Page:United States Statutes at Large Volume 88 Part 2.djvu/947

 88

STAT.

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PUBLIC LAW 93-641-JAN. 4, 1975

2263

the project or purchases have been made for it and that payment from the applicable allotment of the State in which the project is located is due for the project, the Secretary shall, except as provided in subsection (b), make such payment to the State. "(b) The Secretary is authorized to not make payments to a State ^j^^^/^^"' '"^' pursuant to subsection (a) in the following circumstances: "(1) If such State is not authorized by law to make payments for an approved medical facility project from the payment to be made by the Secretary pursuant to subsection (a), or if the State so requests, the Secretary shall make the payment from the State allotment directly to the applicant for such project. "(2) If the Secretary, after investigation or otherwise, has reason to believe that any act (or failure to act) has occurred requiring action pursuant to section 1612, payment by the Secretary may, after he has given the State Agency notice and opportunity for hearing pursuant to such section, be withheld, in whole or in part, pending corrective action or action based on such hearing. I n no event may the total of payments made under subsection (a) with respect to any project exceed an amount equal to the Federal share of such project. "(c) In case an amendment to an approved application is approved as provided in section 1604 or the estimated cost of a project is revised upward, any additional payment with respect thereto may be made from the applicable allotment of the State for the fiscal year in which such amendment or revision is approved. " (d) In any fiscal year— "(1) not more than 20 per centum of the amount of a State's allotment available for obligation in that fiscal year may be obligated for projects in the State for construction of new facilities for the provision of inpatient health care to persons residing in areas of the State which have experienced recent rapid population growth; and "(2) not less than 25 per centum of the amount of a State's allotment available for obligation in that fiscal year shall be obligated for projects for outpatient facilities which will serve medically underserved populations. In the administration of this part, the Secretary shall seek to assure ^"""^^ projects. that in each fiscal year at least one half of the amount obligated for projects pursuant to paragraph (2) shall be obligated for projects which will serve rural medically underserved populations. "WITHHOLDING OF PAYMENTS AND OTHER COMPLIANCE ACTIONS

"SEC. 1612. (a) Whenever the Secretary, after reasonable notice and opportunity for hearing to the State Agency concerned finds— " (1) that the State Agency is not complying substantially with the provisions required by section 1603 to be included in its State medical facilities plan, "(2) that any assurance required to be given in an application filed under section 1604 is not being or cannot be carried out, or "(3) that there is a substantial failure to carry out plans and specifications approved by the Secretary under section 1604, the Secretary shall take the action authorized by subsection (b) unless, in the case of compliance with assurances, the Secretary requires compliance by other means authorized by law. " (b)(1) Upon a finding described in subsection (a) and after notice to the State Agency concerned, the Secretary may—

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