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Title 38 — Veterans’ Benefits

Part V · Chapter 73 — Veterans Health Administration—Organization and Functions

§ 7364. General powers

Statutory text

(a)

In General.—

(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. Any amounts so transferred after , shall be available without regard to fiscal year limitations, notwithstanding section 1535(d) of title 31.

(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)

Research Projects.—

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)

Education Activities.—

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)

Policies and Procedures.—

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.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Veterans

    Pub. L. 100–322 title II § 204(a) · 102 Stat. 487

    Enacted · 38 U.S.C. § 7364

    Added Pub. L. 100–322, title II, § 204(a), May 20, 1988, 102 Stat. 511, § 4164

    Source evidence

    Code source credit
    Added Pub. L. 100–322, title II, § 204(a), May 20, 1988, 102 Stat. 511, § 4164

    Enacted provision · exact public law section
    (a) Authority of Administrator.— Chapter 73 is amended by adding at the end the following new subchapter: “SUBCHAPTER VI— RESEARCH CORPORATIONS “§ 4161. Authority to establish; status “(a) The Administrator may authorize the establishment at any Veterans’ Administration medical center of a nonprofit corporation to provide a flexible funding mechanism for the conduct of approved research at the medical center. Except as otherwise required in this subchapter or under regulations prescribed by the Administrator, any such corporation, and its directors and employees, shall be required to comply only with those Federal laws, regulations, and executive orders and directives which apply generally to private nonprofit corporations. “(b) If by the end of the three-year period beginning on the date of the establishment of a corporation under this subchapter the corporation is not recognized as an entity the income of which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986, the Administrator shall dissolve the corporation. “§ 4162. Purpose of corporations “Any corporation established under this subchapter shall be established solely to facilitate research as described in section 4101(c)(1) of this title in conjunction with the applicable Veteran’ Administration medical center. Any funds received by the Administrator for the conduct of research at the medical center other than funds appropriated to the Veterans’ Administration may be transferred to and administered by the corporation for that purpose. “§ 4163. Board of directors; executive director “(a) The Administrator shall provide for the appointment of a board of directors for any corporation established under this subchapter. The board shall include— “(1) the director of the medical center, the chief of staff of the medical center, and the assistant chief of staff for research of the medical center; and “(2) subject to subsection (c) of this section, members who are not officers or employees of the Federal Government and who are familiar with issues involving medical and scientific research. “(b) Each such corporation shall have an executive director who shall be appointed by the board of directors with the concurrence of the Chief Medical Director of the Veterans’ Administration. The executive director of a corporation shall be responsible for the operations of the corporation and shall have such specific duties and responsibilities as the board may prescribe. “(c) An individual appointed under subsection (a)(2) of this section to the board of directors of a corporation established under this subchapter may not be affiliated with, employed by, or have any other financial relationship with any entity that is a source of funding for research by the Veterans’ Administration unless that source of funding is a governmental entity or an entity the income of which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986. “§ 4164. General powers “(a) A corporation established under this subchapter may— “(1) accept gifts and grants from, and enter into contracts Gifts. Grants. Contracts. with, individuals and public and private entities solely to carry out the purposes of this subchapter; and “(2) employ such employees as it considers necessary for such purposes and fix the compensation of such employees. “(b) 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 Chief Medical Director for research carried out with Veteran’ Administration funds. Such procedures shall include a peer review process. “§ 4165. Applicable State law “Any corporation established under this subchapter shall be established in accordance with the nonprofit corporation laws of the State in which the applicable medical center is located and shall, to the extent not inconsistent with any Federal law, be subject to the laws of such State. “§ 4166. Accountability and oversight “(a) (1) (A) The records of a corporation established under this Records. subchapter shall be available to the Administrator. “(B) For the purposes of sections 4(a)(1) and 6(a)(1) of the Inspector General Act of 1978, the programs and operations of such a corporation shall be considered to be programs and operations of the Veterans’ Administration with respect to which the Inspector General of the Veterans’ Administration has responsibilities under such Act. “(2) Such a corporation shall be considered an agency for the purposes of section 716 of title 31 (relating to availability of information and inspection of records by the Comptroller General). “(b) Each such corporation shall submit to the Administrator an Reports. annual report providing a detailed statement of its operations, activities, and accomplishments during that year. The corporation shall obtain a report of independent auditors concerning the receipts and expenditures of funds by the corporation during that year and shall include that report in the corporation’s report to the Administrator for that year. “(c) Each member of the board of directors of a corporation established under this subchapter, each employee of such a corpora-tion, and each employee of the Veterans’ Administration who is involved in the functions of the corporation during any year— “(1) shall be subject to Federal laws and regulations applicable to Federal employees with respect to conflicts of interest in the performance of official functions; and “(2) shall submit to the Administrator an annual statement signed by the director or employee certifying that the director or employee is aware of, and has complied with, such laws and regulations in the same manner as Federal employees are required to. “(d) The Administrator shall submit to the Committees on Veteran’ Affairs of the Senate and House of Representatives an annual report on the number and location of corporations established and the amount of the contributions made to each such corporation. “§ 4167. Report to Congress “Not later than February 1, 1991, the Administrator shall submit to Congress a report on the experience through the end of fiscal year 1990 under this subchapter. The report shall include such recommendations as the Administrator considers appropriate. “§ 4168. Expiration of authority “No corporation may be established under this subchapter after September 30, 1991.”.

  2. Department of Veterans Affairs Health-Care Personnel Act of 1991

    Pub. L. 102–40 § 401(a)(4)(B) · 105 Stat. 187

    Changed · 38 U.S.C. § 7364

    Pub. L. 102–40, § 401(a)(4)(B), renumbered section 4164 of this title as this section

    Source evidence

    Code amendment note
    Pub. L. 102–40, § 401(a)(4)(B), renumbered section 4164 of this title as this section.

    Enacted provision · exact public law section
    (B) by redesignating sections 4161, 4162, 4163, 4164, 4165, 4166, 4167, and 4168 as sections 7361, 7362, 7363, 7364, 7365, 7366, 7367, and 7368, respectively.

  3. Department of Veterans Affairs Health-Care Personnel Act of 1991

    Pub. L. 102–40 § 403(a)(2) · 105 Stat. 187

    Substituted · 38 U.S.C. § 7364(b)

    Pub. L. 102–40, § 403(a)(2), substituted “Department” for “Veterans’ Administration”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 102–40, § 403(a)(2), substituted “Department” for “Veterans’ Administration”.

    Enacted provision · exact public law section
    (2) by striking out “Veterans’ Administration” each place it appears and inserting in lieu thereof “Department”;

  4. Veterans’ Medical Programs Amendments of 1992

    Pub. L. 102–405 title III § 302(c)(1) · 106 Stat. 1972

    Substituted · 38 U.S.C. § 7364(b)

    Pub. L. 102–405 substituted “Under Secretary for Health” for “Chief Medical Director”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 102–405 substituted “Under Secretary for Health” for “Chief Medical Director”.

    Enacted provision · exact public law section
    (1) Title 38, United States Code, is amended by striking out “Chief Medical Director” and “Chief Benefits Director” each place they appear (including in headings and tables but not including the sentences added by paragraphs (2) and (3)) and inserting in lieu thereof “Under Secretary for Health” and “Under Secretary for Benefits”, respectively.

  5. Veterans Millennium Health Care and Benefits Act

    Pub. L. 106–117 title II § 204(d) · 113 Stat. 1545

    Added · 38 U.S.C. § 7364(c)

    Pub. L. 106–117 added subsec. (c)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 106–117 added subsec. (c).

    Enacted provision · exact public law section
    (d) Approval of Expenditures.— Section 7364 is amended by adding at the end the following new subsection: “(c) (1) 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. “(2) The Under Secretary for Health shall prescribe policies Regulations. and procedures to guide the expenditure of funds by corporations under paragraph (1) consistent with the purpose of such corporations as flexible funding mechanisms.”.

  6. Caregivers and Veterans Omnibus Health Services Act of 2010

    Pub. L. 111–163 title VIII § 804(a) · 124 Stat. 1130

    Amended · 38 U.S.C. § 7364

    Pub. L. 111–163 amended section generally. Prior to amendment, section related to the general powers of a corporation established under this subchapter

    Source evidence

    Code amendment note
    Pub. L. 111–163 amended section generally. Prior to amendment, section related to the general powers of a corporation established under this subchapter.

    Enacted provision · exact public law section
    (a) In General.— Section 7364 is amended to read as follows: “§ 7364. General powers “(a) In General.— (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) Research Projects.— 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) Education Activities.— 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) Policies and Procedures.— 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.” .

  7. Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020

    Pub. L. 116–315 title VII § 7006 · 134 Stat. 4932

    Inserted · 38 U.S.C. § 7364(b)(1)

    Pub. L. 116–315 inserted “Any amounts so transferred after September 30, 2016, shall be available without regard to fiscal year limitations, notwithstanding section 1535(d) of title 31.” at end

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 116–315 inserted “Any amounts so transferred after September 30, 2016, shall be available without regard to fiscal year limitations, notwithstanding section 1535(d) of title 31.” at end.

    Enacted provision · exact public law section
    SEC. 7006. EXEMPTION OF CERTAIN TRANSFERS.   Section 7364(b)(1) of title 38, United States Code, is amended by adding at the end the following new sentence: “Any amounts so transferred after September 30, 2016, shall be available without regard to fiscal year limitations, notwithstanding section 1535(d) of title 31.”.

7 of 7 references resolved to an enrolled provision

Editorial Notes

References in Text

Section 501(c)(3) of the Internal Revenue Code of 1986, referred to in subsec. (e), is classified to section 501(c)(3) of Title 26, Internal Revenue Code.

Amendments1991–2021 · 5 rounds

2021

Subsec. (b)(1). Pub. L. 116–315 inserted “Any amounts so transferred after , shall be available without regard to fiscal year limitations, notwithstanding section 1535(d) of title 31.” at end.

2010

Pub. L. 111–163 amended section generally. Prior to amendment, section related to the general powers of a corporation established under this subchapter.

1999

Subsec. (c). Pub. L. 106–117 added subsec. (c).

1992

Subsec. (b). Pub. L. 102–405 substituted “Under Secretary for Health” for “Chief Medical Director”.

1991

Pub. L. 102–40, § 401(a)(4)(B), renumbered section 4164 of this title as this section.

Subsec. (b). Pub. L. 102–40, § 403(a)(2), substituted “Department” for “Veterans’ Administration”.

Credits

1988–2021 · 6 acts
  1. 1988Added Pub. L. 100–322, title II, § 204(a), , 102 Stat. 511, § 4164
  2. 1991renumbered § 7364 and amended Pub. L. 102–40, title IV, §§ 401(a)(4)(B), 403(a)(2), , 105 Stat. 221, 239
  3. 1992Pub. L. 102–405, title III, § 302(c)(1), , 106 Stat. 1984
  4. 1999Pub. L. 106–117, title II, § 204(d), , 113 Stat. 1562
  5. 2010Pub. L. 111–163, title VIII, § 804(a), , 124 Stat. 1177
  6. 2021Pub. L. 116–315, title VII, § 7006, , 134 Stat. 5059.
Show as published

(Added Pub. L. 100–322, title II, § 204(a), , 102 Stat. 511, § 4164; renumbered § 7364 and amended Pub. L. 102–40, title IV, §§ 401(a)(4)(B), 403(a)(2), , 105 Stat. 221, 239; Pub. L. 102–405, title III, § 302(c)(1), , 106 Stat. 1984; Pub. L. 106–117, title II, § 204(d), , 113 Stat. 1562; Pub. L. 111–163, title VIII, § 804(a), , 124 Stat. 1177; Pub. L. 116–315, title VII, § 7006, , 134 Stat. 5059.)

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