§7364 — Title 38 Veterans' Benefits | U.S. Code

Summary

Allows a corporation set up under this part to collect and spend gifts, grants, fees, bequests, and similar money. The corporation may make contracts, run education and training programs and set fees for them, pay back the Department’s Office of General Counsel for legal help tied to its research and education agreements, and hire staff and set their pay. Fees for training charged to Department officers or employees cannot be paid with money that was appropriated to the Department. Money repaid to the Office of General Counsel can only be used for staff, training, and related travel and stays available without fiscal year limit. Money the Secretary gets for research or education at a Department medical center (if not Department appropriations) may be transferred to such a corporation and, if transferred after September 30, 2016, is not limited by fiscal year rules. A medical center may pay part or all of the salary or benefits of a corporation employee assigned there if the assignment follows subchapter VI of chapter 33 of title 5. A medical center may keep funds from the corporation and credit them to the appropriate Department account without fiscal year limit. The corporation cannot spend money on a research project or education activity (beyond usual early planning costs) unless approved under procedures the Under Secretary for Health sets; research approval must include scientific review. The Under Secretary for Health may write policies to guide spending that follow federal and state laws and rules for nonprofit organizations exempt under section 501(c)(3) of the Internal Revenue Code of 1986.

Title 38, §7364

Veterans' Benefits — Source: USLM XML via OLRC

(a)(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)(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 September 30, 2016, 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)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)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)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.

Notes & Related Subsidiaries

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.

Amendments

2021—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. 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”.

§7364 General Powers