38 U.S.C. § 8165 — Use of proceeds

Page 1373 TITLE 38—VETERANS’ BENEFITS § 8165 (b) A disposition under this section may be made in return for cash at fair value as the Sec- retary determines is in the best interest of the United States and upon such other terms and conditions as the Secretary considers appro- priate. (c) Not less than 45 days before a disposition of property is made under this section, the Sec- retary 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 Reg- ister. The notice shall describe the background of, rationale for, and economic factors in sup- port of, the proposed disposition (including a cost-benefit analysis summary) and the method, terms, and conditions of the proposed disposi- tion. (Added Pub. L. 102–86, title IV, § 401(a), Aug. 14, 1991, 105 Stat. 420; amended Pub. L. 108–170, title II, § 202(b), Dec. 6, 2003, 117 Stat. 2047; Pub. L. 108–422, title IV, § 411(e)(3), Nov. 30, 2004, 118 Stat. 2390; Pub. L. 112—154, title II, § 211(e), Aug. 6, 2012, 126 Stat. 1181.) Editorial Notes AMENDMENTS 2012—Subsec. (b). Pub. L. 112–154 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as fol- lows: ‘‘A disposition under this section may be made for such consideration as the Secretary determines is in the best interest of the United States and upon such other terms and conditions as the Secretary considers appropriate.’’ 2004—Subsec. (a). Pub. L. 108–422 inserted ‘‘8118 or’’ after ‘‘rather than under section’’. 2003—Subsec. (a). Pub. L. 108–170, § 202(b)(1), struck out ‘‘by requesting the Administrator of General Serv- ices to dispose of the property pursuant to subsection (b)’’ after ‘‘in the property’’ in first sentence and struck out at end ‘‘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.’’ Subsec. (b). Pub. L. 108–170, § 202(b)(2), substituted ‘‘Secretary determines’’ for ‘‘Secretary and the Admin- istrator of General Services jointly determine’’ and ‘‘Secretary considers’’ for ‘‘Secretary and the Adminis- trator consider’’. Subsec. (c). Pub. L. 108–170, § 202(b)(3), substituted ‘‘45 days’’ for ‘‘90 days’’. § 8165. Use of proceeds (a)(1) Funds received by the Department under an enhanced-use lease and remaining after any deduction from those funds under subsection (b) shall, at the discretion of the Secretary, be de- posited in— (A) the Department of Veterans Affairs Med- ical 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 in- curred by the Department with respect to property that is owned by or under the juris- diction or control of the Department. (2) Funds received by the Department from a disposal of leased property under section 8164 of this title shall be deposited into the Department of Veterans Affairs Construction, Major Projects account or Construction, Minor Projects ac- count, as the Secretary considers appropriate. (b) An amount sufficient to pay for any ex- penses 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 Sec- retary to reimburse the account from which the funds were used to pay such expenses. The Sec- retary 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. (Added Pub. L. 102–86, title IV, § 401(a), Aug. 14, 1991, 105 Stat. 421; amended Pub. L. 106–117, title II, § 208(d), Nov. 30, 1999, 113 Stat. 1568; Pub. L. 107–217, § 3(j)(6), Aug. 21, 2002, 116 Stat. 1301; Pub. L. 108–7, div. K, title I, § 113(d)(1), Feb. 20, 2003, 117 Stat. 483; Pub. L. 108–170, title II, § 202(c), Dec. 6, 2003, 117 Stat. 2048; Pub. L. 108–178, § 4(i)(2), Dec. 15, 2003, 117 Stat. 2642; Pub. L. 108–422, title IV, § 411(e)(4), Nov. 30, 2004, 118 Stat. 2390; Pub. L. 112—154, title II, § 211(f), Aug. 6, 2012, 126 Stat. 1181; Pub. L. 117–168, title VII, § 705(c), Aug. 10, 2022, 136 Stat. 1800.) Editorial Notes AMENDMENTS 2022—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 Collec- tions Fund established under section 1729A of this title.’’ 2012—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 appro- priate’’ for ‘‘in the Department of Veterans Affairs Cap- ital Asset Fund established under section 8118 of this title’’. 2004—Subsec. (a)(2). Pub. L. 108–422 substituted ‘‘De- partment of Veterans Affairs Capital Asset Fund estab- lished under section 8118 of this title’’ for ‘‘nursing home revolving fund’’. 2003—Subsec. (a)(1). Pub. L. 108–7 substituted ‘‘De- partment of Veterans Affairs Medical Care Collections Fund established under section 1729A of this title’’ for ‘‘Department of Veterans Affairs Health Services Im- provement Fund established under section 1729B of this title’’. 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’’. Subsec. (b). Pub. L. 108–170, § 202(c)(2), inserted at end ‘‘The Secretary may use the proceeds from any en- hanced-use lease to reimburse applicable appropria- tions of the Department for any expenses incurred in the development of additional enhanced-use leases.’’ Subsec. (c). Pub. L. 108–178 struck out comma after ‘‘of title 40’’. Pub. L. 108–170, § 202(c)(3), struck out subsec. (c) which read as follows: ‘‘Subsection (a) does not affect the ap- plicability of subchapter IV of chapter 5 of title 40 with respect to reimbursement of the Administrator of Gen- eral Services for expenses arising from any disposal of property under section 8164 of this title.’’ 2002—Subsec. (c). Pub. L. 107–217 substituted ‘‘sub- chapter 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)’’. Page 1374 TITLE 38—VETERANS’ BENEFITS § 8166 1999—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 en- hanced-use lease and remaining after any deduction from such funds under subsection (b), 75 percent shall be deposited in the nursing home revolving fund estab- lished 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.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2003 AMENDMENT 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. § 8166. Construction standards The construction, alteration, repair, remod- eling, or improvement of a property that is the subject of an enhanced-use lease shall be carried out so as to comply with all applicable provi- sions of Federal, State, and local law relating to land use, building standards, permits, and in- spections. (Added Pub. L. 102–86, title IV, § 401(a), Aug. 14, 1991, 105 Stat. 421; amended Pub. L. 108–422, title IV, § 417, Nov. 30, 2004, 118 Stat. 2393; Pub. L. 112—154, title II, § 211(g), Aug. 6, 2012, 126 Stat. 1181.) Editorial Notes AMENDMENTS 2012—Pub. L. 112–154 amended section generally. Prior to amendment, section read as follows: ‘‘(a) Unless the Secretary provides otherwise, the construction, alteration, repair, remodeling, or im- provement 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 build- ings. Any such construction, alteration, repair, remod- eling, or improvement shall not be subject to any State or local law relating to land use, building codes, per- mits, or inspections unless the Secretary provides oth- erwise. ‘‘(b) Unless the Secretary has provided that Federal construction standards are not applicable to a prop- erty, the Secretary shall conduct periodic inspections of any such construction, alteration, repair, remod- eling, or improvement for the purpose of ensuring that the standards are met.’’ 2004—Subsec. (a). Pub. L. 108–422 inserted ‘‘land use,’’ after ‘‘relating to’’ in second sentence. § 8167. Exemption from State and local taxes (a) IMPROVEMENTS AND OPERATIONS NOT EX- EMPTED.—The improvements and operations on land leased by a person with an enhanced-use lease from the Secretary shall be subject to all applicable provisions of Federal, State, or local law relating to taxation, fees, and assessments. (b) UNDERLYING FEE TITLE INTEREST EXEMPT- ED.—The underlying fee title interest of the United States in any land subject to an en- hanced-use lease shall not be subject, directly or indirectly, to any provision of State or local law relating to taxation, fees, or assessments. (Added Pub. L. 102–86, title IV, § 401(a), Aug. 14, 1991, 105 Stat. 421; amended Pub. L. 112—154, title II, § 211(h), Aug. 6, 2012, 126 Stat. 1181.) Editorial Notes AMENDMENTS 2012—Pub. L. 112–154 amended section generally. Prior to amendment, section read as follows: ‘‘The interest of the United States in any property subject to an en- hanced-use lease and any use by the United States of such property during such lease shall not be subject, di- rectly or indirectly, to any State or local law relative to taxation, fees, assessments, or special assessments, except sales taxes charged in connection with any con- struction, alteration, repair, remodeling, or improve- ment project carried out under the lease.’’ § 8168. Annual reports (a) REPORT ON ADMINISTRATION OF LEASES.—(1) Not later than 120 days after the date of the en- actment of the Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012 and not less frequently than once each year thereafter, the Secretary shall submit to the congressional veterans’ affairs committees, the Committees on Appropriations of the House of Representatives and the Senate, and the Com- mittees on the Budget of the House of Rep- resentatives and the Senate a report on en- hanced-use leases. (2) Each report under paragraph (1) shall in- clude the following: (A) Identification of the actions taken by the Secretary to implement and administer enhanced-use leases. (B) For the most recent fiscal year covered by the report, the amounts deposited into the Medical Care Collection Fund account that were derived from enhanced-use leases. (C) Identification of the actions taken by the Secretary using the amounts described in sub- paragraph (B). (D) Documents of the Department sup- porting the contents of the report described in subparagraphs (A) through (C). (b) REPORT ON LEASE CONSIDERATION.—(1) Each year, as part of the annual budget submission of the President to the congressional veterans’ af- fairs committees, the Committees on Appropria- tions of the House of Representatives and the Senate, and the Committees on the Budget of the House of Representatives and the Senate under section 1105(a) of title 31, the Secretary shall submit to the congressional veterans’ af- fairs committees, the Committees on Appropria- tions of the House of Representatives and the Senate, and the Committees on the Budget of the House of Representatives and the Senate a detailed report of the consideration received by the Secretary for each enhanced-use lease under this subchapter. (2) Each report under paragraph (1) shall in- clude the following with respect to each en- hanced-use lease covered by the report: (A) An overview of how the Secretary is using consideration received by the Secretary under the lease to support veterans. (B) The amount of consideration received by the Secretary under the lease. (C) The amount of any revenues collected by the Secretary relating to the lease not covered by subparagraph (B), including a description of any in-kind assistance or services provided by the lessee to the Secretary or to veterans