77 STAT. ]
PUBLIC LAW 88-164-OCT. 31, 1963
289
The Secretary shall approve such application if sufficient funds to pay the Federal share of the cost of construction of such project are available from the allotment to the State, and if the Secretary finds (A) that the application contains such reasonable assurance as to title, financial support, and payment of prevailing rates of wages and overtime pay; (B) that the plans and specifications are in accord with the regulations prescribed pursuant to section 133; (C) that the application is in conformity with the State plan approved under section 134 and contains an assurance that in the operation of the facility there will be compliance with the applicable requirements of the State plan and of the regulations prescribed under section 133(4) for furnishing needed facilities for persons unable to pay therefor, and with State standards for operation and maintenance; and (D) that the application has been approved and recommended by the State agency and is entitled to priority over other projects within the State in accordance with the regulations prescribed pursuant to section 133(2). No application shall be disapproved by the Secretary until he has afforded the State agency an opportunity for a hearing. (b) Amendment of any approved application shall be subject to approval in the same manner as an original application. WITHHOLDING OF PAYMENTS
SEC. 136. Whenever. the Secretary after reasonable notice and opportunity for hearing to the State agency designated as provided in section 134(a)(1), finds— (1) that the State agency is not complying substantially with the provisions required by section 134 to be included in its State plan or with regulations under this part; (2) that any assurance required to be given in an application filed under section 135 is not being or cannot be carried out; (3) that there is a substantial failure to carry out plans and specifications approved by the Secretary under section 135; or (4) that adequate State funds are not being provided annually for the direct administration of the State plan, the Secretary may forthwith notify the State agency that— (5) no further payments will be made to the State from allotments under this part; or (6) no further payments will be made from allotments under this part for any project or projects designated by the Secretary as being affected by the action or inaction referred to in paragraph (1), (2), (3), or (4) of this section, as the Secretary may determine to be appropriate under the circumstances; and, except with regard to any project for which the application has already been approved and which is not directly affected, further payments from such allotments may be withheld, in whole or in part, until there is no longer any failure to comply (or to carry out the assurance or plans and specifications or to provide adequate State funds, as the case may be) or, if such compliance (or other action) is impossible, until the State repays or arranges for the repayment of Federal moneys to which the recipient was not entitled. NONDUPLICATION OF GRANTS
SEC. 137. No grant may be made after January 1, 1964, under any provision of the Public Health Service Act, for any of the four fiscal ^s Stat. 682. years in the period beginning July 1, 1964, and ending June 30, 1968, "^^ ^°^ "°for construction of any facility for the mentally retarded described in this part, unless the Secretary determines that funds are not avail93-025 0-64-21
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