To authorize the Administrator of General Services and the Secretary of the Interior to convey certain Federal property to the District of Columbia to increase the District's taxable property base as compensation for a structural fiscal imbalance caused by Federal mandates.

Summary: Fair Land Transfer Compensation Act - Requires the Administrator of General Services and the Secretary of the Interior to convey to the District of Columbia, without consideration, all right, title, and interest of the United States in and to U.S. Reservation 13 and Poplar Point, Anacostia Park, respectively.

Requires the Administrator and the Secretary each to: (1) conduct an appraisal of the property (including improvements if appropriate), based on fair market value; and (2) report to Congress on the results, including an estimate of all financial benefits to be generated on an annual basis to the District, and an assessment of the impact the conveyance will have in reducing the structural financial imbalance of the District.

Exempts the United States from any liability or responsibility pursuant to such transfer for any additional remedial action: (1) with respect to hazardous substances not existing on the property as of the date of conveyance, unless the presence of such hazardous substances on the property was caused by the United States; or (2) caused, required, or arising out of actions of the District of Columbia or any of the District's agents, contractors, or assigns.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Land Transfer Compensation 
Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) This Act is based on--
                    (A) the findings of a report prepared by the 
                Government Accountability Office (referred to in this 
                section as the ``GAO'') in May 2003, that found that 
                the District of Columbia has a structural fiscal 
                imbalance caused by Federal mandates; and
                    (B) a bill, the District of Columbia Fair Federal 
                Compensation Act of 2005, as introduced in this 
                Congress, that authorizes Federal compensation for this 
                structural imbalance.
            (2) The GAO found that the District's structural imbalance 
        is the difference between the costs to the District of 
        providing an average level of services and the District's total 
        revenue capacity.
            (3) In addition to the 2003 GAO study, two other studies 
        (McKinsey, March 2002, and Brookings, October 2002), also have 
        determined that the District of Columbia has a substantial 
        structural fiscal imbalance.
            (4) The District's structural fiscal imbalance, is 
        exclusively Federal in origin and beyond the ability of the 
        District government to correct through improved management or 
        other means.
            (5) The cost to the District of providing an average level 
        of services significantly exceeds--
                    (A) the national average, as well as the average of 
                all 50 States for providing such services; and
                    (B) the District's capacity to raise the necessary 
                revenue.
            (6) The gap between the cost for average services and tax 
        revenue raised in the District is an annual structural 
        imbalance of between $470,000,000 and $1,100,000,000.
            (7) The causes of the District's fiscal imbalance, in part, 
        are--
                    (A) the costs to the District of providing services 
                to the Federal Government;
                    (B) the tax exempt status of more than 40 percent 
                of real property in the District, which is either owned 
                or specifically exempted by the Federal Government; and
                    (C) the District's responsibility for the cost of 
                several State functions such as special education, 
                although the District is a city without the broad tax 
                base of a State.
            (8) The District, to cover the cost of the structural 
        fiscal imbalance, assumes unique burdens that inhibit economic 
        and population stability and growth, including--
                    (A) a tax burden that ranks among the highest in 
                the country;
                    (B) the highest debt service in the country among 
                all of the State and local jurisdictions; and
                    (C) the inability to make major capital 
                improvements and investments in schools, roads, and 
                other necessary facilities.
            (9) According to the GAO, the options available to address 
        the structural imbalance are--
                    (A) to expand the District's tax base;
                    (B) to provide additional Federal financial support 
                to the District; and
                    (C) to increase the role of the Federal Government 
                in helping the District maintain fiscal balance.
            (10) The land transfers authorized in this Act would create 
        a significantly new revenue stream that would be equivalent to 
        a partial payment to the District for the annual structural 
        imbalance provided for in the District of Columbia Fair Federal 
        Compensation Act of 2005, as introduced in this Congress.

SEC. 3. PURPOSE.

    The purpose of this Act is to provide an efficient mechanism for 
the conveyance of Federal property to the District of Columbia in order 
to decrease the structural imbalance by increasing the District's 
taxable property base and opportunities by the District to pursue 
economic development.

SEC. 4. CONVEYANCE OF RESERVATION 13 TO DISTRICT OF COLUMBIA.

    (a) In General.--Subject to the requirements of this Act, the 
Administrator of General Services shall convey to the District of 
Columbia, without consideration, all right, title, and interest of the 
United States in and to United States Reservation 13, the property 
consisting of 65.73 acres of land in the District of Columbia bounded 
by Independence Avenue Southeast on the north; 19th Street Southeast on 
the west; G Street Southeast on the south; and United States 
Reservation 343 on the east.
    (b) Appraisal.--The Administrator, in consultation with the 
District of Columbia, shall--
            (1) not later than 30 days after the date of enactment of 
        this Act, conduct an appraisal of the property described in 
        subsection (a) based on fair market value; and
            (2) not later than 180 days after the appraisal is 
        completed, transmit to Congress a report containing--
                    (A) the results of the appraisal, including an 
                estimate of all financial benefits to be generated on 
                an annual basis to the District of Columbia; and
                    (B) an assessment of the impact the conveyance will 
                have in reducing the structural financial imbalance of 
                the District.

SEC. 5. CONVEYANCE OF POPLAR POINT TO DISTRICT OF COLUMBIA.

    (a) In General.--Subject to the requirements of this Act, the 
Secretary of the Interior shall convey to the District of Columbia, 
without consideration, all right, title, and interest of the United 
States in and to Poplar Point, Anacostia Park, the property in the 
District of Columbia bounded by the Anacostia River on the west; the 
Weeks Memorial Bridge on the north; the Anacostia Freeway on the east; 
and Howard Road and the Frederick Douglas Bridge on the south.
    (b) Appraisal.--The Secretary, in consultation with the District of 
Columbia, shall--
            (1) not later than 30 days after the date of enactment of 
        this Act, conduct an appraisal of the property described in 
        subsection (a), including any improvements thereto, based on 
        fair market value; and
            (2) not later than 180 days after the appraisal is 
        completed, transmit to Congress a report containing--
                    (A) the results of the appraisal, including an 
                estimate of all benefits to be generated on an annual 
                basis to the District of Columbia; and
                    (B) an assessment of the impact the conveyance will 
                have in reducing the structural financial imbalance of 
                the District.

SEC. 6. LIMITATIONS ON CONVEYANCES.

    (a) In General.--A conveyance under section 4 or 5 shall contain 
the covenants required by section 120(h) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9620).
    (b) Limitation on Liability.--The United States shall not be liable 
or responsible pursuant to subsection (a) for any additional remedial 
action--
            (1) with respect to hazardous substances not existing on 
        the property as of the date of conveyance, unless the presence 
        of such hazardous substances on the property was caused by the 
        United States; or
            (2) caused, required, or arising out of actions of the 
        District of Columbia or any of the District's agents, 
        contractors, or assigns.