thereof which comply with the provisions of this subsection.120 ALLOTMENTS TO STATES SEC. 624. Each State for which a State plan has been approved prior to or during a fiscal year shall be entitled for such year to an allotment of a sum bearing the same ratio to the sums authorized to be appropriated pursuant to section 621 for such year as the product of (a) the population of such State and (b) the square of its allotment percentage (as defined in section 631(a)) bears to the sum of the corresponding products for all of the States: Provided, That no such allotment to any State shall be less than $200,000 but for the purpose of this proviso the term "State" shall not include the Virgin Islands, American Samoa, or Guam. The amount of the allotment to a State shall be available, in accordance with the provisions of this part, for payment of the Federal share of the cost of approved projects within such State. The Surgeon General shall calculate the allotments to be made under this section and notify the Secretary of the Treasury of the amounts thereof. Sums allotted to a State for a fiscal year for construction and remaining unobligated at the end of such year shall remain available to such State for such purpose for the next fiscal year (and for such year only), in addition to the sums allotted for such State for such next fiscal year. Any amount of the sum authorized to be appropriated for a fiscal year which is not appropriated for such year, or which is not allotted in such year by reason of the failure of any State or States to have plans approved under this part, and any amount allotted to a State but remaining unobligated at the end of the period for which it is available to such State, is hereby authorized to be appropriated for the next fiscal year in addition to the sum otherwise authorized under section 621.121 APPROVAL OF PROJECTS AND PAYMENTS FOR CONSTRUCTION SEC. 625. (a) 122 For each project for construction pursuant to a State plan approved under this part, there shall be submitted to the Surgeon General through the State agency an application by the State or a political subdivision thereof or by a public or other nonprofit agency. If two or more such agencies join in the construction of the project, the application may be filed by 120 Subsec. (e) was added by sec. 3 of the Hospital Survey and Construction Amendments of 1949 (P.L. 380, 81st Congress). 121 Sec. 624 was amended by sec. 4 of P.L. 87-688, effective July 1, 1962. 122 Subsec. (a) was amended by sec. 8 of the Hospital Survey and Construction Amendments of 1949 (P.L. 380, 81st Congress). 42 U.S.C. 291g 42 U.S.C. 291h one or more of such agencies. Such application shall set forth (1) a description of the site for such project; (2) plans and specifications therefor in accordance with the regulations prescribed by the Surgeon General under section 622(e); (3) reasonable assurance that title, as defined in section 631 (j), such site is or will be vested in one or more of the agencies filing the application or in a public or other nonprofit agency which is to operate the hospital; (4) reasonable assurance that adequate financial support will be available for the construction of the project and for its maintenance and operation when completed; (5) reasonable assurance that the rates of pay for laborers and mechanics engaged in construction of the project will be not less than the prevailing local wage rates for similar work as determined in accordance with Public Law 403 of the Seventy-fourth Congress, approved August 30, 1935, as amended; and (6) a certification by the State agency of the Federal share for the project. The Surgeon General shall approve such application if sufficient funds to pay the Federal share of the cost of construction of such project are available from the allotment to the State, and if the Surgeon General finds (A) that the application contains such reasonable assurance as to title, financial support, and payment of prevailing rates of wages; (B) that the plans and specifications are in accord with the regulations prescribed pursuant to section 622; (C) that the application is in conformity with the State plan approved under section 623 and contains an assurance that in the operation of the hospital there will be compliance with the applicable requirements of the State plan and of the regulations prescribed under section 622(f) regarding the provision of facilities without discrimination on account of race, creed or color, and for furnishing needed hospital facilities for persons unable to pay therefor, and with State standards for operation and maintenance; and (D) that it has been approved and recommended by the State agency and is entitled to priority over other projects within the State in accordance with the regulations prescribed pursuant to section 622(d). No application shall be disapproved until the Surgeon General has afforded the State agency an opportunity for a hearing. (b) Upon approving an application under this section, the Surgeon General shall certify to the Secretary of the Treasury an amount equal to the Federal share of the estimated cost of construction of the project and designate the appropriation from which it is to be paid. Such certification shall provide for payments to the State, except that if the State is not authorized by law to make payments to the applicant the certification shall provide for payment direct to the applicant. Upon certification by the State agency, based upon inspection by it, that work has been performed upon a project, or purchases have been made, in accordance with the approved plans and specifications, and that payment of an installment is due to the applicant, the Surgeon General shall certify such installment for payment by the Secretary of the Treasury; except that if the Surgeon General, after investigation or otherwise, has ground to believe that a default has occurred requiring action pursuant to section 632 (a) he may, upon giving notice of hearing pursuant to such subsection, withhold certification pending action based on such hearing.123 (c) Amendment of any approved application shall be subject to approval in the same manner as an original application. Certification under subsection (b) may be amended, either upon approval of an amendment of the application or upon revision of the estimated cost of a project. An amended certification may direct that any additional payment be made from the applicable allotment for the fiscal year in which such amended certification is made. (d) The funds paid under this section for the construction of an approved project shall be used solely for carrying out such project as so approved. (e) If any hospital, diagnostic or treatment center, rehabilitation facility, or nursing home for which funds have been paid under this section or under section 654 shali, at any time within twenty years after the completion of construction, (A) be sold or transferred to any person, agency, or organization (1) which is not qualified to file an application under this section, or (2) which is not approved as a transferee by the State agency designated pursuant to section 623 (a) (1), or its successor, or (B) cease to be a nonprofit hospital, nonprofit diagnostic or treatment center, nonprofit rehabilitation facility, or nonprofit nursing home as defined in section 631(g), the United States shall be entitled to recover from either the transferor or the transferee (or, in the case of a hospital, diagnostic or treatment center, rehabilitation facility, or nursing home, which has ceased to be nonprofit, from the owners thereof) an amount bearing the same ratio to the then value (as determined by agreement of the parties or by action brought in the district court of the United States for the district in which such hospital, center, facility, or nursing home is situated) of so much of the hospital, center, facility, or nursing home as constituted an approved project or projects, as the amount of the Federal participation bore to the cost of the construction of such project or projects.124 (f) If the Surgeon General finds with respect to an application for a hospital project that— 123 Subsec. (b) was amended by sec. 3(b) of the Hospital Survey and Construction Amendments of 1949 (P.L. 380, 81st Congress). 124 Subsec. (e) was amended by sec. 4(b) of the Medical Facilities Survey and Construction Act of 1954 (P.L. 482, 83rd Congress). 42 U.S.C. 2911 (1) the project is for the completion of a hospital the construction of which was commenced prior to the effective date of this subsection and without Federal aid under this title; (2) completion of construction is necessary for use of the completed portion as a hospital; (3) the State agency has certified that the applicant is unable, by use of all available funds and by exercise of reasonable effort in obtaining additional funds, to pay the non-Federal share (determined without regard to this subsection) of the cost of completing the hospital but will be able to complete construction with the additional Federal aid provided by this subsection; (4) the plans and specifications for the entire hospital are in accord with the regulations prescribed pursuant to section 622, or if not in accord with such regulations, meet substantially the objectives of such regulations; (5) the application meets all the requirements of subsection (a) of this section except in the respects covered by clauses (3) and (4) hereof and contains assurances applicable to the operation and maintenance of the entire hospital which meet the requirements of such subsection; and (6) the unobligated balance of the sum allotted to the State is equal to or greater than the Federal share of the estimated cost of construction of such project plus the additional amount specified below in this subsection; he shall approve the application. Upon such approval the Federal share of the estimated cost of such project plus an additional amount not to exceed (1) 333 per centum of the necessary cost to the applicant of the construction completed prior to such approval, or (2) the amount certified by the State agency as necessary to complete the construction of the hospital, whichever is less, shall constitute a contractual obligation of the Federal Government, and certifications for payment under subsection (b) of this section shall be on the basis of the Federal share plus such additional amount: Provided, That the total amount certified for payment shall not exceed the cost of construction of such project.125 PART D-MISCELLANEOUS DEFINITIONS SEC. 631. For the purpose of this title (a) 126 The allotment percentage for any State shall be 100 per centum less that percentage which bears the same 125 Subsec. (f) was added by sec. 3(d) of the Hospital Survey and Construction Amendments of 1949 (P.L. 380, 81st Congress). 126 Subsec. (a) amended by sec. 4 of P.L. 87-688, effective July 1, 1962. ratio to 50 per centum as the per capita income of such State bears to the per capita income of the United States, except that (1) the allotment percentage shall in no case be more than 75 per centum or less than 333 per centum, and (2) the allotment percentage for Puerto Rico, Guam, American Samoa, and the Virgin Islands shall be 75 per centum; (b) 127 (1) The allotment percentages shall be promulgated by the Surgeon General between July 1 and August 31 of each even-numbered year, on the basis of the average of the per capita incomes of the States and of the United States for the three most recent consecutive years for which satisfactory data are available from the Department of Commerce. Such promulgation shall be conclusive for each of the two fiscal years in the period beginning July 1 next succeeding such promulgation: Provided, That the Surgeon General shall promulgate such percentages as soon as possible after the enactment of this title, which promulgation shall be conclusive for the fiscal year ending June 30, 1947; (2) The term "United States" means (but only for purposes of this subsection and subsection (a)) the fifty States and the District of Columbia; (3) Promulgations made before satisfactory data are available from the Department of Commerce for a full year on the per capita income of Alaska shall prescribe an allotment percentage for Alaska of 50 per centum and, for purposes of such promulgation, Alaska shall not be included as part of the United States. Promulgations made thereafter but before per capita income data for Alaska for a full three-year period are available from the Department of Commerce shall be based on satisfactory data available there from for Alaska for such one full year or, when such data are available for a twoyear period, for such two years; (c) The population of the several States shall be determined on the basis of the latest figures certified by the Department of Commerce; (d) 128 The term "State" includes Puerto Rico, Guam, American Samoa, the Virgin Islands and the District of Columbia; (e) The term "hospital" (except as used in section 622 (a) and (b)) includes public health centers and general, tuberculosis, mental, chronic disease, and other types of hospitals, and related facilities, such as laboratories, out-patient departments, nurses' home and training facilities, and central service facilities operated in connection with hospitals, but does not include any hospital furnishing primarily domiciliary care; (f) The term "public health center" means a publicly owned facility for the provision of public health 127 Subsec. (b) amended by subsec. 29 (d)(3) of P.L. 86-624. 128 Subsec. (d) amended by sec. 4 of P.L. 87-688, effective July 1, 1962. |