[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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