
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-310 Section 502(3)]
[CITE: 42USC280d-11]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
                SUBCHAPTER II--GENERAL POWERS AND DUTIES
 
Part \1\ N--National Foundation for the Centers for Disease Control and 
                               Prevention
 
Sec. 280d-11. Establishment and duties of Foundation


(a) In general

    There shall be established in accordance with this section a 
nonprofit private corporation to be known as the National Foundation for 
the Centers for Disease Control and Prevention (in this part referred to 
as the ``Foundation''). The Foundation shall not be an agency or 
instrumentality of the Federal Government, and officers, employees, and 
members of the board of the Foundation shall not be officers or 
employees of the Federal Government.

(b) Purpose of Foundation

    The purpose of the Foundation shall be to support and carry out 
activities for the prevention and control of diseases, disorders, 
injuries, and disabilities, and for promotion of public health.

(c) Endowment fund

                           (1) In general

        In carrying out subsection (b) of this section, the Foundation 
    shall establish a fund for providing endowments for positions that 
    are associated with the Centers for Disease Control and Prevention 
    and dedicated to the purpose described in such subsection. Subject 
    to subsection (f)(1)(B) of this section, the fund shall consist of 
    such donations as may be provided by non-Federal entities and such 
    non-Federal assets of the Foundation (including earnings of the 
    Foundation and the fund) as the Foundation may elect to transfer to 
    the fund.

                 (2) Authorized expenditures of fund

        The provision of endowments under paragraph (1) shall be the 
    exclusive function of the fund established under such paragraph. 
    Such endowments may be expended only for the compensation of 
    individuals holding the positions, for staff, equipment, quarters, 
    travel, and other expenditures that are appropriate in supporting 
    the positions, and for recruiting individuals to hold the positions 
    endowed by the fund.

(d) Certain activities of Foundation

    In carrying out subsection (b) of this section, the Foundation may 
provide for the following with respect to the purpose described in such 
subsection:
        (1) Programs of fellowships for State and local public health 
    officials to work and study in association with the Centers for 
    Disease Control and Prevention.
        (2) Programs of international arrangements to provide 
    opportunities for public health officials of other countries to 
    serve in public health capacities in the United States in 
    association with the Centers for Disease Control and Prevention or 
    elsewhere, or opportunities for employees of such Centers (or other 
    public health officials in the United States) to serve in such 
    capacities in other countries, or both.
        (3) Studies, projects, and research (which may include applied 
    research on the effectiveness of prevention activities, 
    demonstration projects, and programs and projects involving 
    international, Federal, State, and local governments).
        (4) Forums for government officials and appropriate private 
    entities to exchange information. Participants in such forums may 
    include institutions of higher education and appropriate 
    international organizations.
        (5) Meetings, conferences, courses, and training workshops.
        (6) Programs to improve the collection and analysis of data on 
    the health status of various populations.
        (7) Programs for writing, editing, printing, and publishing of 
    books and other materials.
        (8) Other activities to carry out the purpose described in 
    subsection (b) of this section.

(e) General structure of Foundation; nonprofit status

                       (1) Board of directors

        The Foundation shall have a board of directors (in this part 
    referred to as the ``Board''), which shall be established and 
    conducted in accordance with subsection (f) of this section. The 
    Board shall establish the general policies of the Foundation for 
    carrying out subsection (b) of this section, including the 
    establishment of the bylaws of the Foundation.

                       (2) Executive director

        The Foundation shall have an executive director (in this part 
    referred to as the ``Director''), who shall be appointed by the 
    Board, who shall serve at the pleasure of the Board, and for whom 
    the Board shall establish the rate of compensation. Subject to 
    compliance with the policies and bylaws established by the Board 
    pursuant to paragraph (1), the Director shall be responsible for the 
    daily operations of the Foundation in carrying out subsection (b) of 
    this section.

                        (3) Nonprofit status

        In carrying out subsection (b) of this section, the Board shall 
    establish such policies and bylaws under paragraph (1), and the 
    Director shall carry out such activities under paragraph (2), as may 
    be necessary to ensure that the Foundation maintains status as an 
    organization that--
            (A) is described in subsection (c)(3) of section 501 of 
        title 26; and
            (B) is, under subsection (a) of such section, exempt from 
        taxation.

(f) Board of directors

                         (1) Certain bylaws

        (A) In establishing bylaws under subsection (e)(1) of this 
    section, the Board shall ensure that the bylaws of the Foundation 
    include bylaws for the following:
            (i) Policies for the selection of the officers, employees, 
        agents, and contractors of the Foundation.
            (ii) Policies, including ethical standards, for the 
        acceptance and disposition of donations to the Foundation and 
        for the disposition of the assets of the Foundation.
            (iii) Policies for the conduct of the general operations of 
        the Foundation.
            (iv) Policies for writing, editing, printing, and publishing 
        of books and other materials, and the acquisition of patents and 
        licenses for devices and procedures developed by the Foundation.

        (B) In establishing bylaws under subsection (e)(1) of this 
    section, the Board shall ensure that the bylaws of the Foundation 
    (and activities carried out under the bylaws) do not--
            (i) reflect unfavorably upon the ability of the Foundation, 
        or the Centers for Disease Control and Prevention, to carry out 
        its responsibilities or official duties in a fair and objective 
        manner; or
            (ii) compromise, or appear to compromise, the integrity of 
        any governmental program or any officer or employee involved in 
        such program.

                           (2) Composition

        (A) Subject to subparagraph (B), the Board shall be composed of 
    7 individuals, appointed in accordance with paragraph (4), who 
    collectively possess education or experience appropriate for 
    representing the general field of public health, the general field 
    of international health, and the general public. Each such 
    individual shall be a voting member of the Board.
        (B) The Board may, through amendments to the bylaws of the 
    Foundation, provide that the number of members of the Board shall be 
    a greater number than the number specified in subparagraph (A).

                              (3) Chair

        The Board shall, from among the members of the Board, designate 
    an individual to serve as the chair of the Board (in this subsection 
    referred to as the ``Chair'').

               (4) Appointments, vacancies, and terms

        Subject to subsection (j) of this section (regarding the initial 
    membership of the Board), the following shall apply to the Board:
            (A) Any vacancy in the membership of the Board shall be 
        filled by appointment by the Board, after consideration of 
        suggestions made by the Chair and the Director regarding the 
        appointments. Any such vacancy shall be filled not later than 
        the expiration of the 180-day period beginning on the date on 
        which the vacancy occurs.
            (B) The term of office of each member of the Board appointed 
        under subparagraph (A) shall be 5 years. A member of the Board 
        may continue to serve after the expiration of the term of the 
        member until the expiration of the 180-day period beginning on 
        the date on which the term of the member expires.
            (C) A vacancy in the membership of the Board shall not 
        affect the power of the Board to carry out the duties of the 
        Board. If a member of the Board does not serve the full term 
        applicable under subparagraph (B), the individual appointed to 
        fill the resulting vacancy shall be appointed for the remainder 
        of the term of the predecessor of the individual.

                          (5) Compensation

        Members of the Board may not receive compensation for service on 
    the Board. The members may be reimbursed for travel, subsistence, 
    and other necessary expenses incurred in carrying out the duties of 
    the Board.

(g) Certain responsibilities of executive director

    In carrying out subsection (e)(2) of this section, the Director 
shall carry out the following functions:
        (1) Hire, promote, compensate, and discharge officers and 
    employees of the Foundation, and define the duties of the officers 
    and employees.
        (2) Accept and administer donations to the Foundation, and 
    administer the assets of the Foundation.
        (3) Establish a process for the selection of candidates for 
    holding endowed positions under subsection (c) of this section.
        (4) Enter into such financial agreements as are appropriate in 
    carrying out the activities of the Foundation.
        (5) Take such action as may be necessary to acquire patents and 
    licenses for devices and procedures developed by the Foundation and 
    the employees of the Foundation.
        (6) Adopt, alter, and use a corporate seal, which shall be 
    judicially noticed.
        (7) Commence and respond to judicial proceedings in the name of 
    the Foundation.
        (8) Other functions that are appropriate in the determination of 
    the Director.

(h) General provisions

                  (1) Authority for accepting funds

        The Director of the Centers for Disease Control and Prevention 
    may accept and utilize, on behalf of the Federal Government, any 
    gift, donation, bequest, or devise of real or personal property from 
    the Foundation for the purpose of aiding or facilitating the work of 
    such Centers. Funds may be accepted and utilized by such Director 
    under the preceding sentence without regard to whether the funds are 
    designated as general-purpose funds or special-purpose funds.

         (2) Authority for acceptance of voluntary services

        (A) The Director of the Centers for Disease Control and 
    Prevention may accept, on behalf of the Federal Government, any 
    voluntary services provided to such Centers by the Foundation for 
    the purpose of aiding or facilitating the work of such Centers. In 
    the case of an individual, such Director may accept the services 
    provided under the preceding sentence by the individual for not more 
    than 2 years.
        (B) The limitation established in subparagraph (A) regarding the 
    period of time in which services may be accepted applies to each 
    individual who is not an employee of the Federal Government and who 
    serves in association with the Centers for Disease Control and 
    Prevention pursuant to financial support from the Foundation.

                     (3) Administrative control

        No officer, employee, or member of the Board of the Foundation 
    may exercise any administrative or managerial control over any 
    Federal employee.

       (4) Applicability of certain standards to non-Federal 
                                  employees

        In the case of any individual who is not an employee of the 
    Federal Government and who serves in association with the Centers 
    for Disease Control and Prevention pursuant to financial support 
    from the Foundation, the Foundation shall negotiate a memorandum of 
    understanding with the individual and the Director of the Centers 
    for Disease Control and Prevention specifying that the individual--
            (A) shall be subject to the ethical and procedural standards 
        regulating Federal employment, scientific investigation, and 
        research findings (including publications and patents) that are 
        required of individuals employed by the Centers for Disease 
        Control and Prevention, including standards under this chapter, 
        the Ethics in Government Act, and the Technology Transfer Act; 
        \1\ and
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    \1\ See References in Text note below.
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            (B) shall be subject to such ethical and procedural 
        standards under chapter 11 of title 18 (relating to conflicts of 
        interest), as the Director of such Centers determines is 
        appropriate, except such memorandum may not provide that the 
        individual shall be subject to the standards of section 209 of 
        title 18.

                 (5) Financial conflicts of interest

        Any individual who is an officer, employee, or member of the 
    Board of the Foundation may not directly or indirectly participate 
    in the consideration or determination by the Foundation of any 
    question affecting--
            (A) any direct or indirect financial interest of the 
        individual; or
            (B) any direct or indirect financial interest of any 
        business organization or other entity of which the individual is 
        an officer or employee or in which the individual has a direct 
        or indirect financial interest.

                 (6) Audits; availability of records

        The Foundation shall--
            (A) provide for biennial audits of the financial condition 
        of the Foundation; and
            (B) make such audits, and all other records, documents, and 
        other papers of the Foundation, available to the Secretary and 
        the Comptroller General of the United States for examination or 
        audit.

                             (7) Reports

        (A) Not later than February 1 of each fiscal year, the 
    Foundation shall publish a report describing the activities of the 
    Foundation during the preceding fiscal year. Each such report shall 
    include for the fiscal year involved a comprehensive statement of 
    the operations, activities, financial condition, and accomplishments 
    of the Foundation.
        (B) With respect to the financial condition of the Foundation, 
    each report under subparagraph (A) shall include the source, and a 
    description of, all gifts to the Foundation of real or personal 
    property, and the source and amount of all gifts to the Foundation 
    of money. Each such report shall include a specification of any 
    restrictions on the purposes for which gifts to the Foundation may 
    be used.
        (C) The Foundation shall make copies of each report submitted 
    under subparagraph (A) available for public inspection, and shall 
    upon request provide a copy of the report to any individual for a 
    charge not exceeding the cost of providing the copy.

     (8) Liaison from Centers for Disease Control and Prevention

        The Director of the Centers for Disease Control and Prevention 
    shall serve as the liaison representative of such Centers to the 
    Board and the Foundation.

(i) Federal funding

                   (1) Authority for annual grants

        (A) The Secretary, acting through the Director of the Centers 
    for Disease Control and Prevention, shall--
            (i) for fiscal year 1993, make a grant to an entity 
        described in subsection (j)(9) of this section (relating to the 
        establishment of a committee to establish the Foundation);
            (ii) for fiscal year 1994, make a grant to the committee 
        established under such subsection, or if the Foundation has been 
        established, to the Foundation; and
            (iii) for fiscal year 1995 and each subsequent fiscal year, 
        make a grant to the Foundation.

        (B) A grant under subparagraph (A) may be expended--
            (i) in the case of an entity receiving the grant under 
        subparagraph (A)(i), only for the purpose of carrying out the 
        duties established in subsection (j)(9) of this section for the 
        entity;
            (ii) in the case of the committee established under such 
        subsection, only for the purpose of carrying out the duties 
        established in subsection (j) of this section for the committee; 
        and
            (iii) in the case of the Foundation, only for the purpose of 
        the administrative expenses of the Foundation.

        (C) A grant under subparagraph (A) may not be expended to 
    provide amounts for the fund established under subsection (c) of 
    this section.
        (D) For the purposes described in subparagraph (B)--
            (i) any portion of the grant made under subparagraph (A)(i) 
        for fiscal year 1993 that remains unobligated after the entity 
        receiving the grant completes the duties established in 
        subsection (j)(9) of this section for the entity shall be 
        available to the committee established under such subsection; 
        and
            (ii) any portion of a grant under subparagraph (A) made for 
        fiscal year 1993 or 1994 that remains unobligated after such 
        committee completes the duties established in such subsection 
        for the committee shall be available to the Foundation.

                       (2) Funding for grants

        (A) For the purpose of grants under paragraph (1), there is 
    authorized to be appropriated $500,000 for each fiscal year.
        (B) For the purpose of grants under paragraph (1), the Secretary 
    may for each fiscal year make available not more than $500,000 from 
    the amounts appropriated for the fiscal year for the programs of the 
    Department of Health and Human Services. Such amounts may be made 
    available without regard to whether amounts have been appropriated 
    under subparagraph (A).

                       (3) Certain restriction

        If the Foundation receives Federal funds for the purpose of 
    serving as a fiscal intermediary between Federal agencies, the 
    Foundation may not receive such funds for the indirect costs of 
    carrying out such purpose in an amount exceeding 10 percent of the 
    direct costs of carrying out such purpose. The preceding sentence 
    may not be construed as authorizing the expenditure of any grant 
    under paragraph (1) for such purpose.

(j) Committee for establishment of Foundation

                           (1) In general

        There shall be established in accordance with this subsection a 
    committee to carry out the functions described in paragraph (2) 
    (which committee is referred to in this subsection as the 
    ``Committee'').

                            (2) Functions

        The functions referred to in paragraph (1) for the Committee are 
    as follows:
            (A) To carry out such activities as may be necessary to 
        incorporate the Foundation under the laws of the State involved, 
        including serving as incorporators for the Foundation. Such 
        activities shall include ensuring that the articles of 
        incorporation for the Foundation require that the Foundation be 
        established and operated in accordance with the applicable 
        provisions of this part (or any successor to this part), 
        including such provisions as may be in effect pursuant to 
        amendments enacted after October 27, 1992.
            (B) To ensure that the Foundation qualifies for and 
        maintains the status described in subsection (e)(3) of this 
        section (regarding taxation).
            (C) To establish the general policies and initial bylaws of 
        the Foundation, which bylaws shall include the bylaws described 
        in subsections (e)(3) and (f)(1) of this section.
            (D) To provide for the initial operation of the Foundation, 
        including providing for quarters, equipment, and staff.
            (E) To appoint the initial members of the Board in 
        accordance with the requirements established in subsection 
        (f)(2)(A) of this section for the composition of the Board, and 
        in accordance with such other qualifications as the Committee 
        may determine to be appropriate regarding such composition. Of 
        the members so appointed--
                (i) 2 shall be appointed to serve for a term of 3 years;
                (ii) 2 shall be appointed to serve for a term of 4 
            years; and
                (iii) 3 shall be appointed to serve for a term of 5 
            years.

    (3) Completion of functions of Committee; initial meeting of 
                                    Board

        (A) The Committee shall complete the functions required in 
    paragraph (1) not later than September 30, 1994. The Committee shall 
    terminate upon the expiration of the 30-day period beginning on the 
    date on which the Secretary determines that the functions have been 
    completed.
        (B) The initial meeting of the Board shall be held not later 
    than November 1, 1994.

                           (4) Composition

        The Committee shall be composed of 5 members, each of whom shall 
    be a voting member. Of the members of the Committee--
            (A) no fewer than 2 shall have broad, general experience in 
        public health; and
            (B) no fewer than 2 shall have broad, general experience in 
        nonprofit private organizations (without regard to whether the 
        individuals have experience in public health).

                              (5) Chair

        The Committee shall, from among the members of the Committee, 
    designate an individual to serve as the chair of the Committee.

                        (6) Terms; vacancies

        The term of members of the Committee shall be for the duration 
    of the Committee. A vacancy in the membership of the Committee shall 
    not affect the power of the Committee to carry out the duties of the 
    Committee. If a member of the Committee does not serve the full 
    term, the individual appointed to fill the resulting vacancy shall 
    be appointed for the remainder of the term of the predecessor of the 
    individual.

                          (7) Compensation

        Members of the Committee may not receive compensation for 
    service on the Committee. Members of the Committee may be reimbursed 
    for travel, subsistence, and other necessary expenses incurred in 
    carrying out the duties of the Committee.

                        (8) Committee support

        The Director of the Centers for Disease Control and Prevention 
    may, from amounts available to the Director for the general 
    administration of such Centers, provide staff and financial support 
    to assist the Committee with carrying out the functions described in 
    paragraph (2). In providing such staff and support, the Director may 
    both detail employees and contract for assistance.

              (9) Grant for establishment of Committee

        (A) With respect to a grant under paragraph (1)(A)(i) of 
    subsection (i) of this section for fiscal year 1993, an entity 
    described in this paragraph is a private nonprofit entity with 
    significant experience in domestic and international issues of 
    public health. Not later than 180 days after October 27, 1992, the 
    Secretary shall make the grant to such an entity (subject to the 
    availability of funds under paragraph (2) of such subsection).
        (B) The grant referred to in subparagraph (A) may be made to an 
    entity only if the entity agrees that--
            (i) the entity will establish a committee that is composed 
        in accordance with paragraph (4); and
            (ii) the entity will not select an individual for membership 
        on the Committee unless the individual agrees that the Committee 
        will operate in accordance with each of the provisions of this 
        subsection that relate to the operation of the Committee.

        (C) The Secretary may make a grant referred to in subparagraph 
    (A) only if the applicant for the grant makes an agreement that the 
    grant will not be expended for any purpose other than carrying out 
    subparagraph (B). Such a grant may be made only if an application 
    for the grant is submitted to the Secretary containing such 
    agreement, and the application is in such form, is made in such 
    manner, and contains such other agreements and such assurances and 
    information as the Secretary determines to be necessary to carry out 
    this paragraph.

(July 1, 1944, ch. 373, title III, Sec. 399F, as added Pub. L. 102-531, 
title II, Sec. 201, Oct. 27, 1992, 106 Stat. 3474.)

                       References in Text

    The Ethics in Government Act, referred to in subsec. (h)(4)(A), 
probably means the Ethics in Government Act of 1978, Pub. L. 95-521, 
Oct. 26, 1978, 92 Stat. 1824, as amended. For complete classification of 
this Act to the Code, see Short Title note set out under section 101 of 
Pub. L. 95-521 in the Appendix to Title 5, Government Organization and 
Employees, and Tables.
    The Technology Transfer Act, referred to in subsec. (h)(4)(A), may 
mean the Federal Technology Transfer Act of 1986, Pub. L. 99-502, Oct. 
20, 1986, 100 Stat. 1785, as amended, or the National Competitiveness 
Technology Transfer Act of 1989, part C (Secs. 3131-3133) of title XXXI 
of div. C of Pub. L. 101-189, Nov. 29, 1989, 103 Stat. 1674. For 
complete classification of these Acts to the Code, see Short Title of 
1986 Amendment note and Short Title of 1989 Amendment note both set out 
under section 3701 of Title 15, Commerce and Trade, and Tables.
