House Report 113-245 - DEMANDING ACCOUNTABILITY FOR VETERANS ACT OF 2013

[House Report 113-245]
[From the U.S. Government Publishing Office]

113th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 113-245

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

DEMANDING ACCOUNTABILITY FOR VETERANS ACT OF 2013

_______

October 16, 2013.--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. 2072]

[Including cost estimate of the Congressional Budget Office]

The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 2072) to amend title 38, United States Code, to
improve the accountability of the Secretary of Veterans Affairs
to the Inspector General of 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.............................................. 5
Background and Need for Legislation.............................. 6
Hearings......................................................... 11
Subcommittee Consideration....................................... 12
Committee Consideration.......................................... 12
Committee Votes.................................................. 12
Committee Oversight Findings..................................... 12
Statement of General Performance Goals and Objectives............ 13
New Budget Authority, Entitlement Authority, and Tax Expenditures 13
Earmarks and Tax and Tariff Benefits............................. 13
Committee Cost Estimate.......................................... 13
Congressional Budget Office Estimate............................. 13
Federal Mandates Statement....................................... 17
Advisory Committee Statement..................................... 17
Statement of Constitutional Authority............................ 17
Applicability to Legislative Branch.............................. 17
Statement on Duplication of Federal Programs..................... 17
Disclosure of Directed Rulemaking................................ 17
Section-by-Section Analysis of the Legislation................... 17
Changes in Existing Law Made by the Bill as Reported............. 21

Amendment in the Nature of a Substitute

The amendment is as follows:
Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Demanding Accountability for Veterans
Act of 2013''.

SEC. 2. SCORING OF BUDGETARY EFFECTS.

The budgetary effects of this Act, for the purpose of complying with
the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the House Budget Committee, provided that
such statement has been submitted prior to the vote on passage.

SEC. 3. ACCOUNTABILITY OF SECRETARY OF VETERANS AFFAIRS TO INSPECTOR
GENERAL OF THE DEPARTMENT OF VETERANS AFFAIRS.

(a) In General.--Chapter 7 of title 38, United States Code, is
amended by adding at the end the following new section:

``Sec. 712. Accountability of Secretary to Inspector General

``(a) List of Managers.--(1) If the Inspector General of the
Department of Veterans Affairs determines that the Secretary has not
appropriately responded with significant progress to a covered report
by the date specified in the action plan of the Secretary developed in
response to such covered report--
``(A) the Inspector General shall notify the Committees on
Veterans' Affairs of the Senate and House of Representatives
and the Secretary of such failure to appropriately respond; and
``(B) not later than 15 days after such notification, the
Secretary shall submit to the Inspector General a list of the
names of each responsible manager and the matter in the action
plan for which the manager is responsible.
``(2) The Inspector General may not make public the names of
responsible managers submitted under paragraph (1)(B).
``(b) Performance of Responsible Managers.--(1) The Secretary shall--
``(A) promptly notify each responsible manager of a covered
issue by not later than seven days after the date on which the
Secretary submits to the Inspector General the name of the
manager under subsection (a)(1)(B);
``(B) direct such manager to resolve such issue; and
``(C) provide such manager with appropriate counseling and a
mitigation plan with respect to resolving such issue.
``(2) The Secretary shall ensure that any performance review of a
responsible manager includes an evaluation of whether the manager took
appropriate actions during the period covered by the review to respond
to the covered issue for which a request was made under subsection (a).
``(3) The Secretary may not pay to a responsible manager any bonus or
award, including a performance award under section 5384 of title 5 if
the covered issue for which a request was made under subsection (a) is
unresolved.
``(c) Role of Inspector General.--Any authority of the Inspector
General provided under this section is in addition to any
responsibility or authority provided to the Inspector General in the
Inspector General Act of 1978 (5 U.S.C. App).
``(d) Definitions.--In this section:
``(1) The term `covered issue' means, with respect to a
responsible manager, an issue described in a covered report for
which the manager is or was responsible.
``(2) The term `covered report' means a report by the
Inspector General of the Department of Veterans Affairs that
recommends actions to the Secretary of Veterans Affairs (or
other official or employee of the Department) to address an
issue in the Department with respect to public health or
safety.
``(3) The term `responsible manager' means an individual
who--
``(A) is an employee of the Department;
``(B) is or was responsible for an issue included in
a covered report; and
``(C) in being so responsible, is or was employed in
a management position, regardless of whether the
employee is in the competitive civil service, Senior
Executive Service, or other type of civil service.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
711 the following new item:

``712. Accountability of Secretary to Inspector General.''.

SEC. 4. SECRETARY OF VETERANS AFFAIRS CONTRACT AUTHORITY FOR TRANSFER
OF VETERANS NON-DEPARTMENT MEDICAL FOSTER HOMES.

(a) Authority.--Section 1720 of title 38, United States Code, is
amended by adding at the end the following new subsection:
``(h)(1) During the three-year period beginning on October 1, 2014,
at the request of a veteran for whom the Secretary is required to
provide nursing home care under section 1710A of this title, the
Secretary may transfer the veteran to a medical foster home that meets
Department standards, at the expense of the United States, pursuant to
a contract or agreement entered into between the Secretary and the
medical foster home for such purpose. A veteran who is transferred to a
medical foster home under this subsection shall agree, as a condition
of such transfer, to accept home health services furnished by the
Secretary under section 1717 of this title.
``(2) For purposes of this subsection, the term `medical foster home'
means a home designed to provide non-institutional, long-term,
supportive care for veterans who are unable to live independently and
prefer a family setting.''.
(b) Effective Date.--Subsection (h) of title 38, United States Code,
as added by subsection (a), shall take effect on October 1, 2014.

SEC. 5. CONDITIONS ON THE AWARD OF PER DIEM PAYMENTS BY THE SECRETARY
OF VETERANS AFFAIRS FOR THE PROVISION OF HOUSING OR
SERVICES TO HOMELESS VETERANS.

(a) Condition.--
(1) In general.--Paragraph (1) of section 2012(c) of title
38, United States Code, is amended to read as follows:
``(1) Except as provided in paragraph (2), a per diem payment may not
be provided under this section to a grant recipient or eligible entity
unless the entity submits to the Secretary an annual certification,
approved or verified by the authority having jurisdiction or a
qualified third party, as determined by the Secretary, that the
facility where the entity provides housing or services for homeless
veterans using grant funds is in compliance with codes relevant to the
operations and level of care provided, including applicable provisions
of the most recently published version of the Life Safety Code or
International Building Code and International Fire Code (or such
versions of such codes that have been adopted as State or local codes
by the jurisdiction in which the facility is located), licensing
requirements, fire and safety requirements, and any other requirements
in the jurisdiction in which the facility is located regarding the
condition of the facility and the operation of the entity providing
such supportive housing or services. For purposes of this paragraph, if
a facility where a grant recipient or eligible entity provides housing
or services for homeless veterans using grant funds is located in a
jurisdiction without relevant code requirements, the Secretary shall
determine code and inspection requirements to be applied to the
facility.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to an application for a per diem
payment under section 2012 of title 38, United States Code,
submitted on or after the date of the enactment of this Act.
(b) Annual Report.--Section 2065(b) of title 38, United States Code,
is amended--
(1) by redesignating paragraph (6) as paragraph (7); and
(2) by inserting after paragraph (5) the following new
paragraph (6):
``(6) The Secretary's evaluation of the safety and
accessibility of facilities used to provide programs
established by grant recipients or eligible entities under
section 2011 and 2012 of this title, including the number of
such grant recipients or eligible entities who have submitted a
certification under section 2012(c)(1).''.
(c) Treatment of Current Recipients.--In the case of the recipient of
a per diem payment under section 2012 of title 38, United States Code,
that receives such a payment during the year in which this Act is
enacted, the Secretary of Veterans Affairs shall require the recipient
to submit the certification required under section 2012(c)(1) of such
title, as amended by subsection (a)(1), by not later than two years
after the date of the enactment of this Act. If the recipient fails to
submit such certification by such date, the Secretary may not make any
additional per diem payments to the recipient under such section 2012
until the recipient submits such certification.

SEC. 6. EXTENSION OF LOAN GUARANTY FEE FOR CERTAIN SUBSEQUENT LOANS.

(a) Extension.--Section 3729(b)(2) of title 38, United States Code,
is amended--
(1) in subparagraph (A)--
(A) in clause (iii), by striking ``October 1, 2017''
and inserting ``October 1, 2018''; and
(B) in clause (iv), by striking ``October 1, 2017''
and inserting ``October 1, 2018'';
(2) in subparagraph (C)--
(A) in clause (i), by striking ``October 1, 2017''
and inserting ``October 1, 2018''; and
(B) in clause (ii), by striking ``October 1, 2017''
and inserting ``October 1, 2018''; and
(3) in subparagraph (D)--
(A) in clause (i), by striking ``October 1, 2017''
and inserting ``October 1, 2018''; and
(B) in clause (ii), by striking ``October 1, 2017''
and inserting ``October 1, 2018''.

SEC. 7. LAND CONVEYANCE, DEPARTMENT OF VETERANS AFFAIRS PROPERTY,
TUSKEGEE, ALABAMA.

(a) Findings.--Congress makes the following findings:
(1) In 1922, Tuskegee University voted to donate three
hundred acres of land to the United States to build a veterans'
hospital, a portion of which is described in subsection (b).
(2) The property is administered by the Department of
Veterans Affairs and has been used as space for the Tuskegee
Veteran's Hospital.
(3) Tuskegee University (hereinafter referred to as the
``University'') is a State-related land grant institution of
higher learning that intends to use the property described in
subsection (b) to further the education and general welfare of
its students.
(4) As provided in subsection (b), the conveyance of the
property to the University would promote the University's
educational mission and related purposes and result in savings
to the Federal Government.
(b) Conveyance Authorized.--The Secretary of Veterans Affairs shall,
without consideration, convey all right, title, and interest of the
United States in and to a parcel of real property, including
improvements thereon, consisting of approximately 64.5 acres located at
2400 Hospital Road, Tuskegee, Alabama, including building numbers 19-
29, 50-51, 59-60, 62-63, 80, 94, 96, and 124, to Tuskegee University,
for the purpose of permitting Tuskegee University to use the property
to further the education and general welfare of its students. In
carrying out the conveyance under this subsection, the Secretary may
survey all or a portion of the property to be conveyed if the Secretary
determines such a survey would be necessary or desirable.
(c) Hazardous Substances.--Notwithstanding section 120(h) of the
Comprehensive Environmental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9620(h)) or the Solid Waste Disposal Act (42 U.S.C.
6901 et seq.), in the conveyance of the property under subsection (b),
the Secretary shall be only required to meet the disclosure
requirements for hazardous substances, pollutants, and contaminants,
but otherwise shall not be required to remediate or abate the release
of any hazardous substance, pollutant, or contaminant, including
petroleum and petroleum derivatives.
(d) Cooperative Authority.--
(1) Leases, contracts, and cooperative agreements
authorized.--In conjunction with, or in addition to, the
conveyance under subsection (b), the Secretary may enter into
leases, contracts, and cooperative agreements with the
University related to the conveyance authorized under
subsection (b).
(2) Sole source.--Notwithstanding division C of subtitle I of
title 41, United States Code, or any other provision of law,
the Secretary may lease real property from the University on a
noncompetitive basis.
(3) Non-exclusive authority.--The authority provided by this
subsection is in addition to any other authority of the
Secretary.
(e) Additional Terms and Conditions.--The Secretary may require such
reasonable terms and conditions in connection with the conveyance under
subsection (b) as the Secretary considers appropriate to protect the
interests of the United States, except that the conveyance may not
require further administrative or environmental analyses or
examination.
(f) Limitation.--The Secretary may not make the conveyance under
subsection (b) before October 1, 2014.

SEC. 8. EXTENSION OF AUTHORITY OF SECRETARY OF VETERANS AFFAIRS TO
OBTAIN CERTAIN INFORMATION FROM THE SECRETARY OF
THE TREASURY OR THE COMMISSIONER OF SOCIAL
SECURITY.

Section 5317 of title 38, United States Code, is amended by striking
``September 30, 2016'' and inserting ``May 31, 2017''.

Purpose and Summary

H.R. 2072, the Demanding Accountability for Veterans Act of
2013, was introduced by Representative Dan Benishek of
Michigan, the Chairman of the Subcommittee on Health of the
Committee on Veterans' Affairs, on May 21, 2013. In addition to
H.R. 2072, the amended version of the bill reflects the
Committee's consideration of several bills introduced during
the 113th Congress, including H.R. 1612, introduced by
Representative Mike Rogers of Alabama, to direct the Secretary
of Veterans Affairs to convey a parcel of land in Tuskegee,
Alabama, to Tuskegee University; H.R. 2065, the Safe Housing
for Homeless Veterans Act, introduced by Representative David
McKinley of West Virginia; and H.R. 2726, the Long-Term Care
Veterans Choice Act, introduced by Representative Jeff Miller
of Florida, the Chairman of the Committee.
H.R. 2072, as amended, would: require the Department of
Veterans Affairs Inspector General (VAOIG) to determine whether
appropriate action has been taken by the Department of Veterans
Affairs (VA) in response to a VAOIG report concerning public
health or patient safety by the date specified in the
applicable VA action plan; require the VAOIG to notify the
House and Senate Veterans' Affairs Committees and the Secretary
of any failure of the Department to respond appropriately;
require the Secretary, following such notification, to report
the names of managers responsible for implementing the
Department's relevant action plan to the VAOIG within 15 days
and prohibit the VAOIG from making such names public; require
the Secretary to promptly notify each responsible manager of an
issue in a covered report, direct that responsible manager to
resolve the issue, and provide such manager with counseling and
a mitigation plan to resolve the issue; require VA to include
an evaluation of whether or not such manager took appropriate
action to a covered report in his or her performance review;
and, prohibit VA from paying a bonus or performance award to
any responsible manager if an issue in a covered report is left
unresolved.
It would also authorize VA, for three years beginning on
October 1, 2014, to enter into a contract or agreement with a
certified medical foster home to pay for long-term care for
certain veterans already eligible for VA-paid nursing home care
and, require an eligible veteran to receive VA home health
services as a component of such payment.
It would further: require per diem payment recipients under
VA's Homeless Grant and Per Diem Program to provide VA with a
certification of compliance with all relevant fire, safety, and
building codes; allow entities already receiving grants or
assistance under the program to submit such a certification
within two years of enactment; require VA to determine the code
requirement for a facility in a location without a code
requirement and also to determine how such facility should be
inspected; and, require VA to include an accounting and
evaluation of the safety and accessibility of facilities used
for homeless veterans in the Annual Report on Assistance to
Homeless Veterans.
Finally, it would extend the current rate of certain VA
housing loan guaranty funding fees from October 1, 2017, to
October 1, 2018; direct VA to convey to Tuskegee University in
Alabama, specified real property at 2400 Hospital Road in
Tuskegee, for the purpose of permitting the University to use
the property to further the education and general welfare of
its students; and, extend the authority of VA to receive
information from the Internal Revenue Service for pension
income verification purposes from September 30, 2016, to May
31, 2017.

Background

Section 3--Accountability of Secretary of Veterans Affairs to Inspector
General of the Department of Veterans Affairs

The VAOIG conducts independent oversight reviews and
investigations designed to improve the effectiveness and
efficiency of VA programs and monitor the health care provided
to veterans.
The Office of Management and Budget requires the OIG to
follow up and report on the status of VAOIG recommendations and
requires VA to acknowledge that it is taking action to correct
agency deficiencies as indicated by the VAOIG investigatory
recommendations. The VAOIG is also required to submit a
Semiannual Report to Congress on the status of report
recommendations.
As of March 2013, the VAOIG reported that there were 194
total open reports and 1,030 total open recommendations, of
which 42 have remained open for more than a year. The Veterans
Health Administration has the largest number of open reports
with 139 and the largest number of open recommendations with
823 which were not yet implemented by the Administration.
The Committee believes that the large number of
unacknowledged open recommendations at VA has reached
unacceptable levels. Further, the Committee has grave concerns
surrounding the emerging pattern of serious patient safety
issues occurring at VA medical centers across the country, a
number of which were addressed by the Committee during a
September 9, 2013, oversight hearing entitled, ``A Matter of
Life and Death: Examining Preventable Deaths, Patient Safety
Issues and Bonuses for VA Execs Who Oversaw Them.'' The
Committee believes this provision is the first step toward
addressing these issues and creating a culture of
accountability within the Department. Congressional action
demanding increased accountability is warranted, particularly
when it involves problems and deficiencies in VA health care
programs and operations related to public health or patient
safety in need of corrective actions.
Section 3 of the bill would address serious deficiencies in
the timely implementation of VAOIG recommendations that are
critical to improving the programs and delivery of care and
services to our Nation's veterans. H.R. 2072, as amended, would
require the VAOIG to determine whether appropriate action has
been taken by VA in response to a VAOIG report concerning
public health or patient safety by the date specified in the
applicable VA action plan and notify the House and Senate
Veterans' Affairs Committees and the VA Secretary of the
Department's failure to respond appropriately. This measure
would also require the Secretary, following such notification,
to report the names of managers responsible for implementing
the Department's relevant action plan to the VAOIG within 15
days and prohibit the VAOIG from making such names public.
Section 3 would further require the Secretary to promptly
notify each responsible manager of an issue in a covered
report, direct that responsible manager to resolve the issue,
and provide him or her with counseling and a mitigation plan.
Moreover, it would require VA to include an evaluation of
whether or not such manager took appropriate action to a
covered report in his or her performance review, and, prohibit
VA from paying a bonus or performance award to any responsible
manager if an issue in a covered report is left unresolved.

Section 4--Secretary of Veterans Affairs contract authority for
transfer of veterans non department of medical foster homes

Section 101 of the Veterans Millennium Health Care and
Benefits Act, Public Law 106-117(113 Stat. 1545, 1547) requires
VA to provide nursing home services to all enrolled veterans
who are 70 percent or more service-connected, or 60 percent or
more service-connected and unemployable and in need of such
care, or who are service-connected for a condition that makes
such care necessary. VA meets the requirements of the law by
providing short- and long-term nursing care, respite, and end-
of-life care through three different settings, including:
Community Living Centers located on VA medical campuses;
purchased care in Community Nursing Homes; and, through the
State Veterans Nursing Home program.
Additionally, VA provides a variety of non-institutional
long-term care services to allow many veterans to remain within
their homes and delay or avoid nursing home placement. One of
the many non-institutional long-term care programs VA provides
is the Community Residential Care (CRC) program.
The CRC program is authorized under section 1730 of title
38, United States Code and is a form of enriched housing which
provides health care supervision to eligible veterans not in
need of hospital or nursing home care, but who, because of
medical or psychosocial limitations are not able to live
independently or have care needs that exceed the capabilities
of their families. VA health care personnel may assist veterans
by referring them for placement in a privately or publicly
owned community residential care facility if certain criteria
are met. CRC regulations are codified at 38 C.F.R. Sec. 17.61
through Sec. 17.72.
A relatively new variant of CRC is known as the Medical
Foster Home (MFH). The MFH program began as a pilot project in
1999 for veterans who have higher levels of complex medical
conditions and disabilities due to chronic disease, frailty, or
traumatic injury and are unable to live independently, but who
prefer a family setting. In general, a MFH is an adult foster
home combined with a VA interdisciplinary home care team to
provide non-institutional long-term care for veterans.
A MFH is generally distinguished from other CRC homes by
the following: the home is owned or rented by the MFH
caregiver; the MFH caregiver lives in the MFH and provides
personal care and supervision; there are not more than three
residents receiving care in the MFH, including both veterans
and non-veterans; and veteran MFH residents are enrolled in a
VA Home Based Primary Care or Spinal Cord Injury Home Care
Program.
Each VA medical center facility appoints a MFH Coordinator
to oversee the approval, inspection and placement process for
MFHs in the community. VA also provides safeguards to ensure
veterans receive safe, high-quality care by requiring MFH
caregivers to pass a federal background check and VA screening,
agree to undergo annual training, and allow VA to make both
announced and unannounced home visits. The Committee commends
VA for its focus on education and training of MFH caregivers to
ensure quality and effective specialized care for veterans. The
Committee recommends VA enter into partnerships with ongoing
caregiver training initiatives to develop and host additional
training to ensure incoming MFH caregivers are adequately
trained and experienced and to help support and retain existing
MFH caregivers.
Today, according to VA, over 400 approved caregivers
provide MFH care in their homes to over 500 veterans daily in
over 35 states, establishing that MFH care can be the best
option for veterans seeking high-quality, personalized, long
term care in a more private setting.
However, because a MFH is not considered institutional care
that is eligible for VA nursing home payments, VA does not have
the authority under the CRC program to pay for the cost of the
MFH. A veteran who chooses to live in a MFH must pay out of
pocket with personal funds, regardless of whether or not such
veteran is eligible for VA-paid nursing home care.
The inability of VA to pay for this type of long term care
has forced service-connected veterans eligible for VA paid
nursing home care who choose to reside in MFHs to pay for the
service themselves, or to defer the MFH option in order to
reside in an institutional setting that may not be the best
option for the veteran's needs. According to VA, many more
veterans would elect to receive care in a MFH should VA be
granted the authority to pay for care in such facilities.
As the veteran population continues to age, the need for
long-term care services will continue to grow. The Committee
believes it is important to expand the long term care choices
offered to veterans beyond traditional services and provide VA
authority to pay for long term care in qualifying MFHs for
qualifying veterans. Granting VA this authority would allow a
veteran to choose a more tailored long term care option that
best fits the quality of life they seek. Of additional benefit,
VA has found that this action would provide a cost saving for
the Department.
Section 4 would authorize VA, for three years beginning on
October 1, 2014, to enter into a contract or agreement with a
certified medical foster home to pay for long-term care for
certain veterans already eligible for VA-paid nursing home
care. It would also require an eligible veteran to receive VA
home health services as a component of such payment.

Section 5--Conditions on the award of per diem payments by the
Secretary of Veterans Affairs for the provision of housing or
services to homeless veterans

VA operates a number of programs and initiatives designed
to assist veterans experiencing or at-risk for homelessness,
including the Homeless Grant and Per Diem (GPD) Program.
The GPD Program, which is governed by sections 2012 and
2013 of title 38, United States Code, consists of two parts:
the grants portion of the program and the per diem portion of
the program. Eligible grant recipients may apply for funding
for one or both parts. The grants portion provides capital
grants to acquire, construct, expand, or remodel facilities for
use as either service centers or transitional housing
facilities. The per diem portion reimburses non-profit and
public entities for the cost of providing housing and
supportive services for homeless veterans.
VA awarded approximately $28.4 million in grants and,
collectively, more than 14,000 transitional housing beds were
provided to homeless veterans in all fifty states, the District
of Columbia, Guam, and Puerto Rico.
38 U.S.C. Sec. 2011(b)(5) stipulates that VA ensure that
entities receiving grants under the GPD Program meet fire and
safety requirements established by VA as well as all applicable
state and local codes and standards. VA medical center
clinicians in each local jurisdiction act as liaisons between
the Department and the GPD-funded entity and are responsible
for ensuring compliance with this provision. There is no
similar statutory requirement for recipients of per diem
payments under the GPD Program.
Grant and per diem recipients under the GPD program
generally operate what are known as, ``residential room and
board facilities.'' From 2006 to 2010, more than nineteen
hundred structure fires were reported in facilities of this
kind, resulting in ten deaths, 61 injuries, and $8 million in
property damage. Given this and given the vulnerable, high-risk
veteran population cared for in these facilities, the Committee
strongly believes the per diem recipients under VA's GPD
Program should be required by law to certify that they meet
relevant fire and safety requirements.
Section 5 of the bill would require per diem payment
recipients under VA's GPD program to provide VA with a
certification of compliance with all relevant fire, safety, and
building codes. The certification would include compliance with
requirements outlined in the recently published version of the
Life Safety Code, the International Building Code and the
International Fire Code, or similar codes that have been
adopted as State or local codes in the jurisdiction of the
project. In addition, all licensing requirements regarding the
condition of the structure and the operation of supportive
housing or service center, including fire and safety
requirements, must be provided.
Section 5 would also allow entities already receiving
grants or assistance under the program to submit such a
certification within two years of enactment. It would further
require VA to determine the code requirement for a facility in
a location without a code requirement and determine how such
facility should be inspected. Section 5 would also require VA
to include an accounting and evaluation of the safety and
accessibility of facilities used for homeless veterans in the
Annual Report on Assistance to Homeless Veterans.

Section 6--Extension of loan guaranty fee for certain subsequent loans

Section 3729 of title 38, United States Code, requires the
payment of an upfront funding fee when a servicemember or
veteran uses their VA loan guaranty benefit. The funding fee
varies based on an individual's status, the amount of down
payment brought forward, and the date of loan origination. The
rates of funding fees (expressed as a percentage of the
principal) for subsequent use have been in effect since 2009
and are set to be reduced on October 1, 2017.
This section would extend through October 1, 2018, the
rates of funding fees that would otherwise be reduced on
October 1, 2017 for subsequent use loans. These fees reduce the
subsidy cost associated with VA's guaranty of mortgage loans
and have typically been viewed as a reasonable cost to the
benefit gained by having VA guarantee a mortgage loan. Such
fees can also be rolled into the principal of the loan. The
Committee believes the extension of these rates will not have a
negative impact on veterans' or servicemembers' ability to
acquire the finances necessary for a subsequent loan after
their initial VA home loan usage.
Section 6 would amend 38 U.S.C. 3729(b)(2) to extend the
current funding rate fee schedule for certain qualifying loans
through October 1, 2018. This section is designed as an offset
for future costs of Section 4 of this bill, as scored by the
Congressional Budget Office (CBO).

Section 7--Land conveyance, Department of Veterans Affairs Property,
Tuskegee, Alabama

In 1922, the Tuskegee Institute donated three hundred acres
of land to the United States Government for the purpose of
constructing a hospital for African American veterans that had
fought in World War I. The Tuskegee VA hospital, at one time,
was a large facility with over 2,000 operating beds.
In 1997, with a shifting emphasis to outpatient care and a
call to reduce overhead and redundant services, the facility at
Tuskegee merged with the Montgomery VA Medical Center into the
Central Alabama VA Health Care System (CAVHCS). The East
(Tuskegee) and West (Montgomery) campuses are approximately 40
miles apart.
With the consolidation, the VA Tuskegee campus currently
contains over 500,000 excess square feet of underutilized and
unused space. A significant number of the buildings have been
closed for over ten years, and, while those buildings are
locked, there are still maintenance costs associated with the
property.
Tuskegee University, on the other hand, is experiencing
exponential growth. To support plans for expansion, the
University desires to have 64.5 acres and 240,000 square feet
of land and buildings transferred from CAVHCS back to Tuskegee
University.
The VA does not foresee a future need for the property,
with additional reductions in space planned. The VA has
determined that remaining campus buildings have adequate
capacity for any future needs as identified in both the Capital
Asset Inventory and Capital Master Plan for CAVHCS.
Both VA and Tuskegee University support that the transfer
of the property to the University would benefit both
organizations. The transfer would allow the University to
construct classrooms, research laboratories, and offices for a
number of new academic degree programs including programs in
Public Health, Nursing, Educational Psychology and Counseling.
The transfer would not only provide CAVHS with new partnership
opportunities, but would allow the VA to dispose of a
significant amount of unused space and reduce overhead costs.
However, there is no administrative mechanism to directly
transfer the property to the University, absent special
authority granted by Congress to transfer the unused 64.5
acres, located at 2400 Hospital Road, Tuskegee, Alabama, to
Tuskegee University.
Section 7 of the bill provides the necessary authority to
direct VA to convey the specified property to Tuskegee
University for the purpose of the educational enrichment of its
students.

Section 8--Extension of authority of Secretary of Veterans Affairs to
obtain certain information from the Secretary of the Treasury
or the Commissioner of Social Security

VA currently has the authority to obtain income
verification information from the Secretary of the Treasury and
the Secretary from the Commissioner of Social Security of
veterans applying for VA benefits. Such authority is set to
expire on September 30, 2016.
Section 8 would extend the VA's authorization to obtain
this information through May 31, 2017.

Hearings

On May 21, 2013, the Subcommittee on Health conducted a
legislative hearing on various bills introduced during the
113th Congress, including Draft Legislation, The Veterans
Integrated Mental Health Care Act of 2013; Draft Legislation,
The Demanding Accountability for Veterans Act of 2013; H.R.
241; H.R. 288; H.R. 984; and H.R. 1284.
The following witnesses testified:
The Honorable Dennis Ross of Florida; the Honorable Brett
Guthrie of Kentucky; Mark Edney, MD, FACS, Member of the
Legislative Affairs Committee and the Urotrauma Task Force
American Urological Association; Michael O'Rourke, Assistant
Director of Government Relations for the Blinded Veterans
Association; Adrian Atizado, Assistant National Legislative
Director for the Disabled American Veterans; Alex Nicholson,
Legislative Director of Iraq and Afghanistan Veterans of
America; Alethea Predeoux, Associate Director for Health
Analysis of the Paralyzed Veterans of America; and Robert L.
Jesse M.D., Ph.D., the Principal Deputy Under Secretary for
Health for the Veterans Health Administration of the U.S.
Department of Veterans Affairs, accompanied by Susan Blauert,
the Deputy Assistant General Counsel for the U.S. Department of
Veterans Affairs.
Statements for the Record were submitted by the following:
The American Legion; the Department of Veterans Affairs
Office of the Inspector General; the Military Officers
Association of America; the Veterans of Foreign Wars;
VetsFirst/the United Spinal Association; and the Wounded
Warrior Project
On July 9, 2013, the Subcommittee on Health conducted a
legislative hearing on various bills introduced during the
113th Congress, including Draft Legislation, the Long-Term Care
Veterans Choice Act; H.R. 1443; H.R. 1612; H.R. 1702; and H.R.
2065.
The following witnesses testified:
The Honorable Mike Rogers of Alabama; the Honorable David
McKinley of West Virginia; Jacob Gadd, the Deputy Director for
Health Care for the Veterans Affairs and Rehabilitation
Commission of the American Legion; Susan E. Shore Ph.D., the
Chair of the Scientific Advisory Committee for the American
Tinnitus Association; Adrian Atizado, the Assistant National
Legislative Director for the Disabled American Veterans; Robert
Drexler, Member of the Board of Directors for the International
Code Council, Raymond C. Kelley, Director of the National
Legislative Service for the Veterans of Foreign Wars; and
Robert L. Jesse M.D., Ph.D., the Principal Deputy Under
Secretary for Health for the Veterans Health Administration of
the U.S. Department of Veterans Affairs, accompanied by Susan
Blauert, the Deputy Assistant General Counsel for the U.S.
Department of Veterans Affairs.
Statements for the record were submitted by the following:
The Honorable Ron Barber of Arizona; the Iraq and
Afghanistan Veterans of America; Tuskegee University; the
National Association of State Fire Marshals; the National
Coalition for Homeless Veterans; the Paralyzed Veterans of
America; the Vietnam Veterans of America; and the Wounded
Warrior Project.

Subcommittee Consideration

The Subcommittee met in an open markup session on July 23,
2013, a quorum being present. Mr. Benishek offered an amendment
in the nature of a substitute to H.R. 2072 which added the
provisions of H.R. 2726, H.R. 2065, and H.R. 1612. The
amendment was adopted and H.R. 2072, as amended, was favorably
forwarded to the full Committee by voice vote.

Committee Consideration

On August 1, 2013, the full Committee met in an open markup
session, a quorum being present, and ordered H.R. 2072, as
amended, reported favorably to the House of Representatives by
voice vote.
During consideration of H.R. 2072, the following amendment
was considered and agreed to by voice vote:
An amendment in the nature of a substitute offered by Mr.
Benishek of Michigan which combined the contents of H.R. 2072,
H.R. 1612, H.R. 2065, and H.R. 2726 and inserted a provision
that would extend the current rate of certain VA housing loan
guaranty funding fees from October 1, 2017, to October 1, 2018
and a provision that would extend the VA's authority to receive
information from the Internal Revenue Service for pension
income verification purposes from September 30, 2016, to May
31, 2017.

Committee Votes

Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report the legislation and amendments thereto.
There were no record votes taken on amendments or in connection
with ordering H.R. 2072, as amended, reported to the House. A
motion by Ranking Member Michael H. Michaud of Maine to report
H.R. 2072, as amended, favorably to the House of
Representatives was agreed to by voice vote.

Committee Oversight Findings

In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.

Statement of General Performance Goals and Objectives

In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.

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. 2072, 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.
2072, 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. 2072, 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, August 16, 2013.
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. 2072, the
Demanding Accountability for Veterans Act of 2013.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is David Newman.
Sincerely,
Douglas W. Elmendorf.
Enclosure.

H.R. 2072--Demanding Accountability for Veterans Act of 2013

Summary: H.R. 2072 would increase the fees charged to
certain veterans who obtain loans guaranteed by the Department
of Veterans Affairs (VA). It also would extend VA's authority
to verify income reported by recipients of VA pension benefits
using data from the Internal Revenue Service (IRS). Those two
changes would decrease direct spending by $182 million over the
2014-2018 period and by $191 million over the 2014-2023 period,
CBO estimates. Pay-as-you-go procedures apply because enacting
the legislation would affect direct spending.
H.R. 2072 also would increase spending subject to
appropriation, primarily by allowing VA to pay for eligible
veterans to live in medical foster homes. CBO estimates that
implementing H.R. 2072 would have a discretionary cost of $170
million over the 2014-2018 period, subject to appropriation of
the necessary amounts.
H.R. 2072 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2072 is shown in the following table.
The costs of this legislation fall within budget function 700
(veterans benefits and services).

----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2014 2015 2016 2017 2018 2014-2018
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDINGa
Loan Guarantee Fees:
Estimated Budget Authority.......................... 0 0 0 0 -176 -176
Estimated Outlays................................... 0 0 0 0 -176 -176
Income Verification:
Estimated Budget Authority.......................... 0 0 0 -3 -3 -6
Estimated Outlays................................... 0 0 0 -3 -3 -6
Total Changes:
Estimated Budget Authority...................... 0 0 0 -3 -179 -182
Estimated Outlays............................... 0 0 0 -3 -179 -182

CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Medical Foster Care:
Estimated Authorization Level....................... 0 20 38 60 58 176
Estimated Outlays................................... 0 18 36 57 58 169
Property Conveyance:
Estimated Authorization Level....................... 0 1 0 0 0 1
Estimated Outlays................................... 0 1 0 0 0 1
Total Changes:
Estimated Authorization Level................... 0 21 38 60 58 177
Estimated Outlays............................... 0 19 36 57 58 170
----------------------------------------------------------------------------------------------------------------
aCBO estimates that enacting H.R. 2072 would decrease direct spending by $191 million over the 2014-2023 period.

Basis of estimate: For the purposes of this estimate, CBO
assumes that the legislation will be enacted near the beginning
of fiscal year 2014, that the necessary amounts will be
appropriated each year, and that outlays will follow historical
spending patterns for similar and existing programs.

Direct spending

H.R. 2072 would decrease direct spending by increasing some
of the fees VA charges for guaranteeing home loans and by
extending VA's authority to verify with the IRS income reported
by recipients of VA pension benefits.
Loan Guarantee Fees. Under its Home Loan program, VA
provides lenders guarantees on mortgages made to veterans;
those guarantees enable veterans to get better loan terms, such
as lower interest rates or smaller down payments. The loan
guarantees provide lenders a payment of up to 25 percent of the
outstanding loan balances (subject to some limitations on the
original loan amounts) in the event that a veteran defaults on
a guaranteed loan. Section 6 would increase some of the fees
that VA charges veterans for providing those guarantees. By
partially offsetting the costs of subsequent defaults, those
fees lower the subsidy cost of the guarantees.\1\
---------------------------------------------------------------------------
\1\Under the Federal Credit Reform Act of 1990, the subsidy cost of
a loan guarantee is the net present value of estimated payments by the
government to cover defaults and delinquencies, interest subsidies, or
other expenses, offset by any payments to the government, including
origination fees, other fees, penalties, and recoveries on defaulted
loans. Such subsidy costs are calculated by discounting those expected
cash flows using the rate on Treasury securities of comparable
maturity. The resulting estimated subsidy costs are recorded in the
budget when the loans are disbursed.
---------------------------------------------------------------------------
Under current law, the up-front fee varies on the basis of
the size of the down payment and whether the veteran has
previously used the loan-guarantee benefit. Borrowers who are
members of the reserve component pay an additional fee of 0.25
percent of the loan amount. Veterans who receive compensation
for service-connected disabilities are exempt from paying the
fee. The current fees that would be affected by section 6 are:
2.15 percent of the loan amount for loans
with no down payment,
1.50 percent of the loan amount for loans
with a 5 percent down payment, and
0.75 percent of the loan amount for loans
with a 10 percent down payment.
Those fees are scheduled to decline on October 1, 2017, to
1.40 percent, 0.75 percent, and 0.50 percent, respectively.
Under section 6, that scheduled fee reduction would be
delayed by one year, until October 1, 2018. Continuing the fees
at their current level in 2018 would increase collections by VA
in that year, thereby lowering the subsidy cost of the loan
guarantees. Based on data from VA, CBO estimates that enacting
section 6 would reduce direct spending by $176 million in
fiscal year 2018.
Income Verification. Section 8 would extend VA's authority
to verify income reported by recipients of VA pension benefits
by allowing it to acquire information on income from the IRS.
VA uses that authority to determine if veterans who apply for
pensions have income that would render them ineligible for that
benefit. The authorization allowing the IRS to provide income
information to VA was made permanent by Public Law 110-245, but
the authorization allowing VA to acquire the information is
scheduled to expire on September 30, 2016. Section 8 would
extend VA's authority through May 31, 2017.
Over the last several years, VA saved, on average, $4
million a year in improper pension payments by using the IRS
data to verify veterans' incomes. CBO estimates that the
incremental savings from utilizing the IRS data to verify
incomes for an additional eight months would be about $3
million in 2017. The savings from identifying those ineligible
veterans who apply during that eight-month period would
continue to accrue in subsequent years. CBO estimates that
section 8 would reduce direct spending by $6 million over the
2014-2018 period and $15 million over the 2014-2023 period.

Spending subject to appropriation

Medical Foster Care. Section 4 would allow certain veterans
whose nursing home care is paid for by VA to live in medical
foster homes (MFHs) at VA's expense. MFHs are private homes in
which a trained caregiver provides services to a few
individuals. VA has an existing program under which it inspects
and approves MFHs for veterans. Veterans living in such homes
receive VA's Home Based Primary Care services, which includes
case management and health care provided in the home. However,
VA is not authorized to pay the living expenses of veterans in
MFHs.
Section 4 would allow certain veterans who are currently
receiving VA-sponsored nursing home care to transfer from
nursing homes to MFHs during the 2015-2017 period, and it would
cover the total costs for those veterans. CBO expects that once
the veterans transfer to foster care, VA will continue to pay
for their care in those facilities indefinitely. Section 4 also
would allow VA to cover the living expenses of certain veterans
currently in MFHs.
Based on information from VA on current usage of MFHs, CBO
estimates that, under section 4, about 900 veterans would
become eligible to have VA pay for their medical foster care in
2015, and the number of beneficiaries would increase to 1,100
by the end of 2017. The average annual cost of providing such
care is roughly $50,000 per veteran. That amount excludes the
cost of home-based medical care, inspections, and assessments
that VA already covers for veterans currently in MFHs. Thus,
CBO estimates that enacting this section would cost an
additional $169 million over the 2014-2018 period, assuming
appropriation of the necessary amounts.
Property Conveyance. Section 7 would require VA to convey
some land and facilities at the Tuskegee Veterans' Hospital to
Tuskegee University after 2014. VA would not be compensated for
the costs of conveyance or the value of real property. CBO
estimates that the administrative costs of preparing the
property for conveyance would be around $1 million in 2015.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2072 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON AUGUST 1, 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------------------------------------------------------
2013- 2013-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2018 2023
--------------------------------------------------------------------------------------------------------------------------------------------------- -------
NET DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact..... 0 0 0 0 -3 -179 -2 -2 -2 -2 -2 -182 -191
--------------------------------------------------------------------------------------------------------------------------------------------------------

Intergovernmental and private-sector impact: H.R. 2072
contains no intergovernmental or private-sector mandates as
defined in UMRA. As a condition of receiving federal financial
assistance, the bill would require state and local governments
to comply with code and inspection requirements at facilities
that provide assistance to homeless veterans. Any costs the
governments incur would be voluntary.
Estimate prepared by: Federal Costs: Ann E. Futrell, David
Newman, and Dwayne M. Wright; Impact on State, Local, and
Tribal Governments: Lisa Ramirez-Branum; Impact on the Private
Sector: Elizabeth Bass
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.

Federal Mandates Statement

The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 2072, 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.
2072, as amended.

Statement of Constitutional Authority

Pursuant to Article I, section 8 of the United States
Constitution, the reported bill 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 the legislation 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(j) of H. Res. 5, 113th Cong. (2013),
the Committee finds that no provision of H.R. 2072, 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(k) of H. Res. 5, 113th Cong. (2013),
the Committee estimates that H.R. 2072, as amended, does not
require any directed rule makings.

Section-by-Section Analysis of the Legislation

Section 1. Short title

Section 1 of this bill would provide that the short title
of H.R. 2072, as amended, would be the ``Demanding
Accountability for Veterans Act of 2013.''

Section 2. Scoring of budgetary effects

Section 2 of this bill would require the budgetary effects
of this Act, for the purposes of complying with the Statutory
Pay-As-You-Go Act, be determined according to the latest
statement entitled ``Budgetary Effects of PAYGO Legislation''
as submitted to the Congressional Record by the Chairman of the
House Budget Committee.

Section 3. Accountability of Secretary of Veterans Affairs to Inspector
General of the Department of Veterans Affairs

Section 3 of the bill would amend title 38, United States
Code, to create a new section 712, which would require that in
the event the VAOIG determines that the Secretary has not
appropriately responded with significant progress to a covered
report by the date specified in the action plan the Inspector
General shall notify the Committees on Veterans' Affairs of the
Senate and House of Representatives and the Secretary of such
failure to appropriately respond; and not later than 15 days
after such notification, the Secretary shall submit to the
Inspector General a list of the names of each responsible
manager and the matter in the action plan for which the manager
is responsible.
38 U.S.C. Sec. 712(b)(1) would require the Secretary to
promptly notify each responsible manager of a covered issue by
not later than seven days after the date on which the Secretary
submits to the VAOIG the name of the manager under subsection
(a)(1)(B); and to direct such manager to resolve such issue;
and to provide such manager with appropriate counseling and a
mitigation plan with respect to resolving such issue.
38 U.S.C. Sec. 712(b)(2) would require the Secretary to
ensure that any performance review of a responsible manager
includes an evaluation of whether the manager took appropriate
actions during the period covered by the review to respond to
the covered issue for which a request was made under subsection
(a).
38 U.S.C. Sec. 712(b)(3) would require that the Secretary
may not pay to a responsible manager any bonus or award,
including a performance award under section 5384 of title 5,
United States Code, if the covered issue for which a request
was made under subsection (a) is unresolved.
38 U.S.C. Sec. 712(c) would clarify that, any authority
provided to the VAOIG under this section is in addition to any
responsibility or authority provided to the Inspector General
in the Inspector General Act of 1978 (5 U.S.C. App).
Section 3 of this bill also would create 38 U.S.C.
Sec. 712(d), which would define the terms in this section. (1)
The term `covered issue' means, with respect to a responsible
manager, an issue described in a covered report for which the
manager is or was responsible. (2) The term `covered report'
means a report by the VAOIG that recommends actions to the
Secretary of VA (or other official or employee of the
Department) to address an issue in the Department with respect
to public health or safety. (3) The term `responsible manager'
means an individual who--(A) is an employee of the Department;
(B) is or was responsible for an issue included in a covered
report; and (C) in being so responsible, is or was employed in
a management position, regardless of whether the employee is in
the competitive civil service, Senior Executive Service, or
other type of civil service.

Section 4. Secretary of Veterans Affairs contract authority for
transfer of veterans non department of medical foster homes

Section 4(a)(1) of this bill would amend section 1720 of
title 38, United States Code by adding a new subsection (h)
that would authorize VA to facilitate transfer of veterans to
medical foster homes at the request of the veteran for whom VA
is required to provide nursing home care under 38 U.S.C.
Sec. 1710(A). Under this subsection, the medical foster home
would be required to meet department standards, and the
veteran's care would be at the expense of the United States
during the three-year period beginning on October 1, 2014. Such
care would be pursuant to a contract or agreement entered into
between the Secretary and the medical foster home. A veteran
who is transferred to a medical foster home under this
subsection would be required to agree, as a condition of such
transfer, to accept home health services furnished by the
Secretary under 38 U.S.C. Sec. 1717.
Section 4(a)(2) of this bill would define the term `medical
foster home,' for the purposes of the newly created subsection
38 U.S.C. Sec. 1720(h)(1), as a home designed to provide non-
institutional, long-term, supportive care for veterans who are
unable to live independently and prefer a family setting.
Section 4(b) would make October 1, 2014 the effective date
of newly created subsection (h) of title 38, United States
Code, as added by subsection (a).

Section 5. Conditions on the award of per diem payments by the
Secretary of Veterans Affairs for the provision of housing or
services to homeless veterans

Section 5(a)(1) of this bill would amend 38 U.S.C.
Sec. 2012(c) to set conditions upon which per diem payment and
grant eligibility are premised. The conditions would require
the receiving entity to submit to the Secretary an annual
certification that the facility where the entity provides
housing or services for homeless veterans using grant funds is
in compliance with codes relevant to the operations and level
of care provided, including applicable provisions of the most
recently published version of the Life Safety Code or
International Building Code and International Fire Code. Under
this section, the facilities also would be required to include
in the certification evidence of their compliance with
licensing requirements, fire and safety requirements, and any
other requirements in the jurisdiction in which the facility is
located. This section of the bill also would require that if a
facility where a grant recipient or eligible entity provides
housing or services for homeless veterans using grant funds is
located in a jurisdiction without relevant code requirements,
the Secretary shall determine code and inspection requirements
to be applied to the facility.
Section 5(a)(2) of this bill would set an effective date
with respect to per diem payment as the date the per diem
application was submitted, which is on or after the date of the
enactment of this Act.
Section 5(b) of this bill would amend 38 U.S.C.
Sec. 2065(b) by: (1) by redesignating paragraph (6) as
paragraph (7); and by inserting after paragraph (5) a new
paragraph (6) which would provide authority for the Secretary's
evaluation of the safety and accessibility of facilities used
to provide programs established by grant recipients or eligible
entities.
Section 5(c) of this bill would require current recipients
of per diem payments to submit the certification of compliance
with relevant safety codes by no later than two years after the
enactment of this Act. If the recipient fails to submit such
certification by such date, the Secretary may not make any
additional per diem payments until the recipient submits such
certification.

Section 6. Extension of loan guaranty fee for certain subsequent loans

Section 6 of this bill would amend section 3729 of title
38, United States Code, by extending the current loan fee
schedule for certain VA guaranteed home loans through October
1, 2018.
Section 6(a) (1-3) of this bill would amend 38 U.S.C.
3729(b)(2) in subparagraph (A), clause (iii), by striking
``October 1, 2017'' and inserting ``'October 1, 2018''; and in
clause (iv), by striking ``October 1, 2017'' and inserting
``October 1, 2018''; and in subparagraph (C), clause (i), by
striking ``October 1, 2017'' and inserting ``October 1, 2018'';
and in clause (ii), by striking ``October 1, 2017'' and
inserting ``October 1, 2018''; and in subparagraph (D) in
clause (i), by striking ``October 1, 2017'' and inserting
``October 1, 2018''; and in clause (ii), by striking ``October
1, 2017'' and inserting ``October 1, 2018''.

Section 7. Land conveyance, Department of Veterans Affairs Property,
Tuskegee, Alabama

Section 7(a) of this bill expresses the findings of
Congress that Tuskegee University donated three hundred acres
of property to the United States in 1922 for the purpose of
building a veterans hospital; and that the Department of
Veterans Affairs has since administered said hospital and no
longer has use for 64.5 acres of the property; and that
Tuskegee University is a State land grant university that
intends to use the property to further the education and
general welfare of its students; and, that the conveyance of
the property to the University would promote the University's
educational mission and result in savings to the Federal
Government.
Section 7(b) of this bill would authorize the conveyance of
the 64.5 acres of property, located at 2400 Hospital Road,
Tuskegee, Alabama by the Secretary from the United States to
Tuskegee University. This conveyance would include building
numbers 19-29, 50-51, 59-60, 62-63, 80, 94, 96, and 124, and is
for the purpose of permitting Tuskegee University to use the
property to further the education and general welfare of its
students. This section also authorizes the Secretary to conduct
a survey of all or a portion of the property if the Secretary
determines a survey to be necessary or desirable.
Section 7(c) of this bill would require the Secretary to
meet the hazardous substance disclosure requirements of the
Comprehensive Environmental Response, Compensation, and
Liability Act (CERCLA) (found at 42 U.S.C. Sec. 9620(h)) and of
the Solid Waste Disposal Act, (found at 42 U.S.C. Sec. 6901).
This section also would exempt VA from liability, remediation,
or abatement requirements related to any such substances that
are present on the property at the time of conveyance.
Section 7(d)(1) of this bill would authorize the Secretary
to enter into leases, contracts and cooperative agreements with
the University related to the conveyance of the property.
Section 7(d)(2) of this bill would authorize the Secretary
to lease real property from the University on a noncompetitive
basis.
Section 7(d)(3) of this bill would provide that the
authority provided to the Secretary by this bill subsection is
in addition to any other authority of the Secretary.
Section 7(e) of this bill would allow the Secretary to
require reasonable terms and conditions in connection with the
conveyance as needed to protect the interests of the United
States except that the conveyance may not require further
administrative or environmental analyses.
Section 7(f) of this bill would limit the conveyance of the
property to occur only on or after October 1, 2014.

Sec. 8. Extension of authority of Secretary of Veterans Affairs to
obtain certain information from the Secretary of the Treasury
or the Commissioner of Social Security

Section 8 of the bill would amend section 5317 of title 38,
United States Code, by striking ``September 30, 2016'' and
inserting ``May 31, 2017.''

Changes in Existing Law Made by the Bill, as Reported

In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):

TITLE 38, UNITED STATES CODE

* * * * * * *

PART I--GENERAL PROVISIONS

* * * * * * *

CHAPTER 7--EMPLOYEES

Sec.
701. Placement of employees in military installations.
* * * * * * *
712. Accountability of Secretary to Inspector General.

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Sec. 712. Accountability of Secretary to Inspector General

(a) List of Managers.--(1) If the Inspector General of the
Department of Veterans Affairs determines that the Secretary
has not appropriately responded with significant progress to a
covered report by the date specified in the action plan of the
Secretary developed in response to such covered report--
(A) the Inspector General shall notify the Committees
on Veterans' Affairs of the Senate and House of
Representatives and the Secretary of such failure to
appropriately respond; and
(B) not later than 15 days after such notification,
the Secretary shall submit to the Inspector General a
list of the names of each responsible manager and the
matter in the action plan for which the manager is
responsible.
(2) The Inspector General may not make public the names of
responsible managers submitted under paragraph (1)(B).
(b) Performance of Responsible Managers.--(1) The Secretary
shall--
(A) promptly notify each responsible manager of a
covered issue by not later than seven days after the
date on which the Secretary submits to the Inspector
General the name of the manager under subsection
(a)(1)(B);
(B) direct such manager to resolve such issue; and
(C) provide such manager with appropriate counseling
and a mitigation plan with respect to resolving such
issue.
(2) The Secretary shall ensure that any performance review of
a responsible manager includes an evaluation of whether the
manager took appropriate actions during the period covered by
the review to respond to the covered issue for which a request
was made under subsection (a).
(3) The Secretary may not pay to a responsible manager any
bonus or award, including a performance award under section
5384 of title 5 if the covered issue for which a request was
made under subsection (a) is unresolved.
(c) Role of Inspector General.--Any authority of the
Inspector General provided under this section is in addition to
any responsibility or authority provided to the Inspector
General in the Inspector General Act of 1978 (5 U.S.C. App).
(d) Definitions.--In this section:
(1) The term ``covered issue'' means, with respect to
a responsible manager, an issue described in a covered
report for which the manager is or was responsible.
(2) The term ``covered report'' means a report by the
Inspector General of the Department of Veterans Affairs
that recommends actions to the Secretary of Veterans
Affairs (or other official or employee of the
Department) to address an issue in the Department with
respect to public health or safety.
(3) The term ``responsible manager'' means an
individual who--
(A) is an employee of the Department;
(B) is or was responsible for an issue
included in a covered report; and
(C) in being so responsible, is or was
employed in a management position, regardless
of whether the employee is in the competitive
civil service, Senior Executive Service, or
other type of civil service.

* * * * * * *

PART II--GENERAL BENEFITS

* * * * * * *

CHAPTER 17--HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE

* * * * * * *

SUBCHAPTER II--HOSPITAL, NURSING HOME, OR DOMICILIARY CARE AND MEDICAL
TREATMENT

* * * * * * *

Sec. 1720. Transfers for nursing home care; adult day health care

(a) * * *

* * * * * * *

(h)(1) During the three-year period beginning on October 1,
2014, at the request of a veteran for whom the Secretary is
required to provide nursing home care under section 1710A of
this title, the Secretary may transfer the veteran to a medical
foster home that meets Department standards, at the expense of
the United States, pursuant to a contract or agreement entered
into between the Secretary and the medical foster home for such
purpose. A veteran who is transferred to a medical foster home
under this subsection shall agree, as a condition of such
transfer, to accept home health services furnished by the
Secretary under section 1717 of this title.
(2) For purposes of this subsection, the term ``medical
foster home'' means a home designed to provide non-
institutional, long-term, supportive care for veterans who are
unable to live independently and prefer a family setting.

* * * * * * *

CHAPTER 20--BENEFITS FOR HOMELESS VETERANS

* * * * * * *

SUBCHAPTER II--COMPREHENSIVE SERVICE PROGRAMS

* * * * * * *

Sec. 2012. Per diem payments

(a) * * *

* * * * * * *

(c) Life Safety Code.--[(1) Except as provided in paragraph
(2), a per diem payment may not be provided under this section
to a grant recipient or eligible entity unless the facilities
of the grant recipient or eligible entity, as the case may be,
meet applicable fire and safety requirements under the Life
Safety Code of the National Fire Protection Association or such
other comparable fire and safety requirements as the Secretary
may specify.] (1) Except as provided in paragraph (2), a per
diem payment may not be provided under this section to a grant
recipient or eligible entity unless the entity submits to the
Secretary an annual certification, approved or verified by the
authority having jurisdiction or a qualified third party, as
determined by the Secretary, that the facility where the entity
provides housing or services for homeless veterans using grant
funds is in compliance with codes relevant to the operations
and level of care provided, including applicable provisions of
the most recently published version of the Life Safety Code or
International Building Code and International Fire Code (or
such versions of such codes that have been adopted as State or
local codes by the jurisdiction in which the facility is
located), licensing requirements, fire and safety requirements,
and any other requirements in the jurisdiction in which the
facility is located regarding the condition of the facility and
the operation of the entity providing such supportive housing
or services. For purposes of this paragraph, if a facility
where a grant recipient or eligible entity provides housing or
services for homeless veterans using grant funds is located in
a jurisdiction without relevant code requirements, the
Secretary shall determine code and inspection requirements to
be applied to the facility.

* * * * * * *

SUBCHAPTER VII--OTHER PROVISIONS

* * * * * * *

Sec. 2065. Annual report on assistance to homeless veterans

(a) * * *
(b) General Contents of Report.--Each report under subsection
(a) shall include the following:
(1) * * *

* * * * * * *

(6) The Secretary's evaluation of the safety and
accessibility of facilities used to provide programs
established by grant recipients or eligible entities
under section 2011 and 2012 of this title, including
the number of such grant recipients or eligible
entities who have submitted a certification under
section 2012(c)(1).
[(6)] (7) Any other information on those programs and
on the provision of such assistance that the Secretary
considers appropriate.

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PART III--READJUSTMENT AND RELATED BENEFITS

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CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS

* * * * * * *

Sec. 3729. Loan fee

(a) * * *
(b) Determination of Fee.--(1) * * *
(2) The loan fee table referred to in paragraph (1) is as
follows:

LOAN FEE TABLE
------------------------------------------------------------------------
Active duty Other
Type of loan veteran Reservist obligor
------------------------------------------------------------------------
(A)(i) Initial loan described 2.00 2.75 NA
in section 3710(a) to
purchase or construct a
dwelling with 0-down, or any
other initial loan described
in section 3710(a) other than
with 5-down or 10-down
(closed before January 1,
2004)........................
------------------------------------------------------------------------
(A)(ii) Initial loan described 2.20 2.40 NA
in section 3710(a) to
purchase or construct a
dwelling with 0-down, or any
other initial loan described
in section 3710(a) other than
with 5-down or 10-down
(closed on or after January
1, 2004, and before October
1, 2004).....................
------------------------------------------------------------------------
(A)(iii) Initial loan 2.15 2.40 NA
described in section 3710(a)
to purchase or construct a
dwelling with 0-down, or any
other initial loan described
in section 3710(a) other than
with 5-down or 10-down
(closed on or after October
1, 2004, and before October
1, [2017] 2018)..............
------------------------------------------------------------------------
(A)(iv) Initial loan described 1.40 1.65 NA
in section 3710(a) to
purchase or construct a
dwelling with 0-down, or any
other initial loan described
in section 3710(a) other than
with 5-down or 10-down
(closed on or after October
1, [2017] 2018)..............
------------------------------------------------------------------------
(B)(i) Subsequent loan 3.30 3.30 NA
described in section 3710 (a)
to purchase or construct a
dwelling with 0-down, or any
other subsequent loan
described in section 3710(a)
(closed before October 1,
2017)........................
------------------------------------------------------------------------
(B)(ii) Subsequent loan 1.25 1.25 NA
described in section 3710 (a)
to purchase or construct a
dwelling with 0-down, or any
other subsequent loan
described in section 3710 (a)
(closed on or after October
1, 2017).....................
------------------------------------------------------------------------
(C)(i) Loan described in 1.50 1.75 NA
section 3710(a) to purchase
or construct a dwelling with
5-down (closed before October
1, [2017] 2018)..............
------------------------------------------------------------------------
(C)(ii) Loan described in 0.75 1.00 NA
section 3710(a) to purchase
or construct a dwelling with
5-down (closed on or after
October 1, [2017] 2018)......
------------------------------------------------------------------------
(D)(i) Initial loan described 1.25 1.50 NA
in section 3710(a) to
purchase or construct a
dwelling with 10-down (closed
before October 1, [2017]
2018)........................
------------------------------------------------------------------------
(D)(ii) Initial loan described 0.50 0.75 NA
in section 3710(a) to
purchase or construct a
dwelling with 10-down (closed
on or after October 1, [2017]
2018)........................
------------------------------------------------------------------------
(E) Interest rate reduction 0.50 0.50 NA
refinancing loan.............
(F) Direct loan under section 1.00 1.00 NA
3711.........................
------------------------------------------------------------------------
(G) Manufactured home loan 1.00 1.00 NA
under section 3712 (other
than an interest rate
reduction refinancing loan)..
------------------------------------------------------------------------
(H) Loan to Native American 1.25 1.25 NA
veteran under section 3762
(other than an interest rate
reduction refinancing loan)..
------------------------------------------------------------------------
(I) Loan assumption under 0.50 0.50 0.50
section 3714.................
------------------------------------------------------------------------
(J) Loan under section 3733(a) 2.25 2.25 2.25
------------------------------------------------------------------------

* * * * * * *
PART IV--GENERAL ADMINISTRATIVE PROVISIONS

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CHAPTER 53--SPECIAL PROVISIONS RELATING TO BENEFITS

* * * * * * *

Sec. 5317. Use of income information from other agencies: notice and
verification

(a) * * *

* * * * * * *

(g) The authority of the Secretary to obtain information from
the Secretary of the Treasury or the Commissioner of Social
Security under section 6103(l)(7)(D)(viii) of the Internal
Revenue Code of 1986 expires on [September 30, 2016] May 31,
2017.

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