[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10536 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 10536
To amend title 38, United States Code, to establish a mission of the
Veterans Health Administration to innovate, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 19, 2024
Mr. McGarvey (for himself and Mr. Levin) introduced the following bill;
which was referred to the Committee on Veterans' Affairs
_______________________________________________________________________
A BILL
To amend title 38, United States Code, to establish a mission of the
Veterans Health Administration to innovate, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Innovation for VA Technology and
Entrepreneurship Act'' or the ``INNOVATE Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The Department of Veterans Affairs offers critical
health care services through the Veterans Health Administration
(in this section referred to as the ``VHA''), serving as the
largest integrated health care system, largest medical training
organization, and one of the largest employers of health care
professionals in the United States.
(2) Despite its size, assets, and reach, the VHA struggles
to engage with private sector entities, particularly early-
stage businesses, due to bureaucratic hurdles.
(3) If provided new authorities through legislation, the
VHA is positioned to create a paradigm shift in health care,
revitalizing the way it develops and innovates to improve
clinical care and access to health care for veterans, and
modeling transformational health care to the private sector,
ultimately benefitting all Americans.
(4) Establishing a fifth mission of the VHA to innovate
will ingrain an innovative mindset across all VHA operations,
enhance the existing missions and spearhead a new American way
in health care, improving health outcomes for veterans, the
health of the Nation, and national security.
(5) The Office of Innovation of the VHA will authorize,
fund, and streamline processes, enhancing the VHA network of
innovation programs and fostering collaboration and
partnerships with industry, government, and academia.
SEC. 3. INNOVATION IN THE VETERANS HEALTH ADMINISTRATION.
(a) Mission.--Section 305(b) of title 38, United States Code, is
amended--
(1) by inserting ``(1)'' before ``The Under Secretary'';
and
(2) by adding at the end the following new paragraph:
``(2) The missions of the Veterans Health Administration are the
following:
``(A) Providing health care to eligible veterans.
``(B) Supporting research to benefit veterans and the
Nation.
``(C) Providing education to health care providers in
training.
``(D) Supporting emergency response.
``(E) Fostering innovation to advance health care
technology and services for veterans and the Nation.''.
(b) Office of Innovation.--
(1) Establishment.--Chapter 73 of title 38, United States
Code, is amended by adding at the end the following new
subchapter:
``SUBCHAPTER VI--INNOVATION
``Sec. 7391. Office of Innovation
``(a) Establishment.--There is in the Veterans Health
Administration an Office of Innovation (in this section referred to as
the `Office'). The Office shall be a Federal laboratory, as such term
is defined in section 4 of the Stevenson-Wydler Technology Innovation
Act of 1980 (Public Law 96-480; 15 U.S.C. 3703).
``(b) Function.--The function of the Office is to foster innovation
to advance health care and services for veterans and the Nation by--
``(1) researching, developing, and implementing innovative
technologies and services to deliver the best health care
practicable to veterans;
``(2) assisting, funding, and partnering with non-
Department entities that can rapidly accelerate the research,
development, commercialization, and implementation of
technologies and services described in paragraph (1); and
``(3) adopting a comprehensive approach that works across
traditional silos to effectively and efficiently--
``(A) use financial and human resources; and
``(B) expedite the development, commercialization,
and deployment, of such technologies and solutions.
``(c) Chief Innovation Officer.--The head of the Office is the
Chief Innovation Officer. The Chief Innovation Officer shall report
directly to the Under Secretary for Health.
``(d) Organization and Personnel.--The Office shall be organized in
such manner, and its personnel shall perform such duties and have such
titles, as the Secretary may prescribe pursuant to this subchapter.
``Sec. 7392. Hiring authorities
``(a) Exemption From Civil Service Laws for Certain Employees.--(1)
To carry out the function of the Office of Innovation, the Secretary
may--
``(A) appoint not more than 250 professional, clinical, and
other employees (which may include permanent, temporary, or
term-limited appointments) of the Department, without regard
to--
``(i) any provision of title 5 governing
appointments and removals under the civil service laws;
or
``(ii) any provision of chapter 7 of this title;
and
``(B) fix the base pay compensation of an employee
appointed under this subsection--
``(i) without regard to any other provision of law,
including the General Schedule under section 5332 of
title 5; and
``(ii) at a rate determined by the Secretary that
does not exceed the amount of annual compensation
(excluding expenses) established by section 102 of
title 3.
``(2) In carrying out paragraph (1), the Secretary shall--
``(A) make lawful efforts to recruit a diverse workforce,
including individuals under represented in clinical and other
relevant technical and non-technical areas of expertise,
including racial and ethnic minorities; and
``(B) recruit employees with a variety of professional
experiences and backgrounds, or demonstrated expertise in a
wide range of relevant disciplines and management skills.
``(3) If the Secretary determines that maximum number of positions
under paragraph (1) is insufficient, the Secretary shall submit to the
Committees on Veterans' Affairs of the Senate and House of
Representatives a written notification of such determination.
``(4) The Secretary may enter into an agreement with a private
entity to identify and recruit highly qualified candidates for a
position described in paragraph (1).
``(b) Other Employees.--The Secretary may use any other authority
under this title to hire administrative, financial, clerical, and other
employees necessary to support employees appointed under subsection
(a).
``(c) Waiver of Intergovernmental Personnel Act Mobility Program
Limits.--The Secretary may waive the limit on the period and number of
assignments required under section 3372(a) of title 5 with respect to
an individual who carries out the function established by section
7391(b) of this title under the mobility program under subchapter VI of
chapter 33 of such title (commonly referred to as the
`Intergovernmental Personnel Act Mobility Program').
``(d) Authority To Accept Federal Detailees.--Upon request of the
Secretary, the head of any Federal department or agency may detail, on
a reimbursable or nonreimbursable basis (as determined by the Secretary
and such head), any personnel of that department or agency to the
Department to assist in carrying out the function of the Office of
Innovation. Such a detail may not exceed three years.
``(e) Recordkeeping.--The Secretary shall keep records regarding
the exercise of authorities under this section. Such records shall
include the following:
``(1) the number of appointments made;
``(2) the types of positions filled, including titles,
occupational series, and grade;
``(3) the number of positions filled for which notices were
publicly issued;
``(4) the number of qualified applicants who applied for
such positions;
``(5) the qualification criteria for such positions; and,
``(6) the demographic information of individuals hired for
such positions.
``(f) Report.--Not less than once annually, the Secretary shall
submit to the Committees on Veterans' Affairs of the Senate and House
of Representatives a report on appointments under this section. Such
report shall include the number of such appointments and an explanation
of how such employees carry out the function established by section
7391(b) of this title.
``Sec. 7393. Acceleration fund
``(a) Establishment.--There is established an account, to be known
as the `Veterans Health Care Innovation Acceleration Fund' (in this
section referred to as the `Fund'), which shall be available to carry
out the function of the Office of Innovation, in addition to such
amounts that are otherwise available for such purpose. To manage the
fund, the Secretary may--
``(1) accept monies from authorized sources for the Fund;
``(2) accept and distribute monies within the Department as
the Secretary determines necessary;
``(3) establish a health care franchise function; and
``(4) pay for expenses (including information technology or
acquisition, advisory, or legal services, whether provided by
an employee of the Department or pursuant to an agreement with
a non-Department entity) that the Secretary determines
necessary to carry out the function of the Office of
Innovation, without regard to restrictions on funding type.
``(b) Authorization of Appropriations.--(1) There are authorized to
be appropriated to the Fund such sums as may be necessary to carry out
the function of the Office of Innovation. Such sums shall remain
available until expended or five years after receipt.
``(2) The budget request for the Fund shall be separate from the
rest of the budget of the Department.
``(3) Appropriations for the Fund shall be separate and distinct
from the rest of the budget for the Department and not affect annual
operational dollar allocations.
``(c) Non-Profit Corporations.--To support the administration of
the Fund with regard to acceptance of certain types of external
funding, the Secretary shall authorize existing nonprofit corporations,
established under section 7361 of this title, to carry out the function
of the Office of Innovation.
``(d) Report to Congress.--The Secretary shall submit to Congress a
detailed account, program, and project allocations of the amount
recommended for allocation in a fiscal year from amounts in the Fund--
``(1) for Fiscal Years 2026 and 2027, not later than 60
days after the date of enactment of the Innovation for VA
Technology and Entrepreneurship Act; and
``(2) for each fiscal year thereafter through 2035, as part
of the annual budget submission of the President under section
1105(a) of title 31.
``Sec. 7394. Agreements with non-Department entities for access to key
assets of the Department
``(a) Authority.--The Secretary may enter into an agreement under
which the Secretary provides a non-Department entity access to a key
asset of the Department so such entity may develop a technology or
service that--
``(1) supports the strategic plan of the Department
regarding health care; and
``(2) addresses a veteran-specific core competency.
``(b) Fees.--(1) Subject to paragraphs (2) and (3), the Secretary
shall negotiate fees under this section on a case-by-case basis, taking
into consideration factors including the costs and benefits to the
United States of such agreement.
``(2) The Secretary shall discount a fee under this section if the
entity is a small business concern owned and controlled by a veteran.
``(3) The Secretary shall not charge a fee under this section if
the entity is a small business concern owned and controlled by a
veteran with a service-connected disability.
``(c) Definitions.--In this section:
``(1) The term `key asset' includes the following:
``(A) Subject matter expertise & perspective.
``(B) Properly protected data sets.
``(C) Research evaluations, studies, and trials.
``(D) Customer feedback and insights.
``(E) Simulation and production test environments.
``(F) Health care professionals, students, and
trainees.
``(G) Advanced manufacturing and three-dimensional
printing.
``(H) Engagement from other Federal entities.
``(I) A network of academic affiliates.
``(2) The term `veteran-specific core competency' means a
health condition that the Secretary determines
disproportionately affects veterans. Such term includes the
following:
``(A) Prostheses.
``(B) Spinal cord injury.
``(C) Toxic exposure.
``(D) Traumatic brain injury.
``(E) Mental health (including suicide prevention
and post-traumatic stress disorder);
``(F) Diabetes.
``(G) Heart disease.
``(H) Obesity.
``(I) Cancer.
``Sec. 7395. Advance market commitments
``(a) Authority.--The Secretary may enter into an advance market
commitment, under which the Secretary shall guarantee to purchase, for
a predetermined price, a technology or service provided by an entity
that addresses an unmet need in the provision of health care to
veterans.
``(b) Requirements.--An advanced market commitment under this
section shall include the following:
``(1) Clearly defined and transparent rules.
``(2) Clear definition of the technology or service to
ensure safety, effectiveness, and feasible delivery.
``(3) Dispute settlement mechanisms.
``(4) The ability to modify the terms of the agreement on
the basis of new information regarding the number of veterans
to be served with such technology or service.
``(c) Report.--Not later than 120 days after executing an advance
market agreement, the Secretary shall submit to the House and Senate
Committees on Veterans Affairs an annual report on the status and
efficacy of such agreement.
``Sec. 7396. Other transactional authorities
``(a) Authority.--The Secretary may enter into an agreement, other
than a contract, cooperative agreement, or grant agreement, with a non-
Department entity that principally operates in the United States, to
conduct activities associated with basic or applied research,
prototyping, or production deployment, if--
``(1) the Senior Procurement Executive of the Department
has determined that a contract, cooperative agreement, or grant
agreement is not feasible or appropriate; and
``(2) the cost to the United States to carry out such
agreement does not exceed--
``(A) $10,000,000 (including all options); or
``(B) a greater amount that the Senior Procurement
Executive determines appropriate.
``(b) Limitation.--The only kinds of research on human embryonic
stem cells that may be conducted pursuant to an agreement under this
section are the following:
``(1) Research involving the derivation and use of human
embryonic germ cells from fetal tissue that complies with--
``(A) sections 498, 498A, and 498B of the Public
Health Service Act (42 U.S.C. 289g, 289g-1, 289-2);
``(B) title 45, Code of Federal Regulations, part
46, subpart B;
``(C) applicable regulations of the Food and Drug
Administration; and
``(D) any other applicable Federal, State, or local
law.
``(2) Research on existing human embryonic stem cell lines
in accordance with criteria established by the Director of the
National Institutes of Health.
``(c) Reimbursement.--Any amounts received by the Secretary under
this section shall be used to reimburse the accounts from which funds
were used to incur the expenses of carrying out this section.
``(d) Reporting; Transparency.--The Secretary shall--
``(1) submit to the appropriate congressional committees--
``(A) a copy of each determination under subsection
(a)(1);
``(B) not less than twice each year, a report on
agreements made under this section; and
``(C) upon request, any information regarding an
agreement made under this section; and
``(2) ensure that the terms of an agreement under this
section permit the Comptroller General of the United States to
examine the records relating to such agreement of--
``(A) an entity that enters into such an agreement;
or
``(B) an entity that otherwise participates in the
performance of such agreement.
``(e) Guidance.--The Senior Procurement Executive shall issue
guidance regarding an agreement under this section.
``(f) Definitions.--In this section:
``(1) The term `appropriate congressional committees' means
the following:
``(A) The Committees on Veterans' Affairs of the
House of Representatives and the Senate.
``(B) The Subcommittees on Military Construction,
Veterans' Affairs, and Related Agencies of the
Committees on Appropriations of the House of
Representatives and the Senate.
``(2) The term `Senior Procurement Executive' means the
official of the Department designated under section 1702(c) of
title 41.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following:
``subchapter vi--innovation
``Sec. 7391. Office of Innovation.
``Sec. 7392. Hiring authorities.
``Sec. 7393. Acceleration fund.
``Sec. 7394. Agreements with non-Department entities for access
to key assets of the Department.
``Sec. 7395. Advance market commitments.
``Sec. 7396. Other transactional authorities.
(c) Conforming Amendment.--Section 7361 of title 38, United States
Code, is amended--
(1) in subsection (a), by striking ``either research or
education or both research and education'' and inserting
``research, education, or innovation under subchapter VI of
this chapter, or any combination thereof''; and
(2) in subsection (b)(1), by striking ``research,
education, or both'' and inserting ``research, education, or
innovation under subchapter VI of this chapter, or any
combination thereof''.
(d) Implementation.--Not later than 120 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs shall carry
out the amendments made by this section.
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