§ 300ff–31a.
(b)
Supplemental grants; cancellation of unobligated balance of grant award
Effective for fiscal year 2007 and subsequent fiscal years, if a grant award made to a State for a fiscal year pursuant to
section 300ff–28(a)(2)(F)(ii) of this title, or under section 300ff–29a or 300ff–30 of this title, has an unobligated balance as of the end of the grant year for the award—
(1)
the Secretary shall cancel that unobligated balance of the award, and shall require the State to return any amounts from such balance that have been disbursed to the State; and
(2)
the funds involved shall be made available by the Secretary as additional amounts for grants pursuant to
section 300ff–29a of this title for the first fiscal year beginning after the fiscal year in which the Secretary obtains the information necessary for determining that the balance is required under paragraph (1) to be canceled, except that the availability of the funds for such grants is subject to
section 300ff–28(a)(2)(H) of this title as applied for such year.
(c)
Formula grants; cancellation of unobligated balance of grant award; waiver permitting carryover
(1)
In general
Effective for fiscal year 2007 and subsequent fiscal years, if a grant award made to a State for a fiscal year pursuant to section 300ff–28(a)(1) or 300ff–28(a)(2)(F)(i) of this title has an unobligated balance as of the end of the grant year for the award, the Secretary shall cancel that unobligated balance of the award, and shall require the State to return any amounts from such balance that have been disbursed to the State, unless—
(A)
before the end of the grant year, the State submits to the Secretary a written application for a waiver of the cancellation, which application includes a description of the purposes for which the State intends to expend the funds involved; and
(B)
the Secretary approves the waiver.
(2)
Expenditure by end of carryover year
With respect to a waiver under paragraph (1) that is approved for a balance that is unobligated as of the end of a grant year for an award:
(A)
The unobligated funds are available for expenditure by the State involved for the one-year period beginning upon the expiration of the grant year (referred to in this section as the “carryover year”).
(B)
If the funds are not expended by the end of the carryover year, the Secretary shall cancel that unexpended balance of the award, and shall require the State to return any amounts from such balance that have been disbursed to the State.
(3)
Use of cancelled balances
(4)
Corresponding reduction in future grant
(A)
In general
In the case of a State for which a balance from a grant award made pursuant to section 300ff–28(a)(1) or 300ff–28(a)(2)(F)(i) of this title is unobligated as of the end of the grant year for the award—
(i)
the Secretary shall reduce, by the same amount as such unobligated balance (less any amount of such balance that is the subject of a waiver of cancellation under paragraph (1)), the amount of the grant under such section for the first fiscal year beginning after the fiscal year in which the Secretary obtains the information necessary for determining that such balance was unobligated as of the end of the grant year (which requirement for a reduction applies without regard to whether a waiver under paragraph (1) has been approved with respect to such balance); and
except that this subparagraph does not apply to the State if the amount of the unobligated balance was 5 percent or less.
(B)
Relation to increases in grant
(d)
Treatment of drug rebates
For purposes of this section, funds that are drug rebates referred to in
section 300ff–26(g) of this title may not be considered part of any grant award referred to in subsection (a). If an expenditure of ADAP rebate funds would trigger a penalty under this section or a higher penalty than would otherwise have applied, the State may request that for purposes of this section, the Secretary deem the State’s unobligated balance to be reduced by the amount of rebate funds in the proposed expenditure. Notwithstanding 300ff–28(a)(2)(F)
1
So in original. Probably should be preceded by “section”.
of this title, any unobligated amount under
section 300ff–28(a)(2)(F)(ii)(V) of this title that is returned to the Secretary for reallocation shall be used by the Secretary for—
(1)
the ADAP supplemental program if the Secretary determines appropriate; or
([July 1, 1944, ch. 373], title XXVI, § 2622, as added and amended [Pub. L. 109–415, title II, § 207], title VII, § 703, Dec. 19, 2006, [120 Stat. 2799], 2820; [Pub. L. 111–87], §§ 2(a)(1), (3)(A), 5(c)(2)–(4), 8(b)(1)(B), (2)(B), (c)(2), 10(a), Oct. 30, 2009, [123 Stat. 2885], 2891, 2894, 2895.)