
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: 42USC291e]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
  SUBCHAPTER IV--CONSTRUCTION AND MODERNIZATION OF HOSPITALS AND OTHER 
                           MEDICAL FACILITIES
 
Part A--Grants and Loans for Construction and Modernization of Hospitals 
                      and Other Medical Facilities
 
Sec. 291e. Projects for construction or modernization


(a) Application; contents

    For each project pursuant to a State plan approved under this part, 
there shall be submitted to the Surgeon General, through the State 
agency, an application by the State or a political subdivision thereof 
or by a public or other nonprofit agency. If two or more such agencies 
join in the project, the application may be filed by one or more of such 
agencies. Such application shall set forth--
        (1) a description of the site for such project;
        (2) plans and specifications therefor, in accordance with 
    regulations prescribed under section 291c of this title;
        (3) reasonable assurance that title to such site is or will be 
    vested in one or more of the agencies filing the application or in a 
    public or other nonprofit agency which is to operate the facility on 
    completion of the project;
        (4) reasonable assurance that adequate financial support will be 
    available for the completion of the project and for its maintenance 
    and operation when completed;
        (5) reasonable assurance that all laborers and mechanics 
    employed by contractors or subcontractors in the performance of 
    construction or modernization on the project will be paid wages at 
    rates not less than those prevailing on similar work in the locality 
    as determined by the Secretary of Labor in accordance with the 
    Davis-Bacon Act, as amended [40 U.S.C. 276a et seq.]; and the 
    Secretary of Labor shall have with respect to the labor standards 
    specified in this paragraph the authority and functions set forth in 
    Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176) and section 
    276c of title 40; and
        (6) a certification by the State agency of the Federal share for 
    the project.

(b) Approval by Surgeon General; requisites; additional approval by 
        Secretary of Health and Human Services

    The Surgeon General shall approve such application if sufficient 
funds to pay the Federal share of the cost of such project are available 
from the appropriate allotment to the State, and if the Surgeon General 
finds (1) that the application contains such reasonable assurance as to 
title, financial support, and payment of prevailing rates of wages; (2) 
that the plans and specifications are in accord with the regulations 
prescribed pursuant to section 291c of this title; (3) that the 
application is in conformity with the State plan approved under section 
291d of this title and contains an assurance that in the operation of 
the project there will be compliance with the applicable requirements of 
the regulations prescribed under section 291c(e) of this title, and with 
State standards for operation and maintenance; and (4) that the 
application has been approved and recommended by the State agency, 
opportunity has been provided, prior to such approval and 
recommendation, for consideration of the project by the public or 
nonprofit private agency or organization which has developed the 
comprehensive regional, metropolitan area, or other local area plan or 
plans referred to in section 246(b) of this title covering the area in 
which such project is to be located or, if there is no such agency or 
organization, by the State agency administering or supervising the 
administration of the State plan approved under section 246(a) of this 
title, and the application is for a project which is entitled to 
priority over other projects within the State in accordance with the 
regulations prescribed pursuant to section 291c(a) of this title. 
Notwithstanding the preceding sentence, the Surgeon General may approve 
such an application for a project for construction or modernization of a 
rehabilitation facility only if it is also approved by the Secretary of 
Health and Human Services.

(c) Opportunity for hearing required prior to disapproval

    No application shall be disapproved until the Surgeon General has 
afforded the State agency an opportunity for a hearing.

(d) Amendments subject to same approval as original applications

    Amendment of any approved application shall be subject to approval 
in the same manner as an original application.

(e) Outpatient facilities; requirements of applicants

    Notwithstanding any other provision of this subchapter, no 
application for an outpatient facility shall be approved under this 
section unless the applicant is (1) a State, political subdivision, or 
public agency, or (2) a corporation or association which owns and 
operates a nonprofit hospital (as defined in section 291o of this title) 
or which provides reasonable assurance that the services of a general 
hospital will be available to patients of such facility who are in need 
of hospital care.

(July 1, 1944, ch. 373, title VI, Sec. 605, as added Pub. L. 88-443, 
Sec. 3(a), Aug. 18, 1964, 78 Stat. 453; amended Pub. L. 91-296, title I, 
Secs. 111(a), 116(e), June 30, 1970, 84 Stat. 340, 342; Pub. L. 96-88, 
title V, Sec. 509(b), Oct. 17, 1979, 93 Stat. 695.)

                       References in Text

    The Davis-Bacon Act, referred to in subsec. (a)(5), is act Mar. 3, 
1931, ch. 411, 46 Stat. 1494, as amended, which is classified generally 
to section 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.
    Reorganization Plan Numbered 14 of 1950, referred to in subsec. 
(a)(5), is set out in the Appendix to Title 5, Government Organization 
and Employees.


                            Prior Provisions

    A prior section 291e, act July 1944, ch. 373, title VI, Sec. 622, as 
added Aug. 13, 1946, ch. 958, Sec. 2, 60 Stat. 1041; amended 1953 Reorg. 
Plan No. 1, Secs. 5, 8, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 631, 
authorized Surgeon General to prescribe general regulations, prior to 
the general amendment of this subchapter by Pub. L. 88-443. See section 
291c of this title.
    A prior section 291h(a), (c), act July 1, 1944, ch. 373, title VI, 
Sec. 625, as added Aug. 13, 1946, ch. 958, Sec. 2, 60 Stat. 1041; 
amended Oct. 25, 1949, ch. 722, Sec. 8, 63 Stat. 901, related to subject 
matter similar to this section, prior to the general amendment of this 
subchapter by Pub. L. 88-443.
    A prior section 291v(d), act July 1, 1944, ch. 373, title VI, 
Sec. 654, as added July 12, 1954, ch. 471, Sec. 3, 68 Stat. 463, related 
to subject matter similar to this section, prior to the general 
amendment of this subchapter by Pub. L. 88-443.


                               Amendments

    1970--Subsec. (b)(4). Pub. L. 91-296, Sec. 111(a), inserted 
provisions requiring that the appropriate area wide health planning 
agency be given an opportunity to consider the project for which an 
application is made before approval is given.
    Subsec. (e). Pub. L. 91-296, Sec. 116(e), substituted ``an 
outpatient facility'' for ``a diagnostic or treatment center'' and 
inserted provisions extending coverage to include corporations and 
associations which, although not owning or operating hospitals offer 
services of a general hospital to patients in need of hospital care.


                    Effective Date of 1970 Amendment

    Section 111(a) of Pub. L. 91-296 provided that the amendment made by 
that section is effective with respect to applications approved under 
this subchapter after June 30, 1970.
    Amendment by section 116(e) of Pub. L. 91-296 applicable with 
respect to applications approved under this subchapter after June 30, 
1970, see section 116(g) of Pub. L. 91-296, set out as a note under 
section 291o of this title.

                          Transfer of Functions

    ``Secretary of Health and Human Services'' substituted for 
``Secretary of Health, Education, and Welfare'' in subsec. (b) pursuant 
to section 509(b) of Pub. L. 96-88 which is classified to section 
3508(b) of Title 20, Education.
    Office of Surgeon General abolished by section 3 of Reorg. Plan No. 
3 of 1966, eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, and 
functions thereof transferred to Secretary of Health, Education, and 
Welfare by section 1 of Reorg. Plan No. 3 of 1966, set out as a note 
under section 202 of this title. Secretary of Health, Education, and 
Welfare redesignated Secretary of Health and Human Services by section 
509(b) of Pub. L. 96-88 which is classified to section 3508(b) of Title 
20.


              Applications Approved Prior to Aug. 18, 1964

    Section 3(b)(1) of Pub. L. 88-443, providing that applications 
approved, and allotments appropriated prior to Aug. 18, 1964, shall be 
governed by this subchapter as in effect prior to such date, is set out 
as an Effective Date note under section 291 of this title.


 Funds for Modernization Projects; Conditions To Be Met Before Approval

    Section 3(b)(5) of Pub. L. 88-443 provided that no application with 
respect to a modernization project may be approved for purposes of 
receiving funds from an allotment under section 291(a)(2) of this title 
before July 1, 1965, or before a State plan has been approved, as well 
as certain other requirements. See Effective Date note set out under 
section 291 of this title.


                            Cross References

    Additional payments in cases of amended applications, see section 
291f of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 291f, 291g, 291h, 291i, 
291j-3 of this title.
