Pub. L. 94-581, tit. II, sec. 205

Sec. 205. Subchapter I of chapter 73 of title 38, United States Code, is amended as follows: (a) (1) The second sentence of subsection (a) of section 4101 is amended to read as follows: “The primary function of the Department of Medicine and Surgery shall be to provide a complete medical and hospital service, as provided in this title and in regulations prescribed by the Administrator pursuant thereto, for the medical care and treatment of veterans.”. (2) Subsection (b) of section 4101 is amended by striking out “to provide a complete medical and hospital service for the medical care and treatment of veterans”. (3) Section 4101 is further amended by redesignating subsection (c) as subsection (d) and inserting the following new subsection (c): “(c) (1) In order to carry out more effectively the primary function of the Department of Medicine and Surgery and in order to contribute to the Nation’s knowledge about disease and disability, the Administrator shall, in connection with the provision of medical care and treatment to veterans, carry out a program of medical research (including biomedical, prosthetic, and health care services research, and stressing research into spinal cord injuries and diseases and other disabilities that lead to paralysis of the lower extremities). In carrying out such research program, the Administrator shall act in cooperation with the entities described in subsection (b) of this section. “(2) Prosthetic research shall include research and testing in the field of prosthetic, orthotic, and orthopedic appliances and sensory devices. In order that the unique investigative material and research data in the possession of the Government may result in the improvement of such appliances and devices for all disabled persons, the Administrator, through the Chief Medical Director, shall make the results of such research available to any person, and shall consult and cooperate with the Secretary of Health, Education, and Welfare and the Commissioner of the Rehabilitation Services Administration, Department of Health, Education, and Welfare, in connection with programs carried out under section 3(b) of the Rehabilitation Act of 1973 (Public Law 93–112; 87 Stat. 357) (relating to the development and support, and the stimulation of the development and utilization, including production and distribution of new and existing devices, of innovative methods of applying advanced medical technology, scientific achievement, and psychological and social knowledge to solve rehabilitation problems), section 202(b)(2) of such Act (relating to the establishment and support of Rehabilitation Engineering Research Centers), and section 405 of such Act (relating to the secretarial responsibilities for planning, analysis, promoting utilization of scientific advances, and information clearinghouse activities). “(3) (A) With the approval of the Administrator, any contract or research authorized by this section, the performance of which involves a risk of an unusually hazardous nature, may provide that the United States will indemnify the contractor against either or both of the following, but only to the extent that they arise out of the direct performance of the contract and to the extent not covered by the financial protection required under subparagraph (E) of this paragraph. “(i) Liability (including reasonable expenses of litigation or settlement) to third persons, except liability under State or Federal workers’ injury compensation laws to employees of the 90 STAT. 2858contractor employed at the site of and in connection with the contract for which indemnification is granted, for death, bodily injury, or loss of or damage to property, from a risk that the contract defines as unusually hazardous. “(ii) Loss of or damage to property of the contractor from a risk that the contract defines as unusually hazardous. “(B) A contract that provides for indemnification in accordance with subparagraph (A) of this paragraph must also provide for— “(i) notice to the United States of any claim or suit against the contractor for death, bodily injury, or loss of or damage to property; and “(ii) control of or assistance in the defense by the United States, at its election, of any such suit or claim for which indemnification is provided hereunder. “(C) No payment may be made under subparagraph (A) of this paragraph unless the Administrator, or the Administrator’s designee, certifies that the amount, is just and reasonable. “(D) Upon approval by the Administrator, payments under subparagraph (A) of this paragraph may be made from— “(i) funds obligated for the performance of the contract concerned; “(ii) funds available for research or development or both, and not otherwise obligated; or “(iii) funds appropriated for those payments. “(E) Each contractor which is a party to an indemnification agreement under subparagraph (A) of this paragraph shall have and maintain financial protection of such type and in such amounts as the Administrator shall require to cover liability to third persons and loss of or damage to the contractor’s property. The amount of financial protection required shall be the maximum amount of insurance available from private sources, except that the Administrator may establish a lesser amount, taking into consideration the cost and terms of private insurance. Such financial protection may include private insurance, private contractual indemnities, self-insurance, other proof of financial responsibility, or a combination of such measures. “(F) In administering the provisions of this paragraph, the Administrator may use the facilities and services of private insurance organizations, and may contract to pay a reasonable compensation therefor. Any contract made under the provisions of this paragraph may be made without regard to the provisions of section 3709 of the Revised Statutes (41 U.S.C. 5), upon a showing by the Administrator that advertising is not reasonably practicable, and advance payments may be made under any such contract. “(G) The authority to indemnify contractors under this paragraph does not create any rights in third persons which would not otherwise exist by law. “(H) As used in this section, the term ‘contractor’ includes subcontractors of any tier under a contract containing an idemnification provision pursuant to subparagraph (A) of this paragraph. “(4) Funds appropriated to carry out this subsection shall remain available until expended.”. (b) Chapter 39 of title 38, United States Code, is amended by— (1) striking out in the table of sections “1804. Research and development; coordination with other Federal programs.” and inserting in lieu thereof “1904. Research and development.”; 90 STAT. 2859 (2) amending the catchline of section 1904 to read as follows: “§1904. Research and development”; and (3) amending subsection (a) of section 1904 by striking out “prosthetic and orthopedic appliance research under section 216 and medical research” and inserting in lieu thereof “medical and Prosthetic research”. (c) Chapter 3 of title 38, United States Code, is amended by— (1) striking out section 216 in its entirety; and (2) amending the table of sections at the beginning thereof by striking out “216. Research by the Administrator; indemnification or contractors.”. (d) Section 4103 of such title is amended by— (1) inserting “upon the recommendation of the Chief Medical Director” after “Administrator” in paragraphs (2) and (3) of subsection (a); (2) striking out “recommendations” and inserting in lieu thereof “recommendation” in subsection (a) (4); (3) inserting “or whose appointment or reappointment, is extended” after “reappointed” in subsection (b) (3) ; and (4) inserting “or for any period not exceeding two years” in subsection (c) before the period at the end of the second sentence, (e) Subsection (a)(6) (as redesignated by section 110(4) of this Act) of section 4105 of title 38, United States Code, is amended by inserting “hold the degree of doctor of optometry, or its equivalent, from a school of optometry approved by the Administrator and” before “be”. (f) Subsection (b) of section 4108 is amended by striking out “pursuant to” after “agreement” and inserting in lieu thereof “as referred to in”. (g) Subsection (b) (2) of section 4114 is amended to read as follows: (2) For the purposes of this title, the term ‘internship’ shall include the equivalency of an internship as determined in accordance with regulations which the Administrator shall prescribe, and the term ‘intern’ shall mean a person serving an internship.”.