IB 

Union Calendar No. 403 

108TH CONGRESS 

2D SESSION H.R. 4768 

[Report No. 108–663] 

To amend title 38, United States Code, to authorize the Secretary of Veterans 

Affairs to enter into certain major medical facility leases, to authorize 

that Secretary to transfer real property subject to certain limitations, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 7, 2004 

Mr. SIMMONS (for himself, Mr. RODRIGUEZ, Mr. SMITH of New Jersey, Mr. 

EVANS, Mr. STEARNS, Mr. MILLER of Florida, Mr. BEAUPREZ, and Mr. 

FILNER) introduced the following bill; which was referred to the Committee on Veterans’ Affairs 

SEPTEMBER 8, 2004 

Additional sponsor: Mr. TURNER of Ohio 

SEPTEMBER 8, 2004 

Reported with amendments, committed to the Committee of the Whole House 

on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on July 7, 2004] 

A BILL 

To amend title 38, United States Code, to authorize the 

Secretary of Veterans Affairs to enter into certain major 

medical facility leases, to authorize that Secretary to 
2 

•HR 4768 RH 

transfer real property subject to certain limitations, 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; REFERENCES TO TITLE 38, 

4 UNITED STATES CODE; TABLE OF CONTENTS. 

5 (a) SHORT TITLE.—This Act may be cited as the ‘‘Vet6 erans Health Programs and Facilities Enhancement Act of 

7 2004’’. 

8 (b) REFERENCES TO TITLE 38, UNITED STATES

9 CODE.—Except as otherwise expressly provided, whenever 

10 in this Act an amendment or repeal is expressed in terms 

11 of an amendment to, or repeal of, a section or other provi12 sion, the reference shall be considered to be made to a section 

13 or other provision of title 38, United States Code. 

14 (c) TABLE OF CONTENTS.—The table of contents for 

15 this Act is as follows: 

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

TITLE I—MEDICAL FACILITIES MANAGEMENT 

Sec. 101. Major medical facility leases. 

Sec. 102. Department of Veterans Affairs Capital Asset Fund. 

Sec. 103. Annual report to Congress on inventory of Department of Veterans Affairs historic properties. 

Sec. 104. Authority to use project funds to construct or relocate surface parking 

incidental to a construction or nonrecurring maintenance 

project. 

Sec. 105. Inapplicability of limitation on use of advance planning funds to authorized major medical facility projects. 

Sec. 106. Improvement in enhanced-use lease authorities. 

Sec. 107. Extension of authority to provide care under long-term care pilot programs. 
3 

•HR 4768 RH 

TITLE II—OTHER MATTERS 

Sec. 201. Inclusion of all enrolled veterans among persons eligible to use canteens 

operated by Veterans’ Canteen Service. 

Sec. 202. Enhancement of medical preparedness of Department. 

1 TITLE I—MEDICAL FACILITIES 

2 MANAGEMENT 

3 SEC. 101. MAJOR MEDICAL FACILITY LEASES. 

4 (a) AUTHORIZED LEASES.—The Secretary of Veterans 

5 Affairs may enter into contracts for major medical facility 

6 leases at the following locations, in an amount for each fa7 cility lease not to exceed the amount shown for that location: 

8 (1) Wilmington, North Carolina, Outpatient 

9 Clinic, $1,320,000. 

10 (2) Greenville, North Carolina, Outpatient Clin11 ic, $1,220,000. 

12 (3) Norfolk, Virginia, Outpatient Clinic, 

13 $1,250,000. 

14 (4) Summerfield, Florida, Marion County Out15 patient Clinic, $1,230,000. 

16 (5) Knoxville, Tennessee, Outpatient Clinic, 

17 $850,000. 

18 (6) Toledo, Ohio, Outpatient Clinic, $1,200,000. 

19 (7) Crown Point, Indiana, Outpatient Clinic, 

20 $850,000. 

21 (8) Fort Worth, Texas, Tarrant County Out22 patient Clinic, $3,900,000. 
4 

•HR 4768 RH 

1 (9) Plano, Texas, Collin County Outpatient 

2 Clinic, $3,300,000. 

3 (10) San Antonio, Texas, Northeast Central 

4 Bexar County Outpatient Clinic, $1,400,000. 

5 (11) Corpus Christi, Texas, Outpatient Clinic, 

6 $1,200,000. 

7 (12) Harlingen, Texas, Outpatient Clinic, 

8 $650,000. 

9 (13) Denver, Colorado, Health Administration 

10 Center, $1,950,000. 

11 (14) Oakland, California, Outpatient Clinic, 

12 $1,700,000. 

13 (15) San Diego, California, North County Out14 patient Clinic, $1,300,000. 

15 (16) San Diego, California, South County, Out16 patient Clinic, $1,100,000. 

17 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to the Secretary of Veterans 

19 Affairs for fiscal year 2005 for the Medical Care account, 

20 $24,420,000 for the leases authorized in subsection (a). 

21 (c) AUTHORITY FOR LEASE OF CERTAIN LANDS OF

22 UNIVERSITY OF COLORADO.—Notwithstanding section 8103 

23 of title 38, United States Code, the Secretary of Veterans 

24 Affairs may enter into a lease for real property located at 
5 

•HR 4768 RH 

1 the Fitzsimons Campus of the University of Colorado for 

2 a period up to 75 years. 

3 SEC. 102. DEPARTMENT OF VETERANS AFFAIRS CAPITAL 

4 ASSET FUND. 

5 (a) ESTABLISHMENT OF FUND.—(1) Subchapter I of 

6 chapter 81 is amended by adding at the end the following 

7 new section: 

8 ‘‘§ 8118. Authority for transfer of real property; Cap9 ital Asset Fund 

10 ‘‘(a)(1) The Secretary may transfer real property 

11 under the jurisdiction or control of the Secretary (including 

12 structures and equipment associated therewith) to another 

13 department or agency of the United States or to a State 

14 (or a political subdivision of a State) or to any public or 

15 private entity, including an Indian tribe. Such a transfer 

16 may be made only if the Secretary receives compensation 

17 of not less than the fair market value of the property, except 

18 that no compensation is required, or compensation at less 

19 than fair market value may be accepted, in the case of a 

20 transfer to a grant and per diem provider (as defined in 

21 section 2002 of this title). When a transfer is made to a 

22 grant and per diem provider for less than fair market value, 

23 the Secretary shall require in the terms of the conveyance 

24 that if the property transferred is used for any purpose 

25 other than a purpose under chapter 20 of this title, all right, 
6 

•HR 4768 RH 

1 title, and interest to the property shall revert to the United 

2 States. 

3 ‘‘(2) The Secretary may exercise the authority pro4 vided by this section notwithstanding sections 521, 522 and 

5 541–545 of title 40. Any such transfer shall be in accord6 ance with this section and section 8122 of this title. 

7 ‘‘(3) The authority provided by this section may not 

8 be used in a case to which section 8164 of this title applies. 

9 ‘‘(4) The Secretary may enter into partnerships or 

10 agreements with public or private entities dedicated to his11 toric preservation to facilitate the transfer, leasing, or 

12 adaptive use of structures or properties specified in sub13 section (b)(3)(D). 

14 ‘‘(5) The authority of the Secretary under paragraph 

15 (1) expires on the date that is seven years after the date 

16 of the enactment of this section. 

17 ‘‘(b)(1) There is established in the Treasury of the 

18 United States a revolving fund to be known as the Depart19 ment of Veterans Affairs Capital Asset Fund (hereinafter 

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

21 Fund shall remain available until expended. 

22 ‘‘(2) Proceeds from the transfer of real property under 

23 this section shall be deposited into the Fund. 
7 

•HR 4768 RH 

1 ‘‘(3) To the extent provided in advance in appropria2 tions Acts, amounts in the Fund may be expended for the 

3 following purposes: 

4 ‘‘(A) Costs associated with the transfer of real 

5 property under this section, including costs of demoli6 tion, environmental remediation, maintenance and 

7 repair, improvements to facilitate the transfer, and 

8 administrative expenses. 

9 ‘‘(B) Costs, including costs specified in subpara10 graph (A), associated with future transfers of prop11 erty under this section. 

12 ‘‘(C) Costs associated with enhancing medical 

13 care services to veterans by improving, renovating, re14 placing, updating, and establishing patient care fa15 cilities through construction projects to be carried out 

16 for an amount less than the amount specified in 

17 8104(a)(3)(A) for a major medical facility project. 

18 ‘‘(D) Costs, including costs specified in subpara19 graph (A), associated with the transfer, lease or 

20 adaptive use of a structure or other property under 

21 the jurisdiction of the Secretary that is listed on the 

22 National Register of Historic Places. 

23 ‘‘(c) The Secretary shall include in the budget justifica24 tion materials submitted to Congress for any fiscal year in 
8 

•HR 4768 RH 

1 support of the President’s budget for that year for the De2 partment specification of the following: 

3 ‘‘(1) The real property transfers to be undertaken 

4 in accordance with this section during that fiscal 

5 year. 

6 ‘‘(2) All transfers completed under this section 

7 during the preceding fiscal year and completed and 

8 scheduled to be completed during the year during 

9 which the budget is submitted. 

10 ‘‘(3) The deposits into, and expenditures from, 

11 the Fund that are incurred or projected for each of the 

12 preceding fiscal year, the current fiscal year, and the 

13 fiscal year covered by the budget.’’. 

14 (2) The table of sections at the beginning of such chap15 ter is amended by inserting after the item relating to section 

16 8117 the following new item: 

‘‘8118. Authority for transfer of real property; Capital Asset Fund.’’. 

17 (b) INITIAL AUTHORIZATION OF APPROPRIATIONS.— 

18 There is authorized to be appropriated to the Department 

19 of Veterans Affairs Capital Asset Fund established under 

20 section 8118 of title 38, United States Code (as added by 

21 subsection (a)), the amount of $10,000,000. 

22 (c) TERMINATION OF NURSING HOME REVOLVING

23 FUND.—(1) Section 8116 is repealed. 

24 (2) The table of sections at the beginning of chapter 

25 81 is amended by striking the item relating to section 8116. 
9 

•HR 4768 RH 

1 (d) TRANSFER OF UNOBLIGATED BALANCES TO CAP2 ITAL ASSET FUND.—Any unobligated balances in the nurs3 ing home revolving fund under section 8116 of title 38, 

4 United States Code, as of the date of the enactment of this 

5 Act shall be deposited in the Department of Veterans Affairs 

6 Capital Asset Fund established under section 8118 of title 

7 38, United States Code (as added by subsection (a)). 

8 (e) PROCEDURES APPLICABLE TO TRANSFERS.—(1) 

9 Paragraph (2) of section 8122(a) is amended to read as 

10 follows: 

11 ‘‘(2) Except as provided in paragraph (3), the Sec12 retary may not during any fiscal year transfer to any other 

13 department or agency of the United States or to any other 

14 entity real property that is owned by the United States and 

15 administered by the Secretary unless the proposed transfer 

16 is described in the budget submitted to Congress pursuant 

17 to section 1105 of title 31 for that fiscal year.’’. 

18 (2) Section 8122(d) is amended— 

19 (A) by inserting ‘‘(1)’’ before ‘‘Real property’’; 

20 and 

21 (B) by adding at the end the following new 

22 paragraph: 

23 ‘‘(2) The Secretary may transfer real property under 

24 this section, or under section 8118 of this title if the Sec25 retary— 
10 

•HR 4768 RH 

1 ‘‘(A) places a notice in the real estate section of 

2 local newspapers and in the Federal Register of the 

3 Secretary’s intent to transfer that real property (in4 cluding land, structures, and equipment associated 

5 with the property); 

6 ‘‘(B) holds a public hearing; 

7 ‘‘(C) provides notice to the Administrator of 

8 General Services of the Secretary’s intention to trans9 fer that real property and waits for 30 days to elapse 

10 after providing that notice; and 

11 ‘‘(D) after such 30-day period has elapsed, noti12 fies the congressional veterans’ affairs committees of 

13 the Secretary’s intention to dispose of the property 

14 and waits for 60 days to elapse from the date of that 

15 notice.’’. 

16 (3) Section 8164(a) is amended by inserting ‘‘8118 or’’ 

17 after ‘‘rather than under section’’. 

18 (4) Section 8165(a)(2) is amended by striking ‘‘nurs19 ing home revolving fund’’ and inserting ‘‘Capital Asset 

20 Fund established under section 8118 of this title’’. 

21 (f) CONTINGENT EFFECTIVENESS.—The amendments 

22 made by this section shall take effect at the end of the 30- 

23 day period beginning on the date on which the Secretary 

24 of Veterans Affairs certifies to Congress that the Secretary 

25 is in compliance with subsection (b) of section 1710B of 
11 

•HR 4768 RH 

1 title 38, United States Code. Such certification shall dem2 onstrate a plan for, and commitment to, ongoing compli3 ance with the requirements of that subsection. 

4 (g) CONTINUING REPORTS.—Following a certification 

5 under subsection (f), the Secretary shall submit to Congress 

6 an update on that certification every six months until the 

7 certification is included in the Department’s annual budget 

8 submission. 

9 SEC. 103. ANNUAL REPORT TO CONGRESS ON INVENTORY 

10 OF DEPARTMENT OF VETERANS AFFAIRS HIS11 TORIC PROPERTIES. 

12 (a) IN GENERAL.—Not later than December 15 of 

13 2005, 2006, and 2007, the Secretary of Veterans Affairs 

14 shall submit to the Committees on Veterans’ Affairs of the 

15 Senate and House of Representatives a report on the his16 toric properties administered or controlled by the Secretary. 

17 (b) INITIAL REPORT.—In the initial report under sub18 section (a), the Secretary shall set forth a complete inven19 tory of the historic structures and property under the juris20 diction of the Secretary. The report shall include a descrip21 tion and classification of each such property based upon 

22 historical nature, current physical condition, and potential 

23 for transfer, leasing, or adaptive use. 

24 (c) SUBSEQUENT REPORTS.—In reports under sub25 section (a) after the initial report, the Secretary shall pro-
12 

•HR 4768 RH 

1 vide an update of the status of each property identified in 

2 the initial report, with the proposed and actual disposition 

3 of each property. Each such report shall include any rec4 ommendation of the Secretary for legislation to enhance the 

5 transfer, leasing or adaptive use of such properties. 

6 SEC. 104. AUTHORITY TO USE PROJECT FUNDS TO CON7 STRUCT OR RELOCATE SURFACE PARKING IN8 CIDENTAL TO A CONSTRUCTION OR NON9 RECURRING MAINTENANCE PROJECT. 

10 Section 8109 is amended by adding at the end the fol11 lowing new subsection: 

12 ‘‘(j) Funds in a construction account or capital ac13 count that are available for a construction project or a non14 recurring maintenance project may be used for the construc15 tion or relocation of a surface parking lot incidental to that 

16 project.’’. 

17 SEC. 105. INAPPLICABILITY OF LIMITATION ON USE OF AD18 VANCE PLANNING FUNDS TO AUTHORIZED 

19 MAJOR MEDICAL FACILITY PROJECTS. 

20 Section 8104 is amended by adding at the end the fol21 lowing new subsection: 

22 ‘‘(g) The limitation in subsection (f) does not apply 

23 to a project for which funds have been authorized by law 

24 in accordance with subsection (a)(2).’’. 
13 

•HR 4768 RH 

1 SEC. 106. IMPROVEMENT IN ENHANCED-USE LEASE AU2 THORITIES. 

3 Section 8166(a) is amended by inserting ‘‘land use,’’ 

4 in the second sentence after ‘‘relating to’’. 

5 SEC. 107. EXTENSION OF AUTHORITY TO PROVIDE CARE 

6 UNDER LONG-TERM CARE PILOT PROGRAMS. 

7 Subsection (h) of section 102 of the Veterans Millen8 nium Health Care and Benefits Act (38 U.S.C. 1710B note) 

9 is amended— 

10 (1) by inserting ‘‘(1)’’ before ‘‘The authority of’’; 

11 and 

12 (2) by adding at the end the following new para13 graph: 

14 ‘‘(2) In the case of a veteran who is participating in 

15 a pilot program under this section as of the end of the three16 year period applicable to that pilot program under para17 graph (1), the Secretary may continue to provide to that 

18 veteran any of the services that could be provided under 

19 the pilot program. The authority to provide services to any 

20 veteran under the preceding sentence applies during the pe21 riod beginning on the date specified in paragraph (1) with 

22 respect to that pilot program and ending on December 31, 

23 2005.’’. 
14 

•HR 4768 RH 

1 TITLE II—OTHER MATTERS 

2 SEC. 201. INCLUSION OF ALL ENROLLED VETERANS AMONG 

3 PERSONS ELIGIBLE TO USE CANTEENS OPER4 ATED BY VETERANS’ CANTEEN SERVICE. 

5 The text of section 7803 is amended to read as follows: 

6 ‘‘(a) PRIMARY BENEFICIARIES.—Canteens operated by 

7 the Service shall be primarily for the use and benefit of— 

8 ‘‘(1) veterans hospitalized or domiciled at the fa9 cilities at which canteen services are provided; and 

10 ‘‘(2) other veterans who are enrolled under sec11 tion 1705 of this title. 

12 ‘‘(b) OTHER AUTHORIZED USERS.—Service at such 

13 canteens may also be furnished to— 

14 ‘‘(1) personnel of the Department and recognized 

15 veterans’ organizations who are employed at a facil16 ity at which canteen services are provided and to 

17 other persons so employed; 

18 ‘‘(2) the families of persons referred to in para19 graph (1) who reside at the facility; and 

20 ‘‘(3) relatives and other persons while visiting a 

21 person specified in this section.’’. 

22 SEC. 202. ENHANCEMENT OF MEDICAL PREPAREDNESS OF 

23 DEPARTMENT. 

24 (a) PEER REVIEW PANEL.—In order to assist the Sec25 retary of Veterans Affairs in selecting facilities of the De-
15 

•HR 4768 RH 

1 partment of Veterans Affairs to serve as sites for centers 

2 under section 7327 of title 38, United States Code, as added 

3 by subsection (c), the Secretary shall establish a peer review 

4 panel to assess the scientific and clinical merit of proposals 

5 that are submitted to the Secretary for the selection of such 

6 facilities. The panel shall be established not later than 90 

7 days after the date of the enactment of this Act and shall 

8 include experts in the fields of toxicological research, infec9 tious diseases, radiology, clinical care of veterans exposed 

10 to such hazards, and other persons as determined appro11 priate by the Secretary. Members of the panel shall serve 

12 as consultants to the Department of Veterans Affairs. 

13 Amounts available to the Secretary for Medical Care may 

14 be used for purposes of carrying out this subsection. The 

15 panel shall not be subject to the Federal Advisory Com16 mittee Act (5 U.S.C. App.). 

17 (b) PROPOSALS.—The Secretary shall solicit proposals 

18 for designation of facilities as described in subsection (a). 

19 The announcement of the solicitation of such proposals shall 

20 be issued not later than 60 days after the date of the enact21 ment of this Act, and the deadline for the submission of 

22 proposals in response to such solicitation shall be not later 

23 than 90 days after the date of such announcement. The peer 

24 review panel established under subsection (a) shall complete 

25 its review of the proposals and submit its recommendations 
16

•HR 4768 RH 

1 to the Secretary not later than 60 days after the date of 

2 the deadline for the submission of proposals. The Secretary 

3 shall then select the four sites for the location of such centers 

4 not later than 45 days after the date on which the peer 

5 review panel submits its recommendations to the Secretary. 

6 (c) REVISED SECTION.—Subchapter II of chapter 73 

7 is amended by adding at the end a new section with—

8 (1) a heading as follows: 

9 ‘‘§ 7327. Medical preparedness centers’’; 

10 and 

11 (2) a text consisting of the text of subsections (a) 

12 through (h) of section 7325 of title 38, United States 

13 Code, and a subsection (i) at the end as follows: 

14 ‘‘(i) FUNDING.—(1) There are authorized to be appro15 priated for the centers under this section $10,000,000 for 

16 each of fiscal years 2005 through 2007. 

17 ‘‘(2) In addition to any amounts appropriated for a 

18 fiscal year specifically for the activities of the centers pursu19 ant to paragraph (1), the Under Secretary for Health shall 

20 allocate to the centers from other funds appropriated for 

21 that fiscal year generally for the Department medical care 

22 account and the Department medical and prosthetics re23 search account such amounts as the Under Secretary deter24 mines necessary in order to carry out the purposes of this 

25 section.’’. 
17

•HR 4768 RH 

1 (d) RULE OF CONSTRUCTION.—No provision of law 

2 may be construed to supersede or nullify this section, or 

3 an amendment made by this section, unless it specifically 

4 refers to this subsection and specifically states that it is en5 acted to supersede or nullify this section or a provision of 

6 this section.

Amend the title so as to read: ‘‘A bill to authorize 

the Secretary of Veterans Affairs to enter into certain 

major medical facility leases, to authorize that Secretary 

to transfer real property subject to certain limitations, 

otherwise to improve management of medical facilities of 

the Department of Veterans Affairs, and for other purposes.’’.
Union Calendar No. 403 

108TH CONGRESS 

2D SESSION H.R. 4768 

[Report No. 108–663] 

A BILL 

To amend title 38, United States Code, to authorize the Secretary of Veterans Affairs to enter 

into certain major medical facility leases, to authorize that Secretary to transfer real property subject to certain limitations, and for other purposes. 

SEPTEMBER 8, 2004 

Reported with amendments, committed to the Committee 

of the Whole House on the State of the Union, and ordered to be printed