PUBLIC LAWS-CH. 722-OCT. 25, 1949 60 Stat. 1046. 42 U. S.C . §291h (b). Ante, p. 899. Limitation. 60 Stat. 1047. 42U. S.C. §291j (a). 60 Stat. 1046. 42U.S.C.§§291i- 291m; Supp. II , § 291i et seq. 58 Stat. 691. 42U.S.C.§241; Supp. II, 241. Limitation. 60 Stat. 1041 . 42U.S.C. 1291. 60 Stat. 1047. 42U.S.C. §291i(e). not to exceed (1) 331/3 per centum of the necessary cost to the appli- cant of the construction completed prior to such approval, or (2) the amount certified by the State agency as necessary to complete the construction of the hospital, whichever is less, shall constitute a con- tractual obligation of the Federal Government, and certifications for payment under subsection (b) of this section shall be on the basis of the Federal share plus such additional amount: Provided, That the total amount certified for payment shall not exceed the cost of con- struction of such project." ADMINISTRATION OF STATE PLANS SEC. 4 . Section 632 (a) of such Act is amended by inserting after "under section 625," in clause (4) thereof the following: "or (5) that adequate State funds are not being provided annually for the direct administration of the State plan,". STUDIES AND DEMONSTRATIONS RELATING TO COORDINATED USE OF HOSPITAL FACILITIES SEC. 5 . Part D of title VI of such Act is amended by adding after section 635 the following new section: "STUDIES AND DEMONSTRATIONS RELATING TO COORDINATED USE OF HOSPITAL FACILITIES "SEC. 636. In carrying out the purposes of section 301 with respect to hospital facilities, the Surgeon General is authorized to conduct research, experiments, and demonstrations relating to the effective development and utilization of hospital services, facilities, and resources, and, after consultation with the Federal Hospital Council, to make grants-in-aid to States, political subdivisions, universities, hospitals, and other public and private nonprofit institutions or organ- izations for projects for the conduct of research, experiments, or demonstrations relating to the development, utilization, and coordina- tion of hospital services, facilities, and resources. Any award made under this section for any such project in any fiscal year may include amounts for not to exceed the four succeeding fiscal years, and such amounts for such succeeding fiscal years shall constitute contractual obligations of the Federal Government: Provided, That the total expenditures for all such projects may not exceed $1,200,000 in any fiscal year." PURPOSE OF ACT SEC. 6 . Section 601 of such Act is amended to read as follows: "SEC. 601. The purpose of this title is- "(a) to assist the several States to inventory their existing hospitals (as defined in section 631 (e)), to survey the need for construction of hospitals, and to develop programs for construc- tion of such public and other nonprofit hospitals as will, in con- junction with existing facilities, afford the necessary physical facilities for furnishing adequate hospital, clinic, and similar services to all their people; "(b) to assist in the construction of public and other nonprofit hospitals in accordance with such programs; and "(c) to authorize the Surgeon General to conduct, and make grants for the conduct of, research, experiments, and demonstra- tions relating to the effective development and utilization of hospital services, facilities, and resources, and to promote the 900 [63 STAT.