Report text available as:

  • TXT
  • PDF   (PDF provides a complete and accurate display of this text.) Tip ?

114th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                     {      114-814

======================================================================

 
COMMUNITIES HELPING INVEST THROUGH PROPERTY AND IMPROVEMENTS NEEDED FOR 
                          VETERANS ACT OF 2016

                                _______
                                

 November 14, 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. 5099]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 5099) to establish a pilot program on 
partnership agreements to construct new facilities for the 
Department of Veterans Affairs, 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..............................................     3
Background and Need for Legislation..............................     4
Hearings.........................................................     6
Subcommittee Consideration.......................................     6
Committee Consideration..........................................     6
Committee Votes..................................................     6
Committee Oversight Findings.....................................     6
Statement of General Performance Goals and Objectives............     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Earmarks and Tax and Tariff Benefits.............................     6
Committee Cost Estimate..........................................     7
Congressional Budget Office Estimate.............................     7
Federal Mandates Statement.......................................     8
Advisory Committee Statement.....................................     8
Constitutional Authority Statement...............................     8
Applicability to Legislative Branch..............................     8
Statement on Duplication of Federal Programs.....................     8
Disclosure of Directed Rulemaking................................     9
Section-by-Section Analysis of the Legislation...................     9
Changes in Existing Law Made by the Bill as Reported.............    11

                               AMENDMENT

    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 ``Communities Helping Invest through 
Property and Improvements Needed for Veterans Act of 2016'' or the 
``CHIP IN for Vets Act of 2016''.

SEC. 2. PILOT PROGRAM ON ACCEPTANCE BY THE DEPARTMENT OF VETERANS 
                    AFFAIRS OF DONATED FACILITIES AND RELATED 
                    IMPROVEMENTS.

  (a) Pilot Program Authorized.--
          (1) In general.--Notwithstanding sections 8103 and 8104 of 
        title 38, United States Code, the Secretary of Veterans Affairs 
        may carry out a pilot program under which the Secretary may 
        accept donations of the following property from entities 
        described in paragraph (2):
                  (A) Real property (including structures and equipment 
                associated therewith)--
                          (i) that includes a constructed facility; or
                          (ii) to be used as the site of a facility 
                        constructed by the entity.
                  (B) A facility to be constructed by the entity on 
                real property of the Department of Veterans Affairs.
          (2) Entities described.--Entities described in this paragraph 
        are the following:
                  (A) A State or local authority.
                  (B) An organization that is described in section 
                501(c)(3) of the Internal Revenue Code of 1986 and is 
                exempt from taxation under section 501(a) of such Code.
                  (C) A limited liability corporation.
                  (D) A private entity.
                  (E) A donor or donor group.
                  (F) Any other non-Federal Government entity.
          (3) Limitation.--The Secretary may accept not more than five 
        donations of real property and facility improvements under the 
        pilot program and as described in this section.
  (b) Conditions for Acceptance of Property.--The Secretary may accept 
the donation of a property described in subsection (a)(1) under the 
pilot program only if--
          (1) the property is--
                  (A) a property with respect to which funds have been 
                appropriated for a Department facility project; or
                  (B) a property identified as--
                          (i) meeting a need of the Department as part 
                        of the long-range capital planning process of 
                        the Department; and
                          (ii) the location for a Department facility 
                        project that is included on the Strategic 
                        Capital Investment Planning process priority 
                        list in the most recent budget submitted to 
                        Congress by the President pursuant to section 
                        1105(a) of title 31, United States Code; and
          (2) an entity described in subsection (a)(2) has entered into 
        or is willing to enter into a formal agreement with the 
        Secretary in accordance with subsection (c) under which the 
        entity agrees to independently donate the real property, 
        improvements, goods, or services, for the Department facility 
        project in an amount acceptable to the Secretary and at no 
        additional cost to the Federal Government.
  (c) Requirement to Enter Into an Agreement.--
          (1) In general.--The Secretary may accept real property and 
        improvements donated under the pilot program by an entity 
        described in subsection (a)(2) only if the entity enters into a 
        formal agreement with the Secretary that provides for--
                  (A) the donation of real property and improvements 
                (including structures and equipment associated 
                therewith) that includes a constructed facility; or
                  (B) the construction by the entity of a facility on--
                          (i) real property and improvements of the 
                        Department of Veterans Affairs; or
                          (ii) real property and improvements donated 
                        to the Department by the entity.
          (2) Content of formal agreements.--With respect to an entity 
        described in subsection (a)(2) that seeks to enter into a 
        formal agreement under paragraph (1) of this subsection that 
        includes the construction by the entity of a facility, the 
        formal agreement shall provide for the following:
                  (A) The entity shall conduct all necessary 
                environmental and historic preservation due diligence, 
                shall comply with all local zoning requirements (except 
                for studies and consultations required of the 
                Department under Federal law), and shall obtain all 
                permits required in connection with the construction of 
                the facility.
                  (B) The entity shall use construction standards 
                required of the Department when designing and building 
                the facility, except to the extent the Secretary 
                determines otherwise.
                  (C) The entity shall provide the real property, 
                improvements, goods, or services in a manner described 
                in subsection (b)(2) sufficient to complete the 
                construction of the facility, at no additional cost to 
                the Federal Government.
  (d) No Payment of Rent or Usage Fees.--The Secretary may not pay 
rent, usage fees, or any other amounts to an entity described in 
subsection (a)(2) or any other entity for the use or occupancy of real 
property or improvements donated under this section.
  (e) Funding.--
          (1) From department.--
                  (A) In general.--The Secretary may not provide funds 
                to help the entity finance, design, or construct a 
                facility in connection with real property and 
                improvements donated under the pilot program by an 
                entity described in subsection (a)(2) that are in 
                addition to the funds appropriated for the facility as 
                of the date on which the Secretary and the entity enter 
                into a formal agreement under subsection (c) for the 
                donation of the real property and improvements.
                  (B) Terms and conditions.--The Secretary shall 
                provide funds pursuant to subparagraph (A) under such 
                terms, conditions, and schedule as the Secretary 
                determines appropriate.
          (2) From entity.--An entity described in subsection (a)(2) 
        that is donating a facility constructed by the entity under the 
        pilot program shall be required, pursuant to a formal agreement 
        entered into under subsection (c), to provide other funds in 
        addition to the amounts provided by the Department under 
        paragraph (1) that are needed to complete construction of the 
        facility.
  (f) Application.--An entity described in subsection (a)(2) that seeks 
to donate real property and improvements under the pilot program shall 
submit to the Secretary an application to address needs relating to 
facilities of the Department, including health care needs, identified 
in the Construction and Long-Range Capital Plan of the Department, at 
such time, in such manner, and containing such information as the 
Secretary may require.
  (g) Information on Donations and Related Projects.--
          (1) In general.--The Secretary shall include in the budget 
        submitted to Congress by the President pursuant to section 
        1105(a) of title 31, United States Code, information regarding 
        real property and improvements donated under the pilot program 
        during the year preceding the submittal of the budget and the 
        status of facility projects relating to that property.
          (2) Elements.--Information submitted under paragraph (1) 
        shall provide a detailed status of donations of real property 
        and improvements conducted under the pilot program and facility 
        projects relating to that property, including the percentage 
        completion of the donations and projects.
  (h) Biennial Report of Comptroller General of the United States.--Not 
less frequently than once every two years until the termination date 
set forth in subsection (i), the Comptroller General of the United 
States shall submit to Congress a report on the donation agreements 
entered into under the pilot program.
  (i) Termination.--The authority for the Secretary to accept donations 
under the pilot program shall terminate on the date that is five years 
after the date of the enactment of this Act.
  (j) Rule of Construction.--Nothing in this section shall be construed 
as a limitation on the authority of the Secretary to enter into other 
arrangements or agreements that are authorized by law and not 
inconsistent with this section.

                          PURPOSE AND SUMMARY

    H.R. 5099, a bill to establish a pilot program on 
partnership agreements to construct new facilities for the 
Department of Veterans Affairs (VA), was introduced by 
Representative Brad Ashford of Nebraska on April 28, 2016. H.R. 
5099, as amended, would authorize VA to carry out a five-year 
pilot program for the purpose of assessing the feasibility and 
advisability of accepting not more than five real property 
donations from certain entities, including a State or local 
authority, as well as a non-profit, limited liability company 
(LLC), private entity, donor/donor group, or other non-Federal 
entity.

                  BACKGROUND AND NEED FOR LEGISLATION

    VA is one of the Federal government's largest real property 
holders with responsibility for capital assets including 
hundreds of VA medical facilities and administrative offices. 
The Independent Assessment of the Health Care Delivery Systems 
and Management Processes of VA found that the average Veterans 
Health Administration building was fifty years old, five times 
older than the average non-profit hospital system building.\1\ 
Given that, maintaining and updating VA capital assets is 
increasingly complex and costly. Currently, VA identifies 
capital needs through the Strategic Capital Investment Planning 
(SCIP) process. The SCIP process identifies capital needs and 
prioritizes construction projects based on those needs. 
Projects are then included in the department's annual budget 
submission. A major medical facility construction project over 
$10 million or major medical facility lease averaging more than 
$1 million in rent annually must be authorized by law.
---------------------------------------------------------------------------
    \1\Independent Assessment of the Health Care Delivery Systems and 
Management Processes of the Department of Veterans Affairs, September 
1, 2015, http://www.va.gov/opa/choiceact/documents/assessments/
integrated_report.pdf.
---------------------------------------------------------------------------
    In recent years, VA's construction and leasing programs 
have been fraught with mismanagement and failure culminating in 
persistent delays and cost overruns. In April 2013, the 
Government Accountability Office (GAO) found that, ``VA was 
managing the construction of 50 major medical-facility projects 
costing between $10 million and hundreds of millions of 
dollars.''\2\ For the largest construction projects, cost 
increases ranged from 66 percent to 427 percent and delays 
ranged from 14 to 86 months when compared to the projects' 
original estimates.\3\ The replacement medical center 
construction project in Denver (Aurora), Colorado alone 
increased in cost from $328 million to $800 million from 2004 
to 2012 and, while originally estimated to be complete in 
February 2014, has been delayed until at least 2018.\4\ That 
project subsequently skyrocketed to a cost of over $1.7 
billion, which is exclusive of the over $300 million it will 
cost to activate the hospital once completed.
---------------------------------------------------------------------------
    \2\Government Accountability Office testimony before the Senate 
Committee on Veterans' Affairs, ``Actions to Address Cost Increases and 
Schedule Delays at Denver and Other VA Major Medical-Facility 
Projects.'' April 24, 2015. http://www.gao.gov/assets/670/669833.pdf.
    \3\Ibid.
    \4\Government Accountability Office report, ``VA's Actions to 
Address Cost Increases at Denver and Other Major Medical-Facility 
Projects.'' April 22, 2014. http://www.gao.gov/assets/670/662689.pdf.
---------------------------------------------------------------------------
    Projects like Denver and others have prompted the Committee 
to search for innovative ways to help VA meet current and 
future infrastructure needs in a timely, fiscally responsible 
manner. The Committee believes that allowing VA to accept 
unconditional donations of property improvements, goods, or 
services from community donors could help achieve this goal. 
Currently, VA may accept a donated facility if the donated 
facility is already complete. However, it can be challenging to 
find existing facilities that meet the requirements for a 
Federal medical facility and also meet the needs of VA's 
patients.
    According to VA, the Department has identified upwards of 
twenty-five to thirty locations where donations from private 
entities could assist the Department in acquiring a needed 
facility.\5\ One such location is Omaha, Nebraska. VA first 
proposed building a new medical facility in Omaha in the FY 
2011 budget submission.\6\ According to the Omaha project 
prospectus found in the FY 2011 budget submission, ``[a]fter 60 
years, the electrical distribution system, the heating, 
ventilation and air condition systems, and the piping systems 
[in the existing Omaha facility] are failing.''\7\ Furthermore, 
the existing facility is space constrained and has life-safety 
and infectious disease issues in inpatient and support 
units.\8\ The proposed project would correct these issues and 
ensure sufficient space in a modern facility is available to 
treat veteran patients.\9\ The proposed project received $56 
million in appropriated funds in 2011 but has not received 
additional funding in the five years since.\10\ However, VA has 
been approached by private entities in the Omaha area that 
would be interested in donating a privately funded facility to 
meet the needs of veteran patients in Omaha without additional 
Federal funding or a VA construction project.
---------------------------------------------------------------------------
    \5\Staff briefing provided by VA regarding how the Department would 
implement H.R. 5099, as amended; October 27, 2016.
    \6\VA FY2011 Budget. Vol. 4. 2-3. http://www.va.gov/budget/docs/
summary/archive/FY-2011_VA-BudgetSubmission.zip.
    \7\Ibid. 2-35.
    \8\Ibid.
    \9\Ibid.
    \10\Full Committee Markup of H.R. 5047; H.R. 5428; H.R. 4757; H.R. 
5166; H.R. 3216; H.R. 4150; H.R. 5099; H.R. 5162; H.R. 5392; H.R. 5399; 
and, H.R. 5600. September 21, 2016.
---------------------------------------------------------------------------
    Section 1 of this bill would allow VA to carry out a five-
year pilot program in order to assess the feasibility of 
accepting up to five donations of real property from an outside 
entity, including a State or local authority, non-profit, LLC, 
private entity, donor/donor group, or other non-Federal entity. 
VA would be authorized to select property for the pilot only if 
an entity has entered into or is willing to enter into a formal 
agreement with VA to independently donate real property in an 
amount deemed acceptable by VA and the property in question: 
has received appropriated funds; has been identified, through 
long-range capital planning, as meeting a need; and is included 
in the SCIP priority list in the most recent VA budget 
submission. The department would be required to enter into 
formal agreements to provide for the donation of real property 
that include: a constructed facility; the construction by the 
entity of a facility on VA property or real property donated to 
VA by an entity; compliance with local zoning requirements, 
permits, and VA construction standards; and any necessary items 
needed to complete construction at no additional cost to the 
Federal government. VA would be prohibited from paying rent, 
usage fees, or in any other way compensating an entity for the 
use of the donated property. VA would also be prohibited from 
providing funds to an entity to help finance, design, or 
construct a facility in connection with a donation, beyond 
funds already appropriated for the facility. Furthermore, any 
donation received under this pilot program would be considered 
an unconditional donation, with no possibility for payments, 
lease-backs, or any other form of compensation to the donor.

                                HEARINGS

    There were no Full Committee or Subcommittee hearings on 
H.R. 5099, as amended.

                       SUBCOMMITTEE CONSIDERATION

    There was no Subcommittee markup of H.R. 5099, as amended.

                        COMMITTEE CONSIDERATION

    On September 21, 2016, the Full Committee met in open 
markup session, a quorum being present, and ordered H.R. 5099, 
as amended, reported favorably to the House of Representatives 
by voice vote. During consideration of the bill, the following 
amendment in the nature of a substitute was considered and 
agreed to by voice vote:

          An Amendment in the Nature of a Substitute to H.R. 
        5099 offered by Representative Tim Walz of Minnesota.

                            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. 5099, 
as amended, reported to the House. A motion by Representative 
Mark Takano of California to favorably report H.R. 5099, as 
amended, 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 to create a pilot program to assess 
the feasibility and advisability of accepting not more than 
five real property donations from certain entities, such as a 
State or local authority, or a non-Federal entity.

   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. 5099, 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. 
5099, 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. 5099, 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, October 26, 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. 5099, the 
Communities Helping Invest through Property Improvements Needed 
for Veterans Act of 2016.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is David Newman.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 5099--Communities Helping Invest through Property Improvements 
        Needed for Veterans Act of 2016

    H.R. 5099 would authorize the Department of Veterans 
Affairs (VA) to accept up to five donations of real property 
such as land or facilities from nonfederal entities for a pilot 
program to construct VA facilities. Any such donated property 
would need to meet a requirement for capital improvements that 
VA had previously identified as necessary to provide services 
or benefits to veterans. The department could help finance such 
a project using any amounts that had been appropriated for that 
project before it entered into an agreement with the nonfederal 
entity. The bill would prohibit VA from spending any funds from 
a subsequent appropriation to complete construction of a 
donated facility or to pay for the use of such a facility once 
it is complete. The authority to accept such donations would 
expire five years after enactment of the bill.
    VA is authorized to accept certain donations of land or 
facilities under current law. The department can also accept 
in-kind compensation rather than cash--such as the use of 
facilities--as part of its authority to enter enhanced-use 
leases.\1\ In some instances when VA has accepted facilities as 
in-kind compensation, the department has explicitly or 
implicitly committed to making payments from subsequent 
appropriations for the use of those facilities. Such 
commitments constitute contract authority, a form of direct 
spending. If VA entered into such commitments, the increase in 
direct spending would be significant.
---------------------------------------------------------------------------
    \1\For additional information on enhanced-use leases see 
Congressional Budget Office, cost estimate for H.R. 3484, the Los 
Angeles Homeless Veterans Leasing Act of 2016 (May 17, 2016), https://
www.cbo.gov/publication/51583.
---------------------------------------------------------------------------
    H.R. 5099 includes provisions that are intended to prevent 
VA from making similar commitments. However, the legislative 
language would be subject to interpretation by the implementing 
agency. Thus, despite those provisions, CBO believes that in 
some circumstances VA could still make such commitments under 
the bill. On the basis of conversations with department 
officials CBO expects that VA is unlikely to do so. However, 
because there is some probability of VA entering into such 
commitments, CBO estimates that enacting the bill--on a 
probabilistic basis--would increase direct spending by an 
insignificant amount.
    Pay-as-you-go procedures apply because enacting the 
legislation would affect direct spending. Enacting the bill 
would not affect revenues. CBO estimates that enacting the 
legislation would not increase net direct spending or on-budget 
deficits in any of the four consecutive 10-year periods 
beginning in 2027.
    H.R. 5099 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act. Any 
costs incurred by state, local, or tribal governments to fund 
construction projects for the benefit of veterans would result 
from participation in a voluntary federal program.
    The CBO staff contact for this estimate is David Newman. 
The estimate was 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. 5099, 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. 
5099, as amended.

                 STATEMENT OF CONSTITUTIONAL AUTHORITY

    Pursuant to Article I, section 8 of the United States 
Constitution, H.R. 5099, 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. 5099, 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. 5099, 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. 5099, 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. 5099, as amended, as the ``Communities Helping Invest 
through Property and Improvements Needed for Veterans Act of 
2016,'' or the ``CHIP IN for Vets Act of 2016.''

Section 2. Pilot program on acceptance by the Department of Veterans 
        Affairs of donated facilities and related improvements

    Section 2(a) of the bill would authorize the Secretary to 
carry out a pilot program to accept not more than five 
donations from certain entities of real property (to include 
structures and associated equipment) that includes a 
constructed facility or is to be used as the site of a facility 
constructed by an entity; or a facility to be constructed by an 
entity on VA-owned real property. Permissible entities are 
defined as: (A) a State or local authority; (B) an organization 
described in section 501(c)(3) of the Internal Revenue Code of 
1986 and is exempt from taxation under section 501(a) of that 
Code; (C) a limited liability company; (D) a private entity; 
(E) a donor or donor group; or (F) any other non-Federal 
government entity.
    Section 2(b) of the bill would authorize the Secretary to 
accept real property donations under the pilot program 
described in Section 2(a) of the bill only if the property is 
one: (1) for which funds have already been appropriated; (2) 
that meets a need identified in VA's long-range capital 
planning process; and that is located in an area already on 
VA's Strategic Capital Investment Planning process priority 
list in the President's most recent budget submission. Further, 
the donating entity must be one that has entered into or is 
willing to enter into a formal agreement with VA under which 
the entity agrees to independently donate the real property, 
improvements, goods, or services for the VA facility project in 
an amount acceptable to the Secretary and at no additional cost 
to the Federal government.
    Section 2(c) of the bill would authorize the Secretary to 
accept real property and improvements by an entity described in 
Section 2(a) of the bill only if the entity enters into a 
formal agreement with the Secretary that provides for the 
donation of real property and improvements (including 
structures and equipment) that includes a constructed facility 
or the construction by the entity of a facility on VA owned or 
donated property. Section 2(c) of the bill would further 
require that an entity described in Section 2(a) that seeks to 
enter into a formal agreement that includes the construction by 
the entity of a facility to provide for: (A) all necessary 
environmental and historic preservation due diligence, 
compliance with all local zoning requirements, and all permits 
required in connection with the facility's construction; (B) 
adherence to all construction standards required of VA when 
designing and building the facility; and (C) donations 
sufficient to complete the construction of the facility, at no 
additional cost to the Federal government.
    Section 2(d) of the bill would prohibit the Secretary from 
paying rent, usage fees, or any other amounts to an entity 
described in section 2(a) of the bill or any other amounts to 
an entity for the use or occupancy of real property or 
improvements donated under this Section.
    Section 2(e) of the bill would prohibit the Secretary from 
providing funds that are in addition to the funds appropriated 
as of the date on which the Secretary and the entity described 
in Section 2(a) of the bill enter into a formal agreement to 
help an entity described in Section 2(a) of the bill finance, 
design, or construct a facility in connection with real 
property and improvements donated. Section 2(e) of the bill 
would further require that the Secretary provide such funds 
under such terms, conditions, and schedule as the Secretary 
determines appropriate, and that an entity described in Section 
2(a) of the bill that is donating a facility constructed by the 
entity shall be required to provide other funds in addition to 
the amounts provided by the department that are needed to 
complete construction of the facility.
    Section 2(f) of the bill would require that an entity 
described in Section 2(a) of the bill that seeks to donate real 
property and improvements to VA submit an application to 
address needs relating to VA facilities, identified in the VA 
Construction and Long-Range Capital Plan at such time and in 
such manner as the Secretary may require.
    Section 2(g) of the bill would require the Secretary to 
include in the President's budget submitted to Congress 
pursuant to section 1105(a) of title 31, U.S.C., information 
regarding any real property and improvements donated under the 
pilot program established by Section 2(a) of the bill during 
the year preceding that budget's submittal. That information 
must contain the status of any facility projects relating to 
that property to include a detailed status of donations of real 
property and improvements conducted under the pilot program and 
facility projects relating to that property such as the 
percentage completion of the donations and projects.
    Section 2(h) of the bill would require the Comptroller 
General of the United States to submit a report to Congress on 
the donation agreements entered into under the pilot program 
established by Section 2(a) of the bill no less frequently than 
once every two years until the termination date provided in 
Section 2(i) of the bill.
    Section 2(i) of the bill would stipulate that the 
Secretary's authority to accept donations under the pilot 
program established by Section 2(a) of the bill is terminated 
five years after the date of the enactment of this Act.
    Section 2(j) of the bill would stipulate that nothing in 
Section 2 of the bill limits the authority of the Secretary to 
enter into other arrangements or agreements that are authorized 
by law and not inconsistent with this Act.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    If enacted, this bill would make no changes in existing 
law.

                                  [all]