NONPROFIT RESEARCH CORPORATIONS.

SEC. 204. NONPROFIT RESEARCH CORPORATIONS. (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. 102 STAT. 511 “(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 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 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 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-102 STAT. 512tion, 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.”. (b) Clerical Amendment.— The table of sections at the beginning of such chapter is amended by adding at the end the following: “SUBCHAPTER VI—RESEARCH CORPORATIONS “4161. Authority to establish; status. “4162. Purpose of corporations. “4163. Board of directors; executive director. “4164. General powers. “4165. Applicable State law. “4166. Accountability and oversight. “4167. Report to Congress. “4168. Expiration of authority.”.