[Congressional Record Volume 150, Number 74 (Tuesday, June 1, 2004)]
[Senate]
[Pages S6284-S6288]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SPECTER (by request):
  S. 2485. A bill to amend title 38, United States Code, to improve and 
enhance the authorities of the Secretary of Veterans Affairs relating 
to the management and disposal of real property and facilities, and for 
other purposes; to the Committee on Veterans' Affairs.
  Mr. SPECTER. Mr. President, as chairman of the Committee on Veterans' 
Affairs, I have introduced today, at the request of the Secretary of 
Veterans' Affairs, S. 2485, a proposed bill to modify provisions of law 
relating to the administration of real property assets by the 
Department of Veterans' Affairs, VA. The Secretary of Veterans' Affairs 
submitted the elements of this proposed legislation to the President of 
the Senate by letters dated August 15, 2003, and October 3, 2003.
  My introduction of this measure is in keeping with the policy which I 
have adopted of generally introducing--so that there will be specific 
bills to which my colleagues and others may direct their attention and 
comments--all administration-proposed draft legislation referred to the 
Committee on Veterans' Affairs. In this case, however, I have departed 
from my usual course of simply introducing administration-advanced 
measures as forwarded to me. Measures that the administration forwarded 
in August and October, 2003, relate to similar subject matter, namely 
the administration of VA-controlled real property assets. It is my 
belief that these provisions, inasmuch as they are related, might be 
considered in a more orderly fashion as parts of a single piece of 
legislation. To facilitate that, I have included sections 401-403 of 
the administration's August 15, 2003, request, and sections 5-6 of the 
administration's October 3, 2003, request, in the single bill which I 
have introduced today. As is always my policy with respect to any such 
``by request'' legislation, I reserve the right to oppose the 
provisions of, as well as any amendment to, this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2485

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

     SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
                   CODE.

       (a) Short Title.--This Act may be cited as the ``Department 
     of Veterans Affairs Real Property and Facilities Management 
     Improvement Act of 2004''.
       (b) References to Title 38 United States Code.--Except as 
     otherwise expressly provided, whenever in this Act an 
     amendment or repeal is expressed in terms of an amendment to, 
     or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of title 38, United States Code.

     SEC. 2. AUTHORITY TO USE PROJECT FUNDS TO CONSTRUCT OR 
                   RELOCATE SURFACE PARKING INCIDENTAL TO A 
                   CONSTRUCTION OR NON-RECURRING MAINTENANCE 
                   PROJECT.

       Section 8109 is amended by adding at the end the following 
     new subsection:
       ``(j) Funds in a construction account or capital account 
     that are available for a construction project or non-
     recurring maintenance project may be used for the 
     construction or relocation of a surface parking lot 
     incidental to such project.''.

     SEC. 3. IMPROVEMENTS OF ENHANCED-USE LEASE AUTHORITIES.

       (a) Business Plan Criteria.--Section 8162 is amended--
       (1) in subsection (a)(2)(B), by striking ``the Under 
     Secretary for Health for applying the consideration under 
     such a lease to the provision of medical care and services'' 
     and inserting ``one of the Under Secretaries for applying the 
     consideration under such a lease to the programs and 
     activities of the Department''; and
       (2) in subsection (b)(4)(A), by striking ``on the leased 
     property''.
       (b) Consideration of Proposals for Leases.--(1) Section 
     8163 is amended--
       (A) in subsection (a), by striking the first sentence and 
     inserting the following new sentence: ``If the Secretary 
     proposes to enter into an enhanced-use lease with respect to 
     certain property, the Secretary shall conduct a public 
     hearing before entering into the lease.'';
       (B) in subsection (b), by striking ``of the proposed 
     designation and of the hearing'' in the matter preceding 
     paragraph (1) and inserting ``on the proposed lease and the 
     hearing to the congressional veterans' affairs committees and 
     to the public''; and
       (C) in subsection (c)--
       (i) in paragraph (1)--
       (I) by striking ``to designate the property involved'' and 
     inserting ``to enter into an enhanced-use lease of the 
     property involved''; and
       (II) by striking ``to so designate the property'' and 
     inserting ``to enter into the lease'';
       (ii) in paragraph (2), by striking ``90-day'' and inserting 
     ``45-day''; and
       (iii) by striking paragraph (4).
       (2)(A) The heading of such section is amended to read as 
     follows:

     ``Sec. 8163. Proposals for property to be leased''.

       (B) The table of sections at the beginning of chapter 81 is 
     amended by striking the item relating to section 8163 and 
     inserting the following new item:

``8163. Proposals for property to be leased.''.

       (c) Disposal Authority.--Section 8164 is amended--
       (1) in subsection (a)--
       (A) by striking ``by requesting the Administrator of 
     General Services to dispose of the property pursuant to 
     subsection (b)''; and
       (B) by striking the last sentence;
       (2) in subsection (b)--
       (A) by striking ``and the Administrator of General Services 
     jointly determine'' and inserting ``determines''; and
       (B) by striking ``and the Administrator consider'' and 
     inserting ``considers''; and
       (3) in subsection (c), by striking ``90 days'' and 
     inserting ``45 days''.
       (d) Use of Proceeds.--Section 8165 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``Funds received'' and 
     inserting ``Except as provided in paragraph (2), funds 
     received'';
       (B) by redesignating paragraph (2) as paragraph (3);
       (C) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) Funds received by the Department under an enhanced-
     use lease implementing a business plan proposed by the Under 
     Secretary for Benefits or the Under Secretary for Memorial 
     Affairs and remaining after any deduction from such funds 
     under subsection (b) shall be credited to applicable 
     appropriations of the Veterans Benefits Administration or 
     National Cemetery Administration, as the case may be.''; and
       (D) in paragraph (3), as so redesignated, by striking 
     ``nursing home revolving fund'' and inserting ``Capital Asset 
     Fund established under section 8122A of this title'';
       (2) in subsection (b)--
       (A) by inserting ``(1)'' after ``(b)''
       (B) in paragraph (1), as so designated, by striking ``for 
     that fiscal year''; and
       (C) by adding at the end the following new paragraph:
       ``(2) The Secretary may also deduct from the proceeds of 
     any enhanced-use lease an amount to reimburse applicable 
     appropriations of the Department for any expenses incurred by 
     the Secretary in the development

[[Page S6287]]

     of additional enhanced-use leases. Amounts so deducted shall 
     be utilized to reimburse such appropriations.''; and
       (3) by striking subsection (c).

     SEC. 4. DISPOSAL OF REAL PROPERTY OF THE DEPARTMENT OF 
                   VETERANS AFFAIRS.

       (a) In General.--(1) Subchapter II of chapter 81 is amended 
     by inserting after section 8122 the following new section:

     ``Sec. 8122A. Disposal of real property

       ``(a) In General.--(1) To the extent provided in advance in 
     appropriations Acts, the Secretary may, in accordance with 
     this section and sections 8122 and 8164 of this title, 
     dispose of real property of the Department, including land 
     and structures and equipment associated with such property, 
     that is under the jurisdiction or control of the Secretary 
     by--
       ``(A) transfer to or exchange with another department or 
     agency of the Federal Government;
       ``(B) conveyance to or exchange with a State or a political 
     subdivision of a State, an Indian tribe, or other public 
     entity; or
       ``(C) conveyance to or exchange with any private person or 
     entity.
       ``(2) The Secretary may exercise the authority in paragraph 
     (1) notwithstanding the following provisions of law:
       ``(A) Sections 521, 522, and 541 through 545 of title 40.
       ``(B) Section 501 of the McKinney-Vento Homeless Assistance 
     Act (42 U.S.C. 11411).
       ``(3) In any transfer, exchange, or conveyance of real 
     property under this subsection, the Secretary shall obtain 
     consideration in an amount equal to the fair market value of 
     the property, as determined by the Secretary.
       ``(b) Treatment of Proceeds.--Proceeds from the transfer, 
     exchange, or conveyance of real property under subsection (a) 
     shall be deposited in the Capital Asset Fund under subsection 
     (c).
       ``(c) Capital Asset Fund.--There is established on the 
     books of the Treasury of the United States a revolving fund 
     known as the Capital Asset Fund (in this section referred to 
     as the `Fund').
       ``(d) Elements of Fund.--The Fund shall consist of the 
     following:
       ``(1) Amounts authorized to be appropriated to the Fund.
       ``(2) Proceeds from the transfer, exchange, or conveyance 
     of real property under subsection (a) that are deposited in 
     the Fund under subsection (b).
       ``(3) Funds to be deposited in the Fund under section 
     8165(a)(3) of this title.
       ``(4) Any other amounts specified for transfer to or 
     deposit in the Fund by law.
       ``(e) Use of Amounts in Fund.--Subject to the provisions of 
     appropriations Acts, amounts in the Fund shall be available 
     for purposes as follows and in the following order of 
     priority:
       ``(1) For costs of the Department in disposing of real 
     property, including costs associated with demolition, 
     environmental clean-up, maintenance and repair, improvements 
     to facilitate disposal, and associated administrative 
     expenses.
       ``(2) For costs of the Department associated with proposed 
     disposals of real property of the Department.
       ``(3) For costs of non-recurring capital projects of the 
     Department.
       ``(f) Reports.--The Secretary shall include with the budget 
     justification documents submitted to Congress each year with 
     the budget of the President for the fiscal year beginning in 
     such year (as submitted pursuant to section 1105 of title 31) 
     a report setting forth the following:
       ``(1) A statement of each disposal of real property to be 
     undertaken in such fiscal year that is valued in excess of 
     the major medical facility project threshold specified in 
     section 8104(a)(3)(A) of this title.
       ``(2) A description of each disposal of real property that 
     was completed in the fiscal year ending in the year before 
     such report is submitted.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     8122 the following new item:

``8122A. Disposal of real property.''.

       (b) Conforming Amendment.--Section 8164(a) is amended in 
     the second sentence by inserting ``or 1822A'' after ``section 
     8122''.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated for the Department of Veterans Affairs for 
     fiscal year 2005, $10,000,000 for deposit in the Capital 
     Asset Fund under section 1822A(c) of title 38, United States 
     Code (as added by subsection (a)).

     SEC. 5. MODIFICATION OF OTHER REAL PROPERTY DISPOSAL 
                   AUTHORITIES.

       (a) General Limitations on Disposal.--Paragraph (2) of 
     subsection (a) of section 8122 is amended to read as follows:
       ``(2) Except as provided in paragraph (3) of this 
     subsection, the Secretary may not during any fiscal year 
     dispose of real property owned by the United States and under 
     the jurisdiction and control of the Secretary that has an 
     estimated value in excess of the major medical facility 
     project threshold specified in subsection 8104(a)(3)(A) of 
     this title unless--
       ``(A) the disposal is described in the budget justification 
     documents submitted to Congress each year with the budget of 
     the President for the fiscal year beginning in such year (as 
     submitted pursuant to section 1105 of title 31);
       ``(B) the Department receives consideration for the real 
     property equal to the fair market value of the property, as 
     determined by the Secretary; and
       ``(C) the net proceeds of the disposal are deposited in the 
     Capital Asset Fund under section 8122A(c) of this title.''.
       (b) Disposal Procedures.--Subsection (d) of such section is 
     amended--
       (1) by inserting ``(1)'' after ``(d)''; and
       (2) by adding at the end the following new paragraphs:
       ``(2)(A) In the case of property (including land and 
     structures and equipment associated with such property) that 
     has an estimated value less than the major medical facility 
     project threshold specified in section 8104(a)(3)(A) of this 
     title, the Secretary may dispose of the property if--
       ``(i) the Secretary notifies the Administrator of General 
     Services of an intent to dispose of the property; and
       ``(ii) a period of 30 days elapses after notice under 
     clause (i) during which period no other department or agency 
     of the Federal Government expresses an interest in assuming 
     jurisdiction of the property under the condition of paying 
     the Secretary the fair market value of the property, as 
     determined by the Secretary, of the property.
       ``(B) In disposing of property under subparagraph (A), the 
     Secretary shall publish a notice of sale in the real estate 
     section of a local newspaper of general circulation serving 
     the market in which the property is located.
       ``(3) In the case of property (including land and 
     structures and equipment associated with such property) that 
     has an estimated value in excess of the major medical 
     facility project threshold specified in section 8104(a)(3)(A) 
     of this title, the Secretary may dispose of the property if--
       ``(A) the Secretary complies with subsection (a)(2) with 
     respect to the property;
       ``(B) the Secretary--
       ``(i) notifies the Administrator of General Services of an 
     intent to dispose of the property;
       ``(ii) publishes in the Federal Register notice of an 
     intent to dispose of the property; and
       ``(iii) notifies the committees of an intent to dispose of 
     the property;
       ``(C) a period of 30 days elapses after notice under 
     subparagraph (B)(i) during which period no other department 
     or agency of the Federal Government expresses an interest in 
     assuming jurisdiction of the property under the condition of 
     paying the Secretary the fair market value of the property, 
     as determined by the Secretary, of the property; and
       ``(D) a period of 60 days elapses after notice under 
     subparagraph (B)(iii).''.

     SEC. 6. TERMINATION OF NURSING HOME REVOLVING FUND.

       (a) Termination.--(1) Section 8116 is repealed.
       (2) The table of sections at the beginning of chapter 81 is 
     amended by striking the item relating to section 8116.
       (b) Conforming Amendment.--Section 8165(a)(3), as 
     redesignated by section 3(d)(1)(D) of this Act, is further 
     amended by striking ``nursing home revolving fund'' and 
     inserting ``Capital Asset Fund under section 1822A of this 
     title''.
       (c) Transfer of Unobligated Balances to Capital Asset 
     Fund.--Any unobligated balances in the nursing home revolving 
     under section 8116 of title 38, United States Code, as of the 
     date of the enactment of this Act shall be deposited in the 
     Capital Asset Fund under section 8122A of title 38, United 
     States Code (as added by section 4(a) of this Act).

     SEC. 7. INAPPLICABILITY OF LIMITATION ON USE OF ADVANCE 
                   PLANNING FUND TO AUTHORIZED MAJOR MEDICAL 
                   FACILITY PROJECTS.

       Section 8104 is amended by adding at the end the following 
     new subsection:
       ``(g) The limitation specified in subsection (f) shall not 
     apply to projects for which funds have already been 
     authorized by law in accordance with subsection (a)(2).''.

     SEC. 8. LEASE OF CERTAIN NATIONAL CEMETERY ADMINISTRATION 
                   PROPERTY.

       (a) In General.--Chapter 24 is amended by adding at the end 
     the following new section:

     ``Sec. 2412. Lease of land and buildings

       ``(a) Lease Authorized.--The Secretary may lease any 
     undeveloped land and unused or underutilized buildings, or 
     parts or parcels thereof, belonging to the United States and 
     part of the National Cemetery Administration.
       ``(b) Term.--The term of a lease under subsection (a) may 
     not exceed 10 years.
       ``(c) Lease to Public or Nonprofit Organizations.--(1) A 
     lease under subsection (a) to any public or nonprofit 
     organization may be made without regard to the provisions of 
     section 3709 of the Revised Statutes (41 U.S.C. 5).
       ``(2) Notwithstanding section 1302 of title 40 or any other 
     provision of law, a lease under subsection (a) to any public 
     or nonprofit organization may provide for the maintenance, 
     protection, or restoration of the leased property by the 
     lessee, as a part or all of the consideration for the lease.
       ``(d) Notice.--Before entering into a lease under 
     subsection (a), the Secretary shall give appropriate public 
     notice of the intention of the Secretary to enter into the 
     lease in a newspaper of general circulation in the community 
     in which the lands or buildings concerned are located.
       ``(e) National Cemetery Administration Facilities Operation 
     Fund.--(1) There is established on the book of the Treasury 
     an account to be known as the `National Cemetery 
     Administration Facilities Operation

[[Page S6288]]

     Fund' (in this section referred to as the `Fund').
       ``(2) The Fund shall consist of the following:
       ``(A) Amounts authorized to be appropriated to the Fund.
       ``(B) Proceeds from the lease of land or buildings under 
     this section.
       ``(C) Proceeds of agricultural licenses of lands of the 
     National Cemetery Administration.
       ``(D) Any other amounts authorized for deposit in the Fund 
     by law.
       ``(3) Amounts in the Fund shall be available to cover costs 
     incurred by the National Cemetery Administration in the 
     operation and maintenance of property of the Administration.
       ``(4) Amounts in the Fund shall remain available until 
     expended.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2412. Lease of land and buildings.''.
                                 ______