§ 8165. Use of proceeds

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1991

   Pub. L. 102–86 title IV § 401(a) · 105 Stat. 414

   Enacted · 38 U.S.C. § 8165

   Added Pub. L. 102–86, title IV, § 401(a), Aug. 14, 1991, 105 Stat. 421

   Source evidence

   Code source credit
   Added Pub. L. 102–86, title IV, § 401(a), Aug. 14, 1991, 105 Stat. 421

   Enacted provision · exact public law section
   (a) Amendment to Chapter 81.— Chapter 81 is amended by adding at the end the following new subchapter: “SUBCHAPTER V— ENHANCED-USE LEASES OF REAL PROPERTY “§ 8161. Definitions “For the purposes of this subchapter: “(1) The term ‘enhanced-use lease’ means a written lease entered into by the Secretary under this subchapter. “(2) The term ‘congressional veterans’ affairs committees’ means the Committees on Veterans’ Affairs of the Senate and the House of Representatives. “§ 8162. Enhanced-use leases “(a) (1) The Secretary may in accordance with this subchapter enter into leases with respect to real property that is under the jurisdiction or control of the Secretary. Any such lease under this subchapter may be referred to as an ‘enhanced-use lease’. The Secretary may dispose of any such property that is leased to another party under this subchapter in accordance with section 8164 of this title. The Secretary may exercise the authority provided by this subchapter notwithstanding section 8122 of this title, section 321 of the Act of June 30, 1932 (40 U.S.C. 303b), sections 202 and 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483, 484), or any other provision of law (other than Federal laws relating to environmental and historic preservation) inconsistent with this section. The applicability of this subchapter to section 421(b) of the Veterans’ Benefits and Services Act of 1988 (Public Law 100–322; 102 Stat. 553) is covered by subsection (c). “(2) The Secretary may enter into an enhanced-use lease only if the Secretary determines that— “(A) at least part of the use of the property under the lease will be to provide appropriate space for an activity contributing to the mission of the Department; “(B) the lease will not be inconsistent with and will not adversely affect the mission of the Department; and “(C) the lease will enhance the use of the property. “(3) The provisions of the Act of March 3, 1931 (40 U.S.C. 276a et seq.), shall not, by reason of this section, become inapplicable to property that is leased to another party under an enhanced-use lease. “(4) A property that is leased to another party under an enhanced-use lease may not be considered to be unutilized or underutilized for purposes of section 501 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411). “(b) (1) If the Secretary has determined that a property should be leased to another party through an enhanced-use lease, the Secretary shall select the party with whom the lease will be entered into using selection procedures determined by the Secretary that ensure the integrity of the selection process. “(2) The term of an enhanced-use lease may not exceed— “(A) 35 years, in the case of a lease involving the construction of a new building or the substantial rehabilitation of an existing building, as determined by the Secretary; or “(B) 20 years, in the case of a lease not described in subparagraph (A). “(3) (A) Each enhanced-use lease shall be for fair consideration, as determined by the Secretary. Consideration under such a lease may be provided in whole or in part through consideration in-kind. “(B) Consideration in-kind may include provision of goods or services of benefit to the Department, including construction, repair, remodeling, or other physical improvements of Department facilities, maintenance of Department facilities, or the provision of office, storage, or other usable space. “(4) Any payment by the Secretary for the use of space or services by the Department on property that has been leased under this subchapter may only be made from funds appropriated to the Department for the activity that uses the space or services. No other such payment may be made by the Secretary to a lessee under an enhanced-use lease unless the authority to make the payment is provided in advance in an appropriation Act. “(c) (1) Subject to paragraph (2), the entering into an enhanced-use lease covering any land or improvement described in section 421(b)(2) of the Veterans’ Benefits and Services Act of 1988 (Public Law 100–322; 102 Stat. 553) shall be considered to be prohibited by that section unless specifically authorized by law. “(2) The entering into an enhanced-use lease by the Secretary covering any land or improvement described in such section 421(b)(2) shall not be considered to be prohibited under that section if under the lease— “(A) the designated property is to be used only for child-care services; “(B) those services are to be provided only for the benefit of— “(i) employees of the Department; “(ii) individuals employed on the premises of such property; and (iii) employees of a health-personnel educational institution that is affiliated with a Department facility; “(C) over one-half of the employees benefited by the child-care services provided are required to be employees of the Department; and “(D) over one-half of the children to whom child-care services are provided are required to be children of employees of the Department. “§ 8163. Designation of property to be leased “(a) If the Secretary proposes to designate a property to be leased under an enhanced-use lease, the Secretary shall conduct a public hearing before making the designation. The hearing shall be conducted in the community in which the property is located. At the hearing, the Secretary shall receive the views of veterans service organizations and other interested parties regarding the proposed lease of the property and the possible effects of the uses to be made of the property under a lease of the general character then contemplated. The possible effects to be addressed at the hearing shall include effects on— “(1) local commerce and other aspects of the local community; “(2) programs administered by the Department; and “(3) services to veterans in the community. “(b) Before conducting such a hearing, the Secretary shall provide reasonable notice of the proposed designation and of the hearing. The notice shall include— “(1) the time and place of the hearing; “(2) identification of the property proposed to be leased; “(3) a description of the proposed uses of the property under the lease; “(4) a description of how the uses to be made of the property under a lease of the general character then contemplated— “(A) would contribute in a cost-effective manner to the mission of the Department; “(B) would not be inconsistent with the mission of the Department; and “(C) would not adversely affect the mission of the Department; and “(5) a description of how those uses would affect services to veterans. “(c) (1) If after a hearing under subsection (a) the Secretary intends Federal Register publication. to designate the property involved, the Secretary shall notify the veterans’ affairs committees of the Secretary s intention to so designate the property and shall publish a notice of such intention in the Federal Register. “(2) The Secretary may not enter into an enhanced-use lease until the end of a 60-day period of continuous session of Congress following the date of the submission of notice under paragraph (1). For purposes of the preceding sentence, continuity of a session of Congress is broken only by an adjournment sine die, and there shall be excluded from the computation of such 60-day period any day during which either House of Congress is not in session during an adjournment of more than three days to a day certain. “(3) Each notice under paragraph (1) shall include the following: “(A) An identification of the property involved. “(B) An explanation of the background of, rationale for, and economic factors in support of, the proposed lease. “(C) A summary of the views expressed by interested parties at the public hearing conducted in connection with the proposed designation, together with a summary of the Secretary’s evaluation of those views. “(D) A general description of the proposed lease. “(E) A description of how the proposed lease— “(i) would contribute in a cost-effective manner to the mission of the Department; “(ii) would not be inconsistent with the mission of the Department; and “(iii) would not adversely affect the mission of the Department. “(F) A description of how the proposed lease would affect services to veterans. “(4) Not less than 30 days before entering into an enhanced-use Reports. lease, the Secretary shall submit to the congressional veterans’ affairs committees a report on the proposed lease. The report shall include— “(A) updated information with respect to the matters described in paragraph (3); “(B) a summary of a cost-benefit analysis of the proposed lease; “(C) a description of the provisions of the proposed lease; and “(D) a notice of designation with respect to the property. “§ 8164. Authority for disposition of leased property “(a) If, during the term of an enhanced-use lease or within 30 days after the end of the term of the lease, the Secretary determines that the leased property is no longer needed by the Department, the Secretary may initiate action for the transfer to the lessee of all right, title, and interest of the United States in the property by requesting the Administrator of General Services to dispose of the property pursuant to subsection (b). A disposition of property may not be made under this section unless the Secretary determines that the disposition under this section rather than under section 8122 of this title is in the best interests of the Department. The Administrator, upon request of the Secretary, shall take appropriate action under this section to dispose of property of the Department that is or has been subject to an enhanced-use lease. “(b) A disposition under this section may be made for such consideration as the Secretary and the Administrator of General Services jointly determine is in the best interest of the United States and upon such other terms and conditions as the Secretary and the Administrator consider appropriate. “(c) Not less than 90 days before a disposition of property is made Federal Register publication. under this section, the Secretary shall notify the congressional veterans’ affairs committees of the Secretary’s intent to dispose of the property and shall publish notice of the proposed disposition in the Federal Register, The notice shall describe the background of, rationale for, and economic factors in support of, the proposed disposition (including a cost-benefit analysis summary) and the method, terms, and conditions of the proposed disposition. “§ 8165. Use of proceeds “(a) (1) Of the funds received by the Department under an enhanced-use lease and remaining after any deduction from such funds under subsection (b), 75 percent shall be deposited in the nursing home revolving fund established under section 8116 of this title and 25 percent shall be credited to the Medical Care Account of the Department for the use of the Department facility at which the property is located. “(2) Funds received by the Department from a disposal of leased property under section 8164 of this title and remaining after any deduction from such funds under the laws referred to in subsection (c) shall be deposited in the nursing home revolving fund. “(b) An amount sufficient to pay for any expenses incurred by the Secretary in any fiscal year in connection with an enhanced-use lease shall be deducted from the proceeds of the lease for that fiscal year and may be used by the Secretary to reimburse the account from which the funds were used to pay such expenses. “(c) Subsection (a) does not affect the applicability of section 204 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485) or the Act of June 8, 1896 (40 U.S.C. 485a), with respect to reimbursement of the Administrator of General Services for expenses arising from any disposal of property under section 8164 of this title. “§ 8166. Construction standards “(a) Unless the Secretary provides otherwise, the construction, alteration, repair, remodeling, or improvement of the property that is the subject of the lease shall be carried out so as to comply with all standards applicable to construction of Federal buildings. Any such construction, alteration, repair, remodeling, or improvement shall not be subject to any State or local law relating to building codes, permits, or inspections unless the Secretary provides otherwise. “(b) Unless the Secretary has provided that Federal construction standards are not applicable to a property, the Secretary shall conduct periodic inspections of any such construction, alteration, repair, remodeling, or improvement for the purpose of ensuring that the standards are met. “§ 8167. Exemption from State and local taxes “The interest of the United States in any property subject to an enhanced-use lease and any use by the United States of such property during such lease shall not be subject, directly or indirectly, to any State or local law relative to taxation, fees, assessments, or special assessments, except sales taxes charged in connection with any construction, alteration, repair, remodeling, or improvement project carried out under the lease. “§ 8168. Limitation on number of agreements “(a) Not more than 20 enhanced-use leases may be entered into under this subchapter, and not more than 10 such leases may be entered into during any fiscal year. “(b) An enhanced-use lease under which the primary use made of the leased premises is the provision of child-care services for employ-ees of the Department shall not be counted for the purposes of subsection (a). “§ 8169. Expiration “The authority of the Secretary to enter into enhanced-use leases under this subchapter expires on December 31, 1994.”.

2. 1999

   Veterans Millennium Health Care and Benefits Act

   Pub. L. 106–117 title II § 208(d) · 113 Stat. 1545

   1. Added · 38 U.S.C. § 8165(a)(1)

      Pub. L. 106–117 added par. (1)

   2. Struck · 38 U.S.C. § 8165(a)(1)

      Pub. L. 106–117 struck out former par. (1) which read as follows: “Of the funds received by the Department under an enhanced-use lease and remaining after any deduction from such funds under subsection (b), 75 percent shall be deposited in the nursing home revolving fund established under section 8116 of this title and 25 percent shall be credited to the Medical Care Account of the Department for the use of the Department facility at which the property is located.”

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 106–117 added par. (1) and struck out former par. (1) which read as follows: “Of the funds received by the Department under an enhanced-use lease and remaining after any deduction from such funds under subsection (b), 75 percent shall be deposited in the nursing home revolving fund established under section 8116 of this title and 25 percent shall be credited to the Medical Care Account of the Department for the use of the Department facility at which the property is located.”

   Enacted provision · exact public law section
   (d) Use of Proceeds.— Section 8165(a) is amended by striking paragraph (1) and inserting the following: “(a) (1) Funds received by the Department under an enhanced-use lease and remaining after any deduction from those funds under subsection (b) shall be deposited in the Department of Veterans Affairs Health Services Improvement Fund established under section 1729B of this title.”.

3. 2002

   Pub. L. 107–217 § 3(j)(6) · 116 Stat. 1062

   Substituted · 38 U.S.C. § 8165(c)

   Pub. L. 107–217 substituted “subchapter IV of chapter 5 of title 40” for “section 204 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485) or the Act of June 8, 1896 (40 U.S.C. 485a)”

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 107–217 substituted “subchapter IV of chapter 5 of title 40” for “section 204 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485) or the Act of June 8, 1896 (40 U.S.C. 485a)”.

   Enacted provision · exact public law section
   (6) In section 8165(c), strike “section 204 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485) or the Act of June 8, 1896 (40 U.S.C. 485a)” and substitute “subchapter IV of chapter 5 of title 40”.

4. 2003

   District of Columbia Appropriations Act, 2003

   Pub. L. 108–7 div. K title I § 113(d)(1) · 117 Stat. 11

   Substituted · 38 U.S.C. § 8165(a)(1)

   Pub. L. 108–7 substituted “Department of Veterans Affairs Medical Care Collections Fund established under section 1729A of this title” for “Department of Veterans Affairs Health Services Improvement Fund established under section 1729B of this title”

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 108–7 substituted “Department of Veterans Affairs Medical Care Collections Fund established under section 1729A of this title” for “Department of Veterans Affairs Health Services Improvement Fund established under section 1729B of this title”.

   Enacted provision · exact public law section
   Sec. 113. No sole source contract with the District of Columbia government or any agency thereof may be renewed or extended without opening that contract to the competitive bidding process as set forth in section 303 of the District of Columbia Procurement Practices Act of 1985 (D.C. Law 6–85; D.C. Official Code, sec. 2–303.03), except that the District of Columbia government or any agency thereof may renew or extend sole source contracts for which competition is not feasible or practical, but only if the determination as to whether to invoke the competitive bidding process has been made in accordance with duly promulgated rules and procedures and has been reviewed and certified by the Chief Financial Officer of the District of Columbia.

5. 2003

   Pub. L. 108–170 § 202(c)(1) · 117 Stat. 2042

   Struck · 38 U.S.C. § 8165(a)(2)

   Pub. L. 108–170, § 202(c)(1), struck out “and remaining after any deduction from such funds under the laws referred to in subsection (c)” after “title”

   Source evidence

   Code amendment note
   Subsec. (a)(2). Pub. L. 108–170, § 202(c)(1), struck out “and remaining after any deduction from such funds under the laws referred to in subsection (c)” after “title”.

   Enacted provision · exact public law section
   (1) in subsection (a)(2), by striking “and remaining after any deduction from such funds under the laws referred to in subsection (c)”;

6. 2003

   Pub. L. 108–170 § 202(c)(2) · 117 Stat. 2042

   Inserted · 38 U.S.C. § 8165(b)

   Pub. L. 108–170, § 202(c)(2), inserted at end “The Secretary may use the proceeds from any enhanced-use lease to reimburse applicable appropriations of the Department for any expenses incurred in the development of additional enhanced-use leases.”

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 108–170, § 202(c)(2), inserted at end “The Secretary may use the proceeds from any enhanced-use lease to reimburse applicable appropriations of the Department for any expenses incurred in the development of additional enhanced-use leases.”

   Enacted provision · exact public law section
   (2) in subsection (b), by adding at the end the following new sentence: “The Secretary may use the proceeds from any enhanced-use lease to reimburse applicable appropriations of the Department for any expenses incurred in the development of additional enhanced-use leases.”; and

7. 2003

   Pub. L. 108–170 § 202(c)(3) · 117 Stat. 2042

   Struck · 38 U.S.C. § 8165(c)

   Pub. L. 108–170, § 202(c)(3), struck out subsec. (c) which read as follows: “Subsection (a) does not affect the applicability of subchapter IV of chapter 5 of title 40 with respect to reimbursement of the Administrator of General Services for expenses arising from any disposal of property under section 8164 of this title.”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 108–170, § 202(c)(3), struck out subsec. (c) which read as follows: “Subsection (a) does not affect the applicability of subchapter IV of chapter 5 of title 40 with respect to reimbursement of the Administrator of General Services for expenses arising from any disposal of property under section 8164 of this title.”

   Enacted provision · exact public law section
   (3) by striking subsection (c).

8. 2003

   Pub. L. 108–178 § 4(i)(2) · 117 Stat. 2637

   Struck · 38 U.S.C. § 8165(c)

   Pub. L. 108–178 struck out comma after “of title 40”

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 108–178 struck out comma after “of title 40”.

   Enacted provision · exact public law section
   (2) In section 8165(c), as amended by section 3(j)(6) of Public Law 107–217 (116 Stat. 1301), strike the comma appearing after “of title 40”.

   Effective date note
   Amendment by Pub. L. 108–178 effective Aug. 21, 2002, see section 5 of Pub. L. 108–178, set out as a note under section 5334 of Title 5, Government Organization and Employees.

9. 2004

   Veterans Health Programs Improvement Act of 2004

   Pub. L. 108–422 title IV § 411(e)(4) · 118 Stat. 2379

   Substituted · 38 U.S.C. § 8165(a)(2)

   Pub. L. 108–422 substituted “Department of Veterans Affairs Capital Asset Fund established under section 8118 of this title” for “nursing home revolving fund”

   Source evidence

   Code amendment note
   Subsec. (a)(2). Pub. L. 108–422 substituted “Department of Veterans Affairs Capital Asset Fund established under section 8118 of this title” for “nursing home revolving fund”.

   Enacted provision · exact public law section
   (4) Section 8165(a)(2) is amended by striking “nursing home revolving fund” and inserting “Department of Veterans Affairs Capital Asset Fund established under section 8118 of this title”.

10. 2012

    Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012

    Pub. L. 112–154 · 126 Stat. 1165

    Substituted · 38 U.S.C. § 8165(a)(2)

    Pub. L. 112–154 substituted “into the Department of Veterans Affairs Construction, Major Projects account or Construction, Minor Projects account, as the Secretary considers appropriate” for “in the Department of Veterans Affairs Capital Asset Fund established under section 8118 of this title”

    Source evidence

    Code amendment note
    Subsec. (a)(2). Pub. L. 112–154 substituted “into the Department of Veterans Affairs Construction, Major Projects account or Construction, Minor Projects account, as the Secretary considers appropriate” for “in the Department of Veterans Affairs Capital Asset Fund established under section 8118 of this title”.

11. 2022

    Sergeant First Class Heath Robinson Honoring our Promise to Address Comprehensive Toxics Act of 2022

    Pub. L. 117–168 title VII § 705(c) · 136 Stat. 1759

    Substituted · 38 U.S.C. § 8165(a)(1)

    Pub. L. 117–168 substituted “shall, at the discretion of the Secretary, be deposited in—” and subpars. (A) and (B) for “shall be deposited in the Department of Veterans Affairs Medical Care Collections Fund established under section 1729A of this title.”

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 117–168 substituted “shall, at the discretion of the Secretary, be deposited in—” and subpars. (A) and (B) for “shall be deposited in the Department of Veterans Affairs Medical Care Collections Fund established under section 1729A of this title.”

    Enacted provision · exact public law section
    (c) Modification of Use of Proceeds.— Section 8165(a)(1) of such title is amended by striking “shall be deposited in the Department of Veterans Affairs Medical Care Collections Fund established under section 1729A of this title.” and inserting “shall, at the discretion of the Secretary, be deposited in— “(A) the Department of Veterans Affairs Medical Care Collections Fund established under section 1729A of this title; or “(B) the Medical Facilities or Construction, Minor Projects account of the Department to be used to defray the costs of administration, maintenance, repair, and related expenses incurred by the Department with respect to property that is owned by or under the jurisdiction or control of the Department.” .

11 of 12 references resolved to an enrolled provision · 1 partial