II 

113TH CONGRESS 

1ST SESSION S. 1740 

To authorize Department of Veterans Affairs major medical facility leases, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 20, 2013 

Ms. LANDRIEU introduced the following bill; which was read twice and 

referred to the Committee on Veterans’ Affairs 

A BILL 

To authorize Department of Veterans Affairs major medical 

facility leases, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Department of Vet5 erans Affairs Major Medical Facility Lease Authorization 

6 Act of 2013’’. 

7 SEC. 2. AUTHORIZATION OF MAJOR MEDICAL FACILITY 

8 LEASES. 

9 The Secretary of Veterans Affairs may carry out the 

10 following major medical facility leases at the locations 


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1 specified, and in an amount for each lease not to exceed 

2 the amount shown for such location (not including any es3 timated cancellation costs): 

4 (1) For a clinical research and pharmacy co5 ordinating center, Albuquerque, New Mexico, an 

6 amount not to exceed $9,560,000. 

7 (2) For a community-based outpatient clinic, 

8 Brick, New Jersey, an amount not to exceed 

9 $7,280,000. 

10 (3) For a new primary care and dental clinic 

11 annex, Charleston, South Carolina, an amount not 

12 to exceed $7,070,250. 

13 (4) For the Cobb County community-based 

14 Outpatient Clinic, Cobb County, Georgia, an amount 

15 not to exceed $6,409,000. 

16 (5) For the Leeward Outpatient Healthcare Ac17 cess Center, Honolulu, Hawaii, including a co-lo18 cated clinic with the Department of Defense and the 

19 co-location of the Honolulu Regional Office of the 

20 Veterans Benefits Administration and the Kapolei 

21 Vet Center of the Department of Veterans Affairs, 

22 an amount not to exceed $15,887,370. 

23 (6) For a community-based outpatient clinic, 

24 Johnson County, Kansas, an amount not to exceed 

25 $2,263,000. 


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1 (7) For a replacement community-based out2 patient clinic, Lafayette, Louisiana, an amount not 

3 to exceed $2,996,000. 

4 (8) For a community-based outpatient clinic, 

5 Lake Charles, Louisiana, an amount not to exceed 

6 $2,626,000. 

7 (9) For outpatient clinic consolidation, New 

8 Port Richey, Florida, an amount not to exceed 

9 $11,927,000. 

10 (10) For an outpatient clinic, Ponce, Puerto 

11 Rico, an amount not to exceed $11,535,000. 

12 (11) For lease consolidation, San Antonio, 

13 Texas, an amount not to exceed $19,426,000. 

14 (12) For a community-based outpatient clinic, 

15 San Diego, California, an amount not to exceed 

16 $11,946,100. 

17 (13) For an outpatient clinic, Tyler, Texas, an 

18 amount not to exceed $4,327,000. 

19 (14) For the Errera Community Care Center, 

20 West Haven, Connecticut, an amount not to exceed 

21 $4,883,000. 

22 (15) For the Worcester community-based Out23 patient Clinic, Worcester, Massachusetts, an amount 

24 not to exceed $4,855,000. 


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1 (16) For the expansion of a community-based 

2 outpatient clinic, Cape Girardeau, Missouri, an 

3 amount not to exceed $4,232,060. 

4 (17) For a multispecialty clinic, Chattanooga, 

5 Tennessee, an amount not to exceed $7,069,000. 

6 (18) For the expansion of a community-based 

7 outpatient clinic, Chico, California, an amount not to 

8 exceed $4,534,000. 

9 (19) For a community-based outpatient clinic, 

10 Chula Vista, California, an amount not to exceed 

11 $3,714,000. 

12 (20) For a new research lease, Hines, Illinois, 

13 an amount not to exceed $22,032,000. 

14 (21) For a replacement research lease, Hous15 ton, Texas, an amount not to exceed $6,142,000. 

16 (22) For a community-based outpatient clinic, 

17 Lincoln, Nebraska, an amount not to exceed 

18 $7,178,400. 

19 (23) For a community-based outpatient clinic, 

20 Lubbock, Texas, an amount not to exceed 

21 $8,554,000. 

22 (24) For a community-based outpatient clinic 

23 consolidation, Myrtle Beach, South Carolina, an 

24 amount not to exceed $8,022,000. 


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1 (25) For a community-based outpatient clinic, 

2 Phoenix, Arizona, an amount not to exceed 

3 $20,757,000. 

4 (26) For the expansion of a community-based 

5 outpatient clinic, Redding, California, an amount not 

6 to exceed $8,154,000. 

7 (27) For the expansion of a community-based 

8 outpatient clinic, Tulsa, Oklahoma, an amount not 

9 to exceed $13,269,200. 

10 SEC. 3. BUDGETARY TREATMENT OF DEPARTMENT OF VET11 ERANS AFFAIRS MAJOR MEDICAL FACILITIES 

12 LEASES. 

13 (a) FINDINGS.—Congress finds the following: 

14 (1) Title 31, United States Code, requires the 

15 Department of Veterans Affairs to record the full 

16 cost of its contractual obligation against funds avail17 able at the time a contract is executed. 

18 (2) Office of Management and Budget Circular 

19 A–11 provides guidance to agencies in meeting the 

20 statutory requirements under title 31, United States 

21 Code, with respect to leases. 

22 (3) For operating leases, Office of Management 

23 and Budget Circular A–11 requires the Department 

24 of Veterans Affairs to record up-front budget au25 thority in an ‘‘amount equal to total payments under 


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1 the full term of the lease or [an] amount sufficient 

2 to cover first year lease payments plus cancellation 

3 costs’’. 

4 (b) REQUIREMENT FOR OBLIGATION OF FULL

5 COST.—Subject to the availability of appropriations pro6 vided in advance, in exercising the authority of the Sec7 retary of Veterans Affairs to enter into leases under sec8 tion 2, the Secretary shall record, pursuant to section 

9 1501 of title 31, United States Code, as the full cost of 

10 the contractual obligation at the time a contract is exe11 cuted, either— 

12 (1) an amount equal to total payments under 

13 the full term of the lease; or 

14 (2) if the lease specifies payments to be made 

15 in the event the lease is terminated before the full 

16 term of the lease, an amount sufficient to cover the 

17 first year lease payments plus the specified cancella18 tion costs. 

19 (c) TRANSPARENCY.— 

20 (1) COMPLIANCE.—Subsection (b) of section 

21 8104 of title 38, United States Code, is amended by 

22 adding at the end the following new paragraph: 

23 ‘‘(7) In the case of a prospectus proposing 

24 funding for a major medical facility lease, a detailed 

25 analysis of how the lease is expected to comply with 


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1 Office of Management and Budget Circular A–11 

2 and section 1341 of title 31 (commonly referred to 

3 as the ‘Anti-Deficiency Act’). Any such analysis shall 

4 include the following: 

5 ‘‘(A) An analysis of the classification of 

6 the lease as a ‘lease-purchase’, ‘capital lease’, or 

7 ‘operating lease’ as those terms are defined in 

8 Office of Management and Budget Circular A– 

9 11. 

10 ‘‘(B) An analysis of the obligation of budg11 etary resources associated with the lease. 

12 ‘‘(C) An analysis of the methodology used 

13 in determining the asset cost, fair market value, 

14 and cancellation costs of the lease.’’. 

15 (2) SUBMITTAL TO CONGRESS.—Such section 

16 8104 is further amended by adding at the end the 

17 following new subsection: 

18 ‘‘(h)(1) Not later than 30 days before entering into 

19 a major medical facility lease, the Secretary shall submit 

20 to the Committee on Veterans’ Affairs of the Senate and 

21 the Committee on Veterans’ Affairs of the House of Rep22 resentatives— 

23 ‘‘(A) notice of the intention of the Secretary to 

24 enter into the lease; 

25 ‘‘(B) a copy of the proposed lease; 


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1 ‘‘(C) a description and analysis of any dif2 ferences between the prospectus submitted pursuant 

3 to subsection (b) and the proposed lease; and 

4 ‘‘(D) a scoring analysis demonstrating that the 

5 proposed lease fully complies with Office of Manage6 ment and Budget Circular A–11. 

7 ‘‘(2) Each committee described in paragraph (1) shall 

8 ensure that any information submitted to the committee 

9 under such paragraph is treated by the committee with 

10 the same level of confidentiality as is required of the Sec11 retary by law and subject to the same statutory penalties 

12 for unauthorized disclosure or use to which the Secretary 

13 is subject. 

14 ‘‘(3) Not later than 30 days after entering into a 

15 major medical facility lease, the Secretary shall submit to 

16 each committee described in paragraph (1) a report on 

17 any material differences between the lease that was en18 tered into and the proposed lease described under such 

19 paragraph, including how the lease that was entered into 

20 changes the previously submitted scoring analysis de21 scribed in subparagraph (D) of such paragraph.’’. 

22 (d) RULE OF CONSTRUCTION.—Nothing in this sec23 tion, or the amendments made by this section, shall be 

24 construed to relieve the Department of Veterans Affairs 

25 from any statutory or regulatory obligations or requireVerDate Mar 15 2010 02:02 Nov 23, 2013 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1740.IS S1740

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1 ments existing prior to the date of the enactment of this 

2 Act. 

Æ 


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