---
kind: "section"
citation: "42 U.S.C. § 290b"
title: "42"
title_heading: "The Public Health and Welfare"
number: "290b"
heading: "Establishment and duties of Foundation"
release: "119-102"
url: "https://uscodex.org/usc/42/290b"
units:
  - "Chapter 6A — Public Health Service"
  - "Subchapter III — National Research Institutes"
  - "Part I — Foundation for the National Institutes of Health"
---

# §290b. Establishment and duties of Foundation

- (a) **In general—** The [Secretary](/usc/42/201.md?p=c) shall, acting through the [Director of NIH](/usc/42/281.md?p=g-1), establish a nonprofit [corporation](/usc/42/2296b–7.md?p=1) to be known as the [Foundation](/usc/42/17351.md?p=3) for the National Institutes of Health (hereafter in this section referred to as the “[Foundation](/usc/42/17351.md?p=3)”). The [Foundation](/usc/42/17351.md?p=3) shall not be an agency or instrumentality of the [United States](/usc/42/403.md?p=k) Government.
- (b) **Purpose of Foundation—** The purpose of the [Foundation](/usc/42/17351.md?p=3) shall be to support the National Institutes of Health in its mission (including collection of [funds](/usc/42/12854.md?p=3) for pediatric pharmacologic research), and to advance collaboration with biomedical researchers from universities, industry, and nonprofit organizations.
- (c) **Certain activities of Foundation—**
  - (1) **In general—** In carrying out [subsection (b)](#b), the [Foundation](/usc/42/17351.md?p=3) may solicit and accept gifts, grants, and other donations, establish accounts, and invest and expend [funds](/usc/42/12854.md?p=3) in support of the following activities with respect to the purpose described in such subsection:
    - (A) A [program](/usc/42/274l–1.md?p=4) to provide and administer endowed positions that are associated with the research [program](/usc/42/274l–1.md?p=4) of the National Institutes of Health. Such endowments may be expended for the compensation of individuals holding the positions, for staff, equipment, quarters, travel, and other expenditures that are appropriate in supporting the endowed positions.
    - (B) A [program](/usc/42/274l–1.md?p=4) to provide and administer [fellowships](/usc/42/1862n–1.md?p=i-3) and grants to research personnel in order to work and study in association with the National Institutes of Health. Such [fellowships](/usc/42/1862n–1.md?p=i-3) and grants may include stipends, travel, health insurance benefits and other appropriate expenses. The [recipients](/usc/42/2996a.md?p=6) of [fellowships](/usc/42/1862n–1.md?p=i-3) shall be selected by the donors and the [Foundation](/usc/42/17351.md?p=3) upon the recommendation of the National Institutes of Health [employees](/usc/42/300gg–91.md?p=d-5) in the [laboratory](/usc/42/300jj.md?p=10) where the fellow would serve, and shall be subject to the [agreement](/usc/42/1320b–8.md?p=a-3-A) of the [Director](/usc/42/5061.md?p=1) of the National Institutes of Health and the [Executive Director](/usc/42/4370m.md?p=12) of the [Foundation](/usc/42/17351.md?p=3).
    - (C) A [program](/usc/42/274l–1.md?p=4) to collect [funds](/usc/42/12854.md?p=3) for pediatric pharmacologic research and studies.
    - (D) Supplementary [programs](/usc/42/274l–1.md?p=4) to provide for—
      - (i) scientists of other countries to serve in research capacities in the [United States](/usc/42/403.md?p=k) in association with the National Institutes of Health or elsewhere, or opportunities for [employees](/usc/42/300gg–91.md?p=d-5) of the National Institutes of Health or other public health officials in the [United States](/usc/42/403.md?p=k) to serve in such capacities in other countries, or both;
      - (ii) the conduct and support of studies, [projects](/usc/42/11360.md?p=20), and research, which may include stipends, travel and other support for personnel in collaboration with national and international non-profit and for-profit organizations;
      - (iii) the conduct and support of forums, meetings, conferences, courses, and [training](/usc/42/285e–2.md?p=b-2) workshops that may include undergraduate, graduate, post-graduate, and post-doctoral [accredited](/usc/42/300w–9.md?p=c-2) courses and the maintenance of accreditation of such courses by the [Foundation](/usc/42/17351.md?p=3) at the [State](/usc/42/300gg–91.md?p=d-14) and national level for college or continuing education credits or for degrees;
      - (iv) [programs](/usc/42/274l–1.md?p=4) to support and encourage teachers and students of science at all levels of education and [programs](/usc/42/274l–1.md?p=4) for the general public which promote the understanding of science;
      - (v) [programs](/usc/42/274l–1.md?p=4) for writing, editing, printing, publishing, and vending of books and other materials; and
      - (vi) the conduct of other activities to carry out and support the purpose described in [subsection (b)](#b).
    - (E) The Cures Acceleration Network described in [section 287a of this title](/usc/42/287a.md).
  - (2) **Fees—** The [Foundation](/usc/42/17351.md?p=3) may assess fees for the provision of professional, administrative and management [services](/usc/42/201.md?p=a) by the [Foundation](/usc/42/17351.md?p=3) in amounts determined reasonable and appropriate by the [Executive Director](/usc/42/4370m.md?p=12).
  - (3) **Authority of Foundation—** The [Foundation](/usc/42/17351.md?p=3) shall be the sole entity responsible for carrying out the activities described in this subsection.
- (d) **Board of Directors—**
  - (1) **Composition—**
    - (A) The [Foundation](/usc/42/17351.md?p=3) shall have a [Board of Directors](/usc/42/12854.md?p=1) (hereafter referred to in this section as the “[Board](/usc/42/10261.md?p=2)”), which shall be composed of ex officio and appointed members in accordance with this subsection. All appointed members of the [Board](/usc/42/10261.md?p=2) shall be voting members.
    - (B) The ex officio members of the [Board](/usc/42/10261.md?p=2) shall be—
      - (i) the Chairman and ranking [minority](/usc/42/299a–1.md?p=d-2) member of the Subcommittee on Health and the Environment (Committee on [Energy](/usc/42/6311.md?p=7) and [Commerce](/usc/42/6311.md?p=7)) or their designees, in the case of the House of [Representatives](/usc/42/3058f.md?p=5);
      - (ii) the Chairman and ranking [minority](/usc/42/299a–1.md?p=d-2) member of the Committee on Labor and Human Resources or their designees, in the case of the Senate;
      - (iii) the [Director](/usc/42/5061.md?p=1) of the National Institutes of Health; and
      - (iv) the [Commissioner](/usc/42/12302.md?p=1) of Food and [Drugs](/usc/42/282.md?p=j-1-A-vii).
    - (C) The ex officio members of the [Board](/usc/42/10261.md?p=2) under [subparagraph (B)](#d-1-B) shall appoint to the [Board](/usc/42/10261.md?p=2) individuals from among a list of candidates to be provided by the National Academy of Science. Such appointed members shall include—
      - (i) [representatives](/usc/42/3058f.md?p=5) of the general biomedical field;
      - (ii) [representatives](/usc/42/3058f.md?p=5) of experts in pediatric medicine and research;
      - (iii) [representatives](/usc/42/3058f.md?p=5) of the general biobehavioral field, which may include experts in biomedical ethics; and
      - (iv) [representatives](/usc/42/3058f.md?p=5) of the general public, which may include [representatives](/usc/42/3058f.md?p=5) of affected industries.
    - (D)
      - (i) Not later than 30 days after June 10, 1993, the [Director](/usc/42/5061.md?p=1) of the National Institutes of Health shall convene a meeting of the ex officio members of the [Board](/usc/42/10261.md?p=2) to—
        - (I) incorporate the [Foundation](/usc/42/17351.md?p=3) and establish the general policies of the [Foundation](/usc/42/17351.md?p=3) for carrying out the purposes of [subsection (b)](#b), including the establishment of the bylaws of the [Foundation](/usc/42/17351.md?p=3); and
        - (II) appoint the members of the [Board](/usc/42/10261.md?p=2) in accordance with [subparagraph (C)](#d-1-C).
      - (ii) Upon the appointment of the appointed members of the [Board](/usc/42/10261.md?p=2) under [clause (i)(II)](#d-1-D-i-II), the terms of [service](/usc/42/201.md?p=a) as members of the [Board](/usc/42/10261.md?p=2) of the ex officio members of the [Board](/usc/42/10261.md?p=2) described in clauses [(i)](#d-1-B-i) and [(ii)](#d-1-B-ii) of subparagraph (B) shall terminate. The ex officio members of the [Board](/usc/42/10261.md?p=2) described in clauses [(iii)](#d-1-B-iii) and [(iv)](#d-1-B-iv) of subparagraph (B) shall continue to serve as ex officio members of the [Board](/usc/42/10261.md?p=2).
    - (E) The [agreement](/usc/42/1320b–8.md?p=a-3-A) of not less than three-fifths of the members of the ex officio members of the [Board](/usc/42/10261.md?p=2) shall be required for the appointment of each member to the initial [Board](/usc/42/10261.md?p=2).
    - (F) No [employee](/usc/42/300gg–91.md?p=d-5) of the National Institutes of Health shall be appointed as a member of the [Board](/usc/42/10261.md?p=2).
    - (G) The [Board](/usc/42/10261.md?p=2) may, through amendments to the bylaws of the [Foundation](/usc/42/17351.md?p=3), provide that the number of appointed members of the [Board](/usc/42/10261.md?p=2) shall be greater than the number specified in [subparagraph (C)](#d-1-C).
  - (2) **Chair—**
    - (A) The ex officio members of the [Board](/usc/42/10261.md?p=2) under [paragraph (1)(B)](#d-1-B) shall designate an individual to serve as the initial Chair of the [Board](/usc/42/10261.md?p=2).
    - (B) Upon the termination of the term of [service](/usc/42/201.md?p=a) of the initial Chair of the [Board](/usc/42/10261.md?p=2), the appointed members of the [Board](/usc/42/10261.md?p=2) shall elect a member of the [Board](/usc/42/10261.md?p=2) to serve as the Chair of the [Board](/usc/42/10261.md?p=2).
  - (3) **Terms and vacancies—**
    - (A) The term of [office](/usc/42/3058f.md?p=1) of each member of the [Board](/usc/42/10261.md?p=2) appointed under [paragraph (1)(C)](#d-1-C) shall be 5 years, except that the terms of [offices](/usc/42/3058f.md?p=1) for the initial appointed members of the [Board](/usc/42/10261.md?p=2) shall expire as determined by the ex officio members and the Chair.
    - (B) Any vacancy in the membership of the appointed members of the [Board](/usc/42/10261.md?p=2) shall be filled in accordance with the bylaws of the [Foundation](/usc/42/17351.md?p=3) established in accordance with [paragraph (6)](#d-6), and shall not affect the power of the remaining appointed members to execute the duties of the [Board](/usc/42/10261.md?p=2).
    - (C) If a member of the [Board](/usc/42/10261.md?p=2) does not serve the full term applicable under [subparagraph (A)](#d-3-A), the individual appointed to fill the resulting vacancy shall be appointed for the remainder of the term of the predecessor of the individual.
    - (D) A member of the [Board](/usc/42/10261.md?p=2) may continue to serve after the expiration of the term of the member until a successor is appointed.
  - (4) **Compensation—** Members of the [Board](/usc/42/10261.md?p=2) may not receive compensation for [service](/usc/42/201.md?p=a) on the [Board](/usc/42/10261.md?p=2). Such members may be reimbursed for travel, subsistence, and other necessary expenses incurred in carrying out the duties of the [Board](/usc/42/10261.md?p=2), as set forth in the bylaws issued by the [Board](/usc/42/10261.md?p=2).
  - (5) **Meetings and quorum—** A majority of the appointed members of the [Board](/usc/42/10261.md?p=2) shall constitute a quorum for purposes of conducting the business of the [Board](/usc/42/10261.md?p=2).
  - (6) **Certain bylaws—**
    - (A) In establishing bylaws under this subsection, the [Board](/usc/42/10261.md?p=2) shall ensure that the following are provided for:
      - (i) Policies for the selection of the officers, [employees](/usc/42/300gg–91.md?p=d-5), agents, and contractors of the [Foundation](/usc/42/17351.md?p=3).
      - (ii) Policies, including ethical [standards](/usc/42/1320d.md?p=7), for the acceptance, solicitation, and disposition of donations and grants to the [Foundation](/usc/42/17351.md?p=3) and for the disposition of the assets of the [Foundation](/usc/42/17351.md?p=3). Policies with respect to ethical [standards](/usc/42/1320d.md?p=7) shall ensure that officers, [employees](/usc/42/300gg–91.md?p=d-5) and agents of the [Foundation](/usc/42/17351.md?p=3) (including members of the [Board](/usc/42/10261.md?p=2)) avoid encumbrances that would result in a conflict of interest, including a financial conflict of interest or a divided allegiance. Such policies shall include requirements for the provision of information concerning any ownership or controlling interest in entities related to the activities of the [Foundation](/usc/42/17351.md?p=3) by such officers, [employees](/usc/42/300gg–91.md?p=d-5) and agents and their spouses and relatives.
      - (iii) Policies for the conduct of the general operations of the [Foundation](/usc/42/17351.md?p=3).
      - (iv) Policies for writing, editing, printing, publishing, and vending of books and other materials.
    - (B) In establishing bylaws under this subsection, the [Board](/usc/42/10261.md?p=2) shall ensure that such bylaws (and activities carried out under the bylaws) do not—
      - (i) reflect unfavorably upon the ability of the [Foundation](/usc/42/17351.md?p=3) or the National Institutes of Health 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 agency or [program](/usc/42/274l–1.md?p=4), or any officer or [employee](/usc/42/300gg–91.md?p=d-5) involved in such [program](/usc/42/274l–1.md?p=4).
- (e) **Incorporation—** The initial members of the [Board](/usc/42/10261.md?p=2) shall serve as incorporators and shall take whatever actions necessary to incorporate the [Foundation](/usc/42/17351.md?p=3).
- (f) **Nonprofit status—** The [Foundation](/usc/42/17351.md?p=3) shall be considered to be a [corporation](/usc/42/2296b–7.md?p=1) under [section 501(c) of title 26](/usc/26/501.md?p=c), and shall be subject to the provisions of such section.
- (g) **Executive Director—**
  - (1) **In general—** The [Foundation](/usc/42/17351.md?p=3) shall have an [Executive Director](/usc/42/4370m.md?p=12) who shall be appointed by the [Board](/usc/42/10261.md?p=2) and shall serve at the pleasure of the [Board](/usc/42/10261.md?p=2). The [Executive Director](/usc/42/4370m.md?p=12) shall be responsible for the day-to-day operations of the [Foundation](/usc/42/17351.md?p=3) and shall have such specific duties and responsibilities as the [Board](/usc/42/10261.md?p=2) shall prescribe.
  - (2) **Compensation—** The rate of compensation of the [Executive Director](/usc/42/4370m.md?p=12) shall be fixed by the [Board](/usc/42/10261.md?p=2).
- (h) **Powers—** In carrying out [subsection (b)](#b), the [Foundation](/usc/42/17351.md?p=3) may—
  - (1) operate under the direction of its [Board](/usc/42/10261.md?p=2);
  - (2) adopt, alter, and use a corporate seal, which shall be judicially noticed;
  - (3) provide for 1 or more officers, [employees](/usc/42/300gg–91.md?p=d-5), and agents, as may be necessary, define their duties, and require surety bonds or make other provisions against losses occasioned by acts of such [persons](/usc/42/1320a–7k.md?p=d-4-C-i);
  - (4) hire, promote, compensate, and discharge officers and [employees](/usc/42/300gg–91.md?p=d-5) of the [Foundation](/usc/42/17351.md?p=3), and define the duties of the officers and [employees](/usc/42/300gg–91.md?p=d-5);
  - (5) with the consent of any [executive department](/usc/42/201.md?p=e) or independent agency, use the information, [services](/usc/42/201.md?p=a), staff, and [facilities](/usc/42/11049.md?p=4) of such in carrying out this section;
  - (6) sue and be sued in its corporate name, and complain and defend in courts of competent jurisdiction;
  - (7) modify or consent to the [modification](/usc/42/7501.md?p=4) of any contract or [agreement](/usc/42/1320b–8.md?p=a-3-A) to which it is a party or in which it has an interest under this part;
  - (8) establish a process for the selection of candidates for positions under [subsection (c)](#c);
  - (9) enter into contracts with public and private organizations for the writing, editing, printing, and publishing of books and other material;
  - (10) take such action as may be necessary to obtain patents and licenses for devices and procedures developed by the [Foundation](/usc/42/17351.md?p=3) and its [employees](/usc/42/300gg–91.md?p=d-5);
  - (11) solicit, accept, hold, administer, invest, and spend any gift, devise, or bequest of real or personal property made to the [Foundation](/usc/42/17351.md?p=3);
  - (12) enter into such other contracts, leases, cooperative [agreements](/usc/42/1320b–8.md?p=a-3-A), and other transactions as the [Executive Director](/usc/42/4370m.md?p=12) considers appropriate to conduct the activities of the [Foundation](/usc/42/17351.md?p=3);
  - (13) appoint other groups of advisors as may be determined necessary from time to time to carry out the functions of the [Foundation](/usc/42/17351.md?p=3);
  - (14) enter into such other contracts, leases, cooperative [agreements](/usc/42/1320b–8.md?p=a-3-A), and other transactions as the [Executive Director](/usc/42/4370m.md?p=12) considers appropriate to conduct the activities of the [Foundation](/usc/42/17351.md?p=3); and
  - (15) exercise other powers as set forth in this section, and such other incidental powers as are necessary to carry out its powers, duties, and functions in accordance with this part.
- (i) **Administrative control—** No [participant](/usc/42/300gg–91.md?p=d-11) in the [program](/usc/42/274l–1.md?p=4) established under this part shall exercise any administrative control over any Federal [employee](/usc/42/300gg–91.md?p=d-5).
- (j) **General provisions—**
  - (1) **Foundation integrity—** The members of the [Board](/usc/42/10261.md?p=2) shall be accountable for the integrity of the operations of the [Foundation](/usc/42/17351.md?p=3) and shall ensure such integrity through the development and enforcement of criteria and procedures relating to [standards](/usc/42/1320d.md?p=7) of conduct, financial disclosure statements, conflict of interest rules, recusal and waiver rules, audits and other matter determined appropriate by the [Board](/usc/42/10261.md?p=2).
  - (2) **Financial conflicts of interest—** Any individual who is an officer, [employee](/usc/42/300gg–91.md?p=d-5), or member of the [Board](/usc/42/10261.md?p=2) of the [Foundation](/usc/42/17351.md?p=3) may not (in accordance with policies and requirements developed under [subsection (d)(6)](#d-6)) personally or substantially participate in the consideration or determination by the [Foundation](/usc/42/17351.md?p=3) of any matter that would directly or predictably affect any financial interest of the individual or a relative (as such term is defined in [section 13101(16) of title 5](/usc/5/13101.md?p=16)) of the individual, of any business organization or other entity, or of which the individual is an officer or [employee](/usc/42/300gg–91.md?p=d-5), or is negotiating for employment, or in which the individual has any other financial interest.
  - (3) **Audits; availability of records—** The [Foundation](/usc/42/17351.md?p=3) shall—
    - (A) provide for annual audits of the financial condition of the [Foundation](/usc/42/17351.md?p=3); and
    - (B) make such audits, and all other records, documents, and other papers of the [Foundation](/usc/42/17351.md?p=3), available to the [Secretary](/usc/42/201.md?p=c) and the Comptroller General of the [United States](/usc/42/403.md?p=k) for examination or audit.
  - (4) **Reports—**
    - (A) Not later than 5 months following the end of each fiscal year, the [Foundation](/usc/42/17351.md?p=3) shall publish a report describing the activities of the [Foundation](/usc/42/17351.md?p=3) 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](/usc/42/17351.md?p=3), including an accounting of the use of amounts transferred under [subsection (l)](#l).
    - (B) With respect to the financial condition of the [Foundation](/usc/42/17351.md?p=3), each report under [subparagraph (A)](#j-4-A) shall include the source, and a description of, all gifts or grants to the [Foundation](/usc/42/17351.md?p=3) of real or personal property, and the source and amount of all gifts or grants to the [Foundation](/usc/42/17351.md?p=3) of money. Each such report shall include a specification of any restrictions on the purposes for which gifts or grants to the [Foundation](/usc/42/17351.md?p=3) may be used.
    - (C) The [Foundation](/usc/42/17351.md?p=3) shall make copies of each report submitted under [subparagraph (A)](#j-4-A) available—
      - (i) for public [inspection](/usc/42/4851b.md?p=12), and shall upon request provide a copy of the report to any individual for a charge that shall not exceed the cost of providing the copy; and
      - (ii) to the appropriate committees of Congress.
    - (D) The [Board](/usc/42/10261.md?p=2) shall annually hold a public meeting to summarize the activities of the [Foundation](/usc/42/17351.md?p=3) and distribute written reports concerning such activities and the scientific results derived from such activities.
  - (5) **Service of Federal employees—** Federal [employees](/usc/42/300gg–91.md?p=d-5) may serve on committees advisory to the [Foundation](/usc/42/17351.md?p=3) and otherwise cooperate with and assist the [Foundation](/usc/42/17351.md?p=3) in carrying out its function, so long as the [employees](/usc/42/300gg–91.md?p=d-5) do not direct or control [Foundation](/usc/42/17351.md?p=3) activities.
  - (6) **Relationship with existing entities—** The [Foundation](/usc/42/17351.md?p=3) may, pursuant to appropriate [agreements](/usc/42/1320b–8.md?p=a-3-A), merge with, acquire, or use the resources of existing nonprofit [private corporations](/usc/42/2297h.md?p=7) with missions similar to the purposes of the [Foundation](/usc/42/17351.md?p=3), such as the [Foundation](/usc/42/17351.md?p=3) for Advanced Education in the Sciences.
  - (7) **Intellectual property rights—** The [Board](/usc/42/10261.md?p=2) shall adopt written [standards](/usc/42/1320d.md?p=7) with respect to the ownership of any intellectual property rights derived from the collaborative efforts of the [Foundation](/usc/42/17351.md?p=3) prior to the commencement of such efforts.
  - (8) **National Institutes of Health Amendments of 1990—** The activities conducted in support of the National Institutes of Health Amendments of 1990 (Public Law 101–613), and the amendments made by such Act, shall not be nullified by the enactment of this section.[^1]
  - (9) **Limitation of activities—**
    - (A) **In general—** The [Foundation](/usc/42/17351.md?p=3) shall exist solely as an entity to work in collaboration with the research [programs](/usc/42/274l–1.md?p=4) of the National Institutes of Health. The [Foundation](/usc/42/17351.md?p=3) may not undertake activities (such as the operation of independent [laboratories](/usc/42/300jj.md?p=10) or competing for Federal research [funds](/usc/42/12854.md?p=3)) that are independent of those of the National Institutes of Health research [programs](/usc/42/274l–1.md?p=4).
    - (B) **Gifts, grants, and other donations—**
      - (i) **In general—** Gifts, grants, and other donations to the [Foundation](/usc/42/17351.md?p=3) may be designated for pediatric research and studies on [drugs](/usc/42/282.md?p=j-1-A-vii), and [funds](/usc/42/12854.md?p=3) so designated shall be used solely for grants for research and studies under [subsection (c)(1)(C)](#c-1-C).
      - (ii) **Other gifts—** Other gifts, grants, or donations received by the [Foundation](/usc/42/17351.md?p=3) and not described in [clause (i)](#j-9-B-i) may also be used to support such pediatric research and studies.
      - (iii) **Report—** The [recipient](/usc/42/2996a.md?p=6) of a grant for research and studies shall agree to provide the [Director](/usc/42/5061.md?p=1) of the National Institutes of Health and the [Commissioner](/usc/42/12302.md?p=1) of Food and [Drugs](/usc/42/282.md?p=j-1-A-vii), at the conclusion of the research and studies—
        - (I) a report describing the results of the research and studies; and
        - (II) all data generated in connection with the research and studies.
      - (iv) **Action by the Commissioner of Food and Drugs—** The [Commissioner](/usc/42/12302.md?p=1) of Food and [Drugs](/usc/42/282.md?p=j-1-A-vii) shall take appropriate action in response to a report received under [clause (iii)](#j-9-B-iii) in accordance with [paragraphs (7) through (12)](#j-7..j-12)[^2] of [section 284m(c) of this title](/usc/42/284m.md?p=c), including negotiating with the holders of approved applications for the [drugs](/usc/42/282.md?p=j-1-A-vii) studied for any labeling changes that the [Commissioner](/usc/42/12302.md?p=1) determines to be appropriate and requests the holders to make.
    - (C) **Applicability—** [Subparagraph (A)](#j-9-A) does not apply to the [program](/usc/42/274l–1.md?p=4) described in [subsection (c)(1)(C)](#c-1-C).
  - (10) **Transfer of funds—** The [Foundation](/usc/42/17351.md?p=3) may transfer [funds](/usc/42/12854.md?p=3) to the National Institutes of Health and the National Institutes of Health may accept transfers of [funds](/usc/42/12854.md?p=3) from the [Foundation](/usc/42/17351.md?p=3). Any [funds](/usc/42/12854.md?p=3) transferred under this paragraph shall be subject to all Federal limitations relating to federally-funded research.
- (k) **Duties of Director—**
  - (1) **Applicability of certain standards to non-Federal employees—** In the case of any individual who is not an [employee](/usc/42/300gg–91.md?p=d-5) of the Federal Government and who serves in association with the National Institutes of Health, with respect to financial assistance received from the [Foundation](/usc/42/17351.md?p=3), the [Foundation](/usc/42/17351.md?p=3) may not provide the assistance of, or otherwise permit the work at the National Institutes of Health to begin until a memorandum of understanding between the individual and the [Director](/usc/42/5061.md?p=1) of the National Institutes of Health, or the designee of such [Director](/usc/42/5061.md?p=1), has been executed specifying that the individual shall be subject to such ethical and procedural [standards](/usc/42/1320d.md?p=7) of conduct relating to duties performed at the National Institutes of Health, as the [Director](/usc/42/5061.md?p=1) of the National Institutes of Health determines is appropriate.
  - (2) **Support services—** The [Director](/usc/42/5061.md?p=1) of the National Institutes of Health may provide [facilities](/usc/42/11049.md?p=4), utilities and support [services](/usc/42/201.md?p=a) to the [Foundation](/usc/42/17351.md?p=3) if it is determined by the [Director](/usc/42/5061.md?p=1) to be advantageous to the research [programs](/usc/42/274l–1.md?p=4) of the National Institutes of Health.
- (l) **Funding—** From amounts appropriated to the National Institutes of Health, for each fiscal year, the [Director of NIH](/usc/42/281.md?p=g-1) shall transfer not less than $1,250,000 and not more than $5,000,000 to the [Foundation](/usc/42/17351.md?p=3).

## Footnotes

[^1]: So in original. Probably should be “subsection”.
[^2]: See References in Text note below.

## Source credit

(July 1, 1944, ch. 373, title IV, § 499, formerly § 499A, as added Pub. L. 101–613, § 2, Nov. 16, 1990, 104 Stat. 3224; amended Pub. L. 102–170, title II, § 216, Nov. 26, 1991, 105 Stat. 1128; Pub. L. 102–321, title I, § 163(b)(6), July 10, 1992, 106 Stat. 376; renumbered § 499 and amended Pub. L. 103–43, title I, § 121(b)(3), title XVII, § 1701, June 10, 1993, 107 Stat. 133, 186; Pub. L. 104–316, title I, § 122(b), Oct. 19, 1996, 110 Stat. 3836; Pub. L. 105–392, title IV, § 418(2), Nov. 13, 1998, 112 Stat. 3591; Pub. L. 107–109, § 13, Jan. 4, 2002, 115 Stat. 1417; Pub. L. 109–482, title I, § 107, Jan. 15, 2007, 120 Stat. 3696; Pub. L. 110–85, title V, § 502(c), Sept. 27, 2007, 121 Stat. 889; Pub. L. 111–148, title X, § 10409(c), Mar. 23, 2010, 124 Stat. 978; Pub. L. 112–74, div. F, title II, § 221(d)(4), Dec. 23, 2011, 125 Stat. 1090; Pub. L. 112–144, title V, § 509(f), July 9, 2012, 126 Stat. 1050; Pub. L. 117–101, § 2(b), Mar. 15, 2022, 136 Stat. 47; Pub. L. 117–286, § 4(c)(39), Dec. 27, 2022, 136 Stat. 4358.)

## Notes

### Editorial Notes

### References in Text

The National Institutes of Health Amendments of 1990, referred to in subsec. (j)(8), is Pub. L. 101–613, Nov. 16, 1990, 104 Stat. 3224, which enacted this section, section 285g–4 of this title, and provisions set out as notes under section 201 and 285g–4 of this title. For complete classification of this Act to the Code, see Short Title of 1990 Amendments note set out under section 201 of this title and Tables.

Section 284m of this title, referred to in subsec. (j)(9)(B)(iv), was amended generally by Pub. L. 110–85, title V, § 502(b), Sept. 27, 2007, 121 Stat. 886, and, as so amended, does not contain a par. (12) in subsec. (c).

### Prior Provisions

A prior section 499 of act July 1, 1944, was classified to section 289h of this title prior to repeal by Pub. L. 103–43.

### Amendments

2022—Subsec. (j)(2). Pub. L. 117–286 substituted “section 13101(16) of title 5)” for “section 109(16) of the Ethics in Government Act of 1978)”.

Subsec. (l). Pub. L. 117–101 substituted “$1,250,000 and not more than $5,000,000” for “$500,000 and not more than $1,250,000”.

2012—Subsec. (c)(1)(C). Pub. L. 112–144 struck out “for which the Secretary issues a certification in the affirmative under section 355a(n)(1)(A) of title 21” before period at end.

2011—Subsec. (c)(1)(E). Pub. L. 112–74 substituted “section 287a” for “section 282d”.

2010—Subsec. (c)(1)(E). Pub. L. 111–148 added subpar. (E).

2007—Subsec. (c)(1)(C). Pub. L. 110–85 substituted “and studies for which the Secretary issues a certification in the affirmative under section 355a(n)(1)(A) of title 21” for “and studies listed by the Secretary pursuant to section 284m(a)(1)(A) of this title and referred under section 355a(d)(4)(C) of title 21”. Amendment, which directed striking out language ending with “section 505A(d)(4)(C) of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 355(a)(d)(4)(C)’ ” in the original, was executed by striking out language ending with “section 505A(d)(4)(C) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355a(d)(4)(C))” in the original to reflect the probable intent of Congress. That language had been translated as “section 355a(d)(4)(C) of title 21” for purposes of codification.

Subsec. (d)(1)(D)(ii). Pub. L. 109–482, § 107(1)(A)(i), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “Upon the appointment of the members of the Board under clause (i)(II), the terms of service of the ex officio members of the Board as members of the Board shall terminate.”

Subsec. (d)(1)(G). Pub. L. 109–482, § 107(1)(A)(ii), inserted “appointed” after “that the number of”.

Subsec. (d)(3)(B). Pub. L. 109–482, § 107(1)(B), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “Any vacancy in the membership of the Board shall be filled in the manner in which the original position was made and shall not affect the power of the remaining members to execute the duties of the Board.”

Subsec. (d)(5). Pub. L. 109–482, § 107(1)(C), inserted “appointed” after “majority of the”.

Subsec. (j)(2). Pub. L. 109–482, § 107(2)(A), substituted “subsection (d)(6)” for “subsection (d)(2)(B)(i)(II)”.

Subsec. (j)(4)(A). Pub. L. 109–482, § 107(2)(B)(i), inserted “, including an accounting of the use of amounts transferred under subsection (l)” before period at end.

Subsec. (j)(4)(C). Pub. L. 109–482, § 107(2)(B)(ii), added subpar. (C) and struck out former subpar. (C) which read as follows: “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.”

Subsec. (j)(10). Pub. L. 109–482, § 107(2)(C), substituted “of Health and the National Institutes of Health may accept transfers of funds from the Foundation” for “of Health”.

Subsec. (l). Pub. L. 109–482, § 107(3), added subsec. (l) and struck out former subsec. (l) which related to authorization of appropriations and limitation regarding other funds.

2002—Subsec. (b). Pub. L. 107–109, § 13(1), inserted “(including collection of funds for pediatric pharmacologic research)” after “mission”.

Subsec. (c)(1)(C), (D). Pub. L. 107–109, § 13(2), added subpar. (C) and redesignated former subpar. (C) as (D).

Subsec. (d)(1)(B)(iv). Pub. L. 107–109, § 13(3)(A)(i), added cl. (iv).

Subsec. (d)(1)(C). Pub. L. 107–109, § 13(3)(A)(ii), added subpar. (C) and struck out former subpar. (C) which read as follows: “The ex officio members of the Board under subparagraph (B) shall appoint to the Board 11 individuals from among a list of candidates to be provided by the National Academy of Science. Of such appointed members—

“(i) 4 shall be representative of the general biomedical field;

“(ii) 2 shall be representatives of the general biobehavorial field; and

“(iii) 5 shall be representatives of the general public.”

Subsec. (d)(2)(B). Pub. L. 107–109, § 13(3)(B), realigned margin.

Subsec. (e) to (g). Pub. L. 107–109, § 13(5), redesignated subsecs. (f) to (h) as (e) to (g), respectively.

Subsec. (h). Pub. L. 107–109, § 13(5), (6), redesignated subsec. (i) as (h) and substituted “solicit,” for “solicit” in par. (11). Former subsec. (h) redesignated (g).

Subsec. (i). Pub. L. 107–109, § 13(5), redesignated subsec. (j) as (i). Former subsec. (i) redesignated (h).

Subsec. (j). Pub. L. 107–109, § 13(5), redesignated subsec. (k) as (j). Former subsec. (j) redesignated (i).

Subsec. (j)(1). Pub. L. 107–109, § 13(7), struck out “(including those developed under subsection (d)(2)(B)(i)(II))” after “procedures relating to standards of conduct”.

Subsec. (j)(2). Pub. L. 107–109, § 13(7), which directed striking out “(including those developed under subsection (d)(2)(B)(i)(II))” in par. (2), could not be executed because those words do not appear in par. (2).

Subsec. (k). Pub. L. 107–109, § 13(5), redesignated subsec. (l) as (k). Former subsec. (k) redesignated (j).

Subsec. (k)(9). Pub. L. 107–109, § 13(4), designated existing provisions as subpar. (A), inserted subpar. heading, and added subpars. (B) and (C).

Subsecs. (l), (m). Pub. L. 107–109, § 13(5), redesignated subsec. (m) as (l). Former subsec. (l) redesignated (k).

1998—Subsec. (a). Pub. L. 105–392, § 418(2)(A), substituted “Foundation for the National Institutes of Health” for “National Foundation for Biomedical Research”.

Subsec. (k)(10). Pub. L. 105–392, § 418(2)(B), struck out “not” after “may” and inserted at end “Any funds transferred under this paragraph shall be subject to all Federal limitations relating to federally-funded research.”

Subsec. (m)(1). Pub. L. 105–392, § 418(2)(C), substituted “$500,000 for each fiscal year” for “$200,000 for the fiscal years 1994 and 1995”.

1996—Subsec. (n). Pub. L. 104–316 struck out subsec. (n) which required Comptroller General to conduct audit and prepare report to Congress on adequacy of compliance of the Foundation with guidelines established under this section.

1993—Subsec. (a). Pub. L. 103–43, § 1701(1), inserted “, acting through the Director of NIH,” after “Secretary shall” and struck out “, except for the purposes of the Ethics in Government Act and the Technology Transfer Act,” after “shall not”.

Subsec. (b). Pub. L. 103–43, § 1701(3), added subsec. (b) and struck out heading and text of former subsec. (b). Text related to duties of Foundation.

Subsec. (c). Pub. L. 103–43, § 1701(3), added subsec. (c). Former subsec. (c) redesignated (d).

Subsec. (d). Pub. L. 103–43, § 1701(2), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (f).

Subsec. (d)(1). Pub. L. 103–43, § 1701(4)(A), substituted “appointed members of the Board” for “members of the Foundation” in subpar. (A), “Board” for “Council” in subpar. (B), and “appoint to the Board” for “appoint to the Council” in subpar. (C), and added subpars. (D) to (G).

Subsec. (d)(2). Pub. L. 103–43, § 1701(4)(B), designated existing provisions as subpar. (A), substituted “an individual to serve as the initial Chair” for “an appointed member of the Board to serve as the Chair”, and added subpar. (B).

Subsec. (d)(3)(A). Pub. L. 103–43, § 1701(4)(C), substituted “(1)(C)” for “(2)(C)”.

Subsec. (d)(5), (6). Pub. L. 103–43, § 1701(4)(D), added pars. (5) and (6).

Subsec. (e). Pub. L. 103–43, § 1701(2), redesignated subsec. (e) as (g).

Subsecs. (f) to (h). Pub. L. 103–43, § 1701(2), redesignated subsecs. (d) to (f) as (f) to (h), respectively. Former subsecs. (g) and (h) redesignated (i) and (j), respectively.

Subsec. (i). Pub. L. 103–43, § 1701(2), redesignated subsec. (g) as (i). Former subsec. (i) redesignated (m).

Subsec. (i)(4). Pub. L. 103–43, § 1701(5)(A), inserted before period at end “, and define the duties of the officers and employees”.

Subsec. (i)(5), (6). Pub. L. 103–43, § 1701(5)(B), (C), redesignated par. (6) as (5) and struck out former par. (5) which read as follows: “prescribe by its Board its bylaws, that shall be consistent with law, and that shall provide for the manner in which—

“(A) its officers, employees, and agents are selected;

“(B) its property is acquired, held, and transferred;

“(C) its general operations are to be conducted; and

“(D) the privileges granted by law are exercised and enjoyed;”.

Subsec. (i)(7). Pub. L. 103–43, § 1701(5)(C), (D), redesignated par. (8) as (7) and substituted “part” for “subtitle”. Former par. (7) redesignated (6).

Subsec. (i)(8). Pub. L. 103–43, § 1701(5)(C), (E), redesignated par. (9) as (8) and substituted “establish a process for the selection of candidates for positions under subsection (c)” for “establish a mechanism for the selection of candidates, subject to the approval of the Director of the National Institutes of Health, for the endowed scientific positions within the organizational structure of the intramural research programs of the National Institutes of Health and candidates for participation in the National Institutes of Health Scholars program”.

Subsec. (i)(9), (10). Pub. L. 103–43, § 1701(5)(C), redesignated pars. (10) and (11) as (9) and (10), respectively. Former par. (9) redesignated (8).

Subsec. (i)(11). Pub. L. 103–43, § 1701(5)(C), (F), redesignated par. (12) as (11) and inserted “solicit” before “accept”. Former par. (11) redesignated (10).

Subsec. (i)(12), (13). Pub. L. 103–43, § 1701(5)(C), redesignated pars. (13) and (14) as (12) and (13), respectively. Former par. (12) redesignated (11).

Subsec. (i)(14). Pub. L. 103–43, § 1701(5)(G), (H), added par. (14). Former par. (14) redesignated (13).

Subsec. (i)(15). Pub. L. 103–43, § 1701(5)(I), substituted “part” for “subtitle”.

Subsec. (j). Pub. L. 103–43, § 1701(2), redesignated subsec. (h) as (j).

Subsecs. (k), (l). Pub. L. 103–43, § 1701(6), added subsecs. (k) and (l).

Subsec. (m). Pub. L. 103–43, § 1701(7), amended heading and text of subsec. (m) generally. Prior to amendment, text read as follows:

“(1) Authorization of appropriations.—Subject to paragraph (2), for the purpose of carrying out this part, there are authorized to be appropriated such sums as may be necessary for each of the fiscal years 1991 through 1995.

“(2) Limitations.—

“(A) Amounts appropriated under paragraph (1) or made available under subparagraph (C) may not be provided to the fund established under subsection (b)(1)(A) of this section.

“(B) For the first fiscal year for which amounts are appropriated under paragraph (1), $200,000 is authorized to be appropriated.

“(C) With respect to the first fiscal year for which amounts are appropriated under paragraph (1), the Secretary may, from amounts appropriated for such fiscal year for the programs of the Department of Health and Human Services, make available not more than $200,000 for carrying out this part, subject to subparagraph (A).”

Pub. L. 103–43, § 1701(2), redesignated subsec. (i) as (m).

Subsec. (n). Pub. L. 103–43, § 1701(8), added subsec. (n).

1992—Subsec. (g)(9). Pub. L. 102–321 struck out “or the Administrator of the Alcohol, Drug Abuse, and Mental Health Administration” after “Director of the National Institutes of Health” and “and the Alcohol, Drug Abuse, and Mental Health Administration” after “research programs of the National Institutes of Health”.

1991—Subsec. (c)(1)(C). Pub. L. 102–170, § 216(1), substituted “11” for “9”.

Subsec. (c)(1)(C)(iii). Pub. L. 102–170, § 216(2), substituted “5” for “3”.

### Statutory Notes and Related Subsidiaries

### Change of Name

Committee on Labor and Human Resources of Senate changed to Committee on Health, Education, Labor, and Pensions of Senate by Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19, 1999.

Committee on Energy and Commerce of House of Representatives treated as referring to Committee on Commerce of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Congress. Committee on Commerce of House of Representatives changed to Committee on Energy and Commerce of House of Representatives, and jurisdiction over matters relating to securities and exchanges and insurance generally transferred to Committee on Financial Services of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.

### Effective Date of 2007 Amendment

Amendment by Pub. L. 109–482 applicable only with respect to amounts appropriated for fiscal year 2007 or subsequent fiscal years, see section 109 of Pub. L. 109–482, set out as a note under section 281 of this title.

### Effective Date of 1992 Amendment

Amendment by Pub. L. 102–321 effective Oct. 1, 1992, with provision for programs providing financial assistance, see section 801(c), (d) of Pub. L. 102–321, set out as a note under section 236 of this title.