106TH CONGRESS

1ST SESSION H. R. 172

To amend the base closure laws to reform the process by which property

at military installations being closed or realigned is made available for

economic redevelopment and to improve the ability of the Secretary

of Defense to contract for protective services at installations being closed.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 6, 1999

Mr. MCCOLLUM (for himself, Mr. SAXTON, Mr. MICA, and Mr. MCHUGH) introduced the following bill; which was referred to the Committee on

Armed Services

A BILL

To amend the base closure laws to reform the process by

which property at military installations being closed or

realigned is made available for economic redevelopment

and to improve the ability of the Secretary of Defense

to contract for protective services at installations being

closed.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Base Closure Reuse

5 Reform Act of 1999’’.
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1 SEC. 2. REFORM OF PROPERTY DISPOSAL REQUIREMENTS

2 UNDER BASE CLOSURE LAWS TO PROMOTE

3 ECONOMIC DEVELOPMENT AND PROTECT

4 CLOSING INSTALLATIONS.

5 (a) APPLICABILITY OF EXCESS PROFITS CLAUSE.—

6 (1) 1990 LAW.—Section 2905(b)(2)(A)(i) of

7 the Defense Base Closure and Realignment Act of

8 1990 (part A of title XXIX of Public Law 101–510;

9 10 U.S.C. 2687 note) is amended by inserting before

10 the semicolon the following: ‘‘, except that provisions

11 of such Act (and regulations under such Act) in12 tended to prevent excess profits arising from the re13 ceipt of surplus property shall not apply’’.

14 (2) 1988 LAW.—Section 204(b)(2)(A)(i) of the

15 Defense Authorization Amendments and Base Clo16 sure and Realignment Act (Public Law 100–526; 10

17 U.S.C. 2687 note) is amended by inserting before

18 the semicolon the following: ‘‘, except that provisions

19 of such Act (and regulations under such Act) in20 tended to prevent excess profits arising from the re21 ceipt of surplus property shall not apply’’.

22 (b) INTERIM LEASE AUTHORITY.—Section 2667(f) of

23 title 10, United States Code, is amended—

24 (1) in paragraph (1), by adding at the end the

25 following new sentences: ‘‘Subject to paragraph

26 (5)(A), the Secretary concerned shall permit the les-
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1 see to make capital improvements to the leased

2 property to facilitate economic development of the

3 property and may not condition such permission by

4 requiring the removal of the improvements upon the

5 expiration of the lease. However, the United States

6 shall not be responsible for the cost of the improve7 ments if the property reverts to United States con8 trol upon the expiration of the lease. The Secretary

9 concerned shall also permit the lessee to sublease the

10 property for profit during the term of the interim

11 lease.’’; and

12 (2) in paragraph (5)—

13 (A) in subparagraph (B), by striking out

14 the first sentence and inserting in lieu thereof

15 the following: ‘‘Notwithstanding subsection

16 (b)(2), an interim lease entered into under this

17 subsection shall give the lessee the first right to

18 acquire the property at the time of final dis19 posal of the property. If there has been more

20 than one interim lessee with respect to the

21 property, the Secretary shall develop a mecha22 nism to select between competing lessees.’’; and

23 (B) in subparagraph (C), by striking out

24 ‘‘Subparagraphs (A) and (B)’’ and inserting in

25 lieu thereof ‘‘Subparagraph (A)’’.
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1 (c) LEASE BACK AUTHORITY.—Section

2 2905(b)(4)(C) of the Defense Base Closure and Realign3 ment Act of 1990 (part A of title XXIX of Public Law

4 101–510; 10 U.S.C. 2687 note) is amended—

5 (1) in clause (i)—

6 (A) by striking out the last sentence; and

7 (B) by adding at the end the following new

8 sentence: ‘‘A component of the military depart9 ment having jurisdiction over the installation

10 before closure or realignment is not prohibited

11 from entering into a lease under this clause

12 with respect to property at that installation.’’;

13 (2) in clause (ii), by adding at the end the fol14 lowing new sentence: ‘‘For purposes of the transfer

15 of the real property to the redevelopment authority

16 and the subsequent lease back, the valuation of the

17 real property shall be deemed to be zero.’’; and

18 (3) by adding at the end the following new

19 clause:

20 ‘‘(v) Subject to clause (iv), upon the termination or

21 expiration of a lease under clause (i), the Secretary shall

22 give the redevelopment authority for the installation in23 volved the first right to acquire the property that was sub24 ject to the lease. If, before the lease is actually entered

25 into, the department or agency concerned determines that
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1 it does not require or desire the property and no other

2 department or agency of the Federal Government seeks

3 to become the lessee, the redevelopment authority shall

4 have the first right to acquire the property. Subparagraph

5 (B) shall apply to a transfer to the redevelopment author6 ity under this clause.’’.

7 (d) AUTHORITY TO CONTRACT FOR CERTAIN SERV8 ICES.—

9 (1) 1990 LAW.—Section 2905(b)(8) of the De10 fense Base Closure and Realignment Act of 1990

11 (part A of title XXIX of Public Law 101–510; 10

12 U.S.C. 2687 note) is amended—

13 (A) in subparagraph (A)—

14 (i) by striking out ‘‘local govern15 ments’’ and inserting in lieu thereof ‘‘local

16 governments and redevelopment authori17 ties’’; and

18 (ii) by striking out ‘‘by such govern19 ments’’;

20 (B) by striking out subparagraph (C) and

21 inserting in lieu thereof the following new sub22 paragraph:

23 ‘‘(C) The Secretary may exercise the authority under

24 subparagraph (A) with respect to an installation at any
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1 time after the date on which the installation is approved

2 for closure under this part.’’; and

3 (C) in subparagraph (D)—

4 (i) by striking out ‘‘for services en5 tered into with a local government’’; and

6 (ii) by striking out ‘‘under the juris7 diction of such government’’ and inserting

8 in lieu thereof ‘‘of the installation’’.

9 (2) 1988 LAW.—Section 204(b)(8) of the De10 fense Authorization Amendments and Base Closure

11 and Realignment Act (Public Law 100–526; 10

12 U.S.C. 2687 note) is amended—

13 (A) in subparagraph (A)—

14 (i) by striking out ‘‘local govern15 ments’’ and inserting in lieu thereof ‘‘local

16 governments and redevelopment authori17 ties’’; and

18 (ii) by striking out ‘‘by such govern19 ments’’;

20 (B) by striking out subparagraph (C) and

21 inserting in lieu thereof the following new sub22 paragraph:

23 ‘‘(C) The Secretary may exercise the authority under

24 subparagraph (A) with respect to an installation at any
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1 time after the date on which the installation is approved

2 for closure under this title.’’; and

3 (C) in subparagraph (D)—

4 (i) by striking out ‘‘for services en5 tered into with a local government’’; and

6 (ii) by striking out ‘‘under the juris7 diction of such government’’ and inserting

8 in lieu thereof ‘‘of the installation’’.

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