article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Health Research Act of 1994''. SEC. 2. FINDINGS. The Congress finds the following: (1) Nearly 4 of 5 peer reviewed research projects deemed worthy of funding by the National Institutes of Health are not funded. (2) Less than 2 percent of the nearly one trillion dollars our Nation spends on health care is devoted to health research, while the defense industry spends 15 percent of its budget on research. (3) Public opinion surveys have shown that Americans want more Federal resources put into health research and support by having a portion of their health insurance premiums set aside for this purpose. (4) Ample evidence exists to demonstrate that health research has improved the quality of health care in the United States. Advances such as the development of vaccines, the cure of many childhood cancers, drugs that effectively treat a host of diseases and disorders, a process to protect our Nation's blood supply from the HIV virus, progress against cardiovascular disease including heart attack and stroke, and new strategies for the early detection and treatment of diseases such as colon, breast, and prostate cancer clearly demonstrates the benefits of health research. (5) Among the most effective methods to control health care costs are prevention and cure of disease and disability, thus, health research which holds the promise of cure and prevention of disease and disability is a critical component of any comprehensive health care reform plan. (6) The state of our Nation's research facilities at the National Institutes of Health and at universities is deteriorating significantly. Renovation and repair of these facilities are badly needed to maintain and improve the quality of research. (7) Because the Omnibus Budget Reconciliation Act of 1993 freezes discretionary spending for the next 5 years, the Nation's investment in health research through the National Institutes of Health is likely to decline in real terms unless corrective legislative action is taken. (8) A health research fund is needed to maintain our Nation's commitment to health research and to increase the percentage of approved projects which receive funding at the National Institutes of Health to at least 33 percent. SEC. 3. NATIONAL FUND FOR HEALTH RESEARCH. (a) Establishment.--There is established in the Treasury of the United States an account, to be known as the ``National Fund for Health Research'' (hereafter referred to in this section as the ``Fund''), consisting of such amounts as are transferred to the Fund under subsection (b) and any interest earned on investment of amounts in the Fund. (b) Transfers to Fund.-- (1) In general.--The Secretary of the Treasury shall transfer to the Fund an amount equal to the amounts designated under paragraph (2) and received in the Treasury. (2) Amounts.-- (A) In general.--With respect to each calendar year beginning with the first full calendar year during which a comprehensive health care reform program utilizing a regional and corporate health alliance structure has been implemented, each such alliance shall set aside and transfer to the Treasury of the United States the applicable amount under subparagraph (B) and under section 6097 of the Internal Revenue Code of 1986. (B) Applicable amount.--The applicable amount under this subparagraph with respect to a regional or corporate alliance shall be equal to-- (i) with respect to the first full calendar year described in subparagraph (A), .25 percent of all health premiums received by the alliance for such year; (ii) with respect to the second calendar year described in subparagraph (A), .50 percent of all health premiums received by the alliance for such year; (iii) with respect to the third calendar year described in subparagraph (A), .75 percent of all health premiums received by the alliance for such year; and (iv) with respect to the fourth and succeeding calendar years described in subparagraph (A), 1 percent of all health premiums received by the alliance for such year. (3) Designation of overpayments and contributions.-- (A) In general.--Subchapter A of chapter 61 of the Internal Revenue Code of 1986 (relating to returns and records) is amended by adding at the end the following new part: ``PART IX--DESIGNATION OF OVERPAYMENTS AND CONTRIBUTIONS FOR THE NATIONAL FUND FOR HEALTH RESEARCH ``Sec. 6097. Amounts for the National Fund for Health Research. ``SEC. 6097. AMOUNTS FOR THE NATIONAL FUND FOR HEALTH RESEARCH. ``(a) In General.--Every individual (other than a nonresident alien) may designate that-- ``(1) a portion (not less than $1) of any overpayment of the tax imposed by chapter 1 for the taxable year, and ``(2) a cash contribution (not less than $1), be paid over to the National Fund for Health Research established under section 3 of the Health Research Act of 1994. In the case of a joint return of a husband and wife, each spouse may designate one-half of any such overpayment of tax (not less than $2). ``(b) Manner and Time of Designation.--Any designation under subsection (a) may be made with respect to any taxable year only at the time of filing the original return of the tax imposed by chapter 1 for such taxable year. Such designation shall be made either on the 1st page of the return or on the page bearing the taxpayer's signature. ``(c) Overpayments Treated as Refunded.--For purposes of this section, any overpayment of tax designated under subsection (a) shall be treated as being refunded to the taxpayer as of the last day prescribed for filing the return of tax imposed by chapter 1 (determined with regard to extensions) or, if later, the date the return is filed. ``(d) Designated Amounts Not Deductible.--No amount designated pursuant to subsection (a) shall be allowed as a deduction under section 170 or any other section for any taxable year. ``(e) Termination.--This section shall not apply to taxable years beginning in a calendar year after a determination by the Secretary that the sum of all designations under subsection (a) for taxable years beginning in the second and third calendar years preceding the calendar year is less than $5,000,000.''. (B) Clerical amendment.--The table of parts for subchapter A of chapter 61 of such Code is amended by adding at the end the following new item: ``Part IX. Designation of overpayments and contributions for the National Fund for Health Research.''. (C) Effective date.--The amendments made by this paragraph shall apply to taxable years beginning after December 31, 1993. (c) Expenditures From Fund.-- (1) In general.--The Secretary of the Treasury shall pay annually, within 30 days after the President signs an appropriations Act for the Departments of Labor, Health and Human Services, and Education and related agencies, or by the end of the first quarter of the fiscal year, to the Secretary of Health and Human Services on behalf of the National Institutes of Health, an amount equal to the amount in the National Fund for Health Research at the time of such payment, to enable the Secretary to carry out the purpose of section 404F of the Public Health Service Act, less any administrative expenses which may be paid under paragraph (3). (2) Purposes for expenditures from fund.--Part A of title IV of the Public Health Service Act (42 U.S.C. 281 et seq.) is amended by adding at the end the following new section: ``SEC. 404F. EXPENDITURES FROM THE NATIONAL FUND FOR HEALTH RESEARCH. ``(a) In General.--From amounts received for any fiscal year from the National Fund for Health Research, the Secretary of Health and Human Services shall distribute-- ``(1) 2 percent of such amounts during any fiscal year to the Office of the Director of the National Institutes of Health to be allocated at the Director's discretion for the following activities: ``(A) for carrying out the responsibilities of the Office of the Director, National Institutes of Health, including the Office of Research on Women's Health and the Office of Research on Minority Health, the Office of Alternative Medicine and the Office of Rare Diseases Research; and ``(B) for construction and acquisition of equipment for or facilities of or used by the National Institutes of Health; ``(2) 2 percent of such amounts for transfer to the National Center for Research Resources to carry out section 1502 of the National Institutes of Health Revitalization Act of 1993 concerning Biomedical and Behavioral Research Facilities; ``(3) 1 percent of such amounts during any fiscal year for carrying out section 301 and part D of title IV with respect to health information communications; and ``(4) the remainder of such amounts during any fiscal year to member institutes of the National Institutes of Health and Centers in the same proportion to the total amount received under this section, as the amount of annual appropriations under appropriations Acts for each member institute and Centers for the fiscal year bears to the total amount of appropriations under appropriations Acts for all member institutes and Centers of the National Institutes of Health for the fiscal year. ``(b) Plans of Allocation.--The amounts transferred under subsection (a) shall be allocated by the Director of NIH or the various directors of the institutes and centers, as the case may be, pursuant to allocation plans developed by the various advisory councils to such directors, after consultation with such directors.''. (3) Administrative expenses.--Amounts in the National Fund for Health Research shall be available to pay the administrative expenses of the Department of the Treasury directly allocable to-- (A) modifying the individual income tax return forms to carry out section 6097 of the Internal Revenue Code of 1986; (B) carrying out this section with respect to such Fund; and (C) processing amounts received under this section and transferring such amounts to such Fund. (4) Trigger and release of fund monies.--No expenditures shall be made pursuant to section 3(c) during any fiscal year in which the annual amount appropriated for the National Institutes of Health is less than the amount so appropriated for the prior fiscal year. (d) Budget Enforcement.--Amounts contained in the National Fund for Health Research shall be excluded from, and shall not be taken into account for purposes of, any budget enforcement procedures under the Congressional Budget Act of 1974 or the Balanced Budget Emergency Deficit Control Act of 1985.
summary: Health Research Act of 1994 - Establishes in the Treasury the National Fund for Health Research. Requires regional and corporate health alliances formed under a comprehensive health care reform program to set aside and transfer specified amounts each calendar year into the Fund. Amends the Internal Revenue Code to authorize individuals (other than nonresident aliens) to designate for payment into the Fund at least $1 of a cash contribution or of any tax overpayment made. Requires the Secretary of Health and Human Services to distribute specified amounts from the Fund for various health research activities of the National Institutes of Health and the National Center for Research Resources. Excludes Fund amounts from any budget enforcement procedures under the Congressional Budget Act of 1974 or the Balanced Budget Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act).