Page:United States Statutes at Large Volume 87.djvu/953

 87 STAT. ]

PUBLIC LAW 93-222-DEC. 29, 1973

population, such greater percentage (up to 100 per centum) of such cost as the Secretary may prescribe if he determines that the ceiling on the grants and contracts for such project should be determined by such greater percentage. "(f) Payments under grants under this section may be made in advance or by way of reimbursement and at such intervals and on such conditions as the Secretary finds necessary. " (g) Contracts may be entered into under this section without regard to sections 3648 and 3709 of the Revised Statutes (31 U.S.C. 529;41 U.S.C. 5). " (h) Payments under grants and contracts under this section shall be made from appropriations made under section 1309(a). "(i) Of the sums appropriated for any fiscal year under section 1309(a) for grants and contracts under this section, not less than 20 per centum shall be set aside and obligated in such fiscal year for projects (1) to determine the feasibility of developing and operating or expanding the operation of health maintenance organizations which the Secretary determines may reasonably be expected to have after their development or expansion not less than 66 per centum of their membership draw-n from residents of non-metropolitan areas, and (2) the applications for which meet the requirements of this title for approval. Sums set aside in the fiscal year ending June 30, 1974, or June 30, 1975, for projects described in the preceding sentence but not obligated in such fiscal year for grants and contracts under this section because of a lack of applicants for projects meeting the requirements of such sentence shall remain available for obligation under this section in the succeeding fiscal year for projects other than those described in clause (1) of such sentence.

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Payments.

"(JKANTS, CONTRACTS, AND LOAN GUARANTEES FOR P L A N N I N G AND FOR I N I T I A L DEVELOPMENT COSTS

"SEC. 1304. (a) The Secretary may— "(1) make grants to and enter into contracts with public or nonprofit private entities for planning projects for the establishment of health maintenance organizations or for the significant expansion of the membership of, or areas served by, health maintenance organizations; and ' "(2) guarantee to non-Federal lenders payment of the principal of and the interest on loans made to private entities (other than nonprofit private entities) for planning projects for the establishment or expansion of health maintenance organizations to serve medically underserved populations. Planning projects assisted under this subsection shall include development of plans for the marketing of the services of the health maintenance organization. ,. " (b)(1) The Secretary may— ' " (A) make grants to and enter into contracts with public or nonprofit private entities for projects for the initial development of health maintenance organizations; and " (B) guarantee to non-Federal lenders payment of the principal of and the interest on loans made to any private entity (other than a nonprofit private entity) for a project for the initial development of a health maintenance organization which will serve a medically underserved population. "(2) For purposes of this section, the term 'initial development' dlvriopment." when used to describe a project for which assistance is authorized by this subsection includes significant expansion of the membership of, or the area served by, a health maintenance organization. Funds under

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