NOTICE OF LEGISLATIVE MANDATES CONTAINED IN THE FY 2004 CONSOLIDATED 
APPROPRIATIONS RESOLUTION P.L. 108-199; SIGNED January 23, 2004
 
RELEASE DATE:  February 13, 2004
 
NOTICE:  NOT-OD-04-026
 
National Institutes of Health (NIH)
 (http://www.nih.gov/)
 
The intent of this Notice is to provide information on the following 
statutory provisions that limit the use of funds on National Institutes 
of Health (NIH) grant, cooperative agreement, and contract awards for 
FY 2004.  The legislative mandates for FY 2003 were published on March 
18, 2003, NIH Guide Notice, NOT-OD-03-035:
 
(1) Continued Salary Limitation (204)
(2) Anti-Lobbying (Section 503)
(3) Restriction on Distribution of Sterile Needles (Section 505)
(4) Purchase of American –Made Equipment and Products (Section 506)
(5) Acknowledgment of Federal Funding (Section 507)
(6) Restriction on Abortions (Section 508)
(7) Ban on Funding Human Embryo Research (Section 510)
(8) Limitation on Use of Funds for Promotion of Legalization of 
    Controlled Substances (Section 511)

(1) CONTINUED SALARY LIMITATION (Section 204)
 
"None of the funds appropriated in this Act for the National Institutes 
of Health, the Agency for Healthcare Research and Quality, and the 
Substance Abuse and Mental Health Services Administration shall be used 
to pay the salary of an individual, through a grant or other extramural 
mechanism, at a rate in excess of Executive Level I." Executive Level I 
of the Federal Executive Pay Scale effective October 1, 2003 through 
December 31, 2004 was $171,900. Effective January 1, 2004, this amount 
increased to $174,500. Applications and proposals with categorical 
direct cost budgets reflecting direct salaries for individuals in 
excess of Executive Level I per year will be adjusted in accordance 
with the legislative salary limitation.  Please refer to NIH GUIDE 
NOTICE, NOT-OD-04-025.

(2) ANTI-LOBBYING (Section 503)
 
"No part of any appropriation contained in this Act shall be used, 
other than for normal and recognized executive-legislative 
relationships, for publicity or propaganda purposes, for the 
preparation, distribution, or use of any kit, pamphlet, booklet, 
publication, radio, television, or video presentation designed to 
support or defeat legislation pending before the Congress or any 
State legislature, except in presentation to the Congress or any State 
legislature itself. In addition, no part of any appropriation contained 
in this Act shall be used to pay the salary or expenses of any grant or 
contract recipient, or agent acting for such recipient, related to any 
activity designed to influence legislation or appropriations pending 
before the Congress or any State legislature." 

(3) RESTRICTION ON DISTRIBUTION OF STERILE NEEDLES (Section 505)       

"Notwithstanding any other provision of this Act, no funds appropriated 
under this Act shall be used to carry out any program of distributing 
sterile needles or syringes for the hypodermic injection of any illegal 
drug."
 
(4) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS (Section 506)
 
"(a) It is the sense of the Congress that, to the greatest extent 
practicable, all equipment and products purchased with funds made 
available in this Act should be American-made. (b)In providing 
financial assistance to, or entering into any contract with, any entity 
using funds made available in this Act, the head of each Federal 
agency, to the greatest extent practicable, shall provide to such 
entity a notice describing the statement made in subsection (a) by the 
Congress. (c) If it has been finally determined by a court or Federal 
agency that any person intentionally affixed a label bearing a “Made in 
America” inscription, or any inscription with the same meaning, to any 
product sold in or shipped to the United States that is not made in the 
United States, the person shall be ineligible to receive any 
contract or subcontract made with funds made available in this Act, 
pursuant to the debarment, suspension, and ineligibility procedures 
described in sections 9.400 through 9.409 of title 48, Code of Federal 
Regulations."

(5) ACKNOWLEDGMENT OF FEDERAL FUNDING (Section 507)
 
"When issuing statements, press releases, requests for proposals, bid 
solicitations and other documents describing projects or programs 
funded in whole or in part with Federal money, all grantees receiving 
Federal funds included in this Act, including but not limited to State 
and local governments and recipients of Federal research grants, shall 
clearly state: 

(1) the percentage of the total costs of the program or project which 
will be financed with Federal money; (2) the dollar amount of Federal 
funds for the project or program; and (3) percentage and dollar amount 
of the total costs of the project or program that will be financed by 
non-governmental sources."

(6) RESTRICTION ON ABORTIONS (Section 508)

"(a) None of the funds appropriated under this Act, and none of the 
funds in any trust fund to which funds are appropriated under this Act, 
shall be expended for any abortion."

(7) BAN ON FUNDING OF HUMAN EMBRYO RESEARCH (Section 510)
 
This section continues the current ban that prohibits NIH from using 
appropriated funds to support human embryo research.  No grant, 
cooperative agreement, or contract funds may be used for: "(a)(1) the 
creation of a human embryo or embryos for research purposes; or 
(2)research in which a human embryo or embryos are destroyed, 
discarded, or knowingly subjected to risk of injury or death greater 
than that allowed for research on fetuses in utero under 45 CFR 
46.208(a)(2) and section 498(b) of the Public Health Service Act (42 
U.S.C. 289g(b)). (b) For purposes of this section, the term “human 
embryo or embryos” includes any organism not protected as a human 
subject under 45 CFR 46 as of the date of the enactment of this Act, 
that is derived by fertilization, parthenogenesis, cloning, or any 
other means from one or more human gametes or human diploid cells."
 
The NIH has published final guidelines on stem cell research that 
relates to this topic.  The URL is http://stemcells.nih.gov/index.asp.

(8) LIMITATION ON USE OF FUNDS FOR PROMOTION OF LEGALIZATION OF       
CONTROLLED SUBSTANCES (Section 511)
                
"(a) None of the funds made available in this Act may be used for any 
activity that promotes the legalization of any drug or other substance 
included in schedule I of the schedules of controlled substances 
established by section 202 of the Controlled Substances Act (21 
U.S.C.812). (b)The limitation in subsection (a) shall not apply when 
there is significant medical evidence of a therapeutic advantage to the 
use of such drug or other substance or that federally sponsored 
clinical trials are being conducted to determine therapeutic 
advantage."

INQUIRIES
 
For more information on grants policy, please visit: 
http://grants.nih.gov/grants/policy/policy.htm.  For more information 
on contracts policy, please visit: 
http://ocm.od.nih.gov/contracts/contract.htm.  

If additional questions remain, after visiting the posted websites, 
please contact the awarding grants or contracts management office in 
the appropriate NIH Institutes and Centers.


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