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) in-
troduced 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.
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 ‘‘Base Closure Reuse
Reform Act of 1999’’.
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) in-
tended to prevent excess profits arising from the re-
ceipt of surplus property shall not apply’’.
(2) 1988 LAW.—Section 204(b)(2)(A)(i) of the
Defense Authorization Amendments and Base Clo-
sure 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) in-
tended to prevent excess profits arising from the re-
ceipt 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 les-
see 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 improve-
ments if the property reverts to United States con-
trol 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 dis-
posal of the property. If there has been more
than one interim lessee with respect to the
property, the Secretary shall develop a mecha-
nism 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 Realign-
ment 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 depart-
ment 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 fol-
lowing 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), upon the termination or
expiration of a lease under clause (i), the Secretary shall
give the redevelopment authority for the installation in-
volved the first right to acquire the property that was sub-
ject to 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 author-
ity under this clause.’’.
(d) AUTHORITY TO CONTRACT FOR CERTAIN SERV-
ICES.—
(1) 1990 LAW.—Section 2905(b)(8) of the De-
fense 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 govern-
ments’’ and inserting in lieu thereof ‘‘local
governments and redevelopment authori-
ties’’; and
(ii) by striking out ‘‘by such govern-
ments’’;
(B) by striking out subparagraph (C) and
inserting in lieu thereof the following new sub-
paragraph:
‘‘(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 en-
tered into with a local government’’; and
(ii) by striking out ‘‘under the juris-
diction of such government’’ and inserting
in lieu thereof ‘‘of the installation’’.
(2) 1988 LAW.—Section 204(b)(8) of the De-
fense 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 govern-
ments’’ and inserting in lieu thereof ‘‘local
governments and redevelopment authori-
ties’’; and
(ii) by striking out ‘‘by such govern-
ments’’;
(B) by striking out subparagraph (C) and
inserting in lieu thereof the following new sub-
paragraph:
‘‘(C) The Secretary may exercise the authority under
subparagraph (A) with respect to an installation at any