PUBLIC LAW 102-321—JULY 10, 1992 106 STAT. 411 Federal contributions under subsection (c) in a greater amount than the amount required under such subsection for the appKcable fiscal year, "(c) REQUIREMENT OF MATCHING FUNDS. — "(1) IN GENERAL.— Subject to paragraph (3), the Director may not make a grsint under subsection (a) unless the State agrees, with respect to the costs of the program to be carried out by the State pursuant to such subsection, to make available (directly or through donations from public or private entities) non-Federal contributions toward such costs in an amount that is— "(A) for the first fiscal year for which the State receives such a grant, not less than $1 for each $9 of Federal funds provided in the grant; "(B) for any second or third such fiscal year, not less than $1 for each $9 of Federal funds provided in the grant; and "(C) for any subsequent such fiscal year, not less than $1 for each $3 of Federal funds provided in the grant. "(2) DETERMINATION OF AMOUNT OF NON-FEDERAL CON- TRIBUTION. —Non-Federal contributions required in paragraph (1) may be in cash or in kind, fairly evaluated, including plant, equipment, or services. Amounts provided by the Federal Government, or services assisted or subsidized to any significant extent by the Federal Government, may not be included in determining the amount of such non-Federal contributions. "(3) WAIVER. — The Director may waive the requirement established in paragraph (1) if the Director determines that extraordinary economic conditions in the State justify the waiver. "(d) LIMITATION REGARDING DIRECT TREATMENT SERVICES. —The Director may not make a grant under subsection (a) unless the State involved agrees that the grant will be expended only for the direct provision of treatment services. The preceding sentence may not be construed to authorize the expenditure of such a grant for the planning or evaluation of treatment services. "(e) REQUIREMENT OF APPLICATION. —The Secretary may not make a grant under subsection (a) unless an application for the grant is submitted to the Secretary and the application is in such form, is made in such manner, and contains such agreements, assurances, and information as the Secretary determines to be necessary to cany out this section. "(f) DURATION OF GRANT. — The period during which payments are made to a State from a grant under subsection (a) may not exceed 5 years. The provision of such payments shall be subject to annual approval by the Director of the payments and subject to the availability of appropriations for the fiscal year involved to make the pa5anents. "(g) MAINTENANCE OF EFFORT.— The Director may not make a grant under subsection (a) unless the State involved agrees to maintain State expenditures for treatment services at a level that is not less than the average level of such expenditures maintained by the State for the 2-year period preceding the first fiscal year for which the State receives such a grant. "(h) RESTRICTIONS ON USE OF GRANT. —The Director may not make a grant under subsection (a) unless the State involved agrees that the grant will not be expended— "(1) to provide inpatient hospital services;
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