
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC11707]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 122--NATIVE HAWAIIAN HEALTH CARE
 
Sec. 11707. Administration of grants and contracts


(a) Terms and conditions

    The Secretary shall include in any grant made or contract entered 
into under this chapter such terms and conditions as the Secretary 
considers necessary or appropriate to ensure that the objectives of such 
grant or contract are achieved.

(b) Periodic review

    The Secretary shall periodically evaluate the performance of, and 
compliance with, grants and contracts under this chapter.

(c) Administrative requirements

    The Secretary may not make a grant or enter into a contract under 
this chapter with an entity unless the entity--
        (1) agrees to establish such procedures for fiscal control and 
    fund accounting as may be necessary to ensure proper disbursement 
    and accounting with respect to the grant or contract;
        (2) agrees to ensure the confidentiality of records maintained 
    on individuals receiving health services under the grant or 
    contract;
        (3) with respect to providing health services to any population 
    of Native Hawaiians, a substantial portion of which has a limited 
    ability to speak the English language--
            (A) has developed and has the ability to carry out a 
        reasonable plan to provide health services under the grant or 
        contract through individuals who are able to communicate with 
        the population involved in the language and cultural context 
        that is most appropriate; and
            (B) has designated at least one individual, fluent in both 
        English and the appropriate language, to assist in carrying out 
        the plan;

        (4) with respect to health services that are covered in the plan 
    of the State of Hawaii approved under title XIX of the Social 
    Security Act [42 U.S.C. 1396 et seq.]--
            (A) if the entity will provide under the grant or contract 
        any such health services directly--
                (i) the entity has entered into a participation 
            agreement under such plans; and
                (ii) the entity is qualified to receive payments under 
            such plan; and

            (B) if the entity will provide under the grant or contract 
        any such health services through a contract with an 
        organization--
                (i) the organization has entered into a participation 
            agreement under such plan; and
                (ii) the organization is qualified to receive payments 
            under such plan; and

        (5) agrees to submit to the Secretary and to Papa Ola Lokahi an 
    annual report that describes the utilization and costs of health 
    services provided under the grant or contract (including the average 
    cost of health services per user) and that provides such other 
    information as the Secretary determines to be appropriate.

(d) Contract evaluation

    (1) If, as a result of evaluations conducted by the Secretary, the 
Secretary determines that an entity has not complied with or 
satisfactorily performed a contract entered into under section 11705 of 
this title, the Secretary shall, prior to renewing such contract, 
attempt to resolve the areas of noncompliance or unsatisfactory 
performance and modify such contract to prevent future occurrences of 
such noncompliance or unsatisfactory performance. If the Secretary 
determines that such noncompliance or unsatisfactory performance cannot 
be resolved and prevented in the future, the Secretary shall not renew 
such contract with such entity and is authorized to enter into a 
contract under section 11705 of this title with another entity referred 
to in section 11705(b) of this title that provides services to the same 
population of Native Hawaiians which is served by the entity whose 
contract is not renewed by reason of this subsection.
    (2) In determining whether to renew a contract entered into with an 
entity under this chapter, the Secretary shall consider the results of 
the evaluation under this section.
    (3) All contracts entered into by the Secretary under this chapter 
shall be in accordance with all Federal contracting laws and regulations 
except that, in the discretion of the Secretary, such contracts may be 
negotiated without advertising and may be exempted from the provisions 
of the Act of August 24, 1935 (40 U.S.C. 270a et seq.).
    (4) Payments made under any contract entered into under this chapter 
may be made in advance, by means of reimbursement, or in installments 
and shall be made on such conditions as the Secretary deems necessary to 
carry out the purposes of this chapter.

(e) Limitation on use of funds for administrative expenses

    Except for grants and contracts under section 11706 of this title, 
the Secretary may not grant to, or enter into a contract with, an entity 
under this chapter unless the entity agrees that the entity will not 
expend more than 10 percent of amounts received pursuant to this chapter 
for the purpose of administering the grant or contract.

(f) Report

    (1) For each fiscal year during which an entity receives or expends 
funds pursuant to a grant or contract under this chapter, such entity 
shall submit to the Secretary and to Papa Ola Lokahi a quarterly report 
on--
        (A) activities conducted by the entity under the grant or 
    contract;
        (B) the amounts and purposes for which Federal funds were 
    expended; and
        (C) such other information as the Secretary may request.

    (2) The reports and records of any entity which concern any grant or 
contract under this chapter shall be subject to audit by the Secretary, 
the Inspector General of the Department of Health and Human Services, 
and the Comptroller General of the United States.

(g) Annual private audit

    The Secretary shall allow as a cost of any grant made or contract 
entered into under this chapter the cost of an annual private audit 
conducted by a certified public accountant.

(Pub. L. 100-579, Sec. 8, Oct. 31, 1988, 102 Stat. 2921; Pub. L. 100-
690, title II, Sec. 2308, Nov. 18, 1988, 102 Stat. 4228; Pub. L. 102-
396, title IX, Sec. 9168, Oct. 6, 1992, 106 Stat. 1948.)

                       References in Text

    The Social Security Act, referred to in subsec. (c)(4), is act Aug. 
14, 1935, ch. 531, 49 Stat. 620, as amended. Title XIX of the Act is 
classified generally to subchapter XIX (Sec. 1396 et seq.) of chapter 7 
of this title. For complete classification of this Act to the Code, see 
section 1305 of this title and Tables.
    Act of August 24, 1935, referred to in subsec. (d)(3), is act Aug. 
24, 1935, ch. 642, 49 Stat. 793, as amended, known as the Miller Act, 
which is classified generally to sections 270a to 270d-1 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 270a of 
Title 40 and Tables.

                          Codification

    The 1992 amendment is based on section 1 of S. 2681, One Hundred 
Second Congress, as passed by the Senate on Aug. 7, 1992, and enacted 
into law by section 9168 of Pub. L. 102-396. Section 9168, which 
referred to S. 2681, as passed by the Senate on ``September 12, 1992'', 
has been treated as referring to S. 2681, as passed by the Senate on 
Aug. 7, 1992, to reflect the probable intent of Congress.
    Pub. L. 100-579 and Pub. L. 100-690 enacted identical sections.


                               Amendments

    1992--Pub. L. 102-396 amended section generally. Prior to amendment, 
section defined terms for purposes of this chapter.

                  Section Referred to in Other Sections

    This section is referred to in section 300x-63 of this title.
