[Code of Federal Regulations]

[Title 42, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR52b.9]



[Page 204-205]

 

                         TITLE 42--PUBLIC HEALTH

 

    CHAPTER I--PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN 

                                SERVICES

 

PART 52b_NATIONAL INSTITUTES OF HEALTH CONSTRUCTION GRANTS--Table of 

Contents

 

Sec. 52b.9  What is the right of the United States to recover Federal 

funds when facilities are not used for research or are transferred?



    (a) If the grantee plans to cease using the facility for the 

particular biomedical research or training purposes for which it was 

constructed as required by Sec. 52b.7 (or alternate use authorized 

under Sec. 52b.7(a) or paragraph (c) of this section), or the grantee 

decides to sell or transfer title to an entity ineligible for a grant 

under Sec. 52b.3, the grantee shall request disposition instructions 

from NIH in the form and



[[Page 205]]



manner as the Director may prescribe. Those instructions shall provide 

for one of the following alternatives:

    (1) The facility may be sold and the grantee or transferee shall pay 

to the United States an amount computed by multiplying the federal share 

of the facility times the proceeds from the sale (after deducting the 

actual and reasonable selling and fix-up expenses, if any, from the 

sales proceeds). The sales procedures must provide for competition to 

the extent practicable, and be designed to provide the highest possible 

return;

    (2) The grantee may retain title and shall pay to the United States 

an amount computed by multiplying the current fair market value of the 

facility by the federal share of the facility; or

    (3) The grantee shall transfer the title to either the United States 

or to an eligible non-federal party approved by the Director. The 

grantee shall be entitled to be paid an amount computed by multiplying 

the current fair market value of the facility by the nonfederal share of 

the facility.

    (b) The grantee or transferor of a facility which is sold or 

transferred, or the owner of a facility the use of which has changed, as 

described in paragraph (a) of this section, shall report that action in 

writing to the Director not later than 10 days from the date on which 

the sale, transfer, or change occurs, in the form and manner as the 

Director may prescribe.

    (c) In lieu of disposition of a facility pursuant to the provisions 

of paragraph (a) of this section, the Director may, for good cause, 

supported by assurances provided by the grantee or transferee, approve 

one of the following alternatives:

    (1) Transfer of the remaining usage obligation to facilities of 

substantially comparable or greater value or utility, to carry out the 

biomedical research or training purpose for which the grant was awarded. 

In this event, the remaining usage obligation shall be released from the 

original facility constructed with grant funds and transferred to the 

new facility, and the grantee shall remain subject to all other 

requirements imposed under this part with respect to the new facility; 

or

    (2) Use the facility for as long as needed, in order of priority, 

for one of the following purposes:

    (i) For other health related activities consistent with the purposes 

of one or more of the activities of the awarding institute as authorized 

under title IV or other provisions of the Act;

    (ii) To provide training and instruction in the health fields for 

health professionals or health related information programs for the 

public; or

    (iii) Other health related purposes consistent with one or more of 

the purposes authorized under the Act.

    (d) The right of recovery of the United States set forth in 

paragraph (a) of this section shall not, prior to judgment, constitute a 

lien on any facility supported in whole or in part by a federal grant, 

including a construction grant under this part.

    (e) Any amount required to be paid to the United States under this 

section will be paid to the awarding institute for disposition as 

required by law.



(Approved by the Office of Management and Budget under Control Number 

0925-0424; expires November 30, 2001)