[Congressional Record (Bound Edition), Volume 154 (2008), Part 7]
[House]
[Pages 9637-9640]
[From the U.S. Government Publishing Office, www.gpo.gov]




         FEDERAL REAL PROPERTY DISPOSAL ENHANCEMENT ACT OF 2008

  Ms. WATSON. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 5787) 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, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5787

       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 Enhancement Act of 2008''.

     SEC. 2. 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.

     SEC. 3. 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:

     ``Sec. 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.''.

     SEC. 4. 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

[[Page 9638]]

     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).''.

     SEC. 5. 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.''.

     SEC. 6. 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.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
California (Ms. Watson) and the gentleman from California (Mr. Issa) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from California.


                             General Leave

  Ms. WATSON. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days in which to revise and extend their remarks.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  Ms. WATSON. Mr. Speaker, I yield myself such time as I may consume.
  I stand in support of H.R. 5787, the Federal Real Property Disposal 
Enhancement Act, which is a sensible, bipartisan effort to address some 
of the problems with the current Federal property disposal process.
  There are three key provisions in this bill. The first allows the 
General Services Administration to help pay the cost of other agencies' 
disposal activities. In particular, GSA will be able to help agencies 
pay costs with regard to properties that have yet to be declared 
excess. These costs include environmental cleanup, demolition, 
surveying, and life cycle costing.
  Another key provision modifies existing law to make clear that when a 
property has been transferred to a nonprofit organization or a State or 
local government for a public purpose and that public purpose is no 
longer being met, the property must revert to the Federal Government, 
which must dispose of it.
  The final major provision allows all agencies to retain the proceeds 
from the sale of Federal surplus properties. These proceeds will be 
used for disposal activities such as developing and implementing a plan 
to identify and declare properties excess, appraisals, utilization 
studies, and life cycle planning. The Office of Management and Budget 
has stated that allowing agencies to retain the proceeds will provide 
agencies with the funds necessary to cover upfront costs associated 
with disposals.
  This bill does not waive any existing law regarding the screening 
process and therefore does not affect the access of homeless providers 
or State and local communities to these properties.
  I want to commend Representatives Moore and Duncan for introducing 
this bill. I also want to thank Chairman Waxman and Ranking Member 
Davis for their dedication to this issue for many years.
  Mr. Speaker, I reserve the balance of my time.
  Mr. ISSA. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise today in support of H.R. 5787, the Federal Real 
Property Disposal Enhancement Act, which was introduced last month by 
Representatives Dennis Moore of Kansas and John Duncan of Tennessee.
  This legislation would expand the number of agencies allowed to 
retain the proceeds from the sale of surplus Federal real property and 
would expand the authority of the General Services. It is very clear 
that this is a good bill, and I support it. It is also very clear that 
it is a step in the right direction but does not get us to where we 
really need to be. In fact, this is simply the tip of the iceberg.
  The Federal Government is the largest landowner in the country. As 
such, it is essential that the government manage its properties as 
efficiently and effectively as possible. More importantly, property 
which is no longer of use to the Federal Government should be removed 
from the inventory. Unfortunately, over the years Federal property 
disposal processes have become increasingly cumbersome and unwieldy, 
and agencies often decide it's easier to sit on property than to try to 
get rid of it. In fact, when we as a Congress have done rounds of BRAC, 
we have often had to do supplemental appropriations of dollars in order 
to give away property that has become surplus. In fact, OMB estimates a 
backlog of more than 21,000 properties in need of maintenance and 
repair carrying a price tag of more than $18 billion.
  Under Republican control, the Congress spent a considerable amount of 
time working, mostly on a bipartisan basis, to reform the Federal real 
property disposal system. The proposals we put forward for substantial 
changes provided real reform. Although H.R. 5787 does not contain the 
kind of substantive reform put forward in prior

[[Page 9639]]

Congresses, it is nevertheless an improvement on the current system.
  I therefore ask my colleagues to strongly support this legislation as 
a step in the right direction.
  Mr. Speaker, I reserve the balance of my time.
  Ms. WATSON. Mr. Speaker, I have no further requests for time, and I 
reserve the balance of my time.
  Mr. ISSA. Mr. Speaker, in closing, today we have handled a great many 
important resolutions on the floor and some laws. We've done this on a 
bipartisan basis.
  As we finish our suspensions for the House Oversight and Reform 
Committee, I would simply ask my colleagues, the Speaker, to take note 
that this past week, prices rose once again on gasoline in America. Up 
17 cents in a blink of the eye, up a dollar since this Congress 
switched hands.
  It is very clear that we need to begin operating on a bipartisan 
basis to bring down the price of gas and diesel fuel. We can only do 
that if we work on as much of a bipartisan basis as we work on these 
resolutions.
  So I would ask all of my colleagues to note that the real problem 
America cares about today is not the 100 years of the Congressional 
Club. It is not, in fact, Arnold Palmer's accomplishments. It is not 
even Frank Sinatra's doing it his way. It is, in fact, America's 
inability to cope with rising gas prices, staggering unemployment, and 
the inability to live in one's own home. I ask that my colleagues take 
note of that and that we work on a bipartisan basis to bring a real 
resolution to these problems.
  Mr. Speaker, I yield back the balance of my time.
  Ms. WATSON. Mr. Speaker, it is wonderful to live in a democracy when 
we can recognize our athletes, when we can recognize our entertainers, 
we can recognize all of our people, along with doing the people's work.
  The idea of a democracy says anyone at the lower end of the social 
economic scale as well as those at the top need recognition. We need to 
work together across aisles, not to be hampered by games that can be 
played, but sincerely coming together as a body representing the 280 
million Americans and those who are not quite citizens and to do their 
work without phony procedures blocking our ability to make progress.
  Mr. OBERSTAR. Mr. Speaker, I rise in support of H.R. 5787, as 
amended, and commend Chairman Waxman for taking steps to address 
Federal excess and surplus property issues.
  H.R. 5787 authorizes the Administrator of General Services to 
obligate funds to pay for a variety of services that must be conducted 
before a property can be declared excess to the needs of the reporting 
agency. These services include title searches, site remediation, site 
security, and other activities necessary for a property to be declared 
excess. Further, the bill authorizes the General Services 
Administration to be reimbursed by the agency for these expenses from 
the proceeds of the sale of the property. The net proceeds are retained 
by the donor agency and can be used only for disposal-related 
activities.
  I want to thank Chairman Waxman for recognizing the concerns of the 
Committee on Transportation and Infrastructure regarding the eligible 
uses of these net proceeds, and for working to address these concerns. 
The committee was particularly concerned that agencies, using this new-
found source of revenue, would engage in real property activities that 
would otherwise need to go through the prospectus process and thus the 
jurisdiction of the Transportation and Infrastructure Committee. The 
version of H.R. 5787 being considered today specifically addresses the 
Transportation and Infrastructure Committee's concerns by prohibiting 
the use of proceeds for activities or projects subject to the 
prospectus process and other requirements of section 3307 title 40, 
United States Code.
  Mr. Speaker, I support H.R. 5787, as amended, and support placing the 
General Services Administration back in a leadership role for property 
disposal activities of the Federal Government.
  Mr. WAXMAN. Mr. Speaker, I rise in strong support of H.R. 5787, the 
Federal Real Property Disposal Enhancement Act. This is a bipartisan 
solution to address some on the deficiencies that exist in Federal real 
property management. I want to commend Representatives Moore and Duncan 
for introducing this bill, and Ranking Member Davis for working with me 
over many years on property issues.
  As GAO has indicated by placing Federal real property on its ``high 
risk'' list, problems abound. One such problem is that unneeded 
buildings are in the Federal inventory. The magnitude of the problem 
with excess Federal real property means that agencies are spending 
billions of dollars maintaining properties no longer relevant to 
agencies' missions.
  The Federal Real Property Disposal Enhancement Act seeks to address 
some of the hurdles that agencies are facing regarding disposal of 
their unneeded property.
  One key provision allows the General Services Administration to use 
its funds to prepare properties to be declared excess by other 
agencies. Agencies and GAO have testified that the cost of preparing a 
property for transfer or sale serves 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. 
Basically, it is cheaper to pay to mow the grass and have a security 
guard than to do appraisals, surveys, and environmental studies.
  Another key provision allows all agencies to retain 100 percent of 
the proceeds from sale. Most large landholding agencies already have 
this benefit. However, smaller ones, such as the Federal Communications 
Commission, which owns vacant towers, do not. After GSA obtained the 
authority to retain proceeds in 2005, its disposals increased.
  In addition, the bill clarifies that when a piece of property has 
been given to a nonprofit or State or local government for a public 
purpose and that public purpose ceases to exist, the federal government 
must revert the property and dispose of it. The bill also calls on GSA 
to issue guidance on disposing of excess properties and requires 
agencies to develop and implement plans to dispose of their excess 
property.
  This is a commonsense measure and I am hopeful all members will be 
able to support it.
  Mr. MOORE of Kansas. Mr. Speaker, I rise today in support of H.R. 
5787, the Federal Real Property Disposal Enhancement Act, a bill that I 
introduced with Representative Jimmy Duncan of Tennessee to address the 
disincentives that are currently keeping some agencies from disposing 
of properties they no longer need.
  Last June the Office of Management and Budget (OMB) released a report 
which found that there is currently a backlog of more than 21,000 
excess and surplus Federal properties worth a total of $18 billion. 
Holding onto these properties has serious implications for the American 
taxpayer, as it costs Federal agencies millions of dollars per year to 
maintain and secure properties that are underutilized or simply 
unneeded.
  Investigations by the Government Accountability Office (GAO) have 
also pointed out that the administrative requirements and costs of 
preparing a property for transfer or sale continue to hamper some 
agencies' efforts to address their backlog of unneeded properties. 
Because it can be difficult for agencies to secure the resources that 
they need to prepare a property for disposal, these costs serve as a 
disincentive because it makes more sense, in the short-term, for them 
to simply hold onto a property, particularly if they do not expect to 
receive the proceeds of a transfer or sale.
  Fortunately, over the past several years the administration and 
Federal agencies have made progress toward strategically managing 
Federal real property by establishing asset management plans, 
standardizing data reporting, and adopting performance measures.
  But there are also commonsense steps that we can take now to ensure 
that Federal agencies have the proper incentives to dispose of property 
they no longer need. H.R. 5787 is designed to do just this.
  First, the legislation would move to help agencies deal with the 
administrative requirements and costs of preparing underutilized 
properties for transfer or sale by allowing the General Services 
Administration (GSA), in cooperation with agencies, to use its 
resources and expertise to cover these up-front costs and help agencies 
ensure that title records, property descriptions, and environmental 
clearances are in order so that properties can be classified as excess. 
GSA would then be reimbursed for the costs it incurs from the proceeds 
that agencies receive from the transfer or sale of such properties.
  The legislation would also provide agencies with another incentive to 
reduce their inventory of unneeded properties by allowing them to keep 
all the proceeds received from the sale of surplus properties, which 
would then be available, subject to appropriations, to fund future 
asset management and disposal activities.
  Many landholding agencies, including the three largest landholding 
agencies--the Department of Defense, GSA, and the Department of 
Veterans Affairs--already have the

[[Page 9640]]

authority to retain 100 percent of proceeds, and it has been shown to 
be a tremendous incentive for some agencies to dispose of property they 
no longer need.
  H.R. 5787 would simply extend this authority to landholding agencies 
that currently do not have it, and allow the proceeds agencies would 
receive to be used for future disposal and asset management efforts.
  Mr. Speaker, I would like to encourage my colleagues to support this 
common sense effort to help Federal agencies more efficiently manage 
their Federal real property assets. As we are all well aware, the 
Federal government faces many short and long-term fiscal challenges, 
which is why we must increase our efforts both to manage our existing 
assets more effectively and to significantly reduce the backlog of 
underutilized and unused Federal properties. We should no longer waste 
precious taxpayer funds on maintaining and holding properties that are 
not needed.
  Ms. WATSON. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from California (Ms. Watson) that the House suspend the 
rules and pass the bill, H.R. 5787, 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. ISSA. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

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