A bill to amend title 38, United States Code, to improve health-care programs of the Veterans' Administration.

(Measure passed House, amended)

Amends Federal veterans' benefits provisions to authorize the Administrator of Veterans Affairs (the Administrator) to establish, at any Veterans Administration (VA) medical center at which significant medical or scientific research is carried out, a nonprofit research corporation to carry out and administer funding for approved research at such center. Requires any such nonprofit research corporation (NRC) to comply only with those Federal laws, rules, and regulations that apply generally to private nonprofit corporations. Requires the Administrator to dissolve such corporation if, at the end of the three-year period following its establishment, it is not recognized as a non-taxable entity under Internal Revenue Code regulations. Outlines administrative provisions concerning such NRCs, including the creation of a board of directors, general powers, and State laws applicable to such NRCs.

Empowers the Inspector General of the VA with the right to examine the records of each NRC. Requires each NRC to submit annual reports to the Administrator on its activities. Requires each NRC board member and each VA employee involved in NRC functions to submit to the Administrator an annual statement certifying awareness of Federal conflict of interest regulations. Prohibits any NRC from being established after September 30, 1990.

Authorizes the Administrator to enter into agreements for the recruitment and retention of registered nurses at those VA medical centers with a significant shortage of registered nurses. Provides that any such agreement entered into will require the registered nurse to agree to serve in the VA for a period of time of not less than two nor more than four years. Authorizes the Administrator to pay incentive pay at specified rates for nurses consenting to enter into such agreements. Requires repayment to the VA by any registered nurse receiving such incentive pay and failing to complete the agreed-upon period of service.

Allows the Administrator to authorize the use of the official seal and other symbols of the VA by any person who makes a significant gift or contribution to the Administrator for the support of special recreational activities which further the rehabilitation of disabled veterans.

Prohibits any appropriation for a major medical facility project unless both the Senate and the House Veterans' Affairs Committees have adopted a resolution approving such project and setting forth the estimated cost of such project.

Authorizes the Chief Medical Director of the VA's Department of Medicine and Surgery to waive certain license requirements for the appointment of a practical or vocational nurse or physical therapist if: (1) such person is to be employed in a research position having no direct responsibility for patient-care services; or (2) such person is to be employed in a country other than the United States and the licensure or registration of such person is in the country in which the person is to serve. Authorizes the Director to waive a required internship for employment as a psychologist if the position is a research or academic position with no responsibility for direct patient-care services.

Authorizes the Administrator to make additional personnel appointments of pharmacists and occupational therapists within the VA for the care and treatment of veterans. Authorizes special pay for such medical personnel who agree to serve for a specified period of time.

Authorizes the Veterans' Canteen Service to operate child day care centers at VA medical facilities for the care of the children of VA employees. Authorizes the Service to establish reasonable charges for the provision of such care. Requires the Administrator to assign suitable employees to the operation of such day care centers.

Requires the Administrator, when entering into a contract which would convert an activity formerly performed by Federal employees into an activity performed by a Government contractor, to receive responsible bids from at least two financially autonomous bidders before such a contract may be awarded.

Establishes an income limit for determining a veteran's eligibility for VA domiciliary care.

Directs the Administrator, no later than one year after the enactment of this Act, to report to the Congress on the implementation of provisions of this Act and any other law recently enacted which make changes in the special and incentive pay for various health-care professionals in the VA's Department of Medicine and Surgery.