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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\
---------------------------------------------------------------------------
    \1\38 U.S.C. Sec. 8104(a)(3)(A).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \2\VA, FY 2016 Budget Submission, February 11, 2015, and VA, FY 
2017 Budget Submission, February 12, 2016.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \5\38 U.S.C. Sec. 8104(a)(3)(B).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \6\VA, FY 2016 Budget Submission, February 11, 2015, and VA, FY 
2017 Budget Submission, February 12, 2016.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \7\This amount was later refined, ultimately amounting to a request 
for a total authorization of $1.675 billion.
---------------------------------------------------------------------------
    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.

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