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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10536 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10536

 To amend title 38, United States Code, to establish a mission of the 
  Veterans Health Administration to innovate, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 19, 2024

Mr. McGarvey (for himself and Mr. Levin) introduced the following bill; 
        which was referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL

 
 To amend title 38, United States Code, to establish a mission of the 
  Veterans Health Administration to innovate, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Innovation for VA Technology and 
Entrepreneurship Act'' or the ``INNOVATE Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Department of Veterans Affairs offers critical 
        health care services through the Veterans Health Administration 
        (in this section referred to as the ``VHA''), serving as the 
        largest integrated health care system, largest medical training 
        organization, and one of the largest employers of health care 
        professionals in the United States.
            (2) Despite its size, assets, and reach, the VHA struggles 
        to engage with private sector entities, particularly early-
        stage businesses, due to bureaucratic hurdles.
            (3) If provided new authorities through legislation, the 
        VHA is positioned to create a paradigm shift in health care, 
        revitalizing the way it develops and innovates to improve 
        clinical care and access to health care for veterans, and 
        modeling transformational health care to the private sector, 
        ultimately benefitting all Americans.
            (4) Establishing a fifth mission of the VHA to innovate 
        will ingrain an innovative mindset across all VHA operations, 
        enhance the existing missions and spearhead a new American way 
        in health care, improving health outcomes for veterans, the 
        health of the Nation, and national security.
            (5) The Office of Innovation of the VHA will authorize, 
        fund, and streamline processes, enhancing the VHA network of 
        innovation programs and fostering collaboration and 
        partnerships with industry, government, and academia.

SEC. 3. INNOVATION IN THE VETERANS HEALTH ADMINISTRATION.

    (a) Mission.--Section 305(b) of title 38, United States Code, is 
amended--
            (1) by inserting ``(1)'' before ``The Under Secretary''; 
        and
            (2) by adding at the end the following new paragraph:
    ``(2) The missions of the Veterans Health Administration are the 
following:
            ``(A) Providing health care to eligible veterans.
            ``(B) Supporting research to benefit veterans and the 
        Nation.
            ``(C) Providing education to health care providers in 
        training.
            ``(D) Supporting emergency response.
            ``(E) Fostering innovation to advance health care 
        technology and services for veterans and the Nation.''.
    (b) Office of Innovation.--
            (1) Establishment.--Chapter 73 of title 38, United States 
        Code, is amended by adding at the end the following new 
        subchapter:

                      ``SUBCHAPTER VI--INNOVATION

``Sec. 7391. Office of Innovation
    ``(a) Establishment.--There is in the Veterans Health 
Administration an Office of Innovation (in this section referred to as 
the `Office'). The Office shall be a Federal laboratory, as such term 
is defined in section 4 of the Stevenson-Wydler Technology Innovation 
Act of 1980 (Public Law 96-480; 15 U.S.C. 3703).
    ``(b) Function.--The function of the Office is to foster innovation 
to advance health care and services for veterans and the Nation by--
            ``(1) researching, developing, and implementing innovative 
        technologies and services to deliver the best health care 
        practicable to veterans;
            ``(2) assisting, funding, and partnering with non-
        Department entities that can rapidly accelerate the research, 
        development, commercialization, and implementation of 
        technologies and services described in paragraph (1); and
            ``(3) adopting a comprehensive approach that works across 
        traditional silos to effectively and efficiently--
                    ``(A) use financial and human resources; and
                    ``(B) expedite the development, commercialization, 
                and deployment, of such technologies and solutions.
    ``(c) Chief Innovation Officer.--The head of the Office is the 
Chief Innovation Officer. The Chief Innovation Officer shall report 
directly to the Under Secretary for Health.
    ``(d) Organization and Personnel.--The Office shall be organized in 
such manner, and its personnel shall perform such duties and have such 
titles, as the Secretary may prescribe pursuant to this subchapter.
``Sec. 7392. Hiring authorities
    ``(a) Exemption From Civil Service Laws for Certain Employees.--(1) 
To carry out the function of the Office of Innovation, the Secretary 
may--
            ``(A) appoint not more than 250 professional, clinical, and 
        other employees (which may include permanent, temporary, or 
        term-limited appointments) of the Department, without regard 
        to--
                    ``(i) any provision of title 5 governing 
                appointments and removals under the civil service laws; 
                or
                    ``(ii) any provision of chapter 7 of this title; 
                and
            ``(B) fix the base pay compensation of an employee 
        appointed under this subsection--
                    ``(i) without regard to any other provision of law, 
                including the General Schedule under section 5332 of 
                title 5; and
                    ``(ii) at a rate determined by the Secretary that 
                does not exceed the amount of annual compensation 
                (excluding expenses) established by section 102 of 
                title 3.
    ``(2) In carrying out paragraph (1), the Secretary shall--
            ``(A) make lawful efforts to recruit a diverse workforce, 
        including individuals under represented in clinical and other 
        relevant technical and non-technical areas of expertise, 
        including racial and ethnic minorities; and
            ``(B) recruit employees with a variety of professional 
        experiences and backgrounds, or demonstrated expertise in a 
        wide range of relevant disciplines and management skills.
    ``(3) If the Secretary determines that maximum number of positions 
under paragraph (1) is insufficient, the Secretary shall submit to the 
Committees on Veterans' Affairs of the Senate and House of 
Representatives a written notification of such determination.
    ``(4) The Secretary may enter into an agreement with a private 
entity to identify and recruit highly qualified candidates for a 
position described in paragraph (1).
    ``(b) Other Employees.--The Secretary may use any other authority 
under this title to hire administrative, financial, clerical, and other 
employees necessary to support employees appointed under subsection 
(a).
    ``(c) Waiver of Intergovernmental Personnel Act Mobility Program 
Limits.--The Secretary may waive the limit on the period and number of 
assignments required under section 3372(a) of title 5 with respect to 
an individual who carries out the function established by section 
7391(b) of this title under the mobility program under subchapter VI of 
chapter 33 of such title (commonly referred to as the 
`Intergovernmental Personnel Act Mobility Program').
    ``(d) Authority To Accept Federal Detailees.--Upon request of the 
Secretary, the head of any Federal department or agency may detail, on 
a reimbursable or nonreimbursable basis (as determined by the Secretary 
and such head), any personnel of that department or agency to the 
Department to assist in carrying out the function of the Office of 
Innovation. Such a detail may not exceed three years.
    ``(e) Recordkeeping.--The Secretary shall keep records regarding 
the exercise of authorities under this section. Such records shall 
include the following:
            ``(1) the number of appointments made;
            ``(2) the types of positions filled, including titles, 
        occupational series, and grade;
            ``(3) the number of positions filled for which notices were 
        publicly issued;
            ``(4) the number of qualified applicants who applied for 
        such positions;
            ``(5) the qualification criteria for such positions; and,
            ``(6) the demographic information of individuals hired for 
        such positions.
    ``(f) Report.--Not less than once annually, the Secretary shall 
submit to the Committees on Veterans' Affairs of the Senate and House 
of Representatives a report on appointments under this section. Such 
report shall include the number of such appointments and an explanation 
of how such employees carry out the function established by section 
7391(b) of this title.
``Sec. 7393. Acceleration fund
    ``(a) Establishment.--There is established an account, to be known 
as the `Veterans Health Care Innovation Acceleration Fund' (in this 
section referred to as the `Fund'), which shall be available to carry 
out the function of the Office of Innovation, in addition to such 
amounts that are otherwise available for such purpose. To manage the 
fund, the Secretary may--
            ``(1) accept monies from authorized sources for the Fund;
            ``(2) accept and distribute monies within the Department as 
        the Secretary determines necessary;
            ``(3) establish a health care franchise function; and
            ``(4) pay for expenses (including information technology or 
        acquisition, advisory, or legal services, whether provided by 
        an employee of the Department or pursuant to an agreement with 
        a non-Department entity) that the Secretary determines 
        necessary to carry out the function of the Office of 
        Innovation, without regard to restrictions on funding type.
    ``(b) Authorization of Appropriations.--(1) There are authorized to 
be appropriated to the Fund such sums as may be necessary to carry out 
the function of the Office of Innovation. Such sums shall remain 
available until expended or five years after receipt.
    ``(2) The budget request for the Fund shall be separate from the 
rest of the budget of the Department.
    ``(3) Appropriations for the Fund shall be separate and distinct 
from the rest of the budget for the Department and not affect annual 
operational dollar allocations.
    ``(c) Non-Profit Corporations.--To support the administration of 
the Fund with regard to acceptance of certain types of external 
funding, the Secretary shall authorize existing nonprofit corporations, 
established under section 7361 of this title, to carry out the function 
of the Office of Innovation.
    ``(d) Report to Congress.--The Secretary shall submit to Congress a 
detailed account, program, and project allocations of the amount 
recommended for allocation in a fiscal year from amounts in the Fund--
            ``(1) for Fiscal Years 2026 and 2027, not later than 60 
        days after the date of enactment of the Innovation for VA 
        Technology and Entrepreneurship Act; and
            ``(2) for each fiscal year thereafter through 2035, as part 
        of the annual budget submission of the President under section 
        1105(a) of title 31.
``Sec. 7394. Agreements with non-Department entities for access to key 
              assets of the Department
    ``(a) Authority.--The Secretary may enter into an agreement under 
which the Secretary provides a non-Department entity access to a key 
asset of the Department so such entity may develop a technology or 
service that--
            ``(1) supports the strategic plan of the Department 
        regarding health care; and
            ``(2) addresses a veteran-specific core competency.
    ``(b) Fees.--(1) Subject to paragraphs (2) and (3), the Secretary 
shall negotiate fees under this section on a case-by-case basis, taking 
into consideration factors including the costs and benefits to the 
United States of such agreement.
    ``(2) The Secretary shall discount a fee under this section if the 
entity is a small business concern owned and controlled by a veteran.
    ``(3) The Secretary shall not charge a fee under this section if 
the entity is a small business concern owned and controlled by a 
veteran with a service-connected disability.
    ``(c) Definitions.--In this section:
            ``(1) The term `key asset' includes the following:
                    ``(A) Subject matter expertise & perspective.
                    ``(B) Properly protected data sets.
                    ``(C) Research evaluations, studies, and trials.
                    ``(D) Customer feedback and insights.
                    ``(E) Simulation and production test environments.
                    ``(F) Health care professionals, students, and 
                trainees.
                    ``(G) Advanced manufacturing and three-dimensional 
                printing.
                    ``(H) Engagement from other Federal entities.
                    ``(I) A network of academic affiliates.
            ``(2) The term `veteran-specific core competency' means a 
        health condition that the Secretary determines 
        disproportionately affects veterans. Such term includes the 
        following:
                    ``(A) Prostheses.
                    ``(B) Spinal cord injury.
                    ``(C) Toxic exposure.
                    ``(D) Traumatic brain injury.
                    ``(E) Mental health (including suicide prevention 
                and post-traumatic stress disorder);
                    ``(F) Diabetes.
                    ``(G) Heart disease.
                    ``(H) Obesity.
                    ``(I) Cancer.
``Sec. 7395. Advance market commitments
    ``(a) Authority.--The Secretary may enter into an advance market 
commitment, under which the Secretary shall guarantee to purchase, for 
a predetermined price, a technology or service provided by an entity 
that addresses an unmet need in the provision of health care to 
veterans.
    ``(b) Requirements.--An advanced market commitment under this 
section shall include the following:
            ``(1) Clearly defined and transparent rules.
            ``(2) Clear definition of the technology or service to 
        ensure safety, effectiveness, and feasible delivery.
            ``(3) Dispute settlement mechanisms.
            ``(4) The ability to modify the terms of the agreement on 
        the basis of new information regarding the number of veterans 
        to be served with such technology or service.
    ``(c) Report.--Not later than 120 days after executing an advance 
market agreement, the Secretary shall submit to the House and Senate 
Committees on Veterans Affairs an annual report on the status and 
efficacy of such agreement.
``Sec. 7396. Other transactional authorities
    ``(a) Authority.--The Secretary may enter into an agreement, other 
than a contract, cooperative agreement, or grant agreement, with a non-
Department entity that principally operates in the United States, to 
conduct activities associated with basic or applied research, 
prototyping, or production deployment, if--
            ``(1) the Senior Procurement Executive of the Department 
        has determined that a contract, cooperative agreement, or grant 
        agreement is not feasible or appropriate; and
            ``(2) the cost to the United States to carry out such 
        agreement does not exceed--
                    ``(A) $10,000,000 (including all options); or
                    ``(B) a greater amount that the Senior Procurement 
                Executive determines appropriate.
    ``(b) Limitation.--The only kinds of research on human embryonic 
stem cells that may be conducted pursuant to an agreement under this 
section are the following:
            ``(1) Research involving the derivation and use of human 
        embryonic germ cells from fetal tissue that complies with--
                    ``(A) sections 498, 498A, and 498B of the Public 
                Health Service Act (42 U.S.C. 289g, 289g-1, 289-2);
                    ``(B) title 45, Code of Federal Regulations, part 
                46, subpart B;
                    ``(C) applicable regulations of the Food and Drug 
                Administration; and
                    ``(D) any other applicable Federal, State, or local 
                law.
            ``(2) Research on existing human embryonic stem cell lines 
        in accordance with criteria established by the Director of the 
        National Institutes of Health.
    ``(c) Reimbursement.--Any amounts received by the Secretary under 
this section shall be used to reimburse the accounts from which funds 
were used to incur the expenses of carrying out this section.
    ``(d) Reporting; Transparency.--The Secretary shall--
            ``(1) submit to the appropriate congressional committees--
                    ``(A) a copy of each determination under subsection 
                (a)(1);
                    ``(B) not less than twice each year, a report on 
                agreements made under this section; and
                    ``(C) upon request, any information regarding an 
                agreement made under this section; and
            ``(2) ensure that the terms of an agreement under this 
        section permit the Comptroller General of the United States to 
        examine the records relating to such agreement of--
                    ``(A) an entity that enters into such an agreement; 
                or
                    ``(B) an entity that otherwise participates in the 
                performance of such agreement.
    ``(e) Guidance.--The Senior Procurement Executive shall issue 
guidance regarding an agreement under this section.
    ``(f) Definitions.--In this section:
            ``(1) The term `appropriate congressional committees' means 
        the following:
                    ``(A) The Committees on Veterans' Affairs of the 
                House of Representatives and the Senate.
                    ``(B) The Subcommittees on Military Construction, 
                Veterans' Affairs, and Related Agencies of the 
                Committees on Appropriations of the House of 
                Representatives and the Senate.
            ``(2) The term `Senior Procurement Executive' means the 
        official of the Department designated under section 1702(c) of 
        title 41.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following:

                       ``subchapter vi--innovation

        ``Sec. 7391. Office of Innovation.
        ``Sec. 7392. Hiring authorities.
        ``Sec. 7393. Acceleration fund.
        ``Sec. 7394. Agreements with non-Department entities for access 
                            to key assets of the Department.
        ``Sec. 7395. Advance market commitments.
        ``Sec. 7396. Other transactional authorities.
    (c) Conforming Amendment.--Section 7361 of title 38, United States 
Code, is amended--
            (1) in subsection (a), by striking ``either research or 
        education or both research and education'' and inserting 
        ``research, education, or innovation under subchapter VI of 
        this chapter, or any combination thereof''; and
            (2) in subsection (b)(1), by striking ``research, 
        education, or both'' and inserting ``research, education, or 
        innovation under subchapter VI of this chapter, or any 
        combination thereof''.
    (d) Implementation.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall carry 
out the amendments made by this section.
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