II 112th CONGRESS 1st Session S. 479 IN THE SENATE OF THE UNITED STATES March 3, 2011 Mr. Pryor introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL 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.

1.

Short title

This Act may be cited as the Federal Real Property Disposal Enhancement Act of 2011.

2.

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

(A)

In general

The Administrator shall issue guidance for the development and implementation of agency real property plans. (B)

Contents

Guidance issued under this paragraph shall include recommendations on— (i)how to identify excess properties; (ii)how to evaluate the costs and benefits involved with disposing of real property; (iii)how to prioritize disposal decisions based on agency missions and anticipated future need for holdings; and (iv)how best to dispose of those properties identified as excess to the needs of the agency. (2)

Annual report

(A)

In general

The Administrator shall submit an annual report, for each of the first 5 years after 2011, to the congressional committees listed in subparagraph (C) based on data submitted from all executive agencies, detailing executive agency efforts to reduce their real property assets and the additional information described in subparagraph (B). (B)

Contents

The report shall contain the following information for the year covered by the report: (i)

Real property

The aggregated estimated market value and number of real property assets under the custody and control of all executive agencies, set forth Government-wide and by agency, and for each at the constructed asset level and at the facility/installation level. (ii)

Surplus real property

The aggregated estimated market value and number of surplus real property assets under the custody and control of all executive agencies, set forth Government-wide and by agency, and for each at the constructed asset level and at the facility/installation level. (iii)

Costs

(I)

Maintenance

The aggregated cost for maintaining all surplus real property under the custody and control of all executive agencies, set forth Government-wide and by agency, and for each at the constructed asset level and at the facility/installation level. (II)

Recurring costs

For purposes of subclause (I), costs for real properties owned by the Federal Government shall include recurring maintenance and repair costs, utilities, cleaning and janitorial costs, and roads and grounds expenses. (III)

Lease costs

For purposes of subclause (I), costs for real properties leased by the Federal Government shall include lease costs, including base and operating rent and any other relevant costs listed in subclause (II) not covered in the lease contract. (iv)

Deferred maintenance costs

The aggregated estimated deferred maintenance costs of all real property under the custody and control of all executive agencies, set forth Government-wide and by agency, and for each at the constructed asset level and at the facility/installation level. (v)

Disposed property

For each surplus real property facility/installation disposed of, an indication of— (I)its geographic location with address and description; (II)its size, including square footage and acreage; (III)the date and method of disposal; and (IV)its estimated market value. (vi)

Disposed property

Such other information as the Administrator considers appropriate. (C)

Congressional committees

The congressional committees listed in this subparagraph are— (i)the Committee on Homeland Security and Governmental Affairs and the Committee on Environment and Public Works of the Senate; and (ii)the Committee on Oversight and Government Reform and the Committee on Transportation and Infrastructure of the House of Representatives. (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; and (D)when appropriate, use the authorities in section 572(a)(2)(B) 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); and (C)obtain excess properties from other Federal agencies to meet mission needs before acquiring non-Federal property.

. (b)

Technical and conforming amendment

The table of sections for chapter 5 of title 40, United States Code, is amended by striking the item relating to section 524 and inserting the following: 524. Duties of the General Services Administration and executive agencies. .

3.

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: (B)

Additional authority

(i)

Payment of direct and indirect costs

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)

Reimbursement

The General Services Administration shall be reimbursed from the proceeds of the sale of such properties for such costs. (iii)

Net proceeds

Net proceeds shall be dispersed under section 571. (iv)

Limitation

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 use, sale, lease, exchange, or otherwise, including through leaseback arrangements or service agreements. (v)

Rule of construction

Nothing in this subparagraph shall be construed to affect subparagraph (D). .

4.

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 striking (1) In general.— and inserting the following: (1)

In general

(A)

Enforcement

; 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, leaseback arrangements, or service agreements.(B)

Availability to State and local governments

Before sale, the Administrator shall make such property available to State and local governments and certain nonprofit institutions or organizations under this section and sections 553 and 554. . (c)

Requirements related to sales of reverted property under section 553

Section 553(e) of title 40, United States Code, is amended— (1)by striking (e) Enforcement and revision of instruments transferring property under this section.— and inserting the following: (e)

Enforcement and revision of instruments transferring property under this section

(1)

In general

; 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, leaseback arrangements, or service agreements.(2)

Availability to State and local governments

Before sale, the Administrator shall make such property available to State and local governments and certain nonprofit institutions or organizations under this section and sections 550 and 554. . (d)

Requirements related to sales of reverted property under section 554

Section 554(f) of title 40, United States Code, is amended— (1)by striking (f) Enforcement and revision of instruments transferring property under this section.— and inserting the following: (f)

Enforcement and revision of instruments transferring property under this section

(1)

In general

; 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, leaseback arrangements, or service agreements.(2)

Availability to State and local governments

Before sale, the Administrator shall make such property available to State and local governments and certain nonprofit institutions or organizations under this section and sections 550 and 553. .

5.

Agency retention of proceeds

The text of section 571 of title 40, United States Code, is amended to read as follows: (a)

Proceeds from transfer or sale of real property

(1)

Deposit

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 at the time the real property is determined to be excess. (2)

Expenditures

(A)

In general

Funds deposited under paragraph (1) shall be expended only as authorized in annual appropriations Acts and only for activities as described in section 524(b) and disposal activities, including paying costs incurred by the General Services Administration for any disposal-related activity authorized by this title. (B)

Maintenance and repairs

Funds deposited under paragraph (1) may also be expended by the agency for maintenance and repairs of the agency’s real property necessary for its disposal or for the repair or alteration of the agency’s other real property, except that such funds shall not be authorized for expenditure in an appropriations Act for any repair or alteration project that is subject to the requirements of section 3307 without a prospectus submitted by the General Services Administration and approved by the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives. (b)

Effect on other sections

Nothing in this section shall be construed to affect section 572(b), 573, or 574. (c)

Disposal agency for reverted property

For the purposes of this section, for any real property that reverts to the United States under sections 550, 553, and 554, the General Services Administration, as the disposal agency, shall be treated as the agency with custody and accountability for the real property at the time the real property is determined to be excess. (d)

Net proceeds

The net proceeds referred to in subsection (a) are proceeds under this chapter, less expenses of the transfer or disposition as provided in section 572(a), from a— (1)transfer of excess real property to a Federal agency for agency use; or (2)sale, lease, or other disposition of surplus real property. (e)

Proceeds from transfer or sale of personal property

(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 described in this paragraph are proceeds under this chapter from— (A)a transfer of excess personal property to a Federal agency for agency use; or (B)a sale, lease, or other disposition of surplus personal property. (3)

Net Proceeds

Subject to regulations under this subtitle, the expenses of the sale of personal property may be paid from the proceeds of sale so that only the net proceeds are deposited in the Treasury. This paragraph applies whether proceeds are deposited as miscellaneous receipts or to the credit of an appropriation as authorized by law. .

6.

Demonstration authority

(a)

In general

Subchapter II of chapter 5 of title 40, United States Code, is amended by adding at the end the following:

530.

Demonstration program of inapplicability of certain requirements of law

(a)

Authority

Effective for fiscal years 2012 and 2013, the requirements of section 501(a) of the McKinney Vento Homeless Assistance Act (42 U.S.C. 11411(a)) shall not apply to eligible properties. (b)

Eligible properties

A property is eligible for purposes of subsection (a) if— (1)the property is selected for demolition by an agency and is a Federal building or other Federal real property located on land not determined to be excess, for which there is an ongoing Federal need, and not to be used in any lease, exchange, leaseback arrangement, or service agreement; and (2)the property is— (A)located in an area to which the general public is denied access in the interest of national security and where alternative access cannot be provided for the public without compromising national security; or (B)the property is— (i)uninhabitable; (ii)not a housing unit; and (iii)selected for demolition by an agency because either— (I)the demolition is necessary to further an identified Federal need for which funds have been authorized and appropriated; or (II)the property poses risk to human health and safety or has become an attractive nuisance. (c)

Limitations

(1)

Department of Veterans Affairs

No property of the Department of Veterans Affairs may be considered an eligible property for purposes of subsection (a). (2)

Land

With respect to an eligible property described in subsection (b), the land underlying the property remains subject to all public benefit requirements and notifications for disposal. (d)

Notification to Congress

(1)

In general

A list of each eligible property described in subsection (b) that is demolished or scheduled for demolition, by date of demolition or projected demolition date, shall be sent to the congressional committees listed in paragraph (2) and published on the Web site of the General Services Administration biannually beginning 6 months after the date of the enactment of this section. (2)

Congressional committees

The congressional committees listed in this paragraph are— (A)the Committee on Homeland Security and Governmental Affairs and the Committee on Environment and Public Works of the Senate; and (B)the Committee on Oversight and Government Reform and the Committee on Transportation and Infrastructure of the House of Representatives. (e)

Relationship to other provisions of law

Nothing in this section may be construed as interfering with the requirement for the submission of a prospectus to Congress as established by section 3307 or for all demolitions to be carried out under section 527.

. (b)

Technical and conforming amendment

The table of sections for chapter 5 of title 40, United States Code, is amended by inserting after the item relating to section 529 the following: 530. Demonstration program of inapplicability of certain requirements of law. .