42 U.S.C. § 702 — Allotment to States and Federal set-aside

Page 2433 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 702 this subtitle) may not exceed the amount which is al- lotted to the State for that fiscal year under such section (without regard to paragraphs (3) and (4) thereof). ‘‘(C) For fiscal year 1982, the Secretary shall reduce the amount which would otherwise be available— ‘‘(i) for expenditures by the Secretary under section 502(a) of the Social Security Act [42 U.S.C. 702(a)] (as amended by this subtitle) by the amounts which the Secretary determines or estimates are payable for consolidated Federal programs (as defined in sub- section (c)(2)(B)) from funds for fiscal year 1982, and ‘‘(ii) for allotment to each of the States under sec- tion 502(b) of such Act [42 U.S.C. 702(b)] (as so amend- ed) by the amounts which the Secretary determines or estimates are payable to that State (or entities in the State) under the consolidated State programs (as defined in subsection (c)(2)(C)) from funds for fiscal year 1982. ‘‘(c) For purposes of this section: ‘‘(1) The term ‘State’ has the meaning given such term for purposes of title V of the Social Security Act [42 U.S.C. 701 et seq.]. ‘‘(2)(A) The term ‘consolidated health programs’ has the meaning given such term in section 501(b) of the Social Security Act [42 U.S.C. 701(b)] (as amended by this subtitle). ‘‘(B) The term ‘consolidated Federal programs’ means the consolidated health programs— ‘‘(i) of special projects grants under sections 503 and 504 [42 U.S.C. 703, 704], and training grants under section 511 [42 U.S.C. 711], of the Social Secu- rity Act, ‘‘(ii) of grants and contracts for genetic disease projects and programs under section 1101 of the Public Health Service Act [former 42 U.S.C. 300b], and ‘‘(iii) of grants or contracts for comprehensive he- mophilia diagnostic and treatment centers under section 1131 of the Public Health Service Act [former 42 U.S.C. 300c–21], as such sections are in effect before the date of the enactment of this subtitle [Aug. 13, 1981]. ‘‘(C) The term ‘consolidated State programs’ means the consolidated health programs, other than the consolidated Federal programs. ‘‘(d) The provisions of chapter 2 of subtitle C of title XVII of this Act [sections 1741–1745 of Pub. L. 97–35, which were repealed and reenacted as section 7301–7305 of Title 31, Money and Finance, by Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 877] shall not apply to this subtitle (or the programs under the amendments made by this title [probably should be subtitle]) and, specifically, section 1745 of this Act [set out as a note under section 1243 of Title 31] shall not apply to financial and compliance audits conducted under section 506(b) of the Social Se- curity Act [42 U.S.C. 706(b)] (as amended by this sub- title).’’ DEVELOPMENT OF MODEL APPLICATIONS FOR MATERNAL AND CHILD ASSISTANCE PROGRAMS Pub. L. 101–239, title VI, § 6506(a), Dec. 19, 1989, 103 Stat. 2281, directed Secretary of Health and Human Services to develop, not later than one year after Dec. 19, 1989, a model application form for use in applying for assistance for pregnant women and for children less than 6 years old under maternal and child assistance programs and required publication of model form in Federal Register and dissemination of form to State agencies. RESEARCH ON INFANT MORTALITY AND MEDICAID SERVICES Pub. L. 101–239, title VI, § 6507, Dec. 19, 1989, 103 Stat. 2282, provided that: ‘‘The Secretary of Health and Human Services shall develop a national data system for linking, for any infant up to age one— ‘‘(1) the infant’s birth record, ‘‘(2) any death record for the infant, and ‘‘(3) information on any claims submitted under title XIX of the Social Security Act [42 U.S.C. 1396 et seq.] for health care furnished to the infant or with respect to the birth of the infant.’’ DEMONSTRATION PROJECT ON HEALTH INSURANCE FOR MEDICALLY UNINSURABLE CHILDREN Pub. L. 101–239, title VI, § 6508, Dec. 19, 1989, 103 Stat. 2283, authorized Secretary of Health and Human Serv- ices to conduct not more than 4 demonstration projects to provide health insurance coverage through eligible plans to medically uninsurable children under 19 years of age, further provided for definition of eligible plan, requirements for demonstration projects, including guarantee of insurance coverage for at least two years, provision of non-Federal funds, as well as further re- strictions on insurance plans, and further provided for applications for projects, evaluation of projects by Sec- retary and report to Congress, and authorization of ap- propriations for each of fiscal years 1991, 1992, and 1993. MATERNAL AND CHILD HEALTH HANDBOOK Pub. L. 101–239, title VI, § 6509, Dec. 19, 1989, 103 Stat. 2284, provided that: ‘‘(a) IN GENERAL.— ‘‘(1) DEVELOPMENT.—The Secretary of Health and Human Services shall develop a maternal and child health handbook in consultation with the National Commission to Prevent Infant Mortality and public and private organizations interested in the health and welfare of mothers and children. ‘‘(2) FIELD TESTING AND EVALUATION.—The Secretary shall complete publication of the handbook for field testing by July 1, 1990, and shall complete field test- ing and evaluation by June 1, 1991. ‘‘(3) AVAILABILITY AND DISTRIBUTION.—The Sec- retary shall make the handbook available to preg- nant women and families with young children, and shall provide copies of the handbook to maternal and child health programs (including maternal and child health clinics supported through either title V or title XIX of the Social Security Act [42 U.S.C. 701 et seq., 1396 et seq.], community and migrant health centers under sections 329 and 330 of the Public Health Service Act [former 42 U.S.C. 254b, 254c], the grant program for the homeless under section 340 of the Public Health Service Act [former 42 U.S.C. 256], the ‘WIC’ program under section 17 of the Child Nu- trition Act of 1966 [42 U.S.C. 1786], and the head start program under the Head Start Act [42 U.S.C. 9831 et seq.]) that serve high-risk women. The Secretary shall coordinate the distribution of the handbook with State maternal and child health departments, State and local public health clinics, private pro- viders of obstetric and pediatric care, and community groups where applicable. The Secretary shall make efforts to involve private entities in the distribution of the handbook under this paragraph. ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated $1,000,000 for each of fis- cal years 1991, 1992, and 1993, for carrying out the pur- poses of this section.’’ [Reference to community health center, migrant health center, public housing health center, or home- less health center considered reference to health cen- ter, see section 4(c) of Pub. L. 104–299, set out as a note under section 254b of this title.] § 702. Allotment to States and Federal set-aside (a) Special projects (1) Of the amounts appropriated under section 701(a) of this title for a fiscal year that are not in excess of $600,000,000, the Secretary shall re- tain an amount equal to 15 percent for the pur- pose of carrying out activities described in sec- tion 701(a)(2) of this title. The authority of the Secretary to enter into any contracts under this Page 2434 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 702 subchapter is effective for any fiscal year only to such extent or in such amounts as are pro- vided in appropriations Acts. (2) For purposes of paragraph (1)— (A) amounts retained by the Secretary for training shall be used to make grants to pub- lic or nonprofit private institutions of higher learning for training personnel for health care and related services for mothers and children; and (B) amounts retained by the Secretary for research shall be used to make grants to, con- tracts with, or jointly financed cooperative agreements with, public or nonprofit institu- tions of higher learning and public or non- profit private agencies and organizations en- gaged in research or in maternal and child health or programs for children with special health care needs for research projects relat- ing to maternal and child health services or services for children with special health care needs which show promise of substantial con- tribution to the advancement thereof. (3) No funds may be made available by the Secretary under this subsection or subsection (b) unless an application therefor has been sub- mitted to, and approved by, the Secretary. Such application shall be in such form, be submitted in such manner, and contain and be accom- panied by such information as the Secretary may specify. No such application may be ap- proved unless it contains assurances that the ap- plicant 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 this subchapter. (b) Excess funds; preference (1)(A) Of the amounts appropriated under sec- tion 701(a) of this title for a fiscal year in excess of $600,000,000 the Secretary shall retain an amount equal to 123⁄4 percent thereof for the projects described in subparagraphs (A) through (F) of section 701(a)(3) of this title. (B) Any amount appropriated under section 701(a) of this title for a fiscal year in excess of $600,000,000 that remains after the Secretary has retained the applicable amount (if any) under subparagraph (A) shall be retained by the Sec- retary in accordance with subsection (a) and al- located to the States in accordance with sub- section (c). (2)(A) Of the amounts retained for the purpose of carrying out activities described in section 701(a)(3)(A), (B), (C), (D) and (E) of this title, the Secretary shall provide preference to qualified applicants which demonstrate that the activi- ties to be carried out with such amounts shall be in areas with a high infant mortality rate (rel- ative to the average infant mortality rate in the United States or in the State in which the area is located). (B) In carrying out activities described in sec- tion 701(a)(3)(D) of this title, the Secretary shall not provide for developing or expanding a mater- nal and child health center unless the Secretary has received satisfactory assurances that there will be applied, towards the costs of such devel- opment or expansion, non-Federal funds in an amount at least equal to the amount of funds provided under this subchapter toward such de- velopment or expansion. (c) Allotments to States From the remaining amounts appropriated under section 701(a) of this title for any fiscal year that are not in excess of $600,000,000, the Secretary shall allot to each State which has transmitted an application for the fiscal year under section 705(a) of this title, an amount de- termined as follows: (1) The Secretary shall determine, for each State— (A)(i) the amount provided or allotted by the Secretary to the State and to entities in the State under the provisions of the con- solidated health programs (as defined in sec- tion 701(b)(1) of this title), other than for any of the projects or programs described in subsection (a), from appropriations for fiscal year 1981, (ii) the proportion that such amount for that State bears to the total of such amounts for all the States, and (B)(i) the number of low income children in the State, and (ii) the proportion that such number of children for that State bears to the total of such numbers of children for all the States. (2) Each such State shall be allotted for each fiscal year an amount equal to the sum of— (A) the amount of the allotment to the State under this subsection in fiscal year 1983, and (B) the State’s proportion (determined under paragraph (1)(B)(ii)) of the amount by which the allotment available under this subsection for all the States for that fiscal year exceeds the amount that was available under this subsection for allotment for all the States for fiscal year 1983. (d) Re-allotment of unallotted funds (1) To the extent that all the funds appro- priated under this subchapter for a fiscal year are not otherwise allotted to States either be- cause all the States have not qualified for such allotments under section 705(a) of this title for the fiscal year or because some States have indi- cated in their descriptions of activities under section 705(a) of this title that they do not in- tend to use the full amount of such allotments, such excess shall be allotted among the remain- ing States in proportion to the amount other- wise allotted to such States for the fiscal year without regard to this paragraph. (2) To the extent that all the funds appro- priated under this subchapter for a fiscal year are not otherwise allotted to States because some State allotments are offset under section 706(b)(2) of this title, such excess shall be allot- ted among the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this para- graph. (Aug. 14, 1935, ch. 531, title V, § 502, as added Pub. L. 97–35, title XXI, § 2192(a), Aug. 13, 1981, 95 Stat. 819; amended Pub. L. 99–272, title IX, § 9527(d), Apr. 7, 1986, 100 Stat. 219; Pub. L. 99–509, title IX, Page 2435 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 703 § 9441(b), Oct. 21, 1986, 100 Stat. 2071; Pub. L. 101–239, title VI, §§ 6502(a), 6503(c)(1), (4), Dec. 19, 1989, 103 Stat. 2275, 2278.) Editorial Notes PRIOR PROVISIONS A prior section 702, act Aug. 14, 1935, ch. 531, title V, § 502, as added Jan. 2, 1968, Pub. L. 90–248, title III, § 301, 81 Stat. 921; amended July 10, 1972, Pub. L. 92–345, § 1, 86 Stat. 456; July 1, 1973, Pub. L. 93–53, § 4(a)(1), (2), 87 Stat. 135, prescribed purposes for which funds were available, prior to the general revision of this subchapter by sec- tion 2192(a) of Pub. L. 97–35. For effective date, savings, and transitional provisions, see section 2194 of Pub. L. 97–35, set out as a note under section 701 of this title. Another prior section 702, acts Aug. 14, 1935, ch. 531, title V, § 502, 49 Stat. 629; Aug. 10, 1939, ch. 666, title V, § 502, 53 Stat. 1380; 1946 Reorg. Plan No. 2, § 1, eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095; Aug. 10, 1946, ch. 951, title IV, § 401(b)(2), (3), 60 Stat. 986; Aug. 28, 1950, ch. 809, title III, pt. 3, § 331(b), pt. 6, § 361(e), 64 Stat. 551, 558; Aug. 28, 1958, Pub. L. 85–840, title VI, § 602(b), (c), 72 Stat. 1055; Sept. 13, 1960, Pub. L. 86–778, title VII, § 707(a)(1)(B), (C), (b)(1)(A), 74 Stat. 995, 996; Oct. 24, 1963, Pub. L. 88–156, § 2(b), (c), 77 Stat. 273, provided for allot- ment to States for maternal and child health services, prior to the general amendment of title V of the Social Security Act by Pub. L. 90–248, § 301, and was covered by former section 703 of this title. AMENDMENTS 1989—Subsec. (a)(1). Pub. L. 101–239, § 6502(a)(1), amended first sentence generally. Prior to amendment, first sentence read as follows: ‘‘Of the amounts appro- priated under section 701(a) of this title for a fiscal year that are not in excess of $478,000,000, the Secretary shall retain an amount equal to 15 percent thereof in the case of fiscal year 1982, and an amount equal to not less than 10, nor more than 15, percent thereof in the case of each fiscal year thereafter, for the purpose of car- rying out (through grants, contracts, or otherwise) spe- cial projects of regional and national significance, training, and research and for the funding of genetic disease testing, counseling, and information develop- ment and dissemination programs and of comprehen- sive hemophilia diagnostic and treatment centers.’’ Subsec. (a)(3). Pub. L. 101–239, § 6502(a)(2), inserted ‘‘or subsection (b)’’ after ‘‘this subsection’’. Subsec. (b). Pub. L. 101–239, § 6502(a)(3), added subsec. (b). Former subsec. (b) redesignated (c). Subsec. (c). Pub. L. 101–239, § 6503(c)(4), which directed amendment of subsec. (b) by substituting ‘‘705(a)’’ for ‘‘705’’, was executed to subsec. (c) to reflect the prob- able intent of Congress and the intervening redesigna- tion of former subsec. (b) as (c) by Pub. L. 101–239, § 6502(a)(3), see below. Pub. L. 101–239, § 6503(c)(1), substituted ‘‘an applica- tion’’ for ‘‘a description of intended activities and statement of assurances’’ in introductory provisions. Pub. L. 101–239, § 6502(a)(4)(A), substituted ‘‘$600,000,000’’ for ‘‘$478,000,000’’ in introductory provi- sions. Pub. L. 101–239, § 6502(a)(3), redesignated subsec. (b) as (c) and struck out former subsec. (c) which related to special projects for children. Subsec. (c)(2). Pub. L. 101–239, § 6502(a)(4)(B), amended par. (2) generally, substituting provisions basing each State’s allotment for each fiscal year upon 1983 amounts for former provisions setting forth formulas for allotments for fiscal years 1982 and 1983 and for each year beginning with fiscal year 1984. Subsec. (d)(1). Pub. L. 101–239, § 6503(c)(4), substituted ‘‘705(a)’’ for ‘‘705’’ in two places. 1986—Subsec. (a)(1). Pub. L. 99–509, § 9441(b)(1), sub- stituted ‘‘amounts appropriated under section 701(a) of this title for a fiscal year that are not in excess of $478,000,000’’ for ‘‘amount appropriated under section 701(a) of this title’’. Subsec. (a)(2)(B). Pub. L. 99–272 substituted ‘‘pro- grams for children with special health care needs’’ for ‘‘crippled children’s programs’’ and ‘‘services for chil- dren with special health care needs’’ for ‘‘crippled chil- dren’s services’’. Subsec. (b). Pub. L. 99–509, § 9441(b)(2), inserted ‘‘that are not in excess of $478,000,000’’ in introductory provi- sions and struck out par. (3) which read as follows: ‘‘(A) To the extent that all the funds appropriated under this subchapter for a fiscal year are not other- wise allotted to States either because all the States have not qualified for such allotments under section 705 of this title for the fiscal year or because some States have indicated in their descriptions of activities under section 705 of this title that they do not intend to use the full amount of such allotments, such excess shall be allotted among the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this subparagraph. ‘‘(B) To the extent that all the funds appropriated under this subchapter for a fiscal year are not other- wise allotted to States because some State allotments are offset under section 706(b)(2) of this title, such ex- cess shall be allotted among the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this sub- paragraph.’’ Subsecs. (c), (d). Pub. L. 99–509, § 9441(b)(3), added sub- secs. (c) and (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1989 AMENDMENT Amendment by section 6502(a) of Pub. L. 101–239 ap- plicable to appropriations for fiscal years beginning with fiscal year 1990, and amendment by section 6503(c)(1), (4) of Pub. L. 101–239 applicable to payments for allotments for fiscal years beginning with fiscal year 1991, see section 6510(a), (b)(1) of Pub. L. 101–239, set out as a note under section 701 of this title. § 703. Payments to States (a) Statutory provisions applicable From the sums appropriated therefor and the allotments available under section 702(c) of this title, the Secretary shall make payments as pro- vided by section 6503(a) of title 31 to each State provided such an allotment under section 702(c) of this title, for each quarter, of an amount equal to four-sevenths of the total of the sums expended by the State during such quarter in carrying out the provisions of this subchapter. (b) Unobligated allotments Any amount payable to a State under this sub- chapter from allotments for a fiscal year which remains unobligated at the end of such year shall remain available to such State for obliga- tion during the next fiscal year. No payment may be made to a State under this subchapter from allotments for a fiscal year for expendi- tures made after the following fiscal year. (c) Reduction of payments; fair market value of supplies or equipment, value of salaries, travel expenses, etc. The Secretary, at the request of a State, may reduce the amount of payments under sub- section (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