SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Base Closure Reuse Reform Act of 
1997''.

SEC. 2. REFORM OF PROPERTY DISPOSAL REQUIREMENTS UNDER BASE CLOSURE 
              LAWS TO PROMOTE ECONOMIC DEVELOPMENT AND PROTECT CLOSING 
              INSTALLATIONS.

    (a) Applicability of Excess Profits Clause.--
            (1) 1990 Law.--Section 2905(b)(2)(A)(i) of the Defense Base 
        Closure and Realignment Act of 1990 (part A of title XXIX of 
        Public Law 101-510; 10 U.S.C. 2687 note) is amended by 
        inserting before the semicolon the following: ``, except that 
        provisions of such Act (and regulations under such Act) 
        intended to prevent excess profits arising from the receipt of 
        surplus property shall not apply''.
            (2) 1988 Law.--Section 204(b)(2)(A)(i) of the Defense 
        Authorization Amendments and Base Closure and Realignment Act 
        (Public Law 100-526; 10 U.S.C. 2687 note) is amended by 
        inserting before the semicolon the following: ``, except that 
        provisions of such Act (and regulations under such Act) 
        intended to prevent excess profits arising from the receipt of 
        surplus property shall not apply''.
    (b) Interim Lease Authority.--Section 2667(f) of title 10, United 
States Code, is amended--
            (1) in paragraph (1), by adding at the end the following 
        new sentences: ``Subject to paragraph (5)(A), the Secretary 
        concerned shall permit the lessee to make capital improvements 
        to the leased property to facilitate economic development of 
        the property and may not condition such permission by requiring 
        the removal of the improvements upon the expiration of the 
        lease. However, the United States shall not be responsible for 
        the cost of the improvements if the property reverts to United 
        States control upon the expiration of the lease. The Secretary 
        concerned shall also permit the lessee to sublease the property 
        for profit during the term of the interim lease.''; and
            (2) in paragraph (5)--
                    (A) in subparagraph (B), by striking out the first 
                sentence and inserting in lieu thereof the following: 
                ``Notwithstanding subsection (b)(2), an interim lease 
                entered into under this subsection shall give the 
                lessee the first right to acquire the property at the 
                time of final disposal of the property. If there has 
                been more than one interim lessee with respect to the 
                property, the Secretary shall develop a mechanism to 
                select between competing lessees.''; and
                    (B) in subparagraph (C), by striking out 
                ``Subparagraphs (A) and (B)'' and inserting in lieu 
                thereof ``Subparagraph (A)''.
    (c) Lease Back Authority.--Section 2905(b)(4)(C) of the Defense 
Base Closure and Realignment Act of 1990 (part A of title XXIX of 
Public Law 101-510; 10 U.S.C. 2687 note) is amended--
            (1) in clause (i)--
                    (A) by striking out the last sentence; and
                    (B) by adding at the end the following new 
                sentence: ``A component of the military department 
                having jurisdiction over the installation before 
                closure or realignment is not prohibited from entering 
                into a lease under this clause with respect to property 
                at that installation.'';
            (2) in clause (ii), by adding at the end the following new 
        sentence: ``For purposes of the transfer of the real property 
        to the redevelopment authority and the subsequent lease back, 
        the valuation of the real property shall be deemed to be 
        zero.''; and
            (3) by adding at the end the following new clause:
    ``(v) Subject to clause (iv), the Secretary shall give the 
redevelopment authority the first right to acquire property subject to 
a lease under clause (i) upon the termination or expiration of the 
lease. If, before the lease is actually entered into, the department or 
agency concerned determines that it does not require or desire the 
property and no other department or agency of the Federal Government 
seeks to become the lessee, the redevelopment authority shall have the 
first right to acquire the property. Subparagraph (B) shall apply to a 
transfer to the redevelopment authority under this clause.''.
    (d) Authority to Contract for Certain Services.--
            (1) 1990 Law.--Section 2905(b)(8) of the Defense Base 
        Closure and Realignment Act of 1990 (part A of title XXIX of 
        Public Law 101-510; 10 U.S.C. 2687 note) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking out ``local governments'' 
                        and inserting in lieu thereof ``local 
                        governments and redevelopment authorities''; 
                        and
                            (ii) by striking out ``by such 
                        governments'';
                    (B) by striking out subparagraph (C) and inserting 
                in lieu thereof the following new subparagraph:
    ``(C) The Secretary may exercise the authority under subparagraph 
(A) with respect to an installation at any time after the date on which 
the installation is approved for closure under this part.''; and
                    (C) in subparagraph (D)--
                            (i) by striking out ``for services entered 
                        into with a local government''; and
                            (ii) by striking out ``under the 
                        jurisdiction of such government'' and inserting 
                        in lieu thereof ``of the installation''.
            (2) 1988 Law.--Section 204(b)(8) of the Defense 
        Authorization Amendments and Base Closure and Realignment Act 
        (Public Law 100-526; 10 U.S.C. 2687 note) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking out ``local governments'' 
                        and inserting in lieu thereof ``local 
                        governments and redevelopment authorities''; 
                        and
                            (ii) by striking out ``by such 
                        governments'';
                    (B) by striking out subparagraph (C) and inserting 
                in lieu thereof the following new subparagraph:
    ``(C) The Secretary may exercise the authority under subparagraph 
(A) with respect to an installation at any time after the date on which 
the installation is approved for closure under this title.''; and
                    (C) in subparagraph (D)--
                            (i) by striking out ``for services entered 
                        into with a local government''; and
                            (ii) by striking out ``under the 
                        jurisdiction of such government'' and inserting 
                        in lieu thereof ``of the installation''.
Base Closure Reuse Reform Act of 1997 - Amends the Defense Base Closure and Realignment Act of 1990 and the Defense Authorization Amendments and Base Closure and Realignment Act to make inapplicable to the sale of real property at a closed military installation provisions of the Federal Property and Administrative Services Act of 1949 which are intended to prevent excess profits arising from the receipt of surplus Federal property. 
Directs the Secretary of the military department concerned to permit the lessees of real and personal property located at a current or future closed military installation to make capital improvements to such property in order to facilitate its economic development.  Sets forth conditions with respect to the cost and removal of such improvements upon lease expiration.  Directs such Secretary to permit a lessee to sublet the property for profit during the term of an interim lease (a lease which runs before a final property disposal determination).  Allows an interim lessee the first right to acquire the property at the time of its final disposal. 
Approves the use of a lease with respect to property at a closed military installation that is transferred to the redevelopment authority of such installation.  Directs the Secretary of Defense to give to such authority the first right to acquire such property upon lease termination or expiration. 
Authorizes the Secretary to enter into an agreement for the provision by such authority of police, fire, airfield operation, and other community services at the military installation involved.
Base Closure Reuse Reform Act of 1997