Page:United States Statutes at Large Volume 87.djvu/952

 920

PUBLIC LAW 93-222-DEC. 29, 1973

[87 STAT.

benefits program for employees of States, political subdivisions of States, and other public entities. "(9) The term 'non-metropolitan area' means an area no part of which is within an area designated as a standard metropolitan statistical area by the Office of Management and Budget and which does not contain a city whose population exceeds fifty thousand individuals. "GRANTS AND CONTRACTS FOR FEASIBILITY SURVEYS

s/sarVaV/'' 42 USC 246.

Limitations.

"SEC. 1303. (a) The Secretary may make grants to and enter into contracts with public or nonprofit private entities for projects for surveys or other activities to determine the feasibility of developing and operating or expanding the operation of health maintenance organizations. "(b) An application for a grant or contract under this section shall contain— "(1) assurances satisfactory to the Secretary that, in conducting surveys or other activities with assistance under a grant or contract under this section, the applicant will (A) cooperate with ^^^ section 314(b) areawide health planning agency (if any) whose section 314(b) plan covers (in whole or in part) the area for which the survey or other activity will be conducted, and (B) notify the medical society serving such area of such surveys or other activities; and "(2) such other information as the Secretary may by regulation prescribe. "(c) In considering applications foi" grants and contracts under this section, the Secretary shall give prior'ity to an application which contains or is supported by assurances satisfactory to the Secretary that at the time the health maintenance orgaiiization for which such application or proposal is submitted first becomes operational not less than 30 per centum of its members will be members of a medically underserved population. " (d)(1) Except as provided in paragraph (2), the following limitations apply with lespect to grants and contracts made under this section: " (A) If a project has been assisted with a grant or contract under subsection (a), the Secretary may not make any other grant or enter into any other contract under this section for such project. " (B) Any project for- which a gr-ant is made or contract entered into must be completed within twelve months from the date the grant is made or contract entered into. "(2) The Secretary may make not more than one additional grant or enter into not more than one additional contract for a project for which a grant has previously been made or a contract previously entered into, and he may permit additional time (up to twelve months) for completion of the project if he determines that the additional grant or contract (as the case may be), or additional time, or both, is needed to adequately complete the project. "(e) The amount to be paid by the United States under a grant made, oi' contract entered into, under subsection (a) shall be determined by the Secretary, except that (1) the amount to be paid by the United States under any single grant or contract for any project may not exceed $50,000, and (2) the aggregate of the amounts to be paid by the United States for any project under such subsection under grants or contracts, or both, may not exceed the greater of (A) 90 per centum of the cost of such project (as determined under regulations of the Secretary), or (B) in the case of a project for a health maintenance organization which will serve a medically underserved

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