H.R. 4465 — what changed
Federal Assets Sale and Transfer Act of 2016
From Introduced in House to Reported in House. 7 sections amended between Introduced in House and Reported in House.
Sec. 3 Definitions
In this Act, unless otherwise expressly stated, the following definitions apply:
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Administrator— The term “Administrator” Administrator means the Administrator of General Services.
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Board— The term “Board” Board means the Public Buildings Reform Board established by section 4.
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CERCLA— The term “CERCLA” CERCLA means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.).
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Federal agency— The term “Federal agency” Federal agency means an executive department or independent establishment in the executive branch of the Government, and a wholly owned Government corporation.
Federal civilian real property and civilian real property—
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In general— The terms “Federal Federal civilian real property” property and “civilian civilian real property” property refer to Federal real property assets, including public buildings as defined in section 3301(a) of title 40, United States Code, occupied and improved grounds, leased space, or other physical structures under the custody and control of any Federal agency.
Exclusions— Subparagraph (A) shall not be construed as including any of the following types of property:
Properties that are on military installations (including any fort, camp, post, naval training station, airfield proving ground, military supply depot, military school, or any similar facility of the Department of Defense).
A base, camp, post, station, yard, center, or homeport facility for any ship or activity under the jurisdiction of the Coast Guard.
Properties that are excluded for reasons of national security by the Director of the Office of Management and Budget.
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Properties that are excepted from the definition of the term “property” property under section 102 of title 40, United States Code.
Indian and Native Alaskan properties, including—
any property within the limits of an Indian reservation to which the United States owns title for the benefit of an Indian tribe; and
any property title that is held in trust by the United States for the benefit of an Indian tribe or individual or held by an Indian tribe or individual subject to restriction by the United States against alienation.
Properties operated and maintained by the Tennessee Valley Authority pursuant to the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831 et seq.).
Postal properties owned by the United States Postal Service.
Properties used in connection with Federal programs for agricultural, recreational, or conservation purposes, including research in connection with the programs.
Properties used in connection with river, harbor, flood control, reclamation, or power projects.
Properties located outside the United States operated or maintained by the Department of State or the United States Agency for International Development.
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Field office— The term “field office” field office means any Federal office that is not the headquarters office location for the Federal agency.
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HUD— The term “HUD” HUD means the Department of Housing and Urban Development.
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OMB— The term “OMB” OMB means the Office of Management and Budget.
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Value of transactions— The term “value value of transactions” transactions means the sum of the estimated proceeds and estimated costs, based on the accounting system developed or identified under section 12(e), associated with the transactions included in Board recommendations.
Sec. 8 Staff
Additional personnel— Subject to subsection (b), the Executive Director may request additional personnel detailed from Federal agencies.
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Requests for detail employees— Upon request of the Chairperson Executive Director and approval of the Board and the Director of OMB, the head of any Federal agency shall detail the requested personnel of that agency to the Board to assist the Board in carrying out its duties under this Act.
Qualifications— Appointments shall be made with consideration of a balance of expertise consistent with the qualifications of representatives described in section 4(c)(5).
Sec. 11 Development of recommendations to Board
Submissions of agency information and recommendations— Not later than 120 days after the date of enactment of this Act, and not later than 120 days after the first day of each fiscal year thereafter until the termination of the Board, the head of each Federal agency shall submit to the Administrator and the Director of OMB the following:
Current data— Current data of all Federal civilian real properties owned, leased, or controlled by the agency, including all relevant information prescribed by the Administrator and the Director of OMB, including data related to the age and condition of the property, operating costs, history of capital expenditures, sustainability metrics, number of Federal employees and functions housed in the respective property, and square footage (including gross, rentable, and usable).
Agency recommendations— Recommendations of the agency on the following:
Federal civilian real properties that can be sold for proceeds or otherwise disposed of, reported as excess, declared surplus, outleased, or otherwise no longer meeting the needs of the agency, excluding leasebacks or other such exchange agreements where the property continues to be used by the agency.
Federal civilian real properties that can be transferred, exchanged, consolidated, co-located, reconfigured, or redeveloped, so as to reduce the civilian real property inventory, reduce the operating costs of the Government, and create the highest value and return for the taxpayer.
Operational efficiencies that the Government can realize in its operation and maintenance of Federal civilian real properties.
Standards and criteria—
Development of standards and criteria— Not later than 60 days after the deadline for submissions of agency recommendations under subsection (a), the Director of OMB, in consultation with the Administrator, shall—
review the agency recommendations;
develop consistent standards and criteria against which the agency recommendations will be reviewed; and
submit to the Board the recommendations developed pursuant to paragraph (2).
Recommendations to Board— The Director of OMB and the Administrator shall jointly develop recommendations to the Board based on the standards and criteria developed under paragraph (1).
Factors— In developing the standards and criteria under paragraph (1), the Director of OMB, in consultation with the Administrator, shall incorporate the following factors:
The extent to which the civilian real property could be sold (including property that is no longer meeting the needs of the Government), redeveloped, outleased, or otherwise used to produce the highest and best value and return for the taxpayer.
The extent to which the operating and maintenance costs are reduced through consolidating, co-locating, and reconfiguring space, and through realizing other operational efficiencies.
The extent to which the utilization rate is being maximized and is consistent with non-governmental industry standards for the given function or operation.
The extent and timing of potential costs and savings, including the number of years, beginning with the date of completion of the proposed recommendation.
The extent to which reliance on leasing for long-term space needs is reduced.
The extent to which a civilian real property aligns with the current mission of the Federal agency.
The extent to which there are opportunities to consolidate similar operations across multiple agencies or within agencies.
The economic impact on existing communities in the vicinity of the civilian real property.
The extent to which energy consumption is reduced.
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The extent to which public access to agency services is maintained or enhanced.
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Special rule for utilization rates— Standards developed by the Director of OMB pursuant to subsection (b) shall incorporate and apply clear standard utilization rates to the extent that such standard rates increase efficiency and provide performance data. The utilization rates shall be consistent throughout each applicable category of space and with nongovernment space utilization rates. To the extent the space utilization rate of a given agency exceeds the utilization rates to be applied under this subsection, the Director of OMB may recommend realignment, co-location, consolidation, or other type of action to improve space utilization.
Submission to Board—
In general— The Director of OMB shall submit the standards, criteria, and recommendations developed pursuant to subsection (b) to the Board with all supporting information, data, analyses, and documentation.
Publication— The standards, criteria, and recommendations developed pursuant to subsection (b) shall be published in the Federal Register and transmitted to the committees listed in section 5(c) and to the Comptroller General of the United States.
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Access to information— The Board shall also have access to all information pertaining to the recommendations developed pursuant to subsection (b), including supporting information, data, analyses, and documentation submitted pursuant to subsection (a). Upon request, a Federal agency shall provide to the Board any additional information pertaining to the civilian real properties under the custody, control, or administrative jurisdiction of the Federal agency.agency. The Board shall notify the committees listed in section 5(c) of any failure by an agency to comply with a request of the Board.
Sec. 12 Board duties
Identification of property reduction opportunities— The Board shall identify opportunities for the Government to reduce significantly its inventory of civilian real property and reduce costs to the Government.
Identification of high value assets—
Identification of certain properties— Not later than 180 days after Board members are appointed pursuant to section 4, the Board shall—
identify not fewer than 5 Federal civilian real properties that are not on the list of surplus or excess as of such date with a total fair market value of not less than $500,000,000 and not more than $750,000,000; and
transmit the list of the Federal civilian real properties to the Director of OMB and Congress as Board recommendations and subject to the approval process described in section 13.
Information and data— In order to meet the goal established under paragraph (1), each Federal agency shall provide, upon request, any and all information and data regarding its civilian real properties to the Board. The Board shall notify the committees listed in section 5(c) of any failure by an agency to comply with a request of the Board.
Factors— In identifying properties pursuant to paragraph (1), the Board shall consider the factors listed in section 11(b)(3).
Leaseback restrictions— None of the existing improvements on properties sold under this subsection may be leased back to the Government.
Report of excess— Not later than 60 days after the approval of Board recommendations pursuant to paragraph (1), Federal agencies with custody, control, or administrative jurisdiction over the identified properties shall submit a Report of Excess to the General Services Administration.
Sale—
Initiation of sale— Not later than 120 days after the acceptance by the Administrator of the Report of Excess and notwithstanding any other provision of law (including section 501 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11411), but except as provided in section 14(g)), the General Services Administration shall initiate the sale of the civilian real properties described in paragraph (1).
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Completion of sale— Not later than 1 year after the acceptance of the Report of Excess, the Administrator shall sell the civilian real properties at fair market value at highest and best use.use, unless the Director of OMB determines it is in the financial interest of the Government to execute a sale more than a year after the acceptance of the Report of Excess, but not greater than two years after the acceptance of the Report of Excess.
Analysis of inventory— The Board shall perform an independent analysis of the inventory of Federal civilian real property and the recommendations submitted pursuant to section 11. The Board shall not be bound or limited by the recommendations submitted pursuant to section 11. If, in the opinion of the Board, an agency fails to provide needed information, data, or adequate recommendations that meet the standards and criteria, the Board shall develop such recommendations as the Board considers appropriate based on existing data contained in the Federal Real Property Profile or other relevant information.
Information and proposals—
Receipt— Notwithstanding any other provision of law, the Board may receive and consider proposals, information, and other data submitted by State and local officials and the private sector.
Consultation— The Board shall consult with State and local officials on information, proposals, and other data that the officials submit to the Board.
Availability— Information submitted to the Board shall be made publicly available.
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Accounting system— Not later than 120 days after the date of enactment of this Act, the Board shall identify or develop and implement a system of accounting to be used to independently evaluate the costs of and returns on the recommendations. Such accounting system shall be applied in developing the Board’s recommendations and determining the highest return to the taxpayer. In applying the accounting system, the Board shall set a standard performance period.period of not less than 15 years.
Public hearing— The Board shall conduct public hearings. All testimony before the Board at a public hearing under this subsection shall be presented under oath.
Reporting of information and recommendations—
In general— Subject to the schedule and limitations specified in paragraph (2), the Board shall transmit to the Director of OMB, and publicly post on a Federal Web site maintained by the Board, reports containing the Board’s findings, conclusions, and recommendations for—
the consolidation, exchange, co-location, reconfiguration, lease reductions, sale, outlease, and redevelopment of Federal civilian real properties; and
other operational efficiencies that can be realized in the Government’s operation and maintenance of such properties.
Schedule and limitations—
First round— Not later than 2 years after the date of transmittal of the list of properties recommended pursuant to subsection (b), the Board shall transmit to the Director of OMB the first report required under paragraph (1). The total value of transactions contained in the first report may not exceed $2,500,000,000.
Second round— Not earlier than 3 years after the date of transmittal of the first report, the Board shall transmit to the Director of OMB the second report required under paragraph (1). The total value of transactions contained in the second report may not exceed $4,750,000,000.
Consensus in majority— The Board shall seek to develop consensus recommendations, but if a consensus cannot be obtained, the Board may include in the reports required under this subsection recommendations that are supported by a majority of the Board.
Federal Web site— The Board shall establish and maintain a Federal Web site for the purposes of making relevant information publicly available.
Review by GAO— The Comptroller General of the United States shall transmit to Congress and the Board a report containing a detailed analysis of the recommendations and selection process.
Sec. 14 Implementation of Board recommendations
Deadlines—
Preparation— Federal agencies shall—
not later than 60 days after the Director of OMB transmits the Board’s recommendations to Congress pursuant to paragraph (1) or (4) of section 13(c), immediately begin preparations to carry out the Board’s recommendations; and
not later than 2 years after such transmittal, initiate all activities necessary to carry out the Board’s recommendations.
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Completion— Not later than 6 years after the Director of OMB transmits the Board’s recommendations to Congress pursuant to paragraph (1) or (4) of section 13(c), Federal agencies shall complete all recommended actions. All actions shall be economically beneficial and be beneficial, cost neutral neutral, or otherwise favorable to the Government.
Extenuating circumstances— For actions that will take longer than the 6-year period described in paragraph (2) due to extenuating circumstances, Federal agencies shall notify the Director of OMB and Congress, as soon as the extenuating circumstance presents itself, with an estimated time to complete the relevant action.
Actions of Federal agencies related to civilian real properties— In taking actions related to any civilian real property under this Act, Federal agencies may take, pursuant to subsection (c), all such necessary and proper actions, including—
acquiring land, constructing replacement facilities, performing such other activities, and conducting advance planning and design as may be required to transfer functions from a Federal asset or property to another Federal civilian property;
reimbursing other Federal agencies for actions performed at the request of the Board; and
taking such actions as are practicable to maximize the value of Federal civilian real property to be sold by clarifying zoning and other limitations on use of such property.
Actions of Federal agencies To implement Board recommendations—
Use of existing legal authorities—
In general— Except as provided in paragraph (2), when acting on a recommendation of the Board, a Federal agency shall—
in consultation with the Administrator, continue to act within the Federal agency’s existing legal authorities, including legal authorities delegated to the Federal agency by the Administrator; or
work in partnership with the Administrator to carry out such actions.
Necessary and proper actions— The Administrator may take such necessary and proper actions, including the sale, conveyance, or exchange of civilian real property, as required to implement the Board’s recommendations in the time period required under subsection (a).
Experts— A Federal agency may enter into no cost, nonappropriated contracts for expert commercial real estate services to carry out the Federal agency’s responsibilities pursuant to the recommendations.
Discretion of Administrator regarding transactions— For any transaction identified, recommended, or commenced as a result of this Act, any otherwise required legal priority given to, or requirement to enter into, a transaction to convey a Federal civilian real property for less than fair market value, for no consideration at all, or in a transaction that mandates the exclusion of other market participants, shall be at the discretion of the Administrator.
Relationship to other laws— Any recommendation or commencement of a sale, disposal, consolidation, reconfiguration, co-location, or realignment of civilian real property under this Act shall not be subject to—
section 545(b)(8) of title 40, United States Code;
sections 550, 553, and 554 of title 40, United States Code;
any section of the Act entitled “An Act Authorizing the transfer of certain real property for wildlife, or other purposes” (16 U.S.C. 667b);
section 47151 of title 49, United States Code;
sections 107 and 317 of title 23, United States Code;
section 1304(b) of title 40, United States Code;
section 13(d) of the Surplus Property Act of 1944 (50 U.S.C. App. 1622(d));
any other provision of law authorizing the conveyance of real property owned by the Government for no consideration; and
any congressional notification requirement other than that in section 545 of title 40, United States Code.
Public benefit—
Submission of information to HUD— The Director of OMB shall submit to the Secretary of HUD, on the same day the Director of OMB submits the Board’s recommendations to Congress pursuant to paragraphs (1) and (4) of section 13(c), all known information on Federal civilian real properties that are included in the recommendations (except those recommended under section 12(b)).
HUD to report to Board— Not later than 30 days after the submission of information on Federal properties under paragraph (1), the Secretary shall identify any suitable civilian real properties for use as a property benefiting the mission of assistance to the homeless for the purposes of further screening pursuant to section 501 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11411).
Additional authority— Following the review under paragraph (2), with respect to a civilian real property that is not identified by the Secretary as suitable for use as a property benefiting the mission of assistance to the homeless and that has been recommended for sale by the Board, the Director of OMB may exclude the property from the Board’s recommendations if the Director determines that the property is suitable for use as a public park or recreation area by a State or local government and it is in the best interest of taxpayers.
Environmental considerations—
Transfers of real property—
In general— When implementing the recommended actions for civilian real properties that have been identified in the Board’s report, as specified in section 12(g), and subject to paragraph (2) and in compliance with CERCLA, including section 120(h) of CERCLA (42 U.S.C. 9620(h)), Federal agencies may enter into an agreement to transfer by deed, pursuant to section 120(h)(3) of that Act (42 U.S.C. 9620(h)(3)), civilian real property with any person.
Additional terms and conditions— The head of the disposing agency may require any additional terms and conditions in connection with an agreement authorized by subparagraph (A) as the head of the disposing agency considers appropriate to protect the interests of the United States. Such additional terms and conditions shall not affect or diminish any rights or obligations of the Federal agencies under section 120(h) of CERCLA (including, without limitation, the requirements of subsections (h)(3)(A) and (h)(3)(C)(iv) of that section).
Certification concerning costs— A transfer of Federal civilian real property may be made under paragraph (1) only if the head of the disposing agency certifies to the Board and Congress that—
the costs of all environmental restoration, waste management, and environmental compliance activities otherwise to be paid by the disposing agency with respect to the property are equal to or greater than the fair market value of the property to be transferred, as determined by the head of the disposing agency; or
if such costs are lower than the fair market value of the property, the recipient of the property agrees to pay the difference between the fair market value and such costs.
Payments to recipients— In the case of a civilian real property covered by a certification under paragraph (2)(A), the disposing agency may pay the recipient of such property an amount equal to the lesser of—
the amount by which the costs incurred by the recipient of such property for all environmental restoration, waste management, and environmental compliance activities with respect to such property exceed the fair market value of such property as specified in such certification; or
the amount by which the costs (as determined by the head of the disposing agency) that would otherwise have been incurred by the Secretary for such restoration, waste management, and environmental compliance activities with respect to such property exceed the fair market value of such property as so specified.
Information to be provided to recipients— As part of an agreement under paragraph (1), the head of the disposing agency shall disclose, in accordance with applicable law, to the person to whom the civilian real property will be transferred information possessed by the disposing agency regarding the environmental restoration, waste management, and environmental compliance activities that relate to the property. The head of the disposing agency shall provide such information before entering into the agreement.
Consideration of environmental remediation in granting time extensions— For the purposes of granting time extensions under subsection (a), the Director of OMB shall give the need for significant environmental remediation to a civilian real property more weight than any other factor in determining whether to grant an extension to implement a Board recommendation.
Limitation on statutory construction— Nothing in this Act may be construed to modify, alter, or amend CERCLA, the National Environmental Policy Act of 1969, or the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).
Sec. 20 Agency retention of proceeds
In general— Section 571 of title 40, United States Code, is amended by striking subsections (a) and (b) and inserting the following:
“(a) Proceeds from transfer or sale of real property
“(1) Deposit of net proceeds—Net proceeds described in subsection (c) shall be deposited into the appropriate real property account of the agency that had custody and accountability for the real property at the time the real property is determined to be excess.
“(2) Expenditure of net proceeds—The net proceeds deposited pursuant to paragraph (1) may only be expended, as authorized in annual appropriations Acts, for activities described in sections 543 and 545, including paying costs incurred by the General Services Administration for any disposal-related activity authorized by this chapter.
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“(3) Deficit reduction—Any net proceeds described in subsection (c) from the sale, lease, or other disposition of surplus real property that are not expended under paragraph (2) shall be used for deficit reduction.reduction. Any net proceeds not obligated within 3 years after the date of deposit and not expended within 5 years after such date shall be deposited as miscellaneous receipts in the Treasury.
“(b) Effect on other sections—Nothing in this section is intended to affect section 572(b), 573, or 574.
“(c) Net proceeds—The net proceeds described in this subsection are proceeds under this chapter, less expenses of the transfer or disposition as provided in section 572(a), from a—
“(1) transfer of excess real property to a Federal agency for agency use; or
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“(2) sale, lease, or other disposition of surplus real property.property.”
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“(d) Proceeds from transfer or sale of personal property
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“(1) In general—Except as otherwise provided in this subchapter, proceeds described in paragraph (2) shall be deposited in the Treasury as miscellaneous receipts.
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“(2) Proceeds—The proceeds described in this paragraph are proceeds under this chapter from—
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“(A) a transfer of excess personal property to a Federal agency for agency use; or
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“(B) a sale, lease, or other disposition of surplus personal property.
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“(3) Payment of expenses of sale before deposit—Subject to regulations under this subtitle, the expenses of the sale of personal property may be paid from the proceeds of sale so that only the net proceeds are deposited in the Treasury. This paragraph applies whether proceeds are deposited as miscellaneous receipts or to the credit of an appropriation as authorized by law.”
Effective date— The provisions of this section, including the amendments made by this section, shall take effect upon the termination of the Board pursuant to section 10 and shall not apply to proceeds from transactions conducted under section 14.
Sec. 21 Federal real property database
Database required— Not later than 1 year after the date of enactment of this section, the Administrator of General Services shall publish a single, comprehensive, and descriptive database of all Federal real property under the custody and control of all executive agencies, other than Federal real property excluded for reasons of national security, in accordance with subsection (b).
Required information for database— The Administrator shall collect from the head of each executive agency descriptive information, except for classified information, of the nature, use, and extent of the Federal real property of each such agency, including the following:
The geographic location of each Federal real property of each such agency, including the address and description for each such property.
The total size of each Federal real property of each such agency, including square footage and acreage of each such property.
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The relevance of each Whether the Federal real property to is currently, or will in the future be, needed to support agency’s mission.mission or function.
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The level of use utilization of each Federal real property for each such agency, including whether such property is excess, surplus, underutilized, or unutilized.
The number of days each Federal real property is designated as excess, surplus, underutilized, or unutilized.
The annual operating costs of each Federal real property.
The replacement value of each Federal real property.
Access to database—
Federal agencies— The Administrator, in consultation with the Director of OMB, shall make the database established and maintained under this section available to other Federal agencies.
Public access— To the extent consistent with national security and procurement laws, the database shall be accessible by the public at no cost through the Web site of the General Services Administration.
Transparency of database— To the extent practicable, the Administrator shall ensure that the database—
uses an open, machine-readable format;
permits users to search and sort Federal real property data; and
includes a means to download a large amount of Federal real property data and a selection of such data retrieved using a search.
Applicability— Nothing in this section may be construed to require an agency to make available to the public information that is exempt from disclosure pursuant to section 552(b) of title 5, United States Code.