### §14502. Demonstration health projects

(a) Purpose.—To demonstrate the value of adequate health facilities and services to the economic development of the Appalachian region, the Secretary of Health and Human Services may make grants for the planning, construction, equipment, and operation of multi-county demonstration health, nutrition, and child care projects, including hospitals, regional health diagnostic and treatment centers, and other facilities and services necessary for the purposes of this section.

(b) Planning Grants.—

(1) Authority to provide amounts and make grants.—The Secretary may provide amounts to the Appalachian Regional Commission for the support of its Health Advisory Committee and may make grants for expenses of planning necessary for the development and operation of demonstration health projects for the region.

(2) Limitation on available amounts.—The amount of a grant under this section for planning shall not be more than 75 percent of expenses.

(3) Sources of assistance.—The federal contribution may be provided entirely from amounts authorized under this section or in combination with amounts provided under other federal or federal grant programs.

(4) Federal share.—Notwithstanding any provision of law limiting the federal share in those other programs, amounts appropriated to carry out this section may be used to increase the federal share to the maximum percentage cost of a grant authorized by this subsection.

(c) Construction and Equipment Grants.—

(1) Additional uses for construction grants.—Grants under this section for construction may also be used for—

(A) the acquisition of privately owned facilities—

(i) not operated for profit; or

(ii) previously operated for profit if the Commission finds that health services would not otherwise be provided in the area served by the facility if the acquisition is not made; and

(B) initial equipment.

(2) Standards for making grants.—Grants under this section for construction shall be made in accordance with section 14523 of this title and shall not be incompatible with the applicable provisions of title VI of the Public Health Service Act (42 U.S.C. 291 et seq.), the Developmental Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15001 et seq.), and other laws authorizing grants for the construction of health-related facilities, without regard to any provisions in those laws relating to appropriation authorization ceilings or to allotments among the States.

(3) Limitation on available amounts.—A grant for the construction or equipment of any component of a demonstration health project shall not be more than 80 percent of the cost.

(4) Sources of assistance.—The federal contribution may be provided entirely from amounts authorized under this section or in combination with amounts provided under other federal grant programs for the construction or equipment of health-related facilities.

(5) Federal share.—Notwithstanding any provision of law limiting the federal share in those other programs, amounts authorized under this section may be used to increase federal grants for component facilities of a demonstration health project to a maximum of 80 percent of the cost of the facilities.

(d) Operation Grants.—

(1) Standards for making grants.—A grant for the operation of a demonstration health project shall not be made—

(A) unless the facility is publicly owned, or owned by a public or private nonprofit organization, and is not operated for profit;

(B) after five years following the commencement of the initial grant for operation of the project, except that child development demonstrations assisted under this section during fiscal year 1979 may be approved under section 14322 of this title for continued support beyond that period, on request of the State, if the Commission finds that no federal, state, or local amounts are available to continue the project; and

(C) unless the Secretary of Health and Human Services is satisfied that the operation of the project will be conducted under efficient management practices designed to obviate operating deficits.

(2) Limitation on available amounts.—Grants under this section for the operation (including initial operating amounts and operating deficits, which include the cost of attracting, training, and retaining qualified personnel) of a demonstration health project, whether or not constructed with amounts authorized to be appropriated by this section, may be made for up to—

(A) 50 percent of the cost of that operation;

(B) in the case of a project to be carried out in a county for which a distressed county designation is in effect under section 14526, 80 percent of the cost of that operation; or

(C) in the case of a project to be carried out for a county for which an at-risk county designation is in effect under section 14526, 70 percent of the cost of that operation.

(3) Sources of assistance.—The federal contribution may be provided entirely from amounts appropriated to carry out this section or in combination with amounts provided under other federal grant programs for the operation of health related facilities and the provision of health and child development services, including parts A and B of title IV and title XX of the Social Security Act (42 U.S.C. 601 et seq., 620 et seq., 1397 et seq.).

(4) Federal share.—Notwithstanding any provision of law limiting the federal share in those other programs, amounts appropriated to carry out this section may be used to increase federal grants for operating components of a demonstration health project to the maximum percentage cost of a grant authorized by this subsection.

(5) State deemed to meet requirement of providing assistance or services on statewide basis.—Notwithstanding any provision of the Social Security Act (42 U.S.C. 301 et seq.) requiring assistance or services on a statewide basis, a State providing assistance or services under a federal grant program described in paragraph (2) in any area of the region approved by the Commission is deemed to be meeting that requirement.

(e) Grant Sources and Use of Grants in Computing Allotments.—Grants under this section—

(1) shall be made only out of amounts specifically appropriated for the purpose of carrying out this subtitle; and

(2) shall not be taken into account in computing allotments among the States under any other law.

(f) Maximum Commission Contribution.—

(1) In general.—Subject to paragraphs (2) and (3), the Commission may contribute not more than 50 percent of any project cost eligible for financial assistance under this section from amounts appropriated to carry out this subtitle.

(2) Distressed counties.—The maximum Commission contribution for a project to be carried out in a county for which a distressed county designation is in effect under section 14526 of this title may be increased to the lesser of—

(A) 80 percent; or

(B) the maximum federal contribution percentage authorized by this section.

(3) At-risk counties.—The maximum Commission contribution for a project to be carried out in a county for which an at-risk county designation is in effect under section 14526 may be increased to the lesser of—

(A) 70 percent; or

(B) the maximum Federal contribution percentage authorized by this section.

(g) Emphasis on Occupational Diseases From Coal Mining.—To provide for the further development of the Appalachian region's human resources, grants under this section shall give special emphasis to programs and research for the early detection, diagnosis, and treatment of occupational diseases arising from coal mining, such as black lung.

(Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1266; Pub. L. 110–371, §2(b), Oct. 8, 2008, 122 Stat. 4038.)

| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
| --- | --- | --- |
| 14502(a) | 40 App.:202(a) (1st sentence). | Pub. L. 89–4, title II, §202(a)–(e), Mar. 9, 1965, 79 Stat. 11; Pub. L. 90–103, title I, §107, Oct. 11, 1967, 81 Stat. 259; Pub. L. 91–123, title I, §104, Nov. 25, 1969, 83 Stat. 214; Pub. L. 92–65, title II, §206, Aug. 5, 1971, 85 Stat. 169; Pub. L. 94–188, title I, §111, Dec. 31, 1975, 89 Stat. 1081; Pub. L. 95–193, §1, Nov. 18, 1977, 91 Stat. 1412; Pub. L. 96–88, title V, §509(b), Oct. 17, 1979, 93 Stat. 695; Pub. L. 96–545, §2, Dec. 18, 1980, 94 Stat. 3215; Pub. L. 105–393, title II, §207(a), (c), Nov. 13, 1998, 112 Stat. 3620; Pub. L. 107–149, §13(c), (d), Mar. 12, 2002, 116 Stat. 71. |
| 14502(b) | 40 App.:202(d). | |
| 14502(c)(1), (2) | 40 App.:202(a) (2d sentence). | |
| 14502(c)(3)– (5) | 40 App.:202(b). | |
| 14502(d)(1) | 40 App.:202(c) (5th–last sentences). | |
| 14502(d)(2), (3) | 40 App.:202(c) (1st, 2d sentences). | |
| 14502(d)(4) | 40 App.:202(c) (4th sentence). | |
| 14502(d)(5) | 40 App.:202(c) (3d sentence). | |
| 14502(e) | 40 App.:202(a) (last sentence). | |
| 14502(f) | 40 App.:202(f). | Pub. L. 89–4, title II, §202(f), as added Pub. L. 105–393, title II, §207(b), Nov. 13, 1998, 112 Stat. 3620. |
| 14502(g) | 40 App.:202(e). | |

Section

In subsection (c)(1)(A)(ii), the words "where the acquisition of such facilities is the most cost-effective means for providing increased health services" are omitted as unnecessary because of the more narrow requirement that the Commission find that but for the acquisition of the facility, the health services would not be otherwise provided in the area served by the facility.

In subsection (f)(1), the words "After September 30, 1998" are omitted as obsolete.

#### **Editorial Notes**

#### References in Text

The Public Health Service Act, referred to in subsec. (c)(2), is act July 1, 1944, ch. 373, 58 Stat. 682. Title VI of the Act is classified generally to subchapter IV (§291 et seq.) of chapter 6A of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 201 of Title 42 and Tables.

The Developmental Disabilities Assistance and Bill of Rights Act of 2000, referred to in subsec. (c)(2), is Pub. L. 106–402, Oct. 30, 2000, 114 Stat. 1677, which is classified principally to chapter 144 (§15001 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 15001 of Title 42 and Tables.

The Social Security Act, referred to in subsec. (d)(3), (5), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, which is classified generally to chapter 7 (§301 et seq.) of Title 42, The Public Health and Welfare. Parts A and B of title IV of the Act are classified generally to parts A (§601 et seq.) and B (§620 et seq.) of subchapter IV of chapter 7 of Title 42. Title XX of the Act is classified generally to subchapter XX (§1397 et seq.) of chapter 7 of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

#### Amendments

2008—Subsec. (d)(2). Pub. L. 110–371, §2(b)(1), added par. (2) and struck out heading and text of former par. (2). Text read as follows: "Grants under this section for the operation (including initial operating amounts and operating deficits, which include the cost of attracting, training, and retaining qualified personnel) of a demonstration health project, whether or not constructed with amounts authorized by this section, may be made for up to 50 percent of the cost of that operation (or 80 percent of the cost of that operation for a project to be carried out in a county for which a distressed county designation is in effect under section 14526 of this title)."

Subsec. (f)(1). Pub. L. 110–371, §2(b)(2)(A), substituted "paragraphs (2) and (3)" for "paragraph (2)".

Subsec. (f)(3). Pub. L. 110–371, §2(b)(2)(B), added par. (3).

#### **Statutory Notes and Related Subsidiaries**

#### Termination of Advisory Committee

Advisory committees established after Jan. 5, 1973, to terminate not later than the expiration of the 2-year period beginning on the date of their establishment, unless, in the case of a committee established by the President or an officer of the Federal Government, such committee is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a committee established by the Congress, its duration is otherwise provided by law. See section 1013 of Title 5, Government Organization and Employees.