I
107TH CONGRESS
2D SESSION
H. R. 3947
To amend the Federal Property and Administrative Services Act of 1949
to enhance Federal asset management, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 12, 2002
Mr. SESSIONS (for himself, Mr. TOM DAVIS of Virginia, and Mr. BURTON of
Indiana) introduced the following bill; which was referred to the Com-
mittee on Government Reform, and in addition to the Committee on
Transportation and Infrastructure, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To amend the Federal Property and Administrative Services
Act of 1949 to enhance Federal asset management, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Federal Property Asset
Management Reform Act of 2002’’.
SEC. 2. DEFINITION OF LANDHOLDING AGENCY.
Section 3 of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 472) is amended by add-
ing at the end the following:
‘‘(m) The term ‘landholding agency’—
‘‘(1) subject to paragraphs (2) and (3), means
any Federal agency that, by specific or general stat-
utory authority, has jurisdiction, custody, and con-
trol over property (as defined in paragraph (d)) that
is real property;
‘‘(2) does not include a Federal agency with re-
spect to the agency—
‘‘(A) disposing of an interest in real prop-
erty for public benefit purposes pursuant to sec-
tion 203;
‘‘(B) holding lands in trust or restricted
fee status for individual Indians or Indian
tribes; or
‘‘(C) having jurisdiction over national park
lands or national forest lands; and
‘‘(3) does not include the Bureau of Land Man-
agement.’’.
SEC. 3. LIFE CYCLE PLANNING AND MANAGEMENT.
Title II of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 481 et seq.) is amended
by adding at the end the following:
scriptive information, except for classified information, as
the Administrator considers will best describe the nature,
use, and extent of the real property holdings of the Fed-
eral Government. The head of a Federal agency shall
promptly provide to the Administrator, upon request, such
information regarding real property holdings under the
custody and control of the agency.
‘‘(B) For purposes of this paragraph, the term ‘real
property holdings’ includes—
‘‘(i) all public lands (as that term is defined in
section 103 of the Federal Land Policy and Manage-
ment Act of 1976 (43 U.S.C. 1702)); and
‘‘(ii) all real property of the Federal Govern-
ment that is located outside of the 50 States, includ-
ing the District of Columbia, Puerto Rico, American
Samoa, Guam, the Northern Mariana Islands, and
the United States Virgin Islands.
‘‘(3) To facilitate reporting of information on a uni-
form basis, the Administrator may establish data and
other information technology standards for use by Federal
agencies in developing or upgrading Federal agency real
property information systems.
‘‘(d) PUBLIC ACCESS TO INFORMATION.—(1) Except
as provided in paragraphs (2) and (3), the listing compiled
under this section shall be a public record.
‘‘(2) The Administrator may withhold from public
disclosure information included in the listing, including
the location of classified facilities, if the Administrator de-
termines that withholding such information would be in
the public interest.
‘‘(3) Nothing in this subsection requires an agency
to make available to the public information that is exempt
from disclosure pursuant to section 552 of title 5, United
States Code, popularly known as the Freedom of Informa-
tion Act.
‘‘(e) JURISDICTION OF ADMINISTRATOR.—Except for
the purpose of maintaining the property listing required
under subsection (c), nothing in this section authorizes the
Administrator to assume jurisdiction over the acquisition,
management, or disposal of real property not subject to
this Act.
‘‘SEC. 214. SENIOR REAL PROPERTY OFFICERS.
‘‘(a) IN GENERAL.—(1) Within 180 days after the
effective date of this section, the head of each landholding
agency shall appoint, or designate from among senior
management officials of such agency, a Senior Real Prop-
erty Officer. Such individual shall have education, train-
ing, and real estate portfolio or facilities management ex-
perience required to administer the functions described
under this section.
‘‘(2) The head of any landholding agency may ap-
point a Real Property Officer for any major component
of the agency. A Real Property Officer of a landholding
agency, for the purposes of complying with the require-
ments of this Act, shall report to the Senior Real Property
Officer.
‘‘(b) RESPONSIBILITIES.—The Senior Real Property
Officer of a landholding agency shall be responsible for
continuously monitoring real property assets of the agency
so that—
‘‘(1) real property of the agency, including its
functional use, occupancy, reinvestment require-
ments, and future utility, is managed in a manner
that is—
‘‘(A) consistent with and supportive of the
goals and objectives set forth in the agency’s
strategic plan under section 306 of title 5,
United States Code;
‘‘(B) consistent with the real property
asset management principles established by the
Administrator under section 213(a); and
‘‘(C) reflected in an agency asset manage-
ment plan issued under subsection (c);
‘‘(2) real property assets that can benefit from
the application of the enhanced asset management
tools described in section 216 are identified;
‘‘(3) such enhanced asset management tools, in
those cases in which a real property asset can so
benefit, are applied in such a way that any resulting
transaction shall—
‘‘(A) result in the agency receiving fair
market value which, in the case of an exchange
or sale of Federal real property, shall be based
on an appraisal; and
‘‘(B) protect the Federal Government from
unreasonable financial or other risks;
‘‘(4) provide to the Administrator annually—
‘‘(A) a listing and description of the real
property assets under the jurisdiction, custody,
and control of that agency, including public
lands of the United States and property located
in foreign lands; and
‘‘(B) any other relevant information the
Administrator may request, for inclusion in the
Governmentwide listing of all Federal real prop-
erty interests established and maintained under
section 213(c);
‘‘(5) determine the performance of the agency
against the performance measures established under
section 213(b); and
‘‘(6) report the results to the Committee on
Governmental Affairs of the Senate and the Com-
mittee on Government Reform of the House of Rep-
resentatives.
‘‘(c) CONSIDERATION OF AVAILABLE REAL PROP-
ERTY HOLDINGS.—Except as otherwise provided by Fed-
eral law, before a landholding agency acquires any interest
in real property from any non-Federal source, the Senior
Real Property Officer of the agency must give first consid-
eration to available Federal real property holdings.’’.
SEC. 4. ENHANCED AUTHORITIES FOR REAL PROPERTY
ASSET MANAGEMENT.
(a) IN GENERAL.—Title II of the Federal Property
and Administrative Services Act of 1949 (40 U.S.C. 481
et seq.) is further amended by adding at the end the fol-
lowing:
‘‘SEC. 215. CRITERIA FOR USING ENHANCED ASSET MAN-
AGEMENT TOOLS.
‘‘(a) IN GENERAL.—Subject to the requirements of
subsection (b) of this section, the head of a landholding
agency may apply an enhanced asset management tool de-
scribed in section 216 to a real property interest under
the agency’s jurisdiction, custody, and control if—
‘‘(1) the head of the agency has determined
that such real property interest is not excess prop-
erty, and includes as part of the documentation re-
quired under subsection (b)(3) a description of the
need and mission requirement fulfilled by the Fed-
eral property;
‘‘(2) the real property interest is used to fulfill
or support a continuing mission requirement of the
agency; and
‘‘(3) the real property interest can, by the ap-
plication of the enhanced asset management tool,
improve the support of such mission.
‘‘(b) CRITERIA FOR APPLICATION.—Before applying
an enhanced asset management tool defined in section 216
to a real property interest identified under subsection (a),
the head of the agency, in consultation with the Adminis-
trator, must determine that such application meets all of
the following criteria:
‘‘(1) The application supports the goals and ob-
jectives set forth in the agency’s strategic plan under
section 306 of title 5, United States Code, and the
agency’s real property asset management plan under
section 214.
‘‘(2) Use of the real property is economical,
cost effective, and in the best interests of the United
States.
‘‘(3) The application is documented in a busi-
ness plan that, commensurate with the nature of the
selected tool—
‘‘(A) analyzes all reasonable options for
using the property;
‘‘(B) takes into account applicable provi-
sions of law, including otherwise applicable pro-
visions of the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.); and
‘‘(C) evidences compliance with the re-
quirements of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11301 et seq.), in-
cluding by—
‘‘(i) describing the result of the deter-
mination under that Act by the Secretary
of Housing and Urban Development of the
suitability of the property for use to assist
the homeless; and
‘‘(ii) explaining the rationale for the
landholding agency’s decision not to make
the property available for use to assist the
homeless.
‘‘SEC. 216. ENHANCED ASSET MANAGEMENT TOOLS.
‘‘(a) INTERAGENCY TRANSFERS OR EXCHANGES.—
The head of any landholding agency may acquire replace-
ment real property by transfer or exchange of real prop-
erty subject to this Act with other Federal agencies under
terms mutually agreeable to the heads of the agencies in-
volved.
‘‘(b) SALES TO OR EXCHANGES WITH NON-FEDERAL
SOURCES.—The head of a landholding agency may ac-
quire replacement real property by selling or exchanging
a real property asset or interests therein with any non-
Federal source: Provided, That—
‘‘(1) the transaction does not conflict with other
applicable laws governing the acquisition of interests
in real property by Federal agencies;
‘‘(2) following consultation with the Adminis-
trator, the agency first made the property available
for transfer or exchange to other Federal agencies;
and
‘‘(3) the transaction results in the agency re-
ceiving fair market value, which shall be based upon
an appraisal. Forms of consideration may include
cash or cash equivalent, other property (either real
or personal), in-kind assets, services related to the
transaction, future consideration, or any combina-
tion thereof.
‘‘(c) SUBLEASES.—(1) The head of any landholding
agency may, by lease, permit, license or similar instru-
ment, make available in accordance with this subsection
to any other Federal agency or to any non-Federal entity
the unexpired portion of any government lease for real
property.
‘‘(2) The term of any sublease under this subsection
shall not exceed the unexpired portion of the term of the
original government lease of the property.
‘‘(3) The head of a landholding agency may not sub-
lease property under this subsection unless the sublease
results in the agency receiving fair market rental value
for the property.
‘‘(4) Before subleasing property under this subsection
to a private person, the head of a landholding agency, in
consultation with the Administrator, shall give consider-
ation to the needs of the following entities, with the needs
of entities listed in subparagraph (A) being considered be-
fore the needs of entities listed in subparagraph (B):
‘‘(A) The needs of each of the following entities,
equally, shall be given first consideration by the
agency:
‘‘(i) Federal agencies.
‘‘(ii) Indian tribes (as that term is defined
in section 4 of the Indian Health Care Improve-
ment Act (25 U.S.C. 1603)), urban Indian or-
ganizations (as defined in that section), and
tribal organizations (as defined by section 4 of
the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)), through the
Secretary of the Interior and the Secretary of
Health and Human Services, if the property is
to be used for purposes in connection with an
Indian self-determination contract or grant pur-
suant to the Indian Self-Determination Act (25
U.S.C. 450f et seq.).
‘‘(B) The needs of each of the following enti-
ties, equally, shall be given second consideration by
the agency:
‘‘(i) State and local governments.
‘‘(ii) Indian tribes, tribal organizations,
and urban Indian organizations (as defined in
the provisions referred to in subparagraph
(A)(ii)), through the Secretary of the Interior
and the Secretary of Health and Human Serv-
ices, if the property is to be used for purposes
other than the purposes referred to in subpara-
graph (A)(ii) and such use of the property is
authorized by law other than this subsection.
‘‘(d) OUTLEASES AND PUBLIC PRIVATE PARTNER-
SHIPS.—(1) The head of any landholding agency may
make available by outlease agreements with other Federal
agencies and non-Federal entities any unused or
underused portion of or interest in any real and related
personal property of the landholding agency, if—
‘‘(A) the agency head finds that—
‘‘(i) there is no long-term mission require-
ment for the property, but the Federal Govern-
ment is not permitted to dispose of it; or
‘‘(ii)(I) there is a continuing, long-term
mission requirement of the landholding agency
for the property to remain in Government own-
ership; and
‘‘(II) the use of the real property by the
lessee will not be inconsistent with such mis-
sion; and
‘‘(B) in the case of an outlease to a non-Fed-
eral entity, the outlease is conducted competitively.
If the agency head makes a finding under subparagraph
(A)(ii), the agency head shall include a written rationale
for the finding of a continuing Federal need for the prop-
erty in the business plan submitted under section
215(b)(3).
‘‘(2) To reduce vacant space and realize the equity
value of Government-owned real property assets, provide
Federal agencies with modern functional work environ-
ments, and work cooperatively with the commercial real
estate community, the landholding agency may enter into
an agreement with a non-Federal entity. Any agreement
under this subsection—
‘‘(A) may be to a partnership, cooperative ven-
ture, limited liability company, corporation, trust,
sole proprietorship, or other business arrangement;
‘‘(B) shall be for a term no longer than 50
years;
‘‘(C) shall result in the agency receiving fair
market value which, in the case of an exchange or
sale of Federal real property, shall be based upon an
appraisal. Forms of consideration may include cash
or cash equivalent, other property (either real or
personal), in-kind assets, services related to the
transaction, future consideration, or any combina-
tion thereof;
‘‘(D) may provide a leaseback option to the
Federal Government to occupy space in any facilities
acquired, constructed, repaired, renovated, or reha-
bilitated by the nongovernmental entity: Provided,
That the agreement does not guarantee Government
ative venture, limited liability company, cor-
poration, trust, or other business arrangement
created as the result of the agreement with the
non-Federal entity, exceed the amount of the
Federal Government’s capital contribution or
equity contribution to the partnership, coopera-
tive venture, limited liability company, corpora-
tion, trust, or other business arrangement; and
‘‘(G) may contain such other terms and condi-
tions as the head of the landholding agency making
the property available considers necessary to protect
the interests of the Federal Government.
‘‘(3) In making property available for use or outlease
under this subsection, the landholding agency shall follow
the order of consideration listed in subsection (c)(4).
‘‘(4) Before a landholding agency executes any agree-
ment authorized under subsection (d) that would result
in the development or substantial rehabilitation or renova-
tion of Federal assets under a business arrangement with
a non-Federal entity, the head of such agency shall under-
take an analysis of the proposed arrangement or trans-
action to determine the business and legal risks and bene-
fits to the Federal Government that would likely result
from the proposed arrangement or transaction.
‘‘(5)(A) For the sole purpose of scoring leaseback
agreements for purposes of the Federal budget, if the non-
Federal entity shall exercise management control of the
business of the public-private entity referenced under in
subsection (d)(2)(A) and holds a majority interest in own-
ership in the public-private venture, then the project shall
not be considered to be constructed on Government-owned
land.
‘‘(B) All leaseback agreements must meet the re-
quirements of an operating lease as specified in relevant
Office of Management and Budget circulars.
‘‘(6) If, during the term of an outlease involving the
development or substantial rehabilitation or renovation of
a Federal asset in a business arrangement with a non-
Federal entity, the head of the landholding agency deter-
mines that the property is no longer needed by the land-
holding agency, the head of the agency may initiate action
for the transfer to the non-Federal entity of all right, title,
and interest of the United States in the property by re-
questing the Administrator of General Services to dispose
of the property. A disposition under this section may be
made for such consideration as the head of the land-
holding agency and the Administrator jointly determine is
in the best interests of the United States and upon such
other terms and conditions as the head of the landholding
agency and the Administrator consider appropriate.
‘‘(7) This subsection shall not be construed to affect
any other authority of any Federal agency to outlease
property or to otherwise make property available for any
reason.
‘‘(8) The authority to enter into agreements under
subsection (b) and this subsection expires 10 years after
the date of enactment of this subsection.
‘‘(9) The Comptroller General of the United States
shall submit biennial reports to the Congress, including
to the Committee on Government Reform of the House
of Representatives and the Committee on Governmental
Affairs of the Senate, on the effectiveness of the use of
authority under this subsection.
‘‘SEC. 217. FORMS OF CONSIDERATION.
‘‘Notwithstanding any other provision of law, the
forms of consideration received from an enhanced asset
management tool as described in section 216 may include
cash or cash equivalents, other property (either real or
personal), in-kind assets, services related to the trans-
action, future consideration, or any combination thereof.
‘‘SEC. 218. TRANSACTIONAL REPORTS.
‘‘(a) IN GENERAL.—For those transactions author-
ized under section 216 involving the sale, exchange, or
outlease to a non-Federal entity of any asset valued in
excess of $700,000 at the time of the transaction, the head
of the landholding agency performing the transaction shall
submit the business plan required by subsection 215(b)(3)
to the Director of the Office of Management and Budget,
the Committee on Governmental Affairs of the Senate,
and the Committee on Government Reform of the House
of Representatives at least 30 calendar days before the
final execution of such transaction.
‘‘(b) ADJUSTMENT OF THRESHOLD.—The Adminis-
trator of General Services may increase or decrease the
dollar amount in subsection (a) to reflect a percentage in-
crease or decrease in the Department of Commerce Con-
sumer Price Index.’’.
(b) REPEAL.—Section 321 of the Act of June 30,
1932 (40 U.S.C. 303b), is repealed.
SEC. 5. INCENTIVES FOR REAL AND PERSONAL PROPERTY
MANAGEMENT IMPROVEMENT.
(a) TREATMENT OF PROCEEDS OF FEDERAL PROP-
ERTY DISPOSALS.—Section 204 of the Federal Property
and Administrative Services Act of 1949 (40 U.S.C. 485)
is amended as follows:
(1) In subsection (h)(2)—
(A) by striking ‘‘(b)’’ and inserting ‘‘(c)’’,
and
(B) by striking ‘‘, to the extent provided in
appropriations Acts,’’.
(2) By amending subsection (i) to read as fol-
lows:
‘‘(i)(1) A Federal agency may retain from the pro-
ceeds of the sale of personal property amounts necessary
to recover, to the extent practicable, the full costs, direct
and indirect, incurred by the agencies in disposing of such
property, including the costs for warehousing, storage, en-
vironmental services, advertising, appraisal, and transpor-
tation of the property.
‘‘(2) Such amounts shall be deposited into an account
that shall be available for such costs without regard to
fiscal year limitations. Amounts that are not needed to
pay such costs shall be transferred at least annually to
the general fund or to a specific account in the Treasury
as otherwise authorized by law.’’.
(3) By redesignating subsections (c), (d), (e),
(f), (g), (h), and (i), as subsections (d), (e), (f), (g),
(h), (i), and (j), respectively.
(4) By striking subsections (a) and (b) and in-
serting the following:
‘‘(a) AGENCY RETENTION OF PROCEEDS FROM REAL
AND PERSONAL PROPERTY.—(1) Proceeds resulting from
the transfer or disposition of real property and related per-
sonal property under this title shall be credited to the
fund, account (including the capital asset account under
subsection (b)), or appropriation of the landholding agency
that made the property available for transfer or disposi-
tion and shall be treated as provided in subsections (b)
and (c).
‘‘(2) Proceeds from any transfer of excess personal
property to a Federal agency or from any sale, lease, or
other disposition of surplus personal property shall be
treated as prescribed in subsection (j) or as otherwise au-
thorized by law.
‘‘(3) All proceeds from the transfer or disposition of
property under this title that are not deposited or credited
to a specific agency account shall be covered into the
Treasury as miscellaneous receipts except as provided in
subsections (d), (e), (f), (g), (h), (i), and (j) of this section
or as otherwise authorized by law.
‘‘(b) MONETARY PROCEEDS
TO AGENCY CAPITAL
ASSET ACCOUNTS.—(1) Monetary proceeds received by
agencies from the transfer or disposition of real and re-
lated personal property shall be credited to an existing ac-
count or an account to be established in the Treasury to
pay for the capital asset expenditures of the particular
agency making the property available. Such account shall
be known as the agency’s capital asset account.