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AUTHORIZING STATUTE - 38 USC 7361
Discussion
In 1988, Congress passed PL 100-322 (codified at 38 USC 7361) which allowed VA medical centers to establish nonprofit research corporations (NPCs),
forming a unique partnership that dramatically broadened VA's ability to accept
and administer private and non-VA public funds to support VA's research program.
This legislation provided VA medical centers with a flexible funding mechanism
to administer non-VA research funds. Making these corporations separate,
state-chartered entities was important in delineating the separation between
VA and the corporations, and in providing the oversight of local management.
Making them subject to federal oversight provided assurance that they would be
operated in accordance with the highest standards of fiscal and administrative
management.
The initial purpose of the VA affiliated NPCs was to facilitate research at the VA medical centers where they have been established. Subsequently, Congress expanded their authority to include supporting VA’s patient and staff education and training missions. All funds administered by the NPCs
must be used to support VA research related activities or education and training.
To keep the statute brief, Congress largely left it up to VA to regulate the VA-affiliated NPCs. While VA has never pursued regulations
at the federal level for inclusion in the Code of Federal Regulations, the Office of General Counsel has spelled
out its interpretation of the intent of Congress and the scope of the NPCs in Handbooks 1200.17 and
1400.2 of the VHA Research and Development manual and the VHA Education manual respectively.
Helpful link
Authorizing
Statute - 38 USC 7361
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