108th CONGRESS

1st Session

**H. R. 2573**

To amend title 40, United States Code, to make reforms in the management
and development of Federal real property.

**IN THE HOUSE OF REPRESENTATIVES**

### June 24, 2003

Mr. LATOURETTE (for himself, Ms. NORTON, Mr. YOUNG of Alaska, and Mr.
OBERSTAR) introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure

**A BILL**

To amend title 40, United States Code, to make reforms in the management
and development of Federal real property.

> *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 \`Public Private Partnership Act of
> 2003\'.

### SEC. 2. FEDERAL REAL PROPERTY DEVELOPMENT.

> \(a\) IN GENERAL- Part A of subtitle II of title 40, United States
> Code, is amended by adding at the end the following:

### \`CHAPTER 39\--FEDERAL REAL PROPERTY DEVELOPMENT

> \`Sec.
>
> \`3901. Definitions.
>
> \`3902. Agreements with non-Federal entities.
>
> \`3903. Sunset.

#### \`Sec. 3901. Definitions

> \`In this chapter, the following definitions apply:
>
> \`(1) EXCESS PROPERTY- The term \`excess property\' has the meaning
> given such term by section 102.
>
> \`(2) FEDERAL BUILDINGS FUND- The term \`Federal Buildings Fund\'
> means the fund established by section 592.
>
> \`(3) LANDHOLDING AGENCY-
>
> \`(A) IN GENERAL- Subject to subparagraph (B), the term \`landholding
> agency\' means any executive agency that, by specific or general
> statutory authority, has jurisdiction over property that is real
> property.
>
> \`(B) EXCLUSIONS- The term \`landholding agency\'\--
>
> \`(i) does not include an executive agency with respect to the
> agency\--
>
> \`(I) disposing of an interest in real property for public benefit
> purposes pursuant to section 545;
>
> \`(II) holding lands in trust or restricted fee status for individual
> Indians or Indian tribes; or
>
> \`(III) having jurisdiction over National Park System lands, National
> Forest System lands, or National Wildlife Refuge System lands; and
>
> \`(ii) does not include the Bureau of Land Management.
>
> \`(4) PROPERTY- The term \`property\' has the meaning given such term
> by section 102, and includes public buildings and the occupied or
> improved grounds of the United States generally.

#### \`Sec. 3902. Agreements with non-Federal entities

> \`(a) AUTHORITY TO ENTER INTO AGREEMENTS-
>
> \`(1) IN GENERAL- Subject to the requirements of this section, the
> Administrator of General Services may enter into agreements with
> non-Federal entities to provide for\--
>
> \`(A) the acquisition, lease, construction, rehabilitation, operation,
> maintenance, or use of real property under the jurisdiction of the
> General Services Administration or another landholding agency; or
>
> \`(B) such other activities related to the real property as the
> Administrator considers appropriate.
>
> \`(2) LANDHOLDING AGENCIES OTHER THAN GSA- In the case of real
> property under the jurisdiction of a landholding agency other than the
> General Services Administration, the Administrator may enter into an
> agreement under this subsection only upon the written request of the
> head of the landholding agency.
>
> \`(b) ELIGIBILITY OF REAL PROPERTY- The Administrator may enter into
> an agreement under subsection (a) with respect to real property only
> if the head of the landholding agency with jurisdiction over the
> property determines in writing that the real property is not excess
> property.
>
> \`(c) TERMS AND CONDITIONS- An agreement entered into under section
> (a) with respect to real property under the jurisdiction of a
> landholding agency\--
>
> \`(1) shall have as its primary purpose enhancing the value of the
> real property to the United States;
>
> \`(2) shall provide that any obligation of an agency under the
> agreement is subject to the availability of appropriated funds or the
> availability of receipts authorized by subsection (h);
>
> \`(3) shall be for a term that is not longer than 50 years;
>
> \`(4) shall be negotiated pursuant to such procedures as the
> Administrator considers necessary to ensure the integrity of the
> selection process and to protect the interests of the United States;
>
> \`(5) shall support the goals and objectives set forth in a plan to be
> developed by the landholding agency to improve real property
> management decisions, reduce costs, and maximize portfolio
> performance, which plan shall address, at a minimum, life cycle
> planning and preservation of asset value;
>
> \`(6) may provide a lease option to the United States, to be exercised
> at the discretion of the Administrator, to occupy any office, storage,
> or other space in a facility covered under the agreement that may be
> suitable for use by one or more Federal agencies;
>
> \`(7) shall not provide, unless specifically determined otherwise by
> the Administrator, that ownership of a facility covered under the
> agreement be transferred to the United States at or shortly after the
> expiration of any lease of the facility to the United States, but may
> provide that ownership of the facility be transferred to the United
> States before the expiration of the agreement;
>
> \`(8) shall describe the consideration, duties, and responsibilities
> for which the United States and the non-Federal entity are
> responsible;
>
> \`(9) shall provide\--
>
> \`(A) that the United States will not be liable for any action, debt,
> or liability of any entity created by the agreement; and
>
> \`(B) that the non-Federal entity may not execute any instrument or
> document creating or evidencing any indebtedness unless such
> instrument or document specifically disclaims any liability of the
> United States under the instrument or document; and
>
> \`(10) shall include such other terms and conditions as the
> Administrator considers appropriate.
>
> \`(d) CONSIDERATION-
>
> \`(1) IN GENERAL- An agreement entered into under subsection (a) shall
> be for fair consideration, as determined by the Administrator.
>
> \`(2) IN-KIND CONSIDERATION- Consideration under such an agreement may
> be provided in whole or in part through in-kind consideration,
> including provision of space, goods, or services of benefit to the
> United States. Such services may include construction, repair,
> remodeling, or other physical improvements of Federal property,
> maintenance of Federal property, or the provision of office, storage,
> or other usable space.
>
> \`(e) AUTHORITY TO CONVEY- In carrying out an agreement entered into
> under subsection (a), the Administrator may convey interests in real
> property, by lease or exchange, to a non-Federal entity.
>
> \`(f) RELATIONSHIP TO OTHER LAWS-
>
> \`(1) REQUIREMENT FOR CONGRESSIONAL APPROVAL- An agreement entered
> into under subsection (a) shall not be subject to section 3307.
>
> \`(2) WAIVER AUTHORITY-
>
> \`(A) IN GENERAL- In carrying out this section, the Administrator may
> waive requirements of Federal law relating to the acquisition, lease,
> construction, rehabilitation, operation, maintenance, or use of real
> property if the Administrator determines, in writing, that the waiver
> is necessary to achieve the purposes of this section.
>
> \`(B) LIMITATION- Nothing in subparagraph (A) shall be construed to
> authorize the Administrator to waive a requirement of Federal law
> relating to the environment, labor, or historic preservation.
>
> \`(C) PROHIBITION ON DELEGATION- The Administrator may not delegate
> the authority granted under subparagraph (A).
>
> \`(g) REPORTING REQUIREMENT-
>
> \`(1) IN GENERAL- Before entering into an agreement under subsection
> (a), the Administrator shall transmit to Congress a report on the
> proposed agreement.
>
> \`(2) CONTENTS- A report transmitted under this subsection shall
> include\--
>
> \`(A) a summary of a cost-benefit analysis of the proposed agreement;
>
> \`(B) a statement of the fair market value of any real property
> covered under the proposed agreement;
>
> \`(C) a description of the provisions of the proposed agreement,
> including the consideration received;
>
> \`(D) a description of actions to be taken under the proposed
> agreement to comply with applicable Federal laws, including
> environmental, historic preservation, and labor laws;
>
> \`(E) a description of how the proposed agreement departs from
> standard agency practices relating to the acquisition, lease,
> construction, rehabilitation, operation, maintenance, or use of real
> property otherwise authorized under this part; and
>
> \`(F) a description of the extent to which the proposed agreement is
> consistent with State and local zoning requirements.
>
> \`(3) REVIEW BY CONGRESS- A proposed agreement under subsection (a)
> may not become effective before the earlier of\--
>
> \`(A) the end of a 45-day period of continuous session of Congress
> following the date of the transmittal of a report on the agreement
> under this subsection; or
>
> \`(B) the end of the 60-day period following such date of transmittal.
>
> For purposes of subparagraph (A), continuity of a session of Congress
> is broken only by an adjournment sine die, and there shall be excluded
> from the computation of such 45-day period any day during which either
> House of Congress is not in session during an adjournment of more than
> 5 days to a day certain.
>
> \`(h) PROCEEDS-
>
> \`(1) DEPOSIT IN FEDERAL BUILDINGS FUND-
>
> \`(A) PROCEEDS FROM REAL PROPERTY OF GSA- Net proceeds from an
> agreement entered into under subsection (a) involving real property
> under the jurisdiction of the General Services Administration shall be
> deposited into the Federal Buildings Fund.
>
> \`(B) PROCEEDS FROM REAL PROPERTY OF OTHER LANDHOLDING AGENCIES- Net
> proceeds from an agreement entered into under subsection (a) involving
> real property under the jurisdiction of a landholding agency other
> than the General Services Administration shall be deposited into a
> separate account in the Federal Buildings Fund to be established for
> the landholding agency by the Secretary of the Treasury.
>
> \`(2) ADMINISTRATION OF AMOUNTS-
>
> \`(A) IN GENERAL- Amounts deposited into the Federal Buildings Fund
> under this subsection, including amounts deposited into an account
> established for a landholding agency under paragraph (1)(B), shall be
> administered and expended, subject to appropriations Acts, as part of
> the Federal Buildings Fund.
>
> \`(B) USE OF AMOUNTS IN AGENCY ACCOUNTS- Amounts deposited into an
> account established for a landholding agency under paragraph (1)(B)
> are authorized to be appropriated to the Administrator of General
> Services for real property management and related activities of the
> landholding agency, at the written request of the head of the
> landholding agency.
>
> \`(3) RECOVERY OF EXPENSES-
>
> \`(A) EXPENSES OF GSA- The Administrator may retain from the proceeds
> of any agreement entered into under subsection (a) amounts necessary
> to recover the expenses incurred by the Administrator with respect to
> the agreement. Such amounts shall be deposited into the account in the
> Treasury from which the Administrator incurred the expenses.
>
> \`(B) EXPENSES OF OTHER LANDHOLDING AGENCIES- In the case of an
> agreement entered into under subsection (a) involving real property
> under the jurisdiction of a landholding agency other than the General
> Services Administration, the Administrator shall reimburse the agency,
> out of the proceeds of the agreement, for expenses incurred by the
> agency with respect to the real property. Such amounts shall be
> deposited into the account in the Treasury from which the agency
> incurred the expenses.
>
> \`(4) NET PROCEEDS- In this section, the term \`net proceeds\' means,
> with respect to an agreement entered into under this section, the
> proceeds from the agreement minus the expenses incurred by the General
> Services Administration and any other landholding agency with respect
> to the agreement.
>
> \`(i) JURISDICTION OVER REAL PROPERTY- For purposes of this section, a
> landholding agency shall be considered to have jurisdiction over real
> property if the agency has jurisdiction, custody, and control of the
> property.

#### \`Sec. 3903. Sunset

> \`(a) IN GENERAL- The authority of the Administrator of General
> Services to enter into an agreement under section 3902 shall expire on
> the last day of the 6-year period beginning on the date of enactment
> of this chapter.
>
> \`(b) AGREEMENTS TRANSMITTED TO CONGRESS- Subsection (a) shall not
> apply to an agreement for which the Administrator has transmitted a
> report to Congress under section 3902(g) before the last day of the
> 6-year period referred to in subsection (a).
>
> \`(c) EXISTING AGREEMENTS- Subsection (a) shall not affect the
> Administrator\'s authority to carry out the Administrator\'s
> responsibilities under an agreement entered into before the last day
> of the 6-year period referred to in subsection (a) or an agreement
> described in subsection (b).\'.
>
> \(b\) CONFORMING AMENDMENT- The analysis for part A of subtitle II of
> title 40, United States Code, is amended by adding at the end the
> following:
>
> \`39. FEDERAL REAL PROPERTY DEVELOPMENT

\--3901\'.

### SEC. 3. SCOPE AND CONSTRUCTION.

> The authorities granted by this Act (including the amendments made by
> this Act) to the heads of Federal agencies for the management of real
> property and the conduct of transactions involving such property,
> shall be in addition to, and not in lieu of, any authorities provided
> in any law existing on the date of enactment of this Act. Except as
> expressly provided herein, nothing in this Act (including the
> amendments made by this Act) shall be construed to repeal or supersede
> any such authorities.

### SEC. 4. NO WAIVER.

> Nothing in this Act (including the amendments made by this Act) shall
> be construed to limit or waive any right, remedy, immunity, or
> jurisdiction of any Federal agency or any claim, judgment, lien, or
> benefit due the Government of the United States.

### SEC. 5. REPORT OF COMPTROLLER GENERAL.

> Not later than 4 years after the date of enactment of this Act, the
> Comptroller General of the United States shall submit to Congress a
> report on the use by Administrator of General Services of the
> authorities provided by this Act.

### SEC. 6. REPEAL.

> \(a\) IN GENERAL- Section 1302 of title 40, United States Code, is
> repealed.
>
> \(b\) CONFORMING AMENDMENT- The analysis for chapter 13 of such title
> is amended by striking the item relating to section 1302.

*END*