
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC702]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
      SUBCHAPTER V--MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT
 
Sec. 702. Allotment to States and Federal set-aside


(a) Special projects

    (1) Of the amounts appropriated under section 701(a) of this title 
for a fiscal year that are not in excess of $600,000,000, the Secretary 
shall retain an amount equal to 15 percent for the purpose of carrying 
out activities described in section 701(a)(2) of this title. The 
authority of the Secretary to enter into any contracts under this 
subchapter is effective for any fiscal year only to such extent or in 
such amounts as are provided in appropriations Acts.
    (2) For purposes of paragraph (1)--
        (A) amounts retained by the Secretary for training shall be used 
    to make grants to public or nonprofit private institutions of higher 
    learning for training personnel for health care and related services 
    for mothers and children; and
        (B) amounts retained by the Secretary for research shall be used 
    to make grants to, contracts with, or jointly financed cooperative 
    agreements with, public or nonprofit institutions of higher learning 
    and public or nonprofit private agencies and organizations engaged 
    in research or in maternal and child health or programs for children 
    with special health care needs for research projects relating to 
    maternal and child health services or services for children with 
    special health care needs which show promise of substantial 
    contribution to the advancement thereof.

    (3) No funds may be made available by the Secretary under this 
subsection or subsection (b) of this section unless an application 
therefor has been submitted to, and approved by, the Secretary. Such 
application shall be in such form, be submitted in such manner, and 
contain and be accompanied by such information as the Secretary may 
specify. No such application may be approved unless it contains 
assurances that the applicant will use the funds provided only for the 
purposes specified in the approved application and will establish such 
fiscal control and fund accounting procedures as may be necessary to 
assure proper disbursement and accounting of Federal funds paid to the 
applicant under this subchapter.

(b) Excess funds; preference

    (1)(A) Of the amounts appropriated under section 701(a) of this 
title for a fiscal year in excess of $600,000,000 the Secretary shall 
retain an amount equal to 12\3/4\ percent thereof for the projects 
described in subparagraphs (A) through (F) of section 701(a)(3) of this 
title.
    (B) Any amount appropriated under section 701(a) of this title for a 
fiscal year in excess of $600,000,000 that remains after the Secretary 
has retained the applicable amount (if any) under subparagraph (A) shall 
be retained by the Secretary in accordance with subsection (a) of this 
section and allocated to the States in accordance with subsection (c) of 
this section.
    (2)(A) Of the amounts retained for the purpose of carrying out 
activities described in section 701(a)(3)(A), (B), (C), (D) and (E) of 
this title, the Secretary shall provide preference to qualified 
applicants which demonstrate that the activities to be carried out with 
such amounts shall be in areas with a high infant mortality rate 
(relative to the average infant mortality rate in the United States or 
in the State in which the area is located).
    (B) In carrying out activities described in section 701(a)(3)(D) of 
this title, the Secretary shall not provide for developing or expanding 
a maternal and child health center unless the Secretary has received 
satisfactory assurances that there will be applied, towards the costs of 
such development or expansion, non-Federal funds in an amount at least 
equal to the amount of funds provided under this subchapter toward such 
development or expansion.

(c) Allotments to States

    From the remaining amounts appropriated under section 701(a) of this 
title for any fiscal year that are not in excess of $600,000,000, the 
Secretary shall allot to each State which has transmitted an application 
for the fiscal year under section 705(a) of this title, an amount 
determined as follows:
        (1) The Secretary shall determine, for each State--
            (A)(i) the amount provided or allotted by the Secretary to 
        the State and to entities in the State under the provisions of 
        the consolidated health programs (as defined in section 
        701(b)(1) of this title), other than for any of the projects or 
        programs described in subsection (a) of this section, from 
        appropriations for fiscal year 1981,
            (ii) the proportion that such amount for that State bears to 
        the total of such amounts for all the States, and
            (B)(i) the number of low income children in the State, and
            (ii) the proportion that such number of children for that 
        State bears to the total of such numbers of children for all the 
        States.

        (2) Each such State shall be allotted for each fiscal year an 
    amount equal to the sum of--
            (A) the amount of the allotment to the State under this 
        subsection in fiscal year 1983, and
            (B) the State's proportion (determined under paragraph 
        (1)(B)(ii)) of the amount by which the allotment available under 
        this subsection for all the States for that fiscal year exceeds 
        the amount that was available under this subsection for 
        allotment for all the States for fiscal year 1983.

(d) Re-allotment of unallotted funds

    (1) To the extent that all the funds appropriated under this 
subchapter for a fiscal year are not otherwise allotted to States either 
because all the States have not qualified for such allotments under 
section 705(a) of this title for the fiscal year or because some States 
have indicated in their descriptions of activities under section 705(a) 
of this title that they do not intend to use the full amount of such 
allotments, such excess shall be allotted among the remaining States in 
proportion to the amount otherwise allotted to such States for the 
fiscal year without regard to this paragraph.
    (2) To the extent that all the funds appropriated under this 
subchapter for a fiscal year are not otherwise allotted to States 
because some State allotments are offset under section 706(b)(2) of this 
title, such excess shall be allotted among the remaining States in 
proportion to the amount otherwise allotted to such States for the 
fiscal year without regard to this paragraph.

(Aug. 14, 1935, ch. 531, title V, Sec. 502, as added Pub. L. 97-35, 
title XXI, Sec. 2192(a), Aug. 13, 1981, 95 Stat. 819; amended Pub. L. 
99-272, title IX, Sec. 9527(d), Apr. 7, 1986, 100 Stat. 219; Pub. L. 99-
509, title IX, Sec. 9441(b), Oct. 21, 1986, 100 Stat. 2071; Pub. L. 101-
239, title VI, Secs. 6502(a), 6503(c)(1), (4), Dec. 19, 1989, 103 Stat. 
2275, 2278.)


                            Prior Provisions

    A prior section 702, act Aug. 14, 1935, ch. 531, title V, Sec. 502, 
as added Jan. 2, 1968, Pub. L. 90-248, title III, Sec. 301, 81 Stat. 
921; amended July 10, 1972, Pub. L. 92-345, Sec. 1, 86 Stat. 456; July 
1, 1973, Pub. L. 93-53, Sec. 4(a)(1), (2), 87 Stat. 135, prescribed 
purposes for which funds were available, prior to the general revision 
of this subchapter by section 2192(a) of Pub. L. 97-35. For effective 
date, savings, and transitional provisions, see section 2194 of Pub. L. 
97-35, set out as a note under section 701 of this title.
    Another prior section 702, acts Aug. 14, 1935, ch. 531, title V, 
Sec. 502, 49 Stat. 629; Aug. 10, 1939, ch. 666, title V, Sec. 502, 53 
Stat. 1380; 1946 Reorg. Plan No. 2, Sec. 1, eff. July 16, 1946, 11 F.R. 
7873, 60 Stat. 1095; Aug. 10, 1946, ch. 951, title IV, Sec. 401(b)(2), 
(3), 60 Stat. 986; Aug. 28, 1950, ch. 809, title III, pt. 3, 
Sec. 331(b), pt. 6, Sec. 361(e), 64 Stat. 551, 558; Aug. 28, 1958, Pub. 
L. 85-840, title VI, Sec. 602(b), (c), 72 Stat. 1055; Sept. 13, 1960, 
Pub. L. 86-778, title VII, Sec. 707(a)(1)(B), (C), (b)(1)(A), 74 Stat. 
995, 996; Oct. 24, 1963, Pub. L. 88-156, Sec. 2(b), (c), 77 Stat. 273, 
provided for allotment to States for maternal and child health services, 
prior to the general amendment of title V of the Social Security Act by 
Pub. L. 90-248, Sec. 301, and was covered by former section 703 of this 
title.


                               Amendments

    1989--Subsec. (a)(1). Pub. L. 101-239, Sec. 6502(a)(1), amended 
first sentence generally. Prior to amendment, first sentence read as 
follows: ``Of the amounts appropriated under section 701(a) of this 
title for a fiscal year that are not in excess of $478,000,000, the 
Secretary shall retain an amount equal to 15 percent thereof in the case 
of fiscal year 1982, and an amount equal to not less than 10, nor more 
than 15, percent thereof in the case of each fiscal year thereafter, for 
the purpose of carrying out (through grants, contracts, or otherwise) 
special projects of regional and national significance, training, and 
research and for the funding of genetic disease testing, counseling, and 
information development and dissemination programs and of comprehensive 
hemophilia diagnostic and treatment centers.''
    Subsec. (a)(3). Pub. L. 101-239, Sec. 6502(a)(2), inserted ``or 
subsection (b) of this section'' after ``this subsection''.
    Subsec. (b). Pub. L. 101-239, Sec. 6502(a)(3), added subsec. (b). 
Former subsec. (b) redesignated (c).
    Subsec. (c). Pub. L. 101-239, Sec. 6503(c)(4), which directed 
amendment of subsec. (b) by substituting ``705(a)'' for ``705'', was 
executed to subsec. (c) to reflect the probable intent of Congress and 
the intervening redesignation of former subsec. (b) as (c) by Pub. L. 
101-239, Sec. 6502(a)(3), see below.
    Pub. L. 101-239, Sec. 6503(c)(1), substituted ``an application'' for 
``a description of intended activities and statement of assurances'' in 
introductory provisions.
    Pub. L. 101-239, Sec. 6502(a)(4)(A), substituted ``$600,000,000'' 
for ``$478,000,000'' in introductory provisions.
    Pub. L. 101-239, Sec. 6502(a)(3), redesignated subsec. (b) as (c) 
and struck out former subsec. (c) which related to special projects for 
children.
    Subsec. (c)(2). Pub. L. 101-239, Sec. 6502(a)(4)(B), amended par. 
(2) generally, substituting provisions basing each State's allotment for 
each fiscal year upon 1983 amounts for former provisions setting forth 
formulas for allotments for fiscal years 1982 and 1983 and for each year 
beginning with fiscal year 1984.
    Subsec. (d)(1). Pub. L. 101-239, Sec. 6503(c)(4), substituted 
``705(a)'' for ``705'' in two places.
    1986--Subsec. (a)(1). Pub. L. 99-509, Sec. 9441(b)(1), substituted 
``amounts appropriated under section 701(a) of this title for a fiscal 
year that are not in excess of $478,000,000'' for ``amount appropriated 
under section 701(a) of this title''.
    Subsec. (a)(2)(B). Pub. L. 99-272 substituted ``programs for 
children with special health care needs'' for ``crippled children's 
programs'' and ``services for children with special health care needs'' 
for ``crippled children's services''.
    Subsec. (b). Pub. L. 99-509, Sec. 9441(b)(2), inserted ``that are 
not in excess of $478,000,000'' in introductory provisions and struck 
out par. (3) which read as follows:
    ``(A) To the extent that all the funds appropriated under this 
subchapter for a fiscal year are not otherwise allotted to States either 
because all the States have not qualified for such allotments under 
section 705 of this title for the fiscal year or because some States 
have indicated in their descriptions of activities under section 705 of 
this title that they do not intend to use the full amount of such 
allotments, such excess shall be allotted among the remaining States in 
proportion to the amount otherwise allotted to such States for the 
fiscal year without regard to this subparagraph.
    ``(B) To the extent that all the funds appropriated under this 
subchapter for a fiscal year are not otherwise allotted to States 
because some State allotments are offset under section 706(b)(2) of this 
title, such excess shall be allotted among the remaining States in 
proportion to the amount otherwise allotted to such States for the 
fiscal year without regard to this subparagraph.''
    Subsecs. (c), (d). Pub. L. 99-509, Sec. 9441(b)(3), added subsecs. 
(c) and (d).


                    Effective Date of 1989 Amendment

    Amendment by section 6502(a) of Pub. L. 101-239 applicable to 
appropriations for fiscal years beginning with fiscal year 1990, and 
amendment by section 6503(c)(1), (4) of Pub. L. 101-239 applicable to 
payments for allotments for fiscal years beginning with fiscal year 
1991, see section 6510(a), (b)(1) of Pub. L. 101-239, set out as a note 
under section 701 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 300b-6, 701, 703, 704, 706, 
708, 709, 710 of this title.
