text: 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.
target: 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).
feat_title: Health Research Act of 1994