A bill to authorize funds to be appropriated for the construction of a mouse research laboratory, and for other purposes.
PL 101-190 (S.1390), enacted 11/29/1989

PUBLIC LAW 101-190—NOV. 29, 1989 
103 STAT. 1691 
Public Law 101-190 
101st Congress 
An Act 
To provide for the construction of biomedical facilities in order to ensure a continued 
supply of specialized strains of mice essential to biomedical research in the United 
States, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
Nov. 29, 1989 
[S. 1390] 
SECTION 1. AUTHORITY FOR CONTRACT FOR CONSTRUCTION OF BIO-
MEDICAL RESEARCH FACILITIES. 
(a) IN GENERAL.—Of the aggregate amounts appropriated for 
fiscal years 1990 and 1991 to carry out the purposes of title IV of the 
Public Health Service Act through the National Institutes of 
Health, the Secretary of Health and Human Services, acting 
through the Director of the National Institutes of Health, may 
reserve not more than $25,000,000 for entering into a contract with 
a public or nonprofit private entity for constructing facilities for the 
purpose of the development and breeding of specialized strains of 
mice (including inbred and mutant mice) for use in biomedical 
research. 
(b) COMPETITIVE AWARD PROCESS.—The contract under subsection 
(a) may be awarded only on a competitive basis after review in 
accordance with section 4(a). 
42 u s e 289e 
note. 
SEC. 2. TWENTY-YEAR OBLIGATION WITH RESPECT TO BREEDING 
SPECIALIZED MICE FOR BIOMEDICAL RESEARCH. 
OF 
(a) IN GENERAL.—The Secretary may not enter into a contract 
under section 1 unless, subject to subsection (b), the applicant for the 
contract agrees that— 
(1) throughout the 20-year period beginning 90-days after the 
date of the completion of the construction of facilities pursuant 
to the contract, the facilities will be utilized only for the purpose 
described in section 1(a); 
(2) during such period, the applicant will, to the extent prac-
ticalDle, develop and breed such mice in numbers sufficient to 
assist in meeting the need for such mice in biomedical research 
conducted or supported by the Secretary; and 
(3) during such period, the applicant will, upon the request of 
the Secretary, sell such mice to the Secretary for purposes of 
such research at a price reasonably related to the cost of the 
production of the mice. 
(b) TRANSFER OF OBLIGATION.— 
(1) IN GENERAL.—With respect to the obligation under subsec-
tion (a), the contractor under section 1 (and any transferee or 
purchaser under this subsection) may— 
(A) transfer the obligation to a public or nonprofit private 
entity if the proposed transferee has entered into a contract 
with the Secretary to assume the obligation; and 
(B) convey its interest in the facilities involved if the 
proposed purchaser of the interest is a public or nonprofit 
42 u s e 289e 
note. 
103 STAT. 1692 
PUBLIC LAW 101-190—NOV. 29,1989 
entity that has entered into a contract with the Secretary to 
assume the obligation. 
(2) TRANSFER PRIOR TO COMPLETION OF CONSTRUCTION.—If, for 
purposes of paragraph (1), a transfer or conveyance is proposed 
^ ' 
to be made before the completion of the construction of facilities 
pursuant to section 1, the Secretary may not authorize the 
.^-,r 
transfer or conveyance unless the agreement involved provides 
that the transferee or purchaser will assume all remaining 
responsibilities under any agreements made pursuant to this 
' 
Act by the contractor under such section and the Federal 
Government. 
,.fc^ ^ .. 
(3) TERMINATION OF OBUGATION.—If, for purposes of para-
'^ 
,', ^ 
graphs (1) and (2), a transfer or conveyance is made in accord-
^ 
ance with such paragraphs, the obligation pursuant to 
subsection (a), and all other responsibilities pursuant to this 
Act, of the transferor involved shall terminate. 
(c) REQUIREMENT OF STATUS AS PUBUC OR NONPROFIT PRIVATE 
ENTITY.—The Secretary may not enter into any agreement under 
subsection (a) or (b) unless the agreement provides that the obliga-
^ 
tion involved includes the requirement that the obligation may be 
satisfied only by a public or nonprofit private entity. 
(d) ASSURANCES OF SUFFICIENT FINANCIAL RESOURCES.— 
(1) ORIGINAL CONTRACTOR.—The Secretary may not enter into 
a contract under section 1 unless the applicant for the contract 
provides assurances satisfactory to the Secretary that, through-
out the 20-year period described in subsection (a), the applicant 
will have access to financial resources sufficient to comply with 
, i. 
^ 
the agreement under such subsection. 
(2) TRANSFEREES AND PURCHASERS.—The Secretary may 
not 
approve a transfer or conveyance under subsection (b) unless 
the transferee or purchgiser provides assurances satisfactory to 
the Secretary that, throughout the remaining portion of the 20-
year period described in subsection (a), the transferee or pur-
chaser will have access to financial resources sufficient to 
comply with its obligation pursuant to such subsection. 
42 use 289e 
SEC. 3. REQUIREMENT OF MATCHING FUNDS. 
(a) IN GENERAL.—The Secretary may not enter into a contract 
under section 1 unless the applicant for the contract agrees, with 
respect to the costs to be incurred by the applicant in carrying out 
the purpose described in such section, to make available (directly or 
through donations from public or private entities) contributions 
toward such costs in an amount equal to $1 for each $3 of Federal 
funds provided pursuant to the contract under section 1. 
(b) DETERMINATION OF AMOUNT OF CONTRIBUTION.—Contributions 
required in subsection (a) may be in cash or in kind, fairly evaluated, 
including existing plant and equipment or services throughout the 
20-year period described in section 2(a)(1) (and including such 
specialized strains of mice as the Secretary may request for purposes 
of biomedical research). Amounts provided by any agency of the 
. 
Federal Government other than the Department of Health and 
Human Services, and services assisted or subsidized by any such 
agency, shall be included in the amount of such contributions. 
42USC289e 
SEC. 1. ADDITIONAL REQUIREMENTS. 
(a) SUBMISSION AND APPROVAL OF CONSTRUCTION PLAN.— 
PUBLIC LAW 101-190—NOV. 29, 1989 
103 STAT. 1693 
(1) IN GENERAL.—The Secretary may not enter into a contract 
under section 1 unless the applicant for the contract submits to 
the Secretary a plan for the construction of facilities pursuant 
to such section and unless the Secretary approves the plan. The 
Secretary may not approve such a plan unless the plan has been 
recommended, for approval by the panel convened under para-
graph (2XA). 
(2) EXPERT PANEL FOR ADVISING SECRETARY WITH RESPECT TO 
PLAN.— 
(A) The Secretary shall convene a panel of appropriately 
qualified individuals for the purpose of providing architec-
tural, financial, and scientific advice to the Secretary 
regarding appropriate standards and specifications for the 
construction, financing, and use of facilities pursuant to 
section 1. The panel may not approve a plan submitted 
under paragraph (1) unless the panel determines that 
amounts provided in the contract under section 1 will not, 
during the twenty-year period described in section 2(a), be 
expended to increase significantly, relative to April 1989, 
the sale of mice other than mutant and inbred strains of 
mice necessary for the conduct of biomedical research. 
(B) Members of the panel convened under paragraph (1) 
who are officers or employees of the United States may not 
receive compensation for service on the panel in addition to 
the compensation otherwise received for duties carried out 
as such officers or employees. Other members of such panel 
shall receive compensation for each day (including travel-
time) engaged in carrying out the duties of the panel. Such 
compensation may not be in an amount in excess of the 
maximum rate of basic pay payable for GS-18 of the Gen-
eral Schedule. 
(b) SITE OF CONSTRUCTION.—The Secretary may not enter into a 
contract under section 1 unless— 
(1) the applicant for the contract provides to the Secretary a 
description of the site for the construction of facilities pursuant 
to such section; and 
(2) the Secretary determines that title to the site is vested in 
the applicant or that the applicant has a sufficient possessory 
interest in such site for the twenty-year period described in 
section 2(a). 
(c) REQUIREMENT OF APPUCATION.—The Secretary may not enter 
into a contract under section 1 unless— 
(1) an application for the contract is submitted to the Sec-
retary; 
(2) the application contains the agreements required in this 
Act and provides assurances of compliance satisfactory to the 
Secretary; and 
(3) the application otherwise is in such form, is made in such 
manner, and contains such agreements, assurances, and 
information as the Secretary determines to be necessary to 
carry out this Act. 
SEC. 5. FAILURE TO COMPLY WITH AGREEMENTS. 
42 USC 289e 
(a) REPAYMENT OF PAYMENTS.— 
"° 
(1) IN GENERAL.—The Secretary may, subject to subsection (c), 
require the contractor under section 1 to repay any payments 
received under such section by the contractor that the Secretary 
103 STAT. 1694 
PUBLIC LAW 101-190—NOV. 29, 1989 
determines were not expended by the contractor in accordance 
with the agreements required to be contained in the application 
submitted by the contractor pursuant to section 4(c). 
(2) OFFSET AGAINST CURRENT PAYMENTS.—If a contractor 
under section 1 fails to make a repayment required in para-
i graph (1), the Secretary may offset the amount of the repay-
ment against the amount of any payment due to be paid under 
such section to the contractor, 
i 
(b) WITHHOLDING OF PAYMENTS.— 
(1) IN GENERAL.—The Secretary may, subject to subsection (c), 
withhold payments due under section 1 if the Secretary deter-
mines that the contractor under such section is not expending 
payments received under such section in accordance with the 
agreements required to be contained in the application submit-
ted by the contractor pursuant to section 4(c). 
(2) TERMINATION OF WITHHOLDING.—The Secretary shall cease 
withholding payments under paragraph (1) if the Secretary 
determines that there are reasonable assurances that the con-
tractor under section 1 will expend amounts received under 
such section in accordance with the agreements referred to in 
such paragraph. 
(3) EFFECT OF MINOR NONCOMPUANCE.—The Secretary may 
not withhold funds under paragraph (1) from the contractor 
under section 1 for a minor failure to comply with the agree-
ments referred to in such paragraph. 
(c) OPPORTUNITY FOR HEARING.—Before requiring repajnnent of 
payments under subsection (aXD, or withholding pajnnents under 
subsection (b)(1), the Secretary shall provide to the contractor under 
section 1 an opportunity for a hearing conducted within the State in 
which facilities are constructed pursuant to such section. 
42 use 289e 
SEC. 6. RECOVERY PROCEEDINGS FOR VIOLATION OF REQUIREMENT 
note. 
WITH RESPECT TO MINIMUM PERIOD OF BREEDING OF 
SPECIALIZED MICE. 
(a) RIGHT OF RECOVERY.—If the contractor under section 1, or any 
transferee or purchaser under section 2, violates its obligation under 
such section (including any violation under subsection (c) of such 
section), the United States shall be entitled to recover an amount 
equal to the sum of— 
(1) an amount determined in accordance with paragraph 
(1)( 
A) of subsection (b); and 
(2) an amount determined in accordance with paragraph 
(2)(A) of such subsection. 
(b) DETERMINATION OF AMOUNTS.— 
(1) FEDERAL PERCENTAGE OF FAIR MARKET VALUE.— 
(A) The amount referred to in paragraph (1) of subsection 
(a) is the product of— 
(i) an amount equal to the fair market value, during 
the period in which recovery is sought under subsection 
' '
< 
(a), of the facilities constructed pursuant to section 1, as 
determined in accordance with subparagraph (B); and 
(ii) a percentage equal to the quotient of— 
(I) the total amounts provided by the Federal 
Government for the construction of such facilities; 
divided by 
(II) the total costs of the construction of such 
facilities. 
PUBLIC LAW 101-190—NOV. 29, 1989 
103 STAT. 1695 
j^^ 
(B) For purposes of subparagraph (A)(i), fair market value 
Z:r' 
shall be determined through— 
(i) an agreement entered into by the United States 
and the entity from whom the United States is seeking 
recovery under subsection (a); or 
(ii) an action brought in the district court of the 
United States for the district in which the facilities 
involved are located. 
(2) INTEREST.— 
(A) The amount referred to in paragraph (2) of subsection 
(a) is an amount representing interest on the amount deter-
mined under paragraph (1). Such interest shall accrue 
during the period described in subparagraph (B) and shall 
accrue at a rate determined by the Secretary on the basis of 
the average of the bond equivalent of the weekly 90-day 
Treasury bill auction rate. 
(B) The period referred to in subparagraph (A) is the 
period— 
(i) beginning on the date of the violation of the 
obligation under section 2, or if the entity involved 
provides notice to the Secretary of the violation not 
later than 10 days after the date of the violation, 
beginning on the expiration of the 180-day period 
beginning on the date that the notice is received by the 
Secretary; and 
(ii) ending on the date on which the United States 
collects the amount determined under paragraph (1). 
(c) WAIVER OF RECOVERY RIGHTS.—The Secretary may waive, in 
whole or in part, the right of the United States to recover amounts 
under this section for good cause shown, £is determined by the 
Secretary. 
(d) CLARIFICATION WITH RESPECT TO LIEN ON FACIUTIES.—The 
right of recovery of the United States under subsection (a) shall not 
constitute a lien on the facilities involved with respect to which such 
recovery is sought. 
SEC. 7. DEFINITION. 
42 USC 289e 
For purposes of this Act, the term "Secretary" means the Sec-
retary of Health and Human Services. 
SEC. 8. TECHNICAL AMENDMENT WITH RESPECT TO AUTHORITY FOR 
CONSTRUCTION OF FACILITIES. 
Section 496 of the Public Health Service Act (42 U.S.C. 289e) is 
amended— 
(1) by striking the first sentence; 
(2) by inserting "(a)" after the section designation; and 
(3) by adding at the end the following new subsection: 
"(b)(1) None of the amounts appropriated under this Act for the 
purposes of this title may be obligated for the construction of 
facilities (including the acquisition of land) unless a provision of this 
title establishes express authority for such purpose and unless the 
Act making appropriations under such provision specifies that the 
amounts appropriated are available for such purpose. 
103 STAT. 1696 
PUBLIC LAW 101-190—NOV. 29, 1989 
"(2) Any grants, cooperative agreements, or contracts authorized 
in this title for the construction of facilities may be awarded only on 
a competitive bgisis.". 
Approved November 29, 1989. 
LEGISLATIVE fflSTORY—S. 1390: 
SENATE REPORTS: No. 101-101 (Comm. on Labor and Human Resources). 
CONGRESSIONAL RECORD, Vol. 135 (1989): 
Aug. 4, considered £uid passed Senate. 
Nov. 13, considered and passed House, amended. 
Nov. 16, Senate concurred in House amendments.