,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #abec  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,febru>y #bh1         
#bjag,mr4 ,kilm] 7= himself1 ,ms4 ,h]r]a
 ,beutl]1 ,mr4 ,murphy ( ,p5nsylvania1 &
 ,ms4 ,eddie ,b]nice ,johnson ( ,texas7 
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,en]gy & ,comm]ce  ,a  
,,bill  ,to au?orize ! ,secret>y (      
,heal? & ,human ,s]vices to make loans &
 loan gu>antees = con/ruct+ or r5ovat+1 
or plann+ con/ruction or r5ovation (1   
qualifi$ psy*iatric & sub/ance abuse    
treatm5t facilities1 & = o!r purposes4  
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,m5tal ,heal? & ,sub/ance ,abuse      
,treatm5t ,accessibility ,act ( #bjag4  
#b4 ,loans & loan gu>antees ,"p ,p (    
title ,,iii ( ! ,public ,heal? ,s]vice  
,act is am5d$ by ins]t+ aft] section    
#cii,v-#f ( su* ,act 7#db ,u4,s4,c4     
#bhj;g-#ag7 ! foll[+3  #cii,v-#g4 ,loans
 & loan gu>antees = con/ruct+ or        
r5ovat+1 or plann+ con/ruction or       
r5ovation (1 c]ta9 qualifi$ psy*iatric &

 sub/ance abuse treatm5t facilities  7a7
 ,9 g5]al ,! ,secret>y may-- 7#a7 make  
loans & loan gu>antees = ! purpose (    
con/ruct+ or r5ovat+1 includ+ plann+ !  
con/ruction or r5ovation (1 a qualifi$  
psy*iatric treatm5t facility or a       
qualifi$ sub/ance abuse treatm5t        
facility to public1 private =-pr(it1 or 
private n-=-pr(it--  7,a7 psy*iatric    
treatm5t facilities2  7,b7 sub/ance     
abuse treatm5t facilities2  7,c7        
psy*iatric hospitals2 &  7,d7 alliances 
( su* facilities or hospitals2 &  7#b7  
subject to subsection 7d71 make loans & 
loan gu>antees = ref9anc+ loans t 7 made
 = su* purpose to an entity li/$ 9      
p>agraph 7#a74  7b7 ,pref]5ce ,9 mak+   
loans & loan gu>antees "u ?is section1 !
 ,secret>y %all give pref]5ce to        
psy*iatric treatm5t facilities &        
sub/ance abuse treatm5t facilities t    
propose to con/ruct or r5ovate a        
qualifi$ psy*iatric treatm5t facility or
 qualifi$ sub/ance abuse treatm5t       
facility 9 a c\nty t has insuffici5t    

inpati5t psy*iatric or sub/ance abuse   
treatm5t capacity4  7c7 ,t]ms &         
conditions ,loans & loan gu>antees "u   
?is section %all be made on su* t]ms &  
conditions z ! ,secret>y may prescribe1 
subject to ! provisions ( ?is section   
includ+ ! foll[+3  7#a7 ,! ,secret>y may
 all[ cr$it to a prospective borr[] only
 :]e-- 7,a7 x is necess>y to increase ! 
numb] ( psy*iatric or sub/ance use      
disord] treatm5t b$s to enhance !       
public's access to acute inpati5t m5tal 
heal? & sub/ance abuse s]vices2 &  7,b7 
a cr$it subsidy is ! mo/ effici5t way to
 a*ieve su* increase 7on a              
borr[]-by-borr[] basis74  7#b7 ,! f9al  
maturity ( loans made or gu>ante$ "u ?is
 section %all n exce$ a p]iod ( #bj     
ye>s1 or ! p]iod ( #ej p]c5t ( ! useful 
life ( any physical asset to be f9anc$  
by ! loan1 :i*ev] is less z det]m9$ by !
 ,secret>y4  7#c7 ,! ,secret>y may n    
make a loan gu>antee "u ?is section1 )  
respect to any borr[]1 9 excess ( #hj   
p]c5t ( any pot5tial loss on ! loan4    

7#d7 ,! ,secret>y may n make any loan or
 loan gu>antee "u ?is section if ! loan 
w be subord9at$--  7,a7 to ano!r debt   
contract$ by ! borr[]2 or  7,b7 to any  
o!r claims aga9/ ! borr[] 9 ! case (    
default4  7#e7 ,! ,secret>y may n make  
any loan gu>antee "u ?is section unless 
! ,secret>y det]m9es t--  7,a7 ! l5d] is
 responsible2 &  7,b7 adequate provision
 is made = s]vic+ ! loan on reasonable  
t]ms & protect+ ! f9ancial int]e/ ( !   
,unit$ ,/ates4  7#f7 ,! ,secret>y may n 
make any loan gu>antee "u ?is section if
 ! income f ! loan w be exclud$ f gross 
income = purposes ( *apt] #a ( !        
,int]nal ,rev5ue ,code ( #aihf4  7#g7 ,!
 ,secret>y may n make any loan or loan  
gu>antee "u ?is section unless-- 7,a7 ! 
loan & int]e/ supplem5ts on any loan    
gu>antee w be at an int]e/ rate t is set
 by ref]5ce to a b5*m>k int]e/ rate on  
m>ketable ,treasury securities ) a      
simil> maturity to ! loan be+ made or   
gu>ante$2 &  7,b7 ! m9imum int]e/ rate  
on ! loan-- 7i7 w be no less ?an !      

e/imat$ co/ to ! ,gov]nm5t ( mak+ ! loan
 plus #a p]c5t1 ) ! goal ( keep+ !      
int]e/ rate bel[ ! int]e/ rate ( a      
comp>able & competitive private sector  
b5*m>k f9ancial in/rum5t2 &  7ii7 w be  
adju/$1 z det]m9$ by ! ,secret>y1 e     
qu>t] to take acc\nt ( *anges 9 ! int]e/
 rate ( ! b5*m>k f9ancial in/rum5t4     
7#h7 ,! ,secret>y may n make any loan or
 loan gu>antee "u ?is section unless--  
7,a7 fees or premiums on ! loan or loan 
gu>antee & correspond+ insurance cov]age
 w be set at levels t m9imize ! co/ to !
 ,gov]nm5t 7z def9$ 9 section #ejb7e7 ( 
! ,f$]al ,cr$it ,re=m ,act ( #aiij7 (   
insur+ su* loan or loan gu>antee1 :ile  
support+ a*ievem5t ( increas+ ! inpati5t
 psy*iatric & sub/ance abuse b$ c\nt1 z 
applicable1 to enhance ! public's access
 to acute inpati5t m5tal heal? &        
sub/ance abuse s]vices2  7,b7 ! m9imum  
gu>antee fee or insurance premium impos$
 by ! ,gov]nm5t w be no less ?an ! level
 suffici5t to cov] all ( ! e/imat$ co/s 
to ! ,gov]nm5t ( ! expect$ default      

claims1 plus "o p]c5t2 &  7,c7 loan     
gu>antee fees impos$ by ! ,gov]nm5t w be
 review$ e six mon?s to ensure t ! fees 
impos$ on new loan gu>antees are at a   
level suffici5t to satisfy subp>agraph  
7,b7 bas$ on ! mo/ rec5t e/imates ( su* 
co/s4  7#i7 ,! provisions ( any loan    
gu>antee "u ?is section %all /ate t !   
gu>antee is conclusive evid5ce t--  7,a7
 ! gu>antee has be5 prop]ly obta9$2     
7,b7 ! und]ly+ loan qualifi$ = !        
gu>antee2 &  7,c7 except 9 ! case (     
fraud or mat]ial misrepres5tation by !  
hold] ( ! loan1 ! gu>antee w be presum$ 
to be valid1 legal1 & en=ceable4  7#aj7 
,! ,secret>y may n make any loan or loan
 gu>antee "u ?is section unless-- 7,a7 !
 borr[] f9ances at lea/ #be p]c5t ( !   
fund$ project f o!r s\rces2 &  7,b7 !   
borr[] uses funds t 7 n d]iv$ f ,f$]al  
loans or loan gu>antees to pay ! fees or
 premiums on ! loan or loan gu>antee "u 
?is section4  7#aa7 ,! ,secret>y-- 7,a7 
%all prescribe explicit /&>ds = use 9   
p]iodically assess+ ! cr$it risk ( new &

 exi/+ direct loans & gu>ante$ loans2 & 
7,b7 %all n make a loan or loan gu>antee
 "u ?is section unless ! ,secret>y f9ds 
t !re is a reasonable assurance (       
repaym5t4  7d7 ,limitation on ref9anc+  
,! au?ority ve/$ by subsection 7a77#b7--
 7#a7 au?orizes mak+ loans & loan       
gu>antees only = ref9anc+ loans t 7     
ent]$ into on or be=e ! date t is #bd   
mon?s be=e ! date ( enactm5t ( ! ,m5tal 
,heal? & ,sub/ance ,abuse ,treatm5t     
,accessibility ,act ( #bjag2 &  7#b7    
t]m9ates on ! date t is #bd mon?s aft]  
su* date ( enactm5t4  7e7 ,paym5t (     
losses  7#a7 ,default on gu>ante$ loans 
,if1 z a result ( a default by a borr[] 
"u a loan gu>ante$ "u ?is section1 aft] 
! hold] !re( has made su* fur!r         
collection ef=ts & in/itut$ su* en=cem5t
 proce$+s z ! ,secret>y may require1 !  
,secret>y det]m9es t ! hold] has suff]$ 
a loss--  7,a7 ! ,secret>y %all pay to  
su* hold] #ge p]c5t ( su* loss1 z       
specifi$ 9 ! gu>antee contract2  7,b7 ^u
 mak+ any su* paym5t1 ! ,secret>y %all  

be subrogat$ to all ! rights ( !        
recipi5t ( ! paym5t2 &  7,c7 ! ,secret>y
 %all be entitl$ to recov] f ! borr[] ! 
am\nt ( any paym5ts made pursuant to !  
gu>antee contract4  7#b7 ,requir$ en=ce 
( ,f$]al rights ,! ,attorney ,g5]al ( ! 
,unit$ ,/ates %all take su* action z may
 be appropriate to en=ce any "r accru+  
to ! ,unit$ ,/ates z a result ( !       
issuance ( any gu>antee "u ?is section4 
7#c7 ,=be>ance ,no?+ 9 ?is section      
precludes any =be>ance = ! b5efit ( !   
borr[] ( a loan t is made or gu>ante$ "u
 ?is section :i* is agre$ ^u by ! p>ties
 to ! loan & approv$ by ! ,secret>y1    
provid$ t budget au?ority = any result+ 
co/ to ! ,gov]nm5t 7z def9$ 9 section   
#ejb7e7 ( ! ,f$]al ,cr$it ,re=m ,act (  
#aiij7 is available4  7f7 ,def9itions ,9
 ?is section3 7#a7 ,! t]m qualifi$      
psy*iatric treatm5t facility--  7,a7    
means a psy*iatric hospital 7or o!r     
qualifi$ treatm5t facility1 z det]m9$   
appropriate by ! ,secret>y7 t is able to
 s]ve pati5ts ages #ba & old] t--  7i7 w

 provide acute1 %ort-t]m inpati5t       
psy*iatric treatm5t s]vices = su*       
pati5ts2  7ii7 w provide outpati5t      
s]vices2 &  7iii7 may include a milit>y 
s]vices program to meet ! ne$s ( active 
& retir$ milit>y s]vicememb]s2 &  7,b7  
excludes a facility t-- 7i7 provides    
long-t]m inpati5t c>e2  7ii7 is a heal? 
c5t] 7z def9$ 9 section #ccj72 &  7iii7 
is "p ( or affiliat$ ) a prison 7z def9$
 9 section #bbdf ( title #ah1 ,unit$    
,/ates ,code74  7#b7 ,! t]m qualifi$    
sub/ance abuse treatm5t facility-- 7,a7 
means a psy*iatric hospital 7or o!r     
qualifi$ treatm5t facility1 z det]m9$   
appropriate by ! ,secret>y7 t is able to
 s]ve pati5ts ages #ba & old] t--  7i7 w
 provide acute1 %ort-t]m inpati5t       
sub/ance abuse treatm5t s]vices = su*   
pati5ts2  7ii7 w provide outpati5t      
s]vices2 &  7iii7 may include a milit>y 
s]vices program to meet ! ne$s ( active 
& retir$ milit>y s]vicememb]s2 &  7,b7  
excludes any facility describ$ 9        
p>agraph 7#a77;,b74  7#c7 ,! t]m        

psy*iatric hospital means--  7,a7 an    
in/itution t-- 7i7 is prim>ily engag$ 9 
provid+1 by or "u ! sup]vision ( "o or m
 physicians1 psy*iatric s]vices = !     
diagnosis & treatm5t ( m5tally ill      
p]sons or ^? suff]+ f sub/ance abuse    
disord]s2  7ii7 satisfies ! requirem5ts 
( p>agraphs 7#c7 ?r\gh 7#i7 ( subsection
 7e7 ( section #ahfa ( ! ,social        
,security ,act2  7iii7 ma9ta9s cl9ical  
records on all pati5ts & ma9ta9s su*    
records z ! ,secret>y f9ds to be        
necess>y to det]m9e ! degree & int5sity 
( ! treatm5t provid$ to individuals     
entitl$ to hospital insurance b5efits "u
 "p ,a ( title ,,xviii ( ! ,social      
,security ,act2 &  7iv7 meets su* /aff+ 
requirem5ts z ! ,secret>y f9ds necess>y 
= ! in/itution to c>ry out an active    
program ( treatm5t = individuals :o are 
furni%$ s]vices 9 ! in/itution2 or  7,b7
 a di/9ct "p ( an in/itution t satisfies
 clauses 7i7 & 7ii7 ( subp>agraph 7,a7  
if su* di/9ct "p satisfies clauses 7iii7
 & 7iv7 ( subp>agraph 7,a74  7g7 ,fund+ 

limitations ,! ,secret>y may provide    
loans & loan gu>antees "u ?is section-- 
7#a7 only to ! ext5t or 9 ! am\nts      
provid$ 9 advance 9 appropriation ,acts2
 &  7#b7 total+ n m ?an #bjj1jjj1jjj 9  
ea* ( fiscal ye>s #bjah ?r\gh #bjbb4  4 
#c4 ,m5tal ,heal? & ,sub/ance ,use      
,treatm5t ,tru/ ,fund  7a7 ,e/abli%m5t  
,!re is e/abli%$ 9 ! ,treasury ( !      
,unit$ ,/ates a tru/ fund to be kn[n z !
 ,m5tal ,heal? & ,sub/ance ,use         
,treatm5t ,tru/ ,fund 79 ?is section    
ref]r$ to z ! ,tru/ ,fund74  7b7        
,deposits ,!re are h]eby au?oriz$ to be 
appropriat$ to ! ,tru/ ,fund1 to rema9  
available until exp5d$1 am\nts equival5t
 to any rev5ues f ! program ( loans &   
loan gu>antees "u section #cii,v-#g ( ! 
,public ,heal? ,s]vice ,act1 z add$ by  
section #b1 t exce$ ! co/s ( c>ry+ out  
su* program4  7c7 ,use ( fund ,am\nts 9 
! ,tru/ ,fund %all be available1 z      
provid$ by appropriation ,acts1 = block 
grants = community m5tal heal? s]vices  
"u subp>t ,i ( "p ,b ( title ,,xix ( !  

,public ,heal? ,s]vice ,act 7#db        
,u4,s4,c4 #cjjx et seq474  #d4 ,s5se (  
,congress ,x is ! s5se ( ,congress t    
rev]s+ ! ,f$]al policy ( d5y+ ,f$]al    
f9ancial p>ticipation "u ! ,m$icaid     
program = c>e & s]vices = pati5ts 9 an  
in/itution = m5tal diseases is          
critically important to improv+ access  
to m5tal heal? c>e s]vices & treatm5t4