[Pages H5274-H5277]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

WEST LOS ANGELES LEASING ACT OF 2016

Mr. MILLER of Florida. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 5936) to amend title 38, United States Code, to
authorize the Secretary of Veterans Affairs to enter into agreements
with certain health care providers to furnish health care to veterans,
to authorize the Secretary to enter into certain leases at the
Department of Veterans Affairs West Los Angeles Campus in Los Angeles,
California, to make certain improvements to the enhanced-use lease
authority of the Department, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:

H.R. 5936

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``West Los Angeles Leasing Act
of 2016''.

SEC. 2. AUTHORITY TO ENTER INTO CERTAIN LEASES AT THE
DEPARTMENT OF VETERANS AFFAIRS WEST LOS ANGELES
CAMPUS.

(a) In General.--The Secretary of Veterans Affairs may
carry out leases described in subsection (b) at the
Department of Veterans Affairs West Los Angeles Campus in Los
Angeles, California (hereinafter in this section referred to
as the ``Campus'').
(b) Leases Described.--Leases described in this subsection
are the following:
(1) Any enhanced-use lease of real property under
subchapter V of chapter 81 of title 38, United States Code,
for purposes of providing supportive housing, as that term is
defined in section 8161(3) of such title, that principally
benefit veterans and their families.
(2) Any lease of real property for a term not to exceed 50
years to a third party to provide services that principally
benefit veterans and their families and that are limited to
one or more of the following purposes:
(A) The promotion of health and wellness, including
nutrition and spiritual wellness.
(B) Education.
(C) Vocational training, skills building, or other training
related to employment.
(D) Peer activities, socialization, or physical recreation.
(E) Assistance with legal issues and Federal benefits.
(F) Volunteerism.
(G) Family support services, including child care.
(H) Transportation.
(I) Services in support of one or more of the purposes
specified in subparagraphs (A) through (H).
(3) A lease of real property for a term not to exceed 10
years to The Regents of the University of California, a
corporation organized under the laws of the State of
California, on behalf of its University of California, Los
Angeles (UCLA) campus (hereinafter in this section referred
to as ``The Regents''), if--
(A) the lease is consistent with the master plan described
in subsection (g);
(B) the provision of services to veterans is the
predominant focus of the activities of The Regents at the
Campus during the term of the lease;

[[Page H5275]]

(C) The Regents expressly agrees to provide, during the
term of the lease and to an extent and in a manner that the
Secretary considers appropriate, additional services and
support (for which The Regents is not compensated by the
Secretary or through an existing medical affiliation
agreement) that--
(i) principally benefit veterans and their families,
including veterans that are severely disabled, women, aging,
or homeless; and
(ii) may consist of activities relating to the medical,
clinical, therapeutic, dietary, rehabilitative, legal,
mental, spiritual, physical, recreational, research, and
counseling needs of veterans and their families or any of the
purposes specified in any of subparagraphs (A) through (I) of
paragraph (2); and
(D) The Regents maintains records documenting the value of
the additional services and support that The Regents provides
pursuant to subparagraph (C) for the duration of the lease
and makes such records available to the Secretary.
(c) Limitation on Land-Sharing Agreements.--The Secretary
may not carry out any land-sharing agreement pursuant to
section 8153 of title 38, United States Code, at the Campus
unless such agreement--
(1) provides additional health-care resources to the
Campus; and
(2) benefits veterans and their families other than from
the generation of revenue for the Department of Veterans
Affairs.
(d) Revenues From Leases at the Campus.--Any funds received
by the Secretary under a lease described in subsection (b)
shall be credited to the applicable Department medical
facilities account and shall be available, without fiscal
year limitation and without further appropriation,
exclusively for the renovation and maintenance of the land
and facilities at the Campus.
(e) Easements.--
(1) In general.--Notwithstanding any other provision of law
(other than Federal laws relating to environmental and
historic preservation), pursuant to section 8124 of title 38,
United States Code, the Secretary may grant easements or
rights-of-way on, above, or under lands at the Campus to--
(A) any local or regional public transportation authority
to access, construct, use, operate, maintain, repair, or
reconstruct public mass transit facilities, including, fixed
guideway facilities and transportation centers; and
(B) the State of California, County of Los Angeles, City of
Los Angeles, or any agency or political subdivision thereof,
or any public utility company (including any company
providing electricity, gas, water, sewage, or
telecommunication services to the public) for the purpose of
providing such public utilities.
(2) Improvements.--Any improvements proposed pursuant to an
easement or right-of-way authorized under paragraph (1) shall
be subject to such terms and conditions as the Secretary
considers appropriate.
(3) Termination.--Any easement or right-of-way authorized
under paragraph (1) shall be terminated upon the abandonment
or nonuse of the easement or right-of-way and all right,
title, and interest in the land covered by the easement or
right-of-way shall revert to the United States.
(f) Prohibition on Sale of Property.--Notwithstanding
section 8164 of title 38, United States Code, the Secretary
may not sell or otherwise convey to a third party fee simple
title to any real property or improvements to real property
made at the Campus.
(g) Consistency With Master Plan.--The Secretary shall
ensure that each lease carried out under this section is
consistent with the draft master plan approved by the
Secretary on January 28, 2016, or successor master plans.
(h) Compliance With Certain Laws.--
(1) Laws relating to leases and land use.--If the Inspector
General of the Department of Veterans Affairs determines, as
part of an audit report or evaluation conducted by the
Inspector General, that the Department is not in compliance
with all Federal laws relating to leases and land use at the
Campus, or that significant mismanagement has occurred with
respect to leases or land use at the Campus, the Secretary
may not enter into any lease or land-sharing agreement at the
Campus, or renew any such lease or land-sharing agreement
that is not in compliance with such laws, until the Secretary
certifies to the Committees on Veterans' Affairs of the
Senate and House of Representatives, the Committees on
Appropriations of the Senate and House of Representatives,
and each Member of the Senate and the House of
Representatives who represents the area in which the Campus
is located that all recommendations included in the audit
report or evaluation have been implemented.
(2) Compliance of particular leases.--Except as otherwise
expressly provided by this section, no lease may be entered
into or renewed under this section unless the lease complies
with chapter 33 of title 41, United States Code, and all
Federal laws relating to environmental and historic
preservation.
(i) Veterans and Community Oversight and Engagement
Board.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary shall establish a
Veterans and Community Oversight and Engagement Board (in
this subsection referred to as the ``Board'') for the Campus
to coordinate locally with the Department of Veterans Affairs
to--
(A) identify the goals of the community and veteran
partnership;
(B) provide advice and recommendations to the Secretary to
improve services and outcomes for veterans, members of the
Armed Forces, and the families of such veterans and members;
and
(C) provide advice and recommendations on the
implementation of the draft master plan approved by the
Secretary on January 28, 2016, and on the creation and
implementation of any successor master plans.
(2) Members.--The Board shall be comprised of a number of
members that the Secretary determines appropriate, of which
not less than 50 percent shall be veterans. The nonveteran
members shall be family members of veterans, veteran
advocates, service providers, real estate professionals
familiar with housing development projects, or stakeholders.
(3) Community input.-- In carrying out paragraph (1), the
Board shall--
(A) provide the community opportunities to collaborate and
communicate with the Board, including by conducting public
forums on the Campus; and
(B) focus on local issues regarding the Department that are
identified by the community, including with respect to health
care, implementation of the draft master plan and any
subsequent plans, benefits, and memorial services at the
Campus.
(j) Notification and Reports.--
(1) Congressional notification.--With respect to each lease
or land-sharing agreement intended to be entered into or
renewed at the Campus, the Secretary shall notify the
Committees on Veterans' Affairs of the Senate and House of
Representatives, the Committees on Appropriations of the
Senate and House of Representatives, and each Member of the
Senate and the House of Representatives who represents the
area in which the Campus is located of the intent of the
Secretary to enter into or renew the lease or land-sharing
agreement not later than 45 days before entering into or
renewing the lease or land-sharing agreement.
(2) Annual report.--Not later than one year after the date
of the enactment of this Act, and not less frequently than
annually thereafter, the Secretary shall submit to the
Committees on Veterans' Affairs of the Senate and House of
Representatives, the Committees on Appropriations of the
Senate and House of Representatives, and each Member of the
Senate and the House of Representatives who represents the
area in which the Campus is located an annual report
evaluating all leases and land-sharing agreements carried out
at the Campus, including--
(A) an evaluation of the management of the revenue
generated by the leases; and
(B) the records described in subsection (b)(3)(D).
(3) Inspector general report.--
(A) In general.--Not later than each of two years and five
years after the date of the enactment of this Act, and as
determined necessary by the Inspector General of the
Department of Veterans Affairs thereafter, the Inspector
General shall submit to the Committees on Veterans' Affairs
of the Senate and House of Representatives and the Committees
on Appropriations of the Senate and House of Representatives,
and each Member of the Senate and the House of
Representatives who represents the area in which the Campus
is located a report on all leases carried out at the Campus
and the management by the Department of the use of land at
the Campus, including an assessment of the efforts of the
Department to implement the master plan described in
subsection (g) with respect to the Campus.
(B) Consideration of annual report.--In preparing each
report required by subparagraph (A), the Inspector General
shall take into account the most recent report submitted to
Congress by the Secretary under paragraph (2).
(k) Rule of Construction.--Nothing in this section shall be
construed as a limitation on the authority of the Secretary
to enter into other agreements regarding the Campus that are
authorized by law and not inconsistent with this section.
(l) Principally Benefit Veterans and Their Families
Defined.--In this section the term ``principally benefit
veterans and their families'', with respect to services
provided by a person or entity under a lease of property or
land-sharing agreement--
(1) means services--
(A) provided exclusively to veterans and their families; or
(B) that are designed for the particular needs of veterans
and their families, as opposed to the general public, and any
benefit of those services to the general public is distinct
from the intended benefit to veterans and their families; and
(2) excludes services in which the only benefit to veterans
and their families is the generation of revenue for the
Department of Veterans Affairs.
(m) Conforming Amendments.--
(1) Prohibition on disposal of property.--Section 224(a) of
the Military Construction and Veterans Affairs and Related
Agencies Appropriations Act, 2008 (Public Law 110-161; 121
Stat. 2272) is amended by striking ``The Secretary of
Veterans Affairs'' and inserting ``Except as authorized under
the Los Angeles Homeless Veterans Leasing Act of 2016, the
Secretary of Veterans Affairs''.
(2) Enhanced-use leases.--Section 8162(c) of title 38,
United States Code, is amended by inserting ``, other than an
enhanced-use

[[Page H5276]]

lease under the Los Angeles Homeless Veterans Leasing Act of
2016,'' before ``shall be considered''.

SEC. 3. IMPROVEMENTS TO ENHANCED-USE LEASE AUTHORITY OF
DEPARTMENT OF VETERANS AFFAIRS.

(a) Prohibition on Waiver of Obligation of Lessee.--
Paragraph (3) of section 8162(b) of title 38, United States
Code, is amended by adding at the following new subparagraph:
``(D) The Secretary may not waive or postpone the
obligation of a lessee to pay any consideration under an
enhanced-use lease, including monthly rent.''.
(b) Clarification of Liability of Federal Government to
Third Parties.--Section 8162 of such title is amended by
adding at the end the following new subsection:
``(d)(1) Nothing in this subchapter authorizes the
Secretary to enter into an enhanced-use lease that provides
for, is contingent upon, or otherwise authorizes the Federal
Government to guarantee a loan made by a third party to a
lessee for purposes of the enhanced-use lease.
``(2) Nothing in this subchapter shall be construed to
abrogate or constitute a waiver of the sovereign immunity of
the United States with respect to any loan, financing, or
other financial agreement entered into by the lessee and a
third party relating to an enhanced-use lease.''.
(c) Transparency.--
(1) Notice.--Section 8163(c)(1) of such title is amended--
(A) by inserting ``, the Committees on Appropriations of
the House of Representatives and the Senate, and the
Committees on the Budget of the House of Representatives and
the Senate'' after ``congressional veterans' affairs
committees'';
(B) by striking ``and shall publish'' and inserting ``,
shall publish'';
(C) by inserting before the period at the end the
following: ``, and shall submit to the congressional
veterans' affairs committees a copy of the proposed lease'';
and
(D) by adding at the end the following new sentence: ``With
respect to a major enhanced-use lease, upon the request of
the congressional veterans' affairs committees, not later
than 30 days after the date of such notice, the Secretary
shall testify before the committees on the major enhanced-use
lease, including with respect to the status of the lease, the
cost, and the plans to carry out the activities under the
lease. The Secretary may not delegate such testifying below
the level of the head of the Office of Asset Enterprise
Management of the Department or any successor to such
office.''.
(2) Annual reports.--Section 8168 of such title is
amended--
(A) by striking ``to Congress'' each place it appears and
inserting ``to the congressional veterans' affairs
committees, the Committees on Appropriations of the House of
Representatives and the Senate, and the Committees on the
Budget of the House of Representatives and the Senate'';
(B) in subsection (a)--
(i) by striking ``Not later'' and inserting ``(1) Not
later'';
(ii) by striking ``a report'' and all that follows through
the period at the end and inserting ``a report on enhanced-
use leases.''; and
(iii) by adding at the end the following new paragraph:
``(2) Each report under paragraph (1) shall include the
following:
``(A) Identification of the actions taken by the Secretary
to implement and administer enhanced-use leases.
``(B) For the most recent fiscal year covered by the
report, the amounts deposited into the Medical Care
Collection Fund account that were derived from enhanced-use
leases.
``(C) Identification of the actions taken by the Secretary
using the amounts described in subparagraph (B).
``(D) Documents of the Department supporting the contents
of the report described in subparagraphs (A) through (C).'';
and
(C) in subsection (b)--
(i) by striking ``Each year'' and inserting ``(1) Each
year'';
(ii) by striking ``this subchapter,'' and all that follows
through the period at the end and inserting ``this
subchapter.''; and
(iii) by adding at the end the following new paragraph:
``(2) Each report under paragraph (1) shall include the
following with respect to each enhanced-use lease covered by
the report:
``(A) An overview of how the Secretary is using
consideration received by the Secretary under the lease to
support veterans.
``(B) The amount of consideration received by the Secretary
under the lease.
``(C) The amount of any revenues collected by the Secretary
relating to the lease not covered by subparagraph (B),
including a description of any in-kind assistance or services
provided by the lessee to the Secretary or to veterans under
an agreement entered into by the Secretary pursuant to any
provision of law.
``(D) The costs to the Secretary of carrying out the lease.
``(E) Documents of the Department supporting the contents
of the report described in subparagraphs (A) through (D).''.
(d) Additional Definitions.--Section 8161 of such title is
amended by adding at the end the following new paragraphs:
``(4) The term `lessee' means the party with whom the
Secretary has entered into an enhanced-use lease under this
subchapter.
``(5) The term `major enhanced-use lease' means an
enhanced-use lease that includes consideration consisting of
an average annual rent of more than $10,000,000.''.
(e) Comptroller General Audit.--
(1) Report.--Not later than 270 days after the date of the
enactment of this Act, the Comptroller General of the United
States shall submit to the appropriate congressional
committees a report containing an audit of the enhanced-use
lease program of the Department of Veterans Affairs under
subchapter V of chapter 81 of title 38, United States Code.
(2) Matters included.--The report under paragraph (1) shall
include the following:
(A) The financial impact of the enhanced-use lease
authority on the Department of Veterans Affairs and whether
the revenue realized from such authority and other financial
benefits would have been realized without such authority.
(B) The use by the Secretary of such authority and whether
the arrangements made under such authority would have been
made without such authority.
(C) An identification of the controls that are in place to
ensure accountability and transparency and to protect the
Federal Government.
(D) An overall assessment of the activities of the
Secretary under such authority to ensure procurement cost
avoidance, negotiated cost avoidance, in-contract cost
avoidance, and rate reductions.
(3) Appropriate congressional committees defined.--In this
subsection, the term ``appropriate congressional committees''
means--
(A) the Committees on Veterans' Affairs of the House of
Representatives and the Senate;
(B) the Committees on Appropriations of the House of
Representatives and the Senate; and
(C) the Committees on the Budget of the House of
Representatives and the Senate.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Florida (Mr. Miller) and the gentleman from California (Mr. Takano)
each will control 20 minutes.
The Chair recognizes the gentleman from Florida.

General Leave

Mr. MILLER of Florida. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days within which to revise and extend
their remarks and provide any extraneous material.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Florida?
There was no objection.
Mr. MILLER of Florida. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today in support of H.R. 5936, as amended, the
West Los Angeles Leasing Act of 2016.
I would like to express my appreciation to Dr. Price for his tireless
efforts in working with our committee on scoring that was associated
with this particular piece of legislation. Without his cooperation, we
would not be poised to pass this bill today.
This bill would authorize VA to carry out certain leases on the VA
Greater Los Angeles Healthcare System West L.A. Medical Center Campus
in Los Angeles, California, in accordance with the draft master plan.
Leases that would be considered allowable under this language
include: an enhanced-use lease for the purpose of providing supportive
housing, any lease lasting less than 50 years to a third party to
provide services that benefit veterans and their families, or a lease
lasting less than 10 years to the University of California if the lease
is consistent with the master plan and the University's activities are
principally focused on providing services to veterans.
Any land-sharing agreements that fail to provide additional
healthcare resources or to benefit veterans and their families in ways
other than generating additional revenue would be prohibited, and any
funds received from leases credited to the West L.A. VA Medical
facility would be required to be used exclusively for renovation and
maintenance.
The bill also includes numerous reporting requirements to ensure that
the VA is fully transparent with Congress and the American people
regarding the management use and operations of the campus.
I was honored to visit West L.A. and their medical center campus
earlier this year and witness firsthand the enormous promise it holds
for our veterans, especially our homeless veterans.
This historic site has suffered from many years of neglect, misuse,
and mismanagement; but, with passage of H.R. 5936, as amended, today, I
am confident that it will finally be on the path to preservation,
revitalization,

[[Page H5277]]

and the fulfillment of its mission to serve and to provide for veterans
in need throughout the Greater Los Angeles area.
I am grateful to my friend and colleague, Congressman Ted Lieu, from
California, for joining me in sponsoring this legislation, and I urge
all of my colleagues to join us in supporting this piece of
legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. TAKANO. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 5936. This legislation would provide a
model for how VA campuses can provide services to homeless veterans and
those at risk of homelessness.
It would authorize VA to carry out certain leases on the VA Greater
Los Angeles Healthcare System West L.A. Medical Center Campus, and
would prohibit VA from entering into any land-sharing agreements unless
the agreements provide additional healthcare resources and also benefit
veterans and their families in ways other than generating additional
revenue.
Mr. Speaker, there is a long history here with the West L.A. Campus.
Without going into too much detail, this provision would ensure that
the VA West L.A. Campus is used for the betterment of veterans, the
original intent of the legacy when the land was donated decades ago. It
is an important step forward for the veterans community in southern
California.
I would like to thank the chairman for introducing this bill and
Representative Ted Lieu of California for his hard work.
Mr. Speaker, I reserve the balance of my time.
Mr. MILLER of Florida. Mr. Speaker, I have no other speakers at this
time, so we are prepared to close.
I reserve the balance of my time.
Mr. TAKANO. Mr. Speaker, I yield myself such time as I may consume.
I strongly support this legislation, and I urge my colleagues to vote
``yes'' on H.R. 5936, as amended. And I want to express, again, my deep
appreciation in working with the majority to get this bill done. It is
really important to those of us in southern California, and I cannot
overstate how much this means to the veterans community in California.
Mr. Speaker, I yield back the balance of my time.
Mr. MILLER of Florida. Mr. Speaker, I urge all Members to support
this piece of legislation.
I yield back the balance of my time.
Mr. TOM PRICE of Georgia. Mr. Speaker, today, the House will consider
H.R. 5936, the Veterans Care Agreement and West Los Angeles Leasing Act
of 2016. H.R. 5936 authorizes the Department of Veterans Affairs (VA)
to lease underused Federal property at the Department's medical campus
in Los Angeles to developers who would construct supportive housing and
rehabilitation facilities for homeless veterans.
Congressional Budget Office [CBO] estimates of the budgetary effects
of VA's enhanced-use leases have evolved over time. Dating back to the
first VA enhanced-use lease in 1999, CBO believed that VA enhanced-use
leasing arrangements were a quid pro quo exchange of equal value which
would not have any scoring implications. As CBO continued to gather
more information on these leases, in addition to monitoring and
evaluating VA's behavior regarding these lease agreements, it changed
its scoring practices and today scores enhanced-use leases with an
upfront, direct spending cost. The evolution of CBO's VA enhanced-use
lease scoring came about from agreements and contracts that assured
non-Federal lessees would be able to recover their capital costs
invested in leased facilities through guaranteed payments from the
Federal Government.
CBO estimates that enacting H.R. 5936 would provide borrowing
authority of $44 million over fiscal years 2017 through 2026, which
would result in new direct spending. Notwithstanding CBO's conclusion,
the House Committee on the Budget believes new mandatory spending will
not be provided by H.R. 5936 as amended. The Committee, working closely
with the House Committee on Veterans' Affairs, has included section 4
in H.R. 5936 that would do the following: (1) ensure the Department of
Veterans Affairs and third-party enhanced-use leasing agreements do not
include either an explicit or implicit Federal Government loan
guarantee; (2) prevent the Federal government from abrogating its
sovereign immunity with respect to any loan, or other financial
agreement; and, (3) require greater transparency, accountability, and
congressional oversight of VA's enhanced-use lease program. If the
Department of Veterans Affairs fails to faithfully execute the
requirements in H.R. 5936, the House Committee on the Budget will
revisit this issue in the context of future requests for enhanced-use
leasing authority.
With these fiscal protections in place, I support H.R. 5936, the
Veterans Care Agreement and West Los Angeles Leasing Act of 2016, which
ensures America's homeless veterans are provided quality access to care
and services, and brings our Nation one step closer to ending veteran
homelessness.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Florida (Mr. Miller) that the House suspend the rules
and pass the bill, H.R. 5936, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
The title of the bill was amended so as to read: ``A bill to
authorize the Secretary of Veterans Affairs to enter into certain
leases at the Department of Veterans Affairs West Los Angeles Campus in
Los Angeles, California, to make certain improvements to the enhanced-
use lease authority of the Department, and for other purposes.''.
A motion to reconsider was laid on the table.

____________________