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of title 38 which will authorize the veterans' canteen service to provide capital improvements to canteen facilities, including items whichare constructed and become a part of the building structure.

While these latter proposals would, at first glance, provide some additional flexibility in the fiscal procedures now applicable to the canteen service, we are not certain that they are necessary or desirable at this time. We currently are in the process of determining whether or not there is a need for contract authority in the canteen service. In the course of preliminary discussions related to this review, we have determined that under the service's present accounting system we would not be able to identify purchases and receipts related to the exercise of contract authority. Thus at present we do not have the administrative capability to reasonably exercise such authority.

As a technical matter, we would note that under the Congressional Budget Act of 1974, contract authority is effective only to such extent and in such amounts as are provided in appropriation acts, and that to be in compliance with the act, H.R. 12980 would need to contain language to that effect.

We are also now reviewing our construction process with the aim of improving the planning, cost projection, and efficiency of the entire process. We would prefer to address the problem of funding canteen construction in the context of this broader review.

In light of the above, we feel any action directed to the fiscal or construction procedures applicable to the canteen service is inappropriate at this time.

Enactment of the bill would not require an expenditure of appropriated funds.

We are advised by the Office of Management and Budget that there is no objection to the presentation of this report from the standpoint of the administration's program.

Sincerely,

RICHARD L. ROUDEBUSH,
Administrator.

94TH CONGRESS 2D SESSION

H. R. 13255

IN THE HOUSE OF REPRESENTATIVES

APRIL 13, 1976

Mr. TEAGUE introduced the following bill; which was referred to the Committee on Veterans' Affairs

A BILL

To authorize the Administrator of Veterans' Affairs to convey certain property at the Veterans' Administration Hospital, North Chicago, Illinois, to the University of Health Sciences/ The Chicago Medical School, a private nonprofit educational institution.

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Be it enacted by the Senate and House of Represente2 tires of the United States of America in Congress assembled,

That the Administrator of Veterans' Affairs is authorized to

4 convey by quitclaim deed, without monetary consideration,

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to the University of Health Sciences/The Chicago Medical 6 School, a private, nonprofit educational institution, for medi7 cal purposes, all right, title, and interest of the United States

8 in and to certain real property, including the improvements

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1 thereon, containing eighty-seven acres, more or less, at the 2 Veterans' Administration Hospital, North Chicago, Illinois. 3 The exact legal description of the real property to be con4 veyed pursuant to this Act shall be determined by the Ad5 ministrator of Veterans' Affairs, and if a survey is required 6 in order to make such a determination, the University of 7 Health Sciences/The Chicago Medical School shall bear the 8 expense thereof.

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SEC. 2. Any deed of conveyance issued pursuant to this

10 Act shall contain the following:

(1) A provision that the land conveyed shall be used solely for medical purposes by the University of

Health Sciences/the Chicago Medical School, and in

a manner that will not, in the judgment of the Administrator of Veterans' Affairs, or his designate, interfere with the care and treatment of patients in the Veterans' Administration Hospital, North Chicago,

Illinois.

(2) Such additional terms, conditions, reservations, easements, and restrictions as may be determined by the Administrator of Veteran's Affairs to be necessary to protect the interest of the United States.

(3) A provision that, if the Administrator of Veterans' Affairs determines that the University of Health Sciences/The Chicago Medical School, or its successor

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in interest, has violated any provision of the deed of con

veyance, title to the land conveyed by such deed shall revert to the United States.

(4) A provision that (A) after a determination which requires a reversion of such land, and (B) after the Administrator of Veterans' Affairs (i) makes a determination as to reasonable compensation for any improvements to the land made after the conveyance by deed of such land, and (ii) pays such reasonable compensation to the University of Health Sciences/The Chicago Medical School, or its successor, all right, title, and interest to such improvements shall vest in the United States.

(5) A provision that any determination by the Administrator of Veterans' Affairs with respect to any provision contained in the deed of conveyance of such land to the University of Health Sciences/The Chicago Medical School (A) shall be on the record after oppor

tunity for an agency hearing, and (B) shall be subject to judicial review.

Chairman, Committee on Veterans' Affairs,

House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: This is in response to your request for a report on H.R. 13255, 94th Congress. The bill is similar to H.R. 10253, 94th Congress, as to which we furnished an unfavorable report to your committee on December 5, 1975.

The bill would authorize the Administrator of Veterans' Affairs to convey by quitclaim deed, without monetary consideration, to the University of Health Sciences/The Chicago Medical School, a private, nonprofit institution, for medical purposes, approximately 87 acres of real property, including the improvements thereon, on the grounds presently occupied by the Veterans' Administration Hospital in Downey, Illinois.

Section 2 of the bill contains adequate provisions to insure that the property will be used solely for the stated purpose by the University in such a manner as will not interfere with the care and treatment of patients at the Veterans' Administration Hospital, and further provides that the deed conveying such property shall contain such additional terms, conditions, reservations, easements, and restrictions as may be determined by the Administrator of Veterans' Affairs to be necessary to protect the interest of the United States.

Section 2 of the bill also contains provisions which are substantively different from those in H.R. 10253. Subsection (4) would provide that if a determination is made by the Administrator of Veterans' Affairs requiring a reversion of the land to the United States, he would have to determine the reasonable compensation for any improvements to the land made after the conveyance to the university and pay such compensation to the university. Only then would the title to such improvements vest in the United States. Subsection (5) would provide an opportunity for an agency hearing and for judicial review of any determination made by the Administrator with respect to any provisions contained in the deed of conveyance of the land to the university.

The acquisition of the property is intended to enable the University to relocate from the urban Chicago area and commence the construction of new medical facilities adjacent to the Veterans' Administration Hospital. It would effectuate a previously authorized affiliation with the medical school under Public Law 92-541.