[Congressional Record Volume 150, Number 120 (Wednesday, September 29, 2004)]
[House]
[Pages H7790-H7796]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    VETERANS HEALTH PROGRAMS AND FACILITIES ENHANCEMENT ACT OF 2004

  Mr. SMITH of New Jersey. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 4768) to amend title 38, United States Code, to 
authorize the Secretary of Veterans Affairs to enter into certain major 
medical facility leases, to authorize that Secretary to transfer real 
property subject to certain limitations, and for other purposes, as 
amended.
  The Clerk read as follows:

                               H.R. 4768

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

[[Page H7791]]

     SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
                   CODE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Veterans 
     Health Programs and Facilities Enhancement Act of 2004''.
       (b) References to Title 38, United States Code.--Except as 
     otherwise expressly provided, whenever in this Act an 
     amendment or repeal is expressed in terms of an amendment to, 
     or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of title 38, United States Code.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; references to title 38, United States Code; table 
              of contents.

                 TITLE I--MEDICAL FACILITIES MANAGEMENT

Sec. 101. Major medical facility leases.
Sec. 102. Department of Veterans Affairs Capital Asset Fund.
Sec. 103. Annual report to Congress on inventory of Department of 
              Veterans Affairs historic properties.
Sec. 104. Authority to use project funds to construct or relocate 
              surface parking incidental to a construction or 
              nonrecurring maintenance project.
Sec. 105. Inapplicability of limitation on use of advance planning 
              funds to authorized major medical facility projects.
Sec. 106. Improvement in enhanced-use lease authorities.
Sec. 107. Extension of authority to provide care under long-term care 
              pilot programs.

                        TITLE II--OTHER MATTERS

Sec. 201. Inclusion of all enrolled veterans among persons eligible to 
              use canteens operated by Veterans' Canteen Service.
Sec. 202. Enhancement of medical preparedness of Department.

                 TITLE I--MEDICAL FACILITIES MANAGEMENT

     SEC. 101. MAJOR MEDICAL FACILITY LEASES.

       (a) Authorized Leases.--The Secretary of Veterans Affairs 
     may enter into contracts for major medical facility leases at 
     the following locations, in an amount for each facility lease 
     not to exceed the amount shown for that location:
       (1) Wilmington, North Carolina, Outpatient Clinic, 
     $1,320,000.
       (2) Greenville, North Carolina, Outpatient Clinic, 
     $1,220,000.
       (3) Norfolk, Virginia, Outpatient Clinic, $1,250,000.
       (4) Summerfield, Florida, Marion County Outpatient Clinic, 
     $1,230,000.
       (5) Knoxville, Tennessee, Outpatient Clinic, $850,000.
       (6) Toledo, Ohio, Outpatient Clinic, $1,200,000.
       (7) Crown Point, Indiana, Outpatient Clinic, $850,000.
       (8) Fort Worth, Texas, Tarrant County Outpatient Clinic, 
     $3,900,000.
       (9) Plano, Texas, Collin County Outpatient Clinic, 
     $3,300,000.
       (10) San Antonio, Texas, Northeast Central Bexar County 
     Outpatient Clinic, $1,400,000.
       (11) Corpus Christi, Texas, Outpatient Clinic, $1,200,000.
       (12) Harlingen, Texas, Outpatient Clinic, $650,000.
       (13) Denver, Colorado, Health Administration Center, 
     $1,950,000.
       (14) Oakland, California, Outpatient Clinic, $1,700,000.
       (15) San Diego, California, North County Outpatient Clinic, 
     $1,300,000.
       (16) San Diego, California, South County, Outpatient 
     Clinic, $1,100,000.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Veterans Affairs for 
     fiscal year 2005 for the Medical Care account, $24,420,000 
     for the leases authorized in subsection (a).
       (c) Authority for Lease of Certain Lands of University of 
     Colorado.--Notwithstanding section 8103 of title 38, United 
     States Code, the Secretary of Veterans Affairs may enter into 
     a lease for real property located at the Fitzsimons Campus of 
     the University of Colorado for a period up to 75 years.

     SEC. 102. DEPARTMENT OF VETERANS AFFAIRS CAPITAL ASSET FUND.

       (a) Establishment of Fund.--(1) Subchapter I of chapter 81 
     is amended by adding at the end the following new section:

     ``Sec. 8118. Authority for transfer of real property; Capital 
       Asset Fund

       ``(a)(1) The Secretary may transfer real property under the 
     jurisdiction or control of the Secretary (including 
     structures and equipment associated therewith) to another 
     department or agency of the United States or to a State (or a 
     political subdivision of a State) or to any public or private 
     entity, including an Indian tribe. Such a transfer may be 
     made only if the Secretary receives compensation of not less 
     than the fair market value of the property, except that no 
     compensation is required, or compensation at less than fair 
     market value may be accepted, in the case of a transfer to a 
     grant and per diem provider (as defined in section 2002 of 
     this title). When a transfer is made to a grant and per diem 
     provider for less than fair market value, the Secretary shall 
     require in the terms of the conveyance that if the property 
     transferred is used for any purpose other than a purpose 
     under chapter 20 of this title, all right, title, and 
     interest to the property shall revert to the United States.
       ``(2) The Secretary may exercise the authority provided by 
     this section notwithstanding sections 521, 522 and 541-545 of 
     title 40. Any such transfer shall be in accordance with this 
     section and section 8122 of this title.
       ``(3) The authority provided by this section may not be 
     used in a case to which section 8164 of this title applies.
       ``(4) The Secretary may enter into partnerships or 
     agreements with public or private entities dedicated to 
     historic preservation to facilitate the transfer, leasing, or 
     adaptive use of structures or properties specified in 
     subsection (b)(3)(D).
       ``(5) The authority of the Secretary under paragraph (1) 
     expires on the date that is seven years after the date of the 
     enactment of this section.
       ``(b)(1) There is established in the Treasury of the United 
     States a revolving fund to be known as the Department of 
     Veterans Affairs Capital Asset Fund (hereinafter in this 
     section referred to as the `Fund'). Amounts in the Fund shall 
     remain available until expended.
       ``(2) Proceeds from the transfer of real property under 
     this section shall be deposited into the Fund.
       ``(3) To the extent provided in advance in appropriations 
     Acts, amounts in the Fund may be expended for the following 
     purposes:
       ``(A) Costs associated with the transfer of real property 
     under this section, including costs of demolition, 
     environmental remediation, maintenance and repair, 
     improvements to facilitate the transfer, and administrative 
     expenses.
       ``(B) Costs, including costs specified in subparagraph (A), 
     associated with future transfers of property under this 
     section.
       ``(C) Costs associated with enhancing medical care services 
     to veterans by improving, renovating, replacing, updating, 
     and establishing patient care facilities through construction 
     projects to be carried out for an amount less than the amount 
     specified in 8104(a)(3)(A) for a major medical facility 
     project.
       ``(D) Costs, including costs specified in subparagraph (A), 
     associated with the transfer, lease or adaptive use of a 
     structure or other property under the jurisdiction of the 
     Secretary that is listed on the National Register of Historic 
     Places.
       ``(c) The Secretary shall include in the budget 
     justification materials submitted to Congress for any fiscal 
     year in support of the President's budget for that year for 
     the Department specification of the following:
       ``(1) The real property transfers to be undertaken in 
     accordance with this section during that fiscal year.
       ``(2) All transfers completed under this section during the 
     preceding fiscal year and completed and scheduled to be 
     completed during the year during which the budget is 
     submitted.
       ``(3) The deposits into, and expenditures from, the Fund 
     that are incurred or projected for each of the preceding 
     fiscal year, the current fiscal year, and the fiscal year 
     covered by the budget.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     8117 the following new item:

``8118. Authority for transfer of real property; Capital Asset Fund.''.

       (b) Initial Authorization of Appropriations.--There is 
     authorized to be appropriated to the Department of Veterans 
     Affairs Capital Asset Fund established under section 8118 of 
     title 38, United States Code (as added by subsection (a)), 
     the amount of $10,000,000.
       (c) Termination of Nursing Home Revolving Fund.--(1) 
     Section 8116 is repealed.
       (2) The table of sections at the beginning of chapter 81 is 
     amended by striking the item relating to section 8116.
       (d) Transfer of Unobligated Balances to Capital Asset 
     Fund.--Any unobligated balances in the nursing home revolving 
     fund under section 8116 of title 38, United States Code, as 
     of the date of the enactment of this Act shall be deposited 
     in the Department of Veterans Affairs Capital Asset Fund 
     established under section 8118 of title 38, United States 
     Code (as added by subsection (a)).
       (e) Procedures Applicable to Transfers.--(1) Paragraph (2) 
     of section 8122(a) is amended to read as follows:
       ``(2) Except as provided in paragraph (3), the Secretary 
     may not during any fiscal year transfer to any other 
     department or agency of the United States or to any other 
     entity real property that is owned by the United States and 
     administered by the Secretary unless the proposed transfer is 
     described in the budget submitted to Congress pursuant to 
     section 1105 of title 31 for that fiscal year.''.
       (2) Section 8122(d) is amended--
       (A) by inserting ``(1)'' before ``Real property''; and
       (B) by adding at the end the following new paragraph:
       ``(2) The Secretary may transfer real property under this 
     section, or under section 8118 of this title if the 
     Secretary--
       ``(A) places a notice in the real estate section of local 
     newspapers and in the Federal Register of the Secretary's 
     intent to transfer that real property (including land, 
     structures, and equipment associated with the property);
       ``(B) holds a public hearing;
       ``(C) provides notice to the Administrator of General 
     Services of the Secretary's intention to transfer that real 
     property and waits for 30 days to elapse after providing that 
     notice; and
       ``(D) after such 30-day period has elapsed, notifies the 
     congressional veterans' affairs committees of the Secretary's 
     intention to dispose of the property and waits for 60 days to 
     elapse from the date of that notice.''.
       (3) Section 8164(a) is amended by inserting ``8118 or'' 
     after ``rather than under section''.
       (4) Section 8165(a)(2) is amended by striking ``nursing 
     home revolving fund'' and inserting ``Capital Asset Fund 
     established under section 8118 of this title''.

[[Page H7792]]

       (f) Contingent Effectiveness.--The amendments made by this 
     section shall take effect at the end of the 30-day period 
     beginning on the date on which the Secretary of Veterans 
     Affairs certifies to Congress that the Secretary is in 
     compliance with subsection (b) of section 1710B of title 38, 
     United States Code. Such certification shall demonstrate a 
     plan for, and commitment to, ongoing compliance with the 
     requirements of that subsection.
       (g) Continuing Reports.--Following a certification under 
     subsection (f), the Secretary shall submit to Congress an 
     update on that certification every six months until the 
     certification is included in the Department's annual budget 
     submission.

     SEC. 103. ANNUAL REPORT TO CONGRESS ON INVENTORY OF 
                   DEPARTMENT OF VETERANS AFFAIRS HISTORIC 
                   PROPERTIES.

       (a) In General.--Not later than December 15 of 2005, 2006, 
     and 2007, the Secretary of Veterans Affairs shall submit to 
     the Committees on Veterans' Affairs of the Senate and House 
     of Representatives a report on the historic properties 
     administered or controlled by the Secretary.
       (b) Initial Report.--In the initial report under subsection 
     (a), the Secretary shall set forth a complete inventory of 
     the historic structures and property under the jurisdiction 
     of the Secretary. The report shall include a description and 
     classification of each such property based upon historical 
     nature, current physical condition, and potential for 
     transfer, leasing, or adaptive use.
       (c) Subsequent Reports.--In reports under subsection (a) 
     after the initial report, the Secretary shall provide an 
     update of the status of each property identified in the 
     initial report, with the proposed and actual disposition of 
     each property. Each such report shall include any 
     recommendation of the Secretary for legislation to enhance 
     the transfer, leasing or adaptive use of such properties.

     SEC. 104. AUTHORITY TO USE PROJECT FUNDS TO CONSTRUCT OR 
                   RELOCATE SURFACE PARKING INCIDENTAL TO A 
                   CONSTRUCTION OR NONRECURRING MAINTENANCE 
                   PROJECT.

       Section 8109 is amended by adding at the end the following 
     new subsection:
       ``(j) Funds in a construction account or capital account 
     that are available for a construction project or a 
     nonrecurring maintenance project may be used for the 
     construction or relocation of a surface parking lot 
     incidental to that project.''.

     SEC. 105. INAPPLICABILITY OF LIMITATION ON USE OF ADVANCE 
                   PLANNING FUNDS TO AUTHORIZED MAJOR MEDICAL 
                   FACILITY PROJECTS.

       Section 8104 is amended by adding at the end the following 
     new subsection:
       ``(g) The limitation in subsection (f) does not apply to a 
     project for which funds have been authorized by law in 
     accordance with subsection (a)(2).''.

     SEC. 106. IMPROVEMENT IN ENHANCED-USE LEASE AUTHORITIES.

       Section 8166(a) is amended by inserting ``land use,'' in 
     the second sentence after ``relating to''.

     SEC. 107. EXTENSION OF AUTHORITY TO PROVIDE CARE UNDER LONG-
                   TERM CARE PILOT PROGRAMS.

       Subsection (h) of section 102 of the Veterans Millennium 
     Health Care and Benefits Act (38 U.S.C. 1710B note) is 
     amended--
       (1) by inserting ``(1)'' before ``The authority of''; and
       (2) by adding at the end the following new paragraph:
       ``(2) In the case of a veteran who is participating in a 
     pilot program under this section as of the end of the three-
     year period applicable to that pilot program under paragraph 
     (1), the Secretary may continue to provide to that veteran 
     any of the services that could be provided under the pilot 
     program. The authority to provide services to any veteran 
     under the preceding sentence applies during the period 
     beginning on the date specified in paragraph (1) with respect 
     to that pilot program and ending on December 31, 2005.''.

                        TITLE II--OTHER MATTERS

     SEC. 201. INCLUSION OF ALL ENROLLED VETERANS AMONG PERSONS 
                   ELIGIBLE TO USE CANTEENS OPERATED BY VETERANS' 
                   CANTEEN SERVICE.

       The text of section 7803 is amended to read as follows:
       ``(a) Primary Beneficiaries.--Canteens operated by the 
     Service shall be primarily for the use and benefit of--
       ``(1) veterans hospitalized or domiciled at the facilities 
     at which canteen services are provided; and
       ``(2) other veterans who are enrolled under section 1705 of 
     this title.
       ``(b) Other Authorized Users.--Service at such canteens may 
     also be furnished to--
       ``(1) personnel of the Department and recognized veterans' 
     organizations who are employed at a facility at which canteen 
     services are provided and to other persons so employed;
       ``(2) the families of persons referred to in paragraph (1) 
     who reside at the facility; and
       ``(3) relatives and other persons while visiting a person 
     specified in this section.''.

     SEC. 202. ENHANCEMENT OF MEDICAL PREPAREDNESS OF DEPARTMENT.

       (a) Peer Review Panel.--In order to assist the Secretary of 
     Veterans Affairs in selecting facilities of the Department of 
     Veterans Affairs to serve as sites for centers under section 
     7327 of title 38, United States Code, as added by subsection 
     (c), the Secretary shall establish a peer review panel to 
     assess the scientific and clinical merit of proposals that 
     are submitted to the Secretary for the selection of such 
     facilities. The panel shall be established not later than 90 
     days after the date of the enactment of this Act and shall 
     include experts in the fields of toxicological research, 
     infectious diseases, radiology, clinical care of veterans 
     exposed to such hazards, and other persons as determined 
     appropriate by the Secretary. Members of the panel shall 
     serve as consultants to the Department of Veterans Affairs. 
     Amounts available to the Secretary for Medical Care may be 
     used for purposes of carrying out this subsection. The panel 
     shall not be subject to the Federal Advisory Committee Act (5 
     U.S.C. App.).
       (b) Proposals.--The Secretary shall solicit proposals for 
     designation of facilities as described in subsection (a). The 
     announcement of the solicitation of such proposals shall be 
     issued not later than 60 days after the date of the enactment 
     of this Act, and the deadline for the submission of proposals 
     in response to such solicitation shall be not later than 90 
     days after the date of such announcement. The peer review 
     panel established under subsection (a) shall complete its 
     review of the proposals and submit its recommendations to the 
     Secretary not later than 60 days after the date of the 
     deadline for the submission of proposals. The Secretary shall 
     then select the four sites for the location of such centers 
     not later than 45 days after the date on which the peer 
     review panel submits its recommendations to the Secretary.
       (c) Revised Section.--Subchapter II of chapter 73 is 
     amended by adding at the end a new section with--
       (1) a heading as follows:

     ``Sec. 7327. Medical preparedness centers'';

     and
       (2) a text consisting of the text of subsections (a) 
     through (h) of section 7325 of title 38, United States Code, 
     and a subsection (i) at the end as follows:
       ``(i) Funding.--(1) There are authorized to be appropriated 
     for the centers under this section $10,000,000 for each of 
     fiscal years 2005 through 2007.
       ``(2) In addition to any amounts appropriated for a fiscal 
     year specifically for the activities of the centers pursuant 
     to paragraph (1), the Under Secretary for Health shall 
     allocate to the centers from other funds appropriated for 
     that fiscal year generally for the Department medical care 
     account and the Department medical and prosthetics research 
     account such amounts as the Under Secretary determines 
     necessary in order to carry out the purposes of this 
     section.''.
       (d) Rule of Construction.--No provision of law may be 
     construed to supersede or nullify this section, or an 
     amendment made by this section, unless it specifically refers 
     to this subsection and specifically states that it is enacted 
     to supersede or nullify this section or a provision of this 
     section.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
Jersey (Mr. Smith) and the gentleman from Texas (Mr. Rodriguez) each 
will control 20 minutes.
  The Chair recognizes the gentleman from New Jersey (Mr. Smith).
  Mr. SMITH of New Jersey. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I rise in very strong support and urge colleagues to 
support and embrace H.R. 4768, the Veterans Health Programs and 
Facilities Enhancement Act of 2004. I want to thank the gentleman from 
Illinois (Mr. Evans), ranking member, who has been a very strong 
partner in helping shape this legislation. And I particularly want to 
thank the gentleman from Connecticut (Mr. Simmons), chairman of the 
Health Subcommittee, who is the prime sponsor of this legislation, for 
his leadership. It has been extraordinary, and I do want to acknowledge 
that. I also want to thank the gentleman from Texas (Mr. Rodriguez), 
who likewise has worked as a good partner in a bipartisan effort to 
craft this very important piece of legislation.
  Mr. Speaker, this legislation will help address the need to modernize 
aging veterans health-care facilities, make better use of existing 
properties and dispose of unneeded VA properties over the next several 
years. The Veterans Health Care, Capital Asset, and Business 
Improvement Act of 2003 gave the Secretary of Veterans Affairs wide 
latitude to spend funds to improve, restore, or replace those VA 
health-care facilities most in need of such work. Congress instructed 
the Secretary to approve individual products based on recommendations 
of an independent capital investments board, and we placed a premium on 
projects to protect patient safety as well as privacy, improve seismic 
protection, and provide barrier-free accommodations. Moreover, we also 
put an emphasis on improving specialized-care facilities. Thus, even 
though the VA's budget request of $400 million for fiscal year 2005 to 
carry out approved modernization projects, the necessary authorization 
legislation is already enacted.
  For the benefit of the many Members who are interested in the plans 
to improve VA health-care facilities, I will insert a summary of the 
capital projects which the Secretary listed as the VA's highest 
priorities when he announced his CARES decision in June of

[[Page H7793]]

this year. The cost of the projects for fiscal year 2004 totals $623 
million, while the projects listed for fiscal year 2005 total $401 
million.
  Mr. Speaker, after a multi-year drought in available funds to improve 
VA's extensive hospital and outpatient network, this long list of OMB-
approved projects marks the beginning of a multi-year effort to 
modernize those facilities that will be needed to serve veterans in the 
first half of the 21st Century. VA Secretary Principi anticipates that 
the just-completed CARES process will require additional investment of 
approximately $1 billion per year for the next 5 years in order to 
bring the VA's infrastructure up to contemporary standards and meet 
veterans' expectations of accessible care.
  In addition, it should be noted that the CARES process is not 
complete, and there will undoubtedly be further fiscal consequences 
when the VA has fully assessed its current and future obligation to 
veterans who need long-term care as well as mental health care. 
Honoring these commitments may well mean additional investments in the 
VA facilities which are not included in the Secretary's $5 billion 
figure.
  This legislation, Mr. Speaker, authorizes major medical facility 
leases at 16 locations for community-based clinics at a cost of 
approximately $24.4 million in fiscal year 2005. Most of these leases 
are for replacement facilities, although some expansion into new 
locations is also proposed and approved by this bill.
  This bill would also provide the Department authority to enter into a 
unique long-term lease for up to 75 years for the land to construct a 
new medical facility on the Fitzsimons Campus at the University of 
Colorado in Aurora, Colorado. It is anticipated that this new VA 
facility will share many services with the university and also provide 
services to Air Force beneficiaries. I want to recognize and thank the 
gentleman from Colorado (Mr. Beauprez) for helping to identify the need 
to provide this authority to support the Fitzsimons project as well as 
the close attention he has given it as we have worked on this in the 
108th Congress. And I thank the gentleman from Colorado (Mr. Beauprez) 
so much for that.
  This legislation, Mr. Speaker, will also facilitate the Secretary's 
authority to transfer unneeded real property currently in the VA's 
portfolio. The bill would require fair-market value for disposals, 
except when a property would be transferred to a provider of homeless 
veterans' services under a grant under section 2011 of title 38, U.S. 
Code.
  This bill would also establish a new fund to be known as the Capital 
Asset Fund. The purpose of the new fund would be to defray VA's cost of 
transferring real property, including demolition, environmental 
restoration, maintenance, repair, historic preservation, and 
administrative expenses. This bill would authorize appropriations of 
$10 million in seed money to launch the fund and support the capital 
planning initiatives developed through the VA's capital planning 
process.
  Mr. Speaker, VA controls the fourth largest inventory of owned, 
leased and operated federal real property. It is estimated that more 
than half of the VA's facilities are over 50 years old. Many structures 
date from the 19th Century, and many more were constructed in the late 
1940s and early 1950s. Portions of the 24 VA medical center campuses 
are currently listed on the National Register of Historic Places. 
Another 61 sites have been determined eligible or potentiality eligible 
for this designation. Given this array of heritage assets, H.R. 4768 
would also allow the Secretary to enter into partnerships or agreements 
with public or private entities dedicated to historic preservation and 
to use resources from the Capital Asset Fund to facilitate the 
transfer, leasing or adaptive uses of these historic properties that no 
longer serve useful purposes as health-care facilities.
  The bill would also require an inventory and series of reports on the 
status of each historic property. The bill would also require the 
Department's annual budget submission to include information on each 
proposed and completed transfer of VA real property, including historic 
property, using this authority, as well to report deposits and 
expenditures from the new fund.
  Mr. Speaker, the Millennium Health Care and Benefits Act requires the 
VA to maintain long-term care programs, sustain a defined number of 
nursing home beds, and enhance other long-term programs, such as 
geriatric evaluation, domiciliary, and adult day health care, and 
respite, palliative and hospice programs, in both institutional and 
noninstitutional settings. The Congress' interest in these programs is 
strong and ongoing, as evidenced by our decision last year to extend 
many of the provisions of the 1999 Millennium Health Care Act for 
another 5 years. Since VA has struggled to meet many of these 
requirements of the Act, this bill would make the new property transfer 
authority contingent on the Secretary's certification that the VA is 
maintaining the long-term-care facility required in that Act.
  The bill also includes additional provisions endorsed by the 
administration, including one to clarify that the Veterans' Canteen 
Service can serve all enrolled veterans, not just hospitalized 
veterans. Congress established the Canteen Service in the late 1940s at 
a time when the VA health-care system was hospital-based and many 
patients were hospitalized for months at a time at facilities that were 
far from commercial centers. This restatement of the Canteen's mission 
is consistent with the shift of VA care over the past 10 years from 
hospital-based care to an outpatient-based health-care system. Veterans 
enrolled in the VA health care ought to be able to obtain the products 
and services available in VA canteens without any restrictions in law.
       Below are the FY 2004 and 2005 projects for which VA is 
     requesting authorization and appropriation approval from 
     Congress to proceed.

                               SUMMARY OF CARES FY 2004 AND 2005 CAPITAL PROJECTS
----------------------------------------------------------------------------------------------------------------
                                                                                                        Budget
        Year            VISN           Location               Project title--brief       Priority #    request
                                                                  description                           ($000)
----------------------------------------------------------------------------------------------------------------
2004................       12  Chicago, IL.............  Bed Tower....................            *      $98,500
2004................       12  North Chicago, IL.......  Joint VA and Dept of Navy                *       13,000
                                                          Medical Project.
2004................       21  Palo Alto, CA...........  Seismic Corrections Bldg. 2..            1       34,000
2004................       10  Cleveland, OH...........  Cleveland-Brecksville Cons.,             2       15,000
                                                          Ph 1 Design.
2004................        4  Pittsburgh, PA..........  Consolidation of Campuses, Ph            3       20,000
                                                          1 Design.
2004................       23  Minneapolis, MN.........  SCI & SCD Center.............            4       20,500
2004................       22  Las Vegas, NV...........  New Federal Medical Facility,            6       60,000
                                                          Design and Land Purchase.
2004................        8  Gainesville, FL.........  Correct Pt. Privacy Def., Ph             7        8,800
                                                          1-Design.
2004................       11  Indianapolis, IN........  7th & 8th Fl. Wards                      8       27,400
                                                          Modernization Addition.
2004................       18  Tucson, AZ..............  Mental Health Clinic.........            9       12,100
2004................       19  Denver, CO..............  New Federal Medical Facility,           10       30,000
                                                          Ph 1 Design.
2004................       17  San Antonio, TX.........  Ward Upgrades and Expansion..           11       19,100
2004................        8  Orlando, FL.............  Bed Tower, Phase 1 Design....           12       25,000
2004................        8  Tampa, FL...............  Upgrade Essential Electrical            13       49,000
                                                          Dist. Systems.
2004................       10  Columbus, OH............  Construction of Outpatient              14       94,800
                                                          Clinic.
2004................        6  Durham, NC..............  Renovate Patient Wards.......           15        9,100
2004................       22  Long Beach, CA..........  Seismic Corrections--Bldgs              16       10,300
                                                          7,126, Phase 1 Design.
2004................       20  Anchorage, AK...........  Outpt. Clinic/Regional                  18       11,760
                                                          Office, Ph 1 Design.
2004................  .......  Various.................  Line Items...................  ...........       64,378
                                                                                                    ------------
                                                                Total.................                   622,738
                                                                                                    ============
2005................        8  Tampa, FL...............  SCI Expansion................          **5        7,100
2005................       16  Pensacola, FL...........  Joint VA and Department of           ***17       55,500
                                                          Navy OPC.
2005................       17  Temple, TX..............  Blind Rehab and Psychiatric             19       56,000
                                                          Beds.
2005................        8  San Juan, PR............  Seismic Corrections--Bldg. 1,           20       15,000
                                                          Ph 1 Design.
2005................        2  Syracuse, NY............  Construct Addition for SCI              21       53,900
                                                          Center.

[[Page H7794]]

 
2005................        7  Atlanta, GA.............  Modernize Patient Wards......           22       20,700
2005................       21  Menlo Park, CA..........  Seismic Corrections--                   23       33,239
                                                          Geropsych. NH Replacement
                                                          (Bldg. 324).
2005................       21  San Francisco, CA.......  Seismic Corrections--Bldg.              24       41,500
                                                          203.
2005................       22  Los Angeles, CA.........  Seismic Corrections--Bldgs.             25        8,000
                                                          500 & 501, Ph 1 Design.
2005................        8  Lee County, FL..........  Outpatient Clinic Land                  26        6,510
                                                          Purchase.
2005................       23  Des Moines, IA..........  Extended Care Building.......           27       25,000
2005................       22  San Diego, CA...........  Seismic Corrections--Bldg. 1.        ***29       48,260
2005................  .......  Various.................  Line Items...................  ...........      *30,091
                                                                                                    ------------
                                                               Total..................                   400,800
----------------------------------------------------------------------------------------------------------------
* Projects approved in the pilot CARES study for Network 12--Chicago/Wisconsin.
** Delayed pending results of further SCI study.
*** Priority numbers 17 and 18, and 28 and 29 are reversed to maximize the utilization of the funding as
  requested in the 2004 and 2005 budgets.

       The non-CARES capital investment decision process resulted 
     in the identification of the following highest priority non-
     CARES projects that were reviewed by the Senior Management 
     Council and approved by the Secretary. They were included in 
     the Department's FY 2005 budget submission and are currently 
     being considered by the Congress.

                                  SUMMARY OF NON-CARES FY 2005 CAPITAL PROJECTS
----------------------------------------------------------------------------------------------------------------
                                                                                                        Budget
       Year             Admin             Location             Project title--brief       Priority     request
                                                                   description                          ($000)
----------------------------------------------------------------------------------------------------------------
                                     Acquisition Business Case Applications
 
2005.............  NCA...........  Vacaville, CA.........  Sacramento Area New                    1      $21,600
                                                            Cemetery Phase 1
                                                            Development.
2005.............  NCA...........  Bushnell, FL..........  Cemetery Expansion.........            2       20,000
2005.............  NCA...........  Rock Island, IL.......  Moline Cemetery Expansion..            3       10,200
2005.............  VBA...........  Huntington, WV........  New GSA Lease..............            4        3,700
2005.............  VBA...........  Reno, NV..............  VARO Reno GSA Lease........            5        1,000
 
                          Planning Business Case Applications (Requesting Design Funds)
 
2005.............  NCA...........  San Diego, CA.........  Ft. Rosecrans Cemetery                 1        1,000
                                                            Annex at Miramar (Design).
2005.............  NCA...........  Riverside, CA.........  Cemetery Expansion (Design)            2        1,400
2005.............  NCA...........  Gustine, CA...........  San Joaquin Valley Cemetery            3          800
                                                            Expansion (Design).
----------------------------------------------------------------------------------------------------------------

  Mr. Speaker, I reserve the balance of my time.
  Mr. RODRIGUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, let me, first of all, take this opportunity to thank the 
gentleman from New Jersey (Chairman Smith) for his efforts in this 
particular piece of legislation, and I want to thank him personally for 
his work in the Committee on Veterans' Affairs; as well as the 
gentleman from Connecticut (Mr. Simmons), the subcommittee chairman, 
for his work and his diligence and outreach to my side. I also want to 
take this opportunity to also thank the gentleman from Illinois (Mr. 
Evans) for his work.
  Mr. Speaker, I rise in support of H.R. 4768, the Veterans Health 
Programs and Facilities Enhancement Act of 2004. For the last 5 years, 
Mr. Speaker, the VA construction has essentially been nonexistent in 
large part to allow the completion of the CARES initiative. As the 
Members well know, the CARES initiative was an effort by the President 
to go out and look at facilities' utilizations, and so the fact is that 
we have not had an opportunity to improve on a lot of the facilities 
that are out there, and I am really pleased that this piece of 
legislation we have been able to bring forth. For the last 5 years, the 
VA health-care system has struggled to provide services with 
infrastructure that is in sore need of repair and upgrade.
  H.R. 4768 will help the VA to develop and improve its properties, and 
under this bill, the Secretary of Veterans Affairs will have the 
authority to transfer unneeded properties and to retain the proceeds 
from those transfers.
  In place of the Nursing Home Revolving Fund, the bill establishes a 
Capital Asset Fund, allowing the proceeds from the property transfers 
to be used for financing the cost of those transfers. The bill also 
authorizes $10 million to be appropriated to the Capital Asset Fund 
where it can be used for these purposes. Sixteen new major leases are 
authorized in this bill, including leases that I would like to mention 
in South Texas, where the gentleman from Texas' (Mr. Ortiz) district 
has had a lack of services in the Corpus Christi area.

                              {time}  1715

  The gentleman from Texas (Mr. Hinojosa), in the Harlingen area, and 
as well some services in the South Texas area, in San Antonio and 
others. So I am real pleased to have seen those areas, that even the 
CARES proposal that identified some areas of disparity that exists in 
terms of services for veterans.
  Because many of the VA's important historic buildings are poorly 
maintained and are falling apart, I am also pleased that the Committee 
on Veterans' Affairs concluded that the VA should also use the capital 
asset fund to preserve historic properties. It is the committee's 
intent for VA to provide a series of reports to address its large 
inventory of historic assets.
  In addition to the VA's construction, H.R. 4768 will include funds 
for four emergency preparedness centers we authorized in November of 
2004. These centers will enhance medical preparedness for the VA and 
for the Nation. It is clear to me that as the Nation's largest health 
care provider, the VA has an important role to play in providing for 
attack or natural disasters. I have fought for funds to address the 
initiative costs of these centers, and I am pleased that the provisions 
are included.
  This legislation would also extend the VA's authority to provide care 
to veterans participating in long-term care pilot programs. These 
programs were previously authorized in the Veterans Millennium Health 
Care and Benefits Act, and are set to expire in December of 2005. I am 
pleased to be an original cosponsor of the legislation, and I hope 
Members will support this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield 4 minutes to my good 
friend and colleague, the gentleman from Florida (Mr. Stearns), the 
prime sponsor of the Millennium Health Care Act referenced earlier in 
the debate.
  Mr. STEARNS. Mr. Speaker, I thank the distinguished chairman, and I 
also thank the chairman of the Subcommittee on Health for his support 
and commend him for all his actions.
  I rise in support of this bill, H.R. 4768. I am also pleased, as the 
chairman mentioned, to be an original cosponsor of this bill, which 
authorized projects which have been well analyzed by the CARES 
Commission. I think we all know what this is, the Capital Asset 
Realignment For Enhancement Services. It has been recommended to 
Secretary Principi.
  Under CARES, the VA reviewed all of its facilities systematically, 
and I think that should be an assurance to all veterans, to consider 
where resources should be allocated for optimum services for the 
veterans, particularly as more veterans, as we know, relocate to the 
Southeast, particularly in

[[Page H7795]]

Florida. It appears the VA has insufficient clinics down in the 
southeast portion, and so I am very pleased to see that they are 
looking at that.
  Accordingly, the majority of the leases which the legislation would 
authorize are in the South. The aim has been to match assets with the 
veterans, and this bill does just that. Florida, as we know, has the 
second largest veterans population and the number one in terms of age.
  Obviously, I am heartened to see a lease for a regional health care 
facility providing multiple specialties in South Marion County, 
Summerfield, Florida, in this legislation. The plans are for such a 
clinic to offer comprehensive services to veterans. These are 
comprehensive services you would not get in an outpatient clinic and 
they are complete. It also will have imaging service in its facility. 
It will be 75,000 square feet. It will provide more services and 
greater resources for veterans than existing outpatient VA clinics can 
currently provide.
  Even better, Mr. Chairman, while this clinic is predicted to be open 
in the summer of 2007, appropriations willing, the generous resourceful 
people up in north central Florida have offered the VA use of a free 
space for an interim clinic. We have had the participation of local 
businesses to help out. So our ever increasing veterans population can 
see immediate relief for their long health care wait as early as this 
winter, and then the more comprehensive specialty clinic which the act 
authorizes in the long run.
  So I have great enthusiasm for what we are doing. I am also proud to 
be the author of the millennium health care bill for veterans' long-
term care, and I am pleased to help move this bill forward for 
outpatient care.
  Lastly, let me say to my colleagues, this Congress and this President 
have delivered real results for the veterans health care system. The 
total VA budget has increased almost 50 percent, 50 percent, in just 4 
years, and the budget for veterans medical care has increased 40 
percent in 4 years.
  So I say, a record number of veterans are receiving health care 
today, over 5 million, up 1.2 million from 4 years ago, and the number 
of veterans on medical waiting lists has dropped from over 300,000 in 
the year 2002 to just over 3,000 today.
  This is America. This is something we should be very proud of, and I 
think all the veterans should realize this. So all we need to do now to 
complete this great track record is continue the clinics and, of 
course, pass H.R. 4768.
  Mr. RODRIGUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I want to thank the chairman for the bill, but I just 
had some concerns with the dialogue on the House floor.
  We service about 4.7 million veterans in this country. There are 25 
million veterans out there, and our veterans are reaching that age 
where we really need to reach out to them. So we do have a long way to 
go. But I am real pleased to have this bill before us.
  Mr. Speaker, I would like for the record to show that the ranking 
member, the gentleman from Illinois (Mr. Evans) wanted to be here to 
comment on this important bill, in which he has played a very important 
role and strategic role, but at the present time he is at the Committee 
on Armed Services meeting on the 9/11 legislation that is there before 
him. He does, however, intend to make comments available for the 
record.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, it is a pleasure and delight to 
yield such time as he may consume to the gentleman from Connecticut 
(Mr. Simmons), the prime sponsor of this bill and the chairman of our 
Subcommittee on Health.
  Mr. SIMMONS. Mr. Speaker, I thank the gentleman for yielding me time. 
I also thank my colleague, the gentleman from Texas (Mr. Rodriguez), 
the ranking member of the Subcommittee on Health of the Committee on 
Veterans' Affairs, for all of the hard work he has done over the last 2 
years working with me in a bipartisan fashion to bring this and many 
other bills forward that benefit our veterans. Of course, our chairman, 
the gentleman from New Jersey (Chairman Smith) and ranking member, the 
gentleman from Illinois (Mr. Evans), have been stalwart advocates for 
our veterans, and I appreciate their leadership as well.
  Mr. Speaker, several years ago the Government Accounting Office 
revealed that the Veterans Administration was losing millions of 
dollars because of the upkeep of underutilized facilities, and the VA 
has been moving to realign their capital assets, their real properties, 
so that this expenditure of funds is no longer excessive.
  What this legislation tries to do is give the VA the appropriate 
tools to better manage their capital assets. This legislation would not 
only provide them with the funding authority to open 16 new outpatient 
clinics, it also provides a mechanism for the transfer of VA 
properties, to turn the proceeds from such transfers into additional 
revenues to support veterans health care.
  It allows the VA to retain proceeds from the sale or leasing or 
transfer of excess property, and then these proceeds go into the new 
capital asset fund where then the VA could reappropriate them to 
provide delivery of health care to our veterans.
  Furthermore, it would allow or require the VA to obtain fair market 
value for the transfer of any properties except those properties that 
might be transferred to providers of homeless services for our 
veterans.
  Thirdly, the legislation recognizes that some VA properties have 
tremendous historic value, such as the Fitzsimons Hospital out in 
Colorado, which has a room that was used for President Dwight 
Eisenhower as he recovered from his heart attack. We do not want to 
destroy those properties that have historic value or that have rooms or 
bays in them that housed famous personalities.
  So what we want to do, as we move the VA properties into the 21st 
century, we also want to preserve and protect numerous properties that 
have historic value, and this legislation allows the VA to adopt these 
historic properties to new uses.
  I know my colleague from Colorado is here and that he will be 
speaking about the Fitzsimons Hospital. So I will pass over that and 
simply say that this legislation, again, was designed to allow the VA 
to be more effective in how it manages its capital assets so that as we 
sell, lease or transfer these properties, the VA can recover those 
dollars and then reallocate them to provide services for our veterans.
  Mr. Speaker, I am proud to work with my colleagues across the aisle 
on this legislation.
  Mr. RODRIGUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, let me briefly just mention I am real pleased that in 
the piece of legislation, in 2002 we had passed the wordings for the 
emergency preparedness centers. One of the beauties of the VA is the 
fourth mission, and that is to respond to health care needs in case of 
emergencies, in case this country is ever hit, such as what happened on 
9/11. It is one of the few systems that we have nationwide to respond.
  We drafted legislation to establish four emergency preparedness 
centers, and I am real pleased the effort is there in this piece of 
legislation to try to make that happen and create that.
  This is definitely an area where we really need to beef up on. I am 
hoping that the appropriators look at this seriously. I know that the 
discussions in the past have been that this should be a homeland 
security issue. The bottom line is that homeland security does not have 
access to health care, VA does, and emergency preparedness centers 
could provide that care.
  So I think this is the appropriate area where we could respond 
through this legislation.
  Let me just add once again on the CARES process, the CARES process 
also came up with some real good data that I think we also need to be 
concerned about, and this legislation begins to address some of those, 
but there are still some gaps there, and that is where it showed the 
disparities throughout the country.
  Depending on where the veteran resides, depending on where he lives, 
determines basically the types of services that he gets or does not 
get, and that is one of the proposals and one of the recommendations 
that the CARES process has.
  But one of the negative things that I would like to mention is that 
in the

[[Page H7796]]

process of having this CARES and going throughout the country, I know 
the VA put out a letter asking the staff not to solicit, not to educate 
veterans about services. The letter even indicated that even where 
there were gaps and where utilization of facilities were not being 
utilized, not to bring in more additional veterans, to the point that 
the Vietnam Veterans of America got fed up with it and decided to file 
a lawsuit against the VA.
  So I was very pleased to see that, and we need to continue to move 
forward.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield such time as he may 
consume to the gentleman from Colorado (Mr. Beauprez), who was 
instrumental and really took the lead on this Fitzsimons Hospital. I 
congratulate him on his leadership.
  Mr. BEAUPREZ. Mr. Speaker, I thank the chairman of the committee for 
yielding me time. He is to be commended for his vigilance on behalf of 
all of our veterans, and the gentleman from Illinois (Mr. Evans) as 
well, our ranking member. I say to the subcommittee chairman, the 
gentleman from Connecticut (Mr. Simmons), it has been a pleasure to 
work with you on this legislation, as it has with the gentleman from 
Texas (Mr. Rodriguez) on behalf of all of our veterans, and, I might 
add, on behalf of our taxpayers, because I think we are being good 
stewards of the taxpayers' money. I think that is a point worth making.
  I know with the Fitzsimons project out in Colorado, which has already 
been mentioned, thank you very much, that I am going to talk about some 
more, I was convinced early on by the planners of this project that the 
operational savings of this new facility will more than pay for it as 
compared to maintaining and upgrading the aged 50-year-old facility we 
now have. So that makes sense, and we are delivering to our veterans 
health care in a network of facilities, especially the outpatient 
clinics, the way we deliver health care now in this 21st century. So it 
does make sense.
  A word about Fitzsimons, if I might. Another word about Fitzsimons, 
if I might. We are so excited about this project, for many reasons. It 
will continue a 50-year-plus partnership with the University of 
Colorado Health Science Center and the VA. The University of Colorado 
maintains a teaching research hospital that now in the new Fitzsimons 
campus, the renovated Fitzsimons campus, is going to be an enhanced, 
expanded, state-of-the-art facility.

                              {time}  1730

  It is an absolute true state-of-the-art facility that will attract 
the best and brightest in the medical industry from all over the world.
  Why is that key to our veterans? Because 90 percent of our VA docs 
have cross privileges, so we have the best talent right there 
available, yes, for our veterans. We are also going to be in 
partnership with the DOD. Buckley Air Force Base is right across the 
street. So we are going to have the most modern facility, a research 
teaching facility, the greatest staff from which to recruit and staff 
our hospital. We believe in this hospital creating a state-of-the-art, 
a new standard, elevating the standard for health care for all of our 
veterans.
  Mr. Speaker, I thank all of the committee members, and I thank 
Secretary Principi for supporting this as well. It is an opportunity to 
do the right thing for those among our population who very much deserve 
the very best: our veterans.
  Mr. ORTIZ. Mr. Speaker, this bill is good news for veterans around 
this great Nation, and it is particularly very good news for South 
Texas. It recognizes a fundamental truth: The population of veterans in 
the South Texas area is exploding and the services we currently offer 
simply are not enough to adequately serve veterans' needs in the 21st 
Century.
  Veterans across South Texas have joined me in talking to DVA in 
forums and conferences around our area--that one-on-one illustration of 
how veterans were being served had a large impact on the legislation we 
are considering today.
  I have hosted an annual South Texas Veterans' Fair for the last 
several years, bringing together South Texas veterans with concerns 
about the health services and the policy makers at DVA. Earlier this 
month was the most recent fair I hosted, in Corpus Christi. The most 
often-repeated concern, as always, was with how to address the lack of 
in-patient hospital services in South Texas.
  Nothing will ever be enough for our veterans--and change can never 
come fast enough, but this bill, with specific directions on in-patient 
hospital care and funding for the Secretary to lease medical 
facilities, is a considerably better place to be than we were before.
  Those who wear the uniform of the United States serve this Nation; it 
is our duty to serve them.
  Mr. VISCLOSKY. Mr. Speaker, I rise in strong support of H.R 4768, the 
Veterans' Medical Facilities Management Act of 2004. I thank 
Congressman Simmons for introducing this important piece of legislation 
and the Veterans' Affairs Committee for giving it the immediate 
attention that it deserves. In keeping with our commitment to high-
quality veterans' medical care, this measure authorizes $850,000 in 
funds for the Adam Benjamin Jr. VA outpatient medical facility in Crown 
Point, Indiana.
  It is imperative that we support our Nation's veterans and ensure 
that their medical care is among our highest priorities. We owe a great 
debt of gratitude for those who have sacrificed on behalf of all 
Americans. That is why I strongly support this measure which provides 
for the consistent supply of quality health care to our veterans.
  I urge passage of H.R 4768, an essential step in keeping our 
commitment to maintaining a strong VA health care service network. I 
want to recognize the important efforts of all of those who work at the 
Crown Point VA outpatient clinic, taking up the noble daily effort of 
caring for our Nation's veterans. And I am proud to honor the veterans 
of Northwest Indiana who have served our country with courage and 
distinction. I ask that you and my other colleagues join me in thanking 
these brave men and women, as well as our other former and current 
members of the United States military, for their bravery and valor in 
the face of danger. These men and women risked their lives in order to 
protect the freedoms that we enjoy each day, and they deserve all of 
our honor and respect. I am proud to represent them in Indiana's First 
Congressional District.
  Mr. Speaker, I urge my colleagues to support this important 
legislation so that our brave veterans may continue to receive the 
health care they so deserve.
  Mr. EVANS. Mr. Speaker, I join my colleagues in support of the 
Veterans Health Programs and Facilities Enhancement Act of 2004.
  I'd like to thank both Congressman Rodriguez, ranking member of the 
Health Subcommittee, and Congressman Simmons, chairman of the Health 
Subcommittee, for their hard work in developing this bill.
  VA has requested many of the authorities in this bill, and the 
establishment of the Capital Asset Fund will help to renovate some of 
VA's underused facilities.
  The VA needs to meet construction priorities in order to maintain a 
health care system infrastructure that will be called on increasingly 
as our service personnel return from Iraq with physical and 
psychological disabilities.
  I also support the need to continue some pilot programs we authorized 
in the Millennium Health Care and Benefits Act of 1999.
  I certainly agree that veterans who have been program beneficiaries 
should be able to continue receiving services.
  Under this bill, VA's authority to care for veterans participating in 
long-term care pilots will be extended until December 2005.
  Mr. RODRIGUEZ. Mr. Speaker, I have no further requests for time, and 
I yield back the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, we likewise yield back the 
balance of our time, and ask for a ``yea'' vote.
  The SPEAKER pro tempore (Mr. Shimkus). The question is on the motion 
offered by the gentleman from New Jersey (Mr. Smith) that the House 
suspend the rules and pass the bill, H.R. 4768, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  The title was amended so as to read: ``A bill to authorize the 
Secretary of Veterans Affairs to enter into certain major medical 
facility leases, to authorize that Secretary to transfer real property 
subject to certain limitations, otherwise to improve management of 
medical facilities of the Department of Veterans Affairs, and for other 
purposes.''.
  A motion to reconsider was laid on the table.




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