88 STAT. ]
PUBLIC LAW 93-641-JAN. 4, 1975
or is performing the functions prescribed by section 1513. I n considering such applications, the Secretary shall give priority to an application which has been recommended for approval by (A) each entity which has developed a plan referred to in section 314(b) for all or part of the health service area with respect to which the application was submitted, and (B) each regional medical program established in such area under title IX. "(3) An agreement under this subsection for the designation of a health systems agency may be renewed by the Secretary for a period not to exceed twelve months if upon review (as provided in section 1535) of the agency's operation and performance of its functions, he determines that it has fulfilled, in a satisfactory manner, the functions of a health systems agency prescribed by section 1513 and continues to meet the requirements of section 1512(b). " (d) If a designation under subsection (b) or (c) of a health systems agency for a health services area is terminated before the date prescribed for its expiration, the Secretary shall, upon application and in accordance with subsection (b) or (c) (as the Secretary determines appropriate), enter into a designation agreement with another entity to be the health systems agency for such area. aP L A N N I N G
2241 Priority. "^ use 240. ^ 42 USC 299. Renewal. Post,
p. 2256.
GRANTS
"SEC. 1516. (a) The Secretary shall make in each fiscal year a grant 42 USC 300Z-5. to each health systems agency with which there is in effect a designation agreement under subsection (b) or (c) of section 1515. A grant under this subsection shall be made on such conditions as the Secretary determines is appropriate, shall be used by a health systems agency for compensation of agency personnel, collection of data, planning, and the performance of the functions of the agency, and shall be available for obligation for a period not to exceed the period for which its designation agreement is entered into or renewed (as the case may be). Use of fund:A health systems agency may use funds under a grant under this subrestriction. section to make payments under contracts with other entities to assist the health systems agency in the performance of its functions; but it shall not use funds under such a grant to make payments under a grant or contract with another entity for the development or delivery of health services or resources. "(b)(1) The amount of any grant under subsection (a) to a health systems agency designated under section 1515(b) shall be determined by the Secretary. The amount of any grant under subsection (a) to any health systems agency designated under section 1515(c) shall be the lesser of— " (A) the product of $0.50 and the population of the health service area for which the agency is designated, or " (B) $3,750,000, unless the agency would receive a greater amount under paragraph (2) or (3). "(2)(A) If the application of a health systems agency for such a non^'pedera" funds grant contains assurances satisfactory to the Secretary that the agency will expend or obligate in the period in which such grant will be available for obligation non-Federal funds meeting the requirements of subparagraph (B) for the purposes for which such grant may be made, the amount of such grant shall be the sum of— " (i) the amount determined under paragraph (1), and "(ii) the lesser of (I) the amount of such non-Federal funds with respect to which the assurances were made, or ( II) the product of $0.25 and the population of the health service area for which the agency is designated.
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