59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 114–545 

FISCAL YEAR 2016 DEPARTMENT OF VETERANS AFFAIRS 

SEISMIC SAFETY, CONSTRUCTION, AND LEASES AUTHORIZATION ACT 

MAY 10, 2016.—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. 4590] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Veterans’ Affairs, to whom was referred the 

bill (H.R. 4590) to authorize the Secretary of Veterans Affairs to 

carry out certain major medical facility projects for which appropriations are being made for fiscal year 2016, and for other purposes, 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 ............................................................................................ 4 

Background and Need for Legislation .................................................................... 4 

Hearings ................................................................................................................... 10 

Subcommittee Consideration .................................................................................. 10 

Committee Consideration ........................................................................................ 10 

Committee Votes ...................................................................................................... 11 

Committee Oversight Findings ............................................................................... 11 

Statement of General Performance Goals and Objectives .................................... 11 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 11 

Earmarks and Tax and Tariff Benefits .................................................................. 11 

Committee Cost Estimate ....................................................................................... 11 

Congressional Budget Office Estimate ................................................................... 12 

Federal Mandates Statement ................................................................................. 15 

Advisory Committee Statement .............................................................................. 15 

Constitutional Authority Statement ...................................................................... 16 

Applicability to Legislative Branch ........................................................................ 16 

Statement on Duplication of Federal Programs .................................................... 16 

Disclosure of Directed Rulemaking ........................................................................ 16 

Section-by-Section Analysis of the Legislation ...................................................... 16 

Changes in Existing Law Made by the Bill as Reported ...................................... 19 


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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 ‘‘Fiscal Year 2016 Department of Veterans Affairs 

Seismic Safety, Construction, and Leases Authorization Act’’. 

SEC. 2. AUTHORIZATION OF CERTAIN MAJOR MEDICAL FACILITY PROJECTS OF THE DEPARTMENT OF VETERANS AFFAIRS. 

(a) AUTHORIZATION.—The Secretary of Veterans Affairs may carry out the following major medical facility projects, with each project to be carried out in an 

amount not to exceed the amount specified for that project: 

(1) Seismic corrections to buildings, including retrofitting and replacement of 

high-risk buildings, in San Francisco, California, in an amount not to exceed 

$175,880,000. 

(2) Seismic corrections to facilities, including facilities to support homeless 

veterans, at the medical center in West Los Angeles, California, in an amount 

not to exceed $100,250,000. 

(3) Seismic corrections to the mental health and community living center in Long Beach, California, in an amount not to exceed $282,100,000. 

(4) Construction of an outpatient clinic, administrative space, cemetery, and columbarium in Alameda, California, in an amount not to exceed $83,782,000. 

(5) Realignment of medical facilities in Livermore, California, in an amount not to exceed $188,650,000. 

(6) Construction of a replacement community living center in Perry Point, Maryland, in an amount not to exceed $92,700,000. 

(7) Seismic corrections and other renovations to several buildings and construction of a specialty care building in American Lake, Washington, in an 

amount not to exceed $13,830,000. 

(b) AUTHORIZATION OF APPROPRIATIONS FOR CONSTRUCTION.—There is authorized 

to be appropriated to the Secretary of Veterans Affairs for fiscal year 2016 or the 

year in which funds are appropriated for the Construction, Major Projects, account, 

$937,192,000 for the projects authorized in subsection (a). 

(c) LIMITATION.—The projects authorized in subsection (a) may only be carried out 

using— 

(1) funds appropriated for fiscal year 2016 pursuant to the authorization of 

appropriations in subsection (b); 

(2) funds available for Construction, Major Projects, for a fiscal year before 

fiscal year 2016 that remain available for obligation; 

(3) funds available for Construction, Major Projects, for a fiscal year after fiscal year 2016 that remain available for obligation; 

(4) funds appropriated for Construction, Major Projects, for fiscal year 2016 

for a category of activity not specific to a project; 

(5) funds appropriated for Construction, Major Projects, for a fiscal year before fiscal year 2016 for a category of activity not specific to a project; and 

(6) funds appropriated for Construction, Major Projects, for a fiscal year after 

fiscal year 2016 for a category of activity not specific to a project. 

SEC. 3. SUBMISSION OF INFORMATION. 

Not later than 90 days after the date of the enactment of this Act, for each project 

authorized in section 2(a), the Secretary of Veterans Affairs shall submit to the 

Committees on Veterans’ Affairs of the House of Representatives and the Senate the 

following information: 

(1) A line item accounting of expenditures relating to construction management carried out by the Department of Veterans Affairs for such project. 

(2) The future amounts that are budgeted to be obligated for construction 

management carried out by the Department for such project. 

(3) A justification for the expenditures described in paragraph (1) and the future amounts described in paragraph (2). 

(4) Any agreement entered into by the Secretary regarding the Army Corps 

of Engineers providing services relating to such project, including reimbursement agreements and the costs to the Department of Veterans Affairs for such 

services. 

SEC. 4. AUTHORIZATION OF MAJOR MEDICAL FACILITY LEASES. 

The Secretary of Veterans Affairs may carry out the following major medical facility leases at the locations specified, and in an amount for each lease not to exceed 

the amount shown for such location (not including any estimated cancellation costs): 


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(1) For an outpatient clinic, Ann Arbor, Michigan, an amount not to exceed $17,093,000. 

(2) For an outpatient mental health clinic, Birmingham, Alabama, an amount not to exceed $6,971,000. 

(3) For an outpatient specialty clinic, Birmingham, Alabama, an amount not to exceed $10,479,000. 

(4) For research space, Boston, Massachusetts, an amount not to exceed $5,497,000. 

(5) For research space, Charleston, South Carolina, an amount not to exceed $6,581,000. 

(6) For an outpatient clinic, Daytona Beach, Florida, an amount not to exceed $12,664,000. 

(7) For Chief Business Office Purchased Care office space, Denver, Colorado, an amount not to exceed $17,215,000. 

(8) For an outpatient clinic, Gainesville, Florida, an amount not to exceed $4,686,000. 

(9) For an outpatient clinic, Hampton Roads, Virginia, an amount not to ex- ceed $18,124,000. 

(10) For research space Mission Bay, California, an amount not to exceed $23,454,000. 

(11) For an outpatient clinic, Missoula, Montana, an amount not to exceed $7,130,000. 

(12) For an outpatient clinic, Northern Colorado, Colorado, an amount not to exceed $8,776,000. 

(13) For an outpatient clinic, Ocala, Florida, an amount not to exceed $5,279,000. 

(14) For an outpatient clinic, Oxnard, California, an amount not to exceed $6,297,000. 

(15) For an outpatient clinic, Pike County, Georgia, an amount not to exceed $5,757,000. 

(16) For an outpatient clinic, Portland, Maine, an amount not to exceed $6,846,000. 

(17) For an outpatient clinic, Raleigh, North Carolina, an amount not to ex- ceed $21,607,000. 

(18) For an outpatient clinic, Santa Rosa, California, an amount not to exceed $6,498,000. 

SEC. 5. MONTHLY REPORTS ON STATUS OF MAJOR MEDICAL FACILITY PROJECTS. 

(a) REPORTS REQUIRED.—For each month that begins after the date of the enactment of this Act, the Secretary shall submit to Congress a report on the status of 

each major medical facility project authorized under section 2. Each such report 

shall include, for each project covered by the report, information about the status 

of the design and procurement planning, contract modification management, and 

cost escalation of the project. 

(b) TERMINATION.—The requirement to submit monthly reports under this section 

shall terminate on the date on which the Administrative Investigative Board of the 

Department of Veterans Affairs submits to Congress the report of the Administrative Investigative Board on the major medical facility project carried out at the Department medical center in Aurora, Colorado. 

SEC. 6. AUTHORIZATION OF SALE OF PERSHING HALL. 

Section 403 of the Veterans’ Benefits Programs Improvement Act of 1991 (Public 

Law 102–86; 38 U.S.C. 2400 note) is amended by adding at the end the following 

new subsection: 

‘‘(f) AUTHORIZATION OF SALE.—(1) The Secretary may sell for fair market value 

Pershing Hall and transfer and convey to the purchaser all right, title, and interest 

of the United States in or to such property. The Secretary shall determine fair market value based on an independent assessment conducted by another department or 

agency of the Federal Government or a nongovernmental entity. The Secretary may 

only accept money as consideration for such sale. 

‘‘(2) If the Secretary sells Pershing Hall pursuant to paragraph (1), the Secretary 

shall return to the entity from which the United States acquired Pershing Hall pursuant to the Act of June 28, 1935, (Chapter 323; 49 Stat. 426) any personal property 

(including memorabilia regarding General Pershing and the American Expeditionary Forces in France during World War I) in the possession of the Department 

of Veterans Affairs as of the date of the enactment of this subsection that was located in Pershing Hall (or otherwise associated with Pershing Hall) on the date of 

such acquisition. 

‘‘(3) The funds received by the Secretary pursuant to the sale of Pershing Hall 

under paragraph (1) shall be deposited in the ‘Construction, Major Projects’ account 


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1 38 U.S.C. § 8104(a)(3)(A). 

of the Department and be made available, without fiscal year limitation, for the purposes of such account. 

‘‘(4)(A) Effective on the day after the date of the sale of Pershing Hall authorized 

under paragraph (1), the authority of the Secretary to carry out subsections (a), (b), 

(c), and (e) shall terminate except for purposes of carrying out paragraph (2) of this 

subsection. 

‘‘(B) Effective on the date that is one year after the date of the sale of Pershing 

Hall authorized under paragraph (1), the Pershing Hall Revolving Fund shall be 

abolished and the corpus of the fund, including accrued interest, shall be deposited 

in the ‘Construction, Major Projects’ account of the Department and be made available, without fiscal year limitation, for the purposes of such account.’’. 

PURPOSE AND SUMMARY

H.R. 4590, the ‘‘Fiscal Year 2016 Department of Veterans Affairs 

Seismic Safety, Construction, and Leases Authorization Act,’’ was 

introduced by Representative Jeff Miller of Florida, the Chairman 

of the Committee on Veterans’ Affairs, on February 23, 2016. H.R. 

4590, as amended, was ordered to be favorably reported to the full 

House on February 25, 2016, by voice vote. 

This legislation would authorize the Department of Veterans Affairs (VA) to carry out fiscal year (FY) 2016 major medical facility 

projects in San Francisco, California; West Los Angeles, California; 

Long Beach, California; Alameda, California; Livermore, California; 

Perry Point, Maryland; and, American Lake, Washington, and require VA to submit a report to Congress containing information on 

each of these projects. H.R. 4590, as amended, would also authorize 

VA to carry out major medical facility leases in Ann Arbor, Michigan; Birmingham, Alabama; Boston, Massachusetts; Charleston, 

South Carolina; Daytona Beach, Florida; Denver, Colorado; Gainesville, Florida; Hampton Roads, Virginia; Mission Bay, California; 

Northern Colorado, Colorado; Ocala, Florida; Oxnard, California; 

Pike County, Georgia; Portland, Maine; Raleigh, North Carolina; 

and, Santa Rosa, California. 

H.R. 4590, as amended, would further require VA to submit 

monthly reports on the status of each major medical facility project 

until the Administrative Investigation Board report on the Denver 

replacement medical center project is submitted to Congress. 

Finally, H.R. 4590, as amended, would authorize VA to sell the 

Pershing Hall property in Paris, France, for fair market value. In 

order to proceed with such a sale, VA would be required to conduct 

an independent appraisal of fair market value and return any 

memorabilia in VA’s possession to the American Legion. One year 

following such a sale, VA would be required to abolish the Pershing 

Hall Revolving Fund and deposit the proceeds of the sale and the 

corpus of the revolving fund into VA’s major construction account. 

BACKGROUND AND NEED FOR LEGISLATION

Section 2—Authorization of certain major medical facility projects 

of the Department of Veterans Affairs 

Section 8104(a)(2) of title 38, United States Code (U.S.C.), requires Congressional authorization for VA major medical facility 

projects. A ‘‘major medical facility project’’ is defined as a project 

for the construction, alteration, or acquisition of a medical facility 

involving a total expenditure of more than $10 million.1


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2 VA, FY 2016 Budget Submission, February 11, 2015, and VA, FY 2017 Budget Submission, 

February 12, 2016. 

Section 2 of the bill would authorize seven major medical facility 

projects that were requested by VA in the FY 2016 VA Budget Submission.2 As described below, if authorized, these projects would: 

correct known seismic, infrastructure, and life-safety deficiencies in 

existing VA buildings; increase access to care for veteran patients; 

reduce congestion on VA medical facility campuses by adding extra 

parking spaces; demolish unused structures; and, consolidate clinical and research space. 

San Francisco, California: This project would allow for the correction of hazardous seismic, infrastructure, and life-safety deficiencies in four high-risk buildings, consolidate wet research lab 

space, and add 250 parking spaces on the San Francisco VA Medical Center’s campus, in an amount not to exceed $175.9 million. 

West Los Angeles, California: This project would allow for the 

correction of seismic, life-safety, and Facility Condition Assessment 

deficiencies in a number of buildings, demolition of two unused 

buildings, and renovation of two buildings for research purposes on 

the West Los Angeles VA Medical Center’s campus, in an amount 

not to exceed $100,250,000. 

Long Beach, California: This project would allow for the construction of a new 120-bed community living center, mental health 

inpatient and outpatient facility, parking structure, and a combined heat and power plant in place of several seismically deficient 

buildings on the Long Beach VA Healthcare System campus, in an 

amount not to exceed $282,100,000. 

Alameda, California: This project would allow for the consolidation of two existing outpatient clinic leases by constructing a new 

outpatient clinic to provide primary, specialty, mental health, substance abuse, and ambulatory surgery care, administrative space 

for the National Cemetery Administration and Veterans Benefits 

Administration, as well as additional parking spaces, in an amount 

not to exceed $83,782,000. 

Livermore, California: This project would allow for the purchase 

of land and the construction of a new community based outpatient 

clinic and 120-bed community living center in Fremont, California, 

the subsequent closure of the Livermore VA Medical Center campus, and the renovation of existing space for a minimally invasive 

procedure center at the Palo Alto VA Medical Center, in an amount 

not to exceed $188,650,000. 

Perry Point, Maryland: This project would allow for the consolidation of community living center functions that are currently 

housed in multiple out-of-date buildings by constructing a new replacement community living center and adding additional parking 

spaces on the Perry Point VA Medical Center campus, in an 

amount not to exceed $92,700,000. 

American Lake, Washington: This project would allow for the 

construction of a new outpatient facility, the renovation of an existing building to correct seismic deficiencies, and additional parking 

spaces on the American Lake Division of the VA Puget Sound 

Health Care System, in an amount not to exceed $13,830,000. 


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3GAO 13–302, GAO Report, ‘‘VA Construction: Actions Needed to Decrease Delays and Lower 

Costs of Major Medical Facility Projects,’’ April 4, 2013. 4GAO–15–332T, GAO Testimony ‘‘VA Construction: VA Actions to Address Cost Increases and 

Schedule Delays at Major Medical-Facility Projects,’’ January 21, 2015; GAO–15–564T, GAO 

Testimony, ‘‘VA Construction: Actions to Address Cost Increases and Schedule Delays at Denver 

and Other VA Major Medical-Facility Projects,’’ April 24, 2015. 5 38 U.S.C. § 8104(a)(3)(B). 

6 VA, FY 2016 Budget Submission, February 11, 2015, and VA, FY 2017 Budget Submission, 

February 12, 2016. 

Section 3—Submission of information 

VA’s management of its construction program has come under intense scrutiny in recent years following a Government Accountability Office report, which found that costs were substantially increased and schedules were delayed for the largest VA major medical facility construction projects in Denver, Colorado; Las Vegas, 

Nevada; New Orleans, Louisiana; and Orlando, Florida.3 According 

to testimony GAO provided to the Committee in January and April 

2015, these projects ranged from 66 percent to 427 percent over 

budget and 14 months to 86 months behind schedule.4 In light of 

these findings, and subsequent concerns about VA construction 

management, the Committee has been aggressively overseeing the 

status of VA’s major medical facility construction projects. 

Accordingly, section 3 of the bill would require VA to submit to 

Congress, for each of the construction projects authorized in Section 2 of the bill, a report including the following: a line item accounting of construction management expenditures for the project; 

future amounts that are budgeted to be obligated for construction 

management for the project and a justification for such expenditures; and details regarding the agreement, if any, entered into by 

VA with the Army Corps of Engineers to provide construction management services for the project, to include reimbursement agreements and costs for such agreements. 

Section 4—Authorization of major medical facility leases 

Section 8104(a)(2) of title 38, U.S.C., also requires Congressional 

authorization for VA major medical facility leases. A ‘‘major medical facility lease’’ is defined as a lease for space for use as a new 

medical facility at an average annual rental of more than $1 million.5

Section 4 of the bill would authorize eighteen major medical facility leases that were requested by VA in the FY 2016 and FY 2017 

VA Budget Submission.6

Ann Arbor, Michigan: This lease would allow for an outpatient 

clinic in Ann Arbor, Michigan, to support the VA Ann Arbor 

Healthcare System by providing primary care, mental health care, 

and certain specialty care services through an outpatient clinic 

lease, in an amount not to exceed $17,093,000. 

Birmingham, Alabama: This lease would allow for an outpatient 

clinic in Birmingham, Alabama, to support the Birmingham VA 

Medical Center by addressing outpatient mental health space, utilization gaps, and safety and security concerns, and providing more 

functional space for veteran patients through an outpatient mental 

health clinic lease, in an amount not to exceed $6,971,000. 

Birmingham, Alabama: This lease would allow for an outpatient 

specialty clinic in Birmingham, Alabama, to support the Birmingham VA Medical Facility by addressing space and utilization 


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gaps and providing optometry, dental, cardiology, gastroenterology, 

dermatology, ambulatory surgery, radiology, and other ancillary 

and diagnostic care through an outpatient specialty clinic lease, in 

an amount not to exceed $10,479,000. 

Boston, Massachusetts: This lease would allow for research space 

in Boston, Massachusetts, to support the VA Boston Healthcare 

System by addressing space and security deficiencies and providing 

space for research on a number of subjects through a research 

lease, in an amount not to exceed $5,497,000. 

Charleston, South Carolina: This lease would allow for research 

space in Charleston, South Carolina, to support the Ralph H. Johnson VA Medical Center by providing specialized space for full wet 

labs, animal research, and associated administrative space through 

a research lease, in an amount not to exceed $6,581,000. 

Daytona Beach, Florida: This lease would allow for an outpatient 

clinic in Daytona Beach, Florida, to support the Orlando VA Medical Center by consolidating two existing outpatient clinics and 

closing space, utilization, and parking gaps through an outpatient 

clinic lease, in an amount not to exceed $12,664,000. 

Denver, Colorado: This lease would allow for additional space to 

support the Chief Business Office Purchased Care activities in 

Denver, Colorado, by providing general office space through a replacement Chief Business Office, Purchased Care lease, in an 

amount not to exceed $17,215,000. 

Gainesville, Florida: This lease would allow for an outpatient 

clinic in Gainesville, Florida, to support the Malcolm Randall VA 

Medical Center by consolidating three existing mental health clinic 

leases and addressing space and utilization gaps through an outpatient clinic lease, in an amount not to exceed $4,686,000. 

Hampton Roads, Virginia: This lease would allow for an outpatient clinic in Hampton Roads, Virginia, to support the Hampton 

VA Medical Center by closing space and utilization gaps, expanding 

primary care, mental health care, and eye clinic services, and providing new space for a number of clinical services through an outpatient clinic lease, in an amount not to exceed $18,124,000. 

Mission Bay, California: This lease would allow for research 

space in Mission Bay, California, to support the San Francisco VA 

Medical Center by addressing space deficiencies, allowing for increased collaboration with academic affiliates, and providing space 

for the creation of a Center for Virtual Medicine through a research 

lease, in an amount not to exceed $23,454,000. 

Missoula, Montana: This lease would allow for an outpatient clinic in Missoula, Montana, to support the VA Montana Healthcare 

System by improving continuity of care, closing space and utilization gaps, consolidating administrative space, and expanding space 

for a number of clinic services through an outpatient clinic lease, 

in an amount not to exceed $7,130,000. 

Northern Colorado, Colorado: This lease would allow for Cheyenne VA Medical Center by consolidating existing administrative 

and community based outpatient clinic leases, generating operational efficiencies, expanded specialty care services, and accommodating increased workload through an outpatient clinic lease, in an 

amount not to exceed $8,776,000. 

Ocala, Florida: This lease would allow for an outpatient clinic in 

Ocala, Florida, to support the Malcolm Randall VA Medical Center 


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by closing space and utilization gaps, consolidating two existing 

outpatient leases, and expanding space for primary care, mental 

health care, and home based primary care through an outpatient 

clinic lease, in an amount not to exceed $5,279,000. 

Oxnard, California: This lease would allow for an outpatient clinic in Oxnard, California, to support the West Los Angeles VA Medical Center by replacing existing clinical space, increasing access to 

specialty care services, addressing space, utilization, and access 

gaps, and expanding primary care and mental health care through 

an outpatient clinic lease, in an amount not to exceed $6,297,000. 

Pike County, Georgia: This lease would allow for an outpatient 

clinic in Pike County, Georgia, to support the Dublin VA Medical 

Center by closing space, utilization, and access gaps, expanding primary care and mental health care, and providing for new specialty 

services through an outpatient clinic lease, in an amount not to exceed $5,757,000. 

Portland, Maine: This lease would allow for an outpatient clinic 

in Portland, Maine, to support the VA Maine Healthcare System by 

consolidating existing community based outpatient clinic leases, 

closing space, utilization, and access gaps, and expanding services 

for a number of specialty care services through an outpatient clinic 

lease, in an amount not to exceed $6,846,000. 

Raleigh, North Carolina: This lease would allow for an outpatient clinic in Raleigh, North Carolina, to support the Durham 

VA Medical Center by consolidating existing clinic lease space, closing space and utilization gaps, enhancing primary care, mental 

health care, dialysis, and limited specialty care services, and allowing for a number of new clinic services through an outpatient clinic 

lease, in an amount not to exceed $21,607,000. 

Santa Rosa, California: This lease would allow for an outpatient 

clinic in Santa Rosa, California, to support the San Francisco VA 

Medical Center by enhancing existing primary care and mental 

health care and allowing for a number of new clinical services 

through an outpatient clinic lease in an amount not to exceed 

$6,498,000. 

Section 5—Monthly reports on the status of major medical facility 

projects 

With the enactment of section 213 of the Veterans Health Care, 

Capital Asset, and Business Improvement Act of 2003 (Public Law 

108–170, 117 Stat. 2042), Congress authorized VA to carry out advance planning for a major medical facility project—to be operated 

jointly with the Department of Defense (DOD)—in Denver, Colorado, in an amount not to exceed $30 million, with $26 million to 

be provided by VA and $4 million to be provided by DOD. With the 

enactment of section 801 of the Veterans Benefits, Health Care, 

and Information Technology Act of 2006 (Public Law 109–461, 120 

Stat. 3403), Congress authorized VA to construct a standalone replacement medical center in Denver, Colorado, in an amount not 

to exceed $98 million. That amount was raised from $98 million to 

$568.4 million in 2008 with the enactment of section 702 of the 

Veterans’ Mental Health and Other Care Improvements Act of 

2008, (Public Law 110–387, 122 Stat. 4110) and from $568.4 million to $800 million in 2010 with the enactment of section 901 of 

the Caregivers and Veterans Omnibus Health Services Act of 2010, 


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7This amount was later refined, ultimately amounting to a request for a total authorization 

of $1.675 billion. 

(Public Law 111–163, 124 Stat. 1130). On August 31, 2010, VA 

awarded a contract to Kiewit Turner (KT) to construct the project. 

In December 2014, the Civilian Board of Contract Appeals 

(CBCA) found VA to be in breach of its contract with KT, and VA 

subsequently requested an additional $830 million in funding for 

the Denver project, for a total authorization of $1.73 billion.7 Congress authorized those additional funds with the enactment of section 2 of the Construction Authorization and Choice Improvement 

Act (Public Law 114–19, 129 Stat. 215), section 1 of Public Law 

114–25 (129 Stat. 317), and section 501 of the Department of Veterans Affairs Expiring Authorities Act of 2015 (Public Law 114–58, 

129 Stat. 530). VA subsequently transferred management of the 

project from VA to the U.S. Army Corps of Engineers and is expected to be complete in 2018—15 years after Congress first authorized the Department to begin planning it. 

Given the unprecedented cost overruns and schedule delays that 

occurred on the Denver project, the Committee has repeatedly 

sought answers from VA about how the senior leaders responsible 

for managing the project were going to be held accountable. In response, VA empaneled an Administrative Investigation Board (AIB) 

to investigate senior leadership decisions and actions related to the 

project leading up to the initial contract award on August 31, 2010, 

and through the life of the project up to the CBCA decision on December 9, 2014. However, it was not until March 22, 2016, nearly 

one month after H.R. 4590, as amended, was reported to the full 

House, that the AIB report was provided to the Committee. 

Section 3 of the bill would state that VA is required to submit 

monthly reports to Congress on the status of each major medical 

facility project to include information regarding the status of the 

design and procurement planning, contract modification management, and cost escalation of each project until the AIB report on 

the Denver replacement medical center project is submitted to Congress. 

Section 6—Authorization of sale of Pershing Hall 

Pershing Hall, located in Paris, France, was purchased by the 

American Legion in 1918 to serve as a memorial building for the 

Allied Expeditionary Forces. With the enactment of section 403 of 

the Veterans’ Benefits Programs Improvement Act of 1991 (Public 

Law 102–86, 105 Stat. 414), Congress transferred Pershing Hall to 

VA and authorized VA to enter into agreements—to include leasing 

portions of the facility for up to 35 years—for the operation, development, and improvement of Pershing Hall. With the enactment of 

section 4 of Public Law 103–79 (107 Stat. 770) in 1993, Congress 

increased the allowable lease term from up to 35 years to up to 99 

years. VA entered into a 99-year lease with the current lessee in 

1998 in accordance with this authority. According to VA testimony 

before the Committee in December 2015, the current lessee is a private developer who has made significant improvements to Pershing 

Hall, which is now used as luxury hotel, restaurant, and club in addition to a memorial. 


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Section 6 of the bill would authorize VA to sell Pershing Hall for 

fair market value, as determined by an independent appraisal of 

the property. In the event of a sale, Section 6 of the bill would require VA to return any memorabilia in its possession to the American Legion and, one year after the date of such a sale, to abolish 

the Pershing Hall Revolving Fund and deposit the proceeds of the 

sale and the corpus of the revolving fund into VA’s major construction account. 

HEARINGS

There were no Full Committee hearings held on H.R. 4590, as 

amended. On December 8, 2015, the Subcommittee on Health conducted a legislative hearing on various bills, including a draft bill 

to amend the Veterans’ Benefits Programs Improvement Act of 

1991 to authorize VA to sell Pershing Hall and a VA legislative 

proposal to authorize FY 2016 construction projects. Both the draft 

bill and the VA legislative proposal were later incorporated into 

H.R. 4590, as amended. 

The following witnesses testified: 

The Honorable John Shimkus of Illinois; The Honorable 

Ted Lieu of California; the Honorable John L. Mica of Florida; the Honorable Jerry McNerney of California; the Honorable Mike Coffman of Colorado; Raymond C. Kelley, the 

Director of the National Legislative Service for the Veterans of Foreign Wars of the United States; Howard Trace, 

the Director of the National Library and Museum Division, 

for the American Legion, accompanied by Lou Celli, the 

Director of the National Veterans Affairs and Rehabilitation Division of the American Legion; and, Stella S. Fiotes, 

the Director of the Office of Construction and Facilities 

Management for the Office of Acquisition, Logistics, and 

Construction for the U.S. Department of Veterans Affairs, 

accompanied by Vince Kane, the Special Assistant to the 

Secretary for the U.S. Department of Veterans Affairs. 

A Statement for the record was submitted by: 

The Brentwood Village Business Improvement District and 

the Brentwood Village Chamber of Commerce. 

SUBCOMMITTEE CONSIDERATION

There were no Subcommittee markups of H.R. 4590, as amended. 

COMMITTEE CONSIDERATION

On February 25, 2016, the Full Committee met in open markup 

session, a quorum being present, and ordered H.R. 4590, as amended, to be reported favorably to the House of Representatives by 

voice vote. 

During consideration of H.R. 4590 the following amendments 

were considered and agreed to by voice vote: 

An amendment offered by Representative Mike Coffman of Colorado which would: (1) authorize VA to sell Pershing Hall for fair 

market value, as determined by an independent appraisal; (2) require VA to return any memorabilia in its possession to the American Legion in the event of a sale of Pershing Hall; and (3) abolish 


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the Pershing Hall Revolving Fund one year after the date of the 

sale of Pershing Hall and deposit the proceeds from the sale and 

the corpus of the revolving fund into VA’s major construction account. 

An amendment offered by Representative Kathleen Rice of New 

York which would: (1) require VA to submit monthly reports to 

Congress on the status of each major medical facility project to include information regarding the status of design and procurement 

planning, contract modification management, and cost escalation; 

and (2) terminate the above monthly reporting requirement when 

VA submits the Administrative Investigation Board report on the 

Denver replacement medical center project to Congress. 

COMMITTEE VOTES

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, there were no recorded votes taken on 

amendments or in connection with ordering H.R. 4590, as amended, reported to the House. A motion by Ranking Member Corrine 

Brown of Florida to report H.R. 4590, 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 that the Secretary will use these provisions to complete numerous major medical facility projects, enter into numerous 

major medical facility leases, and have the ability to sell Pershing 

Hall. 

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. 4590, 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. 4590, 

as amended, prepared by the Director of the Congressional Budget 


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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. 4590, 

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, April 15, 2016. 

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. 4590, the Fiscal Year 

2016 Department of Veterans Affairs Seismic Safety, Construction, 

and Leases Authorization Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Ann E. Futrell. 

Sincerely, 

KEITH HALL. 

Enclosure. 

H.R. 4590—Fiscal Year 2016 Department of Veterans Affairs Seismic Safety, Construction, and Leases Authorization Act 

Summary: H.R. 4590 would authorize the Department of Veterans Affairs (VA) to enter into leases for major medical facilities 

at 18 specified locations and would authorize appropriations of 

$134 million to cover the initial costs of those leases. CBO estimates that the full cost of those leases would be $904 million— 

$770 million more than the authorized amounts. Based on VA’s 

long-established practice, CBO expects that the department would 

implement the authority to enter into leases by awarding contracts 

for the construction and long-term use of those facilities without recording the full amount of the government’s commitment as an obligation of its appropriated funds. Thus, enacting H.R. 4590 would 

effectively provide mandatory budget authority for an amount of 

obligations that exceeds what we expect VA initially would charge 

against its appropriation. 

In addition, the bill would allow VA to sell the Pershing Hall facility in Paris, France, and would authorize new construction and 

renovation of seven medical facilities for which funds have already 

been appropriated. 

CBO estimates that implementing the bill would have a discretionary cost of $134 million over the 2017–2021 period, assuming 

appropriation of the specified amounts. CBO also estimates that 

enacting H.R. 4590 would increase direct spending by $770 million 

over the 2016–2026 period. Because the bill would affect direct 

spending, pay-as-you-go procedures apply. Enacting the bill would 

not affect revenues. 


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1For more information on the budgetary treatment of third-party financing, see Congressional 

Budget Office, Third-Party Financing of Federal Projects (June 2005), www.cbo.gov/publication/ 

16554. 

CBO estimates that enacting H.R. 4590 would not increase net 

direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2027. 

H.R. 4590 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would not affect the budgets of state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary effect of H.R. 4590 is shown in the table below. The costs of 

this legislation fall within budget function 700 (veterans benefits 

and services). 

By fiscal year, in millions of dollars— 

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017– 

2021 

2017– 

2026 

INCREASES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level ................ * * 134 * * * * * * * 134 134 

Estimated Outlays ................. * * 121 13 * * * * * * 134 134 

INCREASES IN DIRECT SPENDING 

Estimated Budget Authority .. 0 0 770 0 0 0 0 0 0 0 770 770 

Estimated Outlays ................. 0 0 39 208 254 193 76 0 0 0 501 770 

Note: * = less than $500,000. 

Basis of estimate: For this estimate, CBO assumes that H.R. 

4590 will be enacted near the beginning of fiscal year 2017, the estimated amounts will be appropriated each year, and outlays will 

follow historical spending patterns for affected programs. 

Medical facility leases 

Section 4 would authorize VA to acquire the use of 18 medical 

facilities and would set a limit on the total cost of each lease. The 

section also would authorize appropriations of $134 million for 

those leases. VA classifies its contracts for acquiring such facilities 

as operating leases and thus records its obligations for lease payments on an annual basis over the term of the lease. However, 

CBO has reviewed a number of those contracts and has concluded 

that they are akin to government purchases of facilities built specifically for VA’s use—but instead of being financed by the Treasury, they rely on third-party financing (that is, funds raised by a 

nonfederal entity), which is generally more expensive.1 That conclusion is based on those leases having many of the following key 

features: 

• The facilities are designed and constructed to the unique specifications of the government; 

• The facilities are constructed at the request of the federal government; 

• The leases on the newly constructed facilities are long term— 

usually 20 years; 

• Payments from the federal government are the only or primary 

source of income for the facilities; 

• The term of the contractual agreements coincides with the 

term of the private partner’s financing instrument for developing 


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2See the statement of Robert A. Sunshine, Deputy Director, Congressional Budget Office, The 

Budgetary Treatment of Medical Facility Leases by the Department of Veterans Affairs, before 

the House Committee on Veterans’ Affairs, (June 27, 2013), www.cbo.gov/publication/44368. 

and constructing the facility (that is, a facility financed with a 20– 

year bond will have a 20–year lease term); 

• The federal government commits to make fixed annual payments that are sufficient to service the debt incurred to develop 

and construct the facility, regardless of whether the agency continues to occupy the facility during the guaranteed term of the 

lease; and 

• The fixed payments over the life of the lease are sufficient to 

retire the debt for the facility.2

Thus, although those transactions are structured as leases, they 

are essentially government purchases. Under the normal procedures governing the budgetary treatment of the purchase of capital 

assets, budget authority should be available and obligations should 

be recorded at the time the acquisitions are initiated and amounts 

recorded should equal the full development and construction costs 

of the medical facilities. Instead, VA records a small fraction of 

those costs as obligations when it awards the contracts for such 

transactions. 

To the extent that the full costs of developing and constructing 

the facilities exceeds the relatively small amount that VA would 

initially record as obligations against its appropriation, CBO treats 

the legislative authorization for those transactions as contract authority—a type of budget authority that allows an agency to enter 

into a contract and incur an obligation before receiving an appropriation for those activities. Because the contract authority would 

be provided in this authorizing bill, rather than in an appropriation 

act, the resulting spending is categorized as direct spending (as distinguished from discretionary spending, which results from appropriation acts). 

On the basis of information from VA, CBO estimates that the full 

cost of constructing the 18 medical facilities would be $904 million; 

the contracts for those facilities would be entered into in 2018; VA 

would record obligations of $134 million during 2018 as it entered 

into those contracts; and construction of those facilities would occur 

over the 2019–2023 period. Thus, CBO estimates that implementing section 4 would result in discretionary costs totaling $134 

million, subject to appropriation of the specified amounts. 

In addition, CBO estimates that enacting section 4 would increase direct spending by $770 million over the 2017–2021 period. 

That estimate reflects the additional budget authority needed to 

cover the full amount of the government’s commitment for the costs 

of developing and constructing the facilities (in addition to the $134 

million that CBO estimates would be charged against VA’s discretionary appropriations when the contracts were awarded). 

Major medical facility projects 

Section 2 would authorize VA to construct and renovate seven 

medical facilities at a cost of no more than $937 million. Because 

appropriations in those amounts and for those purposes have already been provided, CBO estimates no additional cost for implementing that section. 


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Pershing Hall 

Section 6 would authorize VA to sell its Pershing Hall facility in 

Paris, France. That property is currently leased through 2098, limiting the number of parties who would be interested in acquiring 

it. On the basis of currently available information, CBO is unable 

to project when or if VA would sell Pershing Hall. However, the bill 

would require that any receipts from the disposal of the property 

be deposited in a department account and be available for the purposes of that account without further appropriation action. Thus, 

CBO estimates that enacting that section would have no net budgetary effect. 

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. 4590 AS ORDERED REPORTED BY THE 

HOUSE COMMITTEE ON VETERANS’ AFFAIRS ON FEBRUARY 25,2016 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016– 

2021 

2016– 

2026 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT 

Statutory Pay-As-You-Go 

Impact ...................... 0 0 0 39 208 254 193 76 0 0 0 501 770 

Increase in long-term direct spending and deficits: CBO estimates that enacting H.R. 4590 would not increase net direct spending or on-budget deficits in any of the four consecutive 10–year periods beginning in 2027. 

Intergovernmental and private-sector impact: H.R. 4590 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would not affect the budgets of state, local, or tribal 

governments. 

Estimate prepared by: Federal costs: Ann E. Futrell; Impact on 

state, local, and tribal governments: Jon Sperl; Impact on the private sector: Paige Piper/Bach. 

Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates regarding H.R. 4590, 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. 4590, as 

amended. 


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STATEMENT OF CONSTITUTIONAL AUTHORITY

Pursuant to Article I, section 8 of the United States Constitution, 

H.R. 4590, as amended, 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 H.R. 4590, as amended, 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(g) of H. Res. 5, 114th Cong. (2015), the 

Committee finds that no provision of H.R. 4590, 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(i) of H. Res. 5, 114th Cong. (2015), the 

Committee estimates that H.R. 4590, as amended, contains no directed rule making that would require the Secretary to prescribe 

regulations. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

Section 1 of the bill would provide the short title for H.R. 4590, 

as amended, as the ‘‘Fiscal Year 2016 Department of Veterans Affairs Seismic Safety, Construction, and Leases Authorization Act.’’ 

Section 2—Authorization of certain major medical facility projects 

of the Department of Veterans Affairs 

Section 2(a) of the bill would authorize the Secretary of Veterans 

Affairs to carry out the following major medical facility projects: 

seismic corrections to buildings including retrofitting and replacement of high-risk buildings, in San Francisco, California, in an 

amount not to exceed $175,880,000 million; seismic corrections to 

facilities, including facilities to support homeless veterans, at the 

medical center in West Los Angeles, California, in an amount not 

to exceed $100,250,000; seismic corrections to the mental health 

and community living center in Long Beach, California, in an 

amount not to exceed $282,100,000; construction of an outpatient 

clinic, administrative space, cemetery, and columbarium in Alameda, California, in an amount not to exceed $83,782,000; realignment of medical facilities in Livermore, California, in an amount 

not to exceed $188,650,000; construction of a replacement community living center in Perry Point, Maryland, in an amount not to 

exceed $93,700,000; and, seismic corrections and other renovations 


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to several buildings and construction of a specialty care building in 

American Lake, Washington, in an amount not to exceed 

$13,830,000. 

Section 2(b) of the bill would authorize $937,192,000 to be appropriated to the Secretary of Veterans Affairs for fiscal year 2016 or 

the year in which funds are appropriated for the Construction, 

Major Projects, account for the projects authorized in subsection 

(a). 

Section 2(c) of the bill would stipulate that the projects authorized in subsection (a) may only be carried out using: (1) funds appropriated for fiscal year 2016 pursuant to the authorization of appropriations in subsection (b); (2) funds available for Construction, 

Major Projects, for a fiscal year before fiscal year 2016 that remain 

available for obligating; (3) funds available for Construction, Major 

Projects, for a fiscal year after fiscal year 2016 that remain available for obligation; (4) funds appropriated for Construction, Major 

Projects, for fiscal year 2016 for a category of activity not specific 

to a project; (5) funds appropriated for Construction, Major 

Projects, for a fiscal year before fiscal year 2016 for a category of 

activity not specific to a project; and (6) funds appropriated for 

Construction, Major Projects, for a fiscal year after fiscal year 2016 

for a category of activity not specific to a project. 

Section 3—Submission of information 

Section 3 of the bill would require the Secretary of Veterans Affairs, no later than 90 days after enactment and for each project 

authorized in Section 2(a), to submit to the House and Senate Committees on Veterans’ Affairs: a line item accounting of expenditures, along with their justifications, relating to construction management carried out by VA for such project; the future amounts, 

along with their justifications, that are obligated for construction 

management carried out by VA for such project; and any agreement entered into by the Secretary regarding the Army Corps of 

Engineers providing services relating to such project, including reimbursement agreements and VA’s costs for such services. 

Section 4—Authorization of major medical facility leases 

Section 4 of the bill would authorize the Secretary of Veterans 

Affairs to carry out the following major medical facility leases: for 

an outpatient clinic, Ann Arbor, Michigan, an amount not to exceed 

$17,093,000; for an outpatient mental health clinic, Birmingham, 

Alabama, an amount not to exceed $6,971,000; for an outpatient 

specialty clinic, Birmingham, Alabama, an amount not to exceed 

$10,479,000; for research space, Boston, Massachusetts, an amount 

not to exceed $5,497,000; for research space, Charleston, South 

Carolina, an amount not to exceed $6,581,000; for an outpatient 

clinic, Daytona Beach, Florida, an amount not to exceed 

$12,664,000; for Chief Business Office Purchased Care Office 

Space, Denver, Colorado, an amount not to exceed $17,215,000; for 

an outpatient clinic, Gainesville, Florida, an amount not to exceed 

$4,686,000; for an outpatient clinic, Hampton Roads, Virginia, an 

amount not to exceed $18,124,000; for research space, Mission Bay, 

California, an amount not to exceed $23,454,000; for an outpatient 

clinic, Missoula, Montana, an amount not to exceed $7,130,000; for 

an outpatient clinic, Northern Colorado, Colorado, an amount not 


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to exceed $8,776,000; for an outpatient clinic, Ocala, Florida, an 

amount not to exceed $5,279,000; for an outpatient clinic, Oxnard, 

California, an amount not to exceed $6,297,000; for an outpatient 

clinic, Pike County, Georgia, an amount not to exceed $5,757,000; 

for an outpatient clinic, Portland, Maine, an amount not to exceed 

$6,846,000; for an outpatient clinic, Raleigh, North Carolina, an 

amount not to exceed $21,607,000; and, for an outpatient clinic, 

Santa Rosa, California, an amount not to exceed $6,498,000. 

Section 5—Monthly reports on the status of major medical facility 

projects 

Section 5(a) of the bill would require the Secretary of Veterans 

Affairs, after enactment, to submit a monthly report to Congress on 

the status of each major medical facility project authorized under 

Section 2 to include information about the status of the design and 

procurement planning, contract modification management, and cost 

escalation of the project. 

Section 5(b) of the bill would stipulate that the reporting requirement in Section 5(a) would terminate on the date on which the VA 

Administrative Investigation Board submits to Congress the report 

Administrative Investigation Board on the major medical facility 

project carried out at the VA medical center in Aurora, Colorado. 

Section 6—Authorization of sale of Pershing Hall 

Section 6 of the bill would amend section 403 of the Veterans’ 

Benefits Programs Improvement Act of 1991 (Public Law 102–86; 

38 U.S.C. 2400 note) by adding at the end a new subsection ‘‘(f) Authorization of Sale.’’ 

The new subsection (f)(1) would authorize the Secretary of Veterans Affairs to sell Pershing Hall for fair market value and transfer and convey to the purchaser all right, title, and interest of the 

United States in or to the property, provided such sale is completed 

in exchange for money as consideration. It would also require the 

Secretary of Veterans Affairs to determine fair market value based 

on an independent assessment conducted by another department or 

agency of the Federal Government or a nongovernmental entity. 

The new subsection (f)(2) would require the Secretary of Veterans Affairs, upon the sale of Pershing Hall, to return to the entity from which the United States acquired Pershing Hall pursuant 

to the Act of June 28, 1935, (Chapter 323; 49 Stat. 426) any personal property (including memorabilia regarding General Pershing 

and the American Expeditionary Forces in France during World 

War I) in VA’s possession as of the date of enactment of this subsection that was located in Pershing Hall (or otherwise associated 

with Pershing Hall) on the date of such acquisition. 

The new subsection (f)(3) would require that the funds received 

by the Secretary pursuant to the sale of Pershing Hall shall be deposited in VA’s Construction, Major Projects account, and be made 

available, without fiscal year limitation, for the purposes of such 

account. 

The new subsection (f)(4) would state that the authority of the 

Secretary of Veterans Affairs to carry out subsections (a), (b), (c), 

and (e) terminates on the day after the date of the sale of Pershing 

Hall, except for the purposes of carrying out paragraph (2) of this 

subsection. This subsection would also require the Pershing Hall 


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Revolving Fund to be abolished and the corpus of the fund, including accrued interest, to be deposited in VA’s Construction, Major 

Projects account and be made available, without fiscal year limitation, for the purposes of such account, effective on the date that is 

one year after the date of sale of Pershing Hall. 

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 (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

SECTION 403 OF THE VETERANS’ BENEFITS PROGRAMS 

IMPROVEMENT ACT OF 1991 

SEC. 403. PERSHING HALL, PARIS, FRANCE. 

(a) IN GENERAL.—Pershing Hall, an existing memorial in Paris, 

France, owned by the United States, together with the personal 

property of such memorial, is hereby placed under the jurisdiction, 

custody, and control of the Department of Veterans Affairs so that 

the memorial to the commander-in-chief, officers, men, and auxiliary services of the American Expeditionary Forces in France during World War I may be continued in an appropriate manner and 

financial support be provided therefor. 

(b) ADMINISTRATION.—(1)(A) The Secretary of Veterans Affairs 

shall administer, operate, develop, and improve Pershing Hall and 

its site in such manner as the Secretary determines is in the best 

interests of the United States, which may include use of Pershing 

Hall to meet the needs of veterans. To meet such needs, the Secretary may establish and operate a regional or other office to disseminate information, respond to inquiries, and otherwise assist 

veterans and their families in obtaining veterans’ benefits. 

(B) To carry out the purposes of this section, the Secretary may 

enter into agreements authorized by subsection (c) to fund the operation of the memorial and projects authorized by subsection 

(d)(6). 

(2)(A) The Secretary shall, after consultation with the American 

Battle Monuments Commission, provide for a portion of Pershing 

Hall to be specifically dedicated, with appropriate exhibitions and 

monuments, to the memory of the commander-in-chief, officers, 

men, and auxiliary services of the American Expeditionary Forces 

in France during World War I. 

(B) The establishment and continuing supervision of the memorial that is dedicated pursuant to subparagraph (A) shall be carried 

out by the American Battle Monuments Commission. 

(3) To the extent that funds are available in the Pershing Hall 

Revolving Fund established by subsection (d), the Secretary may 

incur such expenses with respect to Pershing Hall as the Secretary 

determines necessary or appropriate. 

(4) The Secretary of Veterans Affairs may provide the allowances 

and benefits described in section 707 of title 38, United States 

Code, to personnel of the Department of Veterans Affairs who are 

United States citizens and are assigned by the Secretary to Pershing Hall. 


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(c) LEASES.—(1) The Secretary may enter into agreements as the 

Secretary determines necessary or appropriate for the operation, 

development, and improvement of Pershing Hall and its site, including the leasing of portions of the Hall for terms not to exceed 

99 years in areas that are newly constructed or substantially rehabilitated and for not to exceed 20 years in other areas of the Hall. 

(2) Leases entered into by the Secretary under this subsection 

shall be for consideration in the form of cash or in-kind, or a combination of the two, as determined by the Secretary, which shall include the value of space leased back to the Secretary by the lessee, 

net of rent paid by the Secretary, and the present value of the residual interest of the Secretary at the end of the lease term. 

(d) FUND.—(1) There is hereby established the Pershing Hall Revolving Fund to be administered by the Secretary of Veterans Affairs. 

(2) There shall be transferred to the Pershing Hall Revolving 

Fund, at such time or times as the Secretary may determine without limitation as to year, amounts as determined by the Secretary, 

not to exceed $1,000,000 in total, from funds appropriated to the 

Department of Veterans Affairs for the construction of major 

projects. The account from which any such amount is transferred 

shall be reimbursed promptly from other funds as they become part 

of the Pershing Hall Revolving Fund. 

(3) The Pershing Hall Memorial Fund, established in the Treasury of the United States pursuant to section 2 of the Act of June 

28, 1935 (Public Law 74-171; 49 Stat. 426), is hereby abolished and 

the corpus of the fund, including accrued interest, is transferred to 

the Pershing Hall Revolving Fund. 

(4) Funds received by the Secretary from operation of Pershing 

Hall or from any lease or other agreement with respect to Pershing 

Hall shall be deposited in the Pershing Hall Revolving Fund. 

(5) The Secretary of the Treasury shall invest any portion of the 

Revolving Fund that, as determined by the Secretary of Veterans 

Affairs, is not required to meet current expenses of the Fund. Each 

investment shall be made in an interest bearing obligation of the 

United States or an obligation guaranteed as to principal and interest by the United States that, as determined by the Secretary of 

Veterans Affairs, has a maturity suitable for the Revolving Fund. 

The Secretary of the Treasury shall credit to the Revolving Fund 

the interest on, and the proceeds from the sale or redemption of, 

such obligations. 

(6)(A) Subject to subparagraphs (B) and (C), the Secretary of Veterans Affairs may expend not more than $100,000 from the Fund 

in any fiscal year upon projects, activities, and facilities determined 

by the Secretary to be in keeping with the mission of the Department. 

(B) An expenditure under subparagraph (A) may be made only 

from funds that will remain in the Fund in any fiscal year after 

payment of expenses incurred with respect to Pershing Hall for 

such fiscal year and only after the reimbursement of all amounts 

transferred to the Fund under subsection (d)(2) has been completed. 

(C) An expenditure authorized by subparagraph (A) shall be reported by the Secretary to the Congress no later than November 


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1 of each year for the fiscal year ending on the previous September 

30. 

(e) WAIVER.—The Secretary may carry out the provisions of this 

section without regard to section 8122 of title 38, United States 

Code, subchapter II of chapter 5 of title 40, United States Code, 

sections 541 through 555 and 1302 of title 40, United States Code, 

or any other provision of law inconsistent with this section. 

(f) AUTHORIZATION OF SALE.—(1) The Secretary may sell for fair 

market value Pershing Hall and transfer and convey to the purchaser all right, title, and interest of the United States in or to such 

property. The Secretary shall determine fair market value based on 

an independent assessment conducted by another department or 

agency of the Federal Government or a nongovernmental entity. The 

Secretary may only accept money as consideration for such sale. 

(2) If the Secretary sells Pershing Hall pursuant to paragraph (1), 

the Secretary shall return to the entity from which the United States 

acquired Pershing Hall pursuant to the Act of June 28, 1935, 

(Chapter 323; 49 Stat. 426) any personal property (including memorabilia regarding General Pershing and the American Expeditionary Forces in France during World War I) in the possession of 

the Department of Veterans Affairs as of the date of the enactment 

of this subsection that was located in Pershing Hall (or otherwise 

associated with Pershing Hall) on the date of such acquisition. 

(3) The funds received by the Secretary pursuant to the sale of 

Pershing Hall under paragraph (1) shall be deposited in the ‘‘Construction, Major Projects’’ account of the Department and be made 

available, without fiscal year limitation, for the purposes of such account. 

(4)(A) Effective on the day after the date of the sale of Pershing 

Hall authorized under paragraph (1), the authority of the Secretary 

to carry out subsections (a), (b), (c), and (e) shall terminate except 

for purposes of carrying out paragraph (2) of this subsection. 

(B) Effective on the date that is one year after the date of the sale 

of Pershing Hall authorized under paragraph (1), the Pershing Hall 

Revolving Fund shall be abolished and the corpus of the fund, including accrued interest, shall be deposited in the ‘‘Construction, 

Major Projects’’ account of the Department and be made available, 

without fiscal year limitation, for the purposes of such account. 

Æ 


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