[House Report 113-245]
[From the U.S. Government Printing Office]


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

                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:

``Sec. 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.''.

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
                  (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''.

                          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 Long-Term 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, specified 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 
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 service-connected 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 long-term 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 non-institutional 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. Sec. 17.61 
through Sec. 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 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 
long-term 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 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. Sec. 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 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.
    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 Association; 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 Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are 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 income 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 SPENDINGa
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
----------------------------------------------------------------------------------------------------------------
aCBO 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 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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.

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-   2013-
                                                   2013    2014    2015    2016     2017    2018    2019    2020    2021    2022     2023     2018    2023
--------------------------------------------------------------------------------------------------------------------------------------------------- -------
                                                             NET DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-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 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.''

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-You-Go 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. Sec. 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. Sec. 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. Sec. 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. Sec. 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. 
Sec. 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 
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. 
Sec. 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. Sec. 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. Sec. 1720(h)(1), as a home designed to provide non-
institutional, long-term, 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. 
Sec. 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. 
Sec. 2065(b) by: (1) by redesignating paragraph (6) as 
paragraph (7); and by inserting after paragraph (5) a new 
paragraph (6) which would provide authority 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. Sec. 9620(h)) and of 
the Solid Waste Disposal Act, (found at 42 U.S.C. Sec. 6901). 
This section also would exempt VA from liability, remediation, 
or abatement requirements 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.

           *       *       *       *       *       *       *


Sec. 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.

           *       *       *       *       *       *       *


PART II--GENERAL BENEFITS

           *       *       *       *       *       *       *


CHAPTER 17--HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE

           *       *       *       *       *       *       *


SUBCHAPTER II--HOSPITAL, NURSING HOME, OR DOMICILIARY CARE AND MEDICAL 
TREATMENT

           *       *       *       *       *       *       *


Sec. 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

           *       *       *       *       *       *       *


Sec. 2012. Per diem payments

  (a) * * *

           *       *       *       *       *       *       *

  (c) Life Safety Code.--[(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 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

           *       *       *       *       *       *       *


Sec. 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).
          [(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

           *       *       *       *       *       *       *


Sec. 3729. Loan fee

  (a) * * *
  (b) Determination of Fee.--(1) * * *
  (2) The loan fee table referred to in paragraph (1) is as 
follows:

                             LOAN FEE TABLE
------------------------------------------------------------------------
                                 Active duty                    Other
         Type of loan              veteran      Reservist      obligor
------------------------------------------------------------------------
(A)(i) Initial loan described          2.00          2.75            NA
 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)........................
------------------------------------------------------------------------
(A)(ii) Initial loan described         2.20          2.40            NA
 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).....................
------------------------------------------------------------------------
(A)(iii) Initial loan                  2.15          2.40            NA
 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, [2017] 2018)..............
------------------------------------------------------------------------
(A)(iv) Initial loan described         1.40          1.65            NA
 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, [2017] 2018)..............
------------------------------------------------------------------------
(B)(i) Subsequent loan                 3.30          3.30            NA
 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)........................
------------------------------------------------------------------------
(B)(ii) Subsequent loan                1.25          1.25            NA
 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).....................
------------------------------------------------------------------------
(C)(i) Loan described in               1.50          1.75            NA
 section 3710(a) to purchase
 or construct a dwelling with
 5-down (closed before October
 1, [2017] 2018)..............
------------------------------------------------------------------------
(C)(ii) Loan described in              0.75          1.00            NA
 section 3710(a) to purchase
 or construct a dwelling with
 5-down (closed on or after
 October 1, [2017] 2018)......
------------------------------------------------------------------------
(D)(i) Initial loan described          1.25          1.50            NA
 in section 3710(a) to
 purchase or construct a
 dwelling with 10-down (closed
 before October 1, [2017]
 2018)........................
------------------------------------------------------------------------
(D)(ii) Initial loan described         0.50          0.75            NA
 in section 3710(a) to
 purchase or construct a
 dwelling with 10-down (closed
 on or after October 1, [2017]
 2018)........................
------------------------------------------------------------------------
(E) Interest rate reduction            0.50          0.50            NA
 refinancing loan.............
(F) Direct loan under section          1.00          1.00            NA
 3711.........................
------------------------------------------------------------------------
(G) Manufactured home loan             1.00          1.00            NA
 under section 3712 (other
 than an interest rate
 reduction refinancing loan)..
------------------------------------------------------------------------
(H) Loan to Native American            1.25          1.25            NA
 veteran under section 3762
 (other than an interest rate
 reduction refinancing loan)..
------------------------------------------------------------------------
(I) Loan assumption under              0.50          0.50          0.50
 section 3714.................
------------------------------------------------------------------------
(J) Loan under section 3733(a)         2.25          2.25          2.25
------------------------------------------------------------------------

                                                            

           *       *       *       *       *       *       *
PART IV--GENERAL ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *


CHAPTER 53--SPECIAL PROVISIONS RELATING TO BENEFITS

           *       *       *       *       *       *       *


Sec. 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 [September 30, 2016] May 31, 
2017.

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