I
103D CONGRESS
2D SESSION
H. R. 4260
To improve and protect the health of all Americans through an increase
in the funding available for health research that holds the promise
of the prevention, cure and treatment for disease and disability.
IN THE HOUSE OF REPRESENTATIVES
APRIL 20, 1994
Mr. COYNE (for himself, Mr. RICHARDSON, Mr. UPTON, Mr. COOPER, Mr.
FRANK of Massachusetts, Mr. MCDERMOTT, Mr. DURBIN, Ms. EDDIE
BERNICE
JOHNSON
of 
Texas, 
Mr. 
LEACH, 
Mr. 
MORAN, 
Mr.
UNDERWOOD, Mr. FORD of Tennessee, Mrs. LOWEY, Mr. HOBSON, and
Mrs. MORELLA) introduced the following bill; which was referred jointly
to the Committees on Energy and Commerce, Ways and Means, Govern-
ment Operations, and Rules
A BILL
To improve and protect the health of all Americans through
an increase in the funding available for health research
that holds the promise of the prevention, cure and treat-
ment for disease and disability.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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 tril-
lion dollars our Nation spends on health care is de-
voted 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 de-
velopment of vaccines, the cure of many childhood
cancers, drugs that effectively treat a host of dis-
eases and disorders, a process to protect our Na-
tion’s blood supply from the HIV virus, progress
against cardiovascular disease including heart attack
and stroke, and new strategies for the early detec-
tion and treatment of diseases such as colon, breast,
and prostate cancer clearly demonstrates the bene-
fits of health research.
(5) Among the most effective methods to con-
trol health care costs are prevention and cure of dis-
ease and disability, thus, health research which holds
the promise of cure and prevention of disease and
disability is a critical component of any comprehen-
sive health care reform plan.
(6) The state of our Nation’s research facilities
at the National Institutes of Health and at univer-
sities is deteriorating significantly. Renovation and
repair of these facilities are badly needed to main-
tain 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 re-
search through the National Institutes of Health is
likely to decline in real terms unless corrective legis-
lative action is taken.
(8) A health research fund is needed to main-
tain 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 sub-
section (b) and any interest earned on investment of
amounts in the Fund.
(b) TRANSFERS TO FUND.—
(1) IN GENERAL.—The Secretary of the Treas-
ury shall transfer to the Fund an amount equal to
the amounts designated under paragraph (2) and re-
ceived in the Treasury.
(2) AMOUNTS.—
(A) IN GENERAL.—With respect to each
calendar year beginning with the first full cal-
endar 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 subpara-
graph (B) and under section 6097 of the Inter-
nal 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 cal-
endar year described in subparagraph (A),
.25 percent of all health premiums received
by the alliance for such year;
(ii) with respect to the second cal-
endar 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 sub-
paragraph (A), 1 percent of all health pre-
miums received by the alliance for such
year.
(3) DESIGNATION OF OVERPAYMENTS AND CON-
TRIBUTIONS.—
(A) IN GENERAL.—Subchapter A of chap-
ter 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 over-
payment 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 over-
payment of tax (not less than $2).
‘‘(b) MANNER AND TIME OF DESIGNATION.—Any
designation under subsection (a) may be made with re-
spect 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 tax-
payer’s signature.
‘‘(c) OVERPAYMENTS TREATED AS REFUNDED.—For
purposes of this section, any overpayment of tax des-
ignated under subsection (a) shall be treated as being re-
funded 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 sec-
tion for any taxable year.
‘‘(e) TERMINATION.—This section shall not apply to
taxable years beginning in a calendar year after a deter-
mination 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 fol-
lowing 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 Treas-
ury shall pay annually, within 30 days after the
President signs an appropriations Act for the De-
partments 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 Sec-
retary 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 Re-
search 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 adminis-
trative 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 distrib-
ute—