
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: 42USC238l]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
        SUBCHAPTER I--ADMINISTRATION AND MISCELLANEOUS PROVISIONS
 
                    Part B--Miscellaneous Provisions
 
Sec. 238l. Recovery


(a) Right of United States to recover base amount plus interest

    If any facility with respect to which funds have been paid under the 
Community Mental Health Centers Act [42 U.S.C. 2689 et seq.] (as such 
Act was in effect prior to October 1, 1981) is, at any time within 
twenty years after the completion of remodeling, construction, or 
expansion or after the date of its acquisition--
        (1) sold or transferred to any entity (A) which would not have 
    been qualified to file an application under section 222 of such Act 
    [42 U.S.C. 2689j] (as such section was in effect prior to October 1, 
    1981) or (B) which is disapproved as a transferee by the State 
    mental health agency or by another entity designated by the chief 
    executive officer of the State, or
        (2) ceases to be used by a community mental health center in the 
    provision of comprehensive mental health services,

the United States shall be entitled to recover from the transferor, 
transferee, or owner of the facility, the base amount prescribed by 
subsection (c)(1) of this section plus the interest (if any) prescribed 
by subsection (c)(2) of this section.

(b) Notice of sale, transfer, or change

    The transferor and transferee of a facility that is sold or 
transferred as described in subsection (a)(1) of this section, or the 
owner of a facility the use of which changes as described in subsection 
(a)(2) of this section, shall provide the Secretary written notice of 
such sale, transfer, or change within 10 days after the date on which 
such sale, transfer, or cessation of use occurs or within 30 days after 
October 22, 1985, whichever is later.

(c) Base amount; interest

    (1) The base amount that the United States is entitled to recover 
under subsection (a) of this section is the amount bearing the same 
ratio to the then value (as determined by the agreement of the parties 
or in an action brought in the district court of the United States for 
the district in which the facility is situated) of so much of the 
facility as constituted an approved project or projects as the amount of 
the Federal participation bore to the cost of the remodeling, 
construction, expansion, or acquisition of the project or projects.
    (2)(A) The interest that the United States is entitled to recover 
under subsection (a) of this section is the interest for the period (if 
any) described in subparagraph (B) at a rate (determined by the 
Secretary) based on the average of the bond equivalent rates of ninety-
one-day Treasury bills auctioned during that period.
    (B) The period referred to in subparagraph (A) is the period 
beginning--
        (i) if notice is provided as prescribed by subsection (b) of 
    this section, 191 days after the date on which such sale, transfer, 
    or cessation of use occurs, or
        (ii) if notice is not provided as prescribed by subsection (b) 
    of this section, 11 days after such sale, transfer, or cessation of 
    use occurs,

and ending on the date the amount the United States is entitled to 
recover is collected.

(d) Waiver of recovery rights

    The Secretary may waive the recovery rights of the United States 
under subsection (a) of this section with respect to a facility (under 
such conditions as the Secretary may establish by regulation) if the 
Secretary determines that there is good cause for waiving such rights.

(e) Pre-judgment lien

    The right of recovery of the United States under subsection (a) of 
this section shall not, prior to judgment, constitute a lien on any 
facility.

(July 1, 1944, ch. 373, title II, Sec. 243, formerly title V, Sec. 515, 
formerly Pub. L. 88-164, title II, Sec. 225, as added Pub. L. 94-63, 
title III, Sec. 303, July 29, 1975, 89 Stat. 326; amended Pub. L. 95-
622, title I, Sec. 110(c), Nov. 9, 1978, 92 Stat. 3420; renumbered title 
V, Sec. 515, and amended Pub. L. 97-35, title IX, Sec. 902(e)(2)(A), 
Aug. 13, 1981, 95 Stat. 560; renumbered title XXI, Sec. 2115, Pub. L. 
98-24, Sec. 2(a)(1), Apr. 26, 1983, 97 Stat. 176; Pub. L. 99-129, title 
II, Sec. 226(a), Oct. 22, 1985, 99 Stat. 546; renumbered title XXIII, 
Sec. 2315, Pub. L. 99-660, title III, Sec. 311(a), Nov. 14, 1986, 100 
Stat. 3755; renumbered title XXV, Sec. 2513, Pub. L. 100-607, title II, 
Sec. 201(1), (3), Nov. 4, 1988, 102 Stat. 3062, 3063; renumbered title 
XXVI, Sec. 2613, Pub. L. 100-690, title II, Sec. 2620(a), Nov. 18, 1988, 
102 Stat. 4244; renumbered title XXVII, Sec. 2713, Pub. L. 101-381, 
title I, Sec. 101(1), (2), Aug. 18, 1990, 104 Stat. 576; Pub. L. 102-
229, title II, Sec. 208, Dec. 12, 1991, 105 Stat. 1716; Pub. L. 102-239, 
Sec. 1, Dec. 17, 1991, 105 Stat. 1912; renumbered title II, Sec. 243, 
Pub. L. 103-43, title XX, Sec. 2010(a)(1)-(3), June 10, 1993, 107 Stat. 
213.)

                       References in Text

    The Community Mental Health Centers Act, referred to in subsec. (a), 
is title II of Pub. L. 88-164, as added by Pub. L. 94-63, title III, 
Sec. 303, July 29, 1975, 89 Stat. 309, and amended, which was classified 
principally to subchapter III (Sec. 2689 et seq.) of chapter 33 of this 
title prior to its repeal by Pub. L. 97-35, title IX, Sec. 902(e)(2)(B), 
Aug. 13, 1981, 95 Stat. 560. Section 222 of the Community Mental Health 
Centers Act was classified to section 2689j of this title prior to its 
repeal.

                          Codification

    Section was classified to section 300aaa-12 of this title prior to 
renumbering by Pub. L. 103-43, to section 300cc-14 of this title prior 
to renumbering by Pub. L. 100-607, to section 300aa-14 of this title 
prior to renumbering by Pub. L. 99-660, to section 229d of this title 
prior to renumbering by Pub. L. 98-24, and to section 2689m of this 
title prior to renumbering by Pub. L. 97-35.


                               Amendments

    1991--Subsec. (d). Pub. L. 102-229 and Pub. L. 102-239 amended 
subsec. (d) identically, substituting ``subsection (a)'' for 
``subsection (a)(2)''.
    1985--Pub. L. 99-129 amended section generally. Prior to amendment, 
section read as follows: ``If any facility of a community mental health 
center acquired, remodeled, constructed, or expanded with funds provided 
under the Community Mental Health Centers Act is, at any time within 
twenty years after the completion of such remodeling, construction, or 
expansion or after the date of its acquisition with such funds--
        ``(1) sold or transferred to any person or entity (A) which is 
    not qualified to file an application under section 222 of the 
    Community Mental Health Centers Act, or (B) which is not approved as 
    a transferee by the State agency of the State in which such facility 
    is located, or its successor; or
        ``(2) not used by a community mental health center in the 
    provision of comprehensive mental health services, and the Secretary 
    has not determined that there is good cause for termination of such 
    use,
the United States shall be entitled to recover from either the 
transferor or the transferee in the case of a sale or transfer or from 
the owner in the case of termination of use an amount bearing the same 
ratio to the then value (as determined by the agreement of the parties 
or by action brought in the United States district court for the 
district in which the center is situated) of so much of such facility or 
center as constituted an approved project or projects, as the amount of 
the Federal participation bore to the acquisition, remodeling, 
construction, or expansion cost of such project or projects. Such right 
of recovery shall not constitute a lien upon such facility or center 
prior to judgment.''
    1981--Pub. L. 97-35 substituted ``the Community Mental Health 
Centers Act'' for ``this subchapter'' and ``section 222 of the Community 
Mental Health Centers Act'' for ``section 2689j of this title''.
    1978--Pub. L. 95-622 substituted ``this subchapter'' for ``this 
part''.


                    Effective Date of 1985 Amendment

    Section 226(b) of Pub. L. 99-129 provided that: ``In the case of any 
facility that was or is constructed, remodeled, expanded, or acquired on 
or before the date of enactment of this Act [Oct. 22, 1985] or within 
180 days after the date of enactment of this Act, the period described 
in clause (i) or (ii), as the case may be, of section 2115(c)(2)(B) [now 
243(c)(2)(B)] of the Public Health Service Act [subsec. (c)(2)(B)(i), 
(ii) of this section] (as amended by subsection (a) of this section) 
shall begin no earlier than 181 days after the date of enactment of this 
Act.''


                    Effective Date of 1981 Amendment

    Section 902(h) of Pub. L. 97-35 provided that: ``The amendments made 
by this section [amending this section and sections 201, 225a [now 
238d], 229b [now 238j], 243, 246, 289k-1, 300d-4, 300d-6, 300l-2, 300m, 
300m-3, 9412, and 9511 of this title, repealing sections 247b-1, 247b-2, 
255, 300d to 300d-3, 300d-5, 300d-7 to 300d-9, 300d-21, 2689 to 2689l, 
2689n to 2689p, 2689r to 2689aa, 9411, 9421 to 9423, 9431 to 9438, 9451, 
9452, 9461 to 9465, 9471 to 9473, 9481, 9491 to 9493, 9502, 9512, 9521, 
and 9523 of this title, repealing provisions set out as notes under 
sections 246 and 2689 of this title, and transferring section 2689m to 
section 229d [now 238l] of this title] shall take effect October 1, 
1981.''


                    Effective Date of 1978 Amendment

    Section 110(c) of Pub. L. 95-622 provided that the amendment made by 
that section is effective July 29, 1975.


                             Effective Date

    Section effective July 1, 1975, see section 608 of Pub. L. 94-63, 
set out as an Effective Date of 1975 Amendment note under section 247b 
of this title.


   Other Legal Rights of United States Not Adversely Affected by 1985 
                                Amendment

    Section 226(c) of Pub. L. 99-129 provided that: ``The amendments 
made by subsection (a) of this section [amending this section] shall not 
adversely affect other legal rights of the United States.''
