
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: 42USC300x-31]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
                      SUBCHAPTER XVII--BLOCK GRANTS
 
    Part B--Block Grants Regarding Mental Health and Substance Abuse
 
subpart ii--block grants for prevention and treatment of substance abuse
 
Sec. 300x-31. Restrictions on expenditure of grant


(a) In general

                      (1) Certain restrictions

        A funding agreement for a grant under section 300x-21 of this 
    title is that the State involved will not expend the grant--
            (A) to provide inpatient hospital services, except as 
        provided in subsection (b) of this section;
            (B) to make cash payments to intended recipients of health 
        services;
            (C) to purchase or improve land, purchase, construct, or 
        permanently improve (other than minor remodeling) any building 
        or other facility, or purchase major medical equipment;
            (D) to satisfy any requirement for the expenditure of non-
        Federal funds as a condition for the receipt of Federal funds;
            (E) to provide financial assistance to any entity other than 
        a public or nonprofit private entity; or
            (F) to carry out any program prohibited by section 300ee-5 
        of this title.

              (2) Limitation on administrative expenses

        A funding agreement for a grant under section 300x-21 of this 
    title is that the State involved will not expend more than 5 percent 
    of the grant to pay the costs of administering the grant.

    (3) Limitation regarding penal and correctional institutions

        A funding agreement for a State for a grant under section 300x-
    21 of this title is that, in expending the grant for the purpose of 
    providing treatment services in penal or correctional institutions 
    of the State, the State will not expend more than an amount equal to 
    the amount expended for such purpose by the State from the grant 
    made under section 300x-1a \1\ of this title to the State for fiscal 
    year 1991 (as section 300x-1a \1\ of this title was in effect for 
    such fiscal year).
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    \1\ See References in Text note below.
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(b) Exception regarding inpatient hospital services

                (1) Medical necessity as precondition

        With respect to compliance with the agreement made under 
    subsection (a) of this section, a State may expend a grant under 
    section 300x-21 of this title to provide inpatient hospital services 
    as treatment for substance abuse only if it has been determined, in 
    accordance with guidelines issued by the Secretary, that such 
    treatment is a medical necessity for the individual involved, and 
    that the individual cannot be effectively treated in a community-
    based, nonhospital, residential program of treatment.

                         (2) Rate of payment

        In the case of an individual for whom a grant under section 
    300x-21 of this title is expended to provide inpatient hospital 
    services described in paragraph (1), a funding agreement for the 
    grant for the State involved is that the daily rate of payment 
    provided to the hospital for providing the services to the 
    individual will not exceed the comparable daily rate provided for 
    community-based, nonhospital, residential programs of treatment for 
    substance abuse.

(c) Waiver regarding construction of facilities

                           (1) In general

        The Secretary may provide to any State a waiver of the 
    restriction established in subsection (a)(1)(C) of this section for 
    the purpose of authorizing the State to expend a grant under section 
    300x-21 of this title for the construction of a new facility or 
    rehabilitation of an existing facility, but not for land 
    acquisition.

               (2) Standard regarding need for waiver

        The Secretary may approve a waiver under paragraph (1) only if 
    the State demonstrates to the Secretary that adequate treatment 
    cannot be provided through the use of existing facilities and that 
    alternative facilities in existing suitable buildings are not 
    available.

                             (3) Amount

        In granting a waiver under paragraph (1), the Secretary shall 
    allow the use of a specified amount of funds to construct or 
    rehabilitate a specified number of beds for residential treatment 
    and a specified number of slots for outpatient treatment, based on 
    reasonable estimates by the State of the costs of construction or 
    rehabilitation. In considering waiver applications, the Secretary 
    shall ensure that the State has carefully designed a program that 
    will minimize the costs of additional beds.

                         (4) Matching funds

        The Secretary may grant a waiver under paragraph (1) only if the 
    State agrees, with respect to the costs to be incurred by the State 
    in carrying out the purpose of the waiver, to make available non-
    Federal contributions in cash toward such costs in an amount equal 
    to not less than $1 for each $1 of Federal funds provided under 
    section 300x-21 of this title.

              (5) Date certain for acting upon request

        The Secretary shall act upon a request for a waiver under 
    paragraph (1) not later than 120 days after the date on which the 
    request is made.

(July 1, 1944, ch. 373, title XIX, Sec. 1931, as added Pub. L. 102-321, 
title II, Sec. 202, July 10, 1992, 106 Stat. 397.)

                       References in Text

    Section 300x-1a of this title, referred to in subsec. (a)(3), was 
repealed by Pub. L. 102-321, title II, Sec. 201(2), July 10, 1992, 106 
Stat. 378.


                            Prior Provisions

    A prior section 1931 of act July 1, 1944, was classified to section 
300y-21 of this title and subsequently omitted from the Code.
    Another prior section 1931 of act July 1, 1944, was classified to 
section 300y-10 of this title prior to repeal by Pub. L. 99-280.

                  Section Referred to in Other Sections

    This section is referred to in sections 300x-21, 300x-24, 300x-32, 
300x-34 of this title.
