ALLcrimesfood&drugstaxestelecomcommercehealthconservationtransportationagricultureveteransbrowse all titles »
0

42 U.S.C. § 238l — Recovery

submitted 82 years ago by Pub. L. 88-164 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 565 words · no verdicts yet

in plain englishAI-generated · not legal advice

If a facility that got Community Mental Health Centers Act funding is later sold to an unqualified buyer or stops serving as a mental health center within 20 years, the government can recover money from whoever holds it. The Secretary can waive this right, and it never becomes a lien before a court judgment.

(a) Right of United States to recover base amount plus interest: If a facility that received funding under the former Community Mental Health Centers Act is, within 20 years after finishing construction, remodeling, or expansion, or after being acquired, either (1) sold or transferred to a buyer who either would not have been eligible to apply for such funding, or was rejected as a transferee by the state mental health agency or another entity the governor designates, or (2) stops being used by a community mental health center to provide comprehensive mental health services - then the United States can recover money from whoever transferred, received, or owns the facility. That amount is the "base amount" described in subsection (c)(1), plus any interest described in subsection (c)(2). (b) Notice of sale, transfer, or change: Anyone involved in such a sale, transfer, or change of use must give the Secretary written notice within 10 days after it happens, or within 30 days after October 22, 1985, whichever is later. (c) Base amount; interest: The base amount is calculated by taking the facility's current value - agreed by the parties, or decided by the local U.S. district court - for the part of the facility that was an approved project, and applying the same ratio that the federal share of funding had to the total cost of construction, expansion, or acquisition. The interest is calculated using a rate the Secretary sets, based on the average bond-equivalent rate on 91-day Treasury bills auctioned during the relevant period. That period starts 191 days after the sale, transfer, or change of use if notice was given on time, or 11 days after if it was not, and ends when the amount owed is actually collected. (d) Waiver of recovery rights: The Secretary may waive the government's right to recover, under conditions the Secretary sets by regulation, if the Secretary finds good cause for waiving them. (e) Pre-judgment lien: The government's right to recover under subsection (a) does not become a lien on the facility before a court judgment is entered.
the actual law source: uscode.house.gov ↗public domain
(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) plus the interest (if any) prescribed by subsection (c)(2).

(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), or the owner of a facility the use of which changes as described in subsection (a)(2), 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) 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) 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), 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), 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) 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) shall not, prior to judgment, constitute a lien on any facility.

Source credit: (July 1, 1944, ch. 373, title II, § 243, formerly title V, § 515, formerly Pub. L. 88–164, title II, § 225, as added Pub. L. 94–63, title III, § 303, July 29, 1975, 89 Stat. 326; amended Pub. L. 95–622, title I, § 110(c), Nov. 9, 1978, 92 Stat. 3420; renumbered title V, § 515, and amended Pub. L. 97–35, title IX, § 902(e)(2)(A), Aug. 13, 1981, 95 Stat. 560; renumbered title XXI, § 2115, Pub. L. 98–24, § 2(a)(1), Apr. 26, 1983, 97 Stat. 176; Pub. L. 99–129, title II, § 226(a), Oct. 22, 1985, 99 Stat. 546; renumbered title XXIII, § 2315, Pub. L. 99–660, title III, § 311(a), Nov. 14, 1986, 100 Stat. 3755; renumbered title XXV, § 2513, Pub. L. 100–607, title II, § 201(1), (3), Nov. 4, 1988, 102 Stat. 3062, 3063; renumbered title XXVI, § 2613, Pub. L. 100–690, title II, § 2620(a), Nov. 18, 1988, 102 Stat. 4244; renumbered title XXVII, § 2713, Pub. L. 101–381, title I, § 101(1), (2), Aug. 18, 1990, 104 Stat. 576; Pub. L. 102–229, title II, § 208, Dec. 12, 1991, 105 Stat. 1716; Pub. L. 102–239, § 1, Dec. 17, 1991, 105 Stat. 1912; renumbered title II, § 243, Pub. L. 103–43, title XX, § 2010(a)(1)–(3), June 10, 1993, 107 Stat. 213.)

history & why it existsrecord from the source credit
  • 1944Enacted · Pub. L. 88-164 · 89 Stat. 326
  • 1978Amended · Pub. L. 95-622 · 92 Stat. 3420
  • 1981Amended · Pub. L. 97-35 · 95 Stat. 560
  • 1983Amended · Pub. L. 98-24 · 97 Stat. 176
  • 1985Amended · Pub. L. 99-129 · 99 Stat. 546
  • 1986Amended · Pub. L. 99-660 · 100 Stat. 3755
  • 1988Amended · Pub. L. 100-607 · 102 Stat. 3062, 3063
  • 1988Amended · Pub. L. 100-690 · 102 Stat. 4244
  • 1990Amended · Pub. L. 101-381 · 104 Stat. 576
  • 1991Amended · Pub. L. 102-229 · 105 Stat. 1716
  • 1991Amended · Pub. L. 102-239 · 105 Stat. 1912
  • 1993Amended · Pub. L. 103-43 · 107 Stat. 213

A history note hasn’t been published yet. The record shows enactment by Pub. L. 88-164 on 1944-07-01.

all 0 arguments · sorted by: best

0/280

no arguments yet — make the first case