II 

111TH CONGRESS 

1ST SESSION S. 1322 

To provide for the Captain James A. Lovell Federal Health Care Center 

in Lake County, Illinois, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 23, 2009 

Mr. DURBIN (for himself and Mr. AKAKA) introduced the following bill; which 

was read twice and referred to the Committee on Armed Services 

A BILL 

To provide for the Captain James A. Lovell Federal Health 

Care Center in Lake County, Illinois, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Captain James A. 

5 Lovell Federal Health Care Center Act of 2009’’. 

6 SEC. 2. EXECUTIVE AGREEMENT. 

7 (a) EXECUTIVE AGREEMENT REQUIRED.—Not later 

8 than 180 days after the date of the enactment of this Act, 

9 the Secretary of Defense, in consultation with the Sec10 retary of the Navy, and the Secretary of Veterans Affairs 


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1 shall execute a signed executive agreement for the joint 

2 use by the Department of Defense and the Department 

3 of Veterans Affairs of the following: 

4 (1) A new Navy ambulatory care center (on 

5 which construction commenced in July 2008), park6 ing structure, and supporting structures and facili7 ties in North Chicago, Illinois, and Great Lakes, Illi8 nois. 

9 (2) Medical personal property and equipment 

10 relating to the center, structures, and facilities de11 scribed in paragraph (1). 

12 (b) SCOPE.—The agreement required by subsection 

13 (a) shall— 

14 (1) be a binding operational agreement on mat15 ters under the areas specified in section 706 of the 

16 Duncan Hunter National Defense Authorization Act 

17 for Fiscal Year 2009 (Public Law 110–417; 122 

18 Stat. 4500); and 

19 (2) contain additional terms and conditions as 

20 required by the provisions of this Act. 

21 SEC. 3. TRANSFER OF PROPERTY. 

22 (a) TRANSFER.— 

23 (1) TRANSFER AUTHORIZED.—The Secretary of 

24 Defense, acting through the Administrator of Gen25 eral Services, may transfer, without reimbursement, 


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1 to the Secretary of Veterans Affairs jurisdiction over 

2 the center, structures, facilities, and property and 

3 equipment covered by the executive agreement under 

4 section 2. 

5 (2) DATE OF TRANSFER.—The transfer author6 ized by paragraph (1) may not occur before the ear7 lier of— 

8 (A) the date that is five years after the 

9 date of the execution under section 2 of the ex10 ecutive agreement required by that section; or 

11 (B) the date of the completion of such spe12 cific benchmarks relating to the joint use by the 

13 Department of Defense and the Department of 

14 Veterans Affairs of the Navy ambulatory care 

15 center described in section 2(a)(1) as the Sec16 retary of Defense (in consultation with the Sec17 retary of the Navy) and Secretary of the De18 partment of Veterans Affairs shall jointly estab19 lish for purposes of this section not later than 

20 180 days after the date of the enactment of this 

21 Act. 

22 (3) DELAY OF TRANSFER FOR COMPLETION OF

23 CONSTRUCTION.—If construction on the center, 

24 structures, and facilities described in paragraph (1) 

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1 graph (A) or (B) of that paragraph, as applicable, 

2 the transfer of the center, structures, and facilities 

3 under that paragraph may occur thereafter upon 

4 completion of the construction. 

5 (4) DISCHARGE OF TRANSFER.—The Adminis6 trator of General Services shall effectualize and me7 morialize the transfer as authorized by this sub8 section not later than 30 days after receipt of the re9 quest for the transfer. 

10 (5) DESIGNATION OF FACILITY.—The center, 

11 structures, facilities transferred under this sub12 section shall be designated and known after transfer 

13 under this subsection as the ‘‘Captain James A. 

14 Lovell Federal Health Care Center’’. 

15 (b) REVERSION.— 

16 (1) IN GENERAL.—If any of the real and re17 lated personal property transferred pursuant to sub18 section (a) is subsequently used for purposes other 

19 than those specified in the executive agreement re20 quired by section 2, or is otherwise jointly deter21 mined by the Secretary of Defense and the Secretary 

22 of Veterans Affairs to be excess to the needs of the 

23 Captain James A. Lovell Federal Health Care Cen24 ter, the Secretary of Veterans Affairs shall offer to 

25 transfer jurisdiction over such property, without reVerDate Nov 24 2008 01:43 Jun 24, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1322.IS S1322

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1 imbursement, to the Secretary of Defense. Any such 

2 transfer shall be carried out by the Administrator of 

3 General Services not later than one year after the 

4 acceptance of the offer of such transfer, plus such 

5 additional time as the Administrator may require to 

6 effectuate and memorialize such transfer. 

7 (2) REVERSION IN EVENT OF LACK OF FACILI8 TIES INTEGRATION.— 

9 (A) WITHIN INITIAL PERIOD.—During the 

10 five-year period beginning on the date of the 

11 transfer of real and related personal property 

12 pursuant to subsection (a), if the Secretary of 

13 Veterans Affairs, the Secretary of Defense, and 

14 the Secretary of Navy jointly determine that 

15 the integration of the facilities transferred pur16 suant to that subsection should not continue, 

17 jurisdiction over such real and related personal 

18 property shall be transferred, without reim19 bursement, to the Secretary of Defense. The 

20 transfer under this subparagraph shall be car21 ried out by the Administrator of General Serv22 ices not later than 180 days after the date of 

23 the determination by the Secretaries, plus such 

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1 quire to effectuate and memorialize such trans2 fer. 

3 (B) AFTER INITIAL PERIOD.—After the 

4 end of the five-year period described in sub5 paragraph (A), if the Secretary of Veterans Af6 fairs or the Secretary of Defense determines 

7 that the integration of the facilities transferred 

8 pursuant to subsection (a) should not continue, 

9 the Secretary of Veterans Affairs shall transfer, 

10 without reimbursement, to the Secretary of De11 fense jurisdiction over the real and related per12 sonal property described in subparagraph (A). 

13 Any transfer under this subparagraph shall be 

14 carried out by the Administrator of General 

15 Services not later than one year after the date 

16 of the determination by the applicable Sec17 retary, plus such additional time as the Admin18 istrator may require to effectuate and memori19 alize such transfer. 

20 (C) REVERSION PROCEDURES.—The exec21 utive agreement required by section 2 shall pro22 vide the following: 

23 (i) Specific procedures for the rever24 sion of real and related personal property, 

25 as appropriate, transferred pursuant to 


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1 subsection (a) to ensure the continuing ac2 complishment by the Department of De3 fense and the Department of Veterans Af4 fairs of their missions in the event that the 

5 integration of facilities described trans6 ferred pursuant to that subsection (a) is 

7 not completed or a reversion of property 

8 occurs under subparagraph (A) or (B). 

9 (ii) In the event of a reversion under 

10 this paragraph, the transfer from the De11 partment of Veterans Affairs to the De12 partment of Defense of associated func13 tions including appropriate resources, civil14 ian positions, and personnel, in a manner 

15 that will not result in adverse impact to 

16 the missions of Department of Defense or 

17 the Department of Veterans Affairs. 

18 SEC. 4. TRANSFER OF CIVILIAN PERSONNEL OF THE DE19 PARTMENT OF DEFENSE. 

20 (a) TRANSFER OF FUNCTIONS.—The Secretary of 

21 Defense and the Secretary of the Navy may transfer to 

22 the Secretary of Veterans Affairs functions necessary for 

23 the effective operation of the Captain James A. Lovell 

24 Federal Health Care Center. The Secretary of Veterans 

25 Affairs may accept any functions so transferred. 


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1 (b) TERMS.— 

2 (1) EXECUTIVE AGREEMENT.—Any transfer of 

3 functions under subsection (a) shall be carried out 

4 as provided in the executive agreement required by 

5 section 2. The functions to be so transferred shall be 

6 identified utilizing the provisions of section 3503 of 

7 title 5, United States Code. 

8 (2) ELEMENTS.—In providing for the transfer 

9 of functions under subsection (a), the executive 

10 agreement required by section 2 shall provide for the 

11 following: 

12 (A) The transfer of civilian employee posi13 tions of the Department of Defense identified in 

14 the executive agreement to the Department of 

15 Veterans Affairs, and of the incumbent civilian 

16 employees in such positions, and the transition 

17 of the employees so transferred to the pay, ben18 efits, and personnel systems that apply to em19 ployees of the Department of Veterans Affairs 

20 (to the extent that different systems apply). 

21 (B) The transition of employees so trans22 ferred to the pay systems of the Department of 

23 Veterans Affairs in a manner which will not re24 sult in any reduction in an employee’s regular 

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1 ity pay, any physician comparability allowance, 

2 and any other fixed and recurring pay supple3 ment) at the time of transition. 

4 (C) The continuation after transfer of the 

5 same employment status for employees so 

6 transferred who have already successfully com7 pleted or are in the process of completing a 

8 one-year probationary period under title 5, 

9 United States Code, notwithstanding the provi10 sions of section 7403(b)(1) of title 38, United 

11 States Code. 

12 (D) The extension of collective bargaining 

13 rights under title 5, United States Code, to em14 ployees so transferred in positions listed in sub15 section 7421(b) of title 38, United States Code, 

16 notwithstanding the provisions of section 7422 

17 of title 38, United States Code, for a two-year 

18 period beginning on the effective date of the ex19 ecutive agreement. 

20 (E) At the end of the two-year period be21 ginning on the effective date of the executive 

22 agreement, for the following actions by the Sec23 retary of Veterans Affairs with respect to the 

24 extension of collective bargaining rights under 

25 subparagraph (D): 


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1 (i) Consideration of the impact of the 

2 extension of such rights. 

3 (ii) Consultation with exclusive em4 ployee representatives of the transferred 

5 employees about such impact. 

6 (iii) Determination, after consultation 

7 with the Secretary of Defense and the Sec8 retary of the Navy, whether the extension 

9 of such rights should be terminated, modi10 fied, or kept in effect. 

11 (iv) Submittal to Congress of a notice 

12 regarding the determination made under 

13 clause (iii). 

14 (F) The recognition after transfer of each 

15 transferred physician’s and dentist’s total num16 ber of years of service as a physician or dentist 

17 in the Department of Defense for purposes of 

18 calculating such employee’s rate of base pay, 

19 notwithstanding the provisions of section 

20 7431(b)(3) of title 38, United States Code. 

21 (G) The preservation of the seniority of the 

22 employees so transferred for all pay purposes. 

23 (c) RETENTION OF DEPARTMENT OF DEFENSE EM24 PLOYMENT AUTHORITY.—Notwithstanding subsections 

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1 ian personnel at the Captain James Lovell Federal Health 

2 Care Center if the Secretary of the Navy, or a designee 

3 of the Secretary, determines it is necessary and appro4 priate to meet mission requirements of the Department 

5 of the Navy. 

6 SEC. 5. JOINT FUNDING AUTHORITY FOR THE CAPTAIN 

7 JAMES A. LOVELL FEDERAL HEALTH CARE 

8 CENTER. 

9 (a) IN GENERAL.—The Department of Veterans Af10 fairs/Department of Defense Health-Care Resources Shar11 ing Committee under section 8111(b) of title 38, United 

12 States Code, may provide for the joint funding of the Cap13 tain James A. Lovell Federal Health Care Center in ac14 cordance with the provisions of this section. 

15 (b) HEALTH CARE CENTER FUND.— 

16 (1) ESTABLISHMENT.—There is established on 

17 the books of the Treasury under the Department of 

18 Veterans Affairs a fund to be known as the ‘‘Cap19 tain James A. Lovell Federal Health Care Center 

20 Fund’’ (in this section referred to as the ‘‘Fund’’). 

21 (2) ELEMENTS.—The Fund shall consist of the 

22 following: 

23 (A) Amounts transferred to the Fund by 

24 the Secretary of Defense, in consultation with 

25 the Secretary of the Navy, from amounts auVerDate Nov 24 2008 01:43 Jun 24, 2009 Jkt 079200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1322.IS S1322

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1 thorized to be appropriated for the Department 

2 of Defense. 

3 (B) Amounts transferred to the Fund by 

4 the Secretary of Veterans Affairs from amounts 

5 authorized to be appropriated for the Depart6 ment of Veterans Affairs. 

7 (C) Amounts transferred to the Fund from 

8 medical care collections under paragraph (4). 

9 (3) DETERMINATION OF AMOUNTS TRANS10 FERRED GENERALLY.—The amount transferred to 

11 the Fund by each of the Secretary of Defense and 

12 the Secretary of Veterans Affairs under subpara13 graphs (A) and (B), as applicable, of paragraph (2) 

14 each fiscal year shall be such amount, as determined 

15 by a methodology jointly established by the Sec16 retary of Defense and the Secretary of Veterans Af17 fairs for purposes of this subsection, that reflects the 

18 mission-specific activities, workload, and costs of 

19 provision of health care at the Captain James A. 

20 Lovell Federal Health Care Center of the Depart21 ment of Defense and the Department of Veterans 

22 Affairs, respectively. 

23 (4) TRANSFERS FROM MEDICAL CARE COLLEC24 TIONS.— 


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1 (A) IN GENERAL.—Amounts collected 

2 under the authorities specified in subparagraph 

3 (B) for health care provided at the Captain 

4 James A. Lovell Federal Health Care Center 

5 may be transferred to the Fund under para6 graph (2)(C). 

7 (B) AUTHORITIES.—The authorities speci8 fied in this subparagraph are the following: 

9 (i) Section 1095 of title 10, United 

10 States Code. 

11 (ii) Section 1729 of title 38, United 

12 States Code. 

13 (iii) Public Law 87–693, popularly 

14 known as the ‘‘Federal Medical Care Re15 covery Act’’ (42 U.S.C. 2651 et seq.). 

16 (5) ADMINISTRATION.—The Fund shall be ad17 ministered in accordance with such provisions of the 

18 executive agreement required by section 2 as the 

19 Secretary of Defense and the Secretary of Veterans 

20 Affairs shall jointly include in the executive agree21 ment. Such provisions shall provide for an inde22 pendent review of the methodology established under 

23 paragraph (3). 

24 (c) AVAILABILITY.— 


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1 (1) IN GENERAL.—Funds transferred to the 

2 Fund under subsection (b) shall be available to fund 

3 the operations of the Captain James A. Lovell Fed4 eral Health Care Center, including capital equip5 ment, real property maintenance, and minor con6 struction projects that are not required to be specifi7 cally authorized by law under section 2805 of title 

8 10, United States Code, or section 8104 of title 38, 

9 United States Code. 

10 (2) LIMITATION.—The availability of funds 

11 transferred to the Fund under subsection (b)(2)(C) 

12 shall be subject to the provisions of section 1729A 

13 of title 38, United States Code. 

14 (3) PERIOD OF AVAILABILITY.— 

15 (A) IN GENERAL.—Except as provided in 

16 subparagraph (B), funds transferred to the 

17 Fund under subsection (b) shall be available 

18 under paragraph (1) for one fiscal year after 

19 transfer. 

20 (B) EXCEPTION.—Of an amount trans21 ferred to the Fund under subsection (b), an 

22 amount not to exceed two percent of such 

23 amount shall be available under paragraph (1) 

24 for two fiscal years after transfer. 


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1 (d) FINANCIAL RECONCILIATION.—The executive 

2 agreement required by section 2 shall provide for the de3 velopment and implementation of an integrated financial 

4 reconciliation process that meets the fiscal reconciliation 

5 requirements of the Department of Defense, the Depart6 ment of the Navy, and the Department of Veterans Af7 fairs. The process shall permit each of the Department 

8 of Defense, the Department of Navy, and the Department 

9 of Veterans Affairs to identify their fiscal contributions 

10 to the Fund, taking into consideration accounting, work11 load, and financial management differences. 

12 (e) ANNUAL REPORT.—The Secretary of Defense, in 

13 consultation with the Secretary of the Navy, and the Sec14 retary of Veterans Affairs shall jointly provide for an an15 nual independent review of the Fund for at least three 

16 years after the date of the enactment of this Act. Such 

17 review shall include detailed statements of the uses of 

18 amounts of the Fund and an evaluation of the adequacy 

19 of the proportional share contributed to the Fund by each 

20 of the Secretary of Defense and the Secretary of Veterans 

21 Affairs. 

22 (f) TERMINATION.—The authorities in this section 

23 shall terminate on September 30, 2015. 


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1 SEC. 6. ELIGIBILITY OF MEMBERS OF THE UNIFORMED 

2 SERVICES FOR CARE AND SERVICES AT THE 

3 CAPTAIN JAMES A. LOVELL FEDERAL 

4 HEALTH CARE CENTER. 

5 (a) IN GENERAL.—For purposes of eligibility for 

6 health care under chapter 55 of title 10, United States 

7 Code, the Captain James A. Lovell Federal Health Care 

8 Center may be treated as a facility of the uniformed serv9 ices to the extent provided under subsection (b) in the ex10 ecutive agreement required by section 2. 

11 (b) ADDITIONAL ELEMENTS.—The executive agree12 ment required by section 2 may include provisions as fol13 lows: 

14 (1) To establish an integrated priority list for 

15 access to health care at the Captain James A. Lovell 

16 Federal Health Care Center, which list shall— 

17 (A) integrate the respective health care 

18 priority lists of the Secretary of Defense and 

19 the Secretary of Veterans Affairs; and 

20 (B) take into account categories of bene21 ficiaries, enrollment program status, and such 

22 other matters as the Secretary of Defense and 

23 the Secretary of Veterans Affairs jointly con24 sider appropriate. 

25 (2) To incorporate any resource-related limita26 tions for access to health care at the Captain James 


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1 A. Lovell Federal Health Care Center that the Sec2 retary of Defense may establish for purposes of ad3 ministering space-available eligibility for care in fa4 cilities of the uniformed services under chapter 55 of 

5 title 10, United States Code. 

6 (3) To allocate financial responsibility for care 

7 provided at the Captain James A. Lovell Federal 

8 Health Care Center for individuals who are eligible 

9 for care under both chapter 55 of title 10, United 

10 States Code, and title 38, United States Code. 

11 (4) To waive the applicability to the Captain 

12 James A. Lovell Federal Health Care Center of any 

13 provision of section 8111(e) of title 38, United 

14 States Code, that the Secretary of Defense and the 

15 Secretary of Veterans Affairs shall jointly specify. 

16 SEC. 7. EXTENSION OF DOD–VA HEALTH CARE SHARING IN17 CENTIVE FUND. 

18 Section 8111(d)(3) of title 38, United States Code, 

19 is amended by striking ‘‘September 30, 2010’’ and insert20 ing ‘‘September 30, 2015’’. 

Æ 


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