATE ON A FAIR AND EQUITABLE BASIS.

"(D) SUMS APPORTIONED UNDER THIS SECTION AND PROGRAMS AND PROJECTS UNDER THIS SECTION SHALL BE SUBJECT TO ALL OF THE PROVISIONS OF CHAPTER 1 OF THIS TITLE APPLICABLE TO HIGHWAYS ON THE FEDERAL-AID SECONDARY SYSTEM EXCEPT THE FORMULA FOR APPORTIONMENT, THE REQUIREMENT THAT THESE ROADS BE ON THE FEDERAL-AID SYSTEM, AND THOSE OTHER PROVISIONS DETERMINED BY THE SECRETARY TO BE INCONSISTENT WITH THIS SECTION. THE SECREATARY IS NOT AUTHORIZED TO DETERMINE AS INCONSISTENT WITH THIS SECTION ANY PROVISION RELATING TO THE OBLIGATION AND AVAILABILITY OF FUNDS. //23 USC 101.//

"(E) AS USED IN THIS SECTION THE TERM 'OF-SYSTEM ROAD' MEANS ANY TOLL-FREE ROAD (INCLUDING BRIDGES) IN A RURAL AREA, WHICH ROAD IS NOT ON ANY FEDERAL-AID SYSTEM AND WHICH IS UNDER THE JURISDECTION OF AND MAINTAINED BY A PUBLIC AUTHORITY AND OPEN TO PUBLIC TRAVEL.".

(B) THE ANALYSIS OF CHAPTER 2, TITLE 23, UNITED STATES CODE, IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING: // 23 USC 201. // "219. OFF-SYSTEM ROADS.".

BRIDGES ON FEDERAL DAMS

SEC. 123. (A) SECTION 320(D) OF TITLE 23 OF THE UNITED STATES CODE (AS AMENDED) IS AMENDED BY STRIKING OUT "$25,261,000" AND INSERTING IN LIEU THEREOF "$27,761,000".

(B) ALL SUMS APPROPRIATED UNDER AUTHORITY OF THE INCREASED AUTHORIZATION ESTABLISHED BY THE AMENDMENT MADE BY SUBSECTION (A) OF THIS SECTION SHALL BE AVAILABLE FOR EXPENDITURE IN THE SAME MANNER AND FOR THE SAME PURPOSE AS PROVIDED FOR IN SUBSECTION (B) OF SECTION 116 OF THE FEDERAL-AID HIGHWAY ACT OF 1970 (PUBLIC LAW 91 - 605). //23 USC 320 NOTE.//

DEMONSTRATION PROJECTS

SEC. 124. THE SECRETARY OF TRANSPORTATION SHALL CARRY OUT A DEMONSTRATION PROJECT FOR CONSTRUCTION OF A HIGH-DENSITY URBAN HIGHWAY INTERMODAL TRANSPORTATION CONNECTION BETWEEN FRANKLIN AVENUE AND FIFTY-NINTH STREET, SOUTH, IN MINNEAPOLIS, MINNESOTA. THE FEDERAL SHARE OF SUCH PROJECT SHALL BE 90 PER CENTUM OF THE COST THEREOF. SUCH HIGHWAY SHALL BE PLACED ON A FEDERAL-AID SYSTEM BEFORE ANY FUNDS ARE EXPENDED UNDER THIS SECTION. THERE IS AUTHORIZED TO BE APPROPRIATED, OUT OF THE HIGHWAY TRUST FUND, NOT TO EXCEED $53,000,000 TO CARRY OUT THIS SECTION, EXCEPT THAT NOT TO EXCEED $10,000,000 FOR THE FISCAL YEAR 1975, AND $15,000,000 FOR THE FISCAL YEAR 1976, SHALL BE EXPENDED TO CARRY OUT THIS SECTION.

ROUTE WITHDRAWALS

SEC. 125. (A) SECTION 103(E) (2) OF TITLE 23 OF THE UNITED STATES CODE IS AMENDED BY STRIKING OUT THE PERIOD FOLLOWING "HOUSE REPORT NUMBERED 92 - 1443" AND INSERTING IN LIEU THEREOF A COMMA AND THE FOLLOWING: "INCREASED OR DECREASED, AS THE CASE MAY BE, AS DETERMINED BY THE SECRETARY, BASED ON CHANGES IN CONSTRUCTION COSTS OF SUCH ROUTE OR PORTION THEREOF AS OF THE DATE OF WITHDRAWAL OF APPROVAL UNDER THIS PARAGRAPH AND IN ACCORDANCE WITH THAT DESIGN OF SUCH ROUTE OR PORTION THEREOF WHICH IS THE BASIS OF SUCH 1972 COST ESTIMATE."

(B) SECTION 103(E) (4) OF TITLE 23 OF THE UNITED STATES CODE IS AMENDED BY STRIKING OUT THE PERIOD FOLLOWING "HOUSE REPORT NUMBERED 92 - 1443" AND INSERTING IN LIEU THEREOF A COMMA AND THE FOLLOWING: "INCREASED OR DECREASED, AS THE CASE MAY BE, AS DETERMINED BY THE SECRETARY, BASED ON CHANGES IN CONSTRUCTION COSTS OF SUCH ROUTE OR PORTION THEREOF AS OF THE DATE OF WITHDRAWAL OF APPROVAL UNDER THIS PARAGRAPH AND IN ACCORDANCE WITH THAT DESIGN OF SUCH ROUTE OR PORTION THEREOF WHICH IS THE BASIS OF SUCH 1972 COST ESTIMATE."

SCHOOL BUS DRIVER TRAINING

SEC. 126. (A) CHAPTER 4 OF TITLE 23, UNITED STATES CODE, IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SECTION: //23 USC 401.//

406. SCHOOL BUS DRIVER TRAINING //23 USC 406.//

"(A) THE SECRETARY IS AUTHORIZED TO MAKE GRANTS TO THE STATES FOR THE PURPOSE OF CARRYING OUT STATE PROGRAMS APPROVED BY HIM OF DRIVER EDUCATION AND TRAINING FOR PERSONS DRIVING SCHOOL BUSES.

"(B) A STATE PROGRAM UNDER THIS SECTION SHALL BE APPROVED BY THE SECRETARY IF SUCH PROGRAM--,

"(1) PROVIDES FOR THE ESTABLISHMENT AND ENFORCEMENT OF QUALIFICATIONS FOR PERSONS DRIVING SCHOOL BUSES;

"(2) PROVIDES FOR INITIAL EDUCATION AND TRAINING AND FOR REFRESHER COURSES;

"(3) PROVIDES FPOR PERIODIC REPORTS TO THE SECRETARY ON THE RESULTS OF SUCH PROGRAM; AND

"(4) INCLUDES PERSONS DRIVING PUBLICLY OPERATED, AND PERSONS DRIVING PRIVATELY OPERATED, SCHOOL BUSES.

"(B) NOT LESS THAN $7,500,000 OF THE SUMS AUTHORIZED TO CARRY OUT SECTION 402 OF THIS TITLE FOR FISCAL YEAR 1976 SHALL BE OBLIGATED TO CARRY OUT THIS SECTION. SUCH SUMS SHALL BE APPORTIONED AMOUNG THE STATES IN ACCORDANCE WITH THE FORMAULA ESTABLISHED UNDER SUBSECTION (C) OF SECTION 402 OF THIS TITLE. //23 UWD 402.// THE FEDERAL SHARE PAYABLE ON ACCOUNT OF ANY PROJECT TO CARRY OUT A PROGRAM UNDER THIS TITLE SHALL NOT EXCEED 70 PER CENTUM OF THE COST OF THE PROJECT."

(B) THE ANALYSIS OF CHAPTER 4, TITLE 23, UNITED STATES CODE, IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING: "406. SCHOOL BUS DRIVER TRAINING.".

LEGISLATIVE HISTORY:

HOUSE REPORTS: NO. 93 - 1567 (COMM. ON PUBLIC WORDS) AND NO. 93 - 1622 (COMM. OF CONFERENCE).

SENATE REPORT NO. 93 - 1111 (COMM. ON PUBLIC WORKS). CONGRESSIONAL RECORD, VOL. 120 (1974):

SEPT. 11, CONSIDERED AND PASSED HOUSE, AMENDED.

DEC. 16. CONSIDERED AND PASSED HOUSE, AMENDED.

DEC. 18, SENATE AND HOUSE AGREED TO CONFERENCE REPORT.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, VOL. 11, NO. 2:

JAN. 4, PRESIDENTIAL STATEMENT.

PUBLIC LAW 93-642, 88 STAT 2276, HARRY S. TRUMAN MEMORIAL SCHOLARSHIP ACT

93RD CONGRESS, S. 3548 JANUARY 4, 1975
AN ACT TO ESTABLISH THE HARRY S TRUMAN MEMORIAL SCHOLARSHIPS, AND FOR OTHER PURPOSES.

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE CITED AS THE "HARRY S TRUMAN MEMORAIAL SCHOLARSHIP ACT". //20 USC 2001 NOTE.//

STATEMENT OF FINDINGS

SEC. 2. //20 USC 2001.// THE CONGRESS FINDS THAT--,

BECAUSE A HIGH REGARD FOR THE PUBLIC TRUST AND A LIVELY EXERCISE OF POLITICAL TALENTS WERE OUTSTANDING CHARACTERISTICS OF THE THIRTY-THIRD PRESIDENT OF THE UNITED STATES;

BECAUSE A SPECIAL INTEREST OF THE MAN FROM INDEPENDENCE IN AMERICAN HISTORY AND A BROAD KNOWLEDGE AND UNDERSTANDING OF THE AMERICAN POLITICAL AND ECONOMIC SYSTEM GAINED BY STUDY AND EXPERIENCE IN COUNTY AND NATIONAL GOVERNMENT CULMINATED IN THE LEADERSHIP OF AMERICA REMEVERED FOR THE QUALITY OF HIS CHARACTER, COURAGE, AND COMMONSENSE;

BECAUSE OF THE DESIRABILITY OF ENCOURAGING YOUNG PEOPLE TO RECOGNIZE AND PROVIDE SERVICE IN THE HIGHEST AND BEST TRADITIONS OF THE AMERICAN POLITICAL SYSTEM AT ALL LEVELS OF GOVERNMENT, IT IS ESPECIALLY APPORPORATE TO HONOR FORMER PRESIDENT HARRY S TRUMAN THROUGH THE CREATION OF A PERPETUAL EDUCATION SCHOLARSHIP PRORAM TO DEVELOP INCREASED OPPORTUNITIES FOR YOUNG AMERICANS TO PREPARE AND PURSUE CAREERS IN PUBLIC SERVICE.

DEFINITIONS

SEC. 3. //20 USC 2002.// AS USED IN THIS ACT, THE TERM--

(1) "BOARD" MEANS THE BOARD OF TRUSTEES OF THE HARRY S TRUMAN SCHOLARSHIP FOUNDATION;

(2) "FOUNDATION" MEANS THE HARRY S TRUMAN SCHOLARSHIP FOUNDATION;

(3) "FUND" MEANS THE HARRY S TRUMAN MEMORIAL SCHOLARSHIP FUND;

(4) "INSTITUTION OF HIGHER EDUCATION" MEANS ANY SUCH INSTITUTION AS DEFINED BY SECTION 1201(A) OF THE HIGHER EDUCATION ACT OF 1965; //20 USC 1141.//

(5) "STATE" MEANS EACH OF THE SEVERAL STATES, THE DISTRICT OF COLUMBIA, THE COMMONWEALTH OF PUERTO RICO, AND, CONSIDERED AS A SINGLE ENTITY, GUAM, THE VIRGIN ISLANDS, AMERICAN SAMOA, AND THE TRUST TERRITORY OF THE PACIFIC ISLANDS; AND

(6) "SECRETARY" MEANS THE SECRETARY OF THE TREASURY.".

SEC. 4. //20 USC 2003.// THE HARRY S TRUMAN SCHOLARSHIP PROGRAM AS AUTHORIZED BY THIS ACT SHALL BE THE SOLE FEDERAL MEMORIAL TO PRESIDENT HARRY S TRUMAN.

ESTABLISHMENT OF THE HARRY S TRUMAN SCHOLARSHIP PROGRAM

SEC. 5. //20 USC 2004.// (A) THERE IS ESTABLISHED, AS AN INDEPENDENT ESTABLISHMENT OF THE EXECUTIVE BRANCH OF THE UNITED STATES GOVERNMENT, THE HARRY S TRUMAN SCHOLARSHIP FOUNDATION.

(B)(1) THE FOUNDATION SHALL BE SUBJECT TO THE SUPERVISION AND DIRECTOR OF A BOARD OF TRUSTTEES. THE BOARD SHALL BE COMPOSED OF THIRTEEN MEMBERS, AS FOLLOWS:

(A) TWO MEMBERS OF THE SENATE, ONE FROM EACH POLITICAL PARTY, TO BE APPOINTED BY THE PRESIDENT OF THE SENATE;

(B) TWO MEMBERS OF THE HOUSE OF REPRESENTATIVES, ONE FROM EACH POLITICAL PARTY, TO BE APPINTED BY THE SPEAKER;

(C) EIGHT MEMBERS, NOT MORE THAN FOUR OF WHOM SHALL BE OF THE SAME POLITICAL PARTY, TO BE APPOINTED BY THE PRESIDENT WITH THE ADVICE AND CONSENT OF THE SENATE, OF WHOM ONE SHALL BE A CHIEF EXECUTIVE OFFICER OF A STATE, ONE A CHIEF EXECUTIVE OFFICER OF A CITY OR COUNTY, ONE A MEMBER OF A FEDERAL COURT, ONE A MEMBER OF A STATE COURT, ONE A PERSON ACTIVE IN POSTSECONDARY EDUCATION, AND THREE REPRESENTATIVES OF THE GENERAL PUBLIC; AND

(D) THE COMMISSIONER OF EDUCATION OR HIS DESIGNATE, WHO SHALL SERVE EX OFFICIO AS A MEMBER OF THE BOARD, BUT SHALL NOT BE ELIGIBLE TO SERVE AS CHAIRMAN.

(C) THE TERM OF OFIFCE OF EACH MEMBER OF THE BOARD SHALL BE SIX YEAR; EXCEPT THAT (1) THE MEMBERS FIRST TAKING OFFICE SHALL SERVE AS DEISNGATED BY THE PRESIDENT, FOUR FOR TERMS OF TWO YEARS, FIVE FOR TERMS OF FOUR YEARS, AND FOUR FOR TERMS OF SIX YEARS, AND (2) ANY MEMBER APPOINTED TO FILL A VACANCY SHALL SERVE FOR THE REMAINDER OF THE TERM FOR WHICH HIS PRECEDESSOR WAS APPINTED, AND SHALL BE APPOINTED IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT FOR THAT VACANCY WAS MADE.

(D) MEMBERS OF THE BOARD SHALL SERVE WITHOUT PAY, BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR TRAVEL, SUBSISTENCE, AND OTHER NECESSARY EXPENSES INCURRED INT HE PERFORMANCE FO THEIR DUTIES.

SCHOLARSHIPS

SEC. 6. /20 USC 2005.// (A) THE FOUNDATION IS AUTHORIZED TO AWARD SCHOLARSHIPS TO PERSON WHO DEMONSTRAT EOUTSTANDING POTENTIAL FOR AND WHO PLAN TO PURSUE A CAREER IN PUBLIC SERVICE. AWARD RECIPIENTS SHALL BE KNOWN AS TRUMAN SCHOLARS.

(B) SCHOLARSHIPS UNDER THIS ACT SHALL BE AWARDED FOR SUCH PERIODS AS THE FOUNDARION MAY PRESCRIBE BUT NOT TO EXCEED FOUR ACADEMIC YEARS.

(C) A STUDENT AWARDED A SCHOLARSHIP UNDER THIS ACT MAY ATTEND ANY INSTITUTION OF HIGHER EDUCATION OFFERING COURSES OF STUDY, TRAINING, OR OTHER EDUCATIONAL ACTIVITIES DESIGNED TO PREPARE PERSONS FOR A CAREER IN PUBLIC SERVICE AS DETERMINED PURSUANT TO CRITERIA ESTABLISHED BY THE FOUNDATION.

(D) EACH STUDENT AWARDED A SCHOLARSHIP UNDER THIS ACT MUST HAVE INDICATED A SERIOUS INTENT TO ENTER THE PUBLIC SERVICE UPON THE COMPLETION OF HIS OR HER EDUCATIONAL PROGRAM. EACH INSTITUTION OF HIGHER EDUCATION AT WHICH SUCH A STUDENT IS IN ATTENDANCE WILL MAKE REASONABLE CONTINUING EFFORTS TO ENCOURAGE SUCH A STUDENT TO ENTER THE PUBLIC SERVICE UPON COMPLETING HIS OR HER EDUCATIONAL PROGRAM.

SELECTION OF TRUMAN SCHOLARS

SEC. 7. //20 USC 2006.// (A) THE FOUNDATION IS AUTHORIZED, EITHER DIRECTLY OR BY CONTRACT, TO PROVIDE FOR THE CONDUCT OF A NATIONWIDE COMPETITION FOR THE PURPOSE OF SELECTING TRUMAN SCHOLARS.

(B) THE FOUNDATION SHALL ADOPT SELECTION PROCEDURES WHICH SHALL ASSURE THAT AT LEAST ONE TRUMAN SCHOLAR SHALL BE SELECTED EACH YEAR FROM EACH STATE IN WHICH THERE IS AT LEAST ONE RESIDENT APPLICANT WHO MEETS THE MINIMUM CRITERIA ESTABLISHED BY THE FOUNDATION.

STIPENDS

SEC. 8. //20 USC 2007.// EACH STUDENT AWARDED A SCHOLARSHIP UNDER THIS ACT SHALL RECEIVE A STIPEND WHICH SHALL NOT EXCEED THE COST TO SUCH STUDENT FOR TUITION, FEES, BOOKS, ROOM AND BOARD, OR $5,000 WHICHEVER IS LESS FOR EACH ACADEMIC YEAR OF STUDY.

SEC. 9. //20 USC 2008.// A STUDENT AWARDED A SCHOLARSHIP UNDER THE PROVISIONS OF THIS ACT SHALL CONTINUE TO RECEIVE THE PAYMENTS PROVIDED IN THIS ACT ONLY DURING SUCH PERIODS AS THE FOUNDATION FINDS THAT HE OR SHE IS MAINTAINING SATISFACTORY PROFICIENCY AND DEVOTING FULL TIME TO STUDY OR RESEARCH DESIGNED TO PREPARE HIM OR HER FOR A CAREER IN PUBLIC SERVICE AND IT NOT OTHERWISE ENGAGING IN GAINFUL EMPLOYMENT OTHER THAN EMPLOYMENT APPROVED BY THE FOUNDATION PURSUANT TO REGUALTION.

(B) THE FOUNDATION IS AUTHORIZED TO REQUIRE REPORTS CONTAINING SUCH INFORMATION IN SUCH FORM AND TO BE FILED AT SUCH TIMES AS THE FOUNDATION DETERMINES TO BE NECESSARY FROM ANY STUDENT AWARDED A SCHOLARSHIP UNDER THE PROVISIONS OF THIS ACT. SUCH REPORTS SHALL BE ACCOMPANIED BY A CERTIFICATE FROM AN APPROPRIATE OFFICIAL AT THE INSTITUTION OF HIGHER EDUCATION, APPROVED BY THE FOUNDATION, STATING THAT SUCH STUDENT IS MAKING SATISFACTORY PROGRESS IN, AND IS DEVOTING ESSENTIALLY FULL TIME TO, STUDY OR RESEARCH, EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (A).

TRUMAN MEMORIAL SCHOLARSHIP FUND

SEC. 10. //20 USC 2009.// (A) THERE IS ESTABLISHED IN THE TREASURY OF THE UNITED STATES A TRUST FUND TO BE KNOWN AS THE HARRY S TRUMAN MEMORIAL SCHOLARSHIP TRUST FUND. THE FUND SHALL CONSIST OF AMOUNTS APPROPRIATED TO IT BY SECTION 14 OF THIS ACT.

(B) IT SHALL BE THE DUTY OF THE SECRETARY TO INVEST IN FULL THE AMOUNTS APPROPRIATED TO THE FUND. SUCH INVESTMENTS MAY BE MADE ONLY IN INTEREST-BEARING OBLIGATIONS OF THE UNITED STATES OR IN OBLIGATIONS GUARANTEED AS TO BOTH PRINCIPAL AND INTERESTED BY THE UNITED STATES. FOR SUCH PURPOSE, SUCH OBLIGATIONS MAY BE ACQUIRED (1) ON ORIGINAL ISSUE AT THE ISSUE PRICE, OR (2) BY PURCHASE OF OUTSTANDING OBLIGATIONS AT THE MARKET PLACE. THE PURPOSES FOR WHICH OBLIGATIONS OF THE UNITED STATES MAY BE ISSUED UNDER THE SECOND LIBERTY BOND ACT, AS AMENDED, ARE HEREBY EXTENDED TO AUTHORIZE THE ISSUANCE AT PAR OF SPECIAL OBLIGATIONS EXCLUSIVELY TO THE FUND. //31 USC 774.// SUCH SPECIAL OBLIGATIONS SHALL BEAR INTEREST AT A RATE EQUAL TO THE AVERAGE RATE OF INTEREST, COMPUTED AS TO THE END OF THE CALENDAR MONTH NEXT PRECEDING THE DATE OF SUCH ISSUE, BORNE BY ALL MARKETABLE INTEREST-BEARING OBLIGATIONS OF THE UNITED STATES THEN FORMING A PART OF THE PUBLIC DEBT; EXCEPT THAT WHERE SUCH AVERAGE RATE IS NOT A MULTIPLE OF ONE-EIGHTH OF 1 PER CENTUM, THE RATE OF INTEREST OF SUCH SPECIAL OBLIGATIONS SHALL BE THE MULTIPLE OF ONE-EIGHTH OF 1 PER CENTUMM NEXT LOWER THAN SUCH AVERAGE RATE. SUCH SPECIAL OBLIGATIONS SHALL BE ISSUED ONLY IF THE SECRETARY DETERMINES THAT THE PURCHASE OF OTHER INTEREST-BEARING OBLIGATIONS OF THE UNITED STATES, OR OF OBLIGATIONS GUARANTEED AS TO OTH PRINCIPAL AND INTEREST BY THE UNITED STATES OR ORIGINAL ISSUE OR AT THE MARKET PRICE, IS NOT IN THE PUBLIC INTEREST.

(C) ANY OBLIGATION ACQUIRED BY THE FUND (EXCEPT SPECIAL OBLIGATIONS ISSUED EXCLUSIVELY TO THE FUND) MAY BE SOLD BY THE SECRETARY AT THE MARKET PRICE, AND SUCH SPECIAL OBLIGATIONS MAY BE REDEEMED AT PAR PLUS ACCRUED INTEREST.

(D) THE INTEREST ON, AND THE PROCEEDS FROM THE SALE OR REDEMPTION OF, ANY OBLIGATIONS HELD IN THE FUND SHALL BE CREDITED TO AND FORM A PART OF THE FUND.

EXPENDITURES FROM THE FUND

SEC. 11. //20 USC 2010.// (A) THE SECRETARY IS AUTHORIZED TO PAY TO THE FOUNDATION FROM THE INTEREST AND EARNINGS OF THE FUND SUCH SUMS AS THE BOARD DETERMINES ARE NECESSARY AND APPROPRIATE TO ENABLE THE FOUNDATION TO CARRY OUT THE PURPOSES OF THE ACT.

(B) THE ACTIVITIES OF THE FOUNDATION UNDER THIS ACT MAY BE AUDITED BY THE GENERAL ACCOUNTING OFFICE UNDER SUCH RULES AND REGULATIONS AS MAY BE PRESCRIBED BY THE COMPTROLLER GENERAL OF THE UNITED STATES. THE REPRESENTATIVES OF THE GENRAL ACCOUNTING OFFICE SHALL HAVE ACCESS TO ALL BOOKS, ACCOUNTS, RECORDS, REPORTS, AND FILES AND ALL OTHER PAPERS, THINGS, OR PROPERTY BELONGING TO OR IN USE BY THE FOUNDATION, PERTAINING TO SUCH ACTIVITIES AND NECESSARY TO FACILITATE THE AUDIT.

EXECUTIVE SECRETARY

SEC. 12. //20 USC 2011.// (A) THERE SHALL BE AN EXECUTIVE SECRETARY OF THE FOUNDATION WHO SHALL BE APPOINTED BY THE BOARD. THE EXECUTIVE SECRETARY SHALL BE THE CHIEF EXECUTIVE OFFICER OF THE FOUNDATION AND SHALL CARRY OUT THE FUNCTIONS OF THE FOUNDATION SUBJECT TO THE SUPERVISION AND DIRECTION OF THE BOARD. THE EXECUTIVE SECRETARY SHALL CARRY OUT SUCH OTHER FUNCTIONS CONSISTENT WITH THE PROVISIONS OF THIS ACT AS THE BOARD SHALL DELEGATE.

(B) THE EXECUTIVE SECRETARY OF THE FOUNDATION SHALL BE COMPRESENTED AT THE RATE SPECIFIED FOR EMPLOYEES PLACED IN GRADE 18 OF THE GENERAL SCHEDULE SET FORTH IN SECTION 5332 OF TITLE 5, UNITED STATES CODE.

ADMINISTRATIVE PROVISIONS

SEC. 13. //20 USC 2012.// (A) IN ORDER TO CARRY OUT THE PROVISIONS OF THIS ACT, THE FOUNDATION IS AUTHORIZED TO--

(1) APPOINT AND FIX THE COMPENSATION OF SUCH PERSONNEL AS MAY BE NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ACT, EXCEPT THAT IN NO CASE SHALL EMPLOYEES OTHER THAN THE EXECTUVE SECRETARY BE COMPENSATED AT A RATE TO EXCEED THE RATE PROVIDED FOR EMPLOYEES IN GRADE 15 OF THE GENERAL SCHEDULE SET FORTH IN SECTION 5332 OF TITLE 5, UNITED STATES CODE;

(2) PROCURE TEMPORARY AND INTERMITTENT SERVICES OF EXPERTS AND CONSULTANTS AS ARE NECESSARY TO THE EXTENT AUTHORIZED BY SECTION 3109 OF TITLE 5, UNITED STATES CODE, BUT AT RATES NOT TO EXCEED THE RATE SPECIFIED AT THE TIME OF SUCH SERVICE FOR GRADE GS-18 IN SECTION 5332 OF SUCH TITLE; //5 USC 5332 NOTE.//

(3) PRESCRIBE SUCH REGULATIONS AS IT DEEMS NECESSARY GOVERNING THE MANNER IN WHICH ITS FUNCTIONS SHALL BE CARRIED OUT;

(4) RECEIVE MONEY AND OTHER PROPERTY DONATED, BEQUEATHED, OR DEVISED, WITHOUT CONDITION OR RESTRICTION OTHER THAN IT BE USED FOR THE PURPOSES OF THE FOUNDATION; AND TO USE, SELL, OR OTHERWISE DISPOSE OF SUCH PROPERTY FOR THE PURPOSE OF CARRYING OUT ITS FUNCTIONS;

(5) ACCEPT AND UTILIZE THE SERVICES OF VOLUMTARY AND NONCOMPENSATED PERSONNEL AND REIMBURSE THEM FOR TRAVEL EXPENSES, INCLUDING PER DIEM, AS AUTHORIZED BY SECTION 5703 OF TITLE 5, UNITED STATES CODE;

(6) ENTER INTO CONTRACTS, GRANTS, OR OTHER ARRANGEMENTS, OR MODIFICATIONS THEREOF, TO CARRY OUT THE PROVISIONS OF THIS ACT, AND SUCH CONTRACTS OR MODIFICATIONS THEREOF MAY, WITH THE CONCURRENCE OF TWO-THIRDS OF THE MEMBERS OF THE BOARD, BE ENTERED INTO WITHOUT PERFORMANCE OR OTHER BONDS, AND WITHOUT REGARD TO SECTION 3709 OF THE REVISED STATUTES, AS AMENDED (41 U.S.C. 5);

(7) MAKE ADVANCES, PROGRESS, AND OTHER PAYMENTS WHICH THE BOARD DEEMS NECESSARY UNDER THIS ACT WITHOUT REGARD TO THE PROVISIONS OF SECTION 3648 OF THE REVISED STATUTES, AS AMENDED (31 U.S.C. 529);

(8) RENT OFFICE SPACE IN THE DISTRICT OF COLUMBIA; AND

(9) MAKE OTHER NECESSARY EXPENDITURES.

(B) THE FOUNDATION SHALL SUBMIT TO THE PRESIDENT AND TO THE CONGRESS AN ANNUAL REPORT OF ITS OPERATIONS UNDER THIS ACT.

APPROPRIATIONS AUTHORIZED

SEC. 14. //20 USC 2013.// THERE ARE AUTHORIZED TO BE APPROPRIATED $30,000,000 TO THE FUND.

LEGISLATIVE HISTORY:

HOUSE REPORT: NO. 93 - 1505 ACCOMPANYING H.R. 17481 (COMM. ON EDUCATION AND LABOR).

SENATE REPORT NO. 93 - 1068 (COMM. ON LABOR AND PUBLIC WELFARE).

CONGRESSIONAL RECORD, VOL. 120 (1974):

AUG. 7, CONSIDERED AND PASSED SENATE.

DEC. 17, CONSIDERED AND PASSED HOUSE, AMENDED, IN LIEU OF H.R. 17481.

DEC. 18, SENATE CONCURRED IN HOUSE AMENDMENTS.

WEEKLY COMPLITATION OF PRESIDENTIAL DOCUMENTS, VOL. 11, NO. 2:

JAN. 4, PRESIDENTIAL STATEMENT.

PUBLIC LAW 93-641, 88 STAT. 2225, NATIONAL HEALTH PLANNING AND RESOURCES DEVELOPMENT ACT OF 1974.

93RD CONGRESS, S. 2994 JANUARY 4, 1975
AN ACT TO AMEND THE PUBLIC HEALTH SERVICE ACT TO ASSURE THE DEVELOPMENT OF A NATIONAL HEALTH POLICY AND OF EFFECTIVE STATE AND AREA HEALTH PLANNING AND RESOURCES DEVELOPMENT PROGRAMS, AND FOR OTHER PURPOSES.

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED,

SHORT TITLE; TABLE OF CONTENTS

SECTION 1. THIS ACT MAY BE CITED AS THE "NATIONAL HEALTH PLANNING AND RESOURCES DEVELOPMENT ACT OF 1974". //42 USC 300K NOTE.//

FINDINGS AND PURPOSE //42 USC 300K.//

SEC. 2. (A) THE CONGRESS MAKES THE FOLLOWING FINDINGS:

(1) THE ACHIEVEMENT OF EQUAL ACCESS TO QUALITY HEALTH CARE AT A REASONABLE COST IS A PRIORITY OF THE FEDERAL GOVERNMENT.

(2) THE MASSIVE INFUSION OF FEDERAL FUNDS INTO THE EXISTING HEALTH CARE SYSTEM HAS CONTRIBUTED TO INFLATIONARY INCREASES IN THE COST OF HEALTH CARE AND FAILED TO PRODUCE AN ADEQUATE SUPPLY OR DISTRIBUTION OF HEALTH RESOURCES, AND CONSEQUENTLY HAS NOT MADE POSSIBLE EQUAL ACCESS FOR EVERYONE TO SUCH RESOURCES.

(3) THE MANY AND INCREASING RESPONSES TO THESE PROBLEMS BY THE PUBLIC SECTOR (FEDERAL, STATE, AND LOCAL) AND THE PRIVATE SECTOR HAVE NOT RESULTED IN A COMPREHENSIVE, RATIONAL APPROACH TO THE PRESENT--'

(A) LACK OF UNIFORMLY EFFECTIVE METHODS OF DELIVERING HEALTH CARE;

(B) MALDISTRIBUTION OF HEALTH CARE FACILITIES AND MANPOWER; AND

(C) INCREASING COST OF HEALTH CARE.

(4) INCREASES IN THE COST OF HEALTH CARE, PARTICULARLY OF HOSPITAL STAYS, HAVE BEEN UNCONTROLLABLE AND INFLATIONARY, AND THERE ARE PRESENTLY INADEQUATE INCENTIVES FOR THE USE OF APPROPRIATE ALTENATIVE LEVELS OF HEALTH CARE, AND FOR THE SUBSTITUTION OF AMBULATORY AND INTERMEDIATE CARE FOR INPATIENT HOSPITAL CARE.

(5) SINCE THE HEALTH CARE PROVIDER IS ONE OF THE MOST IMPORTANT PARTICIPANTS IN ANY HEALTH CARE DELIVERY SYSTEM, HEALTH POLICY MUST ADDRESS THE LEGITIMATE NEEDS AND CONCERNS OF THE PROVIDER IF IT IS TO ACHIEVE MEANINGFUL RESULTS; AND, THUS, IT IS IMPERATIVE THAT THE PROVIDER BE ENCOURAGED TO PLAY AN ACTIVE ROLE IN DEVELOPINGG HEALTH POLICY AT ALL LEVELS.

(6) LARGE SEGMENTS OF THE PUBLIC ARE LACKING IN BASIC KNOWLEDGE REGARDING PROPER PERSONAL HEALTH CARE AND METHODS FOR EFFECTIVE USE OF AVAILABLE HEALTH SERVICES.

(B) IN RECOGNITION OF THE MAGNITUDE OF THE PROBLEMS DESCRIBED IN SUBSECTION (A) AND THE URGENCY PLACED ON THEIR SOLUTION, IT IS THE PURPOSE OF THIS ACT TO FACILITATE THE DEVELOPMENT OF RECOMMENDATIONS FOR A NATIONAL HEALTH PLANNING POLICY, TO AUGMENT AREAWIDE AND STATE PLANNING FOR HEALTH SERVICES, MANPOWER, AND FACILITIES, AND TO AUTHORIZE FINANCIAL ASSISTANCE FOR THE DEVELOPMENT OF RESOURCES TO FURTHER THAT POLICY.

REVISION OF HEALTH PLANNING PROGRAMS UNDER THE PUBLICH HEALTH SERVICE ACT

SEC. 3. THE PUBLIC HEALTH SERVICE ACT IS AMENDED BY ADDING AT THE END THE FOLLOWING NEW TITLE: //42 USC 201 NOTE.//

"TITLE XV--NATIONAL HEALTH PLANNING AND DEVELOPMENT "PART A--NATIONAL GUIDELINES FOR HEALTH PLANNING "NATIONAL GUIDELINES FOR HEALTH PLANNING

//42 USC 300K-1.//

"SEC. 1501. (A) THE SECRETARY SHALL, WITHIN EIGHTTEEN MONTHS AFTER THE DATE OF THE ENACTMENT OF THIS TITLE, BY REGULATION ISSUE GUIDELINES CONCERNING NATIONAL HEALTH PLANNING POLICY AND SHALL, AS HE DEEMDS APPROPRIATE, BY REGULATION REVISE SUCH GUIDELINES. REGULATIONS UNDER THIS SUBSECTION SHALL BE PROMULGATED IN ACCORDANCE WITH SECTION 553 OF TITLE 5, UNITED STATES CODE.

"(B) THE SECRETARY SHALL INCLUDE IN THE GUIDELINES ISSUED UNDER SUBSECTION (A) THE FOLLOWING:

"(1) STANDARDS RESPECTING THE APPROPRIATE SUPPLY, DISTRIBUTION, AND ORGANIZATION OF HEALTH RESOURCES.

"(2) A STATEMENT OF NATIONAL HEALTH PLANNING GOALS DEVELOPED AFTER CONSIDERATION OF THE PRIORITIES, SET FORTH IN SECTION 1502, WHICH GOALS, TO THE MAXIMUM EXTENT PRACTICABLE, SHALL BE EXPRESSED IN QUANTIATIVE TERMS.

"(C) IN ISSUING GUIDELINES UNDER SUBSECTION (A) THE SECRETARY SHALL CONSULT WITH AND SOLICIT RECOMMENDATIONS AND COMMENTS FROM THE HEALTH SYSTEMS AGENCIES DESIGNATED UNDER APRT B, //POST, P. 2229.// THE STATE HEALTH PLANNING AND DEVELOPMENT AGENCIES DESIGNATED UNDER PART C, //POST, P. 2242.// THE STATEWIDE HEALTH COORDINATING COUNCILS ESTABLISHED UNDER PART C, ASSOCIATIONS AND SPECIALTY SOCIEITIES REPRESENTING MEDICAL AND OTHER HEALTH CARE PROVIDERS, AND THE NATIONAL COUNCIL ON HEALTH PLANNING AND DEVELOPMENT ESTABLISHED BY SECTION 1503.

"NATIONAL HEALTH PRIORITIES //42 USC 300K-2.//

"SEC. 1502. THE CONGRESS FINDS THAT THE FOLLOWING DESERVE PRIORITY CONSIDERATION IN THE FORMULATION OF NATIONAL HEALTH PLANNING GOALS AND IN THE DEVELOPMENT AND OPERATION OF FEDERAL, STATE, AND AREA HEALTH PLANNING AND RESOURCES DEVELOPMENT PROGRAMS:

"(1) THE PROVISIONS OF PRIMARY CARE SERVICES FOR MEDICALLY UNDERSERVED POPULATIONS, ESPECIALLY THOSE WHICH ARE LOCATED IN RURAL OR ECONOMICALLY DEPRESSED AREAS.

"(2) THE DEVELOPMENT OF MULTI-INSTITUTIONAL SYSTEMS FOR COORDINATION OR CONSOLIDATION OF INSTITUTIONAL HEALTH SERVICES (INCLUDING OBSTETRIC, PEDIATRIC, EMERGENCY MEDICAL, INTENSIVE AND CORONARY CARE, AND RADIATION THERAPY SERVICES).

"(3) THE DEVELOPMENT OF MEDICAL GROUP PRACTICES (ESPECIALLY THOSE WHOSE SERVICES ARE APPROPRIATELY COORDINATED OR INTEGRATED WITH INSTITUTIONAL HEALTH SERVICE), HEALTH MAINTENANCE ORGANIZATIONS, AND OTHER ORGANIZED SYSTEMS FOR THE PROVISION OF HEALTH CARE.

"(4) THE TRAINING AND INCREASED UTILIZATION OF PHYSICIAN ASSISTANTS, ESPECIALLY NURSE CLINICIANS.

"(5) THE DEVELOPMENT OF MULTI-INSTITUTIONAL ARRANGEMENTS FOR THE SHARING OF SUPPORT SERVICES NECESSARY TO ALL HEALTH SERVICE INSTITUTIONS.

"(6) THE PROMOTION OF ACTIVITIES TO ACHIEVE NEEDED IMPROVEMENTS IN THE QUALITY OF HEALTH SERVICES, INCLUDING NEEDS IDENTIFIED BY THE REVIEW ACTIVITIES OF PROFESSIOANL STANDARDS REVIEW ORGANIZATIONS UNDER PART B OF TITLE XI OF THE SOCIAL SECURITY ACT. //42 USC 1320C.//

"(7) THE DEVELOPMENT BY HEALTH SERVICE INSTITUTIONS OF THE CAPACITY TO PROVIDE VARIOUS LEVELS OF CARE (INCLUDING INTENSIVE CARE, ACUTE GENERAL CARE, AND EXTENDED CARE) ON A GEOGRAPHICALLY INTEGRATED BASIS.

"(8) THE PROMOTION OF ACTIVITIES FOR THE PREVENTION OF DISEASE, INCLUDINGSTUDIES OF NUTRITIONAL AND ENVIROMENTAL FACTORS AFFECTING HEATLH AND THE PROVISION OF PREVENTIVE HEALTH CARE SERVICES.

"(9) THE ADOPTION OF UNIFORM COST ACCOUNTING, SIMPLIFIED REIMBURSEMENT, AND UTILIZATION REPORTING SYSTEMS AND IMPROVED MANAGEMENT PROCEDURES FOR HEALTH SERVICE INSTITUTIONS.

"(10) THE DEVELOPMENT OF EFFECTIVE METHODS OF EDUCATING THE GENERAL PUBLIC CONCERNING PROPER PERSONAL (INCLUDING PREVENTIVE) HEALTH CARE AND METHODS FOR EFFECTIVE USE OF AVAILABLE HEALTH SERVICES.

"NATIONAL COUNCIL ON HEALTH PLANNING AND DEVELOPMENT

//42 USC 300K-3.//

"SEC. 1503. (A) THERE IS ESTABLISHED IN THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE AN ADVISORY COUNCIL TO BE KNOWN AS THE NATIONAL COUNCIL ON HELATH PLANNING AND DEVELOPMENT (HEREINAFTER IN THIS SECTION REFERRED TO AS THE 'COUNCIL'). THE COUNCIL SHALL ADVISE, CONSULT WITH, AND MAKE RECOMMENDATIONS TO, THE SECRETARY WITH RESPECT TO (1) THE DEVELOPMENT OF NATIONAL GUIDELINES UNDER SECTION 1501, (2) THE IMPLEMENTATION AND ADMINISTRATION OF THIS TITLE AND TITLE XVI, //POST, P. 2258.// AND (3) AN EVALUATION OF THE IMPLICATIONS OF NEW MEDICAL TECHNOLOGY FOR THE ORGANIZATION, DELIVERY, AND EQUITABLE DISTRIBUTION OF HEALTH CARE SERVICES.

"(B)(1) THE COUNCIL SHALL BE COMPOSED OF IFFTEEN MEMBERS. THE CHIEF MEDICAL DIRECTOR OF THE VETERAN'S ADMINISTRATION, THE ASSISTANT SECRETARY FOR HEALTH AND ENVIROMENT OF THE DEPARTMENT OF DEFENSE, AND THE ASSISTANT SECRETARY FOR HEALTH OF THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE SHALL BE NONVOTING EX OFFICIO MEMBERS OF THE COUNCIL. THE REMAINING MEMBERS SHALL BE APPOINTED BY THE SECRETARY AND SHALL BE PERSONS WHO, AS A RESULT OF THEIR TRAINING, EXPERIENCE, OR ATTAINMENTS, ARE EXCEPTIONALLY WELL QUALIFIED TO ASSIST IN CARRYING OUT THE FUNCTIONS OF THE COUNCIL. OF THE VOTING MEMBERS, NOT LESS THAN FIVE SHALL BE PERSONS WHO ARE NOT PROVIDERS OF HEALTH SERVICES, NOT MORE THAN THREE SHALL OFFICERS OR EMPLOYEES OF THE FEDERAL GOVERNMENT, NOT LESS THAN THREE SHALL BE MEMBERS OF GOVERNING BODIES OF HEALTH SYSTEMS AGENCIES DESIGNATED UNDER PART B, AND NOT LESS THAN THREE SHALL BE MEMBERS OF STATEWIDE HEALTH COORDINATING COUNCILS UNDER SECTION 1524. //POST, P. 2247.// THE TWO MAJOR POLITICAL PARTIES SHALL HAVE EQUAL REPRESENTATION AMONG THE VOTING MEMBERS ON THE COUNCIL.

"(2) THE TERM OF OFFICE OF VOTING MEMBERS OF THE COUNSIL SHALL BE SIX YEARS, EXCEPT THAT--'

"(A) OF THE MEMBERS FIRST APPOINTED TO THE COUNCIL, FOUR SHALL BE APPOINTED FOR TERMS OF TWO YEARS AND FOUR SHALL BE APPOINTED FOR TERMS OF FOUR YEARS, AS DESIGNATED BY THE SECRETARY AT THE TIME OF APPOINTMENT; AND

"(B) ANY MEMBER APPOINTED TO FILL A VACANCY OCCURRING PRIOR TO THE EXPIRATION OF THE TERM FOR WHICH HIS PREDECESSOR WAS APPOINTED SHALL BE APPOINTED ONLY FOR THE REMAINDER OF SUCH TERM.

A MEMBER MAY SERVE AFTER THE EXPIRATION OF HIS TERM UNTIL HIS SUCCESSOR HAS TAKEN OFFICE.

"(3) THE CHAIRMAN OF THE COUNCIL SHALL BE SELECTED BY THE VOTING MEMBERS FROM AMONG THEIR NUMBER. THE TERM OF OFFICE OF THE CHAIRMAN OF THE COUNCIL SHALL BE THE LESSER OF THREE YEARS OR THE PERIOD REMAINING IN HIS TERM OF OFFICE AS A MEMBER OF THE COUNCIL.

"(C)(1) EXCEPT AS PROVIDED IN PARAGRPAH (2), THE MEMBERS OF THE COUNCIL SHALL BE ENTITLED TO RECEIVE THE DAILY EQUIVALENT OF THE ANNUAL RATE OF BASIC PAY IN EFFECT FOR GRADE GS-18 OF THE GENERAL SCHEDULE //5 USC 5332 AND NOTE.// FOR EACH DAY (INCLUDING TRAVELTIME) DURING WHICH THEY ARE ENGAGED IN THE ACTUAL PERFORMANCE OF DUTIES VESTED IN THE COUNCIL.

"(2) MEMBERS OF THE COUNCIL WHO ARE FULL-TIME OFFICERS OR EMPLOYEES OF THE UNITED STATES SHALL RECEIVE NO ADDITIONAL PAY ON ACCOUNT OF THEIR SERVICE ON THE COUNCIL.

"(3) WHILE AWAY FROM THEIR HOMES OR REGULAR PLACES OF BUSINESS IN THE PERFORMANCE OF SERVICES FOR THE COUNCIL, MEMBERS OF THE COUNCIL SHALL BE ALLOWED TRAVEL EXPENSES, INCLUDING PER DIEM IN LIEU OF SUBSISTENCE, IN THE SAME MANNER AS PERSONS EMPLOYED INTERMITTENTLY IN THE GOVERNMENT SERVICE ARE ALLOWED EXPENSES UNDER SECTION 5703(B) OF TITLE 5, UNITED STATES CODE.

"(D) THE COUNCIL MAY APPOINT, FIX THE PAY OF, AND PRESCRIBE THE FUNCTIONS OF SUCH PERSONNEL AS ARE NECESSARY TO CARRY OUT ITS FUNCTIONS. IN ADDITION, THE COUNCIL MAY PROCURE THE SERVICES OF EXPERTS AND CONSULTANTS AS AUTHORIZED BY SECTION 3109 OF TITLE 5, UNITED STATES CODE, BUT WITHOUT REGARD TO THE LAST SENTENCE OF SUCH SECTION.

"(E) THE PROVISIONS OF SECTION 14(A) OF THE FEDERAL ADVISORY COMMITTEE ACT SHALL NOT APPLY WITH RESPECT TO THE COUNCIL. //5 USC APP. I.//

"PART B--HEALTH SYSTEMS AGENCIES "HEALTH SERVICE AREAS //42 USC 300L.//

"SEC. 1511. (A) THERE SHALL BE ESTABLISHED, IN ACCORDANCE WITH THIS SECTION, HEALTH SERVICE AREAS THROUGHT THE UNITED STATES WITH RESPECT TO WHICH HEALTH SYSTEMS AGENCIES SHALL BE DESIGNATED UNDER SECTION 1515. EACH HEALTH SERVICE AREA SHALL MEET THE FOLLOWING REQUIRMENTS:

"(1) THE AREA SHALL BE A GEOGRAPHIC REGION APPROPRIATE FOR THE EFFECTIVE PLANNING AND DEVELOPMENT OF HEALTH SERVICES, DETERMINED ON THE BASIS OF FACTORS INCLUDING POPULATION AND THE AVAILABILITY OF RESOURCES TO PROVIDE ALL NECESSARY HEALTH SERVICES FOR RESIDENTS OF THE AREA.

"(2) TO THE EXTENT PRACTICABLE, THE AREA SHALL INCLUDE AT LEAST ONE CENTER FOR THE PROVISION OF HIGHLY SPECIALIZED HEALTH SERVICES.

"(3) THE AREA, UPON ITS ESTABLISHMENT, SHALL HAVE A POPULATION OF NOT LESS THAN FIVE HUNDRED THOUSAND OR MORE THAN THREE MILLION; EXCEPT THAT--'

"(A) THE POPULATION OF AN AREA MAY BE MORE THAN THREE MILLION IF THE AREA INCLUDES A STANDARD METROPOLITAN STATISTICAL AREA (AS DETERMINED BY THE OFFICE OF MANAGEMENT AND BUDGET) WITH A POPULATION OF MORE THAN THREE MILLION, AND

"(B) THE POPULATION OF AN AREA MAY--'

"(I) BE LESS THAN FIVE HUNDRED THOUSAND IF THE AREA COMPRISES AN ENTIRE STATE WHICH HAS A POPULATION OF LESS THAN FIVE HUNDRED THOUSAND, OR

"(II) BE LESS THAN--' "(I) BE LESS THAN FIVE HUNDRED THOUSAND (BUT NOT LESS THAN TWO HUNDRED THOUSAND) IN UNUSUAL CIRCUMSTANCES (AS DETERMINED BY THE SECRETARY), OR "(II) TWO HUNDRED THOUSAND IN HIGHLY UNUSUAL CIRCUMSTANCES (AS DETERMINED BY THE SECRETARY), IF THE GOVERNOR OF EACH STATE IN WHICH THE AREA IS LOCATED DETERMINES, WITH THE APPROVAL OF THE SECRETARY, THAT THE AREA MEETS THE OTHER REQUIREMENTS OF THIS SUBSECTION.

"(4) TO THE MAXIMUM EXTENT FEASIBLE, THE BOUNDARIES OF THE AREA SHALL BE APPROPRIATELY COORDINATED WITH THE BOUNDARIES OF AREAS DESIGNATED UNDER SECTION 1152 OF THE SOCIAL SECURITY ACT FOR PROFESSIOANL STANDARDS REVIEW ORGANIZATIONS, //42 USC 1320C-1.// EXISTING REGIONAL PLANNING AREAS, AND STATE PLANNING AND ADMINISTRATIVE AREAS.

THE BOUNDARIES OF A HEALTH SERVICE AREA SHALL BE ESTABLISHED SO THAT, IN THE PLANNING AND DEVELOPMENT OF HEALTH SERVICES TO BE OFFERED WITHIN THE HEALTH SERVICE AREA, ANY ECONOMIC OR GEOGRAPHIC BARRIER TO THE RECEIPT OF SUCH SERVICES IN NONMETROPOLITAN AREA IS TAKEN INTO ACCOUNT. THE BOUNDARIES OF HEALTH SERVICE AREAS SHALL BE ESTABLISHED SO AS TO RECOGNIZE THE DIFFERENCES IN HEALTH PLANNING AND HEALTH SERVICES DEVELOPMENT NEEDS BETWEEN NONMETROPOLITAN AND METROPOLITAN AREAS. EACH STANDARD METROPOLITAN STATISTICAL AREA SHALL BE ENTIRLY WITHIN THE BOUNDARIES OF ONE HEALTH SERVICE AREA, EXCEPT THAT IF THE GOVERNOR OF EACH STATE IN WHICH A STANDARD METROPOLITAN STATISTICAL AREA, THEN SUCH STATISTICAL AREA SHALL NOT BE REQUIRED TO BE ENTIRELY WITHIN THE BOUNDARIES OF SUCH HEALTH SERVICE AREA.

"(B) (1) WITHIN THIRTY DAYS FOLLOWING THE DATE OF THE ENACTMENT OF THIS TITLE, THE SECRETARY SHALL SIMULTANEOUSLY GIVE TO THE GOVERNOR OF EACH STATE WRITTEN NOTICE OF THE INITIATION OF PROCEEDINGS TO ESTABLISH HEALTH SERVICE AREAS THROUGHTOUT THE UNITED STATES. EACH NOTICE SHALL CONTAIN THE FOLLOWING:

"(A) A STATEMENT OF THE REQUIREMENT (IN SUBSECTION (A)) OF THE ESTABLISHMENT OF HEALTH SERVICE AREAS THROUGHT THE UNITED STATES.

"(B) A STATEMENT OF THE CRITERIA PRESCRIBED BY SUBSECTION (A) FOR HEALTH SERVICE AREAS AND THE PROCEDURES PRESCRIBED BY THIS SUBSECTION FOR THE DESIGNATION OF HEALTH SERVICE AREA BOUNDARIES.

"(C) A REQUEST TAHT THE GOVERNOR RECEIVING THE NOTICE (I) DESIGNATE THE BOUNDARIES OF HEALTH SERVICE AREAS WITHIN HIS STATE, AND, WHERE APPROPRIATE AND IN COOPERATION WITH THE GOVERNORS OF ADJOINING STATES, DESIGNATE THE BOUNDARIES WITHIN HIS STATE OF HEALTH SERVICE ARES LOCATED BOTH IN HIS STATE AND IN ADJOINING STATES, AND (II) SUBMIT (IN SUCH FORM AND MANNER AS THE SECRETARY SHALL SPECIFY) TO THE SECRETARY, WITHIN ONE HUNDRED AND TWENTY DAYS OF THE DATE OF ENACTMENT OF THIS TITLE, SUCH BOUNDARY DESIGNATIONS TOGETHER WITH COMMENTS, SUBMITTED BY THE ENTITIES REFERRED TO IN PARAGRAPH (2), WITH RESPECT TO SUCH DESIGNATIONS.

AT THE TIME SUCH NOTICE IS GIVEN UNDER THIS PARAGRAPH TO EACH GOVERNOR, THE SECRETARY SHALL PUBLISH AS A NOTICE IN THE FEDERAL REGISTER A STATEMENT OF THE GIVING OF HIS NOTICE TO THE GOVERNOR AND THE CRITERIA AND PROCEDURES CONTAINED IN SUCH NOTICE.

"(2) EACH STATE'S GOVERNOR SHALL IN THE DEVELOPMENT OF BOUNDARIES FOR HEALTH SERVICE AREAS CONSULT WITH AND SOLICIT THE VIEWS OF THE CHIEF EXECUTIVE OFFICER OR AGENCY OF THE POLITICAL SUBDIVISIONS WITHIN THE STATE, THE STATE AGENCY WHICH ADMINISTERS OR SUPERVISES THE ADMINISTRATION OF THE STATE'S HEALTH PLANNING FUNCTIONS UNDER A STATE PLAN APPROVED UNDER SECTION 314(A), //42 USC 246.// EACH ENTITY WITHIN THE STATE WHICH HAS DEVELOPED A COMPREHENSIVE REGIONAL, METROPOLITAN, OR OTHER LOCAL AREA PLAN OR PLANS REFERRED TO IN SECTION 314(B), AND EACH REGIONAL MEDICAL PROGRAM ESTABLISHED IN THE STATE UNDER THE TITLE IX. //42 USC 299.//

"(3)(A) WITHIN TWO HUNDRED AND TEN DAYS AFTER THE DATE OF ENACTMENT OF THIS TITLE, THE SECRETARY SHALL PUBLISH AS A NOTICE IN THE FEDERAL REGISTER THE HEALTH SERVICE AREA BOUNDARY DESIGNATIONS. THE BOUNDARIES FOR HEALTH SERVICE AREA SUBMITTED BY THE GOVERNORS SHALL, EXCEPT AS OTHERWISE PROVIDED IN SUBPARAGRAPH (B), CONSTITUTE UPON THEIR PUBLICATION IN THE FEDERAL REGISTER THE BOUNDARIES FOR SUCH HEALTH SERVICE AREAS.

"(B)(1) IF THE SECRETARY DETERMINES THAT A BOUNDARY SUBMITTED TO HIM FOR A HEALTH SERVICE AREA DOES NOT MEET THE REQUIREMENTS OF SUBSECTION (A), HE SHALL, AFTER CONSULTATION WITH THE GOVERNOR WHO SUBMITTED SUCH BOUNDARY, MAKE SUCH REVISIONS IN THE BOUNDARY FOR SUCH AREA (AND AS NECESSARY TO MEET SUCH REQUIREMENTS AND PUBLISH SUCH REVISED BOUNDARY (OR BOUNDARIES); AND THE REVISED BOUNDARY (OR BOUNDARIES) SHALL UPON PUBLICATION IN THE FEDERAL REGISTER CONSTITUTE THE BOUNDARY (OR BOUNDARIES) FOR SUCH HEALTH SERVICE AREA (OR AREAS). THE SECRETARY SHALL NOTIFY THE GOVERNOR OF EACH STATE IN WHICH IS LOCATED A HEALTH SERVICE AREA WHOSE BOUNDARY IS REVISED UNDER THIS CLAUSE OF THE BOUNDARY REVISION AND THE REASONS FOR SUCH REVISIONS.

"(II) IN THE CASE OF AREAS OF THE UNITED STATES NOT INCLUDED WITHIN THE BOUNDARIES FOR HEALTH SERVICE AREAS SUBMITTED TO THE SECRETARY AS REQUESTED UNDER THE NOTICE UNDER PARAGRAPH (1), THE SECRETARY SHALL ESTABLISH AND PUBLISH IN THE FEDERAL REGISTER HEALTH SERVICE AREA BOUNDARIES WHICH INCLUDE SUCH AREAS. THE SECRETARY SHALL NOTIFY THE GOVERNOR OF EACH STATE IN WHICH IS LOCATED A HEALTH SERVICE AREA THE BOUNDARY FOR WHICH IS ESTABLISHED UNDER THIS CLAUSE OF THE BOUNDARIES ESTABLISHED. IN CARRYING OUT THE REQUIREMENT OF THIS CLAUSE, THE SECRETARY MAY MAKE SUCH REVISIONS IN BOUNDARIES SUBMITTED UNDER SUBPARAGRAPH (A) AS HE DEEMS ARE NECESSARY TO MEET THE REQUIREMENT OF SUBSECTION (A) FOR THE ESTABLISHMENT OF HEALTH SERVICE AREAS THROUGHOUT THE UNITED STATES.

"(4) THE SECRETARY SHALL REVIEW ON A CONTINUING BASIS AND AT THE REQUEST OF ANY GOVERNOR OR DESIGNATED HEALTH SYSTEMS AGENCY THE APPROPRIATENESS OF THE BOUNDARIES OF THE HEALTH SERVICE ARES ESTABLISHED UNDER PARAGRAPH (3) AND, IF HE DETERMINES THAT A BOUNDARY FOR A HEALTH SERVICE AREA NO LONGER MEETS THE REQUIREMENTS OF SUBSECTION (A), HE MAY REVISE THE BOUNDARIES IN ACCORDANCE WITH THE PROCEDURES PRESCRIBED BY PARAGRAPH (3)(B)(II) FOR THE ESTABLISHMENT OF BOUNDARIES OF HEALTH SERVICE AREAS WHICH INCLUDE AREAS NOT INCLUDED IN BOUNDARIES SUBMITTED BY THE GOVERNORS. IF THE SECRETARY ACTS ON HIS OWN INITIATIVE TO REVISE THE BOUNDARIES OF ANY HEALTH SERVICE AREA, HE SHALL CONSULT WITH THE GOVERNOR OF THE APPROPRIATE STATE OR STATES, THE ENTITIES REFERRED TO IN PARAGRAPH (2), THE APPROPRIATE HEALTH SYSTEMS AGENCY OR AGENCIES DESIGNATED UNDER PART B //ANTE, P. 222.// AND THE APPROPRIATE STATEWIDE HEALTH COORDINATING COUNCIL ESTABLISHED UNDER PART C. //POST, P. 2242.// A REQUEST FOR BOUNDARY REVISION SHALL BE MADE ONLY AFTER CONSULTATION WITH THE GOVERNOR OF THE APPROPRIATE STATE OR STATES, THE ENTITIES REFERRED TO IN PARAGRAPH (2), THE APPROPRIATE DESIGNATED HEALTH SYSTEMS AGENCIES, AND THE APPROPRIATE ESTABLISHED STATEWIDE HEALTH COORDINATING COUNCIL AND SHALL INCLIDE THE COMMENTS CONSERNING THE REVISION MADE BY THE ENTITIES CONSULTED IN REQUESTING THE REVISION.

"(5) WITHIN ONE YEAR AFTER THE DATE OF ENACTMENT OF THIS TITLE THE SECRETARY SHALL COMPLETE THE PROCEDURES FOR THE INITIAL ESTABLISHMENT OF THE BOUNDARIES OF HEALTH SERVICE AREAS WHICH (EXCEPT AS PROVIDED IN SECTION 1535) //POST, P. 2256.// INCLUDE THE GEOGRAPHIC AREA OF ALL THE STATES.

"(C) NOTWITHSTANDING ANY OTHER REQUIREMENT OF THIS SECTION, AN AREA--'

"(1) FOR WHICH HAS BEEN DEVELOPED A COMPREHENSIVE REGIONAL, METROPOLITAN AREA, OR OTHER LOCAL AREA PLAN REFERRED TO IN SECTION 314(B), AND //42 USC 246.//

"(2) WHICH OTHERWISE MEETS THE REQUIREMENTS OF SUBSECTION (A), SHALL BE DESIGNATED BY THE SECRETARY AS A HEALTH SERVICE AREA UNLESS THE GOVERNOR OF ANY STATE IN WHICH SUCH AREA IS LOCATED, UPON A FINDING THAT ANOTHER AREA IS A MORE APPROPRIATE REGION FOR THE EFFECTIVE PLANNING AND DEVELOPMENT OF HEALTH RESOURCES, WAIVES SUCH REQUIREMENT.

"HEALTH SYSTEMS AGENCIES //42 USC 300L-1.//

"SEC. 1512. (A) DEFINITION.--FOR PURPOSES OF THIS TITLE, THE TERM 'HEALTH SYSTEMS AGENCY' MEANS AN ENTITY WHICH IS ORGANIZED AND OPERATED IN THE MANNER DESCRIBED IN SUBSECTION (B) AND WHICH IS CAPABLE, AS DETERMINED BY THE SECRETARY, OF PERFORMING EACH OF THE FUNCTIONS DESCRIBED IN SECTION 1513. THE SECRETARY SHALL BY REGUALTION ESTABLISH STANDARDS AND CRITERIA FOR THE REQUIREMENTS OF SUBSECTION (B) AND SECTION 1513.

"(B)(1) LEGAL STRUCTURE.--A HEALTH SYSTEMS HEALTH AGENCY FOR A HELATH SERVICE AREA SHALL BE--'

"(A) A NONPROFIT PRIVATE CORPORATION (OR SIMILAR LEGAL MECHANISM SUCH AS A PUBLIC BENEFIT CORPORATION) WHICH IS INCORPORATED IN THE STATE IN WHICH THE LARGEST PART OF THE POPULATION OF THE HEALTHSERVICE AREA RESIDES, WHICH IS NOT A SUBSIDARY OF, OR OTHERWISE CONTROLLED BY, ANY OTHER PRIVATE OR PUBLIC CORPORATION OR OTHER LEGAL ENTITY, AND WHICH ONLY ENGAGES IN HEALTH PLANNING AND DEVELOPMENT FUNCTIONS;

"(B) A PUBLIC REGIONAL PLANNING BODY IF (I) IT HAS A GOVERNING BOARD COMPOSED OF A MAJORITY OF ELECTED OFFICIALS OF UNITES OF GENERAL LOCAL GOVERNMENT OR IT IS AUTHORIZED BY STATE LAW (IN EFFECT BEFORE THE DATE OF ENACTMENT OF THIS SUBSECTION) TO CARRY OUT HEALTH PLANNING AND REVIEW FINCTIONS SUCH AS THOSE DESCRIBED IN SECTION 1513, AND (II) ITS PLANNING AREA IS IDENTICAL TO THE HEALTH SERVICE AREA; OR

"(C) A SINGLE UNIT OF GENERAL LOCAL GOVERNMENT IF THE AREA OF THE JURISDICTION OF THAT UNIT IS IDENTICAL TO THE HEALTH SERVICE AREA.

A HEALTH SYSTEMS AGENCY MAY NOT BE AN EDUCATIONAL INSTITUTION OR OPERATE SUCH AN INSTITUTION.

"(2) STAFF.--'

"(A) EXPERTISE.--A HEALTH SYSTEMS AGENCY SHALL HAVE A STAFF WHICH PROVIDES THE AGENCY WITH EXPERTISE IN AT LEAST THE FOLLOWING: (I) ADMINISTRATION, (II) THE GATHERING AND ANALYSIS OF DATA, (III) HEALTH PLANNING, AND (IV) DEVELOPMENT AND USE OF HEALTH RESOURCES. THE FUNCTIONS OF PLANNING AND OF DEVELOPMENT OF HEALTH RESOURCES SHALL BE CONDUCTED BY STAFFS WITH SKILLS APPROPRIATE TO EACH FUNCTION.

"(B) SIZE AND EMPLOYMENT.--THE SIZE OF THE PROFESSIONAL STAFF OF ANY HEALTH SYSTEMS AGENCY SHALL BE NOT LESS THAN FIVE, EXCEPT THAT IF THE QUOTIENT OF THE POPULATION (ROUNDED TO THE NEXT HIGHEST ONE HUNDRED THOUSAND) OF THE HEALTH SERVICE AREA WHICH THE AGENCY SERVES DIVIDED BY ONE HUNDRED THOUSAND IS GREATER THAN FIVE, THE MINIMUM SIZE OF THE PROFESSIONAL STAFF SHALL BE THE LESSER OF (I) SUCH QUOTIENT, OR (II) TWENTY-FIVE. THE MEMBERS OF THE STAFF SHALL BE SELECTED, PAID, PROMOTED, AND DISCHARGED IN ACCORDANCE WITH SUCH SYSTEM AS THE AGENCY MAY ESTABLISH, EXCEPT THAT THE RATE OF PAY FOR ANY POSITION SHALL NOT BE LESS THAN THE RATE OF PAY PREVAILING IN THE HEALTH SERVIE AREA FOR SIMILAR POSITIONS IN OTHER PUBLIC OR PRIVATE HEALTH SERVICE ENTITIES. IF NECESSARY FOR THE PERFORMANCE OF ITS FUNCTIONS, A HEALTH SYSTEMS AGENCY MAY EMPLOY CONSULTANTS AND MAY CONTRACT WITH INDIVIDUALS AND ENTITIES FOR THE PROVISION OF SERVICES. COMPENSATION FOR CONSULTANTS AND FOR CONTRACTED SERVICES SHALL BE ESTABLISHED IN ACCORDANCE WITH STANDARDS ESTABLISHED BY REGULATION BY THE SECRETARY.

"(3) GOVERNING BODY.--'

"(A) IN GENERAL.--A HEALTH SYSTEMS AGENCY WHICH IS A PUBLIC REGIONAL PLANNING BODY OR UNIT OF GENERAL LOCAL GOVERNMENT SHALL, IN ADDITION TO ANY OTHER GOVERNING BODY, HAVE A GOVERNING BODY FOR HEALTH PLANNING, WHICH IS ESTABLISHED IN ACCORDANCE WITH SUBPARAGRAPH (C), WHICH SHALL HAVE THE RESPONSIBILITIES PRESCRIBED BY SUBPARAGRAPH (B), AND WHICH HAS EXCLUSIVE AUTHORITY TO PERFORM FOR THE AGENCY THE FUNCTIONS DESCRIBED IN SECTION 1513. ANY OTHER HEALTH SYSTEMS AGENCY SHALL HAVE A GOVERNING BODY COMPOSED, IN ACCORDANCE WITH SUBPARAGRAPH (C), OF NOT LESS THAN TEN MEMBERS AND OF NOT MORE THAN THIRTY MEMBERS, EXCEPT THAT THE NUMBER OF MEMBERS MAY EXCEED THIRTY IF THE GOVERNING BODY HAS ESTABLISHED ANOTHER UNIT (REFERRED TO IN THIS PARAGRAPH AS AN 'EXECUTIVE COMMITTEE') COMPOSED, IN ACCORDANCE WITH SUBPARAGRAPH (C), OF NOT MORE THAN TWENTY-FIVE MEMBERS OF THE GOVERNING BODY AND HAS DELEGATED TO THAT UNIT THE AUTHORITY TO TAKE SUCH ACTION (OTHER THAN THE ESTABLISHMENT AND REVISION OF THE PLANS REFERRED TO IN SUBPARAGRAPH (B)(II)) AS THE GOVERNING BODY IS AUTHORIZED TO TAKE.

"(B) RESONSIBILITIES.--THE GOVERNING BODY--'

"(I) SHALL BE RESPONSIBLE FOR THE INTERNAL AFFAIRS OF THE HEALTH SYSTEMS AGENCY, INCLUDING MATTERS RELATING TO THE STAFF OF THE AGENCY, THE AGENCY'S BUDGET, AND PROCEDURES AND CRITERIA (DEVELOPED AND PUBLISHED PURSUANT TO SECTION 1532) //POST, P. 2251.// APPLICABLE TO ITS FUNCTIONS UNDER SUBSECTIONS (E), (F), AND (G) OF SECTION 1513;

"(II) SHALL BE RESPONSIBLE FOR THE ESTABLISHMENT OF THE HEALTH SYSTEMS PLAN AND ANNUAL IMPLEMENTATION PLAN REQUIRED BY SECTION 1513(B);

"(III) SHALL BE RESPONSIBLE FOR THE APPROVAL OF GRANTS AND CONTRACTS MADE AND ENTERED INTO UNDER SECTION 1513 (C)(3);

"(IV) SHALL BE RESPONSIBLE FOR THE APPROVAL OF ALL ACTIONS TAKEN PURSUANT TO SUBSECTIONS (E), (F), (G), AND (H), OF SECTION 1513F

"(V) SHALL (I) ISSUE AN ANNUAL REPORT CONCERNING THE ACTIVITIES OF THE AGENCY, (II) INCLUDE IN THAT REPORT THE HEALTH SYSTEMS PLAN AND ANNUAL IMPLEMENTATION PLAN DEVELOPED BY THE AGENCY, AND A LISTING OF THE AGENCY'S INCOME, EXPENDITURES, ASSETS, AND LIABILITIES, AND (III) MAKE THE REPORT READILY AVAILABLE TO THE RESIDENTS OF THE HEALTH SERVICE AREA AND THE VARIOUS COMMUNICATIONS MEDIA SERVING SUCH AREA;

"(VI) SHALL REIMBURSE ITS MEMBERS FOR THEIR REASONABLE COSTS INCURRED IN ATTENDING MEETINGS OF THE GOVERNING BODY;

"(VII) SHALL MEET AT LEAST ONCE IN EACH CALENDAR QUARTER OF A YEAR AND SHALL MEET AT LEAST TWO ADDITIONAL TIMES IN A YEAR UNLESS ITS EXECUTIVE COMMITTEE MEETS AT LEAST TWICE IN THAT YEAR; AND

"(VIII) SHALL (I) CONDUCT ITS BUSINESS MEETINGS IN PUBLIC, (II) GIVE ADEQUATE NOTICE TO THE PUBLIC OF SUCH MEETINGS, AND (III) MAKE ITS RECORDS AND DATA AVAILABLE, UPON REQUEST TO THE PUBLIC. THE GOVERNING BODY (AND EXECUTIVE COMMITTEE (IF ANY)) OF A HEALTH SYSTEMS AGENCY SHALL ACT ONLY BY VOTE OF A MAJORITY OF ITS MEMBERS PRESENT AND VOTING AT A MEETING CALLED UPON ADEQUATE NOTICE TO ALL OF ITS MEMBERS AND AT WHICH A QUORUM IS IN ATTENDANCE. A QUORUM FOR A GOVERNING BODY AND EXECUTIVE COMMITTEE SHALL NOT BE LESS THAN ONE-HALF OF ITS MEMBERS.

"(C) COMPOSITION.--THE MEMBERSHIP OF THE GOVERNING BODY AND THE EXECUTIVE COMMITTEE (IF ANY) OF AN AGENCY SHALL MEET THE FOLLOWING REQUIREMENTS:

"(I) A MAJORITY (BUT NOT MORE THAN 60 PER CENTUM OF THE MEMBERS) SHALL BE RESIDENTS OF THE HEALTH SERVICE AREA SERVED BY THE ENTITY WHO ARE CONSUMERS OF HEALTH CARE AND WHO ARE NOT (NOR WITHIN THE TWELVE MONTHS PRECEDING APPOINTMENT BEEN) PROVIDERS OF HEALTH CARE AND WHO ARE BROADLY REPRESENTATIVE OF THE SOCIAL, ECONOMIC, LINGUISTIC AND RACIAL POPULATIONS, GEOGRAPHIC AREAS OF THE HEALTH SERVICE AREA, AND MAJOR PURCHASERS OF HEALTH CARE.

"(II) THE REMAINDER OF THE MEMBERS SHALL BE RESIDENTS OF THE HEALTH SERVICE AREA SERVED BY THE AGENCY WHO ARE PROVIDERS OF HEALTH CARE AND WHO REPRESENT (I) PHYSICIANS (PARTICULARLY PRACTICING PHYSICIANS), DENTISTS, NURSES, AND OTHER HEALTH PROFESSIONALS, (II) HEALTH CARE INSTITUTIONS (PARTICULARLY HOSPITALS, LONG-TERM CARE FACILITIES, AND HEALTH MAINTENANCE ORGANIZATIONS), (III) HEALTH CARE INSURERS, (IV) HEALTH PROFESSIONAL SCHOOLS, AND (V) THE ALLIED HEALTH PROFFESSIONS. NOT LESS THAN ONE-THIRD OF THE PROVIDERS OF HEALTH CARE WHO ARE MEMBERS OF THE GOVERNING BODY OR EXECUTIVE COMMITTEE OF A HELATH SYSTEMS AGENCY SHALL BE DIRECT PROVIDERS OF HEALTH CARE (AS DESCRIBED IN SECTION 1531 (3)).

"(III) THE MEMBERSHIP SHALL---

"(I) INCLUDE (EITHER THROUGH CONSUMER OR PROVIDER MEMBERS) PUBLIC ELECTED OFFICIALS AND OTHER REPRESENTATIVES OF GOVERNMENTAL AUTHORITIES IN THE AGENCY'S HEALTH SERVICE AREA AND REPRESENTATIVES OF PUBLIC AND PRIVATE AGENCIES IN THE AREA CONCERNED WITH HEALTH,

"NII) INCLUDE A PERCENTAGE OF INDIVIDUALS WHO RESIDE IN NONMETROPOLITAN AREAS WITHIN THE HEALTH SERVICE AREA WHICH PERCENTAGE IS EQUAL TO THE PERCENTAGE OF RESIDENTS OF THE AREA WHO RESIDE IN NONMETROPOLITAN AREAS, AND

"(III) IF THE HEALTH SYSTEMS AGENCY SERVES AN AREA IN WHICH THERE IS LOCATED ONE OR MORE HOSPITALS OR OTHER HEALTH CARE FACILITIES OF THE VETERANS' ADMINISTRATION, INCLUDE, AS AN EX OFFICIO MEMBER, AN INDIVIDUAL WHOM THE CHIEF MEDICAL DIRECTOR OF THE VETERANS' ADMINISTRATION SHALL HAVE DESIGNATED FOR SUCH PURPOSE, AND IF THE AGENCY SERVES AN AREA IN WHICH THERE IS LOCATED ONE OR MORE QUALIFIED HEALTH MAINTENANCE ORGANIZATIONS (WITHIN THE MEANING OF SECTION 1310), //42 USC 300E-9.// INCLUDE AT LEAST ONE MEMBER WHO IS REPRESENTATIVE OF SUCH ORGANIZATIONS.

"(IV) IF, IN THE EXERCISE OF ITS FUNCTIONS, A GOVERNING BODY OR EXECUTIVE COMMITTEE APPOINTS A SUBCOMMITTEE OF ITS MEMBERS OR AN ADVISORY GROUP, IT SHALL, TO THE EXTENT PRACTICABLE, MAKE ITS APPOINTMENTS TO ANY SUCH SUBCOMMITTEE OR GROUP IN SUCH A MANNER AS TO PROVIDE THE REPRESENTATION ON SUCH SUBCOMMITTEE OR GROUP DESCRIBED IN THIS SUBPARAGRAPH.

"(4) INDIVIDUAL LIABILITY.--NO INDIVIDUAL WHO, AS A MEMBER OR EMPLOYEE OF A HEALTH SYSTEMS AGENCY, SHALL, BY REASON OF HIS PERFORMANCE OF ANY DUTY, FUNCTION, OR ACTIVITY REQUIRED OF, OR AUTHORIZED TO BE UNDERTAKEN BY, THE AGENCY UNDER THIS TITLE, BE LIABLE FOR THE PAYMENT OF DAMAGES UNDER ANY LAW OF THE UNITED STATES OR NAY STATE (OR POLITICAL SUBDIVISION THEREOF) IF HE HAS ACTED WITHIN THE SCOPE OF SUCH DUTY, FUNCTION, OR ACTIVITY, HAS EXERCISED DUE CARE, AND HAS ACTED, WITH RESPECT TO THAT PERFORMANCE, WITHOUT MALICE TOWARD ANY PERSON AFFECTED BY IT.

"(5) PRIVATE CONTRIBUTIONS.--NO HEALTH SYSTEMS AGENCY 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 TH EINTERNAL REVENUE CODE OF 1954 //26 USC 509.// AND IS NOT DIRECTLY ENGAGED IN THE PROVISION OF HEALTH CARE IN THE HEALTH SERVICE AREA OF THE AGENCY. FOR PURPOSES OF THIS PARAGRAPH, AN ENTITTY SHALL NOT BE CONSIDERED TO HAVE SUCH AN INTEREST SOLELY ON THE BASIS OF ITS PROVIDING (DIRECTLY OR INDIRECTLY) HEALTH CARE FOR ITS EMPLOYEES.

"(6) OTHER REQUIREMENTS.--EACH HEALTH SYSTEM AGENCY SHALL--'

"(A) MAKE SUCH REPORTS, IN SUCH FORM AND CONTAINING SUCH INFORMATION, CONCERNING ITS STRUCTURE, OPERATIONS, PERFORMANCE OF FUNCTIONS, AND OTHER MATTERS AS THE SECRETARY MAY FROM TIME TO TIME REQUIRE, AND KEEP SUCH RECORDS AND AFFORD SUCH ACCESS THERETO AS THE SECRETARY MAY FIND NECESSARY TO VERIFY SUCH REPOPRTS;

"(B) PROVIDE FOR SUCH FISCAL CONTROL AND FUND ACCOUNTING PROCEDURES AS THE SECRETARY MAY REQUIRE TO ASSURE PROPER DISBURSEMENT OF, AND ACCOUNTING FOR, AMOUNTS RECEIVED FROM THE SECRETARY UNDER THIS TITLE AND SECTION 1640; //POST, P. 2273.// AND

(C) PERMIT THE SECRETARY AND THE COMPTROLLER GENERAL OF THE UNITED STATES, OR THE REPRESENTATIVES, TO HAVE ACCESS FOR THE PURPOSE OF AUDIT AND EXAMINATION TO ANY BOOKS, DOCUMENTS, PAPERS, AND RECORDS PERTINENT TO THE DISPOSITION OF AMOUNTS RECEIVED FROM THE SECRETARY UNDER THIS TITLE AND SECTION 1640.

"(C) SUBAREA COUNCILS.--A HEALTH SYSTEMS AGENCY MAY ESTABLISH SUBAREA ADVISORY COUNCILS REPRESENTING PARTS OF THE AGENCIES' HEALTH SERVICE AREA TO ADVISE THE GOVERNING BODY OF THE AGENCY ON THE PERFORMANCE OF ITS FUNCTIONS. THE COMPOSITION OF A SUBAREA ADVISORY COUNCIL SHALL CONFORM TO THE REQUIREMENTS OF SUBSECTION (B)(3)(C).

"FUNCTIONS OF HEALTH SYSTEMS AGENCIES //42 USC 300L-2.//

"SEC. 1513. (A) FOR THE PURPOSE OF--'

"(1) IMPROVING THE HEALTH OF RESIDNETS OF A HEALTH SERVICE AREA,

"(2) INCREASING THE ACCESSIBILITY (INCLUDING OVERCOMING GEOGRAPHIC, ARCHITECTURAL, AND TRANSPORTATION BARRIERS), ACCEPTABILITY, CONTINUITY, AND QUALITY OF THE HEALTH SERVICES PROVIDED THEM,

"(3) RESTRINING INCREASES IN THE COST OF PROVIDING THEM HEALTH SERVICES, AND

"(4) PREVENTING UNNECESSARY DUPLICATIONS OF HEALTH RESOURCES, EACH HEALTH SYSTEMS AGENCY SHALL HAVE AS ITS PRIMARY RESPONSIBILITY THE THE PROVISION OF EFFECTIVE HEALTH PLANNING FOR ITS HEALTH SERVICE AREA AND THE PROMOTION OF THE DEVELOPMENT WITHIN THE AREA OF HELATH SERVICES, MANPOWER, AND FACILITIES WHICH MEET IDENTIFIED NEEDS, REDUCE DOCUMENTED INEFFICIENCES, AND IMPLEMENT THE HEALTH PLANS OF THE AGENCY. TO MEET ITS PRIMARY RESPONSIBILITY, A HEALTH SYSTEMS AGENCY SHALL CARRY OUT THE FUNCTIONS DESCRIBED IN SUBSECTIONS (B) THROUGH (G) OF THIS SECTION.

"(B) IN PROVIDING HELATH PLANNING AND RESOURCES DEVELOPMENT FOR ITS HEALTH SERVICE AREA, A HEALTH SYSTEMS AGENCY SHALL PERFORM THE FOLLOWING FUNCTIONS:

"(1) THE AGENCY SHALL ASSEMBLE AND ANALYZE DATA CONCERNING--'

"(A) THE STATUS (AND DETERMINANTS) OF THE HEALTH OF THE RESIDENTS OF ITS HEALTH SERVICE AREA,

"(B) THE STATUS OF THE HEALTH CARE DELIVERY SYSTEM IN THE AREA AND THE USE OF THAT SYSTEM BY THE RESIDENTS OF THE AREA,

"(C) THE EFFECT THE AREA'S HEALTH CARE DELIVERY SYSTEM HAS ON THE HEALTH OF THE RESIDENTS OF THE AREA,

C(D) THE NUMBER, TYPE, AND LOCATION OF THE AREA'S HEALTH RESOURCES, INCLUDING HEALTH SERVICES, MANPOWER, AND FACILITIES,

"(E) THE PATTERNS OF UTILIZATION OF THE AREA'S HEALTH RESOURCES, AND

"(F) THE ENVIORNMENTAL AND OCCUPATIONAL EXPOSURE FACTORS AFFECTING IMMEDIATE AND LONG-TERM HEALTH CONDITIONS.

IN CARRYING OUT THIS PARAGRAPH, THE AGENCY SHALL TO THE MAXIMUM EXTENT PRACTICABLE USE EXISTING DATA (INCLUDING DATA DEVELOPED UNDER FEDERAL HEALTH PROGRAMS) AND COORDINATE ITS ACTIVITIES WITH THE COOPERATIVE SYSTEM PROVIDED FOR UNDER SECTION 306(E). //42 USC 242D.//

"(2) THE AGENCY SHALL, AFTER APPROPRIATE CONSIDERATION OF THE RECOMMENDED NATIONAL GUIDELINES FOR HEALTH PLANNING POLICY ISSUED BY THE SECRETARY UNDER SECTION 1501, THE PRIORITIES SET FORTH IN SECTION 1502, AND THE DATA DEVELOPED PURSUANT TO PARAGRAPH (1), ESTABLISH, ANNUALLY REVIEW, AND AMEND AS NECESSARY A HEALTH SYSTEMS PLAN (HEREINAFTER IN THIS TITLE REFERRED TO AS THE 'HSP') WHICH SHALL BE A DETAILED STATEMENT OF GOALS (A) DESCRIBING A HEALTHFUL ENVIROMENT AND HEALTH SYSTEMS IN THE AREA WHICH, WHEN DEVELOPED, WILL ASSURE THAT QUALITY HEALTH SERVICES WILL BE AVAILABLE AND ACCESSIBLE IN A MANNER WHICH ASSURES CONTINUITY OF CARE, AT REASONABLE COST, FOR ALL RESIDENTS OF THE AREA; (B) WHICH ARE RESPONSIVE TO THE UNIQUE NEEDS AND RESOURCES OF THE AREA; AND (C) WHICH TAKE INTO ACCOUNT AND IS CONSISTENT WITH THE NATIONAL GUIDELINES FOR HEALTH PLANNING POLICY ISSUED BY THE SECRETARY UNDER SECTION 1501 RESPECTING SUPPLY, DISTRIBUTION, AND ORGANIZATION OF HEALTH RESOURCES AND SERVICES. BEFORE ESTABLISHING AN HSP, A HEALTH SYSTEMS AGENCY SHALL CONDUCT A PUBLIC HEARING ON THE PROPOSED HSP AND SHALL GIVE INTERESTED PERSONS AN OPPORUNITY TO SUBMIT THEIR VIEWS ORALLY AND IN WRITING. NOT LESS THAN TIRTY DAYS PRIOR TO SUCH HEARING, THE AGENCY SHALL PUBLISH IN AT LEAST TWO NEWSPAPERS OF GENERAL CIRCULATION THROUGHOUT ITS HEALTH SERVICE AR AREA A NOTICE OF ITS CONSIDERATION OF THE PROPOSED HSP, THE TIME AND PLACE OF THE HEARING, THE PLACE AT WHICH INTERESTED PERSONS MAY CONSULT THE HSP IN ADVANCE OF THE HEARING, AND THE PLACE AND PERIOD DURING WHICH TO SUBMIT WRITTEN COMMENTS TO THE AGENCY ON THE HSP.

"(3) THE AGENCY SHALL ESTABLISH, ANNUALLY REVIEW, AND AMEND AS NECESSARY AN ANNUAL IMPLEMENTATION PLAN (HEREINAFTER IN THIS TITLE REFERRED TO AS THE 'AIP') WHICH DESCRIBES OBJECTIVES WHICH WILL ACHIEVE THE GOALS OF THE HSP AND PRIORITIES AMONG THE OBJECTIVES. IN ESTABLISHING THE AIP, THE AGENCY SHALL GIVE PRIORITY TO THOSE OBJECTIVES WHICH WILL MAXIMALLY IMPROVE THE HEALTH OF THE RESIDENTS OF THE AREA, AS DETERMINED ON THE BASIS OF THE RELATION OF THE COST OF ATTAINING SUCH OBJECTIVES TO THEIR BENEFITS, AND WHICH ARE FITTED TO THE SPECIAL NEEDS OF THE AREA.

"(4) THE AGENCY SHALL DEVELOP AND PUBLISH SPECIFIC PLANS AND PROJECTS FOR ACHIEVING THE OBJECTIVES ESTABLISHED IN THE AIP.

"(C) A HEALTH SYSTEMS AGENCY SHALL IMPLEMENT ITS HSP AND AIP, AND IN IMPLEMENTING THE PLANS IT SHALL PERFORM AT LEAST THE FOLLOWING FUNCTIONS:

"(1) THE AGENCY SHALL SEEK, TO THE EXTENT PRACTICABLE, TO IMPLEMENT ITS HSP AND AIP WITH THE ASSISTANCE OF INDIVIDUALS AND PUBLIC AND PRIVATE ENTITIES IN ITS HEALTH SERVICE AREA.

"(2) THE AGENCY MAY PROVIDE, IN ACCORDANCE WITH THE PRIORITIES ESTABLISHED IN THE AIP, TECHNICAL ASSISTANCE TO INDICIDUALS AND PUBLIC AND PRIVATE ENTITIES FOR THE DEVELOPMENT OF PROJECTS NAD PROGRAMS WHICH THE AGENCY DETEMRINES ARE NECESSARY TO ACHIEVE THE HEALTH SYSTEMS DESCRIBED IN THE HSP, INCLUDING ASSISTANCE IN MEETING THE REQUIREMENTS OF THE AGENCY PRESCRIBED UNDER SECTION 1532(B).

"(3) THE AGENCY SHALL, IN ACCORDANCE WITH THE PRIORITIES ESTABLISHEDD IN THE AIP, MAKE GRANTS TO PUBLIC AND NONPROFIT PRIVATE ENTITIES AND ENTER INTO CONTRACTS WITH INDIVIDUALS AND PUBLIC AND NONPROFIT PRIVATE ENTITIES TO ASSIST THEM IN PLANNING AND DEVELOPING PROJECTS AND PROGRAMS WHICH THE AGENCY DETERMINES ARE NECESSARY FOR THE ACHIEVEMENT OF THE HEALTH SYSTEMS DESCRIBED IN THE HSP. SUCH GRANTS AND CONTRACTS SHALL BE MADE FROM THE AREA HEALTH SERVICES DEVELOPMENT FUND OF THE AGENCY ESTABLISHED WITH FUNDS PROVIDED UNDER GRANTS MADE UNDER SECTION 1640. //POST, P. 2273.// NO GRANTS OR CONTRACT UNDER THIS SUBSECTION MAY BE USED (A) TO PAY THE COSTS INCURRED BY AN ENTITY OR INDIVIDUAL IN THE DELIVERY OF HELATH SERVICES (AS DEFINED IN REGULATIONS OF THE SECRETARY), OR (B) FOR THE COST OF CONSTRUCTION OR MODERNIZATION OF MEDICAL FACILITIES. NO SONGLE GRANT OR CONTRACT MADE OR ENTERED INTO UNDER THIS PARAGRAPH SHASLL BE AVAILABLE FOR OBLIGATION BEYOND THE ONE YEAR PERIOD BEGINNING ON THE DATE THE GRANT OR CONTRACT WAS MADE OR ENTERED INTP. IF AN INDIVIDUAL OR ENTITY RECEIVES A GRANT OR CONTRACT UNDER THIS PARAGRAPH FOR A PROJECT OR PROGRAM, SUCH INDIVIDUAL OR ENTITY MAY RECEIVE ONLY ONE MORE SUCH GRANT OR CONTRACT FOR SUCH PROGRAM.

"(D) EACH HEALTH SYSTEMS AGENCY SHALL COORDINATE ITS ACTIVITIES WITH--'

"(1) EACH PROFESSIONAL STANDARDS REVIEW ORGANIZATION (DESINGNATED UNDER SECTION 1152 OF THE SOCIAL SECURITY ACT), //42 USC 1320C-1.// "(2) ENTITIES REFERRED TO IN PARAGRAPHS (1) AND (2) OF SECTION 204(A) OF THE DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966 //42 USC 3334.// AND REGIONAL AND LOCAL ENTITIES THE VIEWS OF WHICH ARE REQUIRED TO BE CONSIDERED UNDER REGUALTION PRESCRIBED UNDER SECTION 403 OF THE INTERGOVERNMENTAL COOPERATION ACT OF 1968 TO CARRY OUT SECTION 401(B) OF SUCH ACT, // //42 USC 4233, 4231.//

"(3) OTHER APPROPRIATE GENERAL OR SPECIAL PURPOSE REGIONAL PLANNING OR ADMINISTRATIVE AGENCIES, AND

"(4) ANY OTHER APPROPRIATE ENTITY,

IN THE HEALTH SYSTEM AGENCY'S HELATH SERVICE AREA. THE AGENCY SHALL, AS APPROPRIATE, SECURE DATA FROM THEM FOR USE IN THE AGENCY'S PLANNING AND DEVELOPMENT ACTIVITIES, ENTER INTO AGREEMENTS WITH THEM WHICH WILL ASSURE THAT ACTIONS TAKEN BY SUCH ENTITIES WHICH ALTER THE AREA'S HEALTH SYSTEM WILL BE TAKEN IN A MANNER WHICH IS CONSISTENT WITH THE HSP AND TH EAIP IN EFFECT FOR THE AREA, AND, TO THE EXTENT PRACTICABLE, PROVIDE TECHNICAL ASSISTANCE TO SUCH ENTITIES.

"(E)(1)(A) EXCEPT AS PROVIDED IN SUBPARAGRAPH (B), EACH HEALTH SYSTEMS AGENCY SHALL REVIEW AND APPROVE OR DISAPPROVE EACH PROPOSED USE WITHIN ITS HEALTH SERVICE AREA OF FEDERAL FUNDS--'

"(I) APPROPRIATED UNDER THIS ACT, THE COMMUNITY MENTAL HELATH CENTERS ACT, //42 USC 2681 NOTE.// OR THE COMPREHENSIVE ALCOHOL ABUSE AND ALCOHOLISM PREVENTION, TREATMENT, AND REHABILITATION ACT OF 1970 FOR GRANTS, CONTRACTS, LOANS, OR LOAN GUARANTEES FOR THE DEVELOPMENT, EXPANSION, OR SUPPORT OF HEALTH RESOURCES, //42 USC 4571.// OR

"(II) MADE AVAILABLE BY THE STATE IN EHICH THE HEALTH SERVICE AREA IS LOCATED (FROM AN ALLOTMENT TO THE STATE UNDER AN ACT REFERRED TO IN CLAUSE (I)) FOR GRANTS OR CONTRACTS FOR THE DEVELOPMENT, EXPANSION, OR SUPPORT OF HEALTH RESOURCES.

"(B) A HEALTH SYSTEMS AGENCY SHALL NOT REVIEW AND APPROVE OR DISAPPROVE THE PPROPOSED USE WITHIN ITS HEALTH SERVICE AREA OF FEDERA FUNDS APPROPRIATED FOR GRANTS OR CONTRACTS UNDER TITLE IV, VII, OR VIII OF THIS ACT //42 USC 281, 292, 296.// UNLESS THE GRANTS OR CONTRACTS ARE TO BE MADE, ENTERED INTO, OR USED TO SUPPORT THE DEVELOPMENT OF HEALTH RESOURCES INTENDED FOR USE IN THE HEALTH SERVICE AREA OR THE DELIVERY OF HEALTH SERVICES. IN THE CASE OF A PROPOSED USE WITHIN THE HEALTH SERVICE AREA OF A HEALTHSYSTEMS AGENCY OF FEDERAL FUNDS DESCRIBED IN SUBPARAGRAPH (A) BY AN INDIAN TRIBE OR INTER-TRIBAL INDIAN ORGANIZATION FOR ANY PROGRAM OR PROJECT WHICH WILL BE LOCATED WITHIN OR WILL SPECIFICALLY SERVE--'

"(I) A FEDERALLY-RECOGNIZED INDIAN RESERVATION,

"(II) ANY LAND AREA IN OKLAHOMA WHICH IS HELD IN TRUST BY THE UNITED STATES FOR INDIANS OR WHICH IS A RESTRICTED INDIAN-OWNED LAND AREA, OR

"(III) A NATIVE VILLAGE IN ALASKA (AS DEFINED IN SECTION 3(C) OF THE ALASKA NATIVE CLAIMS SETTLEMENT ACT); //43 USC 1602.//

A HEATLH SYSTEMS AGENCY SHALL ONLY REVIEW AND COMMENT ON SUCH PROPOSED USE.

"(2) NOTWITHSTANDING ANY OPTHER PROVISION OF THIS ACT OR ANY OTHER ACT REFERRED TO IN PARAGRAPH (1), THE SECRETARY SHALL ALLOW A HEALTH SERVICE AREA OF FEDERAL FUNDS DESCRIBED IN PARAGRAPH (1), THE SECRETARY MAY NOT MAKE SUCH FEDERAL FUNDS AVAILABLE FOR SUCH USE UNTIL HE HAS MADE, UPON REQUEST OF THE ENTITY MAKING SUCH PROPOSAL, A REVIEW OF THE AGENCY DECISION. IN MAKINNG ANY SUCH REVIEW OF ANY AGENCY DECISION, THE SECRETARY SHALL FIVE THE APPROPRIATE STATE HEALTH PLANNING AND DEVELOPMENT AGENCY AN OPPORUNITY TO CONSIDER THE DECISION OF THE HEALTHSYSTEMS AGENCY AND TO SUBMIT TO THE SECRETARY ITS COMMENTS ON THE DECISION. THE SECRETARY, AFTER TAKING INTO CONSIDERATION SUCH STATE AGENCY'S COMMENTS (IF ANY), MAY MAKE SUCH FEDERAL FUNDS AVAILABLE FOR SUCH USE, NOTWITHSTANDING THE DISAPPROVAL OF THE HEALTH SYSTEMS AGENCY. EACH SUCH DECISION BY THE SECRETARY TO MAKE FUNDS AVAILABLE SHALL BE SUBMITTED TO THE APPROPRIATE HELATH SYSYTEMS AGENCY AND STATE HELATH PLANNING AND DEVELOPMENT AGENCY AND SHALL CONTAIN A DETAILED STATEMENT OF THE REASONS FOR THE DECISION.

"(3) EACH HELATH SYSTEMS AGENCY SHALL PROVIDE EACH INDIAN TRIBE OR INTER-TRIBAL INDIAN ORGANIZATION WHICH IS LOCATED WITHIN THE AGENCY'S HEALTH SERVICE AREA INFORMATION RESPECTING THE AVAILABILITY OF THE FEDERAL FUNDS DESCRIBED IN THE FIRST SENTENCE OF THIS SUBSECTION.

"(F) TO ASSIST STATE HEALTH PLANNING AND DEVELOPMENT AGENCIES IN CARRYING OUT THEIR FUNCTIONS UNDER PARAGRAPHS (4) AND (5) OF SECTION 1523(A) EACH HEALTH SYSTEMS AGENCY SHALL REVIEW AND MAKE RECOMMENDATIONS TO THE APPROPRIATE STATE HEALTH PLANNING AND DEVELOPMENT AGENCY RESPECTING THE NEED FOR NEW INSTITUTIONAL HEALTH SERVICES PROPOSED TO BE OFFERED OR DEVELOPED IN THE HEALTH SERVICE AREA OF SUCH HEALTH SYSTEMS AGENCY.

"(G)(1) EXCEPT AS PROVIDED IN PARAGRAPH (2), EACH HEALTH SYSTEMS AGENCY SHALL REVIEW ON A PERIODIC BASIS (BUT AT LEAST EVERY FIVE YEARS) ALL INSTITUTIONAL HEALTH SERVICES OFFERED IN THE HEALTH SEVICE AREA OF THE AGENCY AND SHALL MAKE RECOMMENDATIONS TO THE STATE HEALTH PLANNING AND DEVELOPMENT AGENCY DESIGNATED UNDER SECTION 1521 FOR EACH STATE IN WHICH THE HEALTH SYSTEMS AGENCY'S HEALTH SERVICE AREA IS LOCATED RESPECTING THE APPROPRIATENESS IN THE AREA OF SUCH SERVICES.

"(2) A HEALTH SYSTEMS AGENCY SHALL COMPLETE ITS INITIAL REVIEW OF EXISTING INSTITUTIONAL HEALTH SERVICES WITHIN THREE YEARS AFTER THE DATE OF THE AGENCY'S DESIGNATION UNDER SECTION 1515(C).

"(H) EACH HEALTH SYSTEMS AGENCY SHALL ANNUALLY RECOMMEND TO THE STATE HELATH PLANNING AND DEVELOPMENT AGENCY DESIGNATED FOR EACH STATE IN WHICH THE HEALTH SYSTEMS AGENCY'S HEALTH SERVICE AREA IS LOCATED (1) PROJECTS FOR THE MODERNIZATION, CONTRUCTION, AND CONVERSION OF MEDICAL FACILITIES IN THE AGENCY'S HELATH SERVICE AREA WHICH PROJECTS WILL ACHIEVE THE HSP AND AIP OF THE HEALTH SYSTEMS AGENCY, AND (2) PRIORITIES AMONG SUCH PROJECTS.

"ASSISTANCE TO ENTITIES DESIRING TO BE DESIGNATED AS HEALTH SYSTEMS AGENCIES //42 USC 300L-3.//

"SEC. 1514. THE SECRETARY MAY PROVIDE ALL NECESSARY TECHNICAL AND OTHER NONFINANCIAL ASSISTANCE (INCLUDING THE PREPARATION OF PROTOTYPE PLANS OF ORGANIZATION AND OPERATION) TO NONPROFIT PRIVATE ENTITIES (INCLUDING ENTITES PRESENTLY RECEIVING FINANCIAL ASSISTANCE UNDER SECTION 314(B) OR TITLE IX OR AS EXPERIMENTAL HEALTH SERVICE DELIVERY SYSTEMS UNDER SECTION 304) //42 USC 246, 299, 242B.// WHICH--'

"(1) EXPRESS A DESIRE TO BE DESIGNATED AS HEALTH SYSTEMS AGENCIES, AND "(2) THE SECRETARY DETERMINES HAVE A POTENTIAL TO MEET THE REQUIREMENTS OF A HEALTH SYSTEMS AGENCY SPECIFIED IN SECTIONS 1512 AND 1513,

TO ASSIST SUCH ENTITIES IN DEVELOPING APPLICATIONS TO BE SUBMITTED TO THE SECRETARY UNDER SECTION 1515 AND OTHERWISE IN PREPARING TO MEET THE REQUIREMENTS OF THIS PART FOR DESIGNATION AS A HEALTH SYSTEMS AGENCY.

"DESIGNATION OF HEALTH SYSTEMS AGENCIES //42 USC 300L-4.//

"SEC. 1515. (A) AT THE EARLIEST PRACTICABLE DATE AFTER THE ESTABLISHMENT UNDER SECTION 1511 OF HEALTH SERVICE AREAS (BUT NOT LATER THAN EIGHTEEN MONTHS AFTER THE DATE OF ENACTMENT OF THIS TITLE) THE SECRETARY SHALL ENTER INTO AGREEMENTS IN ACCORDANCE WITH THIS SECTION FOR THE DESIGNATION OF HEALTH SYSTEMS AGENCIES FOR SUCH AREAS.

"(B)(1) THE SECRETARY MAY ENTER INTO AGREEMENTS WITH ENTITIES UNDER WHICH THE ENTITES WOULD BE DESIGNATED AS THE HEALTH SYSTEMS AGENCIES FOR HEALTH SERVICE AREAS ON A CONDITIONAL BASIS WITH A VIEW TO DETERMINING THEIR ABILITY TO MEET THE REQUIREMENTS OF SECTION 1512 (B), AND THEIR CAPACITY TO PERFORM THE FUNCTIONS PRESCRIBED BY SECTION 1513.

"(2) DURING ANY PERIOD OF CONDITIONAL DESIGNATION (WHICH MAY NOT EXCEED 24 MONTHS), THE SECRETARY MAY REQUIRE THAT THE ENTITY CONDITIONALLY DESIGNATED MEET ONLY SUCH OF THE REQUIREMENTS OF SECTION 1512(B) AND PERFORM ONLY SUCH OF THE FUNCTIONS PRESCRIBED BY SECTION 1513 AS HE DETERMINES SUCH ENTITY TO BE CAPABLE OF MEETING AND PERFORMING. THE NUMBER AND TYPE OF SUCH REQUIREMENTS AND FUNCTIONS SHALL, DURING THE PERIOD OF CONDITIONAL DESIGNATION, BE PROGRESSIVELY INCREASED AS THE ENTITY CONDITIONALLY DESIGNATED BECOMES CAPABLE OF ADDED RESPONSIBILITY SO THAT, BY THE END OF SUCH PERIOD, THE AGENCY MAY BO CONSIDERED FOR DESIGNATION UNDER SUBSECTION (C).

"(3) ANY AGREEMENT UNDER WHICH ANY ENTITY IS CONDITIONALLY DESIGNATED AS A HEALTH SYSTEMS AGENCY MAY BE TERMINATED BY SUCH ENTITY UPON NINETY DAYS NOTICE TO THE SECRETARY OR BY THE SECRETARY UPON NINETY DAYS NOTICE TO SUCH ENTITY.

"(4) THE SECRETARY MAY NOT ENTER INTO AN AGREEMENT WITH ANY ENTITY UNDER PARAGRAPH (1) FOR CONDITIONAL DESIGNATION AS A HEALTH SYSTEMS AGENCY FOR A HEALTH SERVICE AREA UNTIL--'

"(A) THE ENTITY HAS SUBMITTED AN APPLICATION FOR SUCH DESIGNATION WHICH CONTAINS ASSURANCES SATISFACTORY TO THE SECRETARY THAT UPON COMPLETION OF THE PERIOD OF CONDITIONAL DESIGNATION THE APPLICANT WILL BE ORGANIZED AND OPERATED IN THE MANNER DESCRIBED IN SECTION 1512(B) AND WILL BE QUALIFIED TO PERFORM THE FUNCTIONS PRESCRIBED BY SECTION 1513;

"(B) A PLAN FOR THE ORDERLY ASSUMPTION AND IMPLEMENTATION OF THE FUNCTIONS OF A HEALTH SYSTEMS AGENCY HAS BEEN RECEIVED FROM THE APPLICANT AND APPROVED BY THE SECRETARY; AND

"(C) THE SECRETARY HAS CONSULTED WITH THE GOVERNOR OF EACH STATE IN WHICH SUCH HEALTH SERVICE AREA IS LOCATED AND WITH SUCH OTHER STATE AND LOCAL OFFICIALS AS HE MAY DEEM APPROPRIATE, WITH RESPECT TO SUCH DESIGNATION.

IN CONSIDERING SUCH APPLICATIONS, THE SECRETARY SHALL GICE PRIORITY TO AN APPLICATION WHICH HAS BEEN RECOMMENDED FOR APPROVAL BY EACH ENTITY WHICH HAS DEVELOPED A PLAN REFERRED TO IN SECTION 314(B) //42 USC 246.// FOR ALL OR PART OF THE HEALTH SERVICE AREA WITH RESPECT TO WHICH THE APPLICATION WAS SUBMITTED, AND WACH REGIONAL MEDICAL PROGRAM ESTABLISHED IN SUCH AREA UNDER TITLE IX. //42 USC 299.//

"(C)(1) THE SECRETARY SHALL ENTER INTO AN AGREEMENT WITH AN ENTITY FOR ITS DESIGNATION AS A HEALTH SYSTEMS AGENCY IF, ON THE BASIS OF AN APPLICATION UNDER PARAGRAPH (2) (AND, IN THE CASE OF AN ENTITY CONDITIONALLY DESIGNATED, ON THE BASIS OF ITS PERFORMANCE DURING A PERIOD OF CONDITIONAL DESIGNATION UNDER SUBSECTION (B) AS A HEALTH SYSTEMS AGENCY FOR A HEALTH SERVICE AREA), THE SECRETARY DETERMINES THAT SUCH ENTITY IS CAPABLE OF FULFILLING, IN A SATISFACTORY MANNER, THE REQUIREMENTS AND FUNCTIONS OF A HEALTH SYSTEMS AGENCY. ANY SUCH AGREEMENT UNDER THIS SUBSECTION WITH AN ENTITY MAY BE RENEWED IN ACCORDANCE WITH PARAGRAPH (3), SHALL CONTAIN SUCH PROVISIONS RESPECTING THE REQUIREMENTS OF SECTIONS 1512(B) AND 1513 AND SUCH CONDITIONS DESIGNED TO CARRY OUT THE PURPOSE OF THIS TITLE, AS THE SECRETARY MAY PRESCRIBE, AND SHALL BE FOR A TERM OF NOT TO EXCEED TWELVE MONTHS; EXCEPT THAT, PRIOR TO THE EXPIRATION OF SUCH TERM, SUCH AGREEMENT MAY BE TERMINATED--'

"(A) BY THE ENTITY AT SUCH TIME AND UPON SUCH NOTICE TO SECRETARY AS HE MAY BY REGULATION PRESCRIBE, OR

"(B) BY THE SECRETARY AT SUCH TIME AND UPON SUCH NOTICE TO THE ENTITY AS THE SECRETARY MAY BE REGULATION PRESCRIBE, IF THE SECRETARY DETERMINES THAT THE ENTITY IS NOT COMPLYING WITH OR EFFECTIVELY CARRYING OUT THE PROVISIONS OF SUCH AGREEMENT.

"(2) THE SECRETARY MAY NOT ENTER INTO AN AGREEMENT WITH ANY ENTITY UNDER PARAGRAPH (1) FOR DESIGNATION AS A HEALTH SYSTEMS AGENCY FOR A HEALTH SERVICE AREA UNLESS THE ENTITY HAS SUBMITTED AN APPLICATION TO THE SECRETARY FOR DESIGNATION AS A HEALTH SYSTEMS AGENCY, AND THE GOVERNOR OF EAHC STATE IN WHICH THE AREA IS LOCATED HAS BEEN CONSULTED RESPECTING SUCH DESIGNATION OF SUCH ENTITY. SUCH AN APPLICATION SHALL CONTAIN ASSURANCES SATISFACTORY TO THE SECRETARY THAT THE APPLICANT MEETS THE REQUIREMENTS OF SECTION 1512(B) AND IS QUALIFIED TO PERFORM OR IS PERFORMING THE FUNCTIONS PRESCRIBED BY SECTION 1513. IN CONSIDERING SUCH APPLICATIONS, THE SECRETARY SHALL GIVE PRIORITY TO AN APPLICATION WHICH HAS BEEN RECOMMENDED FOR APPROVAL BY (A) EACH ENTOTY WHICH HAS DEVELOPED A PLAN REDERRED TO IN SECTION 314(B) //42 USC 246.// FOR ALL OR PART OF THE HEALTH SERVICE AREA WITH RESPECT TO WHICH THE APPLICATION WAS SUBMITTED, AND (B) EACH REGIONAL MEDICAL PROGRAM ESTABLISHED IN SUCH AREA UNDER TITLE IX. //42 USC 299.//

"(3) AN AGREEMENT UNDER THIS SUBSECTION FOR THE DESIGNATION OF A HEALTH SYSTEMS AGENCY MAY BE RENEWED BY THE SECRETARY FOR A PERIOD NOT TO EXCEED TWELVE MONTHS IF UPON REVIEW (AS PROVIDED IN SECTION 1535) //POST, P. 2259.// OF THE AGENCY'S OPERATION AND PERFORMANCE OF ITS FUNCTIONS, HE DETERMINES THAT IT HAS FULFILLED, IN A SATISFACTORY MANNER, THE FUNCTIONS OF A HEALTH SYSTEMS AGENCY PRESCRIBED BY SECTION 1513 AND CONTINUES TO MEET THE REQUIREMENTS OF SECTION 1512(B).

"(D) IF A DESIGNATION UNDER SUBSECTION (B) OR (C) OF A HELATH SYSTEMS AGENCY FOR A HEALTH SERVICES AREA IS TERMINATED BEFORE THE DATE PRESCRIBED FOR ITS EXPIRATION, THE SECRETARY SHALL, UPON APPLICATION AND IN ACCORDANCE WITH SUBSECTION (B) OR (C) (AS THE SECRETARY DETERMINES APPROPRIATE), ENTER INTO A DESIGNATION AGREEMENT WITH ANOTHER ENTITY TO BE THE HEALTH SYSTEMS AGENCY FOR SUCH AREA.

"PLANNING GRANTS //42 USC 300L-5.//

"SEC. 1516. (A) THE SECRETARY SHALL MAKE IN EACH FISCAL YEAR A GRANT TO EACH HELATH SYSTEMS AGENCY WITH WHICH THERE IS IN EFFECT A DESIGNATION AGREEMENT UNDER SUBSECTION (B) OR (C) OF SECTION 1515. A GRANT UNDER THIS SUBSECTION SHALL BE MADE ON SUCH CONDITIONS AS THE SECRETARY DETERMINES IS APPROPRIATE, SHALL BE USED BY A HEALTH SYSTEMS AGENCY FOR COMPENSATION OF AGENCY PERSONNEL, COLLECTION OF DATA, PLANNING, AND THE PERFORMANCE OF THE FUNCTIONS OF THE AGENCY, AND SHALL BE AVAILABLE FOR OBLIGATION FOR A PERIOD NOT TO EXCEED THE PERIOD FOR WHICH ITS DESIGNATION AGREEMENT IS ENTERED INTO OR RENEWED (AS THE CASE MAY BE). A HEALTH SYSTEMS AGENCY MAY USE FUNDS UNDER AGRANT UNDER THIS SUBSECTION TO MAKE PAYMENTS UNDER CONTRACTS WITH OTHER ENTITIES TO ASSIST THE HEALTH SYSTEMS AGENCY IN THE PERFORMANCE OF ITS FUNCTIONS; BUT IT SHALL NOT USE FUNDS UNDER SUCH A GRANT TO MAKE PAYMENTS UNDER A GRANT OR CONTRACT WITH ANOTHER ENTITY FOR THE DEVELOPMENT OF DELIVERY OF HEALTH SERVICES OR RESOURCES.

"(B)(1) THE MAOUNT OF ANY GRANT UNDER SUBSECTION (A) TO A HEALTH SYSTEMS AGENCY DESIGNATED UNDER SECTION 1515(B) SHALL BE DETERMINED BY THE SECRETARY. THE AMOUNT OF ANY GRANT UNDER SUBSECTION (A) TO ANY HEALTH SYSTEMS AGENCY DESIGNATED UNDER SECTION 1515(C) SHALL BE THE LESSER OF--'

(A) THE PRODUCT OF $0.50 AND THE POPULATION OF THE HEALTH SERVICE AREA FOR WHICH THE AGENCY IS DESIGNATED, OR

"(B) $3,750,000,

UNLESS THE AGENCY WOULD RECEIVE A GREATER AMOUNT UNDER PARAGRAPH (2) OR (3).

"(2)(A) IF THE APPLICATION OF A HEALTH SYSTEMS AGENCY FOR SUCH A GRANT CONTAINS ASSURANCES SATISFACTORY TO THE SECRETARY THAT THE AGENCY WILL EXPEND OR OBLIGATE IN THE PERIOD IN WHICH SUCH GRANT WILL BE AVAILABLE FOR OBLIGATION NON-FEDERAL FUNDS MEETING THE REQUIREMENTS OF SUBPARAGRAPH (B) FOR THE PURPOSES FOR WHICH SUCH GRANT MAY BE MADE, THE AMOUNT OF SUCH GRANT SHALL BE THE SUM OF--'

"(I) THE AMOUNT DETERMINED UNDER APRAGRAPH (1), AND

"(II) THE LESSER OF (I) THE AMOUNT OF SUCH NON-FEDERAL FUNDS WITH RESPECT TO WHICH THE ASSURANCES WERE MADE, OR (II) THE PRODUCT OF $0.25 AND THE POPULATION OF THEHEALTH SERVICE AREA FOR WHICH THE AGENCY SI DESIGNATED.

"(B) THE NON-FEDERAL FUNDS WHICH AN AGENCY MAY USE FOR THE PURPOSE OF OBTAINING A GRANT UNDER SUBSECTION (A) WHICH IS COMPUTED ON THE BASIS OF THE FORMULA PRESCRIBED BY SUBPARAGRAPH (A) SHALL--'

"(I) NOT INCLUDE ANY FUNDS CONTRIBUTED TO THE AGENCY FOR THE PERFORMANCE OF PARTICULAR SERVICES BY IT AND WHICH ARE OTHERWISE CONTRIBUTED TO THE AGENCY WITHOUT CONDITIONS AS TO THEIR USE OTHER THAN THE CONDITION THAT THE FUNDS SHALL BE USED FOR THE PURPOSES FOR WHICH A GRANT MADE UNDER THIS SECTION MAY BE USED.

"(3) THE AMOUNT OF A GRANT UNDER SUBSECTION (A) TO A HEALTH SYSTEMS AGENCY DESIGNATED UNDER SECTION 1515(C) MAY NOT BE LESS THAN $175,000.

"(C)(1) FOR THE PURPOSE OF MAKING PAYMENTS PURSUANT TO GRNATS MADE UNDER SECTION (A), THERE ARE AUTHORIZED TO BE APPROPRIATED $60,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1975, $90,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1976, AND $125,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1977.

"(2) NOTWITHSTANDING SUBSECTION (B), IF THE TOTAL OF THE GRANTS TO BE MADE UNDER THIS SECTION TO HEALTH SYSTEMS AGENCIES FOR ANY FISCAL YEAR EXCEEDS THE TOTAL OF THE AMOUNT APPROPRIATED UNDER PARAGRAPH (1) FOR THAT FISCLA YEAR, THE AMOUNT OF THE GRANT FOR THAT FISCLA YEAR TO EACH HEALTH SYSTEMS AGENCY SHALL BE AN AMOUNT WHICH BEARS THE SAME RATIO TO THE AMOUNT DETERMINED FOR THAT AGENCY FOR THAT FISCAL YEAR UNDER SUBSECTION (B) AS THE TOTAL OF THE AMOUNT APPROPRIATED UNDER PARAGRPAH (1) FOR THAT FISCAL YEAR BEARS TO THE TOTAL AMOUNT REQUIRED TO MAKE GRANTS TO ALL HEALTH SYSTEMS AGENCIES IN ACCORDANCE WITH THE APPLICAVLE PROVISON OF SUBSECTION (B); EXCEPT THAT THE AMOUNT OF ANY GRANT TO A HELATH SYSTEMS AGENCY FOR NAYFISCAL YEAR SHALL NOT BE LESS THAN $175,000, UNLESS THE AMOUNT APPROPRIATED FOR THAT FISCAL YEAR UNDER PARAGRAPH (1) IS LESS THAN THE AMOUNT REQUIRED TO MAKE SUCH A GRANT TO EACH HEALTH SYSTEMS AGENCY.

"PART C--STATE HEALTH PLANNING AND DEVELOPMENT "DESIGNATION OF STATE HEALTH PLANNING AND DEVELOPMENT AGENCIES //42 USC 300M.//

"SEC. 1521. (A) FOR THE PURPOSE OF THE PERFORMANCE WITHIN EACH STATE OF THE HEALTH PLANNING AND DEVELOPMENT FUNCTIONS PRESCRIBED BY SECTION 1523, THE SECRETARY SHALL ENTER INTO AND RENEW AGREEMENTS (DESCRIBED IN SUBSECTION (B)) FOR THE DESIGNATIPON OF A STATE HEALTH PLANNING AND DEVELOPMENT AGENCY FOR EACY STATE OTHER THAN A STATE FOR WHICH THE SECRETARY MAY NOT UNDER SUBSECTION (D) ENTER INTO, CONTINUE IN EFFECT, OR RENEW SUCH AN AGREEM,ENT.

"(B)(1) A DESIGNATION AGREEMENT UNDER SUBSECTION (A) IS AN AGREEMENT WITH THE GOVERNOR OF A STATE FOR THE DESIGNATION OF AN AGENCY (SELECTED BY THE GOVERNOR) OF THE GOVERNMENT OF THAT STATE AS THE STATE HELATH PLANNING AND DEVELOPMENT AGENCY (HEREINAFTER IN THIS PART REFERRED TO AS THE 'STATE AGENCY') TO ADMINISTER THW STATE ADMINISTRATIVE PROGRAM PRESCRIBED BY SECTION 1522 AND TO CARRY OUT THE STATE'S HEALTH PLANNING AND DEVELOPMENT FUNCTIONS PRESCRIBED BY SECTION 1523. THE SECRETARY MAY NOT ENTER INTO SUCH AN AGREEMENT WITH THE GOVERNOR OF A STATE UNLESS--'

"(A) THERE HAS BEEN SUBMITTED BY THE STATE A STATE ADMINISTRATIVE PROGRAM WHICH HAS BEEN APPROVED BY THE SECRETARY,

"(B) AN APPLICATION HAS BEEN MADE TO THE SECRETARY FOR SUCH AN AGREEMENT AND THE APPLICATION CONTAINS ASSURANCES SATISFACTORY TO THE SECRETARY THAT THE AGENCY SELECTED BY THE GOVERNOR FOR DESIGNATION AS THE STATE AGENCY HAS THE AUTHORITY AND RESOURCES TO ADMINISTER THE STATE ADMINISTRATIVE PROGRAM OF THE STATE AND TO CARRY OUT THE HELATH PLANNING AND DEVELOPMENT FUNCTIONS PRESCRIBED BY SECTION 1523, AND

"(C) IN THE CASE OF AN AGREEMENT ENTERED INTO UNDER PARAGRAPH (3), THERE HAS BEEN ESTABLISHED FOR THE STATE A STATEWIDE HELATH COORDINATING COUNCIL MEETING THE REQUIREMENTS OF SECTION 1524.

"(2)(A) THE AGREEMENT ENTERED INTO WITH A GOVERNOR OF A STATE UNDER SUBSECTION (A) MAY PROVIDE FOR THE DESIGNATION OF A STATE AGENCY ON A CONDITIONAL BASIS WITH A VIEW TO DETERMINING THE CAPACITY OF THE DESIGNATED STATE AGENCY TO ADMINISTER THE STATE ADMINISTRATIVE PROGRAM OF THE STATE AND TO CARRY OUT THE HEALTH PLANNING AND DEVELOPMENT FUNCTIONS PRESCRIBED BY SECTION 1523. THE SECRETARY SHALL REQUIRE AS A CONDITION TO THE ENTERING INTO OF SUCH AN AGREEMENT THAT THE GOVERNOR SUBMIT ON BEHALF OF THE AGENCY TO BE DESIGNATED A PLAN FOR THE AGENCY'S ORDERLY ASSUMPTION AND IMPLEMENTATION OF SUCH FUNCTIONS.

"(B) THE PERIOD OF AN AGREEMETN DESCRIBED IN SUBPARAGRAPH (A) MAY NOT EXCEED TWENTY-FOUR MONTHS. DURING SUCH PERIOD THE SECRETARY MAY REQUIRE THAT THE DESIGNATED STATE AGENCY PERFORM ONLY SUCH OF THE FUNCTIONS OF A STATE AGENCY PRESCRIBED BY SECTION 1523 AS HE DETERMINES IT IS CAPABLE OF PERFORMING. THE MUMBER AND TYPE OF SUCH FUNCTIONS SHALL, DURING SUCH PERIOD, BE PROGRESSIVELY INCREASED AS THE DESIGNATED STATE AGENCY BECOMES CAPABLE OF ADDED RESPONSIBILITY, SO THAT BY THE END OF SUCH PERIOD THE DESIGNATED STATE AGENCY MAY BE CONSIDERED FOR DESIGNATION UNDER PARAGRAPH (3).

"(C) ANY AGREEMENT WITH A GOVERNOR OF A STATE ENTERED INTO UNDER SUBPARAGRAPH (A) MAY BE TERMINATED BY THE GOVERNOR UPON NINETY DAYS' NOTICE TO THE SECRETARY OR BY THE SECRETARY UPON NINETY DAYS' NOTICE TO THE GOVERNOR.

"(3) IF, ON THE BASIS OF AN APPLICATION FOR DESIGNATION AS A STATE AGENCY (AND, IN THE CASE OF AN AGENCY CONDITIONALLY DESIGNATED UNDER PARAGRAPH (2), ON THE BASIS OF ITS PERFORMANCE UNDER AN AGREEMENT WITH A GOVERNOR OF A STATE ENTERED INTO UNDER SUCH PARAGRAPH), THE SECRETARY DETERMINES THAT THE AGENCY IS CAPABLE OF FULFILLING, IN A SATISFACTORY MANNER, THE RESPONSIBILITIES OF A STATE AGENCY, HE SHALL ENTER INTO AN AGREEMENT WITH THE GOVERNOR OF THE STATE DESIGNATING THE AGENCY AS THE STATE AGENCY FOR THE STATE. NO SUCH AGREEMENT MAY BE MADE UNLESS AN APPLICATION THEREFOR IS SUBMITTED TO, AND APPROVED BY, THE SECRETARY. ANY SUCH AGREEMENT SHALL BE FOR A TERM OF NOT TO EXCEED TWELVE MONTHS, EXCEPT THAT, PRIOR TO THE EXPIRATION OF SUCH TERM, SUCH AGREEMENT MAY BE TERMINATED--'

"(A) BY THE GOVERNOR AT SUCH TIME AND UPON SUCH NOTICE TO THE SECRETARY AS HE MAY BY REGULATION PRESCRIBE, OR

"(B) BY THE SECRETARY, AT SUCH TIME AND UPON SUCH NOTICE TO THE GOVERNOR AS THE SECRETARY MAY BY REGULATION PRESCRIBE, IF THE SECRETARY DETERMINES THAT THE DESIGNATED STATE AGENCY IS NOT COMPLYING WITH OR EFFECTIVELY CARRYING OUT THE PROVISIONS OF SUCH AGREEMENT. AN AGREEMENT UNDER THIS PARAGRAPH SHALL CONTAIN SUCH PROVISIONS AS THE SECRETARY MAY REQUIRE TO ASSURE THAT THE REQUIREMENTS OF THIS PART RESPECTING STATE AGENCIES ARE COMPLIED WITH.

"(4) AN AGREEMENT ENTERED INTO UNDER PARAGRAPH (3) FOR THE DESIGNATION OF A STATE AGENCY MAY BE RENEWED BY THE SECRETARY FOR A PERIOD NOT TO EXCEED TWELVE MONTHS IF HE DETERMINES THAT IT HAS FULFILLED, IN A SATISFACOTRY MANNER, THE RESPONSIBILITIES OF A STATE AGENCY DURING THE PERIOD OF THE AGREEMENT TO BE RENEWED AND IF THE APPLICABLE STATE ADMINISTRATIVE PROGRAM CONTINUES TO MEET THE REQUIREMENTS OF SECTION 1522.

"(C) IF A DESIGNATION AGREEMENT WITH THE GOVERNOR OF A STATE ENTERED INTO UNDER SUBSECTION (B)(2) OR (B)(3) IS TERMINATED BEFORE THE DATE PRESCRIBED FOR ITS EXPIRATION, THE SECRETARY SHALL, UPON APPLICATION AND IN ACCORDANCE WITH SUBSECTION (B)(2) OR (B)(3) (AS THE SECRETARY DETERMINES APPROPRIATE), ENTER INTO ANOTHER AGREEMENT WITH THE GOVERNOR FOR THE DESIGNATION OF A STATE AGENCY.

"(D) IF, UPON THE PEXPIRATION OF THE FOURTH FISCAL YEAR WHICH BEGINS AFTER THE CLAENDAR YEAR IN WHICH THE NATIONAL HEALTH POLICY, PLANNING, AND RESOURCES DEVELOPMENT ACT OF 1974 IS ENACTED, AN AGREEMENT UNDER THIS SECTION FOR THE DESIGNATION OF A STATE AGENCY FOR A STATE IS NOT IN EFFECT, THE SECRETARY MAY NOT MAKE ANY ALLOTMENT, GRANT, LOAN, OR LOAN GUARANTEE, OR ENTER INTO ANY CONTRACT, UINDER THIS ACT, THE COMMUNITY MENTAL HEALTH CENTERS ACT, //42 USC 2681 NOTE.// OR THE COMPREHENSIVE ALCOHOL ABUSE AND ALCOHOLISM PREVENTION, TREATMENT, AND REHABILITATION ACT OF 1970 //42 USC 4571.// FOR THE DEVELOPMENT, EXPANSION, OR SUPPORT OF HELATH RESOURCES IN SUCH STATE UNTIL SUCH TIME AS SUCH AN AGREEMENT IS IN EFFECT.

"STATE ADMINISTRATIVE PROGRAM //42 USC 300M-1.//

"SEC. 1522. (A) A STATE ADMINISTRATIVE PROGRAM (HEREINAFTER IN THIS SECTION REFERRED TO AS THE 'STATE PROGRAM') IS A PROGRAM FOR THE PERFORMANCE WITHIN THE STATE BY ITS STATE AGENCY OF THE FUNCTIONS PRESCRIBED BY SECTIO BY SECTION 1523. THE SECRETARY MAY NOT APPROVE A STATE PROGRAM FOR A STATE UNLESS IT--'

"(1) MEETS THE REQUIREMENTS OF SUBSECTION (B);

"(2) HAS BEEN SUBMITTED TO THE SECRETARY BY THE GOVERNOR OF THE STATE AT SUCH TIME AND IN SUCH DETAIL, AND CONTAINS OR IS ACCOMPANIED BY SUCH INFORMATION, AS THE SECRETARY DEEMS NECESSARY; AND

"(3) HAS BEEN SUBMITTED TO THE GENERAL PUBLIC OF THE STATE A REASONABLE OPPORUNITY FOR A PRESENTATION OF VIEWS ON THE STATE PROGRAM.

"(B) THE STATE PROGRAM OF A STATE MUST--'

"(1) PROVIDE FOR THE PERFORMANCE WITHIN THE STATE (AFTER THE DESIGNATION OF A STATE AGENCY AND IN ACCORDANCE WITH THE DESIGNATION AGREEMENT) OF THE FUNCTIONS PRESCRIBED BY SECTION 1523 AND SPECIFY THE STATE AGENCY OF THE STATE AS THE SOLE AGENCY FOR THE PERFORMANCE OF SUCH FUNCTIONS (EXCEPT AS PROVIDED IN SUBSECTION (B) OF SUCH SECTION) AND FOR THE ADMINISTRATION OF THE STATE PROGRAM;

"(2) CONTAIN OR BE SUPPORTED BY SATISFACTORY EVIDENCE THAT THE STATE AGENCY HAS UNDER STATE LAW THE AUTHORITY TO CARRY OUT SUCH FUNCTIONS AND THE STATE PROGRAM IN ACCORDANCE WITH THIS PART AND CONTAIN A CURRENT BUDGET FOR THE OPERATION OF THE STATE AGENCY;

"(3) PROVIDE FOR ADEQUATE CONSULTATION WITH, AND AUTHORITY FOR, THE SATE WIDE HEALTH COORDINATING COUNCIL (PRESCRIBED BY SECTION 1524), IN CARRYING OUT SUCH FUNCTIONS AND THE STATE PROGRAM;

"(4)(A) SET FORTH IN SUCH DETAIL AS THE SECRETARY MAY PRESCRIBE THE QUALIFICATIONS FOR PERSONNEL HAVING RESPONSIBILITIES IN THE PERFORMANCE OF SUCH FUNCTIONS AND THE STATE PROGRAM, AND REQUIRE THE STATE AGENCY TO HAVE A PROFESSIONAL STAFF FOR PLANNING AND A PROFESSIONAL STAFF FOR DEVELOPMENT, WHICH STAFFS SHALL BE OF SUCH SIZE AND MEET SUCH QUALIFICATIONS AS THE SECRETARY MAY PRESCRIBE;

"(B) PROVIDE FOR SUCH METHODS OF ADMINISTRATION AS ARE FOUND BY THE SECRETARY TO BE NECESSARY FOR THE PROPER AND EFFICIENT ADMINISTRATION OF SUCH FUNCTIONS AND THE STATE PROGRAM, INCLUDING METHODS RELATING TO THE ESTABLISHMENT AND MAINTENANCE OF PERSONNEL STANDARDS ON A MERIT BASIS CONSISTENT WITH SUCH STANDARDS AS ARE OR MAY BE ESTABLISHED BY THE CIVIL SERVICE COMMISSION UNDER SECTION 208(A) OF THE INTERGOVERNMENTAL PERSONNEL ACT OF 1970 (PUBLIC LAW 91 - 648), //42 USC 4728.// BUT THE SECRETARY SHALL EXERCISE NO AUTHORITY WITH RESPECT TO THE SELECTION, TENURE OF OFFICE, AND COMPENSATION OF ANY INDIVIDUAL EMPLOYED IN ACCORDANCE WITH THE METHODS RELATING TO PERSONNEL STANDARDS ON A MERIT BASIS ESTABLISHED AND MAINTAINED IN CONFORMITY WITH THIS PARAGRAPH;

"(5) REQUIRE THE STATE AGENCY TO PERFORM ITS FUCTIONS IN ACCORDANCE WITH PROCEDURES AND CRITERIA ESTABLISHED AND PUBLISHED BY IT, WHICH PROCEDURES AND CRITERIA SHALL CONFORM TO THE REQUIREMENTS OF SECTION 1532;

"(6)REQUIRE THE STATE AGENCY TO (A) CONDUCT ITS BUSINESS MEETINGS IN PUBLIC, (B) GIVE ADEQAUTE NOTICE TO THE PUBLIC OF SUCH MEETINGS, AND (C) MAKE ITS RECORDS AND DATA AVAILABLE, UPON REQUEST, TO THE PUBLIC;

"(7)(A) PROVIDE FOR THE COORDINATION (IN ACCORDANCE WITH REGULATIONS OF THE SECRETARY) WITH THE COOPERATIVE SYSTEM PROVIDED FOR UNDER SECTION 306(E) //42 USC 242D.// OF THE ACTIVITIES OF THE STATE AGENCY FOR THE COLLECTION, RETRIEVAL, ANALYSIS, REPORTING, AND PUBLICATOIN OF STATISTICAL AND OTHER INFORMATION REALTED TO HEALTH AND HEALTH CARE, AND (B) REQUIRE PROVIDERS OF HEALTH CARE DOING BUSINESS IN THE STATE TO MAKE STATISTICAL AND OTHER REPORTS OF SUCH INFORMATION TO THE STATE AGENCY;

"(8) PROVIDE, IN ACCORDANCE WITH METHODS AND PROCEDURES PRESCRIBED OR APPROVED BY THE SECRETARY, FOR THE EVALUATION, AT LEAST ANNUALLY, OF THE PERFORMANCE BY THE STATE AGENCY OF ITS FUNCTIONS AND OF THIER ECONOMIC EFFECTIVENESS;

"(9) PROVIDE THAT THE STATE AGENCY WILL FROM TIME TO TIME, AND IN ANY EVENT NOT LESS OFTEN THAN ANNUALLY, REVIEW THE STATE PROGRAM AND SUBMIT TO THE SECRETARY REQUIRED MODIFICATIONS;

"(10) REQUIRE THE STATE AGENCY TO MAKE SUCH REPORTS, IN SUCH FORMA AND CONTAINING SUCH INFORMATIOM, CONCERNING ITS STRUCTURE, OPERATIONS, PERFORMANCE OF FUNCTIONS, AND OTHER MATTERS AS THE SECRETARY MAY FROM TIME TO TIME REQUIRE, AND KEEP SUCH RECORDS AND AFFORD SUCH ACCESS THERETO AS THE SECRETARY MAY FIND NECESSARY TO VERIFY SUCH REPORTS;

"(11) REQUIRE THE STATE AGENCY TO PROVIDE FOR SUCH FISCAL CONTROL AND FUND ACCOUNTING PROCEDURES AS THE SECRETARY MAY REQUIRE TO ASSURE PROPER DISBURSEMENT OF, AND ACCOUNTING FOR, AMOUNTS RECEIVED FROM THE SECRETARY UNDER THIS TITLE;

"(12) PERMIT THE SECRETARY AND THE COMPPTROLLER GENERAL OF THE UNITED STATES, OR THIER REPRESENTATIVES, TO HAVE ACCESS FOR THE PURPOSE OF AUDIT AND EXAMINATION TO ANY BOOKS, DOCUMENTS, PAPERS, AND RECORDS OF THE STATE AGENCY PERTINTENT TO THE DISPOSITION OF AMOUNTS RECEIVED FROM THE SECRETARY UNDER THIS TITLE; AND

"(13) PROVIDE THAT IF THE STATE AGENCY MAKES A DECISION IN THE PERFORMANCE OF A FUNCTION UNDER PARAGFRAPH (3), (4), (5), OR (6) OF SECTION 1523(A) OR UNDER TITLE XVI WHICH IS INCONSISTENT WITH A RECOMMENDATION MADE UNDER SUBSECTION (F), (G), OR (H) OF SECTION 1513 BY A HEALTH SYSTEMS AGENCY WITHIN THE STATE--'

"(A) SUCH DECISION (AND THE RECORD UPON WHICH IT WAS MADE) SHALL, UPON REQUEST OF THE HEALTH SYSTEMS AGENCY, BE REVIEWED, UNDER AN APPEALS MECHANISM CONSISTENT WITH STATE LAW GOVERNING THE PRACTICES AND PROCEDURES OF ADMINISTRATIVE AGENCIES, BY AN AGENCY OF THE STATE (OTHER THAN THE STATE HEALTH PLANNING AND DEVELOPMENT AGENCY) DESIGNATED BY THE GOVERNOR, AND

"(B) THE DECISION OF THE REVIEWING AGENCY SHALL FOR PURPOSES OF THIS TITLE AND TITLE XVI //POST, P. 2258.// BE CONSIDERED THE DECISION OF THE STATE HEALTH PLANNING AND DEVELOPMENT AGENCY.

"(C) THE SECRETARY SHALL APPROVE ANY STATE PROGRAM AND ANY MODIFICATION THEREOF WHICHCOMPLIES WITH SUBSECTIONS (A) AND (B). THE SECRETARY SHALL REVIEW FOR COMPLIANCE WITH THE REQUIREMENTS OF THIS PART THE SPECIFICATIONS OF AND OPERATIONS UNDER EACH STATE PROGRAM APPROVED BY HIM. SUCH REVIEW SHALL BE CONDUCTED NOT LESS OFTEN THAN ONCE EACH YEAR.

"STATE HEALTH PLANNING AND DEVELOPOMENT FUNCTIONS //42 USC 300M-2.//

"SEC. 1523. (A) EACH STATE AGENCY OF A STATE DESIGNATED UNDER SECTION 1521(B)(3) SHALL, EXCEPT AS AUTHORIZED UNDER SUBSECTION (B), PERFORM WITHIN THE STATE THE FOLLOWING FUNCTIONS:

"(1) CONDUCT THE HEALTH PLANNING ACTIVITIES OF THE STATE AND IMPLEMENT THOSE PARTS OF THE STATE HEALTH PLAN (UNDER SECTION 1524(C)(2)) AND THE PLANS OF THE HEALTH SYSTEMS AGENCIES WITHIN THE STATE WHICH RELATE TO THE GOVERNMENT OF THE STATE.

"(2) PREPARE AND REVIEW AND REVISE AS NECESSARY (BUT AT LEAST ANNUALLY) A PRELIMINARY STATE HEALTH PLAN WHICH SHALL BE MADE UP ON THE HSP'S OF THE HEALTH SYSTEMS AGENCIES WITHIN THE STATE. SUCH PRELIMINARY PLAN MAY, AS FOUND NECESSARY BY THE STATE AGENCY, CONTAIN SUCH REVISIONS OF SUCH HSP'S TO ACHIEVE THEIR APPROPRIATE COORDINATION OR TO DEAL MORE EFFECTIVELY WITH STATEWIDE HEALTH NEEDS. SUCH PRELIMINARY PLAN SHALL BE SUBMITTED TO THE STATEWIDE HEALTH COORDINATING COUNCIL OF THE STATE FOR APPROVAL OR DISAPPROVAL AND FOR USE IN DEVELOPING THE STATE HEALTH PLAN REFERRED TO IN SECTION 1524(C).

"(3) ASSIST THE STATEWIDE HEALTH COORDINATING COUNCIL OF THE STATE IN THE REVIEW OF THE STATE MEDICAL FACILITIES PLAN REQUIRED UNDER SECTION 1603, AND IN THE PERFORMANCE OF ITS FUNCTIONS GENERALLY. //POST, P. 2259.//

"(4)(A) SERVE AS THE DESIGNATED PLANNING AGENCY OF THE STATE FOR THE PURPOSES OF SECTION 1122 OF THE SECIAL SECURITY ACT //42 USC 1320A-1.// IF THE STATE HAS MADE AN AGREEMENT PURSUANT TO SUCH SECTION, AND (B) ADMINISTER A STATE CERTIFICATE OF NEED PROGRAM WHICH APPLIES TO NEW INSTITUTIONAL HEALTH SERVICES PROPOSED TO BE OFFERED OR DEVELOPED WITHIN THE STATE AND WHICH IS SATISFACTORY TO THE SECRETARY. SUCH PROGRAM SHALL PROVIDE FOR REVIEW AND DETERMINATION OF NEED PRIOR TO THE TIME SUCH SERVICES, FACILITIES, AND ORGANIZATIONS ARE OFFERED OR DEVELOPED OR SUBSTANTIAL EXPENDITURES ARE UNDERTAKEN IN PREPARATION FOR SUCH OFFERING OR DEVELOPMENT, AND PROVIDE THAT ONLY THOSE SERVICES, FACILITIES, AND ORGANIZATIONS FOUND TO BE NEEDED SHALL BE OFFERED OR DEVELOPED IN THE STATE. IN PERFORMING ITS FUNCTIONS UNDER THIS PARAGRAPH THE STATE AGENCY SHALL CONSIDER RECOMMENDATIONS MADE BY HEALTH SYSTEMS AGENCIES UNDER SECTION 1513(F).

"(5) AFTER CONSIDERATION OF RECOMMENDATIONS SUBMITTED BY HEALTH SYSTEMS AGENCIES UNDER SECTION 1415(F) RESPECTING NEW INSTITUTIONAL HEALTH SERVICES PROPOSED TO BE OFFERED WITHIN THE STATE, MAKE FINDINGS AS TO THE NEED FOR SUCH SERVICES.

"(6) REVIEW ON A PERIODIC BASIS (BUT NOT LESS OFTEN THAN EVERY FIVE YEARS) ALL INSTITUTIONAL HEALTH SERVICES BEING OFFERED IN THE STATE AND, AFTER CONSIDERATION OF RECOMMENDATION SUBMITTED BY HEALTH SYSTEMS AGENCIES UNDER SECTION 1513(G) RESPECTING THE APPROPRIATENESS OF SUCH SERVICES, MAKE PUBLIC ITS FINDINGS.

"(B)(1) ANY FUNCTION DESCRIBED IN SUBSECTION (A) MAY BE PERFORMED BY ANOTHER AGENCY OF THE STATE GOVERNMENT UPON REQUEST OF THE GOVERNOR UNDER AN AGREEMENT WITH THE STATE AGENCY SATISFACTORY TO THE SECRETARY.

"(2) THE REQUIREMENT OF APRAGRAPH (4)(B) OF SUBSECTION (A) SHALL NOT APPLY TO A STATE AGENCY OF A STATE UNTIL THE EXPIRATION OF THE FIRST REGULAR SESSION OF THE LEGISLATURE OF SUCH STATE WHICH BEGINS AFTER THE DATE OF ENACTMENT OF THIS TITLE.

"(3) A STATE AGENCY SHALL COMPLETE ITS FINDINGS WITH RESPECT TO THE APPROPRIATENESS OF ANY EXISTING INSTITUTIONAL HEALTH SERVICE WITHIN ONE YEAR AFTER THE DATE OF A HEALTH SYSTEMS AGENCY HAS MADE ITS RECOMMENDATION UNDER SECTION 1513(G) WITH RESPECT TO THE APPROPRIATENESS OF THE SERVICE.

"(C) IF A STATE AGENCY MAKES A DECISION IN CARRYING OUT A FUNCTION DESCRIBED IN PARAGRAPH (4), (5), (6), OR (7) OF SUBSECTION (A) WHICH IS NOT CONSISTENT WITH THE GOALS OF THE APPLICABLE HSP OR THE PRIORITIES OF THE APPLICABLE AIP, THE STATE AGENCY SHALL SUBMIT TO THE APPROPRIATE HEALTH SYSTEMS AGENCY A DETAILED STATEMENT OF THE REASONS FOR THE INCONSISTENCY.

"STATEWIDE HEALTH COORDINATING COUNCIL //42 USC 300M-3.//

"SEC. 1524. (A) A STATE HEALTH PLANNING AND DEVELOPMENT AGENCY DESIGNATED UNDER SECTION 1521 SHALL BE ADVISED BY A STATEWIDE HEALTH COORDINATING COUNCIL (HEREINAFTER IN THIS SECTION REFERRED TO AS THE 'SHCC') WHICH (2) IS ORGANIZED IN THE MANNER DESCRIBED BY SUBSECTION (B), AND (2) PERFORMS THE FUNCTIONS LISTED IN SUBSECTION (C).

"(B)(1) A SHCC OF A STATE SHALL BE COMPOSED IN THE FOLLOWING MANNER:

"(A)(I) A SHCC SHALL HAVE NO FEWER THAN SIXTEEN REPRESENTATIVES APPOINTED BY THE GOVERNOR OF THE STATE FROM LISTS OF AT LEAST FIVE NOMINEES SUBMITTED TO THE GOVERNOR BY EACH OF THE HEALTH SYSTEMS AGENCIES DESIGNATED FOR HEALTH SERVICE AREAS WHICH FALL, IN WHOLE OR IN PART, WITHIN THE STATE.

"(II) EACH SUCH HEALTH SYSTEMS AGENCY SHALL BE ENTITLED TO THE SAME NUMBER OF REPRESENTATIVES ON THE SHCC.

"(II) EACH SUCH HEALTH SYSTEMS AGENCY SHALL BE ENTITLE TO AT LEAT TWO REPRESENTATIVES ON THE SHCC. OF THE REPRESENTATIVES OF A HEALTH SYSTEMS AGENCY, NOT LESS THAN ONE-HALF SHALL BE INDIVIDUALS WHO ARE CONSUMERS OF HEALTH CARE AND WHO ARE NOT PROVIDERS OF HEALTH CARE.

"(B) IN ADDITION TO THE APPOINTMENTS MADE UNDER SUBPARAGRAPH (A), THE GOVERNOR OF THE STATE MAY APPOINT SUCH PERSONS (INCLUDING STATE OFFICIALS, PUBLIC ELECTED OFFICIALS, AND OTHER REPRESENTATIVES OF GOVERNMENTAL AUTHORITIES WITHIN THE STATE) TO SERVE ON THE SHCC AS HE DEEMS APPROPRIATE; EXCEPT THAT (I) THE NUMBER OF PERSONS APPOINTED TO THE SHCC INDER THIS SUBPARAGRAPH MAY NOT EXCEED 40 PER CENTUM OF THE TOTAL MEMBERSHIP OF THE SHCC, AND (II) A MAJORITY OF THE PERSONS APPOINTED BY THE GOVERNOR SHALL BE CONSUMERS OF HEALTH CARE WHO ARE NOT ALSO PROVIDERS OF HEALTH CARE.

"(C) NOT LESS THAN ONE-THIRD OF HT EPROVIDERS OF HEALTH CARE WHO ARE MEMBERS OF A SHCC SHALL BE DIRECT PROVIDERS OF HEALTH CARE (AS DESCRIBED IN SECTIO 1531(3)).

"(D) WHERE TWO OR MORE HOSPITALS OR OTHER HEALTH CARE FACILITIES OF THE VETERAN'S ADMINISTRATION ARE LOCATED IN A STATE, THE SHCC SHALL, IN ADDITION TO THE APPOINTED MEMBERS, INCLUDE, AS AN EX OFFIO MEMBER, AN INDIVIDUAL WHOM THE CHIEF MEDICAL DIRECTOR OF THE VETERAN'S ADMINISTRATION SHALL HAVE DESIGNATED AS A REPRESENTATIVE OF SUCH FACILITIES.

"(2) THE SHCC SHALL SELECT FROM AMONG ITS MEMBERS A CHAIRMAN.

"(3) THE SHCC SHALL CONDUCT ALL OF ITS BUSINESS MEETINGS IN PUBLIC, AND SHALL MEET AT LEAST ONCE IN EACH CLAENDAR QUARTER OF A YEAR.

"(C) A SHCC SHALL PERFORM THE FOLLOWING FUNCTIONS:

"(1) REVIEW ANNUALLY AND COORDINATE THE HSP AND AIP OF EACH HEALTH SYSTEMS AGENCY WITHIN THE STATE AND REPORT TO THE SECRETARY, FOR PURPOSES OF HIS REVIEW UNDER SECTION 1535(C), ITS COMMENTS ON SUCH HSP AND AIP.

"(2)(A) PREPARE AND REVIEW AND REVISE AS NECESSARY (BUT AT LEAST ANNUALLY) A STATE HEALTH PLAN WHICH SHALL BE MADE UP OF THE HSP'S OF THE HELATH SYSTEMS AGENCIES WITHIN THE STATE. SUCH PLAN MAY, AS FOUND NECESSARY BY THE SHCC, CONTAIN REVISIONS OF SUCH HSP'S TO ACHIEVE THEIR APPROPRIATE COORDINATION OR TO DEAL MORE EFFECTIVELY WITH STATEWIDE HEALTH NEEDS. EACH HEALTH SYTE,S AGENCY WHICH PARTICIPATES IN THE SHCC SHALL AMKE AVAILABLE TO THE SHCC ITS HSP FOR EACH YEAR FOR INTEGRATION INTO THE STATE HEALTH PLAN AND SHALL, AS REQUIRED BY THE SHCC, REVISE ITS HSP TO ACHIEVE APPROPRIATE COORDINATION WITH THE HSP'S OF THE OTHER AGENCIES WHICH PARTICIPATE IN THE SHCC OR TO DEAL MORE EFFECTIVELY WITH STATEWIDE HEALTH NEEDS.

"(B) IN THE PREPARATION AND REVISION OF THE STATE HEALTH PLAN, THE SHCC SHALL REVIEW AND CONSIDER THE PRELIMINARY STATE HELATH PLAN SUBMITTED BY THE STATE AGENCY UNDER SECTION 1523(A)(2), AND SHALL CONDUCT A PUBLIC HEARING ON THE PLAN AS PROPOSED AND SHALL GIVE INTERESTED PERSONS AN OPPORUNITY TO SUBMIT THEIR VIEWS ORALLY AND IN WRITING. NOT LESS THAN THIRTY DAYS PRIOR TO ANY SUCH HEARING, THE SHCC SHALL PUBLISH IN AT LEAST TWO NEWSPAPERS OF GENERAL CIRCULATION IN THE STATE A NOTICE OF ITS CONSIDERATION OF THE PROPOSED PLAN, THE TIME AND PLACE OF THE HEARING, THE PLACE AT WHICH INTERESTED PERSONS MAY CONSULT THE PLAN IN ADVANCE OF THE HEARING, AND THE PLACE AND PERIOD DURING WHICH TO DIRECT WRITTEN COMMENT TO THE SHCC ON THE PLAN.

"(3) REVIEW ANNUALLY THE BUDGET OF EACH SUCH HEALTH SYSTEMS AGENCY AND REPORT TO THE SECRETARY, FOR THE PURPOSES OF HIS REVIEW UNDER SECTION 1535(A), ITS COMMENTS ON SUCH BUDGET.

"(4) REVIEW APPLICATIONS SUBMITTED BY SUCH HEALTH SYSTEMS AGENCIES FOR GRANTS UNDER SECTIONS 1516 AND 1640 AND REPORT TO THE SECRETARY ITS COMMENTS ON SUCH APPLICATIONS. //POST, P. 2273.//

"(5) ADVISE THE STATE AGENCY OF THE STATE GENERALLY ON THE PERFORMANCE OF ITS FUNCTIONS.

"(6) REVIEW ANNUALLY AND APPROVE OR DISAPPROVE ANY STATE PLAN AND ANY APPLICATION (AND ANY REVISION OF A STATE PLAN OR APPLICATION) SUBMITTED TO THE SECRETARY AS A CONDITION TO THE RECEIPT OF ANY FUNDS UNDER ALLOTMENTS MADE TO STATES UNDER THIS ACT, THE COMMUNITY MENTAL HEALTH CENTERS ACT, //42 USC 2681 NOTE.// OR THE COMPREHENSIVE ALCOHOL ABUSE AND ALCHOLISM PREVENTION, TREATMENT, AND REHABILITATION ACT OF 1970. //42 USC 4571.// NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT OR ANY OTHER ACT REFERRED TO IN THE PRECEEDING SENTENCE, THE SECRETARY SHALL ALLOW A SHCC SIXTY DAYS TO MAKE THE REVIEW REQUIRED BY SUCH SENTENCE. IF A SHCC DISAPPROVES SUCH A STATE PLAN OR APPICATION, THE SECRETARY MAY NOT MAKE FEDERAL FUNDS AVAILABLE UNDER SUCH STATE PLAN OR APPLICATION UNTIL HE HAS MADE, UPON REQUEST OF THE GOVERNOR OF THE STATE WHICH SUBMITTED SUCH PLAN OR APPLICATION OR ANOTHER AGENCY OF SUCH STATE, A REVIEW OF THE SHCC DECISIONS. IF AFTER SUCH REVIEW THE SECRETARY DECIDES TO MAKE SUCH FUNDS AVAILABLE, THE DECISION BY THE SECRETARY TO MAKE SUCH FUNDS AVAILABLE SHALL BE SUBMITTED TO THE SHCC AND SHALL CONTAIN A DETAILED STATEMENT OF THE REASONS FOR THE DECISION.

"GRANTS FOR STATE HEALTH PLANNING AND DEVELOPMENT //42 USC 300M-4.//

"SEC. 1525. (A) THE SECRETARY SHALL MAKE GRANTS TO STATE HEALTH PLANNING AND DEVELOPMENT AGENCIES DESIGNATED UNDER SUBSECTION (B)(2) OR (B)(3) OF SECTION 1521 TO ASSIS THEM IN MEETING THE COSTS OF THEIR OPERATION. ANY GRANT MADE UNDER THIS SUBSECTION TO A STATE AGENCY SHALL BE AVAILABLE FOR OBLIGATION ONLY FOR A PERIOD NOT TO EXCEED THE PERIOD FOR WHICH ITS DESIGNATION AGREEMENT IS ENTERED INTO OR RENEWED. THE ANMOUNT OF ANY GRANT MADE UNDER THIS SUBSECTION SHALL BE DETERMINED BY THE SECRETARY, EXCEPT THAT NO GRANT TO A DESIGNATED STATE AGENCY MAY EXCEED 75 PER CENTUM OF ITS OPERATION COSTS (AS DETERMINED UNDER REGULATIONS OF THE SECRETARY) DURING THE PERIOD FOR WHICH THE GRANT IS AVAILABLE FOR OBLIGATION.

"(B) GRANTS UNDER SUBSECTION (A) SHALL BE MADE ON SUCH TERMS AND CONDITIONS AS THE SECRETARY MAY PRESCRIBE; EXCEPT THAT THE SECRETARY MAY NOT MAKE A GRANT TO A STATE AGENCY UNLESS HE RECEIVES SATISFACTORY ASSURNACES THAT THE STATE AGENCY WILL EXPEND IN PERFORMING THE FUNCTIONS PRESCRIBED BY SECTION 1523 DURING THE FISCAL YEAR FOR WHICH THE GRANT IS SOUGHT AN AMOUNT OF FUNDS FROM NON-FEDERAL SOURCES WHICH IS AT LEAST AS GREAT AS THE AVERAGE AMOUNT OF FUNDS EXPENDED, IN THE THREE YEARS IMMEDIATELY PRECEDING THE FISCAL YEAR FOR WHICH SUCH GRANT IS SOUGHT, BY THE STATE, FOR WHICH SUCH STATE AGENCY HAS BEEN DESIGNATED, FOR THE PURPOSES FOR WHICH FUNDS UNDER SUCH GRANT MAY BE USED (EXCLUDING EXPENDITURES OF A NONRECURRING NATURE).

"(C) FOR THE PURPOSE OF MAKING PAYMENTS UNDER GRANTS UNDER SUBSECTION (A), THERE ARE AUTHORIZED TO BE APPROPRIATED $25,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1975, $30,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1976, AND $35,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1977.

"GRANTS FOR STATE HEALTH PLANNING AND DEVELOPMENT //42 USC 300M-5.//

"SEC. 1526. (A) FOR THE PURPOSE OF DEMONSTRATING THE EFFECTIVENESS OF STATE AGENCIESS REGULATING RATES FOR THE PROVISION OF HEALTH CARE, THE SECRETARY MAY MAKE TO A STATE AGENCY DESIGNATED, UNDER AN AGREEMENT ENTERED INTO UNDER SECTION 1521(B)(3), FOR A STATE WHICH (IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE SECRETARY) HAS INDICATED AN INTENT TO REGULATE (OT LATER THAN SIX MONTHS AFTER THE DATE OF THE ENACTMENT OF THIS TITLE) RATES FOR THE PROVISION OF HEALTH CARE WITHIN THE STATE. NOT MORE THAN SIX STATE AGENCIES MAY RECEIVE GRANTS UNDER THIS SUBSECTION.

"(B)(2) A STATE AGENCY WHICH RECIEVES A GRANT UNDER SUBSECTION (A) SHALL--'

"(A) PROVIDE THE SECRETARY SATISFACTORY EVIDENCE THAT THE STATE AGENCY HAS UNDER STATE LAW THE AUTHORITY TO CARRY OUT RATE REGULATION FUNCTIONS IN ACCORDANCE WITH THIS SECTION AND PROVIDE THE SECRETARY A CURRENT BUDGET FOR THE PERFORMANCE OF SUCH FUNCTIONS BY IT;

"(B) SET FORTH IN SUCH DETAIL AS THE SECRETARY MAY PRESCRIBE THE QUALIFICATIONS FOR PERSONNEL HAVING RESPONSIBILITY IN THE PERFORMANCE OF SUCH FUNCTIONS, AND SHALL HAVE A PROFESSIONAL STAFF FOR RATE REGULATION, WHICH STAFF SHALL BE HEADED BY A DIRECTOR;

"(C) PROVIDE FOR SUCH METHODS OF ADMINISTRATION AS FOUND BY THE SECRETARY TO BE NECESSARY FOR THE PROPER AND EFFICIENT ADMINISTRATION OF SUCH FUNCTIONS;

"(D) PERFORM ITS FUNCTIONS IN ACCORDANCE WITH PROCEDURES ESTABLISHED AND PUBLISHED BY IT, WHICH PROCEDURES SHALL CONFORM TO THE REQUIREMENTS OF SECTION 1532;

"(E) COMPLY WITH THE REQUIREMENTS PRESCRIBED BY PARAGRAPHS (6) THROUGH (12) OF SECTION 1522(B) WITH RESPECT TO THE FUNCTIONS PRESCRIBED BY SUBSECTION (A);

"(F) PROVIDE FOR THE ESTABLISHMENT OF A PROCEDURE UNDER WHICH THE STATE AGENCY WILL OBTAIN THE RECOMMENDATION OF THE APPROPRIATE HEALTH SYSTEMS AGENCY PRIOR TO CONDUCTING A REVIEW OF THE RATES CHARGED OR PROPOSED TO BE CHARGED FOR SERVICES; AND

"(G) MEET SUCH OTHER REQUIREMETNS AS THE SECRETARY MAY PRESCRIBE.

"(2) IN PRESCRIBING REQUIREMENTS UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE SECRETARY SHALL CONSIDER THE MANNER IN WHICH A STATE AGENCY SHALL PERFORM ITS FUNCTIONS UNDER A GRANT UNDER SUBSECTION (A), INCLUDING WHEHTER THE STATE AGENCY SHOULD--'

"(A) PERMIT THOSE ENGAGED IN THE DELIVERY OF HEALTH SERVICES TO RETAIN SAVINGS ACCRUING TO THEM FROM EFFECTIVE MANAGEMENT AND COST CONTROL,

"(B) CREATE INCENTIVES AT EACH POINT IN THE DELIVERY OF HEALTH SERVICES FOR UTILIZATION OF THE MOST ECONOMICAL MODES OF SERVICES FEASIBLE,

"(C) DOCUMENT THE NEED FOR AND COST IMPLICATIONS OF EACH NEW SERVICE FOR WHICH A DETERMINATION OF REIMBURSEMENT RATES IS COUGHT, AND

"(D) EMPLOY FOR EACH TYPE OR CLASS OF PERSON ENGAGED IN THE DELIVERY OF HEALTH SERVICES--'

"(I) A UNIT FOR DETERMINING THE REIMBURSEMENT RATES, AND "(II) A BASE FOR DETERMINING RATES OF CHANGE IN THE REIMBURSEMENT RATES, WHICH UNIT AND BASE ARE SATISFACTORY TO THE SECRETARY.

"(C) GRANTS UNDER SUBSECTION (A) SHALL BE MADE ON SUCH TERMS AND CONDITIONS AS THE SECRETARY MAY PRESCRIBE, EXCEPT THAT (1) SUCH A GRANT SHALL BE AVAIOLABLE FOR OBLIGATION ONLY DURING THE ONE-YEAR PERIOD BEGINNING ON THE DATE SUCH GRANT WAS MADE, AND (2) NO STATE AGENCY MAY RECEIVE MORE THAN THREE GRANTS UNDER SUBSECTION (A).

"(D) EACH STATE AGENCY WHICH RECEIVES A GRANT UNDER SUBSECTION (A) SHALL REPORT TO THE SECRETARY (IN SUCH FORM AND MANNER AS HE SHALL PRESCRIBE) ON THE EFFECTIVENESS OF THE EATE REGULATION PROGRAM ASSISTED BY SUCH GRANT. THE SECRETARY SHALL REPORT ANNUALLY TO THE CONGRESS ON THE EFFECTIVENESS OF THE PROGRAMS ASSISTED BY THE GRANTS AUTHORIZED BY SUBSECTION (A).

"(E) THERE ARE AUTHORIZED TO BE APPROPRIATED TO MAKE PAYMENTS UNDER GRANTS UNDER SUBSECTION (A), $40,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1975, $5,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1976, AND $6,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1977.

"PART D--GENERAL PROVISIONS "DEFINITIONS //42 USC 300N.//

"SEC. 1531. FOR PURPOSES OF THIS TITLE:

"(1) THE TERM 'STATE' INCLUDES THE DISTRICT OF COLUMBIA AND THE COMMONWEALTH OF PUERTO RICO.

"(2) THE TERM 'GOVERNOR' MEANS THE CHIEF EXECUTIVE OFFICER OF A STATE OR HIS DESIGNEE.

"(3) THE TERM 'PROVIDER OF HEALTH CARE' MEANS AN INDIVIDUAL--'

"(A) WHO IS A DIRECT PROVIDER OF HEALTH CARE (INCLUDING A PHYSICIAN, DENTIST, NURSE, PODIATRIST, OR PHYSICIAN ASSISTANT) IN THAT THE INDIVIDUALS'S PRIMARY CURRENT ACTIVITY IS THE PROVISION OF HEALTH CARE TO INDIVIDUALS OR THE ADMINSITRATION OF FACILITIES OR INSTITUTION (INCLUDING HOSPITALS, LONG-TERM CARE FACILITIES, OUTPATIENT FACILITIES, AND HEALTH MAINTENANCE ORGANIZATIONS) IN WHICH SUCH CARE IS PROVIDED AND, WHEN REQUIRED BY STATE LAW, THE INDIVIDUAL HAS RECEIVED PROFESSIONAL TRAINING IN THE PROVISION OF SUCH CARE OR IN SUCH ADMINISTRATION AND IS LICENSED OR CERTIFIED FOR SUCH PROVISION OR ADMINISTRATION; OR

"(B) WHI IS AN INDIRECT PROVIDER OF HEALTH CARE IN THAT THE INDIVIDUAL--'

"(I) HOLDS A FIDUCIARY POSITION WITH, OR HAS A FIDUCIARY INTEREST IN, ANY ENTITY DESCRIBED IN SUBCLAUSE (II) OR (IV) OF CLAUSE (II);

"(II) RECEIVES (EITHER DIRECTLY OR THROUGH HIS SPOUSE) MORE THAN ONE-TENTH OF HIS GROSS ANNUAL INCOME FROM ANY ONE OR COMBINATION OF THE FOLLOWING:

"(I) FEES OR OTHER COMPENSATION FOR RESEARCH INTO OR INSTRUCTION IN THE PROVISION OF HEALTH CARE.

"(II) ENTITIES ENGAGED IN THE PROVISION OF HEALTH CARE OR IN SUCH RESEARCH OR INSTRUCTIONS.

"(III) PRODUCING OR SUPPLYING DRUGS OR OTHER ARTICLES FOR INDIVIDUALS OR ENTITIES FOR USE IN THE PROVISION OF OR IN RESEARCH INTO OR INSTRUCTION IN THE PROVISION OF HEALTH CARE.

"(IV) ENTITIES ENGAGED IN PRODUCING DRUGS OR SUCH OTHER ARTICLES.

"(III) IS A MEMBER OF THE IMMEDIATE FAMILY OF AN INDIVIDUAL DESCRIBED IN SUBPARAGRAPH (A) OR IN CLAUSE (I), (II), OR (IV) OF SUBPARAGRAPH (B); OR

"(IV) IS ENGAGED IN ISSUING ANY POLICY OR CONTRACT OF INDIVIDUAL OR GROUP HEALTH INSURANCE OR HOSPITAL OR MEDICAL SERVICE BENEFITS.

"(4) THE TERM 'HEALTH RESOURCES' INCLUDES HEALTH SERVICES, HEALTH PROFESSIONS PERSONNEL, AND HEALTH FACILITIES, EXCEPT THAT SUCH TERM DOES NOT INCLUDE CHRISTIAN SCIENCE SANATORIUMS OPERATED, OR LISTED AND CERTIFIED, BY THE FIRST CHURCH OF CHIRST, SCIENTIST, BOSTON, MASSACHUSETTS.

"(5) THE TERM 'INSTITUTIONAL HEALTH SERVICES' NEANS THE HEALTH SERVICES PROVIDED THROUGH HEALTH CARE FACILITIES AND HELATH MAINTENANCE ORGANIZATIONS (AS SUCH FACILITIES AND ORGANIZATIONS ARE DEFINED IN REGULATIONS PRESCRIBED UNDER SECTION 1122 OF THE SOCIAL SECURITY ACT) //42 USC 1320A-1.// AND INCLUDES THE ENTITIES THROUGH WHICH SUCH SERVICES ARE PROVIDED.

"PROCEDURES AND CRITERIA FOR REVIEWS OF PROPOSED HEALTH SYSTEM CHANGES //42 USC 300N-1.//

"SEC. 1532. (A) IN CONDUCTING REVIEWS PURSUANT TO SUBSECTIONS (E), (F), AND (G) OF SECTION 1513 OR IN CONDUCTING ANY OTHER REVIEWS OF PROPOSED OR EXISTING HEALTH SERVICES, EACH HEALTH SYSTEMS AGENCY SHALL (EXCEPT TO THE EXTENT APPROVED BY THE SECRETARY) FOLLOW PROCEDURES, AND APPLY CRITERIA, DEVELOPED AND PUBLISHED BY THE AGENCY IN ACCORDANCE WITH REGULATIONS OF TH ESECRETARY; AND IN PERFORMING ITS REVIEW FUNCTIONS UNDER SECTION 1523, A STATE AGENCY SHALL (EXCEPT TO THE EXTENT APPROVED BY THE SECRETARY) FOLLOW PROCEDURES, AND APPLY CRITERIA, DEVELOPED AND POUBLISHED BY THE STATE AGENCY IN ACCORDANCE WITH REGULATIONS OF THE SECRETARY. PROCEDURES AND CRITERIA FOR REVIEWS BY HEATLH SYSTEMS AGENCIES AND STATES AGENCIES MAY VARY ACCORDING TO THE PURPOSE FOR WHICH A PARTICULAR REVIEW IS BEING CONDUCTED OR THE TYPE OF HEALTH SERVICES BEING REVIEWED.

"(B) EACH HEALTH SYSTEMS AGENCY AND STATE AGENCY SHALL INCLUDE IN THE PROCEDURES REQUIRED BY SUBSECTION (A) AT LEAST THE FOLLOWING:

"(1) WRITTEN NOTIFICATION TO AFFECTED PERSONS OF THE BEGINNING OF A REVIEW.

"(2) SCHEDULES FOR REVIEWS WHICH PROVIDE THAT NO REVIEW SHALL, TO THE EXTENT PRACTICABLE, TAKE LONGER THAN NINETY DAYS FROM THE DATE THE NOTIFICATION DESCRIBED IN PARAGRAPH (1) IS MADE.

"(3) PROVISION FOR PERSONS SUBJECT TO A REVIEW TO SUBMIT TO THE AGENCY OR STATE AGENCY (IN SUCH FORM AND MANNER AS THE AGENCY OR STATE AGENCY SHALL PRESCRIBE AND PUBLISH) SUCH INFORMATION AS THE AGENCY OR STATE AGENCY MAY REQUIRE CONCERNING THE SUBJECT OF SUCH REVIEW.

"(4) SUBMISSION OF APPLICATIONS (SUBJECT TO REVIEW BY A HEALTH SYSTEMS AGENCY OR STATE AGENCY) MADE UNDER THIS ACT OR OTHER PROVISIONS OF LAW FOR FEDERAL FINANCIAL ASSIATANCE FOR HEALTH SERVICES TO THE HEALTH SYSTEMS AGENCY OR STATE AGENCY AT SUCH TIME AND IN SUCH MANNER AS IT MAY REQUIRE.

"(5) SUBMISSION OF PERIODIC REPORTS BY PROVIDERS OF HEALTH SERVICES AND OTHER PERSONS SUBJECT TO AGENCY OR STATE AGENCY REVIEW RESPECTING THE DEVELOPMENT OF PROPOSALS SUBJECT TO REVIEW.

"(6) PROVISION FOR WRITTEN FINDINGS WHICH STATE THE BASIS FOR ANY FINAL DECISION OR RECOMMENDATION MADE BY THE AGENCY OR STATE AGENCY.

"(7) NOTIFICATION OF PROVIDERS OF HELATH SERVICES AND OTHER PERSONS SUBJECT TO REVIEW, FINDINGS MADE IN THE COURSE OF SUCH REVIEW, AN DOTHER APPROPRIATE INFORMATION RESPECTING SUCH REVIEW.

"(8) PROVISION FOR PUBLE HEARINGS IN THE COURSE OF AGENCY OR STATE AGENCY REVIEW IF REQUESTED BY PERSONS DIRECTLY AFFECTED BY THE REVIEW; AND PROVISION FOR PUBLIC HEARINGS, FOR GOOD CUASE SHOWN, RESPECTING AGENCY AND STATE AGENCY DECISIONS.

"(9) PREPARATION AND PUBLICATION OF REGULAR REPORTS BY THE AGENCY AND STATE AGENCY OF THE REVIEWS BEING CONDUCTED (INCLUDING A STATEMENT CONCERNING THE STATUS OF EACH SUCH REVIEW) AND OF THE REVIEWS COMPLETED BY THE AGENCY AND STATE AGENCY (INCLUDIN GA GENERAL STATEMENT OF THE FINDINGS AND DECISIONS MADE IN THE COURSE OF SUCH REVIEWS) SINCE THE PUBLICATION OF THE LAST SUCH REPORT.

"(10) ACCESS BY THE GENERAL PUBLIC TO ALL APPLICATIONS REVEIWED BY THE AGENCY AND STATE AGENCY AND TO ALL OTHER WRITTEN MATERIALS PERTINTENT TO ANY AGENCY OR STATE AGENCY REVIEW.

"(11) IN THE CASE OF CONSTRUCTION PROJECTS, SUBMISSION TO THE AGENCY AND STATE AGENCY BY THE ENTITIES PROPOSING THE PROJECTS OF LETTERS OF INTENT IN SUCH DETAIL AS MAY BE NECESSARY TO INFORM THE AGENCY AND STATE AGENCY OF THE SCOPE AND NATURE OF THE PROJECTS AT THE EARLIEST POSSIBLE OPPORUNITY IN THE COURSE OF PLANNING OF SUCHJ CONSTRUCTION PROJECTS.

"(C) CRITERIA REQUIRED BY SUBSECTION (A) FOR HEALTH SYSTEMS AGENCY AND STATE AGENCY REVIEW SHALL INCLUDE CONSIDERATION OF AT LEAST THE FOLLOWING:

"(1) THE RELATIONSHIP OF THE HEALTH SERVICES BEING REVIEWED TO THE APPLICABLE HSP AND AIP.

"(2) THE RELATIONSHIP OF SERVICES REVIEWED TO THE LONG-RANGE DEVELOPMENT PLAN (IF ANY) OF THE PERSON PROVIDING OR PROPOSING SUCH SERVICES.

"(3) THE NEED THAT THE POPULATION SERVED OR TO BE SERVE BY SUCH SERVICES HAS FOR SUCH SERVICES.

"(4) THE AVAILABLITY OF ALTERNATIVES, LESS COSTLY, OR MORE EFFECTIVE METHODS OF PROVIDING SUCH SERVICES.

"(5) THE RELATIONSHIP OF SERVICES REVIEWED TO THE EXISTING HEALTH CARE SYSTEM OF THE AREA IN WHICH SUCH SERVICES ARE PROVIDED OR PROPOSED TO BE PROVIDED.

"(6) IN THE CASE OF HEALTH SERVICES PROPOSED TO BE PROVIDED, THE AVAILABLITY OF RESOURCES (INCLUDING HEALTH MANPOWER, MANAGEMENT PERSONNEL, AND FUNDS FOR CAPITAL AND OPERATING NEEDS) FOR THE PROVISION OF SUCH SERVICES AND THE AVAILABLITY OF ALTERNATIVE USES OF SUCH RESOURCES FOR THE PROVISION OF OTHER HEALTH SERVICES.

"(7) THE SPECIAL NEEDS AND CIRCUMSTANCES OF THOSE ENTITIES WHICH PROVIDE A SUBSTANTIAL PORTION OF THEIR SERVICES OR RESOURCES, OR BOTH, TO INDIVIDUALS NOT RESIDING IN THE HEALTH SERVICE AREAS IN WHICH THE ENTITIES ARE LOCATED OR IN ADJACENT HEALTH SERVICE AREAS. SUCH ENTITIES MAY INCLUDE MEDICAL AND OTHER HELATH PROFESSIONS SCHOOLS, MULTIDISCIPLINARY CLINICS, SPECIALTY CENTERS, AND SUCH OTHER ENTITIES AS THE SECRETARY MAY BY REGULATION PRESCRIBE.

"(8) THE SPECIAL NEEDS AND CIRCUMSTANCES OF HELATH MAINTENANCE ORGANIZATIONS FOR WHICH ASSISTANCE MAY BE PROVIDED UNDER TITLE XIII. //42 USC 300E.//

"(9) IN THE CASE OF A CONSTRUCTION PROJECT--'

"(A) THE COSTS AND METHODS OF THE PROPOSED CONSTRUCTION, AND "(B) THE PROBABLE IMPACT OF THE CONSTRUCTION PROJECT REVIEWED ON THE COSTS OF PROVIDING HEALTH SERVICES BY THE PERSON PROPOSING SUCH CONSTRUCTION PROJECT. "TECHNICAL ASSISTANCE FOR HELATH SYSTEMS AGENCIES AND STATE HELATH PLANNING AND DEVELOPMENT AGENCIES //42 USC 300N-2.//

"SEC. 1533. (A) THE SECRETARY SHALL PROVIDE (DIRECTLY OR THROUGH GRANTS OR CONTRACTS, OR BOTH) TO DESIGNATED HEALTH SYSTEMS AGENCIES AND STATE AGENICES (1) ASSISTANCE IN DEVELOPING THEIR HEALTH PLANS AND APPROACHES TO PLANNING VARIOUS TYPES OF HEALTH SERVICES, (2) TECHNICAL MATERIALS, INCLUDING MATHODOLOGIES, POLICIES, AND STANDARDS APPROPRIATE FOR USE IN HEALTH PLANNING, AND (3) OTHER TECHNICAL ASSISTANCE AS MAY BE NECESSARY IN ORDER THAT SUCH AGENCIES MAY PROPERLY PERFORM THEIR FUNCTIONS.

"(B) THE SECRETARY SHALL INCLUD IN THE MATERIALS PROVIDED UNDER SUBSECTION (A) THE FOLLOWING:

"(1)(A) SPECIFICATION OF THE MINIMUM DATA NEEDED TO DETERMINE THE HEALTH STATUS OF THE RESIDENTS OF A HEALTH SERVICE AREA AND THE DETERMINANTS OF SUCH STATUS.

"(B) SPECIFICATION OF THE MINIMUM DATA NEEDED TO DETERMINE THE STATUS OF THE HEALTH RESOURCES AND SERVICES OF A HEALTH SERVICES AREA.

"(C) SPECIFICATION OF THE MINIMUM DATA NEEDED TO DESCRIBE THE USE OF HEALTH RESOURCES AND SERVICES WITHIN A HEALTH SERVICE AREA.

"(2) PLANNING APPROACHES, METHODOLOGIES, POLICIES, AND STANDARDS WHICH SHALL BE CONSISTENT WITH THE GUIDELINES ESTABLISHED BY THE SECRETARY UNDER SECTION 1501 //ANTE, P. 2227.// FOR APPROPRIATE PLANNING AND DEVELOPMENT OF HEALTH RESOURCES, AND WHICH SHALL COVER THE PRIORITIES LISTED IN SECTION 1502.

"(3) GUIDELINES FOR THE ORGANIZATION AND OPERATION OF HEALTH SYSTEMS AGENCIES AND STATE AGENCIES INCLUDING GUIDELINES FOR--'

"(A) THE STRUCTURE OF A HEALTH SYSTEMS AGENCY, CONSISTENT WITH SECTION 1512(B), AND OF A STATE AGENCY, CONSISTENT WITH SECTION 1522;

"(B) THE CONDUCT OF THE PLANNING AND DEVELOPMENT PROCESSES;

"(C) THE PERFORMANCE OF HEALTH SYSTEMS AGENCY FUNCTIONS IN ACCORDANCE WITH SECTION 1513; AND

"(D) THE PERFORMANCE OF STATE AGENCY FUNCTIONS IN ACCORDANCE WITH SECTION 1523.

"(C) IN ORDER TO FACILITATE THE EXCHANGE OF INFORMATION CONCERNING HELATH SERVICES, HEALTH RESOURCES, AND HEALTH PLANNING AND RESOURCES DEVELOPMENT PRACTICE AND METHODOLOGY, THE SECRETARY SHALL ESTABLISH A NATIONAL HEALTH PLANNING INFORMATION CENTER TO SUPPORT THE HEALTH PLANNING AND RESOURCES DEVELOPMENT PROGRAMS OF HEALTH SYSTEMS AGENCIES, STATE AGENCIES, AND OTHER ENTITIES CONCERNED WITH HEALTH PLANNING AND RESOURCES DEVELOPMENT; TO PROVIDE ACCESS TO CURRENT INFORMATION ON HEALTH PLANNING RESOURCES DEVELOPMENT; AND TO PROVIDE INFORMATION FOR USE IN THE ANALYSIS OF ISSUES AND PROBLEMS RELATED TO HELATH PLANNING AND RESOURCES DEVELOPMENT.

"(D) THE SECRETARY SHALL ESTABLISH THE FOLLOWING WITHIN ONE YEAR OF THE DATE OF ENACTMENT OF THIS TITLE:

"(1) A UNIFORM SYSTEM FOR CALCULATING THE AGGREGATE COST OF OPERATION AND THE AGGREGATE VOLUME OF SERVICES PROVIDED BY HEALTH SERVICES INSTITUTIONS AS DEFINED BY THE SECRETARY IN REGULATIONS. SUCH SYSTEM SHALL PROVIDE FOR THE CALCULATION OF THE AGGREGATE VOLUME TO BE BASED ON:

"(A) THE NUMBER OF PATIENT DAYS;

"(B) THE NUMBER OF PATIENT ADMISSIONS;

"(C) THE NUMBER OF OUT-PATIENT VISITS; AND

"(D) OTHER RELEVANT FACTORS AS DETERMINED BY THE SECRETARY.

"(2) A UNIFORM SYSTEM FOR COST ACCOUNTING AND CALCULATING THE VOLUME OF SERVICES PROVIDED BY HEALTH SERVICE INSTITUTIONS. SUCH SYSTEM SHALL:

"(A) INCLUDE THE ESTABLISHMENT OF SPECIFIC COST CENTERS AND, WHERE APPROPRIATE, SUBCOST CENTERS.

"(B) INCLUDE THE DESIGNATION OF AN APPROPRIATE VOLUME FACTOR FOR EACH COST CENTER.

"(C) PROVIDE FOR AN APPROPRIATE APPLICATION OS SUCH SYSTEM IN THE DIFFERENT TYPES OF INSTITUTIONS (INCLUDING HOSPITALS, NURSING HOMES, AND OTHER TYPES OF HEALTH SERVICES INSTITUTIONS), AND DIFFERENT SIZES OF SUCH TYPES OF INSTITUTIONS.

"(3) A UNIFORM SYSTEM FOR CALCULATING RATES TO BE CHARGED TO HEALTH INSURERS AND OTHER HEALTH INSTITUTIONS PAYORS BY HEALTH SERVICE INSTITUTIONS. SUCH SYSTEM SHALL:

"(A) BE BASED ON AN ALL-INCLUSIVE RATE FOR VARIOUS CATEGORIES OF PATIENTS (INCLUDING, BUT NOT LIMITED TO INDIVIDUALS RECEIVING MEDICAL, SURGICAL, PEDIATRIC, OBSTETRIC, AND PSYCHIATRIC INSTITUTIONAL HEALTH SERVICES).

"(B) PROVIDE THAT SUCH RATES REFLECT THE TRUE COST OF PROVIDING SERVICES TO EACH SUCH CATEGORY OF PATIENTS. THE SYSTEM SHALL PROVIDE THAT REVENUES DERIVED FROM PATIENTS IN ONE CATEGORY SHALL NOT BE USED TO SUPPORT THE PROVISION OF SERVICES TO PATIENTS IN ANY OTHER CATEGORY.

"(C) PROVIDE FOR AN APPROPRIATE APPLICATION OF SUCH SYSTEM IN THE DIFFERENT TYPES OF INSTITUTIONS (INCLUDING HOSPITALS, NURSING HOMES, AND OTHER TYPES OF HEALTH SERVICE INSTITUTIONS) AND DIFFERENT SIZES OF SUCH TYPES OF INSTITUTIONS.

"(D) PROVIDE THAT DIFFERENCE IN RATES TO VARIOUS CLASSES OF PURCHASERS (INCLUDING HEALTH INSURERS, DIRECT SERVICE PAYORS, AND OTHER HEALTH INSTITUTIONS PAYORS) BE BASED ON JUSTIFIED AND DOCUMENTED DIFFERENCES IN THE COSTS OF OPERATION OF HEALTH SERVICE INSTITUTIONS MADE POSSIBLE BY THE ACTIONS OF SUCH PURCHASERS.

"(4) A CLASSIFICATION SYSTEM FOR HEALTH SERVICES INSTITUTIONS. SUCH CLASSIFICATION SYSTEM SHALL QUANTITATIVELY DESCRIBE AND GROUP HEATH SERVICES INSTITUTIONS OF THE VARIOUS TYPES. FACTORS INCLUDED IN SUCH CLASSIFICATION SYSTEM SHALL INCLUDE--'

"(A) THE NUMBER OF BEDS OPERATED BY AN INSTITUTION;

"(B) THE GEOGRAPHIC LOCATION OF AN INSTITUTION;

"(C) THE OPERATION OF A POSTGRADUATE PHYSICIAN TRAINING PROGRAM BY AN INSTITUTION; AND

"(D) THE COMPLEXITY OF SERVICES PROVIDED BY AN INSTITUTION.

"(5) A UNIFORM SYSTEM FOR THE REPORTING BY HEALTH SERVICES INSTITUTIONS OF--'

"(A) THE AGGREGATE COST OF OPERATION AND THE AGGREGATE VOLUME OF SERVICES, AS CALCULATED IN ACCORDANCE WITH THE SYSTEM ESTABLISHED BY THE SECRETARY UNDER PARAGRAPH (1);

"(B) THE COSTS AND VOLUME OF SERVICES AT VARIOUS COST CENTERS, AND SUBCOST CENTERS, AS CALCULATED IN ACCORDANCE WITH THE SYSTEM ESTABLISHED BY THE SECRETARY UNDER PARAGRAPH (2); AND

"(C) RATES, BY CATEGORY OF PATIENT AND CLASS OF PURCHASER, AS CALCULATED IN ACCORDANCE WITH THE SYSTEM ESTABLISHED BY THE SECRETARY UNDER PARAGRAPH (3). SUCH SYSTEM SHALL PROVIDE FOR AN APPROPRIATE APPLICATION OF SUCH SYSTEM IN THE DIFFERENT TYPES ON INSTITUTIONS (INCLUDING HOSPITALS, NURSING HOMES, AND OTHER TYPES ON HEALTH SERVICES INSTITUTIONS) AND DIFFERENT SIZES OF SUCH INSTITUTIONS.

"CENTERS FOR HEALTH PLANNING //42 USC 300N-3.//

"SEC. 1534. (A) FOR THE PURPOSES OF ASSISTING THE SECRETARY IN CARRYING OUT THIS TITLE, PROVIDING SUCH TECHNICAL AND CONSULTING ASSISTANCE AS HELATH SYSTEMS AGENCIES AND STATE AGENCIES MAY FROM TIME TO TIME REQUIRE, CONDUCTING RESEARCH, STUDIES AND ANALYSES OF HEALTH PLANNING AND RESOURCES DEVELOPMENT, AND DEVELOPING HEALTH PLANNING APPROACHES, METHODOLOGIES, POLICIES, AND STANDARDS, THE SECRETARY SHALL BY GRANTS OR CONTRACTS, OR BOTH, ASSIST PUBLIC OR PRIVATE NONPROFIT ENTITIES IN MEETING THE COSTS OF PLANNING AND DEVELOPING NEW CENTERS, AND OPERATING EXISTING AND NEW CENTERS, FOR MULTIDISCIPLINARY HEALTH PLANNING DEVELOPMENT AND ASSISTANCE. TO THE EXTENT PRACTICABLE, THE SECRETARY SHALL PROVIDE ASSISTANCE UNDER THIS SECTION SO THAT AT LEAST FIVE SUCH CENTERS WILL BE IN OPERATION BY JUNE 30, 1976.

"(B)(1) NO GRNAT OR CONTRACT MAY BE MADE UNDER THIS SECTION FOR PLANNING OR DEVELOPING A CENTER UINLESS THE SECRETARY DETERMINES THAT WHEN IT IS OPERATIONAL IT WILL MEET THE REQUIREMENTS LISTED IN PARAGRAPH (2) AND NO GRANT OR CONTRACT MAY BE MADE UNDER THIS SECTION FOR OPERATION OF A CENTER UNLESS THE CENTER MEETS SUCH REQUIREMENTS.

"(2) THE REQUIREMENTS REFERRED TO IN PARAGRAPH (1) ARE AS FOLLOWS:

"(A) THERE SHALL BE A FULL-TIME DIRECTOR OF THE CENTER WHO POSSESSES A DEMONSTRATED CAPACITY FOR SUBSTANTIAL ACCOMPLISHMENT AND LEADERSHIP IN THE FIELD OF HEALTH PLANNING AND RESOURCES DEVELOPMENT, AND THERE SHALL BE SUCH ADDITOINAL PROFESSIONAL STAFF AS MAY BE APPROPRIATE.

"(B) THE STAFF OF THE CENTER SHALL REPRESENT A DIVERSITY OF RELEVANT DISCIPLINES.

"(C) SUCH ADDITIONAL REQUIREMENTS AS THE SECRETARY MAY BY REGULATION PRESCRIBE.

"(C) CENTERS ASSISTED UNDER THIS SECTION (1) MAY ENTER INTO ARRANGEMENTS WITH HEALTH SYSTEMS AGENCIES AND STATE AGENCIES FOR THE PROVISION OF SUCH SERVICES AS MAY BE APPROPRIATE AND NECESSARY IN ASSISTING THE AGENCIES AND STATE AGENCIES IN PERFORMING THEIR FUNCTIONS UNDER SECTION 1513 OR 1523, RESPECTIVELY, AND (2) SHALL USE METHODS (SATISFACTORY TO THE SECRETARY) TO DISSEMINATE TO SUCH AGENCIES AND STATE AGENCIES SUCH PLANNING APPROACHES, METHODOLOGIES, POLICIES, AND STANDARDS AS THEY DEVELOP.

"(D) FOR THE PURPOSE OF MAKING PAYMENTS PURSUANT TO GRANTS AND CONTRACTS UNDER SUBSECTION (A) THERE ARE AUTHORIZED TO BE APPROPRIATED $5,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1975, $8,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1976, AND $10,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1977.

"REVIEW BY THE SECRETARY //42 USC 300N-4.//

"SEC. 1535. (A) THE SECRETARY SHALL REVIEW AND APPROVE OR DISAPPROVE THE ANNUAL BUDGET OF EACH DESIGNATED HEALTH SYSTEMS AGENCY AND STATE AGENCY. IN MAKING SUCH REVIEW AND APPROVAL OR DISAPPROVAL THE SECRETARY SHALL CONSIDER THE COMMENTS OF STATEWIDE HEALTH COORDINATING COUNCILS SUBMITTED UNDER SECTION 1524(C)(3). INFORMATION SUBMITTED TO THE SECRETARY BY A HEALTH SYSTEMS AGENCY OR A STATE AGENCY IN CONNECTION WITH THE SECRETARY'S REVIEW UNDER THIS SUBSECTION SHALL BE MADE AVAILABLE BY THE SECRETARY, UPON REQUEST, TO THE APPROPRIATE COMMITTEES (AND THEIR SUBCOMMITTEES) OF THE CONGRESS.

"(B) THE SECRETARY SHALL PRESCRIBE PERFORMANCE STANDARDS COVERING THE STRUCTURE, OPERATION, AND PERFORMANCE OF THE FUNCTIONS OF EACH DESIGNATED HEALTH SYSTEMS AGENCY AND STATE AGENCY, AND HE SHALL ESTABLISH A REPORTING SYSTEM BASED ON THE PERFORMANCE STANDARDS THAT ALLOWS FOR CONTINUOUS REVIEW OF THE STRUCTURE, OPERATION, AND PERFORMANCE OF THE FUNCTIONS OF SUCH AGENCIES.

"(C) THE SECRETARY SHALL REVIEW IN DETAIL AT LEAST EVERY THREE YEARS THE STRUCTURE, OPERATION, AND PERFORMANCE OF THE FUNCTIONS OF EACH DESIGNATED HEALTH SYSTEMS AGENCY TO DETEMRINE--'

"(1) THE ADEQUACY OF THE HSP OF THE AGENCY FOR MEETING THE MEEDS OF THE RESIDNETS OF THE AREA FOR A HEALTHFUL ENVIROMENT AND FOR ACCESSIBLE, ACCEPTABLE AND CONTINUOUS QUALITY HELATH CARE AT REASONABLE COSTS, AND THE EFFECTIVENESS OF THE AIP IN ACHIEVING THE SYSTEM DESCRIBED IN THE HSP;

"(2) IF THE STRUCTURE, OPERATION, AND PERFORMANCE OF THE FUNCTIONS OF THE AGENCY MEET THE REQUIREMENTS OF SECTIONS 1512(B) AND 1513; //ANTE, P. 2232.//

"(3) THE EXTENT TO WHICH THE AGENCY'S GOVERNING BODY (AND EXECUTIVE COMMITTEE (IF ANY)) REPRESENTS THE RESIDENTS OF THE HEALTH SERVICE AREA FOR WHICH THE AGENCY IS DESIGNATED;

"(4) THE PROFESSIONAL CREDENTIALS AND COMPETENCE OF THE STAFF OF THE AGENCY;

"(5) THE APPROPRIATENESS OF THE DATA ASSEMBLED PURSUANT TO SECTION 1513(B)(1) AND THE QUALITY OF THE ANALYSES OF SUCH DATA;

"(6) THE EXTENT TO WHICH TECHNICAL AND FINANCIAL ASSISTANCE FROM THE AGENCY HAVE BEEN UTILIZED IN AN EFFECTIVE MANNER TO ACHIEVE GOALS AND OBJECTIVES OF THE HSP AND THE AIP; AND

"(7) THE EXTENT TO WHICH IT MAY BE DEMONSTRATED THAT--'

"(A) THE HEALTH OF THE RESIDENTS IN THE AGENCY'S HEALTH SERVICE AREA HAS BEEN IMPROVED;

"(B) THE ACCESSIBILITY, ACCEPTABILITY, CONTINUITY, AND QUALITY OF HEALTH CARE IN SUCH AREA HAS BEEN IMPROVED; AND

"(C) INCREASES IN COSTS OF THE PROVISION OF HEALTH CARE HAVE BEEN RESTRAINED.

"(D) THE SECRETARY SHALL REVIEW IN DETAIL AT LEAST EVERY THREE YEARS THE STRUCTURE, OPERATION, AND PERFORMANCE OF THE FUNCTIONS OF EACH DESIGNATED STATE AGENCY TO DETERMINE--'

"(1) THE ADEQUACY OF THE STATE HEALTH PLAN OF THE STATE WIDE HEALTH COORDINATING COUNCIL PREPARAED UNDER SECTION 1524(C)(2) IN MEETING THE NEEDS OF THE RESIDENTS OF THE STATE FOR A HEALTHFUL ENVIROMENT AND FOR ACCESSIBLE,M ACCEPTABLE, AND CONTINUOUS QUALITY HEALTH CARE AT REASONABLE COSTS;

"(2) IF THE STRUCTURE, OPERATION, AND PERFORMANCE OF THE FUNCTIONS OF THE STATE AGENCY MEET THE REQUIREMENTS OF SECTIONS 1522 AND 1523;

"(3) THE EXTENT TO WHICH THE STATEWIDE HEALTH COORDINATING COUNCIL HAS A MEMBERSHIP MEETING, AND HAS PERFORMED IN A MANNER CONSISTENT WITH, THE REQUIREMENTS OF SECTION 1524;

"(4) THE PROFESSIONAL CREDENTIALS AND COMPETENCE OF THE STAFF OF THE STATE AGENCY;

"(5) THE EXTENT TO WHICH FINANICAL ASSISTANCE PROVIDED UNDER TITLE XVI BY THE STATE AGENCY HAS BEEN USED IN AN EFFECTIVE MANNER TO ACHIEVE THE STATE'S HEALTH PLAN UNDER SECTION 1524(C)( 2); AND

"(6) THE EXTENT TO WHICH IT MAY BE DEMONSTRATED THAT--'

"(A) THE HEALTH OF THE RESIDENTS OF THE STATE HAS BEEN IMPROVED;

"(B) THE ACCESSIBILITY, ACCEPTABILITY, CONTINUITY, AND QUALITY OF HEALTH CARE IN THE STATE HAS BEEN IMPROVED; AND

"(C) INCREASES IN COSTS OF THE PROVISION OF HEALTH CARE HAVE BEEN RESTRAINED.

"SPECIAL PROVISIONS FOR CERTAIN STATES AND TERRITORIES //42 USC 300N-5.//

"SEC. 1536. (A) ANY STATE WHICH--'

"(1) HAS NO COUNTY OR MUNICIPAL PUBLIC HEALTH INSTITUTION OR DEPARTMENT, AND

"(2) HAS, PRIOR TO THE DATE OF ENACTMENT OF THIS TITLE, MAINTAINED A HEALTH PLANNING SYSTEM WHICH SUBSTANTIALLY COMPLIES WITH THE PURPOSES OF THIS TITLE,

AND THE VIRGIN ISLANDS, GUAM, THE TRUST TERRITORIES IN THE PACIFIC ISLANDS, AND AMERICAN SAMOA SHALL EACH BE CONSIDERED IN ACCORDANCE WITH SUBSECTION (B) TO BE A STATE FOR PURPOSES OF THIS TITLE.

"(B) IN THE CASE OF AN ENTITY WHICH UNDER SUBSECTION (A) IS TO BE CONSIDERED A STATE FOR PURPOSES OF THIS TITLE--'

"(1) NO HELATH SERVICE AREA SHALL BE ESTABLISHED WITHIN IT,

"(2) NO HEALTH SYSTEMS AGENCY SHALL BE DESIGNED FOR IT,

"(3) THE STATE AGENCY DESIGNATED FOR IT UNDER SECTION 1521 MAY, IN ADDITION TO THE FUNCTIONS PRESCRIBED BY SECTION 1523, PERFORM THE FUNCTIONS PRESCRIBED BY SECTION 1513 AND SHALL BE ELIGIBLE TO RECEIVE GRANTS AUTHORIZED BY SECTIONS 1516 AND 1640, AND

"(4) THE CHIEF EXECUTIVE OFFICE SHALL APPOINT THE STATEWIDE HEALTH COORDINATING COUNCIL PRESCRIBED BY SECTION 1524 IN ACCORDANCE WITH THE REGULATION OF THE SECRETARY."

REVISIONS OF HEALTH RESOURCES DEVELOPMENT PROGRAMS UNDER THE PUBLIC HEALTH SERVICE ACT

SEC. 4. THE PUBLIC HEALTH SERVICE ACT, AS AMENDED BY SECTION 3, IS AMENDED BY ADDING AFTER TITLE XV //ANTE, P. 2227.// THE FOLLOWING NEW TITLE:

"TITLE XVI--HEATLH RESOURCES DEVELOPMENT "PART A--PURPOSE, STATE PLAN, AND PROJECT APPROVAL "PURPOSE //42 USC 300O.//

"SEC. 1601. IT IS THE PURPOSE OF THIS TITLE TO PROVIDE ASSISTANCE, THROUGH ALLOTMENTS UNDER PART B //POST, P. 2262.// AND LOANS AND LOAN GUARANTEES AND INTEREST SUBSIDIES UNDER PART C, //POST, P. 2264.// FOR PROJECTS FOR--'

"(1) MODERNIZATION OF MEDICAL FACILITIES;

"(2) CONSTRUCTION OF NEW OUTPATIENT MEDICAL FACILITIES;

"(3) CONSTRUCTION OF NEW INPATIENT MEDICAL FACILITIES IN AREAS WHICH HAVE EXPERIENCED (AS DETERMINED UNDER REGULATIONS OF THE SECRETARY) RECENT RAPID POPULATION GROWTH; AND

"(4) CONVERSION OF EXISTING MEDICAL FACILITIES FOR THE PROVISON OF NEW HEALTH SERVICES,

AND TO PROVIDE ASSISTANCE, THROUGH GRANTS UNDER PART D, FOR CONSTRUCTION AND MODERNIZATION PROJECTS DESIGNED TO PREVENT OR ELIMINATE SAFETY HAZARDS IN MEDICAL FAILITIES OR TO AVOID NONCOMPLIANCE BY SUCH FACILITIES WITH LICENSURE OR ACCREDITATION STANDARDS.

"GENERAL REGULATIONS //42 USC 300O-1.//

"SEC. 1602. THE SECRETARY SHALL BY REGULATION--'

"(1) PRESCRIBE THE GENERAL MANNER IN WHICH THE STATE AGENCY OF EACH STATE SHALL DETERMINE FOR THE STATE MEDICAL FACILITIES PLAN UNDER SECTION 1603 THE PRIORITY AMONG PROJECTS WITHIN THE STATE FOR WHICH ASSISTANCE IS AVAIABLE UNDER THIS TITLE, BASED ON THE RELATIVE NEED OF DIFFERENT AREAS WITHIN THE STATE FOR SUCH PROJECTS AND GIVING SPECIAL CONSIDERATION--'

"(A) TO PROJECTS FOR MEDICAL FACILITIES SERVING AREAS WITH RELATIVELY SMALL FINANCIAL RESOURCES AND FOR MEDICAL FACILITIES SERVING RURAL COMMUNITIES,

"(B) IN THE CASE OF PROJECTS FOR MODERNIZATION OF MEDICAL FACILITIES, TO PROJECTS FOR FACILITIES SERVING DENSELY POPULATED AREAS,

"(C) IN THE CASE OF PROJECTS FOR CONSTRUCTION OF OUTPATIENT MEDICAL FACILITIES, TO PROJECTS THAT WILL BE LOCATED IN, AND PROVIDE SERVICES FOR RESIDENTS OF, AREAS DETERMINED BY THE SECRETARY TO BE RURAL OR URBAN POVERTY AREAS,

"(D) TO PROJECTS DESIGNED TO (I) ELIMINATE OR PREVENT IMMINENT SAFETY HAZARDS AS DEFINED BY FEDERAL, STATE, OR LOCAL FIRE, BUILDING, OR LIFE SAFETY CODES OR REGULATIONS, OR (II) AVOID NONCOMPLIANCE WITH STATE OR VOLUNTARY LICENSURE OR ACCREDITATION STANDARDS, AND

"(E) TO PROJECTS FOR MEDICAL FACILITIES WHICH, ALONE OR IN CONJUNCTION WITH OTHER FACILITIES, WILL PROVIDE COMPREHENSIVE HEALTH CARE, INCLUDING OUTPATIENT AND PREVENTIVE CARE AS WELL AS HOSPITALIZATION;

"(2) PRESCRIBE FOR MEDICAL FACILITIES PROJECTS ASSISTED UNDER THIS TITLE GENERAL STANDARDS OF CONSTRUCTION, MODERNIZATION, AND EQUIPMENT FOR MEDICAL FACILITIES OF DIFFERENT CLASSES AND IN DIFFERENT TYPES OF LOCATION;

"(3) PRESCRIBE CRITERIA FOR DETERMINING NEEDS FOR MEDICAL FACILITY BEDS AND NEEDS FOR MEDICAL FACILITIES, AND FOR DEVELOPING PLANS FOR THE DISTRIBUTION OF SUCH BEDS AND FACILTIES;

"(4) PRESCRIBE CRITERIA FOR DETERMINING THE EXTENT TO WHICH EXISTING MEDICAL FACILITIES ARE IN NEED OF MODERNIZATION;

"(5) REQUIRE EACH STATE MEDICAL FACILITIES PLAN UNDER SECTION 1503 TO PROVIDE FOR ADEQUATE MEDICAL FACILITIES FOR ALL PERSONS RESIDING IN THE STATE AND ADEQUATE FACILITIES TO FURNISH NEEDED HEALTHSERVICES FOR PERSONS UNABLE TO PAY THEREFOR; AND

"(6) PRESCRIBE THE GENERAL MANNER IN WHICH EACH ENTITY WHICH RECEIVES FINANCIAL ASSISTANCE UNDER THIS TITLE OR HAS RECEIVE FINANCIAL ASSISTANCE UNDER THIS TITLE OR TITLE VI //42 USC 291.// SHALL BE REQUIRED TO COMPLY WITH THE ASSURANCES REQUIRED TO BE MADE AT THE TIME SUCH ASSISTANCE WAS RECEIVED AND THE MEANS BY WHICH SUCH ENTITY SHALL BE REQUIRED TO DEMONSTRATE COMPLIANCE WITH SUCH ASSURANCES.

AN ENTITY SUBJECT TO THE REQUIREMENTS PRESRIBED PURSUANT TO PARAGRAPH (6) RESPECTING COMPLIANCE WITH ASSURANCES MADE IN CONNECTION WIOTH RECEIPT OF FINANCIAL ASSISTANCE SHALL SUBMIT PERIODICALLY TO THE SECRETARY DATA AND INFORMATION WHICH REASONABLY SUPPORTS THE ENTITY'S COMPLIANCE WITH SUCH ASSURANCES. THE SECRETARY MAY NOT WAIVE THE REQUIREMENT OF THE PRECEDING SENTENCE.

"STATE MEDICAL FACILITIES PLAN //42 USC 300O-2.//

"SEC. 1603. (A) BEFORE AN APPLICATION FOR ASSISTANCE UNDER THIS TITLE (OTHER THAN PART D) //POST, P. 2268.// FOR A MEDICAL FACILITY PROJECT DESCRIBED IN SECTION 1601 MAY BE APPROVED, THE STATE AGENCY OF THE STATE IN WHICH SUCH PROJECT IS LOCATED MUST HAVE SUBMITTED TO THE SECRETARY AND HAD APPROVED BY HIM A STATE MEDICAL FACILITIES PLAN. TO BE APPROVED BY THE SECRETARY A STATE MEDICAL FACILITIES PLAN FOR A STATE MUST--'

"(1) PRESCRIBE THAT THE STATE AGENCY OF THE STATE SHALL ADMINISTER OR SUPERVISE THE ADMINISTRATION OF THE PLAN AND CONTAIN EVIDENCE SATISFACTORY TO THE SECRETARY THAT THE STATE AGENCY HAS THE AUTHORITY TO CARRY OUT THE PLAN IN CONFOMITY WITH THIS TITLE;

"(2) PRESCRIBE THAT THE STATEWIDE HEALTH COORDINATING COUNCIL OF THE STATE SHALL ADVISE AND CONSULT WITH THE STATE AGENCY IN CARRYING OUT THE PLAN;

"(3) BE APPROVED BY THE STATEWIDE HEALTH COORDINATING COUNCIL AS CONSISTENT WITH THE STATE HEALTH PLAN DEVELOPED PURSUANT TO SECTION 1524(C)(2);

"(4) SET FORTH, IN ACCORDANCE WITH CRITERIA ESTABLISHED IN REGULATIONS PRESCRIBED UNDER SECTION 1602(A) AND ON THE BASIS OF A STATEWIDE INVENTORY OF EXISTING MEDICAL FACILITIES, A SURVEY OF NEED, AND THE PLANS OF HEALTH YSTEMS AGENCIES WITHIN THE STATE--'

"(A) THE NUMBER AND TYPE OF MEDICAL FACILITY BEDS AND MEDICAL FACILITIES NEEDED TO IMPROVE ADEQUATE INPATIENT CARE TO PEOPLE RESIDING IN THE STATE, AND A PLAN FOR THE DISTRIBUTION OF SUCH BEDS AND FACILITIES IN HEALTH SERVICES AREAS THROUGHOUT THE STATE,

"(B) THE NUMBER AND TYPE OF OUTPATIENT AND OTHER MEDICAL FACILITIES NEEDED TO PROVIDE ADEQUATE PUBLIC HEALTH SERVICES AND OUTPATIENT CARE TO PEOPLE RESIDING IN THE STATE, AND A PLAN FOR THE DISTRIBUTION OF SUCH FACILITIES IN HEALTH SERVICE AREAS THROUGHOUT THE STATE, AND

"(C) THE EXTENT TO WHICH EXISTING MEDICAL FACILITIES IN THE STATE ARE IN NEED OF MODERNIZATION OR CONVERSION TO NEW USES;

"(5) SET FORTH A PROGRAM FOR THE STATE FOR ASSISTANCE UNDER THIS TITLE FOR PROJECTS DESCRIBED IN SECTION 1601, WHICH PROGRAM SHALL INDICATE THE TYPE OF ASSISTANCE WHICH SHOULD BE MADE AVAILABLE TO EACH PROJECT AND SHALL CONFORM TO THE ASSESSMENT OF NEED SET FORTH PURSUANT TO PARAGRAPH (4) AND REGULATIONS PROMULGATED UNDER SECTION 1602(A);

"(6) SET FORTH (IN ACCORDANCE WITH REGULATIONS PROMULGATED UNDER SECTION 1602(A)) PRIORITIES FOR THE PROVISION OF ASSISTANCE UNDER THIS TITLE FOR PROJECTS IN THE PROGRAM SET FORTH PURSUANT TO PARAGRAPH (4);

"(7) PROVIDE MINIMUM REQUIREMENTS (TO BE FIXED IN THE DISCRETION OF THE STATE AGENCY) FOR THE MAINTENANCE AND OPERATION OF FACILITIES WHICH RECEIVE ASSISTANCE UNDER THIS TITLE, AND PROVIDE FOR ENFORCEMENT OF SUCH STANDARDS;

"(8) PROVIDE FOR AFFORDING TO EVERY APPLICANT FOR ASSISTANCE FOR A MEDICAL FACILITIES PROJECT UNDER THIS TITLE AN OPPORUNITY FOR A HEARING BEFORE THE STATE AGENCY; AND

"(9) PROVIDE THAT THE STATE AGENCY WILL FROM TIME TO TIME, BUT NOT LESS OFTEN THAN ANNUALLY, REVIEW THE PLAN AND SUBMIT TO THE SECRETARY ANY MODIFICATIONS THEREOF WHICH IT CONSIDERS NECESSARY.

"(B) THE SECRETARY SHALL APPROVE ANY STATE MEDICAL FACILITIES PLAN AND ANY MODIFICATION THEREOF WHICH COMPLIES WITH THE PROVISIONS OF SUBSECTION (A) IF THE STATE AGENCY, AS DETERMINED UNDER THE REVIEW MADE UNDER SECTION 1535(D), IS ORGANIZED AND OPERATED IN THE MANNER PRESCRIBED BY SECTION 1522 AND IS CARRYING OUT ITS FUNCTIONS UNDER SECTION 1523 IN A MANNER SATISFACTORY TO THE SECRETARY. IF ANY SUCH PLAN OR MODIFICATION THEREOF SHALL HAVE BEEN DISAPPROVED BY THE SECRETARY FOR FAILURE TO COMPLY WITH SUBSECTION (A), THE SECRETARY SHALL, UPON REQUEST OF THE STATE AGENCY, AFFORD IT AN OPPORUNITY FOR HEARING.

"APPROVAL OF PROJECTS //42 USC 300O-3.//

"SEC. 1604. (A) FOR EACH PROJECT DESCRIBED IN SECTION 1601 AND INCLUDED WITHIN A STATE'S STATE MEDICAL FACILITIES PLAN APPROVED UNDER SECTION 1603 THERE SHALL BE SUBMITTED TO THE SECRETARY, THROUGH THE STATE'S STATE AGENCY, AN APPLICATION. AN APPLICATION FOR A GRANT UNDER SECTION 1625 SHALL BE SUBMITTED DIRECTLY TO THE SECRETARY. EXCEPT AS PROVIDED IN SECTION 1625, THE APPLICANT UNDER SUCH AN APPLICATION MAY BE A STATE, A POLITICAL SUBDIVISION OF A STATE OR ANY OTHER PUBLIC ENTITY, OR A PRIVATE NONPROFIT ENTITY. IF TWO OR MORE ENTITIES JOIN IN A PROJECT, AN APPLICATION FOR SUCH PROJECT MAY BE FILED BY ANY OF SUCH ENTITIES OR BY ALL OF THEM.

"(B)(1) EXCEPT AS AUTHORIZED UNDER PARAGRAPH (2), AN APPLICATION FOR ANY PROJECT SHALL SET FORTH--'

"(A) IN THE CASE OF A MODERNIZATION PROJECT FOR A MEDICAL FACILITY FOR CONTINUATION OF EXISTING HEALTH SERVICES, A FINDING BY THE STATE AGENCY OF A CONTINUED NEED FOR SUCH SERVICES, AND, IN THE CASE OF ANY OTHER PROJECT FOR A MEDICAL FACILITY, A FINDING BY THE STATE AGENCY OF THE NEED FOR THE NEW HEALTH SERVICES TO BE PROVIDED THROUGH THE MEDICAL FACILITY UPON COMPLETION OF THE PROJECT;

"(B) A DESCRIPTION OF THE SITE OF SUCH PROJECT;

"(C) PLANS AND SPECIFICATIONS THEREFOR WHICH MEET THE REQUIREMENTS OF THE REGULATIONS PRESCRIBED UNDER SECTION 1602(A);

"(D) REASONABLE ASSURANCE THAT TITLE TO SUCH SITE IS OR WILL BE VESTED IN ONE OR MORE OF THE ENTITIES FILING THE APPLICATION OR IN A PUBLIC OR OTHER NONPROFIT ENTITY WHICH IS TO OPERATE THE FACILITY ON COMPLETION OF THE PROJECT;

"(E) REASONABLE ASSURANCE THAT ADEQUATE FINANCIAL SUPPORT WILL BE AVAILABLE FOR THE COMPLETION OF THE PROJECT AND FOR ITS MAINTENANCE AND OPERATION WHEN COMPLETED, AND, FOR THE PURPOSE OF DETERMINING IF THE REQUIREMENTS OF HTIS SUBPARAGRAPH ARE MET, FEDERAL ASSISTANCE PROVIDED DIRECTLY TO A MEDICAL FACILITY WHICH IS LOCATED IN AN AREA DETERMINED BY THE SECRETARY TO BE AN URBAN OR RURAL POVERTY AREA OR THROUGH BENEFITS PROVIDED INDIVIDUALS SERVED AT SUCH FACILITY SHALL BE CONSIDERED AS FINANCIAL SUPPORT;

"(F) THE TYPE OF ASSISTANCE BEING SOUGHT UNDER THIS TITLE FOR THE PROJECT;

"(G) EXCEPT IN THE CASE OF A PROJECT UNDER SECTION 1625, A CERTIFICATION BY THE STATE AGENCY OF THE FEDERAL SHARE FOR THE PROJECT;

"(H) REASONABLE ASSURANCE THAT ALL LOBORERS AND MECHANICS EMPLOYED BY CONTRACTORS OR SUBCONTRACTORS IN THE PERFORMANCE OF WORK ON A PROJECT WILL 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 ACT OF MARCH 3, 1931 (40 U.S.C. 276A - 276A - 5, KNOWN AS THE DAVIS-BACON ACT), //40 USC 276A NOTE.// AND THE SECRETARY OF LABOR SHALL HAVE WITH RESPECT TO SUCH LABOR STANDARDS THE AUTHORITY AND FUNCTIONS SET FORTH IN REORGANIZATION PLAN NUMBERED 14 OF 1950 (15 F.R. 3176; 5 U.S.C. APPENDIX) AND SECTION 2 OF THE ACT OF JUNE 13, 1934 (40 U. S.C. 276C);

"(I) IN THE CAST OF A PROJECT FOR THE CONSTRUCTION OR MODERNIZATION OF AN OUTPATIENT FACILITY, REASONABLE ASSURANCE THAT THE SERVICES OF A GENERAL HOSPITAL WILL BE AVAILABLE TO PATIENTS AT SUCH FACILITY WHO ARE IN NEED OF HOSPITAL CARE; AND

"(J) REASONABLE ASSURANCE THAT ALL TIMES AFTER SUCH APPLICATION IS APPROVED (I) THE FACILITY OR PORTION THEREOF TO BE CONSTRUCTED, OR MODERNIZED, OR CONVERTED WILL BE MADE AVAILABLE TO ALL PERSONS RESIDING OR EMPLOYED IN THE AREA SERVED BY THE FACILITY, AND (II) THERE WILL BE MADE AVAILABLE IN THE FACILITY OR PORTION THEREOF TO BE CONSTRUCTED, MODERNIZED, OR CONVERTED A REASONABLE VOLUME OF SERVICES TO PERSONS UNABLE TO PAY THEREFOR AND THE SECRETARY, IN DETERMINING THE REASONABLENESS OF THE VOLUME OF SERVICES PROVIDED, SHALL TAKE INTO CONSIDERATION THE EXTENT TO WHICH COMPLIANCE IS FEASIBLE FROM A FINANCIAL VEWPOINT.

"(2)(A) THE SECRETARY MAY WAIVE--'

"(I) THE REQUIREMENTS OF SUBPARAGRAPH (C) OF PARAGRAPH (1) FOR COMPLIANCE WITH MODERNIZATION AND EQUIPMENT STANDARDS PRESCRIBED PURSUANT TO SECTION 1602(A)(2), AND

"(II) THE REQUIREMENT OF SUBPARAGRAPH (D) OF PARAGRAPH (1) RESPECTING TITLE TO A PROJECT SITE,

IN THE CASE OF AN APPLICATION FOR A PROJECT DESCRIBED IN SUBPARAGRAPH (B).

"(B) A PROJECT REFERRED TO IN SUBPARAGRAPH (A) IS A PROJECT--'

"(I) FOR THE MODERNIZATION OF AN OUTPATIENT MEDICAL FACILITY WHICH WILL PROVIDE GENERAL PURPOSE HEALTH SERVICES, WHICH IS NOT PART OF A HOSPITAL, AND WHICH WILL SERVE A MEDICALLY UNDERSERVED POPULATION AS DEFINED IN SECTION 1633 OR AS DESIGNATED BY A HEALTH SYSTEMS AGENCY, AND

"(III) FOR WHICH THE APPLICANT SEEKS (I) NOT MORE THAN $20,000 FROM THE ALLOTMENTS MADE UNDER APRT B //POST, P. 2262.// TO THE STATE IN WHICH IT IS LOCATED, OR (II) A LOAN UNDER PART C //POST, P. 2264.// THE PRINCIPAL AMOUNT OF WHICH DOES NOT EXCEED $20,000.

"(C) THE SECRETARY SHALL APPROVE AN APPLICATION SUBMITTED UNDER SUBSECTION (B) (OTHER THAN AN APPLICATION FOR A GRANT UNDER SECTION 1625) IF--'

"(1) IN THE CASE OF A PROJECT TO BE ASSISTED FROM AN ALLOTMENT MADE UNDER PART B, THERE ARE SUFFICIENT FUNDS IN SUCH ALLOTMENT TO PAY THE FEDERAL SHARE OF THE PROJECT; AND

"(2) THE SECRETARY FINDS THAT--'

"(A) THE APPLICATION (I) IS IN CONFORMITY WITH THE STATE MEDICAL FACILITIES PLAN APPROVED UNDER SECTION 1603, (II) HAS BEEN APPROVED AND RECOMMENDED BY THE STATE AGENCY, (III) IS FOR A PROJECT WHICH IS ENTITLED TO PRIORITY OVER OTHER PROJECTS WITHIN THE STATE AS DETERMENED IN ACCORDANCE WITH THE APPROVED STATE MEDICAL FACILITIES PLAN, AND (IV) CONTAINS THE ASSURANCES REQUIRED BY SUBSECTION (B); AND

"(B) THE PLANS AND SPECIFICATIONS FOR THE PROJECT MEET THE REQUIREMENTS OF THE REGULATIONS PRESCRIBED PURSUANT TO SECTION 1602 (A).

"(D) NO APPLICATION (OTHER THAN AN APPLICATION FOR A GRANT UNDER SECTION 1625) SHALL BE DISAPPROVED UNTIL THE SECRETARY HAS AFFORDED THE STATE AGENCY AN OPPORUNITY FOR A HEARING.

"(E) AMENDMENT OF ANY APPROVED APPLICATION SHALL BE SUBJECT TO APPROVAL IN THE SAME MANNER AS AN ORIGINAL APPLICATION.

"(F) EACH APPLICATION SHALL BE REVIEWED BY HEALTH SYSTEMS AGENCIES IN ACCORDANCE WITH SECTION 1513(E). //ANTE, P. 2235.//

"PART B--ALLOTMENTS "ALLOTMENTS //42 USC 300P.//

"SEC. 1610. (A) FOR EACH FISCAL YEAR, THE SECRETARY SHALL, IN ACCORDANCE WITH REGUALTIONS, MAKE FROM SUMS APPROPRIATED FOR SUCH FISCAL YEAR UNDER SECTION 1513 ALLOTMENTS AMONG THE STATES ON THE BASIS OF THE POPULATION, THE FINANCIAL NEED, AND NEED FOR MEDICAL FACILITIES PROJECTS DESCRIBED IN SECTION 1601 OF THE RESPECTIVE STATES. THE POPULATION OF THE STATES SHALL BE DETERMINED ON THE BASIS OF THE LATEST FIGURES CERTIFIED BY THE SECRETARY OF COMMERCE.

"(B)(1) THE ALLOTMENT TO ANY STATE (OTHER THAN GUAM, AMERICAN SAMOA, THE VIRGIN ISLANDS, OR THE TRUST TERRITORY OF THE PACIFIC ISLANDS) FOR ANY FISCAL YEAR SHALL BE NOT LESS THAN $1,000,000; AND THE ALLOTMENT TO GUAM, AMERICAN SAMOA, THE VIRGIN ISLANDS, AND THE TRUST TERRITORY OF THE PACIFIC ISLANDS FOR ANY FISCAL YEAR SHALL BE NOT LESS THAN $500,000 EACH.

"(2) NOTWITHSTANDING PARAGRAPH (1), IF THE AMOUNT APPROPRIATED UNDER SECTION 1613 FOR ANY FISCAL YEAR IS LESS THAN THE AMOUNT REQUIRED TO PROVIDE ALLOTMENTS IN ACCORDANCE WITH PARAGRAPH (1), THE AMOUNT OF THE ALLOTMENT TO ANY STATE FOR SUCH FISCAL YEAR SHALL BE AN AMOUNT WHICH BEARS THE SAME RATIO TO THE AMOUNT PRESCRIBED FOR SUCH STATE BY PARAGRAPH (1) AS THE AMOUNT APPROPRIATED FOR SUCH FISCAL YEAR BEARS TO THE AMOUNT OF APPROPRIATIONS NEEDED TO MAKE ALLOTMENTS TO ALL THE STATES IN ACCORDANCE WITH PARAGRAPH (1).

"(C) ANY AMOUNT ALLOTTED TO A STATE FOR A FISCAL YEAR UNDER SUBSECTION (A) AND REMAINING UNOBLIGATED AT THE END OF SUCH YEAR SHALL REMAIN AVAILABLE TO SUCH STATE, FOR THE PURPOSE FOR WHICH MADE, FOR THE NEXT TWO FISCAL YEARS (AND FOR SUCH YEARS ONLY), IN ADDITION TO THE AMOUNTS ALLOTTED TO SUCH STATE FOR SUCH PURPOSES FOR SUCH NEXT TWO FISCAL YEARS; EXCEPT THAT ANY SUCH AMOUNT WHICH IS UNOBLIGATED AT THE END OF THE FIRST OF SUCH NEXT TWO YEARS AND WHICH THE SECRETARY DETERMINES WILL REMAIN UNOBLIGATED AT THE CLOSE OF THE SECOND OF SUCH NEXT TWO YEARS MAY BE REALLOTTED BY THE SECRETARY, TO BE AVAILABLE FOR THE PURPOSES FOR WHICH MADE UNTIL THE CLOSE OF THE SECOND OF SUCH NEXT TWO YEARS, TO OTHER STATES WHICH HAVE NEED THEREFOR, ON SUCH BASIS AS THE SECRETARY DEEMS EQUITABLE AND CONSISTENT WITH THE PURPOSES OF THIS TITLE. ANY AMOUNT SO REALLOTTED TO A STATE SHALL BE IN ADDITION TO THE AMOUNTS AND AVAILABLE TO THE STATE FOR THE SAME PERIOD.

"PAYMENTS FROM ALLOTMENTS //42 USC 300P-1.//

"SEC. 1611. (A) IF WITH RESPECT TO ANY MEDICAL FACILITY PROJECT APPROVED UNDER SECTION 1604 THE STATE AGENCY CERTIFIES (UPON THE BASIS OF INSPECTION BY IT) TO THE SECRETARY THAT, IN ACCORDANCE WITH APPROVED PLANS AND SPECIFICATIONS, WORK HAS BEEN PERFORMED UPON THE PROJECT OR PURCHASES HAVE BEEN MADE FOR IT AND THAT PAYMENT FROM THE APPLICABLE ALLOTMENT OF THE STATE IN WHICH THE PROJECT IS LOCATED IS DUE FOR THE PROJECT, THE SECRETARY SHALL, EXCEPT AS PROVIDED IN SUBSECTION (B), MADE SUCH PAYMENT TO THE STATE.

"(B) THE SECRETARY IS AUTHORIZED TO NOT MAKE PAYMENTS TO A STATE PURSUANT TO SUBSECTION (A) IN THE FOLLOWING CIRCUMSTANCES:

"(1) IF SUCH STATE IS NOT AUTHORIZED BY LAW TO MAKE PAYMENTS FOR AN APPROVED MEDICAL FACILITY PROJECT FROM THE PAYMENT TO BE MADE BY THE SECRETARY PURSUANT TO SUBSECTION (A), OR IF THE STATE SO REQUESTS, THE SECRETARY SHALL MAKE THE PAYMENT FROM THE STATE ALLOTMENT DIRECTLY TO THE APPLICANT FOR SUCH PROJECT.

"(2) IF THE SECRETARY, AFTER INVESTIGATION OR OTHERWISE, HAS REASON TO BELIEVE THAT ANY ACT (OR FAILURE TO ACT) HAS OCCURED REQUIRING ACTION PURSUANT TO SECTION 1612, PAYMENT BY THE SECRETARY MAY, AFTER HE HAS GIVEN THE STATE AGENCY NOTICE AND OPPORUNITY FOR HEARING PURSUANT TO SUCH SECTION, BE WITHHELD, IN WHOLE OR IN PART, PENDING CORRECTIVE ACTION OR ACTION BASED ON SUCH HEARING.

IN NO EVENT MAY THE TOTAL PAYMENTS MADE UNDER SUBSECTION (A) WITH RESPECT TO ANY PROJECT EXCEED AN AMOUNT EQUAL TO THE FEDERAL SHARE OF SUCH PROJECT.

"(C) IN CASE AN AMENDMENT TO AN APPROVED APPLICATION IS APPROVED AS PROVIDED IN SECTION 1604 OR THE ESTIMATED COST OF A PROJECT IS REVISED UPWARD, ANY ADDITIONAL PAYMENT WITH RESPECT THERETO MAY BE MADE FORM THE APPLICABLE ALLOTMENT OF THE STATE FOR THE FISCAL YEAR IN WHICH SUCH AMENDMENT OR REVISIONS IS APPROVED.

"(D) IN ANY FISCAL YEAR--'

"(1) NOT MORE THAN 20 PER CENTUM OF THE AMOUNT OF A STATE'S ALLOTMENT AVAILABLE FOR OBLIGATION IN THAT FISCAL YEAR MAY BE OBLIGATED FOR PROJECTS IN THE STATE FOR CONSTRUCTION OF NEW FACILITIES FOR THE PROVISION OF INPATIENT HEALTH CARE TO PERSONS RESIDING IN AREAS OF THE STATE WHICH HAVE EXPERIENCED RECENT RAPID POPULATION GROWTH; AND

"(2) NOT LESS THAN 25 PER CENTUM OF THE AMOUNT OF A STATE'S ALLOTMENT AVAILABLE FOR OBLIGATION IN THAT FISC YEAR SHALL BE OBLIGATED FOR PROJECTS FOR OUTPATIENT FACILITIES WHICH WILL SERVE MEDICALLY UNDERSERVED POPULATIONS.

IN THE ADMINISTRATION OF THIS PART, THE SECRETARY SHALL SEEK TO ASSURE THAT IN EACH FISCAL YEAR AT LEAST ONE HALF OF THE AMOUNT OBLIGATED FOR PROJECTS PURSUANT TO PARAGRAPH (2) SHALL BE OBLIGATED FOR PROJECTS WHICH WILL SERVE RURAL MEDICALLY UNDERSERVED POPULATIONS.

"WITHHOLDING OF PAYMENTS AND OTHER COMPLIANCE ACTIONS //42 USC 300P-2.//

"SEC. 1612. (A) WHENEVER THE SECRETARYM AFTER REASONABLE NOTICE AND OPPORUNITY FOR HEARING TO THE STATE AGENCY CONCERNED FINDS--'

"(1) THAT THE STATE AGENCY IS NOT COMPLYING SUBSTANTIALLY WITH THE PROVISIONS REQUIRED BY SECTION 1603 TO BE INCLUDED IN TIS STATE MEDICAL FACILITIES PLAN,

"(2) THAT ANY ASSURANCE REQUIRED TO BE GIVEN IN AN APPLICATION FILED UNDER SECTION 1604 IS NOT BEING OR CANNOT BE CARRIED OUT, OR

"(3) THAT THERE IS A SUBSTANTIAL FAILURE TO CARRY OUT PLANS AND SPECIFICATIONS APPROVED BY THE SECRETARY UNDER SECTION 1604,

THE SECRETARY SHALL TAKE THE ACTION AUTHORIZED BY SUBSECTION (B) UNLESS, IN THE CASE OF COMPLIANCE WITH ASSURANCES, THE SECRETARY REQUIRES COMPLIANCE BY OTHER MEANS AUTHORIZED BY LAW.

"(B)(1) UPON FINDING DESCRIBED IN SUBSECTION (A) AND AFTER NOTICE TO THE STATE AGENCY CONCERNED, THE SECRETARY MAY--'

"(A) WITHHOLD FROM ALL PROJECTS WITHIN THE STATE WITH RESPECT TO WHICH THE FINDING WAS MADE FURTHER PAYMENTS FORM THE STATE'S ALLOTMENT UNDER SECTION 1610, OR

"(B) WITHHOLD FROM THE SPECIFIC PROJECTS WITH RESPECT TO WHICH THE FINDING WAS MADE FURTHER PAYMENTS FROM THE APPLICABLE STATE ALLOTMENT UNDER SECTION 1610.

"(2) PAYMENTS MAY BE WITHHELD, IN WHOLE OR IN PART, UNDER PARAGRAPH (1)--'

"(A) UNTIL THE BASIS FOR THE FINDING UPON WHICH THE WITHHOLDING WAS MADE NO LONGER EXISTS, OR

"(B) IF CORRECTIVE ACTION TO MAKE SUCH FINDING INAPPLICABLE CANNOT BE MADE, UNTIL THE STATE CONCERNED REPAYS OR ARRANGES FOR THE REPAYMENT OF FEDERAL FUNDS PAID NUDER THIS PART FOR PROJECTS WHICH BECAUSE OF THE FINDING ARE NOT ENTITLED TO SUCH FUNDS.

"(C) THE SECRETARY SHALL INVESTIGATE AND ASCERTAIN, ON A PERIODIC BASIS, WITH RESPECT TO EACH ENTITY WHICH IS RECEIVING FINANICAL ASSISTANCE UNDER THIS TITLE OR WHICH HAS RECEIVED FINANCIAL ASSISTANCE UNDER TITLE VI OR THIS TITLE, //42 USC 291.// THE EXTENT OF COMPLIANCE BY SUCH ENTITY WITH THE ASSURANCES REQUIRED TO BE MADE AT THE TIME SUCH ASSISTANCE WAS RECEIVED. IF THE SECRETARY FINDS THAT SUCH AN ENTITY HAS FAILED TO COMPLY WITH ANY SUCH ASSURANCE, THE SECRETARY SHALL TAKE THE ACTION AUTHORIZED BY SUBSECTION (B) OR TAKE ANY OTHER ACTION AUTHORIZED BY LAW (INCLUDING AN ACTION FOR SPECIFIC PERFORMANCE BROUGHT BY THE ATTORNEY GENERAL UPON REQUEST OF THE SECRETARY) WHICH WILL EFFECT COMPLIANCE BY THE ENTITY WITH SUCH ASSURANCES. AN APPROPRIATE ACTION TO EFFECTUATE COMPLIANCE WITH ANY SUCH ASSURANCE MAY BE BROUGHT BY A PERSON OTHER THAN THE SECRETARY ONLY IF A COMPLAINT HAS BEEN FILED BY SUCH PERSON WITH THE SECRETARY AND THE SECRETARY HAS DISMISSED SUCH COMPLAINT OR THE ATTORNEY GENERAL HAS NOT BROUGHT A CIVIL ACTION FOR COMPLIANCE WITH SUCH ASSURANCE WITHIN 6 MONTHS AFTER THE DATE ON WHICH THE COMPLAINT WAS FILED WITH THE SECRETARY.

"AUTHORIZATION OF APPROPRIATIONS //42 USC 300P-3.//

"SEC. 1620. (A) THE SECRETARY, DURING THE PERIOD BEGINNING JULY 1, 1974, AND ENDING JUNE 30, 1977, MAY, IN ACCORDANCE WITH THIS PART, MAKE LOANS FROM THE FUND ESTABLISHED UNDER SECTION 1622(D) TO PAY THE FEDERAL SHARE OF PROJECTS APPROVED UNDER SECTION 1604.

"(B)(1) THE SECRETARY, DURING THE PERIOD BEGINNING JULY 1, 1974, AND ENDING JUNE 30, 1977, MAY, IN ACCORDANCE WITH THIS PART, GUARANTEE TO--'

"(I) NON-FEDERAL LENDERS FOR THIER LOANS TO NONPROFIT PRIVATE ENTITIES FOR MEDICAL FACILITIES PROJECTS, AND

"(II) THE FEDERAL FINANCING BANK FOR ITS LOANS TO NONPROFIT PRIVATE ENTITIES FOR SUCH PROJECTS,

PAYMENT OF PRINCIPAL AND INTEREST ON SUCH LOANS IF APPLICATIONS FOR ASSISTANCE FOR SUCH PROJECTS UNDER THIS TITLE HAVE BEEN APPROVED UNDER SECTION 1604.

"(2) IN THE CASE OF A GUARANTEE OF ANY LOAN TO A NONPROFIT PRIVATE ENTITY UNDER THIS TITLE, THE SECRETARY SHALL PAY, TO THE HOLDER OF SUCH LOAN AND FOR AND ON BEHALF OF THE PROJECT FOR WHICH THE LOAN WAS MADE AMOUNTS SUFFICIENT TO REDUCE BY 3 PER CENTUM PER ANNUM THE NET EFFECTIVE INTEREST RATE OTHERWISE PAYABLE ON SUCH LOAN. EACH HOLDER OF SUCH A LOAN WHICH IS GUARANTEED UNDER THIS TITLE SHALL HAVE A CONTRACTUAL RIGHT TO RECEIVE FROM THE UNITED STATES INTEREST PAYMENTS REQUIRED BY THE PRECEDING SENTENCE.

"(C) THE CUMULATIVE TOTAL OF THE PRINCIPAL OF THE LOANS OUTSTANDING AT ANY TIME WITH RESPECT TO WHICH GUARANTEES HAVE BEEN ISSUED, OR WHICH HAVE BEEN DIRECTLY MADE, MAY NOT EXCEED SUCH LIMITATIONS AS MAY BE SPECIFIED IN APPROPRIATION ACTS.

"(D) THE SECRETARY, WITH THE CONSENT OF THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT, SHALL OBTAIN FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SUCH ASSISTANCE WITH RESPECT TO THE ADMINISTRATION OF THIS PART AS WILL PROMOTE EFFICIENCY AND ECONOMY THEREOF.

"ALLOCATION AMONG THE STATES //42 USC 300Q-1.//

"SEC. 1621. (A) FOR EACH FISCAL YEAR, THE TOTAL AMOUNT OF PRINCIPAL OF--'

"(1) LOANS TO NONPROFIT PRIVATE ENTITIES WHICH MAY BE GUARANTEED, OR

"(2) LOANS WHICH MAY BE DIRECTLY MADE,

UNDER THIS PART SHALL BE ALLOTED BY THE SECRETARY AMONG THE STATES, IN ACCORDANCE WITH REGULATIONS, ON THE BASIS OF THE POPULATION, FINANCIAL NEED, AND NEED FOR MEDICAL FACILITIES PROJECTS DESCRIBED IN SECTION 1601 OF THE RESPECTIVE STATES. THE POPULATION OF THE STATES SHALL BE DETERMINED ON THE BASIS OF THE LATEST FIGURES CERTIFED BY THE SECRETARY OF COMMERCE.

"(B) ANY AMOUNT ALLOTTED TO A STATE FOR A FISCAL YEAR UNDER SUBSECTION (A) AND REMAINING UNOBLIGATED AT THE END OF SUCH YEAR SHALL REMAIN AVAILABLE TO SUCH STATE, FOR THE PURPOSE FOR WHICH MADE, FOR THE NEXT TWO FISCAL YEARS (AND FOR SUCH YEARS ONLY), IN ADDITION TO THE AMOUNTS ALLOTTED TO SUCH STATE FOR USCH PURPOSES FOR SUCH NEXT TWO FISCAL YEARS; EXCEPT THAT ANY SUCH AMOUNT WHICH IS UNOBLIGATED AT THE END OF THE FIRST OF SUCH NEXT TWO YEARS AND WHICH THE SECRETARY DETERMINES WILL REMAIN UNOBLIGATED AT THE CLOSE OF THE SECOND OF SUCH NEXT TWO YEARS MAY BE REALLOTTED BY THE SECRETARY, TO BE AVAILABLE FOR THE PURPOSES FOR WHICH MADE UNTIL THE CLOSE OF THE SECOND OF SUCH NEXT TWO YEARS, TO OTHER STATES WHICH HAVE NEED THEREFORE, ON SUCH BASIS AS THE SECRETARY DEEMS EQUITABLE AND CONSISTENT WITH THE PURPOSES OF THIS TITLE. ANY AMOUNT SO REALLOTTED TO A STATE SHALL BE IN ADDITION TO THE AMOUNTS ALLOTTED AND AVAILABLE TO THE STATE FOR THE SAME PERIOD.

"GENERAL PROVISIONS RELATING TO LOAN GUARANTEES AND LOANS //42 USC 300Q-2.//

"SEC. 1622. (A)(1) THE SECRETARY MAY NOT APPROVE A LOAN GUARANTEE FOR A PROJECT UNDER THIS PART UNLESS HE DETERMINES THAT (A) THWE TERMS, CONDITIONS, SECURITY (IF ANY), AND SCHEDULE AND AMOUNT OF REPAYMENTS WITH RESPECT TO THE LOAN ARE SUFFICIENT TO PROTECT THE FINANCIAL INTERESTS OF THE UNITED STATES AND ARE OTHERWISE REASONABLE, INCLUDING A DETERMINATION THAT THE RATE OF INTEREST DOES NOT EXCEED SUCH PER CENTUM PER ANNUM ON THE PRINCIPAL OBLIGATION OUTSTANDING AS THE SECRETARY DETERMINES TO BE REASONABLE, TAKING INTO ACCOUNT THE RANGE OF INTEREST RATES PREVAILING IN THE PRIVATE MARKET FOR SIMILAR LOANS AND THE RISKS ASSUMED BY THE UNITED STATES, AND (B) THE LOAN WOULD NOT BE AVAILABLE ON REASONABLE TERMS AND CONDITIONS WITHOUT THE GUARANTEE UNDER THIS PART.

"(2)(A) THE UNITED STATES SHALL BE ENTITLED TO RECOVER FROM THE APPLICANT FOR A LOAN GUARANTEE UNDER THIS PART THE AMOUNT OF ANY PAYMENT MADE PURSUANT TO SUCH GUARANTEE, UNLESS THE SECRETARY FOR GOOD CAUSE WAIVES SUCH RIGHT OF RECOVERY; AND , UPON MAKING ANY SUCH PAYMENT, THE UNITED STATES SHALL BE SUBROGATED TO ALL OF THE RIGHTS OF THE RECIPIENT OF THE PAYMENTS WITH RESPECT TO WHICH THE GUARANTEE WAS MADE.

"(B) TO THE EXTENT PERMITTED BY SUBPARAGRAPH (C), ANY TERMS AND CONDITIONS APPLICABLE TO A LOAN GUARANTEE UNDER THIS PART (INCLUDING TERMS AND CONDITIONS IMPOSED UNDER SUBPARAGRAPH (D)) MAY BE MODIFIED BY THE SECRETARY TO THE EXTENT HE DETERMINES IT TO BE CONSISTENT WITH THE FINANCIAL INTEREST OF THE UNITED STATES.

"(C) ANY LOAN GUARANTEE MADE BY THE SECRETARY UNDER THIS PART SHALL BE INCONTESTABLE (I) IN THE HANDS OF AN APPLICANT ON WHOSE BEHALF SUCH GUARANTEE IS MADE UNLESS THE APPLICANT ENGAGED IN FRAUD OR MISREPRESENTATION IN SECURING SUCH GUARANTEE, AND (II) AS TO ANY PERSON (OR HIS SUCCESSOR IN INTEREST) WHO MAKES OR CONTRACTS TO MAKE A LOAN TO SUCH APPLICANT IN RELIANCE THEREON UNLESS SUCH PERSON (OR HIS SUCESSOR IN INTEREST) ENGAGED IN FRAUD OR MISREPRESENTATION IN MAKING OR CONTRACTING TO MAKE SUCH LOAN.

"(D) GUARANTEES OF LOANS UNDER THIS PART SHALL BE SUBJECT TO SUCH FURTHER TERMS AND CONDITIONS AS THE SECRETARY DETERMINES TO BE NECESSARY TO ASSURE THAT THE PURPOSES OF THIS TITLE WILL BE ACHIEVED.

"(B)(1) THE SECRETARY MAY NOT APPROVE A LOAN UNDER THIS PART UNLESS--'

"(A) THE SECRETAYR IS REASONABLY SATISFIED THAT THE APPLICANT UNDER THE PROJECT FOR WHICH THE LOAN WOULD BE MADE WILL BE ABLE TO AMKE PAYMENTS OF PRINCIPAL AND INTEREST THEREON WHEN DUE, AND

"(B) THE APPLICANT PROVIDES THE SECRETARY WITH REASONABLE ASSURANCES THAT THERE WILL BE AVAILABLE TO IT SUCH ADDITIONAL FUNDS AS MAY BE NECESSARY TO COMPLETE THE PROJECT OR UNDERTAKING WITH RESPECT TO WHICH SUCH LOAN IS REQUESTED.

"(2) ANY LOAN MADE UNDER THIS APRT SHALL (A) HAVE SUCH SECURITY, (B) HAVE SUCH MATURITY DATE, (C) BE REPAYABLE IN SUCH INSTALLMENTS, (D) BEAR INTEREST AT A RATE COMPARABLE TO THE CURRENT RATE OF INTEREST PREVAILING, ON THE DATE THE LOAN IS MADE, WITH RESPECT TO LOANS GUARANTEED UNDER THIS PART, MINUS 3 PER CENTUM PER ANNUM, AND (E) BE SUBJECT TO SUCH OTHER TERMS AND CONDITIONS (INCLUDING PROVISIONS FOR RECOVERY IN CASE OF DEFAULT), AS THE SECRETARY DETERMINES TO BE NECESSARY TO CARRY OUT THE PUPOSES OF THIS TITLE WHILE ADEQUATELY PROTECTING THE FINANCIAL INTERESTS OF THE UNITED STATES.

"(3) THE SECRETARY MAY, FOR GOOD CAUSE BUT WITH DUE REGARD TO THE FINANCIAL INTERESTS OF THE UNITED STATES, WAIVE ANY RIGHT OF RECOVERY WHICH HE HAS BY REASONS OF THE FAILURE OF A BORROWER TO MAKE PAYMENTS OF PRINCIPAL OF AND INTEREST ON A LOAN MADE UNDER THIS PART, EXCEPT THAT IF SUCH LOAN SI SOLD AND GUARANTEED, ANY SUCH WAIVER SHALL HAVE NO EFFECT UPON THE SECRETARY'S GUARANTEE OF TIMELY PAYMENT OF PRINCIPAL AND INTEREST.

"(C)(1) THE SECRETARY SHALL FROM TIME TO TIME, BUT WITH DUE REGARD TO THE FINANCIAL INTERESTS OF THE UNITED STATES, SELL LOANS MADE UNDER THIS PART EITHER ON THE PRIVATE MARKET OR TO THE FEDERAL NATIONAL MORTGAGE ASSOCIATION IN ACCORDANCE WITH SECTION 302 OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION CHARTER ACT //12 USC 1717.// OR TO THE FEDERAL FINANCING BANK.

"(2) ANY LOAN SO SOLD SHALL BE SOLD FOR AN AMOUNT WHICH IS EQUAL (OR APPROXIMATELY EQUAL) TO THE AMOUNT OF THE UNPAID PRINCIPAL OF SUCH LOANS AS OF TIME OF SALE.

"(3)(A) THE SECRETARY IS AUTHORIZED TO ENTER INTO AN AGREEMENT WITH THE PURCHASER OF ANY LOAN SOLD UNDER THIS PART UNDER WHICH THE SECRETARY AGREES--'

"(I) TO GUARANTEE TO SUCH PURCHASER (AND ANY SUCCESSOR IN INTEREST TO SUCH PURCHASER) PAYMENTS OF THE PRINCIPAL AND INTEREST PAYABLE UNDER SUCH LOAN, AND

"(II) TO PAY AS AN INTEREST SUBSIDY TO SUCH PURCHASER (AND ANY SUCCESSOR IN INTEREST OF SUCH PURCHASER) AMOUNTS WHICH, WHEN ADDED TO THE AMOUNT OF INTEREST PAYABLE ON SUCH LOAN, ARE EQUIVALENT TO A REASONABLE RATE OF INTEREST ON SUCH LOAN AS DETERMINED BY THE SECRETARY AFTER TAKING INTO ACCOUNT THE RANGE OF PREVAILING INTEREST RATES IN THE PRIVATE MARKET ON SIMILAR LOANS AND THE RISKS ASSUMED BY THE UNITED STATES.

"(B) ANY AGREEMENT UNDER SUBPARAGRAPH (A)--'

"(I) MAY PROVIDE THAT THE SECRETARY SHALL ACT AS AGENT OF ANY SUCH PURCHASER, FOR THE PURPOSE OF COLLOECTING FROM THE ENTITY TO WHICH SUCH LOAN WAS MADE AND PAYING OVER TO SUCH PURCHASER ANY PAYMENTS OF PRINCIPAL AND INTEREST PAYABLE BY SUCH ENTITY UNDER SUCH LOAN;

"(II) MAY PROVIDE FOR THE REPURCHASE BY THE SECRETARY OF ANY SUCH LOAN ON SUCH TERMS AND CONDITIONS AS MAY BE SPECIFIED IN THE AGREEMENT;

"(III) SHALL PROVIDE THAT, IN THE EVENT OF ANY DEFAULT BY THE ENTITY TO WHICH SUCH LOAN WAS MADE IN PAYMENT OF PRINCIPAL OR INTEREST DUE ON SUCH LOAN, THE SECRETARY SHALL, UPON NOTIFICATION TO THE PURCHASER (OR TO THE SUCCESSOR IN INTEREST OF SUCH PURCHASER), HAVE THE OPTION TO CLOSE OUT SUCH LOAN (AND ANY OBLIGATIONS OF THE SECRETARY WITH RESPECT THERETO) BY PAYING TO THE PURCHASER (OR HIS SUCCESSOR IN INTEREST) THE TOTAL AMOUNT OF OUTSTANDING PRINCIPAL AND INTEREST DUE THEREON AT THE TIME OF SUCH NOTIFICATION; AND

"(IV) SHALL PROVIDE THAT, IN THE EVENT SUCH LOAN IS CLOSED OUT AS PROVIDED IN CLAUSE (III), OR IN THE EVENT OF ANY OTHER LOSS INCURRED BY THE SECRETARY BY REASON OF TH EFAILURE OF SUCH ENTITY TO MAKE PAYMENTS OF PRINCIPAL OR INTEREST ON USCH LOAN, THE SECRETARY SHALL BE SUBROGATED TO ALL RIGHTS OF SUCH PURCHASER FOR RECOVERY OF SUCH LOSS FROM SUCH ENTITY.

"(4) AMOUNTS RECEIVED BY THE SECRETARY AS PROCEEDS FROM THE SALE OF LOANS UNDER THIS SUBSECTION SHALL BE DEPOSITED IN THE FUND ESTABLISHED UNDER SUBSECTION (D).

"(D)(1) THERE IS ESTABLISHED IN THE TREASURY A LOAN AND LOAN GUARANNTEE FUND (HEREINAFTER IN THIS SUBSECTION REFERRED TO AS THE 'FUND') WHICH SHALL BE AVAILABLE TO THE SECRETARY WITHOUT FISCAL YEAR LIMITATION, IN SUCH AMOUNTS AS AMY BE SPECIFIED FROM TIME TO TIME IN APPROPRIATION ACTS--'

"(A) TO ENABLE HIM TO MAKE LOANS UNDER THIS PART,

"(B) TO ENABLE HIM TO DISCHARGE HIS RESPONSIBILITIES UNDER LOAN GUARANTEES ISSUED BY HIM UNDER THIS PART,

"(C) FOR PAYMENT OF INTEREST UNDER SECTION 1620(B)(2) ON LOANS GUARANTEED UNDER THIS PART,

"(D) FOR REPURCHASE OF LOANS UNDER SUBSECTION (C)(3)(B), AND

"(E) FOR PAYMENT OF INTEREST ON LOANS WHICH ARE SOLD AND GUARANTEED.

THERE ARE AUTHORIZED TO BE APPROPRIATED FROM TIME TO TIME SUCH AMOUNTS AS MAY BE NECESSARY TO PROVIDE THE SUMS REQUIRED FOR THE FUND. THERE SHALL ALSO BE DEPOSITED IN THE FUND AMOUNTS RECEIVED BY THE SECRETARY IN CONNECTION WITH LOANS AND LOAN GUARANTEES UNDER THIS PART AND OTHER PROPERTY OR ASSETS DERIVED BY HIM FROM HIS OPERATIONS RESPECTING SUCH LOANS AND LOAN GUARANTEES, INCLUDING ANY MONEY DERIVED FROM THE SALE OF ASSETS.

"(2) IF AT ANY TIME THE SUMS IN THE FUNDS ARE INSUFFICIENT TO ENABLE THE SECRETARY--'

"(A) TO MAKE PAYMENTS OF INTEREST UNDER SECTION 1620(B)(2),

"(B) TO OTHERWISE COMPLY WITH GUARANTEES UNDER THIS PART OF LOANS TO NONPROFIT PRIVATE ENTITIES,

"(C) IN THE CASE OF A LOAN WHICH WAS MADE, SOLD, AND GUARANTEED UNDER THIS PART, TO MAKE TO THE PURCHASER OF SUCH LOAN PAYMENTS OF PRINCIPAL AND INTEREST ON SUCH LOAN AFTER DEFAULT BY THE ENTITY TO WHICH THE LOAN WAS MADE, OR

"(D) TO REPURCHASE LOANS UNDER SUBSECTION (C)(3)(B), AND

"(E) TO MAKE PAYMENTS OF INTEREST ON LOANS WHICH ARE SOLD AND GUARANTEED,

HE IS AUTHORIZED TO ISSUE TO THE SECRETARY OF THE TREASURY NOTES OR OTHER OBLIGATIONS IN SUCH FORM AND DENOMINATIONS, BEARING SUCH MATURITIES, AND SUBJECT TO SUCH TERMS AND CONDITIONS, AS MAY BE PRESCRIBED BY THE SECRETARY WITH THE APPROVAL OF THE SECRETARY OF THE TREASURY. SUCH NOTES OR OTHER OBLIGATIONS SHALL BEAR INTEREST AT A RATE DETERMINED BY THE SECRETARY OF THE TREASURY, TAKING INTO CONSIDERATION THE CURRENT AVERAGE MARKET YIELD ON OUTSTANDING MARKETABLE OBLIGATIONS ISSUED UNDER THIS PARAGRAPH AND FOR THAT PURPOSE HE MAY USE AS A PUBLIC DEBT TRANSACTION THE PROCEEDS FROM THE SALE OF ANY SECURITIES ISSUED UNDER THE SECOND LIBERTY BOND ACT, //31 USC 774.// AND THE PURPOSES FOR WHICH THE SECURITIES MAY BE ISSUED UNDER THAT ACT ARE EXTENDED TO INCLUDE ANY PURCHASE OF SUCH NOTES AND OBLIGATIONS. THE SECRETARY OF THE TREASURY MAY AT ANY TIME SELL ANY OF THE NOTES OR OTHER OBLIGATIONS ACQUIRED BY HIM UNDER THIS PARAGRAPH. ALL REDEMPTIONS, PURCHASES, AND SALES BY THE SECRETARY OF THE TREASURY OF SUCH NOTES OR OTHER OBLIGATIONS SHALL BE TREATED AS A PUBLIC DEBT TRANSACTIONS OF THE UNITED STATES. SUMS BORROWED UNDER THIS PARAGRAPH SHALL BE DEPOSITED IN THE FUND AND REDEMPTION OF SUCH NOTES AND OBLIGATIONS SHALL BE MADE BY THE SECRETARY FROM THE FUND.

"(E)(1) THE ASSETS, COMMITMENTS, OBLIGATIONS, AND OUTSTANDING BALANCES OF THE LOAN GUARANTEE AND LOAN FUND ESTABLISHED IN THE TREASURY BY SECTION 626 //42 USC 291J-6.// SHALL BE TRANSFERRED TO THE FUND ESTABLISHED BY SUBSECTION (D) OF THIS SECTION.

"(2) TO PROVIDE ADDITIONAL CAPITALIZATION FOR TH EFUND ESTABLISHED UNDER SUBSECTION (D) THERE ARE AUTHORIZED TO BE APPROPRIATED TO THE FUND, SUCH SUMS AS MAY BE NECESSARY FOR THE FISCAL YEARS ENDING JUNE 30, 1975, JUNE 30, 1976, AND JUNE 30, 1977.

"PART D--PROJECT GRANTS "PROJECT GRANTS //42 USC 300R.//

"SEC. 1625. (A) THE SECRETARY MAY MAKE GRANTS FOR CONSTRUCTION OR MODERNIZATION PROJECTS DESIGNED TO (1) ELIMINATE OR PREVENT IMMINENT SAFETY HAZARDS AS DEFINED BY FEDERAL, STATE, OR LOCAL FIRE, BUILDING, OR LIFE SAFETY CODES OR REGULATIONS, OR (2) AVOID NONCOMPLIANCE WITH STATE OR VOLUNTARY LICENSURE OR ACCREDITATION STANDARDS. A GRANT UNDER THIS SUBSECTION MAY ONLY BE MADE TOA STATE OR POLITICAL SUBDIVISION OF A STATE, INCLUDING ANY CITY, TOWN, COUNTY, BOROUGH, HOSPITAL DISTRICT AUTHORITY, OR PUBLIC OR QUASI-PUBLIC CORPORATION, FOR A PROJECT DESCRIBED IN THE PRECEDING SENTENCE FOR ANY MEDICAL FACILITY OWNED OR OPERATED BY IT.

"(B) AN APPLICATION FOR A GRANT UNDER SUBSECTION (A) MAY NOT BE APPROVED UNDER SECTION 1604 UNLESS IT CONTAINS ASSURANCES SATISFACTORY TO THE SECRETARY THAT THE APPLICANT MAKING THE APPLICATION IS SUBMITTED WITHOUT THE GRANT APPLIED FOR.

"(C) THE AMOUNT OF ANY GRANT UNDER SUBSECTION (A) MAY NOT EXCEED 75 PER CENTUM OF THE COST OF THE PROJECT FOR WHICH THE GFRANT IS MADE UNLESS THE PROJECT IS LOCATED IN AN AREA DETERMINED BY THE SECRETARY TO BE AN URBAN OR RURAL POVERTY AREA, IN WHICH CASE THE GRANT MAY COVER UP TO 100 PER CENTUM OF SUCH COSTS.

"(D) OF THE SUMS APPROPRIATED UNDER SECTION 1613 FOR A FISCAL YEAR, THERE SHALL BE MADE AVAILABLE FOR GRANTS UNDER SUBSECTION (A) FOR SUCH FISCAL YEAR 22 PER CENTUM OF SUCH SUMS.

"PART E--GENERAL PROVISIONS "JUDICIAL REVIEW //42 USC 300S.//

"SEC. 1630. IF--'

"(1) THE SECRETARY REFUSES TO APPROVE AN APPLICATION FOR A PROJECT SUBMITTED UNDER SECTION 1604, THE STATE AGENCY THROUGH WHICH SUCH APPLICATION WAS SUBMITTED, OR

"(2) ANY STATE IS DISSATISFIED WITH, OR ANY ENTITY WILL BE ADVERSELY AFFECTED BY, THE SECRETARY'S ACTION UNDER SECTION 1612, SUCH STATE OR ENTITY,

MAY APPEAL TO THE UNITED STATES COURT OF APPEALS FOR THE CIRCUIT IN WHICH SUCH STATE AGENCY, STATE, OR ENTITY IS LOCATED, BY FILING A PETITION WITH SUCH COURT WITHIN SIXTY DAYS AFTER SUCH ACTION. A COPY OF THE PETITION SHALL BE FORTHWITH TRANSMITTED BY THE CLERK OF THE COURT TO THE SECRETARY, OR ANY OFFICER DESIGNATED BY HIM FOR THAT PURPOSE. THE SECRETARY THEREUPON SHALL FILE IN THE COURT THE RECORD OF THE PROCEEDINGS ON WHICH HE BASED HIS ACTION, AS PROVIDED IN SECTION 2112 OF TITLE 28, UNITED STATES CODE. UPON THE FILING OF SUCH PETITION, THE COURT SHALL HAVE JURISDICTION TO AFFIRM THE ACTION OF THE SECRETARY OR TO SET IT ASIDE, IN WHOLE OR IN PART, TEMPORARILY OR PERMANENTLY, BUT UNTIL THE FILING OF THE RECORD, THE SECRETARY MAY MODIFY OR SET ASIDE HIS ORDER. THE FINDINGS OF THE SECRETARY AS TO THE FACTS, IF SUPPORTED BY SUBSTANTIAL EVIDENCE, SHALL BE CONCLUSIVE, BUT THE COURT, FOR GOOD CAUSE SHOWN, MAY REMAND THE CASE TO THE SECRETARY TO TAKE FURTHER EVIDENCE, AND THE SECRETARY MAY THEREUPON MAKE NEW OR MODIFIED FINDINGS OF FACT AND MAY MODIFY HIS PREVIOUS ACTION, AND SHALL FILE IN THE COURT THE RECORD OF THE FURTHER PROCEEDINGS. SUCH NEW OR MODIFIED FINDINGS OF FACT SHALL LIKEWISE BE CONCLUSIVE IF SUPPORTED BY STANTIAL EVIDENCE. THE JUDGMENT OF THE COURT AFFIRMING OR SETTING ASIDE, IN WHOLE OR IN PART, ANY ACTION OF THE SECRETARY SHALL BE FINAL, SUBJECT TO REVIEW BY THE SUPREME COURT OF THE UNITED STATES UPON CERTIORARI OR CERTIFICATION AS PROVIDED IN SECTION 1254 OF TITLE 28, UNITED STATES CODE. THE COMMENCEMENT OF PROCEEDINGS UNDER THIS SECTION SHALL NOT, UNLESS SO SPECIFICALLY ORDERED BY THE COURT, OPERATE AS A STAY OF THE SECRETARY'S ACTION.

"RECOVERY //42 USC 300S-1.//

"SEC. 1631. (A) IF ANY FACILITY CONSTRUCTED, MODERNIZED, OR CONVERTED WITH FUNDS PROVIDED UNDER THIS TITLE IS, AT ANY TIME WITHIN TWENTY YEARS AFTER THE COMPLETION OF SUCH CONSTRUCTION, MODERNIZATION, OR CONVERSION WITH SUCH FUNDS--'

"(1) SOLD OR TRANSFERRED TO ANY PERSON OR ENTITY (A) WHICH IS NOT QUALIFIED TO FILE AN APPLICATION UNDER SECTION 1604, OR (B) WHICH IS NOT APPROVED AS A TRANSFEREE BY THE STATE AGENCY OF THE STATE IN WHICH SUCH FACILITY IS LOCATED, OR ITS SUCCESSOR; OR

"(2) NOT USED AS A MEDICAL FACILITY, AND THE SECRETARY HAS NOT DETERMINED THAT THERE IS GOOD CAUSE FOR TERMINATION OF SUCH USE,

THE UNITED STATES SHALL BE ENTITLED TO RECOVER FROM EITHER THE TRANSFEROR OR THE TRANSFEREE IN THE CASE OF A SALE OR TRANSFER OR FROM THE OWNER IN CASE OF TERMINATION OF USE AN AMOUNT BEARING THE SAME RATIO TO THE THEN VALUE (AS DETERMINED BY THE AGREEMENT OF THE PARTIES FOR THE DISTRICT IN WHICH THE FACILITY IS SITUATED) OF SO MUCH OF SUCH FACILITY AS CONSTITUTED AN APPROVED PROJECT OR PROJECTS. SUCH RIGHT OF RECOVERY SHALL NOT CONSTITUTE A LIEN UPON SUCH FACILITY PRIOR TO JUDGMENT.

"(B) THE SECRETARY MAY WAIVE THE RECOVERY RIGHTS OF THE UNITED STATES UNDER SUBSECTION (A) WITH RESPECT TO A FACILITY IN ANY STATE--'

"(1) IF (AS DETERMINED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY) THE AMOUNT WHICH COULD BE RECOVERED UNDER SUBSECTION (A) WITH RESPECT TO SUCH FACILITY IS APPLIED TO THE DEVELOPMENT, EXPANSION, OR SUPPORT OF ANOTHER MEDICAL FACILITY LOCATED IN SUCH STATE WHICH HAS BEEN APPROVED BY THE STATWIDE HEALTH COORDINATING COUNCIL FOR SUCH STATE AS CONSISTENT WITH THE STATE HEALTH PLAN ESTABLISHED PURSUANT TO SECTION 1524(C); //ANTE, P. 2247.// OR

"(2) IF THE SECRETARY DETERMINES, IN ACCORDANCE WITH REGULATIONS, THAT THERE IS GOOD CAUSE FOR WAIVING SUCH REQUIREMENT WITH RESPECT TO SUCH FACILITY.

IF THE AMOUNT WHICH THE UNITED STATES IS ENTITLED TO RECOVER UNDER SUBSECTION (A) EXCEEDS 90 PER CENTUM OF THE TOTAL COST OF THE CONSTRUCTION OR MODERNIZATION PROJECT FOR A FACILITY, A WAIVER UNDER THIS SUBSECTION SHALL ONLY APPLY WITH RESPECT TO AN AMOUNT WHICH IS NOT MORE THAN 90 PER CENTUM OF SUCH TOTAL COST. THE SECRETARY MAY NOT WAIVE A RIGHT OF RECOVERY WHICH AROSE ONE YEAR BEFORE THE DATE OF THE ENACTMENT OF THIS TITLE.

"STATE CONTROL OF OPERATIONS //42 USC 300S-2.//

"SEC. 1632. EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED, NOTHING IN THIS TITLE SHALL BE CONSTRUED AS CONFERRING ON ANY FEDERAL OFFICER OR EMPLOYEE THE RIGHT TO EXERCISE ANY SUPERVISION OR CONTROL OVER THE ADMINISTRATION, PERSONNEL, MAINTENANCE, OR OPERATION OF ANY FACILITY WITH RESPECT TO WHICH ANY FUNDS HAVE BEEN OR MAY BE EXPENDED UNDER THIS TITLE.

"DEFINITIONS //42 USC 300S-3.//

"SEC. 1633. FOR THE PURPOSES OF THIS TITLE--'

"(1) THE TERM 'STATE' INCLUDES THE COMMONWEALTH OF PUERTO RICO, GUAM, AMERICAN SAMOA, THE TRUST TERRITORY OF THE PACIFIC ISLANDS, THE VIRGIN ISLANDS, AND THE DISTRICT OF COLUMBIA.

"(2) THE TERM 'FEDERAL SHARE' MEANS THE PROPORTION OF THE COST OF A MEDICAL FACILITIES PROJECT WHICH THE STATE AGENCY DETERMINES THE FEDERAL GOVERNMENT WILL PROVIDE UNDER ALLOTMENT PAYMENTS OR A LOAN OR LOAN GUARANTEE UNDER THIS TITLE, EXCEPT THAT--'

"(A) IN THE CASE OF A MODERNIZATION PROJECT--' "(I) DESCRIBED IN SECTION 1604(B)(2)(B), AND "(II) THE APPLICATION FOR WHICH RECEIVED A WAIVER UNDER SECTION 1604(B)(2)(A), THE PROPORTION OF THE COST OF SUCH PROJECT TO BE PAID BY THE FEDERAL GOVERNMENT UNDER ALLOTMENT PAYMENTS OR A LOAN MAY NOT EXCEED $20,000 AND MAY NOT EXCEED 100 PER CENTUM OF THE FIRST $6,000 OF THE COST OF SUCH PROJECT AND 66 2/3 PER CENTUM OF THE NEXT $21,000 OF SUCH COST,

"(B) IN THE CASE OF A PROJECT (OTHER THAN A PROJECT DESCRIBED IN SUBPARAGRAPH (A)) TO BE ASSISTED FROM AN ALLOTMENT MADE UNDER PART B, THE PROPORTION OF THE COST OF SUCH PROJECT TO BE PAID BY THE FEDERAL GOVERNMENT MAY NOT EXCEED 66 2/3 UNLESS THE PROJECT IS LOCATED IN AN AREA DETERMINED BY THE SECRETARY TO BE AN URBAN OR RURAL POVERTY AREA, IN WHICH CASE THE PROPORTION OF THE COST OF SUCH PROJECT TO BE PAID BY TEH FEDERAL GOVERNMENT MAY BE 100 PER CENTUM, AND

"(C) IN THE CASE OF A PROJECT (OTHER THAN A PROJECT DESCRIBED IN SUBPARAGRAPH (A)) TO BE ASSISTED WITH A LOAN OR LOAN GUARANTEE MADE UNDER PART C, THE PRINCIPAL AMOUNT OF THE LOAN DIRECTLY MADE OR GUARANTEED FOR SUCH PROJECT, WHEN ADDED TO ANY OTHER ASSOSTANCE PROVIDED THE PROJECT UNDER THIS TITLE, MAY NOT EXCEED 90 PER CENTUM OF THE COST OF SUCH PROJECT UNLESS THE PROJECT IS LOCATED IN AN AREA DETERMINED BY THE SECRETARY TO BE AN URBAN OR RURAL POVERTY AREA, IN WHICH THE CASE THE PRINCIPAL AMOUNT, WHEN ADDED TO OTHER ASSISTANCE UNDER THIS TITLE, MAY COVER UP TO 100 PER CENTUM OF THE COST OF THE PROJECT.

"(3) THE TERM 'HOSPITAL' INCLUDES GENERAL, TUBERCULOSIS, AND OTHER TYPES OF HOSPITALS, AND RELATED FACILITIES, SUCH AS LABORATORIES, OUTPATIENT DEPARTMENTS, NURSES' HOMES FACILITIES, EXTENDED CARE FACILITIES, FACILITIES RELATED TO PROGRAMS FOR HOME HELATH SERVICES, SELF-CARE UNITS, AND CENTRAL SERVICE FACILITIES, OPERATED IN CONNECTION WITH HOSPITALS, AND ALSO INCLUDES EDUCATION OR TRAINING FACILITIES FOR HELATH PROFESSONAL PERSONNEL OPERATED AS AN INTEGRAL PART OF A HOSPITAL, BUT DOES NOT INCLUDE ANY HOSPITAL FURNISHING PRIMARILY DOMICILIARY CARE.

"(4) THE TERM 'PUBLIC HEALTH CENTER' MEANS A PUBLICALLY OWNED FACILITY FOR THE PROVISION OF PUBLIC HEALTH SERVICES, INCLUDING REALTED PUBLICLY OWNED FACILITIES SUCH AS LABORTORIES, CLINICS, AND ADMINISTRATIVE OFFICES OPERATED IN CONNECTION WITH SUCH A FACILITY.

"(5) THE TERM 'NONPROFIT' AS APPLIED TO ANY FACILITY MEANS A FACILITY WHICH IS PWNED AND OPERATED BY ONE OR MORE NONPROFIT CORPORATIONS OR ASSOCIATIONS NO PART OF THE NET EARNINGS OF WHICH INURES, OR MAY LAWFULLY INURE, TO THE BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL.

"(6) THE TERM 'OUTPATIENT MEDICAL FACILITY' MEANS A MEDICAL FACILITY (LOCATED IN OR APART FROM A HOSPITAL) FOR THE DIAGNOSIS OF DISAGNOSIS AND TREATMENT OF AMBULATORY PATIENTS (INCLUDING AMBULATORY INPATIENTS)--'

"(A) WHICH IS OPERATED IN CONNECTION WITH A HOSPITAL,

"(B) IN WHICH PATIENT CARE IS UNDER THE PROFESSIONAL SUPERVISION OF PERSONS LICENSED TO PRACTICE MEDICINE OR SURGERY IN THE STATE, OR IN THE CASE OF DENTAL DIAGNOSIS OR TREATMENT, UNDER THE PROFESSIONAL SUPERVISION OF PERSONS LICENSED TO PRACTICE DENTISTRY IN THE STATE; OR

"(C) WHICH OFFERS TO PATIENTS NOT REQUIRING HOSPITALIZATION THE SERVICES OF LICENSED PHYSICIANS IN VARIOUS MEDICAL SPECIALTIES, AND WHICH PROVIDES TO ITS PATIENTS A REASONABLY FULL-RANGE OF DIAGNOSTIC AND TREATMENT SERVICES.

"(7) THE TERM 'REHABILITATION FACILITY' MEANS A FACILITY WHICH IS OPERATED FOR THE PRIMARY PURPOSE OF ASSISTING IN THE REHABILITATION OF DISABLED PERSONS THROUGH AN INTEGRATED PROGRAM OF--'

"(A) MEDICAL EVALUATION AND SERVICES, AND

"(B) PSYCHOLOGICAL, SOCIAL, OR VOCATIONAL EVALUATION AND SERVICES, UNDER COMPETENT PROFESSIONAL SUPERVISION, AND IN THE CASE OF WHICH THE MAJOR PORTION OF THE REQUIRED EVALUATION AND SERVICES IS FURNISHED WITHIN THE FACILITY; AND EITHER THE FACILITY IS OPERATED IN CONNECTION WITH A HOSPITAL OR ALL MEDICAL AND RELATED HEALTH SERVICES ARE PRESCRIBED BY, OR ARE UNDER THE GENERAL DIRECTION OF, PERSONS LICENSED TO PRACTICE MEDICINE OR SURGERY IN THE STATE.

"(8) THE TERM 'FACILITY FOR LONG-TERM CARE' MEANS A FACILITY (INCLUDING A SKILLED NURSING OR INTERMEDIATE CARE FACILITY) PROVIDING IN-PATIENT CARE FOR CONVALESCENT OR CHRONIC DISEASE PATIENTS WHO REQUIRED SKILLED NURSING OR INTERMEDIATE CARE AND RELATED MEDICAL SERVICES--'

"(A) WHICH IS A HOSPITAL (OTHER THAN A HOSPITAL PRIMARILY FOR THE CARE AND TREATMENT OF MENTALLY ILL OR TUBERCULOUS PATIENTS) OR IS OPERATED IN CINNECTION WITH A HOSPITAL, OR

"(B) IN WHICH SUCH CARE AND MEDICAL SERVICES ARE PRESCRIBED BY, OR ARE PERFORMED UNDER THE GENREAL DIRECTION OF, PERSONS LICENSED TO PRACTICE MEDICINE OR SURGERY IN THE STATE.

"(9) THE TERM 'CONSTRUCTION' MEANS CONSTRUCTION OF NEW BUILDINGS AND INITIAL EQUIPMENT OF SUCH BUILDINGS AND, IN ANY CASE IN WHICH IT WILL HELP TO PROVIDE A SERVICE NOT PREVIOUSLY PROVIDED IN THE COMMUNITY, EQUIPMENT OF ANY BUILDINGS; INCLUDING ARCHITECTS' FEES, BUT EXCLUDING THE COST OF OFF-SITE IMPROVEMENTS AND, EXCEPT WITH RESPECT TO PUBLIC HEALTH CENTERS, THE COST OF THE ACQUISITION OF LAND.

"(10) THE TERM 'COST' AS APPLIED TO CONSTRUCTION, MODERNIZATION, OR CONVERSION MEANS THE AMOUNT FOUND BY THE SECRETARY TO BE NECESSARY FOR CONSTRUCTION, MODERNIZATION, OR CONVERSION, RESPECTIVELY, UNDER A PROJECT, EXCEPT THAT, IN THE CASE OF A MODERNIZATION PROJECT OR A PROJECT ASSISTED UNDER PART D, //ANTE, P. 2268.// SUCH TERM DOES NOT INCLUDE ANY AMOUNT FOUND BY THE SECRETARY TO BE ATTRIBUTABLE TO EXPANSION OF THE BED CAPACITY OF ANY FACILITY.

"(11) THE TERM 'MODERNIZATION' INCLUDES THE ALTERATION, EXPANSION, MAJOR REPAIR (TO THE EXTENT PERMITTED BY REGULATIONS), REMODELING REPLACEMENT, AND RENOVATION OF EXISTING BUILDINGS (INCLUDING INITIAL EQUIPMENT THEREOF), AND THE REPLACEMENT OF OBSOLETE EQUIPMENT OF EXISTING BUILDINGS.

"(12) THE TERM 'TITLE,' WHEN USED WITH REFERENCE TO A SITE FOR A PROJECT, MEANS A FEE SIMPLE, OR SUCH OTHER ESTATE OR INTEREST (INCLUDING A LEASHOLD ON WHICH THE RENTAL DOES NOT EXCEED 4 PER CENTUM OF THE VALUE OF THE LAND) AS THE SECRETARY FINDS SUFFICIENT TO ASSURE FOR A PERIOD OF NOT LESS THAN TWENTY-FIVE YEARS' UNDISTURBED USE AND POSSESSION FOR THE PURPOSES OF CONSTRUCTION, MODERNIZATION, OR CONVERSION AND OPERATION OF THE PEOJECT FOR A PERIOD OF NOT LESS THAN (A) TWENTY-FIVE YEARS IN THE CASE OF A PROJCT ASSISTED UNDER AN ALLOTMENT OR GRANT UNDER THIS TITLE, OR (B) THE TERM OF REPAYMENT OF A LOAN MADE OR GUARANTEED UNDER THIS TITLE IN THE CASE OF A PROJECT ASSISTED BY A LOAN OR LOAN GUARANTEE.

"(13) THE TERM 'MEDICAL FACILITY' MEANS A HOSPITAL, PUBLICH HEALTH CENTER, OUTPATIENT MEDICAL FACILITY, REHABILITATION FACILITY, FACILITY FOR LONG-TERM CARE, OR OTHER FACILITY (AS MAY BE DESIGNATED BY THE SECRETARY) FOR THE PROVISION OF HEALTH CARE TO AMBULATORY PATIENTS.

"(14) THE TERM 'STATE AGENCY' MEANS THE STATE HEALTH PLANNING AND DEVELOPMENT AGENCY OF A STATE DESIGNATED UNDER TITLE XIV. //42 USC 1351.//

"(15) THE TERM 'URBAN OR RURAL POVERTY AREA' MEANS AN URBAN OR RURAL GEOGRAPHICAL AREA (AS DEFINED BY THE SECRETARY) IN WHICH A PERCENTAGE (AS DEFINED BY THE SECRETARY IN ACCORDANCE WITH THE NEXT SENTENCE) OF THE RESIDENTS OF THE AREA HAVE INCOMES BELOW THE POVERTY LEVEL (AS DEFINED BY THE SECRETARY OF COMMERCE). THE PERCENTAGE REFERRED TO IN THE PRECEDING SENTENCE SHALL BE DEFINED SO THAT THE PERCENTAGE OF THE POPULATION OF THE UNITED STATES RESIDING IN URBAN AND RURAL POVERTY AREAS IS--'

"(A) NOT MORE THAN THE PERCENTAGE OF THE TOTAL POPULATION OF THE UNITED STATES WITH INCOMES BELOW THE POVERTY LEVEL (AS SO DENFINED) PLUS FIVE PER CENTUM, AND

"(B) NOT LESS THAN SUCH PERCENTAGE MINUS FIVE PER CENTUM.

"(16) THE TERM 'MEDICALLY UNDERSERVED POPULATION' MEANS THE POPULATION OF AN URBAN OR RURAL AREA DESIGNATED BY THE SECRETARY AS AN AREA WITH A SHORTAGE OF HEALTH FACILITIES OR A POPULATION GROUP DESIGNATED BY THE SECRETARY AS AHVING A SHORTAGE OF SUCH FACILITIES.

"FINANCIAL STATEMENTS; RECORDS AND AUDIT

//42 USC 300S-4.//

"SEC. 1634. (A) IN THE CASE OF ANY FACILITY FOR WHICH AN ALLOTMENT PAYMENT, GRANT, LOAN, OR LOAN GUARANTEE HAS BEEN MADE UNDER THIS TITLE, THE APPLICANT FOR USCH PAYMENT, GRANT, LOAN, OR LOAN GUARANTEE (OR, IF APPROPRIATE, SUCH OTHER PERSON AS THE SECRETARY MAY PRESCRIBE) SHALL FILE AT LEAST ANNUALLY WITH THE STATE AGENCY FOR THE STATE IN WHICH THE FACILITY IS LOCATED A STATEMENT WHICH SHALL BE IN SUCH FORM AND CONTAIN SUCH INFORMATION, AS THE SECRETARY MAY REQUIRE TO ACCURATELY SHOW--'

"(1) THE FINANCIAL OPERATIONS OF THE FACILITY, AND

"(2) THE COSTS TO THE FACILITY OF PROVIDING HEALTH SERVICES IN THE FACILITY AND THE CHARGES MADE BY THE FACILITY FOR PROVIDING SUCH SERVICES, DURING THE PERIOD WITH RESPECT TO WHICH THE STATEMENT IS FILED.

"(B)(1) EACH ENTITY RECEIVING FEDERAL ASSIATANCE UNDER THIS TITLE SHALL KEEP SUCH RECORDS AS THESECRETARY SHALL PRESCRIBE, INCLUDING RECORDS WHICH FULLY DISCLOSE THE AMOUNT AND DISPOSITION BY SUCH ENTITY OF THE PROCEEDS OF SUCH ASSISATANCE, THE TOTAL COST OF THE PROJECT IN CONNECTION WITH WHICH SUCHH ASSISTANCE IS GIVEN OR USED, THE AMOUNT OF THAT PORTION OF THE COST OF THE PROJECT SUPPLIED BY OTHER SOURCES, AND SUCH OTHER RECORDS AS WILL FACILITATE AN EFFECTIVE AUDIT.

"(2) THE SECRETARY AND THE COMPTROLLER GENERAL OF THE UNITED STATES, OR ANY OF THEIR DULY AUTHORIZED REPRESENTATIVES, SHALL HAVE ACCESS FOR THE PURPOSE OF AUDIT AND EXAMINATION TO ANY BOOKS, DOCUMENTS, PAPERS, AND RECORDS OF SUCH ENTITIES WHICH IN THE OPINION OF THE SECRETARY OR THE COMPTROLLER GENERAL MAY BE REALTED OR PERTINENT TO THE ASSISTANCE REFERRED TO IN PARAGRAPH (1).

"(C) EACH SUCH ENTITY SHALL FILE AT LEAST ANNUALLY WITH THE SECRETARY A STATEMENT WHICH SHALL BE IN SUCH FORM, AND CONTAIN SUCH INFORMATION, AS THE SECRETARY MAY REQUIRE TO ACCURATELY SHOW--'

"(1) THE FINANCIAL OPERATIONS OF THE FACILITY CONSTRUCTED OR MODERNIZED WITH SUCH ASSISTANCE, AND

"(2) THE COSTS TO SUCH FACILITY OF PROVIDING HEALTH SERVICES IN SUCH FACILITY, AND THE CHARGES MADE FOR SUCH SERVICES, DURING THE PERIOD WITH RESPECT TO WHICH THE STATEMENT IS FILED.

"TECHNICAL ASSISTANCE //42 USC 300S-5.//

"SEC. 1635. THE SECRETARY SHALL PROVIDE (EITHER THROUGH THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE OR BY CONTRACT) ALL NECESSARY TECHNICAL AND OTHER NONFINANCIAL ASSISTANCE TO ANY PUBLIC OR OTHER NONPROFIT ENTITY WHICH IS ELIGIBLE TO APPLY FOR ASSISTANCE UNDER THIS TITLE TO ASSIST SUCH ENTITY IN DEVELOPING APPLICATIONS TO BE SUBMITTED TO THE SECRETARY UNDER SECTION 1604. THE SECRETARY SHALL MAKE EVERY EFFORT TO INFORM ELIGIBLE APPLICANTS OF THE AVAILABILITY OF ASSISTANCE UNDER THIS TITLE.

"PART F--AREA HEALTH SERVICES DEVELOPMENT FUNDS "DEVELOPMENT GRANTS FOR AREA HEALTH SERVICES DEVELOPMENT FUNDS //42 USC 300T.//

"SEC. 1640. (A) THE SECRETARY SHALL MAKE IN EACH FISCAL YEAR A GRANT TO EACH HEALTH SYSTEM AGENCY--'

"(1) WITH WHICH THERE IS IN EFFECT A DESIGNATION AGREEMENT UNDER SECTION 1515(C), //ANTE, P. 2239.//

"(2) WHICH HAS IN EFFECT AN HSP AND AIP REVIEWED BY THE STATEWIDE HEALTH COORDINATING COUNCIL, AND "(3) WHICH, AS DETERMINED UNDER THE REVIEW MADE UNDER SECTION 1535(C), //ANTE, P. 2256.// IS ORGANIZED AND OPERATED IN THE MANNER PRESCRIBED BY SECTION 1512(B) //ANTE, P. 2232.// AND IS PERFORMING ITS FUNCTIONS UNDER SECTION 1513 //ANTE, P. 2235.// IN A MANNER SATISFACTORY TO THE SECRETARY TO ENABLE THE AGENCY TO ESTABLISH AND MAINTAIN AN AREA HEALTH SERVICES DEVELOPMENT FUND FROM WHICH IT MAY MAKE GRANTS AND ENTER INTO CONTRACTS IN ACCORDANCE WITH SECTION 1513(C)(3).

"(B)(1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE AMOUNT OF ANY GRANT UNDER SUBSECTION (A) SHALL BE DETERMINED BY THE SECRETARY AFTER TAKING INTO CONSIDERATION THE POPULATION OF THE HEALTH SERVICE AREA FOR WHICH THE HEALTH SYSTEMS AGENCY IS DESIGNATED, THE AVERAGE FAMILY INCOME OF THE AREA, AND THE SUPPLY OF HEALTH SERVICES IN THE AREA.

"(2) THE AMOUNT OF ANY GRANT UNDER SUBSECTION (A) TO A HELATH SYSTEMS AGENCY FOR ANY FISCAL YEAR MAY NOT EXCEED THE PRODUCT OF $1 AND THE POPULATION OF THE HELATH SERVICE AREA FOR WHICH SUCH AGENCY IS DESIGNATED.

"(C) NO GRANT MAY BE MADE UNDER SUBSECTION (A) UNLESS AN APPLICATION THEREFOR HAS BEEN SUBMITTED TO, AND APPROVED BY, THE SECRETARY. SUCH AN APPLICATION SHALL BE SUBMITTED IN SUCH FORM AND MANNER AND CONTAIN SUCH INFORMATION AS THE SECRETARY MAY REQUIRE.

"(D) FOR THE PURPOSE OF MAKING PAYMENTS PURSUANT TO GRANTS UNDER SUBSECTION (A), THERE ARE AUTHORIZED TO BE APPROPRIATED $25,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1975, $75,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1976, AND $120,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1977."

MISCELLANEOUS AND TRANSITIONAL PROVISIONS //42 USC 300M NOTE.//

SEC. 5. (A)(1) THERE ARE AUTHORIZED TO BE APPROPRIATED FOR THE FISCAL YEAR ENDING JUNE 30, 1975, AND THE NEXT FISCAL YEAR SUCH SUMS AS MAY BE NECESSARY TO AMKE GRANTS UNDER SECTION 314(A) OF THE PUBLIC HEALTH SERVICE ACT, //42 USC 246.// EXCEPT THAT NO GRANT MADE TO A STATE WITH FUNDS APPROPRIATED UNDER THIS PARAGRAPH SHALL BE AVAILABLE FOR OBLIGATION BEYOND--'

(A) THREE MONTHS AFTER THE DATE ON WHICH A STAT HEALTH PLANNING AND DEVELOPMENT AGENCY IS DESIGNATED FOR SUCH STATE UNDER SECTION 1421 OF SUCH ACT, //ANTE, P. 2242.// OR

(B) JUNE 30, 1976, WHICHEVER IS LATER.

(2) THERE ARE AUTHORIZED TO BE APPROPRIATED FOR THE FISCAL YEAR ENDING JUNE 30, 1975, AND THE NEXT FISCAL YEAR SUCH SUMS AS MAY BE NECESSARY TO MAKE GRANTS UNDER SECTION 304 OF THE PUBLIC HEALTH SERVICE ACT FOR EXPERIMENTAL HEALTH SERVICES DELIVERY SYSTEMS, SECTION 314(B) OF SCUH ACT, //42 USC 242B.// AND TITLE IX OF SUCH ACT //42 USC 299.// EXCEPT THAT NO GRANT MADE WITH FUNDS APPROPRIATED UNDER THIS PARAGRAPH SHALL BE AVAILABLE FOR OBLIGATION BEYOND THE LATER OF (A) JUNE 30, 1976, OR (B) THREE MONTHS AFTER THE DATE ON WHICH A HEALTH SYSTEMS AGENCY HAS BEEN DESIGNATED UNDER SECTION 1415 OF SUCH ACT FOR A HEALTH SERVICE AREA WHICH INCLUDES THE AREA OF THE ENTITY FOR WHICH A GRANT IS MADE UNDER SUCH SECTION 304, 314(B), OR TITLE IX. //42 USC 300L-4 NOTE.//

(B) ANY STATE WHICH HAS IN THE FISCAL YEAR ENDING JUNE 30, 1975, OR THE NEXT FISCAL YEAR FUNDS AVAILABLE FOR OBLIGATION FROM ITS ALLOTMENTS UNDER PART A OF TITLE VI OF THE PUBLIC HEALTH SERVICE ACT //42 USC 291A.// MAY IN SUCH FISCAL YEAR USE FOR THE PROPER AND EFFICIENT ADMINISTRATION DURING SUCH YEAR OF ITS STATE PLAN APPROVED UNDER SUCH PART AN AMOUNT OF SUCH FUNDS WHICH DOES NOT EXCEED 4 PER CENTUM OF SUCH FUNDS OR $100,000, WHICHEVER IS LESS. //42 USC 291B NOTE.//

(C) A REFERENCE IN ANY LAW OR REGULATION--'

(1) TO THE AGENCY OF A STATE WHICH ADMINISTERS OR SUPERVISES THE ADMINISTRATION OF A STATE'S HEALTH PLANNING FUNCTIONS UNDER A STATE PLAN APPROVED UNDER SECTION 314(A) OF THE PUBLIC HEALTH SERVICE ACT //42 USC 246.// SHALL IN THE CASE OF A STATE FOR WHICH A STATE HEALTH PLANNING AND DEVELOPMENT AGENCY HAS BEEN DESIGNATED UNDER SECTION 1521 OF SUCH ACT //ANTE, P. 2242.// BE CONSIDERED A REFERENCE TO THE STATE AGENCY DESIGNATED UNDER SUCH SECTION 1521; //42 USC 300M NOTE.//

(2) TO AN AGENCY OR ORGANIZATION WHICH HAS DEVELOPED A COMPREHENSIVE REGIONAL, METROPOLITAN, OR OTHER LOCAL AREA PLAN OR PLANS REFERRED TO IN SECTION 314(B) OF THE PUBLIC HEALTH SERVICE ACT SHALL IF ALL OR PART OF THE AREA COVERD BY SUCH PLAN OR PLANS IS WITHIN A HEALTH SERVICE AREA ESTABLISHED UNDER SECTION 1511 OF THE PUBLIC HEALTH SERVICE ACT //ANTE, P. 2229.// BE CONSIDERED A REFERENCE TO THE HEALTH SYSTEMS AGENCY DESIGNATED UNDER SECTION 1515 OF SUCH ACT //ANTE, P. 2239.// FOR SUCH HEALTH SERVICE AREA; AND //42 USC 300L-4 NOTE.//

(3) TO A REGIONAL MEDICAL PROGRAM ASSISTED UNDER TITLE IX OF THE PUBLIC HELATH SERVICE ACT //42 USC 299.// SHALL IF THE PROGRAM IS LOCATED IN A STATE FOR WHICH A STATE HEALTH PLANNING AND DEVELOPMENT AGENCY HAS BEEN DESIGNATED UNDER SECTION 1521 OF THE PUBLIC HELATH SERVICE ACT BE CONSIDERED A REFERENCE TO SUCH STATE AGENCY. //42 USC 300M NOTE.//

(D) SECTION 316 OF THE OUBLIC HEALTH SERVICE ACT //42 USC 247A.// IS REPEALED.

ADVISORY COMMITTEE

SEC. 6. (A) AN ADVISORY COMMITTEE ESTABLISHED BY OR PURSUANT TO THE PUBLIC HEALTH SERVICE ACT, //42 USC 217A NOTE.// THE MENTAL RETARDATION FACILITIES AND COMMUNITY MENTAL HEALTH CENTERS COMSTRUCTION ACT OF 1963, //42 USC 201 NOTE.// OR THE COMPREHENSIVE ALCOHOL ABUSE AND ALCOHOLISM PREVENTION, TREATMENT AND REHABILITATION ACT OF 1970 //42 USC 2661 NOTE.// SHALL TERMINATE AT SUCH TIME AS MAY BE SPECIFICALLY PRESCRIBED BY AN ACT OF CONGRESS ENACTED AFTER THE DATE OF THE ENACTMENT OF THIS ACT. //42 USC 4571.//

(B) THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE SHALL REPORT, WITHIN ONE YEAR AFTER THE DATE OF THE ENACTMENT OF THIS ACT, TO THE COMMITTEE ON LABOR AND PUBLIC WELFARE OF THE SENATE AND THE COMMITTEE ON THE INTERSTATE AND FOREIGN COMMERCE OF THE HOUSE OF REPRESENTATIVES (1) THE PURPOSE AND USE OF EACH ADMISORY COMMITTEE ESTABLISHED BY OR PURSUANT TO THE PUBLIC HEALTH SERVICE ACT, THE MENTAL RETARDATION FACILITIES AND COMMUNITY ALCOHOL ABUSE AND ALCOHOLISM PREVENTION, TREATMENT, AND REHABILITATION OF EACH SUCH ADVISORY COMMITTEE.

AGENCY REPORTS

SEC. 7. //42 USC 229 NOTE.// THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE SHALL REPORT, WITHIN ONE YEAR OF THE DATE OF THE ENACTMENT OF THIS ACT, TO THE COMMITTEE ON LABOR AND PUBLIC WELFARE OF THE SENATE AND THE COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE OF THE HOUSE OF REPRESENTATIVES (1) THE IDENTITY OF EACH REPORT REQUIRED TO BE MADE BY THE SECRETARY UNDER THE PUBLIC HEALTH SERVICE ACT, THE MENTAL RETARDATION FACILITIES AND COMMUNITY MENTAL HEALTH CENTERS CONSTRUCTION ACT OF 1963, OR THE COMPREHENSIVE ALCOHOL ABUSE AND ALCOHOLISM PREVENTION, TREATMENT, AND REHABILITATION ACT OF 1970 TO THE CONGRESS (OR ANY COMMITTEE THEREOF), (2) THE PROVISIONS OF SUCH ACTS WHICH REQUIRES EACH SUCH REPORT, (3) THE PURPOSE OF EACH SUCH REPORT, AND (4) THE DUE DATE FOR EACH SUCH REPORT. THE REPORT OF THE SECRETARY UNDER THIS SECTION MAY INCLUDE SUCH RECOMMENDATIONS AS HE CONSIDERS APPROPRIATE FOR TERMINATION OR CONSOLIDATION OF ANY SUCH REPORTING REQUIREMENTS.

TECHNICAL AMENDMENT //42 USC 300E-4.//

SEC. 8. SECTION 1305(B)(1) OF THE PUBLIC HEALTH SERVICE ACT IS AMENDED TO READ AS FOLLOWS:

"(B)(1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE AGGREGATE AMOUNT OF PRINCIPAL OF LOANS MADE OR GUARANTEED, OR BOTH, UNDER THIS SECTION FOR A HEALTH MAINTENANCE ORGANIZATION MAY NOT EXCEED $2,500,000. IN ANY FISCAL YEAR, THE AMOUNT DISBURSED UNDER A LOAN OR LOANS MADE OR GUARANTEED UNDER THIS SECTION FOR A HEALTH MAINTENANCE ORGANIZATION MAY NOT EXCEED $1,000,000,000."

LEGISLATIVE HISTORY:

HOUSE REPORTS: NO. 93 - 1382 ACCOMPANYING H.R. 16204 (COMM. ON INTERSTATE AND FOREIGN COMMERCE) AND NO. 93 - 1640 (COMM. OF CONFERENCE).

SENATE REPORT NO. 93 - 1285 (COMM. ON LABOR AND PUBLIC WELFARE).

CONGRESSIONAL RECORD, VOL. 120 (1974):

NOV. 25, CONSIDERED AND PASSED SENATE.

DEC. 13, CONSIDERED AND PASSED HOUSE, AMENDED, IN LIEU OF H.R. 16204.

DEC. 19, SENATE AGREED TO CONFERENCE REPORT.

DEC. 20, HOUSE AGREED TO CONFERENCE REPORT.

PUBLIC LAW 93-640, 88 STAT 2217, NATIONAL ARTHRITIS ACT OF 1974

93RD CONGRESS, S. 2854 JANUARY 4, 1975
AN ACT TO AMEND THE PUBLIC HEALTH SERVICE ACT TO EXPAND THE AUTHORITY OF THE NATIONAL INSTITUTE OF ARTHRITIS, METHABOLISM, AND DIGESTIVE DISEASES IN ORDER TO ADVANCE A NATIONAL ATTACK ON ARTHRITIS.

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED,

SHORT TITLE

SECTION 1. THIS ACT MAY BE CITED AS THE "NATIONAL ARTHRITIS ACT OF 1974". //42 USC 289C - 1 NOTE.//

FINDINGS AND DECLARATION OF PURPOSE

SEC. 2. THE CONGRESS MAKES THE FOLLOWING FINDINGS-- //42 USC 289C - 1 NOTE.//

(1) ARTHRITIS AND RELATED MUSCULOSKELETAL DISEASES CONSTITUTE MAJOR HEALTH PROBLEMS IN THE UNITED STATES IN THAT THEY AFFLICT MORE THAN TWENTY MILLION AMERICANS AND ARE THE GREATEST SINGLE CAUSE OF CHRONIC PAID AND DISABILITY.

(2) THE COMPLICATIONS OF ARTHRITIS LEAD TO MANY OTHER SERIOUS HEALTH PROBLEMS AND OTHER SEVERE PHYSICAL DISABILITIES IN PERSONS OF ALL AGES WITH THE DISEASE, PARTICULARLY CHILDREN AND ADOLESCENTS.

(3) THE ANNUAL COST OF ARTHRITIS TO THE NATIONAL ECONOMY IN 1970, FROM MEDICAL CARE EXPENSES AND LOST WAGES, WAS $9,200,000,000, AND NUMBER OF WORKDAYS LOST IN THAT YEAR TOTALED OVER 14,500,000.

(4) UNCONTROLLED ARTHRITIS SIGNIFICANTLY DECREASES THE QUALITY OF LIFE AND HAS A MAJOR NEGATIVE ECONOMIC, SOCIAL, AND PSYCHOLOGICAL IMPACT ON THE FAMILIES OF ITS VICTIMS AND SOCIETY GENERALLY.

(5) ATHLETIC AND OTHER TYPES OF JOINT INJURIES INVOLVING TRAUMA CAN LEAD TO ARTHRITIS.

(6) THE DEVELOPMENT OF ADVANCED METHODS OF DIAGNOSIS AND TREATMENT OF ARTHRITIS AND QUALITY TRAINED HEALTH PROFESSIONALS IN ARTHRITIS DESERVES THE HIGHEST NATIONAL PRIORITY.

(7) THERE IS A CRITICAL SHORTAGE OF MEDICAL FACILITIES AND PROPERLY TRAINED HEALTH PROFESSIONALS AND ALLIED HEALTH PROFESSIONALS IN THE UNITED STATES FOR ARTHRITIS RESEARCH, PREVENTION, TREATMENT, CARE, AND REHABILITATION PROGRAMS.

(8) THE CITIZENS OF THE UNITED STATES SHOULD HAVE A FULL UNDERSTANDING OF THE NATURE OF THE HUMAN, SOCIAL, AND ECONOMIC IMPACT OF ARTHRITIS AND SHOULD BE ENCOURAGED TO SEEK EARLY DIAGNOSIS AND TREATMENT TO PREVENT OR MITIGATE PHYSICAL DISABILITY RESULTING FROM ARTHRITIS.

(9) THERE IS GREAT POTENTIAL FOR MAKING MAJOR ADVANCES AGAINST ARTHRITIS IN THE NATIONAL INSTITUTE OF ARTHRITIS, METABOLISM, AND DIGESTIVEE DISEASES, IN CONCERT WITH OTHER INSTITUTES OF THE NATIONAL INSTITUTES OF HEALTH.

NATIONAL COMMISSION ON ARTHRITIS; ARTHRITIS PLAN

SEC. 3. (A) THWE SECRETARY OF HEALTH, EDUCATION, AND WELFARE (HEREINAFTER IN THIS SECTION REFERRED TO AS THE "SECRETARY"), AFTER CONSULTING //42 USC 289C - 1 NOTE.// WITH THE DIRECTOR OF THE NATIPONAL INSTITUTES OF HEALTH, SHALL, WITHIN SIXTY DAYS OF THE DATE OF THE ENACTMENT OF THIS SECTION, ESTABLISH A NATIONAL COMMISSION ON ARTHRITIS AND RELATED MUSCULOSKELETAL DISEASES (HEREINAFTER IN THIS SECTION REFERRED TO AS THE "COMMISSION").

(B) THE COMMISSION SHALL BE COMPOSED OF EIGHTEEN MEMBERS AS FOLLOWS:

(1) SIX MEMBERS APPOINTED BY THE SECRETARY WHO ARE SCIENTISTS, PHYSICIANS, OR OTHER HEALTH PROFESSIONALS NOT IN THE EMPLOYMENT OF THE FEDERAL GOVERNMENT, WHO REPRESENT THE VARIOUS SPECIALTIES AND DISCIPLINES INVOLVING ARTHRITIS AND RELATED MUSCULOSKELETAL DISEASES (HEREINAFTER IN THIS SECTION COLLECTIVELY REFERRED TO AS "ARTHRITIS"), AND OF WHOM AT LEAST TWO ARE PRACTICING CLINICAL RHEUMATOLOGISTS, AT LEAST ONE IS AN ORTHOPEDIC SURGEON, AND AT LEAST ONE IS AN ALLIED HEALTH PROFESSIONAL.

(2) FOUR MEMBERS APPOINTED BY THE SECRETARY FROM THE GENERAL PUBLIC, OF WHOM AT LEAST TWO SUFFER FROM ARTHRITIS.

(3) ONE MEMBER APPOINTED BY THE SECRETARY, FROM MEMBERS OF THE NATIONAL ARTHRITIS, METABOLISM, DIGESTIVE DISEASE ADVISORY COUNCIL, WHOSE PRIMARY INTEREST IS IN THE FIELD OF RHEUMATOLOGY.

(4) THE DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH OR HIS DESIGNEE, THE DIRECTOR OF THE NATIONAL INSTITUTE OF ARTHRITIS, METABOLISM, AND DIGESTIVE DISEASES OR HIS DESIGNEE, THE DIRECTORS, OF THEIR DESIGNEES, OF THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES AND THE NATIONAL INSTITUTE OF GENERAL MEDICAL SCIENCE, THE ASSOCIATE DIRECTOR FOR ARTHRITIS AND RELATED MUSCULOSKELETAL DISEASES OF SUCH INSTITUTE, AND THE CHIEF MEDICAL OFFICER OF THE VETERANS' ADMINISTRATION AND THE SECRETARY OF DEFENSE OR THEIR DESIGNEES, EACH OF WHOM SHALL SERVE AS EX OFFICIO, NONVOTING MEMBERS.

(C) THE MEMBERS OF THE COMMISSION SHALL SELECT A CHAIRMAN FROM AMONG THEIR OWN NUMBER. THE COMMISSION SHALL FIRST MEET ON A DATE SPECIFIED BY THE SECRETARY, NOT LATER THAN 30 DAYS AFTER THE COMMISSION IS ESTABLISHED, AND THEREAFTER SHALL MEET AT THE CALL OF THE CHAIRMAN OF THE COMMISSION (BUT NOT LESS OFTERN THAN THREE TIMES).

(D) THE DIRECTOR OF THE NATIONAL INSTITUTE OF ARTHRITIS, METABOLISM, AND DIGESTIVE DISEASES SHALL--,

(1) DESIGNATE A MEMBER OF THE STAFF OF SUCH INSTITUTE TO ACT AS EXECUTIVE SECRETARY OF THE COMMISSION, AND

(2) PROVIDE THE COMMISSION WITH SUCH FULL-TIME PROFESSIONAL AND CLERICAL STAFF, SUCH INFORMATION, AND THE SERVICES OF SUCH CONSULTANTS AS MAY BE NECESSARY TO ASSIT IT IN CARRYING OUT EFFECTIVELY ITS FUNCTION UNDER THIS SECTION.

(E) MEMBERS OF THE COMMISSION WHO ARE OFFICERS OR EMPLOYEES OF THE FEDERAL GOVERNMENT SHALL SERVE AS MEMBERS OF THE COMMISSION WITHOUT COMPENSATION IN ADDITION TO THAT RECEIVED IN THEIR REGULAR PUBLIC EMPLOYMENT. MEMBERS OF THE COMMISSION WHO ARE NOT OFFICERS OR EMPLOYEES OF THE FEDERAL GOVERNMENT SHALL EACH RECEIVE THE DAILY EQUIVALENT OF THE RATE IN EFFECT FOR GRADE GS-18 OF THE GENERAL SCHEDULE FOR EACH DAY (INCLUDING TRAVELTIME) THEY ARE ENGEGED IN THE PERFORMANCE OF THEIR DUTIES AS MEMBERS OF THE COMMISSION. //5 USC 5332 NOTE.// ALL MEMBERS, WHILE SO SERVING AWAY FROM THEIR HOMES OR REGULAR PLACES OF BUSINESS, MAY BE ALLOWED TRAVEL EXPENSES, INCLUDING PER DIEM IN LIEU OF SUBSISTENCE, IN THE SAME MANNER AS SUCH EXPENSES ARE AUTHORIZED BY SECTION 5703, TITLE 5, UNITED STATES CODE, FOR PERSONS IN THE GOVERNMENT SERVICE EMPLOYED INTERMITTENTLY.

(F) THE COMMISSION SHALL SURVEY FEDERAL, STATE, AND LOCAL HEALTH PROGRAMS AND ACTIVITIES RELATING TO ARTHRITIS AND ASSESS THE ADEQUACY, TECHNICAL SOUNDNESS, AND COORDINATION OF SUCH PROGRAMS AND ACTIVITIES. ALL FEDERAL DEPARTMENTS AND AGENCIES ADMINISTERING HEALTH PROGRAMS AND ACTIVITIES RELATING TO ARTHRITIS SHALL PROVIDE SUCH COOPERATION AND ASSISTANCE RELATING TO SUCH PROGRAMS AND ACTIVITIES AS IS REASONABLY NECESSARY FOR THE COMMISSION TO MAKE SUCH SURVEY AND ASSESSMENT.

(G) THE COMMISSION SHALL FORMULATE A LONG-RANGE PLAN (HEREINAFTER IN THIS SECTION REFERRED TO AS THE "ARTHRITIS PLAN") WITH SPECIFIC RECOMMENDATIONS FOR THE USE AND ORGANIZATION OF NATIONAL RESOURCES TO COMBAT ARTHRITIS. THE ARTHRITIS PLAN SHALL BE BASED ON A SURBEY INVESTIGATING THE INCIDENCE AND PREVALENCE OF ARTHRISTIS AND ITS ECONOMIC AND SOCIAL CONSEQUENCES, AND ON AN EVALUATION OF SCIENTIFIC INFORMATION RESPECTING, AND THE NATIONAL RESOURCES CAPABLE OF DEALING WITH ARTHRITIS. THE ARTHRITIS PLAN SHALL INCLUDE A COMPREHENSIVE PROGRAM FOR THE NATIONAL INSTITUTE OF ARTHRITIS, METABOLISM, AND DIGESTIVE DIEASES (HEREINAFTER IN THIS SECTION REFERRED TO AS THE "INSTITUTE") AND PLANS FOR FEDERAL, STATE, AND LOCAL PROGRAMS, WHICH PROGRAM AND PROGRAMS SHALL, AS APPROPRIATE, PROVIDE FOR--,

(1) INVESTIGATION INTO THE EPIDEMIOLOGY, ETIOLOGY, AND PREVENTION AND CONTROL OF ARTHRITIS, INCLUDING THE SOCIAL, ENVIRONMENTAL, BEHAVIORAL, NUTRITIONAL, AND BIOLOGICAL CONTROL OF ARTHRITIS;

(2) STUDIES AND RESEARCH INTO THE BASIC BIOLOGICAL PROCESSES AND MECHANISMS INVOLVED WITH ARTHRITIS, INCLUDING ABNORMALITIES OF THE IMMUNE, MUSCULOSKELETAL, CARDIOVASCULAR, GASTROINTESTINAL, UROGENITAL, PULMONARY, AND NERVOUS SYSTEMS, THE SKIN, AND THE EYES;

(3) RESEARCH INTO THE DEVEOPMENT, TRIAL, AND EVALUATION OF TECHNIQUES, ORTHOPEDIC AND OTHER SURGICAL PROCEDURES, AND DRUGS (INCLUDING DRUGS INTENDED FOR USE BY CHILDREN) USED IN THE DIAGNOSIS, EARLY DETECTION, TREATMENT, PREVENTION, AND CONTROL OF ARTHRITIS;

(4) PROGRAMS THAT WILL APPLY SCIENTIFIC AND TECHNOLOGICAL METHODOLOGIES AND PROCESSES INVOLVING BIOLOGICAL, PHYSICAL, AND ENGINEERING SCIENCES TO DEAL WITH ALL FACETS OF ARTHRITIS, INCLUDING TRAUMATIC ARTHRITIS;

(5) PROGRAMS FOR THE CONDUCT AND DIRECTION OF FIELD STUDIES LARGESCALE TESTING, EVALUATION, AND DEMONSTRATION OF PREVENTIVE, DIAGNOSTIC, THERAPEUTIC, REHABILITATIVE, AND CONTROL APPROACHES TO ARTHRITIS, INCLUDING STUDIES OF THE EFFECTIVENESS AND USE OF HOME CARE PROGRAMS, MOBILE CASE UNITS, COMMUNITY REHABILITATION FACILITIES, AND OTHER APPROPRIATE COMMUNITY PUBLIC HEALTH AND SOCIAL SERVICES;

(6) STUDIES OF THE FEASIBILITY OF, AND POSSIBLE BENEFITS ACCRUING FROM, THE ORGANIZAITON AND TRAINING OF TEAMS OF HEALTH AND ALLIED HEALTH PROFESSIONALS IN THE TREATMENT AND REHABILITATION OF INDIVIDUALS WHO SUFFER FROM ARTHRITIS;

(7) PROGRAMS TO EVALUATE AVAILABLE RESOURCES FOR THE REHABILITATION OF INDIVIDUALS WHO SUFFER FROM ARTHRITIS;

(8) PROGRAMS TO DEVELOP NEW AND IMPROVED METHODS OF SCREENING AND REFERRAL FOR ARTHRITIS, AND PARTICULARLY FOR THE EARLY DETECTION OF ARTHRITIS;

(9) PROGRAMS TO ESTABLISH STANDARDS AND CRITERIA FOR MEASUREMENT OF THE SEVERITY AND REHABILITATIVE POTENTIAL OF DISABILITIES RESULTING FROM ARTHRITIS;

(10) PROGRAMS TO DEVELOP A UNIFORM DESCRIPTIVE VOCABULARY FOR USE IN BASIC AND CLINCIAL RESEARCH AND A STANDARDIZED CLINICAL PATIENT DATA SET FOR ARTHRITIS TO STANDARDIZE COLLECTION, STORAGE, AND RETRIEVAL OF RESEARCH AND TREATMENT DATA IN ORDER TO FACILITATE COLLABORATIVE AND COMPARATIVE STUDIES OF LARGE PATIENT POPULATIONS;

(11) PROGRAMS TO ESTABLISH A SYSTEMFOR THE COLLECTION, ANALYSIS, AND DISSEMINATION OF DATA USEFUL IN THE SCREENING, PREVENTION, DIAGNOSIS, AND TREATMENT OF ARTHRITIS, INCLUDING THE ESTABLISHMENT OF A NATIONAL DATA STORAGE BANK TO COLLECT, CATALOG, AND STORE, AND FACILITATE RETRIEVAL AND DISSEMINATION OF INFORMATION AS TO THE PRACTICAL APPLICATION OF RESEARCH AND OTHER ACTIVITIES PERTAINING TO ARTHRITIS;

(12) PROGRAMS FOR THE EDUCATION (INCLUDING CONTINUING EDUCATION PROGRAMS AND DEVELOPMENT OF NEW TECHNIQUES AND CURRICULA) OF SCIENTISTS, BIOENGINEERS, PHYSICIANS ENGAGED IN GENERAL PRACTICE, THE PRACTICE OF FAMILY MEDICINE, OR OTHER PRIMARY CARE SPECIALTIES, SURGEONS, INCLUDING ORTHOPEDIC SURGEONS, AND OTHER HEALTH AND ALLIED HEALTH PROFESSIONALS AND EDUCATORS IN THE FIELDS AND SPECIALTIES REQUISITE TO SCREENING, EARLY DETECTION, DIAGNOSIS, TREATMENT, AND PREVENTION OF ARTHRITIS AND RHABILITATION OF INDIVIDUALS WHO SUFFER FROM ARTHRITIS;

(13) PROGRAMS FOR PUBLIC EDUCATION AND COUNSELING RELATING TO ARTHRITIS, INCLUDING PUBLIC INFORMATION CAMPAIGNS ON CURRENT DEVELOPMENTS IN DIAGNOSTIC AND TREATMENT PROCEDURES AND PROGRAMS TO DISCOURAGE THE PROMOTION AND USE OF UNAPPROVED AND INEFFECTIVE DIAGNOSTIC, PREVENTIVE, TREATMENT, AND CONTROL METHODS AND UNAPPROVED AND INEFFECTIVE DRUGS AND DEVICES;

(14) A PROGRAM FOR TEH ACCELERATION OF INTERNATIONAL COOPERATION IN AND EXCHANGE OF KNOWLEDGE ON RESEARCH, SCREENING, EARLY DETECTION, DIAGNOSIS, TREATMENT, PREVENTION, AND CONTROL OF ARTHRITIS; AND

(15) COORDINATION OF THE RESEARCH PROGRAMS RELEVANT TO ARTHRITIS; OF OTHER INSTITUTES OF THE NATIONAL INSTITUTES OF HEALTH, THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE, AND OTHER FEDERAL AND NON-FEDERAL ENTITIES.

(H) THE COMMISSION MAY HOLD SUCH HEARINGS, TAKE SUCH TESTIMONY, AND SIT AT SUCH TIME AND PLACES AS IT DEEMS ADVISABLE.

(I)(1) THE COMMISSION SHALL PREPARE FOR EACH OF THE INSTITUTES OF THE NATIONAL INSTITUTES OF HEALTH WHOSE ACTIVITIES ARE TO BE AFFECTED BY THE ARTHRITIS PLAN ESTIMATES FO NECESSARY EXPENDITURES TO CARRY OUT EACH SUCH INSTITUTE'S PART OF THE COMPREHENSIVE PROGRAM INCLUDED IN JUNE 30, 1976, AND FOR EACH OF THE NEXT TWO FISCAL YEARS.

(2) WITHIN FIVE DAYS AFTER THE BUDGET IS TRANSMITTED BY THE PRESIDENT TO CONGRESS FOR THE FISCAL YEAR ENDING JUNE 30, 1976, AND FOR EACH OF THE NEXT TOW FISCAL YEARS, THE SECRETARY SHALL TRANSMIT TO THE COMMITTEES ON APPROPRIATIONS OF THE HOUSE OF REPRESENTATIVES AND THE SENATE, THE COMMITTEE ON LABOR AND PUBLIC WELFARE OF THE SENATE, AND THE COMMITTEE ON COMMERCE AND HEALTH OF THE UNITED STATES HOUSE OF REPRESENTATIVES AN ESTIMATE OF THE AMOUNTS REQUESTED FOR ARTHRITIS RESEARCH BY EACH OF THE INSTITUTES FOR WHICH ESTIMATES WERE PREPARED UNDER PARAGRAPH (1) AND A COMPARISON OF SUCH AMOUNTS WITH SUCH ESTIMATES.

(J)(1) THE COMMISSION SHALL PUBLISH AND TRANSMIT DIRECTLY TO THE CONGRESS (WITHOUT PRIOR ADMINISTRATIVE APPROVAL OF REVIEW BY THE OFFICE OF MANAGEMENT AND BUDGET OR NAY OTHER FEDERAL DEPARTMENT OR AGENCY) THE ARTHRITIS PLAN WITHIN TWO HUNDRED AND TEN DAYS AFTER THE DATE ON WHICH FUNDS ARE FIRST APPROPRIATED FOR THE COMMISSION.

(2) THE COMMISSION SHALL CEASE TO EXIST ON THE THIRTIETH DAY FOLLOWING THE DATE OF THE SUBMISSION OF THE ARTHRITIS PLAN PURSUANT TO PARAGRAPH (1) OF THIS SUBSECTION.

(K) THERE ARE AUTHORIZED TO BE APPROPRIATED, WITHOUT FISCAL YEAR LIMITATION, TO CARRY OUT THE PURPOSES OF THIS SECTION $2,000,000.

ARTHRITIS COORDINATING COMMITTEE, DEMONSTRATION PROJECTS, AND COMPREHENSIVE ARTHRITIS CENTERS

SEC. 4. PART D OF TITLE IV OF THE PUBLIC HEALTH SERVICE ACT IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SECTIONS:

"ARTHRITIS COORDINATING COMMITTEE

"SEC. 437. (A) IN ORDER TO IMPROVE COORDINATION OF ALL ACTIVITIES IN THE NATIONAL INSTITUTES OF HEALTH, IN THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE, AND IN OTHER DEPARTMENTS AND AGENCIES OF THE FEDERAL GOVERNMENT RELATING TO FEDERAL HEALTH PROGRAMS AND ACTIVITIES RELATING TO ARTHRITIS, THE SECRETARY SHALL ESTABLISH AN ARTHRITIS COORDINATING COMMITTEE TO BE COMPOSED OF REPRESENTATIVES OF THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE (INCLUDING THE FOOD AND DRUG ADMINISTRATION) AND OF THE VETERANS' ADMINISTRATION, THE DEPARTMENT OF DEFENSE, AND OTHER FEDERAL DEPARTMENTS AND AGENCIES INVOLVED IN RESEARCH, HEALTH SERVICES, OR REHABILITATION PROGRAMS AFFECTING ARTHRITIS. //42 USC 289C - 4.// THIS COMMITTEE SHALL INCUDE THE DIRECTORS (OR THEIR DESIGNATED REPRESENTATIVES) OF EACH OF THE INSTITUTES OF THE NATIONAL INSTITUTES OF HEALTH INVOLVED IN ARTHRITIS RELATED RESEARCH. THE COMMITTEE SHALL BE CHAIRED BY THE ASSOCIATE DIRECTOR ESTABLISHED PURSUANT TO SECTION 434(E) //POST, P. 2224.// AND SHALL PREPARE A REPORT NOT LATER THAN SIXTY DAYS AFTER THE END OF EACH FISCAL YEAR AS POSSIBLE, FOR THE SECRETARY DETAILING THE WORK OF THE COMMITTEE IN SEEKING TO IMPROVE COORDINATION OF DEPARTMENTAL AND INTERDEPARTMENTAL ACTIVITIES RELATING TO ARTHRITIS DURING THE PRECEDING FISCAL YEAR. SUCH REPORT SHALL INCLUDE--

"(1) A DESCRIPTION OF THE WORK OF THE COMMITTEE IN COORDINATING THE RESEARCH ACTIVITIES OF THE NATIONAL INSTITUTES OF HEALTH RELATING TO ARTHRITIS DURING THE PRECEDING YEAR, AND

"(2) A DESCRIPTION OF THE WORK OF THE COMMITTEE IN PROMOTING THE COORDINATION OF FEDERAL HEALTH PROGRAMS AND ACTIVITIES RELATING TO ARTHRITIS TO ASSURE THE ADEQUACY OF SUCH PROGRAMS AND TO PROVIDE FOR THE ADEQUATE COORDINATION OF SUCH PROGRAMS AND ACTIVITIES.

"(B) THE COMMITTEE SHALL MEET AT THE CALL OF THE CHAIRMAN, BUT NOT LESS OFTEN THAN FOUR TIMES A YEAR.

"ARTHRITIS SCREENING, DETECTION, PREVENTION, AND REFERRAL DEMONSTRATION PROJECTS; AND DATA BANK

"SEC. 438. (A) THE SECRETARY, ACTING THROUGH THE ASSISTANT SECRETARY //42 USC 289C - 5.// FOR HEALTH, MAY MAKE GRANTS TO PUBLIC AND NONPROFIT ENTITIES TO ESTABLISH AND SUPPORT PROJECTS FOR THE DEVELOPMENT AND DEMONSTRATION OF METHODS FOR ARTHRITIS, SCREENING, DETECTION, PREVENTION, AND REFERRAL, AND FOR THE DISSEMINATION OF THESE METHODS TO HEALTH AND ALLIED HEALTH PROFESSIONS. ACTIVITIES UNDER SUCH PROJECTS SHALL BE COORDINATED WITH (1) FEDERAL, STATE, LOCAL, AND REGIONAL HEALTH AGENCIES, (2) CENTERS ASSISTED UNDER SECTION 439, AND (3) THE DATA BANK UNDER SUBSECTION (C).

"(B) PROJECTS UNDER THIS SECTION SHALL INCLUDE PROGRAMS WHICH--,

"(1) EMPHASIZE THE DEVELOPMENT AND DEMONSTRATION OF NEW AND IMPROVED METHODS OF SCREENING AND EARLY DETECTION, REFERRAL, AND DIAGNOSIS OF INDIVIDUALS WITH A RISK OF DEVELOPING ARTHRITIS, ASYMPTOMATIC ARTHRITIS OR SYMPTOMATIC ARTHRITIS;

"(2) EMPHASIZE THE DEVELOPMENT AND DEMONSTRATION OF NEW AND IMPROVED METHODS FOR PATIENT REFERRAL FROM LOCAL HOSPITALS AND PHYSICIANS TO APPROPRIATE CENTERS FOR EARLY DIAGNOSIS AND TREATMENT;

"(3) EMPHASIZE THE DEVELOPMENT AND DEMONSTRATION OF NEW AND IMPROVED MEANS OF STANDARDIZING PATIENT DATA AND RECORDKEEPING; AND "(4) EMPHASIZE THE DEVELOPMENT AND DEMONSTRATION OF NEW AND IMPROVED METHODS OF DISSEMINATION OF KNOWLEDGE ABOUT THE PROJECTS AND METHODS REFERRED TO IN THE PRECEDING PARAGRAPHS OF THIS SUBSECTION TO HEALTH AND ALLIED HEALTH PROFESSIONALS.

"(C)(1) AS SOON AS PRACTICABLE AFTPER TH EDAT EOF ENACTMENT OF THIS SECTION THE SECRETARY, THROUGH THE ASSISTANT SECRETARY FOR HEALTH, SHALL ESTABLISH THE ARTHRITIS SCREENING AND DETECTION DATA BANK FOR THE COLLECTION, STORAGE, ANALYSIS, RETRIVAL, AND DISSEMINATION OF DATA USEFUL IN SCREENING, PREVENTION, AND EARLY DETECTION INVOLVING PATIENT POPULATIONS WITH ASYMOPTOMATIC AND SYMOPTOMATIC TYPES OF ARTHRITIS, INCLUDING WHERE POSSIBLE, DATA INVOLVING GENERAL POPULATIONS FOR THE PURPOSE OF DETECTION OF INDIVIDUALS WITH A RISK OF DEVELOPING ARTHRITIS.

"(2) THE SECRETARY SHLAL PROVIDE FOR STANDARDIZATION OF PATIENT DATA AND RECORDKEEPING FOR THE COLLECTION, STORAGE, ANALYSIS, RETRIEVAL, AND DISSEMINATION OF SUCH DATA IN COORPORATION WITH PROJECTS UNDER THIS SECTION AND CENTERS ASSISTED UNDER SECTION 439, AND OTHER PERSONS ENGAGED IN ARTHRITIS PROGRAMS.

"(D) THERE ARE AUTHORIZED TO BE APPORPRIATED TO CARRY OUT THIS SECTION $2,000,000 FOR FISCAL YEAR ENDING JUNE 30, 1975, $3,000,000 FOR FISCAL YEAR ENDING JUNE 30, 1976, AND $4,000,000 FOR FISCAL YEAR ENDING JUNE 30, 1977.

"COMPREHENSIVE ARTHRITIS CENTERS

"SEC. 439. (A) THE SECRETARY, ACTING THROUGH THE ASSISTANT SECRETARY FOR HEALTH MAY, AFTER CONSULTATION WITH THE NATIONAL ADVISORY COUNCIL ESTABLISHED UNDER SECTION 434(A) AND CONSISTVENT WITH THE ARTHRITIS PLAN DEVELOPED PURSUANT TO THE NATIONAL ARTHRITIS ACT OF 1974. //ANTE, P. 2217.// PROVIDED FOR THE DEVELOPMENT, MODERNIZATION, AND OPERATION (INCLUDING STAFFING AND OTHER OPERATING COSTS OF PATIENT CARE REQUIRED FOR RESEARCH) OF CENTERS FOR ARTHRITIS RESEARCH, SCREENING, DETECTION, DIAGNOSIS, PREVENTION, CONTROL , AND TREATMENT, FOR EDUCATION RELATED TO ARTHRITIS, AND FOR REHABILITATION OF INDIVIDUALS WHO SUFFER FROM ARTHRITIS. //42 USC 289C - 6, 42 USC 289C - 1.// FOR PURPOSES OF THIS SECTION, THE TERM "'MODERNIZATION' MEANS THE ALTERATION, REMODELING, IMPROVEMENT, EXPANSION, AND REPAIR OF EXISTING BUILDINGS AND THE PROVISIONS OF EQUIPMENT FOR SUCH BUILDINGS TO THE EXTENT NECESSARY TO MAKE THEM SUITABLE FOR USE AS CENTERS DESCRIBED IN THE PRECEDING SENTENCE.

"(B) EACH CENTER ASSISTED UNDER THIS SECTION SHALL--

"(1)(A) USE THE FACILITIES OF A SINGLE INSTITUTION OR A CONSORTIUM OF COOPERATING INSTITUTIONS, AND (B) MEET SUCH QUALIFICATIONS AS MAY BE PRESCRIBED BY THE SECRETARY; AND

"(2) CONDUCT--,

"(A) BASIC AND CLINCIAL RESEARCH INTO THE CAUSE, DIAGNOSIS, EARLY DETECTION, PREVENTION, CONTROL, AND TREATMENT OF, ARTHRITIS AND COMPLICATIONS RESULTING FROM ARTHRITIS, INLUDING RESEARCH INTO IMPLANTABLE BIOMATERIALS AND BIOMECHANICAL AND OTHER ORTHOPEDIC PROCEDURES AND IN THE DEVELOPMENT OF OTHER DIAGNOSTIC AND TREATMENT METHODS;

"(B) TRAINING PROGRAMS FOR PHYSICIANS AND OTHER HEALTH AND ALLIED PROFESSIONALS IN CURRENT METHODS OF DIAGNOSIS, SCREENING AND EARLY DETECTION, PREVENTION, CONTROL, AND TREATMENT OF ARTHRITIS;

"(C) INFORMATION AND CONTINUING EDUCATION PROGRAMS FOR PHYSICIANS AND OTHER HEALTH AND ALLIED HEALTH PROFESSIONALS WHO PROVIDE CARE FOR PATIENTS WITH ARTHRITIS; AND

"(D) PROGRAMS FOR THE DISSEMINATION TO THE GENERAL PUBLIC OF INFORMATION--,

"(I) ON THE IMPORTANCE OF EARLY DETECTION OF ARTHRITIS, OF SEEKING PROMPT TREATMENT, AND OF FOLLOWING AN APPROPRIATE REGIMEN; AND

"(II) TO DISCOURAGE THE PROMOTION AND USE OF UNAPPROVED AND INEFFECTIVE DIAGNOSTIC, PREVENTIVE, TREATMENT, AND CONTROL METHODS AND UNAPPROVED AND INEFFECTIVE DRUGS AND DEVICES.

"(C) EACH CENTER ASSISTED UNDER THIS SECTION MAY CONDUCT PROGRAMS TO--,

"(1) DEVELOP NEW AND IMPROVED METHODS OF SCREENING AND EARLY DETECTION, REFERRAL, AND DIAGNOSIS OF INDIVIDUALS WITH A RISK OF DEVELOPING ARTHRITIS ASYMPTOMATIC ARTHRITIS, OR SYMPTOMATIC ARTHRITIS,

"(2) DISSEMIANTE THE RESULTS OF RESEARCH, SCREEDNING, AND OTHER ACTIVITIES, AND DEVELOP MEANS OF STANDARDIZING PATIENT DATA AND RECORDKEEPING, AND

"(3) DEVELOP COMMUNITY CONSULTATIVE SERVICES TO FACILITATE THE REFERRAL OF PATIENTS TO CENTERS FOR TREATMENT.

"(E) THE SECRETARY SHALL, INSOFAR AS PRACTICABLE, PROVIDE FOR AN EQUITABLE GEOGRAPHICAL DISTRIBUTION OF CENTERS ASSISTED UNDER THIS SECTION. THE SECRETARY SHALL GIVE APPROPRAITE CONSIDERATION TO THE NEED FOR CENTERS ESPECIALLY SUITED TO MEETING THE NEEDS OF CHILDREN AFFECTED BY ARTHRITIS.

"(F) THE SECRETARY SHALL EVALUATE ON AN ANNUAL BASIS THE ACTIVITIES OF CENTERS RECEIVING SUPPORT UNDER THIS SECTION AND SHALL REPORT TO THE APPROPRAITE COMMITTEES OF CONGRESS THE RESULTS OF HIS EVALUATIONS NOT LATER THAN FOUR MONTHS AFTER THE END OF EACH FISCAL YEAR.

"(G) NO CENTER MAY RECEIVE MORE THAN THREE GRANTS UNDER THIS SECTION.

"(H) FOR PURPOSES OF THIS SECTION, THERE ARE AUTHORIZED TO BE APPROPRIATED $11,000,000 FOR FISCAL YEAR ENDING JUNE 30, 1975, $13,000,000 FOR FISCAL YEAR ENDING JUNE 30, 1976, AND $15,000,000 FOR FISCAL YEAR ENDING JUNE 30, 1977. NOT LESS THAN 20 PER CENTUM OF THE FUNDS APPROPRIATED FOR EACH FISCAL YEAR UNDER THIS SUBSECTION SHALL BE USED FOR THE PURPOSES OF ESTABLISHING NEW CENTERS."

ASSOCIATE DIRECTOR, ANNUAL REPORT, RESEARCH FUNDING, ADVISORY COUNCIL

SEC. 5. (A) SECTION 434 OF THE PUBLIC HEALTH SERVICE ACT IS AMENDED BY ADDING AT THE END THE FOLLOWING NEW SUBSECTION: //42 USC 289C - 1.//

"(E) THERE IS ESTABLISHED WITHIN THE INSTITUTE THE POSITION OF ASSOCIATE DIRECTOR FOR ARTHRITIS AND RELATED MUSCULOSKELETAL DISEASE (HEREINAFTER IN THIS PART REFERRED TO AS THE 'ASSOCIATE DIRECTOR'), WHO SHALL REPORT DIRECTLY TO THE DIRECTOR OF SUCH INSTITUTE AND WHO, UNDER THE SUPERVISION OF THE DIRECTOR OF SUCH INSTITUTE, SHALL BE RESPONSIBLE FOR PROGRAMS REGARDING ARTHRITIS AND RELATED MUSCULOSKELETAL DISEASES HEREINAFTER IN THIS PART COLLECTIVELY REFERRED TO AS 'ARTHRITIS" WITHIN SUCH INSTITUTE.

"(F) THE DIRECTOR OF THE INSTITUTE SHALL, AS SOON AS PRACTICABLE, BUT NOT LATER THAN SIXTY DAYS, AFTER THE END OF EACH FISCAL YEAR, PREPARE, IN CONSULTATION WITH THE NATIONAL ADVISORY COUNCIL, AND SUBMIT TO THE PRESIDENT AND TO THE CONGRESS A REPORT. SUCH REPORT SHALL INCLUDE (1) A PROPOSAL FOR THE INSTITUTE'S ACTIVITIES UNDER THE ARTHRITIS PLAN FORMULATED UNDER THE NATIONAL ARTHRITIS ACT OF 1974 AND ACTIVITIES UNDER OTHER PROVISIONS OF LAW DURING THE NEXT FIVE YEARS, WITH AN ESTIMATE FOR SUCH ADDITIONAL STAFF POSITIONS AND APPROPRIATIONS AS MAY BE REQUIRED TO PURSUE SUCH ACTIVITIES, AND (2) A PROGRAM EVULATION SECTION, WHEREIN THE ACTIVITIES AND ACCOMPLISHMENTS OF THE INSTITUTE DURING THE PRECEDING FISCAL YEAR SHALL BE MEASURED AGAINS THE DIRECTOR'S PROPOSAL FOR THAT YEAR FOR ACTIVITIES UNDER THE ARTHRITIS PLAN.".

(B) SECTION 431 OF SUCH ACT IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SUBSECTION: //42 USC 289A.//

"(C) OF THE SUMS APPROPRIATED FOR ANY FISCAL YEAR UNDER THIS ACT FOR THE NATIONAL INSTITUTES OF HEALTH, NOT LESS THAN $500,000 SHALL BE OBLIGATED FOR BASIC AND CLINICAL ORTHOPEDIC RESEARCH CONDUCTED WITHIN THE NATIONAL INSTITUTE OF ARTHRITIS, METABOLISM, AND DIGESTIVE DISEASES WHICH RELATES TO THE METHODS OF PREVENTING, CONTROLLING AND TREATING ARTHRITIS AND RELATED MUSCULOSKELETAL DISEASES, INCLUDING RESEARCH IN IMPLANTABLE BIOMATERIALS AND BIOMECHANICAL AND OTHER ORTHOPEDIC PROCEDURES AND RESEARCH IN TSHE DEVELOPMENT OF NEW AND IMPROVED ORTHOPEDIC TREATMENT METHODS." //42 USC 289C - 1.//

(C) SECTION 434(B) OF SUCH ACT IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING: "THE ADVISORY COUNCIL SHALL REVIEW APPLICATIONS MADE TO THE DIRECTOR FOR GRANTS FOR RESEARCH PROJECTS RELATED TO ARTHRITITS AND RELATED MUSCULOSKELETAL DISEASES AND SHALL RECOMMEND TO THE DIRECTOR FOR APPROVAL THOSE APPLICATIONS AND CONTRACTS WHICH THE COUNCIL DETERMINES WILL BEST CARRY OUT THE PURPOSES OF THIS PART. THE ADVISORY COUNCIL SHALL ALSO REVIEW AND EVALUATE THE ARTHRITIS PROGRAMS UNDER THIS PART AND SHALL RECOMMEND TO THE DIRECTOR SUCH CHANGES IN THE ADMINISTRATION OF SUCH PROGRAMS AS IT DETERMINES ARE NECESSARY."

LEGISLATIVE HISTORY:

SENATE REPORT NO. 93 - 1251 (COMM. ON LABOR AND PUBLIC WELFARE).

CONGRESSIONAL RECORD, VOL. 120 (1974):

OCT. 11, CONSIDERED AND PASSED SENATE.

DEC. 18, CONSIDERED AND PASSED HOUSE, AMENDED.

DEC. 19, SENATE CONCURRED IN HOUSE AMENDMENT.

PUBLIC LAW 93-639, 88 STAT 2217, AMENDMENTS OF 1973 TO FEDERAL LAW RELATING TO EXPLOSIVES.

93RD CONGRESS, S. 1083 JANUARY 4, 1975
AN ACT TO AMEND CERTAIN PROVISIONS OF FEDERAL LAW RELATING TO EXPLOSIVES.

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES BY AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE CITED AS "AMENDMENTS OF 1973 TO FEDERLA LAW RELATING TO EXPLOSIVES".

SEC. 101. SECTION 845(A) OF TITLE 18 OF THE UNTIED STATES CODE (RELATING TO EXEMPTIONS FROM CERTAIN PROVISIONS OF FEDERAL LAW RELATING TO EXPLOSIVES) IS AMENDED BY STRIKING OUT PARAGRAPH (5) AND INSERTING IN LIEU THEREOF THE FOLLOWING NEW PARAGRAPH: //18 USC 845 NOTE.//

"(5) COMMERCIALLY MANUFACTURED BLACK POWDER IN QUANTITIES NOT TO EXCEED FIFTY POUNDS, PERCUSSION CAPS, SAFETY AND PYROTECHNIC FUSES, QUILLS, QUICK AND SLOW MATCHES, AND FRICTION PRIMERS, INTENDED TO BE USED SOLELY FOR SPORTING, RECREATIONAL, OR CULTURAL PURPOSES IN ANTIQUE FIREARMS AS DEFINED IN SECTION 921( A)(16) OF TITLE 18 OF THE UNITED STATES CODE, OR IN ANTIQUE DEVICES AS EXEMPTED FROM THE TERM 'DESTRUCTIVE DEVICE' IN SECTION 921(A) (4) OF TITLE 18 OF THE UNITED STATES CODE; AND".

SEC. 102. SECTION 921(A)(4) OF TITLE 18 OF THE UNITED STATES CODE IS AMENDED BY INSERTING AFTER THE WORD "SPORTING" IN THE LAST SENTENCE THE FOLLOWING:", RECREATIONAL OR CULTURAL".

LEGISLATIVE HISTORY:

HOUSE REPORT NO. 93 - 1570 (COMM. ON THE JUDICIARY).

SENATE REPORT NO. 93 - 274 (COMM. ON THE JUDICIARY).

CONGRESSIONAL RECORD:

VOL. 119 (1973): JULY 13, CONSIDERED AND PASSED SENATE.

VOL. 120 (1974): DEC. 17, CONSIDERED AND PASSED HOUSE, AMENDED.

DEC. 18, SENATE CONCURRED IN HOUSE AMENDMENT.

PUBLIC LAW 93-638, 88 STAT 2203, INDIAN SELF-DETERMINATION AND EDUCATION ASSISTANCE ACT

93RD CONGRESS, S. 1017 JANUARY 4, 1975
AN ACT TO PROVIDE MAXIMUM INDIAN PARTICIPATION IN THE GOVERNMENT AND EDUCATION OF THE INDIAN PEOPLE; TO PROVIDE FOR THE

FULL PARTICIPATION

OF INDIAN TRIBES IN

PROGRAMS AND SERVICES CONDUCTED BY THE FEDERAL

GOVERNMENT FOR INDIANS AND

TO ENCOURAGE THE DEVELOPMENT OF HUMAN RESOURCES OF THE

INDIANS PEOPLE: TO

ESTABLISH A PROGRAM OF ASSISTANCE TO UPGRADE INDIAN

EDUCATION; TO SUPPORT THE

RIGHT OF INDIAN CITIZENS TO CONTROL THEIR OWN

EDUCATIONAL ACTICITIES; AND FOR

OTHER PURPOSES.

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE CITED AS THE "INDIAN SELF-DETERMIANTION AND EDUCATION ASSISTANCE ACT". //25 USC 450 NOTE.//

CONGRESSIONAL FINDINGS //25 USC 450.//

SEC. 2. (A) THE CONGRESS, AFTER CAREFUL REVIEW OF THE FEDERAL GOVERNMENT'S HISTORICAL AND SPECIAL LEGAL RELATIONSHIP WITH, AND RESULTING RESPONSIBILITIES TO, AMERICAN INDIAN PEOPLE, FINDS THAT--,

(1) THE PROLONGED FEDERAL DOMINATION OF INDIAN SERVICE PROGRAMS HAS SERVED TO RETARD RATHER THAN ENHANCE THE PROGRESS OF INDIAN PEOPLE AND THEIR COMMUNITIES BY DEPRIVING INDIANS OF THE FULL OPPORTUNITY TO DEVELOP LEADERSHIP SKILLS CRUCIAL TO THE REALIZATION OF SELF-GOVERNMENT, AND HAS DENIED TO THE INDIAN PEOPLE AN EFFECTIVE VOICE IN THE PLANNING AND IMPLEMENTATION OF PROGRAMS FOR THE BENEFIT OF INDIANS WHICH ARE RESPONSIVE TO THE TRUE NEEDS OF INDIAN COMMUNITIES; AND

(2) THE INDIAN PEOPLE WILL NEVER SURRENDER THEIR DESIRE TO CONTROL THEIR RELATIONSHIPS BOTH AMONG THEMSELVES AND WITH NON-INDIAN GOVERNMENTS, ORGANIZATIONS, AND PERSONS.

(B) THE CONGRESS FURTHER FUNDS THAT--,

(1) TRUE SELF-DETERMINATION IN ANY SOCIETY OF PEOPLE IS DEPENDENT UPON AN EDUCATIONAL PROCESS WHICH WILL INSURE THE DEVELOPMENT OF QUALIFIED PEOPLE TO FULFILL MEANINGFUL LEADERSHIP ROLES;

(2) THE FEDERAL RESPONSIBILITY FOR AND ASSISTANCE TO EDUCATION OF INDIAN CHILDREN HAS NOT EFFECTED THE DESIRED LEVEL OF EDUCATIONAL ACHIEVEMENT OR CREATED THE DIVERSE OPPORTUNITIES AND PERSONAL SATISFACTION WHICH EDUCATION CAN AND SHOULD PROVIDE; AND

(3) PARENTAL AND COMMUNITY CONTROL OF THE EDUCATIONAL PROCESS IS OF CRUCIAL IMPORTANCE TO THE INDIAN PEOPLE.

DECLARATION OF POLICY //25 USC 450A.//

SEC. 3. (A) THE CONGRESS HEREBY RECOGNIZES THE OBLIGATION OF THE UNITED STATES TO RESPOND TO THE STRONG EXPRESSION OF THE INDIAN PEOPLE FOR SELF-DETERMINATION BY ASSURING MAXIMUM INDIAN PARTICIPATION IN THE DIRECTION OF EDUCATIONAL AS WELL AS OTHER FEDERAL SERVICES TO INDIAN COMMUNITIES SO AS TO RENDER SUCH SERVICES MORE RESPONSIVE TO THE NEEDS AND DESIRES OF THOSE COMMUNITIES.

(B) THE CONGRESS DECLARES ITS COMMITMENT TO THE MAINTENACE OF THE FEDERAL GOVERNMENT'S UNIQUE AND CONTINUING RELATIONSHIP WITH AND RESPONSIBILITY TO THE INDIAN PEOPLE THROUGH THE ESTABLISHMENT OF A MEANINGFUL INDIAN SELF-DETERMINATION POLICY WHICH WILL PERMIT AN ORDERLY TRANSITION FROM FEDERAL DOMINATION OF PROGRAMS FOR AND SERVICES TO INDIANS TO EFFECTIVE AND MEANINGFUL PARTICIPATION BY THE INDIAN PEOPLE IN THE PLANNING, CONDUCT, AND ADMINISTRATION OF THOSE PROGRAMS AND SERVICES.

(C) THE CONGRESS DECLARES THAT A MAJOR MATIONAL GOAL OF THE UNITED STATES IS TO PROVIDE THE QUANTITY AND QUALITY OF EDUCATIONAL SERVICES AND OPPORTUNITIES WHICH WILL PERMIT INDIAN CHILDREN TO COMPETE AND EXCEL IN THE LIFE AREAS OF THEIR CHOICE, AND TO ACHIEVE THE MEASURE OF SELF-DETERMINATION ESSENTIAL TO THEIR SOCIAL AND ECONOMIC WELL-BEING.

DEFINITIONS //11 USC 450B.//

SEC. 4. FOR THE PURPOSES OF THIS ACT, THE TERM--,

(A) "INDIAN" MEANS A PERSON WHO IS A MEMBER OF AN INDIAN TRIBE;

(B) "INDIAN TRIBE" MEANS ANY INDIAN TRIBE, BAND, NATION, OR OTHER ORGANIZED GROUP OR COMMUNITY, INCLUDING ANY ALASKA NATIVE VILLAGE OR REGIONAL OR VILLAGE CORPORATION AS DEFINED IN OR ESTABLISHED PURSUANT TO THE ALASKA NATIVE CLAIMS SETTLEMENT ACT (85 STAT. 688) WHICH IS RECOGNIZED AS ELIGIBLE FOR THE SPECIAL PROGRAMS AND SERICES PROVIDED BY THE UNITED STATES TO INDIANS BECAUSE OF THEIR STATUS AS INDIANS;

"(C) "TRIBAL ORGANIZATION" MEANS THE RECOGNIZED GOVERNING BODY OF ANY INDIAN TRIBE; ANY LEGALLY ESTABLISHED ORGANIZATION OF INDIANS WHICH IS CONTROLLED, SANCTIONED, OR CHARTERED BY SUCH GOVERNING BODY OR WHICH IS DEMOCRATICALLY ELECTED BY THE ADULT MEMBERS OF THE INDIAN COMMUNITY TO BE SERVED BY SUCH ORGANIZATION AND WHICH INCLUDES THE MAXIMUM PARTICIPATION OF INDIANS IN ALL PHASES OF ITS ACTIVITIES: PROVIDED, THAT IN ANY CASE WHERE A CONTRACT IS LET OR GRANT MADE TO AN ORGANIZATION TO PERFORM SERVICES BENEFITTING MORE THAN ONE INDIAN TRIBE, THE APPROVAL OF EACH SUCH INDIAN TRIBE SHALL BE A PREREQUISITE TO THE LETTING OR MAKING OF SUCH CONTRACT OR GRANT;

(D) "SECRETRY", UNLESS OTHERWISE DESIGNATED, MEANS THE SECRETARY OF THE INTERIOR;

(F) "STATE EDUCATIONA AGENCY" MEANS THE STATE BOARD OF EDUCATION OR OTHER AGENCY OR OFFICER PRIMARILY RESPONSIBLE FOR SUPERVISION BY THE STATE OF PUBLIC ELEMENTARY AND SECONDARY SCHOOLS, OR, IF THERE IS NO SUCH OFFICER OR AGENCY, AN OFFICER OR AGENCY DESIGNATED BY THE GOVERNOR OR BY STATE LAW.

REPORTING AND AUDIT REQUIREMENTS //25 USC 450C.//

SEC. 5. (A) EACH RECIPIENT OF FEDERAL FINANCIAL ASSISTANCE FROM THE SECRETARY OF INTERIOR OR THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE, UNDER THIS ACT, SHALL KEEP SUCH RECORDS AS THE APPROPRIATE SECRETARY SHALL PRESCRIBE, INCLUDING RECORDS WHICH FULLY DISCLOSE THE AMOUNT AND DISPOSITION BY SUCH RECIPIENT OF THE PROCEEDS OF SUCH ASSISTANCE, THE COST OF THE PROJECT OR UNDERTAKING IN CONNECTION WITH WHICH SUCH ASSISTANCE IS GIVEN OR USED, THE AMOUNT OF THAT PORTION OF THE COST OF THE PROJECT OR UNDERTAKING SUPPLIED BY OTHER SOURCES, AND SUCH OTHER RECORDS AS WILL FACILITATE AN EFFECTIVE AUDIT.

(B) THE COMPTROLLER GENERAL AND THE APPROPRIATE SECRETARY, OR ANY OF THEIR DULY AUTHORIZED REPRESENTATIVES, SHALL, UNTIL THE EXPIRATION OF THREE YEARS AFTER COMPLETION OF THE PROJECT OR UNDERTAKING REFERRED TO IN THE PRECEDING SUBSECTION OF THIS SECTION, HAVE ACCESS (FOR THE PURPOSE OF AUDIT AND EXAMINATION) TO ANY BOOKS, DOCUMENTS, PAPERS, AND RECORDS OF SUCH RECIPIENTS WHICH IN THE OPINION OF THE COMPTROLLER GENERAL OR THE APPROPRIATE SECRETARY MAY BE RELATED OR PERTINENT TO THE GRANTS, CONTRACTS, SUBCONTRACTS, SUBGRANTS, OR OTHER ARRANGEMENTS REFERRED TO IN THE PRECEDING SUBSECTION.

(C) EACH RECIPIENT OF FEDERAL FINANCIAL ASSISTANCE REFERRED TO IN SUBSECTION (A) OF THIS SECTION SHALL MAKE SUCH REPORTS AND INFORMATION AVAILABLE TO THE INDIAN PEOPLE SERVED OR REPRESENTED BY SUCH RECIPIENT AS AND IN A MANNER DETERMINED TO BE ADEQUATE BY THE APPROPRIATE SECRETARY.

(D) ANY FUNDS PAID TO A FINANCIAL ASSISTANCE RECIPIENT REFERRED TO IN SUBSECTION (A) OF THIS SECTION AND NOT EXPENDED OR USED FOR THE PURPOSES FOR WHICH PAID SHALL BE REPAID TO THE TREASURY OF THE UNITED STATES.

PENALTIES //25 USC 450D.//

SEC. 6. WHOEVER, BEING AN OFFICER, DIRECTOR, AGENT, OR EMPLOYEE OF, OR CONNECTED IN ANY CAPACITY WITH, ANY RECIPIENT OF A CONTRACT, SUBCONTRACT, GRANT, OR SUBGRANT PURSUANT TO THIS ACT OR THE ACT OF APRIL 16, 1934 (48 STAT. 596), AS AMENDED, EMBEZZLES, WILLFULLY MISAPPLIES, STEALS, OR OBTAINS BY FRAUD ANY OF THE MONEY, FUNDS, ASSETS, OR PROPERTY WHICH ARE THE SUBJECT OF SUCH A GRANT, SUBGRANT, CONTRACT, OR SUBCONTRACT, SHALL BE FINED NOT MORE THAN $10,000 OR IMPRISONED FOR NOT MORE THAN TWO YEARS, OR BOTH, BUT IF THE AMOUNT SO EMBEZZLED, MISAPPLIED, STOLEN, OR OBTAINED BY FRAUD DOES NOT EXCEED $100, HE SHALL BE FINED NOT MORE THAN $1,000 OR IMPRISONED NOT MORE THAN ONE YEAR, OR BOTH. //25 USC 450E.//

SEC. 7 (A) ALL LABORERS AND MECHANICS EMPLOYED BY CONTRACTORS OF SUBCONTRACTORS IN THE CONSTRUCTION, ALTERNATION, OR REPAIR, INCLUDING PAINTING OR DECORATING OF BUILDINGS OR OTHER FACILITIES IN CONNECTION WITH CONTRACTS OR GRANTS ENTERED INTO PURSUANT TO THIS ACT, SHALL BE PAID WAGES AT 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 MARCH 3, 1931 (46 STAT. 1494), AS AMENDED. //40 USC 276A NOTE.// WITH RESPECT TO CONSTRUCTION, ALTERNATION, OR REPAIR WORK TO WHICH THE ACT OF MARCH 3, 1921 IS APPLICABLE UNDER THE TEDRMS OF THIS SECTION, THE SECRETARY OF LABOR SHALL HAVE THE AUTHORITY AND FUNCTIONS SET FORTH IN REORGANIZATION PLAN NUMBERED 14 OF 1950 (15 F.R. 3176; 64 STAT. 1267) AND SECTION 2 OF THE ACT OF JUNE 13, 1934 (48 STAT 948, 40 U.S.C. 276C). //5 USC APP. II.//

(B) ANY CONTRACT, SUBCONTRACT, GRANT, SUBGRANT PURSUANT TO THIS ACT, THE ACT OF APRIL 16, 1934 (48 STAT. 596), AS AMENDED, OR ANY OTHER ACT AUTHORIZING FEDERAL CONTRACTS WITH OR GRANTS TO INDIAN ORGANIZATIONS OR FOR THE BENEFIT OF INDIANS, SHALL REQUIRE THAT TO THE GREATEST EXTENT FEASIBLE--, //25 USC 452.//

(1) PREFERENCES AND OPPORTUNITIES FOR TRAINING AND EMPLOYMENT IN CONNECTION WITH THE ADMINISTRATION OF SUCH CONTRACTS OR GRANTS SHALL BE GIVEN TO INDIANS; AND

(2) PREFERENCE IN THE AWARD OF SUBCONTRACTS AND SUBGRANTS IN CONNECTION WITH THE ADMINISTRATION OF SUCH CONTRACTS OR GRANTS SHALL BE GIVEN TO INDIAN ORGANIZATIONS AND TO INDIAN-OWNED ECONOMIC ENTERPRISES AS DEFINED IN SECTION 3 OF THE INDIAN FINANCING ACT OF 1974 (88 STAT. 77). //25 USC 1452.//

SEC. 8. THE PROVISIONS OF ANY OTHER LAWS TO THE CONTRARY NOTWITHSTANDINGM, ANY FUNDS APPROPRIATED PURSUANT TO THE ACT OF NOVEMBER 2, 1921 (42 STAT. 208), FOR ANY FISCAL YEAR WHICH ARE NOT OBLIGATED AND EXPENDED PRIOR TO THE BEGINNING OF THE FISCAL YEAR SUCCEEDING THE FISCAL YEAR FOR WHICH SUCH FUNDS WERE APPROPRIATED SHALL REMAIN AVAILABLE FOR OBLIGATION AND EXPENDITURE DURING SUCH SUCCEEDING FISCAL YEAR. //25 USC 13A, 25 USC 13, 52A.//

TITLE I--INDIAN SELF-DETERMINATION ACT

SEC. 101. THIS TITLE MAY BE CITED AS THE "INDIANS SELF-DETERMINATION ACT". //25 USC 450F NOTE.//

CONTRACTS BY THE SECRETARY OF THE INTERIOR //25 USC 450F.//

SEC. 102. (A) THE SECRETARY OF THE INTERIOR IS DIRECTED, UPON THE REQUEST OF ANY INDIAN TRIBE, TO ENTER INTO A CONTRACT OR CONTRACTS WITH ANY TRIBAL ORGANIZATION OF ANY SUCH INDIAN TRIBE TO PLAN, CONDUCT, AND ADMINISTER PROGRAMS, OR PORTIONS THEREOF, PROVIDED FOR IN THE ACT OF APRIL 16, 1934 (48 STAT. 596), AS AMENDED BY THIS ACT, ANY OTHER PROGRAM OR PORTION THEREOF WHICH THE SECRETARY OF THE INTERIOR IS AUTHORIZED TO MINISTER FOR THE BENEFIT OF INDIANS UNDER THE ACT OF NOVEMBER 2, 1921 (42 STAT. 208), AND ANY ACT SUBSEQUENT THERETO: //25 USC 452, 25 USC 13, 52A.// PROVIDED, HOWEVER, THAT THE SECRETARY MAY INITIALLY DECLINE TO ENTER INTO ANY CONTRACT REQUESTED BY AN INDIAN TRIBE IF HE FINDS THAT: (1) THE SERVICE TO BE RENDERED TO THE INDIAN BENEFICIARIES OF THE PARTICULAR PROGRAM OR FUNCITON TO E CONTRACTED WILL NOT BE SATISFACTORY; (2) ADEQUATE PROTECTION OF TRUST RESOURCES IS NOT ASSURED, OR (3) THE PROPOSED PROJECT OR FUNCTION TO BE CONTRACTED FOR CANNOT BE PROPERLY COMPLETED OR MAINTAINED BY THE PROPOSED CONTRACT: PROVIDED FURTHER, THAT IN ARRIVING AT HIS FINDING, THE SECRETARY SHALL CONSIDER WHETHER THE TRIBE OR TRIBAL ORGANIZATION WOULD BE DEFICIENT IN PERFORMANCE UNDER THE CONTRACT WITH RESPECT TO (A) EQUIPMENT, (B) BOOKKEEPING AND ACCOUNTING PROCEDURES, (C) SUBSTANTIVE KNOWLEDGE OF THE PROGRAM TO BE CONTNRACTED FOR, (D) COMMUNITY SUPPORT FOR THE CONTRACT, (E) ADEQUATELY TRAINED PERSONNEL, OR (F) OTHER NECESSARY COMPONENTS OF CONTRACT PERFORMANCE.

(B) WHENEVER THE SECRETARY DECLINES TO ENTER INTO A CONTRACT OR CONTRACTS PURSUANT TO SUBSECTION (A) OF THIS SECTION, HE SHALL (1) STATE HIS OBJECTIONS IN WRITING TO THE TRIBE WITHIN SIXTY DAYS, (2) PROVIDE TO THE EXTENT PRACTICABLE ASSISTANCE TO THE TRIBE OR TRIBAL ORGANIZATION TO OVERCOME HIS STATED OBJECTIONS, AND (3) PROVIDE THE TRIBE WITH A HEARING, UNDER SUCH RULES AND REGULATIONS AS HE MAY PROMULGATE, AND THE OPPORTUNITY FOR APPEAL ON THE OBJECTIONS RAISED.

(C) THE SECRETARY IS AUTHORIZED TO REQUIRE ANY TRIBE REQUESTING THAT HE ENTER INTO A CONTRACT PURSUANT OT THE PROVISIONS OF THIS TITLE TO OBTAIN ADEQUATE LIABILITY INSURANCE: PROVIDED, HOWEVER, THAT EACH SUCH POLICY OF INSURANCE SHALL CONTAIN A PROVISION THAT THE INSURANCE CARRIER SHALL WAIVE ANY RIGHT IT MAY HAVE TO RAISE AS A DEFENSE THE TRIBE'S SOVEREIGN IMMUNITY FROM SUIT, BUT THAT SUCH WAIVER SHALL EXTEND ONLY TO CLAIMS THE AMOUNT OF NATURE OF WHICH ARE WITHIN THE COVERAGE AND LIMITS OF THE POLICY AND SHALL NOT AUTHORIZE OR EMPOWER SUCH INSURANCE OUTSIDE OR BEYOND THE COVERAGE AND LIMITS OF THE POLICY OF INSURANCE.

CONTRACTS BY THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE //25 USC 4500//

SEC. 103. (A) THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE IS DIRECTED, UPON THE REQUEST OF ANY INDIAN TRIBE, TO ENTER INTO A CONTRACT OR CONTRACTS WITH ANY TRIBAL ORGANIZATION OF ANY SUCH INDIAN TRIBE TO CARRY OUT ANY OR ALL OF HIS FUNCTIONS, AUTHORITIES, AND RESPONSIBILITIES UNDER THE ACT OF AUGUST 5, 1954 (68 STAT. 674), AS AMENDED: //42 USC 2001.// PROVIDED, HOWEVER, THAT THE SECRETARY MAY INITIALLY DECLINE TO ENTER INTO ANY CONTRACT REQUESTED BY AN INDIAN TRIBE IF HE FINDS THAT: (1) THE SERVICE TO BE RENDERED TO THE INDIAN BENEFICIARIES OF THE PARTICULAR PROGRAM OR FUNC