H. R. 2620
One Hundred Seventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, two thousand and one
An Act
Making appropriations for the Departments of Veterans Affairs and Housing and
Urban Development, and for sundry independent agencies, boards, commissions,
corporations, and offices for the fiscal year ending September 30, 2002, and
for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That the
following sums are appropriated, out of any money in the Treasury
not otherwise appropriated, for the Departments of Veterans Affairs
and Housing and Urban Development, and for sundry independent
agencies, boards, commissions, corporations, and offices for the fiscal
year ending September 30, 2002, and for other purposes, namely:
TITLE I—DEPARTMENT OF VETERANS AFFAIRS
VETERANS BENEFITS ADMINISTRATION
COMPENSATION AND PENSIONS
(INCLUDING TRANSFER OF FUNDS)
For the payment of compensation benefits to or on behalf of
veterans and a pilot program for disability examinations as author-
ized by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 53, 55, and
61); pension benefits to or on behalf of veterans as authorized
by law (38 U.S.C. chapters 15, 51, 53, 55, and 61; 92 Stat. 2508);
and burial benefits, emergency and other officers’ retirement pay,
adjusted-service credits and certificates, payment of premiums due
on commercial life insurance policies guaranteed under the provi-
sions of article IV of the Soldiers’ and Sailors’ Civil Relief Act
of 1940 (50 U.S.C. App. 540 et seq.) and for other benefits as
authorized by law (38 U.S.C. 107, 1312, 1977, and 2106, chapters
23, 51, 53, 55, and 61; 50 U.S.C. App. 540–548; 43 Stat. 122,
123; 45 Stat. 735; 76 Stat. 1198), $24,944,288,000, to remain avail-
able until expended: Provided, That not to exceed $17,940,000 of
the amount appropriated under this heading shall be reimbursed
to ‘‘General operating expenses’’ and ‘‘Medical care’’ for necessary
expenses in implementing those provisions authorized in the Omni-
bus Budget Reconciliation Act of 1990, and in the Veterans’ Benefits
Act of 1992 (38 U.S.C. chapters 51, 53, and 55), the funding source
for which is specifically provided as the ‘‘Compensation and pen-
sions’’ appropriation: Provided further, That such sums as may
be earned on an actual qualifying patient basis, shall be reimbursed
to ‘‘Medical facilities revolving fund’’ to augment the funding of
individual medical facilities for nursing home care provided to pen-
sioners as authorized.
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READJUSTMENT BENEFITS
For the payment of readjustment and rehabilitation benefits
to or on behalf of veterans as authorized by law (38 U.S.C. chapters
21, 30, 31, 34, 35, 36, 39, 51, 53, 55, and 61), $2,135,000,000,
to remain available until expended: Provided, That expenses for
rehabilitation program services and assistance which the Secretary
is authorized to provide under section 3104(a) of title 38, United
States Code, other than under subsection (a)(1), (2), (5), and (11)
of that section, shall be charged to this account.
VETERANS INSURANCE AND INDEMNITIES
For military and naval insurance, national service life insur-
ance, servicemen’s indemnities, service-disabled veterans insurance,
and veterans mortgage life insurance as authorized by 38 U.S.C.
chapter 19; 70 Stat. 887; 72 Stat. 487, $26,200,000, to remain
available until expended.
VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct and guaranteed loans, such sums as
may be necessary to carry out the program, as authorized by 38
U.S.C. chapter 37, as amended: Provided, That such costs, including
the cost of modifying such loans, shall be as defined in section
502 of the Congressional Budget Act of 1974, as amended: Provided
further, That during fiscal year 2002, within the resources available,
not to exceed $300,000 in gross obligations for direct loans are
authorized for specially adapted housing loans.
In addition, for administrative expenses to carry out the direct
and guaranteed loan programs, $164,497,000, which may be trans-
ferred to and merged with the appropriation for ‘‘General operating
expenses’’.
EDUCATION LOAN FUND PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, $1,000, as authorized by 38 U.S.C.
3698, as amended: Provided, That such costs, including the cost
of modifying such loans, shall be as defined in section 502 of
the Congressional Budget Act of 1974, as amended: Provided fur-
ther, That these funds are available to subsidize gross obligations
for the principal amount of direct loans not to exceed $3,400.
In addition, for administrative expenses necessary to carry
out the direct loan program, $64,000, which may be transferred
to and merged with the appropriation for ‘‘General operating
expenses’’.
VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, $72,000, as authorized by 38
U.S.C. chapter 31, as amended: Provided, That such costs, including
the cost of modifying such loans, shall be as defined in section
502 of the Congressional Budget Act of 1974, as amended: Provided
H. R. 2620—3
further, That funds made available under this heading are available
to subsidize gross obligations for the principal amount of direct
loans not to exceed $3,301,000.
In addition, for administrative expenses necessary to carry
out the direct loan program, $274,000, which may be transferred
to and merged with the appropriation for ‘‘General operating
expenses’’.
NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For administrative expenses to carry out the direct loan pro-
gram authorized by 38 U.S.C. chapter 37, subchapter V, as
amended, $544,000, which may be transferred to and merged with
the appropriation for ‘‘General operating expenses’’.
GUARANTEED TRANSITIONAL HOUSING LOANS FOR HOMELESS
VETERANS PROGRAM ACCOUNT
For the administrative expenses to carry out the guaranteed
transitional housing loan program authorized by 38 U.S.C. chapter
37, subchapter VI, not to exceed $750,000 of the amounts appro-
priated by this Act for ‘‘General operating expenses’’ and ‘‘Medical
care’’ may be expended.
VETERANS HEALTH ADMINISTRATION
MEDICAL CARE
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses for the maintenance and operation of
hospitals, nursing homes, and domiciliary facilities; for furnishing,
as authorized by law, inpatient and outpatient care and treatment
to beneficiaries of the Department of Veterans Affairs, including
care and treatment in facilities not under the jurisdiction of the
department; and furnishing recreational facilities, supplies, and
equipment; funeral, burial, and other expenses incidental thereto
for beneficiaries receiving care in the department; administrative
expenses in support of planning, design, project management, real
property acquisition and disposition, construction and renovation
of any facility under the jurisdiction or for the use of the depart-
ment; oversight, engineering and architectural activities not charged
to project cost; repairing, altering, improving or providing facilities
in the several hospitals and homes under the jurisdiction of the
department, not otherwise provided for, either by contract or by
the hire of temporary employees and purchase of materials; uni-
forms or allowances therefor, as authorized by 5 U.S.C. 5901–
5902; aid to State homes as authorized by 38 U.S.C. 1741; adminis-
trative and legal expenses of the department for collecting and
recovering amounts owed the department as authorized under 38
U.S.C. chapter 17, and the Federal Medical Care Recovery Act,
42 U.S.C. 2651 et seq., $21,331,164,000, plus reimbursements: Pro-
vided, That of the funds made available under this heading,
$675,000,000 is for the equipment and land and structures object
classifications only, which amount shall not become available for
obligation until August 1, 2002, and shall remain available until
September 30, 2003: Provided further, That of the funds made
H. R. 2620—4
available under this heading, not to exceed $900,000,000 shall
be available until September 30, 2003: Provided further, That of
the funds made available under this heading for non-recurring
maintenance and repair (NRM) activities, $15,000,000 shall be
available without fiscal year limitation to support the NRM activi-
ties necessary to implement Capital Asset Realignment for
Enhanced Services (CARES) activities: Provided further, That from
amounts appropriated under this heading, additional amounts, as
designated by the Secretary no later than September 30, 2002,
may be used for CARES activities without fiscal year limitation:
Provided further, That the Secretary of Veterans Affairs shall con-
duct by contract a program of recovery audits for the fee basis
and other medical services contracts with respect to payments for
hospital care; and, notwithstanding 31 U.S.C. 3302(b), amounts
collected, by setoff or otherwise, as the result of such audits shall
be available, without fiscal year limitation, for the purposes for
which funds are appropriated under this heading and the purposes
of paying a contractor a percent of the amount collected as a
result of an audit carried out by the contractor: Provided further,
That all amounts so collected under the preceding proviso with
respect to a designated health care region (as that term is defined
in 38 U.S.C. 1729A(d)(2)) shall be allocated, net of payments to
the contractor, to that region.
In addition, in conformance with Public Law 105–33 estab-
lishing the Department of Veterans Affairs Medical Care Collections
Fund, such sums as may be deposited to such Fund pursuant
to 38 U.S.C. 1729A may be transferred to this account, to remain
available until expended for the purposes of this account.
MEDICAL AND PROSTHETIC RESEARCH
For necessary expenses in carrying out programs of medical
and prosthetic research and development as authorized by 38 U.S.C.
chapter 73, to remain available until September 30, 2003,
$371,000,000, plus reimbursements.
MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING
EXPENSES
For necessary expenses in the administration of the medical,
hospital, nursing home, domiciliary, construction, supply, and
research activities, as authorized by law; administrative expenses
in support of capital policy activities, $66,731,000, plus reimburse-
ments: Provided, That technical and consulting services offered
by the Facilities Management Field Service, including project
management and real property administration (including leases,
site acquisition and disposal activities directly supporting projects),
shall be provided to Department of Veterans Affairs components
only on a reimbursable basis, and such amounts will remain avail-
able until September 30, 2002.
DEPARTMENTAL ADMINISTRATION
GENERAL OPERATING EXPENSES
For necessary operating expenses of the Department of Vet-
erans Affairs, not otherwise provided for, including administrative
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expenses in support of Department-wide capital planning, manage-
ment and policy activities, uniforms or allowances therefor; not
to exceed $25,000 for official reception and representation expenses;
hire of passenger motor vehicles; and reimbursement of the General
Services Administration for security guard services, and the Depart-
ment of Defense for the cost of overseas employee mail,
$1,195,728,000: Provided, That expenses for services and assistance
authorized under 38 U.S.C. 3104(a)(1), (2), (5), and (11) that the
Secretary determines are necessary to enable entitled veterans:
(1) to the maximum extent feasible, to become employable and
to obtain and maintain suitable employment; or (2) to achieve
maximum independence in daily living, shall be charged to this
account: Provided further, That of the funds made available under
this heading, not to exceed $60,000,000 shall be available for obliga-
tion until September 30, 2003: Provided further, That from the
funds made available under this heading, the Veterans Benefits
Administration may purchase up to four passenger motor vehicles
for use in operations of that Administration in Manila, Philippines:
Provided further, That travel expenses for this account shall not
exceed $15,665,000.
NATIONAL CEMETERY ADMINISTRATION
For necessary expenses of the National Cemetery Administra-
tion for operations and maintenance, not otherwise provided for,
including uniforms or allowances therefor; cemeterial expenses as
authorized by law; purchase of one passenger motor vehicle for
use in cemeterial operations; and hire of passenger motor vehicles,
$121,169,000.
OFFICE OF INSPECTOR GENERAL
For necessary expenses of the Office of Inspector General in
carrying out the Inspector General Act of 1978, as amended,
$52,308,000.
CONSTRUCTION, MAJOR PROJECTS
For constructing, altering, extending and improving any of the
facilities under the jurisdiction or for the use of the Department
of Veterans Affairs, or for any of the purposes set forth in sections
316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122
of title 38, United States Code, including planning, architectural
and engineering services, maintenance or guarantee period services
costs associated with equipment guarantees provided under the
project, services of claims analysts, offsite utility and storm drainage
system construction costs, and site acquisition, where the estimated
cost of a project is $4,000,000 or more or where funds for a project
were made available in a previous major project appropriation,
$183,180,000, to remain available until expended, of which
$60,000,000 shall be for Capital Asset Realignment for Enhanced
Services (CARES) activities; and of which not to exceed $20,000,000
shall be for costs associated with land acquisitions for national
cemeteries in the vicinity of Sacramento, California; Pittsburgh,
Pennsylvania; and Detroit, Michigan: Provided, That of the amount
made available under this heading for CARES activities, up to
$40,000,000 shall be for construction of a blind and spinal cord
injury center at the Hines Veterans Affairs Medical Center pursuant
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to the Veterans Integrated Service Network (VISN) 12 CARES
study, and construction of such center is hereby deemed authorized
pursuant to title 38, United States Code: Provided further, That
the amounts designated in the previous proviso shall be available
for obligation only after the Secretary of Veterans Affairs has initi-
ated all actions necessary to implement fully Option B of the
July 19, 2001 VISN 12 Service Delivery Options after consulting
with interested and affected parties, and has initiated Phase II
of the CARES process: Provided further, That except for advance
planning activities, including needs assessments which may or may
not lead to capital investments, and other capital asset management
related activities, such as portfolio development and management
activities, and investment strategy studies funded through the
advance planning fund and the planning and design activities
funded through the design fund and CARES funds, including needs
assessments which may or may not lead to capital investments,
none of the funds appropriated under this heading shall be used
for any project which has not been approved by the Congress
in the budgetary process: Provided further, That funds provided
in this appropriation for fiscal year 2002, for each approved project
(except those for CARES activities and the three land acquisitions
referenced above) shall be obligated: (1) by the awarding of a
construction documents contract by September 30, 2002; and (2)
by the awarding of a construction contract by September 30, 2003:
Provided further, That the Secretary of Veterans Affairs shall
promptly report in writing to the Committees on Appropriations
any approved major construction project in which obligations are
not incurred within the time limitations established above: Provided
further, That no funds from any other account except the ‘‘Parking
revolving fund’’, may be obligated for constructing, altering,
extending, or improving a project which was approved in the budget
process and funded in this account until 1 year after substantial
completion and beneficial occupancy by the Department of Veterans
Affairs of the project or any part thereof with respect to that
part only.
CONSTRUCTION, MINOR PROJECTS
For constructing, altering, extending, and improving any of
the facilities under the jurisdiction or for the use of the Department
of Veterans Affairs, including planning and assessments of needs
which may lead to capital investments, architectural and
engineering services, maintenance or guarantee period services
costs associated with equipment guarantees provided under the
project, services of claims analysts, offsite utility and storm drainage
system construction costs, and site acquisition, or for any of the
purposes set forth in sections 316, 2404, 2406, 8102, 8103, 8106,
8108, 8109, 8110, 8122, and 8162 of title 38, United States Code,
where the estimated cost of a project is less than $4,000,000,
$210,900,000, to remain available until expended, along with unobli-
gated balances of previous ‘‘Construction, minor projects’’ appropria-
tions which are hereby made available for any project where the
estimated cost is less than $4,000,000, of which $25,000,000 shall
be for Capital Asset Realignment for Enhanced Services (CARES)
activities: Provided, That from amounts appropriated under this
heading, additional amounts may be used for CARES activities
upon notification of and approval by the Committees on Appropria-
tions: Provided further, That funds in this account shall be available
H. R. 2620—7
for: (1) repairs to any of the nonmedical facilities under the jurisdic-
tion or for the use of the department which are necessary because
of loss or damage caused by any natural disaster or catastrophe;
and (2) temporary measures necessary to prevent or to minimize
further loss by such causes.
PARKING REVOLVING FUND
For the parking revolving fund as authorized by 38 U.S.C.
8109, income from fees collected and $4,000,000 from the general
fund, both to remain available until expended, which shall be avail-
able for all authorized expenses except operations and maintenance
costs, which will be funded from ‘‘Medical care’’.
GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES
For grants to assist States to acquire or construct State nursing
home and domiciliary facilities and to remodel, modify or alter
existing hospital, nursing home and domiciliary facilities in State
homes, for furnishing care to veterans as authorized by 38 U.S.C.
8131–8137, $100,000,000, to remain available until expended.
GRANTS FOR CONSTRUCTION OF STATE VETERANS CEMETERIES
For grants to aid States in establishing, expanding, or
improving State veterans cemeteries as authorized by 38 U.S.C.
2408, $25,000,000, to remain available until expended.
ADMINISTRATIVE PROVISIONS
(INCLUDING TRANSFER OF FUNDS)
SEC. 101. Any appropriation for fiscal year 2002 for ‘‘Compensa-
tion and pensions’’, ‘‘Readjustment benefits’’, and ‘‘Veterans insur-
ance and indemnities’’ may be transferred to any other of the
mentioned appropriations.
SEC. 102. Appropriations available to the Department of Vet-
erans Affairs for fiscal year 2002 for salaries and expenses shall
be available for services authorized by 5 U.S.C. 3109.
SEC. 103. No appropriations in this Act for the Department
of Veterans Affairs (except the appropriations for ‘‘Construction,
major projects’’, ‘‘Construction, minor projects’’, and the ‘‘Parking
revolving fund’’) shall be available for the purchase of any site
for or toward the construction of any new hospital or home.
SEC. 104. No appropriations in this Act for the Department
of Veterans Affairs shall be available for hospitalization or examina-
tion of any persons (except beneficiaries entitled under the laws
bestowing such benefits to veterans, and persons receiving such
treatment under 5 U.S.C. 7901–7904 or 42 U.S.C. 5141–5204),
unless reimbursement of cost is made to the ‘‘Medical care’’ account
at such rates as may be fixed by the Secretary of Veterans Affairs.
SEC. 105. Appropriations available to the Department of Vet-
erans Affairs for fiscal year 2002 for ‘‘Compensation and pensions’’,
‘‘Readjustment benefits’’, and ‘‘Veterans insurance and indemnities’’
shall be available for payment of prior year accrued obligations
required to be recorded by law against the corresponding prior
year accounts within the last quarter of fiscal year 2001.
SEC. 106. Appropriations accounts available to the Department
of Veterans Affairs for fiscal year 2002 shall be available to pay
H. R. 2620—8
prior year obligations of corresponding prior year appropriations
accounts resulting from title X of the Competitive Equality Banking
Act, Public Law 100–86, except that if such obligations are from
trust fund accounts they shall be payable from ‘‘Compensation
and pensions’’.
SEC. 107. Notwithstanding any other provision of law, during
fiscal year 2002, the Secretary of Veterans Affairs shall, from the
National Service Life Insurance Fund (38 U.S.C. 1920), the Vet-
erans’ Special Life Insurance Fund (38 U.S.C. 1923), and the United
States Government Life Insurance Fund (38 U.S.C. 1955), reimburse
the ‘‘General operating expenses’’ account for the cost of administra-
tion of the insurance programs financed through those accounts:
Provided, That reimbursement shall be made only from the surplus
earnings accumulated in an insurance program in fiscal year 2002,
that are available for dividends in that program after claims have
been paid and actuarially determined reserves have been set aside:
Provided further, That if the cost of administration of an insurance
program exceeds the amount of surplus earnings accumulated in
that program, reimbursement shall be made only to the extent
of such surplus earnings: Provided further, That the Secretary
shall determine the cost of administration for fiscal year 2002,
which is properly allocable to the provision of each insurance pro-
gram and to the provision of any total disability income insurance
included in such insurance program.
SEC. 108. Notwithstanding any other provision of law, the
Department of Veterans Affairs shall continue the Franchise Fund
pilot program authorized to be established by section 403 of Public
Law 103–356 until October 1, 2002: Provided, That the Franchise
Fund, established by title I of Public Law 104–204 to finance
the operations of the Franchise Fund pilot program, shall continue
until October 1, 2002.
SEC. 109. Amounts deducted from enhanced-use lease proceeds
to reimburse an account for expenses incurred by that account
during a prior fiscal year for providing enhanced-use lease services,
may be obligated during the fiscal year in which the proceeds
are received.
SEC. 110. Funds available in any Department of Veterans
Affairs appropriation for fiscal year 2002 or funds for salaries
and other administrative expenses shall also be available to
reimburse the Office of Resolution Management and the Office
of Employment Discrimination Complaint Adjudication for all serv-
ices provided at rates which will recover actual costs but not exceed
$28,555,000 for the Office of Resolution Management and
$2,383,000 for the Office of Employment and Discrimination Com-
plaint Adjudication: Provided, That payments may be made in
advance for services to be furnished based on estimated costs:
Provided further, That amounts received shall be credited to ‘‘Gen-
eral operating expenses’’ for use by the office that provided the
service.
SEC. 111. The Secretary of Veterans Affairs shall treat the
North Dakota Veterans Cemetery, Mandan, North Dakota, as a
veterans cemetery owned by the State of North Dakota for purposes
of making grants to States in expanding or improving veterans
cemeteries under section 2408 of title 38, United States Code.
This section shall take effect on the date of enactment of this
Act, and shall apply with respect to grants under section 2408
of title 38, United States Code, that occur on or after that date.
H. R. 2620—9
TITLE II—DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
PUBLIC AND INDIAN HOUSING
HOUSING CERTIFICATE FUND
(INCLUDING TRANSFER AND RESCISSION OF FUNDS)
For activities and assistance to prevent the involuntary
displacement of low-income families, the elderly and the disabled
because of the loss of affordable housing stock, expiration of subsidy
contracts (other than contracts for which amounts are provided
under another heading in this Act) or expiration of use restrictions,
or other changes in housing assistance arrangements, and for other
purposes, $16,280,975,000, of which $640,000,000 shall be from
unobligated balances from amounts recaptured from fiscal year
2000 and prior years pursuant to a reduction in the amounts
provided for Annual Contributions Contract Reserve Accounts, and
amounts that are recaptured in this account to remain available
until expended: Provided, That not later than October 1, 2001,
the Department of Housing and Urban Development shall reduce
from 60 days to 30 days the amount of reserve funds made available
to public housing authorities: Provided further, That of the total
amount provided under this heading, $16,071,975,000, of which
$11,231,975,000 and the aforementioned recaptures shall be avail-
able on October 1, 2001 and $4,200,000,000 shall be available
on October 1, 2002, shall be for assistance under the United States
Housing Act of 1937, as amended (‘‘the Act’’ herein) (42 U.S.C.
1437 et seq.): Provided further, That the foregoing amounts shall
be for use in connection with expiring or terminating section 8
subsidy contracts, for amendments to section 8 subsidy contracts,
for enhanced vouchers (including amendments and renewals) under
any provision of law authorizing such assistance under section
8(t) of the Act (42 U.S.C. 1437f(t)), contract administrators, and
contracts entered into pursuant to section 441 of the McKinney-
Vento Homeless Assistance Act: Provided further, That amounts
available under the second proviso under this heading shall be
available for section 8 rental assistance under the Act: (1) for
the relocation and replacement of housing units that are demolished
or disposed of pursuant to the Omnibus Consolidated Rescissions
and Appropriations Act of 1996 (Public Law 104–134; Stat. 1321–
269); (2) for the conversion of section 23 projects to assistance
under section 8; (3) for funds to carry out the family unification
program; (4) for the relocation of witnesses in connection with
efforts to combat crime in public and assisted housing pursuant
to a request from a law enforcement or prosecution agency; (5)
for tenant protection assistance, including replacement and reloca-
tion assistance; and (6) for the 1-year renewal of section 8 contracts
for units in projects that are subject to approved plans of action
under the Emergency Low Income Housing Preservation Act of
1987 or the Low-Income Housing Preservation and Resident
Homeownership Act of 1990: Provided further, That of the total
amount provided under this heading, no less than $13,400,000
shall be transferred to the Working Capital Fund for the develop-
ment and maintenance of information technology systems: Provided
further, That of the total amount provided under this heading,
$143,979,000 shall be made available for incremental vouchers