
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-55]

 
                 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 iii--general provisions
 
Sec. 300x-55. Failure to comply with agreements


(a) Suspension or termination of payments

    Subject to subsection (e) of this section, if the Secretary 
determines that a State has materially failed to comply with the 
agreements or other conditions required for the receipt of a grant under 
the program involved, the Secretary may in whole or in part suspend 
payments under the grant, terminate the grant for cause, or employ such 
other remedies (including the remedies provided for in subsections (b) 
and (c) of this section) as may be legally available and appropriate in 
the circumstances involved.

(b) Repayment of payments

                           (1) In general

        Subject to subsection (e) of this section, the Secretary may 
    require a State to repay with interest any payments received by the 
    State under section 300x or 300x-21 of this title that the Secretary 
    determines were not expended by the State in accordance with the 
    agreements required under the program involved.

                     (2) Offset against payments

        If a State fails to make a repayment required in paragraph (1), 
    the Secretary may offset the amount of the repayment against the 
    amount of any payment due to be paid to the State under the program 
    involved.

(c) Withholding of payments

                           (1) In general

        Subject to subsections (e) and (g)(3) of this section, the 
    Secretary may withhold payments due under section 300x or 300x-21 of 
    this title if the Secretary determines that the State involved is 
    not expending amounts received under the program involved in 
    accordance with the agreements required under the program.

                   (2) Termination of withholding

        The Secretary shall cease withholding payments from a State 
    under paragraph (1) if the Secretary determines that there are 
    reasonable assurances that the State will expend amounts received 
    under the program involved in accordance with the agreements 
    required under the program.

(d) Applicability of remedies to certain violations

                           (1) In general

        With respect to agreements or other conditions for receiving a 
    grant under the program involved, in the case of the failure of a 
    State to maintain material compliance with a condition referred to 
    in paragraph (2), the provisions for noncompliance with the 
    condition that are provided in the section establishing the 
    condition shall apply in lieu of subsections (a) through (c) of this 
    section.

                       (2) Relevant conditions

        For purposes of paragraph (1):
            (A) In the case of the program established in section 300x 
        of this title, a condition referred to in this paragraph is the 
        condition established in section 300x-1(d) of this title and the 
        condition established in section 300x-4(b) of this title.
            (B) In the case of the program established in section 300x-
        21 of this title, a condition referred to in this paragraph is 
        the condition established in section 300x-26 of this title and 
        the condition established in section 300x-30 of this title.

(e) Opportunity for hearing

    Before taking action against a State under any of subsections (a) 
through (c) of this section (or under a section referred to in 
subsection (d)(2) of this section, as the case may be), the Secretary 
shall provide to the State involved adequate notice and an opportunity 
for a hearing.

(f) Requirement of hearing in certain circumstances

                           (1) In general

        If the Secretary receives a complaint that a State has failed to 
    maintain material compliance with the agreements or other conditions 
    required for receiving a grant under the program involved (including 
    any condition referred to for purposes of subsection (d) of this 
    section), and there appears to be reasonable evidence to support the 
    complaint, the Secretary shall promptly conduct a hearing with 
    respect to the complaint.

                (2) Finding of material noncompliance

        If in a hearing under paragraph (1) the Secretary finds that the 
    State involved has failed to maintain material compliance with the 
    agreement or other condition involved, the Secretary shall take such 
    action under this section as may be appropriate to ensure that 
    material compliance is so maintained, or such action as may be 
    required in a section referred to in subsection (d)(2) of this 
    section, as the case may be.

(g) Certain investigations

                 (1) Requirement regarding Secretary

        The Secretary shall in fiscal year 1994 and each subsequent 
    fiscal year conduct in not less than 10 States investigations of the 
    expenditure of grants received by the States under section 300x or 
    300x-21 of this title in order to evaluate compliance with the 
    agreements required under the program involved.

            (2) Provision of records, etc., upon request

        Each State receiving a grant under section 300x or 300x-21 of 
    this title, and each entity receiving funds from the grant, shall 
    make appropriate books, documents, papers, and records available to 
    the Secretary or the Comptroller General, or any of their duly 
    authorized representatives, for examination, copying, or mechanical 
    reproduction on or off the premises of the appropriate entity upon a 
    reasonable request therefor.

                    (3) Limitations on authority

        The Secretary may not institute proceedings under subsection (c) 
    of this section unless the Secretary has conducted an investigation 
    concerning whether the State has expended payments under the program 
    involved in accordance with the agreements required under the 
    program. Any such investigation shall be conducted within the State 
    by qualified investigators.

(July 1, 1944, ch. 373, title XIX, Sec. 1945, as added Pub. L. 102-321, 
title II, Sec. 203(a), July 10, 1992, 106 Stat. 405.)

                  Section Referred to in Other Sections

    This section is referred to in sections 300x-53, 300x-54 of this 
title.
