[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]