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STUDIES AND DEMONSTRATIONS RELATING TO COORDINATED USE OF

HOSPITAL FACILITIES

SEC. 5. Part D of title VI of such Act is amended by adding after section 635 the following new section:

"STUDIES AND DEMONSTRATIONS RELATING TO COORDINATED USE OF

HOSPITAL FACILITIES

"SEC. 636. In carrying out the purposes of section 301 with respect to hospital facilities, the Surgeon General is authorized to conduct research, experiments, and demonstrations relating to the effective development and utilization of hospital services, facilities, and resources, and, after consultation with the Federal Hospital Council, to make grants-in-aid to States, political subdivisions, universities, hospitals, and other public and private nonprofit institutions or organizations for projects for the conduct of research, experiments, or demonstrations relating to the development, utilization, and coordination of hospital services, facilities, and resources. Any award made under this section for any such project in any fiscal year may include amounts for not to exceed the four succeeding fiscal years, and such amounts for such succeeding fiscal years shall constitute contractual obligations of the Federal Government: Provided, That the total expenditures for all such projects may not exceed $1,200,000 in any fiscal year."

PURPOSE OF ACT

SEC. 6. Section 601 of such Act is amended to read as follows: "SEC. 601. The purpose of this title is―

"(a) to assist the several States to inventory their existing hospitals (as defined in section 631 (e)), to survey the need for construction of hospitals, and to develop programs for construction of such public and other nonprofit hospitals as will, in conjunction with existing facilities, afford the necessary physical facilities for furnishing adequate hospital, clinic, and similar services to all their people;

"(b) to assist in the construction of public and other nonprofit hospitals in accordance with such programs; and

"(c) to authorize the Surgeon General to conduct, and make grants for the conduct of, research, experiments, and demonstrations relating to the effective development and utilization of hospital services, facilities, and resources, and to promote the coordination of such experiments and demonstrations and the useful application of their results."

MINIMUM ALLOTMENT

SEC. 7. Section 624 of such Act is amended by striking out "$100,000" and inserting in lieu thereof "$200,000".

FILING OF APPLICATIONS

SEC. 8. Section 625 (a) of such Act is amended to read as follows: "(a) For each project for construction pursuant to a State plan

approved under this part, there shall be submitted to the Surgeon General through the State agency an application by the State or a political subdivision thereof or by a public or other nonprofit agency. If two or more such agencies join in the construction of the project, the application may be filed by one or more of such agencies. Such application shall set forth (1) a description of the site for such project; (2) plans and specifications therefor in accordance with the regulations prescribed by the Surgeon General under section 622 (e); (3) reasonable assurance that title, as defined in section 631 (j), to such site is or will be vested in one or more of the agencies filing the application or in a public or other nonprofit agency which is to operate the hospital; (4) reasonable assurance that adequate financial support will be available for the construction of the project and for its maintenance and operation when completed; (5) reasonable assurance that the rates of pay for laborers and mechanics engaged in construction of the project will be not less than the prevailing local wage rates for similar work as determined in accordance with Public Law 403 of the Seventyfourth Congress, approved August 30, 1935, as amended; and (6) a certification by the State agency of the Federal share for the project. The Surgeon General shall approve such application if sufficient funds to pay the Federal share of the cost of construction of such project. are available from the allotment to the State, and if the Surgeon General finds (A) that the application contains such reasonable assurance as to title, financial support, and payment of prevailing rates of wages; (B) that the plans and specifications are in accord with the regulations prescribed pursuant to section 622; (C) that the application is in conformity with the State plan approved under section 623 and contains an assurance that in the operation of the hospital there will be compliance with the applicable requirements of the State plan and of the regulations prescribed under section 622 (f) regarding the provision of facilities without discrimination on account of race, creed, or color, and for furnishing needed hospital facilities for persons unable to pay therefor, and with State standards for operation and maintenance; and (D) that it has been approved and recommended by the State agency and is entitled to priority over other projects within the State in accordance with the regulations prescribed pursuant to section 622 (d). No application shall be disapproved until the Surgeon General has afforded the State agency an opportunity for a hearing."

DEFINITIONS

SEC. 9. (a) Subsection (g) of section 631 of such Act is amended to read as follows:

"(g) the term 'nonprofit hospital' means any hospital which is owned and operated by one or more nonprofit corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual;".

(b) Such section is further amended by striking out "and" at the end of paragraph (h), by striking out the period at the end of paragraph (i) and inserting in lieu thereof a semicolon, and by inserting after paragraph (i) the following new paragraphs:

"(j) the term 'title', when used with reference to a site for a project, means a fee simple, or such other estate or interest (including leasehold on which the rental does not exceed 4 per centum of the value of the land) as the Surgeon General finds sufficient to assure for a period of not less than fifty years undisturbed use and possession for the purposes of construction and operation of the project;

"(k) the term 'Federal share' with respect to any project means the proportion of the cost of construction of such project to be paid by the Federal Government under part C. In the case of any project approved prior to the effective date of this subsection, the Federal share shall be 33% per centum of the cost of construction of such project. In the case of any project approved on or after the effective date of this subsection, the Federal share shall be determined as follows:

"(1) if the State plan, as of the date of approval of the project application, contains standards approved by the Surgeon General pursuant to section 623 (e), the Federal share with respect to such project shall be determined by the State agency in accordance with such standards;

"(2) if the State plan does not contain such standards, the Federal share shall be the amount (not less than 333 per centum and not more than either 663 per centum or the State's allotment percentage, whichever is the lower) established by the State agency for all projects in the State: Provided, That prior to the approval of the first project in the State during any fiscal year, the State agency shall give to the Surgeon General written notification of the Federal share established under this paragraph for projects in such State to be approved by the Surgeon General during such fiscal year, and the Federal share for projects in such State approved during such fiscal year shall not be changed after such approval.'

EFFECTIVE DATE

SEC. 10. This Act shall take effect upon the date of its enactment. Approved October 25, 1949.

[PUBLIC LAW 759-81ST CONGRESS]

[CHAPTER 896-2D SESSION]

[H. R. 7786]

AN ACT

Making appropriations for the support of the Government for the fiscal year ending June 30, 1951, and for other purposes.

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Grants for hospital construction: For liquidation of contractual obligations authorized by the Congress to be incurred during the fiscal year 1948 or any subsequent fiscal year for construction grants under part C, title VI, of the Act, as amended, $100,000,000, to remain available until expended. Allotments under such part C to the several States for the current fiscal year shall be made on the basis of $150,000,000. Whenever the Surgeon General shall have approved an application for a construction project in accordance with section 625 of the Act, subject to the amount of the allotments available to the States for such purposes, the Federal share of the cost of such project, as provided by the Act, shall constitute a contractual obligation of the Federal Government.

Approved September 6, 1950.

(545)

.d

SUBJECT

SURPLUS PROPERTY ACT OF 1944 AND AMENDMENTS.

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