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[114th Congress Public Law 226]
[From the U.S. Government Publishing Office]

[[Page 925]]

                  WEST LOS ANGELES LEASING ACT OF 2016

[[Page 130 STAT. 926]]

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. <<NOTE: Sept. 29, 2016 -  [H.R. 5936]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: West Los Angeles 
Leasing Act of 2016.>> 
SECTION 1. <<NOTE: 38 USC 101 note.>>  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) <<NOTE: Real property.>>  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) <<NOTE: Regents of the University of California.>>  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 130 STAT. 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) <<NOTE: Records.>>  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 130 STAT. 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) <<NOTE: Determination. Certification. Recommenda- 
        tions.>>  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) <<NOTE: Establishment.>>  Veterans and Community Oversight and 
Engagement Board.--
            (1) <<NOTE: Deadline. Recommenda- tions.>>  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 130 STAT. 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) <<NOTE: Determination.>>  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) <<NOTE: Evaluation.>>  an evaluation of the 
                management of the revenue generated by the leases; and
                    (B) <<NOTE: Records.>>  the records described in 
                subsection (b)(3)(D).
            (3) Inspector general report.--
                    (A) <<NOTE: Determination. Assessment.>>  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 130 STAT. 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 130 STAT. 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) <<NOTE: 38 USC 8163.>>  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 <<NOTE: Deadline. Testimony.>> 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 130 STAT. 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) <<NOTE: Assessment.>>  An overall assessment of 
                the activities of the Secretary under such authority to 
                ensure procurement cost

[[Page 130 STAT. 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:
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CONGRESSIONAL RECORD, Vol. 162 (2016):
            Sept. 12, considered and passed House.
            Sept. 19, considered and passed Senate.

                                  <all>
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