40 U.S.C. § 572 — Real property

Page 62 TITLE 40—PUBLIC BUILDINGS, PROPERTY, AND WORKS § 572 Pub. L. 114–318, § 7(c)(1), Dec. 16, 2016, 130 Stat. 1616.) AMENDMENT OF SECTION Pub. L. 114–287, § 20, Dec. 16, 2016, 130 Stat. 1477, as amended by Pub. L. 118–272, div. B, title III, § 2301(k), Jan. 4, 2025, 138 Stat. 3217, which Act is set out as a note under section 1303 of this title, provided that, effective on the date on which the Public Buildings Reform Board transmits the second report under section 12(h)(2)(B) of Pub. L. 114–287 and applicable to proceeds from transactions contained in that re- port and conducted after the date on which the Board terminates under section 10 of Pub. L. 114–287, this section is amended by striking sub- sections (a) and (b) and inserting the following: (a) Proceeds From Transfer or Sale of Real Prop- erty.— (1) Deposit of net proceeds.—Net proceeds de- scribed 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 pro- ceeds deposited pursuant to paragraph (1) may only be expended, as authorized in annual appro- priations Acts, for activities described in sections 543 and 545, including paying costs incurred by the General Services Administration for any dis- posal-related activity authorized by this chapter. (3) Deficit reduction.—Any net proceeds de- scribed 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. Any net proceeds not obli- gated 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 sec- tion 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 (2) sale, lease, or other disposition of surplus real property. Pub. L. 114–318, § 7(c), Dec. 16, 2016, 130 Stat. 1616, provided that, effective as if enacted as part of Pub. L. 114–287, this section is amended by adding at the end the following: (d) Savings Provision.—Nothing in this section modifies, alters, or repeals any other provision of Federal law directing the use of retained proceeds relating to the sale of property of an agency. See 2016 Amendment notes below. HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 571(a) ......... 40:485(a). June 30, 1949, ch. 288, title II, § 204(a), 63 Stat. 388; Pub. L. 101–510, div. B, title XXVIII, § 2805(1), Nov. 5, 1990, 104 Stat. 1786. 571(b) ......... 40:485a. June 8, 1896, ch. 373, 29 Stat. 268; Oct. 31, 1951, ch. 654, § 2(20), 65 Stat. 707; Pub. L. 104–316, title I, § 120(a), Oct. 19, 1996, 110 Stat. 3836. In subsection (b), the words ‘‘whether proceeds are deposited as miscellaneous receipts or to the credit of an appropriation as authorized by law’’ are substituted for ‘‘either as miscellaneous receipts on account of ‘proceeds of Government property’ or to the credit of the appropriations to which such proceeds are by law authorized to be made . . . either as miscellaneous re- ceipts or to the credit of such appropriations, as the case may be’’ to eliminate unnecessary words. Editorial Notes AMENDMENTS 2016—Subsecs. (a) to (c). Pub. L. 114–287 added subsecs. (a) to (c) and struck out former subsecs. (a) and (b) which related to deposit in the Treasury as miscella- neous receipts of net proceeds from transfer or other disposition of surplus property and payment of ex- penses of sale before deposit. Subsec. (d). Pub. L. 114–318 added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2016 AMENDMENT Pub. L. 114–318, § 7(c)(2), Dec. 16, 2016, 130 Stat. 1617, provided that: ‘‘The amendments made by this sub- section [amending this section] shall take effect as if enacted as part of the applicable Act [Pub. L. 114–287].’’ Pub. L. 114–318, § 7(e), Dec. 16, 2016, 130 Stat. 1617, pro- vided that: ‘‘Except as provided in subsection (c)(2) [set out above], this section [amending this section and pro- visions set out as a note under section 1303 of this title] and the amendments made by this section shall take ef- fect immediately after the enactment of the applicable Act [Pub. L. 114–287].’’ Amendment by Pub. L. 114–287 effective on the date on which the Public Buildings Reform Board transmits the second report under section 12(h)(2)(B) of Pub. L. 114–287 and applicable to proceeds from transactions contained in that report and conducted after the date on which the Board terminates under section 10 of Pub. L. 114–287, see section 20(b) of Pub. L. 114–287, set out in a note under section 1303 of this title. § 572. Real property (a) IN GENERAL.— (1) SEPARATE FUND.—Except as provided in subsection (b), proceeds of the disposition of surplus real and related personal property by the Administrator of General Services shall be set aside in a separate fund in the Treasury. (2) PAYMENT OF EXPENSES FROM THE FUND.— (A) AUTHORITY.—From the fund described in paragraph (1), the Administrator may ob- ligate an amount to pay the following direct expenses incurred for the use of excess prop- erty and the disposal of surplus property under this subtitle: (i) Fees of appraisers, auctioneers, and realty brokers, in accordance with the scale customarily paid in similar commer- cial transactions. (ii) Costs of environmental and historic preservation services, highest and best use of property studies, utilization of property studies, deed compliance inspection, and the expenses incurred in a relocation. (iii) Advertising and surveying. (B) LIMITATIONS.— (i) PERCENTAGE LIMITATION.—In each fis- cal year, no more than 12 percent of the proceeds of all dispositions of surplus real and related personal property may be paid to meet direct expenses incurred in con- nection with the dispositions. Page 63 TITLE 40—PUBLIC BUILDINGS, PROPERTY, AND WORKS § 572 1 See References in Text note below. (ii) DETERMINATION OF MAXIMUM AMOUNT.—The Director of the Office of Management and Budget each quarter shall determine the maximum amount that may be obligated under this para- graph. (C) DIRECT PAYMENT OR REIMBURSEMENT.— An amount obligated under this paragraph may be used to pay an expense directly or to reimburse a fund or appropriation that ini- tially paid the expense. (3) TRANSFER TO MISCELLANEOUS RECEIPTS.— At least once each year, excess amounts be- yond current operating needs shall be trans- ferred from the fund described in paragraph (1) to miscellaneous receipts. (4) REPORT.—A report of receipts, disburse- ments, and transfers to miscellaneous receipts under this subsection shall be made annually, in connection with the budget estimate, to the Director and to Congress. (b) REAL PROPERTY UNDER CONTROL OF A MILI- TARY DEPARTMENT.— (1) DEFINITIONS.—In this subsection, the fol- lowing definitions apply: (A) MILITARY INSTALLATION.—The term ‘‘military installation’’ has the meaning given that term in section 2687(e)(1) 1 of title 10. (B) BASE CLOSURE LAW.—The term ‘‘base closure law’’ has the meaning given that term in section 101(a)(17) of title 10. (2) APPLICATION.— (A) IN GENERAL.—This subsection applies to real property, including any improvement on the property, that is under the control of a military department and that the Sec- retary of the department determines is ex- cess to the department’s needs. (B) EXCEPTIONS.—This subsection does not apply to— (i) damaged or deteriorated military family housing facilities conveyed under section 2854a of title 10; or (ii) property at a military installation designated for closure or realignment pur- suant to a base closure law. (3) TRANSFER BETWEEN MILITARY DEPART- MENTS.—The Secretary of Defense shall pro- vide that property described in paragraph (2) is available for transfer, without reimburse- ment, to other military departments within the Department of Defense. (4) ALTERNATIVE DISPOSITION BY ADMINIS- TRATOR OF GENERAL SERVICES.—If property is not transferred pursuant to paragraph (3), the Secretary of the military department with the property under its control shall request the Administrator to transfer or dispose of the property in accordance with this subtitle or other applicable law. (5) PROCEEDS.— (A) DEPOSIT IN SPECIAL ACCOUNT.—For a transfer or disposition of property pursuant to paragraph (4), the Administrator shall de- posit any proceeds (less expenses of the transfer or disposition as provided in sub- section (a)) in a special account in the Treasury. (B) AVAILABILITY OF AMOUNT DEPOSITED.— To the extent provided in an appropriation law, an amount deposited in a special ac- count under subparagraph (A) is available for facility maintenance and repair or envi- ronmental restoration as follows: (i) In the case of property located at a military installation that is closed, the amount is available for facility mainte- nance and repair or environmental res- toration by the military department that had jurisdiction over the property before the closure of the military installation. (ii) In the case of property located at any other military installation— (I) 50 percent of the amount is avail- able for facility maintenance and repair or environmental restoration at the military installation where the property was located before it was disposed of or transferred; and (II) 50 percent of the amount is avail- able for facility maintenance and repair and for environmental restoration by the military department that had jurisdic- tion over the property before it was dis- posed of or transferred. (6) REPORT.—As part of the annual request for authorizations of appropriations to the Committees on Armed Services of the Senate and the House of Representatives, the Sec- retary of Defense shall include an accounting of each transfer and disposal made in accord- ance with this subsection during the fiscal year preceding the fiscal year in which the re- quest is made. The accounting shall include a detailed explanation of each transfer and dis- posal and of the use of the proceeds received from it by the Department of Defense. (Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1105; Pub. L. 108–447, div. H, title IV, § 408, Dec. 8, 2004, 118 Stat. 3258; Pub. L. 109–13, div. A, title VI, § 6068, May 11, 2005, 119 Stat. 299; Pub. L. 109–163, div. A, title X, § 1056(a)(5)(B), Jan. 6, 2006, 119 Stat. 3439.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 572(a) ......... 40:485(b). June 30, 1949, ch. 288, title II, § 204(b), as added Aug. 31, 1954, ch. 1178, § 1(b), 68 Stat. 1051; Pub. L. 86–215, Sept. 1, 1959, 73 Stat. 446; Pub. L. 100–612, § 6, Nov. 5, 1988, 102 Stat. 3181; Pub. L. 101–510, div. B, title XXVIII, § 2805(2), Nov. 5, 1990, 104 Stat. 1786; Pub. L. 107–107, § 2812, Dec. 28, 2001, 115 Stat. 1307. 572(b) ......... 40:485(h). June 30, 1949, ch. 288, title II, § 204(h), as added Pub. L. 101–510, div. B, title XXVIII, § 2805(3), Nov. 5, 1990, 104 Stat. 1786; Pub. L. 104–106, div. A, title XV, § 1502(f)(7), div. B, title XXVIII, § 2818(b), Feb. 10, 1996, 110 Stat. 510, 555; Pub. L. 106–65, title X, § 1067(18), Oct. 5, 1999, 113 Stat. 775; Pub. L. 107–107, § 2812, Dec. 28, 2001, 115 Stat. 1307. Page 64 TITLE 40—PUBLIC BUILDINGS, PROPERTY, AND WORKS § 573 In subsection (b)(4), the words ‘‘section 13(g) of the Surplus Property Act of 1944 (50 U.S.C. App. 1622(g))’’ are omitted because 50 App.:1622(g) has been repealed. Editorial Notes REFERENCES IN TEXT Section 2687(e)(1) of title 10, referred to in subsec. (b)(1)(A), was redesignated as section 2687(g)(1) by Pub. L. 112–239, div. B, title XXVII, § 2712(a)(1), Jan. 2, 2013, 126 Stat. 2144. AMENDMENTS 2006—Subsec. (b)(1)(B). Pub. L. 109–163 substituted ‘‘section 101(a)(17) of title 10’’ for ‘‘section 2667(h)(2) of title 10’’. 2005—Subsec. (a)(2)(A)(ii). Pub. L. 109–13 made tech- nical correction to directory language of Pub. L. 108–447, § 408. See 2004 Amendment note below. 2004—Subsec. (a)(2)(A)(ii). Pub. L. 108–447, § 408, as amended by Pub. L. 109–13, inserted ‘‘, highest and best use of property studies, utilization of property studies, deed compliance inspection, and the expenses incurred in a relocation’’ before period at end. § 573. Personal property The Administrator of General Services may retain from the proceeds of sales of personal property the Administrator conducts amounts necessary to recover, to the extent practicable, costs the Administrator (or the Administrator’s agent) incurs in conducting the sales. The Ad- ministrator shall deposit amounts retained into the Acquisition Services Fund established under section 321(a) of this title. From the amounts deposited, the Administrator may pay direct costs and reasonably related indirect costs in- curred in conducting sales of personal property. At least once each year, amounts retained that are not needed to pay the direct and indirect costs shall be transferred from the Acquisition Services Fund to the general fund or another ap- propriate account in the Treasury. (Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1107; Pub. L. 109–313, § 3(h)(4), Oct. 6, 2006, 120 Stat. 1736.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 573 ............. 40:485(i). June 30, 1949, ch. 288, title II, § 204(i), as added Pub. L. 103–123, title IV, § 7, Oct. 28, 1993, 107 Stat. 1247. Editorial Notes AMENDMENTS 2006—Pub. L. 109–313 substituted ‘‘Acquisition Serv- ices Fund’’ for ‘‘General Supply Fund’’ in two places. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–313 effective 60 days after Oct. 6, 2006, see section 6 of Pub. L. 109–313, set out as a note under section 5316 of Title 5, Government Orga- nization and Employees. § 574. Other rules regarding proceeds (a) CREDIT TO REIMBURSABLE FUND OR APPRO- PRIATION.— (1) APPLICATION.—This subsection applies to property acquired with amounts— (A) not appropriated from the general fund of the Treasury; or (B) appropriated from the general fund of the Treasury but by law reimbursable from assessment, tax, or other revenue or re- ceipts. (2) IN GENERAL.—The net proceeds of a dis- position or transfer of property described in paragraph (1) shall be— (A) credited to the applicable reimbursable fund or appropriation; or (B) paid to the federal agency that deter- mined the property to be excess. (3) CALCULATION OF NET PROCEEDS.—For pur- poses of this subsection, the net proceeds of a disposition or transfer of property are the pro- ceeds less all expenses incurred for the disposi- tion or transfer, including care and handling. (4) ALTERNATIVE CREDIT TO MISCELLANEOUS RECEIPTS.—If the agency that determined the property to be excess decides that it is uneco- nomical or impractical to ascertain the amount of net proceeds, the proceeds shall be credited to miscellaneous receipts. (b) SPECIAL ACCOUNT FOR REFUNDS OR PAY- MENTS FOR BREACH.— (1) DEPOSITS.—A federal agency that dis- poses of surplus property under this chapter may deposit, in a special account in the Treas- ury, amounts of the proceeds of the disposi- tions that the agency decides are necessary to permit— (A) appropriate refunds to purchasers for dispositions that are rescinded or that do not become final; and (B) payments for breach of warranty. (2) WITHDRAWALS.—A federal agency that de- posits proceeds in a special account under paragraph (1) may withdraw amounts to be re- funded or paid from the account without re- gard to the origin of the amounts withdrawn. (c) CREDIT TO COST OF CONTRACTOR’S WORK.—If a contract made by an executive agency, or a subcontract under that contract, authorizes the proceeds of a sale of property in the custody of a contractor or subcontractor to be credited to the price or cost of work covered by the con- tract or subcontract, then the proceeds of the sale shall be credited in accordance with the contract or subcontract. (d) ACCEPTANCE OF PROPERTY INSTEAD OF CASH.—An executive agency entitled to receive cash under a contract for the lease, sale, or other disposition of surplus property may accept property instead of cash if the President deter- mines that the property is strategic or critical material. The property is valued at the pre- vailing market price when the cash payment be- comes due. (e) MANAGEMENT OF CREDIT, LEASES, AND PER- MITS.—For a disposition of surplus property under this chapter, if credit has been extended, or if the disposition has been by lease or permit, the Administrator of General Services, in a manner and on terms the Administrator deter- mines are in the best interest of the Federal Government— (1) shall administer and manage the credit, lease, or permit, and any security for the cred- it, lease, or permit; and