ESTABLISHMENT OF BLOCK GRANT PROGRAM FOR SERVICES TO HOMELESS INDIVIDUALS WHO ARE CHRONICALLY MENTALLY ILL.

SEC. 611. ESTABLISHMENT OF BLOCK GRANT PROGRAM FOR SERVICES TO HOMELESS INDIVIDUALS WHO ARE CHRONICALLY MENTALLY ILL. Title V of the Public Health Service Act (42 U.S.C. 290aa et seq.) is amended— (1) by redesignating part C as part D; (2) by redesignating sections 520 through 527 as sections 541 through 548, respectively; and (3) by inserting after part B the following new part: “Part C— Community Mental Health Services for the Homeless “establishment of block grant program for services to homeless individuals who are chronically mentally ill “Sec. 521. (a) Requirement of Allotments for States.— The Secretary shall for fiscal years 1987 and 1988 allot to each State an amount determined in accordance with sections 528 and 529. The Secretary shall, in accordance with section 530, make payments each such fiscal year to each State from the allotment for the State if the Secretary approves for each such fiscal year an application submitted by the State pursuant to section 522. “(b) Purpose of Allotments.— The Secretary may not make payments under subsection (a) to a State for a fiscal year unless the State agrees that amounts received by the State pursuant to such subsection will be expended only for the purpose of providing, in accordance with section 524, community mental health services to homeless individuals who are chronically mentally ill. “requirement of submission of application containing certain agreements “Sec. 522. (a) In General.— The Secretary may not make payments under section 521(a) to a State for a fiscal year unless the State has submitted to the Secretary an application for the payments containing agreements in accordance with— “(1) section 521(b), relating to the purpose of allotments; “(2) section 523(a)(2), relating to the provision of matching funds; “(3) section 524, relating to the provision of certain mental health services; “(4) section 525, relating to restrictions on the use of payments; “(5) section 526, relating to the submission of a description of the intended use of a block grant; and “(6) section 527, relating to reports by the States. “(b) Certifications.— Agreements required under subsection (a) to be submitted to the Secretary shall be made through certification from the chief executive officer of the State involved. “(c) Submission of Certain Documents Relating to Use of Payments.— 101 STAT. 517 “(1) The Secretary may not make payments under section 521(a) to a State for a fiscal year unless the application submitted pursuant to subsection (a) contains the description required in section 526. “(2) For fiscal years subsequent to fiscal year 1987, the Secretary may not make payments under section 521(a) to a State unless such application contains the report required in section 527. “(d) Additional Required Information.— An application required in subsection (a) shall, with respect to agreements required to be contained in the application, provide assurances of compliance satisfactory to the Secretary and shall otherwise be in such form, be made in such manner, and contain such information in addition to information required in subsections (a) and (c) as the Secretary determines to be necessary to carry out this part. “requirement of provision of matching funds “Sec. 523. (a) In General.— The Secretary may not make payments under section 521(a) to a State— “(1) in an amount exceeding 75 percent of the costs of providing services described in section 521(b); and “(2) unless the State agrees that the State will make available, directly or through donations from public or private entities, non-Federal contributions toward such costs in an amount equal to not less than $1 (in cash or in kind under subsection (b)) for each $3 of Federal funds provided in such grant. “(b) Determination of Amount of Non-Federal Contribution.— “(1) Non-Federal contributions required in subsection (a) 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. “(2) A determination under paragraph (1) may not include any cash or in-kind contributions that, prior to February 26, 1987, were made available by any public or private entity for the purpose of assisting homeless individuals (including assistance other than the provision of community mental health services). “requirement of provision of certain mental health services “Sec. 524. (a) In General.— The Secretary may not make payments under section 521(a) to a State for a fiscal year unless the State agrees that projects receiving amounts pursuant to such section will— “(1) provide outreach services to chronically mentally ill individuals who are homeless or who are subject to a significant probability of becoming homeless; “(2) provide community mental health services, diagnostic services, crisis intervention services, and habilitation and rehabilitation services to individuals described in paragraph (1); “(3) refer such individuals as appropriate to medical facilities for necessary hospital services and to entities that provide primary health services and substance abuse services; 101 STAT. 518 “(4) provide, in accordance with subsection (b), appropriate training to individuals who provide services to individuals described in paragraph (1), including the training of individuals who work in shelters, mental health clinics, and other sites where homeless individuals receive services; “(5) provide appropriate case management services to homeless individuals, including— “(A) preparing a plan for the provision of community mental health services to the homeless individual involved and reviewing such plan not less than once every 3 months; “(B) providing assistance in obtaining and coordinating social and maintenance services for the individual, including services relating to daily living activities, transportation services, and habilitation and rehabilitation services, prevocational and vocational services, and housing services; “(C) providing assistance to the individual in obtaining income support services, including housing assistance, food stamps, and supplemental security income benefits; “(D) referring the individual for such other services as may be appropriate; and “(E) providing representative payee services in accordance with section 1631(a)(2) of the Social Security Act if the individual is receiving aid under title XVI of such Act and if the applicant is designated by the Secretary to provide such services; and “(6) provide supportive and supervisory services to homeless individuals in residential settings not supported under— “(A) the transitional housing demonstration program carried out by the Secretary of Housing and Urban Development pursuant to section 101(g) of Public Law 99–500 or Public Law 99–591; or “(B) the supportive housing demonstration program established in subtitle C of title IV of the Stewart B. McKinney Homeless Assistance Act. “(b) Certain Requirements With Respect to Training of Staff.— The Secretary may not make payments under section 521(a) to a State for a fiscal year unless the State agrees that training required in subsection (a)(4) will include training with respect to— “(1) identifying individuals who are chronically mentally ill; “(2) referring individuals to services available to such individuals, including job training services, literacy education, community health centers, community mental health centers, and substance abuse treatment programs; and “(3) identifying programs that provide benefits to homeless individuals and referring such individuals to the programs. “restrictions on use of payments “Sec. 525. (a) In General.— The Secretary may not make payments under section 521(a) to a State unless the applicant agrees that amounts received pursuant to such section will not be expended— “(1) to provide inpatient services; “(2) to make cash payments to intended recipients of mental health services; 101 STAT. 519 “(3) to purchase or improve real property (other than minor remodeling of existing improvements to real property) or to purchase major medical equipment; or “(4) to satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds. “(b) Limitation With Respect to Administrative Expenses.— The Secretary may not make payments under section 521(a) to a State for a fiscal year unless the State agrees that the State will not expend more than 4 percent of the payments for the purpose of administering the payments and that the State will pay from non-Federal sources the remaining costs of administering the payments. “requirement of submission of description of intended use of block grant “Sec. 526. (a) In General.— The Secretary may not make payments under section 521(a) to a State for a fiscal year unless— “(1) the State submits to the Secretary a description of the intended use for the fiscal year of the amounts for which the State is applying pursuant to such section; “(2) such description identifies the geographic areas within the State in which the greatest numbers of homeless individuals with a need for mental health services are located; “(3) such description provides information relating to the programs and activities to be supported and services to be provided, including information relating to coordinating such programs and activities with any similar programs and activities of public and private entities; and “(4) the State agrees that such description will be revised throughout the year as may be necessary to reflect substantial changes in the programs and activities assisted by the State pursuant to section 521. “(b) Opportunity for Public Comment.— The Secretary may not make payments under section 521(a) to a State for a fiscal year unless the State agrees that, in developing and carrying out the description required in subsection (a), the State will provide public notice with respect to the description (including any revisions) and such opportunities as may be necessary to provide interested persons an opportunity to present comments and recommendations with respect to the description. “(c) Relationship to State Comprehensive Mental Health Services Plan.— “(1) For fiscal year 1987, the Secretary may not make payments under section 521(a) to a State unless the services to be provided pursuant to the description required in subsection (a) are consistent with the State comprehensive mental health services plan required in subpart 2 of part B of title XIX. “(2) For fiscal years subsequent to fiscal year 1987, the Secretary may not make payments under section 521(a) to a State unless the services to be provided pursuant to the description required in subsection (a) have been considered in the preparation of, have been included in, and are consistent with, the State comprehensive mental health services plan referred to in paragraph (1). 101 STAT. 520 “requirement of reports by states “Sec. 527. (a) In General.— For fiscal years subsequent to fiscal year 1987, the Secretary may not make payments under section 521(a) to a State unless the State agrees that the State will prepare and submit to the Secretary an annual report in such form and containing such information as the Secretary determines (after consultation with the States and the Comptroller General of the United States) to be necessary for— “(1) securing a record and a description of the purposes for which amounts received under section 521(a) were expended and of the recipients of such amounts; “(2) determining whether such amounts were expended in accordance with the needs within the State identified pursuant to section 526(a)(2); and “(3) determining whether such amounts were expended in accordance with the purpose described in section 521(b). “(b) Availability to Public of Reports.— The Secretary may not make payments under section 521(a) to a State unless the State agrees that the State will make copies of the reports described in subsection (a) available for public inspection. “(c) Evaluations by Comptroller General.— The Comptroller General of the United States shall, from time to time, evaluate the expenditures by States of grants under this part in order to ensure that expenditures are consistent with the provisions of this part. “determination of amount of allotments “Sec. 528. (a) In General.— The allotment for a State under section 521(a) for a fiscal year shall be the greater of— “(1) $275,000; and “(2) an amount determined in accordance with subsection (b). “(b) Determination of Tentative Amount of Allotment.— “(1) The amount referred to in subsection (a)(2) is the product of— “(A) an amount equal to the amounts appropriated for the fiscal year pursuant to section 535; and “(B) the percentage described in paragraph (2). “(2) The percentage referred to in paragraph (1)(B) is a percentage equal to the quotient of— “(A) an amount equal to the population living in urbanized areas of the State involved, as indicated by the most recent data collected by the Bureau of the Census; divided by “(B) an amount equal to the population living in urbanized areas of the United States, as indicated by the sum of the respective amounts determined for each State under subparagraph (A). “disposition of certain funds appropriated for allotments “Sec. 529. (a) Additional Allotments for Certain States.— Amounts described in subsection (b) shall be allotted each fiscal year by the Secretary to States receiving allotments under section 521(a) for the fiscal year (other than any State described in subsection (b)(3)). The amount of an allotment for a State shall be determined in accordance with subsection (c). 101 STAT. 521 “(b) Description of Funds.— The amounts referred to in subsection (a) are any amounts made available in appropriations Acts for allotments under section 521(a) that are not allotted under such section as a result of— “(1) the failure of any State to submit an application under section 522; “(2) the failure of any State to prepare, within a reasonable period of time in the determination of the Secretary, such application in compliance with such section; or “(3) any State informing the Secretary that the State does not intend to expend the full amount of the allotment made to the State. “(c) Determination of Amount of Allotment.— The allotment under subsection (a) for a State shall be an amount equal to the product of— “(1) an amount equal to the amount described in subsection (b) for the fiscal year; and “(2) the percentage determined under section 528(b)(2) for the State involved. “disbursement and availability of funds “Sec. 530. (a) Disbursement.— Payments under section 521(a) shall be made in accordance with section 6503(a) of title 31, United States Code. “(b) Availability.— Amounts received by a State under section 521(a) remaining unobligated at the end of the fiscal year in which the amounts were received shall remain available to the State during the succeeding fiscal year for the purpose described in section 521(b). “technical assistance “Sec. 531. The Secretary may, without charge to a State receiving amounts under section 521(a), provide technical assistance to the State with respect to the planning, development, and operation of programs to carry out the purpose described in section 521(b). The Secretary may provide such technical assistance directly, through contract, or through grants. “failure to comply with agreements “Sec. 532. (a) Repayment of Payments.— “(1) The Secretary may, in accordance with subsection (c), require a State to repay any amounts received under section 521(a) that, in the determination of the Secretary, were not expended by the State in accordance with the agreements required to be contained in the application submitted by the State pursuant to section 522. “(2) If a State fails to make a repayment required in paragraph (1), the Secretary may offset the amount of the repayment against the amount of any payment due to be paid to the State under section 521(a). “(b) Withholding of Payments.— “(1) The Secretary may, in accordance with subsection (c), withhold payments due under section 521(a) if the Secretary determines that the State involved is not expending amounts received under such section in accordance with the agreements 101 STAT. 522required to be contained in the application submitted by the State pursuant to section 522. “(2) The Secretary shall cease withholding payments from a State under paragraph (1) if the Secretary determines that the State is expending amounts received under section 521(a) in accordance with the agreements required to be contained in the application submitted by the State pursuant to section 522. “(c) Opportunity for a Hearing.— Before requiring repayment of payments under subsection (a)(1), or withholding payments under subsection (b)(1), the Secretary shall provide to the State involved an opportunity for a hearing. “(d) Construction of Purpose of Allotments.— Notwithstanding any other provision of this part, a State receiving amounts under section 521(a) may not, with respect to the agreements required to be contained in the application submitted by the State pursuant to section 522, be considered to be in violation of any such agreements by reason of the fact that the State, in the regular course of providing mental health services to homeless individuals who are chronically mentally ill, incidentally provides mental health services to homeless individuals who are not chronically mentally ill. “establishment of prohibition against making certain false statements “Sec. 533. (a) In General.— “(1) A person may not knowingly make or cause to be made any false statement or representation of a material fact in connection with the furnishing of items or services for which payments may be made by a State from amounts paid to the State under section 521(a). “(2) A person with knowledge of the occurrence of any event affecting the right of the person to receive any payments by a State from such amounts may not conceal or fail to disclose any such event with the intent of securing such a payment that the person is not authorized to receive or securing such a payment in an amount greater than the amount that the person is authorized to receive. “(b) Criminal Penalty for Violation of Prohibition.— Any person who violates the prohibition established in subsection (a) may for each violation be fined in accordance with title 18, United States Code, or imprisoned for not more than 5 years, or both. “nondiscrimination “Sec. 534. (a) In General.— “(1) For the purpose of applying the prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975, on the basis of handicap under section 504 of the Rehabilitation Act of 1973, on the basis of sex under title IX of the Education Amendments of 1972, or on the basis of race, color, or national origin under title VI of the Civil Rights Act of 1964, programs and activities funded in whole or in part with funds made available under this part shall be considered to be programs and activities receiving Federal financial assistance. “(2) No person shall on the ground of sex or religion be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity 101 STAT. 523funded in whole or in part with funds made available under this part. “(b) Enforcement.— “(1) Whenever the Secretary finds that a State, or an entity that has received a payment pursuant to section 521(a), has failed to comply with a provision of law referred to in subsection (a)(1), with subsection (a)(2), or with an applicable regulation (including one prescribed to carry out subsection (a)(2)), the Secretary shall notify the chief executive officer of the State and request the chief executive officer to secure compliance. If within a reasonable period of time, not to exceed 60 days, the chief executive officer fails or refuses to secure compliance, the Secretary may— “(A) refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted; “(B) exercise the powers and functions provided by the Age Discrimination Act of 1975, section 504 of the Rehabilitation Act of 1973, or title VI of the Civil Rights Act of 1964, as may be applicable; or “(C) take such other actions as may be authorized by law. “(2) When a matter is referred to the Attorney General pursuant to paragraph (1)(A), or whenever the Attorney General has reason to believe that a State or an entity is engaged in a pattern or practice in violation of a provision of law referred to in subsection (a)(1) or in violation of subsection (a)(2), the Attorney General may bring a civil action in any appropriate district court of the United States for such relief as may be appropriate, including injunctive relief. “authorizations of appropriations “Sec. 535. There are authorized to be appropriated to carry out this part $35,000,000 for fiscal year 1987 and such sums as may be necessary for fiscal year 1988. “definitions “Sec. 536. For purposes of this part: “(1) The term ‘homeless individual’ has the meaning given such term in section 340(q)(2). “(2) The term ‘primary health services’ has the meaning given such term in section 330(b)(1). “(3) The term ‘State’ means each of the several States, the District of Columbia, and the Commonwealth of Puerto Rico. “(4) The term ‘substance abuse’ means the abuse of alcohol or other drugs.”.