I 

110TH CONGRESS 

2D SESSION H. R. 5787 

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 

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. 

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’’. 


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1 SEC. 2. ENHANCED AUTHORITIES WITH REGARD TO PRE2 PARING PROPERTIES TO BE REPORTED AS 

3 EXCESS. 

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

5 amended— 

6 (1) by redesignating subparagraphs (B) and 

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

8 (2) by inserting after subparagraph (A) the fol9 lowing new subparagraph: 

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

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

12 clause (iv), the Administrator may obligate an 

13 amount to pay, on a reimbursable basis, the di14 rect and indirect costs related to identifying 

15 and preparing properties to be reported excess 

16 by another agency. 

17 ‘‘(ii) The General Services Administration 

18 may be reimbursed from the proceeds of the 

19 sale of such properties for such costs. 

20 ‘‘(iii) After reimbursement of such costs, 

21 the balance of the proceeds shall be dispersed 

22 pursuant to section 571 of this title. 

23 ‘‘(iv) The authority under clause (i) to ob24 ligate funds to prepare properties to be reported 

25 excess does not include the authority to convey 

26 such properties by sale, lease, exchange, or othVerDate Aug 31 2005 05:37 Apr 15, 2008 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5787.IH H5787

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1 erwise, including through leaseback arrange2 ments. 

3 ‘‘(v) Nothing in this subparagraph is in4 tended to affect subparagraph (D).’’. 

5 SEC. 3. ENHANCED AUTHORITIES WITH REGARD TO RE6 VERTED REAL PROPERTY. 

7 (a) AUTHORITY TO PAY EXPENSES RELATED TO RE8 VERTED REAL PROPERTY.—Section 572(a)(2)(A) of title 

9 40, United States Code, is amended by adding at the end 

10 the following: 

11 ‘‘(iv) The direct and indirect costs as12 sociated with the reversion, custody, and 

13 disposal of reverted real property.’’. 

14 (b) REQUIREMENTS RELATED TO SALES OF RE15 VERTED PROPERTY UNDER SECTION 550.—Section 

16 550(b)(1) of title 40, United States Code, is amended— 

17 (1) by inserting ‘‘(A)’’ after ‘‘(1) IN GEN18 ERAL.—’’; and 

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

20 official, in consultation with the Administrator, rec21 ommends reversion of the property, the Adminis22 trator shall take control of such property, and, sub23 ject to subparagraph (B), sell it at fair market value 

24 for cash and not by lease, exchange, or leaseback ar25 rangements. 


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1 ‘‘(B) Prior to sale, the Administrator shall 

2 make such property available to State and local gov3 ernments and certain non-profit institutions or orga4 nizations pursuant to this section and sections 553 

5 and 554 of this title.’’. 

6 (c) REQUIREMENTS RELATED TO SALES OF RE7 VERTED PROPERTY UNDER SECTION 553.—Section 

8 553(e) of title 40, United States Code, is amended— 

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

10 ’’; and 

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

12 Administrator determines that reversion of the prop13 erty is necessary to enforce compliance with the 

14 terms of the conveyance, the Administrator shall 

15 take control of such property and, subject to para16 graph (2), sell it at fair market value for cash and 

17 not by lease, exchange, or leaseback arrangements. 

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

19 property available to State and local governments and cer20 tain non-profit institutions or organizations pursuant to 

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

22 (d) REQUIREMENTS RELATED TO SALES OF RE23 VERTED PROPERTY UNDER SECTION 554.—Section 

24 554(f) of title 40, United States Code, is amended— 


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

2 ’’; and 

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

4 Secretary, in consultation with the Administrator, 

5 recommends reversion of the property, the Adminis6 trator shall take control of such property and, sub7 ject to paragraph (2), sell it at fair market value for 

8 cash and not by lease, exchange, or leaseback ar9 rangements. 

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

11 property available to State and local governments and cer12 tain non-profit institutions or organizations pursuant to 

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

14 SEC. 4. AGENCY RETENTION OF PROCEEDS. 

15 The text of section 571 of title 40, United States 

16 Code, is amended to read as follows: 

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

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

19 property account of the agency that had custody and ac20 countability for the real property. Such funds shall be ex21 pended only as authorized in annual appropriations Acts 

22 and only for activities related to Federal real property 

23 asset management and disposal activities, including pay24 ing costs incurred by the General Services Administration 

25 for any disposal-related activity authorized by this title. 


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

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

3 title. 

4 ‘‘(c) DISPOSAL AGENCY FOR REVERTED PROP5 ERTY.—For the purposes of this section, the General Serv6 ices Administration, as the disposal agency, shall be treat7 ed as the agency with custody and accountability for prop8 erties which revert to the United States under sections 

9 550, 553, and 554 of this title. 

10 ‘‘(d) PROCEEDS.—The proceeds referred to in sub11 section (a) are proceeds under this chapter from a— 

12 ‘‘(1) transfer of excess property to a federal 

13 agency for agency use; or 

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

15 property.’’. 

Æ 


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