Title III, SEC. 3684. GRANTS FOR DEVELOPMENT OF PROJECTS. 
      (a) In General. The Secretary may make grants to State health agencies or 
    to local community partnerships to develop school health service sites. 

      (b) Use of Funds. A project for which a grant may be made under 
    subsection (a) may include but not be limited to the cost of the following: 

        (1) Planning for the provision of school health services. 

        (2) Recruitment, compensation, and training of health and 
      administrative staff. 

        (3) The development of agreements with regional and corporate alliance 
      health plans and the acquisition and development of equipment and 
      information services necessary to support information exchange between 
      school health service sites and health plans, health providers, and other 
      entities authorized to collect information under this Act. 

        (4) In the case of communities described in subsection (d)(2)(B), funds 
      to aid in the establishment of local community partnerships. 

        (5) Other activities necessary to assume operational status. 

      (c) Authority Regarding Qualified Community Health Groups. A project 
    under subsection (a) may require that, in order to receive services from 
    the project, an individual be enrolled in a health plan of a qualified 
    community health group (as defined in section 3421(a)). 

      (d) Application for Grant. 

        (1) In general. Applicants shall submit applications in a form and 
      manner prescribed by the Secretary. 

        (2) Applications by State health agencies. 

          (A) In the case of applicants that are State health agencies, the 
        application shall contain assurances that the State  health agency is 
        applying for funds 

            (i) on behalf of at least one local community partnership; and 

            (ii) on behalf of at least one other community identified by the 
          State as in need of the services funded under this part but without a 
          local community partnership. 

          (B) In the case of communities identified in applications submitted 
        by State health agencies that do not yet have local community 
        partnerships, the State shall describe the steps that will be taken to 
        aid the community in developing a local community partnership. 

          (C) A State applying on behalf of local community partnerships and 
        other communities may retain not more than 10 percent of grants awarded 
        under this part for administrative costs. 

      (e) Contents of Application. In order to receive a grant under this 
    section, an applicant must include in the application the following 
    information: 

        (1) An assessment of the need for school health services in the 
      communities to be served, using  the latest available health data and 
      health goals and objectives established by the Secretary. 

        (2) A description of how the applicant will design the proposed school 
      health services to reach the maximum number of school-aged children and 
      youth at risk for poor health outcome. 

        (3) An explanation of how the applicant will integrate its services 
      with those of other health and social service programs within the 
      community. 

        (4) An explanation of how the applicant will link its activities to the 
      regional and corporate alliance health plans serving the communities in 
      which the applicant's program is to be located. 

        (5) Evidence of linkages with regional and corporate health alliances 
      in whose areas the applicant's program is to be located. 

        (6) A description of a quality assurance program which complies with 
      standards that the Secretary may prescribe. 

      (f) Number of Grants. Not more than two planning grants may be made to a 
    single applicant.