
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC300s-1a]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
              SUBCHAPTER XIV--HEALTH RESOURCES DEVELOPMENT
 
                       Part C--General Provisions
 
Sec. 300s-1a. Recovery of expenditures under certain conditions


(a) Persons liable

    If any facility with respect to which funds have been paid under 
this subchapter 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 300s-1 or 300t-12 of 
    this title or (B) which is not approved as a transferee by the State 
    Agency of the State in which such facility is located, 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,

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 90-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.\1\
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    \1\ So in original. The period probably should be a comma.
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        (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 changes 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 (ii) of 
        section 300s-1(b)(1)(K) 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 (ii) of section 300s-1(b)(1)(K) of this 
        title; and

        (B) will meet the obligation of the facility under clause (i) of 
    section 300s-1(b)(1)(K) 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 this subchapter.

(July 1, 1944, ch. 373, title XVI, Sec. 1622, formerly Sec. 1631, as 
added Pub. L. 93-641, Sec. 4, Jan. 4, 1975, 88 Stat. 2269; amended Pub. 
L. 94-278, title XI, Sec. 1106(c), Apr. 22, 1976, 90 Stat. 416; 
renumbered Sec. 1622 and amended Pub. L. 96-79, title II, Secs. 202(b), 
203(c), Oct. 4, 1979, 93 Stat. 632, 635; Pub. L. 98-369, div. B. title 
III, Sec. 2381(b), July 18, 1984, 98 Stat. 1114.)

                          Codification

    Section was formerly classified to section 300s-1 of this title 
prior to the general revision of this subchapter by Pub. L. 96-79.


                            Prior Provisions

    A prior section 1622 of act July 1, 1944, as added Jan. 4, 1975, 
Pub. L. 93-641, Sec. 4, 88 Stat. 2265, was renumbered section 1602 as 
part of the general revision of this subchapter by Pub. L. 96-79 and is 
classified to section 300q-2 of this title.


                               Amendments

    1984--Pub. L. 98-369 amended section generally. Prior to the 
amendment, section read as follows:
    ``(a) If any facility constructed, modernized, or converted with 
funds provided under this subchapter is, at any time within twenty years 
after the completion of such construction, modernization, or conversion 
with such funds--
        ``(1) sold or transferred to any person or entity (A) which is 
    not qualified to file an application under section 300s-1 or 300t-12 
    of this title or (B) which is not approved as a transferee by the 
    State Agency of the State in which such facility is located, or its 
    successor; or
        ``(2) not used as a medical facility, and the Secretary has not 
    determined that there is good cause for termination of such use,
the United States shall be entitled to recover from either the 
transferor or the transferee in the case of a sale or transfer or from 
the owner in the case of termination of use 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 such facility 
as constituted an approved project or projects, as the amount of the 
Federal participation bore to the cost of the construction, 
modernization, or conversion of such project or projects. Such right of 
recovery shall not constitute a lien upon such facility prior to 
judgment.
    ``(b) The Secretary may waive the recovery rights of the United 
States under subsection (a) of this section with respect to a facility 
in any State--
        ``(1) if (as determined under regulations prescribed by the 
    Secretary) the amount which could be recovered under subsection (a) 
    of this section with respect to such facility is applied to the 
    development, expansion, or support of another medical facility 
    located in such State which has been approved by the Statewide 
    Health Coordinating Council for such State as consistent with the 
    State health plan established pursuant to section 300m-3(c) of this 
    title; or
        ``(2) if the Secretary determines, in accordance with 
    regulations, that there is good cause for waiving such requirement 
    with respect to such facility.
If the amount which the United States is entitled to recover under 
subsection (a) of this section exceeds 90 per centum of the total cost 
of the construction or modernization project for a facility, a waiver 
under this subsection shall only apply with respect to an amount which 
is not more than 90 per centum of such total cost.''
    1979--Subsec. (a)(1)(A). Pub. L. 96-79, Sec. 203(c), substituted 
``section 300s-1 or 300t-12 of this title'' for ``section 300o-3 of this 
title''.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-79 effective Oct. 1, 1979, see section 204 
of Pub. L. 96-79, set out as a note under section 300q of this title.


                        Regulations and Personnel

    Requirements for regulations and personnel to implement this 
section, see section 2381(c) of Pub. L. 98-369, set out as a note under 
section 291i of this title.
