220 
cause the court shall weigh the public interest 
and the need for disclosure against the injury 
to the patient, to the physician-patient relation-
ship, and to the treatment services. Upon the 
granting of such order, the court, in deter-
mining the extent to which any disclosure of all 
or any part of any record is necessary, shall im-
pose appropriate safeguards against unauthor-
ized disclosure. 
‘‘(c) 
USE
OF
RECORDS
IN
CRIMINAL
PRO-
CEEDINGS.—Except as authorized by a court order grant-
ed under subsection (b)(2)(C), no record referred to in 
subsection (a) may be used to initiate or substantiate any 
criminal charges against a patient or to conduct any inves-
tigation of a patient. 
‘‘(d) APPLICATION.—The prohibitions of this section 
continue to apply to records concerning any individual who 
has been a patient, irrespective of whether or when such 
individual ceases to be a patient. 
‘‘(e) NONAPPLICABILITY.—The prohibitions of this 
section do not apply to any interchange of records— 
‘‘(1) within the Uniformed Services or within 
those components of the Department of Veterans Af-
fairs furnishing health care to veterans; or 
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‘‘(2) between such components and the Uni-
formed Services. 
The prohibitions of this section do not apply to the report-
ing under State law of incidents of suspected child abuse 
and neglect to the appropriate State or local authorities. 
‘‘(f) PENALTIES.—Any person who violates any provi-
sion of this section or any regulation issued pursuant to 
this section shall be fined in accordance with title 18, 
United States Code. 
‘‘(g) REGULATIONS.—Except as provided in sub-
section (h), the Secretary shall prescribe regulations to 
carry out the purposes of this section. Such regulations 
may contain such definitions, and may provide for such 
safeguards and procedures, including procedures and cri-
teria for the issuance and scope of orders under subsection 
(b)(2)(C), as in the judgment of the Secretary are nec-
essary or proper to effectuate the purposes of this section, 
to prevent circumvention or evasion thereof, or to facilitate 
compliance therewith. 
‘‘(h) APPLICATION TO DEPARTMENT OF VETERANS 
AFFAIRS.—The Secretary of Veterans Affairs, acting 
through the Chief Medical Director, shall, to the maximum 
feasible extent consistent with their responsibilities under 
title 38, United States Code, prescribe regulations making 
applicable the regulations prescribed by the Secretary of 
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Health and Human Services under subsection (g) of this 
section to records maintained in connection with the provi-
sion of hospital care, nursing home care, domiciliary care, 
and medical services under such title 38 to veterans suf-
fering from substance use disorders. In prescribing and 
implementing regulations pursuant to this subsection, the 
Secretary of Veterans Affairs shall, from time to time, 
consult with the Secretary of Health and Human Services 
in order to achieve the maximum possible coordination of 
the regulations, and the implementation thereof, which 
they each prescribe. 
‘‘PART E—CHILDREN WITH SERIOUS EMOTIONAL 
DISTURBANCES 
‘‘SEC. 571. COMPREHENSIVE COMMUNITY MENTAL HEALTH 
SERVICES FOR CHILDREN WITH SERIOUS 
EMOTIONAL DISTURBANCES. 
‘‘(a) GRANTS TO CERTAIN PUBLIC ENTITIES.— 
‘‘(1) IN
GENERAL.—The Secretary, acting 
through the Director of the Center for Mental 
Health Services, shall make grants to public entities 
for the purpose of providing comprehensive commu-
nity mental health services to children with a serious 
emotional disturbance, which may include efforts to 
identify and serve children at risk. 
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‘‘(2) DEFINITION
OF
PUBLIC
ENTITY.—For 
purposes of this part, the term ‘public entity’ means 
any State, any political subdivision of a State, and 
any Indian tribe or tribal organization (as defined in 
section 4(b) and section 4(c) of the Indian Self-De-
termination and Education Assistance Act). 
‘‘(b) CONSIDERATIONS IN MAKING GRANTS.— 
‘‘(1) REQUIREMENT OF STATUS AS GRANTEE 
UNDER PART B OF TITLE XIX.—The Secretary may 
make a grant under subsection (a) to a public entity 
only if— 
‘‘(A) in the case of a public entity that is 
a State, the State is such a grantee under sec-
tion 1911; 
‘‘(B) in the case of a public entity that is 
a political subdivision of a State, the State in 
which the political subdivision is located is such 
a grantee; and 
‘‘(C) in the case of a public entity that is 
an Indian tribe or tribal organization, the State 
in which the tribe or tribal organization is lo-
cated is such a grantee. 
‘‘(2) REQUIREMENT OF STATUS AS MEDICAID 
PROVIDER.— 
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‘‘(A) Subject to subparagraph (B), the 
Secretary may make a grant under subsection 
(a) only if, in the case of any service under such 
subsection that is covered in the State plan ap-
proved under title XIX of the Social Security 
Act for the State involved— 
‘‘(i) the public entity involved will pro-
vide the service directly, and the entity has 
entered into a participation agreement 
under the State plan and is qualified to re-
ceive payments under such plan; or 
‘‘(ii) the public entity will enter into 
an agreement with an organization under 
which the organization will provide the 
service, and the organization has entered 
into such a participation agreement and is 
qualified to receive such payments. 
‘‘(B)(i) In the case of an organization 
making an agreement under subparagraph 
(A)(ii) regarding the provision of services under 
subsection (a), the requirement established in 
such subparagraph regarding a participation 
agreement shall be waived by the Secretary if 
the organization does not, in providing health 
or mental health services, impose a charge or 
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accept reimbursement available from any third- 
party payor, including reimbursement under 
any insurance policy or under any Federal or 
State health benefits program. 
‘‘(ii) A determination by the Secretary of 
whether an organization referred to in clause (i) 
meets the criteria for a waiver under such 
clause shall be made without regard to whether 
the organization accepts voluntary donations re-
garding the provision of services to the public. 
‘‘(3) CERTAIN
CONSIDERATIONS.—In making 
grants under subsection (a), the Secretary shall— 
‘‘(A) equitably allocate such assistance 
among the principal geographic regions of the 
United States; 
‘‘(B) consider the extent to which the pub-
lic entity involved has a need for the grant; and 
‘‘(C) in the case of any public entity that 
is a political subdivision of a State or that is an 
Indian tribe or tribal organization— 
‘‘(i) shall consider any comments re-
garding the application of the entity for 
such a grant that are received by the Sec-
retary from the State in which the entity 
is located; and 
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‘‘(D) for any fifth and sixth such fiscal 
year, is not less than $2 for each $1 of Federal 
funds provided in the grant. 
‘‘(2) DETERMINATION
OF
AMOUNT
CONTRIB-
UTED.— 
‘‘(A) Non-Federal contributions required in 
paragraph (1) may be in cash or in kind, fairly 
evaluated, including plant, equipment, or serv-
ices. Amounts provided by the Federal Govern-
ment, or services assisted or subsidized to any 
significant extent by the Federal Government, 
may not be included in determining the amount 
of such non-Federal contributions. 
‘‘(B) In making a determination of the 
amount of non-Federal contributions for pur-
poses of subparagraph (A), the Secretary may 
include only non-Federal contributions in excess 
of the average amount of non-Federal contribu-
tions made by the public entity involved toward 
the purpose described in subsection (a) for the 
2-year period preceding the first fiscal year for 
which the entity receives a grant under such 
section. 
‘‘(3) WAIVER
REGARDING
NATIVE
AMERICAN 
AND ALASKAN NATIVE TRIBES AND TRIBAL ORGANI-
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ZATIONS.—In the case of a grantee that is a Native 
Americans or Alaskan Native tribe or tribal organi-
zation, the Secretary may waive, in whole or in part, 
the requirements of this subsection. 
‘‘SEC. 572. REQUIREMENTS WITH RESPECT TO CARRYING 
OUT PURPOSE OF GRANTS. 
‘‘(a) SYSTEMS OF COMPREHENSIVE CARE.— 
‘‘(1) IN GENERAL.—A funding agreement for a 
grant under section 571(a) is that, with respect to 
children with a serious emotional disturbance, the 
public entity involved will carry out the purpose de-
scribed in such section only through establishing and 
operating 1 or more systems of care for making each 
of the mental health services specified in subsection 
(c) available to each child provided access to the sys-
tem. In providing for such a system, the public enti-
ty may make grants to, and enter into contracts 
with, public and nonprofit private entities. 
‘‘(2) STRUCTURE
OF
SYSTEM.—A funding 
agreement for a grant under section 571(a) is that 
a system of care under paragraph (1) will— 
‘‘(A) be established in a community se-
lected by the public entity involved; 
‘‘(B) consist of such public agencies and 
nonprofit private entities in the community as 
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are necessary to ensure that each of the serv-
ices specified in subsection (c) is available to 
each child provided access to the system; 
‘‘(C) be established pursuant to agree-
ments that the public entity enters into with the 
agencies and entities described in subparagraph 
(B); 
‘‘(D) coordinate the provision of the serv-
ices of the system; and 
‘‘(E) establish an office whose functions 
are to serve as the location through which chil-
dren are provided access to the system, to co-
ordinate the provision of services of the system, 
and to provide information to the public regard-
ing the system. 
‘‘(3) COLLABORATION OF LOCAL PUBLIC ENTI-
TIES.—A funding agreement for a grant under sec-
tion 571(a) is that, for purposes of the establish-
ment and operation of a system of care under para-
graph (1), the public entity involved will seek col-
laboration among all public agencies that provide 
human services in the community in which the sys-
tem is established, including but not limited to those 
providing mental health services, educational serv-
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ices, child welfare services, or juvenile justice serv-
ices. 
‘‘(b) LIMITATION ON AGE OF CHILDREN PROVIDED 
ACCESS TO SYSTEM.—A funding agreement for a grant 
under section 571(a) is that a system of care under sub-
section (a) will provide an individual with access to the 
system through the age of 21 years. 
‘‘(c) REQUIRED MENTAL HEALTH SERVICES OF SYS-
TEM.—A funding agreement for a grant under section 
571(a) is that mental health services provided by a system 
of care under subsection (a) will include, with respect to 
a serious emotional disturbance in a child— 
‘‘(1) diagnostic and evaluation services; 
‘‘(2) outpatient services provided in a clinic, of-
fice, school or other appropriate location, including 
individual, group and family counseling services, pro-
fessional consultation, and review and management 
of medications; 
‘‘(3) emergency services, available 24-hours a 
day, 7 days a week; 
‘‘(4) intensive home-based services for children 
and their families when the child is at imminent risk 
of out-of-home placement; 
‘‘(5) intensive day-treatment services; 
‘‘(6) respite care; 
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‘‘(7) therapeutic foster care services, and serv-
ices in therapeutic foster family homes or individual 
therapeutic residential homes, and groups homes 
caring for not more than 10 children; and 
‘‘(8) assisting the child in making the transition 
from the services received as a child to the services 
to be received as an adult. 
‘‘(d) REQUIRED ARRANGEMENTS REGARDING OTHER 
APPROPRIATE SERVICES.— 
‘‘(1) IN GENERAL.—A funding agreement for a 
grant under section 571(a) is that— 
‘‘(A) a system of care under subsection (a) 
will enter into a memorandum of understanding 
with each of the providers specified in para-
graph (2) in order to facilitate the availability 
of the services of the provider involved to each 
child provided access to the system; and 
‘‘(B) the grant under such section 571(a), 
and the non-Federal contributions made with 
respect to the grant, will not be expended to 
pay the costs of providing such non-mental 
health services to any individual. 
‘‘(2) SPECIFICATION OF NON-MENTAL HEALTH 
SERVICES.—The providers referred to in paragraph 
(1) are providers of medical services other than men-
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