[House Report 114-545]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-545
======================================================================
FISCAL YEAR 2016 DEPARTMENT OF VETERANS AFFAIRS SEISMIC SAFETY,
CONSTRUCTION, AND LEASES AUTHORIZATION ACT
_______
May 10, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Miller of Florida, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 4590]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 4590) to authorize the Secretary of Veterans
Affairs to carry out certain major medical facility projects
for which appropriations are being made for fiscal year 2016,
and for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 4
Background and Need for Legislation.............................. 4
Hearings......................................................... 10
Subcommittee Consideration....................................... 10
Committee Consideration.......................................... 10
Committee Votes.................................................. 11
Committee Oversight Findings..................................... 11
Statement of General Performance Goals and Objectives............ 11
New Budget Authority, Entitlement Authority, and Tax Expenditures 11
Earmarks and Tax and Tariff Benefits............................. 11
Committee Cost Estimate.......................................... 11
Congressional Budget Office Estimate............................. 12
Federal Mandates Statement....................................... 15
Advisory Committee Statement..................................... 15
Constitutional Authority Statement............................... 16
Applicability to Legislative Branch.............................. 16
Statement on Duplication of Federal Programs..................... 16
Disclosure of Directed Rulemaking................................ 16
Section-by-Section Analysis of the Legislation................... 16
Changes in Existing Law Made by the Bill as Reported............. 19
Amendment in the Nature of a Substitute
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fiscal Year 2016 Department of
Veterans Affairs Seismic Safety, Construction, and Leases Authorization
Act''.
SEC. 2. AUTHORIZATION OF CERTAIN MAJOR MEDICAL FACILITY PROJECTS OF THE
DEPARTMENT OF VETERANS AFFAIRS.
(a) Authorization.--The Secretary of Veterans Affairs may carry out
the following major medical facility projects, with each project to be
carried out in an amount not to exceed the amount specified for that
project:
(1) Seismic corrections to buildings, including retrofitting
and replacement of high-risk buildings, in San Francisco,
California, in an amount not to exceed $175,880,000.
(2) Seismic corrections to facilities, including facilities
to support homeless veterans, at the medical center in West Los
Angeles, California, in an amount not to exceed $100,250,000.
(3) Seismic corrections to the mental health and community
living center in Long Beach, California, in an amount not to
exceed $282,100,000.
(4) Construction of an outpatient clinic, administrative
space, cemetery, and columbarium in Alameda, California, in an
amount not to exceed $83,782,000.
(5) Realignment of medical facilities in Livermore,
California, in an amount not to exceed $188,650,000.
(6) Construction of a replacement community living center in
Perry Point, Maryland, in an amount not to exceed $92,700,000.
(7) Seismic corrections and other renovations to several
buildings and construction of a specialty care building in
American Lake, Washington, in an amount not to exceed
$13,830,000.
(b) Authorization of Appropriations for Construction.--There is
authorized to be appropriated to the Secretary of Veterans Affairs for
fiscal year 2016 or the year in which funds are appropriated for the
Construction, Major Projects, account, $937,192,000 for the projects
authorized in subsection (a).
(c) Limitation.--The projects authorized in subsection (a) may only
be carried out using--
(1) funds appropriated for fiscal year 2016 pursuant to the
authorization of appropriations in subsection (b);
(2) funds available for Construction, Major Projects, for a
fiscal year before fiscal year 2016 that remain available for
obligation;
(3) funds available for Construction, Major Projects, for a
fiscal year after fiscal year 2016 that remain available for
obligation;
(4) funds appropriated for Construction, Major Projects, for
fiscal year 2016 for a category of activity not specific to a
project;
(5) funds appropriated for Construction, Major Projects, for
a fiscal year before fiscal year 2016 for a category of
activity not specific to a project; and
(6) funds appropriated for Construction, Major Projects, for
a fiscal year after fiscal year 2016 for a category of activity
not specific to a project.
SEC. 3. SUBMISSION OF INFORMATION.
Not later than 90 days after the date of the enactment of this Act,
for each project authorized in section 2(a), the Secretary of Veterans
Affairs shall submit to the Committees on Veterans' Affairs of the
House of Representatives and the Senate the following information:
(1) A line item accounting of expenditures relating to
construction management carried out by the Department of
Veterans Affairs for such project.
(2) The future amounts that are budgeted to be obligated for
construction management carried out by the Department for such
project.
(3) A justification for the expenditures described in
paragraph (1) and the future amounts described in paragraph
(2).
(4) Any agreement entered into by the Secretary regarding the
Army Corps of Engineers providing services relating to such
project, including reimbursement agreements and the costs to
the Department of Veterans Affairs for such services.
SEC. 4. 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 an outpatient clinic, Ann Arbor, Michigan, an amount
not to exceed $17,093,000.
(2) For an outpatient mental health clinic, Birmingham,
Alabama, an amount not to exceed $6,971,000.
(3) For an outpatient specialty clinic, Birmingham, Alabama,
an amount not to exceed $10,479,000.
(4) For research space, Boston, Massachusetts, an amount not
to exceed $5,497,000.
(5) For research space, Charleston, South Carolina, an amount
not to exceed $6,581,000.
(6) For an outpatient clinic, Daytona Beach, Florida, an
amount not to exceed $12,664,000.
(7) For Chief Business Office Purchased Care office space,
Denver, Colorado, an amount not to exceed $17,215,000.
(8) For an outpatient clinic, Gainesville, Florida, an amount
not to exceed $4,686,000.
(9) For an outpatient clinic, Hampton Roads, Virginia, an
amount not to exceed $18,124,000.
(10) For research space Mission Bay, California, an amount
not to exceed $23,454,000.
(11) For an outpatient clinic, Missoula, Montana, an amount
not to exceed $7,130,000.
(12) For an outpatient clinic, Northern Colorado, Colorado,
an amount not to exceed $8,776,000.
(13) For an outpatient clinic, Ocala, Florida, an amount not
to exceed $5,279,000.
(14) For an outpatient clinic, Oxnard, California, an amount
not to exceed $6,297,000.
(15) For an outpatient clinic, Pike County, Georgia, an
amount not to exceed $5,757,000.
(16) For an outpatient clinic, Portland, Maine, an amount not
to exceed $6,846,000.
(17) For an outpatient clinic, Raleigh, North Carolina, an
amount not to exceed $21,607,000.
(18) For an outpatient clinic, Santa Rosa, California, an
amount not to exceed $6,498,000.
SEC. 5. MONTHLY REPORTS ON STATUS OF MAJOR MEDICAL FACILITY PROJECTS.
(a) Reports Required.--For each month that begins after the date of
the enactment of this Act, the Secretary shall submit to Congress a
report on the status of each major medical facility project authorized
under section 2. Each such report shall include, for each project
covered by the report, information about the status of the design and
procurement planning, contract modification management, and cost
escalation of the project.
(b) Termination.--The requirement to submit monthly reports under
this section shall terminate on the date on which the Administrative
Investigative Board of the Department of Veterans Affairs submits to
Congress the report of the Administrative Investigative Board on the
major medical facility project carried out at the Department medical
center in Aurora, Colorado.
SEC. 6. AUTHORIZATION OF SALE OF PERSHING HALL.
Section 403 of the Veterans' Benefits Programs Improvement Act of
1991 (Public Law 102-86; 38 U.S.C. 2400 note) is amended by adding at
the end the following new subsection:
``(f) Authorization of Sale.--(1) The Secretary may sell for fair
market value Pershing Hall and transfer and convey to the purchaser all
right, title, and interest of the United States in or to such property.
The Secretary shall determine fair market value based on an independent
assessment conducted by another department or agency of the Federal
Government or a nongovernmental entity. The Secretary may only accept
money as consideration for such sale.
``(2) If the Secretary sells Pershing Hall pursuant to paragraph (1),
the Secretary shall return to the entity from which the United States
acquired Pershing Hall pursuant to the Act of June 28, 1935, (Chapter
323; 49 Stat. 426) any personal property (including memorabilia
regarding General Pershing and the American Expeditionary Forces in
France during World War I) in the possession of the Department of
Veterans Affairs as of the date of the enactment of this subsection
that was located in Pershing Hall (or otherwise associated with
Pershing Hall) on the date of such acquisition.
``(3) The funds received by the Secretary pursuant to the sale of
Pershing Hall under paragraph (1) shall be deposited in the
`Construction, Major Projects' account of the Department and be made
available, without fiscal year limitation, for the purposes of such
account.
``(4)(A) Effective on the day after the date of the sale of Pershing
Hall authorized under paragraph (1), the authority of the Secretary to
carry out subsections (a), (b), (c), and (e) shall terminate except for
purposes of carrying out paragraph (2) of this subsection.
``(B) Effective on the date that is one year after the date of the
sale of Pershing Hall authorized under paragraph (1), the Pershing Hall
Revolving Fund shall be abolished and the corpus of the fund, including
accrued interest, shall be deposited in the `Construction, Major
Projects' account of the Department and be made available, without
fiscal year limitation, for the purposes of such account.''.
Purpose and Summary
H.R. 4590, the ``Fiscal Year 2016 Department of Veterans
Affairs Seismic Safety, Construction, and Leases Authorization
Act,'' was introduced by Representative Jeff Miller of Florida,
the Chairman of the Committee on Veterans' Affairs, on February
23, 2016. H.R. 4590, as amended, was ordered to be favorably
reported to the full House on February 25, 2016, by voice vote.
This legislation would authorize the Department of Veterans
Affairs (VA) to carry out fiscal year (FY) 2016 major medical
facility projects in San Francisco, California; West Los
Angeles, California; Long Beach, California; Alameda,
California; Livermore, California; Perry Point, Maryland; and,
American Lake, Washington, and require VA to submit a report to
Congress containing information on each of these projects. H.R.
4590, as amended, would also authorize VA to carry out major
medical facility leases in Ann Arbor, Michigan; Birmingham,
Alabama; Boston, Massachusetts; Charleston, South Carolina;
Daytona Beach, Florida; Denver, Colorado; Gainesville, Florida;
Hampton Roads, Virginia; Mission Bay, California; Northern
Colorado, Colorado; Ocala, Florida; Oxnard, California; Pike
County, Georgia; Portland, Maine; Raleigh, North Carolina; and,
Santa Rosa, California.
H.R. 4590, as amended, would further require VA to submit
monthly reports on the status of each major medical facility
project until the Administrative Investigation Board report on
the Denver replacement medical center project is submitted to
Congress.
Finally, H.R. 4590, as amended, would authorize VA to sell
the Pershing Hall property in Paris, France, for fair market
value. In order to proceed with such a sale, VA would be
required to conduct an independent appraisal of fair market
value and return any memorabilia in VA's possession to the
American Legion. One year following such a sale, VA would be
required to abolish the Pershing Hall Revolving Fund and
deposit the proceeds of the sale and the corpus of the
revolving fund into VA's major construction account.
Background and Need for Legislation
Section 2--Authorization of certain major medical facility projects of
the Department of Veterans Affairs
Section 8104(a)(2) of title 38, United States Code
(U.S.C.), requires Congressional authorization for VA major
medical facility projects. A ``major medical facility project''
is defined as a project for the construction, alteration, or
acquisition of a medical facility involving a total expenditure
of more than $10 million.\1\
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\1\38 U.S.C. Sec. 8104(a)(3)(A).
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Section 2 of the bill would authorize seven major medical
facility projects that were requested by VA in the FY 2016 VA
Budget Submission.\2\ As described below, if authorized, these
projects would: correct known seismic, infrastructure, and
life-safety deficiencies in existing VA buildings; increase
access to care for veteran patients; reduce congestion on VA
medical facility campuses by adding extra parking spaces;
demolish unused structures; and, consolidate clinical and
research space.
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\2\VA, FY 2016 Budget Submission, February 11, 2015, and VA, FY
2017 Budget Submission, February 12, 2016.
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San Francisco, California: This project would allow for the
correction of hazardous seismic, infrastructure, and life-
safety deficiencies in four high-risk buildings, consolidate
wet research lab space, and add 250 parking spaces on the San
Francisco VA Medical Center's campus, in an amount not to
exceed $175.9 million.
West Los Angeles, California: This project would allow for
the correction of seismic, life-safety, and Facility Condition
Assessment deficiencies in a number of buildings, demolition of
two unused buildings, and renovation of two buildings for
research purposes on the West Los Angeles VA Medical Center's
campus, in an amount not to exceed $100,250,000.
Long Beach, California: This project would allow for the
construction of a new 120-bed community living center, mental
health inpatient and outpatient facility, parking structure,
and a combined heat and power plant in place of several
seismically deficient buildings on the Long Beach VA Healthcare
System campus, in an amount not to exceed $282,100,000.
Alameda, California: This project would allow for the
consolidation of two existing outpatient clinic leases by
constructing a new outpatient clinic to provide primary,
specialty, mental health, substance abuse, and ambulatory
surgery care, administrative space for the National Cemetery
Administration and Veterans Benefits Administration, as well as
additional parking spaces, in an amount not to exceed
$83,782,000.
Livermore, California: This project would allow for the
purchase of land and the construction of a new community based
outpatient clinic and 120-bed community living center in
Fremont, California, the subsequent closure of the Livermore VA
Medical Center campus, and the renovation of existing space for
a minimally invasive procedure center at the Palo Alto VA
Medical Center, in an amount not to exceed $188,650,000.
Perry Point, Maryland: This project would allow for the
consolidation of community living center functions that are
currently housed in multiple out-of-date buildings by
constructing a new replacement community living center and
adding additional parking spaces on the Perry Point VA Medical
Center campus, in an amount not to exceed $92,700,000.
American Lake, Washington: This project would allow for the
construction of a new outpatient facility, the renovation of an
existing building to correct seismic deficiencies, and
additional parking spaces on the American Lake Division of the
VA Puget Sound Health Care System, in an amount not to exceed
$13,830,000.
Section 3--Submission of information
VA's management of its construction program has come under
intense scrutiny in recent years following a Government
Accountability Office report, which found that costs were
substantially increased and schedules were delayed for the
largest VA major medical facility construction projects in
Denver, Colorado; Las Vegas, Nevada; New Orleans, Louisiana;
and Orlando, Florida.\3\ According to testimony GAO provided to
the Committee in January and April 2015, these projects ranged
from 66 percent to 427 percent over budget and 14 months to 86
months behind schedule.\4\ In light of these findings, and
subsequent concerns about VA construction management, the
Committee has been aggressively overseeing the status of VA's
major medical facility construction projects.
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\3\GAO 13-302, GAO Report, ``VA Construction: Actions Needed to
Decrease Delays and Lower Costs of Major Medical Facility Projects,''
April 4, 2013.
\4\GAO-15-332T, GAO Testimony ``VA Construction: VA Actions to
Address Cost Increases and Schedule Delays at Major Medical-Facility
Projects,'' January 21, 2015; GAO-15-564T, GAO Testimony, ``VA
Construction: Actions to Address Cost Increases and Schedule Delays at
Denver and Other VA Major Medical-Facility Projects,'' April 24, 2015.
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Accordingly, section 3 of the bill would require VA to
submit to Congress, for each of the construction projects
authorized in Section 2 of the bill, a report including the
following: a line item accounting of construction management
expenditures for the project; future amounts that are budgeted
to be obligated for construction management for the project and
a justification for such expenditures; and details regarding
the agreement, if any, entered into by VA with the Army Corps
of Engineers to provide construction management services for
the project, to include reimbursement agreements and costs for
such agreements.
Section 4--Authorization of major medical facility leases
Section 8104(a)(2) of title 38, U.S.C., also requires
Congressional authorization for VA major medical facility
leases. A ``major medical facility lease'' is defined as a
lease for space for use as a new medical facility at an average
annual rental of more than $1 million.\5\
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\5\38 U.S.C. Sec. 8104(a)(3)(B).
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Section 4 of the bill would authorize eighteen major
medical facility leases that were requested by VA in the FY
2016 and FY 2017 VA Budget Submission.\6\
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\6\VA, FY 2016 Budget Submission, February 11, 2015, and VA, FY
2017 Budget Submission, February 12, 2016.
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Ann Arbor, Michigan: This lease would allow for an
outpatient clinic in Ann Arbor, Michigan, to support the VA Ann
Arbor Healthcare System by providing primary care, mental
health care, and certain specialty care services through an
outpatient clinic lease, in an amount not to exceed
$17,093,000.
Birmingham, Alabama: This lease would allow for an
outpatient clinic in Birmingham, Alabama, to support the
Birmingham VA Medical Center by addressing outpatient mental
health space, utilization gaps, and safety and security
concerns, and providing more functional space for veteran
patients through an outpatient mental health clinic lease, in
an amount not to exceed $6,971,000.
Birmingham, Alabama: This lease would allow for an
outpatient specialty clinic in Birmingham, Alabama, to support
the Birmingham VA Medical Facility by addressing space and
utilization gaps and providing optometry, dental, cardiology,
gastroenterology, dermatology, ambulatory surgery, radiology,
and other ancillaryand diagnostic care through an outpatient
specialty clinic lease, in an amount not to exceed $10,479,000.
Boston, Massachusetts: This lease would allow for research
space in Boston, Massachusetts, to support the VA Boston
Healthcare System by addressing space and security deficiencies
and providing space for research on a number of subjects
through a research lease, in an amount not to exceed
$5,497,000.
Charleston, South Carolina: This lease would allow for
research space in Charleston, South Carolina, to support the
Ralph H. Johnson VA Medical Center by providing specialized
space for full wet labs, animal research, and associated
administrative space through a research lease, in an amount not
to exceed $6,581,000.
Daytona Beach, Florida: This lease would allow for an
outpatient clinic in Daytona Beach, Florida, to support the
Orlando VA Medical Center by consolidating two existing
outpatient clinics and closing space, utilization, and parking
gaps through an outpatient clinic lease, in an amount not to
exceed $12,664,000.
Denver, Colorado: This lease would allow for additional
space to support the Chief Business Office Purchased Care
activities in Denver, Colorado, by providing general office
space through a replacement Chief Business Office, Purchased
Care lease, in an amount not to exceed $17,215,000.
Gainesville, Florida: This lease would allow for an
outpatient clinic in Gainesville, Florida, to support the
Malcolm Randall VA Medical Center by consolidating three
existing mental health clinic leases and addressing space and
utilization gaps through an outpatient clinic lease, in an
amount not to exceed $4,686,000.
Hampton Roads, Virginia: This lease would allow for an
outpatient clinic in Hampton Roads, Virginia, to support the
Hampton VA Medical Center by closing space and utilization
gaps, expanding primary care, mental health care, and eye
clinic services, and providing new space for a number of
clinical services through an outpatient clinic lease, in an
amount not to exceed $18,124,000.
Mission Bay, California: This lease would allow for
research space in Mission Bay, California, to support the San
Francisco VA Medical Center by addressing space deficiencies,
allowing for increased collaboration with academic affiliates,
and providing space for the creation of a Center for Virtual
Medicine through a research lease, in an amount not to exceed
$23,454,000.
Missoula, Montana: This lease would allow for an outpatient
clinic in Missoula, Montana, to support the VA Montana
Healthcare System by improving continuity of care, closing
space and utilization gaps, consolidating administrative space,
and expanding space for a number of clinic services through an
outpatient clinic lease, in an amount not to exceed $7,130,000.
Northern Colorado, Colorado: This lease would allow for
Cheyenne VA Medical Center by consolidating existing
administrative and community based outpatient clinic leases,
generating operational efficiencies, expanded specialty care
services, and accommodating increased workload through an
outpatient clinic lease, in an amount not to exceed $8,776,000.
Ocala, Florida: This lease would allow for an outpatient
clinic in Ocala, Florida, to support the Malcolm Randall VA
Medical Center by closing space and utilization gaps,
consolidating two existing outpatient leases, and expanding
space for primary care, mental health care, and home based
primary care through an outpatient clinic lease, in an amount
not to exceed $5,279,000.
Oxnard, California: This lease would allow for an
outpatient clinic in Oxnard, California, to support the West
Los Angeles VA Medical Center by replacing existing clinical
space, increasing access to specialty care services, addressing
space, utilization, and access gaps, and expanding primary care
and mental health care through an outpatient clinic lease, in
an amount not to exceed $6,297,000.
Pike County, Georgia: This lease would allow for an
outpatient clinic in Pike County, Georgia, to support the
Dublin VA Medical Center by closing space, utilization, and
access gaps, expanding primary care and mental health care, and
providing for new specialty services through an outpatient
clinic lease, in an amount not to exceed $5,757,000.
Portland, Maine: This lease would allow for an outpatient
clinic in Portland, Maine, to support the VA Maine Healthcare
System by consolidating existing community based outpatient
clinic leases, closing space, utilization, and access gaps, and
expanding services for a number of specialty care services
through an outpatient clinic lease, in an amount not to exceed
$6,846,000.
Raleigh, North Carolina: This lease would allow for an
outpatient clinic in Raleigh, North Carolina, to support the
Durham VA Medical Center by consolidating existing clinic lease
space, closing space and utilization gaps, enhancing primary
care, mental health care, dialysis, and limited specialty care
services, and allowing for a number of new clinic services
through an outpatient clinic lease, in an amount not to exceed
$21,607,000.
Santa Rosa, California: This lease would allow for an
outpatient clinic in Santa Rosa, California, to support the San
Francisco VA Medical Center by enhancing existing primary care
and mental health care and allowing for a number of new
clinical services through an outpatient clinic lease in an
amount not to exceed $6,498,000.
Section 5--Monthly reports on the status of major medical facility
projects
With the enactment of section 213 of the Veterans Health
Care, Capital Asset, and Business Improvement Act of 2003
(Public Law 108-170, 117 Stat. 2042), Congress authorized VA to
carry out advance planning for a major medical facility
project--to be operated jointly with the Department of Defense
(DOD)--in Denver, Colorado, in an amount not to exceed $30
million, with $26 million to be provided by VA and $4 million
to be provided by DOD. With the enactment of section 801 of the
Veterans Benefits, Health Care, and Information Technology Act
of 2006 (Public Law 109-461, 120 Stat. 3403), Congress
authorized VA to construct a standalone replacement medical
center in Denver, Colorado, in an amount not to exceed $98
million. That amount was raised from $98 million to $568.4
million in 2008 with the enactment of section 702 of the
Veterans' Mental Health and Other Care Improvements Act of
2008, (Public Law 110-387, 122 Stat. 4110) and from $568.4
million to $800 million in 2010 with the enactment of section
901 of the Caregivers and Veterans Omnibus Health Services Act
of 2010, (Public Law 111-163, 124 Stat. 1130). On August 31,
2010, VA awarded a contract to Kiewit Turner (KT) to construct
the project.
In December 2014, the Civilian Board of Contract Appeals
(CBCA) found VA to be in breach of its contract with KT, and VA
subsequently requested an additional $830 million in funding
for the Denver project, for a total authorization of $1.73
billion.\7\ Congress authorized those additional funds with the
enactment of section 2 of the Construction Authorization and
Choice Improvement Act (Public Law 114-19, 129 Stat. 215),
section 1 of Public Law 114-25 (129 Stat. 317), and section 501
of the Department of Veterans Affairs Expiring Authorities Act
of 2015 (Public Law 114-58, 129 Stat. 530). VA subsequently
transferred management of the project from VA to the U.S. Army
Corps of Engineers and is expected to be complete in 2018--15
years after Congress first authorized the Department to begin
planning it.
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\7\This amount was later refined, ultimately amounting to a request
for a total authorization of $1.675 billion.
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Given the unprecedented cost overruns and schedule delays
that occurred on the Denver project, the Committee has
repeatedly sought answers from VA about how the senior leaders
responsible for managing the project were going to be held
accountable. In response, VA empaneled an Administrative
Investigation Board (AIB) to investigate senior leadership
decisions and actions related to the project leading up to the
initial contract award on August 31, 2010, and through the life
of the project up to the CBCA decision on December 9, 2014.
However, it was not until March 22, 2016, nearly one month
after H.R. 4590, as amended, was reported to the full House,
that the AIB report was provided to the Committee.
Section 3 of the bill would state that VA is required to
submit monthly reports to Congress on the status of each major
medical facility project to include information regarding the
status of the design and procurement planning, contract
modification management, and cost escalation of each project
until the AIB report on the Denver replacement medical center
project is submitted to Congress.
Section 6--Authorization of sale of Pershing Hall
Pershing Hall, located in Paris, France, was purchased by
the American Legion in 1918 to serve as a memorial building for
the Allied Expeditionary Forces. With the enactment of section
403 of the Veterans' Benefits Programs Improvement Act of 1991
(Public Law 102-86, 105 Stat. 414), Congress transferred
Pershing Hall to VA and authorized VA to enter into
agreements--to include leasing portions of the facility for up
to 35 years--for the operation, development, and improvement of
Pershing Hall. With the enactment of section 4 of Public Law
103-79 (107 Stat. 770) in 1993, Congress increased the
allowable lease term from up to 35 years to up to 99 years. VA
entered into a 99-year lease with the current lessee in 1998 in
accordance with this authority. According to VA testimony
before the Committee in December 2015, the current lessee is a
private developer who has made significant improvements to
Pershing Hall, which is now used as luxury hotel, restaurant,
and club in addition to a memorial.
Section 6 of the bill would authorize VA to sell Pershing
Hall for fair market value, as determined by an independent
appraisal of the property. In the event of a sale, Section 6 of
the bill would require VA to return any memorabilia in its
possession to the American Legion and, one year after the date
of such a sale, to abolish the Pershing Hall Revolving Fund and
deposit the proceeds of the sale and the corpus of the
revolving fund into VA's major construction account.
Hearings
There were no Full Committee hearings held on H.R. 4590, as
amended. On December 8, 2015, the Subcommittee on Health
conducted a legislative hearing on various bills, including a
draft bill to amend the Veterans' Benefits Programs Improvement
Act of 1991 to authorize VA to sell Pershing Hall and a VA
legislative proposal to authorize FY 2016 construction
projects. Both the draft bill and the VA legislative proposal
were later incorporated into H.R. 4590, as amended.
The following witnesses testified:
The Honorable John Shimkus of Illinois; The Honorable
Ted Lieu of California; the Honorable John L. Mica of
Florida; the Honorable Jerry McNerney of California;
the Honorable Mike Coffman of Colorado; Raymond C.
Kelley, the Director of the National Legislative
Service for the Veterans of Foreign Wars of the United
States; Howard Trace, the Director of the National
Library and Museum Division, for the American Legion,
accompanied by Lou Celli, the Director of the National
Veterans Affairs and Rehabilitation Division of the
American Legion; and, Stella S. Fiotes, the Director of
the Office of Construction and Facilities Management
for the Office of Acquisition, Logistics, and
Construction for the U.S. Department of Veterans
Affairs, accompanied by Vince Kane, the Special
Assistant to the Secretary for the U.S. Department of
Veterans Affairs.
A Statement for the record was submitted by:
The Brentwood Village Business Improvement District and
the Brentwood Village Chamber of Commerce.
Subcommittee Consideration
There were no Subcommittee markups of H.R. 4590, as
amended.
Committee Consideration
On February 25, 2016, the Full Committee met in open markup
session, a quorum being present, and ordered H.R. 4590, as
amended, to be reported favorably to the House of
Representatives by voice vote.
During consideration of H.R. 4590 the following amendments
were considered and agreed to by voice vote:
An amendment offered by Representative Mike Coffman of
Colorado which would: (1) authorize VA to sell Pershing Hall
for fair market value, as determined by an independent
appraisal; (2) require VA to return any memorabilia in its
possession to the American Legion in the event of a sale of
Pershing Hall; and (3) abolish the Pershing Hall Revolving Fund
one year after the date of the sale of Pershing Hall and
deposit the proceeds from the sale and the corpus of the
revolving fund into VA's major construction account.
An amendment offered by Representative Kathleen Rice of New
York which would: (1) require VA to submit monthly reports to
Congress on the status of each major medical facility project
to include information regarding the status of design and
procurement planning, contract modification management, and
cost escalation; and (2) terminate the above monthly reporting
requirement when VA submits the Administrative Investigation
Board report on the Denver replacement medical center project
to Congress.
Committee Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, there were no recorded votes
taken on amendments or in connection with ordering H.R. 4590,
as amended, reported to the House. A motion by Ranking Member
Corrine Brown of Florida to report H.R. 4590, as amended,
favorably to the House of Representatives was agreed to by
voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are that the Secretary will use these
provisions to complete numerous major medical facility
projects, enter into numerous major medical facility leases,
and have the ability to sell Pershing Hall.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 4590, as amended, does not contain any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
4590, as amended, prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 4590, as amended, provided by the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 15, 2016.
Hon. Jeff Miller,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4590, the Fiscal
Year 2016 Department of Veterans Affairs Seismic Safety,
Construction, and Leases Authorization Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Ann E.
Futrell.
Sincerely,
Keith Hall.
Enclosure.
H.R. 4590--Fiscal Year 2016 Department of Veterans Affairs Seismic
Safety, Construction, and Leases Authorization Act
Summary: H.R. 4590 would authorize the Department of
Veterans Affairs (VA) to enter into leases for major medical
facilities at 18 specified locations and would authorize
appropriations of $134 million to cover the initial costs of
those leases. CBO estimates that the full cost of those leases
would be $904 million--$770 million more than the authorized
amounts. Based on VA's long-established practice, CBO expects
that the department would implement the authority to enter into
leases by awarding contracts for the construction and long-term
use of those facilities without recording the full amount of
the government's commitment as an obligation of its
appropriated funds. Thus, enacting H.R. 4590 would effectively
provide mandatory budget authority for an amount of obligations
that exceeds what we expect VA initially would charge against
its appropriation.
In addition, the bill would allow VA to sell the Pershing
Hall facility in Paris, France, and would authorize new
construction and renovation of seven medical facilities for
which funds have already been appropriated.
CBO estimates that implementing the bill would have a
discretionary cost of $134 million over the 2017-2021 period,
assuming appropriation of the specified amounts. CBO also
estimates that enacting H.R. 4590 would increase direct
spending by $770 million over the 2016-2026 period. Because the
bill would affect direct spending, pay-as-you-go procedures
apply. Enacting the bill would not affect revenues.
CBO estimates that enacting H.R. 4590 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
H.R. 4590 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 4590 is shown in the table below. The
costs of this legislation fall within budget function 700
(veterans benefits and services).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017-2021 2017-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level............................... * * 134 * * * * * * * 134 134
Estimated Outlays................................. * * 121 13 * * * * * * 134 134
INCREASES IN DIRECT SPENDING
Estimated Budget Authority........................ 0 0 770 0 0 0 0 0 0 0 770 770
Estimated Outlays................................. 0 0 39 208 254 193 76 0 0 0 501 770
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.
Basis of estimate: For this estimate, CBO assumes that H.R.
4590 will be enacted near the beginning of fiscal year 2017,
the estimated amounts will be appropriated each year, and
outlays will follow historical spending patterns for affected
programs.
Medical facility leases
Section 4 would authorize VA to acquire the use of 18
medical facilities and would set a limit on the total cost of
each lease. The section also would authorize appropriations of
$134 million for those leases. VA classifies its contracts for
acquiring such facilities as operating leases and thus records
its obligations for lease payments on an annual basis over the
term of the lease. However, CBO has reviewed a number of those
contracts and has concluded that they are akin to government
purchases of facilities built specifically for VA's use--but
instead of being financed by the Treasury, they rely on third-
party financing (that is, funds raised by a nonfederal entity),
which is generally more expensive.\1\ That conclusion is based
on those leases having many of the following key features:
---------------------------------------------------------------------------
\1\For more information on the budgetary treatment of third-party
financing, see Congressional Budget Office, Third-Party Financing of
Federal Projects (June 2005), www.cbo.gov/publication/16554.
---------------------------------------------------------------------------
The facilities are designed and constructed to the
unique specifications of the government;
The facilities are constructed at the request of
the federal government;
The leases on the newly constructed facilities are
long term--usually 20 years;
Payments from the federal government are the only
or primary source of income for the facilities;
The term of the contractual agreements coincides
with the term of the private partner's financing instrument for
developing and constructing the facility (that is, a facility
financed with a 20-year bond will have a 20-year lease term);
The federal government commits to make fixed
annual payments that are sufficient to service the debt
incurred to develop and construct the facility, regardless of
whether the agency continues to occupy the facility during the
guaranteed term of the lease; and
The fixed payments over the life of the lease are
sufficient to retire the debt for the facility.\2\
---------------------------------------------------------------------------
\2\See the statement of Robert A. Sunshine, Deputy Director,
Congressional Budget Office, The Budgetary Treatment of Medical
Facility Leases by the Department of Veterans Affairs, before the House
Committee on Veterans' Affairs, (June 27, 2013), www.cbo.gov/
publication/44368.
---------------------------------------------------------------------------
Thus, although those transactions are structured as leases,
they are essentially government purchases. Under the normal
procedures governing the budgetary treatment of the purchase of
capital assets, budget authority should be available and
obligations should be recorded at the time the acquisitions are
initiated and amounts recorded should equal the full
development and construction costs of the medical facilities.
Instead, VA records a small fraction of those costs as
obligations when it awards the contracts for such transactions.
To the extent that the full costs of developing and
constructing the facilities exceeds the relatively small amount
that VA would initially record as obligations against its
appropriation, CBO treats the legislative authorization for
those transactions as contract authority--a type of budget
authority that allows an agency to enter into a contract and
incur an obligation before receiving an appropriation for those
activities. Because the contract authority would be provided in
this authorizing bill, rather than in an appropriation act, the
resulting spending is categorized as direct spending (as
distinguished from discretionary spending, which results from
appropriation acts).
On the basis of information from VA, CBO estimates that the
full cost of constructing the 18 medical facilities would be
$904 million; the contracts for those facilities would be
entered into in 2018; VA would record obligations of $134
million during 2018 as it entered into those contracts; and
construction of those facilities would occur over the 2019-2023
period. Thus, CBO estimates that implementing section 4 would
result in discretionary costs totaling $134 million, subject to
appropriation of the specified amounts.
In addition, CBO estimates that enacting section 4 would
increase direct spending by $770 million over the 2017-2021
period. That estimate reflects the additional budget authority
needed to cover the full amount of the government's commitment
for the costs of developing and constructing the facilities (in
addition to the $134 million that CBO estimates would be
charged against VA's discretionary appropriations when the
contracts were awarded).
Major medical facility projects
Section 2 would authorize VA to construct and renovate
seven medical facilities at a cost of no more than $937
million. Because appropriations in those amounts and for those
purposes have already been provided, CBO estimates no
additional cost for implementing that section.
Pershing Hall
Section 6 would authorize VA to sell its Pershing Hall
facility in Paris, France. That property is currently leased
through 2098, limiting the number of parties who would be
interested in acquiring it. On the basis of currently available
information, CBO is unable to project when or if VA would sell
Pershing Hall. However, the bill would require that any
receipts from the disposal of the property be deposited in a
department account and be available for the purposes of that
account without further appropriation action. Thus, CBO
estimates that enacting that section would have no net
budgetary effect.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4590 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON FEBRUARY 25,2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016-2021 2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact................ 0 0 0 39 208 254 193 76 0 0 0 501 770
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increase in long-term direct spending and deficits: CBO
estimates that enacting H.R. 4590 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2027.
Intergovernmental and private-sector impact: H.R. 4590
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal costs: Ann E. Futrell; Impact
on state, local, and tribal governments: Jon Sperl; Impact on
the private sector: Paige Piper/Bach.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 4590, as amended, prepared by the
Director of the Congressional Budget Office pursuant to section
423 of the Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
4590, as amended.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, H.R. 4590, as amended, is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Applicability to Legislative Branch
The Committee finds that H.R. 4590, as amended, does not
relate to the terms and conditions of employment or access to
public services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Statement on Duplication of Federal Programs
Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015),
the Committee finds that no provision of H.R. 4590, as amended,
establishes or reauthorizes a program of the Federal Government
known to be duplicative of another Federal program, a program
that was included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139, or a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance.
Disclosure of Directed Rulemaking
Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015),
the Committee estimates that H.R. 4590, as amended, contains no
directed rule making that would require the Secretary to
prescribe regulations.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 of the bill would provide the short title for
H.R. 4590, as amended, as the ``Fiscal Year 2016 Department of
Veterans Affairs Seismic Safety, Construction, and Leases
Authorization Act.''
Section 2--Authorization of certain major medical facility projects of
the Department of Veterans Affairs
Section 2(a) of the bill would authorize the Secretary of
Veterans Affairs to carry out the following major medical
facility projects: seismic corrections to buildings including
retrofitting and replacement of high-risk buildings, in San
Francisco, California, in an amount not to exceed $175,880,000
million; seismic corrections to facilities, including
facilities to support homeless veterans, at the medical center
in West Los Angeles, California, in an amount not to exceed
$100,250,000; seismic corrections to the mental health and
community living center in Long Beach, California, in an amount
not to exceed $282,100,000; construction of an outpatient
clinic, administrative space, cemetery, and columbarium in
Alameda, California, in an amount not to exceed $83,782,000;
realignment of medical facilities in Livermore, California, in
an amount not to exceed $188,650,000; construction of a
replacement community living center in Perry Point, Maryland,
in an amount not to exceed $93,700,000; and, seismic
corrections and other renovations to several buildings and
construction of a specialty care building in American Lake,
Washington, in an amount not to exceed $13,830,000.
Section 2(b) of the bill would authorize $937,192,000 to be
appropriated to the Secretary of Veterans Affairs for fiscal
year 2016 or the year in which funds are appropriated for the
Construction, Major Projects, account for the projects
authorized in subsection (a).
Section 2(c) of the bill would stipulate that the projects
authorized in subsection (a) may only be carried out using: (1)
funds appropriated for fiscal year 2016 pursuant to the
authorization of appropriations in subsection (b); (2) funds
available for Construction, Major Projects, for a fiscal year
before fiscal year 2016 that remain available for obligating;
(3) funds available for Construction, Major Projects, for a
fiscal year after fiscal year 2016 that remain available for
obligation; (4) funds appropriated for Construction, Major
Projects, for fiscal year 2016 for a category of activity not
specific to a project; (5) funds appropriated for Construction,
Major Projects, for a fiscal year before fiscal year 2016 for a
category of activity not specific to a project; and (6) funds
appropriated for Construction, Major Projects, for a fiscal
year after fiscal year 2016 for a category of activity not
specific to a project.
Section 3--Submission of information
Section 3 of the bill would require the Secretary of
Veterans Affairs, no later than 90 days after enactment and for
each project authorized in Section 2(a), to submit to the House
and Senate Committees on Veterans' Affairs: a line item
accounting of expenditures, along with their justifications,
relating to construction management carried out by VA for such
project; the future amounts, along with their justifications,
that are obligated for construction management carried out by
VA for such project; and any agreement entered into by the
Secretary regarding the Army Corps of Engineers providing
services relating to such project, including reimbursement
agreements and VA's costs for such services.
Section 4--Authorization of major medical facility leases
Section 4 of the bill would authorize the Secretary of
Veterans Affairs to carry out the following major medical
facility leases: for an outpatient clinic, Ann Arbor, Michigan,
an amount not to exceed $17,093,000; for an outpatient mental
health clinic, Birmingham, Alabama, an amount not to exceed
$6,971,000; for an outpatient specialty clinic, Birmingham,
Alabama, an amount not to exceed $10,479,000; for research
space, Boston, Massachusetts, an amount not to exceed
$5,497,000; for research space, Charleston, South Carolina, an
amount not to exceed $6,581,000; for an outpatient clinic,
Daytona Beach, Florida, an amount not to exceed $12,664,000;
for Chief Business Office Purchased Care Office Space, Denver,
Colorado, an amount not to exceed $17,215,000; for an
outpatient clinic, Gainesville, Florida, an amount not to
exceed $4,686,000; for an outpatient clinic, Hampton Roads,
Virginia, an amount not to exceed $18,124,000; for research
space, Mission Bay, California, an amount not to exceed
$23,454,000; for an outpatient clinic, Missoula, Montana, an
amount not to exceed $7,130,000; for an outpatient clinic,
Northern Colorado, Colorado, an amount not to exceed
$8,776,000; for an outpatient clinic, Ocala, Florida, an amount
not to exceed $5,279,000; for an outpatient clinic, Oxnard,
California, an amount not to exceed $6,297,000; for an
outpatient clinic, Pike County, Georgia, an amount not to
exceed $5,757,000; for an outpatient clinic, Portland, Maine,
an amount not to exceed $6,846,000; for an outpatient clinic,
Raleigh, North Carolina, an amount not to exceed $21,607,000;
and, for an outpatient clinic, Santa Rosa, California, an
amount not to exceed $6,498,000.
Section 5--Monthly reports on the status of major medical facility
projects
Section 5(a) of the bill would require the Secretary of
Veterans Affairs, after enactment, to submit a monthly report
to Congress on the status of each major medical facility
project authorized under Section 2 to include information about
the status of the design and procurement planning, contract
modification management, and cost escalation of the project.
Section 5(b) of the bill would stipulate that the reporting
requirement in Section 5(a) would terminate on the date on
which the VA Administrative Investigation Board submits to
Congress the report Administrative Investigation Board on the
major medical facility project carried out at the VA medical
center in Aurora, Colorado.
Section 6--Authorization of sale of Pershing Hall
Section 6 of the bill would amend section 403 of the
Veterans' Benefits Programs Improvement Act of 1991 (Public Law
102-86; 38 U.S.C. 2400 note) by adding at the end a new
subsection ``(f) Authorization of Sale.''
The new subsection (f)(1) would authorize the Secretary of
Veterans Affairs to sell Pershing Hall for fair market value
and transfer and convey to the purchaser all right, title, and
interest of the United States in or to the property, provided
such sale is completed in exchange for money as consideration.
It would also require the Secretary of Veterans Affairs to
determine fair market value based on an independent assessment
conducted by another department or agency of the Federal
Government or a nongovernmental entity.
The new subsection (f)(2) would require the Secretary of
Veterans Affairs, upon the sale of Pershing Hall, to return to
the entity from which the United States acquired Pershing Hall
pursuant to the Act of June 28, 1935, (Chapter 323; 49 Stat.
426) any personal property (including memorabilia regarding
General Pershing and the American Expeditionary Forces in
France during World War I) in VA's possession as of the date of
enactment of this subsection that was located in Pershing Hall
(or otherwise associated with Pershing Hall) on the date of
such acquisition.
The new subsection (f)(3) would require that the funds
received by the Secretary pursuant to the sale of Pershing Hall
shall be deposited in VA's Construction, Major Projects
account, and be made available, without fiscal year limitation,
for the purposes of such account.
The new subsection (f)(4) would state that the authority of
the Secretary of Veterans Affairs to carry out subsections (a),
(b), (c), and (e) terminates on the day after the date of the
sale of Pershing Hall, except for the purposes of carrying out
paragraph (2) of this subsection. This subsection would also
require the Pershing Hall Revolving Fund to be abolished and
the corpus of the fund, including accrued interest, to be
deposited in VA's Construction, Major Projects account and be
made available, without fiscal year limitation, for the
purposes of such account, effective on the date that is one
year after the date of sale of Pershing Hall.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
SECTION 403 OF THE VETERANS' BENEFITS PROGRAMS IMPROVEMENT ACT OF 1991
SEC. 403. PERSHING HALL, PARIS, FRANCE.
(a) In General.--Pershing Hall, an existing memorial in
Paris, France, owned by the United States, together with the
personal property of such memorial, is hereby placed under the
jurisdiction, custody, and control of the Department of
Veterans Affairs so that the memorial to the commander-in-
chief, officers, men, and auxiliary services of the American
Expeditionary Forces in France during World War I may be
continued in an appropriate manner and financial support be
provided therefor.
(b) Administration.--(1)(A) The Secretary of Veterans Affairs
shall administer, operate, develop, and improve Pershing Hall
and its site in such manner as the Secretary determines is in
the best interests of the United States, which may include use
of Pershing Hall to meet the needs of veterans. To meet such
needs, the Secretary may establish and operate a regional or
other office to disseminate information, respond to inquiries,
and otherwise assist veterans and their families in obtaining
veterans' benefits.
(B) To carry out the purposes of this section, the Secretary
may enter into agreements authorized by subsection (c) to fund
the operation of the memorial and projects authorized by
subsection (d)(6).
(2)(A) The Secretary shall, after consultation with the
American Battle Monuments Commission, provide for a portion of
Pershing Hall to be specifically dedicated, with appropriate
exhibitions and monuments, to the memory of the commander-in-
chief, officers, men, and auxiliary services of the American
Expeditionary Forces in France during World War I.
(B) The establishment and continuing supervision of the
memorial that is dedicated pursuant to subparagraph (A) shall
be carried out by the American Battle Monuments Commission.
(3) To the extent that funds are available in the Pershing
Hall Revolving Fund established by subsection (d), the
Secretary may incur such expenses with respect to Pershing Hall
as the Secretary determines necessary or appropriate.
(4) The Secretary of Veterans Affairs may provide the
allowances and benefits described in section 707 of title 38,
United States Code, to personnel of the Department of Veterans
Affairs who are United States citizens and are assigned by the
Secretary to Pershing Hall.
(c) Leases.--(1) The Secretary may enter into agreements as
the Secretary determines necessary or appropriate for the
operation, development, and improvement of Pershing Hall and
its site, including the leasing of portions of the Hall for
terms not to exceed 99 years in areas that are newly
constructed or substantially rehabilitated and for not to
exceed 20 years in other areas of the Hall.
(2) Leases entered into by the Secretary under this
subsection shall be for consideration in the form of cash or
in-kind, or a combination of the two, as determined by the
Secretary, which shall include the value of space leased back
to the Secretary by the lessee, net of rent paid by the
Secretary, and the present value of the residual interest of
the Secretary at the end of the lease term.
(d) Fund.--(1) There is hereby established the Pershing Hall
Revolving Fund to be administered by the Secretary of Veterans
Affairs.
(2) There shall be transferred to the Pershing Hall Revolving
Fund, at such time or times as the Secretary may determine
without limitation as to year, amounts as determined by the
Secretary, not to exceed $1,000,000 in total, from funds
appropriated to the Department of Veterans Affairs for the
construction of major projects. The account from which any such
amount is transferred shall be reimbursed promptly from other
funds as they become part of the Pershing Hall Revolving Fund.
(3) The Pershing Hall Memorial Fund, established in the
Treasury of the United States pursuant to section 2 of the Act
of June 28, 1935 (Public Law 74-171; 49 Stat. 426), is hereby
abolished and the corpus of the fund, including accrued
interest, is transferred to the Pershing Hall Revolving Fund.
(4) Funds received by the Secretary from operation of
Pershing Hall or from any lease or other agreement with respect
to Pershing Hall shall be deposited in the Pershing Hall
Revolving Fund.
(5) The Secretary of the Treasury shall invest any portion of
the Revolving Fund that, as determined by the Secretary of
Veterans Affairs, is not required to meet current expenses of
the Fund. Each investment shall be made in an interest bearing
obligation of the United States or an obligation guaranteed as
to principal and interest by the United States that, as
determined by the Secretary of Veterans Affairs, has a maturity
suitable for the Revolving Fund. The Secretary of the Treasury
shall credit to the Revolving Fund the interest on, and the
proceeds from the sale or redemption of, such obligations.
(6)(A) Subject to subparagraphs (B) and (C), the Secretary of
Veterans Affairs may expend not more than $100,000 from the
Fund in any fiscal year upon projects, activities, and
facilities determined by the Secretary to be in keeping with
the mission of the Department.
(B) An expenditure under subparagraph (A) may be made only
from funds that will remain in the Fund in any fiscal year
after payment of expenses incurred with respect to Pershing
Hall for such fiscal year and only after the reimbursement of
all amounts transferred to the Fund under subsection (d)(2) has
been completed.
(C) An expenditure authorized by subparagraph (A) shall be
reported by the Secretary to the Congress no later than
November 1 of each year for the fiscal year ending on the
previous September 30.
(e) Waiver.--The Secretary may carry out the provisions of
this section without regard to section 8122 of title 38, United
States Code, subchapter II of chapter 5 of title 40, United
States Code, sections 541 through 555 and 1302 of title 40,
United States Code, or any other provision of law inconsistent
with this section.
(f) Authorization of Sale.--(1) The Secretary may sell for
fair market value Pershing Hall and transfer and convey to the
purchaser all right, title, and interest of the United States
in or to such property. The Secretary shall determine fair
market value based on an independent assessment conducted by
another department or agency of the Federal Government or a
nongovernmental entity. The Secretary may only accept money as
consideration for such sale.
(2) If the Secretary sells Pershing Hall pursuant to
paragraph (1), the Secretary shall return to the entity from
which the United States acquired Pershing Hall pursuant to the
Act of June 28, 1935, (Chapter 323; 49 Stat. 426) any personal
property (including memorabilia regarding General Pershing and
the American Expeditionary Forces in France during World War I)
in the possession of the Department of Veterans Affairs as of
the date of the enactment of this subsection that was located
in Pershing Hall (or otherwise associated with Pershing Hall)
on the date of such acquisition.
(3) The funds received by the Secretary pursuant to the sale
of Pershing Hall under paragraph (1) shall be deposited in the
``Construction, Major Projects'' account of the Department and
be made available, without fiscal year limitation, for the
purposes of such account.
(4)(A) Effective on the day after the date of the sale of
Pershing Hall authorized under paragraph (1), the authority of
the Secretary to carry out subsections (a), (b), (c), and (e)
shall terminate except for purposes of carrying out paragraph
(2) of this subsection.
(B) Effective on the date that is one year after the date of
the sale of Pershing Hall authorized under paragraph (1), the
Pershing Hall Revolving Fund shall be abolished and the corpus
of the fund, including accrued interest, shall be deposited in
the ``Construction, Major Projects'' account of the Department
and be made available, without fiscal year limitation, for the
purposes of such account.
[all]