[United States Statutes at Large, Volume 130, 114th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]


Public Law 114-226
114th Congress

An Act


 
To authorize the Secretary of Veterans Affairs to enter into certain
leases at the Department of Veterans Affairs West Los Angeles Campus in
Los Angeles, California, to make certain improvements to the enhanced-
use lease authority of the Department, and for other
purposes. <>

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <>
SECTION 1. <>  SHORT TITLE.

This Act may be cited as the ``West Los Angeles Leasing Act of
2016''.
SEC. 2. AUTHORITY TO ENTER INTO CERTAIN LEASES AT THE DEPARTMENT
OF VETERANS AFFAIRS WEST LOS ANGELES CAMPUS.

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

[[Page 927]]

behalf of its University of California, Los Angeles (UCLA)
campus (hereinafter in this section referred to as ``The
Regents''), if--
(A) the lease is consistent with the master plan
described in subsection (g);
(B) the provision of services to veterans is the
predominant focus of the activities of The Regents at
the Campus during the term of the lease;
(C) The Regents expressly agrees to provide, during
the term of the lease and to an extent and in a manner
that the Secretary considers appropriate, additional
services and support (for which The Regents is not
compensated by the Secretary or through an existing
medical affiliation agreement) that--
(i) principally benefit veterans and their
families, including veterans that are severely
disabled, women, aging, or homeless; and
(ii) may consist of activities relating to the
medical, clinical, therapeutic, dietary,
rehabilitative, legal, mental, spiritual,
physical, recreational, research, and counseling
needs of veterans and their families or any of the
purposes specified in any of subparagraphs (A)
through (I) of paragraph (2); and
(D) <>  The Regents maintains
records documenting the value of the additional services
and support that The Regents provides pursuant to
subparagraph (C) for the duration of the lease and makes
such records available to the Secretary.

(c) Limitation on Land-Sharing Agreements.--The Secretary may not
carry out any land-sharing agreement pursuant to section 8153 of title
38, United States Code, at the Campus unless such agreement--
(1) provides additional health-care resources to the Campus;
and
(2) benefits veterans and their families other than from the
generation of revenue for the Department of Veterans Affairs.

(d) Revenues From Leases at the Campus.--Any funds received by the
Secretary under a lease described in subsection (b) shall be credited to
the applicable Department medical facilities account and shall be
available, without fiscal year limitation and without further
appropriation, exclusively for the renovation and maintenance of the
land and facilities at the Campus.
(e) Easements.--
(1) In general.--Notwithstanding any other provision of law
(other than Federal laws relating to environmental and historic
preservation), pursuant to section 8124 of title 38, United
States Code, the Secretary may grant easements or rights-of-way
on, above, or under lands at the Campus to--
(A) any local or regional public transportation
authority to access, construct, use, operate, maintain,
repair, or reconstruct public mass transit facilities,
including, fixed guideway facilities and transportation
centers; and
(B) the State of California, County of Los Angeles,
City of Los Angeles, or any agency or political
subdivision

[[Page 928]]

thereof, or any public utility company (including any
company providing electricity, gas, water, sewage, or
telecommunication services to the public) for the
purpose of providing such public utilities.
(2) Improvements.--Any improvements proposed pursuant to an
easement or right-of-way authorized under paragraph (1) shall be
subject to such terms and conditions as the Secretary considers
appropriate.
(3) Termination.--Any easement or right-of-way authorized
under paragraph (1) shall be terminated upon the abandonment or
nonuse of the easement or right-of-way and all right, title, and
interest in the land covered by the easement or right-of-way
shall revert to the United States.

(f) Prohibition on Sale of Property.--Notwithstanding section 8164
of title 38, United States Code, the Secretary may not sell or otherwise
convey to a third party fee simple title to any real property or
improvements to real property made at the Campus.
(g) Consistency With Master Plan.--The Secretary shall ensure that
each lease carried out under this section is consistent with the draft
master plan approved by the Secretary on January 28, 2016, or successor
master plans.
(h) Compliance With Certain Laws.--
(1) <>  Laws relating to leases and land use.--If the
Inspector General of the Department of Veterans Affairs
determines, as part of an audit report or evaluation conducted
by the Inspector General, that the Department is not in
compliance with all Federal laws relating to leases and land use
at the Campus, or that significant mismanagement has occurred
with respect to leases or land use at the Campus, the Secretary
may not enter into any lease or land-sharing agreement at the
Campus, or renew any such lease or land-sharing agreement that
is not in compliance with such laws, until the Secretary
certifies to the Committees on Veterans' Affairs of the Senate
and House of Representatives, the Committees on Appropriations
of the Senate and House of Representatives, and each Member of
the Senate and the House of Representatives who represents the
area in which the Campus is located that all recommendations
included in the audit report or evaluation have been
implemented.
(2) Compliance of particular leases.--Except as otherwise
expressly provided by this section, no lease may be entered into
or renewed under this section unless the lease complies with
chapter 33 of title 41, United States Code, and all Federal laws
relating to environmental and historic preservation.

(i) <>  Veterans and Community Oversight and
Engagement Board.--
(1) <>  In general.--Not
later than 180 days after the date of the enactment of this Act,
the Secretary shall establish a Veterans and Community Oversight
and Engagement Board (in this subsection referred to as the
``Board'') for the Campus to coordinate locally with the
Department of Veterans Affairs to--
(A) identify the goals of the community and veteran
partnership;

[[Page 929]]

(B) provide advice and recommendations to the
Secretary to improve services and outcomes for veterans,
members of the Armed Forces, and the families of such
veterans and members; and
(C) provide advice and recommendations on the
implementation of the draft master plan approved by the
Secretary on January 28, 2016, and on the creation and
implementation of any successor master plans.
(2) <>  Members.--The Board shall be
comprised of a number of members that the Secretary determines
appropriate, of which not less than 50 percent shall be
veterans. The nonveteran members shall be family members of
veterans, veteran advocates, service providers, real estate
professionals familiar with housing development projects, or
stakeholders.
(3) Community input.--In carrying out paragraph (1), the
Board shall--
(A) provide the community opportunities to
collaborate and communicate with the Board, including by
conducting public forums on the Campus; and
(B) focus on local issues regarding the Department
that are identified by the community, including with
respect to health care, implementation of the draft
master plan and any subsequent plans, benefits, and
memorial services at the Campus.

(j) Notification and Reports.--
(1) Congressional notification.--With respect to each lease
or land-sharing agreement intended to be entered into or renewed
at the Campus, the Secretary shall notify the Committees on
Veterans' Affairs of the Senate and House of Representatives,
the Committees on Appropriations of the Senate and House of
Representatives, and each Member of the Senate and the House of
Representatives who represents the area in which the Campus is
located of the intent of the Secretary to enter into or renew
the lease or land-sharing agreement not later than 45 days
before entering into or renewing the lease or land-sharing
agreement.
(2) Annual report.--Not later than one year after the date
of the enactment of this Act, and not less frequently than
annually thereafter, the Secretary shall submit to the
Committees on Veterans' Affairs of the Senate and House of
Representatives, the Committees on Appropriations of the Senate
and House of Representatives, and each Member of the Senate and
the House of Representatives who represents the area in which
the Campus is located an annual report evaluating all leases and
land-sharing agreements carried out at the Campus, including--
(A) <>  an evaluation of the
management of the revenue generated by the leases; and
(B) <>  the records described in
subsection (b)(3)(D).
(3) Inspector general report.--
(A) <>  In
general.--Not later than each of two years and five
years after the date of the enactment of this Act, and
as determined necessary by the Inspector General of the
Department of Veterans Affairs thereafter, the Inspector
General shall submit to the Committees on Veterans'
Affairs of the Senate and House of Representatives and
the Committees on Appropriations of the Senate and

[[Page 930]]

House of Representatives, and each Member of the Senate
and the House of Representatives who represents the area
in which the Campus is located a report on all leases
carried out at the Campus and the management by the
Department of the use of land at the Campus, including
an assessment of the efforts of the Department to
implement the master plan described in subsection (g)
with respect to the Campus.
(B) Consideration of annual report.--In preparing
each report required by subparagraph (A), the Inspector
General shall take into account the most recent report
submitted to Congress by the Secretary under paragraph
(2).

(k) Rule of Construction.--Nothing in this section shall be
construed as a limitation on the authority of the Secretary to enter
into other agreements regarding the Campus that are authorized by law
and not inconsistent with this section.
(l) Principally Benefit Veterans and Their Families Defined.--In
this section the term ``principally benefit veterans and their
families'', with respect to services provided by a person or entity
under a lease of property or land-sharing agreement--
(1) means services--
(A) provided exclusively to veterans and their
families; or
(B) that are designed for the particular needs of
veterans and their families, as opposed to the general
public, and any benefit of those services to the general
public is distinct from the intended benefit to veterans
and their families; and
(2) excludes services in which the only benefit to veterans
and their families is the generation of revenue for the
Department of Veterans Affairs.

(m) Conforming Amendments.--
(1) Prohibition on disposal of property.--Section 224(a) of
the Military Construction and Veterans Affairs and Related
Agencies Appropriations Act, 2008 (Public Law 110-161; 121 Stat.
2272) is amended by striking ``The Secretary of Veterans
Affairs'' and inserting ``Except as authorized under the Los
Angeles Homeless Veterans Leasing Act of 2016, the Secretary of
Veterans Affairs''.
(2) Enhanced-use leases.--Section 8162(c) of title 38,
United States Code, is amended by inserting ``, other than an
enhanced-use lease under the Los Angeles Homeless Veterans
Leasing Act of 2016,'' before ``shall be considered''.
SEC. 3. IMPROVEMENTS TO ENHANCED-USE LEASE AUTHORITY OF DEPARTMENT
OF VETERANS AFFAIRS.

(a) Prohibition on Waiver of Obligation of Lessee.--Paragraph (3) of
section 8162(b) of title 38, United States Code, is amended by adding at
the following new subparagraph:
``(D) The Secretary may not waive or postpone the obligation of a
lessee to pay any consideration under an enhanced-use lease, including
monthly rent.''.
(b) Clarification of Liability of Federal Government to Third
Parties.--Section 8162 of such title is amended by adding at the end the
following new subsection:

[[Page 931]]

``(d)(1) Nothing in this subchapter authorizes the Secretary to
enter into an enhanced-use lease that provides for, is contingent upon,
or otherwise authorizes the Federal Government to guarantee a loan made
by a third party to a lessee for purposes of the enhanced-use lease.
``(2) Nothing in this subchapter shall be construed to abrogate or
constitute a waiver of the sovereign immunity of the United States with
respect to any loan, financing, or other financial agreement entered
into by the lessee and a third party relating to an enhanced-use
lease.''.
(c) Transparency.--
(1) <>  Notice.--Section 8163(c)(1) of
such title is amended--
(A) by inserting ``, the Committees on
Appropriations of the House of Representatives and the
Senate, and the Committees on the Budget of the House of
Representatives and the Senate'' after ``congressional
veterans' affairs committees'';
(B) by striking ``and shall publish'' and inserting
``, shall publish'';
(C) by inserting before the period at the end the
following: ``, and shall submit to the congressional
veterans' affairs committees a copy of the proposed
lease''; and
(D) by adding at the end the following new sentence:
``With <> respect to a major
enhanced-use lease, upon the request of the
congressional veterans' affairs committees, not later
than 30 days after the date of such notice, the
Secretary shall testify before the committees on the
major enhanced-use lease, including with respect to the
status of the lease, the cost, and the plans to carry
out the activities under the lease. The Secretary may
not delegate such testifying below the level of the head
of the Office of Asset Enterprise Management of the
Department or any successor to such office.''.
(2) Annual reports.--Section 8168 of such title is amended--
(A) by striking ``to Congress'' each place it
appears and inserting ``to the congressional veterans'
affairs committees, the Committees on Appropriations of
the House of Representatives and the Senate, and the
Committees on the Budget of the House of Representatives
and the Senate'';
(B) in subsection (a)--
(i) by striking ``Not later'' and inserting
``(1) Not later'';
(ii) by striking ``a report'' and all that
follows through the period at the end and
inserting ``a report on enhanced-use leases.'';
and
(iii) by adding at the end the following new
paragraph:

``(2) Each report under paragraph (1) shall include the following:
``(A) Identification of the actions taken by the Secretary
to implement and administer enhanced-use leases.
``(B) For the most recent fiscal year covered by the report,
the amounts deposited into the Medical Care Collection Fund
account that were derived from enhanced-use leases.
``(C) Identification of the actions taken by the Secretary
using the amounts described in subparagraph (B).

[[Page 932]]

``(D) Documents of the Department supporting the contents of
the report described in subparagraphs (A) through (C).''; and
(C) in subsection (b)--
(i) by striking ``Each year'' and inserting
``(1) Each year'';
(ii) by striking ``this subchapter,'' and all
that follows through the period at the end and
inserting ``this subchapter.''; and
(iii) by adding at the end the following new
paragraph:

``(2) Each report under paragraph (1) shall include the following
with respect to each enhanced-use lease covered by the report:
``(A) An overview of how the Secretary is using
consideration received by the Secretary under the lease to
support veterans.
``(B) The amount of consideration received by the Secretary
under the lease.
``(C) The amount of any revenues collected by the Secretary
relating to the lease not covered by subparagraph (B), including
a description of any in-kind assistance or services provided by
the lessee to the Secretary or to veterans under an agreement
entered into by the Secretary pursuant to any provision of law.
``(D) The costs to the Secretary of carrying out the lease.
``(E) Documents of the Department supporting the contents of
the report described in subparagraphs (A) through (D).''.

(d) Additional Definitions.--Section 8161 of such title is amended
by adding at the end the following new paragraphs:
``(4) The term `lessee' means the party with whom the
Secretary has entered into an enhanced-use lease under this
subchapter.
``(5) The term `major enhanced-use lease' means an enhanced-
use lease that includes consideration consisting of an average
annual rent of more than $10,000,000.''.

(e) Comptroller General Audit.--
(1) Report.--Not later than 270 days after the date of the
enactment of this Act, the Comptroller General of the United
States shall submit to the appropriate congressional committees
a report containing an audit of the enhanced-use lease program
of the Department of Veterans Affairs under subchapter V of
chapter 81 of title 38, United States Code.
(2) Matters included.--The report under paragraph (1) shall
include the following:
(A) The financial impact of the enhanced-use lease
authority on the Department of Veterans Affairs and
whether the revenue realized from such authority and
other financial benefits would have been realized
without such authority.
(B) The use by the Secretary of such authority and
whether the arrangements made under such authority would
have been made without such authority.
(C) An identification of the controls that are in
place to ensure accountability and transparency and to
protect the Federal Government.
(D) <>  An overall assessment of
the activities of the Secretary under such authority to
ensure procurement cost

[[Page 933]]

avoidance, negotiated cost avoidance, in-contract cost
avoidance, and rate reductions.
(3) Appropriate congressional committees defined.--In this
subsection, the term ``appropriate congressional committees''
means--
(A) the Committees on Veterans' Affairs of the House
of Representatives and the Senate;
(B) the Committees on Appropriations of the House of
Representatives and the Senate; and
(C) the Committees on the Budget of the House of
Representatives and the Senate.

Approved September 29, 2016.

LEGISLATIVE HISTORY--H.R. 5936:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 162 (2016):
Sept. 12, considered and passed House.
Sept. 19, considered and passed Senate.