42 U.S.C. § 704 : US Code - Section 704: Use of allotment funds

Search 42 U.S.C. § 704 : US Code - Section 704: Use of allotment funds

(a) Covered services
Except as otherwise provided under this section, a State may use
amounts paid to it under section 703 of this title for the
provision of health services and related activities (including
planning, administration, education, and evaluation and including
payment of salaries and other related expenses of National Health
Service Corps personnel) consistent with its application
transmitted under section 705(a) of this title.
(b) Restrictions
Amounts described in subsection (a) of this section may not be
used for -
(1) inpatient services, other than inpatient services provided
to children with special health care needs or to high-risk
pregnant women and infants and such other inpatient services as
the Secretary may approve;
(2) cash payments to intended recipients of health services;
(3) the purchase or improvement of land, the purchase,
construction, or permanent improvement (other than minor
remodeling) of any building or other facility, or the purchase of
major medical equipment;
(4) satisfying any requirement for the expenditure of non-
Federal funds as a condition for the receipt of Federal funds;
(5) providing funds for research or training to any entity
other than a public or nonprofit private entity; or
(6) payment for any item or service (other than an emergency
item or service) furnished -
(A) by an individual or entity during the period when such
individual or entity is excluded under this subchapter or
subchapter XVIII, XIX, or XX of this chapter pursuant to
section 1320a-7, 1320a-7a, 1320c-5, or 1395u(j)(2) of this
title, or
(B) at the medical direction or on the prescription of a
physician during the period when the physician is excluded
under this subchapter or subchapter XVIII, XIX, or XX of this
chapter pursuant to section 1320a-7, 1320a-7a, 1320c-5, or
1395u(j)(2) of this title and when the person furnishing such
item or service knew or had reason to know of the exclusion
(after a reasonable time period after reasonable notice has
been furnished to the person).
The Secretary may waive the limitation contained in paragraph (3)
upon the request of a State if the Secretary finds that there are
extraordinary circumstances to justify the waiver and that granting
the waiver will assist in carrying out this subchapter.
(c) Use of portion of funds
A State may use a portion of the amounts described in subsection
(a) of this section for the purpose of purchasing technical
assistance from public or private entities if the State determines
that such assistance is required in developing, implementing, and
administering programs funded under this subchapter.
(d) Limitation on use of funds for administrative costs
Of the amounts paid to a State under section 703 of this title
from an allotment for a fiscal year under section 702(c) of this
title, not more than 10 percent may be used for administering the
funds paid under such section.