What This Bill Does
This bill allows the General Services Administrator (a federal official who manages government buildings and property) to create a pilot program. Under this program, federal agencies can lease unused or underutilized government buildings and land to private companies, other government agencies or state and local governments. Money earned from these leases gets split between funding repairs to federal property and reducing the national deficit.
Who It Affects
Federal agencies that control unused buildings and land, private companies and organizations that want to lease government property, other government agencies and state and local governments that might want to lease federal property, Congress and the general public (through deficit reduction funds).
Key Provisions
• The General Services Administrator may establish a pilot program allowing federal agencies to lease underutilized federal property to private parties, other federal agencies, or state and local governments (Sec. 2(b))
• Companies or organizations leasing property must pay fair market value as determined by the Administrator (Sec. 2(c)(1))
• Of money received from leases, 50 percent goes to a federal agency account for building maintenance and improvements, and 50 percent goes to the U.S. Treasury to reduce the deficit (Sec. 2(c)(2))
• The Administrator can enter into no more than 6 leases per fiscal year, and each lease cannot last longer than 15 years (Sec. 2(g)(3) and (4))
• The Administrator cannot lease property to groups planning illegal activities, foreign governments, organizations defined as political under tax law, or entities currently receiving federal grants or contracts from the relevant agency (Sec. 2(g)(5))
• No leased property may be used for lobbying activities (Sec. 2(g)(6))
• The Administrator must submit annual reports to Congress describing each lease and how money was used (Sec. 2(h)(1))
What Changes
Federal agencies gain a new way to generate money from buildings and land they currently don't fully use. Half the money earned supports federal property maintenance and improvements. The other half reduces the federal deficit. The pilot program expires 2 years after the bill becomes law, though existing leases remain valid.
Important Definitions
Administrator: The Administrator of General Services (a federal official who manages government buildings and property)
Pilot program: The enhanced use lease program created by this bill
Underutilized nonexcess real property: Buildings and land that are not fully used but are not designated as surplus
Effective Date
The authority to enter into new leases under this pilot program expires 2 years after the bill becomes law. Not specified in bill text when the bill itself takes effect.
118TH CONGRESS
2D SESSION
S. 211
AN ACT
To authorize the Administrator of General Services to estab-
lish an enhanced use lease pilot program, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
2
† S 211 ES
SECTION 1. SHORT TITLE.
1
This Act may be cited as the ‘‘Saving Money and Ac-
2
celerating Repairs Through Leasing Act’’ or the ‘‘SMART
3
Leasing Act’’.
4
SEC. 2. ENHANCED USE LEASE PILOT PROGRAM.
5
(a) DEFINITIONS.—In this section:
6
(1) ADMINISTRATOR.—The term ‘‘Adminis-
7
trator’’ means the Administrator of General Serv-
8
ices.
9
(2) PILOT
PROGRAM.—The term ‘‘pilot pro-
10
gram’’ means the enhanced use lease pilot program
11
established under subsection (b).
12
(3)
RELEVANT
CONGRESSIONAL
COMMIT-
13
TEES.—The term ‘‘relevant congressional commit-
14
tees’’ means—
15
(A) the Committee on Homeland Security
16
and Governmental Affairs of the Senate;
17
(B) the Committee on Environment and
18
Public Works of the Senate;
19
(C) the Committee on Oversight and Ac-
20
countability of the House of Representatives;
21
and
22
(D) the Committee on Transportation and
23
Infrastructure of the House of Representatives.
24
(b) ESTABLISHMENT.—The Administrator may es-
25
tablish an enhanced use lease pilot program under which
26
3
† S 211 ES
the Administrator may authorize Federal agencies to enter
1
into a lease with any person or entity (including another
2
department or agency of the Federal Government or an
3
entity of a State or local government) with regard to any
4
underutilized nonexcess real property and related personal
5
property under the jurisdiction of the Administrator.
6
(c) MONETARY CONSIDERATION.—
7
(1) FAIR MARKET VALUE.—A person or entity
8
entering into a lease under the pilot program shall
9
provide monetary consideration for the lease at fair
10
market value, as determined by the Administrator.
11
(2) UTILIZATION.—
12
(A) IN GENERAL.—The Administrator may
13
use monetary consideration received under this
14
subsection for a lease entered into under the
15
pilot program to cover the full costs to the Ad-
16
ministrator in connection with the lease.
17
(B) CAPITAL
REVITALIZATION
AND
IM-
18
PROVEMENTS; DEFICIT REDUCTION.—
19
(i) CAPITAL REVITALIZATION AND IM-
20
PROVEMENTS.—50 percent of the amounts
21
of monetary consideration received under
22
this subsection that are not used in accord-
23
ance with subparagraph (A) shall—
24
4
† S 211 ES
(I) be deposited in a working
1
capital account to be established by
2
the Federal agency engaged in the
3
lease of the property; and
4
(II) remain available until ex-
5
pended for maintenance, capital revi-
6
talization, and improvements of the
7
real property assets and related per-
8
sonal property at the Federal agency,
9
subject to the concurrence of the Ad-
10
ministrator.
11
(ii) DEFICIT REDUCTION.—50 percent
12
of the amounts of monetary consideration
13
received under this subsection that are not
14
used in accordance with subparagraph (A)
15
shall be deposited in the general fund of
16
the Treasury for the sole purpose of deficit
17
reduction.
18
(d) ADDITIONAL TERMS AND CONDITIONS.—The Ad-
19
ministrator may require such terms and conditions in con-
20
nection with a lease under the pilot program as the Ad-
21
ministrator considers appropriate to protect the interests
22
of the United States.
23
(e) RELATIONSHIP TO OTHER LEASE AUTHORITY.—
24
The authority under the pilot program to lease property
25
5
† S 211 ES
under the jurisdiction of the Administrator is in addition
1
to any other authority under Federal law to lease property
2
under the jurisdiction of the Administrator.
3
(f) WAIVER.—A property leased under the pilot pro-
4
gram shall not be subject to section 501 of the McKinney-
5
Vento Homeless Assistance Act (42 U.S.C. 11411) before
6
leasing the property under such pilot program.
7
(g) LEASE RESTRICTIONS.—
8
(1) NO LEASEBACK OR GUARANTEED SERVICE
9
CONTRACT.—The Administrator may not lease back
10
property under the pilot program during the term of
11
the lease or enter into guaranteed service or similar
12
contracts with the lessee relating to the property.
13
(2) CERTIFICATION.—The Administrator may
14
not enter into a lease under the pilot program unless
15
the Administrator certifies that the lease will not
16
have a negative impact on the mission of the Admin-
17
istrator or the applicable Federal agency.
18
(3) MAXIMUM NUMBER OF LEASES.—The Ad-
19
ministrator may enter into not more than 6 leases
20
under the pilot program during each fiscal year.
21
(4) DURATION OF LEASES.—The Administrator
22
may not enter into a lease under the pilot program
23
with a term of more than 15 years.
24
6
† S 211 ES
(5) PROHIBITION.—The Administrator may not
1
enter into a lease under the pilot program with any
2
individual or entity that—
3
(A) intends to carry out, under the lease—
4
(i) activities that are illegal—
5
(I) to conduct in Federal facili-
6
ties; or
7
(II) under Federal law; or
8
(ii) activities for which Federal fund-
9
ing is prohibited;
10
(B) is a political organization described in
11
section 527 of the Internal Revenue Code of
12
1986;
13
(C) is owned, operated, or controlled by a
14
foreign government; or
15
(D) received any Federal grant, contract,
16
or award from the applicable Federal agency
17
engaged in the lease that is still in the perform-
18
ance period.
19
(6) LIMITATION ON USE OF LEASES.—No lease
20
entered into under the pilot program may be used to
21
carry out lobbying activities (as defined in section 3
22
of the Lobbying Disclosure Act of 1995 (2 U.S.C.
23
1602)).
24
(h) REPORTING.—
25
7
† S 211 ES
(1) ANNUAL REPORTS.—Not later than Janu-
1
ary 31 of each year until the year after the year in
2
which authority to enter into leases under the pilot
3
program expires under subsection (i)(1), the Admin-
4
istrator shall submit to the relevant congressional
5
committees a report on the pilot program, includ-
6
ing—
7
(A) a description of each lease entered into
8
under the pilot program, including the value of
9
the lease, the amount of consideration received,
10
and the use of the consideration received; and
11
(B) the availability and use of the funds
12
received under the pilot program for the Ad-
13
ministrator or the Federal agency engaged in
14
the lease of nonexcess real property and related
15
personal property.
16
(2) FINAL REPORT.—Not later than 2 years
17
after the date of enactment of this Act, the Adminis-
18
trator shall submit to the relevant congressional
19
committees a final report on the pilot program, in-
20
cluding a recommendation on whether the pilot pro-
21
gram should be extended.
22
(i) DURATION.—
23
(1) IN GENERAL.—The authority to enter into
24
leases under the pilot program shall expire on the
25
8
† S 211 ES
date that is 2 years after the date of enactment of
1
this Act.
2
(2) SAVINGS PROVISION.—The expiration under
3
this subsection of authority to enter into leases
4
under the pilot program shall not affect the validity
5
or term of leases or the retention of proceeds by the
6
Federal agency from leases entered into under the
7
pilot program before the expiration of the authority.
8
Passed the Senate August 1, 2024.
Attest:
Secretary.
118TH CONGRESS
2D SESSION
S. 211
AN ACT
To authorize the Administrator of General Services
to establish an enhanced use lease pilot program,
and for other purposes.