39–006 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 113–245 

DEMANDING ACCOUNTABILITY FOR VETERANS ACT OF 

2013 

OCTOBER 16, 2013.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. MILLER of Florida, from the Committee on Veterans’ Affairs, 

submitted the following 

R E P O R T 

[To accompany H.R. 2072] 

[Including cost estimate of the Congressional Budget Office] 

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

bill (H.R. 2072) to amend title 38, United States Code, to improve 

the accountability of the Secretary of Veterans Affairs to the Inspector General of the Department of Veterans Affairs, having considered the same, report favorably thereon with an amendment and 

recommend that the bill as amended do pass. 

CONTENTS 

Page 

Amendment .............................................................................................................. 2 

Purpose and Summary ............................................................................................ 5 

Background and Need for Legislation .................................................................... 6 

Hearings ................................................................................................................... 11 

Subcommittee Consideration .................................................................................. 12 

Committee Consideration ........................................................................................ 12 

Committee Votes ...................................................................................................... 12 

Committee Oversight Findings ............................................................................... 12 

Statement of General Performance Goals and Objectives .................................... 13 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 13 

Earmarks and Tax and Tariff Benefits .................................................................. 13 

Committee Cost Estimate ....................................................................................... 13 

Congressional Budget Office Estimate ................................................................... 13 

Federal Mandates Statement ................................................................................. 17 

Advisory Committee Statement .............................................................................. 17 

Statement of Constitutional Authority .................................................................. 17 

Applicability to Legislative Branch ........................................................................ 17 

Statement on Duplication of Federal Programs .................................................... 17 

Disclosure of Directed Rulemaking ........................................................................ 17 

Section-by-Section Analysis of the Legislation ...................................................... 17 

Changes in Existing Law Made by the Bill as Reported ...................................... 21 


EMCDONALD on DSK67QTVN1PROD with HEARING
2 

AMENDMENT IN THE NATURE OF A SUBSTITUTE

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Demanding Accountability for Veterans Act of 

2013’’. 

SEC. 2. SCORING OF BUDGETARY EFFECTS. 

The budgetary effects of this Act, for the purpose of complying with the Statutory 

Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement 

titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this Act, submitted for printing 

in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage. 

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

OF THE DEPARTMENT OF VETERANS AFFAIRS. 

(a) IN GENERAL.—Chapter 7 of title 38, United States Code, is amended by adding 

at the end the following new section: 

‘‘§ 712. Accountability of Secretary to Inspector General 

‘‘(a) LIST OF MANAGERS.—(1) If the Inspector General of the Department of Veterans Affairs determines that the Secretary has not appropriately responded with 

significant progress to a covered report by the date specified in the action plan of 

the Secretary developed in response to such covered report— 

‘‘(A) the Inspector General shall notify the Committees on Veterans’ Affairs 

of the Senate and House of Representatives and the Secretary of such failure 

to appropriately respond; and 

‘‘(B) not later than 15 days after such notification, the Secretary shall submit 

to the Inspector General a list of the names of each responsible manager and 

the matter in the action plan for which the manager is responsible. 

‘‘(2) The Inspector General may not make public the names of responsible managers submitted under paragraph (1)(B). 

‘‘(b) PERFORMANCE OF RESPONSIBLE MANAGERS.—(1) The Secretary shall— 

‘‘(A) promptly notify each responsible manager of a covered issue by not later 

than seven days after the date on which the Secretary submits to the Inspector 

General the name of the manager under subsection (a)(1)(B); 

‘‘(B) direct such manager to resolve such issue; and 

‘‘(C) provide such manager with appropriate counseling and a mitigation plan 

with respect to resolving such issue. 

‘‘(2) The Secretary shall ensure that any performance review of a responsible manager includes an evaluation of whether the manager took appropriate actions during 

the period covered by the review to respond to the covered issue for which a request 

was made under subsection (a). 

‘‘(3) The Secretary may not pay to a responsible manager any bonus or award, 

including a performance award under section 5384 of title 5 if the covered issue for 

which a request was made under subsection (a) is unresolved. 

‘‘(c) ROLE OF INSPECTOR GENERAL.—Any authority of the Inspector General provided under this section is in addition to any responsibility or authority provided 

to the Inspector General in the Inspector General Act of 1978 (5 U.S.C. App). 

‘‘(d) DEFINITIONS.—In this section: 

‘‘(1) The term ‘covered issue’ means, with respect to a responsible manager, 

an issue described in a covered report for which the manager is or was responsible. 

‘‘(2) The term ‘covered report’ means a report by the Inspector General of the 

Department of Veterans Affairs that recommends actions to the Secretary of 

Veterans Affairs (or other official or employee of the Department) to address an 

issue in the Department with respect to public health or safety. 

‘‘(3) The term ‘responsible manager’ means an individual who— 

‘‘(A) is an employee of the Department; 

‘‘(B) is or was responsible for an issue included in a covered report; and 

‘‘(C) in being so responsible, is or was employed in a management position, regardless of whether the employee is in the competitive civil service, 

Senior Executive Service, or other type of civil service.’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter 

is amended by inserting after the item relating to section 711 the following new 

item: 

‘‘712. Accountability of Secretary to Inspector General.’’. 


EMCDONALD on DSK67QTVN1PROD with HEARING
3 

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

(a) AUTHORITY.—Section 1720 of title 38, United States Code, is amended by adding at the end the following new subsection: 

‘‘(h)(1) During the three-year period beginning on October 1, 2014, at the request 

of a veteran for whom the Secretary is required to provide nursing home care under 

section 1710A of this title, the Secretary may transfer the veteran to a medical foster home that meets Department standards, at the expense of the United States, 

pursuant to a contract or agreement entered into between the Secretary and the 

medical foster home for such purpose. A veteran who is transferred to a medical foster home under this subsection shall agree, as a condition of such transfer, to accept 

home health services furnished by the Secretary under section 1717 of this title. 

‘‘(2) For purposes of this subsection, the term ‘medical foster home’ means a home 

designed to provide non-institutional, long-term, supportive care for veterans who 

are unable to live independently and prefer a family setting.’’. 

(b) EFFECTIVE DATE.—Subsection (h) of title 38, United States Code, as added by 

subsection (a), shall take effect on October 1, 2014. 

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

VETERANS. 

(a) CONDITION.— 

(1) IN GENERAL.—Paragraph (1) of section 2012(c) of title 38, United States 

Code, is amended to read as follows: 

‘‘(1) Except as provided in paragraph (2), a per diem payment may not be provided 

under this section to a grant recipient or eligible entity unless the entity submits 

to the Secretary an annual certification, approved or verified by the authority having jurisdiction or a qualified third party, as determined by the Secretary, that the 

facility where the entity provides housing or services for homeless veterans using 

grant funds is in compliance with codes relevant to the operations and level of care 

provided, including applicable provisions of the most recently published version of 

the Life Safety Code or International Building Code and International Fire Code (or 

such versions of such codes that have been adopted as State or local codes by the 

jurisdiction in which the facility is located), licensing requirements, fire and safety 

requirements, and any other requirements in the jurisdiction in which the facility 

is located regarding the condition of the facility and the operation of the entity providing such supportive housing or services. For purposes of this paragraph, if a facility where a grant recipient or eligible entity provides housing or services for homeless veterans using grant funds is located in a jurisdiction without relevant code requirements, the Secretary shall determine code and inspection requirements to be 

applied to the facility.’’. 

(2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply 

with respect to an application for a per diem payment under section 2012 of 

title 38, United States Code, submitted on or after the date of the enactment 

of this Act. 

(b) ANNUAL REPORT.—Section 2065(b) of title 38, United States Code, is amended— 

(1) by redesignating paragraph (6) as paragraph (7); and 

(2) by inserting after paragraph (5) the following new paragraph (6): 

‘‘(6) The Secretary’s evaluation of the safety and accessibility of facilities used 

to provide programs established by grant recipients or eligible entities under 

section 2011 and 2012 of this title, including the number of such grant recipients or eligible entities who have submitted a certification under section 

2012(c)(1).’’. 

(c) TREATMENT OF CURRENT RECIPIENTS.—In the case of the recipient of a per 

diem payment under section 2012 of title 38, United States Code, that receives such 

a payment during the year in which this Act is enacted, the Secretary of Veterans 

Affairs shall require the recipient to submit the certification required under section 

2012(c)(1) of such title, as amended by subsection (a)(1), by not later than two years 

after the date of the enactment of this Act. If the recipient fails to submit such certification by such date, the Secretary may not make any additional per diem payments to the recipient under such section 2012 until the recipient submits such certification. 

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

(a) EXTENSION.—Section 3729(b)(2) of title 38, United States Code, is amended— 

(1) in subparagraph (A)— 

(A) in clause (iii), by striking ‘‘October 1, 2017’’ and inserting ‘‘October 1, 

2018’’; and 


EMCDONALD on DSK67QTVN1PROD with HEARING
4 

(B) in clause (iv), by striking ‘‘October 1, 2017’’ and inserting ‘‘October 1, 

2018’’; 

(2) in subparagraph (C)— 

(A) in clause (i), by striking ‘‘October 1, 2017’’ and inserting ‘‘October 1, 

2018’’; and 

(B) in clause (ii), by striking ‘‘October 1, 2017’’ and inserting ‘‘October 1, 

2018’’; and 

(3) in subparagraph (D)— 

(A) in clause (i), by striking ‘‘October 1, 2017’’ and inserting ‘‘October 1, 

2018’’; and 

(B) in clause (ii), by striking ‘‘October 1, 2017’’ and inserting ‘‘October 1, 

2018’’. 

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

ALABAMA. 

(a) FINDINGS.—Congress makes the following findings: 

(1) In 1922, Tuskegee University voted to donate three hundred acres of land 

to the United States to build a veterans’ hospital, a portion of which is described in subsection (b). 

(2) The property is administered by the Department of Veterans Affairs and 

has been used as space for the Tuskegee Veteran’s Hospital. 

(3) Tuskegee University (hereinafter referred to as the ‘‘University’’) is a 

State-related land grant institution of higher learning that intends to use the 

property described in subsection (b) to further the education and general welfare of its students. 

(4) As provided in subsection (b), the conveyance of the property to the University would promote the University’s educational mission and related purposes and result in savings to the Federal Government. 

(b) CONVEYANCE AUTHORIZED.—The Secretary of Veterans Affairs shall, without 

consideration, convey all right, title, and interest of the United States in and to a 

parcel of real property, including improvements thereon, consisting of approximately 

64.5 acres located at 2400 Hospital Road, Tuskegee, Alabama, including building 

numbers 19–29, 50–51, 59–60, 62–63, 80, 94, 96, and 124, to Tuskegee University, 

for the purpose of permitting Tuskegee University to use the property to further the 

education and general welfare of its students. In carrying out the conveyance under 

this subsection, the Secretary may survey all or a portion of the property to be conveyed if the Secretary determines such a survey would be necessary or desirable. 

(c) HAZARDOUS SUBSTANCES.—Notwithstanding section 120(h) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 

9620(h)) or the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.), in the conveyance 

of the property under subsection (b), the Secretary shall be only required to meet 

the disclosure requirements for hazardous substances, pollutants, and contaminants, 

but otherwise shall not be required to remediate or abate the release of any hazardous substance, pollutant, or contaminant, including petroleum and petroleum derivatives. 

(d) COOPERATIVE AUTHORITY.— 

(1) LEASES, CONTRACTS, AND COOPERATIVE AGREEMENTS AUTHORIZED.—In conjunction with, or in addition to, the conveyance under subsection (b), the Secretary may enter into leases, contracts, and cooperative agreements with the 

University related to the conveyance authorized under subsection (b). 

(2) SOLE SOURCE.—Notwithstanding division C of subtitle I of title 41, United 

States Code, or any other provision of law, the Secretary may lease real property from the University on a noncompetitive basis. 

(3) NON-EXCLUSIVE AUTHORITY.—The authority provided by this subsection is 

in addition to any other authority of the Secretary. 

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may require such reasonable terms and conditions in connection with the conveyance under subsection (b) 

as the Secretary considers appropriate to protect the interests of the United States, 

except that the conveyance may not require further administrative or environmental 

analyses or examination. 

(f) LIMITATION.—The Secretary may not make the conveyance under subsection (b) 

before October 1, 2014. 

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

Section 5317 of title 38, United States Code, is amended by striking ‘‘September 

30, 2016’’ and inserting ‘‘May 31, 2017’’. 


EMCDONALD on DSK67QTVN1PROD with HEARING
5 

PURPOSE AND SUMMARY

H.R. 2072, the Demanding Accountability for Veterans Act of 

2013, was introduced by Representative Dan Benishek of Michigan, 

the Chairman of the Subcommittee on Health of the Committee on 

Veterans’ Affairs, on May 21, 2013. In addition to H.R. 2072, the 

amended version of the bill reflects the Committee’s consideration 

of several bills introduced during the 113th Congress, including 

H.R. 1612, introduced by Representative Mike Rogers of Alabama, 

to direct the Secretary of Veterans Affairs to convey a parcel of 

land in Tuskegee, Alabama, to Tuskegee University; H.R. 2065, the 

Safe Housing for Homeless Veterans Act, introduced by Representative David McKinley of West Virginia; and H.R. 2726, the LongTerm Care Veterans Choice Act, introduced by Representative Jeff 

Miller of Florida, the Chairman of the Committee. 

H.R. 2072, as amended, would: require the Department of Veterans Affairs Inspector General (VAOIG) to determine whether appropriate action has been taken by the Department of Veterans Affairs (VA) in response to a VAOIG report concerning public health 

or patient safety by the date specified in the applicable VA action 

plan; require the VAOIG to notify the House and Senate Veterans’ 

Affairs Committees and the Secretary of any failure of the Department to respond appropriately; require the Secretary, following 

such notification, to report the names of managers responsible for 

implementing the Department’s relevant action plan to the VAOIG 

within 15 days and prohibit the VAOIG from making such names 

public; require the Secretary to promptly notify each responsible 

manager of an issue in a covered report, direct that responsible 

manager to resolve the issue, and provide such manager with counseling and a mitigation plan to resolve the issue; require VA to include an evaluation of whether or not such manager took appropriate action to a covered report in his or her performance review; 

and, prohibit VA from paying a bonus or performance award to any 

responsible manager if an issue in a covered report is left unresolved. 

It would also authorize VA, for three years beginning on October 

1, 2014, to enter into a contract or agreement with a certified medical foster home to pay for long-term care for certain veterans already eligible for VA-paid nursing home care and, require an eligible veteran to receive VA home health services as a component of 

such payment. 

It would further: require per diem payment recipients under VA’s 

Homeless Grant and Per Diem Program to provide VA with a certification of compliance with all relevant fire, safety, and building 

codes; allow entities already receiving grants or assistance under 

the program to submit such a certification within two years of enactment; require VA to determine the code requirement for a facility in a location without a code requirement and also to determine 

how such facility should be inspected; and, require VA to include 

an accounting and evaluation of the safety and accessibility of facilities used for homeless veterans in the Annual Report on Assistance to Homeless Veterans. 

Finally, it would extend the current rate of certain VA housing 

loan guaranty funding fees from October 1, 2017, to October 1, 

2018; direct VA to convey to Tuskegee University in Alabama, specVerDate Mar 15 2010 22:25 Oct 17, 2013 Jkt 039006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR245.XXX HR245

EMCDONALD on DSK67QTVN1PROD with HEARING
6 

ified real property at 2400 Hospital Road in Tuskegee, for the purpose of permitting the University to use the property to further the 

education and general welfare of its students; and, extend the authority of VA to receive information from the Internal Revenue 

Service for pension income verification purposes from September 

30, 2016, to May 31, 2017. 

BACKGROUND

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

The VAOIG conducts independent oversight reviews and investigations designed to improve the effectiveness and efficiency of VA 

programs and monitor the health care provided to veterans. 

The Office of Management and Budget requires the OIG to follow 

up and report on the status of VAOIG recommendations and requires VA to acknowledge that it is taking action to correct agency 

deficiencies as indicated by the VAOIG investigatory recommendations. The VAOIG is also required to submit a Semiannual Report 

to Congress on the status of report recommendations. 

As of March 2013, the VAOIG reported that there were 194 total 

open reports and 1,030 total open recommendations, of which 42 

have remained open for more than a year. The Veterans Health 

Administration has the largest number of open reports with 139 

and the largest number of open recommendations with 823 which 

were not yet implemented by the Administration. 

The Committee believes that the large number of 

unacknowledged open recommendations at VA has reached unacceptable levels. Further, the Committee has grave concerns surrounding the emerging pattern of serious patient safety issues occurring at VA medical centers across the country, a number of 

which were addressed by the Committee during a September 9, 

2013, oversight hearing entitled, ‘‘A Matter of Life and Death: Examining Preventable Deaths, Patient Safety Issues and Bonuses for 

VA Execs Who Oversaw Them.’’ The Committee believes this provision is the first step toward addressing these issues and creating 

a culture of accountability within the Department. Congressional 

action demanding increased accountability is warranted, particularly when it involves problems and deficiencies in VA health care 

programs and operations related to public health or patient safety 

in need of corrective actions. 

Section 3 of the bill would address serious deficiencies in the 

timely implementation of VAOIG recommendations that are critical 

to improving the programs and delivery of care and services to our 

Nation’s veterans. H.R. 2072, as amended, would require the 

VAOIG to determine whether appropriate action has been taken by 

VA in response to a VAOIG report concerning public health or patient safety by the date specified in the applicable VA action plan 

and notify the House and Senate Veterans’ Affairs Committees and 

the VA Secretary of the Department’s failure to respond appropriately. This measure would also require the Secretary, following 

such notification, to report the names of managers responsible for 

implementing the Department’s relevant action plan to the VAOIG 

within 15 days and prohibit the VAOIG from making such names 

public. Section 3 would further require the Secretary to promptly 


EMCDONALD on DSK67QTVN1PROD with HEARING
7 

notify each responsible manager of an issue in a covered report, direct that responsible manager to resolve the issue, and provide him 

or her with counseling and a mitigation plan. Moreover, it would 

require VA to include an evaluation of whether or not such manager took appropriate action to a covered report in his or her performance review, and, prohibit VA from paying a bonus or performance award to any responsible manager if an issue in a covered report is left unresolved. 

Section 4—Secretary of Veterans Affairs contract authority for 

transfer of veterans non department of medical foster homes 

Section 101 of the Veterans Millennium Health Care and Benefits Act, Public Law 106–117(113 Stat. 1545, 1547) requires VA to 

provide nursing home services to all enrolled veterans who are 70 

percent or more service-connected, or 60 percent or more serviceconnected and unemployable and in need of such care, or who are 

service-connected for a condition that makes such care necessary. 

VA meets the requirements of the law by providing short- and longterm nursing care, respite, and end-of-life care through three different settings, including: Community Living Centers located on 

VA medical campuses; purchased care in Community Nursing 

Homes; and, through the State Veterans Nursing Home program. 

Additionally, VA provides a variety of non-institutional long-term 

care services to allow many veterans to remain within their homes 

and delay or avoid nursing home placement. One of the many noninstitutional long-term care programs VA provides is the Community Residential Care (CRC) program. 

The CRC program is authorized under section 1730 of title 38, 

United States Code and is a form of enriched housing which provides health care supervision to eligible veterans not in need of 

hospital or nursing home care, but who, because of medical or psychosocial limitations are not able to live independently or have care 

needs that exceed the capabilities of their families. VA health care 

personnel may assist veterans by referring them for placement in 

a privately or publicly owned community residential care facility if 

certain criteria are met. CRC regulations are codified at 38 C.F.R. 

§17.61 through §17.72. 

A relatively new variant of CRC is known as the Medical Foster 

Home (MFH). The MFH program began as a pilot project in 1999 

for veterans who have higher levels of complex medical conditions 

and disabilities due to chronic disease, frailty, or traumatic injury 

and are unable to live independently, but who prefer a family setting. In general, a MFH is an adult foster home combined with a 

VA interdisciplinary home care team to provide non-institutional 

long-term care for veterans. 

A MFH is generally distinguished from other CRC homes by the 

following: the home is owned or rented by the MFH caregiver; the 

MFH caregiver lives in the MFH and provides personal care and 

supervision; there are not more than three residents receiving care 

in the MFH, including both veterans and non-veterans; and veteran MFH residents are enrolled in a VA Home Based Primary 

Care or Spinal Cord Injury Home Care Program. 

Each VA medical center facility appoints a MFH Coordinator to 

oversee the approval, inspection and placement process for MFHs 

in the community. VA also provides safeguards to ensure veterans 


EMCDONALD on DSK67QTVN1PROD with HEARING
8 

receive safe, high-quality care by requiring MFH caregivers to pass 

a federal background check and VA screening, agree to undergo annual training, and allow VA to make both announced and unannounced home visits. The Committee commends VA for its focus on 

education and training of MFH caregivers to ensure quality and effective specialized care for veterans. The Committee recommends 

VA enter into partnerships with ongoing caregiver training initiatives to develop and host additional training to ensure incoming 

MFH caregivers are adequately trained and experienced and to 

help support and retain existing MFH caregivers. 

Today, according to VA, over 400 approved caregivers provide 

MFH care in their homes to over 500 veterans daily in over 35 

states, establishing that MFH care can be the best option for veterans seeking high-quality, personalized, long term care in a more 

private setting. 

However, because a MFH is not considered institutional care 

that is eligible for VA nursing home payments, VA does not have 

the authority under the CRC program to pay for the cost of the 

MFH. A veteran who chooses to live in a MFH must pay out of 

pocket with personal funds, regardless of whether or not such veteran is eligible for VA-paid nursing home care. 

The inability of VA to pay for this type of long term care has 

forced service-connected veterans eligible for VA paid nursing home 

care who choose to reside in MFHs to pay for the service themselves, or to defer the MFH option in order to reside in an institutional setting that may not be the best option for the veteran’s 

needs. According to VA, many more veterans would elect to receive 

care in a MFH should VA be granted the authority to pay for care 

in such facilities. 

As the veteran population continues to age, the need for longterm care services will continue to grow. The Committee believes 

it is important to expand the long term care choices offered to veterans beyond traditional services and provide VA authority to pay 

for long term care in qualifying MFHs for qualifying veterans. 

Granting VA this authority would allow a veteran to choose a more 

tailored long term care option that best fits the quality of life they 

seek. Of additional benefit, VA has found that this action would 

provide a cost saving for the Department. 

Section 4 would authorize VA, for three years beginning on October 1, 2014, to enter into a contract or agreement with a certified 

medical foster home to pay for long-term care for certain veterans 

already eligible for VA-paid nursing home care. It would also require an eligible veteran to receive VA home health services as a 

component of such payment. 

Section 5—Conditions on the award of per diem payments by the 

Secretary of Veterans Affairs for the provision of housing or 

services to homeless veterans 

VA operates a number of programs and initiatives designed to 

assist veterans experiencing or at-risk for homelessness, including 

the Homeless Grant and Per Diem (GPD) Program. 

The GPD Program, which is governed by sections 2012 and 2013 

of title 38, United States Code, consists of two parts: the grants 

portion of the program and the per diem portion of the program. 

Eligible grant recipients may apply for funding for one or both 


EMCDONALD on DSK67QTVN1PROD with HEARING
9 

parts. The grants portion provides capital grants to acquire, construct, expand, or remodel facilities for use as either service centers 

or transitional housing facilities. The per diem portion reimburses 

non-profit and public entities for the cost of providing housing and 

supportive services for homeless veterans. 

VA awarded approximately $28.4 million in grants and, collectively, more than 14,000 transitional housing beds were provided 

to homeless veterans in all fifty states, the District of Columbia, 

Guam, and Puerto Rico. 

38 U.S.C. §2011(b)(5) stipulates that VA ensure that entities receiving grants under the GPD Program meet fire and safety requirements established by VA as well as all applicable state and 

local codes and standards. VA medical center clinicians in each 

local jurisdiction act as liaisons between the Department and the 

GPD-funded entity and are responsible for ensuring compliance 

with this provision. There is no similar statutory requirement for 

recipients of per diem payments under the GPD Program. 

Grant and per diem recipients under the GPD program generally 

operate what are known as, ‘‘residential room and board facilities.’’ 

From 2006 to 2010, more than nineteen hundred structure fires 

were reported in facilities of this kind, resulting in ten deaths, 61 

injuries, and $8 million in property damage. Given this and given 

the vulnerable, high-risk veteran population cared for in these facilities, the Committee strongly believes the per diem recipients 

under VA’s GPD Program should be required by law to certify that 

they meet relevant fire and safety requirements. 

Section 5 of the bill would require per diem payment recipients 

under VA’s GPD program to provide VA with a certification of compliance with all relevant fire, safety, and building codes. The certification would include compliance with requirements outlined in 

the recently published version of the Life Safety Code, the International Building Code and the International Fire Code, or similar 

codes that have been adopted as State or local codes in the jurisdiction of the project. In addition, all licensing requirements regarding 

the condition of the structure and the operation of supportive housing or service center, including fire and safety requirements, must 

be provided. 

Section 5 would also allow entities already receiving grants or assistance under the program to submit such a certification within 

two years of enactment. It would further require VA to determine 

the code requirement for a facility in a location without a code requirement and determine how such facility should be inspected. 

Section 5 would also require VA to include an accounting and evaluation of the safety and accessibility of facilities used for homeless 

veterans in the Annual Report on Assistance to Homeless Veterans. 

Section 6—Extension of loan guaranty fee for certain subsequent 

loans 

Section 3729 of title 38, United States Code, requires the payment of an upfront funding fee when a servicemember or veteran 

uses their VA loan guaranty benefit. The funding fee varies based 

on an individual’s status, the amount of down payment brought forward, and the date of loan origination. The rates of funding fees 

(expressed as a percentage of the principal) for subsequent use 


EMCDONALD on DSK67QTVN1PROD with HEARING
10 

have been in effect since 2009 and are set to be reduced on October 

1, 2017. 

This section would extend through October 1, 2018, the rates of 

funding fees that would otherwise be reduced on October 1, 2017 

for subsequent use loans. These fees reduce the subsidy cost associated with VA’s guaranty of mortgage loans and have typically been 

viewed as a reasonable cost to the benefit gained by having VA 

guarantee a mortgage loan. Such fees can also be rolled into the 

principal of the loan. The Committee believes the extension of 

these rates will not have a negative impact on veterans’ or 

servicemembers’ ability to acquire the finances necessary for a subsequent loan after their initial VA home loan usage. 

Section 6 would amend 38 U.S.C. 3729(b)(2) to extend the current funding rate fee schedule for certain qualifying loans through 

October 1, 2018. This section is designed as an offset for future 

costs of Section 4 of this bill, as scored by the Congressional Budget 

Office (CBO). 

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

In 1922, the Tuskegee Institute donated three hundred acres of 

land to the United States Government for the purpose of constructing a hospital for African American veterans that had fought 

in World War I. The Tuskegee VA hospital, at one time, was a 

large facility with over 2,000 operating beds. 

In 1997, with a shifting emphasis to outpatient care and a call 

to reduce overhead and redundant services, the facility at Tuskegee 

merged with the Montgomery VA Medical Center into the Central 

Alabama VA Health Care System (CAVHCS). The East (Tuskegee) 

and West (Montgomery) campuses are approximately 40 miles 

apart. 

With the consolidation, the VA Tuskegee campus currently contains over 500,000 excess square feet of underutilized and unused 

space. A significant number of the buildings have been closed for 

over ten years, and, while those buildings are locked, there are still 

maintenance costs associated with the property. 

Tuskegee University, on the other hand, is experiencing exponential growth. To support plans for expansion, the University desires to have 64.5 acres and 240,000 square feet of land and buildings transferred from CAVHCS back to Tuskegee University. 

The VA does not foresee a future need for the property, with additional reductions in space planned. The VA has determined that 

remaining campus buildings have adequate capacity for any future 

needs as identified in both the Capital Asset Inventory and Capital 

Master Plan for CAVHCS. 

Both VA and Tuskegee University support that the transfer of 

the property to the University would benefit both organizations. 

The transfer would allow the University to construct classrooms, 

research laboratories, and offices for a number of new academic degree programs including programs in Public Health, Nursing, Educational Psychology and Counseling. The transfer would not only 

provide CAVHS with new partnership opportunities, but would 

allow the VA to dispose of a significant amount of unused space 

and reduce overhead costs. 


EMCDONALD on DSK67QTVN1PROD with HEARING
11 

However, there is no administrative mechanism to directly transfer the property to the University, absent special authority granted 

by Congress to transfer the unused 64.5 acres, located at 2400 Hospital Road, Tuskegee, Alabama, to Tuskegee University. 

Section 7 of the bill provides the necessary authority to direct VA 

to convey the specified property to Tuskegee University for the purpose of the educational enrichment of its students. 

Section 8—Extension of authority of Secretary of Veterans Affairs to 

obtain certain information from the Secretary of the Treasury 

or the Commissioner of Social Security 

VA currently has the authority to obtain income verification information from the Secretary of the Treasury and the Secretary 

from the Commissioner of Social Security of veterans applying for 

VA benefits. Such authority is set to expire on September 30, 2016. 

Section 8 would extend the VA’s authorization to obtain this information through May 31, 2017. 

HEARINGS

On May 21, 2013, the Subcommittee on Health conducted a legislative hearing on various bills introduced during the 113th Congress, including Draft Legislation, The Veterans Integrated Mental 

Health Care Act of 2013; Draft Legislation, The Demanding Accountability for Veterans Act of 2013; H.R. 241; H.R. 288; H.R. 984; 

and H.R. 1284. 

The following witnesses testified: 

The Honorable Dennis Ross of Florida; the Honorable Brett 

Guthrie of Kentucky; Mark Edney, MD, FACS, Member of the Legislative Affairs Committee and the Urotrauma Task Force American Urological Association; Michael O’Rourke, Assistant Director 

of Government Relations for the Blinded Veterans Association; 

Adrian Atizado, Assistant National Legislative Director for the Disabled American Veterans; Alex Nicholson, Legislative Director of 

Iraq and Afghanistan Veterans of America; Alethea Predeoux, Associate Director for Health Analysis of the Paralyzed Veterans of 

America; and Robert L. Jesse M.D., Ph.D., the Principal Deputy 

Under Secretary for Health for the Veterans Health Administration 

of the U.S. Department of Veterans Affairs, accompanied by Susan 

Blauert, the Deputy Assistant General Counsel for the U.S. Department of Veterans Affairs. 

Statements for the Record were submitted by the following: 

The American Legion; the Department of Veterans Affairs Office 

of the Inspector General; the Military Officers Association of America; the Veterans of Foreign Wars; VetsFirst/the United Spinal Association; and the Wounded Warrior Project 

On July 9, 2013, the Subcommittee on Health conducted a legislative hearing on various bills introduced during the 113th Congress, including Draft Legislation, the Long-Term Care Veterans 

Choice Act; H.R. 1443; H.R. 1612; H.R. 1702; and H.R. 2065. 

The following witnesses testified: 

The Honorable Mike Rogers of Alabama; the Honorable David 

McKinley of West Virginia; Jacob Gadd, the Deputy Director for 

Health Care for the Veterans Affairs and Rehabilitation Commission of the American Legion; Susan E. Shore Ph.D., the Chair of 

the Scientific Advisory Committee for the American Tinnitus AssoVerDate Mar 15 2010 22:25 Oct 17, 2013 Jkt 039006 PO 00000 Frm 00011 Fmt 6659 Sfmt 6602 E:\HR\OC\HR245.XXX HR245

EMCDONALD on DSK67QTVN1PROD with HEARING
12 

ciation; Adrian Atizado, the Assistant National Legislative Director 

for the Disabled American Veterans; Robert Drexler, Member of 

the Board of Directors for the International Code Council, Raymond C. Kelley, Director of the National Legislative Service for the 

Veterans of Foreign Wars; and Robert L. Jesse M.D., Ph.D., the 

Principal Deputy Under Secretary for Health for the Veterans 

Health Administration of the U.S. Department of Veterans Affairs, 

accompanied by Susan Blauert, the Deputy Assistant General 

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

Statements for the record were submitted by the following: 

The Honorable Ron Barber of Arizona; the Iraq and Afghanistan 

Veterans of America; Tuskegee University; the National Association of State Fire Marshals; the National Coalition for Homeless 

Veterans; the Paralyzed Veterans of America; the Vietnam Veterans of America; and the Wounded Warrior Project. 

SUBCOMMITTEE CONSIDERATION

The Subcommittee met in an open markup session on July 23, 

2013, a quorum being present. Mr. Benishek offered an amendment 

in the nature of a substitute to H.R. 2072 which added the provisions of H.R. 2726, H.R. 2065, and H.R. 1612. The amendment was 

adopted and H.R. 2072, as amended, was favorably forwarded to 

the full Committee by voice vote. 

COMMITTEE CONSIDERATION

On August 1, 2013, the full Committee met in an open markup 

session, a quorum being present, and ordered H.R. 2072, as amended, reported favorably to the House of Representatives by voice 

vote. 

During consideration of H.R. 2072, the following amendment was 

considered and agreed to by voice vote: 

An amendment in the nature of a substitute offered by Mr. 

Benishek of Michigan which combined the contents of H.R. 2072, 

H.R. 1612, H.R. 2065, and H.R. 2726 and inserted a provision that 

would extend the current rate of certain VA housing loan guaranty 

funding fees from October 1, 2017, to October 1, 2018 and a provision that would extend the VA’s authority to receive information 

from the Internal Revenue Service for pension income verification 

purposes from September 30, 2016, to May 31, 2017. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report the legislation and amendments thereto. There were no 

record votes taken on amendments or in connection with ordering 

H.R. 2072, as amended, reported to the House. A motion by Ranking Member Michael H. Michaud of Maine to report H.R. 2072, as 

amended, favorably to the House of Representatives was agreed to 

by voice vote. 

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII and clause 2(b)(1) 

of rule X of the Rules of the House of Representatives, the CommitVerDate Mar 15 2010 22:25 Oct 17, 2013 Jkt 039006 PO 00000 Frm 00012 Fmt 6659 Sfmt 6602 E:\HR\OC\HR245.XXX HR245

EMCDONALD on DSK67QTVN1PROD with HEARING
13 

tee’s oversight findings and recommendations are reflected in the 

descriptive portions of this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee’s performance goals and 

objectives are reflected in the descriptive portions of this report. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

EARMARKS AND TAX AND TARIFF BENEFITS

H.R. 2072, as amended, does not contain any Congressional earmarks, limited tax benefits, or limited tariff benefits as defined in 

clause 9 of rule XXI of the Rules of the House of Representatives. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate on H.R. 2072, 

as amended, prepared by the Director of the Congressional Budget 

Office pursuant to section 402 of the Congressional Budget Act of 

1974. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate for H.R. 2072, 

as amended, provided by the Congressional Budget Office pursuant 

to section 402 of the Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, August 16, 2013. 

Hon. JEFF MILLER, 

Chairman, Committee on Veterans’ Affairs, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2072, the Demanding Accountability for Veterans Act of 2013. 

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

to provide them. The CBO staff contact is David Newman. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

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

Summary: H.R. 2072 would increase the fees charged to certain 

veterans who obtain loans guaranteed by the Department of Veterans Affairs (VA). It also would extend VA’s authority to verify inVerDate Mar 15 2010 22:25 Oct 17, 2013 Jkt 039006 PO 00000 Frm 00013 Fmt 6659 Sfmt 6602 E:\HR\OC\HR245.XXX HR245

EMCDONALD on DSK67QTVN1PROD with HEARING
14 

come reported by recipients of VA pension benefits using data from 

the Internal Revenue Service (IRS). Those two changes would decrease direct spending by $182 million over the 2014–2018 period 

and by $191 million over the 2014–2023 period, CBO estimates. 

Pay-as-you-go procedures apply because enacting the legislation 

would affect direct spending. 

H.R. 2072 also would increase spending subject to appropriation, 

primarily by allowing VA to pay for eligible veterans to live in medical foster homes. CBO estimates that implementing H.R. 2072 

would have a discretionary cost of $170 million over the 2014–2018 

period, subject to appropriation of the necessary amounts. 

H.R. 2072 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 2072 is shown in the following table. The costs 

of this legislation fall within budget function 700 (veterans benefits 

and services). 

By fiscal year, in millions of dollars— 

2014 2015 2016 2017 2018 2014– 

2018 

CHANGES IN DIRECT SPENDING a

Loan Guarantee Fees: 

Estimated Budget Authority ................................................ 0 0 0 0 ¥176 ¥176 

Estimated Outlays ............................................................... 0 0 0 0 ¥176 ¥176 

Income Verification: 

Estimated Budget Authority ................................................ 0 0 0 ¥3 ¥3 ¥6 

Estimated Outlays ............................................................... 0 0 0 ¥3 ¥3 ¥6 

Total Changes: 

Estimated Budget Authority ....................................... 0 0 0 ¥3 ¥179 ¥182 

Estimated Outlays ...................................................... 0 0 0 ¥3 ¥179 ¥182 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Medical Foster Care: 

Estimated Authorization Level ............................................. 0 20 38 60 58 176 

Estimated Outlays ............................................................... 0 18 36 57 58 169 

Property Conveyance: 

Estimated Authorization Level ............................................. 0 1 0 0 0 1 

Estimated Outlays ............................................................... 0 1 0 0 0 1 

Total Changes: 

Estimated Authorization Level .................................... 0 21 38 60 58 177 

Estimated Outlays ...................................................... 0 19 36 57 58 170 

a CBO estimates that enacting H.R. 2072 would decrease direct spending by $191 million over the 2014–2023 period. 

Basis of estimate: For the purposes of this estimate, CBO assumes that the legislation will be enacted near the beginning of fiscal year 2014, that the necessary amounts will be appropriated 

each year, and that outlays will follow historical spending patterns 

for similar and existing programs. 

Direct spending 

H.R. 2072 would decrease direct spending by increasing some of 

the fees VA charges for guaranteeing home loans and by extending 

VA’s authority to verify with the IRS income reported by recipients 

of VA pension benefits. 

Loan Guarantee Fees. Under its Home Loan program, VA provides lenders guarantees on mortgages made to veterans; those 

guarantees enable veterans to get better loan terms, such as lower 

interest rates or smaller down payments. The loan guarantees provide lenders a payment of up to 25 percent of the outstanding loan 


EMCDONALD on DSK67QTVN1PROD with HEARING
15 

1 Under the Federal Credit Reform Act of 1990, the subsidy cost of a loan guarantee is the 

net present value of estimated payments by the government to cover defaults and delinquencies, 

interest subsidies, or other expenses, offset by any payments to the government, including origination fees, other fees, penalties, and recoveries on defaulted loans. Such subsidy costs are calculated by discounting those expected cash flows using the rate on Treasury securities of comparable maturity. The resulting estimated subsidy costs are recorded in the budget when the 

loans are disbursed. 

balances (subject to some limitations on the original loan amounts) 

in the event that a veteran defaults on a guaranteed loan. Section 

6 would increase some of the fees that VA charges veterans for providing those guarantees. By partially offsetting the costs of subsequent defaults, those fees lower the subsidy cost of the guarantees.1

Under current law, the up-front fee varies on the basis of the size 

of the down payment and whether the veteran has previously used 

the loan-guarantee benefit. Borrowers who are members of the reserve component pay an additional fee of 0.25 percent of the loan 

amount. Veterans who receive compensation for service-connected 

disabilities are exempt from paying the fee. The current fees that 

would be affected by section 6 are: 

• 2.15 percent of the loan amount for loans with no down 

payment, 

• 1.50 percent of the loan amount for loans with a 5 percent 

down payment, and 

• 0.75 percent of the loan amount for loans with a 10 percent down payment. 

Those fees are scheduled to decline on October 1, 2017, to 1.40 

percent, 0.75 percent, and 0.50 percent, respectively. 

Under section 6, that scheduled fee reduction would be delayed 

by one year, until October 1, 2018. Continuing the fees at their current level in 2018 would increase collections by VA in that year, 

thereby lowering the subsidy cost of the loan guarantees. Based on 

data from VA, CBO estimates that enacting section 6 would reduce 

direct spending by $176 million in fiscal year 2018. 

Income Verification. Section 8 would extend VA’s authority to 

verify income reported by recipients of VA pension benefits by allowing it to acquire information on income from the IRS. VA uses 

that authority to determine if veterans who apply for pensions 

have income that would render them ineligible for that benefit. The 

authorization allowing the IRS to provide income information to 

VA was made permanent by Public Law 110–245, but the authorization allowing VA to acquire the information is scheduled to expire on September 30, 2016. Section 8 would extend VA’s authority 

through May 31, 2017. 

Over the last several years, VA saved, on average, $4 million a 

year in improper pension payments by using the IRS data to verify 

veterans’ incomes. CBO estimates that the incremental savings 

from utilizing the IRS data to verify incomes for an additional eight 

months would be about $3 million in 2017. The savings from identifying those ineligible veterans who apply during that eight-month 

period would continue to accrue in subsequent years. CBO estimates that section 8 would reduce direct spending by $6 million 

over the 2014–2018 period and $15 million over the 2014–2023 period. 


EMCDONALD on DSK67QTVN1PROD with HEARING
16 

Spending subject to appropriation 

Medical Foster Care. Section 4 would allow certain veterans 

whose nursing home care is paid for by VA to live in medical foster 

homes (MFHs) at VA’s expense. MFHs are private homes in which 

a trained caregiver provides services to a few individuals. VA has 

an existing program under which it inspects and approves MFHs 

for veterans. Veterans living in such homes receive VA’s Home 

Based Primary Care services, which includes case management 

and health care provided in the home. However, VA is not authorized to pay the living expenses of veterans in MFHs. 

Section 4 would allow certain veterans who are currently receiving VA-sponsored nursing home care to transfer from nursing 

homes to MFHs during the 2015–2017 period, and it would cover 

the total costs for those veterans. CBO expects that once the veterans transfer to foster care, VA will continue to pay for their care 

in those facilities indefinitely. Section 4 also would allow VA to 

cover the living expenses of certain veterans currently in MFHs. 

Based on information from VA on current usage of MFHs, CBO 

estimates that, under section 4, about 900 veterans would become 

eligible to have VA pay for their medical foster care in 2015, and 

the number of beneficiaries would increase to 1,100 by the end of 

2017. The average annual cost of providing such care is roughly 

$50,000 per veteran. That amount excludes the cost of home-based 

medical care, inspections, and assessments that VA already covers 

for veterans currently in MFHs. Thus, CBO estimates that enacting this section would cost an additional $169 million over the 

2014–2018 period, assuming appropriation of the necessary 

amounts. 

Property Conveyance. Section 7 would require VA to convey some 

land and facilities at the Tuskegee Veterans’ Hospital to Tuskegee 

University after 2014. VA would not be compensated for the costs 

of conveyance or the value of real property. CBO estimates that the 

administrative costs of preparing the property for conveyance 

would be around $1 million in 2015. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2072 AS ORDERED REPORTED BY THE 

HOUSE COMMITTEE ON VETERANS’ AFFAIRS ON AUGUST 1, 2013 

By fiscal year, in millions of dollars— 

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013- 

2018 

NET DECREASE (¥) IN THE DEFICIT 

Statutory Pay-AsYou-Go Impact 0 0 0 0 ¥3 ¥179 ¥2 ¥2 ¥2 ¥2 ¥2 ¥182 ¥191 

Intergovernmental and private-sector impact: H.R. 2072 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA. As a condition of receiving federal financial assistance, the 

bill would require state and local governments to comply with code 

and inspection requirements at facilities that provide assistance to 


EMCDONALD on DSK67QTVN1PROD with HEARING
17 

homeless veterans. Any costs the governments incur would be voluntary. 

Estimate prepared by: Federal Costs: Ann E. Futrell, David Newman, and Dwayne M. Wright; Impact on State, Local, and Tribal 

Governments: Lisa Ramirez-Branum; Impact on the Private Sector: 

Elizabeth Bass 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

FEDERAL MANDATES STATEMENT

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

of the Congressional Budget Office pursuant to section 423 of the 

Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act would be created by H.R. 2072, as 

amended. 

STATEMENT OF CONSTITUTIONAL AUTHORITY

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

the reported bill is authorized by Congress’ power to ‘‘provide for 

the common Defense and general Welfare of the United States.’’ 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

STATEMENT ON DUPLICATION OF FEDERAL PROGRAMS

Pursuant to section 3(j) of H. Res. 5, 113th Cong. (2013), the 

Committee finds that no provision of H.R. 2072, as amended, establishes or reauthorizes a program of the Federal Government known 

to be duplicative of another Federal program, a program that was 

included in any report from the Government Accountability Office 

to Congress pursuant to section 21 of Public Law 111–139, or a 

program related to a program identified in the most recent Catalog 

of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013), the 

Committee estimates that H.R. 2072, as amended, does not require 

any directed rule makings. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

Section 1 of this bill would provide that the short title of H.R. 

2072, as amended, would be the ‘‘Demanding Accountability for 

Veterans Act of 2013.’’ 


EMCDONALD on DSK67QTVN1PROD with HEARING
18 

Section 2. Scoring of budgetary effects 

Section 2 of this bill would require the budgetary effects of this 

Act, for the purposes of complying with the Statutory Pay-As-YouGo Act, be determined according to the latest statement entitled 

‘‘Budgetary Effects of PAYGO Legislation’’ as submitted to the Congressional Record by the Chairman of the House Budget Committee. 

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

Section 3 of the bill would amend title 38, United States Code, 

to create a new section 712, which would require that in the event 

the VAOIG determines that the Secretary has not appropriately responded with significant progress to a covered report by the date 

specified in the action plan the Inspector General shall notify the 

Committees on Veterans’ Affairs of the Senate and House of Representatives and the Secretary of such failure to appropriately respond; and not later than 15 days after such notification, the Secretary shall submit to the Inspector General a list of the names of 

each responsible manager and the matter in the action plan for 

which the manager is responsible. 

38 U.S.C. §712(b)(1) would require the Secretary to promptly notify each responsible manager of a covered issue by not later than 

seven days after the date on which the Secretary submits to the 

VAOIG the name of the manager under subsection (a)(1)(B); and to 

direct such manager to resolve such issue; and to provide such 

manager with appropriate counseling and a mitigation plan with 

respect to resolving such issue. 

38 U.S.C. §712(b)(2) would require the Secretary to ensure that 

any performance review of a responsible manager includes an evaluation of whether the manager took appropriate actions during the 

period covered by the review to respond to the covered issue for 

which a request was made under subsection (a). 

38 U.S.C. §712(b)(3) would require that the Secretary may not 

pay to a responsible manager any bonus or award, including a performance award under section 5384 of title 5, United States Code, 

if the covered issue for which a request was made under subsection 

(a) is unresolved. 

38 U.S.C. §712(c) would clarify that, any authority provided to 

the VAOIG under this section is in addition to any responsibility 

or authority provided to the Inspector General in the Inspector 

General Act of 1978 (5 U.S.C. App). 

Section 3 of this bill also would create 38 U.S.C. §712(d), which 

would define the terms in this section. (1) The term ‘covered issue’ 

means, with respect to a responsible manager, an issue described 

in a covered report for which the manager is or was responsible. 

(2) The term ‘covered report’ means a report by the VAOIG that 

recommends actions to the Secretary of VA (or other official or employee of the Department) to address an issue in the Department 

with respect to public health or safety. (3) The term ‘responsible 

manager’ means an individual who—(A) is an employee of the Department; (B) is or was responsible for an issue included in a covered report; and (C) in being so responsible, is or was employed in 

a management position, regardless of whether the employee is in 


EMCDONALD on DSK67QTVN1PROD with HEARING
19 

the competitive civil service, Senior Executive Service, or other 

type of civil service. 

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

Section 4(a)(1) of this bill would amend section 1720 of title 38, 

United States Code by adding a new subsection (h) that would authorize VA to facilitate transfer of veterans to medical foster homes 

at the request of the veteran for whom VA is required to provide 

nursing home care under 38 U.S.C. §1710(A). Under this subsection, the medical foster home would be required to meet department standards, and the veteran’s care would be at the expense of 

the United States during the three-year period beginning on October 1, 2014. Such care would be pursuant to a contract or agreement entered into between the Secretary and the medical foster 

home. A veteran who is transferred to a medical foster home under 

this subsection would be required to agree, as a condition of such 

transfer, to accept home health services furnished by the Secretary 

under 38 U.S.C. §1717. 

Section 4(a)(2) of this bill would define the term ‘medical foster 

home,’ for the purposes of the newly created subsection 38 U.S.C. 

§1720(h)(1), as a home designed to provide non-institutional, longterm, supportive care for veterans who are unable to live independently and prefer a family setting. 

Section 4(b) would make October 1, 2014 the effective date of 

newly created subsection (h) of title 38, United States Code, as 

added by subsection (a). 

Section 5. Conditions on the award of per diem payments by the 

Secretary of Veterans Affairs for the provision of housing or 

services to homeless veterans 

Section 5(a)(1) of this bill would amend 38 U.S.C. §2012(c) to set 

conditions upon which per diem payment and grant eligibility are 

premised. The conditions would require the receiving entity to submit to the Secretary an annual certification that the facility where 

the entity provides housing or services for homeless veterans using 

grant funds is in compliance with codes relevant to the operations 

and level of care provided, including applicable provisions of the 

most recently published version of the Life Safety Code or International Building Code and International Fire Code. Under this 

section, the facilities also would be required to include in the certification evidence of their compliance with licensing requirements, 

fire and safety requirements, and any other requirements in the jurisdiction in which the facility is located. This section of the bill 

also would require that if a facility where a grant recipient or eligible entity provides housing or services for homeless veterans using 

grant funds is located in a jurisdiction without relevant code requirements, the Secretary shall determine code and inspection requirements to be applied to the facility. 

Section 5(a)(2) of this bill would set an effective date with respect 

to per diem payment as the date the per diem application was submitted, which is on or after the date of the enactment of this Act. 

Section 5(b) of this bill would amend 38 U.S.C. §2065(b) by: (1) 

by redesignating paragraph (6) as paragraph (7); and by inserting 

after paragraph (5) a new paragraph (6) which would provide auVerDate Mar 15 2010 22:25 Oct 17, 2013 Jkt 039006 PO 00000 Frm 00019 Fmt 6659 Sfmt 6602 E:\HR\OC\HR245.XXX HR245

EMCDONALD on DSK67QTVN1PROD with HEARING
20 

thority for the Secretary’s evaluation of the safety and accessibility 

of facilities used to provide programs established by grant recipients or eligible entities. 

Section 5(c) of this bill would require current recipients of per 

diem payments to submit the certification of compliance with relevant safety codes by no later than two years after the enactment 

of this Act. If the recipient fails to submit such certification by such 

date, the Secretary may not make any additional per diem payments until the recipient submits such certification. 

Section 6. Extension of loan guaranty fee for certain subsequent 

loans 

Section 6 of this bill would amend section 3729 of title 38, United 

States Code, by extending the current loan fee schedule for certain 

VA guaranteed home loans through October 1, 2018. 

Section 6(a) (1–3) of this bill would amend 38 U.S.C. 3729(b)(2) 

in subparagraph (A), clause (iii), by striking ‘‘October 1, 2017’’ and 

inserting ‘‘’October 1, 2018’’; and in clause (iv), by striking ‘‘October 

1, 2017’’ and inserting ‘‘October 1, 2018’’; and in subparagraph (C), 

clause (i), by striking ‘‘October 1, 2017’’ and inserting ‘‘October 1, 

2018’’; and in clause (ii), by striking ‘‘October 1, 2017’’ and inserting ‘‘October 1, 2018’’; and in subparagraph (D) in clause (i), by 

striking ‘‘October 1, 2017’’ and inserting ‘‘October 1, 2018’’; and in 

clause (ii), by striking ‘‘October 1, 2017’’ and inserting ‘‘October 1, 

2018’’. 

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

Section 7(a) of this bill expresses the findings of Congress that 

Tuskegee University donated three hundred acres of property to 

the United States in 1922 for the purpose of building a veterans 

hospital; and that the Department of Veterans Affairs has since administered said hospital and no longer has use for 64.5 acres of the 

property; and that Tuskegee University is a State land grant university that intends to use the property to further the education 

and general welfare of its students; and, that the conveyance of the 

property to the University would promote the University’s educational mission and result in savings to the Federal Government. 

Section 7(b) of this bill would authorize the conveyance of the 

64.5 acres of property, located at 2400 Hospital Road, Tuskegee, 

Alabama by the Secretary from the United States to Tuskegee University. This conveyance would include building numbers 19–29, 

50–51, 59–60, 62–63, 80, 94, 96, and 124, and is for the purpose 

of permitting Tuskegee University to use the property to further 

the education and general welfare of its students. This section also 

authorizes the Secretary to conduct a survey of all or a portion of 

the property if the Secretary determines a survey to be necessary 

or desirable. 

Section 7(c) of this bill would require the Secretary to meet the 

hazardous substance disclosure requirements of the Comprehensive 

Environmental Response, Compensation, and Liability Act 

(CERCLA) (found at 42 U.S.C. §9620(h)) and of the Solid Waste 

Disposal Act, (found at 42 U.S.C. §6901). This section also would 

exempt VA from liability, remediation, or abatement requirements 


EMCDONALD on DSK67QTVN1PROD with HEARING
21 

related to any such substances that are present on the property at 

the time of conveyance. 

Section 7(d)(1) of this bill would authorize the Secretary to enter 

into leases, contracts and cooperative agreements with the University related to the conveyance of the property. 

Section 7(d)(2) of this bill would authorize the Secretary to lease 

real property from the University on a noncompetitive basis. 

Section 7(d)(3) of this bill would provide that the authority provided to the Secretary by this bill subsection is in addition to any 

other authority of the Secretary. 

Section 7(e) of this bill would allow the Secretary to require reasonable terms and conditions in connection with the conveyance as 

needed to protect the interests of the United States except that the 

conveyance may not require further administrative or environmental analyses. 

Section 7(f) of this bill would limit the conveyance of the property 

to occur only on or after October 1, 2014. 

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

the Commissioner of Social Security 

Section 8 of the bill would amend section 5317 of title 38, United 

States Code, by striking ‘‘September 30, 2016’’ and inserting ‘‘May 

31, 2017.’’ 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

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

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

TITLE 38, UNITED STATES CODE 

* * * * * * * 

PART I—GENERAL PROVISIONS 

* * * * * * * 

CHAPTER 7—EMPLOYEES 

Sec. 

701. Placement of employees in military installations. 

* * * * * * * 

712. Accountability of Secretary to Inspector General. 

* * * * * * * 

§ 712. Accountability of Secretary to Inspector General 

(a) LIST OF MANAGERS.—(1) If the Inspector General of the Department of Veterans Affairs determines that the Secretary has not 

appropriately responded with significant progress to a covered report by the date specified in the action plan of the Secretary developed in response to such covered report— 


EMCDONALD on DSK67QTVN1PROD with HEARING
22 

(A) the Inspector General shall notify the Committees on Veterans’ Affairs of the Senate and House of Representatives and 

the Secretary of such failure to appropriately respond; and 

(B) not later than 15 days after such notification, the Secretary shall submit to the Inspector General a list of the names 

of each responsible manager and the matter in the action plan 

for which the manager is responsible. 

(2) The Inspector General may not make public the names of responsible managers submitted under paragraph (1)(B). 

(b) PERFORMANCE OF RESPONSIBLE MANAGERS.—(1) The Secretary shall— 

(A) promptly notify each responsible manager of a covered 

issue by not later than seven days after the date on which the 

Secretary submits to the Inspector General the name of the 

manager under subsection (a)(1)(B); 

(B) direct such manager to resolve such issue; and 

(C) provide such manager with appropriate counseling and a 

mitigation plan with respect to resolving such issue. 

(2) The Secretary shall ensure that any performance review of a 

responsible manager includes an evaluation of whether the manager 

took appropriate actions during the period covered by the review to 

respond to the covered issue for which a request was made under 

subsection (a). 

(3) The Secretary may not pay to a responsible manager any 

bonus or award, including a performance award under section 5384 

of title 5 if the covered issue for which a request was made under 

subsection (a) is unresolved. 

(c) ROLE OF INSPECTOR GENERAL.—Any authority of the Inspector 

General provided under this section is in addition to any responsibility or authority provided to the Inspector General in the Inspector 

General Act of 1978 (5 U.S.C. App). 

(d) DEFINITIONS.—In this section: 

(1) The term ‘‘covered issue’’ means, with respect to a responsible manager, an issue described in a covered report for which 

the manager is or was responsible. 

(2) The term ‘‘covered report’’ means a report by the Inspector 

General of the Department of Veterans Affairs that recommends 

actions to the Secretary of Veterans Affairs (or other official or 

employee of the Department) to address an issue in the Department with respect to public health or safety. 

(3) The term ‘‘responsible manager’’ means an individual 

who— 

(A) is an employee of the Department; 

(B) is or was responsible for an issue included in a covered report; and 

(C) in being so responsible, is or was employed in a management position, regardless of whether the employee is in 

the competitive civil service, Senior Executive Service, or 

other type of civil service. 

* * * * * * * 

PART II—GENERAL BENEFITS 

* * * * * * * 


EMCDONALD on DSK67QTVN1PROD with HEARING
23 

CHAPTER 17—HOSPITAL, NURSING HOME, 

DOMICILIARY, AND MEDICAL CARE 

* * * * * * * 

SUBCHAPTER II—HOSPITAL, NURSING HOME, OR 

DOMICILIARY CARE AND MEDICAL TREATMENT 

* * * * * * * 

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

care 

(a) * * * 

* * * * * * * 

(h)(1) During the three-year period beginning on October 1, 2014, 

at the request of a veteran for whom the Secretary is required to 

provide nursing home care under section 1710A of this title, the Secretary may transfer the veteran to a medical foster home that meets 

Department standards, at the expense of the United States, pursuant to a contract or agreement entered into between the Secretary 

and the medical foster home for such purpose. A veteran who is 

transferred to a medical foster home under this subsection shall 

agree, as a condition of such transfer, to accept home health services 

furnished by the Secretary under section 1717 of this title. 

(2) For purposes of this subsection, the term ‘‘medical foster home’’ 

means a home designed to provide non-institutional, long-term, supportive care for veterans who are unable to live independently and 

prefer a family setting. 

* * * * * * * 

CHAPTER 20—BENEFITS FOR HOMELESS VETERANS 

* * * * * * * 

SUBCHAPTER II—COMPREHENSIVE SERVICE PROGRAMS 

* * * * * * * 

§ 2012. Per diem payments 

(a) * * * 

* * * * * * * 

(c) LIFE SAFETY CODE.—ø(1) Except as provided in paragraph (2), 

a per diem payment may not be provided under this section to a 

grant recipient or eligible entity unless the facilities of the grant 

recipient or eligible entity, as the case may be, meet applicable fire 

and safety requirements under the Life Safety Code of the National 

Fire Protection Association or such other comparable fire and safety requirements as the Secretary may specify.¿ (1) Except as provided in paragraph (2), a per diem payment may not be provided 

under this section to a grant recipient or eligible entity unless the 

entity submits to the Secretary an annual certification, approved or 

verified by the authority having jurisdiction or a qualified third 

party, as determined by the Secretary, that the facility where the entity provides housing or services for homeless veterans using grant 

funds is in compliance with codes relevant to the operations and 

level of care provided, including applicable provisions of the most 


EMCDONALD on DSK67QTVN1PROD with HEARING
24 

recently published version of the Life Safety Code or International 

Building Code and International Fire Code (or such versions of 

such codes that have been adopted as State or local codes by the jurisdiction in which the facility is located), licensing requirements, 

fire and safety requirements, and any other requirements in the jurisdiction in which the facility is located regarding the condition of 

the facility and the operation of the entity providing such supportive 

housing or services. For purposes of this paragraph, if a facility 

where a grant recipient or eligible entity provides housing or services for homeless veterans using grant funds is located in a jurisdiction without relevant code requirements, the Secretary shall determine code and inspection requirements to be applied to the facility. 

* * * * * * * 

SUBCHAPTER VII—OTHER PROVISIONS 

* * * * * * * 

§ 2065. Annual report on assistance to homeless veterans 

(a) * * * 

(b) GENERAL CONTENTS OF REPORT.—Each report under subsection (a) shall include the following: 

(1) * * * 

* * * * * * * 

(6) The Secretary’s evaluation of the safety and accessibility 

of facilities used to provide programs established by grant recipients or eligible entities under section 2011 and 2012 of this 

title, including the number of such grant recipients or eligible 

entities who have submitted a certification under section 

2012(c)(1). 

ø(6)¿ (7) Any other information on those programs and on 

the provision of such assistance that the Secretary considers 

appropriate. 

* * * * * * * 

PART III—READJUSTMENT AND RELATED 

BENEFITS 

* * * * * * * 

CHAPTER 37—HOUSING AND SMALL BUSINESS LOANS 

* * * * * * * 

§ 3729. Loan fee 

(a) * * * 

(b) DETERMINATION OF FEE.—(1) * * * 

(2) The loan fee table referred to in paragraph (1) is as follows: 


EMCDONALD on DSK67QTVN1PROD with HEARING
25 

LOAN FEE TABLE 

Type of loan Active duty 

veteran Reservist Other obligor 

(A)(i) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any 

other initial loan described in section 3710(a) other 

than with 5-down or 10-down (closed before January 1, 2004) ................................................................. 2.00 2.75 NA 

(A)(ii) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any 

other initial loan described in section 3710(a) other 

than with 5-down or 10-down (closed on or after 

January 1, 2004, and before October 1, 2004) .......... 2.20 2.40 NA 

(A)(iii) Initial loan described in section 3710(a) to 

purchase or construct a dwelling with 0-down, or 

any other initial loan described in section 3710(a) 

other than with 5-down or 10-down (closed on or 

after October 1, 2004, and before October 1, ø2017¿ 

2018) ............................................................................ 2.15 2.40 NA 

(A)(iv) Initial loan described in section 3710(a) to 

purchase or construct a dwelling with 0-down, or 

any other initial loan described in section 3710(a) 

other than with 5-down or 10-down (closed on or 

after October 1, ø2017¿ 2018) .................................... 1.40 1.65 NA 

(B)(i) Subsequent loan described in section 3710 (a) 

to purchase or construct a dwelling with 0-down, or 

any other subsequent loan described in section 

3710(a) (closed before October 1, 2017) ..................... 3.30 3.30 NA 

(B)(ii) Subsequent loan described in section 3710 (a) 

to purchase or construct a dwelling with 0-down, or 

any other subsequent loan described in section 

3710 (a) (closed on or after October 1, 2017) ............ 1.25 1.25 NA 

(C)(i) Loan described in section 3710(a) to purchase 

or construct a dwelling with 5-down (closed before 

October 1, ø2017¿ 2018) ............................................. 1.50 1.75 NA 

(C)(ii) Loan described in section 3710(a) to purchase 

or construct a dwelling with 5-down (closed on or 

after October 1, ø2017¿ 2018) .................................... 0.75 1.00 NA 

(D)(i) Initial loan described in section 3710(a) to purchase or construct a dwelling with 10-down (closed 

before October 1, ø2017¿ 2018) ................................. 1.25 1.50 NA 

(D)(ii) Initial loan described in section 3710(a) to purchase or construct a dwelling with 10-down (closed 

on or after October 1, ø2017¿ 2018) .......................... 0.50 0.75 NA 

(E) Interest rate reduction refinancing loan ................ 0.50 0.50 NA 

(F) Direct loan under section 3711 ............................... 1.00 1.00 NA 

(G) Manufactured home loan under section 3712 

(other than an interest rate reduction refinancing 

loan) ............................................................................. 1.00 1.00 NA 

(H) Loan to Native American veteran under section 

3762 (other than an interest rate reduction refinancing loan) ............................................................... 1.25 1.25 NA 

(I) Loan assumption under section 3714 ...................... 0.50 0.50 0.50 


EMCDONALD on DSK67QTVN1PROD with HEARING
26 

LOAN FEE TABLE—Continued 

Type of loan Active duty 

veteran Reservist Other obligor 

(J) Loan under section 3733(a) ...................................... 2.25 2.25 2.25 

* * * * * * * 

PART IV—GENERAL ADMINISTRATIVE 

PROVISIONS 

* * * * * * * 

CHAPTER 53—SPECIAL PROVISIONS RELATING TO 

BENEFITS 

* * * * * * * 

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

(a) * * * 

* * * * * * * 

(g) The authority of the Secretary to obtain information from the 

Secretary of the Treasury or the Commissioner of Social Security 

under section 6103(l)(7)(D)(viii) of the Internal Revenue Code of 

1986 expires on øSeptember 30, 2016¿ May 31, 2017. 

* * * * * * * 

Æ 


EMCDONALD on DSK67QTVN1PROD with HEARING