1.This Act may be cited as the
Veterans Nonprofit Research and
Education Corporations Enhancement Act of 2009
.
2.General
authorities on establishment of corporations
(a)Authorization of
multi-medical center research corporations
(1)Section 7361 of title 38, United States Code, is
amended—
(A)by redesignating
subsection (b) as subsection (e); and
(B)by inserting after
subsection (a) the following new subsection (b):
(b)(1)Subject to paragraph
(2), a corporation established under this subchapter may facilitate the conduct
of research, education, or both at more than one medical center. Such a
corporation shall be known as a multi-medical center research
corporation
.
(2)The board of directors of a
multi-medical center research corporation under this subsection shall include
the official at each Department medical center concerned who is, or who carries
out the responsibilities of, the medical center director of such center as
specified in section 7363(a)(1)(A)(i) of this title.
(3)In facilitating the conduct of
research, education, or both at more than one Department medical center under
this subchapter, a multi-medical center research corporation may administer
receipts and expenditures relating to such research, education, or both, as
applicable, performed at the Department medical centers
concerned.
.
(2)Expansion of
existing corporations to multi-medical center research
corporationsSuch section is further amended by adding at the end
the following new subsection:
(f)A corporation
established under this subchapter may act as a multi-medical center research
corporation under this subchapter in accordance with subsection (b) if—
(1)the board of
directors of the corporation approves a resolution permitting facilitation by
the corporation of the conduct of research, education, or both at the other
Department medical center or medical centers concerned; and
(2)the Secretary
approves the resolution of the corporation under paragraph
(1).
.
(b)Restatement and
modification of authorities on applicability of State law
(1)Section 7361 of such title, as amended by subsection (a)
of this section, is further amended by inserting after subsection (b) the
following new subsection (c):
(c)Any corporation
established under this subchapter shall be established in accordance with the
nonprofit corporation laws of the State in which the applicable Department
medical center is located and shall, to the extent not inconsistent with any
Federal law, be subject to the laws of such State. In the case of any
multi-medical center research corporation that facilitates the conduct of
research, education, or both at Department medical centers located in different
States, the corporation shall be established in accordance with the nonprofit
corporation laws of the State in which one of such Department medical centers
is
located.
.
(2)Section 7365 of such title is repealed.
(c)Clarification of
status of corporationsSection 7361 of such title, as amended by
this section, is further amended—
(1)in subsection (a),
by striking the second sentence; and
(2)by inserting after
subsection (c) the following new subsection (d):
(d)(1)Except as otherwise
provided in this subchapter or under regulations prescribed by the Secretary,
any corporation established under this subchapter, and its officers, directors,
and employees, shall be required to comply only with those Federal laws,
regulations, and executive orders and directives that apply generally to
private nonprofit corporations.
(2)A corporation under this subchapter
is not—
(A)owned or controlled by the United
States; or
(B)an agency or instrumentality of the
United
States.
.
(d)Reinstatement of
requirement for 501(c)(3) status of corporationsSubsection (e)
of section 7361 of such title, as redesignated by subsection (a)(1) of this
section, is further amended by inserting section 501(c)(3) of
after exempt from taxation under
.
3.Clarification of
purposes of corporations
(a)Clarification of
purposesSubsection (a) of section 7362 of title 38, United
States Code, is amended in the first sentence—
(1)by striking
Any corporation
and all that follows through
facilitate
and inserting A corporation established under
this subchapter shall be established to provide a flexible funding mechanism
for the conduct of approved research and education at one or more Department
medical centers and to facilitate functions related to the conduct of
;
and
(2)by inserting
before the period at the end the following: or centers
.
(b)Modification of
defined term relating to education and trainingSubsection (b) of
such section is amended in the matter preceding paragraph (1) by striking
the term education and training
and inserting
the term education includes education and training
and
.
(c)Repeal of role
of corporations with respect to fellowshipsParagraph (1) of
subsection (b) of such section is amended by striking the flush matter
following subparagraph (C).
(d)Availability of
education for families of veteran patientsParagraph (2) of
subsection (b) of such section is amended by striking to patients and to
the families
and inserting and includes education and training
for patients and families
.
4.Modification of
requirements for boards of directors of corporations
(a)Requirements for
department board membersParagraph (1) of section 7363(a) of
title 38, United States Code, is amended to read as follows:
(1)with respect to
the Department medical center—
(A)(i)the director (or
directors of each Department medical center, in the case of a multi-medical
center research corporation);
(ii)the chief of staff; and
(iii)as appropriate for the activities
of such corporation, the associate chief of staff for research and the
associate chief of staff for education; or
(B)in the case of a
Department medical center at which one or more of the positions referred to in
subparagraph (A) do not exist, the official or officials who are responsible
for carrying out the responsibilities of such position or positions at the
Department medical center;
and
.
(b)Requirements for
non-department board membersParagraph (2) of such section is
amended—
(1)by inserting
not less than two
before members
; and
(2)by striking
and who
and all that follows through the period at the end and
inserting and who have backgrounds, or business, legal, financial,
medical, or scientific expertise, of benefit to the operations of the
corporation.
.
(c)Clarification
that Department employees may serve as executive directorsSubsection (b) of section 7363 of such
title is amended in the first sentence, by inserting after executive
director who
the following: may be an employee of the Department
and who
.
(d)Subsection (c) of section 7363 of such title is amended
by striking , employed by, or have any other financial relationship
with
and inserting or employed by
.
5.Clarification of
powers of corporations
(a)Section 7364 of title 38, United States Code, is amended
to read as follows:
7364.
(a)(1)A
corporation established under this subchapter may, solely to carry out the
purposes of this subchapter—
(A)accept, administer, retain, and spend
funds derived from gifts, contributions, grants, fees, reimbursements, and
bequests from individuals and public and private entities;
(B)enter into contracts and agreements
with individuals and public and private entities;
(C)subject to paragraph (2), set fees for
education and training facilitated under section 7362 of this title, and
receive, retain, administer, and spend funds in furtherance of such education
and training;
(D)reimburse amounts to the applicable
appropriation account of the Department for the Office of General Counsel for
any expenses of that Office in providing legal services attributable to
research and education agreements under this subchapter; and
(E)employ such employees as the
corporation considers necessary for such purposes and fix the compensation of
such employees.
(2)Fees charged pursuant to paragraph
(1)(C) for education and training described in that paragraph to individuals
who are officers or employees of the Department may not be paid for by any
funds appropriated to the Department.
(3)Amounts reimbursed to the Office of General
Counsel under paragraph (1)(D) shall be available for use by the Office of the
General Counsel only for staff and training, and related travel, for the
provision of legal services described in that paragraph and shall remain
available for such use without fiscal year limitation.
(b)Transfer and
administration of funds(1)Except as provided in
paragraph (2), any funds received by the Secretary for the conduct of research
or education at a Department medical center or centers, other than funds
appropriated to the Department, may be transferred to and administered by a
corporation established under this subchapter for such purposes.
(2)A Department medical center may
reimburse the corporation for all or a portion of the pay, benefits, or both of
an employee of the corporation who is assigned to the Department medical center
if the assignment is carried out pursuant to subchapter VI of chapter 33 of
title 5.
(3)A
Department medical center may retain and use funds provided to it by a
corporation established under this subchapter. Such funds shall be credited to
the applicable appropriation account of the Department and shall be available,
without fiscal year limitation, for the purposes of that account.
(c)Except for reasonable and usual preliminary costs for
project planning before its approval, a corporation established under this
subchapter may not spend funds for a research project unless the project is
approved in accordance with procedures prescribed by the Under Secretary for
Health for research carried out with Department funds. Such procedures shall
include a scientific review process.
(d)Except for reasonable and usual preliminary costs for
activity planning before its approval, a corporation established under this
subchapter may not spend funds for an education activity unless the activity is
approved in accordance with procedures prescribed by the Under Secretary for
Health.
(e)The Under Secretary for Health may prescribe policies
and procedures to guide the spending of funds by corporations established under
this subchapter that are consistent with the purpose of such corporations as
flexible funding mechanisms and with Federal and State laws and regulations,
and executive orders, circulars, and directives that apply generally to the
receipt and expenditure of funds by nonprofit organizations exempt from
taxation under section 501(c)(3) of the Internal Revenue Code of
1986.
.
(b)Section 7362(a) of such title, as amended by section
3(a)(1) of this Act, is further amended by striking the last sentence.
6.Redesignation of
section 7364A of title 38, United States
Code
(a)Section
7364A of title 38, United States Code, is redesignated as section 7365 of such
title.
(b)The table of sections at the beginning of chapter 73
of such title is amended—
(1)by striking the
item relating to section 7364A; and
(2)by striking the
item relating to section 7365 and inserting the following new item:
7365. Coverage of employees under certain
Federal tort claims
laws.
.
7.Improved
accountability and oversight of corporations
(a)Additional
information in annual reportsSubsection (b) of section 7366 of
title 38, United States Code, is amended to read as follows:
(b)(1)Each corporation shall
submit to the Secretary each year a report providing a detailed statement of
the operations, activities, and accomplishments of the corporation during that
year.
(2)(A)A corporation with
revenues in excess of $500,000 for any year shall obtain an audit of the
corporation for that year.
(B)A corporation with annual revenues
between $100,000 and $500,000 shall obtain an audit of the corporation at least
once every three years.
(C)Any audit under this paragraph shall
be performed by an independent auditor.
(3)The corporation shall include in each
report to the Secretary under paragraph (1) the following:
(A)The most recent audit of the
corporation under paragraph (2).
(B)The most recent Internal Revenue
Service Form 990 Return of Organization Exempt from Income Tax
or equivalent and the applicable schedules under such
form.
.
(b)Conflict of
interest policiesSubsection
(c) of such section is amended to read as follows:
(c)Each director, officer, and employee of a
corporation established under this subchapter shall be subject to a conflict of
interest policy adopted by that
corporation.
.
(c)Establishment of
appropriate payee reporting thresholdSubsection (d)(3)(C) of
such sec-tion is amended by striking
$35,000
and inserting $50,000
.
Passed the House of
Representatives July 27, 2009.
Lorraine C. Miller,
Clerk.