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Page:United States Statutes at Large Volume 95.djvu/549

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 523

children not eligible for free or reduced-price meals, as appropriate, as prescribed in clause (B) of this paragraph. "(B) The national average payment for each free breakfast shall be 57 cents (as adjusted pursuant to section 11(a) of the National School Lunch Act), The national average payment for each reduced-price Ante, p. 522. breakfast shall be one-half of the national average payment for each free breakfast, adjusted to the nearest one-fourth cent, except that in no case shall the difference between the amount of the national average payment for a free breaWast and the national average payment for a reduced-price breakfast exceed 30 cents. The national average payment for each breakfast served to a child not eligible for free or reduced-price meals shall be 8.25 cents (as adjusted pursuant to section 11(a) of the National School Lunch Act). "(C) No school which receives breakfast assistance pa5mients under this section may charge a price of more than 30 cents for a reducedprice breakfast. "(D) No breakfast assistance payment may be made under this subsection for any breakfast served by a school unless such breakfast consists of a combination of foods which meet the minimum nutritional requirements prescribed by the Secretary under subsection (e) of this section.". (2) Section 4(b)(2) of the Child Nutrition Act of 1966 is amended— Ante, p. 522. (A) in clause (B)(ii)— (i) by striking out "on a semiannual basis each July 1 and January 1" and inserting in lieu thereof "on an annual basis each July 1"; and (ii) by striking out "six-month" and inserting in lieu thereof "twelve-month"; and (B) in clause (C), by striking out "five" and inserting in lieu thereof "thirty". (3)(A) Section 4(d) of the Child Nutrition Act of 1966 is amended to 42 USC 1773. read as follows: "(d)(1) Each State educational agency shall provide additional assistance to schools in severe need, which shall include only— "(A) those schools in which the service of breakfasts is required pursuant to State law; and "(B) those schools (having a breakfast program or desiring to initiate a breakfast program) in which, during the most recent second preceding school year for which lunches were served, 40 percent or more of the lunches served to students at the school were served free or at a reduced-price, and in which the rate per meal established by the Secretary is insufficient to cover the costs of the breakfast program. The provision of eligibility specified in clause (A) of this paragraph shall terminate effective July 1, 1983, for schools in States where the State legislatures meet annually and shall terminate effective July 1, 1984, for schools in States where the State legislatures meet biennially. "(2) A school, upon the submission of appropriate documentation about the need circumstances in that school and the school's eligibility for additional assistance, shall be entitled to receive 100 percent of the operating costs of the breakfast program, including the costs of obtaining, preparing, and serving food, or the meal reimbursement rate specified in paragraph (2) of section 4(b) of this Act, whichever is less.".

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Page:United States Statutes at Large Volume 95.djvu/550

 95 STAT. 524

PUBLIC LAW 97-35—AUG. 13, 1981 REDUCTION IN COMMODITY ASSISTANCE FOR LUNCHES

42 USC 1755.

SEC. 802. The first sentence of section 6(e) of the National School Lunch Act is amended to read as follows: "The national average value of donated foods, or cash payments in lieu thereof, shall be 11 cents, adjusted on July 1, 1982, and each July 1 thereafter to reflect changes in the Price Index for Food Used in Schools and Institutions.". REVISION OF INCOME ELIGIBILITY GUIDEUNES

42 USC 1758.

SEC. 803. (a) Section 9(b) of the National School Lunch Act is amended— (1) by amending paragraph (1) to read as follows: "(I)(A) Not later than June 1 of each fiscal year, the Secretary shall prescribe income guidelines for determining eligibility for free and reduced-price lunches during the 12-month period beginning July 1 of such fiscal year and ending June 30 of the following flscal year. For the school years ending June 30, 1982, and June 30, 1983, the income guidelines for determining eligibility for free lunches shall be 130 percent of the applicable family-size income levels contained in the nonfarm income poverty guidelines prescribed by the Office of Management and Budget, as adjusted annually in accordance with subparagraph (B). Beginning July 1, 1983, the income guidelines for determining eligibilit)^ for free lunches for any school year shall be the same as the gross income eligibility standards announced by the Secretary for any such period for eligibility for participation in the 7 USC 2011 note, food Stamp program under the Food Stamp Act of 1977. The income guidelines for determining eligibility for reduced-price lunches for any school year shall be 185 percent of the applicable family-size income levels contained in the nonfarm income poverty guidelines prescribed by the Office of Management and Budget, as adjusted annually in accordance with subparagraph (B). The Office of Management and Budget guidelines shall be revised at annual intervals, or at any shorter interval deemed feasible and desirable. "(B) The revision required by subparagraph (A) of this paragraph shall be made by multiplying— "(i) the official poverty line (as defined by the Office of Management and Budget); by "(ii) the percentage change in the Consumer Price Index during the annual or other interval immediately preceding the time at which the adjustment is made. Revisions under this subparagraph shall be made not more than 30 days after the date on which the consumer price index data required to compute the adjustment becomes available."; (2) by redesignating paragraph (2) (and any references thereto) as paragraph (5) and by inserting after paragraph (1) the following new paragraphs: "(2)(A) Following the determination by the Secretary under paragraph (1) of this subsection of the income eligibility guidelines for each school year, each State educational agency shall announce the income eligibility guidelines, by family-size, to be used by schools in the State in making determinations of eligibility for free and reducedprice lunches. Local school authorities shall, each year, publicly announce the income eligibility guidelines for free and reduced-price lunches on or before the opening of school. "(B) Applications for free and reduced-price lunches, in such form as the Secretary may prescribe or approve, and any descriptive material, shall be distributed to the parents or guardians of children

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Page:United States Statutes at Large Volume 95.djvu/551

 PUBLIC LAW 97-35—AUG. 13, 1981 in attendance at the school, and shall contain only the family-size income levels for reduced-price meal eligibility with the explanation that households with incomes less than or equal to these values would be eligible for free or reduced-price lunches. Such forms and descriptive material may not contain the income eligibility guidelines for free lunches. "(C) Eligibility determinations shall be made on the basis of a complete application executed by an adult member of the household. The Secretary, States, and local school food authorities may seek verification of the data contained in the application. Local school food authorities shall undertake such verification of the information contained in these applications as the Secretary may by regulation prescribe and, in accordance with such regulations, make appropriate changes in the eligibility determinations on the basis of such verification. "(3) Any child who is a member of a household whose income, at the time the application is submitted, is at an annual rate which does not exceed the applicable family-size income level of the income eligibility guidelines for free lunches, as determined under paragraph (1), shall be served a free lunch. Any child who is a member of a household whose income, at the time the application is submitted, is at an annual rate greater than the applicable family-size income level of the income eligibility guidelines for free lunches, as determined under paragraph (1), but less than or equal to the applicable familysize income level of the income eligibility guidelines for reduced-price lunches, as determined under paragraph (1), shall be served a reduced-price lunch. The price charged for a reduced-price lunch shall not exceed 40 cents. "(4) No physical segregation of or other discrimination against any child eligible for a free lunch or a reduced-price lunch under this subsection shall be made by the school nor shall there by any overt identification of any child by special tokens or tickets, announced or published lists of names, or by other means."; and (3) in the second sentence of paragraph (5), as so redesignated by paragraph (2) of this subsection, by striking out "solely". (b) Section 9 of the National School Lunch Act is further amended by adding at the end thereof the following new subsection: "(d)(1) The Secretary shall require as a condition of eligibility for receipt of free or reduced-price lunches that the member of the household who executes the application furnish the social security account numbers of all adult members of the household of which such person is a member. "(2) No member of a household may be provided a free or reducedprice lunch under this Act unless— "(A) appropriate documentation, as prescribed by the Secretary, of the income of such household has been provided to the appropriate local school food authority; or (B) documentation showing that the household is participating in the food stamp program under the Food Stsimp Act of 1977 has been provided to the appropriate local school food authority.". (c) Notwithstanding any other provision of law, the Secretary of Agriculture shall conduct a pilot study to verify the data submitted on a sample of applications for free and reduced-price meals. In conducting the pilot study, the Secretary may require households included in the study to furnish social security numbers of all household members and such other information as the Secretary may require, including, but not limited to, pay stubs, documentation of the

95 STAT. 525

42 USC 1758.

Study. l^^Y^ ^^^^ note.

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Page:United States Statutes at Large Volume 95.djvu/552

 95 STAT. 526

42 USC 1758 "°^42 USC 1758.

PUBLIC LAW 97-35—AUG. 13, 1981 current status of household members who are recipients of public assistance, unemployment insurance documents, and written statements from employers, as a condition for receipt of free or reducedprice meals. (d) For the school year ending June 30, 1982, the Secretary may prescribe procedures for implementing the revisions made by the amendments contained in this section to the income eligibility guidelines for free and reduced-price lunches under section 9 of the National School Lunch Act. Such procedures may allow school food authorities to (1) use applications distributed at the beginning of the school year when making eligibility determinations based on the revised income eligibility guidelines, or (2) distribute new applications and make determinations using such applications. REVISION OF STATE REVENUE MATCHING REQUIREMENTS

42 USC 1756. 42 USC 1753.

SEC. 804. Section 7 of the National School Lunch Act is amended to read as follows: "SEC. 7. (a)(1) Funds appropriated to carry out section 4 of this Act during any fiscal year shall be available for payment to the States for disbursement by State educational agencies in accordance with such agreements, not inconsistent with the provisions of this Act, as may be entered into by the Secretary and such State educational agencies for the purpose of assisting schools within the States in obtaining agricultural commodities and other foods for consumption by children in furtherance of the school lunch program authorized under this Act. For any school year, such payments shall be made to a State only if, during such school year, the amount of the State revenues (excluding State revenues derived from the operation of the program) appropriated or used specifically for program purposes (other than any State revenues expended for salaries and administrative expenses of the program at the State level) is not less than 30 percent of the funds made avsiilable to such State under section 4 of this Act for the school year beginning July 1, 1980. "(2) If, for any school year, the per capita income of a State is less than the average per capita income of all the States, the amount required to be expended by a State under paragraph (1) for such year shall be an amount bearing the same ratio to the amount equal to 30 percent of the funds made available to such State under section 4 of this Act for the the school year beginning July 1, 1980, as the per capita income of such State bears to the average per capita income of all the States. "(b) The State revenues provided by any State to meet the requirement of subsection (a) shall, to the extent the State deems practicable, be disbursed to schools participating in the school lunch program under this Act. No State in which the State educational agency is prohibited by law from disbursing State appropriated funds to private schools shall be required to match Federal funds made available for meals served in such schools, or to disburse, to such schools, any of the State revenues required to meet the requirements of subsection (a). "(c) The Secretary shall certify to the Secretary of the Treasury, from time to time, the amounts to be paid to any State under this section and shall specify when such payments are to be made. The Secretary of the Treasury shall pay to the State, at the time or times fixed by the Secretary, the amounts so certified.".

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Page:United States Statutes at Large Volume 95.djvu/553

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 527

TERMINATION OF FOOD SERVICE EQUIPBIENT ASSISTANCE

SEC. 805. (a) Section 5 of the National School Lunch Act is repealed. Repeals. (b) Section 5 of the Child Nutrition Act of 1966 is repealed. ^^ use 1754. 42 USC 1774.

NUTRITION EDUCATION AND TRAINING PROGRAM

SEC. 806. The second sentence of section 19(j)(2) of the Child Nutrition Act of 1966 is amended to read as follows: "There is 42 USC 1788. authorized to be appropriated for the grants referred to in the preceding sentence not more than $15,000,000 for fiscal year 1981» and not more than $5,000,000 for each subsequent fiscal year.". REVISION OF THE SPECIAL MILK PROGRAM

SEC. 807. Section 3 of the Child Nutrition Act of 1966 is amended— 42 USC 1772. (1) in the first sentence— (A) in clause (1), by inserting "which do not participate in a mesJ service prc^ram authorized under this Act or the National School Lunch Act," after "under,"; and 42 USC I75i (B) in clause (2), by inserting ", which do not participate in ^°^' a meal service program authorized under this Act or the National School Lunch Act" after "training of children"; (2) in the fourth sentence, by inserting "which does not participate in a meal service program authorized under this Act or the National School Lunch Act" after "institution"; (3) in the fifth sentence, by striking out "also"; and (4) by striking out the eighth sentence. LIMITATION ON PRIVATE SCHOOL PARTICIPATION

SEC. 808. (a) Section 12(d)(6) of the National School Lunch Act is 42 USC 1760. amended by inserting in the first sentence "except private schools whose average yearly tuition exceeds $1,500 per child," after "under,". (b) Section 15(c) of the Child Nutrition Act of 1966 is amended by 42 USC 1784. inserting in the first sentence "except private schools whose average yearly tuition exceeds $1,500 per child," after "such school,". SUMMER FOOD SERVICE PROGRAM

SEC. 809. Section 13 of the National School Lunch Act is amended— 42 USC I76i. (1) in subsection (a)(l)— (A) in clause (B), by striking out "nonresidential public or private nonprofit institutions," and inserting in lieu thereof "public or private nonprofit school food authorities, local, municipal, or county governments,"; and (B) in clause (C), by striking out "33 Vs percent" and inserting in lieu thereof "50 percent"; and (2) by adding at the end of subsection (a) the following new paragraph: "(6) Service institutions that are local, municipal, or county governments shall be eligible for reimbursement for meals served in programs under this section only if such programs are operated directly by such governments.".

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Page:United States Statutes at Large Volume 95.djvu/554

 95 STAT. 528

PUBLIC LAW 97-35—AUG. 13, 1981 REVISION OF CHILD CARE FOOD PROGRAM

42 USC 1766.

f2 USC 1753, "^^^-

Ante, p. 522.

42 USC 1758.

SEC. 810. (a) Section 17(a) of the National School Lunch Act is amended— (1) in the second sentence, by adding at the end before the period the following: "(but only if such organization receives compensation under such title for at least 25 percent of the children for which the organization provides such nonresidential day care services)"; and (2) by adding after the third sentence the following: "Reimbursement may be provided under this section only for meals or supplements served to children not over 12 years of age (except that such age limitation shall not be applicable for children of migrant workers if 15 years of age or less or for handicapped children).". (b) Section 17(b) of the National School Lunch Act is amended by striking out "served in the manner specified in subsection (c)" and inserting in lieu thereof "as provided in subsection (f)". (c) Section 17(c) of the National School Lunch Act is amended to read as follows: "(c)(1) For purposes of this section, the national average pa5anent rate for free lunches and suppers, the national average payment rate for reduced-price lunches and suppers, and the national average payment rate for paid lunches and suppers shall be the same as the national average payment rates for free lunches, reduced-price lunches, and paid lunches, respectively, under sections 4 and 11 of this Act as appropriate (as adjusted pursuant to section 11(a) of this Act). "(2) For purposes of this section, the national average payment rate for free breakfasts, the national average payment rate for reducedprice breakfasts, and the national average payment rate for paid breakfasts shall be the same as the national average payment rates for free breakfasts, reduced-price breakfasts, and paid breakfasts, respectively, under section 4(b) of the Child Nutrition Act of 1966 (as adiusted pursuant to section 11(a) of this Act). (3) For purposes of this section, the national average payment rate for free supplements shall be 30 cents, the national average payment rate for reduced-price supplements shall be one-half the rate for free supplements, and the national average payment rate for paid supplements shall be 2.75 cents (as adjusted pursuant to section 11(a) of this Act). "(4) Determinations with regard to eligibility for free and reducedprice meals and supplements shall be made in accordance with the income eligibility guidelines for free lunches and reduced-price lunches, respectively, under section 9 of this Act.". (d) Section 17(f) of the National School Lunch Act is amended— (1) by amending paragraph (2) to read as follows: "(2)(A) Subject to subparagraph (B) of this paragraph, the disbursement for any fiscal year to any State for disbursement to institutions, other than family or group day care home sponsoring organizations, for meals provided under this section shall be equal to the sum of the products obtained by multiplying the total number of each type of meal (breakfast, lunch or supper, or supplement) served in such institution in that fiscal year by the applicable national average payment rate for each such type of meal, as determined under subsection (c). "(B) No reimbursement may be made to any institution under this paragraph, or to family or group day care home sponsoring organiza-

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Page:United States Statutes at Large Volume 95.djvu/555

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 529

tions under paragraph (3) of this subsection, for more than two meals and one supplement per day per child."; (2) by striking out paragraph (3) and by redesignating paragraphs (4) and (5) (and any references thereto) as paragraphs (3) and (4), respectively; and (3) in paragraph (3), as so redesignated— (A) by redesignating the fourth sentence and all that follows through the end of the paragraph as subparagraph (C); and (B) by amending all that precedes subparagraph (C) (as so redesignated) to read as follows: "(3)(A) Institutions that participate in the program under this section as family or group day care home sponsoring organizations shall be provided, for payment to such homes, a reimbursement factor set by the Secretary for the cost of obtaining and preparing food and prescribed labor costs, involved in providing meals under this section, without a requirement for documentation of such costs, except that reimbursement shall not be provided under this subparagraph for meals or supplements served to the children of a person acting as a family or group day care home provider unless such children meet the eligiblity standards for free or reduced-price meals under section 9 of this Act. The reimbursement factor in effect as of the date of the enactment of this sentence shall be reduced by 10 percent. The reimbursement factor under this subparagraph shall be adjusted on July 1 of each year to reflect changes in the Consumer Price Index for food away from home for the most recent 12-month period for which such data are available. The reimbursement factor under this subparagraph shall be rounded to the nearest one-fourth cent. "(B) Family or group day care home sponsoring organizations shall also receive reimbursement for their administrative expenses in amounts not exceeding the maximum allowable levels prescribed by the Secretary. Such levels shall be adjusted July 1 of each year to reflect changes in the Consumer Price Index for all items for the most recent 12-month period for which such data are available. The maximum allowable levels for administrative expense payments, as in effect as of the date of the enactment of this subparagraph, shall be adjusted by the Secretary so as to achieve a 10 percent reduction in the total amount of reimbursement provided to institutions for such administrative expenses. In making the reduction required by the preceding sentence, the Secretary shall increase the economy of scale factors used to distinguish institutions that sponsor a greater number of family or group day care homes from those that sponsor a lesser number of such homes.". (e) Section 17(g) of the National School Lunch Act is amended by 42 USC 1766. striking out paragraph (2) and by redesignating paragraphs (3) and (4) (and any references thereto) as paragraphs (2) and (3), respectively. (f) Section 17 of the National School Lunch Act is further amended by striking out subsections (i) and (n). (g) Section 17(o) of the National School Lunch Act is amended in the second sentence by striking out "the availability of food service equipment funds under the program,". FOOD NOT INTENDED TO BE CONSUMED

SEC. 811. The third sentence of section 9(a) of the National School Lunch Act is amended by striking out "in any junior high school or 42 USC 1758. middle school".

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Page:United States Statutes at Large Volume 95.djvu/556

 95 STAT. 530

PUBLIC LAW 97-35—AUG. 13, 1981 STATE PLAN REQUIREMENTS

42 USC 1759a.

SEC. 812. Section 11(e) of the National School Lunch Act is amended— (1) by striking out paragraph (1) and redesignating paragraphs (2) and (3) (and any references thereto) as paragraphs (1) and (2), respectively; and (2) in paragraphs (1) and (2), as so redesignated, by striking out the second sentence of each such paragraph. COMMODITY ONLY SCHOOLS

42 USC 1762a.

Ante, p. 524. 42 USC 1753.

42 USC 1759a.

Ante, p. 524.

42 USC 1772.

42 USC 1760.

SEC. 813. (a) Section 14 of the National School Lunch Act is amended by adding at the end thereof the following new subsection: "(f) Commodity only schools shall be eligible to receive donated commodities equal in value to the sum of the national average value of donated foods established under section 6(e) of this Act and the national average payment established under section 4 of this Act. Such schools shall be eligible to receive up to 5 cents per meal of such value in cash for processing and handling expenses related to the use of such commodities. Lunches served in such schools shall consist of a combination of foods which meet the minimum nutritional requirements prescribed by the Secretary under section 9(a) of this Act, and shall represent the four basic food groups, including a serving of fluid milk.". (b) Section 11 of the National School Lunch Act is further amended by adding at the end thereof the following new subsection: "(f) Commodity only schools shall also be eligible for specialassistance payments under this section. Such schools shall serve meals free to children who meet the eligibility requirements for free meals under section 9(b) of this Act, and shall serve meals at a reduced price, not exceeding the price specified in section 9(b)(3) of this Act, to children meeting the eligibility requirements for reducedprice meals under such section. No physical segregation of, or other discrimination against, any child eligible for a free or reduced-priced lunch shall be made by the school, nor shall there be any overt identification of any such child by any means.". (c) Section 3 of the Child Nutrition Act of 1968 is further amended by(1) inserting "(a)" after "SEC. 3."; and (2) by adding at the end thereof the following new subsection: "(b) Commodity only schools shall not be eligible to participate in the special milk program under this section. For the purposes of the preceding sentence, the term 'commodity only schools' means schools that do not participate in the school lunch program under the National School Lunch Act, but which receive commodities made available by the Secretary for use by such schools in nonprofit limch programs.". (d) Section 12(d) of the National School Lunch Act is further amended by adding at the end thereof the following new paragraph: "(8) 'Commodity only schools' means schools that do not participate in the school lunch program under this Act, but which receive commodities made available by the Secretary for use by such schools in nonprofit lunch programs."

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Page:United States Statutes at Large Volume 95.djvu/557

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 531

STATE ADMINISTRATIVE EXPENSES

SEC. 814. (a) Section 7(a)(2) of the Child Nutrition Act of 1966 is 42 USC 1776. amended by striking out "September 30, 1978" in the second sentence and inserting in lieu thereof September 30, 1981". (b) Section 7(e) of the Child Nutrition Act is amended to read as follows: "(e) Notwithstanding any other provision of law, funds made available to each State under this section shall remain available for obligation and expenditure by that State during the fiscal year immediately following the fiscal year for which such funds were made available. For each fiscal year the Secretary shall establish a date by which each State shall submit to the Secretary a plan for the disbursement of funds provided under this section for each such year, and the Secretary shall reallocate any unused funds, as evidenced by such plans, to other States as the Secretary considers appropriate.. AUTHORIZATIONS FOR WIC PROGRAM

SEC. 815. Section 17(g) of the Child Nutrition Act of 1966 is amended 42 USC 1786. by striking out in the first sentence "and such sums as may be necessary for the three subsequent fiscal years," and inserting in lieu thereof '^$1,017,000,000 for the fiscal year ending September 30, 1982, $1,060,000,000 for the fiscal year ending September 30, 1983, and $1,126,000,000 for the fiscal year ending September 30, 1984,". CLAIMS ADJUSTMENT AUTHORITY

SEC. 816. Section 16 of the Child Nutrition Act of 1966 is amended— 42 USC 1785. (1) by inserting "(a)" after "SEC 16."; and (2) by adding at the end thereof the following new subsection: "(b) With regard to any claim arising under this Act or under the National School Lunch Act, the Secretary shall have the authority to 42 USC 1751 determine the amount of, to settle and to adjust any such claim, and ^°^^to compromise or deny such claim or any part thereof. The Secretary shall also have the authority to waive such claims if the Secretary determines that to do so would serve the purposes of either such Act. Nothing contained in this subsection shall be construed to diminish the authority of the Attorney General of the United States under section 516 of title 28, United States Code, to conduct litigation on behalf of the United States.". LIMITATIONS ON SECRETARY'S AUTHORITY TO DIRECTLY ADMINISTER PROGRAMS

SEC. 817. (a) Section 10 of the National School Lunch Act is 42 USC 1759. amended to read as follows: " D I S B U R S E M E N T TO SCHOOLS BY THE SECRETARY

"SEC. 10. (a) The Secretary shall withhold funds payable to a State under this Act and disburse the funds directly to schools, institutions, or service institutions within the State for the purposes authorized by this Act to the extent that the Secretary has so withheld and disbursed such funds continuously since October 1, 1980, but only to such extent (except as otherwise required by subsection (b)). Any funds so withheld and disbursed by the Secretary shall be used for the same purposes, and shall be subject to the same conditions, as applicable to a State disbursing funds made available under this Act.

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Page:United States Statutes at Large Volume 95.djvu/558

 95 STAT. 532

42 USC 1761. 42 USC 1766.

42 USC 1773

PUBLIC LAW 97-35—AUG. 13, 1981 If the Secretary is administering (in whole or in part) any program authorized under this Act, the State in which the Secretary is administering the program may, upon request to the Secretary, assume administration of that program. "(b) If a State educational agency is not permitted by law to disburse the funds paid to it under this Act to any of the nonpublic schools in the State, the Secretary shall disburse the funds directly to such schools within the State for the same purposes and subject to the same conditions as are authorized or required with respect to the disbursements to public schools within the State by the State educational agency.". (b) Section 18 of the National School Lunch Act is further amended by striking out subsection (i). (c) Section 17 of the National School Lunch Act is further amended— (1) by striking out subsection (m); and (2) by redesignating subsections (j)> (k), (1), (o), (p), (q), aivd (r), as suljsections (i), 0'), (k), (1), (m), (n), and (o), respectively. (d) Section 4 of the Child Nutrition Act of 1966 is further amended by striking out subsection (f) and redesignating subsection (g) as subsection (f). (e) The Child Nutrition Act of 1966 is further amended by inserting after section 4 the following new section: "DISBURSEMENT TO SCHOOLS BY THE SECRETARY

Ante, p. 527. 42 USC 1774.

42 USC 1788.

"SEC. 5, (a) The Secretary shall withhold funds payable to a State under this Act and disburse the funds directly to schools or institutions within the State for the purposes authorized by this Act to the extent that the Secretary has so withheld and disbursed such funds continuously since October 1, 1980, but only to such extent (except as otherwise required by subsection (b)). Any funds so withheld and disbursed by the Secretary shall be used for the same purposes, and shall be subject to the same conditions, as applicable to a State disbursing funds made available under this Act. If the Secretary is administering (in whole or in part) any program authorized under this Act, the State in which the Secretary is administering the program may, upon request to the Secretary, assume administration of that program. "(b) If a State educational agency is not permitted by law to disburse the funds paid to it under this Act to any of the nonpublic schools in the State, the Secretary shall disburse the funds directly to such schools within the State for the same purposes and subject to the same conditions as are authorized or required with respect to the disbursements to public schools within the State by the State educational agency.". (f) Section 19(d) of the Child Nutrition Act of 1966 is amended by striking out paragraph (6). COST SAVINGS REVISIONS BY THE SECRETARY

42 USC 1779. 42 USC 1751 note, 1771 note.

SEC. 818. As soon as possible after the date of the enactment of this Act, the Secretary of Agriculture shall review regulations promulgated under section 10 of the Child Nutrition Act of 1966 (including regulations pertaining to nutritional requirements for meals) for the purposes of determining ways in which cost savings might be accomplished at the local level in the operation of meal programs under the National School Lunch Act and the Child Nutrition Act of 1966

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 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 533

without impairing the nutritional value of such meals. Not later than Regulations. 90 days after the date of the enactment of this Act, on the basis of such review, the Secretary of Agriculture shall promulgate such regulations as the Secretary considers appropriate to effectuate such cost savings. CONFORMING AND MISCELLANEOUS AMENDMENTS

SEC. 819. (a) Section 11 of the National School Lunch Act is amended— (1) by striking out "financing the cost o f in the first sentence in subsection (b); and (2) by striking out "or 5" in subsection (d). (b) Section 4(c) of the Child Nutrition Act of 1966 is amended by striking out "financing the costs o f in the first sentence. (c) Section 12 of the National School Lunch Act is amended— (1) in subsection (d)— (A) by striking out paragraph (3); and (B) by redesignating paragraphs (4) through (8) (and any references thereto) as paragraphs (3) through (7), respectively; and (2) by striking out the second sentence of subsection (h). (d) Section 8 of the National School Lunch Act is amended— (1) by striking out "or 5" in the first sentence; (2) by striking out "to finance the cost of obtaining" in the second sentence and inserting in lieu thereof "to obtain; (3) by striking out "and food service equipment assistance in connection with such program" in the second sentence; and (4) by striking out "Federal food-cost contribution rate" both places it occurs in the fifth and sixth sentences and inserting in lieu thereof "per meal reimbursement rate". (e) Section 7 of the Child Nutrition Act of 1966 is amended by striking out "3, 4, and 5" in subsections (a)(D, (a)(2), and (b) and inserting in lieu thereof "3 and 4". (f) Section 11(a) of the Child Nutrition Act of 1966 is amended by striking out "section 3 through 5" and inserting in lieu thereof "sections 3 and 4". (g) Section 4(a) of the National School Lunch Act is amended in the first sentence by striking out", excluding the sum specified in section 5,". (h) Section 6(a)(2) of the National School Lunch Act is amended— (1) by striking out "sections 4 and 5" and inserting in lieu thereof "section 4"; and (2) by striking out "sections 4, 5, and 7" and inserting in lieu thereof "sections 4 and 7" (i) Section 15(f) of the National School Lunch Act is amended by striking out "annually" in the second sentence and inserting in lieu thereof "biennially". (j) Section 14 of the National School Lunch Act (42 U.S.C. 1762a) is amended— (1) by striking out "title VII" in paragraph (1) of subsection (a) and inserting in lieu thereof "title III"; and (2) by striking out "section 707(a)(4) of the Older Americans Act of 1965 (42 U.S.C. 3045(a)(4)) or for cash payments in lieu of such donations under section 707(d)(l) of such Act (42 U.S.C. 3045f(d)(l))" in the first sentence of subsection (c) and inserting in lieu thereof "section 311(a)(4) of the Older Americans Act of 1965 (42 U.S.C. 303(KaX4)) or for cash payments in lieu of such

42 USC I759a.

42 USC 1773. 42 USC 1760.

42 USC 1757.

42 USC 1776. 42 USC 1780. 42 USC 1753. 42 USC 1755.

42 USC 1763.

42 USC 3030a.

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 95 STAT. 534

PUBLIC LAW 97-35—AUG. 13, 1981 donations under section SlKcXD of such Act (42 U.S.C.

42 USC 3030a.

42 USC 1766.

3030(c)(l))".

(k) The second sentence of section 17(fKl) of the National School Lunch Act is amended by striking out "financing the cost of. EFFECTIVE DATES AND REPEALER

42 USC 1753 ^°^-

SEC. 820. (a) The provisions of this title shall take effect as follows: (1) The amendments made by the following sections shall take effect on the first day of the month following the date of the enactment of this Act, or on September 1, 1981, whichever is earlier: (A) section 801; (B) that portion of the amendment made by section 810(c) pertaining to the reimbursement rate for supplements; (C) that portion of the amendment made by section 810(d)(1) pertaining to the limitation on the number of meals for which reimbursement may be made under the child care food program; (D) that portion of the amendment made by section 810(d)(3) which reduces the meal reimbursement factor by 10 percent; and (E) section 811. (2) The amendments made by sections 802 and 804 shall take effect on July 1, 1981. (3) The amendments made by sections 807, 808, and 810(a)(2) shall take effect on the first day of the second month following the date of the enactment of this Act. (4) The amendments made by the following sections shall take effect October 1, 1981: sections 805, 806, 809, 810(a)(l), 810(f), 810(g), 812,814,817, and 819. (5) The amendments made by section 813 shall take effect 90 days after the date of the enactment of this Act. (6) The amendments made by the following provisions shall take effect January 1, 1982: subsections (b), (c), (d), and (e) of section 810, except that— (A) the amendment made by section 810(c) pertaining to the reimbursement rate for supplements shall take effect as provided under paragraph (1) of this subsection; (B) the amendment made by section 810(d)(l) pertaining to the limitation on the number of meals for which reimbursement may be made shall take effect as provided under paragraph (1) of this subsection; and (C) the amendment made by section 810(d)(3) which reduces the meal reimbursement factor by 10 percent shall take effect as provided under paragraph (1) of this subsection, (7) The following provisions shall take effect on the date of the enactment of this Act: (A) the amendments made by subsections (a) and (b) of section 803 and the provisions of subsections (c) and (d) of section 803; (B) the amendment made by section 815; (C) the amendment made by section 816; and (D) the provisions of section 818. (b) The Omnibus Reconciliation Act of 1980 (Public Law 96-499) is amended—

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Page:United States Statutes at Large Volume 95.djvu/561

 PUBLIC LAW 97-35—AUG. 13, 1981 (1) by striking out subsection (a) of section 201 effective September 1, 1981, or the first day of the first month following the month in which this Act is enacted, whichever is earlier; (2) by striking out subsection (a) of section 202 effective July 1, 1981; and (3) by striking out subsections (a) and (b) of section 203 effective on the date of the enactment of this Act. (c) Not later than 60 da^s after the date of the enactment of this Act, the Secretary of Agriculture shall promulgate regulations to implement the amendments made by this title.

95 STAT. 535 94 Stat. 2599. 42 USC 1753 note. 94 Stat. 2600. 42 USC 1755 note. 94 Stat. 2600. 42 USC 1758 note. Regulations. 42 USC 1753 note.

TITLE IX—HEALTH SERVICES AND FACILITIES Subtitle A—Block Grants PREVENTIVE HEALTH, HEALTH SERVICES, AND PRIMARY CARE HEALTH BLOCK GRANTS

SEC. 901. Effective October 1, 1981, the Public Health Service Act is 42 USC 300w amended by adding at the end the following new title: ^°^"TITLE XIX—BLOCK GRANTS "PART A—PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT "AUTHORIZATION OF APPROPRIATIONS

"SEC. 1901. (a) For the purpose of allotments under section 1902, 42 USC 300w.. there is authorized to be appropriated $95,000,000 forfiscalyear 1982, $96,500,000 for fiscal year 1983, and $98,500,000 for fiscal year 1984. "(b) Of the amount appropriated for any fiscal year under subsection (a), at least $3,000,000 shall be made available for allotments under section 1902(b). "ALLOTMENTS

"SEC. 1902. (a)(1) From the amounts appropriated under section 42 USC 300w-i. 1901 for any fiscal year and available for allotment under this subsection, the Secretary shall allot to each State an amount which bears the same ratio to the available amounts for that fiscal year as the amounts provided by the Secretary under the provisions of law listed in paragraph (2) to the State and entities in the State for fiscal year 1981 bore to the total amount appropriated for such provisions of law forfiscalyear 1981. "(2) The provisions of law referred to in paragraph (1) are the following provisions of law as in effect on September 30, 1981: "(A) The authority for grants under section 317 for preventive 42 USC 247b. health service programs for the the control of rodents. "(B) The authority for grants under section 317 for establishing and maintaining community and school-based fluoridation programs. "(C) The authority for grants under section 317 for preventive health service programs for h^)ertension. "(D) Sections 401 and 402 of the Health Services and Centers Amendments of 1978. 42 USC 247b-i, "(E) Section 314(d). 247b-2. va-./ wKxwu WX-.VW. -194 0—82

36: QL3

42 USC 246.

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Page:United States Statutes at Large Volume 95.djvu/562

 95 STAT. 536 42 USC 255. 42 USC 300d 300d 3.

"Indian tribe," and "tribal ol^^^ar^A450b. 25 USC Knv>

PUBLIC LAW 97-35—AUG. 13, 1981 "(F) Section 839(a). "(G) Sections 1202, 1203, and 1204. UQ^^ From the amount required to be made available under section 1901(b) for allotments under this subsection for any fiscal year, the Secretary shall make allotments to each State on the basis of the population of the State. "(c) To the extent that all the funds appropriated under section 1901 for a fiscal year and available for allotment in such fiscal year are not otherwise allotted to States because— "(1) one or more States have not submitted an application or description of activities in accordance with section 1905 for the fiscal year; "(2) one or more States have notified the Secretary that they do not intend to use the full amount of their allotment; or "(3) some State allotments are offset or repaid under section 1906(b)(3); such excess shall be allotted among each of the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this subsection. "(d)(1) If the Secretary— "(A) receives a request from the governing body of an Indian tribe or tribal organization within any State that funds under this part be provided directly by the Secretary to such tribe or organization, and "(B) determines that the members of such tribe or tribal organization would be better served by means of grants made directly by the Secretary under this part, the Secretary shall reserve from amounts which would otherwise be allotted to such State under subsection (a) for the fiscal year the amount determined under paragraph (2). "(2) The Secretary shall reserve for the purpose of paragraph (1) from amounts that would otherwise be allotted to such State under subsection (a) an amount equal to the amount which bears the same ratio to the State's allotment for the fiscal year involved as the total amount provided or allotted for fiscal year 1981 by the Secretary to such tribe or tribal organization under the provisions of law referred to in subsection (a) bore to the total amount provided or allotted for such fiscal year by the Secretary to the State and entities (including Indian tribes and tribal organizations) in the State under such provisions of law. "(3) The amount reserved by the Secretary on the basis of a determination under this subsection shall be granted to the Indian tribe or tribal organization serving the individuals for whom such a determination has been made. "(4) In order for an Indian tribe or tribal organization to be eligible for a grant for a fiscal year under this subsection, it shall submit to the Secretary a plan for such fiscal year which meets such criteria as the Secretary may prescribe. "(5) The terms 'Indian tribe' and 'tribal organization' have the same meaning given such terms in section 4(b) and section 4(c) of the Indian Self-Determination and Education Assistance Act. "(e) The Secretary shall conduct a study for the purpose of devising a formula for the equitable distribution of funds available for allotment to the States under this section. In conducting the study, the Secretary shall take into account— "(1) the financial resources of the various States, "(2) the populations of the States, and

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Page:United States Statutes at Large Volume 95.djvu/563

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 537

"(3) any other factor which the Secretary may consider appropriate. Before June 30, 1982, the Secretary shall submit a report to the Congress respecting the development of a formula and make such recommendations as the Secretary may deem appropriate in order to ensure the most equitable distribution of funds under allotments under this section. "PAYMENTS UNDER ALLOTMENTS TO STATES

"SEC. 1903. (a)(1) For each fiscal year, the Secretary shall make 42 USC 300w-2. payments, as provided by section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213), to each State from its allotment under section 1902 (other than any amount reserved under section 1902(d)) from amounts appropriated for that fiscal year. "(2) Any amount paid to a State for a fiscal year and remaining unobligated at the end of such year shall remain available for the next fiscal year to such State for the purposes for which it was made. "(b) The Secretary, at the request of a State, may reduce the amount of payments under subsection (a) by— "(1) the fair market value of any supplies or equipment furnished the State, and "(2) the amount of the pay, allowances, and travel expenses of any officer or employee of the Government when detailed to the State and the amount of any other costs incurred in connection with the detail of such officer or employee, when the furnishing of supplies or equipment or the detail of an officer or employee is for the convenience of and at the request of the State and for the purpose of conducting activities described in section 1904. The amount by which any payment is so reduced shall be available for payment by the Secretary of the costs incurred in furnishing the supplies or equipment or in detailing the personnel, on which the reduction of the payment is based, and the amount shall be deemed to be part of the payment and shall be deemed to have been paid to the State. "USE OP ALLOTMENTS

"SEC. 1904. (a)(1) Except as provided in subsections (b) and (c), 42 USC 300w-3. amounts paid to a State under section 1903 from its allotment under section 1902(a) and amounts transferred by the State for use under this part may be used for the following: "(A) Preventive health service programs for the control of rodents and community and school-based fluoridation programs. "(B) Establishing and maintaining preventive health service programs for screening for, the detection, diagnosis, prevention, and referral for treatment of, and follow-up on compliance with treatment prescribed for, hypertension. "(C) Community based programs for the purpose of demonstrating and evaluating optimal methods for organizing and delivering comprehensive preventive health services to defined populations, comprehensive programs designed to deter smoking and the use of alcoholic beverages simong children and adolescents, and other risk-reduction and health education programs. "(D) Comprehensive public health services. "(E) Demonstrate the establishment of home health agencies (as defined in section 1861(m) of the Social Security Act) in areas 42 USC I395x. where the services of such agencies are not available. Amounts

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Page:United States Statutes at Large Volume 95.djvu/564

 95 STAT. 538

^o^hEnqm' ^^^ use 701.

PUBLIC LAW 97-35—AUG. 13, 1981 provided for such agencies may not be used for the direct provision of health services. "(F) Feasibility studies and planning for emergency medical services systems and the establishment, expeuision, and improvement of such systems. Amounts for such systems may not be used for the costs of the operation of the systems or the purchase of equipment for the systems. "(G) Providing services to rape victims and for rape prevention. Amounts provided for the activities referred to in the preceding sentence may also be used for related planning, administration, and educational activities. "(2) Except as provided in subsection (b), amounts paid to a State under section 1903 from its allotment under section 1902(b) may only be used for providing services to rape victims and for rape prevention. "(3) The Secretary may provide technical assistance to States in planning and operating activities to be carried out under this part. "(b) A State may not use amounts paid to it under section 1903 to— "(1) provide inpatient services, "(2) make cash payments to intended recipients of health services, "(3) purchase or improve land, purchase, construct, or permanently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment, "(4) satisfy any requirement for the expenditure of nonFederal funds as a condition for the receipt of Federal funds, or "(5) provide financial assistance to any entity other than a public or nonprofit private entity. Except as provided in subsection (a)(l)(E), the Secretary may waive the limitation contained in paragraph (3) upon the request of a State if the Secretary finds that there are extraordinary circumstances to justify the waiver and that granting the waiver will assist in carrying out this part. "(c) A State may transfer not more than 7 percent of the amount allotted to the State under section 1902(a) for any fiscal year for use by the State under parts B and C of this title and title V of the Social Security Act in such fiscal year as follows: At any time in the first three quarters of the fiscal year a State may transfer not more than 3 percent of the allotment of the State for the fiscal year for such use, and in the last quarter of a fiscal year a State may transfer for such use not more than the remainder of the amount of its allotment which may be transferred. "(d) Of the am<"unt paid to any State under section 1903, not more than 10 percent paid from each of its allotments under subsections (a) and (b) of section 1902 may be used for administering the funds made available under section 1903. The State will pay from non-Federal sources the remaining costs of administering such funds. "APPLICATION AND DESCRIPTION OF ACTIVITIES

42 USC 300W-4.

"SEC. 1905. (a) In order to receive an allotment for a fiscal year under section 1902 each State shall submit an application to the Secretary. Each such application shall be in such form and submitted by such date as the Secretary shall require. Each such application shall contain assurances that the legislature of the State has complied with the provisions of subsection (b) and that the State will meet the requirements of subsection (c).

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Page:United States Statutes at Large Volume 95.djvu/565

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 539

"(b) After the expiration of the first fiscal year in which a State receives an allotment under section 1902, no funds shall be allotted to such State for any fiscal year under such section unless the legislature of the State conducts public hearings on the proposed use and distribution of funds to be provided under section 1903 for such fiscal year. "(c) As part of the annual application required by subsection (a), the chief executive officer of each State shall certify that the State— "(1) agrees to use the funds alloted to it under section 1902 in accordance with the requirements of this part; "(2) except as provided in subsection (e), shall make grants for fiscal year 1982 to each entity within the State which received a grant or contract under section 1202, 1203, or 1204 in fiscal year ^^-JJ^f^o,.^, „ 1981 and which would be eligible to receive a grant or contract 300d-i-300<i-3. under such section (as in effect on September 30, 1981) for such fiscal year if such grants or contracts were made under such section; "(3) agrees to establish reasonable criteria to evaluate the effective performance of entities which receive funds from the allotment of the State under this part and procedures for procedural and substantive independent State review of the failure by the State to provide funds for any such entity. "(4) agrees to make grants for preventive health service programs for h5rpertension in amounts equal to— "(A) for fiscal year 1982, 75 percent of the total amount provided by the &cretary in fiscal year 1981 to the State and entities in the State under section 317 for such programs, "(B) for fiscal year 1983, 70 percent of such total amount, and "(C) for fiscal year 1984, 60 percent of such total amount. "(5) agrees to permit and cooperate with Federal investigations undertaken in accordance with section 1907; "(6) has identified those populations, areas, and localities in the State with a need for the services for which funds may be provided by the State under this part; "(7) agrees that Federal funds made available under section 1903 for any period will be so used as to supplement and increase the level of State, local, and other non-Federal funds that would in the absence of such Federal funds be made available for the programs and activities for which funds are provided under that section and will in no event supplant such State, local, and other non-Federal funds; and "(8) has in effect a system to protect from inappropriate disclosure patient and rape victim records maintained by the State in connection with an activity funded under this part or by any entity which is receiving payments from the allotment of the State under this part. The Secretary may not prescribe for a State the manner of compliance with the requirements of this subsection. "(d) The chief executive officer of a State shall, as part of the application required by subsection (a), also prepare and furnish the Secretary (in accordance with such form as the Secretary shall provide) with a description of the intended use of the payments the State will receive under section 1903 for the fiscal year for which the application is submitted, including information on the programs and activities to be supported and services to be provided. The description shall be made public within the State in such manner as to facilitate comment from any person (including any Federal or other public

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Page:United States Statutes at Large Volume 95.djvu/566

 95 STAT. 540

PUBLIC LAW 97-35-AUG. 13, 1981 agency) during development of the description and after its transmittal. The description shall be revised (consistent with this section) throughout the year as may be necessary to reflect substantial changes in the programs and activities assisted by the State under this part, and any revision shall be subject to the requirements of the preceding sentence. "(e) A State shall be required to make a grant to an entity as prescribed by subsection (c)(2) unless— "(1) the State recommends on the basis of— "(A) any Federal finding. Federal administrative action, or judicial proceeding with respect to any such entity, or "(B) a review of such entity in accordance with the criteria and procedures required under subsection (c)(3), that the State not be required to make such grants; and "(2) the Secretary approves the recommendation of the State under paragraph (1) based upon a substantive and procedural review of the record made by the State in making its recommendation under paragraph (1). "REPORTS AND AUDITS

42 USC 300W-5.

i

!

Notice and hearing.

"SEC. 1906. (a)(1) Each State shall prepare and submit to the Secretary annual reports on its activities under this part. Such reports shall be in such form and contain such information as the Secretary determines (after consultation with the States and the Comptroller General) to be necessary (A) to determine whether funds were expended in accordance with this part and consistent with the needs within the State identified pursuant to section 1905(c)(6), (B) to secure a description of the activities of the State under this part, and (C) to secure a record of the purposes for which funds were spent, of the recipients of such funds, and of the progress made toward achieving the purposes for which the funds were provided. Copies of the report shall be provided, upon request, to any interested person (including any public agency), "(2) In determining the information that States must include in the report required by this subsection, the Secretary may not establish reporting requirements that are burdensome. "(b)(1) Each State shall establish fiscal control and fund accounting procedures as may be necessary to assure the proper disbursal of and accounting for Federal funds paid to the State under section 1903 and funds transferred under section 1904(c) for use under this part. "(2) Each State shall annually audit its expenditures from payments received under section 1903. Such State audits shall be conducted by an entity independent of any agency administering a program funded under this part and, in so far as practical, in accordance with the Comptroller General's standards for auditing governmental organizations, progreims, activities, and functions. Within 30 days following the date each audit is completed, the chief executive officer of the State shall transmit a copy of that audit to the Secretary. "(3) Each State shall, after being provided by the Secretary with adequate notice and opportunity for a hearing within the State, repay to the United States amounts found not to have been expended in accordance with the requirements of this part or the certification provided by the State under section 1905. If such repayment is not made, the Secretary shall, after providing the State with adequate notice and opportunity for a hearing within the State, offset such

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Page:United States Statutes at Large Volume 95.djvu/567

 PUBLIC LAW 97-35—AUG. 13, 1981 amounts against the amount of any allotment to which the State is or may become entitled under this part. (4) The State shall make copies of the reports and audits required by this section available for public inspection within the State. "(5) The Comptroller General of the United States shall, from time to time, evaluate the expenditures by States of grants under this part in order to assure that expenditures are consistent with the provisions of this part and the certification provided by the State under section 1905. "(6) Not later than October 1, 1983, the Secretary shall report to the Congress on the activities of the States that have received funds under this part and ma>[ include in the report any recommendations for appropriate changes in legislation. "(c) Title XVII of the Omnibus Budget Reconciliation Act of 1981 shall not apply with respect to audits of funds allotted under this part.

95 STAT. 541

Public inspection.

Report to Congress.

Post, p. 753

"WITHHOLDING

"SEC. 1907. (a)(1) The Secretary shall, after adequate notice and an Notice and opportunity for a hearii^ conducted within the affected State, hearing. withhold funds from any State which does not use its allotment in 42 USC 300W-6. accordance with the requirements of this part or the certification provided under section 1905. The Secretary shall withhold such funds until the Secretary finds that the reason for the withholding has been removed and there is reasonable assurance that it will not recur. "(2) The Secretai^ may not institute proceedings to withhold funds under paragraph (1) unless the Secretary has conducted an investigation concerning whether the State has used its allotment in accordance with the requirements of this part or the certification provided under section 1905. Investigations required by this paragraph shall be conducted within the affected State by qualified investigators. "(3) The Secretary shall respond in an expeditious manner to complaints of a substantial or serious nature that a State has failed to use funds in accordance with the requirements of this part or certifications provided under section 1905. "(4) The Secretary may not withhold funds under parg^aph (1) from a State for a minor failure to comply with the requirements of this part or certifications provided under section 1905. "(b)(l) The Secretary shall conduct in several States in each fiscal year investigations of the use of funds received by the States under this part in order to evaluate compliance with the requirements of this part and certifications provided under section 1905. "(2) The Comptroller General of the United States may conduct investigations of the use of funds received under this part by a State in order to insure compliance with the requirements of this part and certifications provided under section 1905. "(c) Each State, and each entity which has received funds from an allotment made to a State under this part, shall make appropriate books, documents, papers, and records avaUable to the Secretary or the Comptroller General 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. "(d)(1) In conducting any investigation in a State, the Secretary or the Comptroller General of the United States may not make a request for any information not readily available to such State or an entity which has received funds from an allotment made to the State under

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Page:United States Statutes at Large Volume 95.djvu/568

 95 STAT. 542

PUBLIC LAW 97-35—AUG. 13, 1981 this part or make an unreasonable request for information to be compiled, collected, or transmitted in any form not readily available. "(2) Paragraph (1) does not apply to the collection, compilation, or transmittal of data in the course of a judicial proceeding. "NONDISCRIMINATION

42 USC 300W-7. 42 USC 6101 29 USC 794 20 USC 1681 42 USC 2000d.

"SEC. 1908. (a)(1) For the purpose of applying the prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975, on the basis of handicap under section 504 of the Rehabilitation Act of 1973, on the basis of sex under title IX of the Education Amendments of 1972, or on the basis of race, color, or national origin under title VI of the Civil Rights Act of 1964, programs and activities funded in whole or in part with funds made available under this part are considered to be programs and activities receiving Federal financial assistance. "(2) No person shall on the ground of sex or religion 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 part. "(b) Whenever the Secretary finds that a State, or an entity that has received a payment from an allotment to a State under section 1902, has failed to comply with a provision of law referred to in subsection (a)(l), with subsection (a)(2), or with an applicable regulation (including one prescribed to carry out subsection (a)(2)), the Secretary 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 sixty days, the chief executive officer fails or refuses to secure compliance, the Secretary may— "(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)(D, or whenever he has reason to believe that a State or an entity is engaged in a pattern or practice in violation of a provision of law referred to in subsection (a)(l) or in violation of subsection (a)(2), the Attorney General may bring a civil action in any appropriate district court of the United States for such relief as may be appropriate, including injunctive relief. "CRIMINAL PENALTY FOR FALSE STATEMENTS

42 USC 300W-8.

"SEC. 1909. Whoever— "(1) knowingly and willfully makes or causes to be made any false statement or representation of a material fact in connection with the furnishing of items or services for which payment may be made by a State from funds allotted to the State under this part, or "(2) having knowledge of the occurrence of any event affecting his initial or continued right to any such payment conceals or fails to disclose such event with an intent fraudulently to secure such payment either in a greater amount than is due or when no such payment is authorized.

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 Dunche trovando in te chi per me par la Gratia di te per me fra tante cure, Tal gratia ne ringratia chi ti scrive. Che sconcia e grande uxur saria a farla, Donandoti turpissime picture Per riaver persone belle e vive. ("Poems," Ixxxviii.)

Se 'l mie rozzo martello i duri sassi Forma d'uman aspecto or questo or quello, Dal ministro, che 'l guida iscorgie e tiello, Prendendo il moto, va con gli altrui passi. Ma quel divin che in ciel alberga e stassi Altri e se piu col proprio andar fa bello; E se nessun martel senza martello Si puo far, da quel vivo ogni altro fassi. E perche '1 colpo e di valor piu pieno Quant' alza piu se stesso alia fucina, Sopra 'l mio questo al ciel n'è gito a volo. Onde a me non finito verra meno, S'or non gli da la fabbrica divina Aiuto a farlo, c'al mondo era solo. ("Poems," ci.)

Quand' el ministro de sospir mie tanti Al mondo, agli ochi mei, a se si tolse, Natura, che fra noi degnar lo volse, Resto in vegognia, e chi lo vide in pianti.


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Page:United States Statutes at Large Volume 95.djvu/569

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 543

shall be fined not more than $25,000 or imprisoned for not more than five years, or both.". "PART B—ALCOHOL AND DRUG ABUSE AND MENTAL HEALTH SERVICES BLOCK GRANT "AUTHORIZATION OF APPROPRIATIONS

"SEC. 1911. For the purpose of grants and allotments under section 42 USC 300x. 1912, there is authorized to be appropriated $491,000,000 for fiscal year 1982, $511,000,000 for fiscal year 1983, and $532,000,000 for fiscal year 1984. "GRANTS AND ALLOTMENTS

"SEC. 1912. (a)(1) The Secretary may use not more than 1 percent of the amount appropriated under section 1911 for any fiscal year to make grants to public and nonprofit private entities for projects for the training and retredning of employees adversely affected by changes in the delivery of mental health services and for providing such employees assistance in securing emplo3niient. "(2) No grant may be made by the Secretary under paragraph (1) unless an application therefor has been submitted to, and approved by, the Secretary. Such application shall be in such form, submitted in such manner, and contain and be accompanied by such information, as the Secretary may specify. No such application may be approved unless it contains assurances that the applicant will use the funds provided only for the purposes specified in the approved application and will establish such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement and accounting of Federal funds paid to the applicant under paragraph (1). "(b)(1) From the remainder of the amount appropriated under section 1911 for any fiscal year, the Secretary shall allot to each State an amount which bears the same ratio to such remainder for that fiscal year as the amounts— "(A) which would have been provided by the Secretary to the State and entities in the State under the Community Mental Health Centers Act and the Mental Health Systems Act for fiscal year 1981 if the Secretary had obligated all the funds for mental health services available for such Acts under Public Law 96-536, and "(B) provided by the Secretary to the State and entities in the State under the laws referred to in subparagraphs (C) and (D) of paragraph (2) for fiscal year 1980, bore to the total amount appropriated for mental health services for fiscal year 1981 under Public Law 96-536 under the Community Mental Health Centers Act and the Mental Health Systems Act and the total amount appropriated for fiscal year 1980 for the provisions of law referred to in subparagraphs (C) and (D) of paragraph (2). "(2) The provisions of law referred to in paragraph (1) are the following provisions of law as in effect on the day before the date of the enactment of the Omnibus Budget Reconciliation Act of 1981: "(A) The Community Mental Health Centers Act. "(B) The Mental Health Systems Act. "(C) Sections 301 and 312 of the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation Act of 1970.

42 USC 300x-i.

94 Stat. 3166.

42 USC 2689 ^°^^^^ f ^ - l^^f*^ ^otY

42 USC 4571. 4578.

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Page:United States Statutes at Large Volume 95.djvu/570

 95 STAT. 544 21 USC 1176, il'^'^-

"Indian tribe," and "tribal °^t^u^AKm^ 25 USC 450b.

PUBLIC LAW 97-35—AUG. 13, 1981 "(D) Sections 409 and 410 of the Drug Abuse Prevention, Treatment, and Rehabilitation Act. "(3) To the extent that all the funds appropriated under section 1911 for a fiscal year and available for allotment in such fiscal year are not otherwise allotted to States because— "(A) one or more States have not submitted an application or description of activities in accordance with section 1915 for the fiscal year; "(B) one or more States have notified the Secretary that they do not intend to use the full amount of their allotment; or "(C) some State allotments are offset or repaid under section 1916(b)(3); such excess shall be allotted among each of the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this paragraph. "(c)(1) If the Secretary— "(A) receives a request from the governing body of an Indian tribe or tribal organization within any State that funds under this part be provided directly by the Secretary to such tribe or organization, and (B) determines that the members of such tribe or tribal organization would be better served by meeuis of grants made directly by the Secretary under this part, the Secretary shall reserve from amounts which would otherwise be allotted to such State under subsection (b) for the fiscal year the amount determined under paragraph (2). "(2) The Secretary shall reserve for the purpose of paragraph (1) from amounts that would otherwise be allotted to such State under subsection (b) an amount equal to the amount which bears the same ratio to the State's allotment for the fiscal year involved as the total amount provided or allotted for fiscal year 1980 by the Secretary to such tribe or tribal organization under the provisions of law referred to in subsection (b)(2) bore to the total amount provided or allotted for such fiscal year by the Secretary to the State and entities (including Indian tribes and tribal organizations) in the State under such provisions of law. "(3) The amount reserved by the Secretary on the basis of a determination under this subsection shall be granted to the Indian tribe or tribal organization serving the individuals for whom such a determination has been made. "(4) In order for an Indian tribe or tribal organization to be eligible for a grant for a fiscal year under this subsection, it shall submit to the Secretary a plan for such fiscal year which meets such criteria as the Secretary may prescribe. "(5) The terms Indian tribe' and 'tribal organization' have the same meaning given such terms in section 4(b) and section 4(c) of the Indian Self-Determination and Education Assistance Act. "(d) The Secretary shall conduct a study for the purpose of devising a formula for the equitable distribution of funds available for allotment to the States under subsection (b). In conducting the study, the Secretary shall take into account— "(1) the financial resources of the various States, "(2) the populations of the States, and "(3) any other factor which the Secretary may consider appropriate. Before June 30, 1982, the Secretary shall submit a report to the Congress respecting the development of a formula and make such recommendations as the Secretary may deem appropriate in order to

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Page:United States Statutes at Large Volume 95.djvu/571

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 545

insure the most equitable distribution of funds under allotments under subsection (b). "PAYMENTS UNDER ALLOTMENTS TO STATES

"SEC. 1913. (a)(1) For each fiscal year, the Secretary shall make 42 USC 300x-2. payments, as provided by section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213), to each State from its allotment under section 1912(b) (other than any amount reserved under section 1912(c)) from smiounts appropriated for that fiscal year. "(2) Any amount paid to a State for a fiscal year and remaining unobligated at the end of such year shall remain available to such State for the purposes for which it was made for the next fiscal year. "(b) The Secretary, at the request of a State, may reduce the amount of payments under subsection (a) by— "(1) the fair market value of any supplies or equipment furnished the State, and "(2) the amount of the pay, allowances, and travel expenses of any officer or employee of the Government when detailed to the State and the amount of any other costs incurred in connection with the detail of such officer or employee, when the furnishing of supplies or equipment or the detail of an officer or employee is for the convenience of and at the request of the State and for the purpose of conducting activities described in section 1914. The amount by which any payment is so reduced shall be available for payment by the Secretary of the costs incurred in furnishing the supplies or equipment or in detailing the personnel, on which the reduction of the payment is based, and the amount shall be deemed to be part of the payment and shall be deemed to have been paid to the State. "USE OF ALLOTMENTS

"SEC. 1914. (a)(1) Except as provided in subsections (b) and (c), 42 USC 300x-3. amounts paid to a State under section 1913 and amounts transferred by the State for use under this part may be used by the State for— "(A) planning, establishing, maintaining, coordinating, and evaluating projects for the development of more effective prevention, treatment, and rehabilitation programs and activities to deal with alcohol and drug abuse; and "(B) grants to community mental health centers in accordance with section 1915(c) and grants to community mental health centers for the provision of the following services: "(i) Services for chronically mentally ill individuals, which include identification of chronically mentally ill individuals and assistance to such individuals in gaining access to essentied services through the assignment of case managers, "(ii) Identification and assessment of severely mentally disturbed children and adolescents and provision of appropriate services to such individuals. "(iii) Identification and assessment of mentally ill elderly individuals and provision of appropriate services to such individuals. "(iv) Services for identifiable populations which are currently underserved in the State. "(v) Coordination of mental health and health care services provided within health care centers.

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Page:United States Statutes at Large Volume 95.djvu/572

 95 STAT. 546

Ante, p. 535, 42* n'<?r 7m use 701.

PUBLIC LAW 97-35—AUG. 13, 1981 Amounts provided for the activities referred to in the preceding sentence may also be used for related planning, administration, and educational activities. "(2) The Secretary may provide technical assistance to States in planning and operating activities to be carried out under this part. "(b) A State may not use amounts paid to it under section 1913 to— "(1) provide inpatient services in the case of amounts provided for community mental health centers or provide inpatient hospital services in the case of amounts provided for alcohol or drug abuse programs, "(2) make cash payments to intended recipients of health services, "(3) purchase or improve land, purchase, construct, or permanently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment, "(4) satisfy any requirement for the expenditure of nonFederal funds as a condition for the receipt of Federal funds, or "(5) provide financial assistance to any entity other than a public or nonprofit private entity. The Secretary may waive the limitation contained in paragraph (3) upon the request of a State if the Secretary finds that there are extraordinary circumstances to justify the waiver and that granting the waiver will assist in carrying out this part. "(c) A State may transfer not more than 7 percent of the amount allotted to the State under section 1912 for any fiscal year for use by the State under parts A and C of this title and title V of the Social Security Act in such fiscal year as follows: At any time in the first three quarters of the fiscal year a State may transfer not more than 3 percent of the allotment of the State for the fiscal year for such use, and in the last quarter of a fiscal year a State may transfer for such use not more than the remainder of the amount of its allotment which may be transferred. "(d) Of the amount paid to any State under section 1913, not more than 10 percent may be used for administering the funds made available under such section. The State will pay from non-Federal sources the remaining costs of administering such funds. "APPLICATION AND DESCRIPTION OP ACTIVITIES

42 USC 300x-4.

"SEC. 1915. (a) In order to receive an allotment for a fiscal year under section 1912(b) each State shall submit an application to the Secretary. Each such application shall be in such form and submitted by such date as the Secretary shall require. Each such application shall contain assurances that the legislature of the State has complied with the provisions of subsection (b) and that the State will meet the requirements of subsection (c). "(b) After the expiration of the first fiscal year in which a State receives an allotment under section 1912(b), no funds shall be allotted to such State for any fiscal year under such section unless the legislature of the State conducts public hearings on the proposed use and distribution of funds to be provided under section 1913 for such fiscal year. "(c) As part of the annual application required by subsection (a), the chief executive officer of each State shall certify as follows: "(1) The State agrees to use the funds alloted to it under section 1912 in accordance with the requirements of this part. "(2) Except as provided in subsection (e), for fiscal years 1982, 1983, and 1984, the State agrees to make grants, subject to

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Page:United States Statutes at Large Volume 95.djvu/573

 PUBLIC LAW 97-35—AUG. 13, 1981 paragraphs (3) and (4), to each community mental health center within the State which received a grant under the Community Mental Health Centers Act in fiscal year 1981 and which would be eligible to receive a grant for its operation under that Act (as in effect on the day before the date of the enactment of the Omnibus Budget Reconciliation Act of 1981) for suchfiscalyear if such grants were made under such Act. "(3) The State agrees to make grants to community mental health centers in the State for the provision of comprehensive mental health services— "(A) principally to individuals residing in a defined geographic area (hereinafter in this section referred to as a inental health service area'), with special attention to individuals who are chronically mentally ill, "(B) within the limits of its capacity, to any individual residing or employed in its mental health service area regardless of ability to pay for such services, current or past health condition, or any other factor, and "(C) which are available and accessible promptly, as appropriate and in a manner which preserves human dignity and assures continuity and high quality care. "(4) The State agrees to require that any community mental health center in the State receiving a grant from the State under this part provide— "(A) outpatient services, including specialized outpatient services for children, the elderly, individuals who are chronically mentally ill, and residents of its mental health service area who have been discharged from inpatient treatment at a mental health facility, "(B) 24-hour-a-day emergency care services, "(C) day treatment or other partial hospitalization services, "(D) screening for patients being considered for admission to State mental health facilities to determine the appropriateness of such admission, and "(E) consultation and education services. "(5) The State agrees to establish reasonable criteria to evaluate the effective performance of entities which receive funds from the State under this part and procedural and substantive independent State review procedures of the failure by the State to provide funds for any such entity. (6)(A) The State agrees to use the funds allotted to it under section 1912 for fiscal year 1982 for the mental health and alcohol and drug abuse activities prescribed by section 1914(a) as follows: "(i) The amount provided for mental health activities shall not exceed an amount which bears the same relationship to the funds allotted to the State for such fiscal year as the funds for mental health services which would have been received by the State and entities in the State in fiscal year 1981 under the Community Mental Health Centers Act and the Mental Health Systems Act if the Secretary had obligated all of the funds appropriated for such Acts under Public Law 96-536 bore to the funds which would have been so received by the State and entities in the State in such fiscal year under such Acts and the funds received by the State and entities in the State in fiscal year 1980 under sections 301 and 312 of the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation

95 STAT. 547

42 USC 2689 ^°^-

94 Stat. 1564. 42 USC 9401 gj It^t 3166

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Page:United States Statutes at Large Volume 95.djvu/574

 95 STAT. 548 42 USC 4571, 21 USC 1176 1177 '

42 USC 2689 ?564' ^^ ^^^^ 42 USC 9401 note. 94 Stat. 3166.

PUBLIC LAW 97-35—AUG. 13, 1981 Act of 1970 and sections 409 and 410 of the Drug Abuse Prevention, Treatment, and Rehabilitation Act. "(ii) The amount provided for alcohol and drug abuse activities shall not exceed an amount which bears the same relationship to the funds allotted to the State for such fiscal year as the funds received by the State and entities in the State in fiscal year 1980 under sections 301 and 312 of the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation Act of 1970 and sections 409 and 410 of the Drug Abuse Prevention, Treatment, and Rehabilitation Act bore to the funds received by the State and entities in the State in such fiscal year under such sections and the funds for mental health services which would have been received by the State and entities in the State in fiscal year 1981 under the Community Mental Health Centers Act and the Mental Health Systems Act if ^^*^^ ^^^ under Public Law 96-536. "(B) The State agrees to use 95 percent of the funds allotted to it under section 1912 for fiscal year 1983 for the mental health and alcohol and drug abuse activities prescribed by section 1914(a) as prescribed by subparagraph (A). "(C) The State agrees to use 85 percent of the funds allotted to it under section 1912 for fiscal year 1984 for the mental health and alcohol and drug abuse activities prescribed by section 1914(a) as prescribed by subparagraph (A). "(7) In any fiscal year, the State agrees to use funds for the alcohol and drug abuse activities prescribed by section 1914(a) as follows: "(A) Not less than 35 percent of the amount to be made available for such activities shall be used for programs and activities relating to alcoholism and alcohol abuse. "(B) Not less than 35 percent of the amount to be made available for such activities shall be used for programs and activities relating to drug abuse. "(8) Of the amount to be used in any fiscal year for alcohol or drug abuse activities, the State agrees to use not less than 20 percent of such amount for prevention and early intervention programs designed to discourage the abuse of alcohol or drugs, or both. "(9) The State agrees to permit and cooperate with Federal investigations undertaken in accordance with section 1917. "(10) That the State has identified those populations, areas, and localities in the State with a need for mental health, alcohol, abuse and alcoholism, and drug abuse services. I "(11) That the Federal funds made available under section 1913 ! for any period will be so used as to supplement and increase the level of State, local, and other non-Federal funds that would in the absence of such Federal funds be made available for the programs and activities for which funds are provided under that section and will in no event supplant such State, local, and other non-Federal funds. "(12) That the State has in effect a system to protect from inappropriate disclosure patient records maintained by the State in connection with an activity funded under this part or by any entity which is receiving payments from the allotment of the State under this part.
 * ^ Secretary had obligated all of the funds appropriated for

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Page:United States Statutes at Large Volume 95.djvu/575

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 549

"(13) That the State shall develop and implement arrangements, which are not excessively burdensome on the State, to locate jobs for employees affected adversely by actions taken by the State mental health authority to emphasize outpatient mental health services. The Secretary may not prescribe for a State the manner of compliance with the requirements of this subsection. "(d) The chief executive officer of a State shall, as part of the application required by subsection (a), also prepare and furnish the Secretary (in accordance with such form as the Secretary shall provide) with a description of the intended use of the payments the State will receive under section 1913 for the fiscal year for which the application is submitted, including information on the programs and activities to be supported and services to be provided. The description shall be made public within the State in such manner as to facilitate comment from any person (including any Federal or other public agency) during development of the description and after its transmittal. The description shall be revised (consistent with this section) throughout the year as may be necessary to reflect substantial changes in the programs and activities assisted by the State under this part, and any revision shall be subject to the requirements of the preceding sentence. "(e) A State shall be required to make a grant to a community mental health center under subsection (c)(2) unless— "(1) the State recommends on the basis of— "(A) any Federal finding, Federal administrative action, or judicial proceeding with respect to any such community mental health center, or "(B) a review of such center in accordance with the criteria and procedures required under subsection (c)(5), that the State not be required to make such grants; and "(2) the Secretary approves the recommendation of the State under paragraph (1) based upon a substantive and procedural review of the record made by the State in making its recommendation under paragraph (1) which review demonstrates that the community mental health center is not providing services as prescribed by paragraphs (3) and (4) of subsection (c) or is engaged in a substantial misuse of funds. "REPORTS AND AUDITS

SEC. 1916. (a) Each State shall prepare and submit to the Secretary 42 USC 300x-5. annual reports on its activities under this part. Such reports shall be in such form and contain such information as the Secretary determines (after consultation with the States and the Comptroller General) to be necessary (1) to determine whether funds were expended in accordance with this part and consistent with the needs within the State identified pursuant to section 1915(c)(10), (2) to secure a description of the activities of the State under this part, and (9D to secure a record of the purposes for which funds were spent, of the recipients of such funds, and of the progress made toward achieving the purposes for which the funds were provided. Copies of the report shall be provided, upon request, to any interested person (including any public agency). "(2) In determining the information that States must include in the report required by this subsection, the Secretary may not establish reporting requirements which are burdensome.

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Page:United States Statutes at Large Volume 95.djvu/576

 95 STAT. 550

Post, p. 753.

PUBLIC LAW 97-35—AUG. 13, 1981 "(b)(1) Each State shall establish fiscal control and fund accounting procedures as may be necessary to assure the proper disbursal of and accounting for Federal funds paid to the State under section 1913 and funds transferred for use under this part. "(2) Each State shall annually audit its expenditures from payments received under section 1913. Such State audits shall be conducted by an entity independent of any agency administering a program funded under this part and, in so far as practical, in accordance with the Comptroller General's standards for auditing governmental organizations, programs, activities, and functions. Within 30 days following the date each audit is completed, the chief executive officer of the State shall transmit a copy of that audit to the Secretary. "(3) Each State shall, after being provided by the Secretary with adequate notice and opportunity for a hearing within the affected State, repay to the United States amounts found not to have been expended in accordance with the requirements of this part or the certification provided under section 1915. If such repayment is not made, the Secretary shall, after providing the State with adequate notice and opportunity for a hearing, offset such amounts against the amount of any allotment to which the State is or may become entitled under section 1912. "(4) The State shall make copies of the reports and audits required by this section available for public inspection within the State. "(5) The Comptroller General of the United States shall, from time to time, evaluate the expenditures by States of grants under this part in order to assure that expenditures are consistent with the provisions of this part. "(6) Not later than October 1, 1983, the Secretary shall report to the Congress on the activities of the States which have received funds under this part and may include in the report any recommendations for appropriate changes in legislation. "(c) The provisions of title XVII of the Omnibus Budget Reconciliation Act of 1981 shall not apply with respect to the audit of funds allotted under this part. "WITHHOLDING

42 USC 300X-6.

"SEC. 1917. (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 use its allotment in accordance with the requirements of this part or the certification provided under section 1915. The Secretary shall withhold such funds until the Secretary finds that the reason for the withholding has been removed and there is reasonable assurance that it will not recur. "(2) The Secretary may not institute proceedings to withhold funds under paragraph (1) unless the Secretary has conducted an investigation concerning whether the State has used its allotment in accordance with the requirements of this part or the certification provided under section 1915. Investigations required by this paragraph shall be conducted within the affected State by qualified investigators. "(3) The Secretary shall respond in an expeditious manner to complaints of a substantial or serious nature that a State has failed to use funds in accordance with the requirements of this part or the certification provided under section 1915. "(4) The Secretary may not withhold funds under paragraph (1) from a State for a minor failure to comply with the requirements of this part or the certification provided under section 1915.

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Page:United States Statutes at Large Volume 95.djvu/577

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 551

"(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 part in order to evaluate compliance with the requirements of this part and the certification provided under section 1915. "(2) The Comptroller General of the United States may conduct investigations of the use of funds received under this part by a State in order to insure compliance with the requirements of this part and the certification provided under section 1915. "(c) Each State, and each entity which has received funds from an allotment made to a State under this part, shall make appropriate books, documents, papers, and records available to the Secretary or the Comptroller General 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. "(d)(1) In conducting any investigation in a State, the Secretary or the Comptroller General of the United States may not make a request for any information not readily available to such State or an entity which has received funds from an allotment made to the State under this part or make an unreeisonable request for information to be compiled, collected, or transmitted in any form not readily available. "(2) Paragraph (1) does not apply to the collection, compilation, or transmittal of data in the course of a judicial proceeding. "NONDISCRIMINATION

"SEC. 1918. (a)(1) For the purpose of applying the prohibitions against discrimination on the basis of ajge under the Age Discrimination Act of 1975, on the basis of handicap under section 504 of the Rehabilitation Act of 1973, on the basis of sex under title IX of the Education Amendments of 1972, or on the basis of race, color, or national origin under title VI of the Civil Rights Act of 1964, programs and activities funded in whole or in part with funds made available under this part are considered to be programs and activities receiving Federal financial assistance. "(2) No person shall on the ground of sex or religion 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 part. "(b) Whenever the Secretary finds that a State, or an entity that has received a payment from an allotment to a State under section 1912, has failed to comply with a provision of law referred to in subsection (a)(D, with subsection (a)(2), or with an applicable regulation (including one prescribed to carry out subsection (a)(2)), the Secretary 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 sixty days, the chief executive officer fails or refuses to secure compliance, the Secretary may— "(1) refer the matter to the Attorney General with a recommendation that an appropriate civU 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)(D, or whenever he has reason to believe that a State or an entity is engaged in a pattern or practice in violation of a provision

89-194 0—82

37: QL3

42 USC 300x-7. 42 USC 6ioi gg^use 794 20 USC 1681 42USe2000d.

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