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a charter or authority that includes the economic development of coun-
ties or parts of counties or other political subdivisions within the re-
gion:
(A) a nonprofit incorporated body organized or chartered under
the law of the State in which it is located.
(B) a nonprofit agency or instrumentality of a state or local
government.
(C) a nonprofit agency or instrumentality created through an
interstate compact.
(D) a nonprofit association or combination of bodies, agencies,
and instrumentalities described in this paragraph.
(b) CHANGE IN DEFINITION.—The Commission may not propose or con-
sider a recommendation for any change in the definition of the Appalachian
region as set forth in this section without a prior resolution by the Com-
mittee on Environment and Public Works of the Senate or the Committee
on Transportation and Infrastructure of the House of Representatives that
directs a study of the change.
CHAPTER 143—APPALACHIAN REGIONAL COMMISSION
SUBCHAPTER I—ORGANIZATION AND ADMINISTRATION
Sec.
14301.
Establishment, membership, and employees.
14302.
Decisions.
14303.
Functions.
14304.
Recommendations.
14305.
Liaison between Federal Government and Commission
14306.
Administrative powers and expenses.
14307.
Meetings.
14308.
Information.
14309.
Personal financial interests.
14310.
Annual report.
SUBCHAPTER II—FINANCIAL ASSISTANCE
14321.
Grants and other assistance.
14322.
Approval of development plans, investment programs, and projects.
SUBCHAPTER I—ORGANIZATION AND ADMINISTRATION
§ 14301. Establishment, membership, and employees
(a) ESTABLISHMENT.—There is an Appalachian Regional Commission.
(b) MEMBERSHIP.—
(1) FEDERAL AND STATE MEMBERS.—The Commission is composed
of the Federal Cochairman, appointed by the President by and with the
advice and consent of the Senate, and the Governor of each partici-
pating State in the Appalachian region.
(2) ALTERNATE MEMBERS.—Each state member may have a single
alternate, appointed by the Governor from among the members of the
Governor’s cabinet or the Governor’s personal staff. The President, by
and with the advice and consent of the Senate, shall appoint an alter-
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nate for the Federal Cochairman. An alternate shall vote in the event
of the absence, death, disability, removal, or resignation of the member
for whom the individual is an alternate. A state alternate shall not be
counted toward the establishment of a quorum of the Commission when
a quorum of the state members is required.
(3) COCHAIRMEN.—The Federal Cochairman is one of the two Co-
chairmen of the Commission. The state members shall elect a Cochair-
man of the Commission from among themselves for a term of not less
than one year.
(c) COMPENSATION.—The Federal Cochairman shall be compensated by
the Federal Government at level III of the Executive Schedule as set out
in subchapter II of chapter 53 of title 5. The Federal Cochairman’s alter-
nate shall be compensated by the Government at level V of the Executive
Schedule. Each state member and alternate shall be compensated by the
State which they represent at the rate established by law of that State.
(d) DELEGATION.—
(1) POWERS AND RESPONSIBILITIES.—Commission powers and re-
sponsibilities specified in section 14302(c) and (d) of this title, and the
vote of any Commission member, may not be delegated to an individual
who is not a Commission member or who is not entitled to vote in
Commission meetings.
(2) ALTERNATE FEDERAL COCHAIRMAN.—The alternate to the Fed-
eral Cochairman shall perform the functions and duties the Federal Co-
chairman delegates when not actively serving as the alternate.
(e) EXECUTIVE DIRECTOR.—The Commission has an executive director.
The executive director is responsible for carrying out the administrative
functions of the Commission, for directing the Commission staff, and for
other duties the Commission may assign.
(f) STATUS OF PERSONNEL.—Members, alternates, officers, and employ-
ees of the Commission are not federal employees for any purpose, except
the Federal Cochairman, the alternate to the Federal Cochairman, the staff
of the Federal Cochairman, and federal employees detailed to the Commis-
sion under section 14306(a)(3) of this title.
§ 14302. Decisions
(a) REQUIREMENTS
FOR APPROVAL.—Except as provided in section
14306(d) of this title, decisions by the Commission require the affirmative
vote of the Federal Cochairman and of a majority of the state members,
exclusive of members representing States delinquent under section
14306(d).
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(b) CONSULTATION.—In matters coming before the Commission, the Fed-
eral Cochairman, to the extent practicable, shall consult with the federal de-
partments and agencies having an interest in the subject matter.
(c) DECISIONS REQUIRING QUORUM OF STATE MEMBERS.—A decision
involving Commission policy, approval of state, regional or subregional de-
velopment plans or implementation of investment programs, modification or
revision of the Appalachian Regional Commission Code, allocation of
amounts among the States, or designation of a distressed county or an eco-
nomically strong county shall not be made without a quorum of state mem-
bers.
(d) PROJECT AND GRANT PROPOSALS.—The approval of project and
grant proposals is a responsibility of the Commission and shall be carried
out in accordance with section 14322 of this title.
§ 14303. Functions
(a) IN GENERAL.—In carrying out the purposes of this subtitle, the Ap-
palachian Regional Commission shall—
(1) develop, on a continuing basis, comprehensive and coordinated
plans and programs and establish priorities under those plans and pro-
grams, giving due consideration to other federal, state, and local plan-
ning in the Appalachian region;
(2) conduct and sponsor investigations, research, and studies, includ-
ing an inventory and analysis of the resources of the region, and, in
cooperation with federal, state, and local agencies, sponsor demonstra-
tion projects designed to foster regional productivity and growth;
(3) review and study, in cooperation with the agency involved, fed-
eral, state, and local public and private programs and, where appro-
priate, recommend modifications or additions which will increase their
effectiveness in the region;
(4) formulate and recommend, where appropriate, interstate com-
pacts and other forms of interstate cooperation and work with state
and local agencies in developing appropriate model legislation;
(5) encourage the formation of local development districts;
(6) encourage private investment in industrial, commercial, and rec-
reational projects;
(7) serve as a focal point and coordinating unit for Appalachian pro-
grams; and
(8) provide a forum for consideration of problems of the region and
proposed solutions and establish and utilize, as appropriate, citizens
and special advisory councils and public conferences.
(b) IDENTIFY NEEDS AND GOALS OF SUBREGIONAL AREAS.—In carrying
out its functions under this section, the Commission shall identify the char-
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acteristics of, and may distinguish between the needs and goals of, appro-
priate subregional areas, including central, northern, and southern Appa-
lachia.
§ 14304. Recommendations
The Appalachian Regional Commission may make recommendations to
the President and to the Governors and appropriate local officials with re-
spect to—
(1) the expenditure of amounts by federal, state, and local depart-
ments and agencies in the Appalachian region in the fields of natural
resources, agriculture, education, training, and health and welfare, and
in other fields related to the purposes of this subtitle; and
(2) additional federal, state, and local legislation or administrative
actions as the Commission considers necessary to further the purposes
of this subtitle.
§ 14305. Liaison between Federal Government and Commis-
sion
The President shall provide effective and continuing liaison between the
Federal Government and the Appalachian Regional Commission and a co-
ordinated review within the Government of the plans and recommendations
submitted by the Commission pursuant to sections 14303 and 14304 of this
title.
§ 14306. Administrative powers and expenses
(a) POWERS.—To carry out its duties under this subtitle, the Appa-
lachian Regional Commission may—
(1) adopt, amend, and repeal bylaws and regulations governing the
conduct of its business and the performance of its functions;
(2) appoint and fix the compensation of an executive director and
other personnel as necessary to enable the Commission to carry out its
functions, except that the compensation shall not exceed the maximum
rate of basic pay for the Senior Executive Service under section 5382
of title 5, including any applicable locality-based comparability payment
that may be authorized under section 5304(h)(2)(C) of title 5;
(3) request the head of any federal department or agency to detail
to temporary duty with the Commission personnel within the adminis-
trative jurisdiction of the head of the department or agency that the
Commission may need for carrying out its functions, each detail to be
without loss of seniority, pay, or other employee status;
(4) arrange for the services of personnel from any state or local gov-
ernment, subdivision or agency of a state or local government, or inter-
governmental agency;
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(5)(A) make arrangements, including contracts, with any partici-
pating state government for inclusion in a suitable retirement and em-
ployee benefit system of Commission personnel who may not be eligible
for, or continue in, another governmental retirement or employee ben-
efit system; or
(B) otherwise provide for coverage of its personnel;
(6) accept, use, and dispose of gifts or donations of services or any
property;
(7) enter into and perform contracts, leases (including the lease of
office space for any term expiring before October 1, 2001), cooperative
agreements, or other transactions, necessary in carrying out its func-
tions, on terms as it may consider appropriate, with any—
(A) department, agency, or instrumentality of the Federal Gov-
ernment;
(B) State or political subdivision, agency, or instrumentality of
a State; or
(C) person;
(8) maintain a temporary office in the District of Columbia and es-
tablish a permanent office at a central and appropriate location it may
select and field offices at other places it may consider appropriate; and
(9) take other actions and incur other expenses as may be necessary
or appropriate.
(b) AUTHORIZATIONS.—
(1) DETAIL
EMPLOYEES.—The head of a federal department or
agency may detail personnel under subsection (a)(3).
(2) ENTER
INTO
AND
PERFORM
TRANSACTIONS.—A department,
agency, or instrumentality of the Government, to the extent not other-
wise prohibited by law, may enter into and perform a contract, lease,
cooperative agreement, or other transaction under subsection (a)(7).
(c) RETIREMENT AND OTHER EMPLOYEE BENEFIT PROGRAMS.—The Di-
rector of the Office of Personnel Management may contract with the Com-
mission for continued coverage of Commission employees, if the employees
are federal employees when they begin Commission employment, in the re-
tirement program and other employee benefit programs of the Government.
(d) EXPENSES.—Administrative expenses of the Commission shall be paid
equally by the Government and the States in the Appalachian, except that
the expenses of the Federal Cochairman, the alternate to the Federal Co-
chairman, and the staff of the Federal Cochairman shall be paid only by
the Government. The Commission shall determine the amount to be paid
by each State. The Federal Cochairman shall not participate or vote in that
determination. Assistance authorized by this subtitle shall not be furnished
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to any State or to any political subdivision or any resident of any State,
and a state member of the Commission shall not participate or vote in any
decision by the Commission, while the State is delinquent in payment of its
share of administrative expenses.
§ 14307. Meetings
(a) IN GENERAL.—The Appalachian Regional Commission shall conduct
at least one meeting each year with the Federal Cochairman and at least
a majority of the state members present.
(b) ADDITIONAL MEETINGS BY ELECTRONIC MEANS.—The Commission
may conduct additional meetings by electronic means as the Commission
considers advisable, including meetings to decide matters requiring an af-
firmative vote.
§ 14308. Information
(a) ACTIONS OF COMMISSION.—To obtain information needed to carry
out its duties, the Appalachian Regional Commission shall—
(1) hold hearings, sit and act at times and places, take testimony,
receive evidence, and print or otherwise reproduce and distribute so
much of its proceedings and reports on the proceedings as the Commis-
sion may deem advisable;
(2) arrange for the head of any federal, state, or local department
or agency to furnish to the Commission information as may be avail-
able to or procurable by the department or agency; and
(3) keep accurate and complete records of its doings and trans-
actions which shall be made available for—
(A) public inspection; and
(B) audit and examination by the Comptroller General or an au-
thorized representative of the Comptroller General.
(b) AUTHORIZATIONS.—
(1) ADMINISTER OATHS.—A Cochairman of the Commission, or any
member of the Commission designated by the Commission, may admin-
ister oaths when the Commission decides that testimony shall be taken
or evidence received under oath.
(2) FURNISH INFORMATION.—The head of any federal, state, or local
department or agency, to the extent not otherwise prohibited by law,
may carry out section (a)(2).
(c) PUBLIC PARTICIPATION.—Public participation in the development, re-
vision, and implementation of all plans and programs under this subtitle by
the Commission, any State, or any local development district shall be pro-
vided for, encouraged, and assisted. The Commission shall develop and pub-
lish regulations specifying minimum guidelines for public participation, in-
cluding public hearings.
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§ 14309. Personal financial interests
(a) CONFLICT OF INTEREST.—
(1) NO ROLE ALLOWED.—Except as permitted by paragraph (2), an
individual who is a state member or alternate, or an officer or employee
of the Appalachian Regional Commission, shall not participate person-
ally and substantially as a member, alternate, officer, or employee in
any way in any particular matter in which, to the individual’s knowl-
edge, any of the following has a financial interest:
(A) the individual.
(B) the individual’s spouse, minor child, or partner.
(C) an organization (except a State or political subdivision of
a State) in which the individual is serving as an officer, director,
trustee, partner, or employee.
(D) any person or organization with whom the individual—
(i) is serving as an officer, director, trustee, partner, or em-
ployee; or
(ii) is negotiating or has any arrangement concerning pro-
spective employment.
(2) EXCEPTION.—Paragraph (1) does not apply if the individual
first advises the Commission of the nature and circumstances of the
particular matter and makes full disclosure of the financial interest and
receives in advance a written decision of the Commission that the inter-
est is not so substantial as to be considered likely to affect the integrity
of the services which the Commission may expect from the individual.
(3) CRIMINAL
PENALTY.—An individual violating this subsection
shall be fined under title 18, imprisoned for not more than two years,
or both.
(b) ADDITIONAL SOURCES OF SALARY DISALLOWED.—
(1) STATE MEMBER OR ALTERNATE.—A state member or alternate
may not receive any salary, or any contribution to, or supplementation
of, salary, for services on the Commission from a source other than the
State of the member or alternate.
(2) INDIVIDUALS DETAILED TO COMMISSION.—An individual detailed
to serve the Commission under section 14306(a)(4) of this title may
not receive any salary, or any contribution to, or supplementation of,
salary, for services on the Commission from a source other than the
state, local, or intergovernmental department or agency from which the
individual was detailed or from the Commission.
(3) CRIMINAL
PENALTY.—An individual violating this subsection
shall be fined under title 18, imprisoned for not more than one year,
or both.
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(c) FEDERAL COCHAIRMAN, ALTERNATE TO FEDERAL COCHAIRMAN, AND
FEDERAL OFFICERS AND EMPLOYEES.—The Federal Cochairman, the al-
ternate to the Federal Cochairman, and any federal officer or employee de-
tailed to duty with the Commission under section 14306(a)(3) of this title
are not subject to this section but remain subject to sections 202–209 of
title 18.
(d) RESCISSION.—The Commission may declare void and rescind any con-
tract, loan, or grant of or by the Commission in relation to which it finds
that there has been a violation of subsection (a)(1) or (b) of this section
or any of the provisions of sections 202–209 of title 18.
§ 14310. Annual report
Not later than six months after the close of each fiscal year, the Appa-
lachian Regional Commission shall prepare and submit to the Governor of
each State in the Appalachian region and to the President, for transmittal
to Congress, a report on the activities carried out under this subtitle during
the fiscal year.
SUBCHAPTER II—FINANCIAL ASSISTANCE
§ 14321. Grants and other assistance
(a) AUTHORIZATION TO MAKE GRANTS.—
(1) IN GENERAL.—The Appalachian Regional Commission may make
grants—
(A) for administrative expenses, including the development of
areawide plans or action programs and technical assistance activi-
ties, of local development districts, but—
(i) the amount of a grant shall not exceed 50 percent of
administrative expenses;
(ii) grants for administrative expenses shall not be made
for a state agency certified as a local development district for
a period of more than three years beginning on the date the
initial grant is made for the development district; and
(iii) the local development district contributions for admin-
istrative expenses may be in cash or in kind, fairly evaluated,
including space, equipment, and services;
(B) for assistance to States for a period of not more than two
years to strengthen the state development planning process for the
Appalachian region and the coordination of state planning under
this subtitle, the Public Works and Economic Development Act of
1965 (42 U.S.C. 3121 et seq.), and other federal and state pro-
grams; and
(C) for investigation, research, studies, evaluations, and assess-
ments of needs, potentials, or attainments of the people of the re-
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gion, technical assistance, training programs, demonstrations, and
the construction of necessary facilities incident to those activities,
which will further the purposes of this subtitle.
(2) LIMITATION ON AVAILABLE AMOUNTS.—
(A) IN GENERAL.—Except as provided in subparagraph (B), not
more than 50 percent (or 80 percent in the case of a project to
be carried out in a county for which a distressed county designa-
tion is in effect under section 14516 of this title) of the cost of
any activity eligible for financial assistance under this section may
be provided from amounts appropriated to carry out this subtitle.
(B) DISCRETIONARY GRANTS.—
(i) GRANTS TO WHICH PERCENTAGE LIMITATION DOESN’T
APPLY.—Discretionary grants made by the Commission to
implement significant regional initiatives, to take advantage
of special development opportunities, or to respond to emer-
gency economic distress in the region may be made without
regard to the percentage limitations specified in subparagraph
(A).
(ii) LIMITATION ON AGGREGATE AMOUNT.—For each fiscal
year, the aggregate amount of discretionary grants referred
to in clause (i) shall not be more than 10 percent of the
amount appropriated under section 14703 for the fiscal year.
(3) SOURCES OF GRANTS.—Grant amounts may be provided entirely
from appropriations to carry out this section, in combination with
amounts available under other federal or federal grant-in-aid programs,
or from any other source.
(4) FEDERAL SHARE.—Notwithstanding any law limiting the federal
share in any other federal or federal grant-in-aid program, amounts ap-
propriated to carry out this section may be used to increase the federal
share, as the Commission decides is appropriate.
(b) ASSISTANCE
FOR DEMONSTRATIONS
OF ENTERPRISE DEVELOP-
MENT.—
(1) IN GENERAL.—The Commission may provide assistance under
this section for demonstrations of enterprise development, including site
acquisition or development where necessary for the feasibility of the
project, in connection with the development of the region’s energy re-
sources and the development and stimulation of indigenous arts and
crafts of the region.
(2) COOPERATION BY FEDERAL AGENCIES.—In carrying out the pur-
poses of this subtitle and in implementing this section, the Secretary
of Energy, the Environmental Protection Agency, and other federal
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agencies shall cooperate with the Commission and shall provide assist-
ance that the Federal Cochairman may request.
(3) AVAILABLE AMOUNTS.—In any fiscal year, not more than—
(A) $3,000,000 shall be obligated for energy resource related
demonstrations; and
(B) $2,500,000 shall be obligated for indigenous arts and crafts
demonstrations.
(c) RECORDS.—
(1) COMMISSION.—The Commission, as required by the President,
shall maintain accurate and complete records of transactions and ac-
tivities financed with federal amounts and report to the President on
the transactions and activities. The records of the Commission are
available for audit with respect to grants by the President and the
Comptroller General.
(2) RECIPIENTS OF FEDERAL ASSISTANCE.—Recipients of federal as-
sistance under this section, as required by the Commission, shall main-
tain accurate and complete records of transactions and activities fi-
nanced with federal amounts and report to the Commission on the
transactions and activities. The records are be available for audit by
the President, the Comptroller General, and the Commission.
§ 14322. Approval of development plans, investment pro-
grams, and projects
(a) ANNUAL REVIEW AND APPROVAL REQUIRED.—The Appalachian Re-
gional Commission annually shall review and approve, in accordance with
section 14302 of this title, state and regional development plans and imple-
menting investment programs, and any multistate subregional plans which
may be developed.
(b) APPLICATION PROCESS.—An application for a grant or for other as-
sistance for a specific project under this subtitle shall be made through the
state member of the Commission representing the applicant. The state
member shall evaluate the application for approval. To be approved, the
state member must certify, and the Federal Cochairman must determine,
that the application—
(1) implements the Commission-approved state development plan;
(2) is included in the Commission-approved implementing investment
program;
(3) adequately ensures that the project will be properly administered,
operated, and maintained; and
(4) otherwise meets the requirements for assistance under this sub-
title.
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(c) AFFIRMATIVE VOTE REQUIREMENT DEEMED MET.—After the appro-
priate state development plan and implementing investment program are ap-
proved, certification by a state member, when joined by an affirmative vote
of the Federal Cochairman, is deemed to satisfy the requirements for af-
firmative votes for decisions under section 14302(a) of this title.
CHAPTER 145—SPECIAL APPALACHIAN PROGRAMS
SUBCHAPTER I—PROGRAMS
Sec.
14501.
Appalachian development highway system.
14502.
Demonstration health projects.
14503.
Assistance for proposed low- and middle-income housing projects.
14504.
Supplements to federal grant-in-aid programs.
SUBCHAPTER II—ADMINISTRATIVE
14511.
Required level of expenditure.
14512.
Consent of States.
14513.
Program implementation.
14514.
Program development criteria.
14515.
State development planning process.
14516.
Distressed and economically strong counties.
SUBCHAPTER I–PROGRAMS
§ 14501. Appalachian development highway system
(a) PURPOSE.—To provide a highway system which, in conjunction with
the Interstate System and other Federal-aid highways in the Appalachian
region, will open up an area with a developmental potential where commerce
and communication have been inhibited by lack of adequate access, the Sec-
retary of Transportation may assist in the construction of an Appalachian
development highway system and local access roads serving the Appalachian
region. The development highway system shall not be more than 3,025
miles. There shall not be more than 1,400 miles of local access roads that
serve specific recreational, residential, educational, commercial, industrial,
or similar facilities or facilitate a school consolidation program.
(b) COMMISSION DESIGNATIONS.—
(1) WHAT IS TO BE DESIGNATED.—The Appalachian Regioinal Com-
mission shall transmit to the Secretary its designations of—
(A) the general corridor location and termini of the development
highways;
(B) local access roads to be constructed;
(C) priorities for the construction of segments of the develop-
ment highways; and
(D) other criteria for the program authorized by this section.
(2) STATE TRANSPORTATION DEPARTMENT RECOMMENDATION RE-
QUIRED.—Before a state member participates in or votes on designa-
tions, the member must obtain the recommendations of the state trans-
portation department of the State which the member represents.
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(c) ADDITION TO FEDERAL-AID PRIMARY SYSTEM.—When completed,
each development highway not already on the Federal-aid primary system
shall be added to the system.
(d) USE OF SPECIFIC MATERIALS AND PRODUCTS.—
(1) INDIGENOUS MATERIALS AND PRODUCTS.—In the construction of
highways and roads authorized under this section, a State may give
special preference to the use of materials and products indigenous to
the Appalachian region.
(2) COAL DERIVATIVES.—For research and development in the use
of coal and coal products in highway construction and maintenance, the
Secretary may require each participating State, to the maximum extent
possible, to use coal derivatives in the construction of not more than
10 percent of the roads authorized under this subtitle.
(e) FEDERAL SHARE.—Federal assistance to any construction project
under this section shall not be more than 80 percent of the cost of the
project.
(f) CONSTRUCTION WITHOUT FEDERAL AMOUNTS.—
(1) PAYMENT OF FEDERAL SHARE.—When a participating State
constructs a segment of a development highway without the aid of fed-
eral amounts and the construction is in accordance with all procedures
and requirements applicable to the construction of segments of Appa-
lachian development highways with those amounts, except for proce-
dures and requirements that limit a State to the construction of
projects for which federal amounts have previously been appropriated,
the Secretary, on application by the State and with the approval of the
Commission, may pay to the State the federal share, which shall not
be more than 80 percent of the cost of the construction of the segment,
from any amounts appropriated and allocated to the State to carry out
this section.
(2) NO COMMITMENT OR OBLIGATION.—This subsection does not
commit or obligate the Federal Government to provide amounts for
segments of development highways constructed under this subsection.
(g) APPLICATION OF TITLE 23.—
(1) SECTIONS 106(a) AND 118.—Sections 106(a) and 118 of title 23
apply to the development highway system and the local access roads.
(2) CONSTRUCTION
AND
MAINTENANCE.—States are required to
maintain each development highway and local access road as provided
for Federal-aid highways in title 23. All other provisions of title 23 that
are applicable to the construction and maintenance of Federal-aid pri-
mary and secondary highways and which the Secretary decides are not
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inconsistent with this subtitle shall apply to the system and roads, re-
spectively.
§ 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 Sec-
retary 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 Commis-
sion for the support of its Health Advisory Committee and may make
grants for expenses of planning necessary for the development and op-
eration of demonstration health projects for the region.
(2) FEDERAL SHARE.—The amount of a grant under this section for
planning shall not be more than 75 percent of expenses. The federal
contribution may be provided entirely from amounts authorized under
this section or in combination with amounts provided under other fed-
eral or federal grant-in-aid programs. Notwithstanding any provision of
law limiting the federal share in those other programs, amounts appro-
priated to carry out this section may be used to increase the federal
share to the maximum percentage cost of a grant authorized under 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 14513 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 Men-
tal Retardation Facilities and Community Mental Health Centers Con-
struction Act of 1963 (42 U.S.C. 6000 et seq.), and other laws author-
izing grants for the construction of health-related facilities, without re-
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gard to any provisions in those laws related to appropriation authoriza-
tion ceilings or to allotments among the States.
(3) FEDERAL SHARE.—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. The federal contribution may be provided
entirely from amounts authorized under this section or in combination
with amounts provided under other federal grant-in-aid programs for
the construction or equipment of health-related facilities. Notwith-
standing any provision of law limiting the federal share in those other
programs, amounts authorized under this section may be used to in-
crease 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 Com-
mission 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 satis-
fied that the operation of the project will be conducted under effi-
cient management practices designed to obviate operating deficits.
(2) FEDERAL SHARE.—Grants under this section for the operation
(including initial operating amounts and operating deficits, which in-
clude 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 oper-
ation for a project to be carried out in a county for which a distressed
county designation is in effect under section 14516 of this title). The
federal contribution may be provided entirely from amounts appro-
priated to carry out this section or in combination with amounts pro-
vided under other federal grant-in-aid programs for the operation of
health related facilities and the provision of health and child develop-
ment 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.).