USE OF ALLOTMENT FUNDS AND APPLICATION FOR BLOCK GRANT FUNDS.

SEC. 6503. USE OF ALLOTMENT FUNDS AND APPLICATION FOR BLOCK GRANT FUNDS. (a) Expanding Use of Funds and Limitation on Use of Funds for Administrative Costs.—Section 504 of the Social Security Act (42 U.S.C. 704) is amended— (1) in subsection (a), by inserting “and including payment of salaries and other related expenses of National Health Service Corps personnel” after “education, and evaluation”, and (2) by adding at the end the following new subsection: “(d) Of the amounts paid to a State under section 503 from an allotment for a fiscal year under section 502(c), not more than 10 percent may be used for administering the funds paid under such section.”. (b) Application.—Section 505 of such Act (42 U.S.C. 705) is amended— (1) by amending the heading to read as follows: “application for block grant funds”; (2) by inserting “(a)” after “Sec. 505.”; (3) in the matter before paragraph (1), by inserting “an application (in a standardized form specified by the Secretary) that” after “must prepare and transmit to the Secretary”; (4) by striking paragraph (1) and redesignating paragraph (2) as paragraph (5) and by inserting before paragraph (5), as redesignated, the following new paragraphs: “(1) contains a statewide needs assessment (to be conducted every 5 years) that shall identify (consistent with the health status goals and national health objectives referred to in section 501(a)) the need for— “(A) preventive and primary care services for pregnant women, mothers, and infants up to age one; “(B) preventive and primary care services for children; and “(C) services for children with special health care needs (as specified in section 501(a)(1)(D)); (2) includes for each fiscal year— “(A) a plan for meeting the needs identified by the state-wide needs assessment under paragraph (1); and “(B) a description of how the funds allotted to the State under section 502(c) will be used for the provision and coordination of services to carry out such plan that shall include— “(i) subject to paragraph (3), a statement of the goals and objectives consistent with the health status goals and national health objectives referred to in section 501(a) for meeting the needs specified in the State plan described in subparagraph (A); 103 STAT. 2277 “(ii) an identification of the areas and localities in the State in which services are to be provided and coordinated; “(iii) an identification of the types of services to be provided and the categories or characteristics of individuals to be served; and “(iv) information the State will collect in order to prepare reports required under section 506(a); “(3) except as provided under subsection (b), provides that the State will use— “(A) at least 30 percent of such payment amounts for preventive and primary care services for children, and “(B) at least 30 percent of such payment amounts for services for children with special health care needs (as specified in section 501 (a)(1)(D)); “(4) provides that a State receiving funds for maternal and child health services under this title shall maintain the level of funds being provided solely by such State for maternal and child health programs at a level at least equal to the level that such State provided for such programs in fiscal year 1989; and”; and (5) in paragraph (5), as redesignated by paragraph (4) of this subsection— (A) by striking “a statement of assurances that represents to the Secretary” and inserting “provides”; (B) in subparagraph (A), by striking “will provide” and inserting “will establish”; (C) by amending subparagraph (C)(i) to read as follows: “(i) special consideration (where appropriate) for the continuation of the funding of special projects in the State previously funded under this title (as in effect before August 31, 1981), and”; (D) in subparagraph (D), by striking “and” at the end; (E) by redesignating subparagraph (E) as subparagraph (F) and by inserting after subparagraph (D) the following new subparagraph: “(E) the State agency (or agencies) administering the State’s program under this title will provide for a toll-free telephone number (and other appropriate methods) for the use of parents to access information about health care providers and practitioners who provide health care services under this title and title XIX and about other relevant health and health-related providers and practitioners; and”; and (F) in subparagraph (F) (as redesignated by subparagraph (E))— (i) by striking “participate” before clause (i), (ii) in clause (i), by striking “diagnosis” and inserting “diagnostic”, (iii) in clause (i), by striking “title XIX” and inserting “section 1905(a)(4)(B) (including the establishment of periodicity and content standards for early and periodic screening, diagnostic, and treatment services)”, (iv) by inserting “participate” after “(i)”, after “(ii)”, and after “(iii)”, (v) by striking “and” at the end of clause (ii), (vi) by striking the period at the end of clause (iii) and inserting “, and”, and 103 STAT. 2278 (vii) by inserting after clause (iii) the following new clause: “(iv) provide, directly and through their providers and institutional contractors, for services to identify pregnant women and infants who are eligible for medical assistance under subparagraph (A) or (B) of section 1902(l)(1) and, once identified, to assist them in applying for such assistance.”; (6) by striking the last 2 sentences and inserting the following: “The application shall be developed by, or in consultation with, the State maternal and child health agency and shall be made public within the State in such manner as to facilitate comment from any person (including any Federal or other public agency) during its development and after its transmittal.”; and (7) by adding at the end the following new subsection: “(b) The Secretary may waive the requirement under subsection (a)(3) that a State’s application for a fiscal year provide for the use of funds for specific activities if for that fiscal year— “(1) the Secretary determines— “(A) on the basis of information provided in the State’s most recent annual report submitted under section 506(a)(1), that the State has demonstrated an extraordinary unmet need for one of the activities described in subsection (a)(3), and “(B) that the granting of the waiver is justified and will assist in carrying out the purposes of this title; and “(2) the State provides assurances to the Secretary that the State will provide for the use of some amounts paid to it under section 503 for the activities described in subparagraphs (A) and (B) of subsection (a)(3) and specifies the percentages to be substituted in each of such subparagraphs.”. (c) Conforming Amendments.—(1) Section 502(c) of such Act (42 U.S.C. 702(c)), as redesignated by section 6502(a)(3) of this subtitle, is amended by striking “a description of intended activities and statement of assurances” and inserting “an application”. (2) Section 504(a) of such Act (42 U.S.C. 704(a)) is amended by striking “its description of intended expenditures and statement of assurances” and insert “its application”. (3) Section 506(a)(1)(C) of such Act (42 U.S.C. 706(a)(1)(C)) is amended by striking “description and statement” and inserting “application”. (4) Sections 502(b), 502(d)(1), 503(c), 504(a), 506(a)(1)(C), and 509(a)(6) of such Act (42 U.S.C. 702(b), 702(d)(1), 703(c), 704(a), 706(a)(1)(C), 709(a)(6)) are each amended by striking “505” each place it appears and inserting “505(a)”.