,i  #aah? ,,congress  #b;d ,session  ,h4
 ,r4 #geci  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,m>* #e1 #bjbd,mr4    
,fitzpatrick 7= himself & ,mr4 ,bi%op ( 
,georgia7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,en]gy &     
,comm]ce  ,a ,,bill  ,to require !      
,secret>y ( ! ,treasury to gu>antee     
,bio,bonds 9 ord] to provide fund+ =    
loans to eligible biom$ical companies & 
univ]sities to c>ry out cl9ical trials  
approv$ by ! ,food & ,drug              
,adm9i/ration1 & = o!r purposes4  #a4   
,%ort title ,?is ,act may be cit$ z !   
,long-t]m ,opportunities = ,advanc+ ,new
 ,/udies = ,biom$ical ,rese>* ,act or ! 
,,loans = ,biom$ical ,rese>* ,act4  #b4 
,biobonds program  7a7 ,9 g5]al ,n lat] 
?an #ahj days aft] ! date ( enactm5t (  
?is ,act1 ! ,secret>y ( ! ,treasury1 9  
consultation ) ! ,secret>y ( ,heal? &   
,human ,s]vices1 %all e/abli% a program1
 to be kn[n z ! ,bio,bonds ,program1 to 
increase innovative biom$ical rese>*    
into !rapies to address unmet m$ical    

ne$s1 "u :i* biom$ical rese>*]s seek+ to
 conduct cl9ical trials ) respect to a  
drug or device1 b :o _c secure          
appropriate fund+ to conduct su* trials1
 receive f9ancial assi/ance ?r\gh-- 7#a7
 ! pur*as+ ( loans by fiscal ag5ts "u   
section #c2 &  7#b7 ! sale & gu>antee ( 
,bio,bonds collat]aliz$ by su* loans "u 
section #d4  7b7 ,biom$ical rese>*]s    
eligible = f9ancial assi/ance  7#a7 ,9  
g5]al ,a p]son %all be eligible to      
receive a loan "u ! ,bio,bonds ,program 
if su* p]son is conduct+ or seek+ to    
conduct rese>* ) respect to a drug or   
device t is-- 7,a7 int5d$ = use to meet 
an unmet m$ical ne$ 7z det]m9$ by !     
,secret>y ( ,heal? & ,human ,s]vices72 &
  7,b7 "u inve/igation 9 a controll$    
cl9ical trial "u-- 7i7 an inve/igational
 drug application 9 effect "u section   
#eje7;i7 ( ! ,f$]al ,food1 ,drug1 &     
,cosmetic ,act 7#ba ,u4,s4,c4 #cee7;i77 
or section #cea7;a77#c7 ( ! ,public     
,heal? ,s]vice ,act 7#db ,u4,s4,c4      
#bfb7;a77#c77 7z applicable72 or  7ii7  

an inve/igational device exemption 9    
effect "u section #ebj7;g7 ( ! ,f$]al   
,food1 ,drug1 & ,cosmetic ,act 7#ba     
,u4,s4,c4 #cfj;j7g774  7#b7 ,rulemak+ ,!
 ,secret>y ( ! ,treasury1 9 consultation
 ) ! ,secret>y ( ,heal? & ,human        
,s]vices1 %all issue rules to c>ry out  
?is subsection4  #c4 ,pur*ase ( loans by
 fiscal ag5ts  7a7 ,9 g5]al ,fiscal     
ag5ts %all pur*ase loans-- 7#a7 made to 
an eligible recipi5t "u section #b7;b7 =
 ! purpose ( conduct+ ! applicable      
cl9ical trial describ$ 9 t section2 &   
7#b7 ) respect to :i* ! fiscal ag5t     
det]m9es t ! borr[] has ! ability to    
repay ! loan1 bas$ on collat]al &       
f9ancial capabilities & n on ! prospects
 = success ( ! cl9ical trial4  7b7      
,priority = pur*ase ( loans ,! ,secret>y
 ( ! ,treasury %all issue rules to      
require fiscal ag5ts1 9 pur*as+ loans "u
 ?is section1 to pur*ase loans ) respect
 to a div]se range ( biom$ical projects 
& n to favor "o disease or disability1 &
 to give priority to loans ) pot5tial to

 address unmet public heal? ne$s across 
! spectrum ( diseases & disabilities2   
7c7 ,maximum loan am\nt ,a fiscal ag5t  
may n pur*ase loans 9 any "o ye> )      
respect to a s+le recipi5t 9 an am\nt m 
?an #be1jjj1jjj4  7d7 ,loan t]ms &      
conditions  7#a7 ,9 g5]al ,! ,secret>y (
 ! ,treasury1 9 consultation ) !        
,secret>y ( ,heal? & ,human ,s]vices1   
%all issue rules-- 7,a7 to e/abli%      
crit]ia = ! t]ms = loans t are eligible 
= pur*ase "u ?is section2  7,b7 to      
e/abli% crit]ia = ! int]e/ rate = loans 
t are eligible = pur*ase "u ?is section1
 :i* %all be bas$ on applicable rates = 
obligations ( ! ,dep>tm5t ( ! ,treasury 
( comp>able maturity plus a rate to be  
det]m9$ by ! ,secret>y ( ! ,treasury to 
reflect-- 7i7 prevail+ m>ket conditions2
  7ii7 taxpay] protection2 &  7iii7 !   
ne$ to ensure ample fund+ = cl9ical     
trials describ$ 9 section #b2  7,c7 9   
accordance ) p>agraph 7#b71 to e/abli%  
an upfront fee ( n great] ?an #a p]c5t (
 ea* loan pr9cipal am\nt at orig9ation  

to cov] adm9i/rative & f9anc+ co/s      
associat$ ) ! loans eligible = pur*ase  
"u ?is section2 &  7,d7 to p]mit ! use (
 w>rants & simil> in/rum5ts ) respect to
 loans t are eligible = pur*ase "u ?is  
section1 :]e necess>y to protect taxpay]
 int]e/s4  7#b7 ,fees  7,a7 ,9 g5]al    
,fees e/abli%$ "u p>agraph 7#a77;,c7    
%all be f9anc$ by addition ( !          
appropriate am\nt reflect+ ea* upfront  
fee to ! balance ( ea* loan ^u          
orig9ation & %all be collect$ 9 conc]t )
 all loan paym5ts collect$ by ! fiscal  
ag5t4  7,b7 ,requirem5t ,if a loan is   
repaid ahead ( its /at$ maturity1       
becomes del9qu5t1 or defaults1 !n ! full
 unpaid balance ( a fee e/abli%$ "u     
p>agraph 7#a77;,c7 t rema9s at su* "t   
%all be add$ to ! pr9cipal t mu/ be     
fully satisfi$4  #d4 ,bio,bonds  7a7    
,issuance ,ea* fiscal ag5t t pur*ases a 
loan "u section #c %all issue bonds1 to 
be kn[n z ,bio,bonds1 collat]aliz$ by   
su* loans1 & sell ! ,bio,bonds to       
inve/ors4  7b7 ,bio,bond gu>antee ,!    

,secret>y ( ! ,treasury %all provide a  
gu>antee ( n great] ?an #ij p]c5t ( !   
paym5t ( pr9cipal 7b n ! paym5t (       
int]e/7 = a ,bio,bond4  7c7 ,auctions ,!
 ,secret>y ( ! ,treasury may-- 7#a7     
au?orize fiscal ag5ts to use an auction 
to select ! pur*as]s ( ,bio,bonds2 &    
7#b7 require su* auction to include a   
process t m9imizes ! risk to ! ,f$]al   
,gov]nm5t ( ! ,f$]al gu>antee involv$ by
 all[+ bidd]s = a ,bio,bond to compete  
aga9/ ea* o!r by bidd+ on ! p]c5tage ( !
 ,f$]al gu>antee "u subsection 7b7 )    
respect to ! ,bio,bond1 ) ! bid = ! l[e/
 p]c5tage w9n+ ! auction1 tak+ into     
acc\nt o!r t]ms & conditions set by !   
issu] to ensure ! l[e/ total co/ to !   
,f$]al ,gov]nm5t4  7d7 ,portfolio       
div]sity ,) respect to an issuance (    
,bio,bonds & ! loans collat]aliz+ su*   
issuance1 n great] ?an #ae p]c5t ( !    
pr9cipal am\nt ( su* issuance may relate
 to a gr\p ( relat$ diseases or         
disabilities 7z def9$ by ! ,secret>y (  
,heal? & ,human ,s]vices74  7e7         

,prioritization ( taxpay] int]e/s ,all  
proce$s receiv$ f ,biobond issuance %all
 be inve/$ 9 obligations ( ! ,f$]al     
,gov]nm5t 9 ord] to ensure a rev5ue     
/ream 9 addition to loan repaym5t t     
protects taxpay]s4 ,all ,bio,bonds %all 
be /ructur$ to give fir/ priority to    
protect+ ! int]e/s ( ! ,unit$ ,/ates by 
ensur+ t-- 7#a7 all ca% proce$s receiv$ 
f ! repaym5t ( a ,bio,bond & income     
d]iv$ f loan-proce$ re9ve/m5t are fir/  
us$ to r$uce ! am\nt ( pr9cipal gu>ante$
 by ! ,secret>y ( ! ,treasury2  7#b7 !  
,secret>y ( ! ,treasury has a s5ior     
claim on all assets & collat]al "u a    
,bio,bond to ! ext5t ! gu>antee provid$ 
by ! ,secret>y is n ext+ui%$2 &  7#c7 to
 ! ext5t t a ,biobond is fully repaid   
)\t resort to ! gu>antee1 all proce$s f 
re9ve/$ funds %all be ! prop]ty ( !     
,unit$ ,/ates4  7f7 ,rule ( con/ruction 
,no?+ 9 ?is section may be con/ru$ to   
prohibit und]writ]s f v>y+ t]ms &       
conditions consi/5t ) ! rules issu$ by !
 ,secret>y ( ! ,treasury ) respect to   

,bio,bonds4  #e4 ,fiscal ag5ts  7a7 ,9  
g5]al ,! ,secret>y ( ! ,treasury %all   
contract ) in/itutions to c>ry out !    
duties ( fiscal ag5ts "u ?is ,act1 "u   
su* crit]ia z ! ,secret>y det]m9es      
appropriate4  7b7 ,s\nd und]writ+       
practices ,! ,secret>y ( ! ,treasury    
%all issue rules to ensure t fiscal     
ag5ts use s\nd und]writ+ practices t    
protect ! int]e/s (-- 7#a7 ! ,unit$     
,/ates2  7#b7 ,bio,bond inve/ors2 &     
7#c7 ! long-t]m promotion ( innovative  
biom$ical rese>* into !rapies to address
 unmet m$ical ne$s4  7c7 ,comp5sation ,a
 fiscal ag5t %all be comp5sat$ = p]=m+  
duties "u ?is ,act f ! proce$s f ! sale 
( ,biobonds issu$ by ! fiscal ag5t1 at  
su* rate & on su* t]ms z ! ,secret>y ( !
 ,treasury may provide4  7d7 ,rulemak+  
,n lat] ?an #ahj days aft] ! date (     
enactm5t ( ?is ,act1 ! ,secret>y ( !    
,treasury %all issue f9al rules to c>ry 
out ?is section4  #f4 ,reports  7a7     
,,gao /udy & reports on o!r rese>*      
projects  7#a7 ,ongo+ /udy ,!           

,comptroll] ,g5]al ( ! ,unit$ ,/ates    
%all c>ry out an ongo+ /udy to consid]  
:e!r a program simil> to ! ,bio,bonds   
,program %\ld be e/abli%$ = o!r         
biom$ical rese>* projects4  7#b7 ,report
 ,! ,comptroll] ,g5]al %all issue a     
report to ! ,congress1 n less frequ5tly 
?an annually1 on all f9d+s &            
det]m9ations made 9 c>ry+ out ! /udy    
requir$ "u p>agraph 7#a74  7b7 ,reports 
on ! ,bio,bonds ,program ,n lat] ?an #b 
ye>s aft] ! date on :i* ,bio,bonds are  
fir/ issu$1 & annually !reaft] dur+ !   
p]iod end+ on ! date t is #d ye>s aft] !
 date on :i* ,bio,bonds are fir/ issu$1 
! ,comptroll] ,g5]al & ! ,secret>y ( !  
,treasury1 9 consultation ) ! ,secret>y 
( ,heal? & ,human ,s]vices1 %all ea*    
issue a sep>ate report to ! ,congress   
on-- 7#a7 ! progress ( ! issuance (     
,bio,bonds2  7#b7 ! reasons = any       
problems a*iev+ desir$ volumes (        
,bio,bonds or ! ability ( ! ,bio,bonds  
,program to proce$ at a fa/] pace2  7#c7
 an analysis ( ! risk to ! ,gov]nm5t 9  

provid+ ! ,f$]al gu>antee describ$ "u   
section #d7;b72  7#d7 any recomm5d$     
improvem5ts to ! ,bio,bonds ,program2 & 
7#e7 any o!r matt] t ! ,comptroll]      
,g5]al or ! ,secret>y1 respectively1    
det]m9es is appropriate4  #g4           
,au?orization ( appropriations  7a7 ,9  
g5]al ,!re is au?oriz$ to be appropriat$
 to ! ,secret>y ( ! ,treasury to pay = !
 co/ ( gu>antee+ ,bio,bonds "u ?is ,act 
#aj1jjj1jjj1jjj = ea* ( fiscal ye>s     
#bjbe1 #bjbf1 & #bjbg4  7b7 ,program    
fund+  7#a7 ,adm9i/rative exp5ses paid f
 bond sales ,except z provid$ "u        
p>agraph 7#b71 ! co/ ( c>ry+ out ?is    
,act1 includ+ ! co/ to ! ,secret>y ( !  
,treasury 9 adm9i/]+ ! ,bio,bond        
,program1 %all be recov]$ f ! proce$s f 
! sale ( ,bio,bonds or f fees z set =? 9
 p>agraph 7#c74  7#b7 ,specific         
appropriation or contribution ,no       
gu>antee %all be made "u ?is ,act       
unless-- 7,a7 an appropriation = ! full 
co/ ( ! gu>antee has be5 made2  7,b7 !  
,secret>y has receiv$ f ! ,bio,bond     

issu] a paym5t 9 full = ! co/ ( !       
gu>antee2 or  7,c7 a comb9ation ( an    
appropriation & ! deposit ( a paym5t f !
 ,bio,bond issu] has be5 made 9 a       
suffici5t am\nt to cov] ! full co/ ( !  
gu>antee4  7#c7 ,gu>antee fees ,!       
,secret>y ( ! ,treasury %all *>ge &     
collect fees = gu>antees "u ?is ,act 9  
am\nts ! ,secret>y det]m9es are         
suffici5t to recov] applicable          
adm9i/rative exp5ses1 & su* fees-- 7,a7 
%all be available to ! ,secret>y1 )\t   
fur!r appropriation1 to pay = !         
adm9i/rative exp5ses relat$ to gu>antees
 "u ?is ,act2 &  7,b7 are au?oriz$ to   
rema9 available until exp5d$4  #h4      
,def9itions ,9 ?is ,act1 ! foll[+       
def9itions apply3 7#a7 ,co/ ,! t]m co/  
has ! mean+ giv5 to ! t]m co/ ( a loan  
gu>antee 9 section #ejb7e77;,c7 ( !     
,f$]al ,cr$it ,re=m ,act ( #aiij 7#b    
,u4,s4,c4 #ffa;a7#e77;,c774  7#b7       
,eligible recipi5t ,! t]m eligible      
recipi5t means a p]son describ$ "u      
section #b7;b74  7#c7 ,fiscal ag5t ,!   

t]m fiscal ag5t means a p]son select$ z 
a fiscal ag5t "u section #e7;a74