
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: 42USC704]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
      SUBCHAPTER V--MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT
 
Sec. 704. Use of allotment funds


(a) Covered services

    Except as otherwise provided under this section, a State may use 
amounts paid to it under section 703 of this title for the provision of 
health services and related activities (including planning, 
administration, education, and evaluation and including payment of 
salaries and other related expenses of National Health Service Corps 
personnel) consistent with its application transmitted under section 
705(a) of this title.

(b) Restrictions

    Amounts described in subsection (a) of this section may not be used 
for--
        (1) inpatient services, other than inpatient services provided 
    to children with special health care needs or to high-risk pregnant 
    women and infants and such other inpatient services as the Secretary 
    may approve;
        (2) cash payments to intended recipients of health services;
        (3) the purchase or improvement of land, the purchase, 
    construction, or permanent improvement (other than minor remodeling) 
    of any building or other facility, or the purchase of major medical 
    equipment;
        (4) satisfying any requirement for the expenditure of non-
    Federal funds as a condition for the receipt of Federal funds;
        (5) providing funds for research or training to any entity other 
    than a public or nonprofit private entity; or
        (6) payment for any item or service (other than an emergency 
    item or service) furnished--
            (A) by an individual or entity during the period when such 
        individual or entity is excluded under this subchapter or 
        subchapter XVIII, XIX, or XX of this chapter pursuant to section 
        1320a-7, 1320a-7a, 1320c-5, or 1395u(j)(2) of this title, or
            (B) at the medical direction or on the prescription of a 
        physician during the period when the physician is excluded under 
        this subchapter or subchapter XVIII, XIX, or XX of this chapter 
        pursuant to section 1320a-7, 1320a-7a, 1320c-5, or 1395u(j)(2) 
        of this title and when the person furnishing such item or 
        service knew or had reason to know of the exclusion (after a 
        reasonable time period after reasonable notice has been 
        furnished to the person).

The Secretary may waive the limitation contained in paragraph (3) upon 
the request of a State if the Secretary finds that there are 
extraordinary circumstances to justify the waiver and that granting the 
waiver will assist in carrying out this subchapter.

(c) Use of portion of funds

    A State may use a portion of the amounts described in subsection (a) 
of this section for the purpose of purchasing technical assistance from 
public or private entities if the State determines that such assistance 
is required in developing, implementing, and administering programs 
funded under this subchapter.

(d) Limitation on use of funds for administrative costs

    Of the amounts paid to a State under section 703 of this title from 
an allotment for a fiscal year under section 702(c) of this title, not 
more than 10 percent may be used for administering the funds paid under 
such section.

(Aug. 14, 1935, ch. 531, title V, Sec. 504, as added Pub. L. 97-35, 
title XXI, Sec. 2192(a), Aug. 13, 1981, 95 Stat. 821; amended Pub. L. 
99-272, title IX, Sec. 9527(e), Apr. 7, 1986, 100 Stat. 219; Pub. L. 
100-93, Sec. 8(a), Aug. 18, 1987, 101 Stat. 692; Pub. L. 100-203, title 
IV, Sec. 4118(e)(12), Dec. 22, 1987, as added Pub. L. 100-360, title IV, 
Sec. 411(k)(10)(D), July 1, 1988, 102 Stat. 796, and amended Pub. L. 
100-485, title VI, Sec. 608(d)(26)(K)(ii), Oct. 13, 1988, 102 Stat. 
2422; Pub. L. 101-239, title VI, Sec. 6503(a), (c)(2), (4), Dec. 19, 
1989, 103 Stat. 2276, 2278.)


                            Prior Provisions

    A prior section 704, act Aug. 14, 1935, ch. 531, title V, Sec. 504, 
as added Jan. 2, 1968, Pub. L. 90-248, title III, Sec. 301, 81 Stat. 
922, related to allotments to States for crippled children's services, 
prior to the general revision of this subchapter by section 2192(a) of 
Pub. L. 97-35. See section 702 of this title. 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 704, acts Aug. 14, 1935, ch. 531, title V, 
Sec. 504, 49 Stat. 630; 1940 Reorg. Plan No. III, Sec. 1(a), eff. June 
30, 1940, 5 F.R. 2107, 54 Stat. 1231; 1946 Reorg. Plan No. 2, Sec. 1, 
eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095; Aug. 28, 1950, ch. 809, 
title III, pt. 6, Sec. 361(e), 64 Stat. 558; Sept. 13, 1960, Pub. L. 86-
778, title VII, Sec. 707(b)(1)(B), 74 Stat. 996; July 30, 1965, Pub. L. 
89-97, title II, Sec. 201(b), 79 Stat. 353, provided for payment to 
States with an approved plan for maternal and child-health services and 
computation of amounts, and prescribed general availability of services 
by July 1, 1975, as requisite for payments for any period after June 30, 
1966, 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 706 
of this title.
    Provisions similar to those comprising former section 704 were 
contained in section 512 of act Aug. 14, 1935, ch. 531, title V, 49 
Stat. 631, as amended (formerly classified to section 712 of this 
title), prior to the general amendment and renumbering of title V of act 
Aug. 14, 1935, by Pub. L. 90-248, Sec. 301.


                               Amendments

    1989--Subsec. (a). Pub. L. 101-239, Sec. 6503(c)(2), (4), 
substituted ``its application'' for ``its description of intended 
expenditures and statement of assurances'' and ``705(a)'' for ``705''.
    Pub. L. 101-239, Sec. 6503(a)(1), inserted ``and including payment 
of salaries and other related expenses of National Health Service Corps 
personnel'' after ``education, and evaluation''.
    Subsec. (d). Pub. L. 101-239, Sec. 6503(a)(2), added subsec. (d).
    1988--Subsec. (b)(6). Pub. L. 100-360, as amended by Pub. L. 100-
485, added Pub. L. 100-203, Sec. 4118(e)(12), see 1987 Amendment note 
below.
    1987--Subsec. (b)(6). Pub. L. 100-203, Sec. 4118(e)(12), as added by 
Pub. L. 100-360 and amended by Pub. L. 100-485, substituted ``under this 
subchapter or subchapter XVIII, XIX, or XX of this chapter pursuant to 
section 1320a-7, 1320a-7a, 1320c-5, or 1395u(j)(2) of this title'' for 
``pursuant to section 1320a-7 of this title or section 1320a-7a of this 
title from participation in the program under this subchapter'' in 
subpars. (A) and (B).
    Pub. L. 100-93 added par. (6).
    1986--Subsec. (b)(1). Pub. L. 99-272 substituted ``children with 
special health care needs'' for ``crippled children''.


                    Effective Date of 1989 Amendment

    Amendment by section 6503(a) of Pub. L. 101-239 applicable to 
appropriations for fiscal years beginning with fiscal year 1990, and 
amendment by section 6503(c)(2), (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.


                    Effective Date of 1988 Amendments

    Section 608(g) of Pub. L. 100-485 provided that:
    ``(1) The amendments made by subsections (a), (b), and (d) [amending 
this section and sections 1320a-7, 1320a-7a, 1320b-10, 1320c-3, 1395i-2, 
1395i-3, 1395l, 1395m, 1395r, 1395s, 1395t-1, 1395t-2, 1395u, 1395v, 
1395w-2, 1395w-3, 1395x, 1395y, 1395aa to 1395dd, 1395mm, 1395tt, 
1395ww, 1395aaa to 1395ccc, 1396a, 1396b, 1396d, 1396i, 1396n, 1396p, 
1396r, 1396r-1, 1396r-4, 1396r-5, 1396s, and 1397d of this title, 
repealing section 1320a-2 of this title, enacting provisions set out as 
a note under section 1320a-2 of this title, and amending provisions set 
out as notes under sections 1320c-5, 1395b, 1395d, 1395e, 1395i-3, 
1395u, 1395ll, 1395mm, 1395ss, 1395tt, 1395ww, 1396a, 1396d, and 1396r-5 
of this title] shall be effective as if included in the enactment of the 
Medicare Catastrophic Coverage Act of 1988 [Pub. L. 100-360].
    ``(2) The amendments made by subsection (c) and subsection (f) 
(other than paragraph (5)) [amending sections 1395cc, 1396b, 1396d, and 
1396n of this title, enacting provisions set out as a note under section 
1395k of this title, and amending provisions set out as a note under 
section 1395k of this title] shall take effect on the date of the 
enactment of this Act [Oct. 13, 1988].''
    Except as specifically provided in section 411 of Pub. L. 100-360, 
amendment by Pub. L. 100-360, as it relates to a provision in the 
Omnibus Budget Reconciliation Act of 1987, Pub. L. 100-203, effective as 
if included in the enactment of that provision in Pub. L. 100-203, see 
section 411(a) of Pub. L. 100-360, set out as a Reference to OBRA; 
Effective Date note under section 106 of Title 1, General Provisions.


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-93 effective at end of fourteen-day period 
beginning Aug. 18, 1987, and inapplicable to administrative proceedings 
commenced before end of such period, see section 15(a) of Pub. L. 100-
93, set out as a note under section 1320a-7 of this title.
