[House Report 110-651]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-651
======================================================================
FEDERAL REAL PROPERTY DISPOSAL ENHANCEMENT ACT OF 2008
_______
May 15, 2008.--Committee to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Waxman, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 5787]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to whom was
referred the bill (H.R. 5787) to amend title 40, United States
Code, to enhance authorities with regard to real property that
has yet to be reported excess, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 5
Background and Need for Legislation.............................. 5
Legislative History.............................................. 6
Section-by-Section............................................... 6
Explanation of Amendments........................................ 6
Committee Consideration.......................................... 7
Rollcall Votes................................................... 7
Application of Law to the Legislative Branch..................... 7
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 7
Statement of General Performance Goals and Objectives............ 7
Constitutional Authority Statement............................... 7
Federal Advisory Committee Act................................... 8
Unfunded Mandates Statement...................................... 8
Earmark Identification........................................... 8
Budget Authority and Congressional Budget Office Cost Estimate... 8
Changes in Existing Law Made by the Bill, as Reported............ 10
Additional Views................................................. 17
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 ``Federal Real Property Disposal
Enhancement Act of 2008''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds the following:
(1) In January 2003, the Government Accountability Office identified
Federal real property as a high-risk area, citing excess property as a
long-standing problem.
(2) The magnitude of the problem with excess Federal real property
continues to put the government at risk for lost dollars and missed
opportunities.
(3) The Administration has stated its goal is to
reduce the size of the Federal real property inventory
by 5 percent, or $15 billion, by disposing of unneeded
assets by 2015.
(4) The Federal inventory includes many properties
that are no longer relevant to agencies' missions and
agencies are spending billions of dollars to maintain
these unneeded properties.
(5) The costs of preparing a property for transfer or
sale continue to hamper some agencies' efforts to
address their unneeded properties and serve as a
disincentive to disposal because, in the short-term, it
can be more beneficial economically to maintain a
property that is not being used than to dispose of it.
(6) Agencies should give greater attention to
right-sizing their real property portfolios.
(b) Purpose.--The purpose of this Act is to reduce the
Federal inventory of unneeded and costly property.
SEC. 3. DUTIES OF THE GENERAL SERVICES ADMINISTRATION AND EXECUTIVE
AGENCIES.
(a) In General.--Section 524 of title 40, United States Code,
is amended to read as follows:
``Sec. 524. Duties of the General Services Administration and executive
agencies
``(a) Duties of the General Services Administration.--
``(1) Guidance.--The Administrator shall issue
guidance for the development and implementation of
agency real property plans. Such guidance shall include
recommendations on--
``(A) how to identify excess properties;
``(B) how to evaluate the costs and benefits
involved with disposing of real property;
``(C) how to prioritize disposal decisions
based on agency missions and anticipated future
need for holdings; and
``(D) how best to dispose of those properties
identified as excess to the needs of the
agency.
``(2) Annual report.--The Administrator shall submit
an annual report, for each of the first 5 years after
2008, to the Committee on Oversight and Government
Reform of the House of Representatives and the
Committee on Homeland Security and Governmental Affairs
of the Senate, based on data submitted from all
executive agencies, detailing executive agency efforts
to reduce their real property assets.
``(3) Assistance.--The Administrator shall assist
executive agencies in the identification and disposal
of excess real property.
``(b) Duties of Executive Agencies.--
``(1) In general.--Each executive agency shall--
``(A) maintain adequate inventory controls
and accountability systems for property under
its control;
``(B) continuously survey property under its
control to identify excess property;
``(C) promptly report excess property to the
Administrator;
``(D) perform the care and handling of excess
property; and
``(E) transfer or dispose of excess property
as promptly as possible in accordance with
authority delegated and regulations prescribed
by the Administrator.
``(2) Specific requirements with respect to real
property.--With respect to real property, each
executive agency shall--
``(A) develop and implement a real property
plan in order to identify properties to declare
as excess using the guidance issued under
subsection (a)(1);
``(B) identify and categorize all real
property owned, leased, or otherwise managed by
the agency;
``(C) establish adequate goals and incentives
that lead the agency to reduce excess real
property in its inventory;
``(D) when appropriate, use the authorities
in section 572(a)(2)(B) of this title in order
to identify and prepare real property to be
reported as excess.
``(3) Additional requirements.--Each executive
agency, as far as practicable, shall--
``(A) reassign property to another activity
within the agency when the property is no
longer required for the purposes of the
appropriation used to make the purchase;
``(B) transfer excess property under its
control to other Federal agencies and to
organizations specified in section 321(c)(2) of
this title; and
``(C) obtain excess properties from other
Federal agencies to meet mission needs before
acquiring non-Federal property.''.
(b) Clerical Amendment.--The item relating to section 524 in
the table of sections at the beginning of chapter 5 of such
title is amended to read as follows:
``524. Duties of the General Services Administration and executive
agencies.''.
SEC. 4. ENHANCED AUTHORITIES WITH REGARD TO PREPARING PROPERTIES TO BE
REPORTED AS EXCESS.
Section 572(a)(2) of title 40, United States Code, is amended--
(1) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively; and
(2) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Additional authority.--(i) From the fund
described in paragraph (1), subject to clause (iv), the
Administrator may obligate an amount to pay the direct
and indirect costs related to identifying and preparing
properties to be reported excess by another agency.
``(ii) The General Services Administration may be
reimbursed from the proceeds of the sale of such
properties for such costs.
``(iii) Net proceeds shall be dispersed pursuant to
section 571 of this title.
``(iv) The authority under clause (i) to obligate
funds to prepare properties to be reported excess does
not include the authority to convey such properties by
sale, lease, exchange, or otherwise, including through
leaseback arrangements.
``(v) Nothing in this subparagraph is intended to
affect subparagraph (D).''.
SEC. 5. ENHANCED AUTHORITIES WITH REGARD TO REVERTED REAL PROPERTY.
(a) Authority to Pay Expenses Related to Reverted Real Property.--
Section 572(a)(2)(A) of title 40, United States Code, is amended by
adding at the end the following:
``(iv) The direct and indirect costs
associated with the reversion, custody, and
disposal of reverted real property.''.
(b) Requirements Related to Sales of Reverted Property Under Section
550.--Section 550(b)(1) of title 40, United States Code, is amended--
(1) by inserting ``(A)'' after ``(1) In general.--''; and
(2) by adding at the end the following: ``If the official, in
consultation with the Administrator, recommends reversion of
the property, the Administrator shall take control of such
property, and, subject to subparagraph (B), sell it at fair
market value for cash and not by lease, exchange, or leaseback
arrangements.
``(B) Prior to sale, the Administrator shall make such
property available to State and local governments and certain
non-profit institutions or organizations pursuant to this
section and sections 553 and 554 of this title.''.
(c) Requirements Related to Sales of Reverted Property Under Section
553.--Section 553(e) of title 40, United States Code, is amended--
(1) by inserting ``(1)'' after ``This Section.--''; and
(2) by adding at the end the following: ``If the
Administrator determines that reversion of the property is
necessary to enforce compliance with the terms of the
conveyance, the Administrator shall take control of such
property and, subject to paragraph (2), sell it at fair market
value for cash and not by lease, exchange, or leaseback
arrangements.
``(2) Prior to sale, the Administrator shall make such property
available to State and local governments and certain non-profit
institutions or organizations pursuant to this section and sections 550
and 554 of this title.''.
(d) Requirements Related to Sales of Reverted Property Under Section
554.--Section 554(f) of title 40, United States Code, is amended--
(1) by inserting ``(1)'' after ``This Section.--''; and
(2) by adding at the end the following: ``If the Secretary,
in consultation with the Administrator, recommends reversion of
the property, the Administrator shall take control of such
property and, subject to paragraph (2), sell it at fair market
value for cash and not by lease, exchange, or leaseback
arrangements.
``(2) Prior to sale, the Administrator shall make such property
available to State and local governments and certain non-profit
institutions or organizations pursuant to this section and sections 550
and 553 of this title.''.
SEC. 6. AGENCY RETENTION OF PROCEEDS.
The text of section 571 of title 40, United States Code, is amended
to read as follows:
``(a) Deposit of Proceeds.--Proceeds described in subsection (d)
shall be deposited into the appropriate real property account of the
agency that had custody and accountability for the real property. Such
funds shall be expended only as authorized in annual appropriations
Acts and only for activities as described in section 524(b) of this
title and disposal activities, including paying costs incurred by the
General Services Administration for any disposal-related activity
authorized by this title. Proceeds shall not be expended for activities
or projects subject to the requirements of section 3307 of this title.
``(b) Effect on Other Sections.--Nothing in this section is intended
to affect section 572(b) or 574 of this title.
``(c) Disposal Agency for Reverted Property.--For the purposes of
this section, the General Services Administration, as the disposal
agency, shall be treated as the agency with custody and accountability
for properties which revert to the United States under sections 550,
553, and 554 of this title.
``(d) Proceeds.--The proceeds referred to in subsection (a) are
proceeds under this chapter from a--
``(1) transfer of excess property to a federal agency for
agency use; or
``(2) sale, lease, or other disposition of surplus
property.''.
Purpose and Summary
H.R. 5787, the Federal Real Property Disposal Act, was
introduced by Reps. Dennis Moore and John J. Duncan, Jr., on
April 14, 2008. The bill allows all agencies to retain net
proceeds from the sale of surplus property, authorizes the
General Services Administration (GSA) to assist agencies in
preparing properties to be reported excess, and provides
additional authority to GSA to dispose of property that has
reverted back to the federal government from previous sales.
Background and Need for Legislation
Under existing law, funds from the sale of surplus real and
related personal property by GSA are placed in a fund within
the Treasury. From this fund, the Administrator for General
Services deducts payments for some of the costs associated with
selling the property, including appraisal, auctioning,
surveying, advertising, and environmental inspection. In a
fiscal year, these costs cannot exceed 12% of the proceeds from
the sales of the property.\1\
---------------------------------------------------------------------------
\1\40 U.S.C. Sec. 572(a). Section 572(b) governs real property
under the control of a military department, which follows different
procedures.
---------------------------------------------------------------------------
The agencies controlling the property must pay the costs of
actually preparing the property for sale, including
environmental cleanup, demolition, and historical preservation.
General Accounting Office has reported that these costs
discourage agencies from disposing of surplus property.\2\ The
Office of Management and Budget (OMB) agrees with this
assessment. In testimony before the Subcommittee on Government
Management, Organization, and Procurement, Deputy Comptroller
Daniel Werfel stated:
---------------------------------------------------------------------------
\2\U.S. Government Accountability Office, Statement of Mark L.
Goldstein, Director, Physical Infrastructure, Federal Real Property: An
Update on High-Risk Issues (May 24, 2007) (GAO-07-895T).
Many agencies do not have authority to retain
proceeds from the sale of real property assets, nor do
they receive reimbursement for cost incurred to sell a
property, such as advertising and cleanup.
Consequently, agencies often lack the resources needed
to sell or dispose of properties and are unable to
avoid annual costs that are incurred when properties
are maintained past their point of usefulness. Allowing
agencies to be reimbursed for selling costs and to
retain sale proceeds would provide agencies with the
funds necessary to cover upfront costs associated with
---------------------------------------------------------------------------
disposing of unneeded assets.\3\
\3\Subcommittee on Government Management, Organization, and
Procurement, Testimony of Acting Comptroller Daniel Werfel, Hearing on
Pending Legislation, 110th Cong. (Apr. 15, 2008).
---------------------------------------------------------------------------
According to OMB, federal agencies ``reported 18,393 excess
assets with a replacement value of approximately $13.8 billion.
Agencies also reported 3,409 assets as surplus with a
replacement value of approximately $3.9 billion.''\4\
---------------------------------------------------------------------------
\4\Executive Office of the President, Office of Management and
Budget, Response to Sectio 408 of Public Law 109-396 (June 15, 2007)
(originally cited in Congressional Research Service, Surplus Federal
Property (Nov. 14, 2007)).
---------------------------------------------------------------------------
H.R. 5787, the Federal Real Property Disposal Enhancement
Act, allows agencies to retain all of the proceeds from the
sale of surplus property instead of depositing them in the
Treasury. The agencies may only use these funds for real
property disposal activities, subject to appropriations. The
bill also allows GSA to use its funds to prepare properties to
be reported excess. The bill does not make any changes to
existing authorities to transfer unused property to other
federal agencies or make surplus property available to other
entities for designated public uses.
Legislative History
H.R. 5787, the Federal Real Property Disposal Act, was
introduced by Reps. Dennis Moore and John J. Duncan, Jr., on
April 14, 2008, and was referred to the Committee on Oversight
and Government Reform.
The Subcommittee on Government Management, Organization,
and Procurement held a hearing on H.R. 5787 on April 15, 2008.
The witnesses were Daniel Werfel, Acting Comptroller, Federal
Financial Management, Office of Management and Budget; and Stan
Kaczmarczyk, Acting Deputy Associate Administrator, Office of
Governmentwide Policy, General Services Administration.
The Committee held a business meeting to consider H.R. 5787
on May 1, 2008, and ordered the bill, as amended, to be
favorably reported by voice vote.
Section-by-Section
Section 1: Short title
The short title of the bill is the Federal Real Property
Disposal Enhancement Act of 2008.
Section 2: Enhanced authorities with regard to preparing properties to
be reported as excess
This section authorizes the Administrator of GSA to
obligate funds to pay the direct and indirect costs of
preparing properties controlled by other federal agencies to be
declared excess. It also allows GSA to be reimbursed for such
costs from the proceeds of the sale of the property.
Section 3: Enhanced authorities with regard to reverted real property
This section modifies provisions of existing law to make
clear that when a property has been transferred to a nonprofit
organization or a state or local government for a public
purpose, and that public purpose is no longer being met, the
property must revert to the federal government, which must
dispose of it.
Sec. 4: Agency retention of proceeds
This section permits federal agencies to retain the
proceeds from the sale of federal surplus properties. These
proceeds will be used for disposal activities such as
developing and implementing a plan to identify and declare
properties excess, appraisals, utilization studies, and
lifecycle planning. These proceeds will not be used for any
project subject to section 3307 of title 40.
Explanation of Amendments
Three amendments to the bill were offered during the
Committee's consideration of the bill. Rep. Waxman offered an
amendment in the nature of a substitute to the bill that added
findings and purposes to the bill. It also added a requirement
that the Administrator issue guidance for the development and
implementation of agency real property plans and for agencies
to maintain adequate inventory controls for property, promptly
report excess property to the Administrator, and develop real
property plans. The amendment was adopted by the Committee.
Rep. Davis offered two amendments to the bill, neither of
which was adopted. The first would have established a pilot
program at OMB for an expedited property disposal process. The
second, which was offered and withdrawn, would have permitted
GSA to use its funds to renovate property it is currently using
to make changes to meet needs of the Department of Defense, and
to transfer that property to the Department of Defense.
Committee Consideration
On Thursday, May 1, 2008, the Committee met in open session
and favorably ordered H.R. 5787 to be reported, as amended, to
the House by a voice vote.
Rollcall Votes
No rollcall votes were held.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to terms and conditions of
employment or access to public services and accommodations. The
bill does not relate to employment or access to public services
and accommodations.
Statement of Oversight Findings and Recommendations of the Committee
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 including the finding that unneeded buildings are
in the federal inventory.
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, including improving the efficient disposal of
surplus federal property.
Constitutional Authority Statement
Under clause 3(d)(1) of rule XIII of the Rules of the House
of Representatives, the Committee must include a statement
citing the specific powers granted to Congress to enact the law
proposed by H.R. 5787. Article I, Section 8, Clause 18 of the
Constitution of the United States grants the Congress the power
to enact this law.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., Section 5(b).
Unfunded Mandates Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement on
whether the provisions of the report include unfunded mandates.
In compliance with this requirement the Committee has received
a letter from the Congressional Budget Office included herein.
Earmark Identification
H.R. 5787 does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e), or 9(f) of rule XXI.
Committee Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 5787. However, clause 3(d)(3)(B) of that rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for H.R. 5787 from the Director of
the Congressional Budget Office:
May 8, 2008.
Hon. Henry A. Waxman,
Chairman, Committee on Oversight and Government Reform, House of
Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5787, the Federal
Real Property Disposal Enhancement Act of 2008.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Peter R. Orszag.
Enclosure.
H.R. 5787--Federal Real Property Disposal Enhancement Act of 2008
Summary: H.R. 5787 would amend the Federal Property and
Administrative Services Act (Property Act) to give the General
Services Administration (GSA) new authorities to help
facilitate the disposal of federal property. CBO estimates that
enacting the bill would reduce net direct spending by $15
million over the 2009-2018 period. The bill would not affect
revenues.
H.R. 5787 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 5787 is shown in the following table.
The costs of this legislation fall within budget function 800
(general government).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009-2013 2009-2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
DIRECT SPENDING
Estimated Budget Authority........................ * -1 -1 -1 -2 -2 -2 -2 -2 -2 -5 -15
Estimated Outlays................................. * -1 -1 -1 -2 -2 -2 -2 -2 -2 -5 -15
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.
Basis of estimate: Enacting H.R. 5787 would increase both
direct spending and offsetting receipts (a credit against
direct spending) by making it easier for federal agencies to
dispose of federal property. For this estimate, CBO assumes
that the bill will be enacted near the end of 2008.
Property disposal under current law
Under the Property Act, GSA manages the disposal of surplus
federal property for most agencies. That act requires GSA to
first offer excess property to other federal agencies, then, at
discounts of up to 100 percent, to state or local governments
and nonprofit organizations before selling the property through
a competitive bidding process. The act also allows GSA to
retain 12 percent of the proceeds from such sales to cover its
direct costs, such as auction fees and appraisals. (In fiscal
year 2007, GSA used about $4 million for those purposes.) The
remaining net proceeds (currently about $20 million per year)
are deposited in the Treasury as offsetting receipts.
The current federal property program generates only modest
proceeds for several reasons. First, much of the surplus
property disposed of under current law is conveyed without
reimbursement (under authorities such as homeless conveyances).
Second, property sales, and thus receipts, are limited because
many federal agencies lack appropriated funds to initiate the
disposal process. In addition, some agencies have little
incentive to maximize the income they receive from property
sales because they cannot retain any of those receipts to
expedite such transactions or for other activities. (Some
agencies, however, can retain the proceeds of enhanced-use
leases for property improvements.)
Property disposal under H.R. 5787
H.R. 5787 would address some of the problems with the
current disposal process for federal property by allowing GSA
to retain and use additional proceeds from property sales to
help pay for the direct and indirect costs of other agencies'
disposal activities. Activities include additional market
research, cost/benefit analyses, and other activities to
identify and prepare properties for disposal that have not yet
been declared excess. Net proceeds from sales under the bill
would be available, subject to future appropriation, for other
property management activities.
Estimated impact on the Federal Government: Based on
information from GSA and some landholding agencies, CBO
estimates that enacting H.R. 5787 would increase direct
spending, beginning in 2009, by about $2 million annually as
GSA uses proceeds from existing property sales to help other
agencies identify and prepare new properties for disposal.
Additional receipts would be generated as those new properties
are sold, and those receipts (estimated to total about $4
million annually) would eventually offset the additional costs.
Because proceeds from the new sales would lag spending by
several months, the net impact of the bill in 2009 would be
negligible. CBO estimates that offsetting receipts earned from
additional sales under the legislation would total about $35
million over the 2009-2018 period, additional spending would
total an estimated $20 million.
CBO expects that GSA would work with agencies using the new
authorities provided in this bill to make more properties
available for disposal than they could under existing law. The
impact would be modest, however, because we assume that many of
the largest federal agencies that manage significant numbers of
properties would likely opt to continue using their
enhanced-use leasing authorities rather than GSA's services to
leverage value from underused real property. In addition, any
new properties that would be made available for disposal under
the bill would still have to be evaluated for possible public
benefit conveyances--for shelter for the homeless, or for
educational or recreational uses--before those properties could
be offered for sale. Consequently, CBO expects that the number
of properties sold for cash under this bill would be relatively
small.
Intergovernmental and private-sector impact: H.R. 5787
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments. The bill would benefit state, local, and
tribal governments by requiring federal agencies to make
additional property available to those entities before they
offer it for sale.
Estimate prepared by: Federal costs: Matthew Pickford;
impact on state, local, and tribal governments: Elizabeth Cove;
impact on the private sector: Paige Piper/Bach.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
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 40, UNITED STATES CODE
* * * * * * *
CHAPTER 5--PROPERTY MANAGEMENT
SUBCHAPTER I--PROCUREMENT AND WAREHOUSING
Sec.
501. Services for executive agencies.
* * * * * * *
[524. Duties of executive agencies.]
524. Duties of the General Services Administration and executive
agencies.
* * * * * * *
SUBCHAPTER II--USE OF PROPERTY
* * * * * * *
[Sec. 524. Duties of executive agencies
[(a) Required.--Each executive agency shall--
[(1) maintain adequate inventory controls and
accountability systems for property under its control;
[(2) continuously survey property under its control
to identify excess property;
[(3) promptly report excess property to the
Administrator of General Services;
[(4) perform the care and handling of excess
property; and
[(5) transfer or dispose of excess property as
promptly as possible in accordance with authority
delegated and regulations prescribed by the
Administrator.
[(b) Required as Far as Practicable.--Each executive agency,
as far as practicable, shall--
[(1) reassign property to another activity within the
agency when the property is no longer required for the
purposes of the appropriation used to make the
purchase;
[(2) transfer excess property under its control to
other federal agencies and to organizations specified
in section 321(c)(2) of this title; and
[(3) obtain excess property from other federal
agencies.]
Sec. 524. Duties of the General Services Administration and executive
agencies
(a) Duties of the General Services Administration.--
(1) Guidance.--The Administrator shall issue guidance
for the development and implementation of agency real
property plans. Such guidance shall include
recommendations on--
(A) how to identify excess properties;
(B) how to evaluate the costs and benefits
involved with disposing of real property;
(C) how to prioritize disposal decisions
based on agency missions and anticipated future
need for holdings; and
(D) how best to dispose of those properties
identified as excess to the needs of the
agency.
(2) Annual report.--The Administrator shall submit an
annual report, for each of the first 5 years after
2008, to the Committee on Oversight and Government
Reform of the House of Representatives and the
Committee on Homeland Security and Governmental Affairs
of the Senate, based on data submitted from all
executive agencies, detailing executive agency efforts
to reduce their real property assets.
(3) Assistance.--The Administrator shall assist
executive agencies in the identification and disposal
of excess real property.
(b) Duties of Executive Agencies.--
(1) In general.--Each executive agency shall--
(A) maintain adequate inventory controls and
accountability systems for property under its
control;
(B) continuously survey property under its
control to identify excess property;
(C) promptly report excess property to the
Administrator;
(D) perform the care and handling of excess
property; and
(E) transfer or dispose of excess property as
promptly as possible in accordance with
authority delegated and regulations prescribed
by the Administrator.
(2) Specific requirements with respect to real
property.--With respect to real property, each
executive agency shall--
(A) develop and implement a real property
plan in order to identify properties to declare
as excess using the guidance issued under
subsection (a)(1);
(B) identify and categorize all real property
owned, leased, or otherwise managed by the
agency;
(C) establish adequate goals and incentives
that lead the agency to reduce excess real
property in its inventory;
(D) when appropriate, use the authorities in
section 572(a)(2)(B) of this title in order to
identify and prepare real property to be
reported as excess.
(3) Additional requirements.--Each executive agency,
as far as practicable, shall--
(A) reassign property to another activity
within the agency when the property is no
longer required for the purposes of the
appropriation used to make the purchase;
(B) transfer excess property under its
control to other Federal agencies and to
organizations specified in section 321(c)(2) of
this title; and
(C) obtain excess properties from other
Federal agencies to meet mission needs before
acquiring non-Federal property.
* * * * * * *
SUBCHAPTER III--DISPOSING OF PROPERTY
* * * * * * *
Sec. 550. Disposal of real property for certain purposes
(a) * * *
(b) Enforcement and Revision of Instruments Transferring
Property Under This Section.--
(1) In general.--(A) Subject to disapproval by the
Administrator of General Services within 30 days after
notice of a proposed action to be taken under this
section, except for personal property transferred
pursuant to section 549 of this title, the official
specified in paragraph (2) shall determine and enforce
compliance with the terms, conditions, reservations,
and restrictions contained in an instrument by which a
transfer under this section is made. The official shall
reform, correct, or amend the instrument if necessary
to correct the instrument or to conform the transfer to
the requirements of law. The official shall grant a
release from any term, condition, reservation or
restriction contained in the instrument, and shall
convey, quitclaim, or release to the transferee (or
other eligible user) any right or interest reserved to
the Federal Government by the instrument, if the
official determines that the property no longer serves
the purpose for which it was transferred or that a
release, conveyance, or quitclaim deed will not prevent
accomplishment of that purpose. The release,
conveyance, or quitclaim deed may be made subject to
terms and conditions that the official considers
necessary to protect or advance the interests of the
Government. If the official, in consultation with the
Administrator, recommends reversion of the property,
the Administrator shall take control of such property,
and, subject to subparagraph (B), sell it at fair
market value for cash and not by lease, exchange, or
leaseback arrangements.
(B) Prior to sale, the Administrator shall make such
property available to State and local governments and
certain non-profit institutions or organizations
pursuant to this section and sections 553 and 554 of
this title.
* * * * * * *
Sec. 553. Property for correctional facility, law enforcement, and
emergency management response purposes
(a) * * *
* * * * * * *
(e) Enforcement and Revision of Instruments Transferring
Property Under This Section.--(1) The Administrator shall
determine and enforce compliance with the terms, conditions,
reservations, and restrictions contained in an instrument by
which a transfer or conveyance under this section is made. The
Administrator shall reform, correct, or amend the instrument if
necessary to correct the instrument or to conform the transfer
to the requirements of law. The Administrator shall grant a
release from any term, condition, reservation or restriction
contained in the instrument, and shall convey, quitclaim, or
release to the transferee (or other eligible user) any right or
interest reserved to the Government by the instrument, if the
Administrator determines that the property no longer serves the
purpose for which it was transferred or that a release,
conveyance, or quitclaim deed will not prevent accomplishment
of that purpose. The release, conveyance, or quitclaim deed may
be made subject to terms and conditions that the Administrator
considers necessary to protect or advance the interests of the
Government. If the Administrator determines that reversion of
the property is necessary to enforce compliance with the terms
of the conveyance, the Administrator shall take control of such
property and, subject to paragraph (2), sell it at fair market
value for cash and not by lease, exchange, or leaseback
arrangements.
(2) Prior to sale, the Administrator shall make such property
available to State and local governments and certain non-profit
institutions or organizations pursuant to this section and
sections 550 and 554 of this title.
Sec. 554. Property for development or operation of a port facility
(a) * * *
* * * * * * *
(f) Enforcement and Revision of Instruments Transferring
Property Under This Section.--(1) The Secretary of
Transportation shall determine and enforce compliance with the
terms, conditions, reservations, and restrictions contained in
an instrument by which a transfer or conveyance under this
section is made. The Secretary shall reform, correct, or amend
the instrument if necessary to correct the instrument or to
conform the transfer to the requirements of law. The Secretary
shall grant a release from any term, condition, reservation or
restriction contained in the instrument, and shall convey,
quitclaim, or release to the grantee any right or interest
reserved to the Government by the instrument, if the Secretary
determines that the property no longer serves the purpose for
which it was transferred or that a release, conveyance, or
quitclaim deed will not prevent accomplishment of that purpose.
The release, conveyance, or quitclaim deed may be made subject
to terms and conditions that the Secretary considers necessary
to protect or advance the interests of the Government. If the
Secretary, in consultation with the Administrator, recommends
reversion of the property, the Administrator shall take control
of such property and, subject to paragraph (2), sell it at fair
market value for cash and not by lease, exchange, or leaseback
arrangements.
(2) Prior to sale, the Administrator shall make such property
available to State and local governments and certain non-profit
institutions or organizations pursuant to this section and
sections 550 and 553 of this title.
* * * * * * *
SUBCHAPTER IV--PROCEEDS FROM SALE OR TRANSFER
Sec. 571. General rules for deposit and use of proceeds
[(a) Deposit in Treasury as Miscellaneous Receipts.--
[(1) In general.--Except as otherwise provided in
this subchapter, proceeds described in paragraph (2)
shall be deposited in the Treasury as miscellaneous
receipts.
[(2) Proceeds.--The proceeds referred to in paragraph
(1) are proceeds under this chapter from a--
[(A) transfer of excess property to a federal
agency for agency use; or
[(B) sale, lease, or other disposition of
surplus property.
[(b) Payment of Expenses of Sale Before Deposit.--Subject to
regulations under this subtitle, the expenses of the sale of
old material, condemned stores, supplies, or other public
property may be paid from the proceeds of sale so that only the
net proceeds are deposited in the Treasury. This subsection
applies whether proceeds are deposited as miscellaneous
receipts or to the credit of an appropriation as authorized by
law.]
(a) Deposit of Proceeds.--Proceeds described in subsection
(d) shall be deposited into the appropriate real property
account of the agency that had custody and accountability for
the real property. Such funds shall be expended only as
authorized in annual appropriations Acts and only for
activities as described in section 524(b) of this title and
disposal activities, including paying costs incurred by the
General Services Administration for any disposal-related
activity authorized by this title. Proceeds shall not be
expended for activities or projects subject to the requirements
of section 3307 of this title.
(b) Effect on Other Sections.--Nothing in this section is
intended to affect section 572(b) or 574 of this title.
(c) Disposal Agency for Reverted Property.--For the purposes
of this section, the General Services Administration, as the
disposal agency, shall be treated as the agency with custody
and accountability for properties which revert to the United
States under sections 550, 553, and 554 of this title.
(d) Proceeds.--The proceeds referred to in subsection (a) are
proceeds under this chapter from a--
(1) transfer of excess property to a federal agency
for agency use; or
(2) sale, lease, or other disposition of surplus
property.
Sec. 572. Real property
(a) In General.--
(1) * * *
(2) Payment of expenses from the fund.--
(A) Authority.--From the fund described in
paragraph (1), the Administrator may obligate
an amount to pay the following direct expenses
incurred for the use of excess property and the
disposal of surplus property under this
subtitle:
(i) * * *
* * * * * * *
(iv) The direct and indirect costs
associated with the reversion, custody,
and disposal of reverted real property.
(B) Additional authority.--(i) From the fund
described in paragraph (1), subject to clause
(iv), the Administrator may obligate an amount
to pay the direct and indirect costs related to
identifying and preparing properties to be
reported excess by another agency.
(ii) The General Services Administration may
be reimbursed from the proceeds of the sale of
such properties for such costs.
(iii) Net proceeds shall be dispersed
pursuant to section 571 of this title.
(iv) The authority under clause (i) to
obligate funds to prepare properties to be
reported excess does not include the authority
to convey such properties by sale, lease,
exchange, or otherwise, including through
leaseback arrangements.
(v) Nothing in this subparagraph is intended
to affect subparagraph (D).
[(B)] (C) Limitations.--
(i) * * *
* * * * * * *
[(C)] (D) Direct payment or reimbursement.--
An amount obligated under this paragraph may be
used to pay an expense directly or to reimburse
a fund or appropriation that initially paid the
expense.
* * * * * * *
ADDITIONAL VIEWS OF RANKING MEMBER TOM DAVIS
The federal government is the largest landholder in the
country. As such, it is essential for the federal government to
manage its properties as efficiently and effectively as
possible.
More importantly, property which is no longer of use to the
federal government should be removed from the inventory.
Unfortunately over the years, federal property disposal
processes have become increasingly cumbersome and unwieldy, and
agencies often decide it's easier to sit on a property than try
to get rid of it.
In fact, OMB estimates a backlog of more than 21,000 in
properties in need of maintenance and repair, carrying a price
tag of more than $18 billion.
When I chaired this Committee I spent a considerable amount
of time working to reform the federal real property disposal
system. The proposals we put forth--which were approved by this
Committee--were substantive proposals aimed at providing real
reform.
While I appreciate Representative Moore's efforts in this
legislation, I am concerned this proposal does not go far
enough in reforming our federal property laws.
I offered two amendments during Committee consideration of
this legislation, neither of which was included in the reported
version of the bill.
The first amendment would have added to Representative
Moore's proposal the Federal Real Property Disposal Pilot
Program which this Committee approved by unanimous consent in
2005.
The second amendment I offered would have given GSA some
additional authority with regard to underutilized federal
properties which could be better put to use by the Department
of Defense to help local communities who are trying to absorb
an increase in federal presence resulting from a BRAC-related
realignment.
I believe both of these amendments would have strengthened
the underlying proposal and I look forward to working with the
majority to include these provisions as the legislation moves
forward.
Tom Davis.