resources. The draft bill would provide an opportunity to fund a desirable relocation from a different source. Of course, relocation would not necessarily mean the closure of an installation. An anticipated frequent use of the relocation fund would be to permit minor consolidations of a Federal activity at a particular installation which then would free specific parcels for better use, be it other Federal use, a public benefit use such as public health, education, or parkland, or sale. The draft bill provides that no less than 50 percent of all proceeds from the sale of surplus real and related personal property shall be available for at least three years for obligation for the replacement and relocation requirements of the agencies making property available for sale. This provision will provide the incentive for Federal agencies to report as excess to their needs properties which are still being used but come within the outmoded or marginal categories discussed above. Under current law, before surplus real property is offered for public sale, it is made available for donation to State and local governments and institutions for use for park, health, education, and other specified public purposes. The draft bill contemplates no change in this procedure. Thus, although the Government might spend considerable money in relocating and acquiring replacement facilities, the original property would become available for donation. For such cases, the draft bill preserves the principle of public benefit discount conveyances but provides that, whenever property is reported excess incident to a relocation, the public benefit discount conveyances will be made at a charge of at least the lesser of the amount expended from the fund for relocation and replacement or one-third of the fair market value of the property. A number of congressional oversight provisions and administrative safeguards have been included in the draft bill to preclude any abuse of the funding authority. The bill permits the use of funds to cover the cost of acquiring replacement facilities only to the extent that acquisition of such facilities may be authorized by law. Unless there is authorizing legislation for acquisition of the new facilities, the funding of such an acquisition under this legislation is not possible. Thus, the Committees of Congress responsible for the particular Federal program involved, and the Congress as a whole, must by general or specific legislation have authorized acquisition of the replacement facilities before payment of replacement costs may be authorized. The bill also provides that an explanatory statement relative to any relocation which is to be financed from the fund shall be transmitted to the Committees on Appropriations of the Congress 30 days before those monies may be obligated for that purpose. This provision assures that the time-honored function of reviewing expenditures is retained in the Appropriations Committees. The bill requires that a reporting of the financial actions accomplished in connection with the fund be made to Congress as well as to OMB on an annual basis. Not less than once a year, any excess monies in the fund are required to be transferred to miscellaneous receipts or as may be otherwise provided by law. Appropriations are authorized and are to be repaid from proceeds available to the fund. This bill will provide an essential and long-needed step towards proper and effective management of Federal real property. We urge its prompt introduction and en actment. The Office of Management and Budget has advised that there is no objection to the submission of this legislative proposal to the Congress, and that its enactment would be in accord with the program of the President. Sincerely, /s/Arthur F. Sampson Honorable Spiro T. Agnew President of the Senate Washington, D.C. 20510 Honorable Carl Albert Speaker of the House of Representatives Washington, D.C. 20515 A BILL To amend section 204 of the Federal Property and Administrative Services Act of 1949, as amended, to authorize the use of proceeds of dispositions of surplus real and related personnel property for the relocation of Federal facilities, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That sections 204 (a) and (b) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 485), are amended to read as follows: "(a) All proceeds under this title from any transfer of excess property to a Federal agency for its use, or from any sale, lease, or other disposition of surplus property, shall be covered into the Treasury as miscellaneous receipts, except as provided in subsections (b), (c), (d) and (e) of this section, or as otherwise provided by law. "(b) All the proceeds of such dispositions of surplus real and related personal property made by the Administrator of General Services shall be set aside in a separate fund in the Treasury, subject to the following procedures: (1) Not more than an amount to be determined quarterly by the Director of the Office of Management and Budget may be obligated from such fund by the Administrator to pay the direct expenses incurred for the utilization of excess property and the disposal of surplus property under this Act for fees of appraisers, auctioneers, and realty brokers, and for advertising and surveying. Such payments from this fund may be used either to pay such expenses directly or to reimburse the fund or appropriation initially bearing such expenses. Fees paid to appraisers, auctioneers, and brokers shall be in accordance with the scale of fees customarily paid for such services in similar commercial transactions, and in no event shall more than 12 percent of the proceeds of all dispositions within each fiscal year of surplus real and related personal property be paid out of such proceeds under this authorization to meet direct expenses incurred in connection with such dispositions. (2) Not more than an amount to be determined quarterly by the Director of the Office of Management and Budget may be obligated from such fund by the Administrator, and by the heads of other agencies in accordance with the Administrator's delegation of authority to them, as he determines necessary to acquire such facilities (as may be authorized by law) to replace those which have been determined by the Administrator, with the concurrence of the head of the agency holding such facilities, to be other than optimally utilized, and to relocate personnel, equipment, and other property to the newly acquired facilities. If the Administrator is unable to obtain the concurrence of the head of the agency concerned, he may transmit the case to the President for decision. No such obligations may be made for relocation and replacement until the fund has attained an initial capitalization of $25,000 from the proceeds of dispositions of surplus real and related personal property. (3) An explanatory statement of the circumstances surrounding each such obligation for relocation and replacement shall be transmitted to the Committees on Appropriations of the Congress thirty days in advance of such obligation. Upon occupancy of the replacement facilities or at a time agreed between the Administrator and the head of the agency making property available for sale, the head of the agency concerned shall, notwithstanding any other provision of law, immediately report the replaced facilities to the Administrator as excess property. Not less than fifty percent of the proceeds from the disposition of all categories of surplus real and related personal property shall be available for at least three years for obligation from the fund for the relocation and replacement requirements of the agency reporting such property as excess. (4) Notwithstanding the provisions of any law |