42 U.S.C. § 4577 — Grants and contracts for demonstration of new and more effective drug and alcohol abuse prevention, treatment, and rehabilitation programs

(a) Projects and programs. The Secretary, through the Institute, may give grants to public or nonprofit private organizations and may make contracts with public or private organizations or people. The grants and contracts may support: (1) demonstration and evaluation projects, giving high priority to prevention and early intervention in workplaces and schools, modified community living and work-care arrangements such as halfway houses, recovery homes, and supervised home care, and new or more effective programs to prevent, treat, and rehabilitate alcohol abuse and alcoholism; (2) projects shown to be valuable for coordinating all alcoholism treatment, training, prevention, and research resources in a health service area established under section 300 l 1; and (3) education and training for preventing and treating alcohol abuse and alcoholism and rehabilitating alcohol abusers and alcoholics. This training may include extra training so treatment workers can meet public or private accreditation or licensing requirements, or third-party payer requirements. (b) Community participation. Every project or program funded under this section must: (1) respond to the special needs of people with disabilities when they receive these services; (2) whenever possible, be based in the community; for prevention and treatment services, seek good-quality care in ordinary community care facilities and under health insurance plans; and include active participation by many public and nongovernmental agencies, organizations, institutions, and people; (3) if a substantial part of the served population has limited ability to speak English, use outreach workers fluent in the language spoken by most of those people, create practical arrangements to provide services in the most suitable language and cultural setting, and identify a full-time project worker fluent in both that language and English to guide those people and appropriate staff about cultural sensitivities and linguistic and cultural differences; and (4) when appropriate, use existing community resources, including community mental health centers. (c) Applications and review. (1) The Secretary must require coordination of all applications for projects and programs in a State. (2)(A) Each in-State applicant must send the State agency responsible for alcohol-abuse and alcoholism prevention, treatment, and rehabilitation a copy of its application when it files with the Secretary. The State agency has no more than 30 days after receiving it to send the Secretary a written evaluation. The evaluation must discuss the project’s relationship to other pending or approved projects and programs and to any State comprehensive plan for alcohol-abuse and alcoholism treatment and prevention. The State must give the applicant a copy. (B)(i) Except as provided in clause (ii), the Secretary must send each grant application to the National Advisory Council on Alcohol Abuse and Alcoholism. The Secretary may approve it only if the Council recommends approval. (ii) This review rule does not apply to a grant for a project or program whose payments will be less than $250,000 for each 12-month period, if the Secretary has already received and approved an application covering that project or program and a period that includes the 12 months. (3) The Secretary may approve a grant or contract, including earmarked financial assistance, only if the application substantially meets criteria established by the Secretary. The criteria must require that the applicant substantially administer or supervise the project; use administration methods needed for proper and efficient operation; and use fiscal controls and fund-accounting procedures needed for proper payment and accounting of Federal money. (4) The Secretary must encourage and give special consideration to applications serving underserved groups, including racial and ethnic minorities, Native Americans (including Native Hawaiians and Native American Pacific Islanders), young people, older people, women, people with disabilities, public inebriates, and alcoholics’ families. (5)(A) A grant to a State or a State-government entity requires authorization by the State’s chief executive officer. (B) A grant or contract may not last more than five years. (C)(i) The maximum amount is 100% of the first fiscal year’s cost, 80% of the second year’s cost, 70% of the third year’s cost, and 60% of the cost in each of the fourth and fifth years. (ii) A grant or contract is not treated as made under this section for a fiscal year ending before September 30, 1981. (6) An applicant seeking a grant or contract for prevention or treatment services must propose performance standards to measure, or a research protocol to determine, how effective the services are. (7) Funds under this section may also be used for programs and projects preventing, treating, or rehabilitating drug abuse, as well as alcohol abuse and alcoholism.