[House Report 117-462]
[From the U.S. Government Publishing Office]


117th Congress}                                            { Report

  2d Session  }        HOUSE OF REPRESENTATIVES	           { 117-462   

======================================================================
 
               SECURITIES AND EXCHANGE COMMISSION REAL ESTATE 
                       LEASING AUTHORITY REVOCATION ACT

                                _______
                                

 September 13, 2022.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. DeFazio, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 1468]

    The Committee on Transportation and Infrastructure, to whom 
was referred 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, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     4
Legislative History and Consideration............................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
New Budget Authority and Tax Expenditures........................     4
Congressional Budget Office Cost Estimate........................     5
Performance Goals and Objectives.................................     5
Duplication of Federal Programs..................................     5
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     5
Federal Mandates Statement.......................................     5
Preemption Clarification.........................................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill, as Reported............     6

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

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.

                         Purpose of Legislation

    The purpose of H.R. 1468 as amended is to revoke the real 
estate leasing authority of the Securities and Exchange 
Commission (SEC) and to clarify the authority of the General 
Services Administration (GSA) to lease space for the SEC.

                  Background and Need for Legislation

    Section 103 of the Securities Acts Amendments of 1990 (P.L. 
101-550) authorized the SEC to lease real property for office 
purposes and exempted such leasing activity from GSA space 
management regulations or directives.\1\
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    \1\https://www.congress.gov/bill/101st-congress/house-bill/1396/
text.
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    In 2010 the SEC, anticipating the need for additional staff 
to perform new obligations it was likely to be assigned under 
the Dodd-Frank Wall Street Reform and Consumer Protection Act, 
leased approximately 900,000 square feet of space in 
Constitution Center, a building located at 400 Seventh Street, 
SW, in Washington, DC.\2\ The 10-year lease included a right of 
first refusal for the remaining 500,000 square feet at 
Constitution Center.\3\
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    \2\https://www.sec.gov/foia/docs/oig-553.pdf.
    \3\Id.
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    Three months after signing the lease the SEC notified the 
landlord that it did not need approximately 600,000 of the 
900,000 square feet it had leased, nor the 500,000 square feet 
that had been subject to the right of first refusal.\4\ After 
the SEC indicated that the space was not needed, the Federal 
Housing Finance Agency (FHFA) and the Office of the Comptroller 
of the Currency (OCC) agreed to take on approximately two-
thirds of the space.\5\ In 2011, GSA reached an agreement with 
SEC to assume control of and backfill the remaining square feet 
under SEC's lease.\6\
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    \4\https://www.sec.gov/foia/docs/oig-553.pdf.
    \5\https://www.gsa.gov/about-us/newsroom/congressional-testimony/
gsas-plan-to-fully-utilize-constitution-center.
    \6\Id.
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    In October and November 2010, the SEC Office of Inspector 
General (OIG) received several written complaints regarding the 
SEC's actions related to the SEC's Constitution Center space 
procurement.\7\ These complaints alleged that the decision to 
lease Constitution Center had been ill-conceived, was the 
result of poor management practices, and was made without 
Congressional funding for the significant projected growth 
necessary to support the decision.\8\ On November 16, 2010, the 
OIG opened an investigation into those allegations.\9\
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    \7\https://www.sec.gov/foia/docs/oig-553.pdf.
    \8\Id.
    \9\Id.
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    The OIG investigation (Case No. OIG 553 Improper Actions 
Relating to the Leasing of Office Space) found that the 
circumstances surrounding the SEC's lease at Constitution 
Center ``represents another in a long history of missteps and 
misguided leasing decisions made by the SEC since it was 
granted independent leasing authority by Congress in 
1990.''\10\
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    \10\Id.
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    In 2011, the Committee on Transportation and 
Infrastructure's Subcommittee on Economic Development, Public 
Buildings, and Emergency Management held two hearings on the 
SEC's leasing activities. During the second hearing, then-SEC 
Chairwoman Mary Schapiro said, ``[i]n light of the problems 
identified, and questions raised by the OIG and this 
Subcommittee, the SEC recognizes the benefits of having GSA 
manage the Commission's future lease acquisitions. Leasing is 
not part of the Commission's core mission, and we cannot allow 
it to impede that mission. GSA, by contrast, has long 
experience and expertise in leasing.''\11\ In addition, the 
hearings highlighted that the SEC exceeded legal limitations on 
the use of its leasing authority potentially resulting in Anti-
Deficiency Act violations.\12\ Indeed, the Committee also 
focused on significant evidence that agencies with independent 
leasing authorities outside of GSA generally failed to 
understand and follow relevant laws in accounting for the costs 
to the taxpayer.\13\
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    \11\https://www.sec.gov/news/testimony/2011/ts070611mls.htm.
    \12\See Hearing on ``The Securities and Exchange Commission's $500 
Million Fleecing of America: Part Two,'' Subcommittee on Economic 
Development, Public Buildings, and Emergency Management, July 6, 2011.
    \13\See Hearing on ``Independent Leasing Authorities: Increasing 
Oversight and Reducing Costs of Space Leased by Federal Agencies,'' 
Subcommittee on Economic Development, Public Buildings, and Emergency 
Management, July 6, 2016.
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    Congresswoman Eleanor Holmes Norton first introduced 
legislation (H.R. 2390) to revoke the SEC's independent leasing 
authority during the 112th Congress.\14\ H.R. 1468 as amended 
in the 117th Congress is similar to H.R. 2390 and is intended 
to ensure the SEC continues to conform with the law and proper 
oversight to avoid the wasteful spending exemplified by the SEC 
prior to working with GSA for its leasing.
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    \14\https://www.congress.gov/bill/112th-congress/house-bill/2390.
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                                Hearings

    For the purposes of Rule XIII, clause 3(c)(6)(A) of the 
117th Congress, the following hearing was used to develop or 
consider H.R. 1468:
    On November 2, 2021, the Subcommittee on Economic 
Development, Public Buildings, and Emergency Management held a 
hearing titled, ``The General Services Administration's 
Priorities for 2021 and Beyond.'' The Subcommittee received 
testimony from the Hon. Robin Carnahan, Administrator, General 
Services Administration; and Ms. Nina Albert, Commissioner, 
Public Buildings Services, General Services Administration.
    This hearing examined the current and future priorities of 
the GSA.

                 Legislative History and Consideration

    H.R. 1468, the ``Securities and Exchange Commission Real 
Estate Leasing Authority Revocation Act,'' was introduced on 
March 1, 2021, by Ms. Norton and referred to the Committee on 
Transportation and Infrastructure. Within the Committee, H.R. 
1468 was referred to the Subcommittee on Economic Development, 
Public Buildings, and Emergency Management.
    The Subcommittee on Economic Development, Public Buildings, 
and Emergency Management was discharged from further 
consideration of H.R. 1468 on June 15, 2022.
    The Committee considered H.R. 1468 on June 15, 2022, and 
ordered the measure to be favorably reported to the House, as 
amended, by voice vote.
    The following amendments were offered:
    An Amendment in the Nature of a Substitute to H.R. 1468 
offered by Mr. DeFazio was AGREED TO by voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against.
    No record votes were requested during consideration of H.R. 
1468.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received a cost estimate for this bill from the 
Director of Congressional Budget Office. The Committee has 
requested but not received from the Director of the 
Congressional Budget Office a statement as to whether this bill 
contains any new budget authority, spending authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. The Chairman of the Committee shall cause such 
estimate and statement to be printed in the Congressional 
Record upon its receipt by the Committee.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives, a cost 
estimate provided by the Congressional Budget Office pursuant 
to section 402 of the Congressional Budget Act of 1974 was not 
made available to the Committee in time for the filing of this 
report. The Chairman of the Committee shall cause such estimate 
to be printed in the Congressional Record upon its receipt by 
the Committee.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to 
rescind the leasing authority of the SEC.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 1468 as amended establishes or reauthorizes a program 
of the federal government known to be duplicative of another 
federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       Federal Mandates Statement

    An estimate of federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee finds that H.R. 1468 as amended 
does not preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

             Section-by-Section Analysis of the Legislation


Section 1. Title

    This section provides that this bill 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

    This section prohibits the SEC from leasing general purpose 
office space and authorizes the GSA to lease such space for the 
SEC.

Sec 3. Independent leasing authorities

    This section directs the Comptroller General of the United 
States to submit an update to its 2016 report on independent 
leasing authorities of agencies outside of GSA.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

                      TITLE 40, UNITED STATES CODE



           *       *       *       *       *       *       *
SUBTITLE II--PUBLIC BUILDINGS AND WORKS

           *       *       *       *       *       *       *


PART A--GENERAL

           *       *       *       *       *       *       *


CHAPTER 33--ACQUISITION, CONSTRUCTION, AND ALTERATION

           *       *       *       *       *       *       *


Sec. 3304. Acquisition of buildings and sites

  (a) In General.--The Administrator of General Services may 
acquire, by purchase, condemnation, donation, exchange, or 
otherwise, any building and its site which the Administrator 
decides is necessary to carry out the duties of the 
Administrator under this chapter.
  (b) Acquisition of Land or Interest in Land for Use as 
Sites.--The Administrator may acquire, by purchase, 
condemnation, donation, exchange, or otherwise, land or an 
interest in land the Administrator considers necessary for use 
as sites, or additions to sites, for public buildings 
authorized to be constructed or altered under this chapter.
  (c) Public Buildings Used for Post Office Purposes.--When any 
part of a public building is to be used for post office 
purposes, the Administrator shall act jointly with the United 
States Postal Service in selecting the town or city where the 
building is to be constructed, and in selecting the site in the 
town or city for the building.
  (d) Solicitation of Proposals for Sale, Donation, or Exchange 
of Real Property.--When the Administrator is to acquire a site 
under subsection (b), the Administrator, if the Administrator 
considers it necessary, by public advertisement may solicit 
proposals for the sale, donation, or exchange of real property 
to the Federal Government to be used as the site. In selecting 
a site under subsection (b) the Administrator (with the 
concurrence of the United States Postal Service if any part of 
the public building to be constructed on the site is to be used 
for post office purposes) may--
          (1) select the site that the Administrator believes 
        is the most advantageous to the Government, all factors 
        considered; and
          (2) acquire the site without regard to division C 
        (except sections 3302, 3501(b), 3509, 3906, 4710, and 
        4711) of subtitle I of title 41.
  (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.

           *       *       *       *       *       *       *


                              [all]