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From the U.S. House of Representatives Downloadable U.S. Code
[uscode.house.gov]
[Laws in effect as of January 5, 1999]

[CITE: 42USC238l]

 
TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 6A - PUBLIC HEALTH SERVICE
    SUBCHAPTER I - ADMINISTRATION AND MISCELLANEOUS PROVISIONS
    Part B - Miscellaneous Provisions
 
-HEAD-
    Sec. 238l. Recovery
 
-STATUTE-
    (a) Right of United States to recover base amount plus interest
      If any facility with respect to which funds have been paid under
    the Community Mental Health Centers Act (42 U.S.C. 2689 et seq.)
    (as such Act was in effect prior to October 1, 1981) is, at any
    time within twenty years after the completion of remodeling,
    construction, or expansion or after the date of its acquisition -
        (1) sold or transferred to any entity (A) which would not have
      been qualified to file an application under section 222 of such
      Act (42 U.S.C. 2689j) (as such section was in effect prior to
      October 1, 1981) or (B) which is disapproved as a transferee by
      the State mental health agency or by another entity designated by
      the chief executive officer of the State, or
        (2) ceases to be used by a community mental health center in
      the provision of comprehensive mental health services,
    the United States shall be entitled to recover from the transferor,
    transferee, or owner of the facility, the base amount prescribed by
    subsection (c)(1) of this section plus the interest (if any)
    prescribed by subsection (c)(2) of this section.
    (b) Notice of sale, transfer, or change
      The transferor and transferee of a facility that is sold or
    transferred as described in subsection (a)(1) of this section, or
    the owner of a facility the use of which changes as described in
    subsection (a)(2) of this section, shall provide the Secretary
    written notice of such sale, transfer, or change within 10 days
    after the date on which such sale, transfer, or cessation of use
    occurs or within 30 days after October 22, 1985, whichever is
    later.
    (c) Base amount; interest
      (1) The base amount that the United States is entitled to recover
    under subsection (a) of this section is the amount bearing the same
    ratio to the then value (as determined by the agreement of the
    parties or in an action brought in the district court of the United
    States for the district in which the facility is situated) of so
    much of the facility as constituted an approved project or projects
    as the amount of the Federal participation bore to the cost of the
    remodeling, construction, expansion, or acquisition of the project
    or projects.
      (2)(A) The interest that the United States is entitled to recover
    under subsection (a) of this section is the interest for the period
    (if any) described in subparagraph (B) at a rate (determined by the
    Secretary) based on the average of the bond equivalent rates of
    ninety-one-day Treasury bills auctioned during that period.
      (B) The period referred to in subparagraph (A) is the period
    beginning -
        (i) if notice is provided as prescribed by subsection (b) of
      this section, 191 days after the date on which such sale,
      transfer, or cessation of use occurs, or
        (ii) if notice is not provided as prescribed by subsection (b)
      of this section, 11 days after such sale, transfer, or cessation
      of use occurs,
    and ending on the date the amount the United States is entitled to
    recover is collected.
    (d) Waiver of recovery rights
      The Secretary may waive the recovery rights of the United States
    under subsection (a) of this section with respect to a facility
    (under such conditions as the Secretary may establish by
    regulation) if the Secretary determines that there is good cause
    for waiving such rights.
    (e) Pre-judgment lien
      The right of recovery of the United States under subsection (a)
    of this section shall not, prior to judgment, constitute a lien on
    any facility.
 
-SOURCE-
    (July 1, 1944, ch. 373, title II, Sec. 243, formerly title V, Sec.
    515, formerly Pub. L. 88-164, title II, Sec. 225, as added Pub. L.
    94-63, title III, Sec. 303, July 29, 1975, 89 Stat. 326; amended
    Pub. L. 95-622, title I, Sec. 110(c), Nov. 9, 1978, 92 Stat. 3420;
    renumbered title V, Sec. 515, and amended Pub. L. 97-35, title IX,
    Sec. 902(e)(2)(A), Aug. 13, 1981, 95 Stat. 560; renumbered title
    XXI, Sec. 2115, Pub. L. 98-24, Sec. 2(a)(1), Apr. 26, 1983, 97
    Stat. 176; Pub. L. 99-129, title II, Sec. 226(a), Oct. 22, 1985, 99
    Stat. 546; renumbered title XXIII, Sec. 2315, Pub. L. 99-660, title
    III, Sec. 311(a), Nov. 14, 1986, 100 Stat. 3755; renumbered title
    XXV, Sec. 2513, Pub. L. 100-607, title II, Sec. 201(1), (3), Nov.
    4, 1988, 102 Stat. 3062, 3063; renumbered title XXVI, Sec. 2613,
    Pub. L. 100-690, title II, Sec. 2620(a), Nov. 18, 1988, 102 Stat.
    4244; renumbered title XXVII, Sec. 2713, Pub. L. 101-381, title I,
    Sec. 101(1), (2), Aug. 18, 1990, 104 Stat. 576; Pub. L. 102-229,
    title II, Sec. 208, Dec. 12, 1991, 105 Stat. 1716; Pub. L. 102-239,
    Sec. 1, Dec. 17, 1991, 105 Stat. 1912; renumbered title II, Sec.
    243, Pub. L. 103-43, title XX, Sec. 2010(a)(1)-(3), June 10, 1993,
    107 Stat. 213.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Community Mental Health Centers Act, referred to in subsec.
    (a), is title II of Pub. L. 88-164, as added by Pub. L. 94-63,
    title III, Sec. 303, July 29, 1975, 89 Stat. 309, and amended,
    which was classified principally to subchapter III (Sec. 2689 et
    seq.) of chapter 33 of this title prior to its repeal by Pub. L.
    97-35, title IX, Sec. 902(e)(2)(B), Aug. 13, 1981, 95 Stat. 560.
    Section 222 of the Community Mental Health Centers Act was
    classified to section 2689j of this title prior to its repeal.
 
-COD-
                                CODIFICATION
      Section was classified to section 300aaa-12 of this title prior
    to renumbering by Pub. L. 103-43, to section 300cc-14 of this title
    prior to renumbering by Pub. L. 100-607, to section 300aa-14 of
    this title prior to renumbering by Pub. L. 99-660, to section 229d
    of this title prior to renumbering by Pub. L. 98-24, and to section
    2689m of this title prior to renumbering by Pub. L. 97-35.
 
-MISC3-
                                 AMENDMENTS
      1991 - Subsec. (d). Pub. L. 102-229 and Pub. L. 102-239 amended
    subsec. (d) identically, substituting ''subsection (a)'' for
    ''subsection (a)(2)''.
      1985 - Pub. L. 99-129 amended section generally.  Prior to
    amendment, section read as follows: ''If any facility of a
    community mental health center acquired, remodeled, constructed, or
    expanded with funds provided under the Community Mental Health
    Centers Act is, at any time within twenty years after the
    completion of such remodeling, construction, or expansion or after
    the date of its acquisition with such funds -
        ''(1) sold or transferred to any person or entity (A) which is
      not qualified to file an application under section 222 of the
      Community Mental Health Centers Act, or (B) which is not approved
      as a transferee by the State agency of the State in which such
      facility is located, or its successor; or
        ''(2) not used by a community mental health center in the
      provision of comprehensive mental health services, and the
      Secretary has not determined that there is good cause for
      termination of such use,
    the United States shall be entitled to recover from either the
    transferor or the transferee in the case of a sale or transfer or
    from the owner in the case of termination of use an amount bearing
    the same ratio to the then value (as determined by the agreement of
    the parties or by action brought in the United States district
    court for the district in which the center is situated) of so much
    of such facility or center as constituted an approved project or
    projects, as the amount of the Federal participation bore to the
    acquisition, remodeling, construction, or expansion cost of such
    project or projects.  Such right of recovery shall not constitute a
    lien upon such facility or center prior to judgment.''
      1981 - Pub. L. 97-35 substituted ''the Community Mental Health
    Centers Act'' for ''this subchapter'' and ''section 222 of the
    Community Mental Health Centers Act'' for ''section 2689j of this
    title''.
      1978 - Pub. L. 95-622 substituted ''this subchapter'' for ''this
    part''.
                      EFFECTIVE DATE OF 1985 AMENDMENT
      Section 226(b) of Pub. L. 99-129 provided that: ''In the case of
    any facility that was or is constructed, remodeled, expanded, or
    acquired on or before the date of enactment of this Act (Oct. 22,
    1985) or within 180 days after the date of enactment of this Act,
    the period described in clause (i) or (ii), as the case may be, of
    section 2115(c)(2)(B) (now 243(c)(2)(B)) of the Public Health
    Service Act (subsec. (c)(2)(B)(i), (ii) of this section) (as
    amended by subsection (a) of this section) shall begin no earlier
    than 181 days after the date of enactment of this Act.''
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Section 902(h) of Pub. L. 97-35 provided that: ''The amendments
    made by this section (amending this section and sections 201, 225a
    (now 238d), 229b (now 238j), 243, 246, 289k-1, 300d-4, 300d-6,
    300l-2, 300m, 300m-3, 9412, and 9511 of this title, repealing
    sections 247b-1, 247b-2, 255, 300d to 300d-3, 300d-5, 300d-7 to
    300d-9, 300d-21, 2689 to 2689l, 2689n to 2689p, 2689r to 2689aa,
    9411, 9421 to 9423, 9431 to 9438, 9451, 9452, 9461 to 9465, 9471 to
    9473, 9481, 9491 to 9493, 9502, 9512, 9521, and 9523 of this title,
    repealing provisions set out as notes under sections 246 and 2689
    of this title, and transferring section 2689m to section 229d (now
    238l) of this title) shall take effect October 1, 1981.''
                      EFFECTIVE DATE OF 1978 AMENDMENT
      Section 110(c) of Pub. L. 95-622 provided that the amendment made
    by that section is effective July 29, 1975.
                               EFFECTIVE DATE
      Section effective July 1, 1975, see section 608 of Pub. L. 94-63,
    set out as an Effective Date of 1975 Amendment note under section
    247b of this title.
     OTHER LEGAL RIGHTS OF UNITED STATES NOT ADVERSELY AFFECTED BY 1985
                                 AMENDMENT
      Section 226(c) of Pub. L. 99-129 provided that: ''The amendments
    made by subsection (a) of this section (amending this section)
    shall not adversely affect other legal rights of the United
    States.''
 

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