§ 1397d. Limitation on use of grants; waiver

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1935

   Pub. L. 97–35 title XXIII § 2352(a) · 95 Stat. 357

   Enacted · 42 U.S.C. § 1397d

   Aug. 14, 1935, ch. 531, title XX, § 2005, as added Pub. L. 97–35, title XXIII, § 2352(a), Aug. 13, 1981, 95 Stat. 869

   Source evidence

   Code source credit
   Aug. 14, 1935, ch. 531, title XX, § 2005, as added Pub. L. 97–35, title XXIII, § 2352(a), Aug. 13, 1981, 95 Stat. 869

   Enacted provision · exact public law section
   (a) Title XX of the Social Security Act is amended to read as follows: “TITLE XX— BLOCK GRANTS TO STATES FOR SOCIAL SERVICES “Sec. 2001. “purposes of title; authorization of appropriations For the purposes of consolidating Federal assistance to 42 USC 1397. States for social services into a single grant, increasing State flexibility in using social service grants, and encouraging each State, as far as practicable under the conditions in that State, to furnish services directed at the goals of— “(1) achieving or maintaining economic self-support to prevent, reduce, or eliminate dependency; “(2) achieving or maintaining self-sufficiency, including reduction or prevention of dependency; “(3) preventing or remedying neglect, abuse, or exploitation of children and adults unable to protect their own interests, or preserving, rehabilitating or reuniting families; “(4) preventing or reducing inappropriate institutional care by providing for community-based care, home-based care, or other forms of less intensive care; and “(5) securing referral or admission for institutional care when other forms of care are not appropriate, or providing services to individuals in institutions, there are authorized to be appropriated for each fiscal year such sums as may be necessary to carry out the purposes of this title. “Sec. 2002. “payments to states (a) (1) Each State shall be entitled to payment under this 42 USC 1397a. title for each fiscal year in an amount equal to its allotment for such fiscal year, to be used by such State for services directed at the goals set forth in section 2001, subject to the requirements of this title. “(2) For purposes of paragraph (1)— “(A) services which are directed at the goals set forth in section 2001 include, but are not limited to, child care services, protective services for children and adults, services for children and adults in foster care, services related to the management and maintenance of the home, day care services for adults, transportation services, family planning services, training and related services, employment services, information, referral, and counseling services, the preparation and delivery of meals, health support services and appropriate combinations of services designed to meet the special needs of children, the aged, the mentally retarded, the blind, the emotionally disturbed, the physically handicapped, and alcoholics and drug addicts; and “(B) expenditures for such services may include expenditures for— “(i) administration (including planning and evaluation); “(ii) personnel training and retraining directly related to the provision of those services (including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions); and “(iii) conferences or workshops, and training or retraining through grants to nonprofit organizations within the meaning 26 USC 501. of section 501(c)(3) of the Internal Revenue Code of 1954 or to individuals with social services expertise, or through financial assistance to individuals participating in such conferences, workshops, and training or retraining (and this clause shall apply with respect to all persons involved in the delivery of such services). “(b) The Secretary shall make payments in accordance with section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213) to each State from its allotment for use under this title. “(c) Payments to a State from its allotment for any fiscal year must be expended by the State in such fiscal year or in the succeeding fiscal year. “(d) A State may transfer up to 10 percent of its allotment under section 2003 for any fiscal year for its use for that year under other provisions of Federal law providing block grants for support of health services, health promotion and disease prevention activities, or low-income home energy assistance (or any combination of those activities). Amounts allotted to a State under any provisions of Federal law referred to in the preceding sentence and transferred by a State for use in carrying out the purposes of this title shall be treated as if they were paid to the State under this title but shall not affect the computation of the State’s allotment under this title. The State shall inform the Secretary of any such transfer of funds. “(e) A State may use a portion of the amounts described in subsection (a) for the purpose of purchasing technical assistance from public or private entities if the State determines that such assistance is required in developing, implementing, or administering programs funded under this title. “Sec. 2003. “allotments (a) The allotment for any fiscal year to each of the jurisdictions of Puerto Rico, Guam, the Virgin Islands, and the Northern Mariana Islands shall be an amount which bears the same ratio to the amount specified in subsection (c) as the amount which was specified for allocation to the particular jurisdiction involved for the fiscal year 1981 under section 2002(a)(2)(C) of this Act (as in effect 94 Stat. 525. 42 USC 1397a. prior to the enactment of this section) bore to $2,900,000,000. “(b) The allotment for any fiscal year for each State other than the jurisdictions of Puerto Rico, Guam, the Virgin Islands, and the Northern Mariana Islands shall be an amount which bears the same ratio to— “(1) the amount specified in subsection (c), reduced by “(2) the total amount allotted to those jurisdictions for that fiscal year under subsection (a), as the population of that State bears to the population of all the States as determined by the Secretary (on the basis of the most recent data available from the Department of Commerce) and promulgated (subject to subsection (d)) prior to the first day of the third month of the preceding fiscal year. “(c) The amount specified for purposes of subsections (a) and (b) shall be— “(1) $2,400,000,000 for the fiscal year 1982; “(2) $2,450,000,000 for the fiscal year 1983; “(3) $2,500,000,000 for the fiscal year 1984; “(4) $2,600,000,000 for the fiscal year 1985; and “(5) $2,700,000,000 for the fiscal year 1986 or any succeeding fiscal year. “(d) The determination and promulgation required by subsection (b) with respect to the fiscal year 1982 shall be made as soon as possible after the enactment of the Omnibus Budget Reconciliation Act of 1981. Ante, p. 357. “Sec. 2004. “state administration Prior to expenditure by a State of payments made to it Public report. 42 USC 1397c. under section 2002 for any fiscal year, the State shall report on the intended use of the payments the State is to receive under this title, including information on the types of activities to be supported and the categories or characteristics of individuals to be served. The report shall be transmitted to the Secretary and made public within the State in such manner as to facilitate comment by any person (including any Federal or other public agency) during development of the report and after its completion. The report shall be revised throughout the year as may be necessary to reflect substantial changes in the activities assisted under this title, and any revision shall be subject to the requirements of the previous sentence. “Sec. 2005. “limitations on use of grants (a) Except as provided in subsection (b), grants made 42 USC 1397d. under this title may not be used by the State, or by any other person with which the State makes arrangements to carry out the purposes of this title— “(1) for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than minor remodeling) of any building or other facility; “(2) for the provision of cash payments for costs of subsistence or for the provision of room and board (other than costs of subsistence during rehabilitation, room and board provided for a short term as an integral but subordinate part of a social service, or temporary emergency shelter provided as a protective service); “(3) for payment of the wages of any individual as a social service (other than payment of the wages of welfare recipients employed in the provision of child day care services); “(4) for the provision of medical care (other than family planning services, rehabilitation services, or initial detoxification of an alcoholic or drug dependent individual) unless it is an integral but subordinate part of a social service for which grants may be used under this title; “(5) for social services (except services to an alcoholic or drug dependent individual or rehabilitation services) provided in and by employees of any hospital, skilled nursing facility, intermediate care facility, or prison, to any individual living in such institution; “(6) for the provision of any educational service which the State makes generally available to its residents without cost and without regard to their income; “(7) for any child day care services unless such services meet applicable standards of State and local law; or “(8) for the provision of cash payments as a service (except as otherwise provided in this section). “(b) The Secretary may waive the limitation contained in subsection (a) (1) and (4) upon the State’s request for such a waiver if he finds that the request describes extraordinary circumstances to justify the waiver and that permitting the waiver will contribute to the State’s ability to carry out the purposes of this title. “Sec. 2006. “reports and audits (a) Each State shall prepare reports on its activities carried out with funds made available (or transferred for use) under this title. Reports shall be in such form, contain such information, and be of such frequency (but not less often than every two years) as the State finds necessary to provide an accurate description of such activities, to secure a complete record of the purposes for which funds were spent, and to determine the extent to which funds were spent in a manner consistent with the reports required by section 2004. The State shall make copies of the reports required by this section available for public inspection within the State and shall transmit a Copies. copy to the Secretary. Copies shall also be provided, upon request, to any interested public agency, and each such agency may provide its views on these reports to the Congress. “(b) Each State shall, not less often than every two years, audit its expenditures from amounts received (or transferred for use) under this title. Such State audits shall be conducted by an entity independent of any agency administering activities funded under this title, in accordance with generally accepted auditing principles. Within 30 days following the completion of each audit, the State shall submit a copy of that audit to the legislature of the State and to the Secretary. Unexpended funds. Each State shall repay to the United States amounts ultimately found not to have been expended in accordance with this title, or the Secretary may offset such amounts against any other amount to which the State is or may become entitled under this title. “(c) For other provisions requiring States to account for Federal grants, see section 202 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4212). “Sec. 2007. “child day care services (a) Subject to subsection (b), sums granted by a State to Grants to qualified provider. 42 USC 1397f. a qualified provider of child day care services (as defined in subsection (c)) to assist such provider in meeting its work incentive program expenses (as defined in subsection (c)) with respect to individuals employed in jobs related to the provision of child day care services in one or more child day care facilities of such provider, shall be deemed for purposes of section 2002 to constitute expenditures made by the State in accordance with the provisions of this title for the provision of child day care services. “(b) The provisions of subsection (a) shall not be applicable with respect to any grant made to a particular qualified provider of child day care services to the extent that (as determined by the Secretary) such grant is or will be used to pay wages to any employee at an annual rate in excess of $6,000, in the case of a public or nonprofit private provider, or at an annual rate in excess of $5,000, or to pay more than 80 percent of the wages of any employee, in the case of any other provider. “(c) For purposes of this subsection— Definitions. “(1) the term ‘qualified provider of child day care services’, when used in reference to a recipient of a grant by a State, includes a provider of such services only if, of the total number of children receiving such services from such provider in the facility with respect to which the grant is made, at least 20 percent thereof have some or all of the costs for the child day care services so furnished to them by such provider paid for under a program conducted pursuant to this title; and “(2) the term ‘work incentive program expenses’ means expenses of a qualified provider of child day care services which constitute work incentive program expenses as defined in section 50B(a)(1) of the Internal Revenue Code of 1954, or which would 26 USC 50B. constitute work incentive program expenses as so defined if the provider were a taxpayer entitled to a credit (with respect to the wages involved) under section 40 of such Code.”. 26 USC 40. 42 USC 1301. Ante, p. 867.

2. 1987

   Medicare and Medicaid Patient and Program Protection Act of 1987

   Pub. L. 100–93 § 8(i) · 101 Stat. 680

   Added · 42 U.S.C. § 1397d(a)(9)

   Pub. L. 100–93 added par. (9)

   Source evidence

   Code amendment note
   Subsec. (a)(9). Pub. L. 100–93 added par. (9).

   Enacted provision · exact public law section
   (i) Title XX.— Section 2005(a) (42 U.S.C. 1397d(a)) is amended— (1) by striking “or” at the end of paragraph (7), (2) by striking the period at the end of paragraph (8) and inserting “; or”, and (3) by adding at the end thereof the following new paragraph: “(9) for payment for any item or service (other than an emergency item or service) furnished— “(A) by an individual or entity during the period when such individual or entity is excluded pursuant to section 1128 or section 1128A from participation in the program Ante, pp. 680, 689. under this title, or “(B) at the medical direction or on the prescription of a physician during the period when the physician is excluded pursuant to section 1128 or section 1128A from participation in the program under this title and when the person furnishing such item or service knew or had reason to know of the exclusion (after a reasonable time period after reasonable notice has been furnished to the person).”.

3. 1988

   Medicare Catastrophic Coverage Act of 1988

   Pub. L. 100–360 § 411(k)(10)(D) · 102 Stat. 683

   1. Amended · 42 U.S.C. § 1397d(a)(9)(A); 42 U.S.C. § 1397d(a)(9)(B)

      Pub. L. 100–360, § 411(k)(10)(D), as amended by Pub. L. 100–485, § 608(d)(26)(K)(ii)

   2. Added · 42 U.S.C. § 1397d(a)(9)(A); 42 U.S.C. § 1397d(a)(9)(B)

      Pub. L. 100–360, § 411(k)(10)(D), as added Pub. L. 100–203, § 4118(e)(13), see 1987 Amendment note below

   Source evidence

   Code amendment note
   Subsec. (a)(9)(A), (B). Pub. L. 100–360, § 411(k)(10)(D), as amended by Pub. L. 100–485, § 608(d)(26)(K)(ii), added Pub. L. 100–203, § 4118(e)(13), see 1987 Amendment note below.

   Enacted provision · exact public law section
   (D) Section 4118(e) of OBRA is amended by redesignating 42 USC 1320a–7a note. paragraph (3) as paragraph (14) and by inserting after paragraph (2) the following new paragraphs: “(3) Section 1128(b)(8)(A)(i) of such Act is amended by inserting after ‘(A)(i)’ the following: ‘who has a direct or indirect ownership or control interest of 5 percent or more in the entity or’. “(4) Section 1128(d) of such Act is amended— “(A) in paragraph (1), by striking ‘subsection (b)’ and inserting ‘this section and section 1128A’, and “(B) in paragraph (3)(A), by striking ‘under a program’. “(5) Section 1128(i) of such Act is amended— “(A) in the matter before paragraph (1), by striking ‘a physician or other individual and inserting “an individual or entity”, “(B) in paragraphs (1) through (4), by striking ‘physician or other individual’ each place it appears and inserting ‘individual or entity’, and “(C) in paragraph (4), by striking ‘first offender or other program’ and inserting ‘first offender, deferred adjudication, or other arrangement or program’. “(6) Section U28A(a)(D(D) of such Act is amended— “(A) by striking ‘excluded under’ and inserting ‘excluded from’, and “(B) by inserting ‘or as a result of the application of the provisions of section 1842(j)(2) or section 1867(d)(2)’ after ‘or 1866(b)’. “(7) The second sentence of section 1128A(c)(1) of such Act is amended— “(A) by inserting “, request for payment, or other occurrence described in this section’ after ‘any claim’, and “(B) by inserting “, the request for payment was made, or the occurrence took place’ after ‘claim was presented’. “(8) Section 1128A(i) of such Act is amended, in the matter before paragraph (1), by striking ‘subsection’ and inserting ‘section’. “(9) Section 1128A(i)(1) of such Act is amended by inserting ‘or title )()(’ after ‘title V’. “(10) Section 1128A of such Act is further amended— “(A) in the matter in subsection (a) before paragraph (1), by inserting but excluding a beneficiary, as defined in subsection (1)(5)’ after ‘other entity’, “(B) in subsection (i)(2), by striking ‘submitted by’ and all that follows through the end and inserting ‘for payments for items and services under title V, )(VIII, )(I)(, or )()( of this Act.’, and “(C) by adding at the end the following new paragraph: “’(5) The term “beneficiary” means an individual who is eligible to receive items or services for which payment may be made under title V, XVIII, XIX, or XX but does not include a provider, supplier, or practitioner.’. “(11) Section 1903(i)(2) of such Act (42 U.S.C. 1396b(i)(2)) is amended— “(A) in subparagraph (A), by striking ‘in the State plan under this title pursuant to section 1128 or section 1128A’ and inserting ‘under title V, XVIII, or XX or under this title pursuant to section 1128, 1128A, 1156, 1842(j)(2), or 1867(d)(2)’, and “(B) in subparagraph (B), by striking ‘pursuant to section 1128 or section U28A from participation in the program under this title’ and inserting ‘from participation under title V, XVIII, or XX or under this title pursuant to section 1128, 1128A, 1156, 1842(j)(2), or 1867(d)(2)’. “(12) Section 504(b)(6) of such Act (42 U.S.C. 704(b)(6)) is amended by striking ‘pursuant to section 1128 or section 1128A from participation in the program under this title’ each place it appears and inserting ‘under this title or title XVIII, XIX, or XX pursuant to section 1128, U28A, 1156, 1842(j)(2), or 1867(d)(2)’. “(13) Section 2005(a)(9) of such Act (42 U.S.C. 1397d(a)(9)) is amended by striking ‘pursuant to section 1128 or section 1128A from participation in the program under this title’ each place it appears and inserting ‘under this title or title V, XVIII, or XIX pursuant to section 1128, 1128A, 1156, 1842(j)(2), or 1867(d)(2)’.”.

4. 1987

   Pub. L. 100–203 § 4118(e)(13) · 101 Stat. 1330

   1. Added · 42 U.S.C. § 1397d(a)(9)(A); 42 U.S.C. § 1397d(a)(9)(B)

      Pub. L. 100–203, § 4118(e)(13), as added by Pub. L. 100–360, § 411(k)(10)(D), as amended by Pub. L. 100–485, § 608(d)(26)(K)(ii)

   2. Substituted · 42 U.S.C. § 1397d(a)(9)(A); 42 U.S.C. § 1397d(a)(9)(B)

      Pub. L. 100–203, § 4118(e)(13), as substituted “under this subchapter or subchapter V, XVIII, or XIX pursuant to section 1320a–7, 1320a–7a, 1320c–5, or 1395u(j)(2) of this title” for “pursuant to section 1320a–7 of this title or section 1320a–7a of this title from participation in the program under this subchapter”

   Source evidence

   Code amendment note
   Subsec. (a)(9)(A), (B). Pub. L. 100–203, § 4118(e)(13), as added by Pub. L. 100–360, § 411(k)(10)(D), as amended by Pub. L. 100–485, § 608(d)(26)(K)(ii), substituted “under this subchapter or subchapter V, XVIII, or XIX pursuant to section 1320a–7, 1320a–7a, 1320c–5, or 1395u(j)(2) of this title” for “pursuant to section 1320a–7 of this title or section 1320a–7a of this title from participation in the program under this subchapter”.

   Enacted provision · exact public law section
   (e) Civil Money Penalty and Exclusion Clarifications.— (1) Section 1128A(a)(1) of the Social Security Act (42 U.S.C. 1320a–7(a)(1)), as amended by section 3(a)(1) of the Medicare and Medicaid Patient and Program Protection Act of 1987 (Public Law 100–93), is amended by striking “or has reason to know” 42 USC 1320a–7a. each place it appears and inserting “or should know”. (2) Section 1128(d)(3)(B) of the such Act (42 U.S.C. 1320a–6(d)(3)(B)), as amended by section 2 of the Medicare and Medicaid Patient and Program Protection Act of 1987 (Public Law 100–93), is amended— (A) by inserting “(i)” after “(B)”, and 42 USC 1320a–7. (B) by adding at the end the following new clause: “(ii) A State health care program may provide for a period of exclusion which is longer than the period of exclusion under a program under title XVIII.”. (3) The amendment made by paragraph (1) shall apply to Effective date. 42 USC 1320a–7a note. activities occurring before, on, or after the date of the enactment of this Act.

5. 1997

   Assisted Suicide Funding Restriction Act of 1997

   Pub. L. 105–12 § 9(c) · 111 Stat. 23

   Added · 42 U.S.C. § 1397d(a)(10)

   Pub. L. 105–12 added par. (10)

   Source evidence

   Code amendment note
   Subsec. (a)(10). Pub. L. 105–12 added par. (10).

   Enacted provision · exact public law section
   (c) Title XX Block Grant Program.— Section 2005(a) of the Social Security Act (42 U.S.C. 1397d(a)) is amended— (1) by striking “or” at the end of paragraph (8); (2) by striking the period at the end of paragraph (9) and inserting “; or”; and (3) by adding at the end the following: “(10) in a manner inconsistent with the Assisted Suicide Funding Restriction Act of 1997.”.

   Effective date note
   Amendment by Pub. L. 105–12 effective Apr. 30, 1997, and applicable to Federal payments made pursuant to obligations incurred after Apr. 30, 1997, for items and services provided on or after such date, subject to also being applicable with respect to contracts entered into, renewed, or extended after Apr. 30, 1997, as well as contracts entered into before Apr. 30, 1997, to the extent permitted under such contracts, see section 11 of Pub. L. 105–12, set out as an Effective Date note under section 14401 of this title.

6. 2010

   Elder Justice Act of 2009

   Pub. L. 111–148 title VI § 6703(d)(1)(B) · 124 Stat. 119

   Substituted · 42 U.S.C. § 1397d

   Pub. L. 111–148, which directed substitution of “this division” for “this subchapter” wherever appearing in subtitle 1 of title XX of act Aug. 14, 1935, was executed by making the substitution wherever appearing in this section, which is in subtitle A of title XX act Aug. 14, 1935, to reflect the probable intent of Congress

   Source evidence

   Code amendment note
   Pub. L. 111–148, which directed substitution of “this division” for “this subchapter” wherever appearing in subtitle 1 of title XX of act Aug. 14, 1935, was executed by making the substitution wherever appearing in this section, which is in subtitle A of title XX act Aug. 14, 1935, to reflect the probable intent of Congress.

   Enacted provision · exact public law section
   (B) in subtitle 1, 42 USC 1397, 1397a, 1397c–1397e, 1397g. by striking “this title” each place it appears and inserting “this subtitle”.

8 of 8 references resolved to an enrolled provision