38 U.S.C. § 7366 — Accountability and oversight

Page 1208 TITLE 38—VETERANS’ BENEFITS § 7366 (1) has an appointment with the Depart- ment, whether with or without compensation; (2) is directly or indirectly involved or en- gaged in research or education and training that is approved in accordance with proce- dures established by the Under Secretary for Health for research or education and training; and (3) performs such duties under the super- vision of Department personnel. (Added Pub. L. 108–170, title IV, § 402(a)(1), Dec. 6, 2003, 117 Stat. 2061, § 7364A; renumbered § 7365, Pub. L. 111–163, title VIII, § 805(a), May 5, 2010, 124 Stat. 1179.) Editorial Notes PRIOR PROVISIONS A prior section 7365, added Pub. L. 100–322, title II, § 204(a), May 20, 1988, 102 Stat. 511, § 4165; renumbered § 7365, Pub. L. 102–40, title IV, § 401(a)(4)(B), May 7, 1991, 105 Stat. 221, which required any corporation estab- lished under this subchapter to be subject to applicable State law, was repealed by Pub. L. 111–163, title VIII, § 801(b)(2), May 5, 2010, 124 Stat. 1176. AMENDMENTS 2010—Pub. L. 111–163 renumbered section 7364A of this title as this section. § 7366. Accountability and oversight (a)(1)(A) The records of a corporation estab- lished under this subchapter shall be available to the Secretary. (B) For the purposes of sections 404(a)(1) and 406(a)(1) of title 5, the programs and operations of such a corporation shall be considered to be programs and operations of the Department with respect to which the Inspector General of the Department has responsibilities under chap- ter 4 of title 5. (2) Such a corporation shall be considered an agency for the purposes of section 716 of title 31 (relating to availability of information and in- spection of records by the Comptroller General). (b)(1) Each corporation shall submit to the Secretary each year a report providing a de- tailed statement of the operations, activities, and accomplishments of the corporation during that year. (2)(A) A corporation with revenues in excess of $500,000 for any year shall obtain an audit of the corporation for that year. (B) A corporation with annual revenues be- tween $100,000 and $500,000 shall obtain an audit of the corporation at least once every three years. (C) Any audit under this paragraph shall be performed by an independent auditor. (3) The corporation shall include in each re- port to the Secretary under paragraph (1) the following: (A) The most recent audit of the corporation under paragraph (2). (B) The most recent Internal Revenue Serv- ice Form 990 ‘‘Return of Organization Exempt from Income Tax’’ or equivalent and the appli- cable schedules under such form. (c) Each director, officer, and employee of a corporation established under this subchapter shall be subject to a conflict of interest policy adopted by that corporation. (d) The Secretary shall submit to the Commit- tees on Veterans’ Affairs of the Senate and House of Representatives an annual report on the corporations established under this sub- chapter. The report shall set forth the following information: (1) The location of each corporation. (2) The amount received by each corporation during the previous year, including— (A) the total amount received; (B) the amount received from govern- mental entities for research and the amount received from governmental entities for edu- cation; (C) the amount received from all other sources for research and the amount re- ceived from all other sources for education; and (D) if an amount received from a source re- ferred to in subparagraph (C) exceeded $25,000, information that identifies the source. (3) The amount expended by each corpora- tion during the year, including— (A) the amount expended for salary for re- search staff, the amount expended for salary for education staff, and the amount ex- pended for salary for support staff; (B) the amount expended for direct support of research and the amount expended for di- rect support of education; and (C) if the amount expended with respect to any payee exceeded $50,000, information that identifies the payee. (4) The amount expended by each corpora- tion during the year for travel conducted in conjunction with research and the amount ex- pended for travel in conjunction with edu- cation. (Added Pub. L. 100–322, title II, § 204(a), May 20, 1988, 102 Stat. 511, § 4166; renumbered § 7366 and amended Pub. L. 102–40, title IV, §§ 401(a)(4)(B), 403(a)(1), (2), May 7, 1991, 105 Stat. 221, 239; Pub. L. 104–262, title III, § 343(c)–(e), Oct. 9, 1996, 110 Stat. 3207; Pub. L. 106–117, title II, § 204(e), Nov. 30, 1999, 113 Stat. 1563; Pub. L. 107–103, title V, § 509(f), Dec. 27, 2001, 115 Stat. 997; Pub. L. 108–170, title IV, § 402(b), Dec. 6, 2003, 117 Stat. 2062; Pub. L. 111–163, title VIII, § 806, May 5, 2010, 124 Stat. 1179; Pub. L. 117–286, § 4(b)(61), Dec. 27, 2022, 136 Stat. 4350.) Editorial Notes AMENDMENTS 2022—Subsec. (a)(1)(B). Pub. L. 117–286 substituted ‘‘sections 404(a)(1) and 406(a)(1) of title 5,’’ for ‘‘sections 4(a)(1) and 6(a)(1) of the Inspector General Act of 1978,’’ and ‘‘chapter 4 of title 5.’’ for ‘‘such Act.’’ 2010—Subsec. (b). Pub. L. 111–163, § 806(a), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: ‘‘Each such corporation shall submit to the Secretary an annual report providing a detailed statement of its operations, activities, and accomplish- ments during that year. A corporation with revenues in excess of $300,000 for any year shall obtain an audit of the corporation for that year. A corporation with an- nual revenues between $10,000 and $300,000 shall obtain an independent audit of the corporation at least once every three years. Any audit under the preceding sen- tences shall be performed by an independent auditor. Page 1209 TITLE 38—VETERANS’ BENEFITS § 7381 The corporation shall include the most recent such audit in the corporation’s report to the Secretary for that year.’’ Subsec. (c). Pub. L. 111–163, § 806(b), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: ‘‘(c)(1) Each member of the board of directors of a corporation established under this subchapter, each employee of such a corporation, and each employee of the Department who is involved in the functions of the corporation during any year shall be subject to Federal laws and regulations applicable to Federal employees with respect to conflicts of interest in the performance of official functions. ‘‘(2) Each corporation established under this sub- chapter shall each year submit to the Secretary a statement signed by the executive director of the cor- poration verifying that each director and employee has certified awareness of the laws and regulations referred to in paragraph (1) and of the consequences of viola- tions of those laws and regulations in the same manner as Federal employees are required to so certify.’’ Subsec. (d)(3)(C). Pub. L. 111–163, § 806(c), substituted ‘‘$50,000’’ for ‘‘$35,000’’. 2003—Subsec. (c). Pub. L. 108–170 inserted ‘‘(1)’’ after ‘‘(c)’’, substituted ‘‘any year shall be subject’’ for ‘‘any year—(1) shall be subject’’ and ‘‘functions.’’ for ‘‘func- tions; and’’, added par. (2), and struck out former par. (2) which read as follows: ‘‘shall submit to the Sec- retary a statement signed by the executive director of the corporation certifying that each director and em- ployee is aware of, and has complied with, such laws and regulations in the same manner as Federal employ- ees are required to.’’ 2001—Subsec. (d)(2)(D). Pub. L. 107–103 made technical correction to directory language of Pub. L. 106–117, § 204(e)(3). See 1999 Amendment note below. 1999—Subsec. (d)(2)(B). Pub. L. 106–117, § 204(e)(1), in- serted ‘‘for research and the amount received from gov- ernmental entities for education’’ before the semicolon at end. Subsec. (d)(2)(C). Pub. L. 106–117, § 204(e)(2), inserted ‘‘for research and the amount received from all other sources for education’’ before ‘‘; and’’. Subsec. (d)(2)(D). Pub. L. 106–117, § 204(e)(3), as amend- ed by Pub. L. 107–103, § 509(f), substituted ‘‘an amount received’’ for ‘‘the amount received’’. Subsec. (d)(3)(A). Pub. L. 106–117, § 204(e)(4), sub- stituted ‘‘, the amount expended for salary for edu- cation staff, and the amount expended’’ for ‘‘and’’. Subsec. (d)(3)(B). Pub. L. 106–117, § 204(e)(5), inserted ‘‘and the amount expended for direct support of edu- cation’’ after ‘‘research’’. Subsec. (d)(4). Pub. L. 106–117, § 204(e)(6), added par. (4). 1996—Subsec. (b). Pub. L. 104–262, § 343(c), substituted ‘‘A corporation with revenues in excess of $300,000 for any year shall obtain an audit of the corporation for that year. A corporation with annual revenues between $10,000 and $300,000 shall obtain an independent audit of the corporation at least once every three years. Any audit under the preceding sentences shall be performed by an independent auditor. The corporation shall in- clude the most recent such audit’’ for ‘‘The corporation shall obtain a report of independent auditors con- cerning the receipts and expenditures of funds by the corporation during that year and shall include that re- port’’. Subsec. (c)(2). Pub. L. 104–262, § 343(d), substituted ‘‘a statement signed by the executive director of the cor- poration certifying that each director and’’ for ‘‘an an- nual statement signed by the director or employee cer- tifying that the director or’’. Subsec. (d). Pub. L. 104–262, § 343(e), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: ‘‘The Secretary shall submit to the Commit- tees on Veterans’ 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.’’ 1991—Pub. L. 102–40, § 401(a)(4)(B), renumbered section 4166 of this title as this section. Subsec. (a)(1)(A). Pub. L. 102–40, § 403(a)(1), sub- stituted ‘‘Secretary’’ for ‘‘Administrator’’. Subsec. (a)(1)(B). Pub. L. 102–40, § 403(a)(2), substituted ‘‘Department’’ for ‘‘Veterans’ Administration’’ in two places. Subsec. (b). Pub. L. 102–40, § 403(a)(1), substituted ‘‘Secretary’’ for ‘‘Administrator’’ in two places. Subsec. (c). Pub. L. 102–40, § 403(a)(2), substituted ‘‘De- partment’’ for ‘‘Veterans’ Administration’’ in introduc- tory provisions. Subsec. (c)(2). Pub. L. 102–40, § 403(a)(1), substituted ‘‘Secretary’’ for ‘‘Administrator’’. Subsec. (d). Pub. L. 102–40, § 403(a)(1), substituted ‘‘Secretary’’ for ‘‘Administrator’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2001 AMENDMENT Pub. L. 107–103, title V, § 509(f), Dec. 27, 2001, 115 Stat. 997, provided that the amendment made by section 509(f) is effective Nov. 30, 1999, and as if included in Pub. L. 106–117 as originally enacted. [§ 7367. Repealed. Pub. L. 107–14, § 8(a)(14)(A), June 5, 2001, 115 Stat. 35] Section, added Pub. L. 100–322, title II, § 204(a), May 20, 1988, 102 Stat. 512, § 4167; renumbered § 7367 and amended Pub. L. 102–40, title IV, §§ 401(a)(4)(B), 403(a)(1), May 7, 1991, 105 Stat. 221, 239, required a report to Con- gress on the experience through the end of fiscal year 1990 under this subchapter. [§ 7368. Repealed. Pub. L. 110–387, title VIII, § 806(a), Oct. 10, 2008, 122 Stat. 4141] Section, added Pub. L. 100–322, title II, § 204(a), May 20, 1988, 102 Stat. 512, § 4168; renumbered § 7368, Pub. L. 102–40, title IV, § 401(a)(4)(B), May 7, 1991, 105 Stat. 221; amended Pub. L. 102–291, § 3(b), May 20, 1992, 106 Stat. 179; Pub. L. 104–262, title III, § 343(a), Oct. 9, 1996, 110 Stat. 3207; Pub. L. 106–419, title IV, § 402(g), Nov. 1, 2000, 114 Stat. 1863; Pub. L. 108–170, title IV, § 402(c), Dec. 6, 2003, 117 Stat. 2062, related to the expiration of author- ity for corporations to be established under this sub- chapter. SUBCHAPTER V—RESEARCH AND DEVELOPMENT Editorial Notes PRIOR PROVISIONS A prior subchapter V of this chapter consisting of sections 4151 and 4152, related to quality assurance, prior to repeal by Pub. L. 102–40, title IV, § 401(a)(2)(A), May 7, 1991, 105 Stat. 210. See Prior Provisions notes set out under section 4114 of this title. A prior subchapter VI of this chapter was redesig- nated as subchapter V. AMENDMENTS 2022—Pub. L. 117–328, div. U, title I, § 182(a), Dec. 29, 2022, 136 Stat. 5436, added subchapter V. § 7381. Office of Research and Development (a) OFFICE OF RESEARCH AND DEVELOPMENT.— There is in the Veterans Health Administration an Office of Research and Development (in this section referred to as the ‘‘Office’’). (b) PURPOSES.—The function of the Office is to serve veterans through a full spectrum of re- search (including pre-clinical, clinical, and health systems science), technology transfer, and application.