I 
109TH CONGRESS 
1ST SESSION H. R. 2595 
To authorize the Administrator of General Services and the Secretary of 
the Interior to convey certain Federal property to the District of Colum-
bia to increase the District’s taxable property base as compensation 
for a structural fiscal imbalance caused by Federal mandates. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 24, 2005 
Ms. NORTON introduced the following bill; which was referred to the Com-
mittee on Government Reform, and in addition to the Committee on Re-
sources, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To authorize the Administrator of General Services and the 
Secretary of the Interior to convey certain Federal prop-
erty to the District of Columbia to increase the District’s 
taxable property base as compensation for a structural 
fiscal imbalance caused by Federal mandates. 
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 ‘‘Fair Land Transfer 
Compensation Act’’.
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) This Act is based on— 
(A) the findings of a report prepared by 
the Government Accountability Office (referred 
to in this section as the ‘‘GAO’’) in May 2003, 
that found that the District of Columbia has a 
structural fiscal imbalance caused by Federal 
mandates; and 
(B) a bill, the District of Columbia Fair 
Federal Compensation Act of 2005, as intro-
duced in this Congress, that authorizes Federal 
compensation for this structural imbalance. 
(2) The GAO found that the District’s struc-
tural imbalance is the difference between the costs 
to the District of providing an average level of serv-
ices and the District’s total revenue capacity. 
(3) In addition to the 2003 GAO study, two 
other studies (McKinsey, March 2002, and Brook-
ings, October 2002), also have determined that the 
District of Columbia has a substantial structural fis-
cal imbalance. 
(4) The District’s structural fiscal imbalance, is 
exclusively Federal in origin and beyond the ability 
of the District government to correct through im-
proved management or other means.
(5) The cost to the District of providing an av-
erage level of services significantly exceeds— 
(A) the national average, as well as the av-
erage of all 50 States for providing such serv-
ices; and 
(B) the District’s capacity to raise the nec-
essary revenue. 
(6) The gap between the cost for average serv-
ices and tax revenue raised in the District is an an-
nual structural imbalance of between $470,000,000 
and $1,100,000,000. 
(7) The causes of the District’s fiscal imbal-
ance, in part, are— 
(A) the costs to the District of providing 
services to the Federal Government; 
(B) the tax exempt status of more than 40 
percent of real property in the District, which 
is either owned or specifically exempted by the 
Federal Government; and 
(C) the District’s responsibility for the cost 
of several State functions such as special edu-
cation, although the District is a city without 
the broad tax base of a State. 
(8) The District, to cover the cost of the struc-
tural fiscal imbalance, assumes unique burdens that
inhibit economic and population stability and 
growth, including— 
(A) a tax burden that ranks among the 
highest in the country; 
(B) the highest debt service in the country 
among all of the State and local jurisdictions; 
and 
(C) the inability to make major capital im-
provements and investments in schools, roads, 
and other necessary facilities. 
(9) According to the GAO, the options available 
to address the structural imbalance are— 
(A) to expand the District’s tax base; 
(B) to provide additional Federal financial 
support to the District; and 
(C) to increase the role of the Federal 
Government in helping the District maintain 
fiscal balance. 
(10) The land transfers authorized in this Act 
would create a significantly new revenue stream that 
would be equivalent to a partial payment to the Dis-
trict for the annual structural imbalance provided 
for in the District of Columbia Fair Federal Com-
pensation Act of 2005, as introduced in this Con-
gress.
SEC. 3. PURPOSE. 
The purpose of this Act is to provide an efficient 
mechanism for the conveyance of Federal property to the 
District of Columbia in order to decrease the structural 
imbalance by increasing the District’s taxable property 
base and opportunities by the District to pursue economic 
development. 
SEC. 4. CONVEYANCE OF RESERVATION 13 TO DISTRICT OF 
COLUMBIA. 
(a) IN GENERAL.—Subject to the requirements of 
this Act, the Administrator of General Services shall con-
vey to the District of Columbia, without consideration, all 
right, title, and interest of the United States in and to 
United States Reservation 13, the property consisting of 
65.73 acres of land in the District of Columbia bounded 
by Independence Avenue Southeast on the north; 19th 
Street Southeast on the west; G Street Southeast on the 
south; and United States Reservation 343 on the east. 
(b) APPRAISAL.—The Administrator, in consultation 
with the District of Columbia, shall— 
(1) not later than 30 days after the date of en-
actment of this Act, conduct an appraisal of the 
property described in subsection (a) based on fair 
market value; and
(2) not later than 180 days after the appraisal 
is completed, transmit to Congress a report con-
taining— 
(A) the results of the appraisal, including 
an estimate of all financial benefits to be gen-
erated on an annual basis to the District of Co-
lumbia; and 
(B) an assessment of the impact the con-
veyance will have in reducing the structural fi-
nancial imbalance of the District. 
SEC. 5. CONVEYANCE OF POPLAR POINT TO DISTRICT OF 
COLUMBIA. 
(a) IN GENERAL.—Subject to the requirements of 
this Act, the Secretary of the Interior shall convey to the 
District of Columbia, without consideration, all right, title, 
and interest of the United States in and to Poplar Point, 
Anacostia Park, the property in the District of Columbia 
bounded by the Anacostia River on the west; the Weeks 
Memorial Bridge on the north; the Anacostia Freeway on 
the east; and Howard Road and the Frederick Douglas 
Bridge on the south. 
(b) APPRAISAL.—The Secretary, in consultation with 
the District of Columbia, shall— 
(1) not later than 30 days after the date of en-
actment of this Act, conduct an appraisal of the
property described in subsection (a), including any 
improvements thereto, based on fair market value; 
and 
(2) not later than 180 days after the appraisal 
is completed, transmit to Congress a report con-
taining— 
(A) the results of the appraisal, including 
an estimate of all benefits to be generated on 
an annual basis to the District of Columbia; 
and 
(B) an assessment of the impact the con-
veyance will have in reducing the structural fi-
nancial imbalance of the District. 
SEC. 6. LIMITATIONS ON CONVEYANCES. 
(a) IN GENERAL.—A conveyance under section 4 or 
5 shall contain the covenants required by section 120(h) 
of the Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980 (42 U.S.C. 9620). 
(b) LIMITATION ON LIABILITY.—The United States 
shall not be liable or responsible pursuant to subsection 
(a) for any additional remedial action— 
(1) with respect to hazardous substances not 
existing on the property as of the date of convey-
ance, unless the presence of such hazardous sub-
stances on the property was caused by the United 
States; or 
(2) caused, required, or arising out of actions of 
the District of Columbia or any of the District’s 
agents, contractors, or assigns. 
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