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SECTION 1. SHORT TITLE.
This Act may be cited as the ''State Offices of Rural Health
Reauthorization Act of 2018''.
SEC. 2. STATE OFFICES OF RURAL HEALTH.
Section 338J of the Public Health Service Act (42 U.S.C. 254r) is
amended to read as follows:
''SEC. 338J. GRANTS TO STATE OFFICES OF RURAL HEALTH.
''(a) In General.--The Secretary, acting through the Director of
the Federal Office of Rural Health Policy (established under section
711 of the Social Security Act), shall make grants to each State Office
of Rural Health for the purpose of improving health care in rural
areas.
''(b) Requirement of Matching Funds.--
''(1) In general.--Subject to paragraph (2), the Secretary may
not make a grant under subsection (a) unless the State office of
rural health involved agrees, with respect to the costs to be
incurred in carrying out the purpose described in such subsection,
to provide non-Federal contributions toward such costs in an amount
equal to $3 for each $1 of Federal funds provided in the grant.
''(2) Waiver or reduction.--The Secretary may waive or reduce
the non-Federal contribution if the Secretary determines that
requiring matching funds would limit the State office of rural
health's ability to carry out the purpose described in subsection
(a).
''(3) Determination of amount of non-federal contribution.--
Non-Federal contributions required in paragraph (1) may be in cash
or in kind, fairly evaluated, including plant, equipment, or
services. Amounts provided by the Federal Government, 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.
''(c) Certain Required Activities.--Recipients of a grant under
subsection (a) shall use the grant funds for purposes of--
''(1) maintaining within the State office of rural health a
clearinghouse for collecting and disseminating information on--
''(A) rural health care issues;
''(B) research findings relating to rural health care; and
''(C) innovative approaches to the delivery of health care
in rural areas;
''(2) coordinating the activities carried out in the State that
relate to rural health care, including providing coordination for
the purpose of avoiding redundancy in such activities; and
''(3) identifying Federal and State programs regarding rural
health, and providing technical assistance to public and nonprofit
private entities regarding participation in such programs.
''(d) Requirement Regarding Annual Budget for Office.--The
Secretary may not make a grant under subsection (a) unless the State
involved agrees that, for any fiscal year for which the State office of
rural health receives such a grant, the office operated pursuant to
subsection (a) of this section will be provided with an annual budget
of not less than $150,000.
''(e) Certain Uses of Funds.--
''(1) Restrictions.--The Secretary may not make a grant under
subsection (a) unless the State office of rural health involved
agrees that the grant will not be expended--
''(A) to provide health care (including providing cash
payments regarding such care);
''(B) to conduct activities for which Federal funds are
expended--
''(i) within the State to provide technical and other
nonfinancial assistance under section 330A(f);
''(ii) under a memorandum of agreement entered into
with the State office of rural health under section
330A(h); or
''(iii) under a grant under section 338I;
''(C) to purchase medical equipment, to purchase
ambulances, aircraft, or other vehicles, or to purchase major
communications equipment;
''(D) to purchase or improve real property; or
''(E) to carry out any activity regarding a certificate of
need.
''(2) Authorities.--Activities for which a State office of
rural health may expend a grant under subsection (a) include--
''(A) paying the costs of maintaining an office of rural
health for purposes of subsection (a);
''(B) subject to paragraph (1)(B)(iii), paying the costs of
any activity carried out with respect to recruiting and
retaining health professionals to serve in rural areas of the
State; and
''(C) providing grants and contracts to public and
nonprofit private entities to carry out activities authorized
in this section.
''(3) Limit on indirect costs.--The Secretary may impose a
limit of no more than 15 percent on indirect costs claimed by the
recipient of the grant.
''(f) Reports.--The Secretary may not make a grant under subsection
(a) unless the State office of rural health involved agrees--
''(1) to submit to the Secretary reports or performance data
containing such information as the Secretary may require regarding
activities carried out under this section; and
''(2) to submit such a report or performance data not later
than September 30 of each fiscal year immediately following any
fiscal year for which the State office of rural health has received
such a grant.
''(g) Requirement of Application.--The Secretary may not make a
grant under subsection (a) unless an application for the grant is
submitted to the Secretary and the application is in such form, is made
in such manner, and contains such agreements, assurances, and
information as the Secretary determines to be necessary to carry out
such subsection.
''(h) Noncompliance.--The Secretary may not make payments under
subsection (a) to a State office of rural health for any fiscal year
subsequent to the first fiscal year of such payments unless the
Secretary determines that, for the immediately preceding fiscal year,
the State office of rural health has complied with each of the
agreements made by the State office of rural health under this section.
''(i) Authorization of Appropriations.--
''(1) In general.--For the purpose of making grants under
subsection (a), there are authorized to be appropriated $12,500,000
for each of fiscal years 2018 through 2022.
''(2) Availability.--Amounts appropriated under paragraph (1)
shall remain available until expended.''.

Speaker of the House of Representatives.

Vice President of the United States and
President of the Senate.
State Offices of Rural Health Reauthorization Act of 2018 This bill amends the Public Health Service Act to reauthorize through FY2022 and revise the grant program for state offices of rural health, including to require the Department of Health and Human Services (HHS) to make the grants, thus removing HHS's discretion to make them.