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‘‘(i) IN
GENERAL.—The ex officio 
members of the Board under subparagraph 
(B) shall, by majority vote, appoint to the 
Board 12 individuals, from a list of can-
didates to be provided by the National 
Academy of Sciences. Of such appointed 
members— 
‘‘(I) 4 shall be representatives of 
the general pharmaceutical, device, 
food, cosmetic, and biotechnology in-
dustries; 
‘‘(II) 3 shall be representatives of 
academic research organizations; 
‘‘(III) 2 shall be representatives 
of Government agencies, including the 
Food and Drug Administration and 
the National Institutes of Health; 
‘‘(IV) 2 shall be representatives 
of patient or consumer advocacy orga-
nizations; and 
‘‘(V) 1 shall be a representative 
of health care providers. 
‘‘(ii) REQUIREMENT.—The ex officio 
members shall ensure the Board member-
ship includes individuals with expertise in 
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areas including the sciences of developing, 
manufacturing, and evaluating the safety 
and effectiveness of devices, including 
diagnostics, biologics, and drugs, and the 
safety of food, food ingredients, and cos-
metics. 
‘‘(D) INITIAL MEETING.— 
‘‘(i) IN GENERAL.—Not later than 30 
days after the date of the enactment of 
this Act, the Secretary shall convene a 
meeting of the ex officio members of the 
Board to— 
‘‘(I) incorporate the Foundation; 
and 
‘‘(II) appoint the members of the 
Board in accordance with subpara-
graph (C). 
‘‘(ii) SERVICE OF EX OFFICIO MEM-
BERS.—Upon the appointment of the 
members of the Board under clause (i)(II), 
the terms of service of the ex officio mem-
bers of the Board as members of the 
Board shall terminate. 
‘‘(iii) CHAIR.—The ex officio members 
of the Board under subparagraph (B) shall 
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designate an appointed member of the 
Board to serve as the Chair of the Board. 
‘‘(2) DUTIES OF BOARD.—The Board shall— 
‘‘(A) establish bylaws for the Foundation 
that— 
‘‘(i) are published in the Federal Reg-
ister and available for public comment; 
‘‘(ii) establish policies for the selection 
of the officers, employees, agents, and con-
tractors of the Foundation; 
‘‘(iii) establish policies, including eth-
ical standards, for the acceptance, solicita-
tion, and disposition of donations and 
grants to the Foundation and for the dis-
position of the assets of the Foundation, 
including appropriate limits on the ability 
of donors to designate, by stipulation or re-
striction, the use or recipient of donated 
funds; 
‘‘(iv) establish policies that would sub-
ject all employees, fellows, and trainees of 
the Foundation to the conflict of interest 
standards under section 208 of title 18, 
United States Code; 
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‘‘(v) establish licensing, distribution, 
and publication policies that support the 
widest and least restrictive use by the pub-
lic of information and inventions developed 
by the Foundation or with Foundation 
funds to carry out the duties described in 
paragraphs (6) and (7) of subsection (c), 
and may include charging cost-based fees 
for published material produced by the 
Foundation; 
‘‘(vi) specify principles for the review 
of proposals and awarding of grants and 
contracts that include peer review and that 
are consistent with those of the Founda-
tion for the National Institutes of Health, 
to the extent determined practicable and 
appropriate by the Board; 
‘‘(vii) specify a cap on administrative 
expenses for recipients of a grant, con-
tract, or cooperative agreement from the 
Foundation; 
‘‘(viii) establish policies for the execu-
tion of memoranda of understanding and 
cooperative agreements between the Foun-
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dation and other entities, including the 
Food and Drug Administration; 
‘‘(ix) establish policies for funding 
training fellowships, whether at the Foun-
dation, academic or scientific institutions, 
or the Food and Drug Administration, for 
scientists, doctors, and other professionals 
who are not employees of regulated indus-
try, to foster greater understanding of and 
expertise 
in 
new 
scientific 
tools, 
diagnostics, manufacturing techniques, and 
potential barriers to translating basic re-
search into clinical and regulatory practice; 
‘‘(x) specify a process for annual 
Board review of the operations of the 
Foundation; and 
‘‘(xi) establish specific duties of the 
Executive Director; 
‘‘(B) prioritize and provide overall direc-
tion to the activities of the Foundation; 
‘‘(C) evaluate the performance of the Exec-
utive Director; and 
‘‘(D) carry out any other necessary activi-
ties regarding the functioning of the Founda-
tion. 
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‘‘(3) TERMS AND VACANCIES.— 
‘‘(A) TERM.—The term of office of each 
member of the Board appointed under para-
graph (1)(C) shall be 4 years, except that the 
terms of offices for the initial appointed mem-
bers of the Board shall expire on a staggered 
basis as determined by the ex officio members. 
‘‘(B) VACANCY.—Any vacancy in the mem-
bership of the Board— 
‘‘(i) shall not affect the power of the 
remaining members to execute the duties 
of the Board; and 
‘‘(ii) shall be filled by appointment by 
the appointed members described in para-
graph (1)(C) by majority vote. 
‘‘(C) PARTIAL TERM.—If a member of the 
Board does not serve the full term applicable 
under subparagraph (A), the individual ap-
pointed under subparagraph (B) to fill the re-
sulting vacancy shall be appointed for the re-
mainder of the term of the predecessor of the 
individual. 
‘‘(D) SERVING PAST TERM.—A member of 
the Board may continue to serve after the expi-
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