Introductory Statement for H.R. 4768, Veterans Medical Facilities Management Act of 2004

INTRODUCTORY STATEMENT FOR H.R. 4768, VETERANS MEDICAL FACILITIES MANAGEMENT ACT OF 2004 -- (Extensions of Remarks - July 08, 2004)

SPEECH OF
HON. ROB SIMMONS
OF CONNECTICUT
IN THE HOUSE OF REPRESENTATIVES
WEDNESDAY, JULY 7, 2004

Mr. SIMMONS. Mr. Speaker, I am introducing H.R. 4768, the Veterans Medical Facilities Management Act of 2004. This legislation will help address needs in the Department of Veterans Affairs (VA) to modernize health care facilities, make better use of VA's existing portfolio of properties and dispose of unneeded properties over the next several years.

In legislation I introduced last year that was included in Public Law (P.L.) 108-170, the Veterans Health Care, Capital Asset, and Business Improvement Act of 2003, a three-year program of delegated authorizations was established to allow the Secretary to update, improve, establish, restore or replace major VA health care facilities. Congress delegated authority to the Secretary to approve individual facility projects based on recommendations of an independent capital investments board and on criteria that places a premium on projects to protect patient safety and privacy; improve seismic protection; provide barrier-free accommodations; and improve VA patient care facilities in specialized areas of concern.

Many VA community based clinics operate in leased facilities. P.L. 108-170 did not provide the Secretary any new authority concerning execution of major medical facility leases. The Department has identified the need for authorization or renewal of major medical facility leases under title 38, United States Code, section 8104(a)(2) at a cost of approximately $24 million in fiscal year 2005. This legislation would authorize leases in the Department's recommended locations as follows:

This bill would also provide that the Department may enter into a long-term lease of up to 75 years for land to construct a new medical facility on the Fitzsimons Campus of the University of Colorado, in Aurora, Colorado. It is anticipated that this new VA facility will be a significant shared facility with the University. The extended lease authority will enable all parties to the relationship to obtain a higher level of confidence in planning and constructing an important health care facility for veterans throughout the intermountain west.

Mr. Speaker, this legislation would facilitate the Secretary's authority to transfer unneeded real property currently in VA's portfolio and under the exclusive jurisdiction of the Secretary. The bill would require fair market value for any such transfers, except when transferred to a provider of homeless veterans services receiving a grant under section 2011 of title 38, United States Code.

This bill would also repeal the defunct Nursing Home Revolving Fund, in section 8116 of title 38, United States Code. It would establish a new fund to be known as the Capital Asset Fund, to help defray VA's cost of transferring real property, including demolition, environmental restoration, maintenance, repair, historic preservation and administrative expenses.

VA controls the fourth-largest inventory of owned, leased, and operated federal real property. It is estimated that more than half of VA's facilities are over 50 years old. Many date from the 19th century and many more were constructed in the late 1940s and early 1950s. A large number of properties are listed on the National Register of Historic Places.
Given this rich array of heritage assets, H.R. 4768 would also allow the Secretary to enter into partnerships or agreements with public or private entities dedicated to historic preservation and to use resources from the Capital Asset Fund to facilitate the transfer, leasing or adaptive use of these properties. The bill requires a series of reports, beginning with a complete inventory of historic properties, followed up with an annual update of the status of each property for
two subsequent reporting cycles.

The bill would require in the Department's annual budget submission inclusion of information on each proposed and completed transfer. The Department also would report to Congress the annual deposits and expenditures from the Fund.

This bill includes a provision to permit the construction of surface parking when incidental to an authorized major medical facility construction project. Also, the bill would provide the Secretary additional flexibility in using funds to develop advanced planning for major construction projects previously authorized by law.

VA major medical facility projects are already exempt under section 8166(a) of title 38, United States Code, from State and local laws relating to building codes, permits, and inspections unless the Secretary consents to participate in such state and local regulation. The bill would exempt VA from State and local land use (zoning) laws.

Mr. Speaker, I trust that my colleagues will agree with me that this is a bill worthy of their support. I strongly urge my colleagues to support this bill and help enact it as a high priority to assist the Department of Veterans Affairs with its capital asset needs.