23 1 less than the total amount expended for such purposes from 2 such sources during the fiscal year ending June 30, 1964. 3 4 “WITHHOLDING OF PAYMENTS "SEC. 607. Whenever the Surgeon General, after reason5 able notice and opportunity for hearing to the State agency 6 designated as provided in section 604 (a) (1), finds— 7 8 9 10 11 12 13 14 15 16 17 18 "(a) that the State agency is not complying substantially with the provisions required by section 604 to be included in its State plan; or "(b) that any assurance required to be given in an application filed under section 605 is not being or cannot be carried out; or "(c) that there is a substantial failure to carry out plans and specifications approved by the Surgeon General under section 605; or "(d) that adequate State funds are not being pro vided annually for the direct administration of the State plan, the Surgeon General may forthwith notify the State agency 20 that "(e) no further payments will be made to the State under this part, or "(f) no further payments will be made from the allotments of such State from appropriations under any one or more subparagraphs or paragraphs of section 24 1. 2 3 4 5 601, or for any project or projects, designated by the Surgeon General as being affected by the action or in action referred to in paragraph (a), (b), (c), or (d) of this section, as the Surgeon General may determine to be appropriate 6 under the circumstances; and, except with regard to any 7 project for which the application has already been approved 8 and which is not directly affected, further payments may be 9 withheld, in whole or in part, until there is no longer any failure to comply (or carry out the assurance or plans and specifications or provide adequate State funds, as the case 10 11 12 may be) or, if such compliance (or other action) is im13 possible, until the State repays or arranges for the repayment of Federal moneys to which the recipient was not 15 entitled. 14 16 17 18 "JUDICIAL REVIEW "SEC. 608. (a) If the Surgeon General refuses to ap prove any application for a project submitted under section 19 605 or section 610, the State agency through which such ap 20 plication was submitted, or if any State is dissatisfied with his 21 action under section 607 such State, may appeal to the 22 United States court of appeals for the circuit in which such 23 State is located, by filing a petition with such court within sixty days after such action. A copy of the petition shall be 24 25 1 forthwith transmitted by the clerk of the court to the Surgeon 2 General, or any officer designated by him for that purpose. 3 The Surgeon General shall thereupon file in the court the 4 record of the proceedings on which he based his action, as 5 provided in section 2112 of title 28, United States Code. 6 Upon the filing of such petition, the court shall have juris7 diction to affirm the action of the Surgeon General or to set 8 it aside, in whole or in part, temporarily or permanently, 9 but until the filing of the record, the Surgeon General may 10 modify or set aside his order. 11 15 "(b) The findings of the Surgeon General as to the facts, 12 if supported by substantial evidence, shall be conclusive, 13 but the court, for good cause shown, may remand the case to 14 the Surgeon General to take further evidence, and the Surgeon General may thereupon make new or modified findings 16 of fact and may modify his previous action, and shall file in 17 the court the record of the further proceedings. Such new or 18 modified findings of fact shall likewise be conclusive if supported by substantial evidence. 19 20 "(c) The judgment of the court affirming or setting 21 aside, in whole or in part, any action of the Surgeon General 22 shall be final, subject to review by the Supreme Court of the 23 United States upon certiorari or certification as provided in 26 1 section 1254 of title 28, United States Code. The com 2 mencement of proceedings under this section shall not, un 3 less so specifically ordered by the court, operate as a stay of 4 the Surgeon General's action. 5 6 "RECOVERY "SEC. 609. If any facility with respect to which funds 7 have been paid under section 606 shall, at any time within 8 twenty years after the completion of construction 9 10 11 12 13 14 15 16 17 18 19 20 "(a) be sold or transferred to any person, agency, or organization (1) which is not qualified to file an application under section 605, or (2) which is not approved as a transferee by the State agency designated pursuant to section 604, or its successor, or "(b) cease to be a public health center or a public or other nonprofit hospital, diagnostic or treatment center, facility for long-term care, or rehabilitation facility, unless the Surgeon General determines, in accordance with regulations, that there is good cause for releasing the applicant or other owner from this obligation, 21 the United States shall be entitled to recover from either the 22 transferor or the transferee (or, in the case of a facility which 23 has ceased to be public or nonprofit, from the owners there24 of) an amount bearing the same ratio to the then value (as determined by the agreement of the parties or by action 27 1 brought in the district court of the United States for the 2 district in which the facility is situated) of so much of the 3 facility as constituted an approved project or projects, as the 4 amount of the Federal participation bore to the cost of the 5 construction or modernization under such project or projects. 6 Such right of recovery shall not constitute a lien upon said 7 facility prior to judgment. 8 "LOANS FOR 9 10 HOSPITALS AND OTHER MEDICAL FACILITIES "SEC. 610. (a) In order further to assist the States in 11 carrying out the purposes of this title, the Surgeon General is 12 authorized to make a loan of funds to the applicant for any 13 project for construction or modernization which meets all of 14 the conditions specified for a grant under this part. 15 "(b) Except as provided in this section, an application 16 for a loan with respect to any project under this part shall be 17 submitted, and shall be approved by the Surgeon General, in 18 accordance with the same procedures and subject to the same 19 limitations and conditions as would be applicable to the mak20 ing of a grant under this part for such project. Any such 21 application may be approved in any fiscal year only if suffi22 cient funds are available from the allotment for the type of 23 project involved. All loans under this section shall be paid 24 directly to the applicant. "(c) (1) The amount of a loan under this part shall not |