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 applica-
bility of such amendment under paragraph (1) of this sub-
section.
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 HOS-
PITALS.—
‘‘(1) IN GENERAL.—The exemption for critical access hos-
pitals 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 Develop-
ment 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 enact-
ment 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 cen-
ters 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.