H.R. 2770 (111th): Veterans Nonprofit Research and Education Corporations Enhancement Act of 2009

Introduced:
Jun 09, 2009 (111th Congress, 2009–2010)
Sponsor:
Rep. Bob Filner [D-CA51]
Status:
Died (Passed House)

The bill’s title was written by the bill’s sponsor. H.R. stands for House of Representatives bill.

GovTrack’s Bill Summary

We don’t have a summary available yet.

Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.


7/27/2009.
Section 2 -
Amends federal provisions concerning the establishment at Department of Veterans Affairs (VA) medical facilities of nonprofit research and education corporations (NRECs) to allow an NREC to facilitate the conduct of research or education, or both, at more than one VA medical center.
States that such an NREC shall be known as a multi-medical center research corporation (MCRC). Allows an NREC to act as a MCRC if:
(1) the NREC board of directors approve a resolution permitting that NREC to act as a MCRC; and
(2) the Secretary of Veterans Affairs approves the resolution.
Requires each NREC and MCRC (corporation) to be established in accordance with the nonprofit corporation laws of the state in which the VA medical center which it supports is located.
States that neither such corporation shall be considered to be owned by, or an agent or instrumentality of, the United States.
Section 3 -
Restates the purposes of the corporations, including with respect to their role in: (1) providing a flexible funding mechanism; and (2) residencies or similar programs.
Section 4 -
Modifies the composition of corporation boards of directors. Revises requirements concerning non-VA members of boards of directors of NRECs and MCRCs to: (1) state a minimum number who are not officers or employees of the federal government; and (2) expand the required areas of experience or expertise. Allows a corporation executive director to be an employee of the VA. Removes financial relationship restrictions from conflict of interest standards applicable to directors.
Section 5 -
Increases authorized corporate powers of the corporations to include entering into contracts and setting fees for education and training facilitated through a corporation.
Section 7 -
Revises annual report procedures to modify the thresholds for the obtaining of audits and require submission of an Internal Revenue Service return form applicable to organizations exempt from income tax.
Revises conflict of interest policies applicable to directors, officers, and employees of a corporation to apply the policy adopted by the corporation (under current law, they are subject to federal laws and regulations applicable to federal employees). Revises requirements for a report to Congress to increase the threshold for providing information identifying payees of the corporation.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.


This summary can be found at http://www.gop.gov/bill/111/1/hr2770.

Background

H.R. 2770 would amend current law pertaining to certain VA research and education facilities. Those facilities are private nonprofit entities that are prohibited from using appropriated funds and rely solely on cash or in-kind donations to conduct medical research and provide training. Nonetheless, such facilities would undertake activities on behalf of the federal government.

Summary

H.R. 2770 would authorize the Department of Veterans Affairs (VA) to establish Multi-Medical Center Research Corporations, a voluntary sharing of one Nonprofit Research Corporation (NPC) among two or more VA Medical Centers.

The bill would require at least two members of the board be non-federal employees and have business, legal, financial, medical, or scientific expertise that would benefit the NPC.

H.R. 2770 clarifies the ability of an NPC to accept, administer, retain, and spend funds received; enter into contracts and agreements; set fees and reimbursement; and who may serve as an NPC Executive Director.

The bill allows an NPC to charge registration fees for research and education services.

H.R. 2770 updates reimbursement authorities by (1) allowing the VA to reimburse an NPC for NPC staff assigned to VA; (2) allowing an NPC to reimburse a VA laboratory for preliminary costs of research before it is officially approved by the Secretary; and (3) allowing an NPC to reimburse VA Office of General Counsel for legal services.

The bill raises the threshold for the requirements to conduct independent audits.

The bill requires that NPC's establish a conflict of interest policy that is applicable to each director, officer, and employee of the NPC to maintain the integrity of the NPC.

Cost

According to CBO, this bill would not have a significant net effect on direct spending. Enacting the bill would not affect spending subject to appropriation or revenues.

House Democratic Caucus Summary

The House Democratic Caucus does not provide summaries of bills.

So, yes, we display the House Republican Conference’s summaries when available even if we do not have a Democratic summary available. That’s because we feel it is better to give you as much information as possible, even if we cannot provide every viewpoint.

We’ll be looking for a source of summaries from the other side in the meanwhile.

The bill contains the following citations to other parts of U.S. law:

United States Code

The United States Code is the compilation of permanent laws enacted by Congress. Temporary and other non-permanent laws do not appear in the United States Code. (About half of the United States Code is the law itself, called positive law. The other half is merely a compilation of the laws but has no legal significance.)