### §7361. Authority to establish; status

(a) The Secretary may authorize the establishment at any Department medical center of a nonprofit corporation to provide a flexible funding mechanism for the conduct of approved research and education at the medical center. Such a corporation may be established to facilitate either research or education or both research and education.

(b)(1) Subject to paragraph (2), a corporation established under this subchapter may facilitate the conduct of research, education, or both at more than one medical center. Such a corporation shall be known as a "multi-medical center research corporation".

(2) The board of directors of a multi-medical center research corporation under this subsection shall include the official at each Department medical center concerned who is, or who carries out the responsibilities of, the medical center director of such center as specified in section 7363(a)(1)(A)(i) of this title.

(3) In facilitating the conduct of research, education, or both at more than one Department medical center under this subchapter, a multi-medical center research corporation may administer receipts and expenditures relating to such research, education, or both, as applicable, performed at the Department medical centers concerned.

(c) Any corporation established under this subchapter shall be established in accordance with the nonprofit corporation laws of the State in which the applicable Department medical center is located and shall, to the extent not inconsistent with any Federal law, be subject to the laws of such State. In the case of any multi-medical center research corporation that facilitates the conduct of research, education, or both at Department medical centers located in different States, the corporation shall be established in accordance with the nonprofit corporation laws of the State in which one of such Department medical centers is located.

(d)(1) Except as otherwise provided in this subchapter or under regulations prescribed by the Secretary, any corporation established under this subchapter, and its officers, directors, and employees, shall be required to comply only with those Federal laws, regulations, and executive orders and directives that apply generally to private nonprofit corporations.

(2) A corporation under this subchapter is not—

(A) owned or controlled by the United States; or

(B) an agency or instrumentality of the United States.

(e) If by the end of the four-year period beginning on the date of the establishment of a corporation under this subchapter the corporation is not recognized as an entity the income of which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986, the Secretary shall dissolve the corporation.

(f) A corporation established under this subchapter may act as a multi-medical center research corporation under this subchapter in accordance with subsection (b) if—

(1) the board of directors of the corporation approves a resolution permitting facilitation by the corporation of the conduct of research, education, or both at the other Department medical center or medical centers concerned; and

(2) the Secretary approves the resolution of the corporation under paragraph (1).

(Added Pub. L. 100–322, title II, §204(a), May 20, 1988, 102 Stat. 510, §4161; renumbered §7361 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. 102–291, §3(a), May 20, 1992, 106 Stat. 179; Pub. L. 104–262, title III, §343(b), Oct. 9, 1996, 110 Stat. 3207; Pub. L. 106–117, title II, §204(a), Nov. 30, 1999, 113 Stat. 1562; Pub. L. 111–163, title VIII, §801(a), (b)(1), (c), (d), May 5, 2010, 124 Stat. 1175, 1176.)

#### **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

2010—Subsec. (a). Pub. L. 111–163, §801(c)(1), struck out "Except as otherwise required in this subchapter or under regulations prescribed by the Secretary, any such corporation, and its directors and employees, shall be required to comply only with those Federal laws, regulations, and executive orders and directives which apply generally to private nonprofit corporations." after "the medical center."

Subsecs. (b) to (d). Pub. L. 111–163, §801(a)(1)(B), (b)(1), (c)(2), added subsecs. (b) to (d). Former subsec. (b) redesignated (e).

Subsec. (e). Pub. L. 111–163, §801(d), inserted "section 501(c)(3) of" after "exempt from taxation under".

Pub. L. 111–163, §801(a)(1)(A), redesignated subsec. (b) as (e).

Subsec. (f). Pub. L. 111–163, §801(a)(2), added subsec. (f).

1999—Subsec. (a). Pub. L. 106–117 inserted "and education" after "research" and inserted at end "Such a corporation may be established to facilitate either research or education or both research and education."

1996—Subsec. (b). Pub. L. 104–262 struck out "section 501(c)(3) of" before "the Internal Revenue Code of 1986".

1992—Subsec. (b). Pub. L. 102–291 substituted "four-year period" for "three-year period".

1991—Pub. L. 102–40, §401(a)(4)(B), renumbered section 4161 of this title as this section.

Subsec. (a). Pub. L. 102–40, §403(a)(2), substituted "Department" for "Veterans' Administration".

Pub. L. 102–40, §403(a)(1), substituted "Secretary" for "Administrator" in two places.

Subsec. (b). Pub. L. 102–40, §403(a)(1), substituted "Secretary" for "Administrator".

#### **Statutory Notes and Related Subsidiaries**

#### Effective Date of 1992 Amendment

Pub. L. 102–291, §3(c), May 20, 1992, 106 Stat. 179, provided that: "The amendments made by subsections (a) and (b) [amending this section and section 7368 of this title] shall take effect as of October 1, 1991."

#### Ratification of Actions of Secretary of Veterans Affairs During Lapsed Period

Pub. L. 102–291, §3(d), May 20, 1992, 106 Stat. 179, provided that: "The following actions of the Secretary of Veterans Affairs during the period beginning on October 1, 1991, and ending on the date of the enactment of this Act [May 20, 1992] are hereby ratified:

"(1) A failure to dissolve a nonprofit corporation established under section 7361(a) of title 38, United States Code, that, within the three-year period beginning on the date of the establishment of the corporation, was not recognized as an entity the income of which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 [26 U.S.C. 501(c)(3)].

"(2) The establishment of a nonprofit corporation for approved research under section 7361(a) of title 38, United States Code."