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1 sums allotted to it for such purpose for each of such next two

2 fiscal years.

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"(e) (1) Upon the request of any State that

"(A) a specified portion of any allotment of such

State under paragraph (1) of subsection (a), other than an allotment for grants for the construction of public or other nonprofit rehabilitation facilities, be added to another allotment of such State under para

graph (1) or (2) of such subsection, other than an

allotment for grants for the construction of public or

other nonprofit hospitals and public health centers, or "(B) a specified portion of an allotment of such State under paragraph (2) of subsection (a) be added

to an allotment of such State under paragraph (1) of such subsection,

16 and upon simultaneous certification to the Surgeon General 17 by the State agency in such State to the effect that"(C) it has afforded a reasonable opportunity to

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make applications for the portion so specified and there have been no approvable applications for such portion,

or

"(D) in the case of a request to transfer a portion

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of an allotment under paragraph (1) of subsection (a)

for grants for the construction of public or other non

profit hospitals and public health centers, use of such

portion as requested by such State agency will better carry out the purposes of this title,

6 the Surgeon General shall promptly (but after application 7 of subsection (b)) adjust the allotments of such State in 8 accordance with such request and shall notify the State 9 agency.

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"(2) In addition to the transfer of portions of allot11 ments under paragraph (1), the Surgeon General, upon the 12 request of any State that a specified portion of an allotment 13 of such State under paragraph (2) of subsection (a) be 14 added to an allotment of such State under paragraph (1) of 15 such subsection for grants for the construction of public or 16 other nonprofit hospitals and public health centers and upon 17 simultaneous certification to him by the State agency in such 18 State to the effect that the need for new public or other non19 profit hospitals and public health centers is substantially 20 greater than the need for modernization of facilities referred 21 to in paragraph (a) or (b) of section 601, shall promptly 22 (but after application of subsection (b) of this section) 23 adjust the allotments of such State in accordance with such 24 request and shall notify the State agency; except that not 25 more than the following portions of allotments of a State

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1 under paragraph (2) of subsection (a) may be so added

2 (under this paragraph) to allotments of such State under

3 paragraph (1) of such subsection:

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"(A) in the case of an allotment under paragraph

5 (2) of subsection (a) for the fiscal year ending June

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30, 1966, one-half of such allotment;

"(B) in the case of an allotment thereunder for the fiscal year ending June 30, 1967, three-sevenths of

such allotment;

"(C) in the case of an allotment thereunder for the fiscal year ending June 30, 1968, two-fifths of such allotment; and

"(D) in the case of an allotment thereunder for the fiscal year ending June 30, 1969, five-elevenths of such allotment.

"(3) After adjustment of allotments of any State as 17 provided in paragraph (1) or (2) of this subsection, the 18 allotments as so adjusted shall be deemed to be the State's 19 allotments under this section.

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"(f) In accordance with regulations, any State may file 21 with the Surgeon General a request that a specified portion 22 of an allotment to it under this part for grants for construction 23 of any type of facility, or for modernization of facilities, be 24 added to the corresponding allotment of another State for the 25 purpose of meeting a portion of the Federal share of the cost

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of a project for the construction of a facility of that type in

2 such other State, or for modernization of a facility in such

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other State, as the case may be. If it is found by the Surgeon

4 General (or, in the case of a rehabilitation facility, by the

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Surgeon General and the Secretary) that construction or

modernization of the facility with respect to which the re

quest is made would meet needs of the State making the re8 quest and that use of the specified portion of such State's

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allotment, as requested by it, would assist in carrying out 10 the purposes of this title, such portion of such State's allot

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ment shall be added to the corresponding allotment of the 12 other State, to be used for the purpose referred to above.

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"GENERAL REGULATIONS

"SEC. 603. The Surgeon General, with the approval of 15 the Federal Hospital Council and the Secretary of Health, 16 Education, and Welfare, shall by general regulations pre17 scribe

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"(a) the general manner in which the State agency shall determine the priority of projects based on the

20 relative need of different areas lacking adequate fa

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cilities of various types for which assistance is available

under this part, giving special consideration

"(1) in the case of projects for the construc

tion of hospitals, to facilities serving rural com

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munities and areas with relatively small financial

resources;

"(2) in the case of projects for the construction of rehabilitation facilities, to facilities operated in connection with a university teaching hospital

which will provide an integrated program of medical, psychological, social, and vocational evaluation and services under competent supervision;

"(3) in the case of projects for modernization of facilities, to facilities serving densely populated areas; and

"(4) to the extent deemed feasible by the State agency, to hospital facilities which will include new or expanded facilities for nurse training;

"(b) general standards of construction and equip

ment for facilities of different classes and in different types of location, for which assistance is available under

this part;

"(c) criteria for determining needs for general hospital and long-term care beds, and needs for hospitals and other facilities for which aid under this part is.

available, and for developing plans for the distribution of such beds and facilities;

"(d) criteria for determining the extent to which

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