[Congressional Record (Bound Edition), Volume 148 (2002), Part 10]
[House]
[Pages 13762-13767]
[From the U.S. Government Publishing Office, www.gpo.gov]




      VETERANS HEALTH CARE AND PROCUREMENT IMPROVEMENT ACT OF 2002

  Mr. MORAN of Kansas. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 3645) to amend title 38, United States Code, to 
provide for improved procurement practices by the Department of 
Veterans Affairs in procuring health-care items, as amended.
  The Clerk read as follows:

                               H.R. 3645

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Veterans 
     Health Care and Procurement Improvement Act of 2002''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. References to title 38, United States Code.
Sec. 3. Limitation on use of local contracts for Department of Veterans 
              Affairs procurement of health-care items.
Sec. 4. Enhancements to enhanced-use lease authority.
Sec. 5. Eligibility for Department of Veterans Affairs health care of 
              certain additional Filipino World War II veterans 
              residing in the United States.
Sec. 6. Outpatient dental care for all former prisoners of war.
Sec. 7. Improved accountability of research corporations established at 
              Department of Veterans Affairs medical centers.
Sec. 8. Department of Defense participation in Revolving Supply Fund 
              purchases.
Sec. 9. Name of Department of Veterans Affairs outpatient clinic, New 
              London, Connecticut.

     SEC. 2. 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.

     SEC. 3. LIMITATION ON USE OF LOCAL CONTRACTS FOR DEPARTMENT 
                   OF VETERANS AFFAIRS PROCUREMENT OF HEALTH-CARE 
                   ITEMS.

       (a) In General.--Section 8125 is amended to read as 
     follows:

     ``Sec. 8125. Procurement of health-care items

       ``(a) Except as provided in subsection (b), any procurement 
     of a health-care item by the Department shall be made through 
     the use of a Federal Supply Schedule contract, or a national 
     contract, that meets the requirements of subsection (d).
       ``(b)(1) Subsection (a) does not apply to a procurement of 
     a health-care item in any of the following cases:
       ``(A) A procurement that is necessary to meet a current or 
     near-term medical emergency at a medical center.
       ``(B) A procurement that is for a health-care item that is 
     not listed in the Federal Supply Schedule or as part of a 
     national contract and for which there is a valid clinical 
     need.
       ``(C) A procurement that is for a specialized health-care 
     item not listed in the Federal Supply Schedule or as part of 
     a national contract and that is to meet the special needs of 
     an individual patient who has one of the special needs 
     identified in section 1706(b) of this title and who has a 
     valid clinical need for the item.
       ``(D) A procurement that is part of an approved sharing 
     agreement between the Department of Defense and the 
     Department of Veterans Affairs with demonstrable cost-per-
     item savings for a health-care item listed on the Federal 
     Supply Schedule or a national contract.
       ``(E) A procurement that supports a prime contract or a 
     subcontract with a small business concern qualifying for a 
     procurement preference program under section 8 or 15 of the 
     Small Business Act (15 U.S.C. 637, 644).
       ``(2) A procurement may be made as authorized under 
     subparagraph (B) of paragraph (1) only if the procurement is 
     specifically authorized in advance in writing by the 
     Secretary. The authority of the Secretary under the preceding 
     sentence may only be delegated to the Deputy Secretary or to 
     an official of the Veterans Health Administration not below 
     the level of a Deputy Under Secretary (or equivalent) acting 
     jointly with a procurement executive of the Department not 
     below the level of an Associate Deputy Assistant Secretary.
       ``(c) In the case of an emergency procurement of a health-
     care item as authorized by subsection (b)(1)(A), the quantity 
     of the item procured may not exceed the quantity of that item 
     that is the reasonably foreseeable need for the item at the 
     medical center concerned until resupply can be achieved 
     through procurement actions other than emergency procurement.
       ``(d) A contract meets the requirements of this subsection 
     if the contract includes--
       ``(1) provisions referred to as `preaward and postaward 
     audit clauses'; and
       ``(2) a provision referred to as a `price reduction 
     clause'.
       ``(e)(1) The Secretary shall establish procedures to assure 
     compliance by each Department medical facility with the 
     provisions of this section and with applicable Federal and 
     Department procurement regulations.
       ``(2) The procedures established by the Secretary under 
     paragraph (1) shall be designed to maximize health-care item 
     variety and the use of the Federal Supply Schedule.
       ``(3) The Secretary shall establish and enforce procedures 
     limiting the standardization of items at the local, regional, 
     or national level to provide special patient populations (as 
     identified in section 1706(b) of this title) with the range 
     and types of health-care items required to meet their 
     clinical and quality-of-life needs.
       ``(4) The Advisory Committee on Prosthetics and Special-
     Disabilities Programs established under section 543 of this 
     title shall review the procedures established under paragraph 
     (3), including the implementation of those procedures, and 
     shall advise the Secretary when those procedures are not 
     effectively enforced by the Department.
       ``(f)(1) The Secretary shall establish annual goals for 
     Department medical centers for the purchase of health-care 
     items from Federal Supply Schedule and national contracts 
     meeting the requirements of subsection (d). Such goals shall 
     be designed to maximize the percentage of such purchases that 
     are made through such contracts.
       ``(2) The Secretary shall establish goals for the 
     Department for procurements from small business concerns 
     qualifying for a procurement preference program under section 
     8 or 15 of the Small Business Act (15 U.S.C. 637,

[[Page 13763]]

     644). Such goals shall be no less than the national goal for 
     each such procurement preference program under either of 
     those sections.
       ``(3) Achievement of the goals established under this 
     subsection shall be an element in the performance standards 
     for employees of the Department who have the authority and 
     responsibility for achieving those goals.
       ``(g) A provision of law that is inconsistent with any 
     provision of this section shall not apply, to the extent of 
     the inconsistency, to the procurement of a health-care item 
     for the Department.
       ``(h)(1) Not later than December 31 each year, the 
     Secretary shall submit to the Committees on Veterans' Affairs 
     of the Senate and House of Representatives a report on the 
     procurement of health-care items during the preceding fiscal 
     year. Each such report shall include, for the year covered by 
     the report, the following:
       ``(A) The total dollar amount of all items listed in 
     Federal Supply Classification (FSC) Group 65 or 66 and the 
     total dollar value of the exceptions to subsection (a) under 
     each of subparagraphs (A), (B), (C), (D), and (E) of 
     subsection (b)(1), shown by medical facility.
       ``(B) A detailed explanation for exceptions to subsection 
     (a), including--
       ``(i) the rationale for use of emergency procurement at 
     Department medical facilities;
       ``(ii) the rationale for approval of requests under 
     subsection (b)(1)(B) for procurement of items not listed on 
     the Federal Supply Schedule or on national contracts; and
       ``(iii) exceptions granted for special health-care needs of 
     veterans with disabilities described in section 1706(b) of 
     this title.
       ``(C) Analysis of sharing agreements between the Department 
     and the Department of Defense to indicate the basic written 
     sharing initiative and the division of financial 
     responsibility between the two Departments.
       ``(D) The stated goal under each procurement preference 
     program, together with an assessment of the performance of 
     the Department toward achievement of that goal, especially 
     with respect to the goal for contracting with businesses that 
     are owned by veterans with service-connected disabilities.
       ``(2) The Advisory Committee on Prosthetics and Special- 
     Disabilities Programs of the Department shall submit comments 
     on each report under paragraph (1) before the report is 
     submitted under that paragraph, and the Secretary shall 
     include those comments in the report as submitted.
       ``(i) For the purposes of this subsection:
       ``(1) The term `health-care item' includes any item other 
     than services listed in, or (as determined by the Secretary) 
     of the same nature as an item listed in, Federal Supply 
     Classification (FSC) Group 65 or 66.
       ``(2) The term `national contract' means a contract for 
     procurement of an item that is entered into by the National 
     Acquisition Center of the Department or another Department 
     procurement activity, as authorized by the Secretary, that is 
     available for use by all Department medical facilities.
       ``(3) The term `valid clinical need' means in the 
     professional judgment of an appropriate clinician. Such term 
     applies to health care items, prosthetic appliances, sensory 
     or mobility aids and supplies that are prescribed by a 
     physician for special patient populations such as veterans 
     with spinal cord dysfunction, blindness, amputations, and 
     other veterans included in section 1706(b) of this title.
       ``(4) The term `Federal Supply Schedule contract' means a 
     contract that is awarded and administered by the National 
     Acquisition Center of the Department under a delegation of 
     authority from the Administrator of the General Services 
     Administration.
       ``(5) The term `emergency procurement' means a procurement 
     necessary to meet an emergency need affecting the health or 
     safety of a person being furnished health-care services by 
     the Department.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on September 30, 2003, and shall apply to 
     procurements by the Secretary of Veterans Affairs after that 
     date.

     SEC. 4. ENHANCEMENTS TO ENHANCED-USE LEASE AUTHORITY.

       (a) Increased Flexibility Under Enhanced-Use Leases.--
     Section 8162(a)(2)(B) is amended--
       (1) by striking ``proposed by the Under Secretary for 
     Health'' and inserting ``proposed by one of the Under 
     Secretaries''; and
       (2) by striking ``to the provision of medical care and 
     services'' and inserting ``to the programs and activities of 
     the Department''.
       (b) Notification of Property To Be Leased.--Section 8163 is 
     amended--
       (1) in the first sentence of subsection (a)--
       (A) by striking ``designate a property to be leased under 
     an enhanced-use lease'' and inserting ``enter into an 
     enhanced-use lease with respect to certain property''; and
        (B) by striking ``before making the designation'' and 
     inserting ``before entering into the lease'';
       (2) in subsection (b), by striking ``of the proposed 
     designation'' and inserting ``to the congressional veterans' 
     affairs committees and to the public of the proposed lease''; 
     and
       (3) in subsection (c)--
       (A) in paragraph (1)--
       (i) by striking ``designate the property involved'' and 
     inserting ``enter into an enhanced-use lease of the property 
     involved''; and
       (ii) by striking ``to so designate the property'' and 
     inserting ``to enter into such lease'';
       (B) in paragraph (2), by striking ``90-day period'' and 
     inserting ``45-day period'';
       (C) in paragraph (3)--
       (i) by striking ``general description'' in subparagraph (D) 
     and inserting ``description of the provisions''; and
       (ii) by adding at the end the following new subparagraph:
       ``(G) A summary of a cost-benefit analysis of the proposed 
     lease.''; and
       (D) by striking paragraph (4).
       (c) Disposition of Leased Property.--Section 8164 is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``by requesting the Administrator of 
     General Services to dispose of the property pursuant to 
     subsection (b)'' in the first sentence; and
       (B) by striking the third sentence;
       (2) in subsection (b)--
       (A) by striking ``Secretary and the Administrator of 
     General Services jointly determine'' and inserting 
     ``Secretary determines''; and
       (B) by striking ``Secretary and the Administrator 
     consider'' and inserting ``Secretary considers''; and
       (3) in subsection (c), by striking ``90 days'' and 
     inserting ``45 days''.
       (d) Use of Proceeds.--Section 8165 is amended--
       (1) in subsection (a)--
       (A) by striking ``(1)'' after ``(a)'';
       (B) by inserting after ``of this title'' the following: ``, 
     except that any funds received by the Department under an 
     enhanced-use lease in support of the Veterans Benefits 
     Administration or the National Cemetery Administration and 
     remaining after any deduction from such funds under 
     subsection (b) shall be credited to applicable appropriations 
     of that Administration''; and
       (C) by striking paragraph (2);
       (2) in subsection (b), by adding at the end the following 
     new sentence: ``The Secretary may use the proceeds from any 
     enhanced-use lease to reimburse applicable appropriations of 
     the Department for any expenses incurred in the development 
     of additional enhanced-use leases.''; and
       (3) by striking subsection (c).
       (e) Clerical Amendments.--(1) The heading of section 8163 
     is amended to read as follows:

     ``Sec. 8163. Hearing and notice requirements regarding 
       proposed leases''.

       (2) The item relating to section 8163 in the table of 
     sections at the beginning of chapter 81 is amended to read as 
     follows:

``8163. Hearing and notice requirements regarding proposed leases.''.

     SEC. 5. ELIGIBILITY FOR DEPARTMENT OF VETERANS AFFAIRS HEALTH 
                   CARE OF CERTAIN ADDITIONAL FILIPINO WORLD WAR 
                   II VETERANS RESIDING IN THE UNITED STATES.

       (a) Eligibility for Health Care.--The text of section 1734 
     is amended to read as follows:
       ``(a) The Secretary shall furnish hospital and nursing home 
     care and medical services to any individual described in 
     subsection (b) in the same manner, and subject to the same 
     terms and conditions, as apply to the furnishing of such care 
     and services to individuals who are veterans as defined in 
     section 101(2) of this title. Any disability of an individual 
     described in subsection (b) that is a service-connected 
     disability for purposes of this subchapter (as provided for 
     under section 1735(2) of this title) shall be considered to 
     be a service-connected disability for purposes of furnishing 
     care and services under the preceding sentence.
       ``(b) Subsection (a) applies to any individual who is a 
     Commonwealth Army veteran or new Philippine Scout and who--
       ``(1) is residing in the United States; and
       ``(2) is a citizen of the United States or an alien 
     lawfully admitted to the United States for permanent 
     residence.''.
       (b) Limitation.--The amendment made by subsection (a) shall 
     take effect on the date on which the Secretary of Veterans 
     Affairs submits to the Committees on Veterans' Affairs of the 
     Senate and House of Representatives and publishes in the 
     Federal Register a certification that sufficient resources 
     are available for the fiscal year during which the 
     certification is submitted to carry out section 1734 of title 
     38, United States Code, as amended by such amendment, during 
     that fiscal year at those facilities of the Department of 
     Veterans Affairs where the majority of veterans described in 
     subsection (b) of such section will receive hospital and 
     nursing home care and medical services authorized by 
     subsection (a) of such section.

     SEC. 6. OUTPATIENT DENTAL CARE FOR ALL FORMER PRISONERS OF 
                   WAR.

       Section 1712(a)(1)(F) is amended by striking ``and who was 
     detained or interned for a period of not less than 90 days''.

     SEC. 7. IMPROVED ACCOUNTABILITY OF RESEARCH CORPORATIONS 
                   ESTABLISHED AT DEPARTMENT OF VETERANS AFFAIRS 
                   MEDICAL CENTERS.

       (a) Audits and Improved Annual Report.--Subsection (b) of 
     section 7366 is amended to read as follows:
       ``(b)(1) Not later than March 1 each year, each such 
     corporation shall submit to the

[[Page 13764]]

     Secretary a report concerning the preceding calendar year. 
     Each such annual report shall include the following:
       ``(A) A detailed statement of the corporation's operations, 
     activities, and accomplishments during the preceding calendar 
     year.
       ``(B) A description of each research project or activity 
     for which funds were provided by the corporation during that 
     year or for which funds were provided by the corporation 
     during a preceding year and that is ongoing during the year 
     covered by the report, including, for each such project or 
     activity, the title of the project or activity and a 
     description of the purpose of the project or activity.
       ``(C) A statement of the amount of funds controlled by the 
     corporation as of the first day, and as of the last day, of 
     the year covered by the report and a statement of the amount 
     of funds received, shown by source, during the year.
       ``(D) An itemized accounting of all disbursements made 
     during the year.
       ``(E) The most recent audit of the corporation under 
     paragraph (2).
       ``(F) Such other information as may be necessary to enable 
     the Secretary to prepare the annual report to congressional 
     committees required under section 7367 of this title.
       ``(2) A corporation with a balance of funds under its 
     control in excess of $300,000 at any time during a calendar 
     year shall obtain an audit of the corporation for that year. 
     Any other corporation shall obtain an independent audit of 
     the corporation at least once every three years. The report 
     on any such audit shall specifically state whether the 
     corporation audited made any payment, or provided any travel, 
     during the period covered by the audit to a member of the 
     board of directors of the corporation and, if so, the amount 
     and recipient of any such payment or travel.
       ``(3) Any audit under paragraph (2) shall be performed by 
     an independent auditor and shall be performed in accordance 
     with generally accepted Government auditing standards and in 
     accordance with Office of Management and Budget Circular A-
     133.
       ``(4) The Inspector General of the Department shall each 
     year review the most recent audit under paragraph (2) of not 
     less than 10 percent of the corporations described in the 
     first sentence of paragraph (2) and not less than 10 percent 
     of the corporations described in the second sentence of that 
     paragraph. As part of such review, the Inspector General 
     shall determine whether the audit was carried out in 
     accordance with generally accepted Government auditing 
     standards, as required by paragraph (3).''.
       (b) Annual Report of Secretary.--(1) Subchapter IV of 
     chapter 73 is amended--
       (A) by inserting after subsection (c) of section 7366 the 
     following:

     ``Sec. 7367. Annual report to congressional committees'';

       and
       (B) in the text immediately following the section heading 
     inserted by subparagraph (A)--
       (i) by striking ``(d)'' and inserting ``(a)'';
       (ii) by inserting after the first sentence the following 
     new sentence: ``Each such report shall be based on the annual 
     reports submitted by the corporations to the Secretary under 
     section 7366(b) of this title and shall be submitted not 
     later than May 1 of the year following the year covered by 
     such reports.''; and
       (iii) by striking ``The report shall'' and inserting the 
     following:
       ``(b) Each such report shall''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     7366 the following new item:

``7367. Annual report to congressional committees.''.

       (c) Extension of Authority To Establish Research 
     Corporations.--Section 7368 is amended by striking ``December 
     31, 2003'' and inserting ``December 31, 2006''.

     SEC. 8. DEPARTMENT OF DEFENSE PARTICIPATION IN REVOLVING 
                   SUPPLY FUND PURCHASES.

       (a) Enhancement of Department of Defense Participation.--
     Section 8121 is amended--
       (1) by redesignating subsection (b) and (c) as subsections 
     (d) and (e), respectively;
       (2) by designating the last sentence of subsection (a) as 
     subsection (c); and
       (3) by inserting after paragraph (3) of subsection (a) the 
     following new subsection:
       ``(b) The Secretary may authorize the Secretary of Defense 
     to make purchases through the fund in the same manner as 
     activities of the Department. When services, equipment, or 
     supplies are furnished to the Secretary of Defense through 
     the fund, the reimbursement required by paragraph (2) of 
     subsection (a) shall be made from appropriations made to the 
     Department of Defense, and when services or supplies are to 
     be furnished to the Department of Defense, the fund may be 
     credited, as provided in paragraph (3) of subsection (a), 
     with advances from appropriations available to the Department 
     of Defense.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply only with respect to funds appropriated for a 
     fiscal year after fiscal year 2002.

     SEC. 9. NAME OF DEPARTMENT OF VETERANS AFFAIRS OUTPATIENT 
                   CLINIC, NEW LONDON, CONNECTICUT.

       The Department of Veterans Affairs outpatient clinic 
     located in New London, Connecticut, shall after the date of 
     the enactment of this Act be known and designated as the 
     ``John J. McGuirk Department of Veterans Affairs Outpatient 
     Clinic''. Any reference to such outpatient clinic in any law, 
     regulation, map, document, record, or other paper of the 
     United States shall be considered to be a reference to the 
     John J. McGuirk Department of Veterans Affairs Outpatient 
     Clinic.
  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Kansas (Mr. Moran) and the gentleman from Mississippi (Mr. Shows) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Kansas (Mr. Moran).
  Mr. MORAN of Kansas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, H.R. 3645 was introduced by the gentleman from Illinois 
(Mr. Evans) earlier this year. I would like to take this time to 
commend the gentleman from Illinois as well as our chairman, the 
gentleman from New Jersey (Mr. Smith), and the gentleman from 
California (Mr. Filner), the ranking member of our Subcommittee on 
Health, which I am privileged to chair. In addition, I would like to 
thank the gentleman from Indiana (Mr. Buyer), chairman of the 
Subcommittee on Oversight and Investigations and the gentleman from 
Connecticut (Mr. Simmons) for their work on this bill.
  Introduced by the gentleman from Illinois (Mr. Evans), H.R. 3645 
represents an important reform to the manner in which the VA obtains 
medical supply items for VA health care, and it is a good-government 
measure. On June 26 of this year, the VA Subcommittee on Health held a 
legislative hearing to explore the merits of this bill. As a result of 
our hearing and subsequent meetings with veterans' organizations, 
changes were made to the bill to ensure that the VA may continue to 
obtain specialized health care items that severely disabled veterans 
require. These changes are addressed in section 3 of the bill.
  Also, Mr. Speaker, several other measures were incorporated into this 
legislation. To summarize, the VA Subcommittee on Health held a hearing 
on June 13 regarding access to VA health care to Filipino veterans of 
World War II who now reside in this country. These veterans fought 
alongside our troops in the Philippines and deserve access to VA health 
care. Section 5 of the amendment includes the health care-related 
provisions of H.R. 4904, a bill that the gentleman from California (Mr. 
Filner) introduced that would extend these services to our World War II 
allies who served in the Commonwealth Army of the Philippines. The VA 
Subcommittees on Health and Oversight and Investigations held a joint 
hearing on May 16 to address our concerns about activities of the 
research and education corporations that aid the VA in conducting 
outside funded research and provide certain health education funding 
for VA clinicians.
  As a result of issues arising at that hearing, the gentleman from 
Indiana (Mr. Buyer) introduced H.R. 5084, the contents of which are now 
included in section 7 of this bill.
  Mr. Speaker, the VA also requested the inclusion of three additional 
provisions, provisions to streamline the procedures for awarding 
enhanced-use leases of certain VA real properties, to expand dental 
care for all former prisoners of war, and to authorize the VA Secretary 
to permit the Department of Defense to use the VA supply fund to obtain 
medical supply items for DOD health care facilities. These provisions 
are part of this bill in sections 4, 6 and 8, respectively.
  Finally, the gentleman from Connecticut (Mr. Simmons) introduced a 
bill, H.R. 3418, to name the New London, Connecticut, VA clinic in 
honor of the late John McGuirk, a prominent World War II veteran from 
New London. The gentleman from Connecticut's bill, cosponsored by the 
entire Connecticut delegation, is in full compliance with our 
committee's policy for naming VA facilities and is included as an 
amendment to this legislation. Last week, our Subcommittee on Health 
met and marked up this bill and the full committee did so later in the 
week as well.

[[Page 13765]]

  Mr. Speaker, H.R. 3645 is a good bill. I urge its support.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SHOWS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am very pleased that H.R. 3645, as amended, is being 
considered by the House today. In addition to providing needed reforms 
to VA procurement, it also authorizes medical care for veterans and 
expedites the process for enhanced use lease of VA assets.
  I sincerely appreciate the cooperation of the gentleman from New 
Jersey (Mr. Smith) and the gentleman from Illinois (Mr. Evans) on this 
bill. I also want to thank the chairman and ranking member of the 
Subcommittee on Health, the gentleman from Kansas (Mr. Moran) and the 
gentleman from California (Mr. Filner), for their assistance and 
valuable contributions.
  H.R. 3645 was introduced to reform VA procurement for medical and 
surgical supplies. For too long, VA has not leveraged its enormous 
purchasing power to obtain the best possible prices. Unfortunately, VA 
has also failed to include price reduction provisions in procurement 
contracts and did not consistently conduct pre- and post-award audits.
  The procurement reform provisions in the Veterans Health Care 
Procurement Reform and Improvement Act of 2002 are about good 
government, obtaining the best prices for medical and surgical supplies 
used to provide VA medical care and saving taxpayer dollars. 
Additionally, I also recognize the persistence of the gentleman from 
California (Mr. Filner) to win health care benefits for certain 
Filipino veterans. I have long supported his efforts and am pleased 
that the health benefits he has advocated are included in the 
legislation before us today.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MORAN of Kansas. Mr. Speaker, I yield myself such time as I may 
consume.
  I thank the gentleman from Mississippi for his remarks and also agree 
with him about the importance of this legislation, particularly the 
good-government aspects that the gentleman from Illinois (Mr. Evans), 
our ranking member, has pursued by introduction of this bill, and also 
the Filipino veteran issue that the gentleman from California (Mr. 
Filner), the ranking member of the Subcommittee on Health, who is en 
route back to Washington today from California, his effort over many 
years to try to address the issues of the Filipino veterans.

                              {time}  1600

  And finally I thank the gentleman from Connecticut (Mr. Simmons) for 
his effort to recognize one of his outstanding World War II veterans 
from Connecticut. So this legislation really is a result of a 
bipartisan effort and a number of Members' special interests in issues 
that affect veterans not only in our country but especially in their 
own districts.
  Mr. CUNNINGHAM. Mr. Speaker, I rise in support of H.R. 3645 and thank 
you for the opportunity to speak about this bill. While this issue, as 
a matter of national honor, is one of the most important subjects that 
we will discuss this session, It does not capture the headlines and few 
Americans are even aware of it. Yet it requires no debate to determine 
the only honorable and right course of action.
  When we went to war in 1941, the people of the Philippines, then an 
American Commonwealth, went with us. Under Executive Order by President 
Roosevelt, the 4000,000 men of the Philippines military were called on 
to join our forces under General Douglas MacArthur. They faithfully 
fought with us throughout the war. They walked side by side with us 
during the Bataan Death March, dying at a rate exceeding that of the 
American troops., After the war, we passed legislation that denied 
these brave men status as US veterans, denying them access to veterans' 
benefits. I am proud to count myself among the many that fee this was 
wrong and not worthy of our Nation's honor.
  I believe that a promise made is a debt unpaid, and it is far past 
the proper time to correct this longstanding wrong. While passage of 
H.R. 3645 does not correct the entire problem it is a step in the right 
direction. This bill will take the step of extending VA benefits to the 
11,000 Filipino WWII veterans that are living in the United States. I 
hope we will eventually extend this benefit to the 34,000 veterans that 
chose to stay in the Philippines. With passage of this bill, we will be 
closer to this goal. Failure to take action is a stain on our national 
character. As Americans we can and must set a higher standard.
  Mr. GILMAN. Mr. Speaker, I rise today in strong support of H.R. 3645, 
the Veterans Health-Care Items Procurement Reform and Improvement Act 
of 2002. I urge my colleagues to lend their support to this measure.
  This legislation reforms the Department of Veterans Affairs (VA) 
programs and policies that procure certain health-care items used by 
the VA to care for veterans; address specialized accountability; and 
strengthens reporting for exceptions made to the reformed policies.
  The measure also streamlines the procedures that govern the VA's use 
of enhance-use lease authority and provide the VA additional 
flexibility to enhance use of VA properties in complementary 
activities. The largest VA facility near my congressional district, 
located in Montrose, NY, has been taking advantage of enhance-lease 
authority for several years. The primary goal of enhance leasing should 
be to promote tenants and projects that will complement existing VA 
medical services. The language in this portion of H.R. 3645 should help 
ensure that the needs of veterans come first with any future enhanced 
leasing that occurs at the Montrose Medical Center.
  I am especially pleased to note the provision that provides hospital 
and nursing home care and medical services to certain Filipino World 
War II veterans of the Philippines Commonwealth army and former 
Philippines ``New Scouts'' who now permanently reside in the United 
States. The inclusion of this section marks another milestone in our 
long-standing effort to extend overdue recognition and benefits to 
Filipino veterans of World War II. As a leader in the fight to restore 
these benefits over the past ten years, I am grateful my colleagues 
from California, congressmen Filner and Cunningham for their work 
within the Veterans Affairs Committee to see that this section was 
adopted.
  Finally, H.R. 3645 expands eligibility for outpatient dental care for 
all former prisoners for VA research and education corporations 
established at VA medical centers.
  Mr. Speaker, this is a good bill that provides numerous benefits to 
those who served their country in the Armed Forces. I urge my 
colleagues to support its passage.
  Mrs. MINK of Hawaii. Mr. Speaker, I rise in strong support of H.R. 
3645, the Veterans Health-Care Items Procurement Reform and Improvement 
Act of 2002.
  The bill includes provisions to expand health care benefits for World 
War II Filipino veterans residing in the U.S. The bill moves us one 
step closer to restoring the veterans' benefits taken away from 
Filipino soldiers who fought for the U.S. military during the Second 
World War.
  Before World War II, the Philippines had been a U.S. possession for 
42 years. Located off the coast of mainland Asia, Filipinos found 
themselves a short distance from the hostilities that would soon draw 
the whole world into a war to avenge the bombing of Pearl Harbor, and 
the atrocities in the European Theater.
  The U.S. asked the Philippines to help America fight the long and 
difficult battles to come. When President Roosevelt issued Military 
Order No. 1 on July 26, 1941, nearly 200,000 Filipinos responded. They 
responded without hesitation to defend their homeland and to answer the 
call for help.
  From 1941 to 1945, Filipino soldiers fought alongside American 
soldiers. They defended Bataan and Corregidor, which helped ensure 
General MacArthur's ultimate victory. Thousands of Filipino prisoners 
of war endured the infamous Bataan Death March, and many more died in 
prisons.
  When the Filipino soldiers with America in its struggle to defend 
freedom, the members of the Commonwealth Army expected to receive their 
benefits at the end of the war. When the Philippines was forced to form 
guerrilla forces during the Japanese occupation, these brave soldiers 
also expected to receive their benefits.
  After the war, the U.S. Congress established the New Philippine 
Scouts by enacting the Armed Forces Voluntary Recruitment Act (Public 
Law 79-190) in October 1945. From 1945 through 1946, the New Philippine 
Scouts helped defend the Philippines as the nation worked to rebuild 
itself.
  President Roosevelt promised that Filipino veterans would become U.S. 
citizens and thus have the same benefits given to all other U.S. 
veterans. In October 1945 General Omar Bradley, Administrator of the 
Veterans Administration, reaffirmed that they were to be treated like 
all other American veterans and would

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receive full benefits. But the U.S. Congress broke this promise to the 
Commonwealth Army and the recognized guerrilla forces by enacting the 
Rescission Act (Public Law 79-301). Congress broke the promise to New 
Philippine Scouts when it passed the Second Rescission Act (Public Law 
79-391).
  The Rescission Acts stated that the World War II service of Filipinos 
shall not be deemed to be service in the military or national forces of 
the U.S. or any component thereof. Exceptions only were given to those 
who died, were maimed, or were separated from active service due to 
physical disability.
  Since passing the Rescission Acts, the U.S. government has done 
little to recognize the service of World War II Filipino soldiers. In 
the 1948 (PL 80-865), 1963 (PL 88-40), 1973 (PL 93-82), and 1981 (97-
72), the U.S. Congress passed legislation to help the Philippine 
government provided limited medical care at special VA facilities in 
Manila.
  The equality movement has made significant strides during the last 12 
years. In 1990, Public Law 101-649 made certain Filipino veterans who 
served during World War II eligible for U.S. citizenship. Under this 
law, over twenty eight thousand veterans became naturalized citizens 
and seventeen thousand moved to U.S.
  In 1999 Congress passed Public Law 106-169. It expanded U.S. income-
based Social Security disability benefits to certain World War II 
veterans, including Filipino veterans of World War II who served in the 
organized military forces of the Philippines.
  The following year, Congress passed two laws for Filipino veterans. 
Public Law 106-377 allowed Commonwealth Army Veterans and veterans of 
the recognized guerrilla forces to receive disability compensation at 
the full statutory rate and visit VA medical facilities for those 
disabilities, if they are permanent legal residents.
  Public Law 106-419 provided full burial benefits for Commonwealth 
Army Veterans and veterans of the recognized guerrilla force if they 
are permanent residents of the U.S. and met certain other entitling 
conditions.
  Even after passing multiple bills to correct the injustice of the 
Rescission Acts, there is still much work to do to help Filipino 
veterans legally residing in the U.S. New Philippine Scouts are denied 
most non-health care benefits and all health care benefits for non-
service connected injuries. The surviving spouses of veterans from the 
Commonwealth Army and the guerrilla forces do not receive full 
dependency and indemnity compensation rates.
  I sponsored H.R. 594 in the 107th Congress to amend the Social 
Security Act and allow World War II Filipino veterans to obtain health 
care benefits through Medicare. Under my bill, qualified World War II 
Filipino veterans living in the U.S. would be entitled to Medicare Part 
A benefits and the option to enroll in Part B. With the current 
veterans' health care system (TRICARE) using Medicare as a primary 
insurer, my bill would have provided a ready basis for providing full 
health care benefits to all surviving World War II Filipino veterans 
living in the U.S.
  Congressman Filner introduced H.R. 4904 on June 11, 2002. I am an 
original cosponsor of this bill. H.R. 4904 will provide VA medical care 
to World War II Filipino veterans who live in the U.S. and are U.S. 
citizens or legal permanent residents. It will provide the full 
dependency and indemnity compensation (DIC) rates to surviving spouses 
of Filipino veterans, and the bill includes benefits for New Philippine 
Scouts.
  During a hearing before House Veterans' Affairs Subcommittee on 
Benefits, Veterans Administration Secretary Anthony Principi stated his 
support for H.R. 4909 and agreed to act on its provisions as soon as it 
is signed by the President.
  The key provisions of H.R. 4904 have been incorporated into H.R. 
3645, the bill that is before us today. H.R. 3645 provides hospital, 
nursing home, and medical services to certain Filipino World War II 
veterans of the Philippines Commonwealth Army and former Philippines 
New Scouts who now permanently reside in the U.S.
  I am disappointed that the bill does not include the more 
comprehensive language offered by Congressman Filner in committee. His 
amendment would have raised the unfair compensation rate of New Scouts 
who live in the U.S. New Filipino Scouts receive half the normal rate 
because they originally lived in the Philippines. This must change 
because many New Scouts moved to U.S. after Congress passed Public Law 
106-419. I look forward to working with my colleagues to address this 
injustice in future legislation.
  I urge my colleagues to vote for H.R. 3645 so we can get this bill to 
the President's desk before the end of the year. Fewer than 14,000 
Filipino veterans live in the U.S. and that number is rapidly falling. 
Every day will lose more and more of these brave veterans. The Veterans 
Administration estimates that the Filipino population will decrease by 
one-third by 2010.
  For more than fifty years Filipino veterans have been denied the 
veterans' benefits they earned during World War II. Now is the time to 
fulfill our obligation to these brave veterans. They are entitled to VA 
health care benefits the same as any other veteran.
  Mr. SIMMONS. Mr. Speaker, I rise today in support of H.R. 3645, the 
``Veterans Health-Care Items Procurement Reform and Improvement Act of 
2002.'' I would also like to take a moment and praise the hard work of 
the Veterans' Affairs Committee and staff for their endless support of 
veterans throughout the years.
  Included in this bill is legislation (H.R. 3418) I introduced earlier 
this year to name the U.S. Department of Veterans Affairs Community 
Based Outreach Clinic (CBOC), located on the grounds of the United 
States Coast Guard Academy in New London, CT, the ``John J. McGuirk 
Department of Veterans Affairs Outpatient Clinic.''
  John J. McGuirk was a devoted patriot, a dedicated sailor and a great 
American. Working his way across the South Pacific as an enlisted 
salvage diver in the United States Navy during World War II, John 
McGuirk began his life long commitment to his nation and fellow 
veterans.
  Following his honorable discharge from the Navy, he served veterans 
across Connecticut. Whether it was finding a pair of crutches, gaining 
access for disabled veterans to vote or working with the VA Healthcare 
system to expand availability--John gave it his all.
  John saw first hand the extensive hardships placed on veterans as 
they traveled from all over the state to West Haven, CT to see VA 
physicians. John felt that veterans should not travel such distances to 
get proper treatment and worked tirelessly to open a VA clinic in 
Southeastern Connecticut. The VA opened a Veterans Outreach Clinic in 
New London with the willing help of the Coast Guard Academy, enabling 
veterans access to heathcare services.
  On behalf of the Members of the Connecticut delegation, Disabled 
Veterans of America, Paralyzed Veterans of America, American Legion, 
Veterans of Foreign wars, AMVETS and the United States Coast Guard 
Academy, I ask that all Members of Congress support this bill and honor 
the memory of John J. McGuirk.
  Mr. EVANS. Mr. Speaker, H.R. 3645, the Veterans Health Care and 
Procurement Improvement Act of 2002, as reported, deserves the support 
of every Member of this House. When enacted, H.R. 3645 will improve the 
delivery of important benefits to veterans, expedite the process 
associated with enhanced use of VA assets and improve the cost-
effectiveness of VA procurement of medical and surgical items resulting 
in wiser and more effective use of taxpayer dollars to provide medical 
care to our Nation's veterans. Other key provisions of this bill add or 
strengthen benefits for certain Filipino veterans or for U.S. former 
prisoners of war.
  As the author of H.R. 3645, I appreciate and recognize the 
cooperation and assistance provided by the Chairman of our Committee, 
Chris Smith, in guiding H.R. 3645 through Committee consideration. I am 
also grateful to the Chairman and Ranking Member of our Health 
Subcommittee, Jerry Moran and Bob Filner, for their conscientious 
efforts to improve H.R. 3645. Their contributions are both welcome and 
appreciated. I also appreciate the work and contributions of other 
Members and staff from both sides of the aisle.
  Last year, VA reportedly spent approximately $1.5 billion on medical 
supplies and prosthetics. The Department of Veterans Affairs (VA) 
Office of Inspector General has repeatedly documented inefficient and 
wasteful procurement of medical supplies and prosthetics by VA. 
Sporadic and uncoordinated purchasing practices do not allow VA to 
leverage its significant purchasing power to obtain the best prices for 
the government. The result is chronic over spending for items VA could 
buy at lower costs; diminished accountability for items purchased 
locally; and limited availability of cost effective health-care items.
  The procurement reforms in H.R. 3645 will unquestionably result in 
procurement cost savings for VA when fully implemented. The 
Congressional Budget Office agrees this provision will save scarce VA 
and taxpayer dollars.
  Last May, VA's Office of the Inspector General (VA IG) published an 
evaluation of VA purchasing practices that found a pressing need for 
reform. That evaluation identified numerous deficiencies in current 
purchasing practices and linked the cause of deficiencies to an earlier 
decision not to require health-care item purchases from the cost-
effective Federal Supply Schedule (FSS). By eliminating the mandate for 
FSS procurements, VA

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decentralized the contracting and procurement process. This provided a 
financial incentive for many vendors of health-care items to remove 
their products from the FSS and to seek product sales in generally more 
profitable local markets.
  The VA IG found that local-market purchases had proliferated, often 
under contracts without the advantage of audit requirements or most-
favored customer pricing for the government. Some much ballyhooed 
success in local purchases of health-care items were overshadowed by 
many other, less efficient, local contracts.
  In June 2001, Secretary Principi created an internal task force to 
evaluate the procurement system and recommend improvements. Earlier 
this year, in May 2002, VA issued the Procurement Reform Task Force 
Report. The report recognized the need for a hierarchical approach to 
purchasing by using supply schedules or blanket purchase agreements to 
procure most of its medical supplies. The approach would share some of 
the characteristics from the oft-praised approach VA takes to 
purchasing pharmaceuticals. The approach used for the National Drug 
Formulary ensures that VA closely assesses all the medications within a 
drug class and makes educated purchases for its facilities based on 
both the price and the quality of each pharmaceutical in that class. 
The savings from the National Drug Formulary approach is now estimated 
at over $200 million annually.
  While VA supports the goal of procurement reform, it wants to use its 
own unidentified means to ensure that it makes better use of its 
purchasing power. My concern is that VA will slow walk its own effort 
through by allowing the vital savings that would accrue to its 
financially ailing health care system to slip through its fingers. Mr. 
Speaker, I believe the time for enacting needed VA procurement reform 
legislation is now.
  As I noted before, H.R. 3645 contains numerous provisions. One of 
these provisions authorizes health care benefits to Filipino veterans. 
While this provision has long-standing bipartisan support, it has been 
championed by one Member, Bob Filner. At Bob's request, as then 
Chairman of the Oversight and Investigations Subcommittee, I conducted 
a hearing near San Diego on the importance of providing Filipino 
veterans health care services. I commend the dogged determination of 
the Ranking Member of the Health Subcommittee, Bob Filner, for his work 
in attempting to win health and benefits parity for certain Filipino 
veterans. I have long supported his efforts and am pleased the health 
benefits are included in the legislation.
  Mr. Speaker, again, I thank Chairman Smith and the Chairman and 
Ranking Member of the Health Subcommittee for a true collaboration on 
the measure before us today. This measure reflects the best of the 
bipartian tradition of the House Committee on Veteran' Affairs. I urge 
all Members to support H.R. 3645, as amended.
  Mr. MORAN of Kansas. Mr. Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Kansas (Mr. Moran) that the House suspend the rules and 
pass the bill, H.R. 3645, 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.
  A motion to reconsider was laid on the table.

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