I 
108TH CONGRESS 
1ST SESSION H. R. 2548
To amend chapter 5 of subtitle I of title 40, United States Code, to enhance 
Federal asset management, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 19, 2003
Mr. SESSIONS (for himself, Mr. TOM DAVIS of Virginia, Mr. BURTON of Indi-
ana, Mr. SHAYS, Mr. SOUDER, Mr. OSE, Mrs. JO ANN DAVIS of Virginia, 
Mr. PLATTS, Mr. PUTNAM, Mr. TURNER of Ohio, Mr. JANKLOW, and Mr. 
COOPER) 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 chapter 5 of subtitle I of title 40, United States 
Code, 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 2003’’.
SEC. 2. DEFINITION OF LANDHOLDING AGENCY. 
Section 102 of title 40, United States Code, is 
amended—
(1) by redesignating paragraphs (7) through 
(10) in order as paragraphs (8) through (11); and 
(2) by inserting after paragraph (6) the fol-
lowing: 
‘‘(7) The term ‘landholding agency’—
‘‘(A) subject to subparagraphs (B) and 
(C), means any Federal agency that, by specific 
or general statutory authority, has jurisdiction, 
custody, and control over property (as defined 
in paragraph (9)) that is real property;
‘‘(B) does not include a Federal agency 
with respect to the agency—
‘‘(i) disposing of an interest in real 
property for public benefit purposes pursu-
ant to any of sections 541 through 555 of 
this title; 
‘‘(ii) holding lands in trust or re-
stricted fee status for individual Indians or 
Indian tribes; or 
‘‘(iii) having jurisdiction over National 
Park System lands, National Forest Sys-
tem lands, or National Wildlife Refuge 
System lands; and
‘‘(C) does not include the Bureau of Land 
Management.’’. 
SEC. 3. LIFE CYCLE PLANNING AND MANAGEMENT; EN-
HANCED AUTHORITIES FOR REAL PROPERTY 
ASSET MANAGEMENT.
(a) IN GENERAL.—Chapter 5 of subtitle I of title 40, 
United States Code, is amended by adding at the end the 
following: 
‘‘SUBCHAPTER 
VII—LIFE 
CYCLE 
PLANNING 
AND MANAGEMENT; ENHANCED AUTHORI-
TIES FOR REAL PROPERTY ASSET MANAGE-
MENT 
‘‘§ 621. Asset management principles, performance 
measurement, and database 
‘‘(a) MANAGEMENT PRINCIPLES.—(1) Under the au-
thorities vested in the Administrator under section 121(c) 
of this title, the Administrator of General Services (in this 
subchapter referred to as the ‘Administrator’), in con-
sultation with the heads of Federal agencies and the Di-
rector of the Office of Management and Budget, shall es-
tablish and maintain current management principles to be 
applied by Federal agencies where appropriate to real and 
personal property assets subject to this chapter and under 
the jurisdiction, custody, and control of such agencies.
‘‘(2) With respect to the outlease of property through 
the use of public-private partnerships authorized under 
section 624(d) of this title, the principles under this sub-
section shall include the following:
‘‘(A) Under no circumstances shall the liability 
of the Federal Government arising from an arrange-
ment with a nongovernmental entity or from the op-
eration of any partnership, cooperative venture, lim-
ited liability company, corporation, trust, or other 
business arrangement created as the result of an 
agreement with a nongovernmental entity exceed the 
amount of the Federal Government’s capital con-
tribution or equity contribution.
‘‘(B)(i) Such projects may only be undertaken 
if the Federal asset is not developed to its highest 
and best use and the project is economically viable.
‘‘(ii) For purposes of this subparagraph, deter-
mination of economic viability would include, among 
other relevant economic factors, the internal rate of 
return of the investment to the Government (with 
preference given to higher rates of return) at lease-
back rates not exceeding market rates.
‘‘(C) Such projects may only be undertaken if 
the market conditions are favorable to development
and full occupancy by government and private ten-
ants. 
‘‘(b) 
PERFORMANCE
MEASUREMENT
BENCH-
MARKS.—(1) The Administrator, in consultation with the 
heads of landholding agencies, shall establish performance 
measures to determine the effectiveness of Federal real 
property management.
‘‘(2) The performance measures shall monitor and as-
sess the following: 
‘‘(A) The disposal of real property assets.
‘‘(B) The reduction in vacant Federal space. 
‘‘(C) The realization of equity value in Federal 
real property assets.
‘‘(D) The value added to Federal agency mis-
sions through cooperative arrangements with the 
commercial real estate community. 
‘‘(E) The enhancement of Federal agency pro-
ductivity through an improved working environment. 
‘‘(3) The performance measures shall be designed 
to—
‘‘(A) enable the Congress and heads of Federal 
agencies to track progress in the achievement of 
property management objectives on a Government-
wide basis; and
‘‘(B) allow for comparing the performance of 
Federal agencies against industry and other public 
sector agencies. 
‘‘(4) In developing and implementing the perform-
ance measures, the Administrator shall use existing data 
sources and automated data collection tools to the max-
imum extent practical. 
‘‘(c) INVENTORY DATABASE.—(1) The Administrator 
shall establish and maintain a single, comprehensive, and 
descriptive database of all real property interests under 
the custody and control of each Federal agency. 
‘‘(2)(A) For purposes of paragraph (1), the Adminis-
trator, in cooperation with the heads of other Federal 
agencies, shall collect from each Federal agency such de-
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 chapter. 
‘‘§ 622. 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 chapter, 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 621(a) of this title; 
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 624 of this title are identi-
fied;
‘‘(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 621(c) of this title;
‘‘(5) determine the performance of the agency 
against the performance measures established under 
section 621(b) of this title; 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.’’. 
‘‘§ 623. Criteria for using enhanced asset manage-
ment 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 624 of this title to a real property inter-
est 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 624 
of this title to a real property interest identified under sub-
section (a), the head of the agency, in consultation with 
the Administrator, 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 622 of this title. 
‘‘(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) describes how the application will be 
in compliance with applicable provisions of law, 
including such provisions of—
‘‘(i) the National Environmental Pol-
icy Act of 1969 (42 U.S.C. 4321 et seq.); 
and 
‘‘(ii) the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11301 et seq.), 
including by—
‘‘(I) describing the result of the 
determination under that Act by the 
Secretary of Housing and Urban De-
velopment of the suitability of the 
property for use to assist the home-
less; and 
‘‘(II) explaining the rationale for 
the landholding agency’s decision not 
to make the property available for use 
to assist the homeless; and 
‘‘(C) establishes effective procedures for 
soliciting, assessing, and taking into account 
input from the local community. 
‘‘§ 624. 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 chapter with other Federal agencies
under terms mutually agreeable to the heads of the agen-
cies involved. 
‘‘(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. 
‘‘(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—
‘‘(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; 
‘‘(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 
occupancy; any subsequent agreements to leaseback 
space in such facilities must be in accordance with 
the competition requirements of title III of the Fed-
eral Property and Administrative Services Act of 
1949 (41 U.S.C. 251 et seq.);
‘‘(E) shall provide—
‘‘(i) that neither the United States, nor its 
agencies or employees, shall be liable for any 
actions, debts, or liability of the non-Federal 
entity; and
‘‘(ii) that neither the lessee nor the non-
Federal entity shall be authorized to execute 
and shall not execute any instrument or docu-
ment creating or evidencing any indebtedness 
unless such instrument or document specifically 
disclaims any liability of the United States, and 
of any Federal agency or employee thereunder, 
in excess of the Government’s capital contribu-
tion in the non-Federal entity; 
‘‘(F) shall provide—
‘‘(i) that the Government’s interest under 
the agreement is senior to that of any lender to 
the non-Federal entity; and 
‘‘(ii) that under no circumstances shall the 
liability of the United States arising from its 
arrangement with the non-Federal entity, or 
from the operations of any partnership, cooper-
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 this subsection 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 
paragraph (2)(A) and holds a majority interest in owner-
ship 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)(A) If a landholding agency retains authority 
over any decision to construct or alter buildings on prop-
erty leased by the agency to a non-Federal entity under 
this subsection, then any such construction or alteration 
shall comply with section 628 of this title.
‘‘(B)(i) If landholding agency does not retain author-
ity over any decision to construct or alter buildings on
property leased by the agency to a non-Federal entity 
under this subsection, then any such construction or alter-
ation shall comply with all laws described in clause (ii) 
that would apply to such construction or alteration if the 
property were not Federal property. 
‘‘(ii) The laws referred to in clause (i) are all laws 
of a State, and of a political subdivision of a State, relat-
ing to zoning, landscaping, open space, minimum distance 
of a building from a property line, maximum building 
height, historic preservation, esthetic qualities of a build-
ing, building codes, and similar matters, and any other 
State or local laws relating to construction or alteration 
of a building, respectively, by the non-Federal entity on 
non-Federal lands. 
‘‘(8) 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. 
‘‘(9) The authority to enter into agreements under 
subsection (b) and this subsection expires 10 years after 
the date of enactment of this subsection. 
‘‘(10) 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. 
‘‘§ 625. Review and revision of transactions by admin-
istrator 
‘‘The Administrator may, in the sole discretion of the 
Administrator, review any transaction of an agency under-
taken utilizing authority under section 624 of this title. 
After such review, the Administrator may disapprove such 
transaction if the Administrator determines the trans-
action does not reflect due diligence by the agency, is not 
in the best interest of the United States, or does not com-
ply with the requirements of this chapter. 
‘‘§ 626. Forms of consideration 
‘‘Notwithstanding any other provision of law, the 
forms of consideration received by the United States in 
a transaction under section 624 of this title 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. 
‘‘§ 627. Transactional reports 
‘‘(a) IN GENERAL.—For those transactions author-
ized under section 624 of this title involving the sale, ex-
change, or outlease to a non-Federal entity of any asset 
valued in excess of $700,000 at the time of the trans-
action, the head of the landholding agency performing the
transaction shall submit the business plan required by sec-
tion 623(b)(3) of this title to the Director of the Office 
of Management and Budget, the Committee on Govern-
mental Affairs of the Senate, and the Committee on Gov-
ernment Reform of the House of Representatives at least 
30 calendar days before the final execution of such trans-
action. 
‘‘(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. 
‘‘§ 628. Compliance with nationally recognized codes 
‘‘(a) BUILDING CODES.—Each building with respect 
to which this section applies may be constructed or al-
tered, to the maximum extent feasible as determined by 
the head of the landholding agency having authority with 
respect to the property on which the building is (or will 
be) located, only in compliance with one of the nationally 
recognized model building codes and with other applicable 
nationally recognized codes. Such other codes shall in-
clude, but not be limited to, electrical codes, fire and life 
safety codes, and plumbing codes, as determined appro-
priate by the head of that agency. In carrying out this 
subsection, the head of that agency shall require use of
the latest edition of the nationally recognized codes re-
ferred to in this subsection. 
‘‘(b) ZONING LAWS.—Each building with respect to 
which this section applies may be constructed or altered 
only after consideration of all requirements (other than 
procedural requirements) of—
‘‘(1) zoning laws; and 
‘‘(2) laws relating to landscaping, open space, 
minimum distance of a building from the property 
line, maximum height of a building, historic preser-
vation, and esthetic qualities of a building, and other 
similar laws, 
of a State or a political subdivision of a State that would 
apply to the building if it were not a building constructed 
or altered by a Federal agency. 
‘‘(c) SPECIAL RULES.—
‘‘(1) STATE
AND
LOCAL
GOVERNMENT
CON-
SULTATION, REVIEW, AND INSPECTIONS.—For pur-
poses of meeting the requirements of subsections (a) 
and (b) with respect to a building, the person car-
rying out the construction or alteration shall—
‘‘(A) in preparing plans for the building, 
consult with appropriate officials of the State or 
political subdivision, or both, in which the build-
ing is (or will be) located;
‘‘(B) upon request, submit such plans in a 
timely manner to such officials for review by 
such officials for a reasonable period of time 
not exceeding 30 days; and 
‘‘(C) permit inspection by such officials 
during construction or alteration of the build-
ing, in accordance with the customary schedule 
of inspections for construction or alteration of 
buildings in the locality, if such officials provide 
to the person—
‘‘(i) a copy of such schedule before 
construction of the building is begun; and 
‘‘(ii) reasonable notice of their inten-
tion to conduct any inspection before con-
ducting such inspection. 
‘‘(2) LIMITATION
ON
STATE
RESPONSIBIL-
ITIES.—Nothing in this section imposes an obliga-
tion on any State or political subdivision to take any 
action under paragraph (1). 
‘‘(d) STATE
AND
LOCAL
GOVERNMENT
REC-
OMMENDATIONS.—Appropriate officials of a State or a po-
litical subdivision of a State may make recommendations 
to the head of a landholding agency concerning measures 
necessary to meet the requirements of subsections (a) and 
(b). Such officials may also make recommendations to the
head of the landholding agency concerning measures that 
should be taken in the construction or alteration of the 
building to take into account local conditions. The head 
of the landholding agency shall give due consideration to 
any such recommendations. 
‘‘(e) EFFECT OF NONCOMPLIANCE.—No action may 
be brought against the United States and no fine or pen-
alty may be imposed against the United States for failure 
to meet the requirements of subsection (a), (b), or (c) or 
for failure to carry out any recommendation under sub-
section (d). 
‘‘(f) LIMITATION ON LIABILITY.—The United States 
and its contractors shall not be required to pay any 
amount for any action taken by a State or a political sub-
division of a State to carry out this section (including re-
viewing plans, carrying out on-site inspections, issuing 
building permits, and making recommendations). 
‘‘(g) NATIONAL SECURITY WAIVER.—This section 
shall not apply with respect to any building if the head 
of the landholding agency determines that the application 
of this section to the building would adversely affect na-
tional security. A determination under this subsection 
shall not be subject to administrative or judicial review.
‘‘§ 629. Limitation on certain agency actions 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, no Federal agency may take any of the ac-
tions described in subsection (b) with respect to—
‘‘(1) Federal land and improvements in Los An-
geles, California, consisting of approximately 388 
acres, bounded by the 405 Freeway, Ohio Avenue, 
Butler Avenue, Rochester Avenue, Federal Avenue, 
San Vicente Boulevard, Bringham Avenue, Chayote 
Street, Woodburn Drive, and Waterford Street; or 
‘‘(2) Federal land and improvements in Sepul-
veda, California, consisting of approximately 154 
acres, bounded by Woodley Avenue, Lassen Street, 
Haskell Avenue, and Plumber Street. 
‘‘(b) ACTIONS DESCRIBED.—Actions referred to in 
subsection (a) are the following: 
‘‘(1) Actions involving the use of enhanced asset 
management tools under section 624 of this title. 
‘‘(2) Determining real property to be excess 
property. 
‘‘(3) Disposing of real property.’’.
(b) REPEAL.—Section 1302 of title 40, United States 
Code, is repealed. 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 5 of subtitle I of title 40,
United States Code, is amended by inserting after the 
item relating to section 611 the following:
‘‘SUBCHAPTER VII—LIFE CYCLE PLANNING AND MANAGEMENT; 
ENHANCED AUTHORITIES FOR REAL PROPERTY ASSET MAN-
AGEMENT 
‘‘Sec. 621. Asset management principles, performance measurement, and data-
base. 
‘‘Sec. 622. Senior Real Property Officers. 
‘‘Sec. 623. Criteria for using enhanced asset management tools. 
‘‘Sec. 624. Enhanced asset management tools. 
‘‘Sec. 625. Review and revision of transactions by Administrator. 
‘‘Sec. 626. Forms of consideration. 
‘‘Sec. 627. Transactional reports. 
‘‘Sec. 628. Compliance with nationally recognized codes. 
‘‘Sec. 629. Limitation on certain agency actions.’’.
SEC. 4. INCENTIVES FOR REAL AND PERSONAL PROPERTY 
MANAGEMENT IMPROVEMENT. 
(a) TREATMENT OF PROCEEDS OF FEDERAL PROP-
ERTY DISPOSALS.—Subchapter IV of chapter 5 of title 40, 
United States Code, is amended as follows: 
(1) In section 572—
(A) by redesignating subsection (b) as sub-
section (d); and 
(B) by striking subsection (a) and insert-
ing the following: 
‘‘§ 572. Real property 
‘‘(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 chapter 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 section 573 of this title or as oth-
erwise authorized by law.
‘‘(3) All proceeds from the transfer or disposition of 
property under this chapter that are not deposited or cred-
ited to a specific agency account shall be covered into the 
Treasury as miscellaneous receipts except as provided in 
sections 572, 573, and 574 of this title 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. 
‘‘(2) Subject to subsection (c), any amounts credited 
or deposited to such account under this section, along with
such other amounts as may be appropriated or credited 
from time to time in annual appropriations Acts, shall be 
devoted to the sole purpose of funding that agency’s cap-
ital asset expenditures, including any expenses necessary 
and incident to the agency’s real property capital acquisi-
tions, improvements, and dispositions, and such funds 
shall remain available until expended, in accordance with 
the agency’s asset management plan under section 622 of 
this title, without further authorization: Provided, That—
‘‘(A) moneys from an exchange or sale of real 
property, or a portion of a real property holding, 
under section 624(b) of this title shall be applied 
only to the replacement of that property or to the 
rehabilitation of the portion of that real property 
holding that remains in Federal ownership; and 
‘‘(B) the head of each landholding agency shall 
include with the materials the agency annually sub-
mits under section 1105 of title 31, United States 
Code, a detailed accounting of all real property 
transactions carried out under this title and of re-
ceipts and disbursements from the agency’s capital 
asset account during the previous fiscal year.
‘‘(c) TRANSACTIONAL AND OTHER COSTS.—Federal 
agencies may be reimbursed from the monetary proceeds 
of real property dispositions under this chapter or from
other available resources, including from the agency’s cap-
ital asset account, for the full costs, direct and indirect, 
to the agency disposing of such property, including the 
costs of site remediation, restoration, or other environ-
mental services, relocating affected tenants and occupants, 
advertising and marketing, community outreach, sur-
veying, appraisal, brokerage, historic preservation services, 
title insurance, due diligence, document notarization and 
recording services, and the costs of managing leases and 
providing necessary services to the lessees.’’. 
(2) In subsection (d)(5) of section 572, as so 
redesignated—
(A) in subparagraph (A), by striking ‘‘(less 
expenses of the transfer or disposition as pro-
vided in subsection (a))’’ and inserting ‘‘(less 
the costs of the disposition, as provided in sub-
section (c))’’; and 
(B) by striking ‘‘To the extent provided in 
an appropriations law, an amount’’ and insert-
ing ‘‘An amount’’. 
(3) By amending section 573 to read as follows: 
‘‘§ 573. Personal property 
‘‘(a) IN GENERAL.—A Federal agency may retain 
from the proceeds of the sale of personal property amounts 
necessary to recover, to the extent practicable, the full
costs, direct and indirect, incurred by the agency in dis-
posing of such property, including the costs for 
warehousing, storage, environmental services, advertising, 
appraisal, and transportation of the property. 
‘‘(b) DEPOSIT, AVAILABILITY, AND TRANSFER.—
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 au-
thorized by law.’’.
(b) RELATIONSHIP TO OTHER LAW.—(1) Nothing in 
this Act shall be construed to repeal or supersede any 
other provision of Federal law directing the use of pro-
ceeds from specific real property transactions or directing 
how or where a particular Federal agency is to deposit, 
credit, or use the proceeds from the sale, exchange, or 
other disposition of Federal property except as expressly 
provided for in this Act. 
(2) Section 2(a) of the Land and Water Conservation 
Fund Act of 1965 (16 U.S.C. 460l–5(a)) is superseded 
only to the extent that chapter 5 of title 40, United States 
Code, or a provision of this Act, provides for an alternative 
disposition of the proceeds from the disposal of any sur-
plus real property and related personal property subject 
to this Act, or the disposal of any interest therein.
(3) Subsection 3302(b) of title 31, United States 
Code, is superseded only to the extent that this Act or 
any other Act provides for the disposition of money re-
ceived by the Government.
(c) IMPLEMENTATION
FOR FISCAL YEARS 2003–
2007.—For purposes of implementing this section, the fol-
lowing shall apply: 
(1) For each of fiscal years 2003 through 2007, 
the Director of the Office of Management and Budg-
et shall allocate to each agency a pro rata share of 
the baseline estimate of total surplus real property 
sales receipts transferred to the Land and Water 
Conservation Fund as set forth in the President’s 
budget for fiscal year 2003, made pursuant to sec-
tion 1109 of title 31, United States Code. The Di-
rector of the Office of Management and Budget 
shall notify the affected agencies and the Appropria-
tions Committees of the House of Representatives 
and the Senate in writing of this allocation within 
30 days after the date of enactment of this Act and 
shall not subsequently revise the allocation.
(2) On September 30 of each such fiscal year, 
each agency shall remit to the Treasury an amount
equal to its allocation for that fiscal year, out of the 
proceeds realized from any sales of the agency’s sur-
plus real property assets during that fiscal year.
(3) If an agency’s actual sale proceeds in any 
such fiscal year are less than the amount allocated 
to it by the Director of the Office of Management 
and Budget for that fiscal year, the agency shall 
remit all of its sale proceeds to the Treasury, and 
its allocation for the subsequent fiscal year shall be 
increased by the difference. 
(4) On September 30, 2007, if an agency has 
remitted less sale proceeds to the Treasury than its 
total allocation for the five years, the agency shall 
remit the difference to the Treasury out of any other 
funds available to the agency.
SEC. 5. STREAMLINED AND ENHANCED DISPOSAL AU-
THORITIES. 
(a) PUBLIC BENEFIT CONVEYANCES TO STATE AND 
LOCAL GOVERNMENTS.—Section 550(h)(1)(A) of title 40, 
United States Code, is amended as follows: 
(1) By striking ‘‘or municipality’’ and inserting 
‘‘municipality, or a qualified nonprofit organization 
established for the primary purpose of preserving 
historic monuments,’’.
(2) By inserting after the first sentence the fol-
lowing: ‘‘Such property may be conveyed to a non-
profit organization only if the State, political sub-
division, instrumentalities thereof, and municipality 
in which the property is located do not request con-
veyance of the property under this section within 30 
days after notice to them of the proposed conveyance 
by the Administrator to that nonprofit organiza-
tion.’’. 
(b) DUTIES OF SECRETARY OF INTERIOR.—Section 
550(b)(2)(C) of title 40, United States Code, is amended 
to read as follows: 
‘‘(C) the Secretary of the Interior, for property 
transferred under subsection (e) for public park or 
recreation use, or under subsection (h) for use as a 
historic monument;’’. 
(c) NEGOTIATED DISPOSALS.—Section 545 of title 
40, United States Code, is amended as follows:
(1) In paragraph (1), by striking ‘‘public inter-
est—’’ and all that follows through ‘‘for a period’’ 
and inserting ‘‘public interest for a period’’. 
(2) By striking paragraphs (2), (3), and (5). 
(3) By redesignating paragraphs (4), (6), (7), 
(8), and (9) in order as paragraphs (2) through (6).
(4) By amending paragraph (6) (as so redesig-
nated) to read as follows: 
‘‘(6) otherwise authorized by this chapter or 
other law or, with respect to personal property, the 
negotiated disposal is considered by the agency head 
to be advantageous to the Government.’’.
(5) In subsection (e), by amending paragraph 
(1) to read as follows: 
‘‘(1) REQUIREMENT.—An explanatory state-
ment of the circumstances shall be prepared for each 
disposal by negotiation of any real property that has 
an estimated fair market value in excess of 
$700,000. The dollar amount in the preceding sen-
tence may be increased or decreased by the Adminis-
trator to reflect a percentage increase or decrease in 
the Department of Commerce Consumer Price 
Index.’’. 
(6) By striking paragraph (3). 
(d) CONVEYANCES FOR AIRPORT USE.—
(1) IN GENERAL.—Subchapter III of chapter 5 
of title 40, United States Code, is amended by add-
ing at the end the following: 
‘‘§ 560. Conveyance for airport use 
‘‘The authority of any department, agency, or instru-
mentality of the executive branch or wholly owned Govern-
ment corporation to convey surplus real and related per-
sonal property for public airport purposes under sub-
chapter II of title 49, shall be subject to the requirements 
of this chapter, and any surplus real property available 
for conveyance under that subchapter shall first be made 
available to the Administrator for disposal under this sub-
chapter, including conveyance for any public benefit pur-
poses, including public airport use, as the Administrator, 
after consultation with the affected agencies, considers ad-
visable.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 559 
the following:
‘‘560. Conveyance for airport use.’’.
(e) ACQUISITION OF PERSONAL PROPERTY OR RE-
LATED SERVICES.—
(1) IN
GENERAL.—Section 503 of title 40, 
United States Code, is amended to read as follows: 
‘‘§ 503. Exchange or sale of personal property 
‘‘In acquiring personal property or related services, 
or a combination thereof, any executive agency, under reg-
ulations to be prescribed by the Administrator, and sub-
ject to regulations prescribed by the Administrator for 
Federal Procurement Policy pursuant to the Office of 
Federal Procurement Policy Act (41 U.S.C. 401 et seq.),
may exchange or sell personal property and may apply the 
exchange allowance or proceeds of sale in such cases in 
whole or in part payment for similar property or related 
services, or a combination thereof, acquired: Provided, 
That any transaction carried out under the authority of 
this subsection shall be evidenced in writing. Sales of prop-
erty pursuant to this subsection shall be governed by sec-
tion 545 of this title, and shall be exempt from the provi-
sions of section 3709 of the Revised Statutes (41 U.S.C. 
5).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 5 of title 40, 
United States Code, is amended by striking the item 
relating to section 503 and inserting the following:
‘‘503. Exchange or sale of personal property.’’.
(f) ABANDONMENT, DESTRUCTION, OR OTHER DIS-
POSAL.—
(1) IN
GENERAL.—Section 527 of title 40, 
United States Code, is amended to read as follows: 
‘‘§ 527. Abandonment, destruction, or other disposal 
of property 
‘‘The Administrator may authorize the abandonment, 
destruction, or other disposal of property if the property 
has no commercial value, or if the estimated cost of contin-
ued care and handling of the property would exceed the 
estimated fair market value.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 5 of title 40, 
United States Code, is amended by striking the item 
relating to section 527 and inserting the following:
‘‘527. Abandonment, destruction, or other disposal of property.’’.
(g) TRANSFER OF SURPLUS PERSONAL PROPERTY 
TO STATES.—Section 549 of title 40, United States Code, 
is amended as follows: 
(1) In subsection (a)(1), by striking ‘‘the fair 
and equitable distribution, through donation,’’ and 
inserting ‘‘donation on a fair and equitable basis’’. 
(2) In subsection (c), by striking paragraph (4). 
(3) By striking subsection (d), and redesig-
nating subsections (e) and (f) in order as sub-
sections (d) and (e). 
(4) Subsection (c)(2) is amended as follows: 
‘‘(2) ALLOCATION
AMONG
STATES.—The Ad-
ministrator shall, pursuant to criteria that are based 
on need and utilization and established after such 
consultation with State agencies as is feasible, allo-
cate surplus personal property among the States on 
a fair and equitable basis, taking into account the 
condition of the property and the original acquisition 
cost thereof.’’. 
(5) Subsection (c)(3) is amended—
(A) in subparagraph (A), by striking ‘‘or’’ 
after the semicolon at the end; 
(B) in subparagraph (B)—
(i) by striking clause (ii); 
(ii) in clause (iv), by striking ‘‘schools 
for the mentally retarded or physically 
handicapped’’ and inserting ‘‘schools for 
persons with mental or physical disabil-
ities’’; 
(iii) by amending clause (viii) to read 
as follows: 
‘‘(viii) libraries and educational activi-
ties identified by the Secretary of Defense 
as being of special interest to the Armed 
Services,’’ following the word ‘‘region,’’; 
(iv) by redesignating clauses (iii) 
through (viii) in order as clauses (ii) 
through (vii); and 
(v) by striking the period at the end 
and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(C) to nonprofit institutions or organiza-
tions that are exempt from taxation under sec-
tion 501 of the Internal Revenue Code of 1986 
and that have for their primary function the
provision of food, shelter, or other necessities to 
homeless individuals or families or individuals 
whose annual income is below the poverty line 
(as that term is defined in section 673 of the 
Community Services Block Grant Act) for use 
in assisting the poor and homeless.’’. 
(h) AMENDMENTS TO MCKINNEY-VENTO HOMELESS 
ASSISTANCE ACT.—
(1) AMENDMENTS.—Section 501 of the McKin-
ney-Vento Homeless Assistance Act (42 U.S.C. 
11411) is amended as follows:
(A) In the first sentence of subsection (a), 
by inserting before the period the following: ‘‘, 
and that have not been previously reported on 
by an agency under this subsection’’. 
(B) In the second sentence of subsection 
(a), by inserting after ‘‘to the Secretary’’ the 
following: ‘‘, which shall not include information 
previously reported on by the agency under this 
subsection’’. 
(C) Each of subsections (b)(1), (c)(1)(A), 
and (c)(2)(A), by striking ‘‘45’’ and inserting 
‘‘30’’.