[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3134 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 3134

  To amend title 40, United States Code, to require the Federal Real 
   Property Council to carry out a pilot program for the expeditious 
  disposal of underutilized Federal real property, and to improve the 
            economy and efficiency of Federal real property.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 30, 2005

 Mr. Tom Davis of Virginia (for himself and Mr. Nussle) introduced the 
   following bill; which was referred to the Committee on Government 
                                 Reform

_______________________________________________________________________

                                 A BILL


 
  To amend title 40, United States Code, to require the Federal Real 
   Property Council to carry out a pilot program for the expeditious 
  disposal of underutilized Federal real property, and to improve the 
            economy and efficiency of Federal real property.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Real Property Disposal Pilot 
Program and Management Improvement Act of 2005''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
 TITLE I--PILOT PROGRAM FOR EXPEDITED DISPOSAL OF FEDERAL REAL PROPERTY

Sec. 101. Federal Real Property Disposal Pilot Program.
   TITLE II--IMPROVEMENTS TO ECONOMY AND EFFICIENCY OF FEDERAL REAL 
                                PROPERTY

Sec. 201. Improvements to Federal real property management.
                     TITLE III--GENERAL PROVISIONS

Sec. 301. Definition of underutilized real property.

 TITLE I--PILOT PROGRAM FOR EXPEDITED DISPOSAL OF FEDERAL REAL PROPERTY

SEC. 101. FEDERAL REAL PROPERTY DISPOSAL PILOT PROGRAM.

    (a) In General.--Chapter 5 of subtitle I of title 40, United States 
Code, is amended by adding at the end the following new subchapter:

         ``SUBCHAPTER VII--EXPEDITED DISPOSAL OF REAL PROPERTY

``Sec. 621. Requirement for pilot program
    ``(a) In General.--The Federal Real Property Council shall conduct 
a pilot program, to be known as the `Federal Real Property Disposal 
Pilot Program', under which excess property, surplus property, or 
underutilized real property shall be disposed of in accordance with 
this subchapter.
``Sec. 622. Selection of real properties
    ``The Federal Real Property Council shall select at least 10 real 
properties per year owned by executive agencies for participation in 
the pilot program.
``Sec. 623. Expedited disposal requirements
    ``(a) Requirement to Conduct Expedited Disposals.--
            ``(1) In general.--Under the pilot program, the Federal 
        Real Property Council shall direct executive agencies to 
        conduct expedited disposals of the real properties selected 
        pursuant to section 622 of this title.
            ``(2) Expedited disposal defined.--For purposes of the 
        pilot program, an expedited disposal of a real property is a 
        sale of real property for cash that is conducted pursuant to 
        the requirements of section 545 of this title and that is not 
        subject to--
                    ``(A) sections 550 and 553 of this title; or
                    ``(B) section 501 of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11411).
    ``(b) Fair Market Value.--A real property may be sold under the 
pilot program only if the Federal Government receives not less than 90 
percent of the fair market value for the sale, determined in accordance 
with a method identified by the Council.
    ``(c) Monetary Proceeds; Prohibition on Transactions Other Than 
Sales for Cash.--A real property may be sold under the pilot program 
only if the property will generate monetary proceeds to the Federal 
Government. A disposal of real property under the pilot program may not 
include any exchange, trade, transfer, acquisition of like-kind 
property, or other non-cash transaction as part of the disposal.
``Sec. 624. Special rules for deposit and use of proceeds from 
              expedited disposals
    ``(a) Distribution Requirements.--With respect to the disposal of a 
real property under the pilot program, the monetary proceeds from the 
disposal shall be distributed as follows:
            ``(1) 80 percent shall be deposited into the Treasury as 
        miscellaneous receipts.
            ``(2) 10 percent shall be deposited into an account in the 
        Treasury for use for any program or purpose previously 
        authorized by law by any executive agency determined by the 
        Federal Real Property Council to be affected by the disposal, 
        to remain available until expended without further 
        appropriation or authorization.
            ``(3) 5 percent shall be deposited into an account in the 
        Treasury for use by the Federal Real Property Council to 
        disburse to local taxing jurisdictions affected by the 
        disposal. Funds not disbursed within 90 days after the disposal 
        of the property shall be deposited into the Treasury as 
        miscellaneous receipts.
            ``(4) 5 percent shall be deposited into an account in the 
        Treasury for use by the Federal Real Property Council for such 
        purposes as the Council considers appropriate, including for 
        further study and other costs associated with the disposition 
        of real properties.
    ``(b) Limitation.--Proceeds from the disposal of a real property 
under the pilot program shall not be subject to subchapter IV of this 
chapter.
``Sec. 625. Administrative provisions
    ``(a) Use of Agency Funds for Costs of Disposals.--Subject to 
subsection (b), an executive agency may use any amounts otherwise 
available to the agency for paying the costs to the agency of disposing 
of real property under the pilot program, including the costs of any of 
the following:
            ``(1) Site remediation, restoration, or other environmental 
        services.
            ``(2) Relocation of affected tenants and other occupants.
            ``(3) Advertising and marketing.
            ``(4) Community outreach.
            ``(5) Surveying.
            ``(6) Appraisal.
            ``(7) Brokerage.
            ``(8) Historic preservation services.
            ``(9) Title insurance.
            ``(10) Due diligence.
            ``(11) Document notarization and recording services.
            ``(12) Prepayment of up to one year's assessed property 
        taxes.
            ``(13) Any other costs, whether direct or indirect, 
        associated with the sale of the property.
    ``(b) Limitation on Amount Used for Costs of Disposals.--With 
respect to the disposal of a real property by an executive agency, the 
agency may not use amounts, as authorized under subsection (a), for 
costs associated with the disposal of the property in any amount 
exceeding 25 percent of the fair market value of the property.
``Sec. 626. Termination of pilot program
    ``The Federal Real Property Disposal Pilot Program shall terminate 
5 years after the date of the enactment of this subchapter.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of subtitle I of title 40, United States Code, is amended by 
inserting after the item relating to section 611 the following:
         ``subchapter vii--expedited disposal of real property
``Sec. 621. Requirement for pilot program.
``Sec. 622. Selection of real properties.
``Sec. 623. Expedited disposal requirements.
``Sec. 624. Special rules for deposit and use of proceeds from 
                            expedited disposals.
``Sec. 625. Administrative provisions.
``Sec. 626. Termination of pilot program.''.

   TITLE II--IMPROVEMENTS TO ECONOMY AND EFFICIENCY OF FEDERAL REAL 
                                PROPERTY

SEC. 201. IMPROVEMENTS TO FEDERAL REAL PROPERTY MANAGEMENT.

    (a) In General.--Chapter 5 of subtitle I of title 40, United States 
Code, is amended by adding at the end the following new subchapter:

            ``SUBCHAPTER VIII--PROPERTY MANAGEMENT GENERALLY

``Sec. 631. Senior Real Property Officers
    ``(a) Establishment of Agency Senior Real Property Officer.--The 
head of each agency listed in paragraphs (1) and (2) of section 901(b) 
of title 31 shall designate among their senior management officials a 
Senior Real Property Officer. Such officer shall have the education, 
training, and experience required to administer the necessary functions 
of the position for the agency concerned.
    ``(b) Agency Asset Management Plan Responsibilities.--The Senior 
Real Property Officer of an agency shall develop and implement an 
agency asset management planning process that meets the form, content, 
and other requirements established by the Federal Real Property Council 
established under section 632 of this title. The initial agency asset 
management plan shall be submitted to the Office of Management and 
Budget on a date determined by the Director of the Office of Management 
and Budget. In developing the plan, the Senior Real Property Officer 
shall--
            ``(1) identify and categorize all real property owned, 
        leased, or otherwise managed by the agency, including, where 
        applicable, those properties outside the United States in which 
        the lease agreements and arrangements reflect the host country 
        currency or involve alternative lease plans or rental 
        agreements;
            ``(2) identify and pursue goals, with appropriate 
        deadlines, consistent with and supportive of the agency's asset 
        management plan and measure progress against such goals; and
            ``(3) identify any other information and pursue any other 
        actions necessary to the appropriate development and 
        implementation of the agency asset management plan.
    ``(c) Monitoring of Assets.--The Senior Real Property Officer of an 
agency shall be responsible, on an ongoing basis, for monitoring the 
real property assets of the agency so that agency assets are managed in 
a manner that is--
            ``(1) consistent with, and supportive of, the goals and 
        objectives set forth in the agency's overall strategic plan 
        under section 306 of title 5;
            ``(2) consistent with the real property asset management 
        principles developed by the Federal Real Property Council 
        established under section 632 of this title; and
            ``(3) reflected in the agency asset management plan.
    ``(d) Provision of Information.--The Senior Real Property Officer 
of an agency shall, on an annual basis, provide to the Director of the 
Office of Management and Budget and the Administrator of General 
Services the following:
            ``(1) Information that lists and describes real property 
        assets under the jurisdiction, custody, or control of that 
        agency, except for classified information.
            ``(2) Any other relevant information the Director of the 
        Office of Management and Budget or the Administrator of General 
        Services may request for inclusion in the inventory database 
        established under section 634 of this title.
``Sec. 632. Federal Real Property Council
    ``(a) Establishment of Council.--There shall be a Federal Real 
Property Council, within the Office of Management and Budget for 
administrative purposes, to develop guidance for, and facilitate the 
success of, each agency's asset management plan. The Council shall be 
composed exclusively of all agency Senior Real Property Officers, the 
Controller of the Office of Management and Budget, the Administrator of 
General Services, and any other full-time or permanent part-time 
Federal officials or employees as deemed necessary by the Chairman of 
the Council. The Deputy Director for Management of the Office of 
Management and Budget shall also be a member and shall chair the 
Council. The Office of Management and Budget shall provide funding and 
administrative support for the Council, as appropriate.
    ``(b) Agency Asset Management Plans.--
            ``(1) In general.--The Council shall provide guidance to 
        the Senior Real Property Officers in the development and 
        implementation of the agency asset management plans.
            ``(2) Performance measures.-- The Council shall work with 
        the Administrator of General Services to establish appropriate 
        performance measures to determine the effectiveness of Federal 
        real property management. Such performance measures shall 
        include, but are not limited to, evaluating the costs and 
        benefits involved with disposing of Federal real properties at 
        particular agencies. Specifically, the Council shall consider, 
        as appropriate, the following performance measures:
                    ``(A) The cost and time required to dispose of 
                Federal real property assets and the financial recovery 
                of the Federal investment resulting from the disposal.
                    ``(B) Changes in the amounts of vacant Federal 
                space.
                    ``(C) The enhancement of executive agency 
                productivity through an improved working environment.
            ``(3) Design of performance measures.--The performance 
        measures shall be designed to enable the heads of executive 
        agencies to track progress in the achievement of Government-
        wide property management objectives, as well as allow for 
        comparing the performance of executive agencies against 
        industry and other public sector agencies.
    ``(c) Best Practices Clearinghouse.--The Council shall serve as a 
clearinghouse for executive agencies for best practices in evaluating 
actual progress in the implementation of real property enhancements. 
The Council shall also work in conjunction with the President's 
Management Council to assist the efforts of the Senior Real Property 
Officials and the implementation of agency asset management plans.
    ``(d) Fund.--The Council may use amounts in the fund referred to in 
section 624(4) of this title for such purposes as the Council considers 
appropriate for carrying out its responsibilities.
    ``(e) Meetings.--The Council shall hold meetings not less often 
than once a quarter each fiscal year.
``Sec. 633. Inventory database
    ``(a) Database.--The Administrator of General Services (in this 
section referred to as the `Administrator'), in consultation with the 
Federal Real Property Council, shall establish and maintain a single, 
comprehensive, and descriptive database of all real property under the 
custody and control of all executive agencies, other than real property 
excluded for reasons of national security. The Administrator shall 
collect from each executive branch agency such descriptive information, 
except for classified information, as the Administrator considers will 
best describe the nature, use, and extent of the real property holdings 
of the Federal Government.
    ``(b) Standards.--The Administrator, in consultation with the 
Council, may establish data and other information technology standards 
for use by executive agencies in developing or upgrading executive 
agency real property information systems in order to facilitate 
reporting on a uniform basis. Those agencies with particular 
information technology standards and systems in place and in use shall 
be allowed to continue with such use to the extent that they are 
compatible with the standards issued by the Administrator.
    ``(c) Jurisdiction of Administrator.--Except for the purpose of 
maintaining the database required under this section, nothing in this 
section authorizes the Administrator to assume jurisdiction over the 
acquisition, management, or disposal of real property not subject to 
this chapter.
    ``(d) List of Underutilized Federal Real Properties.--
            ``(1) Requirement.--The head of each executive agency 
        shall--
                    ``(A) identify all underutilized properties under 
                the custody and control of that agency; and
                    ``(B) submit a list describing the underutilized 
                properties to the Federal Real Property Council.
            ``(2) Contents of list.--The list submitted under paragraph 
        (1)(B) shall include information about the location, nature, 
        and use of the property, and may be included in the database 
        required under this section.
            ``(3) Use of list.--Each executive agency shall use the 
        list submitted for the agency under this subsection to help in 
        determining whether a property is excess property under this 
        chapter.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of subtitle I of title 40, United States Code, is amended by 
inserting after the item relating to section 626, as added by title I, 
the following:
            ``subchapter viii--property management generally
``Sec. 631. Senior Real Property Officers.
``Sec. 632. Federal Real Property Council.
``Sec. 633. Inventory database.''.

                     TITLE III--GENERAL PROVISIONS

SEC. 301. DEFINITION OF UNDERUTILIZED REAL PROPERTY.

     Section 102 of title 40, United States Code, is amended by adding 
at the end the following new paragraph:
            ``(11) The term `underutilized real property' means real 
        property under the control of a Federal agency, with or without 
        improvements, that meets 1 or more of the following criteria:
                    ``(A) The property is occupied by 10 or fewer 
                employees of the Federal Government or a contractor of 
                the Federal Government.
                    ``(B) 50 percent or less of the building space is 
                occupied by the executive agency.
                    ``(C) The property has improvements that occupy 25 
                percent or less of the land.
                    ``(D) The property is unutilized, meaning it is 
                vacant or not occupied for current program purposes.''.
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