I
103D CONGRESS
1ST SESSION
H. R. 3090
To amend title 38, United States Code, to improve the ability of the Depart-
ment of Veterans Affairs to provide continuity of care in the rehabilita-
tion of chronically mentally ill veterans, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 15, 1993
Mr. KREIDLER introduced the following bill; which was referred to the
Committee on Veterans’ Affairs
A BILL
To amend title 38, United States Code, to improve the
ability of the Department of Veterans Affairs to provide
continuity of care in the rehabilitation of chronically
mentally ill veterans, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. AUTHORITY TO ESTABLISH NONPROFIT COR-
PORATIONS.
(a) Chapter 17 of title 38, United States Code, is
amended by inserting after section 1718 the following new
section:
‘‘§ 1718A. Nonprofit corporations
‘‘(a) The Secretary may authorize the establishment
at any Veterans Health Administration facility of a non-
profit corporation (1) to arrange for therapeutic work for
patients of such facility or patients of other such Depart-
ment facilities pursuant to section 1718(b) of this title,
and (2) to provide a flexible funding mechanism to achieve
the purposes of section 1718 of this title.
‘‘(b) The Secretary shall provide for the appointment
of a board of directors for any corporation established
under this section and shall determine the number of di-
rectors and the composition of the board of directors. The
board of directors shall include—
‘‘(1) the director of the facility and other offi-
cials or employees of the facility; and
‘‘(2) members appointed from among individ-
uals who are not officers or employees of the De-
partment of Veterans Affairs.
‘‘(c) Each such corporation shall have an executive
director who shall be appointed by the board of directors
with concurrence of the Under Secretary for Health of the
Department. The executive director of a corporation shall
be responsible for the operations of the corporation and
shall have such specific duties and responsibilities as the
board may prescribe.
‘‘(d) A corporation established under this section
may—
‘‘(1) arrange with the Department of Veterans
Affairs under section 1718(b)(2) of this title to pro-
vide for therapeutic work for patients;
‘‘(2) accept gifts and grants from, and enter
into contracts with, individuals and public and pri-
vate entities solely to carry out the purposes of this
section; and
‘‘(3) employ such employees as it considers nec-
essary for such purposes and fix the compensation
of such employees.
‘‘(e)(1) Except as provided in paragraph (2), any
funds received by a corporation established under this sec-
tion through arrangements authorized under subsection
(d)(1) in excess of amounts reasonably required to carry
out obligations of the corporation authorized under sub-
section (d)(3) shall be deposited in or credited to the Spe-
cial Therapeutic and Rehabilitation Activities Fund estab-
lished under section 1718(c) of this title.
‘‘(2) The Secretary, in accordance with guidelines
which the Secretary shall prescribe, may authorize a cor-
poration established under this section to retain funds de-
rived from arrangements authorized under subsection
(d)(1).
‘‘(3) Any funds received by a corporation established
under this section through arrangements authorized under
subsection (d)(2) may be transferred to the Special Thera-
peutics and Rehabilitation Activities Fund.
‘‘(f) A corporation established under this section shall
be established in accordance with the nonprofit corpora-
tion laws of the State in which the applicable medical facil-
ity is located and shall, to the extent not inconsistent with
Federal law, be subject to the laws of such State.
‘‘(g)(1)(A) The records of a corporation established
under this section shall be available to the Secretary.
‘‘(B) For the purposes of sections 4(a)(1) and 6(a)(1)
of the Inspector General Act of 1978, 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 re-
sponsibilities under such Act.
‘‘(2) Such a corporation shall be considered an agen-
cy for the purposes of section 716 of title 31 (relating to
availability of information and inspection of records by the
Comptroller General).
‘‘(3) Each such corporation shall submit to the Sec-
retary an annual report providing a detailed statement of
its operations, activities, and accomplishments during that
year. The corporation shall obtain a report of independent
auditors concerning the receipts and expenditures of funds
by the corporation during that year and shall include that
report in the corporation’s report to the Secretary for that
year.
‘‘(4) Each member of the board of directors of a cor-
poration established under this section, each employee of
such corporation, and each employee of the Department
who is involved in the functions of the corporation during
any year shall—
‘‘(A) be subject to Federal laws and regulations
applicable to Federal employees with respect to con-
flicts of interest in the performance of official func-
tions; and
‘‘(B) submit to the Secretary an annual state-
ment signed by the director or employee certifying
that the director or employee is aware of, and has
complied with, such laws and regulations in the
same manner as Federal employees are required to.
‘‘(h) The Secretary shall submit to the Committees
on Veterans’ Affairs of the Senate and House of Rep-
resentatives an annual report on the number and location
of corporations established and the amount of the con-
tributions made to each such corporation.
‘‘(i) No corporation may be established under this
section after September 30, 1999.
‘‘(j) If by the end of the four-year period beginning
on the date of the establishment of a corporation under
this section the corporation is not recognized as an entity
the income of which is exempt from taxation under the
Internal Revenue Code of 1986, the Secretary shall dis-
solve the corporation.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 1718 the following new
item:
‘‘1718A. Nonprofit corporations.’’.
SEC. 2. EXTENSION OF DEMONSTRATION PROGRAM.
Section 7 of Public Law 102–54 (105 Stat. 269; 38
U.S.C. 618 note) is amended—
(1) in subsection (a), by striking out ‘‘1994’’
and inserting in lieu thereof ‘‘1997’’;
(2) in subsection (c)—
(A) by striking out ‘‘no more than 50’’;
and
(B) by striking out ‘‘of this subsection.’’
and inserting in lieu thereof ‘‘of this sub-
section—
‘‘(1) at no more than 55 sites during fiscal year
1994;
‘‘(2) at no more than 60 sites during fiscal year
1995;
‘‘(3) at no more than 65 sites during fiscal year
1996; and
‘‘(4) at no more than 70 sites during fiscal year
1997.’’; and
(3) in subsection (k), by inserting after the sec-
ond sentence the following: ‘‘During the period cov-
ering fiscal years 1994 through 1997, the Secretary
shall manage the costs of acquisition, management,
maintenance, and disposition of real property ac-
quired for such program after October 1, 1994, in
such manner as to assure that in any fiscal year the
total amount of such expenditures do not exceed
$500,000.’’.
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