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(1) Unless an explicit and specific federal waiver is obtained, the following costs are <br />unallowable under any contract which includes federal alcohol, drug abuse and mental <br />health services block grant funds: <br />(a) Costs of hospital inpatient services; <br />(b) Cash payments to departmental clients; <br />(c) Cost of purchase or permanent improvement of land or facilities, other than minor <br />remodeling; <br />(d) Cost of purchase of major medical equipment, with an acquisition cost in excess of <br />$5,000; <br />(e) Costs used as cost-sharing or matching for other federal funds requiring nonfederal <br />matching funds; <br />(f) Costs of financial assistance to any entity which is not either public or nonprofit; or <br />(g) Costs that in effect supplant or otherwise reduce the amount of state or local funds that <br />would have been used for alcoholism, drug abuse or mental health programs in the <br />absence of federal block grant funding. For the purposes of this section, supplantation <br />shall be deemed to occur if the amount of state or local funds used is less than the <br />amount expended during federal fiscal year ending September 30, 1981. <br />(h) Carry out any program of distributing sterile needles for the hypodermic injection of any <br />illegal drug or distributing bleach for the purpose of cleansing needles for such <br />hypodermic injection. <br />(i) Carry out any testing for the etiologic agent for acquired immune deficiency syndrome <br />(AIDS), unless such testing is accompanied by appropriate pre-test counseling and <br />appropriate post-test counseling. <br />(j) EXCESS SALARY: By law, none of the funds awarded can be used to pay salary of an <br />individual at a rate in excess of the Executive Level I, which is $181,100 annually. <br />(k) Youth tobacco enforcement. <br />(2) The use of federal funds to influence or attempt to influence the award of, or amendment <br />to, any federal contract, grant, loan, or cooperative agreement is prohibited. <br />(a) The use of funds other than federal funds for such purposes shall require the contractor <br />to submit all required federal and state forms disclosing such lobbying activity. <br />(b) The contractor must include this language in any contracts resulting from this <br />agreement and that all subrecipients understand and agree to these terms. <br />(3) Costs that are unallowable under subsection (1) of this section are allowable using state <br />funds if all of the following conditions are met: <br />Washington State <br />Health Care Authority Page 78 of 90 HCA Contract No. K3924