IB 

Union Calendar No. 412 

110TH CONGRESS 

2D SESSION H. R. 5787 

[Report No. 110–651] 

To amend title 40, United States Code, to enhance authorities with regard 

to real property that has yet to be reported excess, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 14, 2008 

Mr. MOORE of Kansas (for himself and Mr. DUNCAN) introduced the following 

bill; which was referred to the Committee on Oversight and Government 

Reform 

MAY 15, 2008 

Additional sponsors: Mrs. BOYDA of Kansas, Mr. BURTON of Indiana, Mr. 

SHAYS, Mr. TOWNS, Mr. WAXMAN, Mr. BOYD of Florida, Ms. HARMAN, 

Mr. HILL, and Mr. TANNER

MAY 15, 2008 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on April 14, 2008] 

A BILL 

To amend title 40, United States Code, to enhance authorities with regard to real property that has yet to be 

reported excess, and for other purposes. 


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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 ‘‘Federal Real Property 

5 Disposal Enhancement Act of 2008’’. 

6 SEC. 2. FINDINGS AND PURPOSES. 

7 (a) FINDINGS.—Congress finds the following: 

8 (1) In January 2003, the Government Account9 ability Office identified Federal real property as a 

10 high-risk area, citing excess property as a long-stand11 ing problem. 

12 (2) The magnitude of the problem with excess 

13 Federal real property continues to put the government 

14 at risk for lost dollars and missed opportunities. 

15 (3) The Administration has stated its goal is to 

16 reduce the size of the Federal real property inventory 

17 by 5 percent, or $15 billion, by disposing of unneeded 

18 assets by 2015. 

19 (4) The Federal inventory includes many prop20 erties that are no longer relevant to agencies’ missions 

21 and agencies are spending billions of dollars to main22 tain these unneeded properties. 

23 (5) The costs of preparing a property for transfer 

24 or sale continue to hamper some agencies’ efforts to 

25 address their unneeded properties and serve as a disVerDate Aug 31 2005 01:35 May 16, 2008 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6203 E:\BILLS\H5787.RH H5787

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1 incentive to disposal because, in the short-term, it can 

2 be more beneficial economically to maintain a prop3 erty that is not being used than to dispose of it. 

4 (6) Agencies should give greater attention to 

5 right-sizing their real property portfolios. 

6 (b) PURPOSE.—The purpose of this Act is to reduce 

7 the Federal inventory of unneeded and costly property. 

8 SEC. 3. DUTIES OF THE GENERAL SERVICES ADMINISTRA9 TION AND EXECUTIVE AGENCIES. 

10 (a) IN GENERAL.—Section 524 of title 40, United 

11 States Code, is amended to read as follows: 

12 ‘‘§ 524. Duties of the General Services Administration 

13 and executive agencies 

14 ‘‘(a) DUTIES OF THE GENERAL SERVICES ADMINIS15 TRATION.— 

16 ‘‘(1) GUIDANCE.—The Administrator shall issue 

17 guidance for the development and implementation of 

18 agency real property plans. Such guidance shall in19 clude recommendations on— 

20 ‘‘(A) how to identify excess properties; 

21 ‘‘(B) how to evaluate the costs and benefits 

22 involved with disposing of real property; 

23 ‘‘(C) how to prioritize disposal decisions 

24 based on agency missions and anticipated future 

25 need for holdings; and 


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1 ‘‘(D) how best to dispose of those properties 

2 identified as excess to the needs of the agency. 

3 ‘‘(2) ANNUAL REPORT.—The Administrator shall 

4 submit an annual report, for each of the first 5 years 

5 after 2008, to the Committee on Oversight and Gov6 ernment Reform of the House of Representatives and 

7 the Committee on Homeland Security and Govern8 mental Affairs of the Senate, based on data submitted 

9 from all executive agencies, detailing executive agency 

10 efforts to reduce their real property assets. 

11 ‘‘(3) ASSISTANCE.—The Administrator shall as12 sist executive agencies in the identification and dis13 posal of excess real property. 

14 ‘‘(b) DUTIES OF EXECUTIVE AGENCIES.— 

15 ‘‘(1) IN GENERAL.—Each executive agency 

16 shall— 

17 ‘‘(A) maintain adequate inventory controls 

18 and accountability systems for property under 

19 its control; 

20 ‘‘(B) continuously survey property under its 

21 control to identify excess property; 

22 ‘‘(C) promptly report excess property to the 

23 Administrator; 

24 ‘‘(D) perform the care and handling of ex25 cess property; and 


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1 ‘‘(E) transfer or dispose of excess property 

2 as promptly as possible in accordance with au3 thority delegated and regulations prescribed by 

4 the Administrator. 

5 ‘‘(2) SPECIFIC REQUIREMENTS WITH RESPECT

6 TO REAL PROPERTY.—With respect to real property, 

7 each executive agency shall— 

8 ‘‘(A) develop and implement a real property 

9 plan in order to identify properties to declare as 

10 excess using the guidance issued under subsection 

11 (a)(1); 

12 ‘‘(B) identify and categorize all real prop13 erty owned, leased, or otherwise managed by the 

14 agency; 

15 ‘‘(C) establish adequate goals and incentives 

16 that lead the agency to reduce excess real prop17 erty in its inventory; 

18 ‘‘(D) when appropriate, use the authorities 

19 in section 572(a)(2)(B) of this title in order to 

20 identify and prepare real property to be reported 

21 as excess. 

22 ‘‘(3) ADDITIONAL REQUIREMENTS.—Each execu23 tive agency, as far as practicable, shall— 

24 ‘‘(A) reassign property to another activity 

25 within the agency when the property is no longer 


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1 required for the purposes of the appropriation 

2 used to make the purchase; 

3 ‘‘(B) transfer excess property under its con4 trol to other Federal agencies and to organiza5 tions specified in section 321(c)(2) of this title; 

6 and 

7 ‘‘(C) obtain excess properties from other 

8 Federal agencies to meet mission needs before ac9 quiring non-Federal property.’’. 

10 (b) CLERICAL AMENDMENT.—The item relating to sec11 tion 524 in the table of sections at the beginning of chapter 

12 5 of such title is amended to read as follows: 

‘‘524. Duties of the General Services Administration and executive agencies.’’. 

13 SEC. 4. ENHANCED AUTHORITIES WITH REGARD TO PRE14 PARING PROPERTIES TO BE REPORTED AS 

15 EXCESS. 

16 Section 572(a)(2) of title 40, United States Code, is 

17 amended— 

18 (1) by redesignating subparagraphs (B) and (C) 

19 as subparagraphs (C) and (D), respectively; and 

20 (2) by inserting after subparagraph (A) the fol21 lowing new subparagraph: 

22 ‘‘(B) ADDITIONAL AUTHORITY.—(i) From 

23 the fund described in paragraph (1), subject to 

24 clause (iv), the Administrator may obligate an 

25 amount to pay the direct and indirect costs reVerDate Aug 31 2005 01:35 May 16, 2008 Jkt 069200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H5787.RH H5787

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1 lated to identifying and preparing properties to 

2 be reported excess by another agency. 

3 ‘‘(ii) The General Services Administration 

4 may be reimbursed from the proceeds of the sale 

5 of such properties for such costs. 

6 ‘‘(iii) Net proceeds shall be dispersed pursu7 ant to section 571 of this title. 

8 ‘‘(iv) The authority under clause (i) to obli9 gate funds to prepare properties to be reported 

10 excess does not include the authority to convey 

11 such properties by sale, lease, exchange, or other12 wise, including through leaseback arrangements. 

13 ‘‘(v) Nothing in this subparagraph is in14 tended to affect subparagraph (D).’’. 

15 SEC. 5. ENHANCED AUTHORITIES WITH REGARD TO RE16 VERTED REAL PROPERTY. 

17 (a) AUTHORITY TO PAY EXPENSES RELATED TO RE18 VERTED REAL PROPERTY.—Section 572(a)(2)(A) of title 

19 40, United States Code, is amended by adding at the end 

20 the following: 

21 ‘‘(iv) The direct and indirect costs as22 sociated with the reversion, custody, and 

23 disposal of reverted real property.’’. 


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1 (b) REQUIREMENTS RELATED TO SALES OF RE2 VERTED PROPERTY UNDER SECTION 550.—Section 

3 550(b)(1) of title 40, United States Code, is amended— 

4 (1) by inserting ‘‘(A)’’ after ‘‘(1) IN GENERAL.— 

5 ’’; and 

6 (2) by adding at the end the following: ‘‘If the 

7 official, in consultation with the Administrator, rec8 ommends reversion of the property, the Administrator 

9 shall take control of such property, and, subject to 

10 subparagraph (B), sell it at fair market value for 

11 cash and not by lease, exchange, or leaseback arrange12 ments. 

13 ‘‘(B) Prior to sale, the Administrator shall make 

14 such property available to State and local govern15 ments and certain non-profit institutions or organi16 zations pursuant to this section and sections 553 and 

17 554 of this title.’’. 

18 (c) REQUIREMENTS RELATED TO SALES OF RE19 VERTED PROPERTY UNDER SECTION 553.—Section 553(e) 

20 of title 40, United States Code, is amended— 

21 (1) by inserting ‘‘(1)’’ after ‘‘THIS SECTION.—’’; 

22 and 

23 (2) by adding at the end the following: ‘‘If the 

24 Administrator determines that reversion of the prop25 erty is necessary to enforce compliance with the terms 


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1 of the conveyance, the Administrator shall take con2 trol of such property and, subject to paragraph (2), 

3 sell it at fair market value for cash and not by lease, 

4 exchange, or leaseback arrangements. 

5 ‘‘(2) Prior to sale, the Administrator shall make such 

6 property available to State and local governments and cer7 tain non-profit institutions or organizations pursuant to 

8 this section and sections 550 and 554 of this title.’’. 

9 (d) REQUIREMENTS RELATED TO SALES OF RE10 VERTED PROPERTY UNDER SECTION 554.—Section 554(f) 

11 of title 40, United States Code, is amended— 

12 (1) by inserting ‘‘(1)’’ after ‘‘THIS SECTION.—’’; 

13 and 

14 (2) by adding at the end the following: ‘‘If the 

15 Secretary, in consultation with the Administrator, 

16 recommends reversion of the property, the Adminis17 trator shall take control of such property and, subject 

18 to paragraph (2), sell it at fair market value for cash 

19 and not by lease, exchange, or leaseback arrange20 ments. 

21 ‘‘(2) Prior to sale, the Administrator shall make such 

22 property available to State and local governments and cer23 tain non-profit institutions or organizations pursuant to 

24 this section and sections 550 and 553 of this title.’’. 


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1 SEC. 6. AGENCY RETENTION OF PROCEEDS. 

2 The text of section 571 of title 40, United States Code, 

3 is amended to read as follows: 

4 ‘‘(a) DEPOSIT OF PROCEEDS.—Proceeds described in 

5 subsection (d) shall be deposited into the appropriate real 

6 property account of the agency that had custody and ac7 countability for the real property. Such funds shall be ex8 pended only as authorized in annual appropriations Acts 

9 and only for activities as described in section 524(b) of this 

10 title and disposal activities, including paying costs in11 curred by the General Services Administration for any dis12 posal-related activity authorized by this title. Proceeds shall 

13 not be expended for activities or projects subject to the re14 quirements of section 3307 of this title. 

15 ‘‘(b) EFFECT ON OTHER SECTIONS.—Nothing in this 

16 section is intended to affect section 572(b) or 574 of this 

17 title. 

18 ‘‘(c) DISPOSAL AGENCY FOR REVERTED PROPERTY.— 

19 For the purposes of this section, the General Services Ad20 ministration, as the disposal agency, shall be treated as the 

21 agency with custody and accountability for properties 

22 which revert to the United States under sections 550, 553, 

23 and 554 of this title. 

24 ‘‘(d) PROCEEDS.—The proceeds referred to in sub25 section (a) are proceeds under this chapter from a— 


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1 ‘‘(1) transfer of excess property to a Federal 

2 agency for agency use; or 

3 ‘‘(2) sale, lease, or other disposition of surplus 

4 property.’’. 


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Union Calendar No. 412 

110TH CONGRESS 

2D SESSION H. R. 5787 

[Report No. 110

–651] 

A BILL 

To amend title 40, United States Code, to enhance 

yet to be reported excess, and for other purposes. authorities with regard to real property that has 

MAY 15, 2008 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


erowe on PRODPC61 with BILLS