Short title

This Act may be cited as the

Federal Real Property Disposal Enhancement Act of 2008

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.

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:

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.

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).

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 or above appraised 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 or above appraised 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 or above appraised 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.

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

Net 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 net 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.