[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5936 Introduced in House (IH)]

<DOC>






114th CONGRESS
  2d Session
                                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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 6, 2016

  Mr. Miller of Florida (for himself and Mr. Ted Lieu of California) 
 introduced the following bill; which was referred to the Committee on 
                           Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
 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.

    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 ``Veterans Care Agreement and West Los 
Angeles Leasing Act of 2016''.

SEC. 2. VETERANS CARE AGREEMENTS.

    (a) In General.--Subchapter I of chapter 17 of title 38, United 
States Code, is amended by inserting after section 1703 the following 
new section:
``Sec. 1703A. Veterans Care Agreements with certain health care 
              providers
    ``(a) Veterans Care Agreements.--(1) In addition to furnishing 
hospital care, medical services, or extended care under this chapter at 
facilities of the Department or under contracts or sharing agreements 
entered into pursuant to provisions of law other than this section, the 
Secretary may furnish such care and services to eligible veterans 
through the use of agreements entered into under this section by the 
Secretary with eligible providers.
    ``(2) The Secretary may enter into Veterans Care Agreements under 
this section with eligible providers to furnish hospital care, medical 
services, and extended care to veterans whom the Secretary determines 
that furnishing such care and services at facilities of the Department 
or under contracts or sharing agreements under provisions of law other 
than this section is impracticable or inadvisable because of the 
medical condition of the veteran, the travel involved, or the nature of 
the care or services required, or a combination of such factors.
    ``(3) The Secretary may enter into Veterans Care Agreements under 
this section with eligible providers if the Secretary determines that 
the hospital care or medical services to be furnished under the 
agreement is not available to be furnished by a non-Department health 
care provider under a contract or sharing agreement entered into 
pursuant to provisions of law other than this section.
    ``(b) Veteran Eligibility.--Eligibility of a veteran for care and 
services under this section shall be determined as if such care or 
services were furnished in a facility of the Department, and provisions 
of this title applicable to veterans receiving such care and services 
in a facility of the Department shall apply to veterans receiving care 
and services under this section.
    ``(c) Provider Eligibility.--Subject to the certification process 
pursuant to subsection (d)(1), a provider of hospital care, medical 
services, or extended care is eligible to enter into a Veterans Care 
Agreement under this section if the Secretary determines that the 
provider meets each of the following criteria:
            ``(1) The gross annual revenue of the provider in the year 
        preceding the year in which the provider enters into the 
        Veterans Care Agreement does not exceed $11,000,000 (as 
        adjusted in a manner similar to amounts adjusted pursuant to 
        section 5312 of this title) or, with respect to a provider that 
        is a nursing care facility (skilled nursing facility), 
        $27,500,000 (as so adjusted).
            ``(2) The provider does not otherwise provide such care or 
        services to patients pursuant to a contract entered into with a 
        department or agency of the Federal Government.
            ``(3) The provider is--
                    ``(A) a provider of services that has enrolled and 
                entered into a provider agreement under section 1866(a) 
                of the Social Security Act (42 U.S.C. 1395cc(a));
                    ``(B) a physician or supplier that has enrolled and 
                entered into a participation agreement under section 
                1842(h) of such Act (42 U.S.C. 1395u(h));
                    ``(C) a provider of items and services receiving 
                payment under a State plan under title XIX of such Act 
                (42 U.S.C. 1396 et seq.) or a waiver of such a plan;
                    ``(D) an Aging and Disability Resource Center, an 
                area agency on aging, or a State agency (as defined in 
                section 102 of the Older Americans Act of 1965 (42 
                U.S.C. 3002)); or
                    ``(E) a center for independent living (as defined 
                in section 702 of the Rehabilitation Act of 1973 (29 
                U.S.C. 796a)).
            ``(4) Any additional criteria determined appropriate by the 
        Secretary.
    ``(d) Provider Certification.--(1) The Secretary shall establish a 
process for the certification of eligible providers to enter into 
Veterans Care Agreements under this section that shall, at a minimum, 
set forth the following:
            ``(A) Procedures for the submission of applications for 
        certification and deadlines for actions taken by the Secretary 
        with respect to such applications.
            ``(B) Standards and procedures for the approval and denial 
        of certifications and the revocation of certifications.
            ``(C) Procedures for assessing eligible providers based on 
        the risk of fraud, waste, and abuse of such providers similar 
        to the level of screening under section 1866(j)(2)(B) of the 
        Social Security Act (42 U.S.C. 1395(j)(2)(B)) and the standards 
        set forth under section 9.104 of title 48, Code of Federal 
        Regulations, or any successor regulation.
            ``(D) Requirement for denial or revocation of certification 
        if the Secretary determines that the otherwise eligible 
        provider is--
                    ``(i) excluded from participation in a Federal 
                health care program (as defined in section 1128B(f) of 
                the Social Security Act (42 U.S.C. 1320a-7b(f))) under 
                section 1128 or 1128A of the Social Security Act (42 
                U.S.C. 1320a-7 and 1320a-7a); or
                    ``(ii) identified as an excluded source on the list 
                maintained in the System for Award Management, or any 
                successor system.
            ``(E) Procedures by which a provider whose certification is 
        denied or revoked under the procedures established under this 
        subsection will be identified as an excluded source on the list 
        maintained in the System for Award Management, or successor 
        system, if the Secretary determines that such exclusion is 
        appropriate.
    ``(2) To the extent practicable, the Secretary shall establish the 
procedures under paragraph (1) in a manner that takes into account any 
certification process administered by another department or agency of 
the Federal Government that an eligible provider has completed by 
reason of being a provider described in any of subparagraphs (A) 
through (E) of subsection (c)(3).
    ``(e) Terms of Agreements.--(1) The Secretary shall ensure that 
each Veterans Care Agreement include provisions requiring the eligible 
provider to do the following:
            ``(A) To accept payment for care and services furnished 
        under this section in accordance with paragraph (2).
            ``(B) To accept payment under subparagraph (A) as payment 
        in full for care and services furnished under this section and 
        to not seek any payment for such care and services from the 
        recipient of such care.
            ``(C) To furnish under this section only the care and 
        services authorized by the Department under this section unless 
        the eligible provider receives prior written consent from the 
        Department to furnish care and services outside the scope of 
        such authorization.
            ``(D) To bill the Department for care and services 
        furnished under this section in accordance with a methodology 
        established by the Secretary for purposes of this section.
            ``(E) Not to seek to recover or collect from a health-plan 
        contract or third party (as those terms are defined in section 
        1729 of this title) for any care or services for which payment 
        is made by the Department under this section.
            ``(F) To provide medical records for veterans furnished 
        care and services under this section to the Department in a 
        timeframe and format specified by the Secretary for purposes of 
        this section, except the Secretary may not require that any 
        payment by the Secretary to the eligible provider be contingent 
        on such provision of medical records.
            ``(G) To meet other such terms and conditions, including 
        quality of care assurance standards, as the Secretary may 
        specify for purposes of this section.
    ``(2)(A) Except as provided in subparagraphs (B) through (G), rates 
negotiated for care and services furnished under a Veterans Care 
Agreement shall not be more than the rates paid by the United States to 
a provider of services (as defined in section 1861(u) of the Social 
Security Act (42 U.S.C. 1395x(u))) or a supplier (as defined in section 
1861(d) of such Act (42 U.S.C. 1395x(d))) under the Medicare program 
under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) 
for the same care or services.
    ``(B) With respect to the furnishing of care or services under this 
section to an eligible veteran who resides in a highly rural area (as 
defined under the rural-urban commuting area codes developed by the 
Secretary of Agriculture and the Secretary of Health and Human 
Services), the Secretary of Veterans Affairs may negotiate a rate that 
is more than the rate paid by the United States as described in 
subparagraph (B).
    ``(C) With respect to furnishing care or services under a Veterans 
Care Agreement in Alaska, the Alaska Fee Schedule of the Department of 
Veterans Affairs will be followed, except for when another payment 
agreement, including a contract or provider agreement, is in place.
    ``(D) With respect to furnishing care or services under a Veterans 
Care Agreement in a State with an All-Payer Model Agreement under the 
Social Security Act that became effective on or after January 1, 2014, 
the Medicare payment rates under clause (i) shall be calculated based 
on the payment rates under such agreement, or any such successor 
agreement.
    ``(E) With respect to furnishing care or services under a Veterans 
Care Agreement in a region in which the Secretary determines that 
adjusting the rate paid by the United States as described in 
subparagraph (A) is appropriate, the Secretary may negotiate such an 
adjusted rate.
    ``(F) With respect to furnishing care or services under a Veterans 
Care Agreement in a location or in a situation in which an exception to 
the rates paid by the United States under the Medicare program under 
title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) for the 
same care or services applies, the Secretary shall follow such 
exception.
    ``(G) With respect to furnishing care or services under a Veterans 
Care Agreement for care or services not covered under the Medicare 
program under title XVIII of the Social Security Act (42 U.S.C. 1395 et 
seq.), the Secretary shall establish a schedule of fees for such care 
or services.
    ``(f) Exclusion of Certain Federal Contracting Provisions.--(1) 
Notwithstanding any other provision of law, the Secretary may enter 
into a Veterans Care Agreement using procedures other than competitive 
procedures.
    ``(2)(A) Except as provided in subparagraph (B) and unless 
otherwise provided in this section, an eligible provider that enters 
into a Veterans Care Agreement under this section is not subject to, in 
the carrying out of the agreement, any provision of law that providers 
of services and suppliers under the original Medicare fee-for-service 
program under parts A and B of title XVIII of the Social Security Act 
(42 U.S.C. 1395 et seq.) or the Medicaid program under title XIX of 
such Act (42 U.S.C. 1396 et seq.) are not subject to.
    ``(B) In addition to the provisions of laws covered by subparagraph 
(A), an eligible provider shall be subject to the following provisions 
of law:
            ``(i) Any applicable law regarding integrity, ethics, or 
        fraud, or that subject a person to civil or criminal penalties.
            ``(ii) Section 431 of title 18.
            ``(iii) Section 1352 of title 31, except for the filing 
        requirements under subsection (b) of such section.
            ``(iv) Section 4705 or 4712 of title 41, and any other 
        applicable law regarding the protection of whistleblowers.
            ``(v) Section 4706(d) of title 41.
            ``(vi) Title VII of the Civil Rights Act of 1964 (42 U.S.C. 
        2000e et seq.) to the same extent as such title applies with 
        respect to the eligible provider in providing care or services 
        through an agreement or arrangement other than under a Veterans 
        Care Agreement.
    ``(C) An eligible provider that receives a payment from the Federal 
Government pursuant to a Veterans Care Agreement shall not be treated 
as a Federal contractor or subcontractor by the Office of Federal 
Contract Compliance Programs of the Department of Labor based on the 
work performed or actions taken by such eligible provider that resulted 
in the receipt of such payments.
    ``(g) Termination of a Veterans Care Agreement.--(1) An eligible 
provider may terminate a Veterans Care Agreement with the Secretary 
under this section at such time and upon such notice to the Secretary 
as the Secretary may specify for purposes of this section.
    ``(2) The Secretary may terminate a Veterans Care Agreement with an 
eligible provider under this section at such time and upon such notice 
to the eligible provider as the Secretary may specify for the purposes 
of this section, if the Secretary--
            ``(A) determines that the eligible provider failed to 
        comply with the provisions of the agreement or this section or 
        other applicable provision of law;
            ``(B) makes a revocation pursuant to subsection (d)(1)(4);
            ``(C) ascertains that the eligible provider has been 
        convicted of a felony or other serious offense under Federal or 
        State law and determines that the continued participation of 
        the eligible provider would be detrimental to the best 
        interests of veterans of the Department; or
            ``(D) determines that it is reasonable to terminate the 
        agreement based on the health care needs of veterans.
    ``(h) Disputes.--(1) The Secretary shall establish administrative 
procedures for eligible providers with which the Secretary has entered 
into a Veterans Care Agreement to present any dispute arising under or 
related to the agreement.
    ``(2) Before using any dispute resolution mechanism under chapter 
71 of title 41 with respect to a dispute arising under a Veterans Care 
Agreement under this section, an eligible provider must first exhaust 
the administrative procedures established by the Secretary under 
paragraph (1).
    ``(i) Annual Reports.--Not later than October 1 of the year 
following the fiscal year in which the Secretary first enters into a 
Veterans Care Agreement, and each year thereafter, the Secretary shall 
submit to the appropriate congressional committees an annual report 
that includes--
            ``(1) a list of all Veterans Care Agreements entered into 
        as of the date of the report; and
            ``(2) summaries of each determination made by the Secretary 
        under subsection (h)(2) during the fiscal year covered by the 
        report.
    ``(j) Quality of Care.--In carrying out this section, the Secretary 
shall use the quality of care standards set forth or used by the 
Centers for Medicare & Medicaid Services.
    ``(k) Delegation.--The Secretary may delegate the authority to 
enter into or terminate a Veterans Care Agreement, or to make a 
determination described in subsection (h)(2), at a level not below the 
Assistant Deputy Under Secretary for Health for Community Care.
    ``(l) Sunset.--The Secretary may not enter into or renew a Veterans 
Care Agreement under this section after September 30, 2017.
    ``(m) Definitions.--In this section:
            ``(1) The term `appropriate congressional committees' 
        means--
                    ``(A) the Committees on Veterans' Affairs of the 
                House of Representatives and the Senate; and
                    ``(B) the Committees on Appropriations of the House 
                of Representatives and the Senate.
            ``(2) The term `eligible provider' means a provider of 
        hospital care, medical services, or extended care that the 
        Secretary determines is eligible to enter into Veterans Care 
        Agreements under subsection (c).
            ``(3) The term `Veterans Care Agreement' means an agreement 
        entered into by the Secretary with an eligible provider under 
        subsection (a)(1).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1703 the following new item:

``1703A. Veterans Care Agreements with certain health care 
                            providers.''.

SEC. 3. 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;
                    (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 either 
                not compensated by the Secretary or is compensated 
                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 (1); 
                        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 Committee on Veterans' Affairs of the Senate, 
        the Committee on Veterans' Affairs of the 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) Community Veterans Engagement Board.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary shall establish a 
        Community Veterans 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
                    (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.
            (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, or stakeholders.
            (3) Community input.--In carrying out subparagraphs (A) and 
        (B) of 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, 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 Committee 
        on Veterans' Affairs of the Senate, the Committee on Veterans' 
        Affairs of the 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 
        Committee on Veterans' Affairs of the Senate, the Committee on 
        Veterans' Affairs of the 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 
                Committee on Veterans' Affairs of the Senate, the 
                Committee on Veterans' Affairs of the 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 lease under the Los Angeles Homeless Veterans 
        Leasing Act of 2016,'' before ``shall be considered''.

SEC. 4. 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 ``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 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; and
                    (B) the Committees on the Budget of the House of 
                Representatives and the Senate.
                                 <all>