
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC8135]

 
                      TITLE 38--VETERANS' BENEFITS
 
            PART VI--ACQUISITION AND DISPOSITION OF PROPERTY
 
   CHAPTER 81--ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY 
FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY
 
   SUBCHAPTER III--STATE HOME FACILITIES FOR FURNISHING DOMICILIARY, 
                     NURSING HOME, AND HOSPITAL CARE
 
Sec. 8135. Applications with respect to projects; payments

    (a) Any State desiring to receive assistance for a project for 
construction of State home facilities (or acquisition of a facility to 
be used as a State home facility) must submit to the Secretary an 
application. Such application shall set forth the following:
        (1) The amount of the grant requested with respect to such 
    project which may not exceed 65 percent of the estimated cost of 
    construction (or of the estimated cost of facility acquisition and 
    construction) of such project.
        (2) A description of the site for such project.
        (3) Plans and specifications for such project in accordance with 
    regulations prescribed by the Secretary pursuant to section 
    8134(a)(2) of this title.
        (4) Reasonable assurance that upon completion of such project 
    the facilities will be used principally to furnish to veterans the 
    level of care for which such application is made and that not more 
    than 25 percent of the bed occupancy at any one time will consist of 
    patients who are not receiving such level of care as veterans.
        (5) Reasonable assurance that title to such site is or will be 
    vested solely in the applicant, a State home, or another agency or 
    instrumentality of the State.
        (6) Reasonable assurance that adequate financial support will be 
    available for the construction of the project (or for facility 
    acquisition and construction of the project) by July 1 of the fiscal 
    year for which the application is approved and for its maintenance 
    and operation when complete.
        (7) Reasonable assurance that the State will make such reports 
    in such form and containing such information as the Secretary may 
    from time to time reasonably require, and give the Secretary, upon 
    demand, access to the records upon which such information is based.
        (8) Reasonable assurance that the rates of pay for laborers and 
    mechanics engaged in construction of the project will be not less 
    than the prevailing local wage rates for similar work as determined 
    in accordance with the Act of March 3, 1931 (40 U.S.C. 276a--276a-5) 
    (known as the Davis-Bacon Act).
        (9) In the case of a project for acquisition of a facility, 
    reasonable assurance that the estimated total cost of acquisition of 
    the facility and of any expansion, remodeling, and alteration of the 
    acquired facility will not be greater than the estimated cost of 
    construction of an equivalent new facility.

    (b)(1) Any State seeking to receive assistance under this subchapter 
for a project that would involve construction or acquisition of either 
nursing home or domiciliary facilities shall include with its 
application under subsection (a) the following:
        (A) Documentation (i) that the site for the project is in 
    reasonable proximity to a sufficient concentration and population of 
    veterans who are 65 years of age and older, and (ii) that there is a 
    reasonable basis to conclude that the facilities when complete will 
    be fully occupied.
        (B) A financial plan for the first three years of operation of 
    such facilities.
        (C) A five-year capital plan for the State home program for that 
    State.

    (2) Failure to provide adequate documentation under paragraph (1)(A) 
or to provide an adequate financial plan under paragraph (1)(B) shall be 
a basis for disapproving the application.
    (c)(1) Upon receipt of an application under subsection (a) for 
financial assistance under this subchapter, the Secretary--
        (A) shall determine whether the application meets the 
    requirements of this section and of the regulations prescribed under 
    section 8134 of this title;
        (B) shall notify the State submitting the application whether 
    the application conforms with those requirements and, if it does 
    not, of the actions necessary to bring the application into 
    conformance with those requirements; and
        (C) shall determine the priority of the project described in the 
    application in accordance with the provisions of this subsection.

    (2) Subject to paragraphs (3) and (5)(C) of this subsection, the 
Secretary shall accord priority to applications in the following order:
        (A) An application from a State that has made sufficient funds 
    available for the project for which the grant is requested so that 
    such project may proceed upon approval of the grant without further 
    action required by the State to make such funds available for such 
    purpose.
        (B) An application from a State for a project at an existing 
    facility to remedy a condition or conditions that have been cited by 
    an accrediting institution, by the Secretary, or by a local 
    licensing or approving body of the State as being threatening to the 
    lives or safety of the patients in the facility.
        (C) An application from a State that has not previously applied 
    for award of a grant under this subchapter for construction or 
    acquisition of a State nursing home.
        (D) An application for construction or acquisition of a nursing 
    home or domiciliary from a State that the Secretary determines, in 
    accordance with regulations under this subchapter, has a great need 
    for the beds to be established at such home or facility.
        (E) An application from a State for renovations to a State home 
    facility other than renovations described in subparagraph (B).
        (F) An application for construction or acquisition of a nursing 
    home or domiciliary from a State that the Secretary determines, in 
    accordance with regulations under this subchapter, has a significant 
    need for the beds to be established at such home or facility.
        (G) An application that meets other criteria as the Secretary 
    determines appropriate and has established in regulations.
        (H) An application for construction or acquisition of a nursing 
    home or domiciliary from a State that the Secretary determines, in 
    accordance with regulations under this subchapter, has a limited 
    need for the beds to be established at such home or facility.

    (3) In according priorities to projects under paragraph (2) of this 
subsection, the Secretary--
        (A) may not accord any priority to a project for the 
    construction or acquisition of a hospital; and
        (B) may not accord any priority to a project which would expand 
    a State's capacity to furnish hospital care in a State home.

    (4) The Secretary shall establish a list of approved projects 
(including projects that have been conditionally approved under 
paragraph (6) of this subsection), in the order of their priority, as of 
August 15 of each year. The Secretary shall award grants in the order of 
their priority on the list during the fiscal year beginning on October 1 
of the calendar year in which the list was made.
    (5)(A) The Secretary shall defer approval of an application that 
otherwise meets the requirements of this section if the State submitting 
the application does not, by the July 1 deadline (as defined in 
subparagraph (D) of this paragraph), demonstrate to the satisfaction of 
the Secretary that the State has provided adequate financial support for 
construction of the project.
    (B) In a case in which approval of an application is deferred under 
subparagraph (A) of this paragraph, the Secretary shall select for award 
of a grant or grants under this subsection an application or 
applications which would not have been approved during the fiscal year 
but for the deferral and to which the Secretary accords the highest 
priority under paragraph (2) of this subsection.
    (C) An application deferred in accordance with the requirements of 
this paragraph shall be accorded priority in any subsequent fiscal year 
ahead of applications that had not been approved before the first day of 
the fiscal year in which the deferred application was first approved.
    (D) For the purposes of this paragraph, the term ``July 1 deadline'' 
means July 1 of the fiscal year in which the State is notified by the 
Secretary of the availability of funding for a grant for such project.
    (6)(A) The Secretary may conditionally approve a project under this 
section, conditionally award a grant for the project, and obligate funds 
for the grant if the Secretary determines that the application for the 
grant is sufficiently complete to warrant awarding the grant and that, 
based on assurances provided by the State submitting the application, 
the State will complete the application and meet all the requirements 
referred to in paragraph (1)(A) of this subsection by the date, not 
later than 180 days after the date of the conditional approval, 
specified by the Secretary.
    (B) If a State does not complete the application and meet all the 
requirements referred to in such paragraph by the date specified by the 
Secretary under subparagraph (A) of this paragraph, the Secretary shall 
rescind the conditional approval and award under such subparagraph and 
deobligate the funds previously obligated in connection with the 
application. In the event the Secretary rescinds conditional approval of 
a project under this subparagraph, the Secretary may not further 
obligate funds for the project during the fiscal year in which the 
Secretary rescinds such approval.
    (7)(A) Subject to subparagraph (B) of this paragraph, the Secretary 
may increase the amount of any grant awarded to any State for a project 
under this section by an amount by which the Secretary determines that 
the estimated cost of the construction or acquisition has increased from 
the estimated cost on which the Secretary based the determination to 
award the grant, without regard to the position of such project on the 
list established under paragraph (4) of this subsection, if the 
Secretary determines that the grant was awarded before the State entered 
into a contract for the construction or acquisition provided for in such 
project.
    (B) A grant may not be increased under subparagraph (A) of this 
paragraph by more than 10 percent of the amount of the grant initially 
awarded for such project, and the amount of such grant, as increased, 
may not exceed 65 percent of the cost of the project.
    (d) No application submitted to the Secretary under this section 
shall be disapproved until the Secretary has afforded the applicant 
notice and an opportunity for a hearing.
    (e) The amount of a grant under this subchapter shall be paid to the 
applicant or, if designated by the applicant, the State home for which 
such project is being carried out or any other agency or instrumentality 
of the applicant. Such amount shall be paid, in advance or by way of 
reimbursement, and in such installments consistent with the progress of 
the project as the Secretary may determine and certify for payment to 
the Secretary of the Treasury. Funds paid under this section for an 
approved project shall be used solely for carrying out such project as 
so approved.
    (f) Any amendment of any application, whether or not approved, shall 
be subject to approval in the same manner as an original application.

(Added Pub. L. 88-450, Sec. 4(a), Aug. 19, 1964, 78 Stat. 502, 
Sec. 5035; amended Pub. L. 89-311, Sec. 7(a), Oct. 31, 1965, 79 Stat. 
1157; Pub. L. 93-82, title IV, Sec. 403(e), Aug. 2, 1973, 87 Stat. 196; 
Pub. L. 94-581, title II, Secs. 206(b), 210(e)(10), Oct. 21, 1976, 90 
Stat. 2859, 2865; Pub. L. 95-62, Sec. 3(7)-(12), July 5, 1977, 91 Stat. 
262, 263; Pub. L. 97-295, Sec. 4(92), Oct. 12, 1982, 96 Stat. 1313; Pub. 
L. 98-528, title I, Sec. 105(3), Oct. 19, 1984, 98 Stat. 2689; Pub. L. 
99-166, title II, Sec. 205, Dec. 3, 1985, 99 Stat. 953; Pub. L. 99-576, 
title II, Sec. 224(b), (c), Oct. 28, 1986, 100 Stat. 3262, 3263; Pub. L. 
100-322, title II, Sec. 206, May 20, 1988, 102 Stat. 513; renumbered 
Sec. 8135 and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), 
May 7, 1991, 105 Stat. 238, 239; Pub. L. 102-54, Sec. 14(f)(7), June 13, 
1991, 105 Stat. 288; Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 
105 Stat. 404, 405; Pub. L. 102-585, title IV, Secs. 403(a), 404(a), 
Nov. 4, 1992, 106 Stat. 4954; Pub. L. 103-446, title XII, 
Sec. 1201(d)(18), Nov. 2, 1994, 108 Stat. 4684; Pub. L. 104-262, title 
III, Sec. 342(b)(3), Oct. 9, 1996, 110 Stat. 3206; Pub. L. 106-117, 
title II, Sec. 207(b), Nov. 30, 1999, 113 Stat. 1565.)

                       References in Text

    Act of March 3, 1931, referred to in subsec. (a)(8), is act Mar. 3, 
1931, ch. 411, 46 Stat. 1494, as amended, known as the Davis-Bacon Act, 
which is classified generally to sections 276a to 276a-5 of Title 40, 
Public Buildings, Property, and Works. For complete classification of 
this Act to the Code, see Short Title note set out under section 276a of 
Title 40 and Tables.


                               Amendments

    1999--Subsec. (a). Pub. L. 106-117, Sec. 207(b)(1), in introductory 
provisions, substituted ``set forth the following:'' for ``set forth--
'', in pars. (1) to (7), capitalized the first letter of the first word 
and substituted a period for the comma at the end, in par. (8), 
capitalized the first letter of the first word and substituted a period 
for ``, and'' at the end, and in par. (9), capitalized the first letter 
of the first word.
    Subsec. (b). Pub. L. 106-117, Sec. 207(b)(3), added subsec. (b). 
Former subsec. (b) redesignated (c).
    Subsec. (c). Pub. L. 106-117, Sec. 207(b)(2), redesignated subsec. 
(b) as (c). Former subsec. (c) redesignated (d).
    Subsec. (c)(1). Pub. L. 106-117, Sec. 207(b)(4)(A), in introductory 
provisions, substituted ``under subsection (a) for financial assistance 
under this subchapter'' for ``for a grant under subsection (a) of this 
section''.
    Subsec. (c)(2)(A). Pub. L. 106-117, Sec. 207(b)(4)(B)(i), struck out 
``the construction or acquisition of'' after ``sufficient funds 
available for''.
    Subsec. (c)(2)(B) to (H). Pub. L. 106-117, Sec. 207(b)(4)(B)(ii), 
added subpars. (B) to (H) and struck out former subpars. (B) to (D) 
which read as follows:
    ``(B) An application from a State that does not have a State home 
facility constructed or acquired with assistance under this subchapter 
(or for which such a grant has been made).
    ``(C) An application from a State which the Secretary determines, in 
accordance with criteria and procedures specified in regulations which 
the Secretary shall prescribe, has a greater need for nursing home or 
domiciliary beds or adult day health care facilities than other States 
from which applications are received.
    ``(D) An application that meets such other criteria as the Secretary 
determines are appropriate and has established in regulations.''
    Subsec. (c)(3)(A). Pub. L. 106-117, Sec. 207(b)(4)(C), added subpar. 
(A) and struck out former subpar. (A) which read as follows: ``shall 
accord priority only to projects which would involve construction or 
acquisition of either nursing home or domiciliary buildings or 
construction (other than new construction) of adult day health care 
buildings; and''.
    Subsecs. (d) to (f). Pub. L. 106-117, Sec. 207(b)(2), redesignated 
subsecs. (c) to (e) as (d) to (f), respectively.
    1996--Subsec. (b)(2)(C). Pub. L. 104-262, Sec. 342(b)(3)(A), 
inserted ``or adult day health care facilities'' after ``domiciliary 
beds''.
    Subsec. (b)(3)(A). Pub. L. 104-262, Sec. 342(b)(3)(B), inserted ``or 
construction (other than new construction) of adult day health care 
buildings'' before semicolon.
    1994--Subsec. (a)(3). Pub. L. 103-446 substituted ``section 
8134(a)(2)'' for ``section 8134(2)''.
    1992--Subsec. (b)(6)(A). Pub. L. 102-585, Sec. 403(a), substituted 
``180 days'' for ``90 days''.
    Subsec. (b)(6)(B). Pub. L. 102-585, Sec. 404(a), inserted at end 
``In the event the Secretary rescinds conditional approval of a project 
under this subparagraph, the Secretary may not further obligate funds 
for the project during the fiscal year in which the Secretary rescinds 
such approval.''
    1991--Pub. L. 102-40, Sec. 402(b)(1), renumbered section 5035 of 
this title as this section.
    Subsec. (a). Pub. L. 102-83 substituted ``Secretary'' for 
``Administrator'' wherever appearing.
    Pub. L. 102-54 amended subsec. (a) as in effect immediately before 
the enactment of Pub. L. 102-40 by substituting ``Any State'' for 
``After regulations have been prescribed by the Administrator under 
section 5034 of this title, any State''.
    Pub. L. 102-40, Sec. 402(d)(1), substituted ``8134(2)'' for 
``5034(2)'' in par. (3).
    Subsec. (b). Pub. L. 102-83 substituted ``Secretary'' for 
``Administrator'' wherever appearing.
    Subsec. (b)(1)(A). Pub. L. 102-40, Sec. 402(d)(1), substituted 
``8134'' for ``5034''.
    Subsecs. (c), (d). Pub. L. 102-83 substituted ``Secretary'' for 
``Administrator'' wherever appearing.
    1988--Subsec. (b)(4). Pub. L. 100-322, Sec. 206(a), (b)(1), inserted 
``(including projects that have been conditionally approved under 
paragraph (6) of this subsection)'' after ``projects'' and substituted 
``August 15'' for ``July 1''.
    Subsec. (b)(6), (7). Pub. L. 100-322, Sec. 206(b)(2), added pars. 
(6) and (7).
    1986--Subsec. (b). Pub. L. 99-576, Sec. 224(b), amended subsec. (b) 
generally, substituting provisions consisting of pars. (1) to (5) for 
former provisions consisting of pars. (1) and (2).
    Subsec. (d). Pub. L. 99-576, Sec. 224(c), struck out par. (1) 
designation, substituted ``The amount of a grant under this subchapter 
shall be paid'' for ``Upon approving an application under this section, 
the Administrator shall certify to the Secretary of the Treasury the 
amount of the grant so approved, but in no event an amount greater than 
65 percent of the estimated cost of construction (or of the estimated 
cost of facility acquisition and construction) of the project, and shall 
designate the appropriation from which it shall be paid. Such 
certification shall provide for payment'' and struck out par. (2) which 
read as follows: ``No one State may receive in any fiscal year in the 
aggregate under this subchapter more than one-third of the amount 
appropriated for carrying out this subchapter in such fiscal year.''
    1985--Subsec. (a)(6). Pub. L. 99-166, Sec. 205(a), inserted ``by 
July 1 of the fiscal year for which the application is approved''.
    Subsec. (b). Pub. L. 99-166, Sec. 205(b), designated existing 
provisions as par. (1), redesignated cls. (1) to (4) as (A) to (D), 
respectively, and added par. (2).
    1984--Subsec. (a). Pub. L. 98-528, Sec. 105(3)(A), inserted ``(or 
acquisition of a facility to be used as a State home facility)'' after 
``State home facilities'' in provisions preceding par. (1).
    Subsec. (a)(1). Pub. L. 98-528, Sec. 105(3)(B), inserted ``(or of 
the estimated cost of facility acquisition and construction)'' after 
``cost of construction''.
    Subsec. (a)(6). Pub. L. 98-528, Sec. 105(3)(C), inserted ``(or for 
facility acquisition and construction of the project)'' after 
``construction of the project''.
    Subsec. (a)(8). Pub. L. 98-528, Sec. 105(3)(D), substituted ``the 
Act of March 3, 1931 (40 U.S.C. 276a--276a-5)'' for ``sections 276a 
through 276a-5 of title 40''.
    Subsec. (a)(9). Pub. L. 98-528, Sec. 105(3)(E), added par. (9).
    Subsec. (b)(2). Pub. L. 98-528, Sec. 105(3)(F), inserted ``(or of 
the estimated cost of facility acquisition and construction)'' after 
``cost of construction''.
    Subsec. (b)(4). Pub. L. 98-528, Sec. 105(3)(G), substituted ``the 
carrying out of such project'' for ``the construction of such project''.
    Subsec. (d)(1). Pub. L. 98-528, Sec. 105(3)(H), inserted ``(or of 
the estimated cost of facility acquisition and construction)'' after 
``cost of construction'' in first sentence, substituted ``carried out'' 
for ``constructed'' in second sentence, substituted ``the project'' for 
``construction'' in third sentence, struck out ``the construction of'' 
before ``an approved project'' in fourth sentence.
    1982--Subsecs. (a)(1), (4), (b)(2), (d)(1). Pub. L. 97-295 
substituted ``percent'' for ``per centum'' wherever appearing.
    1977--Subsec. (a). Pub. L. 95-62, Sec. 3(7), (8), substituted 
``State home facilities must submit'' for ``State home facilities for 
furnishing nursing home care must submit'' in provisions preceding par. 
(1) and, ``to furnish to veterans the level of care for which such 
application is made and that not more than 25 per centum of the bed 
occupancy at any one time will consist of patients who are not receiving 
such level of care as war veterans'' for ``to furnish nursing home care 
to veterans and that not more than 10 per centum of the bed occupancy at 
any one time will consist of patients who are not receiving nursing home 
care as veterans'' in par. (4).
    Subsec. (b)(3). Pub. L. 95-62, Sec. 3(9), substituted ``reasonable 
assurances under subsection (a) of this section as the Administrator'' 
for ``reasonable assurances as to use, title, financial support, reports 
and access to records, and payment of prevailing rates of wages, as the 
Administrator''.
    Subsec. (c). Pub. L. 95-62, Sec. 3(10), substituted ``afforded the 
applicant notice and an opportunity for a hearing'' for ``afforded the 
applicant an opportunity for a hearing''.
    Subsec. (d). Pub. L. 95-62, Sec. 3(11), designated existing 
provisions as par. (1), substituted ``the Administrator shall certify to 
the Secretary of the Treasury the amount of the grant so approved'' for 
``the Administrator shall certify to the Secretary of the Treasury the 
amount of the grant requested with respect to such project in such 
application'', and added par. (2).
    Subsec. (e). Pub. L. 95-62, Sec. 3(12), substituted ``amendment of 
any application, whether or not approved,'' for ``amendment of any 
approved application''.
    1976--Subsec. (a)(4). Pub. L. 94-581, Sec. 206(b), substituted 
``veterans'' for ``war veterans'' in two places.
    Subsec. (b). Pub. L. 94-581, Secs. 206(b), 210(e)(10), substituted 
``the Administrator'' for ``he'' in provisions preceding par. (1) and 
``veterans'' for ``war veterans'' in par. (4).
    1973--Subsecs. (a)(1), (b)(2), (d). Pub. L. 93-82 substituted ``65 
per centum'' for ``50 per centum''.
    1965--Subsec. (b). Pub. L. 89-311 repealed par. (3) which placed a 
limit of 10 per centum of the funds appropriated for any fiscal year 
pursuant to section 5033(a) of this title upon the amount which could be 
used to assist in the construction of facilities in any one state, and 
redesignated pars. (4) and (5) as pars. (3) and (4), respectively.


                    Effective Date of 1992 Amendment

    Section 403(b) of Pub. L. 102-585 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to projects 
that are conditionally approved after September 30, 1992.''
    Section 404(b) of Pub. L. 102-585 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to 
rescissions of conditional approval of projects after the date of the 
enactment of this Act [Nov. 4, 1992].''


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-576 effective July 1, 1987, see section 
224(e) of Pub. L. 99-576, set out as a note under section 8131 of this 
title.


                    Effective Date of 1977 Amendment

    Amendment by Pub. L. 95-62 effective Oct. 1, 1977, with provision 
for the continuing force and effect of the terms and conditions of 
grants made prior to Oct. 1, 1977, under former section 644 of this 
title and with additional provision for the modification of the terms 
and conditions of both grants made under former section 644 of this 
title prior to Oct. 1, 1977, and of grants made under this subchapter 
prior to Oct. 1, 1977, see section 5 of Pub. L. 95-62, set out as a note 
under section 8131 of this title.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-581 effective Oct. 21, 1976, see section 211 
of Pub. L. 94-581, set out as a note under section 111 of this title.


                    Effective Date of 1973 Amendment

    Amendment by Pub. L. 93-82 effective Sept. 1, 1973, see section 501 
of Pub. L. 93-82, set out as a note under section 1701 of this title.


                               Regulations

    Section 224(f) of Pub. L. 99-576 provided that: ``The Administrator 
of Veterans' Affairs shall prescribe regulations not later than April 1, 
1987, to implement the amendments made by this section [amending this 
section and sections 5031 and 5033 [now 8131 and 8133] of this title].''


                          Transition Provisions

    Pub. L. 106-117, title II, Sec. 207(c), Nov. 30, 1999, 113 Stat. 
1566, provided that:
    ``(1) The provisions of sections 8134 and 8135 of title 38, United 
States Code, as in effect on November 10, 1999, shall continue in effect 
after that date with respect to applications described in section 
8135(b)(2)(A) of such title, as in effect on that date, that are 
identified in paragraph (2) (and to projects and grants pursuant to 
those applications). The Secretary [of Veterans Affairs] shall accord 
priority among those applications in the order listed in paragraph (2).
    ``(2) Applications covered by paragraph (1) are the following:
        ``(A) Any application for a fiscal year 1999 priority one 
    project.
        ``(B) Any application for a fiscal year 2000 priority one 
    project that was submitted by a State that (i) did not receive grant 
    funds from amounts appropriated for fiscal year 1999 under the State 
    home grant program, and (ii) does not have any fiscal year 1999 
    priority one projects.
    ``(3) For purposes of this subsection--
        ``(A) the term `fiscal year 1999 priority one project' means a 
    project on the list of approved projects established by the 
    Secretary on October 29, 1998, under section 8135(b)(4) of title 38, 
    United States Code, as in effect on that date that (pursuant to 
    section 8135(b)(2)(A) of that title) is in the grouping of projects 
    on that list designated as Priority Group 1;
        ``(B) the term `fiscal year 2000 priority one project' means a 
    project on the list of approved projects established by the 
    Secretary on November 3, 1999, under section 8135(b)(4) of title 38, 
    United States Code, as in effect on that date that (pursuant to 
    section 8135(b)(2)(A) of that title) is in the grouping of projects 
    on that list designated as Priority Group 1; and
        ``(C) the term `State home grant program' means the grant 
    program under subchapter III of chapter 81 of title 38, United 
    States Code.''
