IIB 

113TH CONGRESS 

1ST SESSION H. R. 3521 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 11, 2013 

Received 

DECEMBER 20, 2013 

Read twice and referred to the Committee on Veterans’ Affairs 

AN ACT 

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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Department of Vet3 erans Affairs Major Medical Facility Lease Authorization 

4 Act of 2013’’. 

5 SEC. 2. AUTHORIZATION OF MAJOR MEDICAL FACILITY 

6 LEASES. 

7 The Secretary of Veterans Affairs may carry out the 

8 following major medical facility leases at the locations 

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

10 the amount shown for such location (not including any es11 timated cancellation costs): 

12 (1) For a clinical research and pharmacy co13 ordinating center, Albuquerque, New Mexico, an 

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

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

16 Brick, New Jersey, an amount not to exceed 

17 $7,280,000. 

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

19 annex, Charleston, South Carolina, an amount not 

20 to exceed $7,070,250. 

21 (4) For the Cobb County community-based 

22 Outpatient Clinic, Cobb County, Georgia, an amount 

23 not to exceed $6,409,000. 

24 (5) For the Leeward Outpatient Healthcare Ac25 cess Center, Honolulu, Hawaii, including a co-lo26 cated clinic with the Department of Defense and the 


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1 co-location of the Honolulu Regional Office of the 

2 Veterans Benefits Administration and the Kapolei 

3 Vet Center of the Department of Veterans Affairs, 

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

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

6 Johnson County, Kansas, an amount not to exceed 

7 $2,263,000. 

8 (7) For a replacement community-based out9 patient clinic, Lafayette, Louisiana, an amount not 

10 to exceed $2,996,000. 

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

12 Lake Charles, Louisiana, an amount not to exceed 

13 $2,626,000. 

14 (9) For outpatient clinic consolidation, New 

15 Port Richey, Florida, an amount not to exceed 

16 $11,927,000. 

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

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

19 (11) For lease consolidation, San Antonio, 

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

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

22 San Diego, California, an amount not to exceed 

23 $11,946,100. 

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

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


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1 (14) For the Errera Community Care Center, 

2 West Haven, Connecticut, an amount not to exceed 

3 $4,883,000. 

4 (15) For the Worcester community-based Out5 patient Clinic, Worcester, Massachusetts, an amount 

6 not to exceed $4,855,000. 

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

8 outpatient clinic, Cape Girardeau, Missouri, an 

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

10 (17) For a multispecialty clinic, Chattanooga, 

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

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

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

14 exceed $4,534,000. 

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

16 Chula Vista, California, an amount not to exceed 

17 $3,714,000. 

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

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

20 (21) For a replacement research lease, Hous21 ton, Texas, an amount not to exceed $6,142,000. 

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

23 Lincoln, Nebraska, an amount not to exceed 

24 $7,178,400. 


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

2 Lubbock, Texas, an amount not to exceed 

3 $8,554,000. 

4 (24) For a community-based outpatient clinic 

5 consolidation, Myrtle Beach, South Carolina, an 

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

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

8 Phoenix, Arizona, an amount not to exceed 

9 $20,757,000. 

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

11 outpatient clinic, Redding, California, an amount not 

12 to exceed $8,154,000. 

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

14 outpatient clinic, Tulsa, Oklahoma, an amount not 

15 to exceed $13,269,200. 

16 SEC. 3. BUDGETARY TREATMENT OF DEPARTMENT OF VET17 ERANS AFFAIRS MAJOR MEDICAL FACILITIES 

18 LEASES. 

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

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

21 Department of Veterans Affairs to record the full 

22 cost of its contractual obligation against funds avail23 able at the time a contract is executed. 

24 (2) Office of Management and Budget Circular 

25 A–11 provides guidance to agencies in meeting the 


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1 statutory requirements under title 31, United States 

2 Code, with respect to leases. 

3 (3) For operating leases, Office of Management 

4 and Budget Circular A–11 requires the Department 

5 of Veterans Affairs to record up-front budget au6 thority in an ‘‘amount equal to total payments under 

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

8 to cover first year lease payments plus cancellation 

9 costs’’. 

10 (b) REQUIREMENT FOR OBLIGATION OF FULL

11 COST.—Subject to the availability of appropriations pro12 vided in advance, in exercising the authority of the Sec13 retary of Veterans Affairs to enter into leases provided 

14 in this Act, the Secretary shall record, pursuant to section 

15 1501 of title 31, United States Code, as the full cost of 

16 the contractual obligation at the time a contract is exe17 cuted either— 

18 (1) an amount equal to total payments under 

19 the full term of the lease; or 

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

21 in the event the lease is terminated before its full 

22 term, an amount sufficient to cover the first year 

23 lease payments plus the specified cancellation costs. 

24 (c) TRANSPARENCY.— 


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

2 8104 of title 38, United States Code, is amended by 

3 adding at the end the following new paragraph: 

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

5 funding for a major medical facility lease, a detailed 

6 analysis of how the lease is expected to comply with 

7 Office of Management and Budget Circular A–11 

8 and section 1341 of title 31 (commonly referred to 

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

10 include— 

11 ‘‘(A) an analysis of the classification of the 

12 lease as a ‘lease-purchase’, ‘capital lease’, or 

13 ‘operating lease’ as those terms are defined in 

14 Office of Management and Budget Circular A– 

15 11; 

16 ‘‘(B) an analysis of the obligation of budg17 etary resources associated with the lease; and 

18 ‘‘(C) an analysis of the methodology used 

19 in determining the asset cost, fair market value, 

20 and cancellation costs of the lease.’’. 

21 (2) SUBMITTAL TO CONGRESS.—Such section 

22 8104 is further amended by adding at the end the 

23 following new subsection: 

24 ‘‘(h)(1) Not less than 30 days before entering into 

25 a major medical facility lease, the Secretary shall submit 


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1 to the Committees on Veterans’ Affairs of the Senate and 

2 the House of Representatives— 

3 ‘‘(A) notice of the Secretary’s intention to enter 

4 into the lease; 

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

6 ‘‘(C) a description and analysis of any dif7 ferences between the prospectus submitted pursuant 

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

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

10 proposed lease fully complies with Office of Manage11 ment and Budget Circular A–11. 

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

13 ensure that any information submitted to the committee 

14 under such paragraph is treated by the committee with 

15 the same level of confidentiality as is required by law of 

16 the Secretary and subject to the same statutory penalties 

17 for unauthorized disclosure or use as the Secretary. 

18 ‘‘(3) Not more than 30 days after entering into a 

19 major medical facility lease, the Secretary shall submit to 

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

21 any material differences between the lease that was en22 tered into and the proposed lease described under such 

23 paragraph, including how the lease that was entered into 

24 changes the previously submitted scoring analysis de25 scribed in subparagraph (D) of such paragraph.’’. 


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1 (d) RULE OF CONSTRUCTION.—Nothing in this sec2 tion, or the amendments made by this section, shall be 

3 construed to in any way relieve the Department of Vet4 erans Affairs from any statutory or regulatory obligations 

5 or requirements existing prior to the enactment of this 

6 section and such amendments. 

7 SEC. 4. BUDGETARY EFFECTS OF THIS ACT. 

8 The budgetary effects of this Act, for the purpose of 

9 complying with the Statutory Pay-As-You-Go Act of 2010, 

10 shall be determined by reference to the latest statement 

11 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

12 Act, submitted for printing in the Congressional Record 

13 by the Chairman of the Committee on the Budget of the 

14 House of Representatives, as long as such statement has 

15 been submitted prior to the vote on passage of this Act. 

Passed the House of Representatives December 10, 

2013. 

Attest: KAREN L. HAAS, 

Clerk. 


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