text:
Page:United States Statutes at Large Volume 95.djvu/908

 95 STAT. 882 19 USC 2273.

26 USC 3304 ^A% ORKO M Stat. 4Jb5«.

Post, p. 885.

PUBLIC LAW 97-35—AUG. 13, 1981 "(B) before the expiration of the 2-year period beginning on the date on which the determination under section 223 was made, and "(2) Such worker had, in the 52-week period ending with the week in which such total or partial separation occurred, at least 26 weeks of employment at wages of $30 or more a week in adversely affected employment with a single firm or subdivision of a firm, or, if data with respect to weeks of employment with a firm are not available, equivalent amounts of employment computed under regulations prescribed by the Secretary. For the purposes of this paragraph, any week in which such worker— "(A) is on employer-authorized leave for purposes of vacation, sickness, injury, maternity, or inactive duty or active duty military service for traininjpf, "(B) does not work because of a disability that is compensable under a workmen's compensation law or plan of a State or the United States, or "(C) had his employment interrupted in order to serve as a full-time representative of a labor organization in such firm or subdivision, shall be treated as a week of employment at wages of $30 or more, but not more than the following number of weeks may be treated as such weeks of employment under this sentence: "(i) 3 weeks if no weeks described in subparagraph (B) occurred during the 52-week period concerned. "(ii) 7 weeks if all are weeks described in subparagraph (B). "(iii) 7 weeks in the case of weeks described in subparagraphs (B) and (A) or (C), or both, except that not more than 3 of such weeks may be other than weeks described in subparagraph (B). "(3) Such worker— "(A) was entitled to (or would be entitled to if he applied therefor) unemployment insurance for a week within the benefit period (i) in which such total or partial separation took place, or (ii) which began (or would have begun) by reason of the filing of a claim for unemployment insurance by such worker after such total or partial separation; "(B) has exhausted all rights to any unemployment insurance to which he was entitled (or would be entitled if he applied therefor); and (C) does not have an unexpired waiting period applicable to him for any such unemployment insurance. "(4) Such worker, with respect to such week of unemployment, would not be disqualified for extended compensation payable under the Federal-State Extended Unemployment Compensation Act of 1970 by reason of the work acceptance and job search requirements in section 202(a)(3) of such Act. UQ^^ jf ^jjg Secretary determines with respect to any labor market area that— "(1) a high level of unemployment exists, "(2) suitable employment opportunities are not available, and "(3) there are facilities available for the provision of training under section 236 in new or related job classifications, the Secretary may, in accordance with such regulations as he shall prescribe, require all adversely affected workers who were totally Or
 * '(C) before the termination date (if any) determined pursuant to section 223(d).

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Page:United States Statutes at Large Volume 95.djvu/909

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 883

partially separated in such area and for whom such training is approved under section 236— "(A) to accept such training, or "(B) to search actively for work outside such area, whichever the worker may choose; except that no worker may be required (i) to accept training or undertake a job search under this subsection until after the first 8 weeks of his eligibility for trade readjustment allowances has expired, or (ii) to accept, or to participate in, such training for a period longer than the remaining period to which he is entitled to such allowances. For purposes of this subsection, the term 'labor market area' has the same meaning as is given such term in the Introduction to the Directory of Important Labor Areas, 1980 edition, published by the Department of Labor; except that for any portion of any State which is not included within that term in such Introduction, the county or counties in which that portion is located shall be treated as the applicable labor market area.".

Post, p. 885.

"Labor market area."

AMOUNT OF TRADE READJUSTMENT ALLOWANCES

SEC. 2504. (a) Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended— (1) by amending subsection (a) to read as follows: "(a) Subject to subsections (b) and (c), the trade readjustment allowance payable to an adversely affected worker for a week of total unemployment shall be an amount equal to the most recent weekly benefit amount of the unemployment insurance payable to the worker for a week of total unemployment preceding the worker's first exhaustion of unemployment insurance (as determined for purposes Ante, p. 881. of section 231(a)(3)(B)) reduced (but not below zero) by— "(1) any training allowance deductible under subsection (c); and "(2) income that is deductible from unemployment insurance under the disqualifying income provisions of the applicable State law or Federal unemployment insurance law."; (2) by striking out subsections (c), (e) and (f); (3) by redesignating subsection (d) as subsection (c); and (4) by amending subsection (c) (as redesignated by paragraph (3))(A) by striking out "unemployment insurance, or" and "subsection (c) or (e) or to" in the first sentence thereof, and (B) by striking out "the unemployment insurance, or" in the second sentence thereof. (b) Any reference in any law to subsection (d) of section 232 of the 19 USC 2292 Trade Act of 1974 shall be considered a reference to subsection (c) note. thereof. TIME LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES

SEC. 2505. (a) Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended to read as follows: "SEC. 233. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES.

"(a)(1) The maximum amount of trade readjustment allowances payable with respect to the period covered by any certification to an adversely affected worker shall be the amount which is the product of 52 multiplied by the trade readjustment allowance payable to the worker for a week of total unemployment (as determined under

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license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


text:
Page:United States Statutes at Large Volume 95.djvu/910

 95 STAT. 884 Ante, p. 883. Ante, p. 881.

Post, p. 885.

19 USC 2292.

94 Stat. 2656.

PUBLIC LAW 97-35—AUG. 13, 1981 section 232(a)), but such product shall be reduced by the total sum of the unemployment insurance to which the worker was entitled (or would have been entitled if he had applied therefor) in the worker's first benefit period described in section 231(a)(3)(A). "(2) A trade readjustment allowance shall not be paid for any week after the 52-week period beginning with the first week following the first week in the period covered by the certification with respect to which the worker has exhausted (as determined for purposes of section 231(a)(3)(B)) all rights to that part of his unemployment insurance that is regular compensation. "(3) Notwithstanding paragraph (1), in accordance with regulations prescribed by the Secretary, payments may be made as trade readjustment allowances for up to 26 additional weeks in the 26-week period following the last week of entitlement to trade readjustment allowances otherwise payable under this chapter in order to assist the adversely affected worker to complete training approved for the worker under section 236. Payments for such additional weeks may be made only for weeks in such 26-week period during which the individual is engaged in such training and has not been determined under section 236(c) to be failing to make satisfactory progress in the training. "(b) A trade readjustment allowance may not be paid for an additional week specified in subsection (a)(3) if the adversely affected worker who would receive such allowance did not make a bona fide application to a training program approved by the Secretary under section 236 within 210 days after the date of the worker's first certification of eligibility to apply for adjustment assistance issued by the Secretary, or, if later, within 210 days after the date of the worker's total or partial separation referred to in section 231(a)(1). "(c) Amounts payable to an adversely affected worker under this part shall be subject to such adjustment on a week-to-week basis as may be required by section 232(b). "(d) Notwithstanding any other provision of this Act or other Federal law, if the benefit year of a worker ends within an extended benefit period, the number of weeks of extended benefits that such worker would, but for this subsection, be entitled to in that extended benefit period shall be reduced (but not below zero) by the number of weeks for which the worker was entitled, during such benefit year, to trade readjustment allowances under this part. For purposes of this paragraph, the terms 'benefit year' and 'extended benefit period' shall have the same respective meanings given to them in the Federal-State Extended Unemployment Compensation Act of 1970.". (b) Section 204(a)(2) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended— (1) by striking out "or" at the end of clause (A); and (2) by inserting before the period at the end thereof the following: ", or (C) paid for any week with respect to which such benefits are not payable by reason of section 233(d) of the Trade Act of 1974". TRAINING AND OTHER EMPLOYMENT SERVICES

SEC. 2506. Subchapter B of chapter 2 of title II of the Trade Act of 1974 is further amended— (1) by amending the center heading for part II of such subchapter to read as follows:

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Page:United States Statutes at Large Volume 95.djvu/911

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 885

"PART II—TRAINING, OTHER EMPLOYMENT SERVICES, AND ALLOWANCES";

(2) by amending subsections (a) and (b) of section 236 to read as follows: "(a)(1) If the Secretary determines that— "(A) there is no suitable employment (which may include technical and professional emplo5niient) available for a worker, "(B) the worker would benefit from appropriate training, "(C) there is a reasonable expectation of employment following completion of such training, "(D) training approved by the Secretary is available to the worker from either governmental agencies or private sources (which may include area vocational education schools, as defined in section 195(2) of the Vocational Education Act of 1963, and employers), and "(E) the worker is qualified to undertake and complete such training, the Secretary may approve such training for the worker. Upon such approval, the worker shall be entitled to have payment of the costs of such training paid on his behalf by the Secretary. Insofar as possible, the Secretary shall provide or assure the provision of such training on the job, which shall include related education necessary for the acquisition of skills needed for a position within a particular occupation. "(2) A worker may not be determined to be ineligible or disqualified for unemployment insurance or program benefits under this subchapter because the individual is in training approved under paragraph (1), because of leaving work which is not suitable employment to enter such training, or because of the application to any such week in training of provisions of State law or Federal unemployment insurance law relating to availability for work, active search for work, or refusal to accept work. The Secretary shall submit to the Congress a quarterly report regarding the amount of funds expended during the quarter concerned to provide training under paragraph (1) and the anticipated demand for such funds for any remaining quarters in the fiscal year concerned. "(3) For purposes of this subsection the term 'suitable employment* means, with respect to a Worker, work of a substantially equal or higher skill level than the worker's past adversely affected employment, and wages for such work at not less than 80 percent of the worker's average weekly wage. "(b) The Secretary may, where appropriate, authorize supplemental assistance necessary to defray reasonable transportation and subsistence expenses for separate maintenance when training is provided in facilities which are not within commuting distance of a worker's regular place of residence. The Secretary may not authorize— "(1) payments for subsistence that exceed whichever is the lesser of (A) the actual per diem expenses for subsistence, or (B) payments at 50 percent of the prevailing per diem allowance rate authorized under the Federal travel regulations, or "(2) payments for travel expenses exceeding the prevailing mileage rate authorized under the Federal travel regulations.', and (3) by striking out the following:

19 USC 2296

20 USC 2461

Report to Congress.

"Suitable employment.

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Page:United States Statutes at Large Volume 95.djvu/912

 95 STAT. 886

PUBLIC LAW 97-35—AUG. 13, 1981 "PART HI—JOB SEARCH AND RELOCATION ALLOWANCES". INCREASED JOB SEARCH ALLOWANCES

19 USC 2271.

Ante, p. 885.

SEC. 2507. Section 237 of the Trade Act of 1974 (19 U.S.C. 2297) is amended as follows: (1) Subsection (a) thereof is amended to read as follows: "(a) Any adversely affected worker covered by a certification under subchapter A of this chapter may file an application with the Secretary for a job search allowance. Such allowance, if granted, shall provide reimbursement to the worker of 90 percent of the cost of necessary job search expenses as prescribed by regulations of the Secretary; except that— "(1) such reimbursement may not exceed $600 for any worker, and "(2) reimbursement may not be made for subsistence and transportation expenses at levels exceeding those allowable under section 236(b)(1) and (2).". (2) Subsection (b) thereof is amended— (A) by amending paragraph (1) to read as follows: "(1) to assist an adversely affected worker who has been totally separated in securing a job within the United States;"; and (B) by amending paragraph (3) to read as follows: "(3) where the worker has filed an application for such allowance with the Secretary before— "(A) the later of— "(i) the 365th day after the date of the certification under which the worker is eligible, or "(ii) the 365th day after the date of the worker's last total separation; or "(B) the 182d day after the concluding date of any training received by the worker, if the worker was referred to such training by the Secretary.". INCREASED RELOCATION ALLOWANCES

SEC 2508. Section 238 of the Trade Act of 1974 (19 U.S.C. 2298) is amended— (1) by amending subsection (a)— (A) by striking out "who has been totally separated"; and (B) by striking out the period and inserting in lieu thereof the following: ", if such worker files such application before— "(1) the later of— "(A) the 425th day after the date of the certification, or "(B) the 425th day after the date of the worker's last total separation; or "(2) the 182(1 day after the concluding date of any training received by such worker, if the worker was referred to such training by the Secretary."; (2) by amending subsection O> by striking out the period at the t) end of paragraph (2) and inserting in lieu thereof ", and", and by adding at the end thereof the following: "(3) is totally separated from employment at the time relocation commences."; (3) by amending subsection (c) to read as follows: "(c) A relocation mlowance shall not be granted to such worker unless his relocation occurs within 182 days after the filing of the

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Page:United States Statutes at Large Volume 95.djvu/913

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 887

application therefor or (in the case of a worker who has been referred to training by the Secretary) within 182 days after the conclusion of such training."; and (4) by amending subsection (d)— (A) by amending paragraph (1) to read as follows: "(1) 90 percent of the reasonable and necessary expenses (including, but not limited to, subsistence and transportation expenses at levels not exceeding those allowable under section 236(b)(1) and (2)) specified in regulations prescribed by the Ante, p. 885. Secretary, incurred in transporting a worker and his family, if any, and household effects, and", and (B) by striking out "$500" in paragraph (2) and inserting in lieu thereof "$600". FRAUD AND RECOVERY OF OVERPAYMENTS

SEC. 2509. Section 243 of the Trade Act of 1974 (19 U.S.C. 2315) is amended to read as follows: "SEC. 243. FRAUD AND RECOVERY OF OVERPAYMENTS. "(a)(1) If a cooperating State agency, the Secretary, or a court of competent jurisdiction determines that any person has received any payment under this chapter to which the person was not entitled, including a payment referred to in subsection (b), such person shall be liable to repay such amount to the State agency or the Secretary, as the case may be, except that the State agency or the Secretary may waive such repayment if such agency or the Secretary determines, in accordance with guidelines prescribed by the Secretary, that— "(A) the payment was made without fault on the part of such individual, and "(B) requiring such repayment would be contrary to equity and good conscience. "(2) Unless an overpayment is otherwise recovered, or waived under paragraph (1), the State agency or the Secretary shall recover the overpayment by deductions from any sums payable to such person under this chapter, under any Federal unemployment compensation law administered by the State agency or the Secretary, or under any other Federal law administered by the State agency or the Secretary which provides for the payment of assistance or an allowance with respect to unemployment, and, notwithstanding any other provision of State law or Federal law to the contrary, the Secretary may require the State agency to recover any overpayment under this chapter by deduction from any unemployment insurance payable to such person under the State law, except that no single deduction under this paragraph shall exceed 50 percent of the amount otherwise payable. "(b) If a cooperating State agency, the Secretary, or a court of competent jurisdiction determines that an individual— "(1) knowingly has made, or caused another to make, a false statement or representation of a material fact, or "(2) knowingly has failed, or caused another to fail, to disclose a material fact, and as a result of such false statement or representation, or of such nondisclosure, such individual has received any payment under this chapter to which the individual was not entitled, such individual shall, in addition to any other penalty provided by law, be ineligible for any further payments under this chapter.

9-194 0—82

58:QL3

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Page:United States Statutes at Large Volume 95.djvu/914

 95 STAT. 888

PUBLIC LAW 97-35—AUG. 13, 1981 "(c) Except for overpayments determined by a court of competent jurisdiction, no repayment may be required, and no deduction may be made, under this section until a determination under subsection (a)(1) by the State agency or the Secretary, as the case may be, has been made, notice of the determination and an opportunity for a fair hearing thereon has been given to the individual concerned, and the determination has become final. "(d) Any amount recovered under this section shall be returned to the Treasury of the United States.". AUTHORIZATION OF APPROPRIATIONS

SEC. 2510. Section 245 of the Trade Act of 1974 (19 U.S.C. 2317) is amended to read as follows: "SEC. 245. AUTHORIZATION OF APPROPRIATIONS.

"There are authorized to be appropriated to the Department of Labor, for each of fiscal years 1982 and 1983, such sums as may be necessary to carry out the purposes of this chapter.". DEFINITIONS

5 USC 8501 et
 * ^945 ubc dbT.

SEC. 2511. Section 247 of the Trade Act of 1974 (19 U.S.C. 2319) is amended— (1) by repealing paragraphs (3) and (7); (2) by amending paragraph (12) to read as follows: "(12) The term 'unemployment insurance' means the unemployment compensation payable to an individual under any State law or Federal unemployment compensation law, including chapter 85 of title 5, United States Code, and the Railroad Unemployment Insurance Act. The terms 'regular compensation', additional compensation', and 'extended compensation* have the same respective meanings that are given them in section 205(2), (3), and (4) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note)."; (3) by amending paragraph (14) to read as follows: "(14) The term 'week of unemployment' means a week of total, part-total, or partial unemployment as determined under the applicable State law or Federal unemployment insurance law."; and (4) by adding at the end thereof the following: "(15) The term 'benefit period' means, with respect to an individual— "(A) the benefit year and any ensuing period, as determined under applicable State law, during which the individual is eligible for regular compensation, additiongJ compensation, or extended compensation, or "(B) the equivalent to such a benefit year or ensuing period provided for under the applicable Federal unemployment insurance law.". EXTENSION OF ADJUSTMENT ASSISTANCE

94 Stat. 1746. 19 USC note Pp^/VoplnVi 2341 19 USC 2371.

SEC. 2512. Section 285 of the Trade Act of 1974 (19 U.S.C. 2395) is amended by striking out "shall terminate on September 30, 1982." ^^^ inserting in lieu thereof "chapters 2 and 3 shall terminate on September 30, 1983. Chapter 4 shall terminate on September 30, 1982.".

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Page:United States Statutes at Large Volume 95.djvu/915

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 889

CONFORMING AMENDMENTS

SEC. 2513. (a)(l) Subsection (c) of section 224 of the Trade Act of 1974 (19 U.S.C. 2274(c)) is repealed. (2) The section heading for such section 224 is amended by striking o u t "; ACTION WHERE THERE IS AFFIRMATIVE FINDING".

(b) Section 241 of such Act of 1974 (19 U.S.C. 2313) is amended by striking out the last sentence in subsection (a), and by striking out "and credited to Adjustment Assistance Trust Fund" in subsection (b). (c) Section 246 of such Act of 1974 (19 U.S.C. 2318) is repealed. Repeal. (d) The table of contents to such Act of 1974 is amended— (1) by striking out"; action where there is affirmative finding" in the reference to section 224; (2) by inserting after the reference to section 224 the following: "Sec. 225. Benefit information to workers.";

(3) by striking out "Time limitations" in the reference to section 233 and inserting in lieu thereof "Limitations"; (4) by amending the center heading to part II of subchapter B of title II to read as follows: "PART II—TRAINING, OTHER EMPLOYIAENT SERVICES A N D ALLOWANCES";

(5) by repealing the following: "PART ni—JOB SEARCH A N D RELOCATION ALLOWANCES";

(6) by amending section 239 by striking out "who apply for 19 USC 23ii. payments under this chapter" in subsection (a); (7) by striking out "Recovery" in the reference to section 243 and inserting in lieu thereof "Fraud and recovery"; (8) by amending the reference to section 245 to read as follows: "Sec. 245. Authorization of appropriations.";

and (9) by striking out the reference to section 246. EFFECTIVE DATES AND TRANSITIONAL PROVISIONS

SEC. 2514. (a)(l) Except as provided in paragraph (2), this subtitle shall take effect on the date of the enactment of this Act. (2)(A) The amendments made by section 2501 shall apply with respect to all petitions for certification filed under section 2^1 of the Trade Act of 1974 on or after the 180th day after the date of the enactment of this Act. (B) The amendments made by sections 2503, 2504, 2505, and 2511 shall apply with respect to trade readjustment allowances p»rable for weeks of unemployment which b^in after September 30, 1981. (C) The amendments made by sections 2506, 2507, and 2508 shall take effect with respect to determinations r^arding training and applications for allowances under sections 236, 237, and 238 of the "n^de Act of 1974 that are made or filed after September 30, 1981. (DKi) Except as otherwise provided in clause (ii), the provisions of sections 233(d) and 236(a)(2) of the Trade Act of 1974 (as amended by this Act), and the provisions of section 204(a)(2)(C) of the FederalState Extended Unemployment Compensation Act of 1970 (as added by this Act) shall apply to State unemployment compensation laws for purposes of certifications under section 3304(c) of the Internal Revenue Code of 1954 on October 31, of any taxable year after 1981.

19 USC 2291 "° ® 19 USC 2271.

Ante, pp. 883, ^^ ^ Ante, p. 884. 26 USC 3304.

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Page:United States Statutes at Large Volume 95.djvu/916

 95 STAT. 890

19 USC 2291 "°*® 19 USC 2271.

Ante, p. 883.

19 USC 2292.

PUBLIC LAW 97-35—AUG. 13, 1981 (ii) In the case of any State the legislature of which— (I) does not meet in a session which begins after the date of the enactment of this Act and prior to September 1, 1982, and (II) if in session on the date of the e n a c t m e n t of this Act, does not r e m a i n in session for a period of a t least 25 calendar days, the date "1981" in clause (i) shall be deemed to be "1982". (b) A n adversely affected worker w h o is receiving or is entitled to receive payments of trade readjustment allowances under chapter 2 of the Trade Act of 1974 for weeks of unemployment beginning before October 1, 1981, shall be entitled to receive— (1) with respect to weeks of unemployment beginning before October 1, 1981, payments of trade readjustment allowances determined under such chapter 2 without regard to the amendments made by this subtitle; and (2) with respect to weeks of unemployment beginning after September 30, 1981, payments of trade readjustment allowances as determined under such chapter 2 as amended by this subtitle, except that the maximum amount of trade readjustment allowances payable to such an individual for such weeks of unemployment shall be an amount equal to the product of the trade readjustment allowance payable to the individual for a week of total unemployment (as determined under section 232(a) as so amended) multiplied by a factor determined by subtracting from fifty-two the sum of^ (A) the number of weeks preceding the first week which begins after September 30, 1981, and which are within the period covered by the same certification under such chapter 2 as such week of unemployment, for which the individual was entitled to a trade readjustment allowance or unemployment insurance, or would have been entitled to such allowance or unemployment insurance if he had applied therefor, and (B) the number of weeks preceding such first week that are deductible under section 232(d) (as in effect before the amendments made by section 2504); except that the amount of trade readjustment allowances payable to an adversely affected worker under this paragraph shall be subject to adjustment on a week-to-week basis as may be required by section 232(b).

Subtitle B—Adjustment Assistance for Firms TECHNICAL ASSISTANCE

SEC. 2521. Section 253 of the Trade Act of 1974 (19 U.S.C. 2343) is amended to read as follows: "SEC. 253. TECHNICAL ASSISTANCE.

19 USC 2341.

"(a) The Secretary may provide a firm, on terms and conditions as the Secretary determines to be appropriate, with such technical assistance as in his judgment will carry out the purposes of this chapter with respect to the firm. The technical assistance furnished under this chapter may consist of one or more of the following: "(1) Assistance to a firm in preparing its petition for certification of eligibility under section 251 of this chapter. "(2) Assistance to a certified firm in developing a proposal for its economic adjustment.

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Page:United States Statutes at Large Volume 95.djvu/917

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 891

"(8) Assistance to a certified firm in the implementation of such a proposal. "(b)(1) The Secretary shall furnish technical assistance under this chapter through existing agencies and through private individuals, firms, or institutions (including private consulting services), or by grants to intermediary organizations (including Trade Adjustment Assistance Centers). "(2) In the case of assistance furnished through private individuals, firms, or institutions (including private consulting services), the Secretary may share the cost thereof (but not more than 75 percent of such cost may be borne by the United States). "(3) The Secretary may make grants to intermediary organizations in order to defray up to 100 percent of administrative expenses incurred in providing such technical assistance to a firm.". LIMITATION ON PROVISION OF DIRECT LOANS

SEC. 2522. Section 254(c) of the Trade Act of 1974 (19 U.S.C. 2344(c)) is amended to read as follows: "(c) No direct loan may be provided to a firm under this chapter if the firm can obtain loan funds from private sources (with or without a guarantee) at a rate no higher than the maximum interest per annum that a participating financial institution may establish on guaranteed loans made pursuant to section 7(a) of the Small Business Act.". Ante, p. 767. CONDITIONS FOR FINANCIAL ASSISTANCE

SEC. 2523. Section 255 of the Trade Act of 1974 (19 U.S.C. 2345) is amended— (1) by amending subsection (b) to read as follows: "(b)(1) The rate of interest on direct loans made under this chapter shall be— "(A) a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods of maturity that are comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 percent, plus "(B) an amount adequate in the judgment of the Secretary of Commerce to cover administrative costs and probable losses under the program. "(2) The Secretary may not guarantee any loan under this chapter if— "(A) the rate of interest on either the portion to be guaranteed, or the portion not to be guaranteed, is determined by the Secretary to be excessive when compared with other loans bearing Federal guarantees and subject to similar terms and conditions, and "(B) the interest on the loan is exempt from Federal income taxation under section 103 of the Internal Revenue Code of 1954."; 26 USC 103. (2) by amending subsection (c)— (A) by amending the first sentence to read as follows: "The Secretary shall make no loan or guarantee of a loan under section 254(b)(l) having a maturity in excess of 25 years or the useful life of the fixed assets (whichever period is shorter), including renewals and extensions; and shall make no loan or guarantee of a loan under section 254(b)(2) having

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Page:United States Statutes at Large Volume 95.djvu/918

 95 STAT. 892

PUBLIC LAW 97-35—AUG. 13, 1981 a maturity in excess of 10 years, including extensions and renewals., (B) b3^ amending the second sentence by striking out "limitation" and inserting in lieu thereof "limitations, and (C) by amending p a r a ^ ^ h (2) by inserting "or servicing" immediately after 'liquidation"; (3) by amending subsection (d)— (A) by inserting "(1)" immediately after "(d)"; and (B) by adding at the end thereof the following: "(2) For any direct loan made, or any loan guaranteed, under the authority of this chapter, the Secretary may enter into arrangements for the servicing, including foreclosure, of such loans or evidences of indebtedness on terms which are reasonable and which protect the financial interests of the United States."; and (4) by amending subsection (e) to read as follows: "(e) The following conditions apply with respect to any loan guaranteed under this chapter: "(1) No guarantee may be made for an amount which exceeds 90 percent of the outstanding balance of the unpaid principal and interest on the loan. "(2) The loan may be evidenced by multiple obligations for the guaranteed and nonguaranteed portions of the loan. "(3) The guarantee agreement shall be conclusive evidence of the eligibility of any obligation guaranteed thereunder for such guarantee, and the validity of any guarantee agreement shall be incontestable, except for fraud or misrepresentation by the holder.". AUTHORIZATION OP APPROPRIATIONS

SEC. 2524. Section 256(b) of the Trade Act of 1974 (19 U.S.C. 2346(b)) is amended— (1) by striking out "firms," and inserting in lieu thereof "firms (including, but not limited to, the payment of principal, interest, and reasonable costs incident to default on loans guaranteed by the Secretary under the authority of this chapter),; and (2) by adding at the end thereof the following new sentence: "Direct loans and commitments to guarantee loans may be made under this chapter during any fiscal year only to such extent and in such amounts as are provided in advance in appropriation Acts.". ADMINISTRATION OF FINANCIAL ASSISTANCE

SEC. 2525. Section 257 of the Trade Act of 1974 (19 U.S.C. 2347) is amended by adding at the end thereof the following new subsections: "(d) To the extent the Secretary deems it appropriate, and consistent with the provisions of section 552(b)(4) and section 552b(c)(4) of title 5, United States Code, that portion of any record, material or data received by the Secretary in connection with any application for financial assistance under tms chapter which contams trade secrets or commercial or financial information regarding the operation or competitive jposition of any business shall be deemed to be privileged or confidential within the meaning of those provisions. "(e) Direct loans made, or loans guaranteed, under this chapter for the acquisition or development of real property or other capital assets shall ordinarily be secui^ by a first lien on the assets to be financed and shall be fully amortized. To the extent that the Secretary finds that exceptions to these standards are necessary to achieve the

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Page:United States Statutes at Large Volume 95.djvu/919

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 893

objectives of this chapter, he shall develop appropriate criteria for the protection of the interests of the United States.". REPEAL OF TRANSITIONAL PROVISIONS

SEC. 2526. Section 263 of the Trade Act of 1974 (19 U.S.C. 2353) is repealed. ASSISTANCE TO INDUSTRIES

SEC. 2527. Chapter 3 of title II of the Trade Act of 1974 is amended 19 USC 2355. by adding at the end thereof the following: "SEC. 265. ASSISTANCE TO INDUSTRIES.

"(a) The Secretary may provide technical assistance, on such terms and conditions as the Secretary deems appropriate, for the establishment of industrywide programs for new product development, new process development, export development, or other uses consistent with the purposes of this chapter. Such technical assistance may be provided through existing agencies, private individuals, firms, universities and institutions, and by grants, contracts, or cooperative agreements to associations, unions, or other nonprofit industry organizations in which a substantial number of firms have been certified as eligible to apply for adjustment assistance under section 251. 19 USC 2341. "(b) Expenditures for technical assistance under this section may be up to $2,000,000 annually per industry and shall be made under such terms and conditions as the Secretary deems appropriate.". CONFORMING AMENDMENTS

SEC. 2528. The table of contents of the Trade Act of 1974 is amended— (1) by striking out the reference to section 263; and (2) by inserting after the reference to section 264 the following: "Sec. 265. Assistance to industries.". EFFECTIVE DATE

SEC. 2529. (a) Subject to subsection (b), the amendments made by this subtitle shall take effect on the date of the enactment of this Act. (b) Applications for adjustment assistance under chapter 3 of title II of the Trade Act of 1974 which the Secretary of Commerce accepted for processing before the date of the enactment of this Act shall continue to be processed in accordance with the requirements of such chapter as in effect before such date of enactment.

TITLE XXVI—LOW-INCOME HOME ENERGY ASSISTANCE

19 USC 2343 note.

Low-Income Home Energy Assistance Act of 1981.

SHORT TITLE

SEC. 2601. This title may be cited as the "Low-Income Home Energy Assistance Act of 1981".

42 USC 8621 note.

HOME ENERGY GRANTS AUTHORIZED

SEC. 2602. (a) The Secretary of Health and Human Services is 42 USC 8621. authorized to make grants, in accordance with the provisions of this

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Page:United States Statutes at Large Volume 95.djvu/920

 95 STAT. 894

Appropriation authorization.

PUBLIC LAW 97-35—AUG. 13, 1981 title, to States to assist eligible households to meet the costs of home energy. (b) There is authorized to be appropriated to carry out the purposes of this title $1,875,000,000 for each of the fiscal years 1982, 1983, and 1984. DEFINITIONS

42 USC 8622.

Ante, p. 511.

SEC. 2603. As used in this title: (1) The term "energy crisis intervention" means weatherrelated and supply shortage emergencies. (2)(A) The term "household" means all individuals who occupy a housing unit. (B) For purposes of subparagraph (A), 1 or more rooms shall be treated as a housing unit when occupied as a separate living quarters. (3) The term "home energy" means a source of heating or cooling in residential dwellings. (4) The term "poverty level" means, with respect to a household in any State, the income poverty guidelines for the nonfarm population of the United States as prescribed by the Office of Management and Budget (and as adjusted annually pursuant to section 673(2) of this Act) as applicable to such State. (5) The term "Secretary" means the Secretary of Health and Human Services. (6) The term "State" means each of the several States and the District of Columbia. (7) The term "State median income" means the State median income promulgated by the Secretary in accordance with procedures established under section 2002(a)(6) of the Social Security Act (as such procedures were in effect on the day before the date of the enactment of this Act) and adjusted, in accordance with regulations prescribed by the Secretary, to take into account the number of individuals in the household. STATE ALLOTMENTS

42 USC 8623.

Allotment percentage. Post, p. 902.

SEC. 2604. (a)(1)(A) Except as provided in subparagraph (B), the Secretary shall, from that percentage of the amount appropriated under section 2602(b) for each fiscal year which is remaining after the amount of allotments for such fiscal year under subsection QaW) is determined by the Secretary, allot to each State an amount equal to such remaining percentage multiplied by the State's allotment percentage. (B) From the sums appropriated therefor, if for any period a State has a plan which is described in section 2605(c)(1), the Secretary shall pay to such State an amount equal to 100 percent of the expenditures of such State made during such period in carrying out such plan, including administrative costs (subject to the provisions of section 2605(b)(9)(B)), with respect to households described in section 2605(b)(2). (2)(A) For purposes of paragraph (1), a State's allotment percentage is the percentage which the amount the State was eligible to receive for fiscal year 1981 under the allotment formulas of the Home Energy Assistance Act of 1980 bears to the total amount available for allotment under such formulas. (B) For purposes of subparagraph (A), the allotment formulas of the Home Energy Assistance Act of 1980 shall be treated as including the rules provided by, and the rules referred to in, section 101(j) of the

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Page:United States Statutes at Large Volume 95.djvu/921

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 895

joint resolution entitled "Joint resolution making further continuing appropriations for the fiscal year 1981, and for other purposes', approved December 16, 1980 (Public Law 96-536; 94 Stat. 3168), except that such allotment formulas shall not include the reallotment procedures established in section 260.108 of title 45, Code of Federal Regulations (relating to reallotment of funds under the lowincome energy assistance program). (3) If the sums appropriated for any fiscal year for making grants under this title are not sufficient to pay in full the total amount allocated to a State under paragraph (1) for such fiscal year, the amount which all States will receive under this title for such fiscal year shall be ratably reduced. (b)(1) The Secretary shall apportion not less than one-tenth of 1 Apportionment percent, and not more than one-half of 1 percent, of the amounts percentages. appropriated for each fiscal year to carry out this title on the basis of need among the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. The Secretary shall determine the total amount to be apportioned under this paragraph for any fiscal year (which shall not exceed one-half of 1 percent) after evaluating the extent to which each jurisdiction specified in the preceding sentence requires assistance under this paragraph for the fiscal year involved. (2) Each jurisdiction to which paragraph (1) applies may receive Grants grants under this title upon an application submitted to the Secretary containing provisions which describe the programs for which assistance is sought under this title, and which are consistent with the requirements of section 2605. (c) Of the funds available to each State under subsection (a), a Energy crisis reasonable amount based on data from prior years shall be reserved intervention, reserved funds. by each State for energy crisis intervention. (d)(1) If, with respect to any State, the Secretary— (A) receives a request from the governing organization of an Indian tribe within the State that assistance under this title be made directly to such organization; and (B) determines that the members of such tribe would be better served by means of grants made directly to provide benefits under this title; the Secretary shall reserve from amounts which would otherwise be paid to such State from amounts allotted to it under this title for the fiscal year involved the amount determined under paragraph (2). (2) The amount determined under this paragraph for a fiscal year is the amount which bears the same ratio to the amount which would (but for this subsection) be allotted to such State under this title for such fiscal year (other than by reason of section 2607(b)(2)) as the number of Indian households described in subparagraphs (A) and (B) of section 2605(b)(2) in such State with respect to which a determination under this subsection is made bears to the number of all households described in subparagraphs (A) and (B) of section 2605(b)(2) in such State. (3) The sums reserved by the Secretary on the basis of a determination under this subsection shall be granted to— (A) the tribal organization serving the individuals for whom such a determination has been made; or (B) in any case where there is no tribal organization serving an individual for whom such a determination has been made, such other entity as the Secretary determines has the capacity to provide assistance pursuant to this title.

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Page:United States Statutes at Large Volume 95.djvu/922

 95 STAT. 896 Plan, submittal to Secretary.

Transfer of allotment.

42 USC 1397. Ante, p. 535. 42 USC 701.

PUBLIC LAW 97-35—AUG. 13, 1981 (4) In order for a tribal organization or other entity to be eligible for an amount under this subsection for a fiscal year, it shall submit to the Secretary a plan (in lieu of being under the State's plan) for such fiscal year which meets such criteria as the Secretary may by regulations prescribe. (e) At the option of a State, any portion of such State's allotment under this title may be reserved by the Secretary for the purpose of making direct payments to households described in section 2605(b)(2)(A)(ii) (taking into account the application of section 2605(i)), for low-income energy assistance in accordance with guidelines issued by the Secretary. (f) A State may transfer up to 10 percent of its allotment under this section for any fiscal year for its use for such fiscal year under other provisions of Federal law providing block grants for— (1) support of activities under subtitle B of title VI (relating to community services block grant program); (2) support of activities under title XX of the Social Security Act; or (3) support of preventive health services, alcohol, drug, and mental health services, and primary care under title XIX of the Public Health Service Act, and maternal and child health services under title V of the Social Security Act; or any combination of the activities described in paragraphs (1), (2), and (3). Amounts allotted to a State under any provisions of Federal law referred to in the preceding sentence and transferred by a State for use in carrying out the purposes of this title shall be treated as if they were paid to the State under this title but shall not affect the computation of the State's allotment under this title. The State shall inform the Secretary of any such transfer of funds. APPLICATIONS AND REQUIREMENTS

42 USC 8624.

Hearings.

State agreements.

42 USC 601. 42 USC 608.

SEC. 2605. (a)(1) Each State desiring to receive an allotment for any fiscal year under this title shall submit an application to the Secretary. Each such application shall be in such form as the Secretary shall require. Each such application shall contain assurances by the chief executive officer of the State that the State will meet the conditions enumerated in subsection (b). (2) After the expiration of the first fiscal year for which a State receives funds under this title, no funds shall be allotted to such State for any fiscal year under this title unless such State conducts public hearings with respect to the proposed use and distribution of funds to be provided under this title for such fiscal year. (b) As part of the annual application required by subsection (a), the chief executive officer of each State shall certify that the State agrees to— (1) use the funds available under this title for the purposes described in section 2602(a) and otherwise in accordance with the requirements of this title, and agrees not to use such funds for any payments other than payments specified in this subsection; (2) make payments under this title only with respect to— (A) households in which 1 or more individuals are receiving— (i) aid to families with dependent children under the State's plan approved under part A of title IV of the Social Security Act (other than such aid in the form of foster care in accordance with section 408 of such Act);

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Page:United States Statutes at Large Volume 95.djvu/923

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 897

(ii) supplemental security income payments under title XVI of the Social Security Act; 42 USC 1381. (iii) food stamps under the Food Stamp Act of 1977; or 7 USC 2011 note. (iv) payments under section 415, 521, 541, or 542 of title 38, United States Code, or under section 306 of the Veterans' and Survivors' Pension Improvement Act of 1978; o r

(B) households with incomes which do not exceed the greater of— (i) an amount equal to 150 percent of the poverty level for such State; or (ii) an amount equal to 60 percent of the State median income; (3) conduct outreach activities designed to assure that eligible households, especially households with elderly individuals or handicapped individuals, or both, are made aware of the assistance available under this title, and any similar energy-related assistance available under subtitle B of title VI (relating to community services block grant program) or under any other provision of law which carries out programs which were administered under the Economic Opportunity Act of 1964 before the date of the enactment of this Act; (4) coordinate its activities under this title with similar and related programs administered by the Federal Government and such State, particularly low-income energy-related programs under subtitle B of title VI (relating to community services block grant program), under the supplemental security income program, under part A of title IV of the Social Security Act, under title XX of the Social Security Act, under the low-income weatherization assistance program under title IV of the Energy Conservation and Production Act, or under any other provision of law which carries out programs which were administered under the Economic Opportunity Act of 1964 before the date of the enactment of this Act; (5) provide, in a manner consistent with the efficient and timely payment of benefits, that the highest level of assistance will be furnished to those households which have the lowest incomes and the highest energy costs in relation to income, taking into account family size; (6) to the extent it is necessary to designate local administrative agencies in order to carry out the purposes of this title, give special consideration, in the designation of such agencies, to any local public or private nonprofit agency which was receiving Federal funds under any low-income energy assistance program or weatherization program under the Economic Opportunity Act of 1964 or any other provision of law on the day before the date of the enactment of this Act, except that— (A) the State shall, before giving such special consideration, determine that the agency involved meets progrsun and fiscal requirements established by the State; and (B) if there is no such agency because of any change in the assistance furnished to programs for economically disadvantaged persons, then the State shall give special consideration in the designation of IOCEQ administrative agencies to any successor agency which is operated in substantially the same manner as the predecessor agency which did receive funds for the fiscal jrear preceding the fiscal year for which the determination is made;

38 USC 521 note.

Ante, p. 511. 42 USC 2701 ^°^-

42 USC 601. 42 USC 1397. 42 USC 6851. f ^SC 2701 ^ note.

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Page:United States Statutes at Large Volume 95.djvu/924

 95 STAT. 898

Audit.

Public inspection.

PUBLIC LAW 97-35—AUG. 13, 1981

(7) if the State chooses to pay home energy suppliers directly, establish procedures to— (A) notify each participating household of the amount of assistance paid on its behalf; (B) assure that the home energy supplier will charge the eligible household, in the normal billing process, the difference between the actual cost of the home energy and the amount of the payment made by the State under this title; (C) assure that the home energy supplier will provide assurances that any agreement entered into with a home energy supplier under this paragraph will contain provisions to assure that no household receiving assistance under this title will be treated any differently because of such assistance under applicable provisions of State law or public regulatory requirements; and (D) assure that any home energy supplier receiving direct payments agrees not to discriminate, either in the cost of the goods supplied or the services provided, against the eligible household on whose behalf payments are made; (8) provide assurances that the State will treat owners and renters equitably under the program assisted under this title; (9) provide that— (A) in each fiscal year, the State may use for planning and administering the use of funds available under this title an amount not to exceed 10 percent of its allotment under this title for such fiscal year; and (B) the State will pay from non-Federal sources the remaining costs of planning and administering the program assisted under this title and will not use Federal funds for such remaining costs; (10) provide that such fiscal control and fund accounting procedures will be established as may be necessary to assure the proper disbursal of and accounting for Federal funds paid to the State under this title, including procedures for monitoring the assistance provided under this title, and provide that at least every year the State shall prepare an audit of its expenditures of amounts received under this title and amounts transferred to carry out the purposes of this title; (11) permit and cooperate with Federal investigations undertaken in accordance with section 2608; (12) provide for public participation in the development of the plan described in subsection (c); and (13) provide an opportunity for a fair administrative hearing to individuals whose claims for assistance under the plan described in subsection (c) are denied or are not acted upon with reeisonable promptness. The Secretary may not prescribe the manner in which the States will comply with the provisions of this subsection. (c)(1) As part of the annual application required in subsection (a), the chief executive officer of each State shall prepare and furnish to the Secretary a plan which contains provisions describing how the State will carry out the assurances contained in subsection (b). The chief executive officer may revise any plan prepared under this paragraph and shall furnish the revised plan to the Secretary. (2) Each plan prepared under paragraph (1) shall be made available for public inspection within the State involved in such a manner as will facilitate review of, and comment upon, such plan.

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 PUBLIC LAW 97-35—AUG. 13, 1981 (d) Whenever the Secretary determines that a waiver of any requirement in subsection (b) is necessary to assist in promoting the objectives of this title, the Secretary may waive such requirement to the extent and for the period the Secretary finds necessary to enable the State involved to carry out the program under the plan. (e) Each audit required by subsection (b)(10) shall be conducted by an entity independent of any agency administering activities or services carried out under this title and shall be conducted in accordance with generally accepted accounting principles. Within 30 days after the completion of each audit, the chief executive officer of the State shall submit a copy of such audit to the legislature of the State and to the Secretary. if) Notwithstanding any other provision of law, the amount of any home energy assistance payments or allowances provided to an eligible household under this title shall not be considered income or resources of such household (or any member thereof) for any purpose under any Federal or State law, including any law relating to taxation, food stamps, public assistance, or welfare programs. (g) The State shall repay to the United States amounts found not to have been expended in accordance with this title or the Secretary may offset such amounts against any other amount to which the State is or may become entitled under this title. (h) The Comptroller General of the United States shall, from time to time, evaluate the expenditures by States of grants under this title in order to assure that expenditures are consistent with the provisions of this title and to determine the effectiveness of the State in accomplishing the purposes of this title. (i) A household which is described in subsection (b)(2)(A) solely by reason of clause (ii) thereof shall not be treated as a household described in subsection (b)(2) if the eligibility of the household is dependent upon— (1) an individual whose annual supplemental security income benefit rate is reduced pursuant to section 1611(e)(1) of the Social Security Act by reason of being in an institution receiving payments under title XIX of the Social Security Act with respect to such individual; (2) an individual to whom the reduction specified in section 1612(a)(2)(A)(i) of the Social Security Act applies; or (3) a child described in section 1614(f)(2) of the Social Security Act who is living together with a parent, or the spouse of a parent, of the child. (j) In verifying income eligibility for purposes of subsection (b)(2)(B), the State may apply procedures and policies consistent with procedures and policies used by the State agency administering programs under part A of title IV of the Social Security Act, under title XX of the Social Security Act, under subtitle B of title VI of this Act (relating to community services block grant program), under any other provision of law which carries out programs which were administered under the Economic Opportunity Act of 1964 before the date of the enactment of this Act, or under other income assistance or service programs (as determined by the State). (k) Not more than 15 percent of the greater of— (1) the funds allotted to a State under this title for any fiscal year; or (2) the funds available to such State under this title for such fiscal year; may be used by the State for low-cost residential weatherization or other energy-related home repair for low-income households.

95 STAT. 899 Waiver

Repayment to Keps U.S. Grant expenditures, evaluation.

42 USC 1382. 42 USC 1396. 42 USC 1382a. 42 USC 1382c.

42 USC 601. 42 USC 1397. 42 USC 2701 note.

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Page:United States Statutes at Large Volume 95.djvu/926

 95 STAT. 900

PUBLIC LAW 97-35—AUG. 13, 1981 (1)(1) Any State may use amounts provided under this title for the purpose of providing credits against State tax to energy suppliers who supply home energy at reduced rates to low-income households. (2) Any such credit provided by a State shall not exceed the amount of the loss of revenue to such supplier on account of such reduced rate. (3) Any certification for such tax credits shall be made by the State, but such State may use Federal data available to such State with respect to recipients of supplemental security income benefits if timely delivery of benefits to households described in subsection (b) and suppliers will not be impeded by the use of such data. NONDISCRIMINATION PROVISIONS

42 USC 8625.

42 USC 6101 note. 29 USC 794. Noncompliance.

42 USC 2000d. eivil action.

SEC. 2606. (a) No person shall on the ground of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds made available under this title. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped individual as provided in section 504 of the Rehabilitation Act of 1973 also shall apply to any such program or activity. (b) Whenever the Secretary determines that a State that has received a payment under this title has failed to comply with subsection (a) or an applicable regulation, he shall notify the chief executive officer of the State and shall request him to secure compliance. If within a reasonable period of time, not to exceed 60 days, the chief executive officer fails or refuses to secure compliance, the Secretary is authorized to (1) refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted; (2) exercise the powers and functions provided by title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975, or section 504 of the Rehabilitation Act of 1973, as may be applicable; or (3) take such other action as may be provided by law. (c) When a matter is referred to the Attorney General pursuant to subsection (b), or whenever he has reason to believe that the State is engaged in a pattern or practice in violation of the provisions of this section, the Attorney General may bring a civil action in any appropriate United States district court for such relief as may be appropriate, including injunctive relief. PAYMENTS TO STATES

42 USC 8626. 42 USC 4213. eonditions.

SEC. 2607. (a) From its allotment under section 2604, the Secretary shall make payments to each State in accordance with section 203 of the Intergovernmental Cooperation Act of 1968, for use under this title. (b)(1) If—

(A) the Secretary determines that, as of September 1 of any fiscal year, an amount allotted to a State under section 2604 for any fiscal year will not be used by such State during such fiscal year; (B) the Secretary— (i) notifies the chief executive officer of such State; and (ii) publishes a timely notice in the Federal Register;

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Page:United States Statutes at Large Volume 95.djvu/927

 PUBLIC LAW 97-35—AUG. 13, 1981 that, after the 30-day period beginning on the date of the notice to such chief executive officer, such amount may be reallotted; and (C) the State does not request, under paragraph (2), that such amount be held available for such State for the following fiscal year; then such amount shall be treated by the Secretary for purposes of this title as an amount appropriated for the following fiscal year to be allotted under section 2604 for such following fiscal year. (2)(A) Any State may request that an amount allotted to such State for a fiscal year be held available for such State for the following fiscal year. Any amount so held available for the following fiscal year shall not be taken into account in computing the allotment jof such State for such fiscal year under this title. (B) No amount may be held available under this paragraph for a State from a prior fiscal year to the extent such amount exceeds 25 percent of the amount allotted to such State for such prior fiscal year. For purposes of the preceding sentence, the amount allotted to a State for a fiscal year shall be determined without regard to any amount held available under this paragraph for such State for such fiscal year from the prior fiscal year. (3) During the 30-day period described in paragraph (1)(B), comments may be submitted to the Secretary. After considering such comments, the Secretary shall notify the chief executive officer of the State of any decision to reallot funds, and shall publish such decision in the Federal Register.

95 STAT. 901

Publication in Federal Register.

WITHHOLDING

SEC. 2608. (a)(1) The Secretary shall, after adequate notice and an opportunity for a hearing conducted within the affected State, withhold funds from any State which does not utilize its allotment substantially in accordance with the provisions of this title and the assurances such State provided under section 2605. (2) The Secretary shall respond in an expeditious and speedy manner to complaints of a substantial or serious nature that a State has failed to use funds in accordance with the provisions of this title or the assurances provided by the State under section 2605. For purposes of this paragraph, a violation of any one of the assurances contained in section 2605(b) that constitutes a disregard of such assurance shall be considered a serious complaint. (b)(1) The Secretary shall conduct in several States in each fiscal year investigations of the use of funds received by the States under this title in order to evaluate compliance with the provisions of this title. (2) Whenever the Secretary determines that there is a pattern of complaints from any State in any fiscal year, he shall conduct an investigation of the use of funds received under this title by such State in order to ensure compliance with the provisions of this title. (3) The Comptroller General of the United States may conduct an investigation of the use of funds received under this title by a State in order to ensure compliance with the provisions of this title. (c) Pursuant to an investigation conducted under subsection (b), a State shall make appropriate books, documents, papers, and records available to the Secretary or the Comptroller Gieneral of the United States, or any of their duly authorized representatives, for examination, copying, or mechanical reproduction on or off the premises of the appropriate entity upon a reasonable request therefor.

Notice and hearing. 42 USC 8627.

Records, availability.

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Page:United States Statutes at Large Volume 95.djvu/928

 95 STAT. 902

PUBLIC LAW 97-35—AUG. 13, 1981 (d) In conducting any investigation under subsection (b), the Secretary may not request any information not readily available to such State or require that any information be compiled, collected, or transmitted in any new form not already available. LIMITATION ON USE OF GRANTS FOR CONSTRUCTION

42 USC 8628.

SEC. 2609. Grants made under this title may not be used by the State, or by any other person with which the State makes arrangements to carry out the purposes of this title, for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than low-cost residential weatherization or other energy-related home repairs) of any building or other facility. STUDIES

Data. 42 USC 8629.

Report to Congress.

SEC. 2610. (a) The Secretary, after consultation with the Secretary of Energy, shall provide for the collection of data, including— (1) information concerning home energy consumption; (2) the cost and type of fuels used; (3) the type of fuel used by various income groups; (4) the number and income levels of households assisted by this title; and (5) any other information which the Secretary determines to be reasonably necessary to carry out the provisions of this title. (b) The Secretary shall submit an annual report to the Congress containing a summary of data collected under subsection (a). REPEALER

42 USC 8601 note.

SEC. 2611. Effective October 1, 1981, the Home Energy Assistance Act of 1980 is repealed.

TITLE XXVII—NATIONAL HEALTH SERVICE CORPS; HEALTH PROFESSIONS EDUCATION; NURSE TRAINING REFERENCE

SEC. 2700. Except as otherwise specifically provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other 42 USC 201 note, provision of the Public Health Service Act. CHAPTER 1-NATIONAL HEALTH SERVICE CORPS REVISION AND EXTENSION OF NATIONAL HEALTH SERVICE CORPS

SEC. 2701. (a) Section 331(a)(1) (42 U.S.C. 254d(a)(l)) is amended to read as follows: "(1) shall consist of— "(A) such officers of the Regular and Reserve Corps of the Service as the Secretary may designate, "(B) such civilian employees of the United States as the Secretary may appoint, and "(C) such other individuals who are not employees of the United States,

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Page:United States Statutes at Large Volume 95.djvu/929

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 903

(such officers, employees, and individuals hereinafter in this subpart referred to as 'Corps members'), and". (b) Section 331(b) is amended by striking out "shall" and inserting 42 USC 254d. in lieu thereof "may". (c) The first sentence of section 331(c) is amended by inserting "(including individuals considering entering into a written agreement pursuant to section 338C)" after "positions in the Corps". (d)(1) Section 331(d)(1) is amended by inserting after "each member of the Corps" the following: "(other than a member described in subsection (a)(1)(C))". (2) Section 331(d)(1)(A) is amended by striking out "shall" and inserting in lieu thereof "may". (3) Section 331(d)(1)(B) is amended by striking out "shall" and inserting in lieu thereof "may". (4) Section 331(d) is further amended by adding at the end the following: "(3) A member of the Corps described in subparagraph (C) of subsection (a)(1) shall when assigned to an entity under section 333 be subject to the personnel system of such entity, except that such member shall receive during the period of assignment the income that the member would receive if the member was a member of the Corps described in subparagraph (B) of such subsection.". (e) Section 331(g) is amended to read as follows: "(g)(1) The Secretary shall, by rule, prescribe conversion provisions applicable to any individual who, within a year after completion of service as a member of the Corps described in subsection (a)(1)(C), becomes a commissioned officer in the Regular or Reserve Corps of the Service. "(2) The rules prescribed under paragraph (1) shall provide that in applying the appropriate provisions of this Act which relate to retirement, any individual who becomes such an officer shall be entitled to have credit for any period of service as a member of the Corps described in subsection (a)(1)(C).". (f)(1) Section 331(h)(1) is amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". (2) Section 331(h)(2) is amended by striking out "section 751" and inserting in lieu thereof "section 338A". (3) Section 331(h)(3) is amended by inserting "Commonwealth of the" before "Northern Mariana Islands". DESIGNATION OF HEALTH MANPOWER SHORTAGE AREAS

SEC. 2702. (a) Section 332(a)(1)(A) (42 U.S.C. 254e(a)(l)) is amended by inserting before the comma at the end thereof "and which is not reasonably accessible to an adequately served area". (b) Section 332(h) is amended by striking out "shall" and inserting in lieu thereof "may". (c) Effective October 1, 1981, the Secretary of Health and Human Services shall— (1) evaluate the criteria used under section 332(b) of the Public Health Service Act to determine if the use of the criteria has resulted in areas which do not have a shortage of health professions personnel being designated as health manpower shortage areas; and (2) consider different criteria (including the actual use of health professions personnel in an area by the residents of an area taking into account their health status and indicators of an

-194 O—82

59:QL3

42 USC 254e ^°Criteria, evaluation.

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Page:United States Statutes at Large Volume 95.djvu/930

 95 STAT. 904

Report to Cbngress. 42 USC 254e. Notice.

PUBLIC LAW 97-35—AUG. 13, 1981 unmet demand and the likelihood that such demand would not be met in two years) which may be used to designate health manpower shortage areas. Not later than November 30, 1982, the Secretary shall report to the Congress the results of the activities undertaken under this subsection. (c) Section 332(e) is amended by inserting "(1)" before "Prior" and by adding at the end thereof the following: "(2) Prior to the designation of a health manpower shortage area under this section, the Secretary shall, to the extent practicable, give written notice of the proposed designation of such area to appropriate public or private nonprofit entities which are located or have a demonstrated interest in such area and request comments from such entities with respect to the proposed designation of such area.". ASSIGNMENT OF CORPS PERSONNEL

Health manpower shortage area, assignment.

SEC. 2703. (a) Section 333(a)(1)(D) (42 U.S.C. 254f[a)(l)(D)) is amended— (1) by striking out beginning with "in the case o f through "which has expired,"; (2) by striking out "continued need" in clause (i) and inserting in lieu thereof need and demand"; (3) by inserting "intended" before "use of Corps members" in clause (i); (4) by striking out "previously" before "assigned to the area" in clause (i) and inserting in lieu thereof "to be"; (5) by striking out "fiscal management by the entity with respect to Corps members previously assigned" in clause (i) and, inserting in lieu thereof "the fiscal management capability of the nj- entity to which Corps members would be assigned"; (6) by striking out "continued need" in clause (iiXD and inserting in lieu thereof "need and demand"; (7) by striking out "has been" in clause (iiXII) and inserting in lieu thereof "will be": (8) by striking out previously" in clause (ii)(II); (9) by striking out continued" in clause (ii)(IV) and inserting in lieu thereof'Unsuccessful"; (10) by striking out "has been" in clause (ii)(V) and inserting in lieu thereof "is a reasonable prospect of; and (11) by striking out "previously in clause (ii)(V). (b)(1) Paragraph (1) of subsection (a) of section 333 is amended by adding after and below subparagraph (D) the following: "An application for sissignment of a Corps member to a health manpower shortage area shall include a demonstration by the applicant that the area or population group to be served by the applicant has a shortage of personal health services and that the Corps member will be located so that the member will provide services to the greatest number of ersons residing in such area or included in such population group, uch a demonstration shall be made on the basis of the criteria prescribed by the Secretary under section 332(b) and on additional criteria which the Secretary shall prescribe to determine if the area or population group to be served by the applicant has a shortage of personal health services.". (2) Subsection (a) of section 333 is amended by adding at the end the following: "(3) In approving applications for assignment of members of the Corps the Secretary shall not discriminate against applications from

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Page:United States Statutes at Large Volume 95.djvu/931

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 905

entities which are not receiving Federal financial assistance under this Act". (c) Section 333(c) is amended by striking out paragraph (2) and by 42 USC 254f. redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively. (d) Effective October 1, 1981, section 333 is amended by redesignating subsections (d) through (h) as subsections (e) through (i), respectively, and by adding after subsection (c) the following new subsection: "(d)(1) The Secretary may not approve an application for the Assignment assignment of a member of the Corps described in subparagraph (C) of approval. section 331(a)(l) to an entity unless the application of the entity Ante, p. 902. contains assurances satisfactory to the Secretary that the entity (A) has sufficient financial resources to provide the member of the Corps with an income of not less than the income to which the member would be entitled if the member was a member described in subparagraph (B) of section 331(a)(l), or (B) would have such financial resources if a grant was made to the entity under paragraph (2). "(2)(A) If in approving an application of an entity for the assign- Grants. ment of a member of the Corps described in subparagraph (C) of section 331(a)(1) the Secretary determines that the entity does not have sufficient financial resources to provide the member of the Corps with an income of not less than the income to which the member would be entitled if the member was a member described in subparagraph (B) of section 331(a)(1), the Secretary may make a grant to the entity to assure that the member of the Corps assigned to it will receive during the period of assignment to the entity such an income. "(B) The amount of any grant under subparagraph (A) shall be Amount. determined by the Secretary. Payments under such a grant may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Secretary finds necessary. No grant may be made unless an application therefor is submitted to and approved by the Secretary. Such an application shall be in such form, submitted in such manner, and contain such information, as the Secretary shall by regulation prescribe.". (e)(1) Section 333(g)(l) (as redesignated by subsection (d) of this section) is amended (A) by striking out "shall" and inserting in lieu thereof "may"; (B) by striking out "or have a demonstrated interest"; and (C) by adding at the end thereof the following: "Assistance provided under this paragraph may include assistance to an entity in (A) analyzing the potentisd use of health professions personnel in defined health services delivery areas by the residents of such areas, (B) determining the need for such personnel in such areas, (C) determining the extent to which such areas will have a financial base to support the practice of such personnel and the extent to which additional financial resources are needed to adequately support the practice, and (D) determining the types of inpatient and other health services that should be provided by such personnel in such areas.". (2) Section 333(g)(2) (as redesignated by subsection (d) of this section) is amended by striking out "shall" and inserting in lieu thereof "may" and by striking out "or have a demonstrated interest". (3) Section 333(g)(3) (as redesignated by subsection (d) of this section) is amended by striking out "shall" and inserting in lieu thereof "may". (4) Section 333(g) (as redesignated by subsection (d) of this section) is further amended by adding at the end the following:

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Page:United States Statutes at Large Volume 95.djvu/932

 95 STAT. 906

Agreements with qualified entities.

"Qualified entity."

42 USC 254f.

PUBLIC LAW 97-35—AUG. 13, 1981 "(4)(A) The Secretary shall undertake to demonstrate the improvements that can be made in the assignment of members of the Corps to health manpower shortage areas and in the delivery of health care by Corps members in such areas through coordination with States, political subdivisions of States, agencies of States and political subdivisions, and other public and nonprofit private entities which have expertise in the planning, development, and operation of centers for the delivery of primary health care. In carrying out this subparagraph, the Secretary shall enter into agreements with qualified entities which provide that if^ "(i) the entity places in effect a program for the planning, development, and operation of centers for the delivery of primary health care in health manpower shortage areas which reasonably addresses the need for such care in such areas, and "(ii) under the program the entity will perform the functions described in subparagraph (B), the Secretary will assign under this section members of the Corps in accordance with the program. "(B) For purposes of subparagraph (A), the term 'qualified entity' means a State, political subdivision of a State, an agency of a State or political subdivision, or other public or nonprofit private entity operating solely within one State, which the Secretary determines is able— "(i) to analyze the potential use of health professions personnel in defined health services delivery areas by the residents of such areas; "(ii) to determine the need for such personnel in such areas and to recruit, select, and retain health professions personnel (including members of the National Health Service Corps) to meet such need; "(iii) to determine the extent to which such areas will have a financial base to support the practice of such personnel and the extent to which additional financial resources are needed to adequately support the practice; "(iv) to determine the types of inpatient and other health services that should be provided by such personnel in such areas; "(v) to assist such personnel in the development of their clinical practice and fee schedules and in the management of their practice; "(vi) to assist in the planning and development of facilities for the delivery of primary health care; and "(vii) to assist in establishing the governing bodies of centers for the delivery of such care and to assist such bodies in defining and carrying out their responsibilities.". (f) Section 333(h) (as redesignated by subsection (d) of this section) is amended by striking out "shall" and inserting in lieu thereof "may". (g) Section 333(i) (as redesignated by subsection (d) of this section) is amended by striking out "or dentistry" and inserting in lieu thereof "dentistry, or any other health profession". COST SHARING

SEC. 2704. (a)(1) Section 334(a) (42 U.S.C. 254g(a)) is amended by inserting "for the assignment of a member of the Corps" after "section 333". (2) Subparagraphs (A) and (B) of section 334(a)(3) are amended to read as follows:

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Page:United States Statutes at Large Volume 95.djvu/933

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 907

"(A) an amount calculated by the Secretary to reflect the average salary (including amounts paid in accordance with section 331(d)) and allowances of comparable Corps members for a calendar quarter (or other period); "(B) that portion of an amount calculated by the Secretary to reflect the average amount paid under the Scholarship Program to or on behalf of comparable Corps members that bears the same ratio to the calculated amount as the number of days of service provided by the member during that quarter (or other period) bears to the number of days in his period of obligated service under the Program* and". (3) Section 334(a)(3)(C) is amended (A) by inserting "or a grant under section 333(d)(2)" after "section 335(c)', and (B) by inserting "or grant" after "such loan" each time it occurs. (4) Section 334(b) is amended by adding at the end the following: "(4) In determining whether to grant a waiver under paragraph (1) or (2), the Secretary shall not discriminate against a public entity.". (b) Section 334(e) is amended by striking out "this subpart" and inserting in lieu thereof "sections 331 through 335 and section 337".

Average salary and allowances. 42 USC 254d.

42 USC 254g.

PROVISION OF HEALTH SERVICES BY CORPS MEMBERS

SEC. 2705. (a) Clause (2) of section 335(a) (42 U.S.C. 254h(a)) is amended to read as follows: "(2) in a manner which is cooperative with other health care providers serving such health manpower shortage area.". (b) The first sentence of section 335(c) is amended— (1) by inserting "and" before "(3)"; and (2) by striking out "; and (4) establishing appropriate continuing education programs". PREPARATION FOR PRACTICE

SEC. 2706. (a) Section 336 (42 U.S.C. 254i) is redesignated as section 336A. (b) Subpart II of part D of title III is amended by inserting after section 335 (42 U.S.C. 254h) the following new section: PREPARATION FOR PRACTICE

"SEC. 336. (a) The Secretary may make grants to and enter into 42 USC 254h-l. contracts with public and private nonprofit entities for the conduct of programs which are designed to prepare individuals subject to a service obligation under the National Health Service Corps scholarship program to effectively provide health services in the health manpower shortage area to which they are assigned. "(b) No grant may be made or contract entered into under subsection (a) unless an application therefor is submitted to and approved by the Secretary. Such an application shall be in such form, submitted in such manner, and contain such information, as the Secretary shall by regulation prescribe.". NATIONAL ADVISORY COUNCIL

SEC. 2707. (a) Section 337(a) (42 U.S.C. 254j) is amended to read as follows: "(a) There is established a council to be known as the National Advisory Council on the National Health Service Corps (hereinafter in this section referred to as the 'Council'). The Council shall be

Establishment. Membership.

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Page:United States Statutes at Large Volume 95.djvu/934

 95 STAT. 908 Consultation with Secretary, 42 USC 254j.

PUBLIC LAW 97-35—AUG. 13, 1981 composed of not more than 15 members appointed by the Secretary. The Council shall consult with, advise, and make recommendations to, the Secretary with respect to his responsibilities in carrying out this subpart, and shall review and comment upon regulations promulgated by the Secretary under this subpart.". (b) The last sentence of section 337(b)(l) is amended by inserting "not" before "be reappointed". AUTHORIZATION OF APPROPRIATIONS

SEC. 2708. (a) Section 338(a) (42 U.S.C. 254k) is amended— (1) by striking out "and" after "1979;"; and (2) by inserting before the period a semicolon and the following: "$110,000,000 for the fiscal year ending September 30, 1982; ^.. $120,000,000 for the fiscal year ending September 30, 1983; and '^ $130,000,000 for the fiscal year ending September 30, 1984". (b) Section 338(b) is amended by striking out "this subpart" and inserting in lieu thereof "sections 331 through 335, section 336A, and section 337". NATIONAL HEALTH SERVICE CORPS SCHOLARSHIP PROGRAM

^LV^9. 254Z-254r. 42 USC 254/.

SEC. 2709. (a) Sections 751,752,753,754,755,756, and 757 (42 U.S.C. 294t-294y-l) are redesignated as sections 338A, 338B, 338C, 338D, 338E, 338F, and 338G, respectively. (b)(1) Section 338A(a) (as redesignated by subsection (a) of this section) is amended by inserting "clinical psychologists," after "pharmacists,". (2) Section 338A(c)(l) (as redesignated by subsection (a) of this section) is amended by striking out section 754" and inserting in lieu thereof "section 338D". (3) Section 338A(c)(2) (as redesignated by subsection (a) of this subsection) is amended by inserting "information respecting meeting a service obligation through private practice under an agreement under section 338C and" after "(2)". (4) Section 338A(fKlXAXii) (as redesignated by subsection (a) of this section) is amended by striking out "subpart II of part D of title III" and inserting in lieu thereof "sections 331 through 335 and section 337". (5) Section 338A(f)(2) (as redesignated by subsection (a) of this section) is amended by striking out "subpart II of part D of title III" and inserting in lieu thereof 'Sections 331 through 335 and sections 337 and 338". (6) Section 338A(f)(3) (as redesignated by subsection (a) of this section) is amended by striking out section 754" and inserting in lieu thereof "section 338D". (7) Subsection (j) of section 338A (as redesignated by subsection (a) o f t i l l s SGCtion) IS rfiDGS-lGQ

42 USC 254m.

(c)(l) Section 338B(a) (as redesignated by subsection (a) of this section) is amended— (A) by striking out "section 753" and inserting in lieu thereof "section 338C"; and (B) by striking out "section 751" and inserting in lieu thereof "section 338A". (2) Paragraphs (1) through (4) of section 338B0t)) (as redesignated by subsection (a) of this section) are amended to read as follows: "(b)(1) If an individual is required under subsection (a) to provide service as specified in section 338A(f)(l)(B)(iv) (hereinaifter in this

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Page:United States Statutes at Large Volume 95.djvu/935

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 909

subsection referred to as 'obligated service'), the Secretary shall, not later than ninety days before the date described in paragraph (5), determine if the individual shall provide such service— "(A) as a member of the Corps who is a commissioned officer in the Regular or Reserve Corps of the Service or who is a civilian employee of the United States, or (B) as a member of the Corps who is not such an officer or employee, and shall notify such individual of such determination. "(2) If the ^ c r e t a r y determines that an individual shall provide Obligated obligated service as a member of the Corps who is a commissioned service, officer in the Service or a civilian employee of the United States, the eligibility. Secretary shall, not later than sixty days before the date described in paragraph (5), provide such individual with sufficient information regarding the advantages and disadvantages of service as such a commissioned officer or civilian employee to enable the individual to make a decision on an informed basis. To be eligible to provide obligated service as a commissioned officer in the Service, an individual shall notify the Secretary, not later than thirty days before the date described in paragraph (5), of the individual's desire to provide such service as such an officer. If an individual qualifies for an appointment as such an officer, the Secretary shall, as soon as possible after the date described in paragraph (5), appoint the individual as a commissioned officer of the Regular or Reserve Corps of the Service and shall designate the individual as a member of the Corps. "(3) If an individual provided notice by the Secretary under Civilian paragraph (2) does not qualify for appointment as a commissioned employee, officer in the Service, the Secretary shall, as soon as possible after the designation. date described in paragraph (5), appoint such individual as a civilian employee of the United States and designate the individual as a member of the Corps. "(4) If the Secretary determines that an individual shall provide obligated service as a member of the Corps who is not an employee of the United States, the Secretary shall, as soon as possible after the date described in paragraph (5), designate such individual as a member of the Corps to provide such service.". (3) Section 338B(c)(l) (as redesignated by subsection (a) of this 42 USC 254m. section) is amended by striking out "or as a member of the Corps" and inserting in lieu thereof "or is designated as a member of the Corps under subsection (b)(3) or (b)(4)". (4) Section 338B(c)(2) (as redesignated by subsection (a) of this section) is amended by striking out section 753" and inserting in lieu thereof "section 338C''. (5)(A) The first sentence of section 338B(d) (as redesignated by suljsection (a) of this section) is amended by striking out "subpart II of part D of title III" and inserting in lieu thereof "sections 331 through 335 and sections 337 and 338". (B) The second sentence of such section is amended by inserting after "written contract" the following: "and if such individual is an officer in the Service or a civilian employee of the United States". (6) Section 338B(e) (as redesignated by subsection (a) of this section) is amended to read as follows: "(e) Notwithstanding any other provision of this title, service of an individual under a National Research Service Award awarded under subparagraph (A) or (B) of section 472(a)(l) shall be counted against 42 USC 289M. the period of obligated service which the individual is required to perform under the Scholarship Program.".

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Page:United States Statutes at Large Volume 95.djvu/936

 95 STAT. 910 42 USC 254n.

42 USC 1395n. 42 USC 1395J. 42 USC 1396.

Breach of contract.

U.S. equipment and other property, sale.

PUBLIC LAW 97-35—AUG. 13, 1981 (d)(1) Section 338C(a) (as redesignated by subsection (a) of this section) is amended— (A) by inserting a comma and "to the extent permitted by, and consistent with, the requirements of applicable State law, after "shall"; (B) by striking out "section 752(a)" and inserting in lieu thereof "section 338B(a) or under section 225 (as in effect on September 30, 1977); and (C) by striking out "which has a priority for the assignment of Corps members under section 333(c)" in paragraph (2). (2) Section 338C(b)(l)(B) (as redesignated by subsection (a) of this subsection) is amended (A) by inserting "(i)" oefore "shall not", and (B) by inserting before the semicolon a comma and the following: "and (ii) shall agree to accept an assignment under section 18420t>)(3)(B)(ii) of such Act for all services for which payment may be made under part B of title XVIII of such Act and enter into an appropriate agreement with the State agency which administers the State plan for medical assistance under title XIX of such Act to provide services to individuals entitled to medical assistance under the plan". (3) Section 338C (as redesignated by subsection (a) of this section) is further amended by adding at the end thereof the following new subsections: "(c) If an individual breaches the contract entered into under section 338A by failing (for any reason) to begin his service obligation in accordance with an agreement entered into under subsection (a) or to complete such service obligation, the Secretary may permit such individual to perform such service obligation as a member of the Corps. "(d) The Secretary may pay an individual who has entered into an agreement with the Secretary under subsection (a) an amount to cover all or part of the individual's expenses reasonably incurred in transporting himself, his family, and his possessions to the location of his private clinical practice. "(e)(1) The Secretary may make such arrangements as he determines are necessary for the individual for the use of equipment and supplies and for the lease or acquisition of other equipment and supplies. (2) Upon the expiration of the written agreement under subsection (a), the Secretary may (notwithstanding any other provision of law) sell to the individual who has entered into an agreement with the Secretary under subsection (a), equipment and other property of the United States utilized by such individual in providing health services. Sales made under this subsection shall be made at the fair market value (as determined by the Secretary) of the equipment or such other property, except that the Secretary may make such sales for a lesser value to the individual if he determines that the individual is financially unable to pay the full market value. "(f) The Secretary may, out of appropriations authorized under section 338, pay to individuals participating in private practice under this section the cost of such individual's malpractice insurance and "(1)(A) $10,000 in the first year of obligated service; "(B) $7,500 in the second year of obligated service; "(C) $5,000 in the third year of obligated service; and "(D) $2,500 in the fourth year of obligated service; or "(2) an amount determined by subtracting such individual's net income before taxes from the income the individual would

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Page:United States Statutes at Large Volume 95.djvu/937

 PUBLIC LAW 97-35—AUG. 13, 1981 have received as a member of the Corps for each such year of obligated service. "(g) The Secretary shall, upon request, provide to each individual released from service obligation under this section technical assistance to assist such individual in fulfilling his or her agreement under this section.". (e)(1) Section 338D (as redesignated by subsection (a) of this section) is amended by striking out subsection (a) and redesignating subsections (b), (c), and (d) as subsections (a), (b), and (c), respectively. (2) Section 338D(a) (as redesignated by subsection (a) of this section and paragraph (1) of this subsection) is amended— (A) by striking out "section 751" and inserting in lieu thereof "section 338A"; (B) by striking out "or" at the end of paragraph (2); (C) by inserting "or" at the end of paragraph (3); and (D) by inserting after paragraph (3) the following new paragraph: "(4) fails to accept payment, or instructs the educational institution in which he is enrolled not to accept payment, in whole or in part, of a scholarship under such contract,". (3) Section 338D(b) (as redesignated by subsection (a) of this section and paragraph (1) of this subsection) is amended— (A) by striking out "(c) I f in the first sentence and inserting in lieu thereof "(b)(1) Except as provided in paragraph (2), if; (B) by striking out "(for any reason)" in the first sentence and inserting in lieu thereof "(for any reason not specified in subsection (a) or section 338F(b))"; (C) by striking out "section 752 or 753" in the first sentence and inserting in lieu thereof "section 338B or 338C"; (D) by striking out "section 752" in the first sentence and inserting in lieu thereof "section 338B"; (E) by striking out "section 753" in the first sentence and inserting in lieu thereof "section 338C"; (F) by inserting in the second sentence "(or such longer period beginning on such date as specified by the Secretary for good cause shown)" after "written contract"; and (G) by adding at the end the following: "(2) If an individual is released under section 753 from a service obligation under section 225 (as in effect on September 30, 1977) and if the individual does not meet the service obligation incurred under section 753, subsection (f) of such section 225 shall apply to such individual in lieu of paragraph (1) of this subsection.". (4)(A) Section 338D(c)(2) (as redesignated by subsection (a) of this section and paragraph (1) of this subsection) is amended by inserting "partial or total" before "waiver". (B) Section 735(c)(l) (42 U.S.C. 294h(c)(l)) is amended— "(i) by striking out "clauses (A) and (B) of; and "(ii) by striking out "section 753" each place it appears and inserting in lieu thereof "section 338C". (f)(1) The section heading for section 338E (as redesignated by subsection (a) of this section) is amended by striking out "grants" and inserting in lieu thereof "loans". (2) Section 338E(a) (as redesignated by subsection (a) of this section) is amended— (A) by inserting a comma and "out of appropriations authorized under section 338," after "The Secretary may"; (B) by inserting "or one loan" after "grant";

95 STAT. 911

Technical assistance. 42 USC 254o.

Ante, p. 908. 42 USC 234.

42 USC 254p.

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