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H.R. 3982 (97th): Omnibus Budget Reconciliation Act of 1981


The text of the bill below is as of Aug 13, 1981 (Passed Congress).

Summary of this bill

Source: Wikipedia

The Adolescent Family Life Act (AFLA) is a United States federal law enacted during the Reagan Administration as part of the Omnibus Budget Reconciliation Act of 1981 AFLA provided funding for a series of social programs aimed at promoting abstinence through reproductive health education.

This summary is from Wikipedia.


PUBLIC LAW 97-35—AUG. 13, 1981                                           95 STAT. 357
Public Law 97-35
97th Congress
                                      An Act
To provide for reconciliation pursuant to section 301 of the first concurrent resolution    Aug. 13, 1981
                        on the budget for the fiscal year 1982.                              [H.R. 3982]
                                    SHORT TITLE

   SECTION 1. This Act may be cited as the "Omnibus Budget Recon- Omnibus Budget
ciliation Act of 1981".                                           AS on98i'°"
                               TABLE OF CONTENTS
Title   I. Agriculture, forestry, and related programs.
Title   II. Armed services and defense-related programs.
Title   III. Banking, housing, and related programs.
Title   IV. District of Columbia.
Title   V. Education programs.
Title   VI. Human services programs.
Title   VII. Employment programs.
Title   VIII. School lunch and child nutrition programs.
Title   IX. Health services and facilities.
Title   X. Energy and energy-related programs.
Title   XI. Transportation and related programs.
Title   XII. Consumer product safety and communications.
Title   XIII. International affairs.
Title   XIV. Department of Interior and related programs.
Title   XV. Department of Justice and related provisions.
Title   XVI. Maritime and related programs.
Title    XVII. Civil service and postal service programs; governmental affairs
               generally.
Title   XVIII. Water resource development and economic development programs.
Title   XIX. Small business.
Title   XX. Veterans' programs.
Title   XXI. Medicare, medicaid, and maternal and child health.
Title   XXII. Federal Old-Age, Survivors, and Disability Insurance program.
Title   XXIII. Public assistance programs.
Title   XXIV. Unemployment compensation.
Title   XXV. Trade adjustment assistance.
Title   XXVI. Low-income home energy assistance.
Title   XXVII. Health professions.
                                      PURPOSE

   SEC. 2. It is the purpose of this Act to implement the recommenda-
tions which were made by specified committees of the House of
Representatives and the Senate pursuant to directions contained in
part A of title III of the first concurrent resolution on the budget for
the fiscal year 1982 (H. Con. Res. 115,97th Congress), and pursuant to
the reconciliation requirements which were imposed by such concur-
rent resolution as provided in section 310 of the Congressional Budget
Act of 1974.                                                             31 use 1331.

95 STAT. 358 PUBLIC LAW 97-35—AUG. 13, 1981 TITLE I—AGRICULTURE, FORESTRY, AND RELATED PROGRAMS Subtitle A—Food Stamp Prog^ram Reductions and Other Reductions in Authorization for Appropriations PART 1—FOOD STAMP PROGRAM REDUCTIONS FAMILY UNIT REQUIREMENT 7 use 2012. SEC. 101. Section 3(i) of the Food Stamp Act of 1977 is amended b y - CD inserting before the period at tne end of the first sentence "; except that parents and children who live together shall be treated as a group of individuals who customari^ purchase and prepare meals together for home consumption even if they do not do so, unless one of the parents is sixty years of age or older"; and (2) striking out "neither" in the second sentence and inserting "no" in lieu thereof. BOARDERS SEC. 102. Section 8(i) of the Food Stamp Act of 1977 is amended b y - CD striking out in clause (1) of the first sentence "or else pays compensation to the others for such meals,"; (2) striking out in clause (2) of the first sentence "or else live with others and pay compensation to the others for such meals"; and (3) adding before the period at the end of the second sentence ", or else live with others and pay compensation to the others for meals". ADJUSTMENT OF THE THRIFTY FOOD PLAN SEC. 103. Section 3(o) of the Food Stamp Act of 1977 is amended by striking out "and" before clause (6) and all that follows down through the end of clause (6), and inserting in lieu thereof the following: "(6) on April 1, 1982, ai^just the cost of such diet to the nearest dollar increment to reflect changes in the cost of the thrifty food plan for the fifteen months ending the preceding December 31, (7) on July 1,1983, adjust the cost of such diet to the nearest dollar increment to reflect changes in the cost of the thriffy food plan for the fifteen months ending the preceding March 31, (8) on October 1,1984, adjust the cost of such diet to the nearest dollar increment to reflect changes in the cost of the thrifty food plan for the fifteen months ending the preceding June 30, and (9) on October 1, 1985, and each October 1, thereafter, adjust the cost of such diet to the nearest dollar increment to reflect changes in the cost of the thrifty food plan for the twelve months ending the preceding June 30". GROSS INCOME ELIGIBILITY STANDARD 7 use 2014. SEC. 104. (a) Section 5 of the Food Stamp Act of 1977 is amended by- CD striking out everything before "adjusted annually" in the first sentence of subsection (c) and inserting the following: "(c) The income standards of eligibility shall be— "(1) for households contaimng a member who is sixty years of age or over or a member who receives suptplemental security 42 use 1381. income benefits under title XVI of the Social Security Act or
PUBLIC LAW 97-35—AUG. 13,1981 96 STAT. 359 disability and blindness payments under titles I, II, X, XIV, and XVI of the Social Security Act, 100 per centum, and 42 USC 30i, 40i, "(2) for all other households, 130 per centum, ^^^i' ^^^^' ^^si of the nonfarm income poverty guidelines prescribed by the Office of Management and Budget"; and (2) inserting "for purposes of determining eligibility and bene- fit levels for households described in subsection (cXD and deter- mining benefit levels only for all other households'' after "house- hold income'' in the first sentence of subsection (e). (b) Section 8(a) of the Food Stamp Act of 1977 is amended by ? use 2017. inserting "(d) and (e)" after "section 5" in the first sentence. ADJUSTMENTS OF DEDUCTIONS SEC. 105. Section 5(e) of the Food Stamp Act of 1977 is amended 7 use 2014. by- (1) striking out in the first sentence everything that follows "the Secretary shall allow a standard deduction o f and inserting in lieu thereof the following: "$85 a month for each household, except that households in Alaska, Hawaii, Guam, Puerto Rico, and the Virgin Islands of the United States shall be allowed a standard deduction of $145, $120, $170, $50, and $75, respec- tively."; (2) striking out the second sentence and inserting in lieu thereof the following: "Such standard deductions shall be ad- justed (1) on July 1,1983, to the nearest $5 increment to reflect changes in the Consumer Price Index for all urban consumers published by the Bureau of Labor Statistics, for items other than food and the homeownership component of shelter costs, as appropriately adjusted by the Bureau of Labor Statistics after consultation with the Secretary, for the fifteen months ending the preceding March 31, (2) on October 1,1984, to the nearest $5 increment to reflect such changes for the fifteen months ending the preceding June 30, and (3) on October 1, 1985, and each October 1 thereafter, to the nearest $5 increment to reflect such changes for the twelve months ending the preceding June 30."; and (3) striking out the proviso in clause (2) of the fourth sentence and inserting in lieu thereof the following: "Provided, That the amount of such excess shelter expense deduction shall not exceed $115 a month in the forty-eight contiguous States and the District of Columbia, and shall not exceed, in Alaska, Hawaii, Guam, Puerto Rico, and the Virgin Islands of the United States, $200, $165, $140, $40, and $85, respectively, ac^justed (i) on July 1, 1983, to the nearest $5 increment to reflect changes in the shelter (exclusive of homeownership costs), fuel, and utilities compo- nents of housing costs in the Consumer Price Index for all urban consumers published by the Bureau of Labor Statistics, as appropriately adjusted by the Bureau of Labor Statistics s^er consultation with the Secretary, for the fifteen months ending the preceding March 31, (ii) on October 1,1984, to the nearest $5 increment to reflect such changes for the fifteen months ending the preceding June 30, and (iii) on October 1, 1985, and each October 1 thereafter, to the nearest $5 increment to reflect such changes for the twelve months ending the preceding June 30,". -194 0—82 25:QL3
95 STAT. 360 PUBLIC LAW 97-35—AUG. 13, 1981 EARNED INCOME DEDUCTION 7 use 2014. SEC. 106. Section 5(e) of the Food Stamp Act of 1977 is amended by striking out "20 per centum" in the thini sentence and inserting in lieu thereof "18 per centum". RETROSPECTIVE ACCOUNTING SEC. 107. (a) Section 5(f) of the Food Stamp Act of 1977 is amended to read as follows: "(fKlXA) Household income for those households that, by contract for other than an hourly or piecework basis or by self-employment, derive their annual income in a period of time shorter than one year shall be calculated by averaging such income over a twelve-month period. "(B) Household income for those households that receive nonex- cluded income of the type described in subsection (dX3) of this section shsQl be calculated by averaging such income over the period for which it is received. "(2XA) Household income for migrant farmworker households shall be c^culated on a propsective basis, as provided in paragraph (3XA). "(B) Household income for all other households shall be calculated either on a prospective basis as provided in paragraph (3XA) or on a retrospective basis as provided in paragraph (3XB), as elected by the State agency under regulations prescribed by the Secretary. "(3XA) Calculation of household income on a prospective basis is the calculation of income on the basis of the income reasonably anticipated to be received by the household during the period for which eligibility or benefits are being determined. Such calculation shall be made in accordance with regulations prescribed by the Secretary which shall provide for taking into account both the income reasonably anticipated to be received by the household during the period for which eligibility or benefits are being determined and the income received by the household during the preceding thirty days. "(B) Calculation of household income on a retrospective basis is the ceilculation of income for the period for which eligibility or benefits are being determined on the basis of income received in a previous period. Such calculation shall be made in accordance with regula- tions prescribed by the Secretary which may provide for the determi- nation of eligibility on a prospective basis in some or all cases in which benefits are calculated under this paragraph. Such regulations shall provide for supplementing the initisd sdlotments of newly applying households in those cases in which the determination of income under this paragraph causes serious hardship. "(4) In promulgating regulations under this subsection, the Secre- tary shall consult with the Secretary of Health and Human Services in order to assure that, to the extent feasible and consistent with the 42 use 1305. purposes of this Act and the Social Security Act, the income of households receiving benefits under this Act and title IV-A of the 42 use 601. Social Security Act is calculated on a comparable basis under the two Acts. The Secretary is authorized, upon the request of a State agency, to waive any of the provisions of this subsection to the extent necessary to permit the State agency to calculate income for purposes of this Act on the same basis that income is calculated under title IV-A of the Social Security Act in that State.".
PUBLIC LAW 97-35—AUG. 13,1981 95 STAT. 361 (b) Effective October 1,1983, paragraph (2XB) of section 5(f) of the Food Stamp Act of 1977, as amended by subsection (a), is amended to 7 use 2014. read as follows: "(B) Household income for all other households shall be calculated on a retrospective basis as provided in paragraph (3XB).". (c) Section 5(d) of the Food Stamp Act of 1977 is amended by striking out "5(fX2)" and inserting "5(f)" in lieu thereof. PERIODIC REPORTING SEC. 108. (a) Section 3(c) of the Food Stamp Act of 1977 is amended ? use 2012. by inserting before the period at the end of the second sentence "except that the limit of twelve months may be waived by the Secretary to improve the administration of the program". (b) Section 6(c) of the Food Stamp Act of 1977 is amended by— ^ use 2015. (1) inserting after "households" in the first sentence of para- graph (1)", including all households with earned income, except migrant farmworker households, all households with potential earners, including individuals receiving unemployment compen- sation benefits and individuals required by section 6(d) of this Act to register for work, and all households required to file a similar report under title IV-A of the Social Security Act, but not 42use60i. including households that have no earned income and in which all members are sixty years of age or over or receive supplemen- tal security income benefits under title XVI of the Social Secu- 42 use 1381. rity Act or disability and blindness payments under titles I, II, X, XIV, and XVI of the Social Security Act,"; 42 use 30i, 40i, (2) strildng out "5(fX2)" in paragraph (1) and inserting "5(f)" in 1201,135i, I38i. lieu thereof; and (3) inserting after paragraph (3) the following new paragraph: "(4) Any household that fails to submit periodic reports required by paragraph (1) shall not receive an allotment for the pajmient period to which the unsubmitted report applies until such report is submit- ted.". (c) Effective October 1,1983, section 6(cXl) of the Food Stamp Act of 1977 is further amended by— 7 use 20i5. (1) striking out in the first sentence "that elect to use a system of retrospective accounting in accordance with section 5(f) of this Act"; and (2) striking out the second sentence. ELIGIBILITY OF STRIKERS SEC. 109. (a) Section 6(dX4) of the Food Stamp Act of 1977 is amended by— (1) inserting before the colon at the end of the first proviso the following: ", however, such household shall not receive an increased allotment as the result of a decrease in the income of the striking member or members of the household"; (2) inserting a period in lieu of the colon at the end of the second proviso; and (3) striking out the third proviso. (b) Section 6(i) of the Food Stamp Act of 1977 is repealed. PRORATING FIRST MONTH BENEFITS SBC. 110. Section 8 of the Food Stamp Act of 1977 is amended by 7 use 2017. adding at the end thereof the following new subsection:
95 STAT. 362 PUBLIC LAW 97-35—AUG. 13, 1981 "(c) The value of the allotment issued to any eligible household for the initial month or other initial period for which an allotment is issued shall have a value which bears the same ratio to the value of the allotment for a full month or other initial period for which the allotment is issued as the number of days (from the date of appUca- tion) remaining in the month or other initial period for which the allotment is issued bears to the total number of days in the month or "Initial month." other initio period for which the allotment is issued. As used in this subsection, the term 'initial month* means (1) the first month for wMch an allotment is issued to a household, and (2) the first month for which an allotment is issued to a household following any period of more than thirty days which such household was not participating in the food stamp program under this Act after previous participation in such program. . OUTREACH 7 use 2020. SEC. 111. (a) Section IKeXD of the Food Stamp Act of 1977 is amended by striking out clauses (A) and (B) and redesignating existing clause (C) as (B) and inserting the following new clause (A): (A) not conduct food stamp outreach activities with funds provided under this Act;". 7 use 2025. (b) Section 16(a) of that Act is amended by— (1) striking out clause (1); and (2) redesignating clauses (2), (3), (4), and (5) as clauses (1), (2), (3), and (4), respectively. DISQUALIFICATION PENALTIES FOR FRAUD AND MISREPRESENTATION 7 use 2015. SEC. 112. Section 6(b) of the Food Stamp Act of 1977 is amended to read as follows: "(bXD Anjr person who has been found by any State or Federal court or administrative agency to have intentionally (A) made a false or misleading statement, or misrepresented, concealed or withheld facts, or (B) committed any act that constitutes a violation of this Act, the regulations issued thereunder, or any State statute, for the purpose of using, presenting, transferring, acquiring, receiving, or possessing coupons or authorization cards shall, immediately upon the rendering of such determination, become ineligible for mrther participation in the program— (i) for a period of six months upon the first occasion of any such determination; "(ii) for a period of one year upon the second occasion of any such determination; and "(iii) permanently upon the third occasion of any such determi- nation. During the period of such ineligibility, no household shall receive increased benefits under this Act as the result of a member of such household having been disqualified under this subsection. "(2) Each State agency shall proceed against an individual alleged to have engaged in such activity eitiier by way of administrative hearings, a£ter notice and an opportunity for a hearing at the State level, or by referring such matters to appropriate authorities for civil or criminal action in a court of law. "(3) Such periods of ineligibili^ as are provided for in par^raph (1) of this subsection shall remain in enect, without possibility of administrative stay, unless and until the finding upon which the ineligibility is based is subsequently reversed by a court of appropri-
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 363 ate jurisdiction, but in no event shall the period of ineligibility be subject to review. "(4) The Secretary shall prescribe such regulations as the Secretary Regulations. may deem appropriate to ensure that information concerning any such determination with respect to a specific individual is forwarded to the Office of the Secretary by any appropriate State or Federal entity for the use of the Secreta^ in administering the provisions of this section. No State shall withhold such information from the Secretsury or the Secretary's designee for any reason whatsoever.". WAIVING AND OFFSETTING CLAIMS; IMPROVED RECOVERY OF OVERPAYMENTS SEC. 113. (a) Section 13 of the Food Stamp Act of 1977 is amended 7 use 2022. by- CD inserting "(a)" immediately after the section designation; (2) inserting before the period at the end of the first sentence ", including the power to waive claims if the Secretary determines that to do so would serve the purposes of this Act"; (3) adding the following new sentence at the end thereof: "The Secretary shall have the power to reduce amounts otherwise due to a State agency under section 16 of this Act to collect unpaid 7 use 2025. claims assessed against the State agency if the State agency has declined or exhausted its appeal rights under section 14 of this Act."; and 7 use 2023. (4) adding the following new subsection at the end thereof: "(b)(1) In the case of any ineligibility determination under section 6(b) of this Act, the household of which such inelmble individual is a member is required to agree to a reduction in the allotment of the household of which such individual is a member, or payment in cash, in accordance with a schedule determined by the Secretary, that will be sufficient to reimburse the Federal Government for the value of any overissuance of coupons resulting from the activity that was the basis of the ineligibility determination. If a household refuses to make an election, or elects to make a payment in cash under the provisions of the preceding sentence and fsSls to do so, the household shall be subject to an allotment reduction. "(2) State agencies shall collect any claim against a household arising from the overissuance of coupons, other than claims the collection of which is provided for in paragraph (1) of this subsection and claims arising from an error of the State agency, by reducing the monthly allotments of the household. These collections shall be limited to 10 per centum of the monthly allotment (or $10 per month, whenever that would result in a faster collection rate).". (b) The heading of section 13 of the Food Stamp Act of 1977 is 7 use 2022. amended to read COLLECTION AND DISPOSITION OF CLAIMS". STATES' SHARE OF COLLECTED CLAIMS SEC. 114. Section 16(a) of the Food Stamp Act of 1977 is amended ? use 2025. by- (1) striking out in the first sentence "through prosecutions" and all that follows down through the end of the sentence and inserting in lieu thereof "pursuant to section 13(bXl) of this Act Supra. and 25 per centum of the value of all funds or allotments recovered or collected pursuant to section 13(bX2) of this Act."; Supra. and
95 STAT. 364 PUBLIC LAW 97-35—AUG. 13, 1981 (2) striking out in the second sentence "fraud" and inserting in lieu thereof ineligibility". REPEAL OF INCREASES IN DEPENDENT CARE DEDUCTIONS FOR WORKING ADULTS AND MEDICAL DEDUCTIONS FOR THE ELDERLY AND DISABLED Repeals. SEC. 115. Sections 104 and 105 of the Food Stamp Act Amendments 7 if^ySand ^^ ^^^^ (Public Law 96-249) are repealed. note. PUERTO RICO BLOCK GRANT SEC. 116. (a) Effective July 1,1982, the Food Stamp Act of 1977 is amended b y ^ (1) striking out "Puerto Rico/' in section 3(m), clause (3) of 5 use 2012, section 3(o), section 5(b), wherever it appears in section 5(c), and 1 i i r. QCQ wherever it appears in section 5(e); and striking out "$50," and Ante, p. 359. « ^ Q „ ^ ^ ^ . ^ ^ g^^^. ^ ^ (2) adding at the end thereof tiie following new section: " B L O C K GRANT 7 use 2028. "SEC. 19. (aXlXA) From the sums appropriated under this Act the Secretary shall, subject to the provisions of this subsection and subsection (b), pay to the Commonwealth of Puerto Rico not to exceed $825,000,000 for each fiscal year to finance 100 per centum of the expenditures for food assistance provided to needy persons, and 50 per centum of the administrative expenses related to the provision of such assistance. "(B) The payments to the Commonwealth for any fiscal year shall not exceed the expenditures by that jurisdiction during that year for the provision of m e assistance the provision of which is included in the plan of the Commonwealth approved under subsection (b) and 50 per centum of the related administrative expenses. "(2) The Secretary shall, subject to the provisions of subsection Oi>), pay to the Commonwealth for me applicable fiscal year, at such times and in such manner as the Secretary may determine, the amount estimated bjr the Commonwealth pursuant to subsection (bXlXAXiv), reduced or increased to the extent of any prior overpayment or current under^yment which the Secretary determines has been made under tms section and with respect to which acijustment has not already been made under this subsection. "(bXlXA) In order to receive payments under this Act for any fiscal year, the Commonwealth shall have a plan for that fiscal year approved by the Secretary under tins section. By July 1 of each year, if the Commonwealth wishes to receive payments, it shall submit a plan for the provision of the assistance described in subsection (aXlXA) for the following fiscal year which— "(i) desi^ates a single agen(^ which shall be responsible for the administration, or supervision of the administration, of the program for the provision of such assistance; "(ii) assesses the food and nutrition needs of needy persons residing in the Commonwealth; "(iii) describes the program for the provision of such assistance, including the assistance to be provided and the persons to whom such assistance will be provided, and any agencies designated to provide such assistance, which program must meet such require- ments as the Secretary may hy r^^ulation prescribe for the
PUBLIC LAW 97-35—AUG. 13,1981 95 STAT. 366 purpose of assuring that assistance is provided to the most needy persons in the jurisdiction; "(iv) estimates the amoimt of expenditures necessary for the provision of the assistance described in the program and related administrative expenses, up to the amount provided for payment by subsection (aXlXA); and "(v) includes such other information as the Secretary may require. "(BXi) The Secretary shall approve or disapprove any plan sub- mitted pursuant to subparagr^h (A) no later than August 1 of the year in which it is submitted. Ine Secretary shall approve any plan which complies with the requirements of subparagraph (A). If a plan is disapproved because it does not comply with any of the require- ments of that paragraph the Secretary shall, except as provided in subparagraph (BXii), notify the appropriate agency in the C!ommon- wealth that payments will not be made to it under subsection (a) for the fiscal year to which the plan applies until the Secretary is satisfied that there is no longer amr such failure to comply, and until the Secretary is so satisfied, the Secretary will make no pa3nnents. "(ii) The Secretary may suspend the denial of payments under subparagraph (BXi) for such period as the Secretary determines appropriate and instead withhold payments provided for under subsection (a), in whole or in part, for the fiscal vear to which the plan applies, until the Secretary is satisfied that tnere is no longer any failure to comply with the requirements of subparagraph (A), at which time such withheld payments shall be paid. "(2XA) The Commonwealth shall provide for a biennial audit of expenditures under its program for the provision of the assistance described in subsection (aXlXA), and within 120 days of the end of each fiscal year in which the audit is made, shall report to the Secretary the findings of such audit. "(B) Within 120 days of the end of the fiscal year, the Common- wealth shall provide the Secretary with a statement as to whether the pa5mients received under subsection (a) for that fiscal year exceeded the expenditures by it during that year for which payment is authorized under this section, and if so, by how much, and such other information as the Secretary may require. "(CXi) If the Secretary finds that there is a substantial failure by the Commonwealth to comply with any of the requirements of subparagraphs (A) and (B), or to comply with the requirements of subsection (bXlXA) in the administration of a plan approved under subsection (bXlXB), the Secretary shall, except as provided in subpar- agraph (CXii), notify the appropriate agency in the Commonwealth that further payments will not be made to it under subsection (a) until the Secretary is satisfied that there will no longer be any such failure to comply, and until the Secretary is so satisfied, the Secretary shall make no further payments. "(ii) The Secretary may suspend the termination of payments under subparagraph (CXi) for such period as the Secretary deter- mines appropriate, and instead withhold pa3m[ients provided for under subsection (a), in whole or in part, until the Secretary is satisfied that there will no longer be any failure to comply with the requirements of subparagraphs (A) and (B) and subsection (bXlXA), at which time such withheld pajnnents shall be paid, "(iii) Upon a finding under subparagraph (CXi) of a substantial failure to comply with any of the requirements of subparagraphs (A) and (B) and subsection (bXlXA), the Secretary may, in addition to or in lieu of any action taken under subparagraphs (C)(i) and (CXii), refer
95 STAT. 366 PUBLIC LAW 97-35—AUG. 13, 1981 the matter to the Attorney General with a request that injunctive relief be sought to require compliance by the Commonwealth of Puerto Rico, and upon suit Iw the Attorney General in an appropriate district court of the United States and a snowing that noncompliance has occurred, appropriate injunctive relief shall issue. "(cXD The Secretary shall provide for the review of the programs for the provision of the assistance described in subsection (aXlXA) for which payments £ire made under this Act. "(2) The Secretary is authorized as the Secretary deems practicable to provide technics! assistance with respect to the programs for the provision of the assistance described in subsection (aXlXA). Violation; "(d) Whoever knowingly and willfully embezzles, misapplies, steals, penalty. or obtains by fraud, false statement, or forgery, any fimds, assets, or property provided or financed under this section shall be fined not more than $10,000 or imprisoned for not more than five years, or both, but if the value of the funds, assets or property involved is not over $200, the penalty shall be a fine of not more than $1,000 or imprisonment for not more than one year, or both.". 7 u s e 2028 (b) Notwithstanding the provisions of section 19 of the Food Stamp note. Act of 1977, as added by this section— (1) the amount payable to the Commonwealth of Puerto Rico under section 19 for fiscal year 1982 shall be $206,500,000, and the Secretary of Agriculture is authorized to ^ a n t such waivers of the requirements imposed by that section with respect to that fiscal year as the Secretary determines appropriate to carry out the purposes of that section; and Plan, sub- (2) in order to receive the amounts payable under this subsec- mittal to tion or section 19 for fiscal years 1982 and 1983, the Common- Secretary. wealth shall submit, for the Secretary's approval, the plan required by the provisions of subsection Qji) of section 19 by April 1,1982. EFFECTIVE DATES 7 u s e 2012 SEC. 117. Except as otherwise specifically provided, the eimend- note. ments made by sections 101 through 116 of this Act shall be effective and implemented upon such dates as the Secretary of Agriculture may prescribe, taking into account the need for orderly implementa- tion. PART 2—OTHER REDUCTIONS IN AUTHORIZATIONS FOR APPROPRIATIONS AGRICULTURAL AND RELATED PROGRAMS SEC. 120. Notwithstanding any other provision of law, there are hereby authorized to be appropriated for the programs designated below not to exceed the sums shown for each of the fiscal years 1982, 1983, and 1984. AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE DAIRY AND BEEKEEPER INDEMNITY PROGRAMS 7 u s e 450j For necessary expenses involved in making indemnity payments to note. dairy farmers under the Act of August 13, 1968 (7 U.S.C. 450j): $200,000 for fiscal year 1982, $200,000 for fiscal year 1983, and $200,000 forfiscalyear 1984.
PUBLIC L A W 97-35—AUG. 13, 1981 95 STAT. 367 AGRICULTURAL MARKETING SERVICE PAYMENTS TO STATES AND POSSESSIONS For pavments to departments of agriculture, bureaus and deijart- 7 use 1623 note. ments of markets, and similar agencies for marketing activities under section 204(b) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1623(b)): $1,571,000 for fiscal year 1982, $1,651,000 for fiscal year 1983, and $1,723,000 for fiscal year 1984. FARMERS HOME ADMINISTRATION RURAL C O M M U N I T Y FIRE PROTECTION GRANTS For grants pursuant to section 7 of the Cooperative Forestry 16USC2106 Assistance Act of 1978 (Public Law 95-313): $3,565,000 for fiscal year "ff-^^ ^^ ^^ 1982, $3,821,000 for fiscal year 1983, and $4,038,000 for fiscal year ^^ "SC 2106. 1984. RURAL DEVELOPMENT PLANNING GRANTS For rural development planning grants pursuant to section 7 use 1926 note. 306(aXll) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(aXll)): $4,767,000 for fiscal year 1982, $4,959,000 for fiscal 94 stat. 1174. year 1983, and $5,155,000 for fiscal year 1984. RURAL DEVELOPMENT GRANTS For grants pursuant to section 310B(c) of the Consolidated Farm 7 use 1932 note. and Rural Development Act (7 U.S.C. 1932): $5,007,000 for fiscal year 1982, $5,280,000 for fiscal year 1983, and $5,553,000 for fiscal year 1984. SOIL CONSERVATION SERVICE For necessary expenses for carrying out the programs adminis- 16 use 590f tered by the Soil Conservation Service: $588,875,000 for fiscal year "^^^^ 1982, $596,767,000 for fiscal year 1983, and $602,865,000 for fiscal year 1984. AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE AGRICULTURAL CONSERVATION PROGRAM For necessary expenses to carrv into effect the program authorized I6 use 1510 in sections 7 to 15,16(a), and 17 of the Soil Conservation and Elomestic °°^® Allotment Act (16 U.S.C. 590g-590o, 590p(a), and 590q), and sections 1001-1008, and 1010 of the Agricultural Act of 1970, as added by the Agriculture and Consumer Protection Act of 1973 (16 U.S.C. 1501-1508, and 1510): $201,325,000 for fiscal year 1982, $209,647,000 for fiscal year 1983, and $218,216,000 for fiscal year 1984. FORESTRY INCENTIVES PROGRAM For necessary expenses, not otherwise provided for, to carry out the 16 use 2103 program of forestry incentives, as authorized in the Cooperative "°*® Forestry Assistance Act of 1978 (16 U.S.C. 2101): $15,090,000 for fiscal year 1982, $16,913,000 for fiscal year 1983, and $18,314,000 for fiscal year 1984.
95 STAT. 368 PUBLIC LAW 97-35—AUG. 13, 1981 WATER BANK PROGRAM 16 use 1310 For necessary expenses to carry into effect the provisions of the "°*^ Water Bank Act (16 U.S.C. 1301-1311): $10,876,000 for fiscal year 1982, $10,854,000 for fiscal year 1983, and $10,813,000 for fiscal year 1984. EMERGENCY CONSERVATION PROGRAM 16 use 2204 For necessary expenses to carry into effect the program authorized ^°^- in sections 401,402, and 404 of title IV of the Agricultural Credit Act of 1978 (16 U.S.C. 2201-2205): $10,069,000 for fiscal year 1982, $10,507,000 for fiscal year 1983, and $10,958,000 for fiscal year 1984. WATER AND WASTE GRANTS SEC. 121. Section 306(aX2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926 (aX2)) is amended by striking out the period at the end of the first sentence and inserting in lieu thereof a colon and the following: "Provided, That for fiscal years commencing after September 30,1981, such grants may not exceed $154,900,000 in any fiscal year.". FOREST SERVICE 16 use 580o. SEC. 122. Notwithstanding any other provision of law, there are hereby authorized to be appropriated for the necessary expenses of the Forest Service for carrying out the programs for Forest Research, State and Private Forestry, and National Forest System under the appropriations account for Forest Management, Protection, and Utilization, and the programs under the appropriations account for Construction and Land Acquisition: $1,575,552,000 for fiscal year 1981; $1,498,000,000 for fiscal year 1982; $1,560,000,000 for fiscal year 1983; and $1,620,000,000 for fiscal year 1984: Provided, That none of the funds authorized to be appropriated hereby may be used for carrying out the Bald Moimtsdn road in the Siskiyou National Forest. ASSISTANCE TO LAND-GRANT COLLEGES 7 use 322 note. SEC. 123. There are authorized to be appropriated for the purpose of providing assistance to land-grant colleges under the Act of August 30,1890 (commonly referred to as the "Second Morrill Act") and the Act of March 4,1907 (7 U.S.C. 322), not to exceed $2,800,000 for the fiscal year 1981; not to exceed $2,800,000 for the fiscal year 1982; not to exceed $2,8()0,000 for the fiscal year 1983; and not to exceed $2,800,000 for the fiscal year 1984. PUBUC LAW 480 APPROPRIATION UMITS 7 use 1733 note. SEC. 124. Notwithstanding any other provision of law, programs shall not be undertaken under title I (including title III) and title II of '7 use 1701, the Agricultural Trade Development and Assistance Act of 1954 1721,1427. during any calendar year which call for an appropriation of more than $1,304,836,000 for the fiscal year 1982; $1,320,292,000 for the fiscal year 1983; and $1,402,278,000 for the fiscal year 1984.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 369 PART 3—DEPARTMENT OF AGRICULTURE PERSONNEL ESTABLISHMENT OF PERSONNEL CEILING SEC. 125. Notwithstanding any other provision of law, the total full- 7 u s e 2201 note. time equivalent staff year personnel ceiling for the United States Department of Agriculture shall not exceed one hundred and seven- teen thousand staff years (including overtime) for each of the fiscal years ending September 30,1982, September 30,1983, and September 30,1984. Subtitle B—Reduction in Direct Spending PART 1—COMMODITY CREDIT CORPORATION PROGRAMS MILK PRICE SUPPORT SEC. 150. Effective October 1,1981, section 201 of the Agricultural Act of 1949 is amended by— 7 u s e 1446. (1) striking out the second sentence of subsection (c) and inserting in lieu thereof the following: "Notwithstanding the foregoing, effective for the period beginning October 1,1981, and ending September 30, 1985, the price of milk for the marketing year beginning on October 1 of each year shall be supported at a level determined according to the following procedure: The Net Government Secretary shall estimate Government price support purchases purchases, estimate. net of sales for unrestricted use for the marketing year using the amount of such purchases made during the most recent six- month period adjusted to an annual level on the basis of the most recent ten year experience. The Secretary shall adjust this Adjustment estimate of net Government purchases to reflect the effect of current and expected availability of feed, feed prices, milk-feed price ratio, utility cow prices, dairy cow numbers and dairy heifer replacement stocks on milk production during the market- ing year. After making this final estimate, the Secretary shall support the price of milk at not less than the level indicated by the following schedule, nor more than 90 per centum of the parity price therefor: The higher of anticipated annual rate of net Government purchases "Price as percent of parity Milk equivalent (butterfat Nonfat dry milk (million basis) of butter and cheese pounds) (billion pounds) 75, more than 500 5.5 or more. 76 450-499.9 5.0-5.499. 77, 400-449.9 4.5-4.999. 78, 350-399.9 4.0-4.499. 79, 300-349.9 3.5-3.999. 80 250-299.9 3.0-3.499. 81 200-249.9 2.5-2.999. 82, 150-199.9 2.0-2.499. 83 100-149.9 1.5-1.999. 84 50-99.9 1.0-1.499. 85, less than 50 less than 1.0.
95 STAT. 370 PUBLIC LAW 97-35—AUG. 13, 1981 In no event shall the support price be less than the dollar amount of the support price then currently in effect for milk: Provided, That if the Secretary determines that the inventory of dairy products, at the end of the marketing year, exceeds five hundred million pounds of nonfat dry milk or five and one-half billion pounds milk equivalent of butter and cheese, the support price for the next marketing year shall be established at the minimum level indicated by this schedule based upon estimated Govern- ment price support purchases net of sales for unrestricted use for Notification suchvear. The Secretary shall notify, in writing, the chairman of to congres- the Innate Committee on Agriculture, Nutrition, and Forestry sional com- mittees. and the chairman of the House Committee on Agriculture of the Secretary's decision and reasons therefor thirty days prior to the effective date of the new support level. Notwithstanding the foregoing, if during any marketing year dairy product imports into the United States are incrased as the result of an expansion of imports or termination of import restraints established pursu- 7 u s e 624. ant to section 22 of the Agricultural Adjustment Act, the support price shall be redetermined by reducing the final estimate of net Government purchases by the milk equivalent (butterfat bsisis) of dairv products or nonfat dry milk or its equivalent of other products derived from such increased imports. The increased support price so determined shall become effective simultaneous- ly with the announcement of the expansion of dairy product imports. A similar reduction in the net Government purchases for the marketing year in which the imports are entered into the United States shall be made when determining the support price level for subsequent years."; and (2) inserting a new subsection (d) as follows: Effective "(d) Effective for the period beginning October 1,1982, and ending date. on September 30,1985, the support price of milk shall be adjusted by the Secretary at the beginning of each semiannual period to reflect any estimated change in the parity index during said semiannual period. If a review of net Government purchases as provided for in subsection (c) indicates that purchases during the most recent six- month period are being made at an annual rate exceeding five and one-half billion poun(& milk equivalent Ot)utterfat basis), or five hundred million pounds of nonfat dry milk, the support price of milk need not be adjusted unless such adjustment is necessaiy to prevent a support price at less than 75 per centum of parity as determined at Notification the beginning of the semiannual period. The Secretary shall notify, in to congressional writing, the chairman of the Senate Committee on Agriculture, committees. Nutrition, and Forestry and the chairman of the House Committee on Agriculture of the Secretary's decision and the reasons therefor thirty days prior to the effective date of such semiannual ac^ust- ment.". FARM STORAGE FACILITY LOANS SEC. 151. Section 4(h) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714b(h)) is amended by striking out from the fourth proviso of the second sentence "shall make loans" and inserting in lieu thereof "may make loans". REDUCTION IN CCC ADMINISTRATIVE EXPENSE LIMITATION 15 use 7i3a-io. SEC. 152. Not to excoed $52,000,000 shall be available for the fiscal year ending September 30,1982, for administrative expenses of the Commodity Credit Corporation, within the limits of funds and bor-
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 371 rowing authority available to the CJorporation as may be necessary in carrying out the programs set forth in the budget for the CJorporation. PART 2-COMMODITY INSPECTION FEES GRAIN INSPECTION AND WEIGHING SEC. 155. Effective for the period October 1,1981, through Septem- 7 u s e 79 note. ber 30, 1984, inclusive, the United States Grain Standards Act is 7 use 71. amended by— (1) amending section 7(j) (7 U.S.C. 79(j)) to read as follows: "(jXl) The Administrator shall, under such regulations as the Administrator may prescribe, charge and collect reasonable inspec- tion fees to cover the estimated cost to the Service incident to the performance of official inspection except when the official inspection is performed by a designated official agency or by a State under a delegation of authority. The fees authorized by this subsection shall, as nearly as practicable and after taking into consideration any proceeds from the sale of samples, cover the costs of the Service incident to its performance of official inspection services in the United States and on United States grain in Canadian ports, includ- ing administrative and supervisory costs related to such official inspection of grain. Such fees, and the proceeds from the sale of samples obtained for purposes of official inspection which become the property of the United States, shall be deposited into a fund which shall be available without fiscal year limitation for the expenses of the Service incident to providing services under this Act. "(2) Each designated official agency and each State agency to which authority has been delegated under subsection (e) of this section shall pay to the Administrator fees in such amount as the Administrator determines fair and reasonable and as will cover the estimated costs incurred by the Service relating to supervision of official agency personnel and supervision by Service personnel of its field office personnel, except costs incurred under paragraph (3) of subsection (g) of this section and sections 9,10, and 14 of this Act. The fees shall be 7 u s e 85, 86, payable after the services are performed at such times as specified by 87c. the Administrator and shall be deposited in the fund created in paragraph (1) of this subsection. Failure to pay the fee within thirty Overdue days after it is due shall result in automatic termination of the fee. delegation or designation, which sheill be reinstated upon payment, within such period as specified by the Administrator, of the fee currently due plus interest and any further expenses incurred by the Service because of such termination. The interest rate on overdue Interest fees shall be as prescribed by the Secretary, but not less than the rate. current average market yield on outstanding marketable obligations of the United States of comparable maturity, plus an additional charge of not to exceed 1 per centum per annum as determined by the Secretary and adjusted to the nearest one-eighth of 1 per centum."; (2) amending section 7A(1) (7 U.S.C. 79a(l)) to read as follows: "(IXD The Administrator shall, under such regulations as the Administrator may prescribe, charge and collect reasonable fees to cover the estimated costs to the Service incident to the performance of the functions provided for under this section except as otherwise provided in paragraph (2) of this subsection. The fees authorized by this paragraph shall, as nearly as practicable, cover the costs of the service incident to performance of its functions related to weighing, including administrative and supervisory costs directly related
95 STAT. 372 PUBLIC LAW 97-35—AUG. 13, 1981 thereto. Such fees shall be deposited into the fund created in section 7(j) of this Act. "(2) Each agency to which authority has been delegated under this section and each agency or other person which has been designated to perform functions related to weighing under this section shall pay to the Administrator fees in such amount as the Administrator deter- mines fair and reasonable and as will cover the costs incurred by the Service relating to supervision of the agency personnel and supervi- sion by Service personnel of its field office personnel incurred as a result of the functions performed by such agencies, except costs 7 u s e 79, 85, 86 incurred under sections 7(gX3), 9,10, and 14 of this Act. The fees shall 87c. be payable after the services are performed at such times as specified by the Administrator and shall be deposited in the fund created in Overdue section 7(j) of this Act. Failure to pay the fee within thirty dajrs after fees. it is due shall result in automatic termination of the delegation or designation, which shall be reinstated upon pa3mient, within such period as specified by the Administrator, of the fee currently due plus interest and any further expenses incurred by the Service because of Interest such termination. The interest rate on overdue fees shall be as rate. prescribed by the Secretary, but not less than the current average market jdeld on outstanding marketable obligations of the United States of comparable maturity, plus an additional charge of not to exceed 1 per centum per annum as determined by the Secretary, and adjusted to the nearest one-eighth of 1 per centum."; (3) adding a new section 7C as follows: LIMITATION ON ADMINISTRATIVE AND SURPERVISORY COSTS 7 use 79c. "SEC. 7C. The total administrative and supervisory costs which may be incurred under this Act for inspection and weighing (exclud- ing standardization, compliance, and foreign monitoring activities) for each of the fiscal years 1982 through 1984 shall not exceed 35 per centum of the total costs for such activities carried out by the Service for such year."; (4) amending section 19 (7 U.S.C. 87h) to read as follows: APPROPRIATIONS "SEC. 19. There are hereby authorized to be appropriated such sums as are necessary for standardization and compliance activities, monitoring in foreign ports grain officially in^)ected and weighed under this Act, and any other expenses necessary to carry out the provisions of this Act for each of the fiscal years during the period beginning October 1, 1981, and ending September 30, 1984, to the extent that financing is not obtained from fees and sales of samples as 7 u s e 79, 79a, provided for in sections 7,7A, and 17A of this Act."; and 87f-l. (5) adding a new section 20 as follows: ADVISORY COMMITTEE Establishment. "SEC. 20. (a) In order to assure the normal movement of grain in an 7 use 87i. orderly and timely manner, the Secretary shall establish an advisory committee to provide advice to the Administrator with respect to the efficient and economical implementation of the United States Grain 7 u s e 71 note. Standards Act of 1976. The advisory committee shall consist of not more than twelve members, appointed bj^ the Secretary, representing the interests of all segments of the grain industry, including grain inspection and weighing agencies. Members of the advisory commit-
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 373 tee shall be appointed not later than thirty days after the date of enactment of this section. "0)) The advisory committee shall be governed by the provisions of the Federal Advisory Committee Act. 5 use app. "(c) The Administrator shall provide the advisory committee with necessary clerical assistance and staff personnel. "(d) Members of the advisory committee shall serve without com- pensation, if not otherwise officers or employees of the United States, except that members shall, while away from their homes or regular places of business in the performance of services under this Act, be allowed travel expenses, including per diem in lieu of subsistence, as authorized under section 5703 of title 5, United States Code.". COTTON CLASSING AND RELATED SERVICES SEC. 156. (a) Section 5 of the United States Cotton Standards Act (7 U.S.C. 55) is amended to read as follows: "SEC. 5. (a) The Secretary of Agriculture shall cause to be collected Fees and such fees and charges for licenses issued to classifiers of cotton under charges. section 3 of this Act, for determinations made under section 4 of this ^ use 53, 54. Act, and for the establishment of standards and sale of copies of standards under section 6 of this Act, as will cover, as nearly as 7 use 56, 57, practicable, and after taking into consideration net proceeds from ^^^ any sale of samples, the costs incident to providing services and standards under such sections, including administrative and supervi- sory costs. Such fees and charges shall be credited to the current appropriation account that incurs the cost and shall remain available until expended to pay the expenses of the Secretary incident to providing services and standards under this Act and the United States Cotton Futures Act (7 U.S.C. 15b). The Secretary may provide by regulation conditions under which cotton samples submitted or used in the performance of services authorized by this Act shall become the property of the United States and may be sold with the proceeds credited to the foregoing account: Provided, That such cotton samples shall not be subject to the provisions of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.). (b) The price established by the Secretary of Agriculture under the foregoing provisions of this section for practical forms representing the official cotton standards of the United States shall cover, as nearly as practicable, the estimated actual cost to the Department of Agriculture for developing and preparing such practical forms.". (b) Effective only for the fiscal years ending September 30, 1982, September 30,1983, and September 30,1984, section 3a of the Cotton Statistics and Estimates Act (7 U.S.C. 473a) is amended to read as follows: "SEC. 3a. Effective for the fiscal years ending September 30,1982, September 30,1983, and September 30,1984, the Secretary of Agricul- ture shall make cotton classification services available to producers of cotton. The Secretary shall further provide for appropriate agen- cies of the Department of Agriculture to collect directly from partici- pating producers reasonable fees which, together with the proceeds of sales of samples submitted under this section, shall cover as nearly as practicable the cost of the services provided under this section, including administrative and supervisory costs: Provided, That the Secretary's net cost estimate (after taking into account the proceeds from the sale of samples) used to calculate the uniform per-bale fee to be collected from producers for such classification services shall not
95 STAT. 374 PUBLIC LAW 97-35—AUG. 13, 1981 exceed $12,000,000 in the fiscal year ending September 30, 1982, $12,400,000 in the fiscal year ending September 30, 1983, and $13,000,000 in the fiscal year ending September 30,1984. All samples of cotton submitted for classification under this section shall become the property of the United States, and shall be sold: Provided, That such cotton samples shall not be suWect to the provisions of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.). Fees collected under this section and under section 3d of this Act and proceeds from sales of samples shall be credited to the current appropriation account that incurs the cost and shall remain available without fiscal year limitation to pay the expenses of the Secretary incident to providing classification services under this section. The Secretary may deposit such funds in an interest bearing account with a financial institution. If any interest is earned on this account, such interest so earned shall be credited to the account for Appropriation use by the Secretary in providing such services. There are authorized authorization. to be appropriated such sums as may be necessary to carry out the provisions of this section to the extent that financing is not available from fees and the proceeds from the sale of samples.". (c) Subsection (f)(1)(G) of the United States Cotton Futures Act (7 U.S.C. 15b(f)(l)(G)) is amended by striking out "in such regulations." and inserting in lieu thereof "in such regulations and shall be credited to the account referred to in section 5 of the United States Ante, p. 373. Cotton Standards Act (7 U.S.C. 55). The Secretary may provide by regulation conditions under which cotton samples submitted or used in the performance of services authorized by this act shall become the property of the United States and may be sold and the proceeds credited to the foregoing account: Provided, That such cotton samples shall not be subject to the provisions of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.).". Meetings. (d) The Secretary of Agriculture shall hold annual meetings with 7 u s e 61a. representatives of the cotton industry to review (1) activities and 7 use 51, operations under the Cotton Standards Act, and the Cotton Statistics 471 note. and Estimates Act, (2) activities and operations relating to cotton 7 u s e 241. under the United States Warehouse Act, and (3) the effect of such activities and operations on prices received by producers and sales to domestic and foreign users, for the purpose of improving procedures for financing and administering such activities and operations for the benefit of the industry and the Government. Notwithstanding any other provision of law, the Secretary shall take such action as may be necessary to insure that the universal cotton standards system and the licensing and inspection procedures for cotton warehouses are preserved and that the Government cotton classification system continues to operate so that the United States cotton crop is provided an official quality description. Effective (e) The provisions of this section shall become effective October 1, date. 1981. 7 u s e 61a note. TOBACCO INSPECTION AND RELATED SERVICES SEC. 157. (a) The Tobacco Inspection Act is amended by— Fees and (1) in section 5 (7 U.S.C. 51 Id), striking out the last two charges. sentences and inserting in lieu thereof the following: "The Secretary shall by regulation fix and collect fees and charges for inspection and certification, the establishment of standards, and other services under this section at designated auction markets. The fees and charges authorized by this section shall, as nearly as practicable, cover the costs of the services, including the administrative and supervisory costs customarily included by the
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 375 Secretary in user fee calculations. The fees and charges, when collected, shall be credited to the current appropriation account that incurs the cost and shall be available without fiscal year limitation to pay the expenses of the Secretary incident to providing services under this Act, Such fees and charges shall be assessed against the warehouse operator, irrespective of owner- ship or interest in the tobacco, and shall be collected by the warehouse operator from the sellers of the tobacco. The inspec- tion and related services under this section shall be suspended or denied if the warehouse operator fails to collect or otherwise pay the fees and charges imposed under this section. Tobacco inspec- tion or certification services provided to designated auction markets shall take precedence over such services, other than reinspection, requested under the authority contained in section 6 of this Act or any other provision of law. In accordance with the Federal Advisory Committee Act, the Secretary shall establish a 5 use app national advisory committee of tobacco producers, and advisory subcommittees for each major kind of tobacco, to advise the Secretary with regard to the level of inspection and related services and the fees and charges therefor. The advisory commit- tee and subcommittees established under this section shall be of permanent duration. The committees shall meet at the call of the Secretary."; and (2) in section 6 (7 U.S.C. 51 le), amending the first sentence of the second paragraph as follows: "The Secretary shall fix and collect such fees or charges in the administration of this section as will cover, as nearly as practicable, the costs of the services provided, including administrative and supervisory costs. Such fees and charges shall be credited to the account referred to in section 5 of this Act.". 5 use Slid. GD) The provisions of this section shall become effective October 1, Effective 1981. date. WAREHOUSE EXAMINATION, INSPECTION, AND UCENSING 7 u s e 51 Id note. SEC. 158. (a) The United States Warehouse Act is amended by— (1) amending section 10 (7 U.S.C. 251) to read as follows: "SEC. 10. The Secretary of Agriculture, or the Secretary's designat- Fees, collection. ed representative, shall charge, assess, and cause to be collected a reasonable fee for (1) each examination or inspection of a warehouse (including the physical facilities and records thereof and the agricul- tural products therein) under this Act; (2) each license issued to any person to classify, inspect, grade, sample, or weigh agricultural products stored or to be stored under provisions of this Act; (3) each annual warehouse license issued to a warehouseman to conduct a warehouse under this Act; and (4) each warehouse license amended, modified, extended, or reinstated under this Act. Such fees shall cover, as nearly as practicable, the costs of providing such services and licenses, including administrative and supervisory costs: Pro- vided, That the amount of such fees collected for cotton warehouse inspections shall not exceed $400,000 in the fiscal year ending September 30,1982, $415,000 in the fiscal year ending September 30, 1983, and $430,000 in the fiscal year ending September 30, 1984. All fees collected shall be credited to the current appropriation account that incurs the costs and shall be available without fiscal year limitation to pay the expenses of the Secretary incident to providing services under this Act. The Secretary may deposit such funds in an interest bearing account with a financial institution. If any interest is 9-194 0 - 8 2 26:QL3
95 STAT. 376 PUBLIC LAW 97-35—AUG. 13, 1981 earned on this account such interest shall be credited to the account for use by the Secretary in providing such services."; and (2) amending section 31 (7 U.S.C. 271) to read as follows: Appropriation "SEC. 31. There are hereby authorized to be appropriated such authorization. sums as are necessary to carry out the provisions of this Act other than those services for which fees are authorized pursuant to section 10. Such appropriated funds may be used by the Secretary to employ qualified persons not regularly in the service of the United States for temporary assistance in carrying out the provisions of this Act.". Effective date. (b) The provisions of this section shall become effective October 1, 7 u s e 251 note. 1981. NAVAL STORES INSPECTION AND RELATED SERVICES SEC. 159. (a) The Naval Stores Act is amended by— (1) in the second sentence of section 4 (7 U.S.C. 94) striking out "on tender of the cost thereof as required by him,"; and (2) amending section 8 (7 U.S.C. 98) to read as follows: Fees and "SEC. 8. (a) The Secretary of Agriculture shall fix and cause to be charges. collected fees and charges for the establishment of standards under 7 use 93. section 3 of this Act and for examinations, analyses, classifications, and other services under section 4 of this Act which shall cover, as nearly as practicable, the costs of providing such services and standards as the Secretary shall deem necessary, including adminis- trative and supervisory costs. Such fees and charges, when collected, shall be credited to the current appropriation account that incurs such costs and shall be available without fiscal year limitation to pay the expenses of the Secretary incident to providing such services and standards under this Act. Fees and charges shall be assessed and collected from processors and warehousers of naval stores, and inspection and related services shall be suspended or denied to any such processor or warehouser upon failure to timely pay the fees and charges assessed. Appropriation "(b) There are hereby authorized to be appropriated such sums as authorization. may be necessary for the enforcement and administration of this Act.". Effective date. (b) The provisions of this section shall become effective October 1, 7 u s e 94 note. 1981. PART 3—FARMERS HOME ADMINISTRATION PROGRAMS INTEREST RATES ON FARMERS HOME ADMINISTRATION WATER AND WASTE DISPOSAL AND COMMUNITY FACIUTY LOANS, LOANS TO LOW- INCOME UMITED RESOURCE BORROWERS, AND LOANS FOR NONFARM FACIUTIES ON PRIME FARMLANDS SEC 160. (a) Section 307(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)) is amended bv— (1) in paragraph (2), striking out "and (5) and inserting in lieu thereof ^'(5), and (6)"; (2) in paragraph (4), striking out "The" and inserting in lieu thereof Except as provided in paragraph (6), the"; (3) amending paragraph (3) to read as follows: "(3)(A) Except as provided in paragraph (6), the interest rates on loans (other than guranteed loans), to public bodies or nonprofit associations (inclu(Cng Indian tribes on Federal and State reserva- tions and other federally recognized Indian tribal groups) for water and waste disposal facilities and essential community facilities shall be set by the Secretary at rates not to exceed the current market 3rield
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 377 for outstdnding municipal obligations with remaining periods to maturity comparable to the average maturity for such loans, and adjusted to the nearest one-eighth of 1 per centum; and not in excess of 5 per centum per annum for any such loans which are for the upgrading of existing facilities or construction of new facilities as required to meet applicable health or sanitary standards in areas where the median family income of the persons to be served by such facility is below the poverty line prescribed by the Office of Manage- ment and Budget as adjusted under section 624 of the Economic Opportunity Act of 1964 (42 U.S.C 2971d) and in other areas as the Secretary may designate where a significant percentage of the persons to be served by such facilities are of low income, as deter- mined by the Secretary. "(B) Except as provided in paragraph (6), the interest rates on loans (other than guaranteed loans) under section 310D of this title shall be '7 USC 1934. as determined by the Secretary, but not in excess of one-half of the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, nor less than 5 per centum per annum."; and (4) adding at the end thereof a new paragraph (6) as follows: "(6XA) Notwithstanding any other provision of this section, in the case of loans (other than guaranteed loans) made or insured under the authorities of this Act specified in subparagraph (B) for activities that involve the use of prime farmland as defined in subparagraph (C), the interest rates shall be the interest rates otherwise applicable under this section increased by 2 per centum per annum. Wherever practicable, construction by a State, municipality, or other political subdivision of local government that is supported by loans described in the preceding sentence shall be placed on land that is not prime farmland, in order to preserve the maximum practicable amount of prime farmlands for production of food and fiber. Where other options exist for the siting of such construction and where the governmental authority still desires to carry out such construction on prime farmland, the 2 per centum interest rate incregise provided by this clause shall apply, but such increased interest rate shall not apply where such other options do not exist. "(B) The authorities referred to in subparagraph (A) are— "(i) clauses (2) and (3) of section 303(a), 7 use 1923. "(ii) the provisions of section 304(a) relating to the financing of '^ use 1924. outdoor recreational enterprises or the conversion of farming or rsmching operations to recreational uses, "(iii) section 304(b), "(iv) the provisions of section 306(aXl) relating to loans for '^ use 1926. recreational developments and essential community facilities, "(v) section 306(aX15), "(vi) clause (1) of section 310B(a), 7 use 1932. "(vii) subsections (d) and (e) of section 310B, and "(viii) section 310D(a) as it relates to the making or insuring of 7 use 1934. loans under clauses (2) and (3) of section 303(a). "(C) For purposes of this paragraph, the term 'prime farmland' "Prime means prime farmlands and unique farmland as those terms are farmland." defined in sections 657.5 (a) and (b) of title 7, Code of Federal Regulations (1980).". (b) Section 316(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1946(a)) is amended by— (1) inserting "(1)" after "(a)";
95 STAT. 378 PUBLIC LAW 97-35—AUG. 13, 1981 (2) inserting in the second sentence "and loans as provided in paragraphs (2) and (3)" after "except for guaranteed loans"; and (3) adding at the end thereof new paragraphs (2) and (3) as follows: "(2) The interest rate on any loan (other than a guaranteed loan) to a low-income, limited resource borrower under this subtitle shall be the interest rate otherwise applicable under this section reduced by 3 per centum per annum. "(3) The interest rate on any loan (other than a guaranteed loan) 7 u s e 1942. made or insured under clause (5) of section 312(a) for activities that Ante, p. 376. involve the use of prime farmland as defined in section 307(aX6XC) shall be the interest rate otherwise applicable under this section increased by 2 per centum per annum.". Effective date. (c) The amendments made by this section shall apply to loans 7USC 1927 note. approved after September 30,1981. EMERGENCY LOAN AMOUNTS SEC. 161. Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended by inserting "only to the extent and in such amounts as provided in advance in appropri- ation Acts" after "The Secretary shall make and insure loans under this subtitle". INTEREST RATES ON EMERGENCY LOANS FOR ACTUAL LOSS SEC. 162. (a) Section 324(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1964(bXl)) is amended to read as follows: "(1) For loans or portions of loans up to the amount of the applicant's actual loss caused by the disaster, as limited under subsection (aXD of this section, the interest shall be at rates pre- scribed by the Secretary, but (A) if the applicant is not able to obtain sufficient credit elsewhere, not in excess of 8 per centum per annum, and (B) if the applicant is able to obtain sufficient credit elsewhere, not in excess of the rate prevailing in the private market for similar loans, as determined by the Secretary; and". Effective date. (b) The amendments made by this section shall apply to loans made 7 u s e 1964 note. with respect to disasters occurring after September 30,1981. ELIGIBILITY FOR ASSISTANCE BASED ON PRODUCTION LOSS SEC. 163. Section 329 of the Consolidated Farm and Rural Develop- 7 use 1970. ment Act is amended to read as follows: "SEC. 329. The Secretary shall make financial assistance under this subtitle available to any applicant seeking assistance based on production losses if the applicant shows that a single enterprise which constitutes a basic part of the applicant's farming, ranching, or aquaculture operation has sustained at least a 30 per centum loss of normal per acre or per animal production, or such lesser per centum of loss as the Secretary may determine, as a result of the disaster based upon the average monthly price in effect for the previous year and the applicant otherwise meets the conditions of eligibility pre- scribed under this subtitle. Such loans shall be made available based upon 80 per centum, or such greater per centum as the Secretary may determine, of the total calculated actual production loss sustained by the applicant.".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 379 INSURED LOAN UMITS SEC. 164. Section 346 of the Consolidated Farm and Rural Develop- ment Act (7 U.S.C. 1994) is amended by adding at the end thereof a new subsection (d) as follows: "(d) Notwithstanding any contrary provisions of subsection (b) of this section, for fiscal year 1982, loans are authorized to be insured, or made to be sold and insured, as follows: "(1) From the Agricultural Credit Insurance Fund— "(A) insured real estate loans for farm ownership pur- poses, $700,000,000, and "(B) insured operatmg loans, $1,325,000,000. Not less than 20 per centum of the insured loans authorized for farm ownership purposes and not less that 20 per centum of the insured loans authorized for farm operating purposes shall be for low-income, limited-resource applicants. "(2) From the Rural Development Insurance Fund— "(A) insured water and waste disposal loans, $300,000,000, and "(B) insured community facility loans, $130,000,000.". PART 4—RURAL ELECTRIFICATION ADMINISTRATION PROGRAMS RURAL ELECTRIFICATION ACT AMENDMENTS SEC. 165. (a) Section 305(b) of the Rural Electrification Act of 1936 (7 U.S.C. 935(b)) is amended to read as follows: "(b) Insured loans made under this title shall bear interest at 5 per insured loans, centum per annum, except that the Administrator may make insured interest rates. loans to electric or telephone borrowers at a lesser interest rate, but not less than 2 per centum per annum, if, in the Administrator's sole discretion, the Administrator finds that the borrower— "(1) has experienced extreme financial hardship; or "(2) cannot, in accordance with generally accepted manage- ment and accounting principles and without charging rates to its customers or subscribers so high as to create a substantial disparity between such rates and the rates charged for similar service in the same or nearby areas by other suppliers, provide service consistent with the objectives of this Act.". (b) Section 306 of the Rural Electrification Act of 1936 (7 U.S.C. 936) is amended by— (1) inserting immediately after the second sentence the follow- ing: "With respect to guarantees issued by the Administrator under this section, on the request of the borrower of any such loan so guaranteed, the loan shall be made by the Federal FiuEuicing Bank and at a rate of interest that is not more than the rate of interest applicable to other similar loans then being made or purchsised by the Bank."; and (2) striking our "a loan insured at the standard rate" in the fourth sentence and inserting in lieu thereof "an insured loan". (c) Section 307 of the Rural Electrification Act of 1936 (7 U.S.C. 937) is amended by striking out "a loan insured at the standard rate" and inserting in lieu thereof "an insured loan". (d) The amendments made by subsection (a) of this section shall 7 use 935 note apply to loans the applications for which are received by the Rural Electrification Administration after July 24,1981.
95 STAT. 380 PUBLIC LAW 97-35—AUG. 13, 1981 TITLE II—ARMED SERVICES AND DEFENSE-RELATED PROGRAMS Subtitle A—Strategic and Critical Materials AUTHORIZATION OF DISPOSALS Effective date. SEC. 201. (a) Effective on October 1,1981, the President is author- 7 u s e 98d note. ized to dispose of the following quantities of materials currently held in the National Defense Stockpile established by section 3 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98b), such quantities having been determined to be excess to the current requirements of the stockpile: (1) 1,000,000 pounds of iodine. (2) 1,500,000 carats of diamonds, industrial crushing bort. (3) 710,253 pounds of mercuric oxide. (4) 50,000 flasks of mercury. (5) 6,000,000 pounds of mica, muscovite splittings. (6) 25,000 pounds of mica, phlogopite splittings. (7) 46,537,000 troy ounces of silver. (8) 1,000 short tons of antimony. (9) 2,000 short tons of asbestos chrysotile. (10) 50,000 pounds of mica muscovite film, first and second qualities. (11) 50,000 pounds of mica muscovite block, stained and lower. (12) 700 long tons of vegetable tannin extract, wattle. Effective date. (b) Effective on October 1, 1982, the President is authorized to dispose of the foUowii^ quantities of materials currently held in the National Defense Stockpile, such quantities having been determined to be excess to the current requirements of the stockpile: (1) 44,682,000 troy ounces of silver. (2) 1,()00 short tons of antimony. (3) 2,000 short tons of asbestos chrysotile. (4) 1,500,000 carats of diamond stones. (5) 1,000,000 pounds of iodine. (6) 50,000 pounds of mica muscovite film, first and second qualities. (7) 50,000 pounds of mica muscovite block, stained and lower. (8) 697 long tons of vegetable teinnin extract, wattle. Effective date. (c) Effective on October 1, 1983, the President is authorized to dispose of the following quantities of materials currently held in the National Defense Stockpile, such quantities having been determined to be excess to the current requirements of the stockpile: (1) 13,900,000 troy ounces of silver. (2) 1,000 short tons of antimony. (3) 6,000 short tons of asbestos amosite. (4) 2,000 short tons of asbestos chrysotile. (5) 1,500,000 carats of diamond stones. (6) 197,465 carats of diamonds, industrial crushing bort. (7) 213,000 pounds of iodine. (8) 50,000 poimds of mica muscovite film, first and second qualities. (9) 50,000 pounds of mica muscovite block, stained and lower. Expiration. (dXD The authority to enter into contracts for the disposal of materials in the stockpile under the disposal authorizations con- tained in paragraphs (7) through (12) of subsection (a) eiq;>ires on September 30,1982.
PUBLIC LAW 97-35-AUG. 13,1981 95 STAT. 381 (2) The. authority to enter into contracts for the disposal of materi- Expiration. als in the stockpue under the disposal authorizations contained in subsection (b) expires on September 30,1983. (3) The authori^ to enter into contracts for the disposal of materi- Expiration. als in the stockpue under the disposal authorizations contained in subsection (c) expires on September 30,1984. (e) Any disposal under the authority of subsection (a), (b), or (c) shall' be carried out in accordance with the provisions of the S t r a t ^ c and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.). (fKD The authority contained in subsections (bXD and (cXD shall not become effective unless the President, not later than September 1, 1982, determines that the silver authorized for disposal oy such subsections is excess to the requirements of the stockpile as of that date. (2) A determination by the President under paragraph (1) shall be based upon consideration of such factors as the President considers relevant, including the following factors: (A) The demand for silver in each of the next ten years for the industrial, military, and naval needs of the United States for national defense. (B) The domestic supply of silver for each of the next ten years, as a function of price, that would be available to meet the demand identified under subparagraph (A). (C) The potential dependency of the United States on foreign supplies of silver in each of the next ten years to meet the demand identified under subparagraph (A). (D) The effect of disposal under subsections (bXD and (cXD on (i) the world silver market (in terms of price and supply), (ii) the domestic and international silver mining industry (in terms of exploration and production), (iii) international currency and monetary policy, and (iv) long range military preparedness. (3) If the President makes a determination described in paragraph Report to (1), he shall promptly report to the Committees on Armed Services of congressional the Senate and House of Representatives that he has made such committees. determination and shall include a detailed discussion and analysis of the factors set forth in paragraph (2) and other relevant factors. AUTHORIZATION OP APPROPRIATIONS SEC. 202. (a) Effective on October 1,1981, there is authorized to be so use 98d note. appropriated the sum of $535,000,000 for the acquisition of strategic and critical materials under section 6(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98e(a)). (b) Any acquisition using funds appropriated under the authoriza- tion of subsection (a) shall be carried out in accordance with the provisions of the Strategic and Critical Materials Stock Piling Act (50 lJ.S.C.98etseq.). IMPROVEMENTS IN STOCKPILE MANAGEMENT SEC. 203. (a) Section 5(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98d(a)) is amended— (1) by inserting "(1)" after "(a)"; (2) by inserting "and other incidental expenses" after "trans- portation"; (3) by striking out "for a period of five fiscal years, if so provided in appropriation Acts" and inserting in lieu thereof
95 STAT. 382 PUBLIC LAW 97-35—AUG. 13, 1981 "until expended, unless otherwise provided in appropriation Acts"; and (4) by adding at the end thereof the following new paragraph: "(2) If for any fiscal year the President proposes certain stockpile transactions in the annual materials plan submitted to Congress for 50 u s e 98h-2. that year under section 11(b) and after that plan is submitted the President proposes (or Congress requires) a significant change in any such transaction, or a significant transaction not included in such plan, no amount may be obligated or expended for such transaction during such year until the President has submitted a full statement of the proposed transaction to the appropriate committees of Con- gress and a period of 30 days has passed from the date of the receipt of such statement by such committees or until each such committee, before the expiration of such period, notifies the President that it has no objection to the proposed transaction. In computing any 30-day period for the purpose of the preceding sentence, there shall be excluded any day on which either House of Congress is not in session because of an adjournment of more than three days to a day certain.". (b) Section 5(b) of such Act (50 U.S.C. 98d(b)) is amended— (1) by inserting "(1)" after "from the stockpile"; and (2) by striking out the period at the end and inserting in lieu thereof ", or (2) if the disposal would result in there being a balance in the National Defense Stockpile Transaction Fund in excess of $1,000,000,000 or, in the case of a disposal to be made after September 30, 1983, if the disposal would result in there being a balance in the fund in excess of $500,000,000.". (c) Section 6(a)(6) of such Act (50 U.S.C. 98e(a)(6)) is amended by inserting "subject to the provisions of section 5(b)," after "(6)". (dXD Section 9(bXl) of such Act (50 U.S.C. 98h(bXl)) is amended by striking out "or until" and all that follows in such section and inserting in lieu thereof a period. (2) Section 9(bX3) of such Act (50 U.S.C. 98h(bX3)) is amended to read as follows: "(3) Moneys in the fund, when appropriated, shall remain available until expended, unless otherwise provided in appropriation Acts.". (e) Section 11 of such Act (50 U.S.C. 98h-2) is amended— (1) by inserting "(a)" after "SEC. 11."; and (2) by adding at the end thereof the following new subsection: Report to "(b) The President shall submit to the appropriate committees of congressional committees. the Congress each year with the Budget submitted to Congress pursuant to section 201(a) of the Budget and Accounting Act, 1921 (31 U.S.C. 11(a)), for the next fiscal year a report containing an annual materials plan for the operation of the stockpile during such fiscal year and the succeeding four fiscal years. Each such report shall include details of planned expenditures for acquisition of strategic and critical materials during such period (including expenditures to be made from appropriations from the general fund of the Treasury) and of anticipated receipts from proposed disposals of stockpile materials during such period.". Effective date. (f) The amendments made by subsection (a) shall apply with respect 50 u s e 98d note. to funds appropriated for fiscal years beginning after September 30, 1981.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 383 Subtitle B—Military Compensation ONCE ANNUAL COST-OF-LIVING INCREASES IN MILITARY RETIRED PAY SEC. 211. (a) For cost savings achieved through elimination of one of the present semiannual increases in military retired and retainer pay, contingent upon a similar change in law being made with respect to the ci^dl service retirement system, see section 812(b) of the Department of Defense Authorization Act, 1981 (Public Law 96-342; 94 Stat. 1098). 10 u s e 1401a (b) Section 812(bXl) of the Department of Defense Authorization note. Act, 1981, is amended by striking out "subject to paragraph (3)" and inserting in lieu thereof "subject to paragraph (2)". OPEN ENROLLMENT PERIOD FOR SURVIVOR BENEFIT PLAN SEC. 212. (aXD Any eligible member who on the date of the 10 u s e 1448 enactment of this Act is not a participant in the Survivor Benefit note. Plan may elect to participate in the Plan during the open enrollment period specified in subsection (b). (2) Any eligible member who on the date of the enactment of this Act is a participant in the Plan but elected not to participate in the Plan at the maximum level or (in the case of an eligible member who is married) elected to provide an annuity under the Plan for a dependent child and not for the member's spouse may during the open enrollment period elect to participate in the Plan at a higher level or to provide an annuity under the Plan for the eligible member's spouse at a level not less than the level provided for the dependent child. (3) Any such election shall be made in the same manner as an election under section 1448 of such title and shall be effective when received by the Secretary concerned. Notwithstanding the last sen- tence of section 1452(a) of such title, the reduction in retired or retainer pay prescribed by the first sentence of such section shall, in the case of an individual making an election under paragraph (1), begin on the first day of the first month beginning after such election is effective. (b) The open enrollment period is the period beginning on October 1,1981, and ending on September 30,1982. (c) If an individual making an election under subsection (a) dies before the end of the two-year period beginning on the date of that election, the election is void and the amount of any reduction in the retired or retainer pay of such individual that is attributable to the election shall be paid in a lump sum to that individual's beneficiary under the Plan (as designated under that election). (d) Sections 1449,1453, and 1454 of title 10, United States Code, are applicable to individuals making elections and to elections under this section. (e) For the purposes of this section: Definitions. (1) The term "eligible member" means a member or former member of the uniformed services who on the date of the enactment of this Act is entitled to retired or retainer pay. (2) The term "Survivor Benefit Plan" or "Plan" means the program established under subchapter II of chapter 73 of title 10, United States Code. 10 u s e 1447. (3) The term "Secretary concerned" has the meaning given such term in section 101(5) of title 37, United States Code.
95 STAT. 384 PUBLIC LAW 97-35—AUG. 13, 1981 TITLE III—BANKING, HOUSING, AND RELATED PROGRAMS Housing and Subtitle A—Housing and Community Development Community Development Amendments of SHORT TITLE 1981. 42 u s e 5301 SEC. 300. This subtitle may be cited as the "Housing and Communi- note. ty Development Amendments of 1981". PART 1—COMMUNITY AND ECONOMIC DEVELOPMENT AUTHORIZATIONS SEC. 301. Section 103 of the Housing and Community Development 42 u s e 5303. Act of 1974 is amended to read as follows: AUTHORIZATIONS Grants. "SEC. 103. The Secretary is authorized to make grants to States, units of general local government, and Indian tribes to carry out Appropriation. activities in accordance with the provisions of this title. There are authorized to be appropriated for these purposes not to exceed $4,166,000,000 for each of the fiscal years 1982 and 1983. Sums appropriated pursuant to this section shall remain available until expended.". S T A T E M E N T O P ACTIVITIES AND REVIEW SEC. 302. (a) The caption of section 104 of the Housing and 42 u s e 5304. Community Development Act of 1974 is amended to read as follows: "STATEMENT OF ACTIVITIES AND REVIEW". (b) Subsections (a), (b), and (c) of section 104 of such Act are amended to read as follows: "(aXl) Prior to the receipt in any fiscal year of a grant under section 42 u s e 5306; 10603) by any metropolitan city or urban county, under section 106(d) Post p. 389. by any State, or under section 106(dX2XB) by any unit of general local government, the grantee shall have prepared a final statement of community development objectives and projected use of funds and shall have provided the Secretary with the certifications required in subsection 0)) and, where appropriate, subsection (c). In the case of metropolitan cities and urban counties receiving grants pursuant to section 1060t)) and in the case of units of general local government receiving grants pursuant to section 106(dX2XB), the statement of projected use of funds shall consist of proposed community develop- ment activities. In the case of States receiving grants pursuant to section 106(d), the statement of projected use of funds shall consist of the method by which the States will distribute funds to units of general local government. "(2) In order to permit public examination and appraisal of such statements, to enhance the public accountability of grantees, and to facilitate coordination of activities with different levels of govern- ment, the grantee shall— "(A) furnish citizens information concerning the amount of funds available for proposed community development and hous- ing activities and the range of activities that may be undertaken; "(B) publish a proposed statement in such manner to afford affected citizens or, as appropriate, units of general local govern-
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 385 ment an opportunity to examine its content and to submit comments on the proposed statement and on the community development performance of the grantee; and "(C) hold one or more public hearings to obtain the views of citizens on community development and housing needs. In preparing the final statement, the grantee shall consider any such, comments and views and may, if deemed appropriate by the grantee, modify the proposed statement. The final statement shall be made available to the public, and a copy shall be furnished to the Secretary together with the certifications required under subsection (b) and, where appropriate, subsection (c). "(b) Any grant under section 106 shall be made only if the grantee 42 use 5306 certifies to the satisfaction of the Secretary that— "(1) the grantee is in full compliance with the requirements of subsection (aX2) (A), (B), and (C) and has made the final statement available to the public; "(2) the grant will be conducted and administered in conform- ity with Public Law 88-352 and Public Law 90-284; 42 u s e 2000a "(3) the projected use of funds has been developed so as to give note; 82 Stat. 73. Projected use of maximum feasible priority to activities which will benefit low- funds. and moderate-income families or aid in the prevention or elimi- nation of slums or blight; the projected use of funds may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immedi- ate threat to the health or welfare of the community where other financigd resources are not available to meet such needs; and "(4) the grantee will comply with the other provisions of this title and with other applicable laws. "(cXD Any grant made under section 1060i)) shall be made only if Grants. the unit of general local government certifies that it is following a current housing assistance plan which has been approved by the Secretary and which— "(A) accurately surveys the condition of the housing stock in the community and assesses the housing assistance needs of lower income persons (including elderly and handicapped per- sons, large families, owners of homes requiring rehabilitation assistance, and persons displaced or to be displaced) residing in or expected to reside in the community as a result of existing or projected changes in employment opportunities and population in the community (and those elderly persons residing in or expected to reside in the community), or as estimated in a community accepted State or regional housing opportunity plan approved by the Secretary, and identifies housing stock which is in a deteriorated condition, including the impact of conversion of rental housing to condominium or cooperative ownership on such needs; "(B) specifies a realistic annual goal for the number of dwelling units or lower income persons to be assisted, including (i) the relative proportion of new, rehabilitated, and existing dwelling units, including existing rental and owner occupied dwelling units to be upgraded and thereby preserved, (ii) the sizes and types of housing projects and assistance best suited to the needs of lower income persons in the community, and (iii) in the case of subsidized rehabilitation, adequate provisions to assure that a preponderance of persons assisted should be of low and moderate income; and
95 STAT. 386 PUBLIC LAW 97-35—AUG. 13, 1981 "(C) indicates the general locations of proposed housing for lower income persons, with the objective of (i) furthering the revitalization of the community, including the restoration and rehabilitation of stable neighborhoods to the maximum extent possible, and the reclamation of the housing stock where feasible through the use of a broad range of techniques for housing restoration by local government, the private sector, or commu- nity organizations, including provision of a reasonable opportu- nity for tenants displaced as a result of such activities to relocate in their immediate neighborhood, (ii) promoting greater choice of housing opportunities and avoiding undue concentrations of assisted persons in areas containing a high proportion of low- income persons, and (iii) assuring the availability of public facilities and services adequate to serve proposed housing projects. "(2) The Secretary shall establish such dates and manner for the submission of housing assistance plans described in paragraph (1) as the Secretary may prescribe.". 42 u s e 5304. (c)(1) Section 104(d) of such Act is amended to read as follows: Report. "(d) Each grantee shall submit to the Secretary, at a time deter- mined by the Secretary, a performance report concerning the use of funds made available under section 106, together with an assessment by the grantee of the relationship of such use to the objectives identified in the grantee's statement under subsection (a). The Secretary shall, at least on an annual basis, make such reviews and audits as may be necessary or appropriate to determine— "(1) in the case of grants made under section 106(b) or section Post. p. 389. 106(d)(2)(B), whether the grantee has carried out its activities and, where applicable, its housing assistance plan in a timely manner, whether the grantee has carried out those activities and its certifications in accordance with the requirements and the primary objectives of this title and with other applicable laws, and whether the grantee has a continuing capacity to carry out those activities in a timely manner; and "(2) in the case of grants to States made under section 106(d), whether the State has distributed funds to units of general local government in a timely manner and in conformance to the method of distribution described in its statement, whether the State has carried out its certifications in compliance with the requirements of this title and other applicable laws, and whether the State has made such reviews and audits of the units of general local government as may be necessary or appropriate to determine whether they have satisfied the applicable perform- ance criteria described in paragraph (1) of this subsection. The Secretary may make appropriate adjustments in the amount of the annual grants in accordance with the Secretary's findings under this subsection. With respect to assistance made available to units of Post, p. 389. general local government under section 106(d), the Secretary may adjust, reduce, or withdraw such assistance, or take other action as appropriate in accordance with the Secretary's reviews and audits under this subsection, except that funds already expended on eligible activities under this title shall not be recaptured or deducted from future assistance to such units of general local government.". Effective (2) The amendment made by paragraph (1) shall take effect on date. October 1,1982. 42 u s e 5304 (d) Section 104 of such Act is amended by striking out subsections note. 42 u s e 5304. (e) and (f) and redesignating subsections (g), (h), (i), and (j) as subsections (e), (f), (g), and (h).
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 387 (e) Section 104(f) of such Act, as redesignated by subsection (d) of ^"*«' P- ^86. this section, is amended— (1) by striking out "applicants" in paragraph (1) and inserting in lieu thereof 'Tecipiente of assistance under this title"; (2) by striking out "applicant" wherever it appears and insert- ing in lieu thereof "recipient of assistance under this title"; (3) by striking out "applications and" in the last sentence of paragraph (2); and (4) by adding the following new paragraph at the end thereof: "(4) In the case of grants made to States pursuant to section 106(d), f^ost, p. 389. the State shall perform those actions of the Secretary described in paragraph (2) and the performance of such actions shall be deemed to satisfy the Secretary s responsibilities referred to in the second sentence of such paragraph. . (f) Section 104(g) of such Act, as redesignated by subsection (d) of Ante, p. 386. this section, is amended— (1) by striking out paragraph (1) and inserting in lieu thereof the following: "(1) Units of general local government receiving assistance under this title may receive funds, in one payment, in an amount not to exceed the total amount designated in the grant (or, in the case of a unit of general local government receiving a distribution from a State pursuant to section 106(d), not to exceed the total amount of such distribution) for use in establishing a revolving loan fund which is to be established in a private financial institution and which is to be used to finance rehabilitation activities assisted under this title. Rehabilitation activities authorized under this section shall begin within 45 days after receipt of such payment."; and (2) by striking out the last two sentences of paragraph (2). EUGIBLE ACTIVITIES SEC. 303. (a) Section 105(a) of the Housing and Community Develop- ment Act of 1974 is amended— 42 use 5305. (1) by striking out paragraph (8) and inserting in lieu thereof the following: "(8) provision of public services, including but not limited to those concerned with employment, crime prevention, child care, health, drug abuse, education, energy conservation, welfare or recreation needs, if such services have not been provided by the unit of general local government (through funds raised by such unit, or received by such unit from the State in which it is located) during any part of the twelve-month period immediately preceding the date of submission of the statement with respect to which funds are to be made available under this title, and which are to be used for such services, unless the Secretary finds that the discontinuation of such services was the result of events not within the control of the unit of general local government, except that not more than 10 per centum of the amount of any assistance to a unit of general local government under this title may be used for activities under this paragraph;"; (2) by inserting the following before the semicolon at the end of paragraph (13) , and including the carrying out of activities as described in section 701(e) of the Housing Act of 1954 on the date 94 Stat. 1662. prior to the date of enactment of the Housing and Community Development Amendments of 1981"; Ante, p. 384. (3) by striking out "and" at the end of peiragraph (15);
95 STAT. 388 PUBLIC LAW 97-35—AUG. 13, 1981 (4) by striking out the period at the end of paragraph (16) and inserting in lieu thereof'; and"; and (5) by adding at the end thereof the following new paragraph: "(17) provision of assistance to private, for-profit entities, when the assistance is necessary or appropriate to carry out an economic development project.", Waiver. (b) In fiscal years 1982,1983, and 1984, the Secretary may waive the 42 u s e 5305 limitation on the amount of funds which may be used for public note. services activities under section 105(a)(8) of the Housing and Com- Ante, p. 387. munity Development Act of 1974, as amended by this Act, in the case of a unit of general local government which, during fiscal year 1981, allocated more than 10 per centum of funds received under title I of 42 u s e 5301. the Housing and Community Development Act of 1974 for such activities. ALLOCATION AND DISTRIBUTION OF FUNDS SEC. 304. (a) Section 106(a) of the Housing and Community Develop- 42 u s e 5306. ment Act of 1974 is amended to read as follows: "(a) Of the amount approved in an appropriation Act under section Ante, p. 384. 103 for grants in any year (excluding the amounts provided for use in Post, pp. 391, accordance with section 107 and section 119), 70 per centum shall be 392. allocated by the Secretary to metropolitan cities and urban counties. Except as otherwise specifically authorized, each metropolitan city and urban county shall be entitled to an annual grant from such allocation in an amount not exceeding its basic amount computed pursuant to paragraph (1) or (2) of subsection (b).". 42 u s e 5306. (b) Section 106 of such Act is amended by striking out subsection (c) and redesignating subsections (d), (e), (f), and (g) as subsections (c), (d), (e), and (f), respectively. (c) Section 106(c), as redesignated by subsection (b) of this section, is amended to read as follows: Reallocated "(c)(1) Except as provided in paragraph (2), any amounts allocated funds. to a metropolitan city or an urban county pursuant to the preceding provisions of this section which are not received by the city or county for a fiscal year because of failure to meet the requirements of section Ante, p. 384. 104(a), (b), or (c), or which become available as a result of actions Ante, p. 386. under section 104(d) or 111, shall be reallocated in the succeeding 42 u s e 5311. fiscal year to the other metropolitan cities and urban counties in the same metropolitan area which certify to the satisfaction of the Secretary that they would be adversely affected by the loss of such amounts from the metropolitan area. The amount of the share of funds reallocated under this paragraph for any metropolitan city or urban county shall bear the same ratio to the total of such reallocated funds in the metropolitan area as the amount of funds awarded to the city or county for the fiscal year in which the reallocated funds become available bears to the total amount of funds awarded to all metropolitan cities and urban counties in the same metropolitan area for that fiscal year, except that— "(A) in determining the amounts awarded to cities or counties for purposes of calculating shares pursuant to this sentence, there shall be excluded from the award of any city or county any amounts which become available as a result of actions against such city or county under section 111; "(B) in reallocating amounts resulting from an action under section 104(d) or section 111, the city or county against whom any such action was taken shall be excluded from the calculation of shares for purposes of reallocating the amounts becoming avail- able as a result of such action; and
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 389 "(C) in no event may the share of reallocated funds for any metropolitan city or urban county exceed 25 per centum of the amount awarded to the city or county under section 106(b) for the 42 use 5306. fiscal year in which the reallocated funds under this paragraph become available. Any amounts allocated under section 106(b) which become available for reallocation and for which no metropolitan city or urban county qualifies under this paragraph shall be added to amounts available for allocation under such section 106(b) in the succeeding fiscal year. "(2) Notwithstanding any other provision of this title, the Secretary shall make grants from amounts authorized for use under section 106(b) by the Department of Housing and Urban Development— Independent Agencies Appropriation Act, 1981, in accordance with 94 Stat. 3044. the provisions of this title which governed grants with respect to such amounts, as such provisions existed prior to the effective date of the Housing and Community Development Amendments of 1981, except Ante, p. 384. that any such amounts which are not obligated before January 1, 1982, shall be reallocated in accordance with paragraph (1).". (d) Section 106(d)(1) of such Act, as redesignated by subsection (b) of this section, is amended— Ante, p. 388. (1) by striking out "section 108(a)" and all that follows through "nonmetropolitan areas of each State" in the first sentence and inserting in lieu thereof the following: "section 103 for grants in any year (excluding the amounts provided for use in accordance with section 107 and section 119), 30 per centum shall be Post, pp. 391,392. allocated among the States for use in nonentitlement areas. The allocation for each State shall be"; and (2) by striking out "nonmetropolitan" wherever it appears and inserting in lieu thereof "nonentitlement". (e) Section 106(d) of such Act, as redesignated by subsection (b) of this section, is amended by striking out paragraphs (2) and (3) and inserting in lieu thereof the following: "(2)(A) Amounts allocated under paragraph (1) shall be distributed to units of general local government located in nonentitlement areas of the State to carry out activities in accordance with the provisions of this title— "(i) by the State, consistent with the statement submitted under section 104(a); or Ante, p. 384. "(ii) by the Secretary, in any case described in subparagraph (B), for use by units of general local government in accordance with paragraph (3)(B). Notwithstanding any provision of this title, the Secretary shall make grants from amounts authorized for use in nonentitlement areas by the Department of Housing and Urban Development—Independent Agencies Appropriation Act, 1981, in accordance with the provisions 94 Stat. 3044. of this title which governed grants with respect to such amounts, as such provisions existed prior to the effective date of the Housing and Community Development Amendments of 1981. Any amounts under Ante, p. 384. the preceding sentence (except amounts for which preapplications have been approved by the Secretary prior to October 1, 1981, and which have been obligated by January 1,1982) which are or become available for obligation after fiscal year 1981 shall be available for distribution in the State in which the grants from such amounts were made, by the State or by the Secretary, whichever is distributing the State allocation in the fiscal year in which such amounts are or become available, "(B) The Secretary shall distribute amounts allocated under para- graph (1) where—
95 STAT. 390 PUBLIC LAW 97-35—AUG. 13, 1981 "(i) the State has elected, in such manner and before such time as the Secretary may prescribe, not to distribute such amounts; or "(ii) the State has failed to submit the certifications described in subparagraph (C). "(C) To receive and distribute amounts allocated under paragraph (1), the Governor must certify that the State, with respect to units of general local government in nonentitlement areas— "(i) engages or will engage in planning for community develop- ment activities; "(ii) provides or will provide technical assistance to units of general local government in connection with community devel- opment programs; "(iii) will provide, out of State resources, funds for community development activities in an amount which is at least 10 per centum of the amounts allocated for use in the State pursuant to paragraph (1); and "(iv) has consulted with local elected officials from among units of general local government located in nonentitlement areas of that State in determining the method of distribution of funds required by subparagraph (A). "(8)(A) If the State receives and distributes such amounts, it shall be responsible for the administration of funds so distributed. The State shall pay from its own resources all administrative expenses incurred by the State in carrying out its responsibilities under this title, except that from the amounts received for distribution in nonentitlement areas, the State may deduct an amount not to exceed 50 per centum of the costs incurred by the State in carrying out such responsibilities. Amounts so deducted shall not exceed 2 per centum of the amount so received. "(B) If the Secretary distributes such amounts, the distribution shall be made in accordance with determinations of the Secretary pursuant to statements submitted and the other requirements of Ante, p. 384. section 104 (other than subsection (c)) and in accordance with regula- tions and procedures prescribed by the Secretary. "(C) Any amounts allocated for use in a State under this subsection Ante, p. 386. which become available as a result of actions under section 104(d) or 42 use 5311. I l l shall— "(i) in the case of actions against units of general local government in nonentitlement areas, be added to amounts avail- able for distribution in the State in the fiscal year in which the amounts become so available; or "(ii) in the case of actions against the State, be added to amounts available for distribution in the State in the succeeding fiscal year. Amounts reallocated under this subparagraph shall be available for distribution by the State or by the Secretary, whichever is distribut- ing the State allocation in the fiscal year in which such reallocated amounts are added. "(4) In computing amounts under paragraph (1), Indian tribes shall be excluded.". Ante, p. 388. (f) Section 106(f), as redesignated by subsection (b) of this section, is amended by striking out "(1)" and all that follows through "106(e)" and inserting in lieu thereof "all basic grant entitlement amounts".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 391 DISCRETIONARY FUND SEC. 305. Section 107 of the Housing and Community Development Act of 1974 is amended to read as follows: 42 u s e 5307. DISCRETIONARY FUND "SEC. 107. (a) Of the total amount approved in appropriation Acts under section 103 for each of the fiscal years 1982 and 1983, not more Ante, p. 384. than $60,000,000 for each of the fiscal years 1982 and 1983 may be set aside in a special discretionary fund for grants under subsection (b). Grants under this section are in addition to any other grants which may be made under this title to the same entities for the same purposes. "(b) From amounts set aside under subsection (a), the Secretary is authorized to make grants— "(1) in behalf of new communities assisted under title VII of the Housing and Urban Development Act of 1970 or title IV of 42 u s e 4501. the Housing and Urban Development Act of 1968 or in behalf of 42 u s e 3901. new community projects assisted under title X of the National Housing Act which meet the eligibility stemdards set forth in 12 u s e 1749aa. title Vn of the Housing and Urban Development Act of 1970 and which were the subject of an application or preapplication under such title prior to January 14,1975; "(2) in Guam, the Virgin Islands, American Samoa, the North- ern Mariana Islands, and the Trust Territory of the Pacific Islands; "(3) to Indian tribes; and "(4) to States, units of general local government, Indian tribes, Technical or areawide planning organizations for the purpose of providing Eissistance. technical assistance in planning, developing, and administering assistance under this title, and to States and units of general local government for implementing special projects otherwise authorized under this title. The Secretary may also provide, directly or through contracts, technical assistaiice under this paragraph to such governmental units, or to a group designated by such a governmental unit for the purpose of assisting that governmental unit to carry out assistance under this title. "(c) Amounts set aside for use under subsection (b) in any fiscal year but not used in that year shall remain available for use in subsequent fiscal years in accordance with the provisions of that subsection. "(dXD Except as provided in paragraph (2), no grant may be made under this section or section 119 unless the applicant provides Post, p. 392. satisfactory assurances that its program will be conducted and administered in conformity with Public Law 88-352 and Public Law 90-284. 42 u s e 2000a "(2) No grant may be made to an Indian tribe under this section or note; section 119 unless the applicant provides satisfactory assurances that 82 Stat. 73. its program will be conducted and administered in conformity with title II of Public Law 90-284. The Secretary may waive, in connection Waiver. with grants to Indian tribes, the provisions of section 109 and section 25 u s e 1301. 110. 42 u s e 5309, "(3) The Secretary may accept a certification from the applicant 5310. that it has complied with the requirements of paragraph (1) or (2), as appropriate.". 89-194 O—82 27 : QL3
95 STAT. 392 PUBLIC LAW 97-35—AUG. 13, 1981 NONDISCRIMINATION SEC. 306. Section 109(a) of the Housing and Community Develop- 42 u s e 5309. ment Act of 1974 is amended by adding the following new sentence at the end thereof: "Any prohibition against discrimination on the basis 42 u s e 6101 of age under the Age Discrimination Act of 1975 or with respect to an note. otherwise qualified handicapped individual as provided in section 504 29 u s e 794. of the Rehabilitation Act of 1973 shall also apply to any such program or activity.". TRANSITIONAL PROVISIONS 42 u s e 5306 SEC. 307. (a) Any amounts appropriated for any fiscal year before note. fiscal year 1982 in a Department of Housing and Urban Develop- ment—Independent Agencies Appropriation Act or a Supplemental Appropriation Act under the head "COMMUNITY DEVELOPMENT GRANTS" which are or become available for obligation on or after October 1,1981, shall remain available as provided by law, and shall be used in accordance with the following: (1) funds authorized for use under section 106(b) of the Housing 42 u s e 5306. and Community Development Act of 1974 ("such Act") before October 1, 1981, shall be available for use as provided by section Ante, p. 388. 106(c) of such Act as amended by this Act; 42 u s e 5307. (2) funds authorized for use under section 107 of such Act before October 1, 1981, shall be available for use as provided by Ante, p. 391. section 107(a) of such Act as amended by this Act; and (3) funds authorized for use under section 106(c) or (e) of such Act before October 1,1981, shall be available for use as provided by section 106(d)(2)(A) of such Act as amended by this Act. Ante, p. 389. (b) Any grant or loan which, prior to the effective date of any provision of this part, was obligated and governed by any authority amended by any provision of this part shall continue to be governed by the provisions of such authority as they existed immediately before such effective date. URBAN DEVELOPMENT ACTION GRANTS SEC. 308. (a) Section 119 of the Housing and Community Develop- 42 u s e 5318. ment Act of 1974 is amended to read as follows: URBAN DEVELOPMENT ACTION GRANTS "SEC. 119. (a) The Secretary is authorized to make urban develop- ment action grants to cities and urban counties which are experienc- ing severe economic distress to help stimulate economic development activity needed to aid in economic recovery. Of the total amount 42 use 5303. approved in appropriation Acts under section 103 for each of the fiscal years 1982 and 1983, not more than $500,000,000 shall be available for each of the fiscal years 1982 and 1983 for grants under this section. "Ol5)(l) Urban development action grants shall be made only to cities and urban counties which have, in the determination of the Secretary, demonstrated results in providing housing for low- and moderate-income persons and in providing equal opportunity in housing and employment for low- and moderate-income persons and Regulations. members of minority groups. The Secretary shall issue regulations establishing criteria in accordance with the preceding sentence and setting forth minimum standards for determining the level of eco- nomic distress of cities and urban counties for eligibility for such grants. These standards shall take into account factors such as the
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 393 age of housing; the extent of poverty; the extent of population lag; growth of per capita income; and, where data are available, the extent of unemployment and job lag. "(2) A city or urban county which fails to meet the minimum standards established pursuant to paragraph (1) shall be eligible for assistance under this section if it meets the requirements of the first sentence of such paragraph and— "(A) in the case of a city with a population of fifty thousand persons or more or an urban county, contEiins an area (i) comi)Osed of one or more contiguous census tracts, enumeration districts, or block groups, as defined by the United States Bureau of the Census, having at least a population of ten thousand persons or 10 per centum of the population of the city or urban county; (ii) in which at lesist 70 per centum of the residents have incomes below 80 per centum of the median income of the city or urban county; and (iii) in which at least 30 per centum of the residents have incomes below the national poverty level; or "(B) in the case of a city with a population of less than fifty thousand persons, contains an area (i) composed of one or more contiguous census tracts, enumeration districts, or block groups or other areas defined by the United States Bureau of the Census or for which data certified by the United States Bureau of the Census are available having at least a population of two thou- sand five hundred persons or 10 per centum of the population of the city, whichever is greater; (ii) in which at least 70 per centum of the residents have incomes below 80 per centum of the median income of the city; and (iii) in which at least 30 per centum of the residents have incomes below the national poverty level. The Secretary shall use up to, but not more than, 20 per centum of the funds appropriated for use in any fiscal year under this section for the purpose of making grants to cities and urban counties eligible under this paragraph. "(c) Applications for eissistance under this section shall— Contents. "(1) in the case of an application for a grant under subsection (bX2), include documentation of grant eligibility in accordance with the standards described in that subsection; "(2) set forth the activities for which assistance is sought, including (A) an estimate of the costs and general location of the activities; (B) a summary of the public and private resources which are expected to be made available in connection with the activities, including how the activities will take advantage of unique opportunities to attract private investment; and (C) an analysis of the economic benefits which the activities are expected to produce; '(3) contain a certification satisfactory to the Secretary that the applicant, prior to submission of its application, (A) has held public hearings to obteiin the views of citizens, particularly residents of the area in which the proposed activities are to be carried out, and (B) has analyzed the impact of these proposed activities on the residents, particularly those of low and moder- ate income, of the residential neighborhood, and on the neighbor- hood in which they are to be carried out; and "(4) contain a certification satisfactory to the Secretary that the applicant, prior to submission of its application, (A) has identified all properties, if any, which are included on the National Register of Historic Places and which, as determined by the applicant, will be affected by the project for which the application is made; (B) ha-s identified all other properties, if any,
95 STAT. 394 PUBLIC LAW 97-35—AUG. 13, 1981 which will be affected by such project and which, as determined by the applicant, may meet the criteria established by the Secretary of the Interior for inclusion on such Register, together with documentation relating to the inclusion of such properties on the Register; (C) has determined the effect, as determined by the applicant, of the project on the properties identified pursuant to clauses (A) and (B); and (D) will comply with the requirements 94 Stat. 1620. of section 121. 42 u s e 5320. "(dXD Except in the case of a city or urban county eligible under Selection criteria, subsection (b)(2), the Secretary shall establish selection criteria for establish- grants under this section which must include (A) as the primary ment. criterion, the comparative degree of economic distress among appli- cants, as measured (in the case of a metropolitan city or urban county) by the differences in the extent of growth lag, the extent of poverty, and the adjusted age of housing in the metropolitan city or urban county; (B) other factors determined to be relevant by the Secretary in assessing the comparative degree of economic deteriora- tion in cities and urban counties; and (C) at least the following other criteria: demonstrated performance of the city or urban county in housing and community development programs; the extent to which the grant will stimulate economic recovery by leveraging private investment; the number of permanent jobs to be created and their relation to the amount of grant funds requested; the proportion of permanent jobs accessible to lower income persons and minorities, including persons who are unemployed; the impact of the proposed activities on the fiscal base of the city or urban county and its relation to the amount of grant funds requested; the extent to which State or local government funding or special economic incentives have been committed; and the feasibility of accomplishing the proposed activi- ties in a timely fashion within the grant amount available. "(2) For the purpose of making grants with respect to areas described in subsection (bX2), the Secretary shall establish selection criteria, which must include (A) factors determined to be relevant by the Secretary in assessing the comparative degree of economic deterioration among eligible areas, and (B) such other criteria as the Secretary may determine, including at a minimum the criteria listed in paragraph (IXC) of this subsection. City or urban "(e) The Secretary may not approve any grant to a city or urban county, eli- county eligible under subsection (bX2) unless— gibility. "(1) the grant will be used in connection with a project located in an area described in subsection (bX2), except that the Secre- tary may waive this requirement where the Secretary deter- mines (A) that there is no suitable site for the project within that area, (B) the project will be located directly adjacent to that area, and (C) the project will contribute substantially to the economic development of that area; "(2) the city or urban county has demonstrated to the satisfac- tion of the Secretary that basic services supplied by the city or urban county to the area described in subsection (bX2) are at least equivalent, as measured by per capita expenditures, to those supplied to other areas within the city or urban county which are similar in population size and physical characteristics and which have median incomes above the median income for the city or urban county; "(8) the grant will be used in connection with a project which will directly benefit the low- and moderate-income families and individuals residing in the area described in subsection (bX2); and
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 395 "(4) the city or urban county makes available, from its own funds or from funds received from the State or under any Federal program which permits the use of financial assistance to meet the non-Federal share requirements of Federal grant-in-aid pro- grams, an amount equal to 20 per centum of the grant to be available under this section to be used in carrying out the activities described in the application. "(f) Activities assisted under this section may include such activi- ties, in addition to those authorized under section 105(a), as the 42 u s e 5305. Secretary determines to be consistent with the purposes of this section. "(g) The Secretary shall, at least on an annual basis, make reviews Reviews and and audits of recipients of grants under this section as necessary to audits. determine the progress made in carrying out activities substantially in accordance with approved plans and timetables. The Secretary may adjust, reduce, or withdraw grant funds, or take other action as appropriate in accordance with the findings of these reviews and audits, except that funds edready expended on eligible activities under this title shall not be recaptured or deducted from future grants made to the recipient. "(h) No assistance may be provided under this section for projects Industrial intended to facilitate the relocation of industrial or commercial or commercial plants or facilities from one area to another, unless the Secretary plants or facili- ties, £issistance. finds that the relocation does not significantly and adversely affect the unemployment or economic base of the area from which the industrial or commercial plant or facility is to be relocated. "(i) Not less than 25 per centum of the funds made available for grants under this section shall be used for cities with populations of less than fifty thousand persons which are not central cities of a metropolitan statistical area. "(j) A grant may be made under this section only where the Secretary determines that there is a strong probability that (1) the non-Federal investment in the project would not be made without the grant, and (2) the grant would not substitute for non-Federal funds which are otherwise available to the project. "(k) In making grants under this section, the Secretary shall take such steps as the Secretary deems appropriate to assure that the amount of the grant provided is the least necessary to make the project feasible. * (1) For purposes of this section, the Secretary may reduce or waive the requirement in section 102(a)(5)(BXii) that a town or township be 42 u s e 5302. closely settled. "(m) In the case of any application which identifies any property in accordance with subsection (c)(4)(B), the Secretary may not commit funds with respect to an approved application unless the applicant has certified to the Secretary that the appropriate State historic preservation officer and the Secretary of the Interior have been provided an opportunity to take action in accordance with the provisions of section 121(b). 94 Stat. 1620. "(nXD For the purposes of this section, the term 'city' includes 42 u s e 5320. Guam, the Virgin Islands, and Indian tribes. "City.'^ "(2) The Secretary may not approve a grant to an Indian tribe under this section unless the tribe (A) is located on a reservation or in an Alaskan Native Village, and (B) is an eligible recipient under the State and Local Fiscal Assistance Act of 1972. 31 u s e 1221 "(o) If no amounts are set aside under, or amounts are precluded note. from being appropriated for this section for fiscal years after fiscal year 1983, any amount which is or becomes available for use under
95 STAT. 396 PUBLIC LAW 97-35—AUG. 13, 1981 this section after fiscal year 1983 shall be added to amounts appropn- 42 u s e 5303. ated under section 103. % _ * 94 Stat. 1620. (b) Section 121 of such Act is amended by striking out "subsecGbn 42 u s e 5320. (cX7XB)" in subsection (b) and inserting in lieu thereof "subsection (c)(4XB)". Effective date. (c) The amendments made by subsections (a) and (b) shall become 42USC5318 effective on the effective date of regulations implementing such note. subsections. As soon as practicable, but not later than January 1, Rules and regulations. 1982, the Secretary shall issue such final rules and regulations as the Secretary determines are necessary to carry out such subsections. COMMUNITY DEVELOPMENT TECHNICAL AMENDMENTS SEC. 309. (a) Section 102(a) of the Housing and Community Develop- 42 u s e 5302. ment Act of 1974 is amended— (1) by striking out paragraphs (18) and (19); (2) by inserting immediately after paragraph (6) the following: "Npnentitlement "(7) The term 'nonentitlement area' means an area which is area." not a metropolitan city or part of an urban county."; and (3) by redesignating the remaining paragraphs accordingly. (b) Section 102(c) of such Act is amended by striking out a (Community Development Program in whole or in part" and inserting 94 Stat. 1614. in lieu thereof "activities assisted under this title". 42 u s e 5302. (c) The first sentence of section 102(d) of such Act is amended— (1) by striking out "103(aXl)" and inserting in lieu thereof "103"; and (2) by striking out "unless the application by the urban county is disapproved or withdrawn prior to or during such three-year period' and inserting in lieu thereof "unless the urban county does not receive a grant for any year during such three-year 94 Stat. 1615. period". 42 u s e 5304. (d) Section 104(j) of such Act is amended by striking out "planning a joint community development program, meeting the application requirements of this section, and implementing such program" and inserting in lieu thereof "submitting a statement under section 104(a) 42 u s e 5305. and carrying out activities under this title". (e) The caption of section 105 of such Act is amended to read as follows: "EUGIBLE ACTIVITIES". (f) Section 105(a) of such Act is amended— (1) by striking out the first sentence and "These activities" in the second sentence and inserting in lieu thereof "Activities assisted under this title"; (2) by striking out "program" in paragraph (6); (3) by striking out the Community Development Program" in paragraph (9) and inserting in lieu thereof "activities assisted under this title"; (4) by striking out "to the community development program" in paragraph (11); (5) by striking out "(as specifically" and all that follows through "104(aXl)" in paragraph (14) and inserting in lieu thereof "which are carried out by public or private nonprofit 94 Stat. 1618. entities"; and (6) by striking out "(as specifically described in the application submitted pursuant to section 104)" in paragraph (15). (g) Section 105(b) of such Act is amended by striking out "a grant" 94 Stat. 1615. and inserting in lieu thereof "assistance". 42 u s e 5306. (h) The second sentence of section 106(bX4) of such Act is amended by striking out "for a grant under subsection (c) or (e)" and inserting
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 397 in lieu thereof the following: "to receive assistance under subsection (d)". (i) Section 108(d)(2) of such Act is amended by striking out 42 use 5308. "approved or". 0) The first sentence of section 110 of such Act is amended by 42 use 53io. striking out "grants" and inserting in lieu thereof "assistance . (k) The first sentence of section 112(a) of such Act is amended by 42 use 5312. striking out "103(a)" and inserting in lieu thereof "103". (1) Section 113(a)(2) of such Act is amended by striking out "as 42 use 5813. approved by the Secretary". (m) Section 116(b) of such Act is amended to read as follows: 94 Stet. 1622. "(b) In the case of funds available for any fiscal year, the Secretary ^^ shall not consider any statement under section 104(a), unless such statement is submitted on or prior to such date (in that fiscal year) as the Secretary shall establish as the final date for submission of statements in that year.". COMMUNITY DEVELOPMENT MISCELLANEOUS AMENDMENTS SEC. 310. (a) Section 102(aK4) of the Housing and Community Development Act of 1974 is amended by inserting the following before 42 use 5302. the period at the end thereof: "or until September 30,1982, whichever is later". (b) Section 102(a)(6) of such Act is amended by inserting at the end thereof the following: "Any urban county (A) which qualified as an urban county in fiscal year 1981, (B) the population of which includes all of the population of the county (other than the population of metropolitan cities therein), and (C) the population of which for fiscal year 1982 falls below the amount required by clause (B) of the preceding sentence by reason of the 1980 decennial census shall be considered as meeting the population requirements of such clause for fiscal year 1982 and shall not be subject to the provisions of section 102(d) in that fiscal year.". REHABIUTATION LOANS SEC. 311. (a) Subsection (a)(1)(D) of section 312 of the Housing Act of 1964 is amended by striking out "an approved community develop- 42 use I452b. ment program" and inserting in lieu thereof "community develop- ment activities". (b) Subsection (d) of such section is amended— 94 Stat. 1622. (1) by inserting "and" after "October 1, 1979," in the first sentence * (2) by striking out "and not to exceed $129,000,000 for the fiscal year beginning on October 1, 1981," in the first sentence; and (3) by striking out the last sentence. (c) Subsection (h) of such section is amended by striking out "1982" each place it appears and inserting in lieu thereof "1983". (d) Subsection (j)(l) of such section is amended by striking out the second sentence. URBAN H O M E S T E A D I N G SEC. 312. The first sentence of section 810(h) of the Housing and Community Development Act of 1974 is amended by striking out 12 use I706e. "and not to exceed $26,000,000 for the fiscal year 1979"^ and inserting in lieu thereof "not to exceed $26,000,000 for the fiscal year 1979, and not to exceed $13,467,000 for the fiscal year 1983".
95 STAT. 398 PUBLIC LAW 97-35—AUG. 13, 1981 REPEALERS SEC. 313. (a) Title Vn of the Housing and Ck)mmunity Development 42 u s e 8121 Amendments of 1978 is hereby repealeid. note. (b) Section 701 of the Housing Act of 1954 is hereby repealed. 94 Stat. 1662. 40 u s e 461. NEIGHBORHOOD REINVESTMENT CORPORATION SEC. 314. Section 608(a) of the Neighborhood Reinvestment Corpo- 94 Stat. 1645. ration Act is amended— 42 u s e 8107. (1) by striking out "and" after "1980,"; and (2) by inserting the following before the period at the end thereof: ", and not to exceed $14,950,000 for fiscal year 1982". REPORT ON BLOCK GRANT PROGRAM Report to SEC. 315. Not later than 270 days after the date of enactment of this eongress. ^Q^^ ^jjg Secretary of Housing and Urban Development shall report to the Congress on administrative and legislative steps that can be taken to-— (1) require all grantees to concentrate their block grant funds in distressed geographic areas small enough so that visible improvements can be achieved in a reasonable time period and to ensure that claimed benefits to low- and moderate-income per- sons are, in actuality, occurring; (2) reduce the broad list of activities currently eligible so that funds can be focused on those activities which meet the cities' most urgent revitalization needs; (3) develop overall income eligibility requirements for recipi- ents of block grant supported rehabilitation; and (4) limit eligible rehabilitation work to that which is essential to restore the housing unit to a decent, safe, and sanitary or energy efficient condition, specifically prohibiting nonessential and luxury items, so that more homes needing basic repairs C£m be rehabilitated. PART 2—HOUSING ASSISTANCE PROGRAMS HOUSING AUTHORIZATIONS Contracts. SEC. 321. (a) The first sentence of section 5(c)(1) of the United States 94 Stat. 1624. Housing Act of 1937 is amended by inserting immediately after 42 u s e 1437c. "1980" the following: ", and by $906,985,000 on October 1, 1981". (b) The second sentence of section 5(cXl) of such Act is amended by striking out "Acts;" and all that follows through the period and inserting in lieu thereof the following: "Acts. In addition, the aggre- gate amount which may be obligated over the duration of the contracts may not exceed $31,200,000,000 with respect to the addition- al authority provided on October 1, 1980, and $18,087,370,000 with respect to the additional authority provided on October 1, 1981.". (c) Section 5(c) of such Act is amended by— (1) redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively; and (2) inserting immediately after paragraph (2) the following: "(3)(A) Of the additional authority approved in appropriation Acts and made available on October 1, 1981, the Secretary shall make available at least $75,000,000 for assistance to projects under section 94 Stat. 1625. 14. 42 u s e 1437/.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 399 "(B) Of the balance of the additional authority referred to in the preceding subparagraph which remains after deducting the amount to be provided for assistance to projects under section 14, the 94 Stat. 1625. Secretary shall allocate such authority for use in different areas and 42 u s e 1437Z. communities in accordance with section 213(d) of the Housing and Community Development Act of 1974, except that on a national basis 42 u s e 1439. the Secretary may not enter into contracts aggregating— "(i) more than 45 per centum of such baleuice for existing units assisted under this Act; and "(ii) more than 55 per centum of such balance for newly constructed and substantially rehabilitated units assisted under this Act. "(C) After making allocations referred to in subparagraph (B), the General local Secretary shsM, to the extent allowable within the percentage limita- government preferences, tions conteiined in such subparagraph and within the available accommodation. contract and budget authority, accommodate the preferences of units of general local government, which preferences shall be established after consultation with the appropriate public housing agencies, regarding (i) the mix among newly constructed, substantially reha- bilitated, existing, or moderately rehabilitated units; (ii) the pro- grams under which assistance is to be provided; and (iii) the extent to which such allocation should be used for comprehensive improve- ment assistance under section 14.". (d) Section 9(c) of such Act is amended— 42 u s e 1437g. (1) by striking out "and" after "on or after October 1,1979,"; and (2) by inserting before the period at the end thereof the following: ", and not to exceed $1,500,000,000 on or after October 1,1981". (e) Section 213(d) of the Housing and Community Development Act Financial of 1974 is amended by adding at the end thereof a new paragraph to assistance, retention. read as follows: 42 u s e 1439. "(4) Notwithstanding any other provision of law, with respect to fiscal years beginning after September 30, 1981, the Secretary of Housing and Urban Development may not reteiin more than 15 per centum of the financial assistance which becomes available under programs described in subsection (aXD during any fiscal year. Any Allocation such financial assistance which is retciined shall be available for use. subsequent allocation to specific areas and communities, and may only be used for— "(A) unforeseeable housing needs, especially those brought on by natural disasters or special relocation requirements; "(B) support for the needs of the handicapped or for minority enterprise; "(C) providing for assisted housing as a result of the settlement of litigation; "(D) small research and demonstration projects; "(E) lower-income housing needs described in housing assist- ance plans, including activities carried out under areawide housing opportunity plans; and "(F) innovative housing programs or alternative methods for meeting lower-income housing needs approved by the Secretary, including assistance for infrastructure in connection with the Indisui Housing Program.". (fKD The first sentence of section 201(h) of the Housing and Community Development Amendments of 1978 is amended— 12 use (A) by striking out "and" after "the fiscal year 1980,"; 1715z-la.
95 STAT. 400 PUBLIC LAW 97-35—AUG. 13, 1981 (B) by inserting before the period at the end thereof the following: ", and not to exceed $4,000,000 for the fiscal year 1982"; and (C) by striking out the comma immediately following "Act" and inserting in lieu thereof a closed parenthesis. (2) Section 201 of the Housing and Community Development 12 u s e 1715Z-1 Amendments of 1978 is amended— and note, (A) by redesignating subsections (h) and (i) as subsections (j) 1715z-la. and (k), respectively; and 12 use (B) by inserting the following new subsection after subsection 1715z-la. (g): "(h) The Secretary may not use any of the assistance available under this section during any fiscal year beginning on or after October 1, 1981, to supplement any contract to make rental assist- ance pajrments which was made pursuant to section 101 of the 12 u s e 1701s, Housing and Urban Development Act of 1965.". 42 u s e 1451. (3) The third sentence of section 236(f)(3) of the National Housing Post, p. 403. Act, as redesignated by section 322(f)(7) of this part, is amended by striking out "September 30, 1981" and inserting in lieu thereof "September 30,1982". TENANT RENTAL PAYMENTS 42 use 1437a. SEC. 322. (a) Section 3 of the United States Housing Act of 1937 is amended to read as follows: RENTAL P A Y M E N T S ; DEFINITIONS "SEC. 3. (a) Dwelling units assisted under this Act shall be rented only to families who are lower income families at the time of their initial occupancy of such units. A family shall pay as rent for a dwelling unit assisted under this Act the highest of the following amounts, rounded to the nearest dollar: "(1) 30 per centum of the family's monthly adjusted income; "(2) 10 per centum of the family's monthly income; or "(3) if the family is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the family's actual housing costs, is specifically designated by such agency to meet the family's housing costs, the portion of such payments which is so designated. "(b) When used in this Act: "(1) The term 'lower income housing' means decent, safe, and sanitary dwellings assisted under this Act. The term 'public housing' means lower income housing, and all necessary appurtenances thereto, assisted under this Act other than under section 8. When used in reference to public housing, the term 'lower income housing project' or 'project' means (A) housing developed, acquired, or assist- ed by a public housing agency under this Act, and (B) the improve- ment of any such housing. "(2) The term 'lower income families' means those families whose incomes do not exceed 80 per centum of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 80 per centum of the median for the area on the basis of the Secretary's findings that such variations are necessary because of prevailing levels of construction costs or unusu- ally high or low family incomes. The term 'very low-income families' means lower income families whose incomes do not exceed 50 per
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 401 centum of the median family income for the area, as determined by the Secretary with adjustments for smaller and larger families. "(3) The term 'families' includes families consisting of a single person in the case of (A) a person who is at least sixty-two years of age or is under a disability as defined in section 223 of the Social Security Act or in section 102 of the Developmental Disabilities Services and 42 use 423. Facilities Construction Amendments of 1970, or is handicapped, (B) a 42 use 6001. displaced person, (C) the remaining member of a tenant family, and (D) other single persons in circumstances described in regulations of the Secretary. In no event shall more than 15 per centum of the units under the jurisdiction of any public housing agency be occupied by single persons under clause (D). In determining priority for admission to housing under this Act, the Secretary shall give preference to those single persons who are elderly, handicapped, or displaced before those eligible under clause (D). The term 'elderly families' means families whose heads (or their spouses), or whose sole members, are persons described in clause (A). A person shall be considered handi- capped if such person is determined, pursuant to regulations issued by the Secretary, to have an impairment which is expected to be of long-continued and indefinite duration, substantially impedes such person's ability to live independently, and is of such a nature that such ability could be improved by more suitable housing conditions. The term 'displaced person' means a person displaced by governmen- tal action, or a person whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized pursuant to Federal disaster relief laws. Notwithstanding the preceding provisions of this subsection, the term 'elderly families' includes two or more elderly, disabled, or handicapped individuals living together, or one or more such individuals living with one or more persons determined under regulations of the Secretary to be essential to their care or well being. "(4) The term 'income' means income from all sources of each member of the household, as determined in accordance with criteria prescribed by the Secretary. "(5) The term 'adjusted income' means the income which remains after excluding such amounts or types of income as the Secretary may prescribe. In determining amounts to be excluded from income, the Secretary may, in the Secretary's discretion, take into account the number of minor children in the household and such other factors as the Secretary may determine are appropriate. "(6) The term 'public housing agency' means any State, county, municipality, or other governmental entity or public body (or agency or instrumentality thereof) which is authorized to engage in or assist in the development or operation of lower income housing. "(7) The term 'State includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions of the United States, the Trust Territory of the Pacific Islands, and Indian tribes, bands, groups, and Nations, including Alaska Indians, Aleuts, and Eskimos, of the United States. "(8) The term 'Secretary' means the Secretary of Housing and Urban Development. "(c) When used in reference to public housing: "(1) The term 'development' means any or all undertakings neces- sary for planning, land acquisition, demolition, construction, or equipment, in connection with a lower income housing project. The term 'development cost' comprises the costs incurred by a public housing agency in such undertakings and their necessary financing (including the payment of carrying charges), and in otherwise carry-
95 STAT. 402 PUBLIC LAW 97-35—AUG. 13, 1981 ing out the development of such project. Construction activity in connection with a lower income housing project may be confined to the reconstruction, remodeling, or repair of existing buildings. "(2) The term 'operation' means any or all undertakings appropri- ate for management, operation, services, maintenance, security (in- cluding the cost of security personnel), or financing in connection with a lower income housing project. The term also means the financing of tenant programs and services for families residing in lower income housing projects, particularly where there is maximum feasible participation of the tenants in the development and oper- ation of such tenant programs and services. As used in this para- graph, the term 'tenant programs and services' includes the develop- ment and maintenance of tenant organizations which participate in the management of lower income housing projects; the training of tenants to manage and operate such projects and the utilization of their services in project management and operation; counseling on household management, housekeeping, budgeting, money manage- ment, child care, and similar matters; advice as to resources for job training and placement, education, welfare, health, and other com- munity services; services which are directly related to meeting tenant needs and providing a wholesome living environment; and referral to appropriate agencies in the community when necessary for the provision of such services. To the maximum extent available and appropriate, existing public and private agencies in the community shall be used for the provision of such services. "(3) The term 'acquisition cost' means the amount prudently required to be expended by a public housing agency in acquiring property for a lower income housing project.". 42 u s e 1437b, (b) Sections 4, 5, 9, and 11 of such Act are amended by striking out 1437c, 1437g, "LOW-INCOME" where it appears in the caption accompanying each 14371. such section and by inserting in lieu thereof "LOWER INCOME". 42 u s e 1437, (c) Sections 2, 4, 5, 6, 9, 11, 12, and 14 of such Act are amended by 1437b-1437d, striking out "low income" and "low-income" wherever they appear 1437g, 14371, 1437J; and inserting in lieu thereof "lower income". 94 Stat. 1625, (d) Section 6(c)(2) of such Act is amended by striking out the phrase 42 u s e 1437/. "at intervals of two years (or at shorter intervals where the Secretary 42 u s e 1437d. deems it desirable)" and inserting in lieu thereof "no less frequently than annually". 42 u s e 1437f. (e) Section 8 of such Act is amended— (1) by striking out paragraph (3) of subsection (c) and inserting in lieu thereof the following: "(3) The amount of the monthly assistance payment with respect to any dwelling unit shall be the difference between the maximum monthly rent which the contract provides that the owner is to receive for the unit and the rent the family is required to pay under section Ante, p. 400. 3(a) of this Act. Reviews of family income shall be made no less frequently than annually."; (2) by striking out paragraph (7) of subsection (c) and redesig- nating paragraph (8) of such subsection as paragraph (7); (3) by striking out paragraphs (1), (2), and (3) of subsection (f) and redesignating paragraphs (4), (5), and (6) of such subsection as paragraphs (1), (2), and (3), respectively; (4) by striking out "The provisions of section 3(1), 5(e), and 6" in subsection (h) and inserting in lieu thereof "Sections 5(e) and 6"; (5) by striking out the comma after the word "Act" in subsec- tion (h); and (6) by striking out "25 per centum of one-twelfth of the annual income of such family" in paragraph (3) of subsection (j) and
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 403 inserting in lieu thereof "the rent the family is required to pay under section 3(a) of this Act". Ante, p. 400. (f) Section 236 of the National Housing Act is amended— 12 use I7i5z-l. (1) by striking out "two years" in subsection (e) and inserting in lieu thereof "one year"; (2) by striking out "25 per centum of the tenant's income" in the second sentence of subsection (fKD and inserting in lieu thereof "30 per centum of the tenant's adjusted income"; (3) by striking out clause (ii) in the third sentence of subsection (f)(1) and inserting in lieu thereof the following: "(ii) to permit the charging of a rental for such dwelling units at such an amount less than 30 per centum of a tenant's adjusted income as the Secretary determines repre- sents a proportionate decrease for the utility charges to be paid by such tenant, but in no case sheill such rental be lower than 25 per centum of a tenant's adjusted income.": (4) by striking out "25 per centum of their income' in para- graph (2) of subsection (f) and inserting in lieu thereof "30 per centum of their adjusted income"; (5) by striking out "25 per centum of the tenant's income" in paragraph (2) of subsection (f) and inserting in lieu thereof "the highest of the following amounts, rounded to the nearest dollar: "(A) 30 per centum of the tenant's monthly adjusted income; "(B) 10 per centum of the tenant's monthly income; or "(C) if the family is receiving pajmients for welfare assist- ance from a public agency and a part of such payments, adjusted in accordance with the family's actusd housing costs, is specifically designated by such agency to meet the family's housing costs, the portion of such pajrments which is so designated"; (6) by striking out the third sentence in paragraph (2) of sulDsection (f); (7) by striking out subparagraph (A) of subsection (f)(3) and redesignating subsection (f)(3XB) as subsection (f)(3); and (8) by striking out subsection (m) and inserting in lieu thereof the following: "(m) For the purpose of this section the term 'income' means income from all sources of each member of the household, as determined in accordance with criteria prescribed by the Secretary. In determining amounts to be excluded from income, the Secretary may, in the Secretary's discretion, take into account the number of minor children in the household and such other factors as the Secretary may determine are appropriate.". (g) Section 101 of the Housing and Urban Development Act of 1965 12 use I70is, is a m e n d e d - 42 use 1451. (1) by striking out paragraph (2) in subsection (c) and inserting in lieu thereof the following: "(2) 'income' means income from all sources of each member of the household, as determined in accordance with criteria pre- scribed by the Secretary. In determining amounts to be excluded from income, the Secretary may, in the Secretary's discretion, take into account the number of minor children in the household and such other factors as the Secretary may determine are appropriate."; (2) by striking out the first sentence of subsection (d) and inserting in lieu thereof the following: "The amount of the annual payment with respect to any dwelling unit shall be the
95 STAT. 404 PUBLIC LAW 97-35—AUG. 13, 1981 lesser of (1) 70 per centum of the fair market rent, or (2) the amount by which the fair market rental for such unit exceeds 30 per centum of the tenant's adjusted income."; and (3) by striking out ", except the elderly, at intervals of two years (or at shorter intervals in cases where the Secretary may deem it desirable)" in paragraph (2) of subsection (e), and bv inserting in lieu thereof "no less frequently than annually*. (h) Title If of the Housing and C!onununity Development Amend- ments of 1979 is amended— 42 u s e 1437a (1) by striking out subsection (c) in section 202; and note. (2) by striking out subsection (c) in section 203. 12 u s e 1701s note. (iXD In determining the rent to be paid by tenants who are Rent payments, occupying housing assisted under the authorities amended by this determination. section on the effective date of this Act, the Secretary, notwithstand- 42 u s e 1437a ing any other provision of this section, may provide for delayed note. applicability, or for staged implementation, of the procedures for determining rent required by the provisions of subsections (a) through (h) of this section if the Secretary determines that immediate application of such procedures would be impracticable, would violate the terms of existing leases, or would result in extraordinary hard- ship for any class of tenants. The Secretary shall provide that the amount of rent paid by any family shall not increase, as a result of the amendments made by this section and as a result of any other provision of Federal law redefining which governmental benefits are required to or may be considered as income, by more than 10 per centum during any 12-month period unless the increase above such 10 per centum is attributed solely to increases in income which are not caused by such amendments or by such redefinitions. The limitation contained in the preceding sentence shall remain in effect and may not be changed or superceded except by another provision of law which amends tms subsection. Notwithstanding any other provi- sion of this section, application of the procedures for determining rent contained in this section shall not result in a reduction in the amount of rent paid by any tenant below the amount paid by such tenant immediately precedmg the effective date of this Act. (2) Tenants of housing assisted under the provisions of law amend- ed by this section whose occupancy begins after the effective date of this Act shall be subject to immediate rent payment determinations in accordance with the amendments contained in subsections (a) through (h), except that the Secretary may provide for delayed applicability, or for staged implementation, of these requirements for such tenants if the Secretary determines that immediate application of the requirements of this section would be impracticable, or that uniform procedures for assessing rents would significantly decrease administrative costs and burdens. (3) The Secretary's actions and determinations and the procedures for making determinations pursuant to this subsection shall not be reviewable in any court. The provisions of subsections (a) through (h) shall be implemented and fully applicable to all affected tenants no later than five years following the date of enactment of this Act, except that the Secretary may extend the time for implementation if the Secretary determines that full implementation would result in extraordinary hardship for any class of tenants. INCOME EUGIBIUTY 42 u s e 1437 SEC. 323. The United States Housing Act of 1937 is amended by note. adding at the end thereof the following:
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 405 "INCOME EUGIBIUTY FOR ASSISTED HOUSING "SEC. 16. (a) Not more than 10 per centum of the dwelling units 42 use I437n. which were available for occupancy under public housing annual contributions contracts and section 8 housing assistance payments contracts under this Act before the effective date of the Housing and Community Development Amendments of 1981, and which will be Ante. p. 384. leased on or after such effective date shall be available for leasing by lower income families other than very low-income families. "Ot)) Not more than 5 per centimi of the dwelling units which become available for occupancy under public housing annual contri- butions contracts and section 8 housing assistance payments con- tracts under this Act on or after the effective date of the Housing and Community Development Amendments of 1981 shall be available for leasing by lower income families other than very low-income fami- lies.". COST REDUCTION IN ASSISTED HOUSING SEC. 324. Section 8 of the United States Housing Act of 1937 is 42 use I437f. amended— (1) by inserting after the first sentence of subsection (bX2) the following: "To increase housing opportunities for very low- income families, the Secretary shall assure that newly con- structed housing to be assisted under this section is modest in design."; (2) by adding at the end of subsection (cX2) the following: Contract rents, "(D) Notmthstanding the foregoing, the Secretary shall limit increases,limitation. increases in contract rents for newly constructed or substantially rehabilitated projects assisted under this section to the amount of operating cost increases incurred with respect to comparable rent«d dwelling units of various sizes and tjrpes in the S£ime market area which are suitable for occupancy by families assisted under this section. Where no comparable dwelling units exist in the same market area, the Secretary shall have authority to approve such increases in accordance with the best available data regarding operating cost increases in rental dwelling units."; and (3) by adding at the end thereof the following: "(1) After selection of a proposal involving newly constructed or substantially rehabilitated units for assistance under this section, the Secretary shall limit cost and rent increases, except for adjustments in rent pursuant to section 8(c)(2), to those approved by the Secretary. The Secretary may approve those increases only for unforeseen factors beyond the owner's control, design chsmges required by the Secretary or the local government, or changes in financing approved by the Secretary. "(m) For the purpose of achieving the lowest cost in providing units in newly constructed projects assisted under this section, the Secre- tary shall give a preference in entering ihto contracts under this section for projects which are to be located on specific tracts of land provided by States or units of local government if the Secretary determines that the tract of land is suitable for such housing, and that affording such preference will be cost effective. "(n) In msJdng assistance available under subsection (e)(5) and subsection (i), the Secretary may provide assistance with respect to residential properties in which some or all of the dwelling units do not contain bathroom or kitchen facilities, if—
95 STAT. 406 PUBLIC LAW 97-35—AUG. 13, 1981 "(1) the property is located in an area in which there is a significant demand for such units, as determined by the Secre- tary; and (2) the unit of general local government in which the property is located and the local public housing agency approve of such units being utilized for such purpose. Waiver The Secretary may waive, in appropriate cases, the limitation and preference described in the second and third sentences of section Ante, p. 400. 3(b)(3) with respect to the assistance made available under this subsection.". AID FOR EUGIBLE FAMILIES 42 use I437f. SEC. 325. Section 8 of the United States Housing Act of 1937 is amended— (1) by adding at the end of subsection (b)(2) the following: "Each contract to make assistance payments for newly constructed or substantially rehabilitated housing assisted under this section entered into after the date of enactment of the Housing and Ante, p. 384. Community Development Amendments of 1981 shall provide that during the term of the contract the owner shall make available for occupancy by families which are eligible for assist- ance under this section, at the time of their initial occupancy, the number of units for which assistance is committed under the contract."; and (2) by inserting after "nonhandicapped persons" in the second sentence of subsection (c)(5) the following: "which are not subject to mortgages purchased under section 305 of the National Hous- 12 use 1720. ingAct". MISCELLANEOUS HOUSING ASSISTANCE PROVISIONS 42 u s e 1437f. SEC. 326. (a) Section 8(c) of the United States Housing Act of 1937 is amended by adding at the end thereof the following: "(8) Each contract under this section shall provide that the owner will notify tenants at least 90 days prior to the expiration of the contract of any rent increase which may occur as a result of the expiration of such contract.". Survey. (b)(1) Within one year after the date of enactment of this Act, the 42 u s e 1437f Secretary of Housing and Urban Development shall conduct a survey note. to determine the number of projects which are assisted under section 8 of the United States Housing Act of 1937 and are owned by developers or sponsors with five-year annual contributions contracts who plan to withdraw from the section 8 program when their contracts expire and who will increase rents in those projects to levels that the current residents of those projects will not be able to afford. Where such survey indicates that an owner intends to withdraw from the program, the Secretary shall notify affected residents of possible rent increases. Report to (2) Not later than one year after the date of the enactment of this eongress. Act, the Secretary shall transmit to the Congress a report indicating alternative methods which may be utilized for recapturing the cost to the Federal Government of front-end investment in those units which are removed from the section 8 program. Regulations. (c) The Secretary of Housing and Urban Development, after consul- 42 u s e 1437f tation with the Attorney General, shall develop regulations to pre- note. vent possible conflicts of interest on the part of Federal, State, and local government officials with regard to participation in projects assisted under section 8 of the United States Housing Act of 1937, and
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 407 shall make such r^ulations effective not later than 180 days after the date of enactment of this Act. (dXD The Secretary of Housing and Urban Development shall 42 u s e 1437f permit public housing agencies to retain, out of judgments obtained note. by them in recovering amounts wrongfully paid as a result of fraud and abuse in the housing assistance program under section 8 of the United States Housing Act of 1937, an amoimt equal to the greater of 42 u s e 1437f. (A) the legal expenses incurred in obtaining such judgments, or (B) 50 per centum of the amount actually collected on the judgments. (2) The Secretary of Housing and Urban Development shall include in the annual report under section 8 of the Department of Housing and Urban Development Act a summary of cases brought to ite attention by public housing authorities for prosecution or civil action, and shall describe the handling of such cases by such authorities and by the Department of Housing and Urban Development and the resolution of such cases in the court system. (e)(1) Section 8(dXlXB) of the United States Housing Act of 1937 is amended to read as follows: "(BXi) the lease between the tenant and the owner shall be for at least one year or the term of such contract, whichever is shorter, and shall contain other terms and conditions specified by the Secretary; and "(ii) the owner shall not terminate the tenancy except for serious or repeated violation of the terms and conditions of the lease, for violation of applicable Federal, State, or local law, or for other good cause;". (2) The amendment made by paragraph (1) shall apply with respect 42 u s e 1437f to leases entered into on or after October 1,1981. note. RENT SUPPLEMENTS SEC. 327. (a) Section 101(1) of the Housing and Urban Development Act of 1965 is amended to read as follows: 12 u s e 1701s. "(1) Notwithstanding the provisions of subsection (a) and any other provision of law, the Secretary may utilize additional authority under section 5(c) of the United States Housing Act of 1937 made available 94 Stat. 1624. by appropriation Acts on or after October 1, 1979, to supplement 42 u s e 1437c. assistance authority available imder this section.". (b) The second sentence of section 101(d) of such Act is repealed. SECTION 235 AMENDMENTS SEC. 328. (a) Section 235(cX2XA) of the National Housing Act is 94 Stat. 1630. amended by striking out "ceases for a period of 90 continuous days or 12 u s e 1715z. more makmg payments required under the mortgage, loan, or ad- vance of credit secured by such a property, or". (b) Section 235(hXl) of such Act is amended by adding the following new sentences at the end thereof: "The Secretary shall not enter into new contracts for assistance payments under this section after March 31,1982, except pursuant to a firm commitment issued on or before March 31, 1982, or pursuant to other commitments issued by the Secretary prior to June 30, 1981, reserving funds for housing to be assisted imder this section where such housing is included in a project pursuant to section 119 of the Housing and Community Development Act of 1974. In no event may the Secretary enter into any new 42 use 5318 contract for assistance payments under this section after September 30,1983.". 89-194 O—82 28:QL3
95 STAT. 408 PUBLIC LAW 97-35—AUG. 13, 1981 94 Stat. 1631. (c) Section 235(q)(14) of such Act is amended by striking out "ceases 12 use 1715z. for a period of 90 continuous days or more making payments on the mortgage, loan, or advance of credit secured by the property, or". RESTRICTION ON USE OF ASSISTED HOUSING SEC. 329. (a) Section 214 of the Housing and Community Develop- 94 Stat. 1637. ment Act of 1980 is amended to read as follows: 42 u s e 1436a. "RESTRICTION O N U S E O P ASSISTED HOUSING Resident aliens. "SEC. 214. (a) Notwithstanding any other provision of law, the Secretary of Housing and Urban Development may not make finan- cial assistance available for the benefit of any alien unless that alien is a resident of the United States and is— "(1) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(aX20) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15) and 8 U.S.C. 1101(a)(20)), excluding, among others, alien visitors, tour- ists, diplomats, and students who enter the United States tempo- rarily with no intention of abandoning their residence in a foreign country; "(2) an alien who entered the United States prior to June 30, 1948, or such subsequent date as is enacted by law, has continu- ously maintained his or her residence in the United States since then, and is not ineligible for citizenship, but who is deemed to be lawfully admitted for permanent residence as a result of an exercise of discretion by the Attorney General pursuant to section 249 of the Immigration and Nationality Act (8 U.S.C. 1259); "(3) an alien who is lawfully present in the United States pursuant to an admission under section 207 of the Immigration 94 Stat. 103. and Nationality Act (8 U.S.C. 1157) or pursuant to the granting of asylum (which has not been terminated) under section 208 of 94 Stat. 105. such Act (8 U.S.C. 1158); "(4) an alien who is lawfully present in the United States as a result of an exercise of discretion by the Attorney General for emergent reasons or reasons deemed strictly in the public inter- est pursuant to section 212(d)(5) of the Immigration and Nation- 94 Stat. 107. ality Act (8 U.S.C. 1182(d)(5)); or "(5) an alien who is lawfully present in the United States as a result of the Attorney General's withholding deportation pursu- ant to section 243(h) of the Immigration and Nationality Act (8 94 Stat. 107. U.S.C. 1253(h)). "Financial "(b) For purposes of this section the term 'financial assistance' assistance." means financial assistance made available pursuant to the United 42 u s e 1437 States Housing Act of 1937, section 235 or 236 of the National note. Housing Act, or section 101 of the Housing and Urban Development 12 u s e 1715z, 1715Z-1. Act of 1965.". 12 u s e 1701s, (b) An alien who is lawfully present in the United States as a result 42 u s e 1451. of being granted conditional entry pursuant to section 203(a)(7) of the 42 u s e 1436a Immigration and Nationalilty Act (8 U.S.C. 1153(a)(7)) before April 1, note. 1980, because of persecution or fear of persecution on account of race, 94 Stat. 107. religion, or political opinion or because of being uprooted by cata- strophic natural calamity shall be deemed, for purposes of section 214 of the Housing and Community Development Act of 1980, to be an Supra. alien described in section 214(a)(3) of such Act.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 409 PAYMENT FOR DEVELOPMENT MANAGERS SEC. 329A. The Secretary of Housing and Urban Development shall 42 use I437j-i. develop and implement a revised fee schedule for development managers of lower income housing projects assisted under the United States Housing Act of 1987 so that the percentage limitation applica- 42 u s e 1437 ble to fees chargeable in connection with smaller projects is increased note. to a minimum level which is practicable. REVIEW OF OPERATING SUBSIDY FORMULA SEC. 329B. The Secretary of Housing and Urban Development shall review the administration of the operating subsidy program under section 9 of the United States Housing Act of 1937, including an 42 use I437g. examination of alternative methods for distributing operating subsi- dies which provide incentives for efficient management, full rent collection, and improved maintenance of projects developed under the United States Housing Act of 1937. Not later than March 1,1982, Report to the Secretary of Housing and Urban Development shall transmit a eongress. report to the Congress on the results of such review. ENERGY EFFICIENCY EFFORTS SEC. 329C. Section 201 of the Housing and Community Develop- ment Amendments of 1978 is amended— 12 use (1) in subsection (fXD, by striking out "and" at the end of 1715z-la. subparagraph (B), by striking out the period at the end of subparagraph (C) and inserting in lieu thereof "; and", and by adding at the end thereof the following: "(D) an amount determined by the Secretary to be neces- sary to carry out a plan to upgrade the project to meet cost- effective energy efficiency standards prescribed by the Sec- retary."; and (2) by inserting after subsection (h) the following: "(i) Notwithstanding any other provision of law, in exercising any authority relating to the approval or disapproval of rentals charged tenants residing in projects which are eligible for assistance under this section, the Secretary— "(1) shall consider whether the mortgagor could control in- creases in utility costs by securing more favorable utility rates, by undertaking energy conservation measures which are finan- cially feasible and cost effective, or by taking other financially feasible and cost-effective actions to increase energy efficiency or to reduce energy consumption; and "(2) may, in his discretion, adjust the amount of a proposed rental increase where he finds the mortgagor could exercise such control.". RECOGNITION OF KANSAS DEPARTMENT OP ECONOMIC DEVELOPMENT SEC. 329D. The Secretary of Housing and Urban Development shall permit the Kansas Department of Economic Development to partici- pate as a public housing agency for the purposes of programs carried out under the United States Housing Act of 1937 and as a State 42 u s e 1437 agency for the purpose of section 883.203 of title 24 of the Code of note. Federal Regulations as in effect June 1,1981.
95 STAT. 410 PUBLIC LAW 97-35—AUG. 13, 1981 PURCHASE OF PHA OBLIGATIONS 12 u s e 2294a. SEC. 329E. In addition to any authority provided before October 1, 1981, the Secretary of Housing and Urban Development may, on and after October 1, 1981, enter into contracts for periodic payments to the Federal Financing Bank to offset the costs to the Bank of purchasing obligations (as described in the first sentence of section 12 u s e 2294. 16(b) of the Federal Financing Bank Act of 1973) issued by local public housing agencies for purposes of financing public housing projects 94 Stat. 1624. authorized by section 5(c) of the United States Housing Act of 1937. 42 u s e 1437c. Notwithstanding any other provision of law, such contracts may be entered into only to the extent approved in appropriation Acts, and the aggregate amount which may be obligated over the duration of such contracts may not exceed $400,000,000. There are hereby au- thorized to be appropriated any amounts necessary to provide for such payments. The authority to enter into contracts under this subsection shall be in lieu of any authority (except for authority provided specifically to the Secretary before October 1, 1981) of the Secretary to enter into contracts for such purposes under section 16(b) of the Federal Financing Bank Act of 1973. TENANT PARTICIPATION SEC. 329F. Section 202(b)(1) of the Housing and Communitv Devel- 12 use opment Amendments of 1978 is amended by striking out owner's 1715z-lb. action" and inserting in lieu thereof "owner's request for rent increase, conversion of residential rental units to any other use (including commercial use or use as a unit in any condominium or cooperative project), partial release of security, or major physiced alterations". FIRE S A F E T Y 94 Stat. 1625. SEC. 329G. Section 14(i)(l) of the United States Housing Act of 1937 42 u s e 1437/. is amended by inserting the following before the period at the end of the first sentence thereof: ", especially emergency and special pur- pose needs which relate to fire safety standards". SECTION 8 ASSISTANCE FOR MANUFACTURED HOMES Contracts. SEC. 329H. (a) Section 8(j) of the United States Housing Act of 1937 42 u s e 1437f. is amended to read as follows: "(j)(l) The Secretary may enter into contracts to make assistance payments under this subsection to assist lower income families by making rental assistance payments on behalf of any such family which utilizes a manufactured home as its principal place of resi- dence. Such payments may be made with respect to the rental of the real property on which there is located a manufactured home which is owned by any such family or with respect to the rental by such family of a manufactured home and the real property on which it is located. In carrying out this subsection, the Secretary may— "(A) enter into annual contributions contracts with public housing agencies pursuant to which such agencies may enter into contracts to make such assistance pa3rments to the owners of such real property, or "(B) enter into such contracts directly with the owners of such real property. Maximum "(2)(A) A contract entered into pursuant to this paragraph shall monthly establish the maximum monthly rent (including maintenance and rent. management charges) which the owner is entitled to receive for the
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 411 space on which a manufactured home is located and with respect to which assistance payments are to be made. The maximum monthly rent shall not exceed by more than 10 per centum the fair market rental established by the Secretary periodically (but not less than annually) with respect to the market area for the rental of real property suitable for occupancy by families assisted under this paragraph. "(B) The amount of any monthly assistance payment with respect to any family which rents real property which is assisted under this paragraph, and on which is located a manufactured home which is owned by such family shall be the difference between the rent the family is required to pay under section 3(a) of this Act and the sum 42 USC I437a. of— "(i) the monthly payment made by such family to amortize the cost of purchasing the manufactured home; "(ii) the monthly utility payments made by such family, subject to reasonable limitations prescribed by the Secretary; and "(iii) the maximum monthly rent permitted with respect to the real property which is rented by such family for the purpose of locating its manufactured home; except that in no case may such assistance exceed the total amount of such maximum monthly rent. "(3)(A) Contracts entered into pursuant to this paragraph shall Maximum establish the maximum monthly rent permitted with respect to the monthly manufactured home and the real property on which it is located and rent. with respect to which assistance payments are to be made. The maximum monthly, rent shall not exceed by more than 10 per centum the fair market rental established by the Secretary periodically (but not less than annually) with respect to the market area for the rental of a manufactured home and the real property on which it is located suitable for occupancy by families assisted under this paragraph, except that the maximum monthly rent may exceed the fair market rental by more than 10 but not more than 20 per centum where the Secretary determines that special circumstances warrant such higher maximum rent. "(B) The amount of any monthly assistance payment with respect to any family which rents a manufactured home and the real property on which it is located and which is assisted under this paragraph shall be the difference between the rent the family is required to pay under section 3(a) of this Act and the sum of^ "(i) the monthly utility payments made by such family, subject to reeisonable limitations prescribed by the Secretary; and "(ii) the maximum monthly rent permitted with respect to the manufactured home and the real property on which it is located. "(4) The provisions of subsection (cX2) of this section shall apply to the adjustments of maximum monthly rents under this subsection. "(5) Each contract entered into under this subsection shall be for a Contract terms. term of not less than one month and not more than 180 months, except that in any case in which the manufactured home park is substantially rehabilitated or newly constructed, such term may not be less than 240 months, nor more than the maximum term for a manufactured home loan permitted under section 2(b) of the National Housing Act. Post, p. 414. "(6) The Secretary may carry out this subsection without regard to whether the manufactured home park is existing, substantially rehabilitated, or newly constructed.
95 STAT. 412 PUBLIC LAW 97-35—AUG. 13, 1981 "(7) In the case of any substantially rehabilitated or newly con- structed manufactured home park containing spaces with respect to which assistance is made under this subsection, the principal amount of the mortgage attributable to the rental spaces within the park may not exceed an amount established by the Secretary which is equal to or less than the limitation for manufactured home parks descrioed in Post, p. 416. section 207(cX3) of the National Housing Act, and the Secretanr may increase such limitation in high cost areas in the manner described in such section. "(8) The Secretary may prescribe other terms and conditions which are necessary for tne purpose of carrying out the provisions of this subsection and which are consistent with the purposes of this subsection.". HOMEOWNERSHIP AND FIRE SAFETY STUDIES SEC. 3291. (aXD The Secretary of Housing and Urban Development shall conduct a study of—- (A) the extent, if any, to which section 8(cX7) of the United 42 use i437f. States Housing Act of 1937 has been utilized; (B) the results of any such utilization; (C) if such section has not been utilized or utilized only on a very restricted basis, the reasons why it has not been utilized more extensively; and (D) different methods by which such section could be utilized for increasing homeownership opportunities for lower income families. Recommenda- (2) As a result of such study, the Secretary shall, not later than tions, January 1,1982, transmit to the Congress recommendations regard- transmittal to Congress. ing the establishment of a demonstration project in which the Secretary would use section 8(cX7) of such Act for the purpose of increasing homeownership opportunities for lower income families. Such proposal shall include, but not be limited to, provisions for— (A) targeting such project so that existing housing may be preserved to the maximum extent practicable; and (B) recovering assistance in the case of resale of the property or in other appropriate cases. Report to (b) The Secretary shall conduct a study to the extent to which lower Congress. income housing projects do not meet applicable fire safety standards and report to the Congress with respect to such study not later than one year after the date of the enactment of this Act. PART 3—PROGRAM AMENDMENTS AND EXTENSIONS FEDERAL HOUSING ADMINISTRATION EXTENSIONS 94 Stat. 1638. SEC. 331. (a) Section 2(a) of the National Housing Act is amended by 12 u s e 1703. striking out "October 1, 1981" in the first sentence and inserting in lieu thereof "October 1,1982". 12 u s e 1715h. Ot>) Section 217 of such Act is amended by striking out "September 30,1981" and inserting in lieu thereof "September 30,1982". 12 u s e 1715i. (c) Section 221(f) of such Act is amended by striking out "September 30,1981" in the fifth sentence and inserting in lieu thereof Septem- ber 30,1982". 12 0 ^ ltl54. (dXD Section 235(m) of such Act is amended by striking out "September 30, 1981" and inserting in lieu thereof "September 30, 1982".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 413 (2) Section 235(q)(l) of such Act is amended by striking out "June 1, 94 Stat. 1631. 1981," in the fourth sentence thereof and inserting in lieu thereof 12 u s e 1715z. "September 30,1982,". (e) Section 236(n) of such Act is amended by striking out "Septem- 94 Stat. 1638. ber 30, 1981" and inserting in Heu thereof "September 30, 1982". 12 u s e 1715Z-1. (f) Section 244(d) of such Act is amended— 12 u s e 1715Z-9. (1) by striking out "September 30,1981" in the first sentence and inserting in lieu thereof "September 30,1982"; and (2) by striking out "October 1,1981" in the second sentence and inserting in lieu thereof "October 1,1982". (g) Section 245(a) of such Act is amended by striking out "Septem- 12 use ber 30, 1981" and inserting in lieu thereof "September 30, 1982". 1715Z-10. (h)(1) Section 809(f) of such Act is amended by striking out "Septem- 12 u s e 1748h-l. ber 30, 1981" in the second sentence and inserting in lieu thereof "September 30,1982". (2) Section 810(k) of such Act is amended by striking out "Septem- 94 Stat. 1639. ber 30, 1981" in the second sentence and inserting in lieu thereof 12 u s e 1748h-2. "September 30,1982". (i) Section 1002(a) of such Act is amended by striking out "Septem- 12 u s e 1749bb. ber 30, 1981" in the second sentence and inserting in lieu thereof "September 30,1982". (j) Section 1101(a) of such Act is amended by striking out "Septem- 12 u s e 1749aaa. ber 30, 1981" in the second sentence and inserting in lieu thereof "September 30,1982". FLEXIBLE INTEREST RATES SEC. 332. Section 3(a)(1) of Public Law 90-301 is amended by striking 94 Stat. 1639. out "October 1,1981" and inserting in lieu thereof "October 1,1982'" 12 u s e 1709-1. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SEC. 333. (a)(1) Section 305(c) of the Federal National Mortgage Association Charter Act is amended— 12 u s e 1720. (A) by striking out "and" after "1978,"; and (B) by inserting the following before the period at the end thereof:", and by $1,100,000,000 on October 1,1981". (2) Section 305 of such Act is amended by adding the following new subsection at the end thereof: "(k) During fiscal year 1982, the Association may not enter into Mortgage commitments to purchase under this section mortg£^es with an purchases. aggregate principal amount in excess of $1,973,000,000, except that the Association may not enter into commitments to purchase mort- gages secured by projects which do not contain units assisted under section 8 of the United States Housing Act of 1937 with an aggregate 42 u s e 1437f. principal amount in excess of $580,000,000.". (3) Section 306(g) of such Act is amended— 12 u s e 1721. (A) by inserting "(1)" after "(g)"; (B) by striking out "(1)" and "(2)" in the first sentence and inserting in lieu thereof "(i)" and "(ii)", respectively; and (C) by adding the following new paragraph at the end thereof: "(2) During fiscal year 1982, the Association may not enter into commitments to issue guarantees under this subsection in an aggre- gate amount in excess of $69,542,000,000.". (bXD In entering into commitments to purchase below-market, 12 u s e 1720 tandem plan mortgages during the period beginning on the date of note. the enactment of this Act and ending October 1,1982, under section 305 of the Federal National Mortgage Association Charter Act, the
95 STAT. 414 PUBLIC LAW 97-35—AUG. 13, 1981 Government National Mortgage Association may enter into such commitments only with respect to multifamily projects for which firm commitments for mortgage insurance under title II of the 12 use 1707. National Housing Act have been issued. (2) The Secretary of Housing and Urban Development shall con- tinue to process applications for mortgage insurance for multifamily projects under title II of the National Housing Act for a period of at least 90 days beginning on October 1,1981. GENERAL INSURANCE FUND 94 Stat. 1639. SEC. 334. Section 519(f) of the National Housing Act is amended by 12 u s e 1735c. inserting the following before the period at the end thereof: ", which amount shall be increased by $126,673,000 on October 1, 1981". UMITATION ON INSURANCE AUTHORITY SEC. 335. Title V of the National Housing Act is amended by adding the following new section at the end thereof: "UMITATION ON INSURANCE AUTHORITY 12 use i735f-9. "SEC. 531. During fiscal year 1982, the Secretary may not enter into commitments to insure under this Act loans and mortgages with an aggregate principal amount in excess of $41,000,000,000.". HOUSING FOR THE ELDERLY 12 use l70iq. SEC. 336. Section 202(a)(4XC) of the Housing Act of 1959 is amended by inserting the following before the period at the end of the second sentence: , and not more than $850,848,000 may be approved in appropriation Acts for such loans with respect to fiscal year 1982". RESEARCH AUTHORIZATIONS SEC. 337. The second sentence of section 501 of the Housing and 94 Stat. 1639. Urban Development Act of 1970 is amended bv striking out "and not 12 use to exceed $51,000,000 for the fiscal year 1981 and inserting in lieu 1701Z-1. thereof "not to exceed $51,000,000 for the fiscal year 1981, and not to exceed $35,000,000 for the fiscal year 1982". PROPERTY IMPROVEMENT AND MANUFACTURED HOME LOANS Insurance to SEC. 338. (a) Section 2(b) of the National Housing Act is amended to financial institu- read as follows: tions. 12 u s e 1703. "(b)(1) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it if the amoimt of such loan, advance of credit, or purchase exceeds— "(A) $17,500 ($20,000 where financing the installation of a solar energy system is involved) if made for the purpose of financing alterations, repairs and improvements upon or in connection with existing single-family structures or manufactured homes; "(B) $43,750 or an average amount of $8,750 per family unit ($50,000 and $10,000, respectively, where financing the installa- tion of a solar energy system is involved) if made for the purpose of financing the alteration, repair, improvement, or conversion of an existing structure used or to be used as an apartment house or a dwelling for two or more families;
PUBLIC LAW 97-35—AUG. 13,1981 95 STAT. 415 "(C) $22,500 ($35,000 in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home; "(D) $35,000 ($47,500 in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home and a suitably developed lot on which to place the home; "(E) such an amount as may be necessary, but not exceeding $12,500, if made for the purpose of financing the purchase, by an owner of a manufactured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home, and if the owner certifies that he or she will place the manufactured home on the lot acquired with such loan within six months after the date of such loan; "(F) $15,000 per family unit if made for the purpose of financ- ing the preservation of an historic structure; and (G) such principal amount as the Secretary may prescribe if made for the purpose of financing fire safety equipment for a nursing home, extended health care facility, intermediate health care facility, or other comparable health care facility. "(2) Because of prevailing higher costs, the Secretary may, by regulation, in Alaska, Guam, or Hawaii, increase any dollar amount limitation on manufactured homes or manufactured, home lot loans contained in this subsection by not to exceed 40 per centum. In other areas where needed to meet higher costs of land acquisition, site development, and construction of a permanent foundation in connec- tion with the purchase of a manufactured home or lot, the Secretary may, by regulation, increase any dollar amount limitation otherwise applicable by an additional $7,500. (3) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it if the term to maturity of such loan, advance of credit or purchase exceeds— "(A) fifteen years and thirty-two days if made for the purpose of financing alterations, repairs, and improvements upon or in connection with an existing single-family structure or manufac- tured home; "(B) fifteen years and thirty-two days if made for the purpose of financing the alteration, repair, improvement or conversion of an existing structure used or to be used as an apartment house or a dwelling for two or more families; "(C) twenty years and thirty-two days (twenty-three years and thirty-two days in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home; "(D) twenty years and thirty-two days (twenty-five years and thirty-two days in the case of a manufactured home composed of two or more modules) if made for the purpose of financing the purchase of a manufactured home and a suitably developed lot on which to place the home; "(E) fifteen years and thirty-two days if made for the purpose of financing the purchase, by the owner of a manufactured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home; "(F) fifteen years and thirty-two days if made for the purpose of financing the preservation of an historic structure; "(G) such term to maturity as the Secretary may prescribe if made for the purpose of financing the construction of a new
95 STAT. 416 PUBLIC LAW 97-35—AUG. 13, 1981 structure for use in whole or in part for agricultural purposes; and "(H) such term to maturity as the Secretary may prescribe if made for the purpose of financing fire safety equipment for a nursing home, extended health care facility, intermediate health care facility, or other comparable health care facility. "(4) For the purpose of this subsection— "(A) the term 'developed lot' includes an interest in a condo- minium project (including any interest in the common areas) or a share in a cooperative association; "(B) a loan to finance the purchase of a manufactured home or a manufactured home and lot may also finance the purchase of a garage, patio, carport, or other comparable appurtenance; and "(C) a loan to finance the purchase of a manufactured home or a manufactured home and lot shall be secured by a first lien upon such home or home and lot, its furnishings, equipment, accesso- ries, and appurtenances. "(5) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it unless the obligation bears such interest, has such maturity, and contains such other terms, conditions, and restrictions as the Secretary shall prescribe, in order to make credit available for the purpose of this title. Any such obligation with respect to which insurance is granted under this section shall bear interest and insurance premium charges not exceeding (A) an amount, with respect to so much of the net proceeds thereof as does not exceed $2,500, equivalent to $5.50 discount per $100 of original face amount of a one-year note payable in equal monthly installments, plus (B) an amount, with respect to any portion of the net proceeds thereof in excess of $2,500, equivalent to $4.50 discount per $100 of original face amount of such note. The amounts referred to in clauses (A) and (B) of the preceding sentence, when correctly based on tables of calculations issued by the Secretary or adjusted to eliminate minor errors in computation in accordance with requirements of the Secretary, shall be deemed to comply with such sentence. Refinancing. "(6)(A) Any obligation with respect to which insurance is granted under this section may be refinanced and extended in accordance with such terms and conditions as the Secretary may prescribe, but in no event for an additional amount or term in excess of any applicable maximum provided for in this subsection. "(B) The owner of a manufactured home lot purchased without assistance under this section but otherwise meeting the requirements of this section may refinance such lot under this section in connection with the purchase of a manufactured home if the borrower certifies that the home and lot is or will be his or her principal residence within six months after the date of the loan.". 94 Stat. 1641. (b) Section 207(c)(8) of the National Housing Act is amended by 12 use 1713. striking out "$8,000" and inserting in lieu thereof "$9,000". MORTGAGE INSURANCE FOR CONDOMINIUMS SEC. 339. (a) The first sentence of section 2340t)) of the National 12 use I7l5y. Housing Act is amended by inserting ", including a project in which the dwelling units are attached, semi-attached, or detached," after "multifamily project".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 417 HOUSING COUNSELING SEC. 339 A. Section 106(a)(3) of the Housing and Urban Development Act of 1968 is amended by inserting the following before the period at 12 USC I701x. the end of the first sentence: "; except that for the fiscal year 1982, there are authorized to be appropriated not to exceed $4,000,000 for such purposes". TECHNICAL AMENDMENTS SEC. 339B. (a) The last sentence of section 207(c)(3), section 213(p), the last proviso in section 220(d)(3)(B)(iii), section 221(k), the proviso in section 231(c)(2), and section 234(j) of the National Housing Act are 12 USC 1713, amended— 1715e, 1715k, 1715/, 1715v, (1) by inserting "therein" immediately after "installation" 1715y. wherever it appears; and (2) by striking out "therein" before the punctuation at the end thereof. (b) Section 223(f) of such Act is amended— 94 Stat. 1650. 12 USC 1715n. (1) by inserting "and" immediately after the semicolon at the end of paragraph (2)(A); and (2) by redesignating paragraph (5) as paragraph (4). (c) For purposes of paragraphs (1) and (4) of section 308(c) of the Definitions. 94 Stat. 1640. Housing and Community Development Act of 1980, the term "mobile 12 USC 1701 home" and the term "manufactured home" shall be deemed to et seq., 5401 et include the term "mobile homes" and the term "manufactured seq. homes", respectively. (d)(1) The material preceding the proviso in clause (2) of the first sentence of section 234(c) of the National Housing Act is amended to 12 USC 1715y. read as follows: "(2) the project is or has been covered by a mortgage insured under any section (except section 213(a) (1) and (2)) of this Act 12 USC 1715e. or the project was approved for a guarantee, insurance, or a direct loan under chapter 37 of title 38, United States Code, notwith- 38 USC 1801 et standing any requirements in any such section that the project be seq. constructed or rehabilitated for the purpose of providing rental housing:". (2) Section 318 of the Housing and Community Development Act of Repeal. 1980 is repealed. 94 Stat. 1646. LOWER COST TECHNOLOGY SEC. 339C. The Secretary of Housing and Urban Development is 12 USC authorized to develop and implement a demonstration program 1701Z-14. utilizing lower cost building technology for projects located on inner- city vacant land. REDUCTION OF 1981 AUTHORITY SEC. 339D. (a) Notwithstanding any other provision of law, the authorizations for appropriations for programs and activities admin- istered by the Secretary for Housing and Urban Development in fiscal year 1981 are reduced by $5,359,000,000. (b) This section takes effect upon the date of enactment of this Act. Effective date. NATIONAL INSTITUTE OF BUILDING SCIENCES SEC. 339E. (a) Section 809(h) of the Housing and Community Development Act of 1974 is amended by striking out "through 1982 12 USC i70lj-2. (with" and inserting in lieu thereof "through 1984 (with not more than $500,000 to be appropriated for each of the fiscal years 1982, 1983, and 1984 and with^'.
95 STAT. 418 PUBLIC LAW 97-35—AUG. 13, 1981 12 use 1701J-2. (b) Section 809(cX4) of such Act is amended by inserting the following before the period at the end thereof: "; except that, notwithstanding any such rules and procedures as may be adopted by the Institute, the President of the United States, by and with the advice and consent of the Senate, shall appoint, as representative of the public interest, two of the members of the Board of Directors selected each year for terms commencing in that year". NEW COMMUNITIES SEC. 389F. Section 717(b) of the National Urban Policy and New 42 u s e 4518. Community Development Act of 1970 is amended by adding the following new sentence at the end thereof: "With respect to fiscal year 1982, the Secretary may not issue obligations under this section in an aggregate amount in excess of $33,250,000.". PURCHASER-BROKER ARRANGEMENT SEC. 339G. Title V of the National Housing Act is amended by adding the following new section at the end thereof: PURCHASER-BROKER ARRANGEMENT 12 u s e 1735f-10. "SEC. 532. In carrying out the provisions of title II of this Act with 12 u s e 1707. respect to insuring mortgages secured by a one- to four-family residence, the Secretary may not exclude from the principal amount which may be insured under such title any sum solely on the basis that such sum is to be paid by the purchaser to a broker who has been the purchaser's agent in the purchase of the residence, but the principal amount of the mortgage, when such sum is added, shall not exceed the limitation as to maximum mortgage amount provided in title II.". MORTGAGE INSURANCE FOR HOSPITALS 12 u s e 1715Z-7. SEC. 339H. Section 242(dX5) of the National Housing Act is amended by adding at the end thereof the following: "This paragraph shall not limit the authoritj^ of the Secretary to approve a mortgage increase on any mortgage eligible for insurance under this paragraph at any time prior to final endorsement of the loan for insurance; except that such mortgage increase may not be approved for the cost of constructing any improvements not included in the original plans and specifications approved by the Department of Health and Human Services unless approved by the Secretary of Housing and Urban Development and by the Secretary of Health and Human Services.". PART 4-FLOOD, CRIME, AND RIOT INSURANCE FLOOD INSURANCE SEC. 341. (a) Section 1376(c) of the National Flood Insurance Act of 94 Stat. 1639. 1968 is amended— 42 u s e 4127. (1) by Striking out "and" after "1980,"; and (2) by inserting the following before the period at the end thereof ", and not to exceed $42,600,000 for the fiscal year 1982". 42 u s e 4026. 03)(1) Section 1319 of the National Flood Insurance Act of 1968 is amended by striking out "September 30,1981" and inserting in lieu thereof "September 30,1982".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 419 (2) Section 1336(a) of such Act is amended by striking out "Septem- 42 use 4056. ber 30, 1981" and inserting in lieu thereof "September 30, 1982". (cXD Section 1310(a) of such Act is amended by inserting "as 42 u s e 4017. described in subsection (f)" after "which shall be available". (2) Section 1310 of such Act is amended by adding the following new subsection at the end thereof : if) The fund shall be available, with respect to any fiscal year beginning on or after October 1,1981, only to the extent approved in appropriation Acts; except that the fund shall be available for the purnose described in subsection (dXD without such approval.". (cD(l) Chapter I of such Act is amended by adding the following new section at the end thereof: UNDEVELOPED COASTAL BARRIERS "SEC. 1321. (a) No new flood insurance coverage shall be provided 42 u s e 4028. under this title on or aiter October 1,1983, for any new construction or substeuitial improvements of structures located on undeveloped coastal barriers which shall be designated by the Secretary of the Interior. "(b) For purposes of this section— "(1) the term 'coastal barrier* means— "eoastal "(A) a depositional geolc^c feature (such as a bay barrier, barrier." tombolo, barrier spit, or beurier islemd) which— "(i) consists of unconsolidated sedimentary materials, "(ii) is subject to wave, tidal, and wind energies, and "(iii) protects landward aquatic habitats from direct wave attack; and "(B) all associated aquatic habitats including the adjacent wetlands, marshes, estuaries, inlets, and nearshore waters; "(2) a coastal barrier or any portion thereof shall be treated as an undeveloped coastal barrier for purposes of subsection (a) only if there are few manmade structures on the barrier or portion thereof and these structures and man's activities on the barrier do not significemtly impede geomorphic and ecological processes; and "(3) a coastal barrier which is included within the boundaries of an area established under Federal, State, or local law, or held by a qualified organization as defined in section 170(h)(3) of the Internal Revenue Code of 1954, primarily for wildlife refuge, 26 u s e 170. sanctuary, recreational, or natural resource conservation pur- poses shall not be designated as an undeveloped coastal barrier for purposes of subsection (a). "(c) A federally insured financial institution may make loans secured by structures which are not eligible forfloodinsurance under this title by reason of subsection (a).". (2) The Secretary of the Interior shall conduct a study for the Study. purpose of designating the undeveloped coastal barriers which will be 42 u s e 4028 affected by the amendment made by paragraph (1). Not later than note. Report to one year after the date of enactment of this Act, the Secretary shall eongress. transmit to the Congress a report of the findings and conclusions of such study together with a proposed designation of the undeveloped coastal barriers and any recommendation regarding the definition of the term "coastal barrier" as enacted by such amendment. (e) Section 1345 of such Act is amended by adding at the end thereof 42 u s e 4081. the following: "(c) The Director of the Federal Emergency Management Agency shall hold any agent or broker selling or undert^ing to sell flood
95 STAT. 420 PUBLIC LAW 97-35—AUG. 13, 1981 insurance under this title harmless from any judgment for damages against such agent or broker as a result of any court action by a policyholder or applicant arising out of an error or omission on the part of the Federal Emergency Management Agency, and shall provide any such agent or broker with indemnification, including court costs and reasonable attorney fees, arising out of and caused by an error or omission on the part of the Federal Emergency Manage- ment Agency and its contractors. The Director of the Federal Emer- gency Management Agency may not hold harmless or indemnify an agent or broker for his or her error or omission.". CRIME AND RIOT INSURANCE 12 use I749bbb. SEC. 342. (a) Section 1201(b) of the National Housing Act is amended— (1) by striking out "September 30,1981" in paragraph (1) and inserting in lieu thereof September 30,1982"; and (2) by striking out "September 30, 1984" in paragraph (IXA) and inserting in lieu thereof "September 30,1985". 12 use (b) Section 1211(b) of the National Housing Act is amended— i749bbb-3. (1) by inserting "and" at the end of paragraph (9); (2) by striking out "; and" at the end of paragraph (10) and inserting in lieu thereof a period; and (3) by striking out paragraph (11). PART 5-RURAL HOUSING AUTHORIZATIONS 94 Stat. 1667. SEC. 351. (a) Section 513 of the Housing Act of 1949 is amended— 42 use 1483. (1) by striking out "not to exceed $3,797,600,000 with respect to the fiscal year ending September 30,1981" in subsection (a) and inserting in lieu thereof "not to exceed $3,700,600,000 with • respect to the fiscal year ending September 30,1982"; (2) by striking out "not less than $3,120,000,000" in subsection (aXD and inserting in lieu thereof "not less than $3,170,000,000"; (3) by striking out "not more than $100,000,000" in subsection (a)(4) and inserting in lieu thereof "none"; (4) by striking out subsection (bX2) and inserting in lieu thereof the following: "(2) not to exceed $50,000,000 for loans and grants pursuant to 42 use 1474. section 504 for the fiscal year ending September 30, 1982, of which not more than $25,000,000 shall be available for grants;"; (5) by striking out subsection (bX3) and inserting in lieu thereof the following: "(3) not to exceed $25,000,000 for financial assistance pursuant 42 use I486. to section 516 for the fiscal year ending September 30, 1982;"; (6) by striking out "September 30,1981" in subsection (bX4) and inserting in lieu thereof "September 30,1982"; and (7) by striking out "and" at the end of subsection 0)X4), by striking out the period at the end of subsection (bX5) and inserting in lieu thereof "; and", and by adding at the end thereof the following: 42 use 1479. "(6) not to exceed $2,000,000 for the purposes of section 509(c) for the fiscal year ending September 30,1982.". ?o f^h }^r' Ot)) Section 515(bX5) of such Act is amended by striking out "Sep- 42 use 1485. tember 30,1981" and mserting in lieu thereof "(September 30,1982*'.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 421 (c) Section 517(aXl) of such Act is amended by striking out "Septem- 94 Stat. 1668. 42 u s e 1487. ber 80, 1981" and inserting in lieu thereof "September 30, 1982". (d) Section 521(aX2XD) of such Act is amended— 94 Stat. 1668. 42 u s e 1490a. (1) by striking "$493,000,000" and inserting in lieu thereof "$398,000,000"; and (2) by striking out "1981, except that" and all that follows through the period at the end thereof and inserting in lieu thereof "1982.". (e) Section 523 of such Act is amended— 94 Stat. 1668. 42 u s e 1490c. (1) by striking out "September 30,1981" each place it appears in subsection (f) and inserting in lieu thereof "September 30, 1982"; (2) by striking out "not to exceed $2,500,000 for fiscal year 1981" in the first sentence of subsection (g) and inserting in lieu thereof "not to exceed $3,000,000 for fiscal year 1982"; (3) by inserting the following after "shall be available" in the second sentence of subsection (g): ", to the extent approved in appropriation Acts,"; and (4) by inserting the following before the period at the end of the second sentence of subsection (g): "; except that not more than $5,000,000 may be made available during fiscal year 1982". INTEREST SUBSIDY PROGRAM SEC. 352. Section 521(aXlXB) of the Housing Act of 1949 is amended 94 Stat. 1669. 42 u s e 1490a. by striking out "shall" and iaserting in lieu thereof "may". REPORTS SEC. 353. The Secretary of Agriculture shall transmit a report to Transmittal to the Congress not later than March 1,1982, setting forth— eongress. (1) various options for presenting the budget of the Farmers Home Administration and alternatives to the use of Federal Financing Bank financing for rural housing programs; (2) workable definitions of "low income" which will target Farmers Home Administration housing assistance programs to a population substantially equivalent to the population served by the Department of Housing and Urban Development's assisted housing programs; (3) the effect of a requirement that 30 per centum of assistance provided by the Farmers Home Administration be provided to families with incomes at 50 per centum of area median income and recommendations for contribution requirements which will achieve equity with the contribution requirements of the Depart- ment of Housing and Urban Development's assisted housing programs; (4) recommendations for ensuring that subsidy levels for as- sisted families are minimized and that assisted families with similar circumstances in different regions of the country are treated equally; and (5) the Farmers Home Administration's efforts to minimize the cost of housing subsidized under its programs and the Farmers Home Administration's use of existing lower cost hous- ing technology.
95 STAT. 422 PUBLIC LAW 97-35—AUG. 13, 1981 Multifamiiy PART 6—MULTIFAMILY MORTGAGE FORECLOSURE Mortgage Foreclosure Act of 1981. SHORT TITLE 12 use 3701 SEC. 361. This part may be cited as the "Multifamiiy Mortgage note. Foreclosure Act of 1981". FINDINGS AND PURPOSE 12 use 3701. SEC. 362. (a) The Congress finds that— (1) disparate State laws under which the Secretary of Housing and Urban Development forecloses real estate mor^ages which the Secretary holds pursuant to title II of the National Housing 12 use 1707 Act or section 312 of the Housing Act of 1964 covering multiunit 42 use 1452b. residential and nonresidential properties burden the programs administered by the Secretary pursuant to these authorities, and cause detriment to the residents of the afTected projects and the community generally; (2) long periods to complete the foreclosure of these mortgages under certain State laws lead to deterioration in the condition of the properties involved; necessitate substantial Federal manage- ment and holding expenditures; increase the risk of vandalism, fire loss, depreciation, damsige, and waste with respect to the properties; and adversely affect the residents of the projects and the neighborhoods in which the properties are located; (3) these conditions seriously impair the Secretary's ability to protect the Federal financial interest in the affected properties and frustrate attainment of the objectives of the underljdng Federal program authorities, as well as the national housing go^ of "a decent home and a suitable living environment for every American family"; (4) application of State redemption periods to these mortgages following their foreclosure would impair the salability of the properties involved and discourage their rehabilitation and im- provement, thereby compounding the problems referred to in clause (3); (5) the availability of a uniform and more expeditious proce- dure for the foreclosure of these mortgages by the Secretary and continuation of the practice of not appl)dng postsale redemption periods to such mortgages will tend to ameliorate these condi- tions; and (6) providing the Secretary with a nonjudicial foreclosure procedure will reduce unnecessary litigation by removing many foreclosures from the courts where they contribute to over- crowded calendars. (b) The purpose of this part is to create a uniform Federal foreclosure remedy for multiunit residential and nonresidentisil mortgages held by the Secretary of Housing and Urban Development pursuant to title II of the National Housing Act or section 312 of the Housing Act of 1964. DEFINITIONS 12 use 3702. SEC. 363. As used in this part— (1) "mortgage" means a deed of trust, mortgage, deed to secure debt, security agreement, or any other form of instrument under which any interest in property, real, personal or mixed, or any interest in property including leaseholds, life estates, reversion- ary interests, and any other estates under applicable State law, is
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 423 conveyed in trust, mortgaged, encumbered, pledged, or otherwise rendered subject to a lien, for the purpose of securing the pa3niient of money or the performance of an obligation; (2) "multifamily mortgage" means a mortgage held by the Secretary pursuant to title 11 of the National Housing Act or section 312 of the Housing Act of 1964 covering any property, 12 use 1707. except a property on which there is located a one- to four-family ^^ use I452b. residence; (3) "mortgage agreement" meeins the note or debt instrument and the mortgage instrument, deed of trust instrument, trust deed, or instrument or instruments creating the mortgage, including any instrument incorporated by reference therein (including any applicable regulatory agreement), and any instru- ment or agreement amending or modifying any of the foregoing; (4) "mortgagor" means the obligor, grantor, or trustor named in the mortgage agreement and, unless the context otherwise indicates, includes the current owner of record of the security property whether or not personally liable on the mortgage debt; (5) "person" includes any individual, group of individuals, association, partnership, corporation, or organization; (6) "record" and "recorded" include "register" and "regis- tered" in the instance of registered land; (7) "security property" means the property, real, personal or mixed, or an interest in property, including leaseholds, life estates, reversionary interests, and any other estates under applicable State law, together with fixtures and other interests subject to the lien of the mortgage under applicable State law; (8) "State" means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and posses- sions of the United States, and the Trust Territory of the Pacific Islands, and Indian tribes as defined by the Secretary; (9) "county" means county as defined in section 2 of title I, United States Code; and i use 2. (10) "Secretary" means the Secretary of Housing and Urban Development. APPLICABIUTY SEC. 364. Multifamily mortgages held by the Secretary encumber- 12 use 3703. ing real estate located in any State may be foreclosed by the Secretary in accordance with this part, or pursuant to other foreclo- sure procedures available, at the option of the Secretary. DESIGNATION OF FORECLOSURE COMMISSIONER SEC. 365. A foreclosure commissioner or commissioners designated 12 use 3704. pursuant to this part shall have a nonjudicial power of sale as provided in this part. Where the Secretary is the holder of a multifamily mortgage, the Secretary may designate a foreclosure commissioner and, with or without cause, may designate a substitute foreclosure commissioner to replace a previously designated foreclo- sure commissioner, by executing a duly acknowledged, written desig- nation stating the name and business or residential address of the commissioner or substitute commissioner. The designation shall be effective upon execution. Except as provided in section 368(b), a copy of the designation shall be mailed with each copy of the notice of default and foreclosure sale served by mail in accordance with section 369(1). The foreclosure commissioner, if a natural person, shall be a resident of the State in which the security property is located and, if -194 0—82 29 : QL3
95 STAT. 424 PUBLIC LAW 97-35—AUG. 13, 1981 not a natural person, the foreclosure commissioner must be duly authorized to transact business under the laws of the State in which the security property is located. The foreclosure commissioner shall be a person who is responsible, financially sound and competent to conduct the foreclosure. More than one foreclosure commissioner may be designated. If a natural person is designated as foreclosure commissioner or substitute foreclosure commissioner, such person shall be designated by name, except that where such person is designated in his or her capacity as an official or employee of the government of the State or subdivision thereof in which the security property is located, such person may be designated by his or her unique title or position instead of by name. The Secretary shall be a guarantor of payment of any judgment against the foreclosure commissioner for damages based upon the commissioner's failure properly to perform the commissioner's duties. As between the Secretary and the mortgagor, the Secretary shall bear the risk of any financial default by the foreclosure commissioner. In the event that the Secretary makes any payment pursuant to the preceding two sentences, the Secretary shall be fully subrogated to the rights satisfied by such payment. PREREQUISITES TO FORECLOSURE 12 use 3705. SEC. 866. Foreclosure by the Secretary under this part of a multi- family mortgage may be commenced, as provided in section 368, upon the breach of a covenant or condition in the mortgage agreement for which foreclosure is authorized under the mortgage, except that no such foreclosure may be commenced unless any previously pending proceeding, judicial or nonjudicial, separately instituted by the Secre- tary to foreclose the mortgage other than under this part has been withdrawn, dismissed, or otherwise terminated. No such separately instituted foreclosure proceeding on the mortgage shall be instituted by the Secretary during the pendency of foreclosure pursuant to this part. Nothing in this part shall preclude the Secretary from enforcing any right, other than foreclosure, under applicable State law, includ- ing any right to obtain a monetary judgment. Nothing in this part shall preclude the Secretary from foreclosing under this part where the Secretary has obtained or is seeking any other remedy available pursuant to Federal or State law or under the mortgage agreement, including, but not limited to, the appointment of a receiver, mort- gagee-in-possession status or relief under an assignment of rents. NOTICE OF DEFAULT AND FORECLOSURE SALE 12 use 3706. SEC. 367. (a) The notice of default and foreclosure sale to be served in accordance with this part shall be subscribed with the name and address of the foreclosure commissioner and the date on which subscribed, and shall set forth the following information: (1) the names of the Secretary, the original mortgagee and the original mortgagor; (2) the street address or a description of the location of the security property, and a description of the security property, or so much thereof as is to be offered for sale, sufficient to identify the property to be sold; (3) the date of the mortgage, the office in which the mortgage is recorded, and the liber and folio or other description of the location of recordation of the mortgage;
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 425 (4) the failure to make payment, including the due date of the earliest installment pa3mient remaining wholly unpaid as of the date the notice is subscribed, or the description of other default or defaults upon which foreclosure is based, and the acceleration of the secured indebtedness; (5) the date, time, and place of the foreclosure sale; (6) a statement that the foreclosure is being conducted pursu- ant to this part; (7) the types of costs, if any, to be paid by the purchaser upon transfer of title; and (8) the amount and method of deposit to be required at the foreclosure sale (except that no deposit shall be required of the Secretary), the time and method of payment of the balance of the foreclosure purchase price and other appropriate terms of sale. (b)(1) Except as provided in paragraph (2)(A), the Secretary may require, as a condition and term of sale, that the purchaser at a foreclosure sale under this part agree to continue to operate the security property in accordance with the terms, as appropriate, of the loan program under section 312 of the Housing Act of 1964, the 42 use I452b. program under which insurance under title II of the National Housing Act was originally provided with respect to such property, or 12 use 1707. any applicable regulatory or other agreement in effect with respect to such property immediately prior to the time of foreclosure sale. (2)(A) In any case where the majority of the residential units in a property subject to such a sale are occupied by residential tenants at the time of the sale, the Secretary shall require, as a condition and term of sale, any purchaser (other than the Secretary) to operate the property in accordance with such terms, as appropriate, of the programs referred to in paragraph (1). (B) In any case where the Secretary is the purchaser of a multi- family project, the Secretary shall manage and dispose of such project in accordance with the provisions of section 203 of the Housing and Community Development Amendments of 1978. 12 use I7i5z-ii. COMMENCEMENT OF FORECLOSURE SEC. 368. (a) If the Secretary as holder of a multifamily mortgage 12 use 3707. determines that the prerequisites to foreclosure set forth in section 366 are satisfied, the Secretary may request the foreclosure commis- sioner to commence foreclosure of the mortgage. Upon such request, the foreclosure commissioner shall commence foreclosure of the mortgage, by commencing service of a notice of default and foreclo- sure sale in accordance with section 369. (b) Subsequent to commencement of a foreclosure under this part, the Secretary may designate a substitute foreclosure commissioner at any time up to forty-eight hours prior to the time of foreclosure sale, and the foreclosure shall continue without prejudice, unless the substitute commissioner, in his or her sole discretion, finds that continuation of the foreclosure sale will unfairly affect the interests of the mortgagor. In the event that the substitute commissioner makes such a finding, the substitute commissioner shall cancel the foreclosure sale, or adjourn such sale in the manner provided in section 369B(c). Upon designation of a substitute foreclosure commis- sioner, a copy of the written notice of such designation referred to in section 365 shall be served upon the persons set forth in section 369(1) of this part (1) by mail as provided in such section 369 (except that the minimum time periods between mailing and the date of foreclosure sale prescribed in such section shall not apply to notice by mail
95 STAT. 426 PUBLIC LAW 97-35—AUG. 13, 1981 pursuant to this subsection), or (2) in any other manner, which in the substitute commissioner's sole discretion, is conducive to achieving timely notice of such substitution. In the event a substitute foreclo- sure commissioner is designated less than forty-eight hours prior to the time of the foreclosure sale, the pending foreclosure shall be terminated and a new foreclosure shall be commenced by commenc- ing service of a new notice of default and foreclosure sale. SERVICE OF NOTICE OF DEFAULT AND FORECLOSURE SALE 12 use 3708. SEC. 369. The foreclosure commissioner shall serve the notice of default and foreclosure sale provided for in section 367 upon the following persons and in the following manner, and no additional notice shall be required to be served notwithstanding any notice requirements of any State or local law— (1) NOTICE BY MAIL.—The notice of default and foreclosure sale, together with the designation required by section 365, shall be sent by certified or registered mail, postage prepaid and return receipt requested, to the following persons: (A) the current security property owner of record, as the record exists forty-five days prior to the date originally set for foreclosure sale, whether or not the notice describes a sale adjourned as provided in this part; (B) the original mortgagor and all subsequent mortgagors of record or other persons who appear of record or in the mortgage agreement to be liable for part or all of the mortgage debt, as the record exists forty-five days prior to the date originally set for foreclosure sale, whether or not the notice describes a sale adjourned as provided in this part, except any such mortgagors or persons who have been released; and (C) all persons holding liens of record upon the security property, as the record exists forty-five days prior to the date originally set for foreclosure sale, whether or not the notice describes a sale adjourned as provided in this part. Notice under clauses (A) and (B) of this paragraph shall be mailed at least twenty-one days prior to the date of foreclosure sale, and shall be mailed to the owner or mortgagor at the address stated in the mortgage agreement, or, if none, to the address of the security property, or, at the discretion of the foreclosure commissioner, to any other address believed to be that of such owner or mortgagor. Notice under clause (C) of this paragraph shall be mailed at least ten days prior to the date of foreclosure sale, and shall be mailed to each such lienholder's address as stated of record or, at the discretion of the foreclosure commissioner, to any other address believed to be that of such lienholder. Notice by mail pursuant to this subsection or section 368(b) of this part shall be deemed duly given upon mailing, whether or not received by the addressee and whether or not a return receipt is received or the letter is returned. (2) PuBUCATiON.—A copy of the notice of default and foreclo- sure sale shall be published, as provided herein, once a week during three successive calendar weeks, and the date of last publication shall be not less than four nor more than twelve days prior to the sale date. The information included in the notice of default and foreclosure sale pursuant to section 367(a)(4) may be omitted, in the foreclosure commissioner's discretion, from the Newspaper published notice. Such publication shall be in a newspaper or
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 427 newspapers having general circulation in the county or counties in which the security property being sold is located. To the extent practicable, the newspaper or newspapers chosen shall be a newspaper or newspapers, if any is available, having circulation conducive to achieving notice of foreclosure by publication. Should there be no newspaper published at least weekly which Posting in has a general circulation in one of the counties in which the public place. security property being sold is located, copies of the notice of default and foreclosure sale shall be posted in at least three public places in each such county at least twenty-one days prior to the date of sale. (8) POSTING.—A copy of the notice of default and foreclosure sale shall be posted in a prominent place at or on the real property to be sold at least seven days prior to the foreclosure sale, and entry upon the premises for this purpose shall be privileged as against all persons. If the property consists of two or more noncontiguous parcels of land, a copy of the notice of default and foreclosure sale shall be posted in a prominent place on each such parcel. If the security property consists of two or more separate buildings, a copy of the notice of default and foreclosure sale shall be posted in a prominent place on each such building. Posting at or on the premises shall not be required where the foreclosure commissioner, in the commissioner s sole discretion, finds that the act of posting will likely cause a breach of the peace or that posting may result in an increased risk of vandalism or damage to the property. PRESALE REINSTATEMENT SEC. 869A. (a) Except as provided in sections 368(b) and 369B(c), the Sale cancellation foreclosure commissioner shall withdraw the security property from conditions. 12 use 3709. foreclosure and cancel the foreclosure sale only if— (1) the Secretary so directs the commissioner prior to or at the time of sale; (2) the commissioner finds, upon application of the mortgagor at least three days prior to the date of sale, that the default or defaults upon which the foreclosure is based did not exist at the time of service of the notice of default and foreclosure sale; or (3)(A) in the case of a foreclosure involving a monetary default, there is tendered to the foreclosure commissioner before public auction is completed the entire amount of principal and interest which would be due if payments under the mortgage had not been accelerated; (B) in the case of a foreclosure involving a nonmonetary default, the foreclosure commissioner, upon appli- cation of the mortgagor before the date of foreclosure sale, finds that such default is cured; and (C) there is tendered to the foreclosure commissioner before public auction is completed all amounts due under the mortgage agreement (excluding addi- tional amounts which would have been due if mortgage pay- ments had been accelerated), all amounts of expenditures secured by the mortgage and all costs of foreclosure incurred for which payment from the proceeds of foreclosure is provided in section 369C, except that the Secretary shall have discretion to refuse to cancel a foreclosure pursuant to this paragraph (3) if the current mortgagor or owner of record has on one or more previous occasions caused a foreclosure of the mortgage, com- menced pursuant to this part or otherwise, to be canceled by curing a default.
95 STAT. 428 PUBLIC LAW 97-35—AUG. 13, 1981 (b) Prior to withdrawing the security property from foreclosure in the circumstances described in subsection (aX2) or (aX3), the foreclo- sure commissioner shall afford the Secretary a reasonable opportu- nity to demonstrate why the security property should not be so withdrawn. (c) In any case in which a foreclosure commenced under this part is canceled, the mortgage shall continue in effect as though acceleration had not occurred. (d) If the foreclosure commissioner cancels a foreclosure sale under this part a new foreclosure may be subsequently commenced as provided in this part. CONDUCT OF SALE; ADJOURNMENT 12 u s e 3710. SEC. 369B. (a) The date of foreclosure sale set forth in the notice of default and foreclosure sale shall not be prior to thirty days after the due date of the earliest installment wholly unpaid or the earliest occurrence of any uncured nonmonetary default upon which foreclo- Public auction. sure is based. Foreclosure sale pursuant to this part shall be at public auction, and shall be scheduled to begin between the hours of 9 o'clock ante meridian and 4 o'clock post meridian local time on a day other than Sunday or a public holiday as defined by section 6108(a) of title 5, United States Code, or State law. The foreclosure sale shall be held at a location specified in the notice of default and foreclosure sale, which shall be a location where foreclosure real estate auctions are customarily held in the county or one of the counties in which the property to be sold is located, or at a courthouse therein, or at or on the property to be sold. Sale of security property situated in two or more counties may be held in any one of the counties in which any part of the security property is situated. (b) The foreclosure commissioner shall conduct the foreclosure sale in accordance with the provisions of this part and in a manner fair to both the mortgagor and the Secretary. The foreclosure commissioner shall attend the foreclosure sale in person, or, if there are two or more commissioners, at least one shall attend the foreclosure sale. In the event that no foreclosure commissioner is a natural person, the foreclosure commissioner shall cause its duly authorized employee to Written one- attend the foreclosure sale to act on its behalf. Written one-price price sealed bids shall be accepted by the foreclosure commissioner from sealed bids. the Secretary and other persons for entry by announcement by the commissioner at the sale. The Secretary and any other person may bid at the foreclosure sale, including the Secretary or any other person who has submitted a written one-price bid, except that the foreclosure commissioner or any relative, related business entity or employee of such commissioner or entity shall not be permitted to bid in any manner on the security property subject to foreclosure sale. The foreclosure commissioner may serve as auctioneer, or, in accord- ance with regulations of the Secretary, may employ an auctioneer to be paid from the commission provided for in section 369C(5). (c) The foreclosure commissioner shall have discretion, prior to or at the time of sale, to adjourn or cancel the foreclosure sale if the commissioner determines, in the commissioner's sole discretion, that circumstances are not conducive to a sale which is fair to the mortgagor and the Secretary or that additional time is necessary to determine whether the security property should be withdrawn from foreclosure as provided in section 369A. The foreclosure commis- sioner may adjourn a sale to a later hour the same day without the giving of further notice, or may adjourn the foreclosure sale for not
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 429 less than nine nor more than twenty-four days, in which case the commissioner shall serve a notice of default and foreclosure sale revised to recite that the foreclosure sale has been adjourned to a specified date and to include any corrections the foreclosure commis- sioner deems appropriate. Such notice shall be served by publication, mailing and posting in accordance with section 369, except that publication may be made on any of three separate days prior to the revised date of foreclosure sale, and mailing may be made at any time at least seven days prior to the date to which the foreclosure sale has been adjourned. FORECLOSURE COSTS SEC. 369C. The following foreclosure costs shall be paid from the 12 use 3711. sale proceeds prior to satisfaction of any other claim to such sale proceeds: (1) necessary advertising costs and postage incurred in giving notice pursuant to sections 369 and 369B; (2) mileage for posting notices and for the foreclosure commis- sioner's attendance at the sale at the rate provided in section 1921 of title 28, United States Code, for mileage by the most reasonable road distance; (3) reasonable and necessary costs actually incurred in connec- tion with any necessary search of title and lien records; (4) necessary out-of-pocket costs incurred by the foreclosure commissioner to record documents; and (5) a commission for the foreclosure commissioner for the conduct of the foreclosure to the extent authorized by regulations issued by the Secretary. DISPOSITION OP SALE PROCEEDS SEC. 369D. Money realized from a foreclosure sale shall be made 12 use 3712. available for obligation and expenditure— (1) first to cover the costs of foreclosure provided for in section 369C; (2) then to pay valid tax liens or assessments prior to the mortgage; (3) then to pay any liens recorded prior to the recording of the mortgage which are required to be paid in conformity with the terms of sale in the notice of default and foreclosure sale; (4) then to service charges and advancements for taxes, assess- ments, and property insurance premiums; (5) then to the interest; (6) then to the principal balance secured by the mortgage (including expenditures for the necessary protection, preserva- tion, and repair of the security property as authorized under the mortgage agreement and interest thereon if provided for in the mortgage agreement); and (7) then to late charges. Any surplus after payment of the foregoing shall be paid to holders of Surplus liens recorded after the mortgage and then to the appropriate Proceeds. mortgagor. If the person to whom such surplus is to be paid cannot be located, or if the surplus available is insufficient to pay all claimants and the claimants cannot agree on the allocation of the surplus, or if any person claiming an interest in the mortgage proceeds does not agree that some or all of the sale proceeds should be paid to a claimant as provided in this section, that part of the sale proceeds in question may be deposited by the foreclosure commissioner with an
95 STAT. 430 PUBLIC LAW 97-35—AUG. 13, 1981 appropriate official or court authorized under law to receive disputed funds in such circumstances. If such a procedure for the deposit of disputed funds is not available, and the foreclosure commissioner files a bill of interpleader or is sued as a stakeholder to determine entitlement to such funds, the foreclosure commissioner's necessary costs in taking or defending such action shall be deductible from the disputed funds. TRANSFER OF TITLE AND POSSESSION i^Tror ^71 q ^^^' ^^^^' ^^^ "^^ foreclosure commissioner shall deliver a deed or use 3713. deeds to the purchaser or purchasers and obtain the balance of the purchase price in accordance with the terms of sale provided in the notice of default and foreclosure sale. Qy) Subject to subsection (c), the foreclosure deed or deeds shall convey all of the right, title, and interest in the security property covered by the deed which the Secretary as holder, the foreclosure commissioner, the mortgagor, and any other persons claiming by, through, or under them, had on the date of execution of the mortgage, together with all of the right, title, and interest thereafter acquired by any of them in such property up to the hour of sale, and no judicial proceeding shall be required ancillary or supplementary to the procedures provided in this part to assure the validity of the convey- ance or confirmation of such conveyance. (c) A purchaser at a foreclosure sale held pursuant to this part shall be entitled to possession upon passage of title to the mortgaged property, subject to an interest or interests senior to that of the mortgage and subject to the terms of any lease of a residential tenant for the remaining term of the lease or for one year, whichever period is shorter. Any other person remaining in possession after the sale and any residential tenant remaining in possession after the appli- cable period shall be deemed a tenant at sufferance. (d) There shall be no right of redemption, or right of possession based upon right of redemption, in the mortgagor or others subse- quent to a foreclosure pursuant to this part. 'T^- (e) When conveyance is made to the Secretary, no tax shall be imposed or collected with respect to the foreclosure commissioner's deed, whether as a tax upon the instrument or upon the privilege of conveying or transferring title to the property. Failure to collect or pay a tax of the t5rpe and under the circumstances stated in the preceding sentence shall not be grounds for refusing to record such a deed, for failing to recognize such recordation as imparting notice or for denying the enforcement of such a deed and its provisions in any State or Federal court. RECORD OF FORECLOSURE AND SALE Deed affidavit. SEC. 369F. (a) To establish a sufficient record of foreclosure and 12 use 3714. gg^ig^ ^jjg foreclosure commissioner shall include in the recitals of the deed to the purchaser or prepare an affidavit or addendum to the deed stating— (1) that the mortgage was held by the Secretary; (2) the particulars of the foreclosure commissioner's service of notice of default and foreclosure sale in accordance with sections 369and369B; (3) that the foreclosure was conducted in accordance with the provisions of this part and with the terms of the notice of default and foreclosure saie;
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 431 (4) a correct statement of the costs of foreclosure, calculated in accordance with section 369C; and (5) the name of the successful bidder and the amount of the successful bid. (b) The deed executed by the foreclosure commissioner, the foreclo- sure conmiissioner's affidavit and any other instnmients submitted for recordation in relation to the foreclosure of the security property under this part shall be acc^ted for recordation by the r e ^ t r a r of deeds or other appropriate ofncial of the county or counties in which the security property is located upon tendering of payment of the usual recording fees for such instruments. COMPUTATION OF TIME SEC. 369G. Periods of time provided for in this part shall be 12 u s e 3715. calculated in consecutive calendar days including the day or days on which the actions or events occur or are to occur for which the period of time is provided and including the day on which an event occurs or is to occur from which the period is to be calculated. SEPARABILITY SEC. 369H. If any clause, sentence, paragraph or part of this part 12 use 3716. shall, for any reason, be adjudged by a court of competent jurisdiction to be invalid or invsdid as applied to a class of cases, such judgment shall not affect, impair, or invalidate the remainder thereof and of this part, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shsdl have been rendered. REGULATIONS SEC. 3691. The Secretary is authorized to issue such regulations as 12 use 3717. may be necessary to carry out the provisions of this part. PART 7—EFFECTIVE DATE EFFECTIVE DATE SEC. 371. (a) Except as otherwise provided in this subtitle, the 12 u s e 3701 provisions of this subtitle shall take effect on October 1, 1981. note. (b) The amendments made by sections 324, 325, and 326(a) shall Ante, pp. 405, apply only with respect to contracts entered into on and after Octo- 406. ber 1,1981. Subtitle B—Banking and Related Programs Banking and Related Programs SHORT TITLE Authorization Adjustment Act. SEC. 380. This subtitle may be cited as the "Banking and Related 12 u s e 635 note. Programs Authorization Adjustment Act". EXPORT-IMPORT BANK OF THE UNITED STATES SEC. 381. (a) Section 7(a) of the Export-Import Bank Act of 1945 (12 U.S.C. 635e(a)) is amended— (1) by inserting "(1)" after "Sec. 7. (a)"; and (2) by adding at the end thereof the following:
95 STAT. 432 PUBLIC LAW 97-35—AUG. 13, 1981 "(2) Within the limits of funds and borrowing authority available to the Bank pursuant to this Act, gross obligations for the principal amount of direct loans authorized by the Bank during fiscal years 1982 and 1983 shall not exceed $10,478,000,000, of which amount $5,065,000,000 is designated for fiscal year 1982 and $5,413,000,000 is designated for fiscal year 1983.". Report to (b) On or before December 15,1981, the Secretary of the Treasury Congress. shall transmit a report to both Houses of the Congress regarding the status of negotiations within the Organization for Economic Coopera- tion and Development on improving the International Arrangement on Guidelines for Officially Supported Export Credits and on the status of any other multilateral or bilateral negotiations or discus- sions for the purpose of improving any other arrangements, stand- stills, minutes, and practices involving official export financing in which the United States participates. Such report shall include— (1) an assessment of the progress, if any, that has been made in these negotiations, and of the prospects for a successful conclu- sion to these negotiations within a reasonable time; and (2) a recommendation by the Secretary of the Treasury as to whether the Congress, in order to improve the prospects for a successful conclusion to these negotiations, should enact legisla- tion for the purpose of enhancing the ability of the Export-Import Bank of the United States to offer or support export credit fully competitive with the subsidized official export credit offered or supported by other governments. DEPARTMENT OF THE TREASURY Appropriation SEC. 382. (a) Section 5 of the Act of November 8,1978 (92 Stat. 3092; authorization. Public Law 95-612), is amended— (1) in subsection (a), by striking out "$24,000,000 for fiscal year 1979 and $22,375,000 for fiscal year 1980," and inserting in lieu thereof "$22,896,000 for fiscal year 1982, and such sums as may be necessary for each fiscal year thereafter"; and (2) in subsection (b), by striking out "for fiscal year 1980 not to exceed $800,000" and inserting in lieu thereof "not to exceed $1,000,000 for fiscal year 1982, and such sums as may be neces- sary for each fiscal year thereafter,". (b) The last sentence of section 3552 of the Revised Statutes (31 U.S.C. 369) is amended to read as follows: "There are authorized to be appropriated for fiscal year 1982 not to exceed $54,706,000 for all expenditures (salaries and expenses) of the mints and assay offices not herein otherwise provided for.". Effective date. (2) The amendment made by paragraph (1) shall take effect on 31 u s e 369 note. October 1,1981. COUNCIL ON WAGE AND PRICE STABILITY Repeal. SEC. 383. Section 6 of the Council on Wage and Price Stability Act (12 U.S.C. 1904 note) is hereby repealed. USURY PROVISION SEC. 384. Section 501(a)(l)(C)(vi) of the Depository Institutions Deregulation and Monetary Control Act of 1980 (12 U.S.C. 1735f-7 note) is amended by inserting "or a residential manufactured home" after "residential real property".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 433 RESERVE REQUIREMENTS SEC. 385. (a) Section 19(b)(8)(E) of the Federal Reserve Act (12 U.S.C. 461(b)(8)(E)) is amended by striking out the first two sentences thereof 94 Stat. 133. and inserting in lieu thereof the following: "This subparagraph applies to any depository institution that, on August 1,1978, (i) was engaged in business as a depository institution in a State outside the continental limits of the United States, and (ii) was not a member of the Federal Reserve System at any time on or after such date. Such a depository institution shall not be required to maintain reserves against its deposits held or maintained at its offices located in a State outside the continental limits of the United States until the first day of the sixth calendar year which begins after the effective date of the Monetary Control Act of 1980.". (b) The third sentence of section 19(b)(8)(E) of such Act (12 U.S.C. 461(b)(8)(E)) is amended by striking out "its deposits" and inserting in lieu thereof "such deposits". Subtitle C—National Consumer Cooperative Bank Act National Consumer Amendments Cooperative Bank Act Amendments SHORT TITLE of 1981. SEC. 390. This subtitle may be cited as the "National Consumer 12 u s e 3001 Cooperative Bank Act Amendments of 1981". note. ACCELERATION OF FINAL GOVERNMENT EQUITY REDEMPTION DATE SEC. 391. (a)(1) The National Consumer Cooperative Bank Act (12 U.S.C. 3001 et seq.) is amended by inserting after section 115 the Post, p. 436. following: ACCELERATION OF FINAL GOVERNMENT EQUITY REDEMPTION DATE "SEC. 116. (a)(1)(A) The Final Government Equity Redemption Date 12 use 3026 shall occur on December 31,1981, or not later than 10 days after the date of the enactment of the first Act providing for appropriations for fiscal year 1982 (other than continuing appropriations) for the De- partment of Housing and Urban Development and Independent Agencies, whichever occurs later. "(B) Not later than 5 days after the Final Government Equity Publication in Redemption Date, the Secretary of the Treasury shall publish a Federal notice in the Federal Register indicating the day on which the Final Register. Government Equity Redemption Date occurred. "(2)(A) Before the Final Government Equity Redemption Date, the Secretary of the Treasury shall purchase all class A stock for which the Congress has appropriated funds. "(B) After the Final Government Equity Redemption Date, the Secretary of the Treasury shall not purchase any class A stock. "(3)(A) On the Final Government Equity Redemption Date, all class A stock held by the Secretary of the Treasury on such date shall be redeemed by the Bank in exchange for class A notes which are issued by the Bank to the Secretary of the Treasury on behalf of the United States and which have a total face value equal to the total par value of the class A stock which is so redeemed, plus any unpaid dividends on such stock. "(B) During the period beginning on the Final Government Equity Redemption Date and ending on December 31,1990, not less than 30
95 STAT. 434 PUBLIC LAW 97-35—AUG. 13, 1981 percent of the revenue derived from the sale of stock by the Bank, other than the sale of class B stock or class C stock, shall be used, upon receipt, to retire class A notes. "(C) After December 31, 1990, the Bank shall maintain a repay- ment schedule for class A notes which will assure full repayment of all class A notes not later than December 31, 2020. The requirement specified in the previous sentence is in addition to the requirement regarding the redemption of class A notes which is specified in section 12 u s e 3014. 104(c). "(b)(1) The United States shall not be responsible for any obligation of the Bank which is incurred after the Final Government Equity Redemption Date. Bylaws. "(2) As soon as practicable after the date of the enactment of this section, the Board shall adopt bylaws which will assist in expediting and coordinating the activities which will occur with respect to the Final Government Equity Redemption Date.". Effective date. (2) The amendment made by paragraph (1) shall take effect on the 12 u s e 3026 date of the enactment of this Act. note. 12 u s e 3017a. (b)(1) Only for purposes of section 107(a) of the National Consumer Cooperative Bank Act (12 U.S.C. 3017(a)), class A notes shall be deemed to be paid-in capital of the Bank. Effective date. (2) This subsection shall take effect on the day after the Final 12 u s e 3017a Government Equity Redemption Date. note. TAX STATUS OF THE BANK SEC. 392. (a) Section 109 of the National Consumer Cooperative Bank Act (12 U.S.C. 3019) is amended— (1) by striking out "Until the Final Government Equity Re- demption Date, but not thereafter, the Bank" and inserting in lieu thereof "(a) The Bank"; and (2) by adding at the end thereof the following: "(b) Notwithstanding any other provision of law, for purposes of 26 u s e 1381. subchapter T of the Internal Revenue Code of 1954— "(1) the Bank shall be treated as a corporation operating on the cooperative basis within the meaning of section 1381(a)(2) of such Code; Definitions. "(2) the term 'patronage dividend', as defined in section 1388(a) 26 u s e 1388. of such Code includes, only as such section applies to the Bank, any patronage refunds in the form of class B or class C stock or allocated surplus that are distributed or set aside by the Bank 12 u s e 3014. pursuant to section 104(i) of this Act; "(3) the terms 'written notice of allocation' and 'qualified written notices of allocation', as defined in sections 1388 (b) and (c) of such Code, include (to the extent of par value), only as such sections apply to the Bank, any class B or class C stock distrib- uted by the Bank pursuant to section 104(i) of this Act and shall also include any allocated surplus set aside by the Bank pursuant to section 104(i) of this Act; "(4) patrons of the Bank shall be deemed to have consented under section 1388(c)(2) of such Code to the inclusion in their incomes of any qualified written notices of allocation received by such patrons from the Bank; and "(5) any amounts required to be included in the incomes of patrons of the Bank with respect to class B or class C stock or allocated surplus shall be treated as earnings from business done by such patrons of the Bank with or for their own patrons.".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 435 (b) The amendments made by subsection (a) shall take effect on the Effective date. day after the Final Government Equity Redemption Date. 12 u s e 3019 note. BOARD OF DIRECTORS SEC. 393. (a) Subsections (a), Ot)), (c), and (d) of section 103 of such Act (12 U.S.C. 3013) are amended to read as follows: "(a) The Bank shall be governed by a Board of Directors (herein- after in this Act referred to as the 'Board') which shall consist of 15 members. AH members shall serve for a term of 3 years. After the expiration of the term of any member, such member may continue to serve until his successor has been elected or has been appointed and qualified. Any member appointed by the President may be removed Removal. for cause by the President. "(b)(1) The President shall appoint, by and with the advice and Appointment. consent of the Senate— "(A) one member who shall be selected from among proprietors of small business concerns, as defined under section 3 of the Small Business Act, which are manufacturers or retailers; 12 u s e 371. "(B) one member who shall be selected from among the officers of the agencies and departments of the United States; and "(C) one member who shall be selected from among persons having extensive experience in the cooperative field representing low-income cooperatives eligible to borrow from the Bank. "(2) Twelve members of the Board shall be elected by the holders of class B stock and class C stock in accordance with the provisions of subsection (d) and the bylaws of the Bank. "(c)(1) On the day after the Final Government Equity Redemption Resignation. Date, all members of the Board of Directors of the Bank who were appointed by the President shall resign, except that— "(A) the member who shall have been appointed by the President from among proprietors of small business concerns, and "(B) one member who shall be designated by the President and who shall have been appointed by the President from among the officers and employees of the agencies and departments of the United States Government, may continue to serve until their successors have been appointed and qualified. "(2) Any member of the Board of Directors of the Bank who was elected by the holders of class B or class C stock before the Final Government Equity Redemption Date shall serve the remainder of the term for which such member was elected. "(3) Any member appointed pursuant to subsection (b)(1) shall be entitled to sit on any committee of the Board, but not more than one member so appointed may sit on any one committee. "(d)(1) All elections of members of the Board by the holders of class B stock and class C stock shall be conducted in accordance with the bylaws of the Bank. Such bylaws shall conform to the requirements of this section. Nominations for such elections shall be made by the following classes of cooperatives: (A) housing, (B) consumer goods, (C) low-income cooperatives, (D) consumer services, and (E) all other eligible cooperatives. "(2)(A) Vacant shareholder directorships shall be filled so that at Vacant any time when there are three or more shareholder directors on the shareholder Board, there shall be at least one director representing each of directorships. the following classes of cooperatives: (i) housing cooperatives, (ii)
95 STAT. 436 PUBLIC LAW 97-35—AUG. 13, 1981 low-income cooperatives, and (iii) consumer goods and services cooperatives. "(B) Each nominee for a shareholder directorship of a particular class shall have at least three years experience as a director or senior officer in the class of cooperatives to be represented. "(C) No one class of cooperatives specified in paragraph (1) shall be represented on the Board by more than three directors. . (b) Section 103(h) of such Act (12 U.S.C. 3013(h)) is amended— (1) in the second sentence thereof, by striking out ", until the Final Government Equity Redemption Date" and all that follows through "class B and class C stock" and inserting in lieu thereof "the member of the Board appointed pursuant to subsection (b)(1)(C)"; and (2) by adding at the end thereof the following: "The members of the Board who are elected by the holders of class B stock and class C stock shall be compensated in accordance with the bylaws of the Bank. All compensation and expenses paid to the members of the Board of Directors shall be paid by the Bank.". Effective date. (c) The amendments made by subsections (a) and (b) shall take 12 u s e 3013 effect on the day after the Final Government Equity Redemption note. Date. EXAMINATIONS AND AUDITS; CONFORMING AMENDMENTS SEC. 394. (a)(1) Section 115 of the National Consumer Cooperative Bank Act (12 U.S.C. 3025) is amended to read as follows: EXAMINATION AND AUDIT "SEC. 115. The Farm Credit Administration and the General Accounting Office are hereby authorized and directed to examine and Reports to Con- audit the Bank. Reports regarding such examinations and audits gress. shall be promptly forwarded to both Houses of the Congress. The Bank shall reimburse the Farm Credit Administration for the costs of any examination or audit conducted by the Farm Credit Administra- tion.". Effective date. (2) The amendment made by paragraph (1) shall take effect on the 12 u s e 3025 day after the Final Government Equity Redemption Date. note. (b) The second sentence of section 108(a) of such Act (12 U.S.C. 3018(a)) is amended by striking out "October 1,1983" and inserting in lieu thereof "October 1,1985". (c)(1) The first sentence of section 104(a) of such Act (12 U.S.C. 3014(a)) is amended by inserting "by other public or private inves- tors," after "by public bodies,". 12 u s e 3014 (2) The amendment made by paragraph (1) shall take effect on the note. day after the Final Government Equity Redemption Date. (d)(1) The last sentence of section 102 of such Act (12 U.S.C. 3012) is amended to read as follows: "In determining whether a public offering is taking place for the purpose of the Securities Act of 1933, there shsdl be excluded from consideration all class B and class C stock purchases which took place prior to the date of the enactment of the National Consumer Cooperative Bank Act Amendments of 1981.". 12 u s e 3012 (2) The amendment made by paragraph (1) shall take effect on the note. day after the Final Government Equity Redemption Date. (e)(1) The first sentence of section 105(a) of such Act (12 U.S.C. 3015(a)) is amended by striking out "entirely owned" and inserting in lieu thereof "primarily owned .
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 437 (2) The amendment made by paragraph (1) shall take effect on the Effective date. 12 u s e 3015 day after the Final Government Equity Redemption Date. note. (f) Section 105(a)(5) of such Act (12 U.S.C. 3015(a)(5)) is amended by inserting "(except that this requirement shall not apply to any housing cooperative in existence on March 21, 1980, which did not meet such requirement on such date)" after "one vote per person basis". (g)(1) The second sentence of section 107(a) of such Act (12 U.S.C. 3017(a)) is amended by striking out "after consultation with the Secretary of the Treasury". (2) The amendment made by paragraph (1) shall take effect on the Effective date. 12 u s e 3017 day after the Final Government Equity Redemption Date. note. NONPROFIT CORPORATION SEC. 395. (a) The National Consumer Cooperative Bank Act (12 U.S.C. 3001 et seq.) is amended by inserting after section 210 the following: " E S T A B L I S H M E N T O F NONPROFIT CORPORATION "SEC. 211. (a)(1) Upon the incorporation of the nonprofit corpora- 12 u s e 3051. tion described in subsection (b), the Office of Self-Help Development and Technical Assistance is hereby abolished. "(2)(A) If the nonprofit corporation described in subsection (b) agrees to accept the liabilities of the Office, the Bank, notwithstand- ing any other provision of law, shall transfer all assets, liabilities, and property of the Office to such nonprofit corporation on the day on which such nonprofit corporation is incorporated. "(B) Such assets shall include all sums which are appropriated to the Office by the Congress and all sums which are contained in the Account established pursuant to section 202. If any such sums are 12 u s e 3042. appropriated after the date on which the transfer described in subparagraph (A) occurs, the Bank shall promptly transfer such sums to such nonprofit corporation. "(b)(1) As soon as possible after the date of the enactment of this section, the Board shall establish a nonprofit corporation under the laws of the District of Columbia and, notwithstanding the laws of the District of Columbia, name the directors of such nonprofit corpora- tion. "(2) Notwithstanding the laws of the District of Columbia, the Board of Directors of such nonprofit corporation shall— "(A) select an executive director who shall be responsible for the administration of such nonprofit corporation; "(B) set the compensation of such executive director and the other employees of such nonprofit corporation; "(C) promulgate and publish the policies of such nonprofit corporation and make such policies available at all times to eligible cooperatives; and "(D) perform the functions specified in subparagraphs (A) and (C) of paragraph (3). "(3) Such nonprofit corporation shall only perform— Functions. "(A) the functions which are authorized to be performed pursuant to sections 203 through 208 and section 210; 12 use "(B) such functions as are necessary to comply with the laws 3043-3048, 3050. under which it was incorporated in the District of Columbia; and "(C) such functions as are necessary to remain qualified as an organization described in section 501(c)(3) of the Internal Reve- nue Code of 1954. 26 u s e 501.
95 STAT. 438 PUBLIC LAW 97-35—AUG. 13, 1981 "(4) Notwithstanding any other provision of law— "(A) the Bank may provide administrative or staff support to such nonprofit corporation; and "(B) any member of the Board of Directors of the Bank may serve as a member of the Board of Directors of such nonprofit corporation. "(c)(1) Notwithstanding any other provision of law, such nonprofit corporation shall be deemed to be, and treated as, qualified as an organization described in section 501(c)(3) of the Internal Revenue 26 use 501. Code of 1954 from the date on which such nonprofit corporation is established under the laws of the District of Columbia until the date on which the Internal Revenue Service makes a final determination on the application which such nonprofit corporation will submit to the Internal Revenue Service seeking status as an organization qualifying under such section. "(2) When performed by such nonprofit corporation, the functions described in subsection (b)(3)(A) shall be deemed to be performed for 'charitable purposes' within the meaning of section 501(c)(3) of the Internal Revenue Code of 1954. Contributions. "(d)(1) The Board of Directors of the Bank may make contributions to the nonprofit corporation in such amounts as the Board of Directors of the Bank deems appropriate, except that— "(A) such contributions may be made only out of the Bank's earnings, determined in accordance with generally accepted accounting principles; and "(B) the Bank shall set aside amounts sufficient to satisfy its obligations to the Secretary of the Treasury for payments of principal and interest on class A notes and other debt before making any contributions to such nonprofit corporation. "(2) During any period in which the nonprofit corporation de- scribed in subsection (b) is qualified as an organization described in section 501(c)(3) of the Internal Revenue Code of 1954, contributions made by the Bank pursuant to paragraph (1) shall be treated as charitable contributions within the meaning of section 170(c)(2) of the 26 use 170. Internal Revenue Code of 1954, and may be deducted notwithstand- ing the provisions of section 170(b)(2) of such Code. (3) During any period in which the nonprofit corporation de- scribed in subsection (b) is qualified as an organization described in section 501(c)(3) of the Internal Revenue Code of 1954, contributions to such nonprofit corporation by any person shall qualify £is charita- ble contributions, as defined in section 170(c) of such Code, for purposes of the charitable contribution deduction provided for in section 170(a) of such Code, and shall also qualify for the deductions for estate and gift tax purposes provided for in sections 2055 and 2522 26 use 2055, of the Internal Revenue Code of 1954. ^^2^- "(e) Notwithstanding the laws of the District of Columbia, the Board of Directors of such nonprofit corporation shall adopt and publish its own conflict of interest rules which shall be no less stringent in effect than the conflict of interest provisions adopted by 12 use 3024. the Board of Directors of the Bank pursuant to section 114.'\ (b)(1) The first sentence of section 202 of the National Consumer Cooperative Bank Act (12 U.S.C. 3042) is amended by striking out "$10,000,000 for the fiscal year ending September 30, 1979, and for the next two succeeding fiscal years an aggregate amount not to exceed $65,000,000, for the purpose of making advances under section 12 use 3043. 203 of this Act" and by inserting in lieu thereof "for the purpose of making advances under section 203 of this Act an amount not to exceed $14,000,000 for fiscal year 1982".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 439 (2) Section 104(a) of such Act (12 U.S.C. 3014(a)) is amended by Appropriation striking out the second and third sentences thereof and inserting in authorization. lieu thereof the following: "There are authorized to be appropriated not to exceed $47,000,000 for fiscal year 1982 for purposes of purchas- ing class A stock.". (3) The amendments made by paragraphs (1) and (2) shall take Effective date. effect on October 1,1981. 12 u s e 3014 note. CONFORMING AMENDMENTS; DEFINITIONS SEC. 396. (a) For purposes of this subtitle, the term "Final Govern- 12 u s e 3012 ment Equity Redemption Date" shall have the same meaning given note. such term in section 101(5) of the National Consumer Cooperative Bank Act (12 U.S.C. 3011(5)). (b) The first sentence of section 101 of the National CJonsumer Cooperative Bank Act (12 U.S.C. 3011) is amended to read as follows: "The Congress of the United States hereby creates and charters a body corporate to be known as the National Consumer Cooperative Bank (hereinafter in this Act referred to as the 'Bank').". (cXD Section 104(b) of such Act (12 U.S.C. 3014(b)) is amended— (A) in the first sentence, by striking out "class A, class B," and inserting in lieu thereof "class B"; and (B) by amending the second and third sentences to read as follows: "Class A notes which are held by the United States shall have first preference with respect to assets and interest pay- ments over all classes of stock issued by the Bank. So long as any class A notes are outstanding, the Bank shall not pay any dividend on any class of stock at a rate greater than the statutory interest rate payable on class A notes.". (2) Section 104(c) of such Act (12 U.S.C. 3014(c)) is amended— (A) by striking out the first sentence thereof; (B) in the second sentence— (i) by striking out "class A stock" and inserting in lieu thereof "class A notes"; (ii) by striking out "dividends" each place it appears therein and inserting in lieu thereof "interest payments"; and (iii) by striking out": Provided, That" and inserting in lieu thereof ", except that"; (C) in the third sentence, by striking out "dividends" and inserting in lieu thereof "interest payments"; (D) by amending the fourth sentence to read as follows: "Any such interest payment may be deferred by the Board of Directors with the approval of the Secretary of the Treasury, except that any interest payment so deferred shall bear interest at a rate equal to the rate determined pursuant to the first sentence of this subsection."; (E) in the fifth sentence, by striking out "any other class of stock" and all that follows through the end thereof and inserting in lieu thereof "any class of stock at any time when the deferred interest pa)rments on class A notes shall not have been paid in full, together with any unpaid interest on such notes."; (F) in the sixth sentence— (i) by striking out "class A stock" each place it appears therein and inserting in lieu thereof "class A notes"; (ii) by striking out "other"; (iii) by striking out "dividends" and inserting in lieu thereof "interest payments"; and 89-194 0—82 30:QL3
95 STAT. 440 PUBLIC LAW 97-35—AUG. 13, 1981 (iv) by striking out "par value" and inserting in lieu thereof "face value"; and (G) in the seventh sentence— (i) by striking out "class A stock" each place it appears therein and inserting in lieu thereof "class A notes"; (ii) by striking out "cumulative dividends" and inserting in lieu thereof "interest payments"; (iii) by striking out": Provided, That" and inserting in lieu thereof ", except that"; (iv) bv striking out "of shares" after "fiscal year a number ; and (v) by striking out "par value" each place it appears therein and inserting in lieu thereof "face value". (3) Section 104(e) of such Act (12 U.S.C. 3014(e)) is amended— (A) by striking out "class A stock" each place it appears therein and inserting in lieu thereof "class A notes"; and (B) in the last sentence thereof, by striking out "statutory dividend" and inserting in lieu thereof "statutory interest pay- ment". (4) Section 104(f) of such Act (12 U.S.C. 3014(f)) is amended— (A) by strikiiig out "class A stock is" and inserting in lieu thereof "class A notes are"; and (B) by striking out "class A stock as to dividends" and inserting in lieu thereof "class A notes as to dividends, interest pay- ments,". (5) Section 104(gX2)(B) of such Act (12 U.S.C. 3014(g)(2)(B)) is amended by striking out "section 103(c)" and inserting in lieu thereof "section 103(d)(2)(A).". (6) The second sentence of section 104(h) of such Act (12 U.S.C. 3014(h)) is hereby repealed. (7) The first sentence of section 104(i) of such Act (12 U.S.C. 3014(i)) is amended— (A) by striking out "cumulative dividends on class A stock" and inserting in lieu thereof "interest payments on class A notes"; and (B) by striking out "class A stock in" and inserting in lieu thereof "class A notes in". (d) Section 107 of such Act (12 U.S.C. 3017) is amended— (1) by striking out subsection (b); and (2) by redesignating subsections (c) and (d) as subsections Ot)) and (c), respectively. (e) The second sentence of section 108(b) of such Act (12 U.S.C. 3018(b)) is amended by striking out ", but so long as" and all that follows through "class B stock in the Bank". (f) The last sentence of section 114 of such Act (12 U.S.C. 3024) is hereby repealed. (g) Section 203 of such Act (12 U.S.C. 3043) is amended by striking out "out of the Account" each place it appears therein. (h)(1) Section 201 of the Government Corporation Control Act (31 U.S.C. 856) is amended by striking out "(7) the Rural Telephone Bank" and all that follows through the end thereof and inserting in lieu thereof "(7) the Rural Telephone Bank, (8) the United States Railway Association, and (9) the National Credit Union Administra- tion Central Liquidity Facility.". (2) Section 302 of the Government Corporation Control Act (31 U.S.C. 867) is amended— (A) by inserting "or" after "the Regional Banks for Coopera- tives,"; and
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 441 (B) by striking out "or the National Consumer Cooperative Bank,". (3) The second sentence of section 303(d) of the Government Corporation Control Act (31 U.S.C. 868(d)) is amended by striking out "National Consumer Cooperative Bank,". (4) Section 5315 of title 5, United States Code, is amended by striking out "Director, Office of Self-Help Development and Techni- cal Assist^ce, National Consumer Cooperative Bank.". (i) The amendments made by subsections (b) through (h) shall take Effective date. 12 u s e 3011 effect on the day after the Final Government Equity Redemption note. Date. TITLE IV—THE DISTRICT OF COLUMBIA LIMITATION ON THE AMOUNT OP FUNDS AUTHORIZED AND EXPENDED FOR LOANS FOR CAPITAL PROJECTS SEC. 401. (a) Subsection (c) of section 723 of the District of Columbia Self-Govemment and Governmental Reorganization Act (D.C. Code, sec. 47-241 note) is amended to read as follows: "(c) Subject to the limitations contained in section 603(b), there is D.C. Code authorized to be appropriated to make loans under this section the 47-228. sum of $155,000,000 for the fiscal year ending on September 30,1982, the sum of $155,000,000 for the fiscal year ending on September 30, 1983, and the sum of $155,000,000 for the fiscal year ending on September 30,1984.". (b) The amendment made by this section shall take effect on Effective date. October 1,1981. TITLE V—EDUCATION PROGRAMS Omnibus Education Reconciliation SHORT TITLE Act of 1981. SEC. 501. This title may be cited as the "Omnibus Education 20 u s e 3489 Reconciliation Act of 1981". note. Subtitle A—Authorization Savings for Fiscal Years 1982,1983, and 1984 EFFECT ON OTHER LAWS; GENERAL RESTRICTIONS SEC. 502. (a) Any provision of law which is not consistent with the 20 u s e 3489 provisions of this subtitle is hereby superseded and shall have only note. such force and effect during each of the fiscal years 1982,1983, and 1984 which is consistent with this subtitle. (b) Notwithstanding any authorization of appropriations for fiscal year 1982, 1983, or 1984 contained in any provision of law which is specified in this subtitle (including any authorization of appropri- ations contained in section 528 of this title), no funds are authorized to be appropriated in excess of the limitations imposed upon appro- priations by the provisions of this subtitle. (c) No funds are authorized to be appropriated for the fiscal year 1982, 1983, or 1984 to pay for the expenses of any advisory council which provides advice to a program for which there are no authoriza- tions of appropriations made under this subtitle or made by an amendment made by this subtitle.
95 STAT. 442 PUBLIC LAW 97-35—AUG. 13, 1981 ACT OF MARCH 2, 1867 (HOWARD UNIVERSITY) 20 use 123 note. SEC. 503. The total amount of appropriations to carry out the Act of March 2,1867 (14 Stat. 439), shall not exceed $145,200,000 for each of the fiscal years 1982,1983, and 1984. A C T O F SEPTEMBER 2 3 , 1950 (IMPACT AID) SEC. 504. The total amount of appropriations to carry out the Act of 20 use 631 note. September 23,1950 (Public Law 815,81st Congress), shall not exceed $20,000,000 for each of thefiscalyears 1982,1983, and 1984. ACT OF SEPTEMBER 30, 1950 (IMPACT AID) SEC. 505. (aXD The total amount of appropriations to make pay- 20 use 237 note, ments under the Act of September 30, 1950 (Public Law 874, 81st Congress), shall not exceed $455,000,000 for each of the fiscal years 1982,1983, and 1984 of which— (A) $10,000,000 shall be available for payments under section 2 ofsuchAct;and (B) $10,000,000 shall be available for payments under section 7 of such Act. 20 use 237. Funds available for section 2 of such Act for each such fiscal year shall also be available for section 16 of the Act of September 23,1950 20 use 646. (Public Law 815,81st Congress). 20 use 238. (2) Section 3(dX2) of such Act is amended by adding at the end thereof the following new subparagraph: "(EXi) The amount of the entitlement of any local educational agency under this section for fiscal year 1982 with respect to children determined under subsection (b) with respect to such agency shall be the amount determined under paragraph (1) with respect to such children multiplied by 66% per centum. 'Xii) The amount of the entitlement of any local educational agency under this section for fiscal year 1983 with respect to children determined under subsection (b) with respect to such agency shall be the amount determined under paragraph (1) with respect to such children multiplied by 33 Va per centum. "(iii) The amount of the entitlement of any local educational agency under this section for fiscal year 1984 or any succeeding fiscal year with respect to children determined under subsection (b) with respect to such agency shall be zero.". 20 use 237 note. (3) If the amount appropriated for making pa3anents under such Act for fiscal year 1982,1983, or 1984 is not sufficient to pay in full the 20 use 237. sum of the entitlements established under section 2 of such Act, then the amount of each such entitlement shall be ratably reduced. If, for any fiscal year in which such a reduction is required, additional amounts are made available for making such payments, then such entitlements shall be increased on the same basis as they were reduced. 20 use 238 note. (b) No funds are authorized to be appropriated for fiscal year 1982, 1983, or 1984 for the purpose of making payments— (1) on the basis of entitlements determined under section 3(e) 20 use 238, 239. or 4 of such Act; or 94 Stat. 1500. (2) under sections 4A or 6 of such Act. 20 use 239a, ^^^i^ Subsection (d) of section 402 of the Act of September 30,1950 20 use 243. (Public Law 874, 81st Congress), shall not apply during fiscal year 1982, or any succeedingfiscalyear.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 443 (2) Funds appropriated to the Department of Defense shall be 20 u s e 241 note. available to the Secretary of Defense for payments and arrangements of the khid that may be made by the Secretary of Education under section 6 of the Act of September 30, 1950 (Public Law 874, 81st 20 u s e 241. Congress). (3) The Secretaiy of Defense shall delegate to the Secretary of 20 u s e 241 note. Education responsibility for the conduct of programs with funds so available. ADULT EDUCATION ACT SEC. 506. The total amount of appropriations to carry out the Adult 20 u s e 1211 Education Act shall not exceed $100,000,000 for each of the fiscal note. years 1982,1983, and 1984. 20 u s e 1201 note. ALCOHOL AND DRUG ABUSE EDUCATION ACT SEC. 507. The total amount of appropriations to carry out the 21 u s e 1002 Alcohol and Drug Abuse Education Act shall not exceed $3,000,000 note. for fiscal year 1982. 21 u s e 1001 note. CAREER EDUCATION INCENTIVE AC?! SEC. 508. The total amount of appropriations to carry out the 20 u s e 2603 Career Education Incentive Act shall not exceed $10,000,000 for fiscal note. year 1982. 20 u s e 2601 CIVIL RIGHTS ACT OF 1964 note. SEC. 509. The total amount of appropriations to carry out sections 42 u s e 2000C-2 403, 404, and 405 of title IV of the Civil Rights Act of 1964 (42 U.S.C. note. 2000c et seq.) shall not exceed $37,100,000 for each of the fiscal years 1982,1983, and 1984. DEPARTMENT OP EDUCATION SEC. 510. The total amount of appropriations for salaries and Appropriation authorization. expenses of the Department of Education shall not exceed 20 u s e 3488 $308,000,000 for each of the fiscal years 1982, 1983, and 1984, of note. which— (1) $49,396,000 shall be available for the Office of Civil Rights; and (2) $12,989,000 shall be available for the Office of the Inspector General; for each such year. EDUCATION AMENDMENTS OF 1978 SEC. 511. (a) No funds are authorized to be appropriated to carry out section 1015 of the Education Amendments of 1978 for fiscal year 94 Stat. 1497. 1982,1983, or 1984. 20 u s e 236 note. (b)(1) No funds are authorized to be appropriated to carry out part A of title XV of the Education Amendments of 1978 for fiscal year 22 u s e 287 note. 1982,1983, or 1984. (2) No funds are authorized to be appropriated to carry out part B of 20 u s e 1123 title XV of the Education Amendments of 1978 for fiscal year 1982, note. 1983, or 1984. 20 u s e 1172 (3) The total amount of appropriations to carry out section 1524 of note. the Education Amendments of 1978 relating to general assistance for 92 Stat. 2379. the Virgin Islands shall not exceed $2,700,000 for each of the fiscal years 1982,1983, and 1984.
95 STAT. 444 PUBLIC LAW 97-35—AUG. 13, 1981 20 u s e 1231a (4) No funds are authorized to be appropriated to carry out section note. 1526 of the Education Amendments of 1978 for fiscal year 1982,1983, or 1984. EDUCATION AMENDMENTS OF 1980 SEC. 512. (a) No funds are authorized to be appropriated to carry out 94 Stat. 1499. part D of title XIII of the Education Amendments of 1980 for fiscal 20 u s e 1221-1 year 1982,1983, or 1984. note. (b) No funds are authorized to be appropriated to carry out part H 94 Stat. 1502. of title XIII of the Education Amendments of 1980 for fiscal year 1982, 1983, or 1984. E L E M E N T A R Y A N D SECONDARY E D U C A T I O N ACT O P 1965 20 u s e 2702 SEC. 513. (a) The total amount of appropriations to carry out title I note. of the Elementary and Secondary Education Act of 1965 shall not 20 u s e 2701. exceed $3,480,000,000 for fiscal year 1982. From the amount appropri- ated in accordance with the preceding sentence, not more than 14.6 percent of such amount for fiscal year 1982 shall be available to carry 20 u s e 2761, out sections 141, 146, and 151, of such Act. After the requirement of 2771, 2781. the preceding sentence is met, the Secretary of Education shall 20 u s e 2722. assure that the amount available for section 117 of such Act bears the same ratio to the amount appropriated in such fiscal year for title I of such Act as the amount available for such section 117 in fiscal year 1980 bore to the total amount appropriated for title I of such Act in fiscal year 1980. Ob) The total amount of appropriations to carry out title II of the 20 u s e 2921 Elementary and Secondary Education Act of 1965 shall not exceed note. $31,500,000 for fiscal year 1982. (c)(1) The total amount of appropriations to carry out section 303 of 20 u s e 2943 the Elementary and Secondary Education Act of 1965 shall not note. exceed $25,500,000 for fiscal year 1982. (2) The total amount of appropriations to carry out part B of title III 20 u s e 2954 of such Act shall not exceed $1,380,000 for fiscal year 1982. note. (3) The total amount of appropriations to carry out part C of title III 20 u s e 2963 of such Act shall not exceed $3,150,000 for fiscal year 1982. note. (4) No funds are authorized to be appropriated to carry out part D of 20 u s e 2971 note. title III of such Act for fiscal year 1982. (5) The total amount of appropriations to carry out part E of title III 20 u s e 2983 of such Act shall not exceed $3,600,000 for fiscal year 1982. note. (6) No funds are authorized to be appropriated to carry out part F of 20 u s e 2992 title III of such Act for fiscal year 1982. note. (7) The total amount of appropriations to carry out part G of title III 20 u s e 3003 of such Act shall not exceed $1,000,000 for fiscal year 1982. note. (8) No funds are authorized to be appropriated to carry out part H 20 u s e 3018 of title III of such Act for fiscal year 1982. note. (9) No funds are authorized to be appropriated to carry out part I of 20 u s e 3024 title III of such Act for fiscal year 1982. note. (10) No funds are authorized to be appropriated to carry out part J 20 u s e 3034 of title III of such Act for fiscal year 1982. note. (11) No funds are authorized to be appropriated to carry out part K 20 u s e 3041 of title III of such Act for fiscal year 1982. note. (12) The total amount of appropriations to carry out part L of title 20 u s e 3057 III of such Act shall not exceed $3,000,000 for fiscal year 1982. note. (13) No funds are authorized to be appropriated to carry out part M 20 u s e 3062 of title III of such Act for fiscal year 1982. note. (14) No funds are authorized to be appropriated to carry out part N 94 Stat. 1471. of title III of such Act for fiscal year 1982. 20 u s e 3065 note.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 445 (d)(1) The total amount of appropriations to carry out part B of title IV of the Elementary and Secondary Education Act of 1965 shall not 20 u s e 3101 note. exceed $161,000,000 for fiscal year 1982. (2) The total amount of appropriations to carry out part C of title IV of such Act shall not exceed $66,130,000 for fiscal year 1982. 20 u s e 3111 (3) The total amount of appropriations to carry out part D of title IV note. of such Act shall not exceed $15,000,000 for fiscal year 1982. 20 u s e 3121 (e)(1) The total amount of appropriations to carry out part B of title note. V of the Elementary and Secondary Education Act of 1965 shall not 20 u s e 3163 exceed $42,075,000 for fiscal year 1982. note. (2) No funds are authorized to be appropriated to carry out part C of title V of such Act for fiscal year 1982. 20 u s e 3171 (f) The total amount of appropriations to carry out title VI of the note. Elementary and Secondary Education Act of 1965 shall not exceed 20 u s e 3194 note. $149,292,000 for fiscal year 1982. (g) The total amount of appropriations to carry out title VII of the Elementary and Secondary Education Act of 1965 shall not exceed 20 u s e 3222 $139,970,000 for each of the fiscal years 1982, 1983, and 1984. note. (h) The total amount of appropriations to carry out title VIII of the Elementary and Secondary Education Act of 1965 shall not exceed 20 u s e 3282 $3,138,000 for fiscal year 1982. note. (i)(l) The total amount of appropriations to carry out part A of title IX of the Elementary and Secondary Education Act of 1965 shall not 20 u s e 3313 exceed $5,652,000 for fiscal year 1982. note. (2) No funds are authorized to be appropriated to carry out part B of title IX of such Act for fiscal year 1982. 20 u s e 3331 (3) The total amount of appropriations to carry out part C of title IX note. of such Act shall not exceed $6,000,000 for each of the fiscal years 20 u s e 3348 1982,1983, and 1984. note. (4) No funds are authorized to be appropriated to carry out part D of title IX of such Act for fiscal year 1982. 20 u s e 3352 (5) The total amount of appropriations to carry out part E of title IX note. of such Act shall not exceed $2,250,000 for fiscal year 1982. 20 u s e 3367 (j)(l) Funds appropriated in an appropriation Act for fiscal year note. 1982 for title I of the Elementary and Secondary Education Act of 1965 which are intended for use by a State or local educational agency 20 u s e 2702 in the school year 1982-1983 shall remain available to such agency note. but shall be expended and used in accordance with chapter 1 of the Education Consolidation and Improvement Act of 1981. Post, p. 464. (2) Funds appropriated in an appropriation Act for fiscal year 1981 for title I of the Elementary and Secondary Education Act of 1965 which are not obligated by a State or local educational agency prior to July 1, 1982, shall remain available to such agency but shall be expended and used in accordance with chapter 1 of the Education Consolidation and Improvement Act of 1981. EDUCATION CONSOLIDATION AND IMPROVEMENT ACT OF 1981 SEC. 514. (a)(1) The total amount of appropriations to carry out 20 u s e 3802 chapter 1 of the Education Consolidation and Improvement Act of note. 1981 shall not exceed $3,480,000,000 for each of the fiscal years 1983 and 1984. (2) From the amount appropriated in accordance with the para- graph (1), not more than 14.6 percent of such amount for each of the fiscal years 1983 and 1984 shall be available to carry out programs described in sections 141, 146, and 151 of the Elementary and Secondary Education Act of 1965. After the requirement of the 20 u s e 2761, preceding sentence is met, the Secretary of Education shall assure 2771, 2781.
95 STAT. 446 PUBLIC LAW 97-35—AUG. 13, 1981 that the amount available for the programs described in section 117 20 u s e 2722. of the Elementary and Secondary Education Act of 1965 bears the same ratio to the amount appropriated in each such fiscal year for chapter 1 of the Education Consolidation and Improvement Act of Post, p. 464. 1981 as the amount available for such section 117 in fiscal year 1980 bore to the total amount appropriated for title I of the Elementary 20 u s e 2701 and Secondary Education Act of 1965 in fiscal year 1980. (bXD The total amount of appropriations to carry out chapter 2 of Post, p. 469. the Education Consolidation and Improvement Act of 1981 shall not exceed $589,368,000 for each of the fiscal years 1982,1983, and 1984. (2XA) Funds appropriated in an appropriation Act for fiscal year 1982 for any program described in section 561(a) (1), (2), (3), (5), and (6) Post, p. 469. of this Act which are intended for use by a State or local educational agency in the school year 1982-1983 shall remain available to such agency but shall be expended and used in accordance with chapter 2 of the Education Consolidation and Improvement Act of 1981. (B) Funds appropriated in an appropriation Act for fiscal year 1981 for any program described in section 561(a) (1), (2), (3), (5), and (6) of this Act which are not obligated by a State or local educational agency prior to July 1, 1982, shall remain avsiilable to such agency but shall be expended and used in accordance with chapter 2 of the Education (Consolidation and Improvement Act of 1981. GENERAL EDUCATION PROVISIONS ACT SEC. 515. (a) The total amount of appropriations to carry out section 94 Stat. 1498. 405 of the (Jeneral Education Provisions Act shall not exceed 20 u s e 1221e $55,614,000 for each of the fiscal years 1982,1983, and 1984. note. (b) The total amount of appropriations to carry out section 406 of 20 u s e 1221e-l the Genered Education Provisions Act shall not exceed $8,947,000 for note. each of the fiscal years 1982,1983, and 1984. (c) The total amount of appropriations to carry out section 406A(1) 20 u s e 1221e-la of the General Education Provisions Act shall not exceed $1,875,000 note. for fiscal year 1982. (d) The total amount of appropriations to carry out section 406A(2) of the General Education Provisions Act shall not exceed $5,000,000 for each of the fiscal years 1982,1983, and 1984. HIGHER EDUCATION ACT OF 1965 SEC. 516. (aXD No funds are authorized to be appropriated to carry 94 Stat. 1373. out part A of title I of the Higher Education Act of 1965 for fiscal year 20 u s e 1005 1982,1983, or 1984. note. (2) The total amount of appropriations to carry out part B of title I 94 Stat. 1377. of such Act shall not exceed $8,000,000 for fiscal year 1982, 1983, or 20 u s e 1019 1984. note. (bXD The total amount of appropriations to carry out part A of title 94 Stat. 1384. II of the Higher Education Act of 1965 shall not exceed $5,000,000 for 20 u s e 1029 each of the fiscal years 1982,1983, and 1984. note. (2) The total amount of appropriations to carry out part B of title II 94 Stat. 1385. of such Act shall not exceed $1,200,000 for each of the fiscal years 20 u s e 1031 1982,1983, and 1984. note. (3) The total amount of appropriations to carry out part C of title II 94 Stat. 1386. of such Act shall not exceed $6,000,000 for each of the fiscal years 20 u s e 1041 1982,1983, and 1984. note. (4) No funds are authorized to be appropriated to carry out part D of 20 u s e 1047J title II of such Act for fiscal year 1982,1983, or 1984. note.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 447 (5) No funds available for carrying out part A and section 224 of part B of such title for any such fiscal year shall be made available to 94 Stat. 1384, any institution, organization, or agency which is a recipient of 1385. assistance under part C of such title. 20 use 1029 note. (cXD The total amount of appropriations to carry out title III of the 94 Stat. 1386. Higher Education Act of 1965 shall not exceed $129,600,000 for each 20 use 1041. 94 Stat. 1390. of the fiscal years 1982,1983, and 1984. (2) Section 381(a)(1) of the Higher Education Act of 1965 is amended 20 use 1069c note. by striking out the period at the end of clause (B) and by inserting in 1395. 94 Stat. 1064. lieu thereof a semicolon and the word "or", and by adding at the end 20 use thereof the following new clause: "(C) which is an institution of higher education which includes a substantial number of minority and educationally disadvan- taged students, which provides a medical education program which leads to a doctor of medicine degree or which is not less than a two year program fully acceptable toward such a degree, and which in fiscal year 1980 received a grant as a two year medical school under section 788(a) of the Health Professions Educational Assistance Act of 1976.". 42 u s e 295g-8. (d)(1)(A) The total amount of appropriations to carry out subpart 1 of part A of title IV of the Higher Education Act of 1965 shall not 20 u s e 1070a exceed $2,650,000,000 for fiscal year 1982, $2,800,000,000 for fiscal note. year 1983, and $3,000,000,000 for fiscal year 1984. (B) If the Secretary of Education determines that it is necessary to Waiver waive any provision of subpart 1 of part A of title IV of the Higher notification to congressional Education Act of 1965 to meet the authorizations specified in subpar- committees. agraph (A) of this paragraph, the Secretary shall notify the Commit- tee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives. The notification shall contain a description of each provision of such subpart that the Secretary proposes to waive and the reasons for the waiver. The Secretary may waive each provision contained in the notification submitted under this subparagraph if the Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives within 30 days after the receipt approve of the waiver of that provision. Before the Secretary may act under this subparagraph, each such committee must approve of the waiver of each provision requested in the notification. (2) The total amount of appropriations to carry out subpart 2 of part A of title IV of such Act shall not exceed $370,000,000 for each of the 20 u s e 1070b fiscal years 1982,1983, and 1984. note. (3) The total amount of appropriations to carry out subpart 3 of part A of title IV of such Act shall not exceed $76,800,000 for each of the 20 u s e 1070c fiscal years 1982,1983, and 1984. note. (4) The total amount of appropriations to carry out subpart 4 of part A of title IV of such Act shall not exceed $165,000,000 for the fiscal 94 Stat. 1407. year 1982, $170,000,000 for each of the fiscal years 1983 and 1984. 20 u s e 1070d note. (5) The total amount of appropriations to carry out subpart 5 of part A of title IV of such Act shall not exceed $7,500,000 for each of the 94 Stat. 1411. fiscal years 1982,1983, and 1984. 20 u s e 1070d-2 note. (6)(A) No funds are authorized to be appropriated to carry out section 419 of such Act for fiscal year 1982,1983, or 1984. 20 u s e 1070e (B) The total amount of appropriations to carry out section 420 of note. such Act shall not exceed $12,000,000 for each of the fiscal years 1982, 94 Stat. 1412. 1983, and 1984. 20 u s e 1070e-l note.
95 STAT. 448 PUBLIC LAW 97-35—AUG. 13, 1981 (7) The total amount of appropriations to carry out part C of title IV 94 Stat. 1433. of such Act shall not exceed $550,000,000 for each of the fiscal years 42 u s e 2751 note. 1982,1983, and 1984. (8) The total amount of appropriations to carry out part E of title IV 94 Stat. 1437. of such Act shall not exceed $286,000,000 for each of the fiscal years 20 u s e 1087aa 1982,1983, and 1984. note. (9) The total amount of appropriations to carry out section 491 of 94 Stat. 1454. such Act shall not exceed $1,000,000 for fiscal year 1982 and 20 u s e 1098 $2,000,000 for fiscal year 1983. note. (e)(1) The total amount of appropriations to carry out part A of title 94 Stat. 1459. V of the Higher Education Act of 1965 shall not exceed $22,500,000 for 20 u s e 1101 note. fiscal year 1982. (2)(A) The total amount of appropriations to carry out part B of title 94 Stat. 1459. V of such Act shall not exceed $9,100,000 for fiscal year 1982. 20 u s e 1119 (B) The last sentence of section 531 of such Act shall not apply to note. the funds appropriated to carry out part B of title V of such Act for fiscal year 1982,1983, or 1984. (3) No funds are authorized to be appropriated to carry out part C of 94 Stat. 1461. title V of such Act for fiscal year 1982,1983, or 1984. 20 u s e 1119b-5 note. (4) No funds are authorized to be appropriated to carry out part D of 94 Stat. 1464. title V of such Act for fiscal year 1982,1983, or 1984. 20 u s e 1119c (f) The total amount of appropriations to carry out title VI of the note. Higher Education Act of 1965 shall not exceed $30,600,000 for each of 94 Stat. 1464. 20 u s e 1127 thefiscalyears 1982,1983, and 1984. note. (g) No funds are authorized to be appropriated to carry out part A 94 Stat. 1472. or B of title VII of the Higher Education Act of 1965 for fiscal year 20 u s e 1132a-l note. 1982,1983, or 1984. (h) The total amount of appropriations to carry out title VIII of the 94 Stat. 1481. Higher Education Act of 1965 shall not exceed $20,000,000 for each of 20 u s e 1133 note. thefiscalyears 1982,1983, and 1984. (i)(l) No funds are authorized to be appropriated to carry out part A 20 u s e 1134 of title IX of such Act for fiscal year 1982,1983, or 1984. note. (2) The total amount of appropriations to carry out part B of title IX 94 Stat. 1482. of the Higher Education Act of 1965 shall not exceed $14,000,000 for 20 u s e 1134g each of the fiscal years 1982,1983, and 1984. note. (3) No funds are authorized to be appropriated to carry out part C of 94 Stat. 1484. title IX of such Act for fiscal year 1982,1983, or 1984. 20 u s e 1134h note. (4) The total amount of appropriations to carry out part D of title IX 94 Stat. 1486. of such Act shall not exceed $1,000,000 for each of the fiscal years 20 u s e 1134m 1982,1983, and 1984. note. (5) The total amount of appropriations to carry out part E of title IX 94 Stat. 1487. of such Act shall not exceed $1,000,000 for each of the fiscal years 20 u s e 1134p 1982,1983, and 1984. note. (j) The total amount of appropriations to carry out title X of the 94 Stat. 1489. Higher Education Act of 1965 shall not exceed $13,500,000 for each of 20 u s e 1135a-3 the fiscal years 1982,1983, and 1984. note. INDIAN EDUCATION ACT 20 u s e 241ff SEC. 517. The total amount of appropriations to carry out the note. 20 u s e 241aa Indian Education Act shall not exceed $81,700,000 for fiscal year note. 1982, $88,400,000 for the fiscal year 1983, and $95,300,000 for the fiscal year 1984.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 449 JOHNSON-O'BIALLEY ACT; SNYDER ACT; NAVAJO COMMUNITY COLLEGE ACT; TRIBALLY CONTROLLED COMMUNITY COLLEGE ASSISTANCE ACT OF 1978 SEC. 518. The total amount of appropriations— 25 u s e 13 note. (1) to carry out the Act of April 16» 1934» commonly referred to as the JohnsonO'Mallev Act; 25 use 452 (2) to carry out all education programs under the direction of "o*® the Office of Indian Education Pn^rams in the Bureau of Indian Affairs of the Department of the mterior authorized under the Act of November 2,1921, commonly referred to as the Snyder Act 25 use 13. (and not otherwise expressly authorized by law); (3) to carry out the Navsyo Community College Act; and 25use640a (4) to carry out the Tribally Controlled Community College "^^ Assistance Actof 1978; 25 use 1801 shall not exceed $262,300,000 for fiscal year 1982, $276,100,000 for the '^"^ fiscal year 1983, and $290,400,000 forfiscalyear 1984. JOINT RESOLUTION OF OCTOBER 19, 1972 (ELLENDER FELLOWSHIP PROGRAM) SEC. 519. The total amount of appropriations to carry out the joint resolution of October 19,1972, shall not exceed $1,000,000 for each of 86 stat. 907. thefiscalyears 1982,1983, and 1984. LIBRARY SERVICES AND CONSTRUCTION ACT SEC. 520. (a) The total amoimt of appropriations to carry out the 20 u s e 351b Library Services and Construction Act shidl not exceed $80,000,000 «« TTQP or. „^.^ for eachof thefiscalyears 1982,1983,and 1984of which— ^" ^^ ^^^ ''°^- (1) not more than $65,000,000 shall be available for title I of such Act; and 20 use 352. (2) not more than $15,000,000 shall be available for title m of such Act, 20USe355e. for each such year. (b) No funds are authorized to be appropriated to carry out title n of the Library Services and Construction Act for fiscal year 1982,1983, 20 use 355a. or 1984. BfUSEUM SERVICES ACT SEC. 521. The total amount of appropriations to carry out the 20 use 96? note. Museum Services Act shall not exceed $9,600,000 for each of the fiscal 20 use 96i note. years 1982,1983, and 1984. NATIONAL COMBOSSION ON LIBRARIES AND INFORBfATION SCIENCE ACT SEC. 522. The total amount of appropriations to carry out the 20 u s e 1506 National Commission on Libraries and Information Science Act shall note. 20 u s e 1501 not exceed $700,000 for each of the fiscal years 1982,1983, and 1984. note. NATIONAL FOUNDATION ON THE ARTS AND THE HUBIANITIES ACT OF 1965 20 u s e 951 note. SEC. 528. The total amount of appropriations to the National 20 use 960 note. Endowment for the Arts shall not exceed $119,300,000 for each of the fiscal years 1982,1983, and 1984. SEC. 524. The total amount of appropriations to the National ^^ use 96o note. Endowment for the Humanities shall not exceed $118,700,000 for each of thefiscalyears 1982,1983, and 1984.
95 STAT. 450 PUBLIC LAW 97-35—AUG. 13, 1981 REFUGEE EDUCATION CONSOLIDATION SEC. 525. The total amount of appropriations to carry out titles I 94 Stat. through IV of the Refugee Education Assistance Act of 1980 shall not 1799-1807. exceed $5,000,000 for fiscal year 1982, $7,500,000 for fiscal year 1983, 8 u s e 1522 note. and $10,000,000 for fiscal year 1984. REFUGEE CUBAN AND HAITIAN PROGRAMS 8 use 1522 note. SEC. 526. (aXD The total amount of appropriations to carry out Cuban and Haitian reception activities shall not exceed $20,000,000 for fiscal year 1982. (2) No funds are authorized to be appropriated to Cuban and Haitian reception activities for the fiscal year 1983. (b) The total amount of appropriations to carry out Cuban and Haitian domestic activities shall not exceed $94,000,000 for fiscal year 1982 and $59,000,000 for fiscal year 1983. VOCATIONAL EDUCATION ACT OF 1963 20 u s e 2302 SEC. 527. The total amount of appropriations to carry out the note. Vocational Education Act of 1963 shall not exceed $735,000,000 for 20 u s e 2301 note. each of the fiscal years 1982,1983, and 1984. GENERAL EXTENSION OF AUTHORIZATIONS 20 u s e 3489. SEC. 528. Subject to the limitations contained in subtitle A of this title, there are authorized to be appropriated for fiscal years 1982, 1983, and 1984 such sums as may be necessary to carry out each of the following provisions of law: 20 u s e 236 et (1) the Act of September 30, 1950 (Public Law 874, 81st seq. Congress); 20 u s e 631 et (2) the Act of September 23, 1950 (Public Law 815, 81st seq. Congress); 20 u s e 1221. (3) the (General Education Provisions Act; 20 u s e 241aa. (4) the Indian Education Act; (5) titles XI, XIV, and XV of the Education Amendments of 92 Stat. 2313, 1978 and part H of title XIII of the Education Amendments of 2365, 2373. 1980; 94 Stat. 1502. 20 u s e 1201 (6) the Adult Education Act; note. (7) section 342 of the Education Amendments of 1976; 20 u s e 2532. (8) the Asbestos School Hazards Detection and Control Act; 94 Stat. 487. (9) the Joint Resolution of October 19, 1972 (86 Stat. 907); 20 u s e 3601 note. (10) the Vocational Education Act of 1963; 20 u s e 2301 (11) title IV of the Civil Rights Act of 1964; note. (12) the Library Services and Construction Act; 42 u s e 2000c. 25 u s e 351 note. (13) the Navajo Community College Act and the Tribally 25 u s e 640a. Controlled Community College Assistance Act of 1978; and note. (14) part C of title IX of the Elementary and Secondary 20 u s e 1801 Education Act of 1965, relating to Women's Educational Equity. note. 20 u s e 3341. Postsecondary Subtitle B—Student Assistance Provisions Student Assistance Amendments SHORT TITLE of 1981. 20 u s e 1001 SEC. 531. This subtitle may be cited as the "Postsecondary Student note. Assistance Amendments of 1981".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 451 ELIGIBIUTY FOR SUBSIDIZED LOANS SEC. 582. (a) Section 428(aX2) of the Higher Education Act of 1965 20 u s e 1078. (hereafter in this subtitle referred to as the "Act") is amended to read as follows: "(2XA) Each student qualifying for a portion of an interest payment under paragraph (1) s h ^ — "(i) have provided to the lender a statement from the eligible institution, at which the student has been accepted for enroll- ment, or at which the student is in attendance, which— "(I) sets forth such student's estimated cost of attendance; and "(II) sets forth such student's estimated financial assist- ance; and "(ii) meet the requirements of subparagraph (B). "(B) For the purpose of clause (ii) of subparagraph (A), a student shall qualify for a portion of an interest pajnnent under paragraph (1) if the adjusted gross income of such student's family— "(i) is less than or equal to $30,000; or "(ii) is greater than $30,000, and the eligible institution has provided the lender with a statement evidencing a determination of need for a loan and the amount of such need, subject to the provisions of subparagraph (F). "(C) For the purpose of paragraph (1) and this paragraph— "(i) a student's estimated cost of attendance means, for the period for which the loan is sought, the tuition and fees applica- ble to such student together with the institution's estimate of other expenses regisonably related to attendance at such institu- tion, including, but not limited to, the cost of room and board, reasonable transportation costs, and costs for books and supplies; "(ii) a student's estimated financial assistance means, for the period for which the loan is sought, the amount of assistance such student will receive under subparts 1 and 2 of part A, and parts C and E of this title, any amount paid under the Social 20 u s e 1070a, 1070b; Security Act to, or on account of, the student which would not be 42 u s e 2751; paid if he were not a student, and any amount paid the student 20 u s e 1087aa. under chapters 32,34, and 35 of title 38, United States Code, plus 42 u s e 1305. other scholarship, grant, or loan assistance; and 38 u s e 1601 et seq., 1651 et seq., "(iii) the determination of need and of the amount of a loan by 1700 et seq. an eligible institution under subparagraph (B)(ii) with respect to a student shall be calculated by subtracting from the estimated cost of attendance at the eligible institution the total of the expected family contribution with respect to such student plus any estimated financial assistance reasonably available to such student. "(D) The Secretary shall submit a separate schedule of expected Schedule of expected family contributions to the President of the Senate and the Speaker family of the House of Representatives not later than the submission of, and contributions. in accordance with the procedures for, the proposed schedule of 94 Stat. 1445. expected family contributions under section 482, except as provided 20 u s e 1089. in subparagraph (E). "(E)(i) The initial separate schedule required by subparagraph (D) shall— "(I) be submitted not later than August 15,1981; "(II) be effective on October 1, 1981, except £is is otherwise provided in division (ii);
95 STAT. 452 PUBLIC LAW 97-35—AUG. 13, 1981 "(Ill) not be the subject of public comment otherwise required 94 Stat. 1445. by section 482(a)(1) of this Act or section 431 of the General 20 u s e 1089. Education Provisions Act; and 20 u s e 1232. "(IV) be subject to amendment prior to the next regular submission of a separate schedule as required by subparagraph (D) only in accordance with division (iv) of this subparagraph. Congressional "(ii) If either the Senate or the House of Representatives adopts, disapproval. prior to October 1, 1981, a resolution of disapproval of the schedule submitted under division (i), such schedule shall not take effect. If such schedule is so disapproved, or if the Secretary does not submit such a schedule by August 15, 1981, then beginning on October 1, 1981, the expected family contribution for purposes of this paragraph shall be determined by the eligible institution in accordance with 20 u s e 1070a, regulations promulgated under section 411 or 413B, as in effect for 1070b-l. the period beginning on July 1,1981, governing the determination of expected family contribution. (iii) The method of determining the expected family contribution established under this subparagraph shall remain in effect until superseded by the taking effect of the next schedule submitted in accordance with subparagraph (D) or amended in accordance with division (iv) of this subparagraph. "(iv) Any amendment promulgated by the Secretary to the initial separate schedule established under this subparagraph shall be transmitted to the President of the Senate and the Speaker of the House of Representatives not later than the time of its publication in the Federal Register. If either the Senate or House of Representatives adopts, within 30 legislative days following the publication of such amendment, a resolution of disapproval of such amendment, such amendment shall not take effect. "(F) For the purpose of a student described in clause (ii) of subparagraph (B), the amount of the loan which is qualified for a payment under paragraph (1) is the amount of the need of such student as determined by the eligible institution, except that, if the amount of need is equal to or more than $500, but is less than $1,000, the amount of the loan which is qualified for such payment shall be $1,000.". 20 u s e 1078. (b)(1) Section 42803)(l)(A)(i) of the Act is amended by striking out "section 428(a)(2)(B)(i)" and inserting in lieu thereof "section 428(a)(2)(C)(i)". Repeal. (2) Section 439B of the Act is repealed. Nothing in this paragraph or 20 u s e 1087-3a, in any other provision of this title, or in any provision of the Higher 1078 note. 20 u s e 1001 Education Act of 1965 as amended by this title, shall be construed to note. permit any analysis of need for the purposes of loans under part B of 20 u s e 1071. title IV of such Act other than that expressly required by section 428(a)(2) of such Act as amended by this section or to require a student seeking to qualify under section 428(a)(2)(B)(i) to prove any element of need other than compliance with the adjusted gross income amount specified in such section. 94 Stat. 1424. (3) Section 428B03)(3) of the Act is amended by striking out "No" 20 u s e 1078-2. and inserting in lieu thereof "Any loan under this section may be counted as part of the student's expected family contribution in the determination of need under this title, but no". 94 Stat. 1425. (4) Section 438G3)(5) of the Act is amended to read as follows: 20 u s e 1087-1. "(5) As used in this section, the term 'eligible loan' means a loan— "(A)(i) on which a portion of the interest is paid on behalf of the student and for his account to the holder of the loan under section 428(a); 94 Stat. 1430. "(ii) which is made under section 428B or 439(o); or 20 u s e 1087-2.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 453 "(iii) which was made prior to October 1,1981; and "(B) which is insured under this part, or made under a program covered by an agreement under section 428(b) of this Act.". 20 use 1078. NEED ANALYSIS AMENDMENTS SEC. 533. (a)(1) Section 482(a)(1) of the Act is amended by striking 94 Stat. 1445. 20 u s e 1089. out everything after the comma following the words "family income, which," and inserting in lieu thereof the following: "together with any amendments published in the Federal Register, no later than September 1,1981, June 1,1982, and J u n e 1 of each succeeding year, shall become effective July 1 of the calendar year which succeeds such calendar year, except as is otherwise provided in paragraph (2). During the thirty-day period following publication of a schedule the Secretary shall provide interested parties with an opportunity to present their views and make recommendations with respect to such schedule. Such schedule shall be adjusted annually.". (2) Section 482(a)(2) of the Act is amended to read as follows: New or revised "(2) The schedule of expected family contributions required for schedules, congressional each academic year, including any amendments thereto published disapproval. pursuant to paragraph (1), shall be transmitted to the President of the Senate and the Speaker of the House of Representatives not later than the time of its publication in the Federal Register. If either the Publication in Senate or House of Representatives adopts, prior to October 15,1981, Federal Register. July 15, 1982, or July 15 of any succeeding year, following the submission of such schedule and any amendments thereto as re- quired by this paragraph, a resolution of disapproval of such schedule or amendments, in whole or in part, the Secretary shall publish a new schedule of expected family contributions in the Federal Register not later than fifteen days after the adoption of such resolution of disapproval. Such new schedule shall take into consideration such recommendations as may be made in either House in connection with such resolution. If within fifteen days following the submission of the Publication in revised schedule, either the Senate or the House of Representatives Federal Register. again adopts a resolution of disapproval, in whole or in part, of such revised schedule, the Secretary shall publish a new schedule of expected family contributions in the Federal Register not later than fifteen days after the adoption of such resolution of disapproval. This procedure shall be repeated until neither the Senate nor the House of Representatives adopts a resolution of disapproval. The Secretary shall publish together with each new schedule a statement identify- ing the recommendations made in either House in connection with such resolution of disapproval and explaining his reasons for the new schedule.". (3) The first sentence of section 431(d)(1) of the General Education Provisions Act is amended by inserting after "final regulation" the 20 u s e 1232. first time it appears the following: "(except expected family contribu- tion schedules and any amendments thereto promulgated pursuant to sections 428(a)(2) (D) and (E) and 482(a) (1) and (2) of the Higher Education Act of 1965)". Ante, p. 451. (b) Section 482(b)(4) of the Act is amended to read as follows: 94 Stat. 1445. "(4) In determining the expected family contribution under this 20 u s e 1089. section for any academic year after academic year 1981-1982, the Secretary shall establish a series of assessment rates to be applied to parental discretionary income.".
95 STAT. 454 PUBLIC LAW 97-35—AUG. 13, 1981 AUXILIARY PROGRAM 94 Stet. 1419. SEC. 534. (aXD Section 427A of the Act is amended by redesignating 20 use 1077a. subsection (c) as subsection (d) and by inserting after subsection (b) the following: ''(cXD Except as otherwise provided in this subsection, the applica- 9ft ^TQr- ^ftls 9 ^^® ^^*® of interest on loans made pursuant to section 428B on or after 20 use 1078-2. October 1, 1981, shall be 14 per centum per anniun on the unpaid principal balance of the loan. ''(2) If for any twelve-month period beginning on or after October 1, 1981, the Secretary, after consultation with the Secretary of the Treasury, determines that the average of the bond equivalent rates of ninety-one-day Treasury bills auctioned for such twelve-month period is equal to or less than 14 per centum, the applicable rate of i n t e r s for loans made pursuant to section 428B on and after the first day of the first month beginning after the date of publication of such determination shall be 12 per centum per annum on the unpaid principal balance of the loan. "(3) If for any twelve-month period beginning on or after the date of publication of a determination under paragraph (2), the Secretary, after consultation with the Secretary of the Treasury, determines that the average of the bond equivalent rates of ninety-one-day Treasury bills auctioned for such twelve-month period exceeds 14 per centum, the applicable rate of interest for loans made pursuant to section 428B on and after the first dav of the first month beginning after the date of publication of that determination under this para- graph shall be 14 per centum per annum on the unpaid principal balance of the loan. . (2) Section 428B(cX3) is amended by striking out everything after ''unpaid principal balance of the loan," and inserting in lieu thereof the following: "except as otherwise required by section 427A(c).". ?ft i^h Iftll 1 *) Section 438(bX2) of the Act is amended— ^0 ubL io«7-i. (J) jjy striking out subparagraphs (A), (B), and (C) and inserting in lieu thereof the following: "(2XA) Subject to subparagraph (B) and paragraph (4), the special allowance paid pursuant to this subsection on loans shall be com- puted (i) by determining the average of the bond equivalent rates of ninety-one-day Treasury bills auctioned for such three month period, (ii) by subtracting the applicable interest rate on such loans from such average, (iii) by ad(ung 3.5 per centum to the resultant per centum, and (iv) by dividing the resultant per centum by four."; (2) by redesignating subparagraph (D) as subparagraph (B); and (3) by striking out "subparagraph (A), (B), or (C)" in subpara- graph (B) (as so redesignated) and inserting in lieu thereof subparagraph (A)". (cXD Section 428B(a) of the Act is amended by inserting "(1)" after "(a)" and by adding at the end thereof the following new paragraph: "(2) Graduate or professional students (as defined by regulations of the Secretary) and independent undergraduate students (as defined 94 Stat. 1445. in section 482(cX2)) shall be eligible to borrow funds under this section 20 use 1089. ijj amounts specified in subsection (b) (treating graduate and profes- sional students as parents for the purposes of such subsection), and unless otherwise specified in subsections (c) and (d), such loans shall have the same terms, conditions, and benefits as all other loans made under this part.". Oft ^^h lani'o (2) Section 428B(b) of the Act is amended by adding at the end ^^ use 1078-2. thereof the following new paragraph:
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 455 "(4)(A) Subject to subparagraph (B) of this paragraph, the maxi- mum amount an independent undergraduate student may borrow under this section in any academic year or its equivalent (as defined by regulation by the Secretary) is equal to (i) $2,500, minus (ii) the amount of all other loans under this part to such student for such academic year or its equivalent. "(B) The aggregate insured unpaid principal amount for insured loans made to an independent undergraduate student under this part (including loans made under this section) shall not exceed $12,500.". (3) The heading of section 428B of the Act is amended to read as follows: "AUXILIARY LOANS TO ASSIST STUDENTS". INDEPENDENT STUDENT LOAN LIMITATIONS SEC. 535. (a) Section 425(a)(1) of the Act is amended— 94 Stat. 1416. (1) by striking out clause (A) and by redesignating clauses (B), ^^ ^SC 1075. (C), and (D) as clauses (A), (B), and (C), respectively; and (2) by striking out "clause (C)" in the last sentence of such section and inserting in lieu thereof "clause (B)". (b) Section 425(a)(2) of the Act is amended— (1) by striking out "(other than an independent student)"; and (2) by striking out "$15,000 in the case of any independent student who has not successfully completed a program of under- graduate education,". (c) The matter preceding subdivision (i) of section 428(b)(1)(A) of the Act is amended— Ante, p. 452. (1) by striking out "(other than an independent student)"; and (2) by striking out "or not more than $3,000 in the case of an independent student (defined in accordance with section 482(c)(2)) who has not successfully completed a program of 94 Stat. 1445. undergraduate education,". ^^ USC 1089. (d) Section 428(b)(1)(B) of the Act is amended— (1) by striking out "(other than an independent student)"; and (2) by striking out "$15,000 in the case of any independent student who has not successfully completed a program of under- graduate education,". (e) Section 428 A of the Act is amended— 94 Stat. 1416, (1) by striking out ", other than an independent student," in 1417. subsection (a)(1)(A) and in subsection (a)(2)(A); 20 USC 1078-1. (2) by striking out "$3,000 (in the case of an independent student (as defined in section 482(c)(2)) who has not successfully completed a program of undergraduate education)," in each such subsection; (3) by striking out "(other than an independent student)" in each such subsection; and (4) by striking out "$15,000 in the case of any independent student who has not successfully completed a program of under- graduate education," in each such subsection. ORIGINATION FEES SEC. 536. (a) Section 438 of the Act is amended by redesignating 94 Stat. 1425. subsection (c) as subsection (d) and by inserting after subsection (b) ^0 USC 1087-1. the following new subsection: "(c)(1) Notwithstanding subsection (b), the total amount of interest and special allowance payable under section 428(a)(3)(A) and subsec- 20 USC 1078. 9-194 0—82 31 : QL3
95 STAT. 456 PUBLIC LAW 97-35—AUG. 13, 1981 tion (b) of this section, respectively, to any holder shall be reduced by the Secretary by the amount which the lender is authorized to charge as an origination fee in accordance with paragraph (2) of this subsection. If the total amount of interest and special allowance 20 use 1078. payable under section 428(a)(3)(A) and subsection (b) of this section, respectively, is less than the amount the lender was authorized to charge borrowers for origination fees in that quarter, the Secretary shall deduct the excess amount from the subsequent quarters' pay- ments until the total amount has been deducted. "(2) With respect to any loan (other than loans made under section 94 Stat. 1424, 428B and section 439(o)) for which a completed note or other written 20^TJsr 078-2 evidence of the loan was sent or delivered to the borrower for signing 1087-2 ®^ °^ after 10 days after the date of enactment of the Postsecondary Ante, p. 450. Student Assistance Amendments of 1981, each eligible lender under this part is authorized to charge the borrower an origination fee in an amount not to exceed 5 per centum of the principal amount of the loan, which may be deducted from the proceeds of the loan prior to payment to the borrower. "(3) Such origination fee shall not be taken into account for 94 Stat. 1419. purposes of determining compliance with section 427A. 20 use 1077a. «(4) "pj^g lender shall disclose to the borrower the amount and method of calculating the origination fee. For any loan for which the lender is authorized to charge an origination fee and which is made prior to August 1,1982— "(A) this disclosure need not meet the requirements of the Truth in Lending Act (15 U.S.C. 1601 et seq.) or the disclosure requirements of any State law; "(B) for purposes of such Act, a lender may disclose either in the note or other written evidence of the loan or in a supplemen- tary letter (which need not be signed by the borrower); "(C) for purposes of such Act, the origination fee shall not be taken into account in calculating and disclosing the annual percentage rate; and "(D) a lender or an assignee shall not incur civil liability under 15 use 1640. section 130 of such Act nor be subject to any administrative 15 use 1607. enforcement action pursuant to section 108 of such Act for disclosures in connection with such loans.". 20 use 1078. (b) Section 428(a)(3)(A) of the Act is amended by inserting "and Ante, p. 455. subject to section 438(c)" after "Except as provided in paragraph (8)". ADMINISTRATIVE SAVINGS; TECHNICAL AMENDMENTS SEC. 537. (aXD Section 428(e) of the Act is repealed. OA fjih }^B- (2) The first sentence of section 489(a) of the Act is amended by 20 use 1096. striking out "$10" and inserting in lieu thereof "$5". 20 use 1077. (b)(1) Section 427(c) of the Act is amended by striking out "$360" each place it appears and inserting in lieu thereof "$600". 20 use 1078. (2) Section 428(bXlXL) of the Act is amended by striking out "$360" each place it appears and inserting in lieu thereof "$600". (c) Section 428(c) of the Act is amended— (1) in paragraph (2XD), by striking out "but shall not otherwise provide for subrogation of the United States to rights of any insurance beneficiary" and inserting in lieu thereof "but shall provide for subrogation of the United States to the rights of any insurance beneficiary only to the extent required for purposes of paragraph (8)"; and (2) by adding at the end thereof the following new paragraph:
PUBLIC LAW 97-35-AUG. 13,1981 95 STAT. 457 "(8) If the Secretary determines that the protection of the Federal fiscal interest so requires, a State or nonprofit private institution or organization with which the Secretary has an agreement under subsection (b) shall assign to the Secretary any loan of which it is the holder and for which the Secretary has made a payment pursuant to paragraph (1) of this subsection.". (dXD The matter following section 428(bXl)(MXviii) of the Act is 20 use 1078. amended by striking out", and that no repayment of principal of any loan for any period of study, training, service, or unemployment described in this clause or any combination thereof shall begin until six months after the completion of such period or combination thereof. (2) Section 427(aX2XC) of the Act is amended— 20 use 1077. (A) by striking out "that any such period" and inserting in lieu thereof "and that any such period"; and (B) by striking out", and that no repayment of principal of any loan for a period of study, training, service, or unemployment described in this clause or any combination thereof shall begin until six months after the completion of such period or combina- tion thereof. (eXD Section 427(aX2XB) of the Act is amended by striking out "not earlier than". (2) Section 428(b)(lXE) of the Act is amended by striking out "not earlier than". AMENDMENTS CONCERNING THE STUDENT LOAN MARKETING ASSOCIATION SEC. 538. (a) Section 439(a) of the Act is amended by striking out 20 use 1087-2. "insured" wherever it appears, and by inserting after "student ^" ^°^ ^""^• loans," the first time it appears the following: "including loans which are insured". (b) Section 439(a) of the Act is further amended by striking out "and" at the end of clause (1), and by striking the period at the end of clause (2) and inserting in lieu thereof the following: "; and (3) to assure nationwide the establishment of adequate loan insurance programs for students, to provide for an additional program of loan insurance to be covered by agreements with the Secretary.". (c) Section 439(d)(1) of the Act is amended to read as follows: "(dXD The Association is authorized, subject to the provisions of this section— "(A) pursuant to commitments or otherwise to make advances on the security of, purchase, or repurchase, service, sell or resell, offer participations, or pooled interests or otherwise deal in, at prices £ind on terms and conditions determined by the Associ- ation, student loans which are insured by the Secretary under this part or by a State or nonprofit private institution or organization with which the Secretary has an agreement under section 428(b); "(B) to buy, sell, hold, underwrite, and otherwise deal in obligations, if such obligations are issued, for the purpose of making or purchasing insured loans, by a State or nonprofit private institution or organization which has an agreement with the Secretary under section 428(b) or by an eligible lender in a State described in section 435(gXl) (D) or (F); "(C) to undertake a program of loan insurance pursuant to agreements with the Secretary under sections 428 and 428(A), and except with respect to loans under section 439(o), the Secre-
95 STAT. 458 PUBLIC LAW 97-35—AUG. 13, 1981 tary may enter into an agreement with the Association for such purpose only if the Secretary determines that (i) ehgible borrow- ers are seelong and unable to obtain loans under this part, and (ii) no State or nonprofit private institution or organization having an agreement with the Secretary for a program of loan insurance under this part is capable of or willing to provide a program of loan insurance for such borrowers; and "(D) to undertake any other activity which the Board of Directors of the Association determines to be in furtherance of the programs of insured student loans authorized under this part or will otherwise support the credit needs of students. The Association is further authorized to undertake any activity with regard to student loans which are not insured or guaranteed as provided for in this subsection as it may undertake with regard to insured or guaranteed student loans. Any warehousing advance made on the security of such loans shall be subject to the provisions of paragraph (3) of this subsection to the same extent as a warehousing advance made on the security of insured loans.". 20 u s e 1087-2. (d) Section 439(1) of the Act is amended by adding at the end thereof the following: "The obligations of the Association shall be deemed to be obligations of the United States for purposes of section 3701 of the Revised Statutes (31 U.S.C. 742). For the purpose of the distribution of its property pursuant to section 726 of title 11, United States Code» the Association shall be deemed a person within the meaning of such title.". DIRECT STUDENT LOAN INTEREST RATE 20 u s e 1087dd. SEC. 539. Section 464(cXl)(D) of the Act is amended by striking out "October 1,1980," and inserting in lieu thereof "Juty 1,1981, or 5 per centum in the case of any loan made on or after October 1, 1981,". EFFECTIVE DATES 20 u s e 1078 SEC. 540. (a) Except as provided in subsection (b), the amendments note. made by this subtitle take effect on October 1,1981. (bXD The amendments made by section 532 (other than subsection (b)(4)) shall apply to loans for which the statement required by section 20 u s e 1078. 428(a)(2XA) of the Act is completed by the eligible institution on or after October 1,1981. (2) The amendments made by section 534(b) shall apply to loans made on or after October 1,1981. (3) The amendments made by section 536 shall take effect as provided therein. (4) The amendments made by section 538 shall take effect 30 days after the date of enactment of this Act. Consolidated Subtitle C—Refugee Education Consolidation Refugee Education Assistance Act. SHORT TITLE 8 u s e 1522 note. SEC. 541. This subtitle may be cited as the "Consolidated Refugee Education Assistance Act". REPEALER SEC. 542. The following provisions are hereby repealed: (1) Section 4A of the Act of September 30, 1950 (Public Law 20 u s e 239a. 81-874).
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 459 (2) Titles I and 11 of the Indochina Refugee Children Assistance Act of 1976. 20 u s e 1211b (3) Section 317 of the Adult Education Act. note. 20 u s e 1211b. AMENDMENTS 7 0 TITLE I OF THE REFUGEE EDUCATION ASSISTANCE ACT OF 1980 SEC. 543. (aXD Section 101 of the Refugee Education Assistance Act of 1980 is amended— 8 u s e 1522 note. (A) by striking out paragraph (1) and by redesignating para- graphs (2) and (3) as paragraphs (1) and (2), respectively; (B) by inserting after paragraph (2) (as so redesignated) the following new paragraph: "(3) The term 'eligible participant' means any alien who— "Eligible "(A) has been admitted into the United States as a refugee participant.' under section 207 of the Immigration and Nationality Act; 8 u s e 1157. "(B) has been paroled into the United States as a refugee by the Attorney General pursuant to section 212(d)(5) of such Act; 8 u s e 1182. "(C) is an applicant for asylum, or has been granted asylum, in the United States; or "(D) has fled from the alien's country of origin and has, pursuant to an Executive order of the President, been permitted to enter the United States and remain in the United States indefinitely for humanitarian reasons; but only during the 36-month beginning with the first month in which the alien entered the United States (in the case of an alien described in (A), (B), or (D)) or the month in which the alien applied for asylum (in the case of an alien described in subpara- graph (C))."; and (C) by striking out paragraph (4) and redesignating paragraph (5) as paragraph (4). (2) For purposes of the Refugee Education Assistance Act of 1980, 8 u s e 1522 note. an alien who entered the United States on or after November 1,1979, and is in the United States with the immigration status of a Cuban- Haitian entrant (status pending) shall be considered to be an eligible participant (within the meaning of section 101(3) of such Act), but only during the 36-month period beginning with the first month in which the alien entered the United States as such an entrant or otherwise first acquired such status. (b) Section 103(bXlXA) of the Refugee Education Assistance Act of 8 use 1522 note. 1980 is amended by striking out "aggregate of the amounts to which all States are entitled" and inserting in lieu thereof "amount author- ized to be appropriated". (c) Section 104 of the Refugee Education Assistance Act of 1980 is 8 use 1522 note. amended by striking out "1 percent of the amounts which that State educational agency is entitled to receive for that period under this Act" and inserting in lieu thereof "2 percent of the amount which that State educational agency receives for that period under this Act". (d) Title I of the Refugee Education Assistance Act of 1980 is amended by adding at the end thereof the following new section: CONSULTATION WITH OTHER AGENCIES "SEC. 106. To the extent that may be appropriate to facilitate the determination of the amount of any reductions under sections 201(b)(2), 301(b)(3), and 401(b)(2), the Secretary shall consult with the 8 use 1522 note.
95 STAT. 460 PUBLIC LAW 97-35—AUG. 13, 1981 heads of other agencies providing assistance to eligible participants in order to secure information concerning the disbursement of funds for educational puiposes under programs administered by them and provide, wherever feasible, for coordination among those programs 8 u s e 1522 note. and the programs under titles II through IV of this Act.". AMENDMENTS TO TITLE II OF THE REFUGEE EDUCATION ASSISTANCE ACT OF 1980 Grants to State SEC. 544. (a) Section 201 of the Refugee Education Assistance Act is educational agencies. amended— 8 u s e 1522 note. (1) by amending the first sentence of subsection (aXD to read as follows: "The Secretary shall, in accordance with the provisions of this title, make grants to State educational agencies for fiscal year 1981, and for each subsequent fiscal year, for the purposes of assisting local educational agencies of that State in providing basic education for eligible participants enrolled in elementary or secondary public schools. ; (2) in the second sentence of subsection (aXD, by striking out "Cuban and Haitian refugee children" and inserting in lieu thereof "eligible participants'*: (3) by amending subsection (bXD to read as follows: Grant "Oi>Xl) As soon as possible after the date of the enactment of the entitlement Consolidated Refugee Education Assistance Act, the Secretary shall formula. establish a formula (reflecting the availability of the full amount authorized for this title under section 20303)) by which to determine the amount of the grant which each State educational agency is entitled to receive under this title for any fiscal year. The formula established by the Secretary shall take into account the number of years that an eligible participant assisted under this title has resided within the United States and the relative costs, by grade level, of providing education for elementary and secondaiy school children. On the beisis of the formula the Secretaiy shall allocate among the State educational agencies, for each fiscal vear, the amounts availa- ble to carry out this title, subject to such reductions or adjustments as may be required under paragraph (2) or subsection (c). Funds shall be allocated among State educational agencies pursuant to the formula without regard to variations in educational costs among different geographical areas."; (4) by amending the first sentence of subsection 03X2) to read as follows: "The amount of the grant to which a State educational agency is otherwise entitled for any fiscal year, as determined under paragraph (1), shall be reduced by the amounts made available for such fiscal vear under any other Federal law (other than section 303 of the Elementary and Secondary Education Act 20 u s e 843. of 1965) for expenditure within the State for the same purposes as those for which funds are made available under this title, except that the reduction shall be made only to the extent that (A) such amounts are made available for such purposes specifi- cally because of the refugee, parolee, or asylee status of the individuals to be served by such funds, and (B) such amounts are made available to provide assistance to individuals eligible for services under this title."; and (5) in subsection (c), by striking out "Cuban and Haitian refugee children" and inserting in lieu thereof "eligible participants". 8 u s e 1522 note. 0>) Section 202(a) of the Refugee Education Assistance Act of 1980 is amended—
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 461 (1) by amending paragraph (2) to read as follows: "(2) provide assurances that such payments will be distributed among local educational agencies within that State in accord- ance with the formula established by the Secretary under section 201, subject to any reductions in payments for those local 8 use 1522 note. educational agencies identified under paragraph (3) to which funds described by section 201(bX2) are made available for the same purposes under other Federal laws;"; (2) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and (3) by inserting after paragraph (2) the following: "(3) specify the amount of funds described by section 201(b)(2) which are made available under other Federal laws for expendi- ture within the State for the same purposes as those for which funds are made available under this title and the local educa- tional agencies to which such funds are made available;", (c) Section 203 of the Refugee Education Assistance Act of 1980 is 8 use 1522 note. amended— (1) by amending the section heading to read as follows: "PAYMENTS AND AUTHORIZATIONS"; (2) by inserting "(a)" after the section designation; and (3) by adding at the end the following new subsection: "(b) For fiscal year 1981 and for each subsequent fiscal year, there is authorized to be appropriated, in the manner specified under section 102, to make payments under this title an amount equal to the 8 use 1522 note. product of— "(1) the total number of eligible participants enrolled in elementary or secondary public schools under the jurisdiction of local educational agencies within all the States (other than the jurisdictions to which section 103 is applicable) during the fiscal 8 use 1522 note. year for which the determination is made, multiplied by— "(2) $400.". AMENDMENTS TO TITLE III OF THE REFUGEE EDUCATION ASSISTANCE ACT OF 1980 SEC. 545. (a) The heading of title III of the Refugee Education Grants to State Assistance Act of 1980 is amended by striking out "REFUGEE". educational agencies. (b) Section 301 of the Refugee Education Assistance Act of 1980 is 8 u s e 1522 note. amended— (1) in subsection (a), by striking out "for each of the fiscal years 1981,1982, and 1983" and inserting in lieu thereof "for fiscal year 1981, and for each subsequent fiscal year,"; (2) by amending subsection (bXD to read as follows: "(b)(1) Except as provided in paragraph (3) of this subsection and in subsections (c) and (d) of this section, the amount of the grant to which a State educational agency is entitled under this title for any fiscal year shall be equal to the sum of— "(A) the amount equal to the product of (i) the number of eligible participants enrolled during the period for which the determination is made in elementary or secondary public schools under the jurisdiction of each local educational agency described under paragraph (2) within that State, or in any elementary or secondary nonpublic school within the district served by each
95 STAT. 462 PUBLIC LAW 97-35—AUG. 13, 1981 such local educational agency, who have been eligible partici- pants less than one year, multiplied by (ii) $700; "(B) the amount equal to the product of (i) the number of eligible participants enrolled during the period for which the determination is made in elementary or secondary public schools under the jurisdiction of each local educational agency described under paragraph (2) within that State, or in any elementary or secondary nonpublic school within the district served by each such local educational agency, who have been eligible partici- pants at least one year but not more than two years, multiplied by (ii) $500; and "(C) the product of (i) the number of eligible participants enrolled during the period for which the determination is made in elementary or secondary public schools under the jurisdiction of each local educational agency described under paragraph (2) within that State, or in any elementary or secondary nonpublic school within the district served by each such local educational agency, who have been eligible participants more than two years but not more than three years, multiplied by (ii) $300."; (3) in subsection (bX2), by striking out "Cuban and Haitian refugee children and Indocninese refugee children" and insert- ing in lieu thereof "eligible participants ; (4) in the first sentence of subsection (bX3), by striking out "Cuban and Haitian refugee children and Indochinese refugee children" and all that follows through the period and inserting in lieu thereof "eligible participants, except that no reduction under this paragraph shall be made for any funds made available to the State under section 303 of the Elementary and Secondary 20 use 843. Education Act of 1965."; (5) in subsection (bX5), by striking out "Cuban and Haitian refugee children who meet the requirements of section 101(1)" and inserting in lieu thereof "eligible participants who meet the requirements of section 101(4)"; and (6) in subsection (c), by striking out "Cuban and Haitian refugee children and Indochinese refugee children" and insert- ing in lieu thereof "eligible participants . 8 use 1522 note. (b) Section 302 of the Refugee Education Assistance Act of 1980 is amended by striking out "Cuban and Haitian refugee children and Indochinese refugee children" each place it appears and inserting in lieu thereof "eligible participants". 8 use 1522 note. (c) Section 303(a) of the Refugee Education Assistance Act of 1980 is amended— (1) in paragraph (3), by inserting before the semicolon ", subject to any reductions in payments for local educational agencies identified under paragraph (5) to take into account the funds 8 use 1522 note. described by section 301(bX3) that are made available for educa- tional, or education-related, services or activities for eligible participants enrolled in elementary or secondary public schools under the jurisdiction of such agencies or elementary or second- ary nonpublic schools within the districts served by such agencies; ; (2) by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively; (3) by inserting after paragraph (4) the following: "(5) specify (A) the amount of funds described by section 301(b)(3) that are made available under other Federal laws to agencies or other entities for educational, or education-related, services or activities within the State because of a significant
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 463 concentration of eligible participants, and (B) the local education- al agencies within whose districts are eligible participants pro- vided services from such funds who are enrolled in elementary or secondary schools under the jurisdiction of such agencies, or in elementary or secondary nonpublic schools served by such agen- cies;"; and (4) in paragraph (7), as so redesignated, by striking out "Cuban and Haitian refugee children and Indochinese refugee children" and inserting in lieu thereof "eligible participants". AMENDMENTS TO TITLE IV OF THE REFUGEE EDUCATION ASSISTANCE ACT OF 1980 SEC. 546. (a) Title IV of the Refugee Education Assistance Act of 8 use 1522 note. 1980 is amended by striking out "Cuban and Haitian refugee adults" and "Haitian and Cuban refugee adults" each place such terms appear and inserting in lieu thereof "eligible participants". (b)(1) Section 401(a) of the Refugee Education Assistance Act of 1980 is amended by striking out "for each of the fiscal years 1982 and 1983" and inserting in lieu thereof "for fiscal year 1982, and for each subsequent fiscal year". (2) The first sentence of section 401(b)(2) of the Refugee Education 8 use 1522 note. Assistance Act of 1980 is amended to read as follows: "The amount of the grant to which a State educational agency is otherwise entitled for any fiscal year, as determined under paragraph (1), shall be reduced by the amounts made available for such fiscal year under any other Federal law (other than section 303 of the Elementary and Secondary Education Act of 1965) for expenditure within the State for 20 use 843. the same purposes as those for which funds are made available under this title, except that the reduction shall be made only to the extent that (A) such amounts are made available for such purposes specifi- cally because of the refugee, parolee, or asylee status of the individ- uals to be served by such funds, and (B) such amounts are made available to provide assistance to individuals eligible for services under this title.". (c) Section 403(a) of the Refugee Education Assistance Act of 1980 is 8 use 1522 note. amended— (1) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and (2) by inserting after paragraph (1) the following: "(2) specify the amount of reduction required under section 401(b)(2);". EFFECTIVE DATE SEC. 547. This subtitle shall take effect on October 1,1981. 8 u s e 1522 note. Subtitle D—Elementary and Secondary Education Education eonsolidation Block Grant and Improvement Act of 1981. SEC. 551. This subtitle may be cited as the "Education Consolida- 20 u s e 3801 tion and Improvement Act of 1981". note.
95 STAT. 464 PUBLIC LAW 97-35—AUG. 13, 1981 CHAPTER 1—FINANCIAL ASSISTANCE TO MEET SPECIAL EDUCATIONAL NEEDS OF DISADVANTAGED CHILDREN DECLARATION OF POLICY 20 use 3801. SEC. 552. The Congress declares it to be the policy of the United States to continue to provide financial assistance to State and local educational agencies to meet the special needs of educationally deprived children, on the basis of entitlements calculated under title 20 use 2701. I of the Elementary and Secondary Education Act of 1965, but to do so in a manner which will eliminate burdensome, unnecessary, and unproductive paperwork and free the schools of unnecessary Federal supervision, direction, and control. Further, the Congress recognizes the special educational needs of children of low-income families, and that concentrations of such children in local educationed agencies adversely affect their ability to provide educational programs which will meet the needs of such children. The Congress also finds that Federal assistance for this purpose will be more effective if education officials, principals, teachers, and supporting i)ersonnel are fi^eed from overly prescriptive regulations and administrative burdens which are not necessary for fiscal accountability and make no contribution to the instructional program. DURATION OP A S S I S T A N C E 20 use 3802. SEC. 553. During the period beginning October 1,1982, and ending September 30, 1987, the Secretary shall, in accordance with the provisions of this subtitle, make payments to State educational agencies for grants made on the basis of enticements created under title I of the Elementary and Secondary Education Act of 1965 and calculated in accordance with provisions of that title in effect on September 30,1982. APPLICABILITY OP TITLE I PROVISIONS OP LAW 20 use 3803. SEC. 554. (a) PROGRAM ELIGIBILITY.—Except as otherwise provided in this subtitle, the Secretary shall make payments based up<m^ the amount of, and e^gibility for, grants as determined under the following provisions of title I of the Elem^itary and Secoodary Education Act in effect on September 30,1982: 20 use 2711. (1) Part A~"Programs Operated by Local Education Afirencies' * t (A) Subpart 1—"Basic Grants"; and 20 use 2721. (B) Subpart 2^"Special Grants". 20 use 2761. (2) Part B^"Programs Operated t^^ State Agwicies'V (A> Subpart 1—"ProgramsforMigratory Children"j 20 use 2771. (B) Subpart 2^"Programs for Handicapped ChHAren"; 20 use 2781. (Q Subpart 3—"Programs for Ne^ected and DeHnqaent OffldterfWd 20 use 2791. (0) Subpart 4—"General Provisions for State Operated Ptograms^. Ob) AmstaistAAtPm PROVISIONS.—The Secretary, in making ^le payments and determinations specified m subsection (a), [dftau con- untie to usetihiefollowing provisions of title I of the Elementary and Secondary Education Act as in effect on September 30,1982: 20 use 2841. (1) Part E—"Payments": (A) Section 191—"Payment Metiwds";
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 465 (B) Section 192—"Amount of Payments to Local Educa- 20 use 2842. tional Agencies"; (C) Section 193—"Adjustments Where Necessitated by 20 use 2843. Appropriations"; and (D) Section 194—"Payments for State Administration", 20 use 2844. subject to subsection (d) of this section. (2) Part F—"General Provisions": 20 use 2851. (A) Section 197—"Limitation on Grants to Puerto Rico"; 20 use 2853. and (B) Section 198—"Definitions" and conforming amend- 20 use 2854. ments to other Acts, except that only those definitions applicable to this subtitle shall be used. (c) APPUCABILITY RULE.—The provisions of title I of the Elementary and Secondary Education Act of 1965 which are not specifically made 20 use 2701. applicable by this chapter shall not be applicable to programs authorized under this chapter. (d) AMENDMENT.—Section 194(aXl) of the Elementary and Second- 20 use 2844. ary Education Act of 1965 is amended by striking out "1.5 per centmn" and inserting in lieu thereof "1 per centum". AUTHORIZED PROGRAMS SEC. 555. (a) GENERAL.—Each State and local educational agency 20 use 3804. shall use the payments imder this chapter for programs and projects (including the acquisition of equipment and, where necessary, the construction of school facilities) which are designed to meet the special educational needs of educationally deprivedchildren. (b) PROGRAM DESIGN.—State agency programs shall be designed to serve those categories of children counted for eligibility for grants under section 554(aX2) in accordance with the requirements of this chapter. (c) PROGRAM DESCRIPTION.—^A local education agency may use funds received under this chapter only for programs and projects which are designed to meet the special educational needs of educa- tionally deprived children identified in accordance with section 556(bX2), Eind which are included in an application for assistance approved by the State educational agency. Such programs and projects may include the acquisition of equipment and instructional materials, employment of special instructional and counseling and guidance personnel, employment and training of teacher aides, payments to teachers of amounts in excess of regular salary sched- ules as a bonus for service in schools serving project areas, the training of teachers, the construction, where necessary, of school facilities, other expenditures authorized under title I of the Elemen- tary and Secondary Education Act as in effect September 30,1982, and planning for such programs and projects. (d) RECORDS AND INFORMATION.—Each State educational agency shall keep such records and provide such information to the Secre- tary as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the Secretary under this chapter). APPROVAL OP APPLICATIONS SEC. 556. (a) APPLICATION BY LOCAL EDUCATIONAL AGENCY.—A local 20 use 3805. educational agency may receive a grant under this chapter for any fiscal year if it has on file with me State educational agency an application wMch describes the programs and projects to be con- ducted with such assistance for a period of not more than three years,
95 STAT. 466 PUBLIC LAW 97-35—AUG. 13, 1981 and such application has been approved by the State educational agency. 0)) APPLICATION ASSURANCES.—The application described in subsec- tion (a) shall be approved if it provides assurances satisfactory to the State educational agency that the local educational agency Will keep such records and provide such information to the State educationsu agency as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the State agency under this chapter), and that the programs and projects described— dXA) are conducted in attendance areas of such agency having the highest concentrations of low-income children; (B) are located in all attendance areas of an agency which has a uniformly high concentration of such children; or (C) are designed to utilize part of the available funds for services which promise to provide significant help for all such children served by such agency; (2) are based upon an annual assessment of educational needs which identifies educationally deprived children in all ehgible attendance areas, permits selection of those children who have the greatest need for special assistance, and determines the needs of participating children with sufficient specificity to ensure concentration on those needs; (8) are of sufficient size, scope, and quality to give reasonable promise of substantial progress toward meeting the s ^ i a l educational needs of the children being served suid are designed and implemented in consultation with parents and teachers of such children; (4) will be evaluated in terms of their effectiveness in achieving the goals set for them, and that such evaluations shall include objective measurements of educational achievement in basic skills and a determination of whether improved performance is sustained over a period of more than one year; and (5) make provision for services to educationally deprived chil- dren attending private elementary and secondary schools in accordance with section 557. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS 20 use 3806. SEC 557. (a) GENERAL REQUIREMENTS.—To the extent consistent with the number of educationally deprived children in the school district of the local educational agency who are enrolled in private elementary and secondary schools, such agency shall make provi- sions for including special educational services and arrangements (such as dual enrollment, educational radio and television, and mobile educational services and equipment) in which such children can participate and which meet the requirements of sections 555(c), 556(b) (2), (3), and (4), and 558(b). Expenditures for educational services and arrangements pursuant to this section for educationally deprived children in private schools shall be equal (taking into account the number of children to be served and the special educa- tional needs of such children) to expenditures for children enrolled in the public schools of the local educational agency. (b) BYPASS PROVISION.—(1) If a local educational agency is prohibit- ed by law from providing for the participation in specisd programs for educationally deprived children enrolled in private elementary and secondary schools as required by subsection (a), the Secretary shall waive such requirements, and shall arrange for the provision of
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 467 services to such children through arrangements which shall be subject to the requirements of subsection (a). (2) If the Secretary determines that a local educational agency has substantially failed to provide for the participation on an equitable basis of educationally deprived children enrolled in private elemen- tary and secondary schools as required by subsection (a), he shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of subsec- tion (a), upon which determination the provisions of subsection (a) shall be waived. (3)(A) When the Secretary arranges for services pursuant to this subsection, he shall, after consultation with the appropriate public and private school officials, pay to the provider the cost of such services, including the administrative cost of arranging for such services, from the appropriate allocation or allocations under this chapter. (B) Pending final resolution of any investigation or complaint that could result in a determination under this subsection, the Secretary may withhold from the allocation of the affected State or local educational agency the amount he estimates would be necessary to pay the cost of such services. (C) Any determination by the Secretary under this section shall continue in effect until the Secretary determines that there will no longer be any failure or inability on the part of the local educational agency to meet the requirements of subsection (a). (4)(A) The Secretary shall not take any final action under this subsection until the State educational agency and local educational agency affected by such action have had an opportunity, for at least forty-five days after receiving written notice thereof, to submit written objections and to appear before the Secretary or his designee to show cause why such action should not be taken. (B) If a State or local educational agency is dissatisfied with the Secretary's final action after a proceeding under subparagraph (A) of this paragraph, it may within sixty days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary. The Secretary thereupon shall file in the court the record of the proceedings on which he based his action, as provided in section 2112 of title 28, United States Code. (C) The findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Secretary to take further evidence, and the Secretary may thereupon make new or modified findings of fact and may modify his previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence. (D) Upon the filing of a petition under subparagraph (B), the court shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code. (c) Any bypass determination by the Secretary under title I of the Elementary and Secondary Education Act of 1965 prior to the 20 use 2701. effective date of this chapter shall remain in effect to the extent consistent with the purposes of this chapter.
95 STAT. 468 PUBLIC LAW 97-35—AUG. 13, 1981 GENERAL PROVISIONS 20 use 3807. SEC. 558. (a) MAINTENANCE OP EPFORT.—(1) Except as provided in paragraph (2), a local educational agency may receive funds under this chapter for any fiscal year only if the State educationsJ agency finds that either the combined fiscal effort per student or the aggregate expenditures of that agency and the State with respect to the provision of free public education by that agency for the preced- ing fiscal year was not less than 90 per centum of such combined fiscal effort or aggregate expenditures for the second preceding fiscal year. (2) The State educational agency shall reduce the amount of the allocation of funds under this chapter in any fiscal year in the exact proportion to which a local educational agency fails to meet the requirement of paragraph (1) by falling below 90 per centum of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to such local agency), and no such lesser amount shall be used for computing the enort required under paragraph (1) for subsequent years. Waiver of (3) The State educational agencry may waive, for one fiscal year requirements. only, the requirements of this subsection if the State educational agency determines that such a waiver would be equitable due to exceptional or uncontrollable circumstances such as a natural disas- ter or a precipitous and unforeseen decline in the financial resources of the local educational agency. (b) FEDERAL FUNDS TO SUPPLEMENT, NOT SUPPLANT REGULAR NON- FEDERAL FUNDS.—A local educational agency may use funds received under this chapter only so as to supplement and, to the extent practical, increase the level of funds that would, in the absence of such Federal funds, be made available from non-Federal sources for the education of pupils participating in programs and projects assisted under this chapter, and in no case may such funds be so used as to supplant such funds from such non-Federal sources. In order to demonstrate compliance with this subsection a local education agen- cy shall not be required to provide services under this chapter outside the regular classroom or school program. (c) CoMPARABiuTY OP SERVICES.—(1) A local oducational agency may receive funds under this chapter only if State and local fun<b will be used in the district of such agency to provide services in project areeis which, taken as a whole, are at least comparable to services being provided in areas in such district whicn are not receiving funds under this chapter. Where all school attendance areeis in the district of the agency are designated as project areas, the agency may receive such funds only if State and local funds are used to provide services which, taken as a whole, are substantially compa- rable in each project area. (2) A local educational agency shall be deemed to have met the requirements of pargigraph (1) if it has filed with the State educa- tional agency a written assurance that it has established— (A) a districtwide salsiry schedule; (B) a policy to ensure equivalence among schools in teachers, administrators, and auxiliary personnel; and (C) a policy to ensure equivalence among schools in the provision of curriculum materials and instructional supplies. Unpredictable changes in student enrollment or personnel assign- ments which occur after the beginning of a school year shall not be included as a factor in determining comparability of services.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 469 (d) EXCLUSION OP SPECIAL STATE AND LOCAL PROGRAM FUNDS.—For the purposes of determining compliance with the requirements of subsections (b) and (c), a locm educational agency may exclude State and local funds expended for carrying out special programs to meet the educational needs of educationmly deprived children, if such programs are consistent with the purposes of this chapter. (e) ALLOCATION OF FUNDS IN CERTAIN STATES.—In any State in which a large number of local educational ^encies overlap county boundaries, the State educational agency is authorized to make allocations of basic grants and special incentive grants directly to local educational agencies without regard to counties, if such alloca- tions were made during fiscal year 1982, except that (1) precisely the same factors are used to determine the amount of such grants to counties, and (2) a local educational agency dissatisfied with such determination is afforded an opportunity for a hearing on the matter by the State educational agency. CHAPTER 2—CONSOLIDATION OF FEDERAL PROGRAMS FOR ELEMENTARY AND SECONDARY EDUCATION STATEMENT OF PURPOSE SEC. 561. (a) It is the purpose of this chapter to consolidate the 20 use 38ii. program authorizations contained in— (1) titles II, m , IV, V, VI, Vm, and IX (except part C) of the Elementary and Secondary Education Act of 1965; 20 use 2881 (2) the Alcohol and Drug Abuse Education Act; 2941,3081,3i4i, (3) part A and section 532 of title V of the Higher Education 334}' '^'^^' ^^^^' Act of 1965; 21 use 1001 (4) the Follow Through Act (on a phased basis); note^ (5) section 3(a)(1) of the National Science Foundation Act of 20 use 1101, 1950 relating to precoUege science teacher training; and Post% 568 (6) the Career Education Incentive Act; 42 u ^ 1862. into a single authorization of grants to States for the same purposes 20 use 2601 set forth in the provisions of law specified in this sentence, but to be note. used in accordance with the educational needs and priorities of State and local educational agencies as determined by such agencies. It is the further purpose and intent of Congress to financially assist State and local educational agencies to improve elementary and secondary education (including preschool education) for children attendiag both public and private schools, and to do so in a manner designed to greatly reduce the enormous administrative and paperwork burden imposed on schools at the expense of their ability to educate children, (b) The basic responsibility for the administration of funds made available under this chapter is in the State educational agencies, but it is the intent of Congress that this responsibility be carried out with a minimum of paperwork and that the responsibility for the design and implementation of programs assisted under the chapter shall be mainly that of local educational agencies, school superintendents and principals, and classroom teachers and supporting personnel, because they have the most direct contact with students and are most directly responsible to parents. AUTHORIZATION OF APPROPRIATIONS; DURATION OF ASSISTANCE SEC. 562. (a) There are authorized to be appropriated such sums as 20 use 3812. may be necessary for fiscal year 1982 and each of the five succeeding fiscal years to carry out the provisions of this chapter.
95 STAT. 470 PUBLIC LAW 97-35—AUG. 13, 1981 (b) During the period beginning July 1,1982, and ending September 30,1987, the Secretary shall, in accordance with the provisions of this subtitle, make payments to State educational agencies for the pur- poses of this chapter. (c) Funds available under previously authorized programs shall be available for the purpose of such pa:pients in accordance with section ^nte, p. 445. 514(bX2) of the Omnibus Education Reconciliation Act of 1981. ALLOTMENTS TO STATES 20 use 3813. SEC. 563. (a) From the sxmis appropriated to carry out this chapter in any fiscal year, the Secretary shall reserve not to exceed 1 per centum for payments to Guam, American Samoa, the Virgin Islands, the Trust Territory of the Pacific Islands, and the Northern Mariana Islands, to be allotted in accordance with their respective needs. The Secretary shall reserve an additional amount, not to exceed 6 per centum of the sums appropriated, to carry out the purposes of section 583. From the remednder of such sums the Secretary shall allot to each State an £unount which bears the same ratio to the amount of such remainder as the school-age population of the State bears to the school-age population of all States, except that no State shall receive less than an amount equal to 0.5 per centum of such remainder, (b) For the purposes of this section: "School-age (1) The term "school-age population" means the population population.' 3gg(jflygthrough seventeen. "States." (2) The term "States" includes the fifty States, the District of Columbia, and Puerto Rico. STATE APPUCATIONS 20 use 3814. SEC. 564. (a) Any State which desires to receive grants under this chapter shall file an application with the Secretary which— (1) designates the State educational agency as the State agency responsible for the administration and supervision of programs assisted under this chapter; (2) provides for a process of active and continuing consultation with the State educational agency of an advisory committee, appointed by the Governor and determined by the Governor to be broadly representative of the educational interests and the gener^ public in the State, including persons representative of— (A) public and private elementary and secondary school- children; (B) classroom teachers; (C) parents of elementary and secondary schoolchildren; (D) local boards of education; (E) local and regional school administrators (including principals and superintendents); , (F) institutions of higher education; and (G) the State legislature; to advise the State educational agency on the allocation among authorized functions of funds (not to exceed 20 per centum of the amount of the State's £dlotment) reserved for State use under section 565(a), on the formula for the allocation of funds to local educational agencies, and on the planning, development, sup- port, implementation, and evaluation of State programs assisted under this chapter; (3) sets forth the planned allocation of funds reserved for State Post, pp. 472,473, use Under section 565(a) among subchapters A, B, and C of this 475.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 471 chapter and among the authorized programs and projects which are to be implemented, and the allocation of such mnds required to implement section 586, including administrative costs of carrying out the responsibilities of the State educational agency under this chapter; (4) provides for timel^r public notice and public dissemination of the information provided pursuant to paragraphs (2) and (3); (5) beginning with fiscal year 1984, provides for an annual evaluation of the efiTectiveness of programs assisted under this chapter, which shall include comments of the advisory commit- tee, and shall be made available to the public; and (6) provides that the State educational agency will keep such Recordkeeping. records and provide such information to the Secretary as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the Secretary under this chapter); and (7) contains assurances that there is compUance with the specific requirements of this chapter. (b) An application filed by the State under subsection (a) shall be for a period not to exceed three fbscal years, and may be amended annually as may be necessary to reflect changes without filing a new application. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES SEC. 565. (a) From the sum made available each year under section 20 use 3815. 563, the State educational agency shall distribute not less than 80 per centum to local educational agencies within such State according to the relative enrollments in public and nonpublic schools within the school districts of such agencies, ai^usted, in accordance with criteria approved by the Secretary, to provide higher per pupil allocations to local educational agencies which have the greatest numbers or percentages of children whose education imposes a higher than average cost per child, such as— (1) children from low-income families, (2) children living in economically depressed urbeui and rural areas, and (3) children living in sparsely populated areas. (b) The Secretary shall approve criteria suggested by the State educational agency for adjusting allocations under subsection (a) if such criteria are reasonably calculated to produce an equitable distribution of funds with reference to the factors set forth in subsection (a). (c) From the funds paid to it pursuant to sections 563 and 564 during each fiscal year,-the State educational agency shall distribute to each local educational agency which has submitted an application as required in section 566 the amount of its allocation as determined under subsection (a). LOCAL APPLICATIONS SEC. 566. (a) A local educational agency may receive its allocation of 20 use 3816. funds under this chapter for any year in which it has on file with the State educational agency an application which— (1) sets forth the planned allocation of funds among sub- chapters A, B, and C of this chapter and for the programs i'ost, pp. 472,473, authorized by such subchapters which it intends to support, ^'^^• including the allocation of such funds required to implement section 586; -194 0—82 32:QL3
95 STAT. 472 PUBLIC LAW 97-35—AUG. 13, 1981 (2) provides assurances of compliance with provisions of this chapter relating to such programs, including the participation of children enrolled in private, nonprofit schools in accordance with section 586; Recordkeeping. (3) agrees to keep such records, and provide such information to the State educational agency as reasonably may be required for fiscal audit and program evaluation, consistent with the responsibilities of the State agency under this chapter; and (4) in the allocation of funds for programs authorized by this chapter, and in the design, planning, and implementation of such programs, provides for systematic consultation with parents of children attending elementary and secondary schools in the area served by the local agency, with teachers and administrative personnel in such schools, and with other groups as may be deemed appropriate by the local educational agency. (b) An application filed by a local educational agency under subsection (a) shall be for a period not to exceed three fiscal years, may provide for the allocation of funds among programs and pur- poses authorized by this chapter for a period of three years, and may be amended annually as may be necessary to reflect changes without filing a new application. (c) Each local educational agency shall have complete discretion, subject only to the provisions of this chapter, in determining how funds the agency receives under this section shall be divided among the purposes oi this chapter in accordance with the application submitted under this section. Subchapter A—Basic Skills Development USE OF FUNDS 20 use 3821. SEC. 571. Funds allocated for use under this subchapter shall be used by State and local educational agencies to develop and imple- ment a comprehensive and coordinated program designed to improve elementary and secondary school instruction in the basic skills of reading, mathematics, and written and oral communication, as formerly authorized by title II of the Elementary and Secondary 20 use 2881. Education Act of 1965, relating to basic skills improvement, including the special mathematics program as formerly authorized by section 20 use 2912. 232 of such title. STATE LEADERSHIP AND SUPPORT SERVICES Grants and SEC. 572. (a) In order to achieve the purposes of this subchapter, contracts. State educational agencies may use funds reserved for State pro- 20 u s e 3822. grams to make grants to and enter into contracts with local educa- tional agencies, institutions of higher education, and other public and private agencies, organizations, and institutions— (1) to carry out planning, research and development, demon- stration projects, training of leadership personnel, short term and regular session teacher training institutes; and (2) for the development of instructional materials, the dissemi- nation of information, and technical assistance to local educa- tional agencies. Each State educational agency may also use such funds for technical assistance and training for State boards of education. (b) State educational agencies may support activities designed to enlist the assistance of parents and volunteers working with schools
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 473 to imi)rove the performance of children in the basic skills. Such activities may include— (1) the development and dissemination of materials that par- ents may use in the home to improve their children's perform- ance in those skills; and (2) voluntary training activities for parents to encourage and assist them to help their children in developing basic skills; except that such activities conducted in local areas shall be conducted with the approval of and in conjunction with programs of local educational agencies. SCHOOL LEVEL PROGRAMS SEC. 573. (a) In planning for the utilization of funds it allocates for 20 use 3823. this chapter (from its allotment under section 565) a local educational agency shall provide for the participation of children enrolled in private elementary and secondary schools (and of teachers in such schools) in accordance with section 586. Such plans shall be developed in conjunction with and involve continuing consultation with teach- ers and principals in such district. Such planning shall include a systematic strategy for improving basic skills instruction for all children which provides for planning and implementation at the school building level, involving teachers, administrators, and (to the extent practicable) parents, and utilizing all available resources in a comprehensive program. The programs shall include— (1) diagnostic assessment to identify the needs of all children in the school; (2) the establishment of learning goals and objectives for children and for the school; (3) to the extent practicable, pre-service and in-service training and development programs for teachers, administrators, teacher aides and other support personnel, designed to improve instruc- tion in the basic skills; (4) activities designed to enlist the support and participation of parents to aid in the instruction of their children; and (5) procedures for testing students and for evaluation of the effectiveness of programs for maintaining a continuity of effort for individual children. (b) The programs described in subsection (a) may include such areawide or districtwide activities as learning centers accessible to students and parents, demonstration and training programs for parents, and other activities designed to promote more effective instruction in the basic skills. Subchapter B—Educational Improvement and Support Services STATEMENT OF PURPOSE SEC. 576. It is the purpose of this subchapter to permit State and 20 use 3831. local educational agencies to use Federal funds (directly, and through grants to or contracts with educational agencies, local educational agencies, institutions of higher education, and other public and private agencies, organizations, and institutions) to carry out selected activities from among the full range of programs and projects formerly authorized under title IV, relating to educational improve- 20 USC 3081. ment, resources, and support, title V, relating to State leadership, 20 use 3141. title VI, relating to emergency school aid, of the Elementary and 20 use 3i9i. Secondary Education Act of 1965, section 3(a)(1) of the National
95 STAT. 474 PUBLIC LAW 97-35—AUG. 13, 1981 42 use 1862. Science Foundation Act of 1950, relating to precoUege science teacher training, and part A and section 532 of title V of the Higher 20 use 1101, Education Act of 1965, relating to the Teacher Corps and teacher ^^^^^ centers, in accordance with the planned allocation of funds set forth in the applications under sections 564 and 566, in conformity with the other requirements of this chapter. AUTHORIZED ACTIVITIES 20 use 3832. SEC. 577. Programs and projects authorized under this subchapter include— (1) the acquisition and utilization— (A) of school library resources, textbooks, and other printed and published instructional materials for the use of children and teachers in public and private elementary and secondary schools which shall be used for instructional purposes only, and (B) of instructional equipment and materials suitable for use in providing education in academic subjects for use by children and teachers in elementary and secondary schools which shall be used for instructional purposes only, which take into account the needs of children in both public and private schools based upon periodic consultation with teachers, librarians, media specialists, and private school officials; (2) the development of programs designed to improve local educational practices in elementary and secondary schools, and particularly activities desired to address educational problems such as the education of cmldren with special needs (education- ally deprived children, gifted and talented children, including children in private schools); (3) programs designed to assist local educational agencies, upon their request, to more effectively address educational problems caused by the isolation or concentration of minority group children m certain schools if such assistance is not conditioned upon any requirement that a local educational agency which assigns students to schools on the basis of geogpraphic attendance areas adopt any other method of student assignment, and that such assistance is not made available for the transportation of students or teachers or for the acquisition of equipment for such transportation; (4) comprehensive guidance, counseling, and testing programs in elementary and secondary schools and State and local support services necessary for the effective implementation and evmua- tion of such programs (including those designed to help prepare students for employment); (5) programs and projects to improve the planning, manaj^e- ment and implementation of educational programs, including fiscal management, by both State and local educational agencies, and the cooperation of such agencies with other public agencies; (6) programs and projects to assist in teacher training and in- service staff development, particularly to better prepare both new and in-service ^rsonnel to deal with contempNorary teaching and learning requirements and to provide assistance in the teaching and learning of educationally deprived students; and (7) programs and projects to assist local educational agencies to meet the needs of children in schools imdergoing desegregation and to assist such agencies to develop and implement plans for desegregation in the schools of such agencies.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 475 Subchapter C—Special Projects STATEMENT OF PURPOSE SEC. 581. It is the purpose of this subchapter to permit State and 20 use 3841. local educational agencies to use Federal funds (directly and through grants to or contracts with educational agencies, local educational agencies, institutions of higher education, and other public and private g^encies, organizations, and institutions) to carry out selected activities from among the full range of programs and projects formerly authorized under title III, relating to special projects, title VIII, relating to community schools, and title IX (except part C), relating to gifted and talented children, educational proficiency standards, safe schools program, and ethnic heritage program, of the Elementary and Secondary Education Act of 1965, the Career Educa- 20 use 2941, tion Incentive Act, and part B of title V of the Economic Opportunity |o^us? 2601 Act of 1964, relating to Follow Through programs, in accordance with ^o^g the planned allocation of funds set forth in the applications under 42 use 2929. sections 564 and 566, in conformity with the other requirements of this chapter. AUTHORIZED ACTIVITIES SEC. 582. Programs and projects authorized under this subchapter 20 use 3842. include— (1) special projects (as may be determined to be desirable by the State or local educational agencies) in such areas as— (A) preparation of students to use metric weights and measurements when such use is needed; (B) emphasis on the arts as an integral part of the curriculum; (C)(i) in-school partnership programs in which the parents of school-age children participate to enhance the education and personal development of the children, previously au- thorized by part B of the Headstart-FoUow Through Act; 42 use 2929. (ii) preschool partnership programs in which the schools work with parents of preschool children in cooperation with programs funded under the Headstart-FoUow Through Act; 42 use 2921. (D) consumer education; (E) preparation for employment, the relationship between basic academic skill development and work experience, and coordination with youth employment programs carried out under the Comprehensive Employment and Training Act; (F) career education previously authorized by the Career Education Incentive Act; (G) environmental education, health education, education about legal institutions and the American system of law and its underlying principles, and studies on population and the effects of population changes; (H) academic and vocational education of juvenile delin- quents, youth offenders, and adult criminal offenders; and (I) programs to introduce disadvantaged secondary school students to the possibilities of careers in the biomedical and medical sciences, and to encourage, motivate, and assist them in the pursuit of such careers; (2) the use of public education facilities as community centers operated by a local education agency in conjunction with other local governmental agencies and community organizations and groups to provide educational, recreational, health care, cul-
95 STAT. 476 PUBLIC LAW 97-35—AUG. 13, 1981 tural, and other related community and human services for the community served in accordance with the needs, interests, and concerns of the community and the agreement and conditions of the governing board of the local educational agency; and (3) additional programs, including— (A) special programs to identify, encourage, and meet the special educational needs of children who give evidence of high performance capability in areas such as intellectual, creative, artistic, leadership capacity, or specific academic fields, and who require services or activities not ordi- narily provided by the school in order to fully develop such capabilities; (B) establishment of educational proficienQr standards for reading, writing, mathematics, or other subjects, the admin- istration of examinations to measure the proficiency of students, and implementation of programs (coordinated with Ante, p. 472. those Under subchapter A of this chapter) designed to assist students in achieving levels of proficiency compatible with established standards; (C) programs designed to promote safety in the schools and to reduce the incidence of crime and vanaalism in the school environment; (D) planning, developing, and implementing ethnic heri- tage studies programs to provide all persons with an oi>portunity to learn about and appreciate the unique con- tributions to the American national heritage made by the various ethnic groups, and to enable students better to understand their own cultural heritage as well as the cultural heritage of others; and (E) programs involving training and advisory services 42 use 2000c. under title IV of the Civil Rights Act of 1964. Subchapter D—Secretary's Discretionary Funds DISCRETIONARY PROGRAM AUTHORIZED 20 use 3851. SEC. 583. (a) From the sums reserved by the Secretary pursuant to the second sentence of section 563(a) the Secretary is authorized to cany out directly or throujgh grants to or contracts with State and local educational agencies, institutions of higher education, and other public and private agencies, organizations, and institutions, pro- grams and projects which— (1) provide a national source for gathering and disseminating information on the efTectiveness of programs designed to meet the special educational needs of educationally deprived children, and others served by this subtitle, and for assessing the needs of such individuals, including programs and projects formerly au- thorized by section 376 of the Elementary and Secondary Educa- 20 use 3041. tion Act of 1965 and programs and projects formerly funded under the "National Dimision Network" program; (2) carry out research and demonstrations related to the purposes of this subtitle; (3) are designed to improve the training of teachers and other instructional personnel needed to carry out the purposes of this subtitle; or (4) are designed to assist State and local educational agencies in the implementation of programs under this subtitle.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 477 (b) From the funds reserved for the purposes of this section, the Secretary shall first fund— (1) the Inexpensive Book Distribution Program (as carried out through "Reading is Fundamental") as formerly authorized by part C of title II of the Elementary and Secondary Education Act of 1965, 20 u s e 2911. (2) the programs of national significance in the "Arts in Education Program as formerly authorized by part C of title III ofsuchAct, and (3) programs in alcohol and drug abuse education as formerly authorized by the Alcohol and Drug Abuse Education Act, 21 u s e 1001 at least in amounts necessary to sustain the activities described in note. this sentence at the level of operations during fiscal year 1981, and then utilize the remainder of such funds for the other authorized activities described in subsection (a). Subchapter E—General Provisions MAINTENANCE OF EFFORT; FEDERAL FUNDS SUPPLEMENTARY SEC. 585. (a)(1) Except as provided in paragraph (2), a State is 20 use 3861. entitled to receive its full allocation of funds under this chapter for any fiscal year if the Secretary finds that either the combined fiscal effort per student or the aggregate expenditures within the State with respect to the provision of free public education for the preced- ing fiscal year was not less than 90 per centum of such combined fiscal effort or aggregate expenditures for the second preceding fiscal year. (2) The Secretary shall reduce the amount of the allocation of funds under this chapter in any fiscal year in the exact proportion to which the State fails to meet the requirements of paragraph (1) by falling below 90 per centum of both the fiscal effort per student and aggregate expenditures (using the measure most favorable to the State), and no such lesser amount shall be used for computing the effort required under paragraph (1) for subsequent years. (3) The Secretary may waive, for one fiscal year only, the require- Waiver of ments of this subsection if he determines that such a waiver would be requirements. equitable due to exceptional or uncontrollable circumstances such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the State. (b) A State or local educational agency may use and allocate funds received under this chapter only so as to supplement and, to the extent practical, increase the level of funds that would, in the absence of Federal funds made available under this chapter, be made availa- ble from non-Federal sources, and in no case may such funds be used so as to supplant funds from non-Federal sources. (c) The Secretary is specifically authorized to issue regulations to Regulations. enforce the provisions of this section. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS SEC. 586. (a)(1) To the extent consistent with the number of children 20 use 3862. in the school district of a local educational agency which is eligible to receive funds under this chapter or which serves the area in which a program or project assisted under this chapter is located who are enrolled in private nonprofit elementary and secondary schools, or with respect to instructional or personnel training programs funded by the State educational agency from funds reserved for State use
95 STAT. 478 PUBLIC LAW 97-35—AUG. 13, 1981 under section 565, such agency after consultation with appropriate private school officials, shall provide for the benefit of such children in such schools secular, neutral, and nonideological services, materi- als, and equipment including the participation of the teachers of such children (and other educational personnel serving such children) in training programs, and the repair, minor remodeling, or construction of public facilities as may be necessary for their provision (consistent with subsection (c) of this section), or, if such service, materials, and equipment are not feasible or necessary in one or more such private schools as determined by the local educational agency after consulta- tion with the appropriate private school officials, shall provide such other arrangements as will assure equitable participation of such children in the purposes and benefits of this chapter. Contract (2) If no program or project is carried out under subsection (a)(1) of authority. t;his section in the school district of a local educational agency, the State educational agency shall make arrangements, such as through contracts with nonprofit agencies or organizations, under which children in private schools in that district are provided with services and materials to the extent that would have occurred if the local educational agency had received funds under this chapter. (3) The requirements of this section relating to the participation of children, teachers, and other personnel serving such children shall apply to programs and projects carried out under this chapter by a State or local educational agency, whether directly or through grants to or contracts with other public or private agencies, institutions, or organizations. (b) Expenditures for programs pursuant to subsection (a) shall be equal (consistent with the number of children to be served) to expenditures for programs under this chapter for children enrolled in the public schools of the local educational agency, taking into account the needs of the individual children and other factors which relate to such expenditures, and when funds available to a local educational agency under this chapter are used to concentrate programs or projects on a particular group, attendance area, or grade or age level, children enrolled in private schools who are included within the group, attendance area, or grade or age level selected for such concentration shall, after consultation with the appropriate private school officials, be assured equitable participation in the purposes and benefits of such programs or projects. (c)(1) The control of funds provided under this chapter and title to materials, equipment, and property repaired, remodeled, or con- structed therewith shall be in a public agency for the uses and purposes provided in this chapter, and a public agency shall adminis- ter such funds and property. (2) The provision of services pursuant to this section shall be provided by employees of a public agency or through contract by such public agency with a person, an association, agency, or corporation who or which, in the provision of such services, is independent of such private school and of any religious organizations, and such employ- ment or contract shall be under the control and supervision of such public agency, and the funds provided under this chapter shall not be commingled with State or local funds. Waiver of (d) If by reason of any provision of law a State or local educational requirements. agency is prohibited from providing for the participation in programs of children enrolled in private elementary and secondary schools, as required by this section, the Secretary shall waive such requirements and shall arrange for the provision of services to such children
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 479 through arrangements which shall be subject to the requirements of this section. (eXD If the Secretary determines that a State or a local educational Waiver of agency has substantially failed or is unwilling to provide for the requirements. participation on an equitable basis of children enrolled in private elementary and secondary schools as required by this section, he may waive such requiremente and shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of thte section. (2) Pending final resolution of any investigation or complaint that could result in a determination under this subsection or subsection (d), the Secretary may withhold from the allocation of the affected State or local educational agency the amount he estimated would be necessary to pay the cost of those services. (f) Any determination by the Secretary under this section shall continue in effect until the Secretary determines that there will no longer be any failure or inability on the part of the State or local educational agency to meet the requirements of subsections (a) and (b). (g) When the Secretary arranges for services pursuant to this section, he shall, after consultation with the appropriate public and private school officials, pay the cost of such services, including the administrative costs of arranging for those services, from the appro- priate allotment of the State under this chapter. (h)(1) The Secretary shall not take any final action under this section until the State educational agency and the local educational agency affected by such action have had an opportunity, for at least forty-five days after receiving written notice thereof, to submit written objections and to appear before the Secretary or his designee to show cause why that action should not be taken. (2) If a State or local educational agency is dissatisfied with the Secretary's final action after a proceeding under paragraph (1) of this subsection, it may within sixty days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary. The Secretary thereupon shall file in the court the record of the proceedings on which he based this action, as provided in section 2112 of title 28, United States Code. (3) The findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Secretary to take further evidence and the Secretary may thereupon make new or modified findings of fact and may modify his previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence. (4) Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code. (i) Any bypass determination by the Secretary under titles II through VI and VIII and IX of the Elementary and Secondary Education Act of 1965 prior to the effective date of this chapter shall 20 USC 2881, remain in effect to the extent consistent with the purposes of this ^^^^' ^^81, 33ii. chapter.
95 STAT. 480 PUBLIC LAW 97-35—AUG. 13, 1981 REPEALS 20 u s e 3863. SEC. 587. (a) Effective October 1,1982, the provisions of— (1) titles II, III, IV, V, VI, VIII, and IX (except part C) of the 20 u s e 2881, Elementary and Secondary Education Act of 1965; 2941, 3081, 3141, (2) part A and section 532 of title V of the Higher Education 3191, 3281, 3311, 3341. Act of 1965; 20 u s e 1101, (3) the Alcohol and Drug Abuse Education Act; and 1119a. (4) the Career Education Incentive Act; 21 u s e 1001 are repealed. note. 20 u s e 2601 (b) Effective October 1,1984, subchapter C of chapter 8 of subtitle A note. of title VI of this Act, relating to Follow-Through programs is Post, p. 508. repealed. CHAPTER 3—GENERAL PROVISIONS FEDERAL REGULATIONS 20 use 3871. SEC. 591. (a) The Secretary is authorized to issue regulations— (1) relating to the discharge of duties specifically assigned to the Secretary under this subtitle; (2) relating to proper fiscal accounting for funds appropriated under this subtitle and the method of making payments author- ized under this subtitle; and (3) which are deemed necessary to reasonably insure that there is compliance with the specific requirements and assurances required by this subtitle. Qo) In all other matters relating to the details of planning, develop- ing, implementing, and evaluating programs and projects by State and local educational agencies the Secretanr shall not issue regula- tions, but may consult with appropriate State, local, and private educational agencies and, upon request, provide technical assistance, information, and suggested guidelines designed to promote the devel- opment and implementation of effective instructional programs and to otherwise assist in canying out the purposes of this subtitle. (c) Regulations issued pursuant to this subtitle shall not have the standing of a Federal statute for the purposes of judicial review. WITHHOLDING OF PAYMENTS 20 use 3872. SEC. 592. (a) Whenever the Secretary after reasonable notice to any State educational agency and an opportunity for a hearing on the record, finds that there has been a failure to comply substantially with any assurances required to be given or conditions required to be met under this subtitle the Secretary shall notify such agency of these findings and that beginning sixty days after the date of such notification, further payments will not be made to the State under this subtitle, or affected chapter thereof (or, in his discretion, that the State educational agency shall reduce or terminate further payments under the subtitle or affected chapter thereof, to specified local educational agencies or State agencies affected by the failure) until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied, (1) no further payments shall be made to the State under the subtitle or affected chapter thereof, or (2) payments by the State educational agency under the subtitle or affected chapter thereof shall be limited to local educational agencies and State agencies not affected by the failure, or (3) payments to particular local educational agencies shall be reduced, as the case may be.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 481 (b) Upon submission to a State of a notice under subsection (a) that the Secretary is withholding pa3mients, the Secretary shall take such action as may be necessary to bring his action to the attention of the public within the State. JUDICIAL REVIEW SEC. 593. (a) If any State is dissatisfied with the Secretary's action 20 use 3873. under section 592(a), such State may, within sixty days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary. The filing of such petition shall act to suspend any withholding of funds by the Secretary pending the judgment of the court and prior to a final action on any review of such judgment. The Secretary thereupon shall file in the court the record of the proceedings on which he based his action, as provided in section 2112 of title 28, United States Code. (b) A State educational agency shall be presumed to have complied with this subtitle, but the findings of fact by the Secretary, if supported by the weight of evidence, may overcome such presump- tion. The court may remand the case to the Secretary to take further evidence, and the Secretary may thereupon make new or modified findings of fact and may modify his previous action, and shall file in the court the record of the further proceedings. (c) Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code. AVAILABILITY OF APPROPRIATIONS SEC. 594. Notwithstanding any other provision of law, unless 20 use 3874. expressly in limitation of this section, funds appropriated in any fiscal year to carry out activities under this subtitle shall become available for obligation on July 1 of such fiscal year and shall remain available for obligation until the end of the succeeding fiscal year. DEFINITIONS SEC. 595. (a) Except as otherwise provided herein as used in this 20 use 3875. subtitle— (1) the term "State" means a State, Puerto Rico, Guam, the District of Columbia, American Samoa, the Virgin Islands, the Northern Mariana Islands, or the Trust Territory of the Pacific Islands; (2) the term "Secretary" means the Secretary of Education; (3) the term "State educational agency" means the officer or agency primarily responsible for the State supervision of public elementary and secondary schools; (4) the term "local educational agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary or secondary schools in a city, county, township, school district, or other political subdivision of a State, or such combination of school districts or counties as are recognized in a State as an adminis- trative agency for its public elementary or secondary schools. Such term includes any other public institution or agency having
95 STAT. 482 PUBLIC LAW 97-35—AUG. 13, 1981 administrative control and direction of a public elementary or secondary school; (5) the term "parent" includes a legal guardian or other person standing in loco parentis; (6) the term "free public education" means education which is provided at public expense, under public supervision and direc- tion, and without tuition charge, and which is provided as elementary or secondary school education in the applicable State, except that such term does not include any education provided beyond grade twelve; (7) the term "elementary school" means a day or residential school which provides elementary education, as determined under State law, and the term "secondary school" means a day or residential school which provides secondary education, as deter- mined under State law, except that it does not include any education provided beyond grade twelve; (8) the term "construction" includes the preparation of draw- ings and specifications for school faciUties; erecting, building, acquiring, altering, remodeling, improving, or e x t e n ^ g school facilities; and the inspection and supervision of the construction of school facilities; (9) the term "equipment" includes machinery, utilities, and building equipment and any necessary enclosure or structures to house them, and includes all other items necessary for the functioning of a particular facility as a faciUty for the provision of educational services, including items such as instructional equipment and necessary furniture, printed, published, and audio-visual instructional materials, and books, periodicals, doc- uments, and other related materials; and (10) the term "school facilities" means classrooms and related faciUties (including initial equipment) for free public education and interests in land (includmg site, grading, and improvements) on which such facilities are constructed, except that such term does not include those gymnasiums and similar facilities intended primarily for exhibitions for which admission is to be charged to the general public. (b) Any term used in provisions referenced by section 554 and not defined in this section shall have the same meaning as that term was given in title I of the Elementary and Secondary Education Act of 20 use 2701. 1965 in effect prior to October 1,1981. APPUCATION OF OTHER LAWS 20 use 3876. SEC. 596. (a) Sections 434, 435, and 436 of the General Education 20 use 1232c, Provisions Act (relating to "State Educational Agency Monitoring I232d, I232e. ^j^^ Agency Application") shall not apply to programs authorized under this subtitle except to the extent that they relate to fiscal control and fund accounting procedures (including the title to prop- erty acquired with Federal funds), and shall not be construed to authorize the Secretary to require any reports or take £iny actions not specifically authorized by this subtitle. 20 use 1225. (b) Section 412 of the General Education Provisions Act shall apply to any funds appropriated for £iny fiscal year pursuant to this subtitle.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 483 TITLE VI—HUMAN SERVICES PROGRAMS Subtitle A—Authorizations Savings for Fiscal Years 1982,1983, and 1984 CHAPTER 1—GENERAL PROVISIONS EFFECT ON OTHER LAWS SEC. 601. (a) Any provision of law which is not consistent with the 42 u s e 9801 provisions of this subtitle hereby is superseded and shall have only note. such force and effect during each of the fiscal years 1982, 1983, and 1984 which is consistent with this subtitle. (b) Notwithstanding any authorization of appropriations for fiscal year 1982, 1983, or 1984 contained in any provision of law which is specified in this subtitle, no funds are authorized to be appropriated in excess of the limitations imposed upon appropriations by the provisions of this subtitle. CHAPTER 2—EDUCATION OF THE HANDICAPPED PROGRAMS EDUCATION OF THE HANDICAPPED ACT SEC. 602. (a)(1) There is authorized to be appropriated to carry out part B of the Education of the Handicapped Act, other than sections 20 u s e 1411 618 and 619, $969,850,000 for fiscal year 1982, and $1,017,900,000 for note. each of thefiscalyears 1983 and 1984. 20 u s e 1418, 1419. (2) There is authorized to be appropriated to carry out section 618 of 20 u s e 1418 such Act $2,300,000 for each of the fiscal years 1982 and 1983. note. (3) There is authorized to be appropriated to carry out section 619 of 20 u s e 1419 such Act $25,000,000 for each of the fiscal years 1982 and 1983. note. (b)(1) There is authorized to be appropriated to carry out section 621 of the Education of the Handicapped Act (relating to regional 20 u s e 1421 resource centers) $9,800,000 for each of the fiscal years 1982 and 1983. note. (2) There is authorized to be appropriated to carry out section 622 of such Act $16,000,000 for each of the fiscal years 1982 and 1983. 20 u s e 1422 note. (3) There is authorized to be appropriated to carry out section 623 of such Act $20,000,000 for each of the fiscal years 1982 and 1983. 20 u s e 1423 note. (4) There is authorized to be appropriated to carry out sections 621 and 624 of such Act (relating to projects for severely handicapped 20 u s e 1421 children) $5,000,000 for each of the fiscal years 1982 and 1983. note. (5) There is authorized to be appropriated to carry out section 625 of such Act $4,000,000 for each of the fiscal years 1982 and 1983. 20 u s e 1424a note. (6) There is authorized to be appropriated to carry out sections 631, 632, and 634 of such Act $58,000,000 for each of the fiscal years 1982 20 u s e 1431 note. and 1983. (7) There is authorized to be appropriated to carry out section 633 of such Act $1,000,000 for each of the fiscal years 1982 and 1983. 20 u s e 1433 note. (8) There is authorized to be appropriated to carry out part E of such Act $20,000,000 for each of the fiscal years 1982 and 1983. 20 u s e 1444 note. (9) There is authorized to be appropriated to carry out part F of such Act $19,000,000 for each of the fiscal years 1982 and 1983. 20 u s e 1454 note.
95 STAT. 484 PUBLIC LAW 97-35—AUG. 13, 1981 CHAPTER 8—VOCATIONAL REHABILITATION PROGRAMS GENERAL AUTHORIZATION UNDER REHABIUTATION ACT OF 1973 SEC. 603. There is authorized to be appropriated to carry out the 29 use 701 note. Rehabilitation Act of 1973 $1,009,260,000 for fiscal year 1982, and $1,054,160,000 for fiscal year 1983. SPECIFIC SPENDING LIMITS UNDER REHABILITATION ACT OF 1973 29 use 701 note. SEC. 604. (a) Of the amounts authorized to be appropriated in section 603, not to exceed $250,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 12 of the Rehabilita- 29 use 711. tion Act of 1973. (b) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out 29 use 713. section 14 of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983. (c) Of the amounts authorized to be appropriated in section 603, such sums as may be necessary shall be available, for each of the fiscal years 1982 and 1983, to carry out section 15 of the Rehabilita- 29 use 714. tion Act of 1973. (d) Of the amounts authorized to be appropriated in section 603, not to exceed $899,000,000 for fiscal year 1982, and not to exceed $943,900,000 for fiscal year 1983, shall be available for the purpose of making grants to States pursuant to State entitlements under part B 29 use 730. of title I of the Rehabilitation Act of 1973. (e) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out 29 use 740. section 120(a) of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983. (f) Of the amounts authorized to be appropriated in section 603, not to exceed $650,000 shall be available, for each of the fiscal years 1982 and 1983, for the purpose of making grants to Indian tribes under 29 use 750. part D of title I of the Rehabilitation Act of 1973. (g)(1) Of the amounts authorized to be appropriated in section 603, not to exceed $3,500,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 112 of the Rehabilitation Act of 29 use 732. 1973. (2) The requirement for the setting aside of funds established in the first sentence of section 112(a) of such Act shall not have any force or effect for each of the fiscal years 1982 and 1983. (h) Of the amounts authorized to be appropriated in section 603, not to exceed $35,000,000 shall be available, for each of the fiscal years 29 use 760. 1982 and 1983, to carry out title II of the Rehabilitation Act of 1973. (i) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out 29 use 771. section 301 of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983. (j) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out 29 use 772. section 302 of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983. (k) Of the amounts authorized to be appropriated in section 603, not to exceed $25,500,000 shall be available, for each of the fiscal vears 1982 and 1983, to carry out section 304 of the Rehabilitation Act of 29 use 774. 1973.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 485 (1) Notwithstanding the authorization of appro|)riations made in section 603, no funds are authorized to be appropriated to carry out section 305 of the Rehabilitation Act of 1973 for fiscal year 1982 or 29 use 775. 1983. (mXD Of the amounts authorized to be appropriated in section 603, not to exceed $12,210,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out sections 310,311,312,314, and 315 of the Rehabilitation Act of 1973. 29 use 777, (2) The requirement for the setting aside of funds established in the JJ Ja, 777b, 777d, first sentence of section 310(b) of such Act shall not have any force or ""^® effect for each of the fiscal years 1982 and 1983. (n) Of the amounts authorized to be appropriated in section 603, not to exceed $2,000,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 316 of the Rehabilitation Act of 1973. 29 use 777f. (o) Of the amounts authorized to be appropriated in section 603, not to exceed $3,500,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 313 of the Rehabilitation Act of 1973. 29 use 777c. (p) Of the amounts authorized to be appropriated in section 603, not to exceed $256,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out title IV of the Rehabilitation Act of 1973. 29 use 780. (q) Of the amounts authorized to be appropriated in section 603, such sums as may be necessary shall be available, for each of the fiscal years 1982 and 1983, to carry out section 502 of the Rehabilita- tion Act of 1973. 29 use 792. (r) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out section 506 of the Rehabilitation Act of 1973 for fiscal year 1982 or 29 use 794b. 1983. (s) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out part A of title VI of the Rehabilitation Act of 1973 for fiscal year 1982 29 use 795. or 1983. (t) Of the amounts authorized to be appropriated in section 603, not to exceed $8,000,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out part B of title VI of the Rehabilitation Act of 1973. 29USe795g. (u) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out part A, C, or D of title VII of the Rehabilitation Act of 1973 for fiscal 29 use 796,796f, year 1982 or 1983. "^^^g. (v) Of the amounts authorized to be appropriated in section 603, not to exceed $19,400,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out part B of title VII of the Rehabilitation Act of 1973. 29USe796e. CHAPTER 4—OTHER HANDICAPPED PROGRAMS AND SERVICES AMERICAN PRINTING HOUSE FOR THE BUND; GALLAUDET COLLEGE; KENDALL SCHOOL; MODEL SECONDARY SCHOOL FOR THE DEAF; NA- TIONAL TECHNICAL INSTITUTE FOR THE DEAF ACT SEC. 605. (a) The total amount of appropriations to carry out the Act of March 3, 1979 (20 Stat. 468), relating to the American Printing 20 use lOi note. House for the Blind, shall not exceed $5,000,000 for each of the fiscal years 1982,1983, and 1984.
95 STAT. 486 PUBLIC LAW 97-35—AUG. 13, 1981 (b) The total amount of appropriations to carry out the Act of June 18,1954 (68 Stat. 265), relating to Gallaudet College, shall not exceed $52,000,000 for each of the fiscal years 1982,1983, and 1984. Amounts appropriated pursuant to this subsection also shall be available for the administration of the Kendall Demonstration Elementary School and the Model Secondary School for the Deaf. (c) The total amount of appropriations to carry out the National 20 u s e 681 note. Technical Institute for the Deaf Act shall not exceed $26,300,000 for each of the fiscal years 1982,1983, and 1984. CHAPTER 5—OLDER AMERICAN PROGRAMS OLDER AMERICANS ACT OF 1965 SEC. 606. (a) There is authorized to be appropriated to carry out the 42 u s e 3001 Older Americans Act of 1965 (other than title V of such Act) note. $715,000,000 for fiscal year 1982 and $793,312,000 for fiscal year 1983. 42 u s e 3056. 42 u s e 3056f (b)(1) There is authorized to be appropriated to carry out title V of note. the Older Americans Act of 1965— (A) $277,100,000 for fiscal year 1982 and $293,726,000 for fiscal year 1983; and (B) such additional sums as may be necessary for each such fiscal year to enable the Secretary of Labor, through the oper- ation of older American community service emplojnnent pro- grams under such title, to provide for at least 54,200 part-time employment positions for eligible individuals. (2) For purposes of this subsection: "Eligible (A) The term "eligible individual" has the meaning given it in individual." 42 u s e 3056e. section 507(2) of the Older Americans Act of 1965. "Part-time (B) The term "part-time emplojnment position" means an employment employment position with a workweek of at least 20 hours. position. (c) Section 213 of the Older Americans Act of 1965 is amended by 42 u s e 3020c. striking out ", where such organization demonstrates clear superior- ity with respect to the quality of services covered by such contract". CHAPTER 6-DOMESTIC VOLUNTEER SERVICE PROGRAMS AUTHORIZATIONS UNDER DOMESTIC VOLUNTEER SERVICE ACT OF 1973 SEC. 607. (a) Section 501 of the Domestic Volunteer Service Act of 42 u s e 5081. 1973 is amended to read as follows: NATIONAL V O L U N T E E R A N T I P O V E R T Y PROGRAMS "SEC. 501. There is authorized to be appropriated to carry out title I 42 use 4951. of this Act $25,763,000 for fiscal year 1982 and $15,391,000 for fiscal year 1983. Of the amounts appropriated under this section, not less than $16,000,000 shall first be available for carrying out part A of title I for fiscal year 1982, and not less than $8,000,000 shall first be available for carrying out part A of title I for fiscal year 1983.". 42 use 5082. (bXD Section 502(a) of the Domestic Volunteer Service Act of 1973 is amended to read as follows: "SEC. 502. (a) There is authorized to be appropriated $28,691,000 for fiscal year 1982 and $30,412,000 for fiscal year 1983, for the purpose of carrying out programs under part A of title II of this Act.". (2) Section 502(b) of such Act is amended to read as follows:
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 487 "(b) There is authorized to be appropriated $49,670,000 for fiscal year 1982 and $52,650,000 for fiscal year 1983, for the purpose of carrying out programs under part B of title II of this Act.". ^2 use son. (3) Section 502 of such Act is amended by adding at the end thereof 42 use 5082. the following new subsection: "(c) There is authorized to be appropriated $16,610,000 for fiscal year 1982 and $17,607,000 for fiscal year 1983, for the purpose of carrying out part C of title II of this Act.". 42 use 5021. (c) Section 504 of the Domestic Volunteer Service Act of 1973 is 42 use 5084. amended to read as follows: "ADMINISTRATION AND COORDINATION "SEC. 504. There is authorized to be appropriated for the adminis- tration of this Act, as authorized in title IV of this Act, $30,091,000 for 42 use 504i. fiscal year 1982 and $29,348,000 for fiscal year 1983.". AMENDMENTS TO DOMESTIC VOLUNTEER SERVICE ACT OF 1973 SEC. 608; (a) Section 114(a) of the Domestic Volunteer Service Act of Grants and 1973 is amended to read as foUows: 4^^*4974 "SEC. 114. (a) The Director is authorized to make grants and contracts for projects and programs which encourage and enable students in secondaiy, secondary vocational, and post-secondary schools to participate in service-learning programs on an in-school or out-of-school basis in assignments of a character and on such terms and conditions as are described in subsections (a) and (c) of section 103.". (b) Section 211 of the Domestic Volunteer Service Act of 1973 is 42 use 5011. amended— (1) by striking out subsection (b); and (2) by redesignating subsections (c), (d), (e), and (f) as subsec- tions (b), (c), (d), and (e), respectively. (c) Title II of the Domestic Volunteer Service Act of 1973 is amended— (1) by redesignating part C as part D; and (2) by inserting after section 212 the following new part: "PART C—SENIOR Ck)MPANiONS PROGRAM "GRANTS AND CONTRACTS FOR THE PROGRAM "SEC. 213. (a) The Director is authorized to make grants to or 42 use 5013. contracts with public and nonprofit private agencies and organiza- tions to pay part or all of the cost of development and operation of projects (including direct payments to individuals serving under this part in the same manner as provided in section 211(a)) designed for the purpose of providing opportunities for low-income persons aged 60 or over to serve as 'senior companions' to persons with exceptional needs. Senior companions may provide services designed to help older persons requiring long-term care, including services to persons re- ceiving home health care, nursing care, home-delivered meals or other nutrition services; services designed to help persons deinstitu- tionalized from mental hospitals, nursing homes, and other institu- tions; and services designed to assist persons having developmental disabilities and other special needs for companionship. 89-194 0—82 33 : QL3
95 STAT. 488 PUBLIC LAW 97-35—AUG. 13, 1981 42 use 5011. "(b) The provisions of section 211(d) and section 211(e) and such other provisions of part B as the Director determines to be necessary shall apply to the provisions of this part.". (d) The heading of part B of the Domestic Volunteer Service Act of 1973 is amended to read as follows: "PART B—FOSTER GRANDPARENT PROGRAM". (eXD The item relating to part B of title II in the table of contents of the Domestic Volunteer Service Act of 1973 is amended to read as follows: "PART B—FOSTER GRANDPARENT PROGRAM". (2) The table of contents of such Act is amended by inserting after the item relating to part B the following new items: "PART C—SENIOR (COMPANIONS PROGRAM "Sec. 213. Grants and contracts for the program.". (3) The item relating to part C of title 11 in the table of contents of such Act is amended by striking out "PART C " and inserting in lieu thereof "PART D". 42 use 4973. (f)(1) Section 113(cX2) of the Domestic Volunteer Service Act of 1973 is amended by striking out "Secretary of Health, Education, and Welfare" and inserting in lieu thereof "Secretary of Health and Human Services". 42 use 5021. (2) Section 221 of such Act is amended— (A) by striking out "the Community Services Administration,"; and (B) by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". 42 use 5057. (3) Section 417(cX2) of such Act is amended by striking out "Secre- tary of Health, Education, and Welfare or the Secretary of Health and Human Resources, as the case may be," and inserting in lieu thereof "Secretary of Health and Human Services". CHAPTER 7—CHILD ABUSE PREVENTION AND TREATMENT PROGRAMS STATE GRANTS UNDER CHILD ABUSE PREVENTION AND TREATMENT ACT 42 use 5103 SEC. 609. There is authorized to be appropriated to make grants to ^0^ States under section 4(bXl) of the Child Abuse Prevention and 42 use 5103. Treatment Act $7,000,000 for each of the fiscal years 1982 and 1983. DISCRETIONARY PROGRAMS 42 use 5107. SEC. 610. (aXD The Secretary of Health and Human Services, either directly, through grants to States and public and private, nonprofit organizations and agencies, or through jointly financed cooperative arrangements with States, public agencies, and other agencies and organizations, is authorized to provide for activities of nationed significance related to child abuse prevention and treatment and adoption reform, including operation of a national center to collect and disseminate information regarding child abuse and neglect, and operation of a national adoption information exchange system to facilitate the adoptive placement of children.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 489 (2) The Secretary, in carrying out the provisions of this subsection, shall provide for the continued operation of the National Center on Child Abuse and Neglect in accordance with section 2(a) of the Child Abuse Prevention and Treatment Act for each of the fiscal years 1982 42 use 5ioi. and 1983. (3) If the Secretary determines, in fiscal year 1982 or 1983, to carry out any of the activities described in section 2(b) of the Child Abuse Prevention and Treatment Act, the Secretary shall carry out such activities through the National Center on Child Abuse and Neglect. (b) There is authorized to be appropriated to cariy out this section Appropriation $12,000,000 for each of the fiscal years 1982 and 1983. Of the amounts authorization. appropriated under this subsection for any fiscal year, not less than $2,000,000 shall be available to carry out title II of the Child Abuse Prevention and Treatment and Adoption Reform Act of 1978. 42 use 5iii. CHAPTER 8—COMMUNITY SERVICES PROGRAMS Subchapter A—Community Economic Development Community Economic Development SHORT TITLE Act of 1981. SEC, 611. This subchapter may be cited as the "Community Eco- 42 u s e 9801 nomic Development Act of 1981". note. STATEMENT OP PURPOSE SEC. 612. The purpose of this subchapter is to encourage the 42 u s e 9801. development of special programs by which the residents of urban and rural low-income areas may, through self-help and mobilization of the community at large, with appropriate Federal assistance, improve the quality of their economic and social participation in community life in such a way as to contribute to the elimination of poverty and the establishment of permanent economic and social benefits. DEFINITION SEC. 613. For purposes of this subchapter, the term "community 42TJSC 9802. development corporation" means a nonprofit organization responsi- ble to residents of the area it serves which is receiving financial assistance under part 1 and any organization more than 50 percent of Post, p. 490. which is owned by such an organization, or otherwise controlled by such an organization, or designated by such an organization for the purpose of this subchapter. SOURCE OF FUNDS SEC. 614. The Secretary is authorized to use funds made available to 42 Use 9803. the Secretary under section 681(b) for purposes of carr5dng out the Post, p. 518. provisions of this subchapter. ADVISORY COMMUNITY INVESTMENT BOARDS SEC. 615. (aXD The President is authorized to establish a National Establishment. Advisory Community Investment Board (hereinafter in this section 42 u s e 9804: referred to as the "Investment Board"). Such Investment Board shall be composed of 15 members appointed, for staggered terms and without regard to the civil service laws, by the President, in consulta- tion with the Secretary of Health and Human Services (hereinafter in
95 STAT. 490 PUBLIC LAW 97-35—AUG. 13, 1981 this subchapter referred to as the "Secretary"). Such members shall be representative of the investment and business communities and appropriate fields of endeavor related to this subchapter. The Invest- ment Board shall meet at the call of the chairperson, but not less often than 3 times each year. The Secretary and the administrator of community economic development programs shall be ex officio mem- bers of the Investment Board. (2) The Secretary shall carry out the provisions of this subchapter through the Office of Community Services established in section 676(a). (b) The Investment Board shall promote cooperation between private investors and businesses and community development corpo- ration projects through— (1) advising the Secretary and the community development corporations on ways to facilitate private investment; (2) advising businesses and other investors of opportunities in community development corporation projects; and (3) advising the Secretary, community development corpora- tions, and private investors and businesses of ways in which they might engage in mutually beneficial efforts. (c) The governing body of each Community Development Corpora- tion may establish an advisory community investment board com- posed of not to exceed 15 members who shall be appointed by the governing body after consultation with appropriate local officials. Each such board shall promote cooperation between private investors and businesses and the governing body of the Community Develop- ment Corporation through— (1) advising the governing body on ways to facilitate private investors; (2) advising businesses and other investors of opportunities in Community Development Corporation projects; and (3) advising the governing body, private investors, and busi- nesses of ways in which they might engage in mutually beneficial efforts. PART 1—URBAN AND RURAL SPECL^L IMPACT PROGRAMS STATEMENT OF PURPOSE 42 use 9805. SEC. 616. The purpose of this part is to establish special programs of assistance to nonprofit private locally initiated community develop- ment corporations which (1) are directed to the solution of the critical problems existing in particular communities or neighborhoods (de- fined without regard to political or other subdivisions or boundaries) within those urban and rural areas having concentrations or substan- tial numbers of low-income persons; (2) are of sufficient size, scope, and duration to have an appreciable impact in such communities, neighborhoods, and rural areas in arresting tendencies toward dependency, chronic unemplojnnent, and community deterioration; (3) hold forth the prospect of continuing to have such impact after the termination of financial assistance under this part; and (4) provide financial and other assistance to start, expand, or locate enterprises in or near the area to be served so as to provide emplojmaent and ownership opportunities for residents of such areas, including those who are disadvantaged in the labor market because of their limited speaking, reading, and writing abilities in the English language.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 491 ESTABLISHMENT AND SCOPE OF PROGRAMS SEC. 617. (a) The Secretary is authorized to provide financdal Grants. assistance in the form of grants to nonprofit and for profit community ^2 use 9806. development corporations and other affiliated and supportive agen- cies and organizations associated with qualifying community develop- ment corporations for the payment of all or part of the cost of programs which are designed to cany out the purposes of this part. Financial assistance shall be provided so that each community economic development program is of sufficient size, scope, and duration to have an appreciable impact on the area served. Such programs may include— (1) community business and commercial development pro- grams, including (A) programs which provide financial and other assistance (including equity capital) to start, expand, or locate businesses in or near the area served so as to provide employ- ment and ownership opportunities for residents of such areas; and (B) programs for small businesses located in or owned by residents of such areas; (2) community physical development programs, including in- dustrial parks and housing activities, which contribute to an improved environment and which create new training, employ- ment and ownership opportunities for residents of such area; (3) training and public service employment programs and related services for unemployed or low-income persons which support and complement community development programs financed under this part, including, without limitation, activities such as those described in the Comprehensive Emplo3rment and Training Act; and (4) social service programs which support and complement community business and commercial development programs financed under this part, including child care, educational serv- ices, health services, credit counseling, energy conservation, recreation services, and programs for the maintenance of hous- ing facilities. (b) The Secretary shall conduct programs assisted under this part so as to contribute, on an equitable basis between urban and rural areas, to the elimination of poverty and the establishment of perma- nent economic and social benefits in such areas. FINANCIAL ASSISTANCE REQUIREMENTS SEC. 618. (a) The Secretary, under such regulations as the Secretary 42 use 9807. may establish, shall not provide financial assistance for any commu- nity economic development program under this part unless the Secretary determines that— (1) such community development corporation is responsible to residents of the area served (A) through a governing body not less than 50 percent of the members of which are area residents; and (B) in accordance with such other guidelines as may be estab- lished by the Secretary, except that the composition of the governing bodies of organizations owned or controlled by the community development corporation need not be subject to such residency requirement; (2) the program will be appropriately coordinated with local planning under this subchapter with housing and community development programs, with employment and training pro-
95 STAT. 492 PUBLIC LAW 97-36-AUG. 13,1981 grams, and with other relevant planning for physical and human resources in the areas served; (3) adequate technical assistance is made available and com- mitted to the programs being supported; (4) such fmancial assistance will materially further the pur- poses of this part; (5) the applicant is fulfilling or will fulfill a need for services, supplies, or facilities which is otherwise not being met; (6) all projects and related facilities will, to the maximum feasible extent, be located in the areas served; (7) projects will, where feasible, promote the development of entrepreneurial and management skills and the ownership or participation in ownership of assisted businesses and housing, cooperatively or otherwise, by residents of the area served; (8) projects will be planned and carried out with the fullest possible participation of resident or local businessmen and repre- sentatives of financial institutions, including participation through contract, joint venture, partnership, stock ownership or membership on the governing boards or advisory councils of such projects consistent with the self-help purposes of this subchapter; (9) no participant will be employed on projects involving political parties, or the construction, operation, or maintenance of so much of any facility as is used or to be used for sectarian instruction or as a place for religious worship; (10) the program will not result in the (hsplacement of em- ployed workers or impair existing contracts for services, or result in the substitution of Federal or other funds in connection with work that would otherwise be performed; (11) the rates of pay for time spent in work training and education, and other conditions of employment, will be appropri- ate and reasonable in the light of such factors as the type of work, geographical region, and proficiency of the participant; (12) the progreim will, to the maximum extent feasible, contrib- ute to the occupational development or upward mobility of individual participants; (13) preference will be given to low-income or economically disadvantaged residents of the areas served in filling jobs and training opportuiiities; and (14) training programs carried out in connection with projects financed under this part shall be designed wherever feasible to provide those persons who successfully complete such training with skills which are also in demand in communities, neighbor- hoods, or rural areas other than those for which programs are established under this part. (b) Financial assistance under this section shall not be extended to assist in the relocation of establishments from one location to another if such relocation would result in a substantial increase in unemploy- ment in the area of original location. (c) Financial assistance for commercial development under this part shall not be extended until the community economic develop- ment program that has applied for assistance under this subchapter has specified in some detail its development goals and its develop- ment timetable. The Secretary, in providing continued financial assistance to a community economic development program, shall give serious consideration to the experience such program has had in meeting development goals or in adhering to development timetables.
PUBLIC LAW 97-35-AUG. 13,1981 95 STAT. 493 FEDERAL SHARE SEC. 619. (aXD Assistance provided under this subchapter to any 42 use 9808. program described in section 618(a) shall not exceed 90 percent of the cost of such program, including costs of administration, unless the Secretary determines that the assistance in excess of such percentage is required in furtherance of the purposes of this subchapter. Non- Federal contributions may be in cash or in kind, fairly evaluated, including but not limited to plant, equipment, and services. (2) The assistance referred to in paragraph (1) shall be made available (A) for deposit to the order of grantees which have demon- strated successfid program performance, under conditions which the Secretary deems appropriate, within 80 days following approval of the grant agreement by the Secretary and such grantee; or (B) whenever the Secretary deems appropriate, in accordance with applicable rules and regulations prescribed by the Secretary of the Treasury, and including any other conditions which the Secretary of Health and Human Services deems appropriate, within 30 days following approval of the grant agreement by the Secretary and such grantee. (b) Property acquired as a result of capital investments made by any community development corporation with funds granted as ite Federal share of the cost of programs carried out under this sub- chapter, and the proceeds from such property, shall become the property of the community development corporation and shall not be considered to be Federal property. The Federal Government retains the right to direct that on severance of the grant relationship the assets purchased with grant funds shall continue to be used for the original purpose for which they were granted. PART 2—SPECIAL RURAL PROGRAMS STATEMENT OF PURPOSE SEC. 620. It is the purpose of this part to meet the special economic 42 use 9809. needs of rural communities or areas with concentrations or substan- tigil numbers of low-income persons by providing support to self-help programs which promote economic development and independence, as a supplement to existing similar programs conducted by other departments and agencies of the Federal Government. Such pro- grams should encourage low-income families to pool their talents and resources so as to create and expand rural economic enterprise. FINANCIAL ASSISTANCE SEC. 621. (a) The Secretary is authorized to provide financial 42 use 9810. assistance, including loans having a maximum maturity of fifteen years and in amounts not resulting in an aggregate principal indebt- edness of more than $3,500 at any one time, to any low-income rural family where, in the judgment of the Secretary, such financial assistance has a reasonable possibility of effecting a permanent increase in the income of such families, or will contribute to the improvement of their living or housing conditions, by assisting or permitting them to— (1) acquire or improve real estate or reduce encumbrances or erect improvements thereon;
95 STAT. 494 PUBLIC LAW 97-35—AUG. 13, 1981 (2) operate or improve the operation of farms not larger than family sized, including but not limited to the purchase of feed, seed, fertilizer, livestock, poultry, and equipment; or (8) participate in cooperative associations, or finance nonagri- cultral enterprises which will enable such families to supplement their income, (b) The Secretary is authorized to provide financial assistance to local cooperative associations or local public and private nonprofit organizations or agencies in rural areas containing concentrations or substantial numbers of low-income persons for the purpose of defray- ing all or part of the costs of establishing and operating cooperative programs for farming, purchasing, marketing, processing, and to improve their income as producers and their purchasing power as consumers, and to provide such essentials as credit and health services. Costs which may be defrayed shall include— (1) administrative costs of staff and overhead; (2) costs of planning and developing new enterprises; (3) costs of acquiring technical assistance; and (4) initial capital where it is determined by the Secretary that the poverty of the families participating in the program and the social conditions of the rural area require such assistance. UMITATION ON ASSISTANCE 42 use 9811. SEC. 622. No financial assistance shall be provided under this part unless the Secretary determines that— (1) any cooperative association receiving assistance has a minimum of fifteen active members, a majority of which are low- income rural persons; (2) adequate technical assistance is made available and com- mitted to the programs being supported; (3) such financial assistance will materially further the pur- poses of this part; and (4) the applicant is fulfilling or will fulfill a need for services, supplies, or facilities which is otherwise not being met. PART 3—DEVELOPMENT LOANS TO COMMUNITY ECONOMIC DEVELOPMENT PROGRAMS DEVELOPMENT LOAN FUND 42 use 9812. SEC. 623. (a) The Secretary is authorized to make or guarantee loans (either directly or in cooperation with banks or other organiza- tions through agreements to participate on an immediate or deferred basis) to community development corporations, to families and local cooperatives and the designated supportive organizations of coopera- tives eligible for financial assistance under this subchapter, to private nonprofit organizations receiving assistance under subtitle B of this Post, p. 511. title, or to public and private nonprofit organizations or agencies, for business facilities and community development projects, including community development credit unions, which the Secretary deter- mines will carry out the purposes of this part. No loans, guarantees, or other financial assistance shall be provided under this section unless the Secretary determines that— (1) there is reasonable assurance of repayment of the loan; (2) the loan is not otherwise available on reasonable terms from private sources or other Federal, State, or local programs; and
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 495 (3) the amount of the loan, together with other funds available, is adequate to assure completion of the project or achievement of the purposes for which the loan is made. Loans made by the Secretary pursuant to this section shall bear interest at a rate not less than a rate determined by the Secretary of the Treasury taking into consideration the average market yield on outstanding Treasury obligations of comparable maturity, plus such additional charge, if any, toward covering other costs of the program as the Secretary of Health and Human Services may determine to be consistent with its purposes, except that, for the 5 years following the date in which funds are initially available to the borrower, the rate of interest shall be set at a rate considered appropriate by the Secretary in light of the particular needs of the borrower, which rate shall not be lower than 1 percent. All such loans shall be repayable within a period of not more than 30 years. Ob) The Secretary is authorized to adjust interest rates, grant moratoriums on repajmient of principal and interest, collect or compromise any obligations held by the Secretary, and to take such other actions in respect to such loans as the Secretary shall deter- mine to be necessary or appropriate, consistent with the purposes of this section. (c)(1) To carry out the lending and guaranty functions authorized Rural under this part, there shall be established a Development Loan Fund Development Loan Fund and consisting of two separate accounts, one of which shall be a revolving Community fund called the Rural Development Loan Fund and the other of which Development shedl be a revolving fund called the Community Development Loan Loan Fund^ Fund. The capital of each such revolving fund shall remain available Establishment. until expended. (2) The Rural Development Loan Fund shall consist of the remain- ing funds provided for in part A of title III of the Economic Opportu- nity Act of 1964, as in effect on September 19,1972, and such amounts 42 u s e 285L as may be deposited in such fund by the Secretary out of funds made available from appropriations for purposes of carrying out this part. The Secretary shgQl utilize the services of the Farmers Home Admin- istration in administering such fund. (3) The Community Development Loan Fund shall consist of such amounts as may be deposited in such fund by the Secretary out of funds made available from appropriations for purposes of canying out this subchapter. The Secretary may make deposits in the Commu- nity Development Loan Fund in any fiscal year in which the Secre- tary has made available for grants to community development corporations under this subchapter not less than $60,000,000 out of funds made available from appropriations for purposes of carrjdng out this subchapter. ESTABUSHMENT OF MODEL COMMUNITY ECONOMIC DEVELOPMENT FINANCE CORPORATION SEC. 624. To the extent he deems appropriate, the Secretary shall 42 use 9813. utilize funds available under this part to prepare a plan of action for the establishment of a Model Community Economic Development Finance Corporation to provide a user-controlled independent and professionally operated long-term financing vehicle with the princi- pal purpose of providing financial support for community economic development corporations, cooperatives, other affiliated and support- ive agencies and organizations associated with community economic development corporations, and other entities eligible for assistance under this subchapter.
95 STAT. 496 PUBLIC LAW 97-35—AUG. 13, 1981 PART 4—SUPPORTIVE PROGRAMS AND ACTIVITIES TRAINING AND TECHNICAL ASSISTANCE 42 u s e 9814. SEC. 625. (a) The Secretary shall provide, directly or through grants, contracts, or other arrangements, such technical assistance and training of personnel as may be required to effectively imple- ment the purposes of this subchapter. No financial assistance shall be provided to any public or private organization under this section unless the Secretary provides the beneficiaries of these services with opportunity to participate in the selection of and to review the quality and utility of the services furnished them by such organization. (b) Teclmical assistance to community development corporations and both urban and rural cooperatives may include planning, man- agement, legal assistance or support, preparation of feasibility stud- ies, product development, marketing, and the provision of stipends to encourage skilled professionals to engage in full-time activities under the direction of a community organization financially assisted under this subchapter. (c) Training for employees of community development corporations and for employees and members of urban and r u r ^ cooperatives shall include on-the-job training, classroom instruction, and scholarships to assist them in development, managerial, entrepreneurial, plan- ning, and other technical and organizational skills which will contrib- ute to the effectiveness of programs assisted under this subchapter. SMALL BUSINESS ADMINISTRATION AND DEPARTMENT OF COMMERCE PROGRAMS 42 u s e 9815. SEC. 626. (aXD Funds granted under this subchapter which are invested directly or indirectly, in a small investment company, local development company, limited small business investment company, or small business investment company licensee under section 301(d) 15 u s e 681. of the Small Business Investment Act of 1958 shall be included as "private paid-in capital and paid-in surplus", "combined paid-in capital and paid-in surplus", and "paid-in capital" for purposes of 15 u s e 682, 683, sections 302,303, and 502, respectively, of the Small Business Invest- 696. ment Act of 1958. Regulations. (2) Not later than 90 days after the date of the enactment of this Act, the Administrator of the Small Business Administration, after consultation with the Secretary, shall promulgate regulations to ensure the availability to community development corporations of such programs as shall further the purposes of this subchapter, 15 u s e 637. including programs under section 8(a) of the Small Business Act. (bXl) Areas selected for assistance under this subchapter shall be deemed "redevelopment areas" within the meaning of section 401 of 42 u s e 3161. the Pubic Works and Economic Development Act of 1965, shall qualify for assistance under the provisions of title I and title 11 of such 42 u s e 3131, Act, and shall be deemed to have met the overall economic develop- 3141._ ment program requirements of section 202(b)(10) of such Act. 42 u s e 3142. Regulations. (2) Not later than 90 days after the date of the enactment of this Act, the Secretary of Commerce shall prescribe regulations which will ensure that community development corporations Eind coopera- tives shall qualify for assistance and shall be eligible to receive such assistance under all such programs of the Economic Development Administration as shall further the purposes of this subchapter.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 497 DEPARTMENT OP HOUSING AND URBAN DEVELOPMENT PROGRAMS SEC. 627. The Secretary of Housing and Urban Development, after 42 USC 9816. consultation with the ^ r e t a r y , shall take all necessary steps to assist community development corporations and local cooperative associations to qualify for and receive (1) such assistance in connec- tion with technical assistance, counseling to tenants and home- owners, and loans to sponsors of low-income and moderate-income housing under section 106 of the Housing and Urban Development Act of 1968, as amended bv section 811 of the Housing and Commu- nity Development Act of 1974; (2) such land for housing and business 12 uSc i70ix. location and expansion under title I of the Housing and Community Development Act of 1974; and (3) such funds for comprehensive 42iJSC530i. planning under section 701 of the Housing Act of 1954, as amended by section 401 of the Housing and Community Development Act of 1974, 40 use 461. as shall further the purposes of this subchapter. DEPARTMENT OF AGRICULTURE AND FARMERS HOME ADMINISTRATION PROGRAMS SEC. 628. The Secretary of Agriculture or, where appropriate, the 42 use 9817. Administrator of the Farmers Home Administration, after consulta- tion with the Secretary of Health and Human Services, shall take all necessary steps to ensure that community development corporations and local cooperative associations shall qualify for and shall receive— (1) such assistance in connection with housing development under the Housing Act of 1949, as amended; 42 use 1441 (2) such assistance in connection with housing, business, indus- *^°*®- trial, and community development under the Consolidated Farmers Home Administration Act of 1961 and the Rural Devel- ^ use 1921 note, opment Act of 1972; and 7 use 1921 note. (3) such further assistance under all such programs of the United States Dep£u*tment of Agriculture; as shall further the purposes of this subchapter. COORDINATION AND ELIGIBILITY SEC. 629. (a) The Secretary shall take all necessary and appropriate 42 use 98i8. steps to encourage Federal departments and agencies and State and local governments to make grants, provide technical assistance, enter into contracts, and generally support and cooperate with community development corporations and local cooperative associations. (b) Eligibility for assistance under other Federal programs shall not be denied to any applicant on the ground that it is a community development corporation or £my other entity assisted under th& subchapter. EVALUATION AND RESEARCH SEC. 630. (a) Each program for which grants are made under this 42TJSC^gI5. subchapter shall provide for a thorough evaluation of the effective- ness of the program in achieving its purposes, which evaluation shall be conducted by such public or private organizations as the Secretary in consultation with existing grantees familiar with programs carried out under the Community Services Block Grant Act may designate. Post, p. 511. and all or part of the costs of evaluation may be paid from funds appropriated to carry out this part. In evaluating the performance pf any community development corporation funded under part 1, the criteria for evaluation shall be based upon such program objectives.
95 STAT. 498 PUBLIC LAW 97-35—AUG. 13, 1981 goals, and priorities as are consistent with the purposes of this subchapter and were set forth by such community development corporation in its proposal for fun(Ung as approved and agreed upon by or as subsequently modified from time to time by mutual agree- ment between the Secretary and such community development corporation. (b) The Secretary shall conduct, either directly or through grants or other arrangements, research and demonstration projects designed to suggest new programs and policies to achieve the purposes of this subchapter in such ways as to provide opportunities for emplo3rment, ownership, and a better quality of life for low-income residents. PLANNING GRANTS 42 use 9820. SEC. 631. In order to facilitate the purposes of this subchapter, the Secretary is authorized to provide financial assistance to any public or private nonprofit agency or organization for planning of commu- nity economic development programs and cooperative programs under this subchapter. NONDISCRIMINATION PROVISIONS 42 use 9821. SEC. 632. (a) The Secretary shall not provide financial assistance for any program, project, or activity under this subchapter unless the grant or contract with respect thereto specifically provides that no person with responsibilities in the operation thereof will discriminate with respect to any such program, project, or activity because of race, creed, color, national origin, sex, political affiliation, or beliefs, (b) No person in the United States shall on the ground of sex be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied employment in connection with any program or activity receiving assistance under this subchapter. The Secretary shall enforce the provisions of the preceding sentence 42 use 2000d-i. in accordance with section 602 of the Civil Rights Act of 1964. Section 42 use 2000d-2. 603 of such Act shall apply with respect to any action taken by the Secretary to enforce such sentence. This section shall not be con- strued as affecting any other legal remedy that a person may have if such person is excluded from participation in, denied the benefits of, subjected to discrimination under, or denied employment in connec- tion with, any program, project, or activity receiving assistance under this subchapter. AVAILABILITY OP CERTAIN APPROPRIATED FUNDS 42 use 9822. SEC. 633. Funds appropriated to the Rural Development Loan Fund 42 use 2981. under title VII of the Economic Opportunity Act of 1964 (as in effect on the day before the date of the enactment of this Act), and interest accumulated in such fund, shall be deposited in the Rural Develop- ment Loan Fund established under section 623(c)(1) and shall con- tinue to be available to carry out the purposes of such fund. Funds appropriated to the Community Development Credit Union Revolv- ing Loan Fund under title VII of the Economic Opportunity Act of 1964 (as in effect on the day before the date of the enactment of this Act), and interest accumulated in such fund, shall continue to be available to carry out the purposes of such fund.
PUBLIC LAW 97-35—AUG. 13,1981 95 STAT. 499 Subchapter B—Head Start Programs Head start Act. SHORT TTTLE SEC. 635. This subchapter may be cited as the "Head Start Act". 42 use 980i note. STATEMENT OF PURPOSE AND POUCY SEC. 636. (a) In recognition of the role which Project Head Start has 42 use 9831. played in the effective delivery of comprehensive health, educational, nutritional, social, and other services to economically disadvantaged children and their families, it is the jpurpose of this subchapter to extend the authority for the appropriation of funds for such program. (b) In carrying out the provisions of this subchapter, the Secretary of Health and Human Services shall continue the administrative arrangement responsible for meeting the needs of migrant and Indian children and shall assure that appropriate funding is provided to meet such needs. DEFINrnONS SEC. 637. For purposes of this subchapter: 42 use 9832. (1) The term "Secretary" means the Secretary of Health and Human Services. (2) The term "State" means a State, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the Virgin Islands, the Trust Territory of the Pacific Islands, and the Northern Mariana Islands. (3) The term "financial assistance" includes assistance pro- vided by grant, agreement, or contract, and payments may be made in installments and in advance or by way of reimburse- ment with necessary adjustments on account of overpayments or underpa}mients. FINANCIAL ASSISTANCE FOR HEAD START PROGRAMS SEC. 638. The Secretary may, upon application by an agency which 42 use 9833. is eligible for designation as a Head Start agency pursuant to section 641, provide financial assistance to such agency for the planning, conduct, administration, and evaluation of a Head Start program focused primarily upon children from low-income families who have not reached the age of compulsory school attendance which (1) will provide such comprehensive health, nutritional, educational, social, and other services as will aid the children to attain their full potential; and (2) will provide for direct participation of the parents of such children in the development, conduct, and overall program direction at the local level. AUTHORIZATION OF APPROPRIATIONS SEC. 639. There is authorized to be appropriated for carrying out 42 use 9834. the provisions of this subchapter $950,000,000 for fiscal year 1982, $1,007,000,000 for fiscal year 1983, and $1,058,357,000 for fiscal year 1984. ALLOTMENT OF FUNDS; UMITATIONS ON ASSISTANCE SEC. 640. (aXD Of the sums appropriated pursuant to section 639 for 42 use 9835. any fiscal year beginning after September 30, 1981, the Secretary shall allot such sums in accordance with paragraphs (2) and (3).
95 STAT. 500 PUBLIC LAW 97-35~-AUG. 13,1981 (2) The Secretary shall reserve 13 percent of the amount appropri- ated for each fiscal year for use in accordance with the following order of priorities— (A) Indian and migrant Head Start programs and services for handicapped children, except that— (i) there shall be made available for use by Indian and migrant Head Start programs, on a nationwide basis, no less funds for fiscal year 1982 and each subsequent fiscal year than were obligated for use by Indian and migrant Head Start programs for fiscal year 1981; and (ii) cost-of-living adjustments shall be made with respect to such Indian and migrant Head Stsirt programs for fiscal year 1982 and each subsequent fiscal year, and such adjustments shall, at the minimum, reflect changes in the Consumer Price Index published by the Bureau of Labor Statistics of the Department of Labor; (B) payments to Guam, American Samoa, the Trust Territory of the Pacific Islands, the Northern Mariana Islands, and the Virgin Islands according to their respective needs, except that such amount shall not exceed one-half of 1 percent of the sums appropriated for any fiscsil year; (C) training and technical assistance activities which are sufficient to meet the needs associated with program expansion and to foster program and management improvement activities; and (D) discretionary payments made by the Secretary. (3) The Secretary shall allot the remaining 87 percent of the amounts appropriated in each fiscal year among the States, in accordance with latest satisfactory data so that— (A) each State receives an amount which is equal to the amount the State received for fiscal year 1981; and (B)(i) 33 Va percent of any amount available after all allotments have been made under clause (A) for such fiscal year shall be distributed on the basis of the relative number of children from birth through 18 years of age, on whose behalf pajrments are made under the program of aid to families with dependent children under a State plan approved under part A of title IV of the Social Security Act in each State £is compared to all States; and (ii) 66% percent of such amount shall be distributed on the basis of the relative number of children from birth through 5 years of age living with families with incomes below the poverty line in each State as compared to all States. (4) For purposes of this subsection, the term "State" does not include Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, or the Trust Territory of the Pacific Islands. (b) Financial assistance extended under this subchapter for a Head Start program shall not exceed 80 percent of the approved costs of the assisted program or activities, except that the Secretary may approve assistance in excess of such percentage if the Secretary determines, in accordance with regulations establishing objective criteria, that such action is required in furtherance of the purposes of this subchapter. Non-Feder£d contributions may be in cash or in kind, fairly evalu- ated, including plant, equipment, or services. The Secretary shall not require non-Federal contributions in excess of 20 percent of the approved costs of programs or activities assisted under this sub- chapter.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 501 (c) No programs shall be approved for assistance under this subchapter unless the Secretary is satisfied that the services to be provided under such program will be in addition to, and not in substitution for, comparable services previously provided without Federal assistance. The requirement imposed by the preceding sen- tence shall be subject to such regulations as the Secretary may prescribe. (d) The Secretary shall establish policies and procedures designed to assure that for fiscal year 1982 and thereafter no less than 10 g ercent of the total number of enrollment opportunities in Head tart programs in each State shall be available for handicapped children (as defined in paragraph (1) of section 602 of the Education of the Handicapped Act) and that services shall be provided to meet 20 u s e 3192. their special needs. The Secretary shall report to the Congress at Report to least annually on the status of handicapped children in Head Start Congress. programs, including the number of children being served, their handicapping conditions, and the services being provided such children. (e) The Secretary shall adopt appropriate administrative measures to assure that the benefits of this subchapter will be distributed equitably between residents of rural and urban areas. DESIGNATION OF HEAD START AGENCIES SEC. 641. (a) The Secretary is authorized to designate as a Head 42 use 9836. Start agency any local public or private nonprofit agency which (1) has the power and authority to carry out the purposes of this subchapter and perform the functions set forth in section 642 within a community; and (2) is determined by the Secretary to be capable of planning, conducting, administering, and evaluating, either directly or by other arrangements, a Head Start program. (b) For purposes of this subchapter, a community may be a city, "eommunity.' county, or multicity or multicounty unit within a State, an Indian reservation, or a neighborhood or other area (irrespective of bound- aries or political subdivisions) which provides a suitable organiza- tional base and possesses the commonality of interest needed to operate a Head Start program. (c) In the administration of the provisions of this section, the Secretary shall give priority in the designation of Head Start agen- cies to any local public or private nonprofit agency which is receiving funds under any Head Start program on the date of the enactment of this Act, except that— (1) the Secretary shall, before giving such priority, determine that the agency involved meets program and fiscal requirements established by the Secretary; and (2) if there is no such agency because of any change in the assistance furnished to programs for economically disadvantaged persons, then the Secretary shall give priority in the designation of Head Start agencies to any successor agency which is operated in substantially the same manner as the predecessor agency which did receive funds in the fiscal year preceding the fiscal year for which the determination is made. The provisions of clause (2) shall apply only to agencies actually operating Head Start programs. (d) The Secretary shall require that the practice of significantly involving parents and area residents affected by the program in selection of Head Start agencies be continued.
95 STAT. 502 PUBLIC LAW 97-35—AUG. 13, 1981 POWERS AND FUNCTIONS OF HEAD START AGENCIES 42 use 9837. SEC. 642. (a) In order to be designated as a Head Start agency under this subchapter, an agency must have authority under its charter or applicable law to receive and administer funds under this subchapter, funds and contributions from private or local public sources which may be used in support of a Head Start program, and funds under any Federal or State assistance program pursuant to which a public or private nonprofit agency (as the case may be) organized in accordance with this subchapter, could act as grantee, contractor, or sponsor of projects appropriate for inclusion in a Head Start program. Such an agency must also be empowered to transfer funds so received, and to delegate powers to other agencies, subject to the powers of its governing board and its overall program responsibilities. The power to transfer funds and delegate powers must include the power to make transfers and delegations covering component projects in all cases where this will contribute to efficiency and effectiveness or otherwise further program objectives. (b) In order to be so designated, a Head Start agency must also (1) establish effective procedures by which parents and area residents concerned will be enabled to directly participate in decisions that influence the character of programs affecting their interests; (2) provide for their regular participation in the implementation of such programs; (3) provide technical and other support needed to enable parents and area residents to secure on their own behalf available assistance from public and private sources; and (4) establish proce- dures to seek reimbursement, to the extent feasible, from other agencies for services for which any such other agency is responsible, which are provided to a Head Start participant by the Head Start agency. (c) The head of each Head Start agency shall coordinate with other programs serving the children in the Head Start agency to carry out the provisions of this subsection. SUBMISSION OF PLANS TO GOVERNORS 42 use 9838. SEC. 643. In carrjdng out the provisions of this subchapter, no contract, agreement, grant, or other assistance shall be liiade for the purpose of carrying out a Head Start program within a State unless a plan setting forth such proposed contract, agreement, grant, or other assistance has been submitted to the Governor of the State, and such plan has not been disapproved by the Governor within 30 days of such submission, or, if so disapproved, has been reconsidered by the Secretary and found by the Secretary to be fully consistent with the provisions and in furtherance of the purposes of this subchapter. Funds to cover the costs of the proposed contract, agreement, grant, or other assistance shall be obligated from the appropriation which is current at the time the plan is submitted to the Governor. This section shall not, however, apply to contracts, agreements, grants, loans, or other assistance to any institution of higher education in existence on the date of the enactment of this Act. ADMINISTRATIVE REQUIREMENTS AND STANDARDS 42 use 9839. SEC. 644. (a) Each Head Start agency shall observe standards of organization, management, and administration which will assure, so far as reasonably possible, that all program activities are conducted in a manner consistent with the purposes of this subchapter and the
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 503 objective of providing assistance effectively, efficiently, and free of any taint of partisan political bias or personal or family favoritism. Each such agency shall establish or adopt rules to carry out this section, which shall include rules to assure full staff accountability in matters governed by law, regulations, or agency policy. Each agency shall also provide for reasonable public access to information, includ- ing public hearings at the request of appropriate community groups and reasonable public access to books and records of the agency or other agencies engaged in program activities or operations involving the use of authority or funds for which it is responsible. Each such agency shall adopt for itself and other agencies using funds or exercising authority for which it is responsible, rules designed to (1) establish specific standards governing salaries, salary increases, travel and per diem allowances, and other employee benefits; (2) assure that only persons capable of discharging their duties with competence and integrity are employed and that employees are promoted or advanced under impartisd procedures calculated to improve agency performance and effectiveness; (3) guard against personal or financial conflicts of interest; and (4) define employee duties in an appropriate manner which will in any case preclude employees from participating, in connection with the performance of their duties, in any form of picketing, protest, or other direct action which is in violation of law. (b) No financial assistance shall be extended under this subchapter in any case in which the Secretary determines that the costs of developing and administering a program assisted under this sub- chapter exceed 15 percent of the total costs, including non-Federal contributions to such costs, of such program. The Secretary shall establish by regulation, criteria for determining (1) the costs of developing and administering such program; and (2) the total costs of such program. In any case in which the Secretary determines that the cost of administering such program does not exceed 15 percent of such total costs but is, in the judgment of the Secretary, excessive, the Secretary shall forthwith require the recipient of such financial assistance to take such steps prescribed by the Secretary as will eliminate such excessive administrative cost, including the sharing by one or more Head Start agencies of a common director and other administrative personnel. The Secretary may waive the limitation prescribed by this subsection for specific periods of time not to exceed 12 months whenever the Secretary determines that such a waiver is necessary in order to carry out the purposes of this subchapter. (c) The Secretary shall prescribe rules or regulations to supplement Regulations subsection (a), which shall be binding on all agencies carrying on Head Start program activities with financial assistance under this subchapter. The Secretary may, where appropriate, establish special or simplified requirements for smaller agencies or agencies operating in rural areas. Policies and procedures shall be established to ensure that indirect costs attributable to the common or joint use of facilities and services by programs assisted under this subchapter and other programs shall be fairly allocated among the various programs which utilize such facilities and services, (d) At least 30 days prior to their effective date, all rules, regula- Publication in tions, guidelines, instructions, and application forms shall be pub- Federal lished in the Federal Register and shall be sent to each grantee with Register. the notification that each such grantee h£is the right to submit comments pertaining thereto to the Secretary prior to the final adoption thereof. 89-194 0—82 34:QL3
95 STAT. 504 PUBLIC LAW 97-35—AUG. 13, 1981 PARTICIPATION IN HEAD START PROGRAMS 42 use 9840. SEC. 645. (a)(1) The Secretary shall by regulation prescribe eligibil- ity for the participation of persons in Head Start programs assisted under this subchapter. Except as provided in paragraph (2), such criteria may provide (A) that children from low-income families shall be eligible for participation in programs assisted under this sub- chapter if their families' incomes are below the poverty line, or if their families are eligible or, in the absence of child care, would potentially be eligible for public assistance; and (B) pursuant to such regulations as the Secretary shall prescribe, that programs assisted under this subchapter may include, to a reasonable extent, participa- tion of children in the area served who would benefit from such programs but whose families do not meet the low-income criteria prescribed pursuant to clause (A). (2) Whenever a Head Start program is operated in a community with a population of 1,000 or less individuals and— (A) there is no other preschool program in the community; (B) the community is located in a medically underserved area, as designated by the Secretary pursuant to section 330(bX3) of the 42 use 254c. Public Health Service Act and is located in a health manpower shortage area, as designated by the Secretary pursuant to section 42 use 254e. 332(a)(1) of such Act; (C) the community is in a location which, by reason of remote- ness, does not permit reasonable access to the types of services described in clauses (A) and (B); and (D) not less than 50 percent of the families to be served in the community are eligible under the eligibility criteria established by the Secretary under paragraph (1); the Head Start program in each such locality shall establish the criteria for eligibility, except that no child residing in such commu- nity whose family is eligible under such eligibility criteria shall, by virtue of such project's eligibility criteria, be denied an opportunity to participate in such program. (b) The Secretary shall not prescribe any fee schedule or otherwise provide for the charging of any fees for participation in Head Start programs, unless such fees are authorized by legislation hereafter enacted. Nothing in this subsection shall be construed to prevent the families of children who participate in Head Start programs and who are willing and able to pay the full cost of such participation from doing so. APPEALS, NOTICE, AND HEARING 42 use 9841. SEC. 646. The Secretary shall prescribe procedures to assure that— (1) special notice of and an opportunity for a timely and expeditious appeal to the Secretary will be provided for an agency or organization which desires to serve as a delegate agency under this subchapter and whose application to the Head Start agency has been wholly or substantially rejected or has not been acted upon within a period of time deemed reasonable by the Secretary, in accordance with regulations which the Secre- tary shall prescribe; (2) financial assistance under this subchapter shall not be suspended, except in emergency situations, unless the recipient agency has been given reasonable notice and opportunity to show cause why such action should not be taken; and (3) financial assistance under this subchapter shall not be terminated, an application for refunding shall not be denied, and
PUBLIC LAW 97-36—AUG. 13, 1981 95 STAT. 605 a suspension of financial assistance shall not be continued for longer than 30 days, unless the recipient has been afforded reasonable notice and opportunity for a full and fair hearing. RECORDS AND AUDITS SEC. 647. (a) Each recipient of financial assistance under this 42 use 9842. subchapter shall keep such records as the Secretary shall prescribe, including records which fully disclose the amount and disposition by such recipient of the proceeds of such financial-assistance, the total cost of the project or undertaking in connection with which such financial assistance is given or used, the amount of that portion of the cost of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit. (b) The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of the recipients that are pertinent to the financial assistance received under this subchapter. TECHNICAL ASSISTANCE AND TRAINING SEC. 648. The Secretary may provide, directly or through grants or 42 use 9843. other arrangements (1) technical assistance to communities in devel- oping, conducting, and administering programs under this sub- chapter; and (2) training for specialized or other personnel needed in connection with Head Start programs. R E S E A R C H , DEMONSTRATION, AND PILOT PROJECTS SEC. 649. (a) The Secretanr may provide financial assistance Grants and through grants or contracts for research, demonstration, or pilot 42"TVCP*^Q44 projects conducted by public or private agencies which are designed to test or Eissist in the development of new approaches or methods that will aid in overcoming special problems or otherwise in further- ing the purposes of this subchapter. (b) The Secretary shall establish an overall plan to govern the approval of research, demonstration, or pilot projects and the use of all research authority under this subchapter. Such plan shall set forth specific objectives to be achieved and priorities among such objectives. ANNOUNCEMENT OF RESEARCH, DEMONSTRATION, AND PILOT PROJECTS CONTRACTS SEC. 650. (a) The Secretary shall make a public announcement 42 use 9845. concerning— (1) the title, purpose, intended completion date, identity of the grantee or contractor, and proposed cost of any grant or contract with a private or non-Federal public agency or organization for any research, demonstration, or pilot project under this sub- chapter; and (2) the results, findings, data, or recommendations made or reported as a result of such activities. (b) The public announcements required by subsection (a)(1) shall be made within 80 days of making such grants or contracts, and the public announcements required by subsection (aX2) shall be made within 90 days of the receipt of such results.
95 STAT. 506 PUBLIC LAW 97-35—AUG. 13, 1981 (c) The Secretary shall take necessary action to assure that all studies, proposals, and data produced or developed with Federal funds employed under this subchapter shall become the property of the United States. (d) The Secretary shall publish summaries of the results of activi- ties carried out pursuant to this subchapter not later than 90 days Report to after the completion thereof. The Secretary shall submit to the congressional appropriate committees of the Congress copies of all such summaries. committees. EVALUATION Grants and SEC. 651. (a) The Secretary shall provide, directly or through grants contracts. or contracts, for the continuing evaluation of programs under this 42 u s e 9846. subchapter, including evaluations that measure and evaluate the impact of programs authorized by this subchapter, in order to determine their effectiveness in achieving stated goals, their impact on related programs, and their structure and mechanisms for deliv- ery of services, including, where appropriate, comparisons with appropriate control groups composed of persons who have not partici- pated in such programs. Evaluations shgdl be conducted by persons not directly involved in the administration of the progr£im or project operation. Ot)) The Secretary shall operate the programs and projects covered by this subchapter in accordance with Head Start performance standards. Any revisions in such standards shall result in standards which are no less comprehensive than those in effect on the date of 42 u s e 2701 the enactment of the Economic Opportunity Amendments of 1978. note. The extent to which such standards have been met shall be consid- ered in deciding whether to renew or supplement financial assistance authorized under this subchapter. (cXD In carrjdng out evaluations under this subchapter, the Secre- tary shall establish working relationships with the faculties of colleges or universities located in the area in which any such evaluation is being conducted, unless there is no such college or university willing and able to participate in the evaluation. For purposes of the preceding sentence, for any single evaluation, areas in which such working relationships are established may not be larger than 3 contiguous States. (2) In carrying out evaluations under this subchapter, the Secretary may require Head Start agencies to provide for independent evsduations. (d) In carrying out evaluations under this subchapter, the Secre- tary shall, whenever feasible, arrange to obtain the specific views of persons participating in and served by programs and projects assisted under this subchapter about such programs and projects. (e) The Secretanr shall publish the results of evaluative research and summaries of evaluations of program and project impact and Report to effectiveness not later than 90 days after the completion thereof. The congressional Secretary shall submit to the appropriate committees of the Congress committees. copies of all such research studies and evaluation summaries. (f) The Secretary shall take the necessary action to assure that all studies, evaluations, proposals, and data produced or developed with assistance under this subchapter shall become the property of the United States. POVERTY UNE 42 u s e 9847. SEC. 652. (a) The Secretary shall revise annually (or at any shorter interval the Secretary deems feasible and desirable) a poverty line
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 507 which, except as provided in section 645, shall be used as a criterion of eligibility for participation in Head Start programs. (b) The revision required by subsection (a) shall be accomplished by multiplying the official poverty line (as defined by the Office of Management and Budget) by the percentage change in the Consumer Price Index during the annual or other interval immediately preced- ing the time at which the revision is made. (c) Revisions required by subsection (a) shall be made and issued not more than 30 days after the date on which the necessary Consumer Price Index data become available. COMPARABILITY OF WAGES SEC. 653. The Secretary shall take such action as may be necessary 42 use 9848. to assure that persons employed in canying out programs financed under this subchapter shall not receive compensation at a rate which is (1) in excess of the average rate of compensation paid in the area where the program is carried out to a substantial number of the persons providing substantially comparable services, or in excess of the average rate of compensation paid to a substantial number of the persons providing substantially comparable services in the area of the person's immediately preceding emplo5mient, whichever is higher; or (2) less than the minimum wage rate prescribed in section 6(a)(1) of the Fair Labor Standards Act of 1938. 29 use 206. NONDISCRIMINATION PROVISIONS SEC. 654. (a) The Secretary shall not provide financial assistance for 42 use 9849. any program, project, or activity under this subchapter unless the grant or contract with respect thereto specifically provides that no person with responsibilities in the operation thereof will discriminate with respect to any such program, project, or activity because of race, creed, color, national origin, sex, political affiliation, or beliefs. (b) No person in the United States shall on the ground of sex be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied emplojrment in connection with any program or activity receiving assistance under this subchapter. The Secretary shall enforce the provisions of the preceding sentence in accordance with section 602 of the Civil Rights Act of 1964. Section 42 use 2000d-i, 603 of such Act shall apply with respect to any action taken by the 2000d-2. Secretary to enforce such sentence. This section shall not be con- strued as affecting any other legal remedy that a person may have if such person is excluded from participation in, denied the benefits of, subjected to discrimination under, or denied employment in connec- tion with, any program, project, or activity receiving assistance under this subchapter. (c) The Secretary shall not provide financial assistance for any program, project, or activity under this subchapter unless the grant or contract relating to the financial assistance specifically provides that no person with responsibilities in the operation of the program, project, or activity will discriminate against any individual because of a handicapping condition in violation of section 504 of the Rehabilita- tion Act of 1973. 29 use 794. UMITATION WITH RESPECT TO CERTAIN UNLAWFUL ACTIVITIES SEC. 655. No individual employed or assigned by any Head Start 42 use 9850. agency or other agency assisted under this subchapter shall, pursu-
95 STAT. 508 PUBLIC LAW 97-35—AUG. 13, 1981 ant to or during the performance of services rendered in connection with any program or activity conducted or assisted under this subchapter by such Head Start agency or such other agency, plan, initiate, participate in, or otherwise aid or assist in the conduct of any unlawful demonstration, rioting, or civil disturbance. POLITICAL ACTIVITIES 42 use 9851. SEC. 656. (a) For purposes of chapter 15 of title 5, United States 5 use 1501 et Code, any agency which assumes responsibility for planning, develop- *^9- ing, and coordinating Head Start programs and receives assistance under this subchapter shall be deemed to be a State or local agency. 5 use 1502. For purposes of clauses (1) and (2) of section 1502(a) of such title, any agency receiving assistance under this subchapter shall be deemed to be a State or local agency. Oi>) Programs assisted under this subchapter shall not be carried on in a manner involving the use of program funds, the provision of services, or the emplojmient or assignment of personnel in a manner supporting or resulting in the identSication of such programs with (1) any partisan or nonpartiseui political activity or any other political activity associated with a candidate, or contending faction or group, in an election for public or party office; (2) any activity to provide voters or prospective voters with transportation to the polls or similar assistance in connection with any such election; or (3) any voter registration activity. The Secretary, after consultation with the Office of Personnel Management, shall issue rules and regulations to provide for the enforcement of this section, which shall include provisions for summary suspension of assistance or other action necessary to permit enforcement on an emergency basis. ADVANCE FUNDING 42 use 9852. SEC. 657. For the purpose of affording adequate notice of funding available under this subchapter, appropriations for carrying out this subchapter are authorized to be included in an appropriation Act for the fiscal year preceding the fiscal year for which they are available for obligation. Follow Through Subchapter C—Follow Through Programs Act. SHORT TITLE 42 use 9801 SEC. 661. This subchapter may be cited as the "Follow Through note. Act". FINANCIAL ASSISTANCE FOR FOLLOW THROUGH PROGRAMS 42 use 9861. SEC. 662. (a) The Secretary of Education (hereinafter in this subchapter referred to as the "Secretary") is authorized to provide financial assistance in the form of grants to local educational agen- cies, combinations of such agencies, and, as provided in subsection (b), any other public or appropriate nonprofit private agencies, organiza- tions, and institutions for the purpose of canying out Follow Through programs focused primarily on children from low-mcome families in kindergarten and primary grades, including such children enrolled in private nonprofit elementary schools, who were previously en- rolled in Head Start or similar programs. Other children in kinder- garten and primary grades, including such other children enrolled in private nonprofit elementary schools, who were previously enrolled in preschool programs of a compensatory nature which received
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 509 Federal financial assistance may participate in such Follow Through programs. (b) Whenever the Secretary determines— (1) that a local educational agency receiving assistance under subsection (a) is unable or unwilling to include in a Follow Through program children enrolled in nonprofit private schools who would otherwise be eligible to participate therein; or (2) that it is otherwise necessary in order to accomplish the purposes of this section; the Secretary may provide financial assistance for the purpose of carrying out a Follow Through program to any other public or appropriate nonprofit private agency, organization, or institution. (c) Programs to be assisted under this section shall provide such comprehensive educational, health, nutritional, social, and other services as will aid in the continued development of children described in subsection (a) to their full potential. Such projects shall provide for the direct participation of the parents of such children in the development, conduct, and overall direction of the program at the local level. If the Secretary determines that participation in the project of children who are not from low-income families will serve to carry out the purposes of this section, the Secretary may provide for the inclusion of such children from non-low-income families, but only to the extent that their participation will not dilute the effectiveness of the services designed for children described in subsection (a). AUTHORIZATION OP APPROPRIATIONS SEC. 668. (aXD There is authorized to be appropriated for carrying 42 use 9862. out the purposes of this subchapter $44,300,000 for fiscal year 1982, $22,150,000 for fiscal year 1983, and $14,767,000 for fiscal year 1984. (2) Funds appropriated under this section for fiscal years 1982 and 1983 shall remedn available for obligation and expenditure during the fiscal year succeeding the fiscal year for which they are appropriated. (b) Financial £issistance extended under this subchapter for a Follow Through program shall not exceed 80 percent of the approved costs of the assisted program or activities, except that the Secretary may approve assistance in excess of such percentage if the Secretary determines, in accordance with regulations establishing objective criteria, that such action is required in furtherance of the purposes of this subchapter. Non-Federal contributions may be in cash or in kind, fairly evEiluated, including plant, equipment, or services. The Secre- tary shall not require non-Federal contributions in excess of 20 percent of the approved costs of programs or activities assisted under this subchapter. (c) No project shall be approved for assistance under this sub- chapter unless the Secretary is satisfied that the services to be provided under such project will be in addition to, and not in substitution for, services previously provided without Federal assist- ance. The requirement imposed by the preceding sentence shall be subject to such regulations as the Secretary may adopt. RESEARCH, DEMONSTRATION, AND PILOT PROJECTS SEC. 664. (a) The Secretary may provide financial assistance 42 use 9863. through grants or contracts for research, demonstration, or pilot projects conducted by public and private agencies which are designed to test or assist in the development of new approaches or methods
95 STAT. 510 PUBLIC LAW 97-35—AUG. 13, 1981 that will aid in overcoming special problems or in otherwise further- ing the purposes of this subchapter. 0)) The Secretary shall establish an overall plan to govern the approval of research, demonstration, or pilot prmects and the use of all research authority under this subchapter. Such plan shall set forth specific objectives to be achieved and priorities among such objectives. ANNOUNCEMENT OF RESEARCH, DEMONSTRATION, AND PILOT PROJECT CONTRACTS 42 u s e 9864. SEC. 665. (a) The Secretary shall make a public announcement concerning— (1) the title, purpose, intended completion date, identity of the grantee or contractor, and proposed cost of any grant or contract with a private or non-Federal public agency or organization for any research, demonstration, or pilot project under this sub- chapter; and (2) the results, findings, data, or recommendations made or reported as a result of such activities. (b) The public announcements required by subsection (a)(1) shall be made not later than 30 days after making such grants or contracts, and the public announcements required by subsection (aX2) shall be made not later than 90 days after the receipt of such results. (c) The Secretary shall take necessary action to assure that all studies, proposals, and data produced or developed with Federal funds employed under this subchapter shall become the property of the United States. Summaries, (d) The Secretary shall publish summaries of the results of activi- submittal to ties carried out pursuant to this subchapter not later than 90 days congressional committees. after the completion thereof The Secretary shall submit to the appropriate committees of the Congress copies of all such summaries. EVALUATION 42 u s e 9865. SEC. 666. (a) The Secretary shall provide, directly or through grants or contracts, for the continuing evaluation of programs under this subchapter, including evaluations that measure and evaluate the impact of programs authorized by this subchapter, in order to determine their effectiveness in achieving stated goals, their impact on related programs, and their structure and mechanism for delivery of services, including, where appropriate, comparisons with appropri- ate control groups composed of persons who have not participated in such programs. Evaluations shall be conducted by persons not directly involved in the administration of the program or project. (b) The Secretary shall develop and publish general standards for evaluation of program and project effectiveness in achieving the objectives of this subchapter. The extent to which such standards have been met shall be considered in deciding whether to renew or supplement financial assistance authorized under this subchapter. (c) In carrying out evaluations under this subchapter, the Secretary shall, whenever feasible, arrange to obtain the specific views of persons participating in and served by programs and projects assisted under this subchapter about such programs and projects. Submittal to (d) The Secretary shall publish the results of evaluative research congressional committees. and summaries of evaluations of program and project impact and effectiveness not later than 90 days after the completion thereof The
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 511 Secretary shall submit to the appropriate committees of the Congress copies of all such research studies and evaluation summaries. (e) The Secretary shall take the necessary action to assure that all studies, evaluations, proposals, and data produced or developed with assistance under this section become the property of the United States. TECHNICAL ASSISTANCE AND TRAINING SEC. 667. The Secretary may provide, directly or through grants or 42 use 9866. other appropriate arrangements (1) technical assistance to Follow Througn programs in developing, conducting, and administering programs under this subchapter; and (2) training for specialized or other personnel which is nei^ed in connection with Follow Through programs. SPECIAL CONDITIONS SEC. 668. (a) Recipients of financial assistance under this sub- 42 use 9867. chapter shall provide maximum employment opportunities for resi- dents of the area to be served, and to parents of children who are participating in projects assisted under this subchapter. (b) Fmancial assistance under this subchapter shall not be suspend- ed for failure to comply with applicable terms and conditions, except in emergency situations, nor shall an application for refunding be denied, unless the recipient agency has been given reasonable notice and opportunity to show cause why such action should not be taken. (c) Fmancial assistance under tnis subchapter shall not be termi- nated for failure to comply with applicable terms and conditions unless the recipient has been afforded reasonable notice and opportu- nity for a full and fair hearing. APPUCABIUTY OF PROVISIONS OF SUBCHAPTER B SEC. 669. The provisions of sections 637 (other than section 637(1)), 42 Use 9868. 653, 654, 655, 656, and 657 shall apply to the administration of tMs subchapter. REPEALER SEC. 670. Effective October 1,1984, the provisions of this subchapter Ante, p. 508. are repealed. ^^F^Jf^K ^ note, 9801 note. Subtitle B—Community Services Block Grant Program ^JJJj^^'^^fock Grant Act. SHORT TITLE SEC. 671. This subtitle may be cited as the "Community Services 42 use 990i Block Grant Act". *^ote. COMMUNITY SERVICES GRANTS AUTHORIZED SEC. 672. (a) The Secretary is authorized to make grants in 42 use 9901. accordance with the provisions of this subtitle, to States to ameliorate the causes of poverty in communities within the State. (b) There is authorized to be appropriated $389,375,000 for the fiscal year 1982 and for each of the 4 succeeding fiscal years to carry out the provisions of this subtitle. DEFINITIONS SEC. 673. For purposes of this subtitle: 42 use 9902.
95 STAT. 512 PUBLIC LAW 97-35--AUG. 13, 1981 (1) The term "eligible entity" means any organization which was officially designated as a community action agency or a conmiunity action program under the provisions of section 210 of 42 use 2790. the Economic Opportunity Act of 1964 forfiscalyear 1981, unless such community action agency or a conmiunity action program lost its designation under section 210 of such Act as a result of a failure to comply with the provisions of such Act. (2) The term "poverty line" means the official poverty line established by the Director of the Office of Management and Budget. The Secretary shall revise the poverty line annually (or at any shorter interval the Secretary deems feasible and desir- able) which shall be used as a criterion of eligibility in commu- nity service block grant programs. The required revision shall be accomplished by multiplying the official poverty line by the percentage change in the Consumer Price Index during the annual or other interval immediately preceding the time at which the revision is made. (3) The term "Secretary" means the Secretary of Health and Human Services. (4) The term "State" means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. STATE ALLOCATIONS 42 use 9903. SEC. 674. (aXD The Secretary shallfi*omthe amount appropriated under section 672 for each fiscal year which remains after— (A) the Secretary makes the apportionment required in subsec- tion (bXD; and (B) the Secretary determines the amount necessary for the purposes of section 681(b); allot to each State an amount which bears the same ratio to such remaining amount as the amount received by the State for fiscal year 42 use 2808. 1981 under section 221 of the Economic Opportunity Act of 1964 bore to the total amount received by all States for fiscal year 1981 under such part, except that no State shall receive less than one quarter of 1 percent of the amount appropriated under section 672 for such fiscal year. (2) For purposes of this subsection, the term "State" does not include Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. (b)(1) The Secretary shall apportion one-half of 1 percent of the amount appropriated under section 672 for each fiscal year on the basis of need among Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. (2) Each jurisdiction to which paragraph (1) applies may receive grants under this subtitle upon an application submitted to the Secretary containing provisions which describe the programs for which assistance is sought under this subtitle, and which are consist- ent with the requirements of section 675. (cXD If, with respect to any State, the Secretary— (A) receives a request from the governing body of an Indian tribe or tribal organization within the State that assistance under this subtitle be made directly to such tribe or organization; and
PUBUC LAW 97-88—AUG. 13,1981 95 STAT. 513 (B) determines that the members of such tribe or tribal organization would be better served by means of grants made directly to provide benefits under this subtitle; the Secretary shall reserve from amounts which would otherwise be allotted to such State under this subtitle for the fiscal year the amount determined under paragraph (2). (2) The Secretary shall reserve for the purpose of paragraph (1) from sums that would otherwise be allotted to such State not less than 100 percent of an amount which bears the same ratio to the State's allotment for the fiscal year involved as the population of all eligible Indians for whom a determination under this paragraph has been made bears to the poi)ulation of all individuals eugible for assistance under this subtitle in such State. (3) The sums reserved by the Secretary on the basis of a determina- tion under this subsection shall be granted to the Indian tribe or tribal organization serving the individuals for whom such a determi- nation has been made. (4) In order for an Indian tribe or tribal organization to be eligible for an awsurd 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 bv r^iuation. (5) The terms Indian tribe and "tribal organization" mean those "Indian tribe," tribes, bands, or other organized groups of Indians recognized in the ^ wfon " State in which they reside or considered by the Secretary of the ^^ Interior to be an Indian tribe or an Indian organization for any purpose. APPUCATIONS AND REQUIREMENTS SEC. 675. (a) Each State desiring to receive an allotment for a fiscal 42 use 9904. year under this subtitle shall submit an appUcation to the Secretary. Each such application shall be in such form as the Secretary shsul require. Each such application shall contain assurances by the chief executive ofQcer of the State that the State will comply with subsec- tion (b) and will meet the conditions enumerated in subsection (c). (b) After the expiration of the first fiscal year in which a State received funds under this subtitle, no funds shall be allotted to such State for any fiscal year under this subtitle unless the legislature of the State conducts public hearings on the proposed use and distribu- tion of funds to be provided under this subtitle 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 agrees to— (1) use the funds available under this subtitle— (A) to provide a range of services and activities having a measurable and potentially major impact on causes of pov- erty in the community or those areas of the community where poverty is a particularly acute problem; (B) to provide activities designed to assist low-income participants including the elderly poor— (i) to secure and retain meaningful employment; (ii) to attain an adequate education; (iii) to make better use of available income; (iv) to obtain and maintain adequate housing and a suitable living environment; (v) to obtain emergency assistance through loans or grants to meet immediate and urgent individual and family needs, including the need for health services,
95 STAT. 514 PUBLIC LAW 97-35—AUG. 13, 1981 nutritious food, housing, and employment-related assistance; (vi) to remove obstacles and solve problems which block the achievement of self-sufficiency; (vii) to achieve greater participation in the affairs of the communitv; and (viii) to make more effective use of other programs related to the purposes of this subtitle; (C) to provide on an emergency basis for the provision of such supplies and services, nutritious foodstuffs, and related services, as may be necessary to counteract conditions of starvation and malnutrition among the poor; (D) to coordinate and establish linkages between govern- mental and other social services programs to assure the effective delivery of such services to low-income individuals; and (E) to encourage the use of entities in the private sector of the community in efforts to ameliorate poverty in the community; (2)(A)(i) use, for fiscal year 1982 only, not less than 90 percent of the funds allotted to the State under section 674 to make grants to use for the purposes described in clause (1) to eligible entities (as defined in section 673(1)) or to organizations serving seasonal or migrant farmworkers; and (ii) use, for fiscal year 1983 and for each subsequent fiscal year, not less than 90 percent of the funds allotted to the State under section 674 to make grants to political subdivisions of the State for the political subdivisions to use for the purposes described in clause (1) directly or to nonprofit private community organiza- tions which have a board which meets the requirements of clause (3), or to migrant and seasonal farm worker organizations; and (B) provide assurances that the State will not expend more than 5 percent of its allotment under section 674 for administra- tive expenses at the State level; (3) provide assurances that, in the case of a community action agency or nonprofit private organization, each board will be constituted so as to assure that (A) one-third of the members of the board are elected public officials, currently holding office, or their representatives, except that if the number of elected officials reasonably available and willing to serve is less than one-third of the membership of the board, membership on the board of appointive public officials may be counted in meeting such one-third requirement; (B) at least one-third of the members are persons chosen in accordance with democratic selection procedures adequate to assure that they are representative of the poor in the area served; and (C) the remainder of the members are officials or members of business, industry, labor, religious, welfare, education, or other msgor groups and interests in the community; (4) give special consideration in the designation of local com- munity action agencies under this subtitle to any community action agency which is receiving funds under any Federal antipo- verty program on the date of the enactment of this Act, except that (A) the State shall, before giving such special consideration, determine that the agency involved meets program and fiscal requirements established by the State; and (B) if there is no such agency because of any change in the assistance furnished to programs for economically disadvantaged persons, the State
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 515 shall give special consideration in the designation of community action agencies to any successor agency which is operated in substantially the same manner as the predecessor agency which did receive funds in the fiscal year preceding the fiscal year for which the determination is made; (5) provide assurances that the State may transfer funds, but not to exceed 5 percent of its allotment under section 674, for the provisions set forth in this subtitle to services under the Older Americans Act of 1965, the Head Start program under sub- 42USC300i chapter B of chapter 8 of subtitle A of this title, or the energy ^o^- crisis intervention program under title XXVI of this Act (relat- of'^QQ^' mg to low-mcome home energy assistance); (6) prohibit any political activities in accordance with subsec- tion (e); (7) prohibit any activities to provide voters and prospective voters with transportation to the polls or provide similar assist- ance in connection with an election or any voter registration activity; (8) provide for coordination between antipoverty programs in each community, where appropriate, with emergency energy crisis intervention programs under title XXVI of this Act (relat- ing to low-income home energy assistance) conducted in such community; (9) provide that fiscal control and fund accounting procedures will be established as may be necessary to assure the proper disbursal of and accounting for Federal funds paid to the State under this subtitle, including procedures for monitoring the assistance provided under this subtitle, and provide that at legist every year each State shall prepare, in accordance with subsec- tion (f), an audit of its expenditures of amounts received under this subtitle and amounts transferred to carry out the purposes of this subtitle; and (10) permit and cooperate with Federal investigations under- taken in accordance with section 679. The Secretary may not prescribe the manner in which the States will comply with the provisions of this subsection. (d)(1) In addition to the requirements of subsection (c), the chief executive officer of each State shall prepare and furnish to the Secretary a plan which contains provisions describing how the State will carry out the assurances contained in subsection (c). The chief executive officer of each State may revise any plan prepared under this paragraph and shall furnish the revised plan to the Secretary. (2) Each plan prepared under paragraph (1) shall be made available for public inspection within the State in such a mgmner as will facilitate review of, and comment on, the plan. (e) For purposes of chapter 15 of title 5, United States Code, any 5 use i50i et nonprofit private organization receiving assistance under this subti- *^9- tie which has responsibility for planning, developing, and coordinat- ing community antipoverty programs shall be deemed to be a State or local agency. For purposes of clauses (1) and (2) of section 1502(a) of such title, any such organization receiving assistance under this 5 use 1502. subtitle shall l>ie deemed to be a State or local agency. (f) Each audit required by subsection (c)(9) shall be conducted by an entity independent of any agency administering activities or services carried out under this subtitle and shall be conducted in accordance with genereilly accepted accounting principles. Within 30 days after the completion of each audit, the chief executive officer of the State
95 STAT. 516 PUBLIC LAW 97-35—AUG. 13, 1981 shall submit a copy of such audit to the legislature of the State and to the Secretary. (g) The State shall repay to the United States amounts found not to have been expended in accordance with this subtitle or the Secretary may offset such amounts against any other amount to which the State is or may become entitled under this subtitle. (h) The Comptroller General of the United States shall, from time to time, evaluate the expenditures by States of grants under this subtitle in order to assure that expenditures are consistent with the provisions of this subtitle and to determine the effectiveness of the State in accomplishing the purposes of this subtitle. ADMINISTRATION Office of SEC. 676. (a) There is established in the Department of Health and Community Human Services an Office of Community Services. The Office shall be Services. Establishment. headed by a Director. 42 u s e 9905. (b) The Secretary shall carry out his functions under this subtitle through the Office of Community Services established in subsection (a). NONDISCRIMINATION PROVISIONS 42 u s e 9906. SEC. 677. (a) No person shall on the ground of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds made available under this subtitle. Any prohibition against discrimination on the basis of age 42 u s e 6101 under the Age Discrimination Act of 1975 or with respect to an note. otherwise qualified handicapped individual as provided in section 504 29 u s e 794. of the Rehabilitation Act of 1973 shall also apply to any such program or activity. Ot>) Whenever the Secretary determines that a State that has received a payment under this subtitle has failed to comply with subsection (a) or an applicable regulation, he shall notify the chief executive officer of the State and shall request him to secure compliance. If within a reasonable period of time, not to exceed 60 days, the chief executive officer fails or refuses to secure compliance, the Secretary is authorized to (1) refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted; (2) exercise the powers and functions provided by title VI 42 u s e 2000d. of the Civil Rights Act of 1964, the Age Discrimination Act of 1975, or section 504 of the Rehabilitation Act of 1973, as may be applicable; or (3) take such other action as may be provided by law. (c) When a matter is referred to the Attorney General pursuant to subsection (b), or whenever he has reason to believe that the State is engaged in a pattern or practice in violation of the provisions of this section, the Attorney General may bring a civil action in any appropriate United States district court for such relief as may be appropriate, including injunctive relief. PAYMENTS TO STATES 42 use 9907. SEC. 678. (a) From its allotment under section 674, the Secretary shall make payments to each State in accordance with section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213), for use under this subtitle.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 517 (b) Pa5maents to a State from its allotment for any fiscal year shall be expended by the State in such fiscal year or in the succeeding fiscal year. WITHHOLDING SEC. 679. (aXD The Secretary shall, eifter adequate notice and an Notice and opportunity for a hearing conducted within the affected State, hearing. withhold funds from any State which does not utilize its allotment 42 u s e 9908. substantially in accordance with the provisions of this subtitle and the assurances such State provided under section 675. (2) The Secretary shall respond in an expeditious and speedy manner to complaints of a substantial or serious nature that a State has failed to use funds in accordcmce with the provisions of this subtitle or the assurances provided by the State under section 675. For purposes of this paragraph, a violation of any one of the assurances contained in section 675(c) that constitutes a disregard of that assurance shall be considered a serious complaint. (b)(1) The Secretary shall conduct in several States in each fiscal investigations. year investigations of the use of funds received by the States under this subtitle in order to evaluate compliance with the provisions of this subtitle. (2) Whenever the Secretary determines that there is a pattern of complaints from any State in any fiscal year, he shall conduct an investigation of the use of funds received under this subtitle by such State in order to ensure compliance with the provisions of this subtitle. (3) The Comptroller General of the United States may conduct an investigation of the use of funds received under this subtitle by a State in order to ensure compliance with the provisions of this subtitle. (c) Pursuant to an investigation conducted under subsection (b), a State shall make appropriate books, documents, papers, and records available to the Secretary or the Comptroller General of the United States, or any of their duly authorized representatives, for examina- tion, copying, or mechanical reproduction on or off the premises of the appropriate entity upon a reasonable request therefor. (d) In conducting any investigation under subsection (b), the Secre- tary may not request any information not readily available to such State or require that any information be compiled, collected, or transmitted in any new form not already available. UMITATION ON USE OF GRANTS FOR CONSTRUCTION SEC. 680. (a) Except as provided in subsection (b), grants made 42 use 9909. under this subtitle (other than amounts made available under section 681(b)) may not be used by the State, or by any other person with which the State makes arrangements to carry out the purposes of this subtitle, for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than low-cost resi- dential weatherization or other energy-related home repairs) of any building or other facility. (b) The Secretary may waive the limitation contained in subsection (a) upon the State's request for such a waiver if he finds that the request describes extraordinary circumstances to justify the pur- chase of land or the construction of facilities (or the making of permanent improvements) and that permitting the waiver will con- tribute to the State's ability to carry out the purposes of this subtitle.
95 STAT. 518 PUBLIC LAW 97-35—AUG. 13, 1981 DISCRETIONARY AUTHORITY OF SECRETARY 42 use 9910. SEC. 681. (a) The Secretary is authorized, either directly or through grants, loans, or ^arantees to States and public and other organiza- tions and agencies, or contracts or jointly financed cooperative arrangements with States and public and other organizations and agencies, to provide for— (1) training related to the purposes of this subtitle; and (2) ongoing activities of national or regional significance re- lated to the purposes of this subtitle, including special emphasis programs for— (A) special programs of assistance to private, locally initi- ated communit3r development programs which sponsor en- terprises providing emplo3mient and business development opportunities for low-income residents of the area; (B) Rural Development Loan Fund revolving loans and guarantees under subchapter A of chapter 8 of subtitle A of this title; (C) community development credit union programs admin- istered under subchapter A of chapter 8 of subtitle A of this Ante, p. 489. title; (D) technical assistance and training programs in rural housing and community facilities development; (E) assistance for migrants and seasonal farmworkers; and (F) national or regional programs designed to provide recreational activities for low-income youth. (b) Of the amounts appropriated under section 672(b) for any fiscal year, not more than 9 percent of such amounts shall be available to the Secretary for purposes of carr3ang out this section and subchapter A of chapter 8 of subtitle A of this title. TRANSITION PROVISIONS 42 use 9911. SEC. 682. (a)(1) The purpose of this section is to permit, for fiscal year 1982 only, States to choose to operate programs under the block grant established by this subtitle or to have the Secretary operate programs under the provisions of law repealed by section 683(a). (2) The Secretary shall carry out the provisions of this section through the Office of Community Services established in section 676(a). (b)(1) Notwithstanding the provisions of section 683(a) or any other provision of law, a State may, for fiscal year 1982 only, make a determination that the State chooses not to operate programs under the block grant established by this subtitle. If the State makes such a determination, the State's allotment under section 674 shall be used within the State by the Secretary to carry out programs (in accord- ance with paragraph (4)) under the provisions of law in effect on September 30,1981, but repealed by section 683(a). (2) The provisions of paragraph (1) apply to the provisions of law referred to in such paragraph, regardless of whether there is a specific termination provision or other provision of law repealing or otherwise terminating any program subject to this Act. (3) Each State which, pursuant to paragraph (1), determines to have the Secretary operate programs under the provisions of law in effect on September 30, 1981, but repealed by section 683(a), shall give notice to the Secretary of such determination. Such notice shall be submitted to the Secretary prior to the beginning of the first quarter of fiscal year 1982 and at least 30 days before the beginning of any
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 519 other quarter during such fiscal year. For purposes of this section, the quarters for fiscal year 1982 shall commence on October 1, January 1, April 1, and July 1 of fiscal year 1982. (4) In any case in which the Secretary carries out programs under paragraph (1), the Secretary shall provide for the carrying out of such programs by making grants for such purpose to eligible entities (as defined in section 673(1)). (c) The Secretary shall provide such assistemce to the States as the States may require in order to carry out the provisions of this section. (d) The Secretary may reserve not more than 5 percent of any State's allotment for administration of such State's programs under the block grant established by this subtitle, if such State has made a determination that the State chooses not to operate programs under the block grant established by this subtitle, and the Secretary is carrying out such State's programs under the provisions of law in effect on September 30,1981. (e) Upon the enactment of this Act, the Director of the Office of Management and Budget is authorized to provide for termination of the affairs of the C!ommunity Services Administration. He shall provide for the transfer or other disposition of personnel, assets, liabilities, grants, contracts, property, records, and unexpended bal- ances of appropriations, authorizations, allocations, and other funds held, used, arising from, available to, or to be made available in connection with implementation of the authorities terminated by section 683(a) as necessary to effectuate the purposes of this subtitle. REPEALER; REAUTHORIZATION PROVISIONS; TECHNICAL AND CONFORMING PROVISIONS SEC. 683. (a) Effective October 1, 1981, the Economic Opportunity 42 u s e 9912. Act of 1964, other than titles VIII and X of such Act, is repealed. Repeal. (b) There is authorized to be appropriated such sums as may be 42 u s e 2701. necessary for each of the fiscal years 1982,1983, and 1984, to carry out title VIII of the Economic Opportunity Act of 1964. 42 use 2991. (c)(1) Any reference in any provision of law to the poverty line set forth in section 624 of the Economic Opportunity Act of 1964 shall be 42 use 297ic. construed to be a reference to the poverty line defined in section 673(2) of this Act. (2) Any reference in any provision of law to any community action agency designated under title II of the Economic Opportunity Act of 1964 shall be construed to be a reference to private nonprofit community organizations eligible to receive funds under this subtitle. (3) No action or other proceeding commenced by or against any officer in the official capacity of such individual as an officer of any agency administering the Act repealed by subsection (a) of this section shall abate by reason of the enactment of this Act. TITLE VII—EMPLOYMENT PROGRAMS COMPREHENSIVE EMPLOYMENT AND TRAINING ACT SEC. 701. (a) Section 112 of the Comprehensive Employment and Training Act is amended to read as follows: 29 u s e 822. " A U T H O R I Z A T I O N O F APPROPRIATIONS "SEC. 112. (a) There are authorized to be appropriated for fiscal year 1982 for the purpose of carrying out this Act— -194 O—82 35:QL3
95 STAT. 520 PUBLIC LAW 97-35—AUG. 13, 1981 29 use 841, 846, "(1) $1,430,775,000 for carrying out parts A, B, and C of title 11; 852 "(2) $219,015,000 for carrying out titles III and V, of which not 29 use 871,891. jj^^j.^ ^j^g^^ ^3 million may be transferred to the National Occupa- tional Information Coordinating Committee established pursu- ant to section 161(b) of the Vocational Education Act of 1963 for purposes described in section 315 of this Act; 29 use 893. "(3) $576,200,000 for carrying out part A of title IV; 29 use 923. "(4) $628,263,000 for carrying out part B of title IV; 29 use 942. "(5) $766,100,000 for carrying out part C of title IV; 29 use 981. "(6) $274,700,000 for carrying out title VII; and "(7) $75,462,000 for the expenses of the Department of Labor in administering this Act. "(bXD For the purpose of affording adequate notice of funding available under this Act, appropriations under this Act are author- ized to be included in an appropriation Act for the fiscal year preceding the fiscal year for which they are first available for obligation. "(2) In order to effect a transition to the advance funding method of timing appropriation action, the provisions of this subsection shall apply notwithstanding that its initial application will result in the enactment in the same year (whether in the same appropriation Act or otherwise) of two separate appropriations, one for the then current fiscal year and one for the succeeding fiscal year.". 29 use 842. (b) The matter preceding clause (i) of section 202(aX2XA) of the Act is amended by striking out "Eighty-five percent" and inserting in lieu thereof "Eighty-six and one-half percent". (c) Section 202 of the Comprehensive Employment and Training Act is amended by adding the following subsection at the end thereof: "(h) Notwithsteinding the provisions of subsections (b), (c), (d), and (e) of this section, not more than 10 y2 percent of the amounts available for this title shall be available for the purposes specified in such subsections. The Governor of each State may in his own discretion determine the amount of funds to be used for each of the functions specified in such subsections but not to exceed the amounts 29 use 909. (dXD Section '433(aXl) of the Comprehensive Employment and Training Act is amended by striking out "75" and inserting in lieu thereof ^85". 29 use 912. (2) Section 436(aX2) of such Act is amended by striking out ", but services to youth under that title shall not be reduced because of the availability of financial assistance under this subpart". (eXD Title IV of the Comprehensive Employment and Training Act is amended by inserting after section 402 the following new section: "TRANSFERABILITY OF FUNDS 29 use 892a. "SEC. 403. (a) Twenty p r c e n t of the funds available to a prime 29 use 893. sponsor in fiscal year 1982 to carry out part A of this title may, at the prime sponsor's discretion, be used in accordance with the provisions 29 use 942. of part C and 20 percent of the funds available to a prime sponsor in fiscal year 1982 to carry out part C of this title may, at the prime sponsor's discretion, be used in accordance with the provisions of part A. "(b) Funds available to a prime sponsor under subpart 2 of part A of 29 use 899. this title may, at the prime sponsor's discretion, be used in accord- ance with the provisions of subpart 3 of part A of this title. Any funds allocated under subpart 2 of part A of this title which are reallocated 29 use 818. by the Secretary pursuant to section 108 may, in the Secretary's
PUBLIC LAW 97-35—AUG. 13,1981 95 STAT. 521 discretion, be allocated for use in accordance with the provisions of subpart 3 of part A of this title.". 29 use 907. (2) The table of contents of such Act is amended by inserting after the item pertaining to section 402 the following new item: "403. Transferability of funds.". (f) Section 702 of the Comprehensive Employment and Training Act 29 use 982. is amended— (1) by striking out "Eighty-five" in subsection (bXD and insert- ing in lieu thereof "Ninety-five"; and (2) by striking out paragraph (2) and inserting in lieu thereof the following: "(2) Funds available to prime sponsors under this title may be used to promote coordination with economic development activities sup- ported by Federal, State, or local funds. Funds used for such coordi- nated activities shall not be taken into account in the computation of cost per participant or cost per placement for purposes of program evaluation.". (g) If, during the second session of the 97th Congress, neither the 29 use 822 note. House of Representatives nor the Senate have passed legislation replacing or amending the Comprehensive Emplo3mient and Train- ing Act by September 10, 1982, the provisions of section 112 of that Act (relating to authorization of appropriations) applicable to fiscal ^f^te, p. 519. 1982 shall be applicable tofiscal1983. THE WAGNER-PEYSER ACT SEC. 702. Section 5(b) of the Act of June 6,1933 (commonly known as the Wagner-Peyser Act), is amended by inserting before the period 29 use 49d. at the end thereof a comma and the following: %ut not to exceed $677,800,000 in the fiscal year beginning October 1, 1981. For pur- poses of this subsection, the term 'proper and efficient administration of its public employment offices' sh^dl mean only such functions as are necessary to carry out the provisions of this Act and shall not include functions authorized or required under the Internal Revenue Code of 1954, the Immigration and Nationality Act, or chapter 41 of 26 use l et seq.; title 38, United States Code.". 8 use uoi et 38 u s e 2001 et TITLE VIII—SCHOOL LUNCH AND CHILD seq. NUTRITION PROGRAMS CHANGES IN REIMBURSEMENT FOR SCHOOL LUNCHES AND BREAKFASTS SEC. 801. (a) Section 4 of the National School Lunch Act is 42 use 1753. amended— (1) by inserting "(a)" after "SEC. 4."; (2) in subsection (a) (as so designated), by striking out the second sentence; and (3) by adding at the end thereof the following new subsection: "Ot>Xl) The Secretary shall make food assistance pajnnents to each State educational agency each fiscal year, at such times as the Secretarj^ may determine, from the sums appropriated for such purpose, m a total amount equal to the product obtained by multi- plying— "(A) the number of lunches (consisting of a combination of foods which meet the minimum nutritional requirements pre- scribed by the Secretsiry under section 9(a) of this Act) served
95 STAT. 522 PUBLIC LAW 97-35—AUG. 13, 1981 during such fiscal year in schools in such State which participate in the school lunch program under this Act under agreements with such State educational agency; by "(B) the national average lunch pa5mient prescribed in para- graph (2) of this subsection. "(2) The national average lunch payment for each lunch served shall be 10.5 cents (as adjusted pursuant to section 11(a) of this Act) except that for each lunch served in school food authorities in which 60 percent or more of the lunches served in the school lunch program during the second preceding school year were served free or at a reduced-price, the national average lunch pajnnent shall be 2 cents more.". 42 use 1759a. (b) Section 11(a) of the National School Lunch Act is amended— (1) by inserting "(1)" after "SEC. 11. (a)"; (2) in the third sentence, by striking out "(1)" and inserting in lieu thereof "(A)" and by striking out "(2)" and inserting in lieu thereof "(B)"; and (8) by striking out the fifth sentence and all that follows through the end of the subsection and inserting in lieu thereof the following: "(2) The special-assistance factor prescribed by the Secretary for free lunches shall be 98.75 cents and the special-assistance factor for reduced-price lunches shall be 40 cents less than the special- assistance factor for free lunches. "(3)(A) The Secretary shall prescribe on July 1, 1982, and on each subsequent July 1, an annual adjustment in the following: "(i) The national average payment rates for lunches (as estab- Ante, p. 521. lished Under section 4 of this Act). "(ii) The special assistance factor for lunches (as established under paragraph (2) of this subsection). "(iii) The national average payment rates for breakfasts (as ^"/^- established under section 4(b) of the Child Nutrition Act of 1966). "(iv) The national average pa5nnent rates for supplements (as Post, p. 528. established under section 17(c) of this Act). "(B) The annual adjustment under this paragraph shall reflect changes in the cost of operating meal programs under this Act and the Child Nutrition Act of 1966, as indicated by the change in the series for food away from home of the Consumer Price Index for all Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor. Each annual adjustment shall reflect the changes in the series for food away from home for the most recent 12-month period for which such data are available. The adjustments made under this paragraph shall be computed to the nearest one- fourth cent.". 42 use 1773. (c)(1) Section 4(b)(1) of the Child Nutrition Act of 1966 is amended to read as follows: "(b)(lXA) The Secretary shall make breakfast assistance payments to each State educational agency each fiscal year, at such times as the Secretary may determine, from the sums appropriated for such purpose, in an amount equal to the product obtained by multi- plying— "(i) the number of breakfasts served during such fiscal year to children in schools in such States which participate in the school breakfast program under agreements with such State educa- tional Eigency; by "(ii) the national average breakfast payment for free break- fasts, for reduced-price breakfasts, or for breakfasts served to
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 523 children not eligible for free or reduced-price meals, as appropri- ate, 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), TTie national average payment for each reduced-price Ante, p. 522. breakfast shall be one-half of the nationsd 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 pajmaent for a free breaWast and the national average pajnnent 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 reduced- price 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 nutri- tional requirements prescribed by the Secretary under subsection (e) of this section.". (2) Section 4(bX2) 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 use 1773. read £is 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 eligibil- ity 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.".
95 STAT. 524 PUBLIC LAW 97-35—AUG. 13, 1981 REDUCTION IN COMMODITY ASSISTANCE FOR LUNCHES SEC. 802. The first sentence of section 6(e) of the National School 42 use 1755. 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 EUGIBILITY GUIDEUNES 42 use 1758. SEC. 803. (a) Section 9(b) of the National School Lunch Act is amended— (1) by amending paragraph (1) to read as follows: "(IXA) 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 use 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 Manage- ment 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 einnual 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 follow- ing new paragraphs: "(2)(A) Following the determination by the Secretary under para- graph (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 reduced- price 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
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 525 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 descrip- tive 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 appro- priate 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 eligibil- ity 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 family- size 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 42 use 1758. 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 reduced- price lunch under this Act unless— "(A) appropriate documentation, as prescribed by the Secre- tary, of the income of such household has been provided to the appropriate local school food authority; or (B) documentation showing that the household is participat- ing 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 Study. Agriculture shall conduct a pilot study to verify the data submitted l^^Y^ ^^^^ on a sample of applications for free and reduced-price meals. In note. 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. 526 PUBLIC LAW 97-35—AUG. 13, 1981 current status of household members who are recipients of public assistance, unemplojmient insurance documents, and written state- ments from employers, as a condition for receipt of free or reduced- price meals. 42 use 1758 (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 42 use 1758. 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 applica- tions and make determinations using such applications. REVISION OF STATE REVENUE MATCHING REQUIREMENTS 42 use 1756. SEC. 804. Section 7 of the National School Lunch Act is amended to read as follows: 42 use 1753. "SEC. 7. (aXD 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 chil- dren in furtherance of the school lunch program authorized under this Act. For any school year, such pajnnents 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 ex- penses 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 require- ment 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 pri- vate 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.".
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 u s e 1774. NUTRITION EDUCATION AND TRAINING PROGRAM SEC. 806. The second sentence of section 19(jX2) of the Child Nutrition Act of 1966 is amended to read as follows: "There is 42 use 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 use 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 use 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 prc^am 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(dX6) of the National School Lunch Act is 42 use 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 use 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 use I76i. (1) in subsection (aXl)— (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 govern- ments shall be eligible for reimbursement for meals served in programs under this section only if such programs are operated directly by such governments.".
95 STAT. 528 PUBLIC LAW 97-35—AUG. 13, 1981 REVISION OF CHILD CARE FOOD PROGRAM 42 use 1766. 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: "Reim- bursement 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: "(cXD For purposes of this section, the national average pa5anent rate for free lunches and suppers, the national average pa5mient rate for reduced-price lunches and suppers, and the national average pajnnent rate for paid lunches and suppers shall be the same as the national average pa3nnent rates for free lunches, reduced-price lunches, and paid lunches, respectively, under sections 4 and 11 of f2 use 1753, 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 reduced- price breakfasts, and the national average paj^ment rate for paid breakfasts shall be the same as the national average payment rates for free breakfasts, reduced-price breakfasts, and paid breakfasts, Ante, p. 522. 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 pajnnent 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 pajnnent rate for paid supple- ments shall be 2.75 cents (as adjusted pursuant to section 11(a) of this Act). "(4) Determinations with regard to eligibility for free and reduced- price meals and supplements shall be made in accordance with the income eligibility guidelines for free lunches and reduced-price 42 use 1758. 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 disburse- ment 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-
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 para- graphs (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 subpara- graph 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 use 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 use 1758. middle school".
95 STAT. 530 PUBLIC LAW 97-35—AUG. 13, 1981 STATE PLAN REQUIREMENTS 42 use 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 use 1762a. 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 Ante, p. 524. of donated foods established under section 6(e) of this Act and the 42 use 1753. 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 require- ments 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.". 42 use 1759a. (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 special- assistance payments under this section. Such schools shall serve meals free to children who meet the eligibility requirements for free Ante, p. 524. meals under section 9(b) of this Act, and shall serve meals at a reduced price, not exceeding the price specified in section 9(bX3) of this Act, to children meeting the eligibility requirements for reduced- price 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.". 42 use 1772. (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.". 42 use 1760. (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."
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 531 STATE ADMINISTRATIVE EXPENSES SEC. 814. (a) Section 7(aX2) of the Child Nutrition Act of 1966 is 42 use 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 use 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 use 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 use 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.". UMITATIONS ON SECRETARY'S AUTHORITY TO DIRECTLY ADMINISTER PROGRAMS SEC. 817. (a) Section 10 of the National School Lunch Act is 42 use 1759. amended to read as follows: " D I S B U R S E M E N T TO SCHOOLS B Y T H E 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 Ot>)). 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.
95 STAT. 532 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 educa- tional agency.". 42 use 1761. (b) Section 18 of the National School Lunch Act is further amended by striking out subsection (i). 42 use 1766. (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. 42 use 1773 (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. "SEC. 5, (a) The Secretary shall withhold funds payable to a State 42 use 1774. under this Act and disburse the funds directly to schools or institu- tions 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 educa- tional agency.". 42 use 1788. (f) Section 19(d) of the Child Nutrition Act of 1966 is amended by striking out paragraph (6). COST SAVINGS REVISIONS BY THE SECRETARY SEC. 818. As soon as possible after the date of the enactment of this Act, the Secretary of Agriculture shall review regulations promul- 42 use 1779. gated 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 accom- plished at the local level in the operation of meal programs under the 42 use 1751 National School Lunch Act and the Child Nutrition Act of 1966 note, 1771 note.
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 42 use I759a. 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 42 use 1773. striking out "financing the costs o f in the first sentence. (c) Section 12 of the National School Lunch Act is amended— 42 use 1760. (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), respec- tively; and (2) by striking out the second sentence of subsection (h). (d) Section 8 of the National School Lunch Act is amended— 42 use 1757. (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 42 use 1776. striking out "3, 4, and 5" in subsections (aXD, (aX2), and (b) and inserting in lieu thereof "3 and 4". (f) Section 11(a) of the Child Nutrition Act of 1966 is amended by 42 use 1780. 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 amendied in the 42 use 1753. first sentence by striking out", excluding the sum specified in section 5,". (h) Section 6(aX2) of the National School Lunch Act is amended— 42 use 1755. (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 42 use 1763. 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(aX4) of the Older Americans Act of 1965 (42 U.S.C. 3045(aX4)) or for cash payments in lieu of such donations under section 707(dXl) of such Act (42 U.S.C. 3045f(dXl))" in the first sentence of subsection (c) and inserting in lieu thereof "section 311(aX4) of the Older Americans Act of 1965 (42 U.S.C. 303(KaX4)) or for cash payments in lieu of such 42 use 3030a.
95 STAT. 534 PUBLIC LAW 97-35—AUG. 13, 1981 donations under section SlKcXD of such Act (42 U.S.C. 42 u s e 3030a. 3030(cXl))". (k) The second sentence of section 17(fKl) of the National School 42 use 1766. Lunch Act is amended by striking out "financing the cost of. EFFECTIVE DATES AND REPEALER 42 use 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(dX3) 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(aX2) 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(aXl), 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(dXl) pertaining to the limitation on the number of meals for which reimburse- ment may be made shall take effect as provided under paragraph (1) of this subsection; and (C) the amendment made by section 810(dX3) which re- duces 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—
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 535 (1) by striking out subsection (a) of section 201 effective 94 Stat. 2599. September 1, 1981, or the first day of the first month following 42 u s e 1753 note. the month in which this Act is enacted, whichever is earlier; (2) by striking out subsection (a) of section 202 effective July 1, 94 Stat. 2600. 1981; and 42 u s e 1755 note. (3) by striking out subsections (a) and (b) of section 203 effective 94 Stat. 2600. on the date of the enactment of this Act. 42 u s e 1758 (c) Not later than 60 da^s after the date of the enactment of this note. Act, the Secretary of Agriculture shall promulgate regulations to Regulations. 42 u s e 1753 implement the amendments made by this title. 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 use 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 use 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 subsec- tion (a), at least $3,000,000 shall be made available for allotments under section 1902(b). "ALLOTMENTS "SEC. 1902. (aXD From the amounts appropriated under section 42 use 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 use 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 use 247b-i, "(E) Section 314(d). 247b-2. va-./ w^Kxwu WX-.VW. 42 u s e 246. -194 0—82 36 : QL3
95 STAT. 536 PUBLIC LAW 97-35—AUG. 13, 1981 42 use 255. "(F) Section 839(a). 42 use "(G) Sections 1202,1203, and 1204. 300d 300d 3. 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 shedl submit to the Secretary a plan for such fiscal year which meets such criteria as the Secretary may prescribe. "Indian tribe," "(5) The terms 'Indian tribe' and 'tribal organization' have the and "tribal same meaning given such terms in section 4(b) and section 4(c) of the ol^^^ar^A Knv> 25 use 450b. 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 allot- ment 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
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. (aXD For each fiscal year, the Secretary shall make 42 use 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 pa5mient is so reduced shall be available for pa3maent 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 pajnnent and shall be deemed to have been paid to the State. "USE OP ALLOTMENTS "SEC. 1904. (aXD Except as provided in subsections (b) and (c), 42USC300w-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, hjrpertension. "(C) Community based programs for the purpose of demon- strating 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 adoles- cents, 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 use I395x. where the services of such agencies are not available. Amounts
95 STAT. 538 PUBLIC LAW 97-35—AUG. 13, 1981 provided for such agencies may not be used for the direct provision of health services. "(F) FeasibiUty studies and planning for emergency medical services systems and the establishment, expeuision, and improve- ment 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 perma- nently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment, "(4) satisfy any requirement for the expenditure of non- Federal 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 (aXlXE), 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 einy fiscal year for use by the State under parts B and C of this title and title V of the Social ^o^hEnqm' ^^^ Security Act in such fiscal year £is follows: At any time in the first use 701. 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 use 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 com- plied with the provisions of subsection (b) and that the State will meet the requirements of subsection (c).
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 legisla- ture 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 pro- grams 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 £uiy period will be so used as to supplement and increase the level of State, local, £md 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 compli- ance 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 £uiy Federal or other public
95 STAT. 540 PUBLIC LAW 97-35-AUG. 13, 1981 agency) during development of the description and after its transmit- tal. 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 recommen- dation under paragraph (1). "REPORTS AND AUDITS 42USC300W-5. "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), i "(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 pay- ments 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. Notice and "(3) Each State shall, after being provided by the Secretary with hearing. 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
PUBLIC LAW 97-35—AUG. 13,1981 95 STAT. 541 amounts against the amount of any allotment to which the State is or may become entitled imder this part. (4) The State shall make copies of the reports and audits required Public by this section available for public inspection within the State. inspection. "(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 provi- sions 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 Report to Congress on the activities of the States that have received funds Congress. 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 Post, p. 753 shall not apply with respect to audits of funds allotted under this part. "WITHHOLDING "SEC. 1907. (aXD 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 u s e 300W-6. accordance with the requirements of this part or the certification provided under section 1905. The Secretary shall withhold such fimds 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 investiga- tion concerning whether the State has used its allotment in accord- ance 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. "(bXl) 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 £illotment 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, copjdng, or mechanical reproduction on or off the premises of the appropriate entity upon a reasonable request therefor. "(dXD 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
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 use 300W-7. "SEC. 1908. (aXD For the purpose of applying the prohibitions against discrimination on the basis of age under the Age Discrimina- 42 use 6101 tion Act of 1975, on the basis of handicap under section 504 of the 29 use 794 Rehabilitation Act of 1973, on the basis of sex under title IX of the 20 use 1681 Education Amendments of 1972, or on the basis of race, color, or 42 use 2000d. 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 (aXl), with subsection (aX2), or with an applicable regula- tion (including one prescribed to carry out subsection (aX2)), 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 recom- mendation 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 (bXD, 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 (aXl) or in violation of subsection (aX2), the Attorney General may bring a civil action in any appropri- ate district court of the United States for such relief as may be appropriate, including injunctive relief. "CRIMINAL PENALTY FOR FALSE STATEMENTS 42 use 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.
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 use 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. (aXD The Secretary may use not more than 1 percent of 42 use 300x-i. 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 informa- tion, 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, 94 Stat. 3166. 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 42 USC 2689 the total amount appropriated for fiscal year 1980 for the provisions ^°^^- of law referred to in subparagraphs (C) and (D) of paragraph (2). ^^ f*^^- l^^f- "(2) The provisions of law referred to in paragraph (1) are the ^otY 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 4571. 4578.
95 STAT. 544 PUBLIC LAW 97-35—AUG. 13, 1981 "(D) Sections 409 and 410 of the Drug Abuse Prevention, 21 use 1176, Treatment, and Rehabilitation Act. il'^'^- "(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 (bX2) bore to the total amount provided or allotted for such fiscal year by the Secretary to the State £ind 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 fiscEil 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. "Indian tribe," "(5) The terms Indian tribe' and 'tribal organization' have the and "tribal same meaning given such terms in section 4(b) and section 4(c) of the °^t^u^AKm^ 25 use 450b. 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 allot- ment 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
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. (aXD For each fiscal year, the Secretary shall make 42 use 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 pajonents 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 pa3mient is so reduced shall be available for pa3nnent by the Secretary of the costs incurred in furnishing the supplies or equipment or in detailing the personnel, on which the reduction of the pajnnent 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 use 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 preven- tion, 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 appro- priate 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 cur- rently underserved in the State. "(v) Coordination of mental health and health care serv- ices provided within health care centers.
95 STAT. 546 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 hospi- tal 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 perma- nently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment, "(4) satisfy any requirement for the expenditure of non- Federal 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 canying 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 Ante, p. 535, Security Act in such fiscal year as follows: At any time in the first 42* n'<?r 7m three quarters of the fiscal year a State may transfer not more than 3 use 701. 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 use 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 com- plied 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
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 547 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 42 use 2689 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 geo- graphic area (hereinafter in this section referred to as a inental health service area'), with special attention to indi- viduals 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 appro- priate 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 chron- ically 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 appropri- ateness of such admission, and "(E) consultation and education services. "(5) The State agrees to establish reasonable criteria to evalu- ate 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 obli- 94 stat. 1564. gated all of the funds appropriated for such Acts under 42 use 9401 Public Law 96-536 bore to the funds which would have been gj It^t 3166 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. 548 PUBLIC LAW 97-35—AUG. 13, 1981 42 use 4571, Act of 1970 and sections 409 and 410 of the Drug Abuse 21 use 1176 Prevention, Treatment, and Rehabilitation Act. 1177 ' "(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 42 use 2689 Health Centers Act and the Mental Health Systems Act if ?564' ^^ ^^^^ **^® Secretary had obligated all of the funds appropriated for 42 use 9401 ^^*^^ ^^^ under Public Law 96-536. note. "(B) The State agrees to use 95 percent of the funds allotted to 94 Stat. 3166. 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.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 549 "(13) That the State shall develop and implement arrange- ments, 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 compli- ance 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 transmit- tal. 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 recommen- dation 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 use 300x-5. annual reports on its activities under this part. Such reports shall be in such form and contain such information as the Secretary deter- mines (after consultation with the States and the Comptroller Gen- eral) 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(cX10), (2) to secure a descrip- tion 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.
95 STAT. 550 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 pay- ments 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 provi- sions 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 Reconcili- Post, p. 753. ation Act of 1981 shall not apply with respect to the audit of funds allotted under this part. "WITHHOLDING 42 use 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 investiga- tion concerning whether the State has used its allotment in accord- ance 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.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 551 "(bXD 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, cop3dng, or mechanical reproduction on or off the premises of the appropriate entity upon a reasonable request therefor. "(dXD 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. (aXD For the purpose of applying the prohibitions 42 use 300x-7. against discrimination on the basis of ajge under the Age Discrimina- tion Act of 1975, on the basis of handicap under section 504 of the 42 use 6ioi Rehabilitation Act of 1973, on the basis of sex under title IX of the gg^use 794 Education Amendments of 1972, or on the basis of race, color, or 20 use 1681 national origin under title VI of the Civil Rights Act of 1964, 42USe2000d. 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 shsill 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 pajnnent from an allotment to a State under section 1912, has failed to comply with a provision of law referred to in subsection (aXD, with subsection (aX2), or with an applicable regula- tion (including one prescribed to carry out subsection (aX2)), 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 recom- mendation 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 (bXD, 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
95 STAT. 552 PUBLIC LAW 97-35—AUG. 13, 1981 of law referred to in subsection (aXD or in violation of subsection (aX2), the Attorney General may bring a civil action in any appropri- ate district court of the United States for such relief as may be appropriate, including injunctive relief. "CRIMINAL PENALTY FOR FALSE STATEMENTS 42 use 300X-8. "SEC. 1919. Whoever— "(1) knowingly and willfuUjj^ 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 thM 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 pajrment either in a greater amount than is due or when no such pa3maent is authorized, shall be fined not more than $25,000 or imprisoned for not more than five years, or both. "TRANSITION PROVISION 42 use 300X-9. "SEC. 1920. If at the request of a State the Secretary uses the allotment of the State during the transition period prescribed by title Post, p. 753. XVII of the Omnibus Budget Reconciliation Act of 1981 for grants under this part, the Secretary shall make the grants in accordance with the requirements of paragraphs (6), (7), and (8) of section 1915(c). The Secretary shsdl deduct from the allotment of the State the amount the Secretary (after consultation with the State) requires to fund such programs.'. "PART C—PRIMARY CARE BLOCK GRANTS "PLANNING GRANTS 42 use 300y. "SEC. 1921. (a) The Secretary may make grants to any State to undertake planning and other administrative activities to enable the State to administer allotments provided to it under this part. The amount of any grant to a State shall be determined by the Secretary but may not exceed $150,000. "(b) No grant may be made under subsection (a) unless an applica- tion therefore is submitted to, and approved by, the Secretary. Such an application shall be submitted in such form and manner and shall contain such information as the Secretary shall prescribe. "(c) For grants under subsection (a), there are authorized to be appropriated $2,500,000 for fiscal year 1982. "AUTHORIZATION OF APPROPRIATIONS 42 use 300y-l. "SEC. 1922. For allotments under section 1924 and for grants under section 330, there is authorized to be appropriated $302,500,000 for fiscal year 1983, and $327,000,000 for fiscal year 1984. 42 u s e 254c. "GRANTS UNDER SECTION 330 42 use 300y-2. SEC. 1923, If a State does not submit an application for an allotment under section 1924 for a fiscal year or does not qualify for such an allotment for such fiscal year, the Secretary shall use funds appropri- ated under section 1922 to make grants under section 330 to commu-
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 553 nity health centers within the State. Before making grants under section 330 for community health centers within a State the Secre- 42 use 254c. tary shall consult with the chief executive officer of the State and with appropriate local officials. The amount of funds from appropri- ations under section 1922 which may be used for grants for a fiscal year under section 330 for community health centers shall be the amount remaining after allotments are made under section 1924 for suchfiscEilyear. "ALLOTMENTS "SEC. 1924 (a). If a State submits an application under section 1927 42 use 300y-3. for an allotment for a fiscal year and is determined by the Secretary to be eligible under such section for such an allotment, the Secretary shall allot to such State from the amount appropriated under section 1922 for such fiscal year an amount which bears the same ratio to the amount appropriated under section 1922 for that fiscal year as the amount granted for fiscal year 1982 by the Secretary to community health centers in the State under section 330 bore to the amount granted for that fiscal year by the Secretary under such section to centers in all States from appropriations for that fiscal year. "(b)(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 granted for fiscal year 1982 by the Secretary to such tribe or tribal organization under section 330 bore to the total amount granted for such fiscal year by the Secretary to the State and entities (including Indian tribes and tribal organizations) in the State under section 330. "(3) From the amount reserved by the Secretary on the basis of a determination under this subsection, the Secretary shall make grants under section 330 to the Indian tribe or tribal organization serving the individuals for whom such a determination has been made. "(4) 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. 25 use 450b. "PAYMENTS UNDER ALLOTMENTS TO STATES "SEC. 1925. (aXD For each fiscal year, the Secretary shall make 42 use 300y-4. payments, as provided by section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213), from amounts appropriated for allotments (other than any amount reserved under section 1924(b)) under section 1924(a) to each State which receives such an allotment. "(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
95 STAT. 554 PUBLIC LAW 97-35—AUG. 13, 1981 State for the purposes for which it was made for the next fiscal year if the Secretary determines that the State acted in accordance with section 1926(a)(1) and there is good cause for funds remaining unobligated. "(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 to 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 1926. 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. "GRANTS TO COMMUNITY HEALTH CENTERS 42 use 300y-5. "SEC. 1926. (a)(1) In fiscal years 1983 and 1984 each State shall use for grants under paragraphs (2) and (3) the entire amount allotted to it under section 1924 for such fiscal year and the entire amount required to be made available under paragraph (4). "(2) From the amounts paid to it under section 1925 for fiscal year 1983 and from the State funds required to be made available under paragraph (4) for such fiscal year, each State shall make grants to each community health center which received a grant for its oper- 42 use 254c. ation under section 330(d) for fiscal year 1982 and which meets the requirements of this paragraph. A grant may be made under this paragraph to a community health center only— "(A) if the center has made an application to the State in accordance with section 330(e), and "(B) if the center meets the requirements for receiving a grant under section 330 for its operation. The amount of a grant under this paragraph to a center shall be not less than the amount the center received under section 330(d) for fiscal year 1982. If the State determines under subparagraph (B) that a community health center which has applied for a grant does not meet the requirements referred to in that subparagraph, the Secre- tary shall review the State's determination. If the Secretary finds that the center does not meet such requirements, the State may withhold a grant to the center under this paragraph. "(3) In fiscEil years 1983 and 1984, each State shall make grants to community health centers within the State which serve medically underserved populations and which meet the requirements of this paragraph. A grant under this paragraph for fiscal year 1983 shall be made from any amount not obligated under paragraph (2) or (4) for such fiscal year, and a grant for fiscal year 1984 shall be made from the amounts paid to it under section 1925 for the fiscal year and from the State funds required to be made available under paragraph (4) for the fiscal year. A grant may be made under this paragraph to a community health center only—
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 555 "(A) if the center has made an application to the State in accordance with section 330(e), and 42 use 254c. "(B) if the center meets the requirements for receiving a grant under section 330 for its operation. The Umitation prescribed by section 330(gX3) shall apply with respect to grants under this paragraph. States shall make grants under this paragraph in such a manner that medically underserved populations which have been served by community health centers and which are still medically underserved populations will continue to receive health care, and in making such grants a State shall not, to the extent practicable, disrupt established provider-patient relationships. "(4)(A) In fiscal year 1983 a State which receives an allotment under section 1924 for that fiscal year shall make available, from State funds, for the grants described in paragraphs (2) and (3) and for State administrative expenses for such grants for such fiscal year an amount equal to 20 percent of its allotment. In fiscal year 1984 a State which receives an allotment under section 1924 for that fiscal year shall make available, from State funds, for the grants described in paragraphs (2) and (3) and for State administrative expenses for such grants for such fiscal year an amount equal to one-third of its allotment. "(B) A State, at the request of a community heedth center, may reduce the amount of the State's contribution under subparagraph (A) to the center by— "(i) the fair market value of any supplies or equipment fur- nished to the center, and "(ii) the amount of the pay, allowances, and travel expenses of any officer or employee of the State when detailed to the center 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 center and for the purpose of activities centers assisted under this section. The amount by which any payment is so reduced shall be available for pa5mient by the State 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 by the State under subparagraph (A). "(5) A State may not use any funds paid to it under section 1925 for the purposes of administration of the grants required by paragraphs (2) and (3). "(6) For purposes of this part— "(A) the term 'community health center' has the same mean- "Community ing as that term has under section 330(a), and health center. '(B) a medically underserved population is such a population designated by the Secretary under section 330(b)(3). "(b) A State may not use amounts paid to it under section 1925 to— "(1) provide inpatient services, except in fiscal year 1983 in the case of a community health center which used funds provided under section 330 for fiscal year 1982 to provide such services, "(2) make cash payments to intended recipients of health services, "(3) purchase or improve land, purchase, construct, or perma- nently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment, "(4) satisfy any requirement for the expenditure of non- Federal funds as a condition for the receipt of Federal funds, or
95 STAT. 556 PUBLIC LAW 97-35—AUG. 13, 1981 "(5) provide financial assistance to any entity other than a public or nonprofit private community health center. 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. The prohibition prescribed by this subsection (other than paragraph (4)) shall apply with respect to any amount required to be made available under subsection (aX4). "APPUCATION; ASSURANCES; DESCRIPTION OF ACTIVITIES 42 use 300y-6. "SEC. 1927. (a) No state may receive an allotment for a fiscal year under section 1924(a) unless an application therefor has been submit- ted to and approved by the Secretary. Such an application shall be submitted before the beginning of the fiscal year for which the allotment applied for will be made. 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 1924, no funds shall be allotted to such State for any fiscal year under such section unless the legisla- ture of the State conducts public hearings on the proposed use and distribution of funds to be provided under section 1925 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 agrees— "(1) to use the funds alloted to it under section 1924 in accordance with the requirements of section 1926; and "(2) to establish, after providing reasonable notice and opportu- nity for the submission of comments, reasonable criteria to evaluate the fiscal, managerial, and clinical performance of community health centers; and "(3) to establish procedural and substantive independent State review procedures relating to the failure by the State to provide funds for any such center and to the reduction of the funds paid to a community health center in fiscal year 1984 to an amount which is significantly less than the amount paid to the center by the State under section 1926 in fiscal year 1983. The application of a State shall also contain assurances, satisfactory to the Secretary, that the State has the administrative capability to administer grants under section 1926, to determine the need for services of community health centers by medically underserved populations, and to evaluate the performance of community health centers. "(d)(1) The chief executive officer of the State shall, as part of the application required by subsection (a), prepare and furnish to the Secretary (in accordance with such form as the Secretary shall provide) a description of the intended use of the payments the State will receive under section 1925 for that fiscal year and the funds the State is required to obligate under section 1926(a)(4) for that fiscal year. "(2) The description required by paragraph (1) 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 develop-
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 557 ment 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 under this part, and any revision shall be subject to the requirements of the preceding sentence. "REPORTS AND AUDITS "SEC. 1928. (a)(1) Each State shall prepare and submit to the 42USC300y-7. 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 sections 1926 and 1927(c), (B) to secure a description of the activities 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 which 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 1925. "(2) Each State shall annually audit its expenditures from pay- ments received under section 1925. Such State audits shall be conducted by an entity independent of any agency administering a program funded under this part and, to the extent practicable, in accordance with the Comptroller's General 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 section 1926 or the certification and assurances provided under section 1927. 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 1924. "(4) The State shall make copies of the reports and audits required Public by this section available for public inspection within the State, inspection. "(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 provi- sions of this part. "(6) Not later than January 1, 1984, 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.
95 STAT. 558 PUBLIC LAW 97-35—AUG. 13, 1981 WITHHOLDING Notice and "SEC. 1929. (a)(1) The Secretary shall, after adequate notice and an hearing. opportunity for a hearing conducted within the affected State and 42 u s e 300y-8. subject to paragraphs (2) and (3) of this subsection, withhold funds from any State which does not use its allotment in accordance with the requirements of section 1926 or 1927. The Secretary shall with- hold 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. If the Secretary withholds funds from a State for its failure to provide grants to community health centers in accordance with section 1926, the Secretary shall use the funds withheld to make such grants in accordance with such section. "(2) The Secretary may not institute proceedings to withhold funds under this section unless the Secretary has conducted an investiga- tion concerning whether the State has used its allotment in accord- ance with this part. Investigations required by this paragraph shall be conducted within the affected State by qualified investigators. "(3) The Secretary may not withhold funds under this subsection from a State for a minor failure to comply with the provisions of this part. "(4) 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. "(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. "(2) The Comptroller General of the United States may conduct an investigation of the use of funds received under this part by a State in order to insure compliance with the requirements of this part. "(c) A State 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, the Secretary or the Comp- troller General of the United States may not request any information not readily available to such State or to any community health center which has received a grant under this part and may not 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 u s e 300y-9. "SEC. 1930. (aXl) For the purpose of applying the prohibitions against discrimination on the basis of age under the Age Discrimina- 42 u s e 6101 tion Act of 1975, on the basis of handicap under section 504 of the note. Rehabilitation Act of 1973, on the basis of sex under title IX of the 29 u s e 794. Education Amendments of 1972, or on the basis of race, color, or 20 u s e 1681. national origin under title VI of the Civil Rights Act of 1964, 42 u s e 2000d. 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.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 559 "(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 pa3niient from an allotment to a State under section 1924 has failed to comply with a provision of law referred to in subsection (aXD, with subsection (a)(2), or with an applicable regulation (includ- ing one prescribed to carry out subsection (aX2)), 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 recom- mendation 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, 42 use 2000d. or section 504 of the Rehabilitation Act of 1973, as may be 42 use 6ioi 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 (bXD, 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 (aXD or in violation of subsection (a)(2), the Attorney General may bring a civil action in any appropri- ate district court of the United States for such relief as may be appropriate, including injunctive relief. "CRIMINAL PENALTY FOR FALSE STATEMENTS "SEC. 1931. Whoever— 42 use 300y-io. "(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, shall be fined not more than $25,000 or imprisoned for not more than five years, or both. ' 'ADMINISTRATION "SEC. 1932. Title XVII of the Omnibus Budget Reconciliation Act of 42 use 300y-li. 1981 shall not apply with respect to the grant program authorized by Post, p. 753. this part.". REPEALS AND CONFORMING AMENDMENTS SEC. 902. (a) Sections 401 and 402 of the Health Services and Centers Amendments of 1978 are repealed. 42 use 247b-i, (b) Sections 314(d) and subpart III of part D of title III of the Public ^^'^''"^ Health Service Act are repealed. 42 use 246, 255. (cXD The second sentence of section 311(a) of the Public Health Service Act is amended— 42 use 243. (A) by inserting "and with respect to other public health matters" after "diseases", and
95 STAT. 560 PUBLIC LAW 97-35—AUG. 13, 1981 (B) by striking out "and in carrying out the purposes of section 42 u s e 243. 314". 42 u s e 246. (2) The first sentence of section 311(b) of such Act is amended by striking out "the purposes of section 314" and inserting in lieu thereof "public health activities". Repeals. (d)(1) Sections 1201, 1202, 1203, 1204, 1205(d), 1206, 1207(a), 1208, 42 use 1209, and 1210, and part B of title XII of the Public Health Service Act 300d-300d-9, are repealed. 300d-21. (2) Title XII of such Act is amended by striking out— "PART A—ASSISTANCE FOR EMERGENCY MEDICAL SERVICES SYSTEMS". 42 use 300d-4. (3) Section 1205 of such Act is redesignated as section 1201. 42 use 300d-6. (4) Section 1207(b) of such Act is redesignated as section 1202. 42 use 201. (5) Section 2(f) of such Act is amended by striking out "1201(2),". Repeals (e)(1) Section 101, part B of title I, titles II and III, and sections 502, 94 Stat. 1564. 602, 801, and 806 of the Mental Health Systems Act are repealed. 42 use 9411. (2)(A) Section 225 of the Community Mental Health Centers Act is 42 use 9421. 42 use 9431. transferred to title V of the Public Health Service Act, inserted after 42 use 9451. section 514, redesignated as section 515, and amended (A) by striking 42 use 9502. out "this title" and inserting in lieu thereof "the Community Mental 42 use 9512. 42 use 9521. Health Centers Act" and (B) by inserting "of the Community Mental 42 use 9523. Health Centers Act" after "section 222". 42 use 229d, (B) The (Community Mental Health Centers Act is repealed. 2689m. (f)(1) Title I of the Mental Health Systems Act is amended— Repeal. 42 use 2689 (A) by striking out "PART A—DEFINITIONS"; note. 9411. (B) by striking out "OTHER" in the section heading for section 42 u s e 9412. 102; and 42 u s e (C)) by striking out paragraphs (3), (4), (6), and (7) of section 102, and by redesignating paragraph (5) of such section as paragraph (3). (2) The table of contents in the first section of such Act is amended by striking out the items relating to sections 101, 105, 106, 107, 201 through 208, 301 through 303, 305 through 309, 315 through 317, 321, 325 through 328,502,602,801, and 806, parts A and B of title I, title II, title III, and parts A, B, C, D, and E of title III. (3) The table of section 102 in such table of contents is amended to read as follows: "Sec. 102. Definitions.". 94 Stat. 1602. (20) Section 601(a) of such Act is amended— 42 use 9511. (A) by striking out "community mental health centers and other" in paragraph (5); and (B) by striking out paragraph (6). (g)(1) The second sentence of section 455(a) of the Public Health 94 Stat. 1608. Service Act is amended by striking out ", the Mental Retardation 42 use 289k-l. Facilities and Community Mental Health Centers Construction Act of 1963 (other than part C of title II), and the Mental Health Systems Act". 42 use 225a. (2) Section 507 of such Act is amended by striking out ", appropri- ations available under the Community Mental Health Centers Act for construction and staffing of community mental health centers and alcoholism and narcotic addiction, drug abuse, and drug depend- ence facilities,". 42 use 229b. (3) Section 513 of such Act is amended by striking out "the Mental Retardation Facilities Construction Act, the Community Mental Health Centers Act,".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 561 (4) Section 1513(e)(l)(A)(i) of such Act is amended by striking out ", 9| Stat. 1608.^ the Community Mental Health Centers Act, the Mental Health Systems Act, sections 409 and 410 of the Drug Abuse Prevention, Treatment, and Rehabilitation Act, or the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation Act of 1970". (5) Section 1521(dX2)(A) of such Act is amended— 42 u s e 300m. (A) by striking out ", the Community Mental Health Centers Act," and inserting in lieu thereof "or"; and (B) by striking out", and the Drug Abuse Office and Treatment Act of 1972". (6) Section 1524(c)(6XA) of such Act is amended by striking out "the 94 Stat. 3191. Community Mental Health Centers Act, section 409 or 410 of the 42 u s e 300m-3. Drug Abuse Office and Treatment Act of 1972, or the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabili- tation Act of 1970,". (h) The amendments made by this section sheill take effect October 1, Effective date. 1981. 42 u s e 229d note. ONE-YEAR EXTENSION OF COMMUNITY HEALTH CENTERS AND PRIMARY CARE RESEARCH AND DEMONSTRATIONS SEC. 903. (a) The first sentence of section 330(g)(2) (42 U.S.C. 254c(g)(2)) of the Public Health Service Act is amended by striking out "and" after "1980," and by striking out the period and inserting in lieu thereof the following: "and $280,000,000 for the fiscal year ending September 30,1982. For authorizations for appropriations for fiscal years 1983 and 1984, see section 1922.", Ante, p. 552. (b)(1) Section 340(g)(2) of the Public Health Service Act (42 U.S.C. 256(g)(2)) is amended by striking out "and" after "1980," and by striking out the period and inserting in lieu thereof the following: "and $3,000,000 for the fiscal year ending September 30, 1982. No funds may be appropriated under this paragraph or paragraph (1) for a fiscal year beginning after September 30,1982.". (c) Effective October 1, 1982, section 340 of such Act is repealed. Repeal. SERVICES TO MIGRANTS BY COMMUNITY HEALTH CENTERS SEC. 904. The Secretary of Health and Human Services shall review the performance of community health centers which have received grants under section 329 of the Public Health Service Act (relating to 42 use 254b. migrant health centers) to determine if the community health centers have provided services to migrants in a manner which is consistent with the needs of the migrants. In determining if the services have been provided in such a manner, the Secretary shall consider the hours of operation of a center, the bilingual capabilities of a center's staff, and the ability of the center's staff to detect, report, and treat adverse health effects resulting from exposure to pesticides. The Secretary shall report the results of the review conducted under Report to this section to the Congress not later than six months after the date of eongress. the enactment of this section and shall include in the report actions taken by the Secretary to assure that community health centers receiving grants under such section 329 will provide services to migrants in a manner consistent with their needs.
95 STAT. 562 PUBLIC LAW 97-35—AUG. 13, 1981 CRITERIA FOR DETERMINING AREAS AND POPULATION GROUPS IN NEED OF SERVICES OF COMMUNITY HEALTH CENTERS SEC. 905. (a) Section 330(bX3) of the Public Health Service Act (42 U.S.C. 254c(b)(3)) is amended by adding at the end the following: Ante, p. 535. "After the date of the enactment of part A of title XIX, the Secretary may not designate a medically underserved population or remove the designation of such a population unless the Secretary provides reasonable notice and opportunity for comment and consults with the chief executive officer of the State in which the population is located and appropriate local officials. The Secretary shall prescribe criteria for determining the specific shortages of personal health services of an area or population group. Such criteria shall include infant mortality in an area or population group, other factors indicative of the health status of a population group or residents of an area, the ability of the residents of an area or of a population group to pay for health services and their accessibility to them, and the availability of health professionals to residents of an area or to a population group.". G)) Section 330(e)(2) of such Act is amended by inserting before the second sentence the following: "Such an application shall also include a demonstration by the applicant that the area or a population group to be served by the applicant has a shortage of personal health services and that the center will be located so that it will provide services to the greatest number of persons residing in such area or included in such population group. Such a demonstration shall be made on the basis of the criteria prescribed by the Secretary under subsection (b)(3) or on any other criteria which the Secretary may prescribe to determine if the area or population group to be served by the applicant has a shortage of personal health services.". AUDITS OF GRANTS TO COMMUNITY HEALTH CENTERS SEC. 906. Section 330 of the Public Health Service Act (42 U.S.C. 254c) is amended by adding at the end the following: "(hXD Each entity which receives a grant under subsection (d) shall provide for an independent annual financial audit of any books, accounts, financial records, files, and other papers and property which relate to the disposition or use of the funds received under such grant and such other funds received by or allocated to the project for which such grant was made. For purposes of assuring accurate, current, and complete disclosure of the disposition or use of the funds received, each such audit shall be conducted in accordance with generally accepted accounting principles. Each audit shall evaluate— "(A) the entity's implementation of the guidelines established by the Secretary respecting cost accounting, "(B) the processes used by the entity to meet the financial and program reporting requirements of the Secretary, and "(C) the billing and collection procedures of the entity and the relation of the procedures to its fee schedule and schedule of discounts and to the availability of health insurance and public programs to pay for the health services it provides. A report of each such audit shall be filed with the Secretary at such time and in such manner as the Secretary may require. Recordkeeping. "(2) Each entity which receives a grant under subsection (d) shall establish and maintain such records as the Secretary shall by regulation require to facilitate the audit required by paragraph (1). The Secretary may specify by regulation the form and manner in which such records shall be established and maintained.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 563 "(3) Each entity which is required to establish and maintain records or to provide for an audit under this subsection shall make such 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 such entity upon a reasonable request therefor. The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, shall have the authority to conduct such examination, copying, and repro- duction. "(4) The Secretary may, under appropriate circumstances, waive the application of all or part of the requirements of this subsection to a community health center.". Subtitle B—Developmental Disabilities EXTENSION OF PROGRAMS SEC. 911. (a) The first sentence of section 113(b)(2) of the Develop- mental Disabilities Assistance and Bill of Rights Act (hereinafter in this subtitle referred to as the "Act") (42 U.S.C 6012(b)(2)) is amended by striking out "and" after "1980," and by inserting before the period a comma and the following: "$8,000,000 for the fiscal year ending September 30, 1982, $8,000,000 for the fiscal year ending September 30, 1983, and $8,000,000 for the fiscal year ending September 30, 1984". (b) Section 123(a) of the Act (42 U.S.C. 6033(a)) is amended by striking out "and" after "1980," and by inserting before the period a comma and the following: "$7,500,000 for the fiscal year ending September 30, 1982, $7,500,000 for the fiscal year ending September 30, 1983, and $7,500,000 for the fiscal year ending September 30, 1984". (c) Section 131 of the Act (42 U.S.C. 6061) is amended by striking out "and" after "1980," and by inserting before the period a comma and the following: "$43,180,000 for the fiscal year ending September 30, 1982, $43,180,000 for the fiscal year ending September 30, 1983, and $43,180,000 for thefiscalyear ending September 30,1984". EVALUATION SYSTEM SEC. 912. (a) Section 110 of the Act (42 U.S.C. 6009) is repealed. Repeal. SPECIAL PROJECT GRANTS SEC. 913. Section 145 of the Act (42 U.S.C. 6081) is amended to read as follows: " G R A N T AUTHORITY "SEC. 145. (a) The Secretary may make grants to public or nonprofit private entities for— "(1) demonstration projects— "(A) which are conducted in more than one State, "(B) which involve the participation of two or more Feder- al departments or agencies, or "(C) which are otherwise of national significance, and which hold promise of expanding or otherwise improving services to persons with developmental disabilities (especially those who are disadvantaged or multihandicapped); and
95 STAT. 564 PUBLIC LAW 97-35—AUG. 13, 1981 "(2) demonstration projects (including research, training, and evaluation in connection with such projects) which hold promise of expanding or otherwise improving protection and advocacy services relating to the State protection and advocacy system 42 u s e 6012. described in section 113. Projects for the evaluation and assessment of the quality of services provided persons with developmental disabilities which meet the requirements of subparagraphs (A), (B), and (C) of paragraph (1) may be included £is projects for which grants are authorized under such paragraph. "(b) No grant may be made under subsection (a) unless an applica- tion therefor has been submitted to, and approved by, the Secretary. Such application shall be in such form, submitted in such manner, and contain such information as the Secretary shall by regulation prescribe. The Secretary may not approve such an application unless each State in which the applicant's project will be conducted has a 42 u s e 6063. State plan approved under section 133. The Secretary shall provide to the State Planning C!ouncil (established under section 137) for each 42 u s e 6067. State in which an applicant's project will be conducted an opportuni- ty to review the application for such project and to submit its comments on the application. "(c) Pa3rments under grants under subsection (a) may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Secretary finds necessary. The amount of any grant under subsection (a) shall be determined by the Secretary. Appropriation "(d) For the purpose of grants under subsection (a), there are authorization. authorized to the appropriated $2,500,000 for the fiscal year ending September 30, 1982, $2,500,000 for the fiscal year ending September 30, 1983, and $2,500,000 for the fiscal year ending September 30, 1984.". Subtitle C—Health Services Research, Statistics, and Technology; Medical Libraries; and National Re- search Service Awards REFERENCES IN SUBTITLE SEC. 916. Whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a 42 u s e 201 note. section or other provision of the Public Health Service Act. AUTHORIZATIONS FOR HEALTH SERVICES RESEARCH, STATISTICS, AND TECHNOLOGY SEC. 917. (a) The first sentence of section 308(i)(l) (42 U.S.C. 242m(i)(l)) is amended by striking out "and" after "1980," and by inserting before the period a comma and the following: "$20,000,000 for the fiscal year ending September 30, 1982, $22,000,000 for the fiscal year ending September 30, 1983, and $24,000,000 for the fiscal year ending September 30,1984". (b) Section 308(i)(2) is amended by striking out "and" after "1980," and by inserting before the period a comma and the following: "$39,000,000 for the fiscal year ending September 30, 1982, $39,000,000 for the fiscal year ending September 30, 1983, and $39,000,000 for the fiscal year ending September 30,1984".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 565 (cXD The first sentence of section 309(i) (42 U.S.C. 242n(i)) is amended by striking out "and" after "1980," and by inserting before the period a comma and the following: "$3,000,000 for the fiscal year ending September 30, 1982, $4,000,000 for the fiscal year ending September 30,1983, and $5,000,000 for the fiscal year ending Septem- ber 30,1984". (2) The second sentence of such section is amended by striking out "the fiscal year ending September 30, 1981," and inserting in lieu thereof "for each of the fiscal years ending September 30, 1982, September 30,1983, and September 30,1984,". GENERAL AUTHORITIES SEC. 918. (a) Section 304(a)(3) (42 U.S.C. 242b(a)(3)) is amended— (1) by striking out "shall" and inserting in lieu thereof "may", and (2) by striking out "and" the first three places it occurs and inserting in lieu thereof "or". (b)(1) The first sentence of section 304(d)(1) is amended by striking out "and the National Academy of Sciences (acting through the Institute of Medicine and other appropriate units) shall, jointly and" and inserting in lieu thereof ", with the advice and assistance of the National Academy of Sciences (acting through the Institute of Medi- cine and other appropriate units), shall,". (2) The second sentence of such section is amended by striking out "and the National Academy of Sciences (hereinafter in this subsec- tion referred to as the 'Academy')". (3) Section 304(d)(3) is amended by striking out "and the Academy" each place it appears. (c) Section 304(d)(3) is amended by striking out "every two years" and inserting in lieu thereof "every three years". (d)(1) Subsections (b)(1) and (c)(1) of section 304 are each amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". (2) Subsection (d)(3) of such section is amended by striking out "Committee on Interstate and Foreign Commerce" and inserting in lieu thereof "Committee on Energy and Commerce". NATIONAL CENTER FOR HEALTH SERVICES RESEARCH SEC. 919. (a)(1) The first sentence of section 305(d)(1) (42 U.S.C. 242c(d)(l)) is amended by striking out "health services, research, evaluations" and inserting in lieu thereof "health services research, evaluations, training, policy analysis,". (2)(A) The second sentence of such section is amended (i) by striking out "six of such centers" and inserting in lieu thereof "three of such centers", and (ii) by striking out "three national special emphasis centers" and all that follows through "health care delivery;" and inserting in lieu thereof "two national special emphasis centers,". (B) Section 308(i)(l) (42 U.S.C. 242m(i)(l)) (as amended by section 917(a) of this Act) is further amended by adding at the end thereof the following new sentence: "Of the amounts appropriated under this paragraph for each of the fiscal years ending September 30, 1982, September 30, 1983, and September 30, 1984, not more than $1,500,000 may be used for grants and contracts for all the costs of planning, establishing, and operating centers under section 305(d)."
95 STAT. 566 PUBLIC LAW 97-35—AUG. 13, 1981 42 use 242c. (3) Section 305(dX2)(BXiv) is amended by striking out "demonstra- tions, and evaluations" and inserting in lieu thereof "evaluations, policy analysis, and demonstrations". (bXD Paragraph (4) of section 305(b) is amended to read as follows: "(4) the role of market forces in the health care system and the appropriate role they may play in restraining cost increases and improving the availability and quality of care.". 42 use 242c (2) The amendment made by paragraph (1) shall apply with respect ^°^- to grants made under section 305(b) of the Public Health Service Act for fiscal years beginning after September 30,1981, except that if an entity received a grant under paragraph (4) of such section, as in effect before the date of the enactment of this Act, for the fiscal year ending September 30, 1981, the Secretary may, until the fiscal year be^nning October 1,1983, make an additional grant or grants to such entity for the purposes prescribed by such paragraph as so in effect. (c) Section 305(b) is amended by adding after and below paragraph (4) the following: "No grant or contract shall be made under this subsection for the purpose of funding clinical research that is directly related to determining the cause of any disease or disorder or clinical research that is directly and principally designed to evaluate the efficacy of any therapeutic, diagnostic, or preventive health meas- ure.". (d) Subsections (a) and (c) of section 305 are each amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". NATIONAL CENTER FOR HEALTH STATISTICS SEC. 920. (a) Section 306(eX3) (42 U.S.C. 242k(eX3)) is amended by inserting "and other activities" after "data collection". (b) The first sentence of section 306(1X2)(A) is amended by striking out "the Center" and inserting in lieu thereof "the Center and in cooperation with the Office of Federal Statistical Policy and Stand- ards". (c) Section 306(1X2XD) is amended by striking out all after "subpara- graph (A)" and inserting in lieu thereof a period. (dXD Subsections (a), (eX4), (j), (kX4)(C), (kX4XD), and (lX2XB)(v) of section 306 are each amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". (2) Subsection (c) of such section is amended by striking out "Committee on Interstate and Foreign Commerce" and inserting in lieu thereof "Committee on Energy and Commerce". INTERNATIONAL COOPERATION 42 use 242/. SEC. 921. (a) Section 307(a) (42 U.S.C. 2421(a)) is amended (1) by striking out "and the" and inserting in lieu thereof ", health care technology, and the", and (2) by striking out "and 306" and inserting in lieu thereof "306, and 309". Ot)) Section 307(b) is amended— (1) in paragraph (5), by striking out "or health statistics" and inserting in lieu thereof ", health statistics, or health care technology", and (2) in paragraph (6), by striking out "and programs of biomedi- cal research, health services research, and health statistical activities" and inserting in lieu thereof "or programs of biomedi-
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 567 cal research, health services research, health statistical activi- ties, or health care technology activities". GENERAL PROVISIONS SEC. 922. (a) Section 308(aX2) (42 U.S.C. 242m(a)(2)) is amended by striking out "September 1" and inserting in lieu thereof "December 1". (b) Section 308(b)(2) is amended by striking out "$35,000" and inserting in lieu thereof "$50,000". (c) Section 308(dX2) is amended by inserting "or in the course of health care technology activities under section 309" after "305". NATIONAL CENTER FOR HEALTH CARE TECHNOLOGY SEC. 923. (a) Section 309(bXl) (42 U.S.C. 242n(bXl)) is amended by adding at the end thereof the following new sentence: "In carrying out this section, the Center shall not unreasonably inhibit the innovation of new technologies." (b) Section 309(bX5) is amended by striking out "may" and inserting in lieu thereof "shall" and by adding at the end thereof the following new sentence: "The making of such recommendations shall be a priority of the Center." (c) Section 309(e) is amended by adding at the end thereof the following new sentence: "In carrying out this section, the Secretary shall ensure that the Center does not duplicate the activities of other units of the Department of Health and Human Services or, to the extent practicable, the activities of other Federal departments and agencies. To ensure necessary coordination, all assessments, re- search, evaluations, and demonstrations conducted by the Center shall take into consideration relevant studies and activities under- taken by the National Institutes of Health, the Food and Drug Administration, the Center for Disease Control, the Alcohol, Drug Abuse, and Mental Health Administration, and other Federal de- partments and agencies." (d) Sections 309(d) and 309(fXl)(B) are each amended by striking out "$35,000" and inserting in lieu thereof "$50,000". (e) Section 309(fKlXB) is amended by striking out "in excess o f and inserting in lieu thereof "the direct costs of which will exceed". (f)(1) Subparagraph (D) of section 309(fKl) is amended by striking out "exemplary standards, norms, and criteria" and inserting in lieu thereof "information". (2) Subparagraph (E) of such section is amended by striking out "standards, norms, and criteria" and inserting in lieu thereof "infor- mation". (g) Section 309(fK2XA) is amended by striking out "and the head of the Health Care Financing Administration (or the successor to such entity) who (or their designees) shall be ex officio members" and inserting in lieu thereof "the head of the Health Care Financing Administration (or the successor to such entity), and such other Federal officials as the Secretary may specify, who (or their desig- nees) shall be nonvoting ex officio members". (h) The third sentence in the matter following section 309(f)(2XB) is amended by striking out "two" and inserting in lieu thereof "three". (iXD Clauses (1) and (2) of section 309(f)(6) are redesignated as clauses (A) and (B), respectively. 89-194 O—82 38:QL3
95 STAT. 568 PUBLIC LAW 97-35—AUG. 13, 1981 42 use 242n. (2) Subsections (a) and (g) of section 309 are each amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". (j) Section 309(fK7) is amended by striking out "1981" and inserting in lieu thereof "1984". (k) Subsection (g) of section 309 is repealed and subsections (h) and (i) are redesignated as subsections (g) and (h), respectively. NATIONAL RESEARCH SERVICE AWARDS SEC. 924. (aXD Section 472(aXlXA) (42 U.S.C. 2891-l(aXlXA)) is amended— (A) by inserting "and" after the comma in clause (iii); (B) by striking out clauses (iv), (v), and (vi); (C) by redesignating clause (vii) as clause (iv); and (D) by striking out "and the research described in clause (vi)" in clause (iv) (as redesignated by subparagraph (C) of this paragraph). (2) Section 472(aX3) is amended to read as follows: "(3) In awarding National Research Service Awards under this section, the Secretary shall take account of the Nation's overall need for biomedical research personnel by giving special consideration to physicians who agree to undertake a minimum of two years of bioiTifidicdl. rGSfiS-rch (bXD Section 472(bXlXC) is amended by striking out "or (aXlXAXiv)". (2) Section 472(bX2) is amended by striking out "Health, Education, jand Welfare" and inserting in lieu thereof "Health and Human Services". (3) The first sentence of section 472(bX5) is amended by inserting a comma and "tuition, fees," after "stipends". (cXD Section 472(cXl) is am^ended to read as follows: "(cXD Each individual who is awarded a National Research Service Award (other than an individual who is a prebaccalaureate student who is awarded a National Research Service Award for research training) shall, in accordance with paragraph (3), engage in health research or teaching or any combination thereof which is in accord- ance with the usual patterns of academic employment, for a period computed in accordance with paragraph (2).". (2) Section 472(cX2) is amended to read as follows: "(2) For each month for which an individual receives a National Research Service Award which is made for a period in excess of twelve months, such individual shall engage in one month of health research or teaching or any combination thereof which is in accord- ance with the usual patterns of academic employment.". (3) The second sentence of section 472(cX3) is amended to read as follows: "The Secretary shall by regulation prescribe the type of research and teaching in which an individual may engage to comply with such requirement and such other requirements respecting research and teaching as the Secretary considers appropriate. . (d) The first sentence of section 472(d) is amended by striking out "and" after "1980," and by inserting before the period a comma and "$182,000,000 for the fiscal year ending September 30, 1982, and $195,000,000 for thefiscalyear ending September 30,1983". (e) Section 473(c) (42 U.S.C. 2891-2(c)) is amended (1) by striking out "Interstate and Foreign Commerce" and inserting in lieu thereof "Energy and Commerce", and (2) by striking out Public Welfare" and inserting in lieu thereof "Human Resources".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 569 EXTENSION OF ASSISTANCE FOR LIBRARIES; MISCELLANEOUS SEC. 925. (a) Section 890(c) (42 U.S.C. 280b(c)) is amended by striking out "and" after "1980," and by inserting before the period a comma and the following: "and $7,500,000 for the fiscal year ending Septem- ber 30,1982". (b) Section 434(d)(1) (42 U.S.C. 289c-l(d)(l)) is amended by inserting 94 Stat. 3184. "musculoskeletal and skin diseases," after "arthritis,". Subtitle D—Categorical Programs PREVENTIVE HEALTH SERVICE PROGRAMS SEC. 928. (a) Subsection (a) of section 317(a) of the Public Health Service Act (42 U.S.C. 247b) is amended to read as follows: "(a) The Secretary may make grants to States, and in consultation with State health authorities, to political subdivisions of States and to other public entities to assist them in meeting the costs of establish- ing and maintaining preventive health service programs.". (b) Subsection (j) of such section (42 U.S.C. 247b(j)(l)(A)) is amended to read as follows: "(j)(l) For grants under subsection (a) for preventive health service programs to immunize children against immunizable diseases there are authorized to be appropriated $29,500,000 for the fiscal year ending September 30, 1982, $32,000,000 for the fiscal year ending September 30, 1983, and $34,500,000 for the fiscal year ending September 30,1984. "(2) For grants under subsection (a) for preventive health service programs for tuberculosis there are authorized to be appropriated $9,000,000 for the fiscal year ending September 30,1982, $10,000,000 for the fiscal year ending September 30,1983, and $11,000,000 for the fiscal year ending September 30,1984.". PREVENTION AND CONTROL OF VENEREAL DISEASES SEC. 929. The first sentence of section 318(d)(1) of the Public Health Service Act (42 U.S.C. 247c(d)(l)) is amended by striking out "and" after "1980," and by inserting before the period a comma and the following: "$40,000,000 for the fiscal year ending September 30,1982, $46,500,000 for the fiscal year ending September 30, 1983, and $50,000,000 for the fiscal year ending September 30,1984". EXTENSION OF PROGRAM FOR MIGRANT HEALTH CENTERS SEC. 930. (a) Section 329(h) of the Public Health Service Act (42 U.S.C. 247d(h)) is amended by striking out paragraphs (1), (2), and (3) 42 use 254b. and inserting in lieu thereof the following: "(h)(1) For the purposes of subsections (c), (d), and (e), there are authorized to be appropriated $43,000,000 for the fiscal year ending September 30,1982, $47,500,000 for the fiscal year ending September 30, 1983, and $51,000,000 for the fiscal year ending September 30, 1984. The Secretary may not obligate for grants and contracts under subsection (c)(1) in any fiscal year an amount which exceeds 2 per centum of the funds appropriated under this paragraph for that fiscal year, the Secretary may not obligate for grants under subsection (d)(1)(C) in any fiscal year an amount which exceeds 5 per centum of such funds, and the Secretary may not obligate for contracts under
95 STAT. 570 PUBLIC LAW 97-35—AUG. 13, 1981 subsection (e) in any fiscal year an amount which exceeds 10 per centum of such funds.". 42 use 254b. (b) Paragraph (4) of section 329(h) is redesignated as paragraph (2). FAMILY PLANNING PROGRAMS SEC. 931. (aXD Section 1001(c) of the Public Health Service Act (42 U.S.C. 300(c)) is amended by striking out "and" after "1980," and by inserting before the period a comma and the following: "$126,510,000 for the fiscal year ending September 30, 1982; $139,200,000 for the fiscal year ending September 30,1983; and $150,830,000 for the fiscal year ending September 30,1984". (2) Section 1003(b) of such Act (42 U.S.C. 300a-l(b)) is amended by striking out "and" after "1980," and by inserting before the period a comma and the following: "$2,920,000 for the fiscal year ending September 30, 1982; $3,200,000 for the fiscal year ending September 30, 1983; and $3,500,000 for the fiscal year ending September 30, 1984". (3) Section 1005(b) of Such Act (42 U.S.C. 300a-3(b)) is amended by striking out "and" £ifter "1980," and by inserting before the period a comma and the following: "$570,000 for the fiscal year ending September 30,1982; $600,000 for the fiscal year ending September 30, 1983; and $670,000 for the fiscal year ending September 30, 1984". (b)(1) Section 1001(a) of such Act is amended by adding at the end the following: "To the extent practiced, entities which receive grants or contracts under this subsection shall encourage familiy participa- tion in projects assisted under this subsection.". 42 use 300a-2. (2) Section 1004 is amended by striking out "(a)" after "SEC. 1004." and by striking out subsection (b). ^tudy. (c) The Secretary of Health and Human Services shall conduct a note study of the possible ways of State delivery of the services for which 42 use 300. assistance is authorized by title X of the Public Health Service Act and the willingness and ability of the States to assume the adminis- Report to tration of activities assisted under such title X. The Secretary shall eongress. report to the Congress on the results of such study 18 months after the date of the enactment of this Act. Subtitle E—Health Planning AUTHORIZATIONS SEC. 933. (a)(1) Section 1516(d)(1) of the Public Health Service Act (42 U.S.C. 3001-5(d)(l)) is amended bv inserting "and" after "1980," and by inserting a period after "1981' and striking out the remainder of such section. (2) Section 1525(c) of such Act (42 U.S.C. 300m-4(c)) is amended by inserting "and" after "1980," and by inserting a period after "1981^' and striking out the remainder of such section. (3) Section 1534(d) of such Act (42 U.S.C. 300n-3(d)) is amended by inserting "and" after "1980," and by inserting a period after "198r' and striking out the remainder of such section. (b) Part D of the Public Health Service Act is amended by adding at the end the following: "AUTHORIZATIONS FOR FISCAL YEAR 1982 42 use 300n-6 "SEC. 1537. For grants and contracts under sections 1516(a), 1525(a), and 1534(a) there is authorized to be appropriated $102,000,000 for
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 571 fiscal year 1982. Of the amount appropriated under this section, not more than $65,000,000 may be used for grants under section 1516(a).". MINIMUM G R A N T ; WAIVER OF REQUIREMENTS SEC. 934. (a) Section 1516(cXl)(CXiv) of the Public Health Service Act is amended by striking out "$260,000" and inserting in lieu 42 use 300/-5. thereof "$100,000". (b) The Secretary of Health and Human Services may— 42 use 300Z-2 (1) upon application waive the application of the requirements "°*® of subsection (e), (g), or (h) of section 1513 of the Public Health Service Act, or any combination of such subsections, to a health 42 use 300/-2. systems agency if the Secretary determines that the Federal funds made available to the agency are not sufficient to enable it to meet such requirements or (2) by regulation waive the application of the requirements of subsection (e), (g), or (h) of section 1513 of the Public Health Service Act, or any combination of such subsections, to all health systems agencies if the Secretary determines that the Federal funds made available to all the agencies are not sufficient to enable them to meet such requirements. STATES WITHOUT HEALTH SYSTEMS AGENCIES SEC. 935. (aXD Section 1536 of the Public Health Service Act (42 U.S.C. 300n-5) is amended— (1) by striking out subsection (a), (2) by amending the matter in subsection (b) preceding para- graph (1) to read as follows: "Upon application of the chief executive officer of a State or the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Trust Territory of the Pacific Islands, the Northern Mariana Islands, or AmericEm Samoa, it shall, upon approval of the application, be considered to be a State for purposes of this title and", (3) by striking out "sections 1516 and 1640" and inserting in lieu thereof "section 1640", and (4) by adding after and below paragraph (4) the following: "An application made under this section for a fiscal year shall be made not later than November 1 in that fiscal year and shall contain the certification of the chief executive officer that the State is willing and able to meet the purposes of this title in such fiscal year without any health systems agency in the State.". (b) A State which— 42 use 300Z-5 (1) because of section 1536(b) of the Public Health Service Act '^"^ (as in effect on September 30, 1981) received a grant under section 1516 of such Act for fiscal year 1981, and (2) had an application under section 1536 of such Act (as amended by subsection (a)) approved, shall be eligible to receive a grant under section 1516 of such Act for fiscal year 1982. (c) If a State which on the date of the enactment of this Act has a 42 use 300/-5 population of less than 600,000 and has only one health service area "°*® has an application approved under this section, such State shall be eligible to receive a grant under section 1516 of the Public Health Service Act for fiscal year 1982. (d) The last sentence of section 1512(bX5) of the Public Health Service Act (42 U.S.C. 3001-l(b)(5)) is amended by inserting before the period the following: "or health insurance".
95 STAT. 572 PUBLIC LAW 97-35—AUG. 13, 1981 CERTIFICATE OF NEED REVIEW SEC. 936. (a) Section 1531 of the Public Health Service Act (42 U.S.C. 300n) is amended— (1) by striking out "$75,000" each place it occurs in paragraph (5) and inserting in lieu thereof "$250,000"; (2) by striking out "$150,000" each place it occurs in paragraph (6) and inserting in lieu thereof "$600,000"; and (3) by striking out "$150,000" each place it occurs in paragraph (7) and inserting in lieu thereof "$400,000". QoXD Section 1521(d)(1)(B) of the Public Health Service Act (42 U.S.C. 300m(d)(l)(BXii)) is amended— (A) by strUdng out "twelve months" the second time it appears in clause (i) and inserting in lieu thereof "twenty-four months", and (B) by striking out "twelve months" the second time it appears in clause (ii) and inserting in lieu thereof "twenty-four months". (2) The first sentence of section 1521(b)(2)(B) of such Act is amended to read as follows: "The period of an agreement described in subpara- graph (A) shall not extend beyond the period set forth in subsection (d)(1)(B).". EFFECTIVE DATE 42 u s e 300Z-1 SEC. 937. The amendments made by this subtitle shall take effect note. October 1,1981. Health Maintenance Subtitle F—Health Maintenance Organizations Organization Amendments of CHAPTER 10—HEALTH MAINTENANCE ORGANIZATIONS 1981. SHORT TITLE; REFERENCE TO ACT 42 u s e 201 note. SEC. 940. (a) This subtitle may be cited as the "Health Maintenance Organization Amendments of 1981". (b) Whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or 42 u s e 201 note. other provision of the Public Health Service Act. EXTENSIONS SEC. 941. (a) Subsection (a) of section 1309 (42 U.S.C. 300e-8(a)) is amended to read as follows: 42 u s e 300e-2, "(a)(1) For grants and contracts under sections 1303 and 1304 there 300e-3. is authorized to be appropriated $20,000,000 for the fiscal years 1982, 1983, and 1984, No funds appropriated under this paragraph may be expended or obligated for a grant or contract unless the entity 42 u s e 242a, received a grant or contract under section 303 or 304 during or before 242b. the fiscal year 1981. 42 u s e 300e-16. "(2) For grants under section 1317 there is authorized to be appropriated $1,000,000 for each of the fiscal years 1982, 1983, and 1984.'^ Ot>) Subsection (b) of section 1309 is amended to read as follows: 42 u s e 300e-7. "(b) To maintain in the loan fund established under section 1308(e) for the purpose of making new loans a balance of at least $5,000,000 at the end of each fiscal year and to meet the obligations of the loan fund resulting from defaults on loans made from the fund and to meet the other obligations of the fund, there is authorized to be appropriated to
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 573 the loan fund for fiscal years 1982,1983, and 1984, such sums as mav be necessary to assure such balance and meet such obligations.'. (c) Section 1304(j) (42 U.S.C. 300e-3(j)) is amended by striking out "1981" and inserting in lieu thereof "1984". REVISION OF REQUIREMENTS FOR HEALTH MAINTENANCE ORGANIZATIONS SEC. 942. (a)(1) Section 1301(b)(3) is amended (A) by striking out 42 use 300e. subparagraph (C), and (B) by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively. (2) Section 1301(b)(3)(A)(iv) is amended by striking out "subject to subparagraph (C),". (3)(A) Section 1310(b)(1) (42 U.S.C. 300e-9(b)(l)) is amended by striking out "provides basic health services" and inserting in lieu thereof "provides more than one-half of its basic health services which are provided by physicians". (B) Section 1310(b)(2) is amended by striking out "basic health services" and inserting in lieu thereof "its basic health services which are provided by physicians". (4) Section 1310(b)(2) (42 U.S.C. 300e-9(b)(2)) is amended by striking out "or (B)" and inserting in lieu thereof "(B) individual physicians and other health professionals under contract with the organization, or(C)". (5) The amendment made by paragraph (3)(A) shall apply with ^^ use 300e-9 respect to the offering of a health maintenance organization in note. accordance with section 13100t>Xl) of the Public Health Service Act after four years after the date the organization becomes a qualified health maintenance organization for purposes of section 1310 of such Act if the health maintenance organization provides assurances satisfactory to the Secretary that upon the expiration of such four years it will provide more than one half of its basic health services which are provided by physicians through physicians or other health professionals who are members of the staff of the organization or a medical group (or groups). (b)(1) Section 1301(b)(3XB) is amended by striking out "(i)", by striking out clause (ii), and by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively. (2) Subparagraph (D) of section 1301(b)(3) is amended to read as follows: "(D) Contracts between a health maintenance organization and health professionals for the provision of basic and supplemental health services shall include such provisions as the Secretary may require, but only to the extent that such requirements are designed to insure the delivery of quality health care services and sound fiscal management.". (c)(1) The first sentence of section 1301(bX4) (42 U.S.C. 300e(bX4)) is amended by inserting before the period a comma and the following: "except that a health maintenance organization which has a service area located wholly in a nonmetropolitan area may make a basic health service avauable outside its service area if that basic health service is not a primary care or emergency health care service and if there is an insufficient number of providers of that basic health service within the service area who will provide such service to members of the health maintenance organization". (2) The first sentence of section 1301(b)(4) is amended by striking out "promptly as appropriate" and inserting in lieu thereof "with reasonable promptness".
95 STAT. 574 PUBLIC LAW 97-35—AUG. 13, 1981 42 use 300e. (d)(1) Section 1301(c) is amended by striking out paragraphs (4), (9), and (10), by redesignating paragraphs (5) through (8) as paragraphs (4) through (7), by redesignating paragraph (11) as paragraph (9), and by adding after paragraph (7) (as so redesignated) the following new paragraph: "(8) adopt at least one of the following arrangements to protect its members from incurring liability for payment of any fees which are the legal obligation of such organization— "(A) a contractual arrangement with any hospital that is regularly used by the members of such organization prohib- iting such hospital from holding any such member liable for pajmient of any fees which are the legal obligation of such organization; (B) insolvency insurance, acceptable to the Secretary; "(C) adequate financial reserve, acceptable to the Secre- tary; and . (D) other arrangements, acceptable to the Secretary, to protect members, except that the requirements of this paragraph shall not apply to a health maintenance organization if applicable State law pro- vides the members of such organization with protection from liability for payment of any fees which are the legal obligation of such organization; and". (2) Subsection (d) of section 1301 is repealed. (e) Section 1301(c)(2) (42 U.S.C. 300e(c)(2)) is amended— (1) by striking out "obtain insurance or make other arrange- ments", (2) by inserting "obtain insurance or make other arrange- ments'^^after "(A)^, "(B)", and "(C)", (3) by striking out "and (C)" and inserting in lieu thereof "(C)", and (4) by inserting before the semicolon a comma and the follow- ing: "and (D) make arrangements with physicians or other health professionals, health care institutions, or any combina- tion of such individuals or institutions to assume all or part of the financial risk on a prospective basis for the provision of basic health services by the physicians or other health professionals or through the institutions". (f) The last sentence of section 1302(1) (42 U.S.C. 300e-l(l)) is repealed. (g)(1) The first sentence of section 1302(2) (42 U.S.C. 300e-l(2)) is amended to read as follows: "The term 'supplemental health services' means any health service which is not included as a basic health service under paragraph (1) of this section.". (2) The second sentence of such section is amended by striking out "If a service of a physician described in the preceding sentence' and inserting in lieu thereof "If a health service provided by a physician". (3) The last sentence of such section is repealed. (h) Section 1302(4)(C) is amended by inserting before the semicolon at the end of clause (i) the following: , except that this clause does not apply before the end of the forty-eight month period beginning after the month in which the health maintenance oranization becomes a qualified health maintenance organization as defined in section 42 use 300e-9. 1310(d), or as authorized by the Secretary in accordance with regula- tions that take into consideration the unusual circumstances of the group". (i) Section 1302(5)(B) is amended by striking out "feasible (1)" and inserting in lieu thereof "feasible," and by striking out "administra-
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 575 tive staff and all that follows in such section and inserting in lieu thereof "administrative staff.". 0) Section 1302(8) (42 U.S.C. 300e-l(8)) is amended to read as follows: "(8)(A) The term 'community rating system' means the systems, described in subparagraphs (B) and (C), of fixing rates of payments for health services. A health maintenance organization may fix its rates of payments under the system described in subparagraph (B) or (C) or under both such systems, but a health maintenance organization may use only one such system for fixing its rates of payments for any one group. "(B) A system of fixing rates of payment for health services may provide that the rates shall be fixed on a per-person or per-family basis and may authorize the rates to vary with the number of persons in a family, but, except as authorized in subparagraph (D), such rates must be equivalent for all individuals and for all families of similar composition. "(C) A system of fixing rates of pa5mient for health services may provide that the rates shall be fixed for individuals and families by groups. Except as authorized in subparagraph (D), such rates must be equivalent for all individuals in the same group and for all families of similar composition in the same group. If a health maintenance organization is to fix rates of payment for individuals and families by groups, it shall— "(i) classify all of the members of the organization into classes based on factors which the health maintenance organization determines predict the differences in the use of health services by the individuals or families in each class and which have not been disapproved by the Secretary, "(ii) determine its revenue requirements for providing services to the members of each class established under clause (i), and "(iii) fix the rates of payment for the individuals and families of a group on the basis of a composite of the organization's revenue requirements determined under clause (ii) for providing services to them as members of the classes established under clause (i). The Secretary shall review the factors used by each health mainte- nance organization to establish classes under clause (i). If the Secre- tary determines that any such factor may not reasonably be used to predict the use of the health services by individuals and families, the Secretary shall disapprove such factor for such purpose. "(D) The following differentials in rates of payments may be established under the systems described in subparagraphs (B) and (C): "(i) Nominal differentials in such rates may be established to reflect differences in marketing costs and the different adminis- trative costs of collecting payments from the following categories of members: "(I) Individual members (including their families). "(II) Small groups of members (as determined under regu- lations of the Secretary). "(Ill) Large groups of members (as determined under regulations of the Secretary). "(ii) Nominal differentials in such rates may be established to reflect the compositing of the rates of payment in a systematic manner to accommodate group purchasing practices of the various employers. "(iii) Differentials in such rates may be established for mem- bers enrolled in a health maintenance organization pursuant to a contract with a governmental authority under section 1079 or
95 STAT. 576 PUBLIC LAW 97-35—AUG. 13, 1981 1086 of title 10, United States Code, or under any other govern- mental program (other than the health benefits program author- 5 use 8901 et ized by chapter 89 of title 5, United States Code) or any health *^^" benefits program for employees of States, political subdivision of States, and other public entities.". INITIAL OPERATION COSTS SEC. 943. (a) Section 1805(a) (42 U.S.C. 300e-4) is amended— (1) by striking out "nonprofit" in paragraphs (1) and (2), and (2) by amending paragraph (3) to read as follows: "(3) guarantee to non-Federsd lenders payment of the principal of and the interest on loans made to private health maintenance organizations for the amounts referred to in paragraphs (1) and (2).". (b) Section 1305(bXl) is amended to read as follows: "(bXD Except as provided in paragraph (2), the aggregate amount of principal of loans made or guaranteed, or both, under subsection (a) for a health maintenance organization may not exceed $7,000,000. In any twelve-month period the amount disbursed to a health mainte- nance organization under this section (either directly by the Secre- tary, by an escrow agent under the terms of an escrow agreement, or by a lender under a guaranteed loan) may not exceed $3,000,000.". (c) Section 1305(d) is amended by striking out "1981" and inserting in lieu thereof "1986". (d) Subsection (e) of section 1307 (42 U.S.C. 300e-6) is repealed. AMBULATORY FACIUTIES SEC. 944. (a) Section 1305A(a) (42 U.S.C. 300e-4a(a)) is amended— (1) by striking out "nonprofit" in paragraph (1), and (2) by amending paragraph (2) to read as follows: "(2) guarantee to non-Federal lenders for their loans to private health maintenance organizations for projects described in para- graph (1) the payment of principal and interest on such loans.", (b) Subsections (b) and (c) of section 1305A are redesignated as subsections (c) and (d), respectively, and the following is inserted after subsection (a): "(b) No loan may be made to a health maintenance organization and no loan to a health maintenance organization may be guaranteed under subsection (a) unless the application of the health maintenance organization for such loan or loan guarantee contains assurances satisfactory to the Secretary that— "(1) at the time the application is made the health mainte- nance organization isfiscallysound; "(2) if the application is for a loan, the health maintenance organization is unable to secure a loan, at the rate of interest prevailing in the area in which the organization is located, from non-Federal lenders for the project with respect to which the application is submitted, or, if the application is for a loan guarantee, the health maintenance organization would be unable to secure a loan from such lenders for such project without the loan guarantee; and "(3) during the period of the loan or loan guarantee, the health maintenance organization will remain fiscally sound.".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 577 LOANS SEC. 945. Section 1308(bX2) (42 U.S.C. 300e-7(b)(2)) is amended— (1) by amending clause (D) to read as follows: "(D) on the date the loan is made, bear interest at a rate comparable to the rate of interest prevailing on such date with respect to marketable obligations of the United States of comparable maturities, ad- justed to provide for appropriate administrative charges, and"; and (2) by adding at the end the following: "On the date disburse- ments are made under a loan after the initial disbursement under the loan, the Secretary may change the rate of interest on the amount of the loan disbursed on that date to a rate which is comparable to the rate of interest prevailing on the date the subsequent disbursement is made with respect to marketable obligations of the United States of comparable maturities, ad- justed to provide for appropriate administrative charges.". DUAL CHOICE SEC. 946. (a) Section 1310(d) (42 U.S.C. 300e-9(d)) is amended by adding at the end the following: "Every two years (or such longer period as the Secretary may by regulation prescribe) after the date a health maintenance organization becomes a qualified health mainte- nance organization under this subsection, the health maintenance organization must demonstrate to the Secretary that it is qualified within the meaning of this subsection.". (b) Section 1310(f)(1) is amended by inserting before the semicolon a comma and the following: "except that such term includes nonappro- priated fund instrumentalities of the Government of the United States". REPEAL OF SPECIAL CONSIDERATIONS SEC. 947. (a) Section 1303 (42 U.S.C. 300e-2) is amended by striking out subsection (i). (b) Section 1304 (42 U.S.C. 300e-3) is amended by striking out subsection (k). (c) Section 1305 (42 U.S.C. 300e-4) is amended by striking out subsection (e). FINANCIAL DISCLOSURE SEC. 948. (a) Subsection (a)(2) of section 1318 (42 U.S.C. 300e-17) is amended to read as follows: "(2) A copy of the report, if any, filed with the Health Care Financing Administration containing the information required to be reported under section 1124 of the Social Security Act by 42 use i320a-3. disclosing entities and the information required to be supplied under section 1902(aX38) of such Act.". 42 use I396a. (b) Subsection (aX3XB) of such section is amended to read as follows: "(B) any furnishing for consideration of goods, services (including management services), or facilities between the health maintenance organization and a party in interest, but not including salaries paid to employees for services pro- vided in the normal course of their employment and health services provided to members by hospitals and other provid- ers and by staff, medical group (or groups), individual prac- tice association (or associations), or any combination thereof: and".
95 STAT. 578 PUBLIC LAW 97-35—AUG. 13, 1981 42 use 300e-i7. (Q) Subsection (b)(1) of such section is amended by striking out "employee" and inserting in lieu thereof "employee responsible for management or administration". (d) Subsection (b)(4) of such section is amended to read as follows: "(4) any spouse, child, or parent of an individual described in paragraph (1).". MISCELLANEOUS SEC. 949. (a) The third sentence of section 1312(b)(1) (42 U.S.C. 300e-l 1(b)(1)) is amended by inserting after "Secretary prescribes" the following: ", then after the Secretary provides the entity a reasonable opportunitv for reconsideration of his determination, including, at the entity s election, a fair hearing". Repeals. (b) Sections 1314 and 1316 (42 U.S.C. 300e-13,300e-15) are repealed, (c) Section 1527(bXl) (42 U.S.C. 300m-6(bXl)) is amended— (1) by striking out clause (i) in subparagraph (A) and by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively, (2) by striking out "such enrolled individuals" in subparagraph (A) and inserting in lieu thereof "individuals enrolled in such organization or organizations", (3) by striking out "which has, in the service area of the organization or service areas of the organizations in the combina- tion, an enrollment of at least 50,000 individuals" in subpara- graph (BXii), (4) by striking out "such enrolled individuals" in subparagraph (BXiii) and inserting in lieu thereof "individuals enrolled in such organization or organizations", (5) by striking out "which has, in the service area or the organization or service areas of the organizations in the combina- tion, an enrollment of at least 50,000 individuals" in subpara- graph (CXi), and (6) by striking out "such enrolled individuals" in subparagraph (CXii) and inserting in lieu thereof "individuals enrolled in such organization or organizations". Effective date. (d) The amendments made by subsection (c) shall take effect 42USC300m-6 October 1,1982. note. Subtitle G—Adolescent Family Life SEC. 955. (a) The Public Health Service Act is amended by adding at the end thereof the following new title: "TITLE XX—ADOLESCENT FAMILY LIFE DEMONSTRATION PROJECTS "FINDINGS AND PURPOSES 42 use 300z. "SEC. 2001. (a) The Congress finds that— "(1) in 1978, an estimated one million one hundred thousand teenagers became pregnant, more than five hundred thousand teenagers carried their babies to term, and over one-half of the babies born to such teenagers were born out of wedlock; "(2) adolescents aged seventeen and younger accounted for more than one-half of the out of wedlock births to teenagers; "(3) in a high proportion of cases, the pregnant adolescent is herself the product of an unmarried parenthood during adoles- cence and is continuing the pattern in her own lifestyle;
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 579 "(4) it is estimated that approximately 80 per centum of unmarried teenagers who carry their pregnancies to term live with their families before and during their pregnancy and remain with their families after the birth of the child; "(5) pregnancy and childbirth among unmarried adolescents, particularly young adolescents, often results in severe adverse health, social, and economic consequences, including: a higher percentage of pregnancy and childbirth complications; a higher incidence of low birth weight babies; a higher frequency of developmental disabilities; higher infant mortality and morbid- ity; a decreased likelihood of completing schooling; a greater likelihood that an adolescent marriage will end in divorce; and higher risks of unemployment and welfare dependency; (6)(A) adoption is a positive option for unmarried pregnant adolescents who are unwilling or unable to care for their chil- dren since adoption is a means of providing permanent families for such children from available approved couples who are unable or have difficulty in conceiving or carrying children of their own to term; and "(B) at present, only 4 per centum of unmarried pregnant adolescents who carry their babies to term enter into an adoption plan or arrange for their babies to be cared for by relatives or friends; "(7) an unmarried adolescent who becomes pregnant once is likely to experience recurrent pregnancies and childbearing, with increased risks; "(8XA) the problems of adolescent premarital sexual relations, pregnancy, and parenthood are multiple and complex and are frequently associated with or are a cause of other troublesome situations in the family; and "(B) such problems are best approached through a variety of integrated and essential services provided to adolescents and their families by other family members, religious and charitable organizations, voluntary associations, and other groups in the private sector as well as services provided by publicly sponsored initiatives; "(9) a wide array of educational, health, and supportive serv- ices are not available to adolescents with such problems or to their families, or when available frequently are fragmented and thus are of limited effectiveness in discouraging adolescent premarital sexual relations and the consequences of such rela- tions; "(10)(A) prevention of adolescent sexual activity and adoles- cent pregnancy depends primarily upon developing strong family values and close family ties, and since the family is the basic social unit in which the values and attitudes of adolescents concerning sexuality and pregnancy are formed, programs de- signed to deal with issues of sexuality and pregnancy will be successful to the extent that such programs encourage and sustain the role of the family in dealing with adolescent sexual activity and adolescent pregnancy; "(B) Federal policy therefore should encourage the develop- ment of appropriate health, educational, and social services where such services are now lacking or inadequate, and the better coordination of existing services where they are available; and "(C) services encouraged by the Federal Government should promote the involvement of parents with their adolescent chil-
95 STAT. 580 PUBLIC LAW 97-35—AUG. 13, 1981 dren, and should emphasize the provision of support by other family members, religious and charitable organizations, volun- tary associations, and other groups in the private sector in order to help adolescents and their families deal with complex issues of adolescent premarital sexual relations and the consequences of such relations; and "(11)(A) there has been limited research concerning the soci- etal causes and consequences of adolescent pregnancy; "(B) there is limited knowledge concerning which means of intervention are effective in mediating or eliminating adolescent premarital sexual relations and adolescent pregnancy; and "(C) it is necessary to expand and strengthen such knowledge in order to develop an array of approaches to solving the problems of adolescent premarital sexual relations and adoles- cent pregnancy in both urban and rural settings. "(b) Therefore, the purposes of this title are— "(1) to find effective means, within the context of the family, of reaching adolescents before they become sexually active in order to maximize the guidance and support available to adolescents from parents and other family members, and to promote self discipline and other prudent approaches to the problem of adolescent premarital sexual relations, including adolescent pregnancy; "(2) to promote adoption as an alternative for adolescent parents; "(3) to establish innovative, comprehensive, and integrated approaches to the delivery of care services for pregnant adoles- cents, with primary emphasis on unmarried adolescents who are seventeen years of age or under, and for adolescent parents, which shall be based upon an assessment of existing programs and, where appropriate, upon efforts to establish better coordina- tion, integration, and linkages among such existing programs in order to— "(A) enable pregnant adolescents to obtain proper care and assist pregnant adolescents and adolescent parents to become productive independent contributors to family and community life; and "(B) assist families of adolescents to understand and re- solve the societal causes which are associated with adoles- cent pregnancy; "(4) to encourage and support research projects and demon- stration projects concerning the societal causes and conse- quences of adolescent premarital sexual relations, contraceptive use, pregnancy, and child rearing; "(5) to support evaluative research to identify effective services which alleviate, eliminate, or resolve any negative consequences of adolescent premarital sexual relations and adolescent child- bearing for the parents, the child, and their families; and "(6) to encourage and provide for the dissemination of results, findings, and information from programs and research projects relating to adolescent premarital sexual relations, pregnancy, and parenthood. "DEFINITIONS 42 use 300Z-1. "SEC. 2002. (a) For the purposes of this title, the term— "(1) 'Secretary' means the Secretary of Health and Human Services; "(2) 'eligible person' means—
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 581 "(A) with regard to the provision of care services, a pregnant adolescent, an adolescent parent, or the family of a pregnant adolescent or an adolescent parent; or "(B) with regard to the provision of prevention services and referral to such other services which may be appropri- ate, a nonpregnant adolescent; "(3) 'eligible grant recipient' means a public or nonprofit private organization or agency which demonstrates, to the satis- faction of the Secretary— "(A) in the case of an organization which will provide care services, the capability of providing all core services in a single setting or the capability of creating a network through which all core services would be provided; or "(B) in the case of an organization which will provide prevention services, the capability of providing such serv- ices; "(4) 'necessary services' means services which may be provided by grantees which are— "(A) pregnancy testing and maternity counseling; "(B) adoption counseling and referral services which pres- ent adoption as an option for pregnant adolescents, includ- ing referral to licensed adoption agencies in the community if the eligible grant recipient is not a licensed adoption agency; "(C) primary and preventive health services including prenatal and postnatal care; "(D) nutrition information and counseling; "(E) referral for screening and treatment of venereal disease; "(F) referral to appropriate pediatric care; "(G) educational services relating to family life and prob- lems associated with adolescent premarital sexual relations, including— "(i) information about adoption; "(ii) education on the responsibilities of sexuality and parenting; "(iii) the development of material to support the role of parents as the provider of sex education; and "(iv) assistance to parents, schools, youth agencies, and health providers to educate adolescents and prea- dolescents concerning self-discipline and responsibility in human sexuality; "(H) appropriate educational and vocational services and referral to such services; "(I) referral to licensed residential care or maternity home services; and "(J) mental health services and referral to mental health services and to other appropriate physical health services; "(K) child care sufficient to enable the adolescent parent to continue education or to enter into employment; "(L) consumer education and homemaking; "(M) counseling for the immediate and extended family members of the eligible person; "(N) transportation; "(O) outreach services to families of adolescents to discour- age sexual relations among unemancipated minors; "(P) family planning services; and
95 STAT. 582 PUBLIC LAW 97-35—AUG. 13, 1981 "(Q) such other services consistent with the purposes of this title as the Secretary may approve in accordance with regulations promulgated by the Secretary; "(5) 'core services' means those services which shall be pro- vided by a grantee, as determined by the Secretary by regulation; "(6) 'supplemental services' means those services which may be provided by a grantee, as determined by the Secretary by regulation; "(7) 'care services' means necessary services for the provision of care to pregnant adolescents and adolescent parents and includes all core services with respect to the provision of such care prescribed by the Secretary by regulation; "(8) 'prevention services' means necessary services to prevent adolescent sexual relations, including the services described in subparagraphs (A), (D), (E), (G), (H), (M), (N), (O), and (Q) of paragraph (4); "(9) 'adolescent' means an individual under the age of nine- teen; and "(10) 'unemancipated minor' means a minor who is subject to the control, authority, and supervision of his or her parents or guardians, as determined under State law. "(b) Until such time as the Secretary promulgates regulations pursuant to the second sentence of this subsection, the Secretary shall use the regulations promulgated under title VI of the Health 42 use 300a-2i. Services and Centers Amendments of 1978 which were in effect on the date of enactment of this title, to determine which necessary services are core services for purposes of this title. The Secretary may promulgate regulations to determine which necessary services are core services for purposes of this title based upon an evaluation of and information concerning which necessary services are essential to carry out the purposes of this title and taking into account (1) factors such as whether services are to be provided in urban or rural areas, the ethnic groups to be served, and the nature of the populations to be served, and (2) the results of the evaluations required under section 2006(b). The Secretary may from time to time revise such regulations. "AUTHORITY TO MAKE GRANTS FOR DEMONSTRATION PROJECTS 42 use 300Z-2. "SEC. 2008. (a) The Secretary may make grants to further the purposes of this title to eligible grant recipients which have submit- ted an application which the Secretary finds meets the requirements of section 2006 for demonstration projects which the Secretary determines will help communities provide appropriate care and prevention services in easily accessible locations. Demonstration projects shall, as appropriate, provide, supplement, or improve the quality of such services. Demonstration projects shall use such methods as will strengthen the capacity of families to deal with the sexual behavior, pregnancy, or parenthood of adolescents and to make use of support systems such as other family members, friends, religious and charitable organizations, and voluntary associations. "(b) Grants under this title for demonstration projects may be for the provision of— "(1) care services; "(2) prevention services; or "(3) a combination of care services and prevention services.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 583 "USES OF GRANTS FOR DEMONSTRATION PROJECTS FOR SERVICES "SEC. 2004. (a) Except as provided in subsection (h), funds provided 42 use 300z-3. for demonstration projects for services under this title may be used by grantees only to— "(1) provide to eligible persons— "(A) care services; "(B) prevention services; or "(C) care and prevention services (in the case of a grantee who is providing a combination of care and prevention services); "(2) coordinate, integrate, and provide linkages among provid- ers of care, prevention, and other services for eligible persons in furtherance of the purposes of this title; "(3) provide supplemental services where such services are not adequate or not available to eligible persons in the community and which are essential to the care of pregnant adolescents and to the prevention of adolescent premaritsd sexual relations and adolescent pregnancy; "(4) plan for the administration and coordination of pregnancy prevention services and programs of care for pregnant adoles- cents and adolescent parents which will further the objectives of this title; and "(5) fulfill assurances required for grant approval by section 2006. "(bXD No funds provided for a demonstration project for services under this title may be used for the provision of fgimily planning services (other than counseling and referral services) to adolescents unless appropriate family planning services are not otherwise availa- ble in the community. "(2) Any grantee who receives funds for a demonstration project for services under this title and who, after determining under paragraph (1) that appropriate family planning services are not otherwise available in the community, provides family planning services (other than counseling and referral services) to adolescents may only use funds provided under this title for such family planning services if all funds received by such grantee from all other sources to support such family planning services are insufficient to support such family planning services. "(c) Grantees who receive funds for a demonstration project for services under this title shall charge fees for services pursuant to a fee schedule approved by the Secretary as a part of the application described in section 2006 which bases fees charged by the grantee on the income of the eligible person or the parents or legal guardians of the eligible person and takes into account the difficulty adolescents face in obtaining resources to pay for services. A grantee who receives funds for a demonstration project for services under this title may not, in any case, discriminate with regard to the provision of services to any individual because of that individual's inability to provide pa3mient for such services, except that in determining the ability of an unemancipated minor to provide payment for services, the income of the family of an unemancipated minor shall be considered in determining the ability of such minor to make such payments unless the parents or guardians of the unemancipated minor refuse to make such payments. -194 0—82 39 : QL3
95 STAT. 584 PUBLIC LAW 97-35—AUG. 13, 1981 "PRIORITIES, AMOUNTS, AND DURATION OF GRANTS FOR DEMONSTRATION PROJECTS FOR SERVICES 42 use 300Z-4. "SEC. 2005. (a) In approving applications for grants for demonstra- tion projects for services under this title, the Secretary shall give priority to applicants who— (1) serve an area where there is a high incidence of adolescent pregnancy; "(2) serve an area with a high proportion of low-income families and where the availability of programs of care for pregnant adolescents and adolescent parents is low; "(3) show evidence— "(A) in the case of an applicant who will provide care services, of having the ability to bring together a wide range of needed core services and, as appropriate, supplemental services in comprehensive single-site projects, or to establish a well-integrated network of such services (appropriate for the target population and geographic area to be served including the special needs of rural areas) for pregnant adolescents or adolescent parents; or "(B) in the case of an applicant who will provide preven- tion services, of having the ability to provide prevention services for adolescents and their families which are appro- priate for the target population and the geographic area to be served, including the special needs of rural areas; "(4) will utilize to the maximum extent feasible existing available programs and facilities such as neighborhood and primary health care centers, maternity homes which provide or can be equipped to provide services to pregnant adolescents, agencies serving families, youth, and children with established programs of service to pregnant adolescents and vulnerable families, licensed adoption agencies, children and youth centers, maternal and infant health centers, regional rural health facili- ties, school and other educational programs, mental health programs, nutrition programs, recreation programs, and other ongoing pregnancy prevention services and programs of care for pregnant adolescents and adolescent parents; "(5) make use, to the maximum extent feasible, of other Federal, State, and local funds, programs, contributions, and other third-party reimbursements; "(6) can demonstrate a community commitment to the pro- gram by making available to the demonstration project non- Federal funds, personnel, and facilities; "(7) have involved the community to be served, including public and private agencies, adolescents, and families, in the planning and implementation of the demonstration project; and "(8) will demonstrate innovative and effective approaches in addressing the problems of adolescent premarital sexual rela- tions, pregnancy, or parenthood, including approaches to provide pregnant adolescents with adequate information about adoption. "(b)(1) The amount of a grant for a demonstration project for services under this title shall be determined by the Secretary, based on factors such as the incidence of adolescent pregnancy in the geographic area to be served, and the adequacy of pregnancy preven- tion services and programs of care for pregnant adolescents and adolescent parents in such area. "(2) In making grants for demonstration projects for services under this title, the Secretary shall consider the special needs of rural areas
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 585 and, to the maximum extent practicable, shall distribute funds taking into consideration the relative number of adolescents in such areas in need of such services. "(c)(1) A grantee may not receive funds for a demonstration project for services under this title for a period in excess of 5 years. "(2)(A) Subject to paragraph (3), a grant for a demonstration project for services under this title may not exceed— "(i) 70 per centum of the costs of the project for the first and second years of the project; "(ii) 60 per centum of such costs for the third year of the project; "(iii) 50 per centum of such costs for the fourth year of the project; and "(iv) 40 per centum of such costs for the fifth year of the project. "(B) Non-Federal contributions required by subparagraph (A) may be in cash or in kind, fairly evaluated, including plant, equipment, or services. "(3) The Secretary may waive the limitation specified in paragraph (2)(A) for any year in accordance with criteria established by regula- tion. "REQUIREMENTS FOR APPLICATIONS "SEC. 2006. (a) An application for a grant for a demonstration 42 use 300z-5. project for services under this title shall be in such form and contain such information as the Secretary may require, and shall include— "(1) an identification of the incidence of adolescent pregnancy and related problems; "(2) a description of the economic conditions and income levels in the geographic area to be served; "(3) a description of existing pregnancy prevention services and programs of care for pregnant adolescents and adolescent parents (including adoption services), and including where, how, by whom, and to which population groups such services are provided, and the extent to which they are coordinated in the geographic area to be served; "(4) a description of the major unmet needs for services for adolescents at risk of initial or recurrent pregnancies and an estimate of the number of adolescents not being served in the area; "(5)(A) in the case of an applicant who will provide care services, a description of how all core services will be provided in the demonstration project using funds under this title or will otherwise be provided by the grantee in the area to be served, the population to which such services will be provided, how such services will be coordinated, integrated, and linked with other related programs and services and the source or sources of funding of such core services in the public and private sectors; or "(B) in the case of an applicant who will provide prevention services, a description of the necessary services to be provided and how the applicant will provide such services; "(6) a description of the manner in which adolescents needing services other than the services provided directly by the appli- cant will be identified and how access and appropriate referral to such other services (such as medicaid; licensed adoption agencies; maternity home services; public assistance; employment serv- ices; child care services for adolescent parents; and other city, county, and State programs related to adolescent pregnancy) will
95 STAT. 586 PUBLIC LAW 97-35-AUG. 13, 1981 be provided, including a description of a plan to coordinate such other services with the services supported under this title; "(7) a description of the applicants capacity to continue services as Federal funds decrease and in the absence of Federal assistance; "(8) a description of the results expected from the provision of services, and the procedures to be used for evaluating those results; "(9) a summary of the views of public agencies, providers of services, and the general public in the geographic area to be served, concerning the proposed use of funds provided for a demonstration project for services under this title and a descrip- tion of procedures used to obtain those views, and, in the case of applicants who propose to coordinate services administered by a State, the written comments of the appropriate State officials responsible for such services; (10) assurances that the applicant will have an ongoing quality assurance program; "(11) assurances that, where appropriate, the applicant shall have a system for maintaining the confidentiality of patient records in accordance with regulations promulgated by the Secretary; "(12) assurances that the applicant will demonstrate its finan- cial responsibility by the use of such accounting procedures and other requirements as may be prescribed by the Secretary; "(13) assurances that the applicant (A) has or will have a contractual or other arrangement with the agency of the State (in which the applicant provides services) that administers or supervises the administration of a State plan approved under 42 use 1396. title XIX of the Social Security Act for the payment of all or a part of the applicant's costs in providing health services to persons who are eligible for medical assistance under such a State plan, or (B) has made or will make every reasonable effort to enter into such an arrangement; "(14) assurances that the applicant has made or will make and will continue to make every reasonable effort to collect appropri- ate reimbursement for its costs in providing health services to persons who are entitled to benefits under title V of the Social 42 use 701. Security Act, to medical assistance under a State plan approved under title XIX of such Act, or to £issistance for medical expenses under any other public assistance program or private health insurance program; "(15) assurances that the applicant has or will make and will continue to make every reasonable effort to collect appropriate reimbursement for its costs in providing services to persons entitled to services under parts B and E of title IV and title XX of 94 Stat. 516 the Social Security Act; 94 st^? 50i" "(16)(A) a description of— 42 use 670. "^^^ *^® schedule of fees to be used in the provision of 42 use 1397. services, which shall comply with section 2004(c) and which shall be designed to cover all reasonable direct and indirect costs incurred by the applicant in providing services; and "(ii) a corresponding schedule of discounts to be applied to the payment of such fees, which shall comply with section 2004(c) and which shall be adjusted on the basis of the ability of the eligible person to pay; "(B) assurances that the applicant has made and will continue to make every reasonable effort—
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 587 "(i) to secure from eligible persons payment for services in accordance with such schedules; "(ii) to collect reimbursement for health or other services provided to persons who are entitled to have payment made on their behalf for such services under any Federal or other government program or private insurance program; and "(iii) to seek such reimbursement on the basis of the full amount of fees for services without application of any discount; and **(C) assurances that the applicant has submitted or will submit to the Secretary such reports as the Secretary may require to determine compliance with this paragraph; "(17) assurances that the applicant will make maximum use of funds available under title X of this Act; 42 use 300. "(18) assurances that the acceptance by any individual of family planning services or family planning information (includ- ing educational materials) provided through financial assistance under this title shall be voluntary and shall not be a prerequisite to eligibility for or receipt of any other service furnished by the applicant; "(19) assurances that fees collected by the applicant for serv- ices rendered in accordance with this title shall be used by the applicant to further the purposes of this title; "(20) assurances that the applicant, if providing both preven- tion and care services will not exclude or discriminate against any adolescent who receives prevention services and sub- sequently requires care services as a pregnant adolescent; "(21) a description of how the applicant will, as appropriate in the provision of services— "(A) involve families of adolescents in a manner which will maximize the role of the family in the solution of problems relating to the parenthood or pregnancy of the adolescent; "(B) involve religious and charitable organizations, volun- tary associations, and other groups in the private sector as well as services provided by publicly sponsored initiatives; "(22)(A) assurances that— "(i) except as provided in subparagraph (B) and subject to clause (ii), the applicant will notify the parents or guardians of any unemancipated minor requesting services from the applicant and, except as provided in subparagraph (C), will obtain the permission of such parents or guardians with respect to the provision of such services; and "(ii) in the case of a pregnant unemancipated minor requesting services from the applicant, the applicant will notify the parents or guardians of such minor under clause (i) within a reasonable period of time; "(B) assurances that the applicant will not notify or request the permission of the parents or guardian of any unemancipated minor without the consent of the minor— "(i) who solely is requesting from the applicant pregnancy testing or testing or treatment for venereal disease; "(ii) who is the victim of incest involving a parent; or "(iii) if an adult sibling of the minor or an adult aunt, uncle, or grandparent who is related to the minor by blood certifies to the grantee that notification of the parents or guardians of such minor would result in physical injury to such minor; and
95 STAT. 588 PUBLIC LAW 97-35-AUG. 13, 1981 "(C) assurances that the applicant will not require, with respect to the provision of services, the permission of the parents or guardians of any pregnant unemancipated minor if such parents or guardians are attempting to compel such minor to have an abortion; "(23) assurances that primary emphasis for services supported under this title shall be given to adolescents seventeen and under who are not able to obtain needed assistance through other means; "(24) assurances that funds received under this title shall supplement and not supplant funds received from any other Federal, State, or local program or any private sources of funds; and "(25) a plan for the conduct of, and assurances that the applicant will conduct, evaluations of the effectiveness of the services supported under this title in accordance with subsection (b). "(b)(1) Each grantee which receives funds for a demonstration project for services under this title shall expend at least 1 per centum but not in excess of 5 per centum of the amounts received under this title for the conduct of evaluations of the services supported under this title. The Secretary may, for a particular grantee upon good cause shown, waive the provisions of the preceding sentence with respect to the amounts to be expended on evaluations, but may not waive the requirement that such evaluations be conducted. "(2) Evaluations required by paragraph (1) shall be conducted by an organization or entity which is independent of the grantee providing services supported under this title. To assist in conducting the evaluations required by paragraph (1), each grsmtee shall develop a working relationship with a college or university located in the grantee's State which will provide or assist in providing monitoring and evaluation of services supported under this title unless no college or university in the grantee s State is willing or has the capacity to provide or assist in providing such monitoring and assistance. "(3) The Secretary may provide technical assistance with respect to the conduct of evaluations required under this subsection to any grantee which is unable to develop a working relationship with a college or university in the applicant's State for the reasons described in paragraph (2). "(c) Each grantee which receives funds for a demonstration project for services under this title shall make such reports concerning its use of Federal funds as the Secretary may require. Reports shall include, at such times as are considered appropriate by the Secretary, the results of the evaluations of the services supported under this title. "(d)(1) A grantee shall periodically notify the Secretary of the exact number of instances in which a grantee does not notify the parents or guardians of a pregnant unemancipated minor under subsection (a)(22)(B)(iii). "(2) For purposes of subsection (a)(22)(B)(iii), the term "adult" means an adult as defined by State law. "(e) Each applicant shall provide the Governor of the State in which the applicant is located a copy of each application submitted to the Secretary for a grant for a demonstration project for services under this title. The Governor shall submit to the applicant com- ments on any such application within the period of sixty days beginning on the day when the Governor receives such copy. The
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 589 applicant shall include the comments of the Governor with such application. "(f) No application submitted for a grant for a demonstration project for care services under this title may be approved unless the Secretary is satisfied that core services shall be available through the applicant within a reasonable time after such grant is received. "COORDINATION OF FEDERAL AND STATE PROGRAMS "SEC. 2007. (a) The Secretary shall coordinate Federal policies and 42 use 300z-6. programs providing services relating to the prevention of adolescent sexual relations and initial and recurrent adolescent pregnancies and providing care services for pregnant adolescents. In achieving such coordination, the Secretary shall— "(1) require grantees who receive funds for demonstration projects for services under this title to report periodically to the Secretary concerning Federal, State, and local policies and pro- grams that interfere with the delivery of and coordination of pregnancy prevention services and other programs of care for pregnant adolescents and adolescent parente; "(2) provide technical assistance to facilitate coordination by State and local recipients of Federal assistance; "(3) review all programs administered by the Department of Health and Human Services which provide prevention services or care services to determine if the policies of such programs are consistent with the policies of this title, consult with other departments and agencies of the Federal Government who ad- minister programs that provide such services, and encourage such other departments and agencies to make recommendations, as appropriate, for legislation to modify such programs in order to facilitate the use of all Government programs which provide such services as a basis for delivery of more comprehensive prevention services and more comprehensive programs of care for pregnant adolescents and adolescent parents; "(4) gpLve priority in the provision of funds, where appropriate, to applicants using single or coordinated grant applications for multiple programs; and "(5) give priority, where appropriate, to the provision of funds under Federal programs administered by the Secretary (other than the program established by this title) to projects providing comprehensive prevention services and comprehensive programs of care for pregnant adolescents and adolescent parents. "(b) Any recipient of a grant for a demonstration project for services under this title shall coordinate its activities with any other recipient of such a grant which is located in the same locality. "RESEARCH "SEC. 2008. (a)(1) The Secretary may make grants and enter into 42 use 300z-7. contracts with public agencies or private organizations or institutions of higher education to support the research and dissemination activities described in paragraphs (4), (5), and (6) of section 2001(b). "(2) The Secretary may make grants or enter into contracts under this section for a period of one year. A grant or contract under this section for a project may be renewed for four additional one-year periods, which need not be consecutive. "(3) A grant or contract for any one-year period under this section may not exceed $100,000 for the direct costs of conducting research or
95 STAT. 590 PUBLIC LAW 97-35—AUG. 13, 1981 disemination activities under this section and may include such additional amounts for the indirect costs of conducting such activities as the Secretary determines appropriate. The Secretary may waive the preceding sentence with respect to a specific project if he determines that— "(A) exceptional circumstances warrant such waiver and that the project will have national impact; or "(B) additional amounts are necessary for the direct costs of conducting limited demonstration projects for the provision of necessary services in order to provide data for research carried out under this title. "(4) The amount of any grant or contract made under this section may remain available for obligation or expenditure after the close of the one-year period for which such grant or contract is made in order to assist the recipient in preparing the report required by subsection (f)(1). "(b)(1) Funds provided for research under this section may be used for descriptive or explanatory surveys, longitudinal studies, or limit- ed demonstration projects for services that are for the purpose of increasing knowledge and understanding of the matters described in paragraphs (4) and (5) of section 2001(b). "(2) Funds provided under this section may not be used for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than minor remodeling) of any build- ing or facility. (c) The Secretary may not make any grant or enter into any contract to support research or dissemination activities under this section unless— "(1) the Secretary has received an application for such grant or contract which is in such form and which contains such informa- tion as the Secretary may by regulation require; "(2) the applicant has demonstrated that the applicant is capable of conducting one or more of the types of research or dissemination activities described in paragraph (4), (5), or (6) of section 2001(b); and "(3) in the case of an application for a research project, the panel established by subsection (e)(2) has determined that the project is of scientific merit. "(d) The Secretary shall, where appropriate, coordinate research and dissemination activities carried out under this section with research and dissemination activities carried out by the National Institutes of Health. "(e)(1) The Secretary shall establish a system for the review of applications for grants and contracts under this section. Such system shall be substantially similar to the system for scientific peer review of the National Institutes of Health and shall meet the requirements of paragraphs (2) and (3). (2) In establishing the system required by paragraph (1), the Secretary shall establish a panel to review applications under this section. Not more than 25 per centum of the members of the panel shall be physicians. The panel shall meet £is often as may be necessary to facilitate the expeditious review of applications under this section, but not less than once each year. The panel shall review each project for which an application is made under this section, evaluate the scientific merit of the project, determine whether the g roject is of scientific merit, and make recommendations to the ecretary concerning whether the application for the project should be approved.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 591 "(3) The Secretary shall make grants under this section from among the projects which the panel established by paragraph (2) h£is determined to be of scientific merit and may only approve an application for a project if the panel has made such determination with respect to such a project. The Secretary shall make a determina- tion with respect to an application within one month after receiving the determinations and recommendations of such panel with respect to the application. "(fKlXA) The recipient of a grant or contract for a research project under this section shall prepare and transmit to the Secretary a report describing the results and conclusions of such research. Except as provided in subparsigraph (B), such report shall be transmitted to the Secretary not later than eighteen months after the end of the year for which funds are provided under this section. The recipient may utilize reprints of articles published or accepted for publication in professional journals to supplement or replace such report if the research contained in such articles was supported under this section during the year for which the report is required. "(B) In the case of any research project for which assistance is provided under this section for two or more consecutive one-year periods, the recipient of such assistance shall prepare and transmit the report required by subparagraph (A) to the Secretary not later than twelve months atfter the end of each one-year period for which such funding is provided. "(2) Recipiente of grsints and contracts for dissemination under this section shall submit to the Secretary such reports as the Secretary determines appropriate. "(g) In carr3ring out functions relating to the conduct and support of research under this section, the Secretary shall not be subject to the provisions of chapter 35 of title 44, United States Code, except with 94 Stat 2812. respect to the collection of survey data which primarily will be used seq.44 u s e 3501 et for the generation of national population estimates. EVALUATION AND ADMINISTRATION "SEC. 2009. (a) Of the funds appropriated under this title, the 42 use 300z-8. Secretary shall reserve not less than 1 per centum and not more than 3 per centum for the evaluation of activities carried out under this title. The Secretary shall submit to the appropriate committees of the Submittal to Congress a summary of each evaluation conducted under this section, congressional "(b) The officer or emplovee of the Department of Health and committees. Human Services designated by the Secretary to carry out the provi- sions of this title shall report directly to the Assistant Secretary for Health with respect to the activities of such officer or employee in canying out such provisions. "AUTHORIZATION OF APPROPRIATIONS "SEC. 2010. (a) For the purpose of carrying out this title, there are 42 use 300z-9. authorized to be appropriated $30,000,000 for the fiscal year ending September 30,1982, $30,000,000 for the fiscal year ending September 30, 1983, and $30,000,000 for the fiscal year ending September 30, 1984. "(b) At least two-thirds of the amounts appropriated to carry out this title shall be used to make grants for demonstration projects for services. "(c) Not more than one-third of the amounts specified under subsection (b) for use for grants for demonstration projects for
95 STAT. 592 PUBLIC LAW 97-35—AUG. 13, 1981 services shall be used for grants for demonstration projects for prevention services. "RESTRICTIONS 42 use 300Z-10. "SEC. 2011. (a) Grants or p a r e n t s may be made only to programs or projects which do not provide abortions or abortion counseling or referral, or which do not subcontract with or make any payment to any person who provides abortions or abortion counseling or referral, except that any such program or project may provide referral for abortion counseling to a pregnant adolescent if such adolescent and the parents or guardians of such adolescent request such referral; and grants may be made only to projects or programs which do not advocate, promote, or encourage abortion. "(b) The Secretary shall ascertain whether programs or projects comply with subsection (a) and take appropriate action if programs or projects do not comply with such subsection, including withholding of funds.". Repeals (b) Effective October 1,1981, titles VI, VII, and VIII of the Health 42 use 300a-4i Services and Centers Amendments of 1978 are repealed. 42 u s e 300a-2l' i^ote. Subtitle H—Alcohol and Drug Programs CHAPTER 1—ALCOHOL ABUSE AND ALCOHOLISM PREVEN- TION, TREATMENT, AND REHABILITATION REFERENCE SEC. 960. Except as otherwise specifically provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Comprehensive Alcohol Abuse and Alcoholism Pre- 42 use 4541 vention. Treatment, and Rehabilitation Act of 1970. note. ALCOHOL ABUSE AND ALCOHOLISM AMONG GOVERNMENT AND OTHER EMPLOYEES 42 use 4561. SEC. 961. Section 201(bX2XB) is amended by striking out "single State agencies designated pursuant to section 303 of this Act" and inserting in Ueu thereof the State agencies responsible for the administration of alcohol abuse prevention, treatment, and rehabili- tation activities". TECHNICAL ASSISTANCE 42 use 4571. SEC. 962. (a) Section 301 is amended to read as follows: "TECHNICAL ASSISTANCE "SEC. 301. (a) On the request of any State, the Secretary, acting through the Institute, shaU, to the extent feasible, make available technical assistance for— "(1) developing and improving systems for data collection; "(2) program management, accountability, and evaluation; "(3) cert^cation, accreditation, or licensure of treatment facil- ities and personnel; "(4) monitoring compliance by hospitals and other facilities 42 use 4581. with the requirements of section 321; and
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 593 "(5) eliminating exclusions in health insurance coverage of- fered in the State which are based on alcoholism or alcohol abuse. "(b) Insofar as practicable, technical assistance provided under this section shall be provided in a manner which will improve coordina- tion between activities supported under this Act and under the Drug Abuse Prevention, Treatment, and Rehabilitation Act.". 21 use iioi (b) Sections 302,303, and 310 are repealed. Sep^eais. 42 u s e 4572, GRANTS AND CONTRACTS 4573, 4576. SEC. 963. (a) The section heading for section 311 is amended to read 42 use 4577. as follows: "GRANTS AND CONTRACTS FOR THE DEMONSTRATION OF NEW AND MORE EFFECTIVE ALCOHOL ABUSE AND ALCOHOLISM PREVENTION, TREATMENT, AND REHABIUTATION PROGRAMS". (b) Section 311(a) is amended— (1) by adding at the end of clause (1) "and with particular emphasis on developing new and more effective alcohol abuse and alcoholism prevention, treatment, and rehabilitation pro- grams,"; (2) by inserting "and" after the comma the last place it appears in clause (2); (3) by striking out clauses (3) and (5) and by redesignating clause (4) as clause (3); and (4) by striking out the comma and "and" at the end of clause (3) (as redesignated by clause (2) of this subsection) and inserting in lieu thereof a period. (c)(1) Section 311(cX2XA) is amended— (A) by striking out "designated under section 303 of this Act, if such designation has been made" in the first sentence and inserting in lieu thereof "responsible for the administration of alcohol abuse and alcoholism prevention, treatment, and reha- bilitation activities"; (B) by striking out "the" before "State comprehensive plan" in the third sentence and inserting in lieu thereof "any"; and (C) by striking out "under section 303" in the third sentence. (2) Section 311(cX3) is amended— (A) by inserting "and" after the semicolon in clause (B); (B) by striking out the semicolon and "and" at the end of clause (C) and inserting in lieu thereof a period; and (C) by striking out clause (D). (3) Section 311(cX4) is amended to read as follows: "(4) The Secretary shall encourage the submission of and give special consideration to applications under this section for programs and projects aimed at underserved populations such as racial and ethnic minorities. Native Americans, youth, the elderly, women, handicapped individuals, public inebriates, and families of alcohol- ics.". (4) Section 311(c) is further amended— (A) by redesignating paragraph (5) as paragraph (6); (B) by inserting after paragraph (4) the following new para- graph: "(5)(A) No grant may be made under this section to a State or to any entity within the government of a State unless the grant application has been duly authorized by the chief executive officer of such State.
95 STAT. 594 PUBLIC LAW 97-35—AUG. 13, 1981 "(B) No grant or contract may be made under this section for a period in excess of five years. "(C)(i) The amount of any grant or contract under this section may not exceed 100 per centum of the cost of carrying out the grant or contract in the first fiscal year for which the grant or contract is made under this section, 80 per centum of such cost in the second fiscal year for which the grsuit or contract is made under this section, 70 per centum of such cost in the third fiscal year for which the grant or contract is made under this section, and 60 per centum of such cost in each of the fourth and fifth fiscal years for which the grant or contract is made under this section. "(ii) For purposes of this subparagraph, no grant or contract shall be considered to have been made under this section for a fiscal year ending before September 30,1981."; and (C) by adding at the end thereof the following new paragraph: "(7) Nothing shall prevent the use of funds provided under this section for programs and projects aimed at the prevention, treat- ment, or rehabilitation of drug abuse as well as alcohol abuse and alcoholism.". AUTHORIZATION OF APPROPRIATIONS; PROJECT GRANTS AND CONTRACTS 42 use 4578. SEC. 964. (a) The first sentence of section 312 is amended— (A) by striking out "sections 310 and 311" and inserting in lieu thereof "section 311"; and (B) by striking out "and" after "1980," and by inserting before the period a comma and "and $15,000,000 for the fiscal year ending September 30,1982". Ob) The second sentence of such section is amended by striking out "and" after the semicolon the first place it appears and by inserting before the period a semicolon and "and of the funds appropriated under this section for the fiscal year ending September 30, 1982, at least 25 per centum of the funds shall be obligated for such grants". ALCOHOL ABUSE RESEARCH AND RESEARCH CENTERS 42 use 4588. SEC. 965. (a) Section 503 (42 U.S.C. 4587) is amended— (A) by inserting "(a)" after "503.", (B) by striking out "the purposes of sections 501 and 502" and inserting in lieu thereof "this title", (C) by striking out "and" after "1980,", and (D) by striking out the period and inserting in lieu thereof a comma and the following: "$25,000,000 for the fiscal year ending September 30,1982. Of the funds appropriated under this section for any fiscal year beginning after September 30,1981, not more than 35 per centum may be obligated for grants under section 503.". 42 use 4587. (b) Section 504(b) (42 U.S.C. 4588(b)) is amended by adding at the end the following: "The Secretary shall include in the grants made under this section for fiscal years beginning after September 30,1981, a grant to a designated Center for research on the effects of alcohol on the elderly.". 42 use 4587, (c) Section 503 is inserted after section 504 of such Act and is redesignated as section 504 and the section 504 of such Act relating to National Alcohol Research Centers is redesignated as section 503.
sy PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 595 TECHNICAL AMENDMENTS SEC. 966. (a) The first sentence of section 101(a) is amended (1) by 42 use 4551. striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services", and (2) by striking out "and part C of the Community Mental Health Centers Act". (b) Section 102(1) is amended by striking out "and part C of the 42 use 4552. Community Mental Health Centers Act". (c) Section 103(b) is amended by striking out "Health, Education, 42 use 4553. and Welfare" and inserting in lieu thereof "Health and Human Services". (d) Section 201(bX4) is amended by striking out "Office and Treat- 42 use 4561. ment Act of 1972" and inserting in lieu thereof "Prevention, Treat- ment, and Rehabilitation Act". (e) Section 201(e) is amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". (f)(1) The heading for title HI is amended to read as follows: "TITLE III—TECHNICAL ASSISTANCE AND FEDERAL GRANTS AND CONTRACTS" (2) The heading for part A of title III is amended to read as follows: "PART A—TECHNICAL ASSISTANCE". CHAPTER 2—DRUG ABUSE PREVENTION, TREATMENT, AND REHABILITATION REFERENCE SEC. 967. Except as otherwise specifically provided, whenever in this chapter an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Drug Abuse Prevention, Treatment, and Rehabilita- tion Act. 21 use 1101 ADDITIONAL DRUG ABUSE PREVENTION FUNCTIONS "°** SEC. 968. (a) Section 406(a) is amended— 2i use 1173. (1) by inserting "and" after the semicolon in clause (2); (2) by striking out the semicolon and "and" at the end of clause (3) and inserting in lieu thereof a period; and (3) by striking out clause (4). (b) The section heading for section 406 is amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". (c) The item relating to section 406 in the table of sections for title IV is amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof 'liealth and Human Services". FORMULA GRANTS SEC. 969. (a) Section 409 is repealed. Repeal. Ob) The table of sections for title IV is amended by striking out the ^^ ^ ^ ^^'^^ item relating to section 409.
95 STAT. 596 PUBLIC LAW 97-35—AUG. 13, 1981 GRANTS AND CONTRACTS 21 use 1177. SEC. 970. (aXD The section heading for section 410 is amended to read as follows: ''§410. Grants and contracts for the demonstration of new and more effective prevention, treatment, and rehabilitation programs.". (2) The item relating to section 410 in the table of sections for title IV is amended to read as follows: "410. Grants and contracts for the demonstration of new and more effective preven- tion, treatment, and rehabilitation programs.". (bXD The first sentence of section 410(a) is amended to read as follows: "The Secretary acting through the National Institute on Drug Abuse, may make grants to and enter into contracts with individuals and public and private nonprofit entities— "(1) to provide training seminars, educational programs, and technical assistance for the development, demonstration, and evaluation of drug abuse prevention, treatment, and rehabilita- tion programs; and "(2) to conduct demonstration and evaluation projects, with a high priority on prevention and early intervention projects and on identifying new and more effective drug abuse prevention, treatment, and rehabilitation programs.". (2) Section 410(a) is further amended by adding at the end thereof the following new sentence: "Furthermore, nothing shall prevent the use of funds provided under this section for programs and projects aimed at the prevention, treatment, and rehabilitation of alcohol abuse and alcoholism as well as drug abuse.". Appropriation (c) Section 410(b) is amended by adding at the end thereof the authorization. following new Sentences: "For carrying out the purposes of this section, there are authorized to be appropriated $15,000,000 for the fiscal year ending September 30, 1982. Of the funds appropriated under the preceding sentence, at least 25 per centum of the funds shall be obligated for grants and contracts for primary prevention and intervention programs designed to discourage individuals, par- ticularly individuals in high risk populations, from abusing drugs.". (d)(1)(A) The first sentence of section 410(cX2) is amended by striking out "designated or established under section 409" and inserting in lieu thereof "responsible for the administration of drug abuse prevention activities". (B) The third sentence of such section is amended— (i) by striking out "the" before "State comprehensive plan" and inserting in lieu thereof "any"; and (ii) by striking out "under section 409". (2) Section 410(cX3) is amended— (A) by inserting "and" after the semicolon in clause (B); (B) by striking out the semicolon and "and" at the end of clause (C) and inserting in lieu thereof a period; and (C) by striking out clause (D). (e) Section 410(d) is amended to read as follows: "(d) The Secretary shall encourage the submission of and give special consideration to applications under this section to programs and projects aimed at underserved populations such as racial and ethnic minorities, native Americans, youth, the elderly, women, handicapped individuals, and families of drug abusers.".
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 597 (f) Section 410 is further amended by adding at the end thereof the 2i use 1177. following new subsection: "(g)(1) No grant may be made under this section to a State or to any entity within the government of a State unless the grant application has been duly authorized by the chief executive officer of such State. "(2) No grant or contract may be made under this section for a period in excess of five years, "(3)(A) The amount of any grant or contract under this section may not exceed 100 per centum of the cost of carrying out the grant or contract in the first fiscal year for which the grant or contract is made under this section, 80 per centum of such cost in the second fiscal year for which the grant or contract is made under this section, 70 per centum of such cost in the third fiscal year for which the grant or contract is made under this section, and 60 per centum of such cost in each of the fourth and fifth fiscal years for which the grant or contract is made under this section. "(B) For purposes of this paragraph, no grant or contract shall be considered to have been made under this section for a fiscal year ending before September 30,1981.". RECORDS AND AUDIT SEC. 971. Section 411(a) is amended by striking out "409 or". 21 USC 1178. DRUG ABUSE RESEARCH SEC. 972. (a) Section 503 is amended— 21 USC 1193. (1) by inserting "(a)" before "The Director shall"; (2) by striking out "and" after the semicolon in clause (3); (3) by striking out the period at the end of clause (4) and inserting in lieu thereof a semicolon and "and"; and (4) by inserting after clause (4) the following new clause: "(5) drug abuse prevention, treatment, and rehabilitation."; (5) by striking out "this section" in the last sentence and inserting in lieu thereof "this subsection"; and (6) by adding at the end the following: "(b) The Director may— "(1) make grants or enter into contracts with individuals and public and nonprofit entities for the purpose of determining the causes of drug abuse in a particular area, and "(2) make grants to and enter into contracts with individuals and public and private nonprofit entities for research respecting improved drug maintenance and detoxification techniques and programs. "(c) For the purposes of subsections (a) and (b), there are authorized Appropriation to be appropriated $45,000,000 for the fiscal year ending September authorization. 30,1982.". (b) The heading for section 503 of such Act is amended by striking out "certain research and development" and inserting in lieu thereof "research". (c) The item relating to section 503 in the table of sections for title V of such Act is amended by striking out "certain research and development" and inserting in lieu thereof "research".
95 STAT. 598 PUBLIC LAW 97-35—AUG. 13, 1981 TECHNICAL AMENDMENTS 21 u s e 1115. SEC. 973. (a) Section 205 is amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". 21 u s e 1162. (b) Section 302 is amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Serv- ices". 21 u s e 1172. (cXl) Section 405 is amended by striking out "Health, Education, and Welfare" each place it appears and inserting in lieu thereof "Health and Human Services". (2) The section heading for section 405 is amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". (3) The item relating to section 405 in the table of sections for title IV is amended by striBng out "Health, Education, and Welfare" and inserting in lieu thereof 'llealth and Human Services". 21 u s e 1175. (d) Section 408(g) is amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". 21 u s e 1180. (e) Section 4130b)(2XB) is amended by striking out "single State agencies designated pursuant to section 409(e)(1) of this Act" and inserting in lieu thereof "the State agencies responsible for the administration of drug abuse prevention activities". 21 u s e 1191. (f) Section 501 is amended by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Serv- ices". eonsumer- Subtitle I—Consumer-Patient Radiation Health and Patient Radiation Health and Safety Act of 1981 Safety Act of 1981. SHORT TITLE 42 u s e 10001 SEC. 975. This subtitle may be cited as the "Consumer-Patient note. Radiation Health and Safety Act of 1981". STATEMENT OF FINDINGS 42 use 10001. SEC. 976. The Congress finds that— (1) it is in the interest of public health and safety to minimize unnecessary exposure to potentially hazardous radiation due to medical and dental radiologic procedures; (2) it is in the interest of public health and safety to have a continuing supply of adequately educated persons and appropri- ate accreditation and certification programs administered by State governments; (3) the protection of the public health and safety from unneces- sary exposure to potentially hazardous radiation due to medical and dental radiologic procedures and the assurance of efficacious procedures are the responsibility of State and Federal govern- ments; (4) persons who administer radiologic procedures, including procedures at Federal facilities, should be required to demon- strate competence by reason of education, training, and experi- ence; and (5) the administration of radiologic procedures and the effect on individuals of such procedures have a substantial and direct effect upon United States interstate commerce.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 599 STATEMENT OP PURPOSE SEC. 977. It is the purpose of this subtitle to— 42 use 10002. (1) provide for the establishment of minimum standards by the Federal Government for the accreditation of education programs for persons who administer radiologic procedures and for the certification of such persons; and (2) insure that medical and dental radiologic procedures are consistent with rigorous safety precautions and standards. DEFINITIONS SEC. 978. Unless otherwise expressly provided, for purposes of this '^2 use 10003. subtitle, the term— (1) "radiation" means ionizing and nonionizing radiation in amounts beyond normed background levels from sources such as medical and dental radiologic procedures; (2) "radiologic procedure" means any procedure or article intended for use in— (A) the diagnosis of disease or other medical or dental conditions in humans (including diagnostic X-rays or nucle- ar medicine procedures); or (B) the cure, mitigation, treatment, or prevention of dis- ease in humans; that achieves its intended purpose through the emission of radiation; (3) "radiologic equipment" means any radiation electronic product which emits or detects radiation and which is used or intended for use to— (A) diagnose disease or other medical or dental conditions (including diagnostic X-ray equipment); or (B) cure, mitigate, treat, or prevent disease in humans; that achieves its intended purpose through the emission or detection of radiation; (4) "practitioner" means any licensed doctor of medicine, osteopathy, dentistry, podiatry, or chiropractic, who prescribes radiologic procedures for other persons; (5) "persons who administer radiologic procedures" means any person, other than a practitioner, who intentionally administers radiation to other persons for medical purposes, and includes medic£j radiologic technologists (including dental hygienists and assistants), radiation therapy technologists, and nuclear medi- cine technologists; (6) "Secretary" means the Secretary of Health and Human Services; and (7) "State" means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, and the Trust Territory of the Pacific Islands. PROMULGATION OF STANDARDS SEC. 979. (a) Within twelve months after the date of enactment of Regulation. this Act, the Secretary, in consultation with the Radiation Policy 42 u s e 10004. Council, the Administrator of Veterans' Affairs, the Administrator of the Environmental Protection Agency, appropriate agencies of the States, and appropriate professional organizations, shall by regula- tion promulgate minimum standards for the accreditation of educa- 89-194 O—82 40:QL3
95 STAT. 600 PUBLIC LAW 97-35—AUG. 13, 1981 tional programs to train individuals to perform radiologic proce- dures. Such standards shall distinguish between programs for the education of (1) medical radiologic technologists (including radio- graphers), (2) dental auxiliaries (including dental hygienists and assistants), (3) radiation therapy technologists, (4) nuclear medicine technologists, and (5) such dther kinds of health auxiliaries who administer radiologic procedures as the Secretary determines appro- priate. Such standards shall not be applicable to educational pro- grams for practitioners. Regulation. (b) Within twelve months after the date of enactment of this Act, the Secretary, in consultation with the Radiation Policy Council, the Administrator of Veterans' Affairs, the Administrator of the Envi- ronmental Protection Agency, interested agencies of the States, and appropriate professional organizations, shall by regulation promul- gate minimum standards for the certification of persons who admin- ister radiologic procedures. Such standards shall distinguish between certification of (1) medical radiologic technologists (including radio- graphers), (2) dental auxiliaries (including dental hygienists and assistants), (3) radiation therapy technologists, (4) nuclear medicine technologists, and (5) such other kinds of health auxiliaries who administer radiologic procedures as the Secretary determines appro- priate. Such standards shall include minimum certification criteria for individuals with regard to accredited education, practical experi- ence, successful passage of required examinations, and such other criteria as the Secretary shall deem necessary for the adequate qualification of individuals to administer radiologic procedures. Such standards shall not apply to practitioners. MODEL STATUTE 42 use 10005. SEC. 980. In order to encourage the administration of accreditation and certification programs by the States, the Secretary shall prepare and transmit to the States a model statute for radiologic procedure safety. Such model statute shall provide that— (1) it shall be unlawful in a State for individuals to perform radiologic procedures unless such individuals are certified by the State to perform such procedures; and (2) any educational requirements for certification of individ- uals to perform radiologic procedures shall be limited to educa- tional programs accredited by the State. COMPUANCE 42 use 10006. SEC. 981. (a) The Secretary shall take all actions consistent with law to effectuate the purposes of this subtitle. (b) A State may utilize an accreditation or certification program administered by a private entity if^ (1) such State delegates the administration of the State accredi- tation or certification program to such private entity; (2) such program is approved by the State; and (3) such program is consistent with the minimum Federal standards promulgated under this subtitle for such program. (c) Absent compliance by the States with the provisions of this subtitle within three years after the date of enactment of this Act, the Secretary shall report to the Congress recommendations for legisla- tive changes considered necessary to assure the States' compliance with this subtitle.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 601 (d) The Secretary shall be responsible for continued monitoring of Report to compliance by the States with the applicable provisions of this Congress. subtitle and shall report to the Senate and the House of Representa- tives by January 1, 1982, and January 1 of each succeeding year the status of the States' compliance with the purposes of this subtitle. (e) Notwithstanding any other provision of this section, in the case of a State which has, prior to the effective date of standards and guidelines promulgated pursuant to this subtitle, established stand- ards for the accreditation of educational programs and certification of radiologic technologists, such State shall be deemed to be in compliance with the conditions of this section unless the Secretary determines, after notice and hearing, that such State standards do not meet the minimum standards prescribed by the Secretary or are inconsistent with the purposes of this subtitle. FEDERAL RADIATION GUIDELINES SEC. 982. The Secretary shall, in conjunction with the Radiation 42 u s e 10007. Policy Council, the Administrator of Veterans' Affairs, the Adminis- trator of the Environmental Protection Agency, appropriate agencies of the States, and appropriate professional organizations, promulgate Federal radiation guidelines with respect to radiologic procedures. Such guidelines shall— (1) determine the level of radiation exposure due to radiologic procedures which is unnecessary and specify the techniques, procedures, and methods to minimize such unnecessary expo- sure; (2) provide for the elimination of the need for retakes of diagnostic radiologic procedures; (3) provide for the elimination of unproductive screening programs; (4) provide for the optimum diagnostic information with mini- mum radiologic exposure; and (5) include the therapeutic application of radiation to individ- uals in the treatment of disease, including nuclear medicine applications. APPUCABILITY TO FEDERAL AGENCIES SEC. 983. (a) Except as provided in subsection (b), each department, 42 use 10008. agency, and instrumentality of the executive branch of the Federal Government shall comply with standards promulgated pursuant to this subtitle. (b)(1) The Administrator of Veterans' Affairs, through the Chief Regulations. Medical Director of the Veterans' Administration, shall, to the maximum extent feasible consistent with the responsibilities of such Administrator and Chief Medical Director under subtitle 38, United States Code, prescribe regulations making the standards promulgat- 38 use loi et ed pursuant to this subtitle applicable to the provision of radiologic ^^9 procedures in facilities over which the Administrator has jurisdic- tion. In prescribing and implementing regulations pursuant to this subsection, the Administrator shall consult with the Secretary in order to achieve the maximum possible coordination of the regula- tions, standards, and guidelines, and the implementation thereof, which the Secretary and the Administrator prescribe under this subtitle. (2) Not later than 180 days after standards are promulgated by the Report to Secretary pursuant to this subtitle, the Administrator of Veterans' congressional committees.
95 STAT. 602 PUBLIC LAW 97-35—AUG. 13, 1981 Affairs shall submit to the appropriate committees of Congress a full report with respect to the regulations (including guidelines, policies, and procedures thereunder) prescribed pursuant to paragraph (1) of this subsection. Such report shall include— (A) an explanation of any inconsistency between standards made applicable by such regulations and the standards promul- gated by the Secretary pursuant to this subtitle; (B) an account of the extent, substance, and results of consulta- tions with the Secretary respecting the prescription and imple- mentation of regulations by the Administrator; and (C) such recommendations for legislation and administrative action as the Administrator determines are necessary and desir- able. Publication in (3) The Administrator of Veterans' Affairs shall publish the report Register required by paragraph (2) in the Federal Register. Subtitle J—Orderly Closure, Transfer, and Financial Self-Sufficiency of Public Health Service Hospitals and Clinics FINDINGS AND PURPOSES 42 use 248b SEC. 985. (a) Congress finds that— ^°^^- (1) because of national budgetary considerations, it has become necessary to terminate Federal appropriations for Public Health Service hospitals and clinics, (2) with proper planning and coordination, some of these hospitals and clinics could be transferred to State, local, or private control or become financially self-sufficient and continue to provide effective and efficient health care to individuals in the areas in which they are located, (3) a precipitous closure of these hospitals and clinics will preclude the possibility of such orderly transfer to entities which are willing and able to take over operations at such facilities and will cause unnecessary and costly hardships on the patients and staffs at such facilities and on the communities in which the facilities are located, and (4) it is in the national interest, consistent with sound budg- etary considerations, to assist in the orderly and prompt transfer of such operations to State, local, or private operation or in the achievement of financial self-sufficiency where feasible. (b) The purposes of this subtitle are— (1) to provide for the prompt and orderly closure by October 31, 1981, of Public Health Service hospitals and clinics which cannot reasonably be transferred to State, local, or private operation or become financially self-sufficient and for the transfer or achieve- ment of financial self-sufficiency by September 30,1982, of those hospitals and clinics which can be so transferred or which can achieve such financial self-sufficiency, and (2) to provide for transitional assistance for merchant seamen whose entitlement to receive free care through Public Health Service hospitals and clinics is repealed and who are hospitalized at the end of fiscal year 1981 and require continuing hospitaliza- tion.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 603 ELIMINATION OP MERCHANT MARINE ENTITLEMENT TO HEALTH SERVICES SEC. 986. (a) Subsection (h) of section 2 and subsections (a) and (b) of section 322 of the Public Health Service Act are repealed. 42 use 201, 249. (b)(1) Section 322(e) of such Act is amended— (A) by striking out "entitled to care and treatment under subsection (a) of this section and persons"; and (B) by striking out "subsection (c)" and inserting in lieu thereof "subsection (a) . (2) Subsections (c), (d), and (e) of section 322 of such Act are redesiffliated as subsections (a), (b), and (c), respectively. (3) llie section heading for section 322 of such Act is amended by striking out "SEAMEN" and inserting in lieu thereof "PERSONS UNDER QUARANTINE". (4) Section 332(aX2XC) of such Act is amended by striking out 42 use 254e. "seamen" and inserting in lieu thereof "persons under quarantine". (c) The amendments and repeals made by this section shall take Effective date. effect on October 1,1981. ^^ use 249 note. PROPOSALS FOR TRANSFER OR FINANCIAL SELF-SUFFICIENCY OF PUBLIC HEALTH SERVICE HOSPITALS AND CLINICS SEC. 987. (a) The Secretary of Health and Human Services (herein- 42 use 248b. after in this subtitle referred to as the "Secretary") shall, in accord- ance with this section and notwithstanding section 818 of Public Law 93-155, provide for the closure, transfer, or financial self-sufficiency 42 use 248a. of all hospitals and other stations of the Public Health Service (hereinafter in this subtitle referred to as the "Service") not later than September 30,1982. (b) Not later than July 1, 1981, the Secretary shall notify each Service hospital and other station, and the chief executive officer of each State and of each locality in which such a hospital or other station is located, that the Secretary will accept proposals for the transfer of each such hospital and station from the Service to a public (including Federal) or nonprofit private entity or for the achievement of financial self-sufficiency of each such hospital and station not later than September 30,1982. No such proposal shall be considered by the Secretary if it is submitted later than September 1,1981. (c) The Secretary shall evaluate promptly each proposal submitted under subsection (b) with respect to a hospital or other station and determine, not later than September 30,1981, whether or not under such proposal the hospital or station— (1) will be maintained as a general health care facility provid- ing a range of services to the population within its service area, (2) will continue to make services available to existing patient populations, and (3) has a reasonable expectation of financial viability and, in the case of a hospital or station that is not proposed to be transferred, of financial self-sufficiency. Paragraph (1) shall not apply in the case of a proposal for the transfer of a discrete, minor, freestanding part of a hospital or station to a local public entity for the purpose of continuing the provision of services to refugees. (d)(1) If the Secretary determines that a proposal for a hospital or other station does not meet the standards of subsection (c) or if there is no proposal submitted under subsection (b) with respect to a hospital or other station, the Secretary shall provide for the closure of the hospital or station by not later than October 31,1981.
95 STAT. 604 PUBLIC LAW 97-35—AUG. 13, 1981 (2) If the Secretary determines that a proposal for a hospital or other station meets the standards of subsection (c), the Secretary shall take such steps, within the amounts available through appropri- ations, as may be necessary and proper— (A) to operate (or participate or assist in the operation of) the hospital or station by the Service until the transfer is accom- plished or financial self-sufficiency is achieved, (B) to bring the hospital or station into compliance with applicable licensure, accreditation, and local medical practice standards, and (C) to provide for such other legal, administrative, personnel, and financial arrangements (including allowing payments made with respect to services provided by the hospital or station to be made directly to that hospital or station) as may be necessary to effect a timely and orderly transfer of such hospital or station (including the land, building, and equipment thereof) from the Service, or for the financial self-sufficiency of the hospital or station, not later than September 30,1982. (e) There is established, within the Office of the Assistant Secretary for Health of the Department of Health and Human Services, an identifiable administrative unit which shall have direct responsibili- ty and authority for overseeing the activities under this section. (f) For purposes of this section, a hospital or station cannot be found to be financially self-sufficient if the hospital or station is relsdng, in whole or in part, on direct appropriated funds for its continued operations. CONTINUED CARE FOR MERCHANT SEAMEN HOSPITAUZED IN PUBLIC HEALTH SERVICE HOSPITALS 42 use 249 note. SEC. 988. (a) The Secretary shall provide, by contract or other arrangement with a Federal entity and without charge but subject to subsection (h), for the continuation of inpatient hospital services (and outpatient services related to the condition of hospitalization) to any individual who— (1) on September 30, 1981, is receiving inpatient hospital services at a Public Health Service hospital on the basis of the entitlement contained in section 322(a) of the Public Health Service Act (42 U.S.C. 249(a)), as such section was in effect on such date, for treatment of a condition, (2) requires continued hospitalization after such date for treat- ment of that condition (or requires outpatient services related to such condition), and (3) the Secretary determines has no other source of inpatient hospital services available for continued treatment of that condi- tion. (b) Services may not be provided under subsection (a) to an individual after the earlier of— (1) September 30,1982, (2) the end of the first 60-day consecutive period (beginning after September 30,1981) during the entire period of which the individual is not an inpatient of a hospital. (c) Notwithstanding any other provision of law, the head of any Federal department or agency which provides, under other authority of law and through federal facilities, inpatient hospital services or outpatient services, or both, is authorized to provide inpatient hospi- tal services (and related outpatient services) to individuals under
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 605 contract or other arrangement with the Secretary pursuant to this section. Subtitle K—Office of the Secretary of Health and Human Services APPROPRIATIONS FOR IMMEDIATE OFFICE OF SECRETARY OF HEALTH AND HUMAN SERVICES SEC. 991. The appropriations for the immediate office of the 42USC350i Secretary of Health and Human Services and the Under Secretary of "°^® Health and Human Services for the executive direction of the Department of Health and Human Services may not exceed $4,125,000 for fiscal year 1982, may not exceed $4,485,000 for fiscal year 1983, and may not exceed $4,875,000 for fiscal year 1984. Before the Secretary may request additional funds for the office of the Secretary or the Under Secretary or request the reprograming to such offices of appropriated fimds, the Secretary shall consult with the Committee on Energy and Commerce of the House of Representa- tives. TITLE X—ENERGY AND ENERGY- RELATED PROGRAMS Subtitle A—Department of Energy Authorization CHAPTER 1-CIVILIAN RESEARCH AND DEVELOPMENT AUTHORIZATION OPERATING EXPENSES SEC. 1001. Funds are hereby authorized to be appropriated in 42 use 7270 accordance with section 660 of the Department of Energy Organiza- ^ tion Act for operating expenses for the civilian research and develop- ^^ use 7270. ment programs of the Department of Energy for the following appropriations accounts; (1) Greneral science and research activities, (A) for the fiscal year ending on September 30, 1982, $439,160,000; (B) for the fiscal year ending on September 30, 1983, $471,000,000; and (C) for the fiscal year ending on September 30, 1984, $500,000,000. (2) Energy supply, research and development activities, (A) for the fiscal year ending on September 30, 1982, $2,057,460,000; (B) for the fiscal year ending on September 30, 1983, $2,141,000,000 including programs authorized in section 1007(a)(3XA);and (C) for the fiscal year ending on September 30, 1984, $2,258,000,000 including programs authorized in section 1007(a)(3)(A). (3) Uranium supply and enrichment activities (advanced iso- tope separation), for the fiscal year ending on September 30, 1982, $80,292,000.
95 STAT. 606 PUBLIC LAW 97-35—AUG. 13, 1981 (4) Geothermal resources development fund: geothermal loan guarantee and interest assistance program, (A) for the fiscal year ending on September 30, 1982, $200,000; (B) for the fiscal year ending on September 30, 1983, $200,000; and (C) for the fiscal year ending on September 30, 1984, $200,000. (5) Fossil energy research and development, including capital equipment not related to construction, (A) for the fiscal year ending on September 30, 1982, $460,800,000; (B) for the fiscal year ending on September 30, 1983, $430,800,000; and (C) for the fiscal year ending on September 30, 1984, $430,800,000. (6) Energy conservation research and development, including capital equipment not related to construction, (A) for the fiscal year ending on September 30, 1982, $149,444,000; (B) for the fiscal year ending on September 30, 1983, $154,000,000; and (C) for the fiscal year ending on September 30, 1984, $158,600,000. PLANT AND CAPITAL EQUIPMENT GENERALLY 42 use 7270 SEC. 1002. Funds are hereby authorized to be appropriated in ^°^^- accordance with section 660 of the Department of E n e r ^ Orgginiza- 42 use 7270. tion Act for construction, including planning, construction, acquisi- tion, or modification of facilities, including land acquisition; and acquisition and fabrication of captial equipment not related to construction of the Department of Energy for the following appropri- ations accounts: (1) General science and research activities, (A) for the fiscal year ending on September 30, 1982, $128,300,000 including the amounts authorized to be appro- priated in sections 1003 and 1004(aX3); (B) for the fiscal year ending on September 30, 1983, $137,000,000; and (C) for the fiscal year ending on September 30, 1984, $147,000,000. (2) Energy supply, research and development activities, (A) for the fiscal year ending on September 30, 1982, $370,132,000 including the amounts authorized to be appro- priated in sections 1003 and 1004(aX2); (B) for the fiscal year ending on September 30, 1983, $354,000,000; and (C) for the fiscal year ending on September 30, 1984, $416,200,000. (3) Fossil energy construction, (A) for the fiscal year ending on September 30, 1982, $18,000,000 including the amounts authorized to be appro- priated in sections 1003 and 1004(aXl); (B) for the fiscal year ending on September 30, 1983, $13,000,000; and (C) for the fiscal year ending on September 30, 1984, $6,000,000.
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 607 PRIOR YEAR CONSTRUCTION SEC. 1003. (a) Of the amounts authorized to be appropriated for 42 use 7270 fiscal year 1982 by sections 1001 and 1002, there are authorized to be "°*® appropriated in accordance with section 660 of the Department of Energy Organization Act for construction (including planning, con- 42 USC 7270. struction, acquisition, and modification of facilities, including land acquisition), and for acquisition and fabrication of capital equipment not related to construction, with respect to each prior year project listed in the budget documents submitted to the Congress in support of the fiscal year 1982 budget, amounts not to exceed the appropri- ations amount requested for such project for fiscal year 1982 as set forth in such budget documents, except as otherwise provided (in the case of specific projects) under subsection (b). (b) The amounts otherwise authorized by subsection (a) to be appropriated for fiscal year 1982 or previously authorized are in- creased or decreased as follows: (1) Fossil energy research and development: (A) in the case of acquisition and fabrication of capital equipment not related to construction, the amount so au- thorized for fossil energy research and development is de- creased by $800,000; (2) Energy supply research and development: (A) in the case of acquisition and fabrication of capital equipment not related to construction, the amount so au- thorized for energy supply, research, and development activ- ities is increased by $1,000,000; (B) in the case of Project 81-ES-l, OTEC 40MW Pilot Plant, the amount previously authorized is increased by $6,300,000, for a total project authorization of $36,300,000; (C) in the case of Project 81-T-314, Impurity Studies Experiment Modification (ISX-C), Oak Ridge, Tennessee, the amount previously authorized is increased by $3,500,000, for a total project authorization of $7,000,000; (D) in the case of Project 80-ES-19,250KW, Small Commu- nity Solar Thermal Power Experiment, the amount previ- ously authorized is increased by $4,000,000, for a total project authorization of $8,180,000; (E) in the case of Project 80-G-2, Second 50 MWe Demon- stration Power Plant, Heber, Imperial Valley, California, the amount previously authorized is increased by $11,000,000, for a total project authorization of $19,000,000; (F) in the case of Project 78-6-f, Fuels and Materials Examination Facility, Hanford, Washington, the amount previously authorized is increased by $17,800,000, for a total project authorization of $176,800,000; and (G) in the case of Project 78-3-b, Mike McCormack Fusion Materials Irradiation Test Facility, Hanford, Washington, the amount previously authorized is increased by $14,000,000, for a total project authorization of $47,000,000. (3) Energy conservation: (A) in the CEise of acquisition and fabrication of capital equipment not related to construction, the amount so au- thorized for energy conservation is increased by $326,000. (c) For purposes of this section, the terms "budget documents Definitions. submitted to the Congress in support of the fiscal year 1982 budget" and "budget documents" mean the Department of Energy Congres-
95 STAT. 608 PUBLIC LAW 97-35—AUG. 13, 1981 sional Budget Request, Fiscal Year 1982 (February 1981; DOE/ CR-0011-3). NEW CONSTRUCTION 42 use 7270 SEC. 1004. (a) Of the amounts appropriated for fiscal year 1982 ^°^^- pursuant to the authorization provided in section 1002, funds may be expended for new plant and capital equipment activities, including planning, construction, acquisition, or modification of facilities, in- cluding land acquisition. The following new plant and capital equip- ment activities are hereby authorized in an amount not to exceed the Federal share of the total estimated cost set forth for each project in budget documents submitted to the Congress in support of the fiscal year 1982 budget. Within such amounts the authorizations for the new plant and capital equipment activities for fiscal year 1982 are limited as follows: (1) Fossil energy construction: (A) Project 82-F-506, Surface Water Containment and Waste Water Treatment Facility, Pittsburgh Energy Tech- nology Center, Bruceton, Pennsylvania, $1,000,000; and (B) Project 82-F-505, General plant projects for technology centers, six locations, $6,000,000; and (2) Energy supply research and development: (A) Nuclear fission activities: (i) Project 82-N-315, General plant projects, Richland, Washington, and other sites, $1,100,000; (ii) Project 82-N-310, Modification to reactors, various locations, $2,000,000; and (iii) Project 82-N-312, General plant projects, $11,000,000. (B) Magnetic fusion activities: (i) Project GPP-82, General plant projects, Princeton, New Jersey, and Oak Ridge, Tennessee, $5,700,000. (C) Supporting research and technical analysis activities: (i) Project 82-E-322, High Temperature Materials Laboratory, Oak Ridge National Laboratory, Oak Ridge, Tennessee, $3,500,000; (ii) Project 82-E-321, Accelerator Improvements and Modifications, various locations, $300,000; (iii) Project 82-E-320, General plant projects, various locations, $300,000; (iv) Project 82-E-301, 300 area critical utilities up- grading, Richland, Washington, $1,000,000; (v) Project 82-E-302, Security Facility, Argonne Na- tional Laboratory, Argonne, Illinois, $1,500,000; (vi) Project 82-E-305, Traffic safety improvements, Richland, Washington, $3,800,000; (vii) Project 82-E-306, Railroad modifications, Idaho National Engineering Laboratory, Idaho, $2,000,000. (D) Environmental research and development activities: (i) Project 82-GPP-l, General plant projects, $3,000,000; and (ii) Project 82-V-305, Modifications and additions to environmental research facilities, various locations, $1,000,000. (3) General science and research activities: (A) High energy physics activities: (i) Project 82-E-206, Tevatron II, Fermi National Accelerator Laboratory, Batavia, Illinois, $6,000,000;
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 609 (ii) Project 82-E-205, Accelerator improvements and modifications, various locations, $7,000,000; and (iii) Project 82-E-204, General plant projects, various locations, $6,000,000; (B) Nuclear physics activities: (i) Project 82-E-223, Argonne Tandem-Linac Accel- erator System (ATLAS), Argonne National Laboratory, Argonne, Illinois, $4,000,000; (ii) Project 82-EJ-221, Accelerator improvements and modifications, various locations $2,000,000; and (iii) Project 82-E-222, General plant projects, various locations, $2,800,000. Definitions. (b) For purposes of this section, the terms "budget documents submitted to the Congress in support of the fiscal year 1982 budget" and "budget documents" mean the Department of Energy C!ongres- sional Budget Request, Fiscal Year 1982 (February 1981; DOE/ CR-0011-3). CHAPTER 2-CONSERVATION, INFORMATION, AND REGULATION AUTHORIZATIONS FOR FISCAL YEARS 1982, 1983, AND 1984 SEC. 1005. Funds are hereby authorized to be appropriated in 42 use 7270 accordance with section 660 of the Department of Energy Organiza- ^°^- tion Act for operating expenses for— ^2 use 7270. (1) Energy conservation, (A) for the fiscal year ending on September 30, 1982, $363,056,000; (B) for the fiscal year ending on September 30, 1983, $387,400,000; and (C) for the fiscal year ending on September 30, 1984, $399,000,000. (2) Regulation and information activities— (A) for the fiscal year ending on September 30, 1982, including— (i) for economic regulation, $44,600,000; (ii) for the Federal Energy Regulatory Commission, $80,400,000; and (iii) for the Energy Information Administration, $84,986,000; (B) for the fiscal year ending on September 30, 1983, $265,000,000; and (C) for the fiscal year ending on September 30, 1984, $275,000,000. (3) Strategic Petroleum Reserve, to carry out part B of title I of the Energy Policy and Conservation Act, except acquisition, transportation, and injection of petroleum products for the Reserve and the carrying out of any drawdown and distribution of the Reserve— (A) for the fiscal year ending September 30, 1983, $366,319,000; and (B) for the fiscal year ending on September 30, 1984, $864,429,000.
95 STAT. 610 PUBLIC LAW 97-35—AUG. 13, 1981 CHAPTER 3—POWER MARKETING ADMINISTRATIONS 42 use 7270 SEQ. 1006. Funds are hereby authorized to be appropriated in "°^®- accordance w i t h section 660 of t h e D e p a r t m e n t of E n e r g y Organiza- 42 u s e 7270. tion Act for t h e ci\dlian p r o g r a m s of t h e D e p a r t m e n t of E n e r g y for the following appropriations accounts: (1) Alaska Power Administration operation and maintenance, (A) for the fiscal year ending on September 30, 1982, $3,538,000 of which $50,000 shall be reserved for an emergen- cy fund to £issure continuous operations during unusual or emergency conditions; (B) for the fiscal year ending on September 30, 1983, $3,374,000; and (C) for the fiscal year ending on September 30, 1984, $3,374,000. (2) Southeastern Power Administration operation and mainte- nance, (A) for the fiscal year ending on September 30, 1982, $7,237,000; (B) for the fiscal year ending on September 30, 1983, $11,848,000; and (C) for the fiscal year ending on September 30, 1984, $24,240,000. (3) Southwestern Power Administration operation mainte- nance, (A) for the fiscal year ending on September 30, 1982, $20,239,000; (B) for the fiscal year ending on September 30, 1983, $38,119,000; and (C) for the fiscal year ending on September 30, 1984, $40,254,000. (4) Western Area Power Administration construction rehabili- tation, operation and maintenance, (A) for the fiscal year ending on September 30, 1982, $210,774,000; (B) for the fiscal year ending on September 30, 1983, $226,400,000; and (C) for the fiscal year ending on September 30, 1984, $259,700,000. (5) Western Area Power Administration emergency fund, (A) for the fiscal year ending on September 30, 1982, $500,000; (B) for the fiscal year ending on September 30, 1983, $500,000; and (C) for the fiscal year ending on September 30, 1984, $500,000. CHAPTER 4—OTHER ACTIVITIES OPERATING EXPENSES 42 use 7270 SEC. 1007. (a) Funds are hereby authorized to be appropriated in ^°^- accordance with section 660 of the Department of Energy Organiza- tion Act for operating expenses— (1) uranium supply and enrichment activities, (A) other than advanced isotope separation, for the fiscal year ending on September 30,1982, for—
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 611 (i) gaseous diffusion operations and support, $961,825,000; (ii) gas centrifuge operations and support, $5,200,000; (iii) uranium enrichment process development, $93,075,000; (iv) pro-am administration, $3,100,000; and (v) uranium resource assessment, $9,700,000; (B) including advanced isotope separation, for the fiscal year ending on September 30, 1983, $1,621,600,000; and (C) including advanced isotope separation, for the fiscal year ending on September 30,1984, $1,973,600,000. (2) Department administration, (A) for the fiscal year ending on September 30, 1982, $206,000,000; (B) for the fiscal year ending on September 30, 1983, $246,963,000, including plant and capital equipment; and (C) for the fiscal year ending on September 30, 1984, $246,963,000, including plant and capital equipment. (3) Energy supply research and development, (A) solar and hydropower for the fiscal year ending on September 30,1982, $11,700,000; and (B) commercial waste management, (i) other than programs authorized in section 10()1(2)(A), for the fiscal year ending on September 30, 1982, $67,370,000; (ii) for the fiscal year ending on September 30, 1983, $284,148,000; and (iii) for the fiscal year ending on September 30,1984, $300,000,000. (4) Energy conservation, including capital equipment not relat- ed to construction, (A) for the fiscal year ending on September 30, 1982, $32,600,000; (B) for the fiscal year ending on September 30, 1983, $33,600,000; and (C) for the fiscal year ending on September 30, 1984, $34,600,000. (5) Energy production, demonstration, and distribution, (A) for the fiscal year ending on September 30, 1982, $230,963,000; (B) for the fiscal year ending on September 30, 1983, $377,195,000; and (C) for the fiscal year ending on September 30, 1984, $292,305,000. (h) Any State receiving financial assistance for energy extension service activities pursuant to the National Energy Extension Service Act shall be required to provide funds from non-Federal sources for such activities in an amount no less than 20 per centum of the amount allocated to such State under such Act during any fiscal year. PLANT AND CAPITAL EQUIPMENT GENERALLY SEC. 1008. Funds are hereby authorized to be appropriated in 42 use 7270 accordance with section 660 of the Department of E n e r ^ Organiza- "°^ tion Act for construction, including planning, construction, acquis!- 42 use 7270. tion, or modification of facilities, including land acquisition; and acquisition and fabrication of capital equipment not related to
95 STAT. 612 PUBLIC LAW 97-35—AUG. 13, 1981 construction of the Department of Energy for the following appropri- ations accounts: (1) Uranium supply and enrichment activities, including research and development activities, (A) for the fiscal year ending on September 30, 1982, (i) $748,250,000 including the amounts authorized in sections 1009 and lOlO(aXl), and (ii) $200,000 for uranium resource assessment, capital equipment not related to construction; (B) for the fiscal year ending on September 30, 1983, $1,002,800,000; and (C) for the fiscal year ending on September 30, 1984, $981,500,000. (2) Department administration, (A) for the fiscal year ending on September 30, 1982, $40,963,000 including the amounts authorized in sections 1009(a) and 1010(a)(2). (3) Energy supply research and development, commercial waste management, (A) for the fiscal year ending on September 30, 1982, $975,000. PRIOR YEAR CONSTRUCTION 42 use 7270 SEC. 1009. (a) Of the amounts authorized to be appropriated for "°*®- fiscal year 1982 by section 1008, there are authorized to be appropri- ated in accordance with section 660 of the Department of Energy 42 use 7270. Organization Act for construction (including planning, construction, acquisition, and modification of facilities, including land acquisition), and for acquisition £ind fabrication of capital equipment not related to construction, with respect to each prior year project listed in the budget documents submitted to the Congress in support of the fiscal year 1982 budget amounts not to exceed the appropriations amount requested for such project for fiscal year 1982 as set forth in such budget documents, except as otherwise provided (in the case of specific projects) under subsection (b). (b) The amounts authorized to be appropriated for fiscal year 1982 with respect to the following projects are as follows: (1) Uranium supply and enrichment activities, (A) Project 80-UE-5, Motor and switchgear upgrading, gaseous diffusion plants, the amount previously authorized is increased by $6,600,000 for a total project authorization of $26,500,000; and (B) Project 76-8-g, Enriched uranium production facilities, Portsmouth, Ohio, the amount previously authorized is increased by $601,()00,000 for a total project authorization of $1,552,845,000. Definitions. (c) For purposes of this section, the terms "budget documents submitted to the Congress in support of the fiscal year 1982 budget" and "budget documents" mean the Department of Energy Congres- sional Budget Request, Fiscal Year 1982 (February 1981; DOE/ CR-0011-3). NEW CONSTRUCTION 42 use 7270 SEC. 1010. (a) Of the amounts appropriated for fiscal year 1982 " pursuant to the authorization provided in section 1008, funds may be expended for new plant and capital equipment activities, including planning, construction, acquisition, or modification of facilities, including land acquisition. The following new plant and capital
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 613 equipment activities are hereby authorized in an amount not to exceed the Federal share of the total estimated cost set forth for each project in budget documents submitted to the Congress in support of the fiscal year 1982 budget. Within such amounts the authorizations for the new plant and capital equipment activities for fiscal year 1982 are limited as follows: (1) Uranium supply and enrichment activities, (A) Project 82-R-410, General plant projects, various loca- tions, including Grand Junction, Colorado, $17,600,000; (B) Project 82-R-411, UF6 cylinders and storage yards, gaseous diffusion plants, $11,000,000; (C) Project 82-R-412, Cooling tower modifications. Oak Ridge, Tennessee and Portsmouth, Ohio, gaseous diffusion plants, $8,000,000; (D) Project 82-R-413, Improved UF6 containment and gaseous diffusion plants, $7,100,000; (E) Project 82-R-414, Purge and cascade withdrawal modi- fications, gaseous diffusion plant, Paducah, Kentucky, $9,000,000; (F) Project 82-R-415, Fire alarm system replacement, gaseous diffusion plants, $4,700,000; (G) Project 82-R-416, Environmental protection and safety modifications, Phase II, gaseous diffusion plants, $2,000,000; (H) Project 82-R-417, Air distribution system upgrading, gaseous diffusion plant, Paducah, Kentucky, $2,700,000; (I) Project 82-R-418, Advanced Centrifuge Test Facilities, Oak Ridge, Tennessee, $6,000,000; and (J) Project 82-N-402, General plant projects, various loca- tions, $650,000. (2) Departmental administration, (A) Project 82-A-601, Modifications for energy manage- ment, various locations, $14,100,000; (B) Project 82-A-602, Advanced Test Reactor (ATR) waste heat recovery, Idaho National Engineering Laboratory, Idaho, $4,900,000; (C) Project 82-A-603, High temperature water distribu- tion system, Los Alamos Scientific Laboratory, New Mexico, $5,000,000; (D) Project 82-C-601, Plcmt engineering and design, var- ious locations, $2,000,000; and (E) Capital equipment not related to construction for departmental administration activities, $5,563,000. 0)) For purposes of this section, the terms "budget documents Definitions. submitted to the Congress in support of the fiscal year 1982 budget" and "budget documents" mean the Department of Energy Congres- sional Budget Request, Fiscal Year 1982 (February 1981; DOE/ CR-0011-3). GENERAL REQUIREMENT SEC. 1011. (a) At the same time that the President submits his budget to the Congress for fiscal years 1983 and 1984 for the Department of Enermr as required by the Budget and Accounting Act, 1921, there shall be submitted, in addition to any other existing 31 use i. requirements, a tabular listing for the recommended level of program activity and subactivity funding the fiscal years 1983 and 1984 of civilian energy activities in the same format as is contained in the program tables relating to this title appearing in the statement of
95 STAT. 614 PUBLIC LAW 97-35—AUG. 13, 1981 managers aocompanyiiig the conference report on the Omnibus Budget Reconciliation Act of 1981 (H.R. 3982; 97th Congress). (b) At the same time that the President submits his budget to the Congress those plant and capital amounts requested for that fiscal year, additional authorization requested for prior year projects, and any new construction requests shall also be submitted as a separate request for authorization of appropriations for civilian research and development activities. CHAPTER 5—UNITED STATES ENERGY TARGETS ENERGY TARGETS SEC. 1012. United States energy targets: ENERGY TARGETS [Quadrillion Btu's per year] 1985 1990 1995 2000 Domestic production: OilandNGL 18 17 18 18 Natural gas 18 18 16 15 Coal 21 27 82 41 Nuclear 5 7 8 9 Hydro geothermal 3 4 4 4 Renewables 2 3 5 6_ Subtotal 67 76 83 93 Imports: OU 18 14 11 7 Natural gas 2 3 3 2 Coal -1.8 -2.1 -2.2 -2.4 Subtotal 18 15 11 7 Total supply 85 90 94 100 End-use consumption: Petroleum liquids 32 29 28 27 Gas 17 18 18 18 Direct coal 5 6 6 7 Electricity 9 10 11 12 Decentralized solar.— 2 3 4 5_ Subtotal 64 66 67 68 Conversion losses.... 21 25 28 32 Stock increase Total consumption 85 91 94 100 Subtitle B—Powerplant and Industrial Fuel Use Act of 1978 Provisions APPUCABIUTY OF FUEL USE RESTRICTIONS TO CERTAIN EXISTING ELECTRIC POWERPLANTS SEC. 1021. (a) Title m of the Powerplant and Industrial Fuel Use Act of 1978 is amended by striking out section 301 (42 U.S.C. 8341) and inserting in lieu thereof the following:
PUBLIC LAW 97-35—AUG. 13, 1981 95 STAT. 615 "SEC. 301. EXISTING ELECTRIC POWERPLANTS. "(a) CERTIFICATION BY POWERPLANTS OF COAL CAPABILITY.—At any time, the owner or operator of an existing electric powerplant may certify to the Secretary, for purposes of subsection (b)— "(1) whether or not such powerplant has or previously had the technical capability to use coal or another alternate fuel as a primary energy source; "(2) whether or not such powerplant could have the technical capability to use coal or another alternate fuel as a primary energy source without having— "(A) substantial physical modification of the powerplant, or "(B) substantial reduction in the rated capacity of the powerplant; and "(3) whether or not it is financially feasible to use coal or another alternate fuel as a primary energy source in such a powerplant. "(b) AUTHORITY OF SECRETARY TO PROHIBIT WHERE COAL OR ALTER- NATE FUEL CAPABILITY EXISTS.—The Secretary may prohibit, in accordance with section 303(a) or (b), the use of petroleum or natural 42 use 8343. gas, or both, as a primary energy source in any existing electric powerplant, if an affirmative certification under subsection (aXD, (2), and (3) is in effect with respect to such powerplant and if, after examining the basis for the certification, the Secretary concurs with the certification. "(c) AUTHORITY OF SECRETARY TO PROHIBIT EXCESSIVE U S E IN MIXTURES.—At any time, the owner or operator of an existing electric powerplant may certify to the Secretary for purposes of this subsec- tion whe