Congressional Record, Volume 168 Issue 147 (Tuesday, September 13, 2022)

[Congressional Record Volume 168, Number 147 (Tuesday, September 13, 2022)]
[House]
[Pages H7755-H7756]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

SECURITIES AND EXCHANGE COMMISSION REAL ESTATE LEASING AUTHORITY
REVOCATION ACT

Ms. NORTON. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 1468) to amend title 40, United States Code, to eliminate
the leasing authority of the Securities and Exchange Commission, and
for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:

H.R. 1468

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 ``Securities and Exchange
Commission Real Estate Leasing Authority Revocation Act''.

SEC. 2. LEASING OF SPACE FOR SECURITIES AND EXCHANGE
COMMISSION.

(a) In General.--Section 3304 of title 40, United States
Code, is amended by adding at the end the following:
``(e) Leasing of Space for Securities and Exchange
Commission.--Notwithstanding any other provision of law, on
and after the date of enactment of this subsection, the
Securities and Exchange Commission may not lease general
purpose office space. The Administrator may lease such space
for the Securities and Exchange Commission under section 585
and this chapter.''.
(b) Limitation on Statutory Construction.--The amendment
made by subsection (a) may not be construed to invalidate or
otherwise affect a lease entered into by the Securities and
Exchange Commission before the date of enactment of this Act.

SEC. 3. INDEPENDENT LEASING AUTHORITIES.

(a) In General.--The Comptroller General of the United
States shall submit to the Committee on Transportation and
Infrastructure of the House of Representatives, the Committee
on Environment and Public Works of the Senate, and the
Committee on Homeland Security and Governmental Affairs of
the Senate a report on the review described in subsection
(b).
(b) Review.--The Comptroller General shall complete a
review under which the Comptroller General shall update the
2016 report of the Comptroller General (GAO-16-648) with a
specific focus on the following:
(1) Updating the information included in Appendix II:
Federal Entities That Reported Having Independent Leasing
Authority for Domestic Offices and Warehouses of such report.
(2) Determining to what extent Federal entities with
independent leasing authorities have had such authorities
rescinded or amended and the number and amount of office and
warehouse space such entities lease.
(3) Determining to what extent have agencies with
independent leasing authority utilized the General Services
Administration for leasing, including utilization of
delegation of authority.
(4) Identifying progress made on implementing the
recommendations in such report.

The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
the District of Columbia (Ms. Norton) and the gentleman from Louisiana
(Mr. Graves) each will control 20 minutes.
The Chair recognizes the gentlewoman from the District of Columbia.

General Leave

Ms. NORTON. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks and
include extraneous material on H.R. 1468, as amended.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from the District of Columbia?
There was no objection.
Ms. NORTON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the Securities and Exchange Commission Real Estate
Leasing Authority Revocation Act, which I introduced, will revoke the
independent real estate leasing authority of the Securities and
Exchange Commission and direct the Government Accountability Office to
update its 2016 report on independent real estate leasing authority in
the Federal Government. While a number of Federal agencies have
independent leasing authority, the SEC has a history of egregious real
estate practices.
In 2005, the SEC disclosed that it had unbudgeted costs of
approximately $48 million for the construction of its headquarters near
Union Station. In

[[Page H7756]]

2007, after moving into the headquarters, the SEC shuffled its
employees to different office space at a cost of over $3 million
without any cost-benefit analysis or justifiable explanation.
In 2010, the SEC conducted a deeply flawed analysis to justify the
need to lease 900,000 square feet and to commit over $500 million over
10 years, overestimating its space needs by over 300 percent. In
addition, the SEC failed to provide complete and accurate information
and prepared a faulty and backdated justification and approval after it
had already signed the lease.
In August 2016, the General Services Administration and the SEC
entered into an occupancy agreement to authorize the GSA to secure a
new 15-year lease. In December 2016, the GSA, with the approval of the
SEC, submitted a prospectus to Congress for approximately 1.3 million
square feet, which Congress approved in 2018. By July 2019, the GSA had
received final bids, resolved all protests, and even selected a final
bidder. A month later, the SEC canceled the occupancy agreement, citing
concerns about the value of the purchase option, which the SEC refused
to document to Congress. The SEC effectively vetoed the entire 3-year
procurement process, despite not having the authority or funding to
exercise the purchase option without the GSA's involvement.
Finally, after much back and forth between the two agencies, the GSA
entered into a lease for a new SEC headquarters in September 2021. The
SEC says it will continue to have the GSA do its leasing in the future,
but the SEC's history of egregious leasing conduct, having squandered
hundreds of millions of dollars, makes this bill necessary.
These public blunders also risk undermining the reputation of the GSA
and the Federal Government among the developers and building owners
that participate in Federal lease procurements and ultimately driving
up the costs of all GSA real estate procurement due to the threat of
uncertainty.
It is time for Congress to return the SEC's leasing authority to the
GSA, the Federal Government's civilian real estate arm. As the SEC has
demonstrated over three decades, it is incredibly inefficient,
wasteful, and redundant to have the SEC involved in real estate
procurements when the GSA exists for that very reason. Like other
Federal agencies, the SEC would continue to have input and involvement
in the real estate decision-making process, but the GSA will have the
ultimate authority.
Mr. Speaker, I urge my colleagues to support this bill, and I reserve
the balance of my time.
Mr. GRAVES of Louisiana. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, H.R. 1468, as the gentlewoman from the District of
Columbia indicated, helps to restore the SEC's leasing authority back
to the confines of the General Services Administration. It ensures that
we have a uniform approach to leasing space in Federal agencies.
I thank the gentlewoman from the District of Columbia for her
perseverance on this bill. I know this has been a priority of hers for
a very long period of time. But I want to give you a little bit of
background.
In 2012, the SEC leased approximately 1.4 million square feet of
office space for $566 million. I want to say that again. The SEC leased
1.4 million square feet of office space for $566 million, in violation
of the law. They exceeded their authority when they entered into this
lease.
When there was Republican leadership, there was an investigation that
the Committee on Transportation and Infrastructure did over the SEC's
actions. The SEC Inspector General similarly commissioned an
investigation.
The conclusion of these investigations found that not only did the
Securities and Exchange Commission exceed their authority in that
lease, but this was a trend. They had a history of mismanagement of
their leasing authority.

Unfortunately, recent actions by the SEC during the GSA's procurement
of leased space for the SEC indicates that they may be returning back
to their old ways.
I want to say again, I commend the gentlewoman from the District of
Columbia, ensuring that we have a uniform approach, ensuring that
taxpayer dollars are being managed in a way that we can all be proud
of, respecting the people who have worked hard for those dollars, and
we don't need to be mismanaging them.
The bill will ensure that the Securities and Exchange Commission,
like other Federal agencies, uses the GSA, the General Services
Administration, for its space needs and provide more safeguards for
taxpayer dollars.
Mr. Speaker, I urge support of the legislation, and reserve the
balance of my time.
Ms. NORTON. Mr. Speaker, I reserve the balance of my time.
Mr. GRAVES of Louisiana. Mr. Speaker, I yield myself the balance of
my time.
In closing, H.R. 1468 will better protect taxpayer money by ensuring
the SEC works with the General Services Administration on leasing to
improve oversight, reduce costs, and minimize Antideficiency Act
violations in the future.
Mr. Speaker, I urge adoption of this legislation, and I yield back
the balance of my time.
Ms. NORTON. Mr. Speaker, in closing, I urge my colleagues to support
this legislation, and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from the District of Columbia (Ms. Norton) that the House
suspend the rules and pass the bill, H.R. 1468, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. ROY. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.

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