
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC291i]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
  SUBCHAPTER IV--CONSTRUCTION AND MODERNIZATION OF HOSPITALS AND OTHER 
                           MEDICAL FACILITIES
 
Part A--Grants and Loans for Construction and Modernization of Hospitals 
                      and Other Medical Facilities
 
Sec. 291i. Recovery of expenditures under certain conditions


(a) Persons liable

    If any facility with respect to which funds have been paid under 
section 291f of this title shall, at any time within 20 years after the 
completion of construction or modernization--
        (1) be sold or transferred to any entity (A) which is not 
    qualified to file an application under section 291e of this title, 
    or (B) which is not approved as a transferee by the State agency 
    designated pursuant to section 291d of this title, or its successor, 
    or
        (2) cease to be a public health center or a public or other 
    nonprofit hospital, outpatient facility, facility for long-term 
    care, or rehabilitation facility,

the United States shall be entitled to recover, whether from the 
transferor or the transferee (or, in the case of a facility which has 
ceased to be public or nonprofit, from the owners thereof) an amount 
determined under subsection (c) of this section.

(b) Notice to Secretary

    The transferor of a facility which is sold or transferred as 
described in subsection (a)(1) of this section, or the owner of a 
facility the use of which is changed as described in subsection (a)(2) 
of this section, shall provide the Secretary written notice of such 
sale, transfer, or change not later than the expiration of 10 days from 
the date on which such sale, transfer, or change occurs.

(c) Amount of recovery; interest; interest period

    (1) Except as provided in paragraph (2), the amount the United 
States shall be entitled to recover under subsection (a) of this section 
is an amount bearing the same ratio to the then value (as determined by 
the agreement of the parties or in an action brought in the district 
court of the United States for the district for which the facility 
involved is situated) of so much of the facility as constituted an 
approved project or projects as the amount of the Federal participation 
bore to the cost of the construction or modernization of such project or 
projects.
    (2)(A) After the expiration of--
        (i) 180 days after the date of the sale, transfer, or change of 
    use for which a notice is required by subsection (b) of this 
    section, in the case of a facility which is sold or transferred or 
    the use of which changes after July 18, 1984, or
        (ii) thirty days after July 18, 1984, or if later 180 days after 
    the date of the sale, transfer, or change of use for which a notice 
    is required by subsection (b) of this section, in the case of a 
    facility which was sold or transferred or the use of which changed 
    before July 18, 1984.\1\
---------------------------------------------------------------------------
    \1\ So in original. The period probably should be a comma.

the amount which the United States is entitled to recover under 
paragraph (1) with respect to a facility shall be the amount prescribed 
by paragraph (1) plus interest, during the period described in 
subparagraph (B), at a rate (determined by the Secretary) based on the 
average of the bond equivalent of the weekly ninety-day Treasury bill 
auction rate.
    (B) The period referred to in subparagraph (A) is the period 
beginning--
        (i) in the case of a facility which was sold or transferred or 
    the use of which changed before July 18, 1984, thirty days after 
    such date or if later 180 days after the date of the sale, transfer, 
    or change of use for which a notice is required by subsection (b) of 
    this section,
        (ii) in the case of a facility with respect to which notice is 
    provided in accordance with subsection (b) of this section, upon the 
    expiration of 180 days after the receipt of such notice, or
        (iii) in the case of a facility with respect to which such 
    notice is not provided as prescribed by subsection (b) of this 
    section, on the date of the sale, transfer, or change of use for 
    which such notice was to be provided,

and ending on the date the amount the United States is entitled to under 
paragraph (1) is collected.

(d) Waiver

    (1) The Secretary may waive the recovery rights of the United States 
under subsection (a)(1) of this section with respect to a facility in 
any State if the Secretary determines, in accordance with regulations, 
that the entity to which the facility was sold or transferred--
        (A) has established an irrevocable trust--
            (i) in an amount equal to the greater of twice the cost of 
        the remaining obligation of the facility under clause (2) of 
        section 291c(e) of this title or the amount, determined under 
        subsection (c) of this section, that the United States is 
        entitled to recover, and
            (ii) which will only be used by the entity to provide the 
        care required by clause (2) of section 291c(e) of this title; 
        and

        (B) will meet the obligation of the facility under clause (1) of 
    section 291c(e) of this title.

    (2) The Secretary may waive the recovery rights of the United States 
under subsection (a)(2) of this section with respect to a facility in 
any State if the Secretary determines, in accordance with regulations, 
that there is good cause for waiving such rights with respect to such 
facility.

(e) Lien

    The right of recovery of the United States under subsection (a) of 
this section shall not constitute a lien on any facility with respect to 
which funds have been paid under section 291f of this title.

(July 1, 1944, ch. 373, title VI, Sec. 609, as added Pub. L. 88-443, 
Sec. 3(a), Aug. 18, 1964, 78 Stat. 456; amended Pub. L. 91-296, title I 
Sec. 116(d), June 30, 1970, 84 Stat. 342; Pub. L. 98-369, div. B, title 
III, Sec. 2381(a), July 18, 1984, 98 Stat. 1112.)


                            Prior Provisions

    A prior section 291i, act July 1, 1944, ch. 373, title VI, Sec. 631, 
as added Aug. 13, 1946, ch. 958, Sec. 2, 60 Stat. 1041; amended June 19, 
1948, ch. 544, 62 Stat. 531; Oct. 25, 1949, ch. 722, Sec. 9, 63 Stat. 
901; July 12, 1954, ch. 471, Sec. 4(c)-(f), 68 Stat. 465, 466; Aug. 1, 
1956, ch. 852, Sec. 19(a), (b), 70 Stat. 911; June 25, 1959, Pub. L. 86-
70, Sec. 31(c), 73 Stat. 149; July 12, 1960, Pub. L. 86-624, Sec. 29(d), 
74 Stat. 419; Oct. 5, 1961, Pub. L. 87-395, Sec. 5, 75 Stat. 826; Sept. 
25, 1962, Pub. L. 87-688, Sec. 4(a)(2), 76 Stat. 587, related to 
allotment percentages, and contained various definitions, prior to the 
general amendment of this subchapter by Pub. L. 88-443. See section 291b 
of this title.
    Provisions similar to those comprising this section were contained 
in section 291h(e) of this title, act July 1, 1944, ch. 373, title VI, 
Sec. 625, as added Aug. 13, 1946, ch. 958, Sec. 2, 60 Stat. 1041; 
amended Oct. 25, 1949, ch. 722, Sec. 3(c), 63 Stat. 899, 901; July 12, 
1954, ch. 471, Sec. 4(b), 68 Stat. 464, prior to the general amendment 
of this subchapter by Pub. L. 88-443.


                               Amendments

    1984--Pub. L. 98-369 amended section generally. Prior to amendment, 
section read as follows: ``If any facility with respect to which funds 
have been paid under section 291f of this title shall, at any time 
within twenty years after the completion of construction--
        ``(a) be sold or transferred to any person, agency, or 
    organization (1) which is not qualified to file an application under 
    section 291e of this title, or (2) which is not approved as a 
    transferee by the State agency designated pursuant to section 291d 
    of this title, or its successor, or
        ``(b) cease to be a public health center or a public or other 
    nonprofit hospital, outpatient facility, facility for long-term 
    care, or rehabilitation facility, unless the Surgeon General 
    determines, in accordance with regulations, that there is good cause 
    for releasing the applicant or other owner from this obligation,
the United States shall be entitled to recover from either the 
transferor or the transferee (or, in the case of a facility which has 
ceased to be public or nonprofit, from the owners thereof) an amount 
bearing the same ratio to the then value (as determined by the agreement 
of the parties or by action brought in the district court of the United 
States for the district in which the facility is situated) of so much of 
the facility as constituted an approved project or projects, as the 
amount of the Federal participation bore to the cost of the construction 
or modernization under such project or projects. Such right of recovery 
shall not constitute a lien upon said facility prior to judgment.''
    1970--Cl. (b). Pub. L. 91-296 substituted ``outpatient facility'' 
for ``diagnostic or treatment center''.

                          Transfer of Functions

    Office of Surgeon General abolished by section 3 of Reorg. Plan No. 
3 of 1966, eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, and 
functions thereof transferred to Secretary of Health, Education, and 
Welfare by section 1 of Reorg. Plan No. 3 of 1966, set out as a note 
under section 202 of this title. Secretary of Health, Education, and 
Welfare redesignated Secretary of Health and Human Services by section 
509(b) of Pub. L. 96-88 which is classified to section 3508(b) of Title 
20, Education.


                        Regulations and Personnel

    Section 2381(c) of Pub. L. 98-369 provided that: ``Not later than 
the expiration of the one-hundred-and-eighty-day period beginning on the 
date of the enactment of this section [July 18, 1984], the Secretary 
shall have in effect regulations and personnel to place in effect the 
amendments made by this section [amending sections 291i and 300s-1a of 
this title].''

                  Section Referred to in Other Sections

    This section is referred to in section 291j of this title.
