H. R. 5861
IN THE HOUSE OF REPRESENTATIVES
July 26, 2010
Ms. Kilroy (for herself, Mr. Ryan of Ohio, and Mr. Meek of Florida) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To amend title XVIII of the Social Security Act to establish a cancer center construction loan program.
This Act may be cited as the
Cancer Centers Assistance for Renovations and Expansion Act
Cancer center construction loan program
The Social Security Act is amended by inserting after section 1897 the following new section:
Cancer center construction loan program
The Secretary shall establish a loan program that provides loans to qualifying cancer centers (as defined in subsection (b)) for payment of the capital costs of projects for the improvement of research, prevention, or patient care infrastructure.
Qualifying cancer center and other definitions
In this section:
The term qualifying cancer center means an entity that—
is designated as a cancer center or comprehensive cancer center by the National Cancer Institute; or
is both a National Cancer Institute-designated comprehensive cancer center and a cancer hospital described in section 1886(d)(1)(B)(v).
The term project for the improvement of research, prevention, or patient care infrastructure means—
the expansion, remodeling, renovating, or altering of an existing clinical, prevention, or research facility; or
the construction of a new clinical, prevention, or research facility.
The term intended use means the purposes for which the infrastructure improvements were made.
The term shovel ready means, with respect to a project, that construction of the project—
has begun as of the date of the enactment of this section; or
is ready (subject only to the receipt of permits) to begin, and will begin, not later than 90 days after such date.
Application; qualifications; terms of loans
No loan may be provided under this section to a qualifying cancer center except pursuant to an application that is submitted and approved in a time, manner, and form specified by the Secretary.
A loan may not be provided under this section for a project for a qualifying cancer center unless the applicant provides assurances satisfactory to the Secretary that—
the project is a project for the improvement of research, prevention, or patient care infrastructure of the center;
the project is shovel ready;
the applicant will use the facility improved or resulting from the project for its intended use for a period of at least 20 years after completion of the project and has sufficient funds available to demonstrate effective use of such facility for its intended use;
sufficient funds will be available to meet the non-Federal share of the cost of the infrastructure improvement; and
the proposed infrastructure improvement will expand the applicant’s capacity for research, prevention or patient care, or is necessary to improve or maintain the quality of the applicant’s research, prevention, or patient care.
No further requirements
The Secretary shall not promulgate any further requirements or restrictions on a qualifying cancer center to obtain assistance under this section other than those specified in this section.
Terms of loans
Loans under this section shall be made consistent with the requirements of this section.
The interest rate for loans provided under this section shall be at lowest of the following (as published or determined, as the case may be, as of the date of the enactment of this section):
The bank prime loan rate posted by a majority of the largest 25 United States chartered commercial banks, as determined based on assets in domestic offices and as published by the Board of Governors of the Federal Reserve System.
Minimum Federal interest rate
The minimum annual rate of interest determined under section 3717(a) of title 31, United States Code.
Municipal market data rate
The Municipal Market Data (MMD) rate for triple-A rated bonds with a 1-year maturity, as published by Thomson Financial Services.
Limitations on loans
The maximum, aggregate amount of loans that may be made under this section (and for which reimbursement may be provided under subsection (d)(2)) for a qualifying cancer center is 75 percent of the total project costs, but not to exceed—
$100,000,000 for a qualifying cancer center described in subsection (b)(1)(B); or
$50,000,000 for any other qualifying cancer center.
Forgiveness; reimbursement alternative
The Secretary may forgive repayment of a loan under this section to a qualifying cancer center described in subsection (b)(1)(B) if the center submits to the Secretary a written request for loan forgiveness under this paragraph and demonstrates that under the project for which the loan was made the center—
has made reasonable depth and breadth of research activities in each of the three major areas of laboratory research, clinical research, and population-based research, with substantial transdisciplinary research that bridges these scientific areas;
has initiated and conducted investigator-initiated, early phase, innovative clinical trials; and
has performed community service, outreach, dissemination, and education and training of biomedical researchers and health care professionals.
Alternative of reimbursement of other loans
The Secretary shall establish an alternative to making a loan and providing loan forgiveness under paragraph (1) under which a qualifying cancer center may elect to obtain a loan from a source other than under this section, and, in the event that it would otherwise qualify for loan forgiveness under paragraph (1), the Secretary shall provide for reimbursement for the amount of such loan.
To carry out this section, there are appropriated out of amounts in the Treasury not otherwise appropriated, $900,000,000.
For the administration of this section, Secretary may not use more than $1,000,000 from the funds made available under paragraph (1) for fiscal years 2011 through 2013.
Amounts appropriated under this section shall be available for obligation and obligated during the period beginning on October 1, 2010, and ending on September 30, 2013.
Report to congress
Not later than 3 years after the date of the enactment of this section, the Secretary shall submit to Congress a report on the projects for which loans are provided under this section (or reimbursement is provided under subsection (d)(2)) and a recommendation as to whether the Congress should authorize the Secretary to continue loans under this section beyond fiscal year 2013.