H. R. 659

One Hundred Eighth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Tuesday,

the seventh day of January, two thousand and three

An Act

To amend section 242 of the National Housing Act regarding the requirements

for mortgage insurance under such Act for hospitals.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Hospital Mortgage Insurance

Act of 2003’’.

SEC. 2. STANDARDS FOR DETERMINING NEED AND FEASIBILITY FOR

HOSPITALS.

(a) IN GENERAL.—Paragraph (4) of section 242(d) of the

National Housing Act (12 U.S.C. 1715z–7) is amended to read

as follows:

‘‘(4)(A) The Secretary shall require satisfactory evidence that

the hospital will be located in a State or political subdivision of

a State with reasonable minimum standards of licensure and

methods of operation for hospitals and satisfactory assurance that

such standards will be applied and enforced with respect to the

hospital.

‘‘(B) The Secretary shall establish the means for determining

need and feasibility for the hospital, if the State does not have

an official procedure for determining need for hospitals. If the

State has an official procedure for determining need for hospitals,

the Secretary shall require that such procedure be followed before

the application for insurance is submitted, and the application

shall document that need has also been established under that

procedure.’’.

(b) EFFECTIVE DATE.— (1) IN GENERAL.—The amendment made by subsection (a)

shall take effect and apply as of the date of the enactment

of this Act.

(2) EFFECT OF REGULATORY AUTHORITY.—Any authority of

the Secretary of Housing and Urban Development to issue

regulations to carry out the amendment made by subsection

(a) may not be construed to affect the effectiveness or applicability of such amendment under paragraph (1) of this subsection.

SEC. 3. EXEMPTION FOR CRITICAL ACCESS HOSPITALS.

(a) IN GENERAL.—Section 242 of the National Housing Act

(12 U.S.C. 1715z–7) is amended—

(1) in subsection (b)(1)(B), by inserting ‘‘, unless the facility

is a critical access hospital (as that term is defined in section
H. R. 659—2

1861(mm)(1) of the Social Security Act (42 U.S.C.

1395x(mm)(1)))’’ after ‘‘tuberculosis’’; and

(2) by adding at the end the following:

‘‘(i) TERMINATION OF EXEMPTION FOR CRITICAL ACCESS HOSPITALS.—

‘‘(1) IN GENERAL.—The exemption for critical access hospitals under subsection (b)(1)(B) shall have no effect after July

31, 2006.

‘‘(2) REPORT TO CONGRESS.—Not later than 3 years after

July 31, 2003, the Secretary shall submit a report to Congress

detailing the effects of the exemption of critical access hospitals

from the provisions of subsection (b)(1)(B) on—

‘‘(A) the provision of mortgage insurance to hospitals

under this section; and

‘‘(B) the General Insurance Fund established under

section 519.’’.

SEC. 4. STUDY OF BARRIERS TO RECEIPT OF INSURED MORTGAGES

BY FEDERALLY QUALIFIED HEALTH CENTERS.

(a) IN GENERAL.—The Secretary of Housing and Urban Development shall conduct a study on the barriers to the receipt of mortgage

insurance by federally qualified health centers (as defined in section

1905(l)(2)(B) of the Social Security Act (42 U.S.C. 1396d(l)(2)(B)))

under section 1101 of the National Housing Act (12 U.S.C. 1749aaa),

or other programs under that Act.

(b) REPORT.—Not later than 6 months after the date of enactment of this Act, the Secretary of Housing and Urban Development

shall submit a report regarding any appropriate legislative and

regulatory changes needed to enable federally qualified health centers to access mortgage insurance under section 1101 of the National

Housing Act (12 U.S.C. 1749aaa), or other programs under that

Act to—

(1) the Committee on Banking, Housing, and Urban Affairs

of the Senate; and

(2) the Committee on Financial Services of the House of

Representatives.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.