Hearings

the portion so specified and there have been no approvable

2 applications for such portion, the Surgeon General shall

promptly adjust the allotments of such State in accordance

with such request and shall notify the State agency, and

thereafter the allotments as so adjusted shall be deemed to be the State's allotments under such subsection (b).

"(f) In accordance with regulations, any State may file

with the Surgeon General a request that a specified portion of an allotment to it under this part for grants for construction of any type of facility, or for modernization of facilities, be added to the corresponding allotment of another State for the purpose of meeting a portion of the Federal share of the 13 cost of a project for the construction of a facility of that type in such other State, or for modernization of a facility in such

other State, as the case may be. If it is found by the 16 Surgeon General (or, in the case of a rehabilitation facility, 17 by the Surgeon General and the Secretary) that construction 18 or modernization of the facility with respect to which the 19 request is made would meet needs of the State making the 20 request and that use of the specified portion of such State's

222

allotment, as requested by it, would assist in carrying out

22 the purposes

of this title, such portion of such State's allot

23 ment shall be added to the corresponding allotment of the

other State, to be used for the purpose referred to above.

"GENERAL REGULATIONS

2 "SEC. 603. The Surgeon General, with the approval of 3 the Federal Hospital Council and the Secretary of Health, 4 Education, and Welfare, shall by general regulations pre

scribe

"(a) the general manner in which the State agency shall determine the priority of projects based on the relative need of different areas lacking adequate facilities of various types for which assistance is available under this part, giving special consideration

"(1) in the case of projects for the construction. of hospitals, to facilities serving rural communities 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; and

"(3) in the case of projects for modernization

of facilities, to facilities serving densely populated

areas;

"(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 existing facilities, for which aid under this part is available, are in need of modernization; and

(e) that the State plan shall provide for adequate hospitals, and other facilities for which aid under this part is available, for all persons residing in the State, and adequate hospitals (and such other facilities) to furnish needed services for persons unable to pay therefor. Such regulations may also require that before approval of an

application for a project is recommended by a State agency to the Surgeon General for approval under this part, assurance shall be received by the State from the

applicant that (1) the facility or portion thereof to be

constructed or modernized will be made available to all

22 persons residing in the territorial area of the applicant;

and (2) there will be made available in the facility or

portion thereof to be constructed or modernized a reason

"(B) the square of its allotment percentage,

2 bears to the sum of the corresponding products for all of the

3 States.

"(2) The allotment to any State under paragraph (1)

5 for any fiscal year which is less than

"(A) $25,000 for the Virgin Islands, American Samoa, or Guam and $50,000 for any other State, in the case of an allotment from appropriations under subparagraph (3) of section 601 (a),

"(B) $50,000 for the Virgin Islands, American

Samoa, or Guam and $100,000 for any other State in the case of an allotment from appropriations under sub

paragraph (2) of section 601 (a), or

"(C) $100,000 for the Virgin Islands, American Samoa, or Guam and $200,000 for any other State in the case of an allotment from appropriations under sub

paragraph (1) of section 601 (a) or under paragraph (b) of section 601,

19 shall be increased to that amount, the total of the increases 20 thereby required being derived by proportionately reducing 21 the allotment from appropriations under such subparagraph or paragraph to each of the remaining States under paragraph 23 (1), but with such adjustments as may be necessary to prevent the allotment of any of such remaining States from ap

1 propriations under such subparagraph or paragraph from 2 being thereby reduced to less than that amount.

3 "(3) An allotment of the Virgin Islands, American 4 Samoa, or Guam for any fiscal year may be increased as pro5 vided in paragraph (1) only to the extent it satisfies the Surgeon General, at such time prior to the beginning of such

year as the Surgeon General may designate, that such in8 crease will be used for payments under and in accordance 9 with the provisions of this part.

"(b) At the request of any State that the sum allotted

to it under subsection (a) from appropriations under section 601 (b) be divided into two parts, one part to be available

for grants for the construction of public or other nonprofit 14 hospitals and public health centers and the other part to be 15 available for grants for modernization of facilities referred to 16 in paragraphs (a) and (b) of section 601, the Surgeon 17 General shall make such division and the parts resulting therefrom shall, for purposes of this title, be regarded,

respectively, as the State's allotment for grants for the con20 struction of public or other nonprofit hospitals and public 21 health centers and the State's allotment for grants for

modernization of facilities referred to in paragraphs (a) and

(b) of section 601; except that not more than one-third of 24 the sum allotted to the State under subsection (a) of this

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