local conditions and needs and the actual costs to the providing facility of the resource involved."

Subsec. (d). Pub. L. 104-262, §301(c)(3), substituted "preclude such payment to such facility for such care or services" for "preclude such payment, in accordance with

"(1) rates prescribed by the Secretary of Health and Human Services, after consultation with the Secretary, and

"(2) procedures jointly prescribed by the two Secretaries to assure reasonable quality of care and services and efficient and economical utilization of resources,

to such facility therefor".

Subsecs. (e) to (g). Pub. L. 104-262, §301(c)(4), added subsecs. (e) and (f) and redesignated former subsec. (e) as (g).

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 712, 8107, 8157, 8158 of this title.

§ 8154. Exchange of medical information

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7302, 8155 of this title.

SUBCHAPTER V-ENHANCED-USE LEASES OF REAL PROPERTY

§ 8161. Definitions

TRAINING AND OUTREACH REGARDING AUTHORITY Pub. L. 106-117, title II, § 208(f), Nov. 30, 1999, 113 Stat. 1568, provided that: "The Secretary [of Veterans Affairs] shall take appropriate actions to provide training and outreach to personnel at Department [of Veterans Affairs] medical centers regarding the enhanced-use lease authority under subchapter V of chapter 81 of title 38, United States Code. The training and outreach shall address methods of approaching potential lessees in the medical or commercial sectors regarding the possibility of entering into leases under that authority and other appropriate matters."

INDEPENDENT ANALYSIS OF OPPORTUNITIES FOR USE OF AUTHORITY

Pub. L. 106-117, title II, § 208(g), Nov. 30, 1999, 113 Stat. 1568, provided that:

"(1) The Secretary [of Veterans Affairs] shall take appropriate actions to secure from an appropriate entity (or entities) independent of the Department [of Veterans Affairs] an analysis (or analyses) of opportunities for the use of the enhanced-use lease authority under subchapter V of chapter 81 of title 38, United States Code.

"(2) An analysis under paragraph (1) shall include

"(A) a survey of facilities of the Department for purposes of identifying Department property that presents an opportunity for lease under the enhanceduse lease authority;

"(B) an assessment of the feasibility of entering into enhanced-use leases under that authority in the case of any property identified under subparagraph (A) as presenting an opportunity for such lease; and "(C) an assessment of the resources required at the Department facilities concerned, and at the Department Central Office, in order to facilitate the entering into of enhanced-used leases in the case of property so identified.

"(3) If as a result of a survey under paragraph (2)(A) an entity carrying out an analysis under this subsection determines that a particular Department property presents no opportunities for lease under the enhanced-use lease authority, the analysis shall include the entity's explanation of that determination.

"(4) If as a result of such a survey an entity carrying out an analysis under this subsection determines that

certain Department property presents an opportunity for lease under the enhanced-use lease authority, the analysis shall include a single integrated business plan, developed by the entity, that addresses the strategy and resources necessary to implement the plan for all property determined to present an opportunity for such lease."

ENHANCED USE LEASES

Pub. L. 104-110, title II, §202(c), Feb. 13, 1996, 110 Stat. 771, provided that: "The Secretary shall submit to Congress, not later than March 31, 1997, a report evaluating the operation of the program under subchapter V of chapter 81 of title 38, United States Code."

§ 8162. Enhanced-use leases

(a) [See main edition for text of (1)]

(2) The Secretary may enter into an enhanceduse lease only if—

(A) the Secretary determines that

(i) at least part of the use of the property under the lease will be to provide appropriate space for an activity contributing to the mission of the Department;

(ii) the lease will not be inconsistent with and will not adversely affect the mission of the Department; and

(iii) the lease will enhance the use of the property; or

(B) the Secretary determines that the implementation of a business plan proposed by the Under Secretary for Health for applying the consideration under such a lease to the provision of medical care and services would result in a demonstrable improvement of services to eligible veterans in the geographic service-delivery area within which the property is located.

[See main edition for text of (3) and (4)] (b) [See main edition for text of (1)] (2) The term of an enhanced-use lease may not exceed 75 years.

[See main edition for text of (3)]

(4) The terms of an enhanced-use lease may provide for the Secretary to

(A) obtain facilities, space, or services on the leased property; and

(B) use minor construction funds for capital contribution payments.

[See main edition for text of (c)]

(As amended Pub. L. 106-117, title II, §208(a), (b), Nov. 30, 1999, 113 Stat. 1567.)

AMENDMENTS

1999 Subsec. (a)(2). Pub. L. 106-117, § 208(a), inserted subpar. (A) designation before "the Secretary", redesignated subpars. (A) to (C) as cls. (i) to (iii), respectively, and realigned the margins, substituted "; or" for period at end of cl. (iii), and added subpar. (B). Subsec. (b)(2). Pub. L. 106–117, § 208(b)(1), substituted "may not exceed 75 years." for "may not exceed—”

"(A) 35 years, in the case of a lease involving the construction of a new building or the substantial rehabilitation of an existing building, as determined by the Secretary; or

"(B) 20 years, in the case of a lease not described in subparagraph (A)."

Subsec. (b)(4). Pub. L. 106–117, § 208(b)(2), added par. (4) and struck out former par. (4) which read as follows:

"Any payment by the Secretary for the use of space or services by the Department on property that has been leased under this subchapter may only be made from funds appropriated to the Department for the activity that uses the space or services. No other such payment may be made by the Secretary to a lessee under an enhanced-use lease unless the authority to make the payment is provided in advance in an appropriation Act."

§ 8163. Designation of property to be leased

[See main edition for text of (a)]

(b) Before conducting such a hearing, the Secretary shall provide reasonable notice of the proposed designation and of the hearing. The notice shall include the following:

(1) The time and place of the hearing.

(2) Identification of the property proposed to be leased.

(3) A description of the proposed uses of the property under the lease.

(4) A description of how the uses to be made of the property under a lease of the general character then contemplated

(A) would

(i) contribute in a cost-effective manner to the mission of the Department;

(ii) not be inconsistent with the mission of the Department;

(iii) not adversely affect the mission of the Department; and

(iv) affect services to veterans; or

(B) would result in a demonstrable improvement of services to eligible veterans in the geographic service-delivery area within which the property is located.

(5) A description of how those uses would affect services to veterans.

(c) [See main edition for text of (1) and (2)] (3) Each notice under paragraph (1) shall include the following:

[See main edition for text of (A) to (D)]

(E) A description of how the proposed lease(i) would

(I) contribute in a cost-effective manner to the mission of the Department;

(II) not be inconsistent with the mission of the Department;

(III) not adversely affect the mission of the Department; and

(IV) affect services to veterans; or

(ii) would result in a demonstrable improvement of services to eligible veterans in the geographic service-delivery area within which the property is located.

[See main edition for text of (F), (4)]

(As amended Pub. L. 106-117, title II, §208(c), Nov. 30, 1999, 113 Stat. 1567.)

AMENDMENTS

1999 Subsec. (b). Pub. L. 106-117, § 208(c)(1)(A), substituted "include the following:" for "include" in introductory provisions.

Subsec. (b)(1) to (3). Pub. L. 106-117, § 208(c)(1)(B), (C), capitalized the first letter of the first word and substituted a period for the semicolon at end.

Subsec. (b)(4). Pub. L. 106–117, § 208(c)(1)(B), (D), in introductory provisions, capitalized the first letter of the first word, added subpars. (A) and (B), and struck out former subpars. (A) to (C) which read as follows:

"(A) would contribute in a cost-effective manner to the mission of the Department;

"(B) would not be inconsistent with the mission of the Department; and

"(C) would not adversely affect the mission of the Department; and".

Subsec. (b)(5). Pub. L. 106-117, §208(c)(1)(B), capitalized the first letter of the first word.

Subsec. (c)(3)(E). Pub. L. 106-117, §208(c)(2), which directed the substitution of cls. (i) and (ii) for cls. (i) to (iii) in subsec. (c)(1)(E), was executed by amending subsec. (c)(3)(E) to reflect the probable intent of Congress. Prior to amendment, cls. (i) to (iii) read as follows:

"(i) would contribute in a cost-effective manner to the mission of the Department;

"(ii) would not be inconsistent with the mission of the Department; and

"(iii) would not adversely affect the mission of the Department."

§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 be deposited in the Department of Veterans Affairs Health Services Improvement Fund established under section 1729B of this title.

[See main edition for text of (2); (b) and (c)] (As amended Pub. L. 106-117, title II, §208(d), Nov. 30, 1999, 113 Stat. 1568.)

AMENDMENTS

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 enhanced-use lease and remaining after any deduction from such funds under subsection (b), 75 percent shall be deposited in the nursing home revolving fund established under section 8116 of this title and 25 percent shall be credited to the Medical Care Account of the Department for the use of the Department facility at which the property is located."

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1729B of this title.

[§ 8168. Repealed. Pub. L. 105-114, title II, § 205(b)(1), Nov. 21, 1997, 111 Stat. 2288] Section, added Pub. L. 102-86, title IV, §401(a), Aug. 14, 1991, 105 Stat. 421, limited number of enhanced-use leases that could be entered into under this subchapter. § 8169. Expiration

The authority of the Secretary to enter into enhanced-use leases under this subchapter expires on December 31, 2011.

(As amended Pub. L. 104–110, title I, § 101(k), Feb. 13, 1996, 110 Stat. 769; Pub. L. 105-114, title II, § 205(a), Nov. 21, 1997, 111 Stat. 2288; Pub. L. 106-117, title II, §208(e), Nov. 30, 1999, 113 Stat. 1568.)

AMENDMENTS

1999-Pub. L. 106-117 substituted "December 31, 2011" for "December 31, 2001".

1997-Pub. L. 105-114 substituted "December 31, 2001" for "December 31, 1997".

1996-Pub. L. 104-110 substituted "December 31, 1997" for "December 31, 1995".

RATIFICATION OF ACTIONS DURING PERIOD OF EXPIRED AUTHORITY

Any action taken by Secretary of Veterans Affairs before Feb. 13, 1996, under provision of law amended by title I of Pub. L. 104-110 that was taken during period

beginning on date on which authority of Secretary under such provision of law expired and ending on Feb. 13, 1996, considered to have same force and effect as if such amendment had been in effect at time of that action, see section 103 of Pub. L. 104-110, set out as a note under section 1710 of this title.