To establish a pilot program to execute lease agreements using alternative procedures, and for other purposes.

I 116TH CONGRESS 1ST SESSION H. R. 3158 To establish a pilot program to execute lease agreements using alternative procedures, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 6, 2019 Mr. MEADOWS (for himself and Mr. PENCE) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure A BILL To establish a pilot program to execute lease agreements using alternative procedures, 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 SECTION 1. STREAMLINED LEASING PILOT PROGRAM. 3 (a) EXECUTION OF LEASES.—The Administrator of 4 General Services shall establish and conduct a pilot pro- 5 gram to execute lease agreements using alternative proce- 6 dures pursuant to authority provided under section 585 7 of title 40, United States Code, and pursuant to the provi- 8 sions of this section. 9 VerDate Sep 11 2014 05:04 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3158.IH H3158 kjohnson on DSK79L0C42 with BILLS 2 •HR 3158 IH (b) GOALS OF PROCEDURES.—The goals of the alter- 1 native procedures are— 2 (1) reducing the costs to the Government of 3 leased space, including— 4 (A) executing long-term leases with firm 5 terms of 10 years or more and reducing costly 6 holdover and short-term lease extensions, in- 7 cluding short firm term leases; 8 (B) improving office space utilization rates 9 of Federal tenants; and 10 (C) streamlining and simplifying the leas- 11 ing process to take advantage of real estate 12 markets; and 13 (2) significantly reducing or eliminating the 14 backlog of expiring leases over the next 5 years. 15 (c) LEASEHOLD INTERESTS IN REAL PROPERTY.— 16 (1) SIMPLIFIED PROCEDURES.—Notwith- 17 standing subsection (b) of section 3305 of title 41, 18 United States Code, but otherwise in accordance 19 with such section, the Administrator shall provide 20 special simplified procedures for acquisitions of 21 leasehold interests in real property at rental rates 22 that do not exceed the simplified lease acquisition 23 threshold, as defined in paragraph (2). The rental 24 rate under a multiyear lease does not exceed the 25 VerDate Sep 11 2014 05:04 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3158.IH H3158 kjohnson on DSK79L0C42 with BILLS 3 •HR 3158 IH simplified lease acquisition threshold if the average 1 annual amount of the rent payable for the period of 2 the lease does not exceed such threshold. 3 (2) ACQUISITION THRESHOLD.—For purposes 4 of this section, the simplified lease acquisition 5 threshold is $500,000. 6 (d) CONSOLIDATED LEASE PROSPECTUSES.—The 7 Administrator may, when acquiring leasehold interests 8 subject to section 3307 of title 40, United States Code, 9 transmit, pursuant to subsection (b) of such section, to 10 the committees designated in such section for approval of 11 a prospectus to acquire leased space, and waive the re- 12 quirements pursuant to paragraphs (3) and (6) of section 13 3307(b), subject to the following requirements: 14 (1) COST PER SQUARE FOOTAGE.—The cost per 15 square footage does not exceed the maximum pro- 16 posed rental rate designated for the respective geo- 17 graphical area. 18 (2) SPACE UTILIZATION.—The overall space 19 utilization rate is 170 usable square feet per person 20 or less based on actual agency staffing levels when 21 occupied. 22 (3) LEASE TERM.—The lease firm term is 10 23 years or greater. 24 VerDate Sep 11 2014 05:04 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3158.IH H3158 kjohnson on DSK79L0C42 with BILLS 4 •HR 3158 IH (4) GEOGRAPHIC LOCATION.—The geographical 1 location is identified as having a large amount of 2 square footage of Federal office space and lease 3 turnover and will likely result in providing for the 4 ability, on a timely basis, of the agency to consoli- 5 date space effectively or meet any requirements for 6 temporary or interim space required for planned 7 consolidations. 8 (5) SUBMARKETS.—Agencies may consider 9 space in submarket locations that meet mission re- 10 quirements. 11 (e) CONSOLIDATIONS GENERALLY.—The Adminis- 12 trator may consolidate more than one project into a single 13 prospectus submitted pursuant to section 3307(b) of title 14 40, United States Code, if such consolidation will facilitate 15 efficiencies and reductions in overall space and improved 16 utilization rates. 17 (f) WAIVER AUTHORITY.—The Administrator may— 18 (1) waive notice and comment rulemaking, if 19 the Administrator determines the waiver is necessary 20 to implement this section expeditiously; and 21 (2) carry out the alternative procedures under 22 this section as a pilot program. 23 (g) REPORTS.— 24 VerDate Sep 11 2014 05:04 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3158.IH H3158 kjohnson on DSK79L0C42 with BILLS 5 •HR 3158 IH (1) ANNUAL REPORTS.—During the period in 1 which the pilot program is conducted under this sec- 2 tion, the Administrator shall submit, annually, to 3 the Committee on Transportation and Infrastructure 4 of the House of Representatives and the Committee 5 on Environment and Public Works of the Senate a 6 progress report that provides updates on the number 7 and square footage of leases expiring in the 5-year 8 period beginning on the date of enactment of this 9 Act, by agency and region, and which shall include 10 for the expiring leases— 11 (A) an average of the lease terms, includ- 12 ing firm terms, for leases executed; and 13 (B) the percentage of leases managed in- 14 house or through the use of commercial real es- 15 tate leasing services. 16 (2) FINAL REPORT.—Not later than 180 days 17 after termination of the pilot program, the Adminis- 18 trator shall submit a final report to the Committee 19 on Transportation and Infrastructure of the House 20 of Representatives and the Committee on Environ- 21 ment and Public Works of the Senate. The final re- 22 port shall include— 23 (A) a review and evaluation of the lease 24 agreements executed under the alternative pro- 25 VerDate Sep 11 2014 05:04 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3158.IH H3158 kjohnson on DSK79L0C42 with BILLS 6 •HR 3158 IH cedures established pursuant to this section in 1 comparison to those agreements not executed 2 pursuant to the alternative procedures; 3 (B) recommendations on any permanent 4 changes to the General Services Administra- 5 tion’s leasing authority; and 6 (C) a progress evaluation in meeting the 7 goals described in subsection (b). 8 (h) TERMINATION.—The authorities under this sec- 9 tion shall terminate on December 31, 2024. 10 Æ VerDate Sep 11 2014 05:04 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H3158.IH H3158 kjohnson on DSK79L0C42 with BILLS