NATIONAL FOUNDATION FOR BIOMEDICAL RESEARCH.

SEC. 1701. NATIONAL FOUNDATION FOR BIOMEDICAL RESEARCH. Section 499 of the Public Health Service Act, as redesignated by section 121(b)(3) of this Act, is amended— (1) in subsection (a)— (A) by inserting “, acting through the Director of NIH,” after “Secretary shall”; and (B) by striking “, except for” and all that follows through “Transfer Act,”; (2) by redesignating subsections (c), (d), (e), (f), (g), (h), and (i) as subsections (3), (f), (g), (h), (i), (j), and (m), respectively; (3) by striking subsection (b) and inserting the following subsections: “(b) Purpose of Foundation.— The purpose of the Foundation shall be to support the National Institutes of Health in its mission, and to advance collaboration with biomedical researchers from universities, industry, and nonprofit organizations. “(c) Certain Activities of Foundation.— “(1) In general.— In carrying out subsection (b), the Foundation may solicit and accept gifts, grants, and other donations, establish accounts, and invest and expend funds in sup-107 STAT. 187port of the following activities with respect to the purpose described in such subsection: “(A) A program to provide and administer endowed positions that are associated with the research program of the National Institutes of Health. Such endowments may be expended for the compensation of individuals holding the positions, for staff, equipment, quarters, travel, and other expenditures that are appropriate in supporting the endowed positions. “(B) A program to provide and administer fellowships and grants to research personnel in order to work and study in association with the National Institutes of Health. Such fellowships and grants may include stipends, travel, health insurance benefits and other appropriate expenses. The recipients of fellowships shall be selected by the donors and the Foundation upon the recommendation of the National Institutes of Health employees in the laboratory where the fellow would serve, and shall be subject to the agreement of the Director of the National Institutes of Health and the Executive Director of the Foundation. “(C) Supplementary programs to provide for— “(i) scientists of other countries to serve in research capacities in the United States in association with the National Institutes of Health or elsewhere, or opportunities for employees of the National Institutes of Health or other public health officials in the United States to serve in such capacities in other countries, or both; “(ii) the conduct and support of studies, projects, and research, which may include stipends, travel and other support for personnel in collaboration with national and international non-profit and for-profit organizations; “(iii) the conduct and support of forums, meetings, conferences, courses, and training workshops that may include undergraduate, graduate, post-graduate, and post-doctoral accredited courses and the maintenance of accreditation of such courses by the Foundation at the State and national level for college or continuing education credits or for degrees; “(iv) programs to support and encourage teachers and students of science at all levels of education and programs for the general public which promote the understanding of science; “(v) programs for writing, editing, printing, publishing, and vending of books and other materials; and “(vi) the conduct of other activities to carry out and support the purpose described in subsection (b). “(2) Fees.— The Foundation may assess fees for the provision of professional, administrative and management services by the Foundation in amounts determined reasonable and appropriate by the Executive Director. “(3) Authority of foundation.— The Foundation shall be the sole entity responsible for carrying out the activities described in this subsection.”; (4) in subsection (d) (as so redesignated)— 107 STAT. 188 (A) in paragraph (1)— (i) by striking “members of the Foundation” in subparagraph (A) and inserting “appointed members of the Board”; (ii) by striking “Council” in subparagraph (B) and inserting “Board”; (iii) by striking “Council” in subparagraph (C) and inserting “Board”; and (iv) by adding at the end the following subparagraphs: “(D) (i) Not later than 30 days after the date of the enactment of the National Institutes of Health Revitalization Act of 1993, the Director of the National Institutes of Health shall convene a meeting of the ex officio members of the Board to— “(I) incorporate the Foundation and establish the general policies of the Foundation for carrying out the purposes of subsection (b), including the establishment of the bylaws of the Foundation; and “(II) appoint the members of the Board in accordance with subparagraph (C). “(ii) Upon the appointment of the members of the Board under clause (i)(II), the terms of service of the ex officio members of the Board as members of the Board shall terminate. “(E) The agreement of not less than three-fifths of the members of the ex officio members of the Board shall be required for the appointment of each member to the initial Board. “(F) No employee of the National Institutes of Health shall be appointed as a member of the Board. “(G) The Board may, through amendments to the bylaws of the Foundation, provide that the number of members of the Board shall be greater than the number specified in subparagraph (C).”; (B) in paragraph (2)— (i) by striking “The ex officio” and inserting the following: “(A) The ex officio”; (ii) by striking “an appointed member of the Board to serve as the Chair” and inserting “an individual to serve as the initial Chair”; and (iii) by adding at the end the following subparagraph: “(B) Upon the termination of the term of service of the initial Chair of the Board, the appointed members of the Board shall elect a member of the Board to serve as the Chair of the Board.”; (C) in paragraph (3)(A), by striking “(2)(C)” and inserting “(1)(C)” and (D) by adding at the end the following paragraphs: “(5) Meetings and quorum.— A majority of the members of the Board shall constitute a quorum for purposes of conducting the business of the Board. “(6) Certain bylaws.— “(A) In establishing bylaws under this subsection, the Board shall ensure that the following are provided for: 107 STAT. 189 “(i) Policies for the selection of the officers, employees, agents, and contractors of the Foundation. “(ii) Policies, including ethical standards, for the acceptance, solicitation, and disposition of donations and grants to the Foundation and for the disposition of the assets of the Foundation. Policies with respect to ethical standards shall ensure that officers, employees and agents of the Foundation (including members of the Board) avoid encumbrances that would result in a conflict of interest, including a financial conflict of interest or a divided allegiance. Such policies shall include requirements for the provision of information concerning any ownership or controlling interest in entities related to the activities of the Foundation by such officers, employees and agents and their spouses and relatives. “(iii) Policies for the conduct of the general operations of the Foundation. “(iv) Policies for writing, editing, printing, publishing, and vending of books and other materials. “(B) In establishing bylaws under this subsection, the Board shall ensure that such bylaws (and activities carried out under the bylaws) do not— “(i) reflect unfavorably upon the ability of the Foundation or the National Institutes of Health to carry out its responsibilities or official duties in a fair and objective manner; or “(ii) compromise, or appear to compromise, the integrity of any governmental agency or program, or any officer or employee involved in such program.”; (5) in subsection (i) (as so redesignated)— (A) in paragraph (4), by inserting “, and define the duties of the officers and employees” before the semicolon at the end; (B) by striking paragraph (5); (C) by redesignating paragraphs (6) through (14), as paragraphs (5) through (13), respectively; (D) in paragraph (7) (as so redesignated), by striking “this subtitle” and inserting “this part”; (E) by striking paragraph (8) (as so redesignated), and inserting the following paragraph: “(8) establish a process for the selection of candidates for positions under subsection (c);” (F) by inserting “solicit” after the paragraph designation in paragraph (11) (as so redesignated); (G) by striking “and” at the end of paragraph (13) (as so redesignated); (H) by inserting after paragraph (13) (as so redesignated), the following paragraph: “(14) enter into such other contracts, leases, cooperative agreements, and other transactions as the Executive Director considers appropriate to conduct the activities of the Foundation; and”; and (I) in paragraph (15), by striking “this subtitle” and inserting “this part”, (6) by inserting after subsection (j) (as so redesignated), the following subsections: 107 STAT. 190 “(k) General Provisions.— “(1) Foundation integrity.— The members of the Board shall be accountable for the integrity of the operations of the Foundation and shall ensure such integrity through the development and enforcement of criteria and procedures relating to standards of conduct (including those developed under subsection (d)(2)(B)(i)(II)), financial disclosure statements, conflict of interest rules, recusal and waiver rules, audits and other matter determined appropriate by the Board. “(2) Financial conflicts of interest.— Any individual who is an officer, employee, or member of the Board of the Foundation may not (m accordance with policies and requirements developed under subsection (d)(2)(B)(i)(II)) personally or substantially participate in the consideration or determination by the Foundation of any matter that would directly or predictably affect any financial interest of the individual or a relative (as such term is defined in section 109(16) of the Ethics in Government Act of 1978) of the individual, of any business organization or other entity, or of which the individual is an officer or employee, or is negotiating for employment, or in which the individual has any other financial interest. “(3) Audits; availability of records.— The Foundation shall— “(A) provide for annual audits of the financial condition of the Foundation; and “(B) make such audits, and all other records, documents, and other papers of the Foundation, available to the Secretary and the Comptroller General of the United States for examination or audit. “(4) Reports.— “(A) Not later than 5 months following the end of each fiscal year, the Foundation shall publish a report describing the activities of the Foundation during the preceding fiscal year. Each such report shall include for the fiscal year involved a comprehensive statement of the operations, activities, financial condition, and accomplishments of the Foundation. “(B) With respect to the financial condition of the Foundation, each report under subparagraph (A) shall include the source, and a description of, all gifts or grants to the Foundation of real or personal property, and the source and amount of all gifts or grants to the Foundation of money. Each such report shall include a specification of any restrictions on the purposes for which gifts or grants to the Foundation may be used. “(C) The Foundation shall make copies of each report submitted under subparagraph (A) available for public inspection, and shall upon request provide a copy of the report to any individual for a charge not exceeding the cost of providing the copy. “(D) The Board shall annually hold a public meeting to summarize the activities of the Foundation and distribute written reports concerning such activities and the scientific results derived from such activities. “(5) Service of federal employees.— Federal employees may serve on committees advisory to the Foundation and otherwise cooperate with and assist the Foundation in carrying 107 STAT. 191out its function, so long as the employees do not direct or control Foundation activities. “(6) Relationship with existing entities.— The Foundation may, pursuant to appropriate agreements, merge with, acquire, or use the resources of existing nonprofit private corporations with missions similar to the purposes of the Foundation, such as the Foundation for Advanced Education in the Sciences. “(7) Intellectual property rights.— The Board shall adopt written standards with respect to the ownership of any intellectual property rights derived from the collaborative efforts of the Foundation prior to the commencement of such efforts. “(8) National institutes of health amendments of 1990.— The activities conducted in support of the National Institutes of Health Amendments of 1990 (Public Law 101–613), and the amendments made by such Act, shall not be nullified by the enactment of this section. “(9) Limitation of activities.— The Foundation shall exist solely as an entity to work in collaboration with the research programs of the National Institutes of Health. The Foundation may not undertake activities (such as the operation of independent laboratories or competing for Federal research funds) that are independent of those of the National Institutes of Health research programs. “(10) Transfer of funds.— The Foundation may not transfer funds to the National Institutes of Health. “(l) Duties of the Director.— “(1) Applicability of certain standards to non-federal employees.— In the case of any individual who is not an employee of the Federal Government and who serves in association with the National Institutes of Health, with respect to financial assistance received from the Foundation, the Foundation may not provide the assistance of, or otherwise permit the work at the National Institutes of Health to begin until a memorandum of understanding between the individual and the Director of the National Institutes of Health, or the designee of such Director, has been executed specifying that the individual shall be subject to such ethical and procedural standards of conduct relating to duties performed at the National Institutes of Health, as the Director of the National Institutes of Health determines is appropriate. “(2) Support services.— The Director of the National Institutes of Health may provide facilities, utilities and support services to the Foundation if it is determined by the Director to be advantageous to the research programs of the National Institutes of Health.”; (7) in subsection (m) (as so redesignated), by amending the subsection to read as follows: “(m) Funding.— “(1) Authorization of appropriations.— For the purpose of carrying out this part, there is authorized to be appropriated an aggregate $200,000 for the fiscal years 1994 and 1995. “(2) Limitation regarding other funds.— Amounts appropriated under any provision of law other than paragraph (1) may not be expended to establish or operate the Foundation.”; and 107 STAT. 192 (8) by adding at the end the following subsection: “(n) Report on Adequacy of Compliance.— “(1) In general.— With respect to the mission and function of the Foundation, the Comptroller General of the United States shall conduct an audit to determine— “(A) whether the Foundation is in compliance with the guidelines established under this section; and “(B) whether the procedures utilized under this section are adequate to prevent conflicts of interest involving the Foundation, the employees of the Foundation or members of the Board of the Foundation. “(2) Report.— Not later than 18 months after the date on which the Foundation is incorporated, the Comptroller General of the United States shall complete the audit required under paragraph (1) and prepare and submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Labor and Human Resources of the Senate, a report describing the findings made with respect to such audit.”.