PUBLIC LAW 94-63—JULY 29, 1975
89 STAT. 319
sources of non-Federal funds to pay the portion of such increased costs not to be paid from Federal funds. "(2) The Secretary may approve an application for a ^ a n t under section 203, 204, or 205 only if the application is recommended for Ante, pp. 312, approval by the National Advisory Mental Health Council, the appli- 314, 316. cation meets the requirements of paragraph (1), and, except as provided in paragraph (3), the Secretary— "(A) determines that the facilities and equipment of the applicant under the application meet such requirements as the Secretary may prescribe; "(B) determines that— " (i) the application contains or is supported by satisfactory assurances that the comprehensive mental health services (in the case of an application for a grant under section 203 or 205) or the consultation and education services (in the case of an application for a grant under section 204) to be provided by the applicant will constitute an addition to, or a significant improvement in quality (as determined in accordance with criteria of the Secretary) of, services that would otherwise be provided in the catchment area of the applicant; "(ii) the application contains or is supported by satisfactory assurances that Federal funds made available under section 203, 204, or 205, as the case may be, will (I) be used to supplement and, to the extent practical, increase the level of State, local, and other non-Federal funds, including thirdparty health insurance payments, that would in the absence of such Federal funds be made available for the applicant's comprehensive mental health services, and (II) in no event supplant such State, local, and other non-Federal funds; "(iii) in the case of an applicant which received a grant from appropriations for the preceding fiscal year, during the year for which the grant was made the applicant met, in accordance with the section under which such grant was made, the requirements of section 201 and complied with the assur- Ante, p. 309. ances which were contained in or supported the applicant's application for such grant; and "(iv) in the case of an application for a grant the amount of which is or may be determined under section 203(c)(2)(B) or 204(b)(3)(B) or under a provision of a repealed section of this title referred to in section 203(e) which authorizes an increase in the ceiling on the amount of a grant to support services to persons in areas designated by the Secretary as urban or rural poverty areas, the application contains or is supported by assurances satisfactory to the Secretary that the services of the applicant will, to the extent feasible, be used by a significant number of persons residing in an area designated by the Secretary as an urban or rural poverty area and requiring such services. "(3) In the case of an application— "(A) for the first grant under section 203(a) for an entity described in section 203(a)(1)(B), or "(B) for the first grant the authority for which is provided by section 203(e), the Secretary may approve such application without regard to the assurances required by the second sentence of paragraph (1) of this subsection and without regard to the determinations required of the Secretary under paragraph (2) of this subsection if the application
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