lated to identifying and preparing properties to 
be reported excess by another agency. 
‘‘(ii) The General Services Administration 
may be reimbursed from the proceeds of the sale 
of such properties for such costs. 
‘‘(iii) Net proceeds shall be dispersed pursu-
ant to section 571 of this title. 
‘‘(iv) The authority under clause (i) to obli-
gate funds to prepare properties to be reported 
excess does not include the authority to convey 
such properties by sale, lease, exchange, or other-
wise, including through leaseback arrangements. 
‘‘(v) Nothing in this subparagraph is in-
tended to affect subparagraph (D).’’. 
SEC. 5. ENHANCED AUTHORITIES WITH REGARD TO RE-
VERTED REAL PROPERTY. 
(a) AUTHORITY TO PAY EXPENSES RELATED TO RE-
VERTED REAL PROPERTY.—Section 572(a)(2)(A) of title 
40, United States Code, is amended by adding at the end 
the following: 
‘‘(iv) The direct and indirect costs as-
sociated with the reversion, custody, and 
disposal of reverted real property.’’. 
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(b) REQUIREMENTS RELATED
TO SALES
OF RE-
VERTED
PROPERTY
UNDER
SECTION
550.—Section 
550(b)(1) of title 40, United States Code, is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(1) IN GENERAL.— 
’’; and 
(2) by adding at the end the following: ‘‘If the 
official, in consultation with the Administrator, rec-
ommends reversion of the property, the Administrator 
shall take control of such property, and, subject to 
subparagraph (B), sell it at fair market value for 
cash and not by lease, exchange, or leaseback arrange-
ments. 
‘‘(B) Prior to sale, the Administrator shall make 
such property available to State and local govern-
ments and certain non-profit institutions or organi-
zations pursuant to this section and sections 553 and 
554 of this title.’’. 
(c) REQUIREMENTS RELATED
TO SALES
OF RE-
VERTED PROPERTY UNDER SECTION 553.—Section 553(e) 
of title 40, United States Code, is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘THIS SECTION.—’’; 
and 
(2) by adding at the end the following: ‘‘If the 
Administrator determines that reversion of the prop-
erty is necessary to enforce compliance with the terms 
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of the conveyance, the Administrator shall take con-
trol of such property and, subject to paragraph (2), 
sell it at fair market value for cash and not by lease, 
exchange, or leaseback arrangements. 
‘‘(2) Prior to sale, the Administrator shall make such 
property available to State and local governments and cer-
tain non-profit institutions or organizations pursuant to 
this section and sections 550 and 554 of this title.’’. 
(d) REQUIREMENTS RELATED
TO SALES
OF RE-
VERTED PROPERTY UNDER SECTION 554.—Section 554(f) 
of title 40, United States Code, is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘THIS SECTION.—’’; 
and 
(2) by adding at the end the following: ‘‘If the 
Secretary, in consultation with the Administrator, 
recommends reversion of the property, the Adminis-
trator shall take control of such property and, subject 
to paragraph (2), sell it at fair market value for cash 
and not by lease, exchange, or leaseback arrange-
ments. 
‘‘(2) Prior to sale, the Administrator shall make such 
property available to State and local governments and cer-
tain non-profit institutions or organizations pursuant to 
this section and sections 550 and 553 of this title.’’. 
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SEC. 6. AGENCY RETENTION OF PROCEEDS. 
The text of section 571 of title 40, United States Code, 
is amended to read as follows: 
‘‘(a) DEPOSIT OF PROCEEDS.—Proceeds described in 
subsection (d) shall be deposited into the appropriate real 
property account of the agency that had custody and ac-
countability for the real property. Such funds shall be ex-
pended only as authorized in annual appropriations Acts 
and only for activities as described in section 524(b) of this 
title and disposal activities, including paying costs in-
curred by the General Services Administration for any dis-
posal-related activity authorized by this title. Proceeds shall 
not be expended for activities or projects subject to the re-
quirements of section 3307 of this title. 
‘‘(b) EFFECT ON OTHER SECTIONS.—Nothing in this 
section is intended to affect section 572(b) or 574 of this 
title. 
‘‘(c) DISPOSAL AGENCY FOR REVERTED PROPERTY.— 
For the purposes of this section, the General Services Ad-
ministration, as the disposal agency, shall be treated as the 
agency with custody and accountability for properties 
which revert to the United States under sections 550, 553, 
and 554 of this title. 
‘‘(d) PROCEEDS.—The proceeds referred to in sub-
section (a) are proceeds under this chapter from a— 
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‘‘(1) transfer of excess property to a Federal 
agency for agency use; or 
‘‘(2) sale, lease, or other disposition of surplus 
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 
authorities with regard to real property that has 
yet to be reported excess, and for other purposes. 
MAY 15, 2008 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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