[Congressional Record Volume 155, Number 85 (Tuesday, June 9, 2009)]
[Extensions of Remarks]
[Page E1359]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




VETERANS NONPROFIT RESEARCH AND EDUCATION CORPORATIONS ENHANCEMENT ACT 
                                OF 2009

                                 ______
                                 

                            HON. BOB FILNER

                             of california

                    in the house of representatives

                         Tuesday, June 9, 2009

  Mr. FILNER. Madam Speaker, today I introduce the ``Veterans Nonprofit 
Research and Education Corporations Enhancement Act of 2009''.
  As the nation's largest healthcare provider network and the custodian 
of our veterans' health, the Department of Veterans Affairs has an 
important role to play in the development of innovative new healthcare 
technologies, medication, and practices.
  Mr. Speaker, the Department of Veterans Affairs research program is 
well respected within the research community. The program focuses on 
research that concerns the special health care needs of veterans 
especially war related injuries and illnesses.
  Some recent successes of the program include neuromotor prosthesis 
for paralyzed patients, development of an artificial retina for 
veterans who have lost vision due to retinal damage, and the use of a 
generic drug (prazosin) for veterans with Post Traumatic Stress 
Disorder.
  Importantly, this research program does not just benefit veterans but 
also American citizens as a whole. Years ago, this program was 
responsible for bringing to the medical community the pacemaker.
  Nonprofit Research Corporations were authorized by Congress in 1988. 
The intent of these Corporations was to provide a flexible funding 
mechanism to conduct research and education at VA medical centers. 
Today, there are 82 independent, state-chartered corporations.
  Nonprofit research corporations are a critical component of the 
overall VA research program. In Fiscal Year 2007 alone, nonprofits were 
responsible for securing $250 million from the private sector and non-
VA public funding to support over 4,000 research and education programs 
at the VA. This includes providing nearly 2,500 without compensation 
research employees who work side-by-side with VA-salaried employees.
  This legislation authorizes the creation of multi-medical center 
research corporations that would allow two or more VA medical centers 
to share one Nonprofit Research Corporation. VA facilities with small 
research programs may join with larger ones. Additionally, smaller ones 
will be allowed to pool resources to support a Corporation.
  It also clarifies the purpose of the corporation by enabling 
Nonprofit Research Corporations to support functions related to the 
conduct of research and education.
  Additionally, this legislation will broaden the qualifications for 
the two mandatory non-VA board members beyond familiarity with medical 
research and education to acquire those with legal and financial 
expertise for sound governance and financial management. This provision 
would also remove the overly strict language prohibiting non-VA board 
members from having any financial relationship, current or past with a 
for-profit entity which funds VA research or education. This change 
would be consistent with the rules applied to federal employees in 
dealing with conflict of interest by allowing for means of recusal.
  This legislation further clarifies the powers of corporations. Some 
of the key authorities provided by this provision include allowing the 
Corporations to charge registration fees for education and training 
programs and to use such funds to offset program expenses or for future 
educational purposes.
  It will allow the VA to reimburse Nonprofit Research Corporations for 
the salary and benefits of NPC employees loaned to VA under 
Intergovernmental Personnel Act (IPA) assignments.
  Finally this legislation will improve accountability and oversight of 
corporations by requiring each Nonprofit Research Corporation to submit 
an annual report to the Secretary of the VA on operations, activities, 
and accomplishments. It would also require Nonprofit Research 
Corporations with revenues in excess of $300,000 in any given year to 
obtain an audit.
  I urge your support.