SECTION 1. SHORT TITLE.
    This Act may be cited as the ``State Offices of Rural Health 
Reauthorization Act of 2018''.
SEC. 2. STATE OFFICES OF RURAL HEALTH.
    Section 338J of the Public Health Service Act (42 U.S.C. 254r) is 
amended to read as follows:
``SEC. 338J. GRANTS TO STATE OFFICES OF RURAL HEALTH.
    ``(a) In General.--The Secretary, acting through the Director of 
the Federal Office of Rural Health Policy (established under section 
711 of the Social Security Act), shall make grants to each State Office 
of Rural Health for the purpose of improving health care in rural 
areas.
    ``(b) Requirement of Matching Funds.--
        ``(1) In general.--Subject to paragraph (2), the Secretary may 
    not make a grant under subsection (a) unless the State office of 
    rural health involved agrees, with respect to the costs to be 
    incurred in carrying out the purpose described in such subsection, 
    to provide non-Federal contributions toward such costs in an amount 
    equal to $3 for each $1 of Federal funds provided in the grant.
        ``(2) Waiver or reduction.--The Secretary may waive or reduce 
    the non-Federal contribution if the Secretary determines that 
    requiring matching funds would limit the State office of rural 
    health's ability to carry out the purpose described in subsection 
    (a).
        ``(3) Determination of amount of non-federal contribution.--
    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.
    ``(c) Certain Required Activities.--Recipients of a grant under 
subsection (a) shall use the grant funds for purposes of--
        ``(1) maintaining within the State office of rural health a 
    clearinghouse for collecting and disseminating information on--
            ``(A) rural health care issues;
            ``(B) research findings relating to rural health care; and
            ``(C) innovative approaches to the delivery of health care 
        in rural areas;
        ``(2) coordinating the activities carried out in the State that 
    relate to rural health care, including providing coordination for 
    the purpose of avoiding redundancy in such activities; and
        ``(3) identifying Federal and State programs regarding rural 
    health, and providing technical assistance to public and nonprofit 
    private entities regarding participation in such programs.
    ``(d) Requirement Regarding Annual Budget for Office.--The 
Secretary may not make a grant under subsection (a) unless the State 
involved agrees that, for any fiscal year for which the State office of 
rural health receives such a grant, the office operated pursuant to 
subsection (a) of this section will be provided with an annual budget 
of not less than $150,000.
    ``(e) Certain Uses of Funds.--
        ``(1) Restrictions.--The Secretary may not make a grant under 
    subsection (a) unless the State office of rural health involved 
    agrees that the grant will not be expended--
            ``(A) to provide health care (including providing cash 
        payments regarding such care);
            ``(B) to conduct activities for which Federal funds are 
        expended--
                ``(i) within the State to provide technical and other 
            nonfinancial assistance under section 330A(f);
                ``(ii) under a memorandum of agreement entered into 
            with the State office of rural health under section 
            330A(h); or
                ``(iii) under a grant under section 338I;
            ``(C) to purchase medical equipment, to purchase 
        ambulances, aircraft, or other vehicles, or to purchase major 
        communications equipment;
            ``(D) to purchase or improve real property; or
            ``(E) to carry out any activity regarding a certificate of 
        need.
        ``(2) Authorities.--Activities for which a State office of 
    rural health may expend a grant under subsection (a) include--
            ``(A) paying the costs of maintaining an office of rural 
        health for purposes of subsection (a);
            ``(B) subject to paragraph (1)(B)(iii), paying the costs of 
        any activity carried out with respect to recruiting and 
        retaining health professionals to serve in rural areas of the 
        State; and
            ``(C) providing grants and contracts to public and 
        nonprofit private entities to carry out activities authorized 
        in this section.
        ``(3) Limit on indirect costs.--The Secretary may impose a 
    limit of no more than 15 percent on indirect costs claimed by the 
    recipient of the grant.
    ``(f) Reports.--The Secretary may not make a grant under subsection 
(a) unless the State office of rural health involved agrees--
        ``(1) to submit to the Secretary reports or performance data 
    containing such information as the Secretary may require regarding 
    activities carried out under this section; and
        ``(2) to submit such a report or performance data not later 
    than September 30 of each fiscal year immediately following any 
    fiscal year for which the State office of rural health has received 
    such a grant.
    ``(g) 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 carry out 
such subsection.
    ``(h) Noncompliance.--The Secretary may not make payments under 
subsection (a) to a State office of rural health for any fiscal year 
subsequent to the first fiscal year of such payments unless the 
Secretary determines that, for the immediately preceding fiscal year, 
the State office of rural health has complied with each of the 
agreements made by the State office of rural health under this section.
    ``(i) Authorization of Appropriations.--
        ``(1) In general.--For the purpose of making grants under 
    subsection (a), there are authorized to be appropriated $12,500,000 
    for each of fiscal years 2018 through 2022.
        ``(2) Availability.--Amounts appropriated under paragraph (1) 
    shall remain available until expended.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
State Offices of Rural Health Reauthorization Act of 2018 This bill amends the Public Health Service Act to reauthorize through FY2022 and revise the grant program for state offices of rural health, including to require the Department of Health and Human Services (HHS) to make the grants, thus removing HHS's discretion to make them.
State Offices of Rural Health Reauthorization Act of 2018