[Congressional Record (Bound Edition), Volume 159 (2013), Part 13]
[House]
[Pages 18344-18347]
[From the U.S. Government Publishing Office, www.gpo.gov]




      DEPARTMENT OF VETERANS AFFAIRS MAJOR MEDICAL FACILITY LEASE 
                       AUTHORIZATION ACT OF 2013

  Mr. MILLER of Florida. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 3521) to authorize Department of Veterans Affairs 
major medical facility leases, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3521

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Department of Veterans 
     Affairs Major Medical Facility Lease Authorization Act of 
     2013''.

     SEC. 2. AUTHORIZATION OF MAJOR MEDICAL FACILITY LEASES.

       The Secretary of Veterans Affairs may carry out the 
     following major medical facility leases at the locations 
     specified, and in an amount for each lease not to exceed the 
     amount shown for such location (not including any estimated 
     cancellation costs):
       (1) For a clinical research and pharmacy coordinating 
     center, Albuquerque, New Mexico, an amount not to exceed 
     $9,560,000.
       (2) For a community-based outpatient clinic, Brick, New 
     Jersey, an amount not to exceed $7,280,000.
       (3) For a new primary care and dental clinic annex, 
     Charleston, South Carolina, an amount not to exceed 
     $7,070,250.
       (4) For the Cobb County community-based Outpatient Clinic, 
     Cobb County, Georgia, an amount not to exceed $6,409,000.
       (5) For the Leeward Outpatient Healthcare Access Center, 
     Honolulu, Hawaii, including a co-located clinic with the 
     Department of Defense and the co-location of the Honolulu 
     Regional Office of the Veterans Benefits Administration and 
     the Kapolei Vet Center of the Department of Veterans Affairs, 
     an amount not to exceed $15,887,370.
       (6) For a community-based outpatient clinic, Johnson 
     County, Kansas, an amount not to exceed $2,263,000.
       (7) For a replacement community-based outpatient clinic, 
     Lafayette, Louisiana, an amount not to exceed $2,996,000.
       (8) For a community-based outpatient clinic, Lake Charles, 
     Louisiana, an amount not to exceed $2,626,000.
       (9) For outpatient clinic consolidation, New Port Richey, 
     Florida, an amount not to exceed $11,927,000.
       (10) For an outpatient clinic, Ponce, Puerto Rico, an 
     amount not to exceed $11,535,000.
       (11) For lease consolidation, San Antonio, Texas, an amount 
     not to exceed $19,426,000.
       (12) For a community-based outpatient clinic, San Diego, 
     California, an amount not to exceed $11,946,100.
       (13) For an outpatient clinic, Tyler, Texas, an amount not 
     to exceed $4,327,000.
       (14) For the Errera Community Care Center, West Haven, 
     Connecticut, an amount not to exceed $4,883,000.
       (15) For the Worcester community-based Outpatient Clinic, 
     Worcester, Massachusetts, an amount not to exceed $4,855,000.
       (16) For the expansion of a community-based outpatient 
     clinic, Cape Girardeau, Missouri, an amount not to exceed 
     $4,232,060.
       (17) For a multispecialty clinic, Chattanooga, Tennessee, 
     an amount not to exceed $7,069,000.
       (18) For the expansion of a community-based outpatient 
     clinic, Chico, California, an amount not to exceed 
     $4,534,000.
       (19) For a community-based outpatient clinic, Chula Vista, 
     California, an amount not to exceed $3,714,000.
       (20) For a new research lease, Hines, Illinois, an amount 
     not to exceed $22,032,000.
       (21) For a replacement research lease, Houston, Texas, an 
     amount not to exceed $6,142,000.
       (22) For a community-based outpatient clinic, Lincoln, 
     Nebraska, an amount not to exceed $7,178,400.
       (23) For a community-based outpatient clinic, Lubbock, 
     Texas, an amount not to exceed $8,554,000.
       (24) For a community-based outpatient clinic consolidation, 
     Myrtle Beach, South Carolina, an amount not to exceed 
     $8,022,000.
       (25) For a community-based outpatient clinic, Phoenix, 
     Arizona, an amount not to exceed $20,757,000.
       (26) For the expansion of a community-based outpatient 
     clinic, Redding, California, an amount not to exceed 
     $8,154,000.
       (27) For the expansion of a community-based outpatient 
     clinic, Tulsa, Oklahoma, an amount not to exceed $13,269,200.

[[Page 18345]]



     SEC. 3. BUDGETARY TREATMENT OF DEPARTMENT OF VETERANS AFFAIRS 
                   MAJOR MEDICAL FACILITIES LEASES.

       (a) Findings.--Congress finds the following:
       (1) Title 31, United States Code, requires the Department 
     of Veterans Affairs to record the full cost of its 
     contractual obligation against funds available at the time a 
     contract is executed.
       (2) Office of Management and Budget Circular A-11 provides 
     guidance to agencies in meeting the statutory requirements 
     under title 31, United States Code, with respect to leases.
       (3) For operating leases, Office of Management and Budget 
     Circular A-11 requires the Department of Veterans Affairs to 
     record up-front budget authority in an ``amount equal to 
     total payments under the full term of the lease or [an] 
     amount sufficient to cover first year lease payments plus 
     cancellation costs''.
       (b) Requirement for Obligation of Full Cost.--Subject to 
     the availability of appropriations provided in advance, in 
     exercising the authority of the Secretary of Veterans Affairs 
     to enter into leases provided in this Act, the Secretary 
     shall record, pursuant to section 1501 of title 31, United 
     States Code, as the full cost of the contractual obligation 
     at the time a contract is executed either--
       (1) an amount equal to total payments under the full term 
     of the lease; or
       (2) if the lease specifies payments to be made in the event 
     the lease is terminated before its full term, an amount 
     sufficient to cover the first year lease payments plus the 
     specified cancellation costs.
       (c) Transparency.--
       (1) Compliance.--Subsection (b) of section 8104 of title 
     38, United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(7) In the case of a prospectus proposing funding for a 
     major medical facility lease, a detailed analysis of how the 
     lease is expected to comply with Office of Management and 
     Budget Circular A-11 and section 1341 of title 31 (commonly 
     referred to as the `Anti-Deficiency Act'). Any such analysis 
     shall include--
       ``(A) an analysis of the classification of the lease as a 
     `lease-purchase', `capital lease', or `operating lease' as 
     those terms are defined in Office of Management and Budget 
     Circular A-11;
       ``(B) an analysis of the obligation of budgetary resources 
     associated with the lease; and
       ``(C) an analysis of the methodology used in determining 
     the asset cost, fair market value, and cancellation costs of 
     the lease.''.
       (2) Submittal to congress.--Such section 8104 is further 
     amended by adding at the end the following new subsection:
       ``(h)(1) Not less than 30 days before entering into a major 
     medical facility lease, the Secretary shall submit to the 
     Committees on Veterans' Affairs of the Senate and the House 
     of Representatives--
       ``(A) notice of the Secretary's intention to enter into the 
     lease;
       ``(B) a copy of the proposed lease;
       ``(C) a description and analysis of any differences between 
     the prospectus submitted pursuant to subsection (b) and the 
     proposed lease; and
       ``(D) a scoring analysis demonstrating that the proposed 
     lease fully complies with Office of Management and Budget 
     Circular A-11.
       ``(2) Each committee described in paragraph (1) shall 
     ensure that any information submitted to the committee under 
     such paragraph is treated by the committee with the same 
     level of confidentiality as is required by law of the 
     Secretary and subject to the same statutory penalties for 
     unauthorized disclosure or use as the Secretary.
       ``(3) Not more than 30 days after entering into a major 
     medical facility lease, the Secretary shall submit to each 
     committee described in paragraph (1) a report on any material 
     differences between the lease that was entered into and the 
     proposed lease described under such paragraph, including how 
     the lease that was entered into changes the previously 
     submitted scoring analysis described in subparagraph (D) of 
     such paragraph.''.
       (d) Rule of Construction.--Nothing in this section, or the 
     amendments made by this section, shall be construed to in any 
     way relieve the Department of Veterans Affairs from any 
     statutory or regulatory obligations or requirements existing 
     prior to the enactment of this section and such amendments.

     SEC. 4. BUDGETARY EFFECTS OF THIS ACT.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Committee on the Budget of the House of 
     Representatives, as long as such statement has been submitted 
     prior to the vote on passage of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida (Mr. Miller) and the gentleman from Maine (Mr. Michaud) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Florida.


                             General Leave

  Mr. MILLER of Florida. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days in which to revise and extend their 
remarks on H.R. 3521, as amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  Mr. MILLER of Florida. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, H.R. 3521, the Department of Veterans Affairs Major 
Medical Facility Lease Authorization Act of 2013, as amended, would 
authorize 27 major medical facility leases requested by VA in the 
fiscal year 2013 and 2014 budget submissions.
  It would also make a number of congressional findings and establish 
certain requirements for the budgetary treatment of such leases to 
ensure that the legislation itself meets both the spirit and the intent 
of the House CutGo rule.
  As we all know, when the committee was considering legislation to 
authorize VA's major medical facility leases last year, the 
Congressional Budget Office raised concerns about how to properly 
account for VA's lease authorizations.
  In response to CBO concerns, section 3 of the bill would require VA 
to record an obligation at the time a contract is signed in an amount 
equal to either the total payment that would be made under its full 
term or an amount equal to the sum of the first annual lease payment 
and any specified cancelation costs.
  For the last year, I have remained committed to working closely with 
VA, CBO, and our colleagues from both sides of the aisle and both sides 
of the Capitol to find a way forward for VA's major medical facility 
lease program on behalf of the veterans of this country, especially 
those in the 27 communities that will be impacted by the leases 
included in this piece of legislation.
  To that end, I am grateful for the hard work and the leadership of 
our ranking member, Mike Michaud of Maine, and the other committee 
members in advancing this piece of legislation to the floor.
  At this time, I urge all my colleagues to join me in supporting H.R. 
3521, as amended, and I reserve the balance of my time.
  Mr. MICHAUD. Mr. Speaker, I yield myself such time as I may consume.
  I rise in support of H.R. 3521, the Department of Veterans Affairs 
Major Medical Facility Lease Authorization Act of 2013.
  Mr. Speaker, this bill would authorize a number of major medical 
facility leases that will ensure veterans continue to receive care in 
safe, efficient, and modern clinics closer to home.
  Last year, much to our disappointment, we were unable to pass a lease 
authorization bill. As a result, H.R. 3521 contains lease requests for 
fiscal years 2013 and 2014. Twenty-seven leases are included in this 
bill. From New Jersey to Hawaii, veterans can expect long awaited 
expansions to cramped community-based outpatient clinics, new clinical 
research space, and sorely needed replacement facilities.
  This bill is a bipartisan bill and in the best interest of America's 
veterans. I appreciate the efforts of my colleagues across the aisle, 
especially Chairman Miller, for the collaborative effort that permitted 
this important legislation to move forward.
  Mr. Speaker, I know you will agree with me that it is our obligation 
to ensure that our veterans are provided the best care possible in a 
timely and safe manner. I believe H.R. 3521, as amended, will do just 
that.
  I reserve the balance of my time.
  Mr. MILLER of Florida. Mr. Speaker, at this time, I yield 2 minutes 
to the gentleman from Florida (Mr. Bilirakis), vice chairman of the 
full Committee on Veterans' Affairs, somebody who has been a very 
strong supporter of veterans issue since the day he became a Member of 
this Congress.
  Mr. BILIRAKIS. Mr. Speaker, I rise in support of H.R. 3521, and I 
urge all

[[Page 18346]]

my colleagues to support this important piece of legislation that will 
allow the VA to move forward with these 27 leases in order to better 
serve the veterans, our true American heroes, across the country.
  The veterans in and around the Tampa Bay area will be particularly 
served by this legislation. The VA recently approved a plan that would 
take the currently strained five existing clinics that are spread out 
over a large area and consolidate them into a convenient one-stop 
facility. This would allow the VA to better meet the growing needs of 
the veterans community with diverse health status. However, because of 
the technical issues we are solving today, this project had not been 
able to move forward.
  By passing this bill, the House will allow for not only the 
consolidation of our five medical clinics in my congressional district 
into one property, but for 26 other equally important projects to move 
forward across the country improving access for our heroes. This would 
not have been done, Mr. Speaker, without our great chairman here, Mr. 
Miller, and our ranking member, Mr. Michaud, so thank you so very much. 
I know that our true American heroes, our veterans, appreciate it very 
much.
  I urge passage of this bill.

                              {time}  1415

  Mr. MICHAUD. Mr. Speaker, I reserve the balance of my time.
  Mr. MILLER of Florida. Mr. Speaker, I yield 2 minutes to the 
gentleman from Louisiana (Mr. Boustany), who has been an advocate for 
this issue for quite some time and who has two of these facilities in 
his district.
  Mr. BOUSTANY. I thank the chairman for yielding me this time.
  Mr. Speaker, I rise in support of H.R. 3521. I want to applaud 
Chairman Jeff Miller and the chairman of the Budget Committee, Paul 
Ryan, and their respective staffs on the House Veterans' Affairs 
Committee and the Budget Committee for advancing this important bill 
and improving veterans' access to medical care.
  I also appreciate the work that the two Senators from my home State, 
Senators Landrieu and Vitter, have been doing. They have pledged their 
support in the Senate, and we hope to get this done before the end of 
the year.
  This last year, more than 66 Members of Congress signed our 
bipartisan, bicameral letter calling for progress on the 27 major 
medical facility leases proposed by the Department of Veterans Affairs 
during the past 2 years.
  Among these leases are two clinics promised by VA Secretary Eric 
Shinseki to Lake Charles and Lafayette in my congressional district. 
Without congressional authorization of these clinics, more than 3,000 
south Louisiana veterans must travel in excess of 3 hours to receive 
medical care. A recent CBS Evening News story featured one of these 
wounded warriors in south Louisiana who goes without care because his 
family must miss work to drive him 3 hours. It is unacceptable.
  The American people expect Congress to demonstrate that it can govern 
effectively in a bipartisan manner, and this is one way we can do it, 
by keeping our promise to our veterans.
  The passage of this bill will improve medical access for more than 
340,000 veterans in 22 States, and that's why I urge our House and 
Senate colleagues to send this bill to the President before the end of 
year.
  Again, I thank the committee and Chairman Miller for his fine work on 
this and for giving me the opportunity to speak.
  Mr. MICHAUD. Mr. Speaker, once again I would urge my colleagues to 
support H.R. 3521, as amended.
  I yield back the balance of my time.
  Mr. MILLER of Florida. Mr. Speaker, once again I encourage all 
Members to support this legislation.
  I yield back the balance of my time.
  Mr. RYAN of Wisconsin. Mr. Speaker, today, the House will consider 
H.R. 3521, the Department of Veterans Affairs Major Medical Facility 
Lease Authorization Act of 2013, as Amended. H.R. 3521 authorizes the 
Secretary of Veterans Affairs to carry out major medical facility 
leases at twenty-seven facilities requested by the Department of 
Veterans Affairs in their fiscal year 2013 and 2014 budget requests.
  Since 1990, CBO has scored VA's major medical facility leases as 
operating leases and estimated the costs as being subject to 
appropriation (discretionary). In 2012, after receiving additional 
information from the Department of Veterans Affairs, CBO concluded that 
VA has been entering into capital leases, or binding obligations for 
the full period of the lease. In accordance with OMB Circular A-11 and 
the Anti-Deficiency Act, VA is required to obligate the budget 
authority upfront for the full amount of these obligations. This 
includes budgeting for both the estimated total payments expected to 
arise under the full term of the contract or, if the contract includes 
a cancellation clause, an amount sufficient to cover the lease payments 
for the first year plus an amount sufficient to cover the costs 
associated with termination of the contract. Up until this point, VA 
has not been properly budgeting for its leases according to the law.
  CBO estimates that enacting this bill would provide contract 
authority of about $1.4 billion over the ten-year period.
  HBC has worked closely with both HVAC and CBO on this issue and has 
produced lease authorization language, in addition to report language, 
that we believe adequately addresses the legitimate issues CBO raised 
with respect to how VA was budgeting for leases.
  HBC believes this language forces VA to comply with budgeting laws, 
specifically that VA may only enter into binding commitments on behalf 
of the U.S. Government once funds have been appropriated for the 
purpose of that proposed commitment and that VA must then obligate the 
full cost of that commitment at the time it executes the lease. In 
addition, the language requires VA to submit to Congress a detailed 
analysis on how its leasing practices comply with these laws.
  If the VA fails to faithfully execute the requirements in the bill 
and to comply with the longstanding laws governing obligations, we will 
revisit this issue in the context of future requests for leasing 
authority.
  With these fiscal protections in place, I fully support H.R. 3521 
moving forward to ensure continued access for our veterans to the 
highest quality medical care.
  Mr. GINGREY of Georgia. Mr. Speaker, I rise today in support of H.R. 
3521, the Department of Veterans Affairs Major Medical Facility Lease 
Authorization Act, introduced by my good friend and Chairman of the 
Veterans Affairs Committee, Mr. Miller. This legislation authorizes the 
Secretary of Veterans Affairs to carry out major medical facility 
leases at twenty seven facilities--including a facility in Cobb County, 
Georgia--that were requested by the Department of Veterans Affairs in 
their 2013 and 2014 budget submissions.
  A change in Congressional Budget Office (CBO) accounting methods made 
the reauthorization of these leases very difficult, but this important 
legislation will allow authorization while increasing transparency.
  This legislation, however, is about so much more than leases and 
definitional changes. This legislation is about ensuring the care of 
our veterans, and paying them the debt of gratitude we owe them.
  The VA facility in Cobb County served 6,634 unique patients 
outpatients in Fiscal Year 2013, providing services in outpatient 
treatment, mental health, and lab work. These services are critical, 
provide convenience, and reduce driving time for veterans, many of whom 
would otherwise be forced to travel 70 miles or more round-trip to 
visit the overcrowded Atlanta VA Medical Center. With passage of the 
legislation before us today, the VA could authorize a lease for an 
expanded facility in Cobb County, one that would serve an estimated 
64,000 veterans and provide more access to a greater variety of care. 
While mental health services, lab work, and outpatient treatment would 
still be provided, the expanded facility is intended to have the 
capability to provide eye care, physical and occupational therapy, 
radiology, and more.
  Mr. Speaker, this legislation is a way forward for that facility and 
several more like it across the country. It seeks to expand access to 
care for veterans, not bureaucratic federal policies.
  Our men and women in uniform--who put their lives on the line to 
protect our freedoms--deserve the best care that we can give them. They 
deserve quality care that is convenient and accessible. This 
legislation provides us with an opportunity today to show our veterans 
that we are committed to those goals. I urge my colleagues to join me 
in supporting H.R. 3521.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Florida (Mr. Miller) that the House suspend the rules 
and pass the bill, H.R. 3521, as amended.

[[Page 18347]]

  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. MILLER of Florida. Mr. Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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