NOTICE OF LEGISLATIVE MANDATES CONTAINED IN THE OMNIBUS CONSOLIDATED FISCAL YEAR 1998 APPROPRIATIONS ACT, P.L. 105-78, SIGNED NOVEMBER 13, 1997: Release Date: February 12, 1998 P.T. National Institutes of Health The purpose 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: (1) Continued Salary Limitation (Section 204) (2) Anti-Lobbying (Section 503) (3) Restriction on Distribution of Sterile Needles (Section 505 and 506) (4) Purchase of American-Made Equipment and Products (Section 507) (5) Acknowledgment of Federal Funding (Section 508) (6) Ban on Funding of Human Embryo Research (Section 513) (7) Limitation on Use of Funds for Promotion of Legalization of Controlled Substances (Section 514) (1) CONTINUED SALARY LIMITATION (Section 204) None of the FY 1998 appropriated funds for the National Institutes of Health and the Substance Abuse and Mental Health Services Administration shall be used to pay the salary of an individual, through a grant, cooperative agreement, or contract, at a rate in excess of $125,000 per year. Please reference related information in this issue of the NIH Guide. Applications and proposals with direct salaries for individuals in excess of $125,000 per year will be adjusted in accordance with the legislative salary limitation. (2) ANTI-LOBBYING (Section 503) Language in this Act prohibits the use of appropriated funds to pay the salary or expenses of any grant, cooperative agreement, or contract recipient or agent acting for such recipient, related to any activity designed to influence legislation or appropriations pending before Congress or any State legislature. Specifically, this provision also prohibits the use of funds 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. (3) RESTRICTION ON DISTRIBUTION OF STERILE NEEDLES (Section 505 & 506) Section 505 prohibits the use of funds to implement any program involving distribution of sterile needles or syringes for the hypodermic injection of any illegal drug. Section 505, however, is subject to the condition stated in Section 506. Specifically, Section 506 states that after March 31, 1998, a program for exchanging needles and syringes for used hypodermic needles and syringes may be carried out in a community if: (1) the Secretary of Health and Human Services determines that exchange projects are effective in preventing the spread of HIV and do not encourage the use of illegal drugs, and (2) the project is operated in accordance with criteria established by the Secretary for preventing the spread of HIV and for ensuring that the project does not encourage the use of illegal drugs. (4) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS (Section 507) It continues to be the sense of Congress that, to the greatest extent practicable, all equipment and products purchased with grant, cooperative agreement, or contract funds should be American-made. Individuals convicted of intentionally affixing false Made in America labels to products sold in or shipped to the United States will be ineligible from receiving any contract or subcontract funds made available through this Act. (5)ACKNOWLEDGMENT OF FEDERAL FUNDING (Section 508) Section 508 mandates that all grantees funded with Federal dollars, in whole or in part, acknowledge Federal funding when issuing statements, press releases, requests for proposals, bid solicitations and other documents. Grantees are required to state (1) the percentage and dollar amounts of the total program or project costs financed with Federal money, and (2) the percentage and dollar amount of the total costs of the project or program financed by nongovernmental sources. (6)BAN ON FUNDING OF HUMAN EMBRYO RESEARCH (Section 513) Section 513 reinstates the current ban that prohibits NIH from using appropriated funds to support human embryo research. Grant, cooperative agreement and contract funds may not be used for (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 (42U.S.C.289g(b)). 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 Act, that is derived by fertilization, parthenogenesis, cloning, or any other means from one or more human gametes or human diploid cells. (7) LIMITATION ON USE OF FUNDS FOR PROMOTION OF LEGALIZATION OF CONTROLLED SUBSTANCES (Section 514) Section 514 prohibits Federal officials from knowingly using appropriated funds to support activities that promote 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). The limitation shall not apply when it is made known to the Federal official having authority to obligate or expend such funds that 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 concerning this notice or other policies relating to grants or contracts, please refer to the Grants Policy portion (http://grants.nih.gov/grants/policy/policy.htm) of the NIH Home Page (http://www.nih.gov). Appropriate links to related regulations and policies will be provided with the copy of this notice when posted. If additional questions remain, please contact your awarding grants or contracts management office in the NIH Institutes and Centers.

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