42 U.S.C. § 291f — Payments for construction or moderniza-

Page 975 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 291g lished within the Office of the Assistant Secretary for Health, see Notice of Department of Health and Human Services, Office of the Assistant Secretary for Health, Mar. 30, 1987, 52 F.R. 11754. § 291f. Payments for construction or moderniza- tion (a) Certification of work by Surgeon General; conditions affecting payments Upon certification to the Surgeon General by the State agency, based upon inspection by it, that work has been performed upon a project, or purchases have been made, in accordance with the approved plans and specifications, and that payment of an installment is due to the appli- cant, such installment shall be paid to the State, from the applicable allotment of such State, except that (1) if the State is not author- ized by law to make payments to the applicant, or if the State so requests, the payment shall be made directly to the applicant, (2) if the Sur- geon General, after investigation or otherwise, has reason to believe that any act (or failure to act) has occurred requiring action pursuant to section 291g of this title, payment may, after he has given the State agency notice of oppor- tunity for hearing pursuant to such section, be withheld, in whole or in part, pending corrective action or action based on such hearing, and (3) the total of payments under this subsection with respect to such project may not exceed an amount equal to the Federal share of the cost of construction of such project. (b) Additional payments in cases of amended ap- plications In case an amendment to an approved applica- tion is approved as provided in section 291e of this title or the estimated cost of a project is re- vised upward, any additional payment with re- spect thereto may be made from the applicable allotment of the State for the fiscal year in which such amendment or revision is approved. (c) Administration expenses; use of portion of al- lotments to defray; manner of payment (1) At the request of any State, a portion of any allotment or allotments of such State under this part shall be available to pay one-half (or such smaller share as the State may request) of the expenditures found necessary by the Sur- geon General for the proper and efficient admin- istration during such year of the State plan ap- proved under this part; except that not more than 4 per centum of the total of the allotments of such State for a year, or $100,000, whichever is less, shall be available for such purpose for such year. Payments of amounts due under this para- graph may be made in advance or by way of re- imbursement, and in such installments, as the Surgeon General may determine. (2) Any amount paid under paragraph (1) of this subsection to any State for any fiscal year shall be paid on condition that there shall be ex- pended from State sources for such year for ad- ministration of the State plan approved under this part not less than the total amount ex- pended for such purposes from such sources dur- ing the fiscal year ending June 30, 1970. (July 1, 1944, ch. 373, title VI, § 606, as added Pub. L. 88–443, § 3(a), Aug. 18, 1964, 78 Stat. 454; amend- ed Pub. L. 91–296, title I, § 112, June 30, 1970, 84 Stat. 340.) Editorial Notes PRIOR PROVISIONS A prior section 291f, act July 1, 1944, ch. 373, title VI, § 623, as added Aug. 13, 1946, ch. 958, § 2, 60 Stat. 1041; amended June 19, 1948, ch. 554, 62 Stat. 536; Oct. 25, 1949, ch. 722, § 3(a), 63 Stat. 899, related to State plans, their submission, and their requirements, prior to the gen- eral amendment of this subchapter by Pub. L. 88–443. See section 291d of this title. Provisions similar to those comprising subsec. (a) of this section were contained in former section 291h(b), acts July 1, 1944, ch. 373, title VI, § 625, as added Aug. 13, 1946, ch. 958, § 2, 60 Stat. 1041; amended Oct. 25, 1949, ch. 722, § 3(b), 63 Stat. 899, prior to the general amendment of this subchapter by Pub. L. 88–443. AMENDMENTS 1970—Subsec. (c)(1). Pub. L. 91–296, § 112(1), substituted ‘‘4 per centum’’ for ‘‘2 per centum’’ and ‘‘$100,000 for $50,000’’. Subsec. (c)(2). Pub. L. 91–296, § 112(2), substituted ‘‘June 30, 1970’’ for ‘‘June 30, 1964’’. Statutory Notes and Related Subsidiaries CHANGE OF NAME ‘‘Secretary of Health and Human Services’’ sub- stituted for ‘‘Secretary of Health, Education, and Wel- fare’’ pursuant to section 509(b) of Pub. L. 96–88, which is classified to section 3508(b) of Title 20, Education. EFFECTIVE DATE OF 1970 AMENDMENT Pub. L. 91–296, title I, § 112, June 30, 1970, 84 Stat. 340, provided that the amendment made by that section is effective with respect to expenditures under a State plan approved under this subchapter which are made for administration of such plan during any fiscal year beginning after June 30, 1970. Executive Documents TRANSFER OF FUNCTIONS Office of Surgeon General abolished by section 3 of Reorg. Plan No. 3 of 1966, eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, and functions thereof transferred to Sec- retary of Health, Education, and Welfare by section 1 of Reorg. Plan No. 3 of 1966, set out as a note under sec- tion 202 of this title. Office of Surgeon General reestab- lished within the Office of the Assistant Secretary for Health, see Notice of Department of Health and Human Services, Office of the Assistant Secretary for Health, Mar. 30, 1987, 52 F.R. 11754. § 291g. Withholding of payments; noncompliance with requirements Whenever the Surgeon General, after reason- able notice and opportunity for hearing to the State agency designated as provided in section 291d(a)(1) of this title, finds— (a) that the State agency is not complying substantially with the provisions required by section 291d of this title to be included in its State plan; or (b) that any assurance required to be given in an application filed under section 291e of this title is not being or cannot be carried out; or (c) that there is a substantial failure to carry out plans and specifications approved by the Surgeon General under section 291e of this title; or