
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 107-107 Section 2812]
[CITE: 40USC485]

 
             TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS
 
       CHAPTER 10--MANAGEMENT AND DISPOSAL OF GOVERNMENT PROPERTY
 
                   SUBCHAPTER II--PROPERTY MANAGEMENT
 
Sec. 485. Proceeds from transfer, sale, etc., of property


(a) Disposition of receipts

    All proceeds under this subchapter 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), (e), and (h) of this section.

(b) Deposit of proceeds from sales; use; report

    Except as provided in subsection (h) of this section, 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. 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, for costs of environmental and historic 
preservation services, 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 per centum 
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. Periodically, but not less often than once each year, 
any excess funds beyond current operating needs shall be transferred 
from the fund to miscellaneous receipts: Provided, That a report of 
receipts, disbursements, and transfers to miscellaneous receipts under 
this authorization shall be made annually in connection with the budget 
estimates to the Director of Office of Management and Budget and to the 
Congress.

(c) Credit to reimbursable fund or appropriation on certain transactions

    Where the property transferred or disposed of was acquired by the 
use of funds either not appropriated from the general fund of the 
Treasury or appropriated therefrom but by law reimbursable from 
assessment, tax, or other revenue or receipts, then the net proceeds of 
the disposition or transfer shall be credited to the reimbursable fund 
or appropriation or paid to the Federal agency which determined such 
property to be excess: Provided, That the proceeds shall be credited to 
miscellaneous receipts in any case when the agency which determined the 
property to be excess shall deem it uneconomical or impractical to 
ascertain the amount of net proceeds. As used in this subsection, the 
term ``net proceeds of the disposition or transfer'' means the proceeds 
of the disposition or transfer minus all expenses incurred for care and 
handling and disposition or transfer.

(d) Special account deposits

    Any Federal agency disposing of surplus property under this 
subchapter (1) may deposit, in a special account with the Treasurer of 
the United States, such amount of the proceeds of such dispositions as 
it deems necessary to permit appropriate refunds to purchasers when any 
disposition is rescinded or does not become final, or payments for 
breach of any warranty, and (2) may withdraw therefrom amounts so to be 
refunded or paid, without regard to the origin of the funds withdrawn.

(e) Sale proceeds offset against price or cost of contractor's work

    Where any contract entered into by an executive agency or any 
subcontract under such contract authorizes the proceeds of any sale of 
property in the custody of the contractor or subcontractor to be 
credited to the price or cost of the work covered by such contract or 
subcontract, the proceeds of any such sale shall be credited in 
accordance with the contract or subcontract.

(f) Acceptance of property in lieu of cash

    Any executive agency entitled to receive cash under any contract 
covering the lease, sale or other disposition of surplus property may in 
its discretion accept, in lieu of cash, any property determined by the 
President to be strategic or critical material at the prevailing market 
price thereof at the time the cash payment or payments became or become 
due.

(g) Management of credit, leases, and permits on property

    Where credit has been extended in connection with any disposition of 
surplus property under this subchapter or by War Assets Administration 
(or its predecessor agencies) under the Surplus Property Act of 1944, or 
where such disposition has been by lease or permit, the Administrator 
shall administer and manage such credit, lease, or permit, and any 
security therefor, and may enforce, adjust, and settle any right of the 
Government with respect thereto in such manner and upon such terms as he 
deems in the best interest of the Government.

(h) Property under control of a military department

    (1) If the Secretary of a military department determines that real 
property, and improvements thereon, under the control of that department 
(other than property at a military installation designated for closure 
or realignment) is excess to the needs of that department, the Secretary 
of Defense shall provide that the property be made available for 
transfer without reimbursement to the other military departments within 
the Department of Defense. If the property is not transferred to another 
military department, the Secretary of the military department concerned 
shall request the Administrator to transfer or dispose of such property 
in accordance with the provisions of this Act, section 13(g) of the 
Surplus Property Act of 1944 (50 U.S.C. App. 1622(g)), or other 
applicable law.
    (2) The Administrator shall deposit any proceeds (less expenses of 
transferring or disposing of the property as provided in subsection (b) 
of this section) in a special account in the Treasury of the United 
States. The amount deposited in such account with respect to the 
transfer or disposal of any such property shall be available, to the 
extent provided in appropriation Acts, as follows:
        (A) 50 percent of such amount shall be available for facility 
    maintenance and repair or environmental restoration at the military 
    installation where the property is located.
        (B) 50 percent of such amount shall be available for facility 
    maintenance and repair and for environmental restoration by the 
    military department that had jurisdiction over the property before 
    it was disposed of or transferred.

    (3) As part of the annual request for authorizations of 
appropriations to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives, the 
Secretary of Defense shall include an accounting of each transfer and 
disposal made in accordance with this subsection during the fiscal year 
preceding the fiscal year in which the request is made, including a 
detailed explanation of each such transfer and disposal and of the use 
of the proceeds received from it by the Department of Defense.
    (4) This subsection does not apply to damaged or deteriorated 
military family housing facilities conveyed under section 2854a of title 
10.
    (5) For purposes of this subsection, the term ``military 
installation'' shall have the meaning given that term in section 
2687(e)(1) of title 10.

(i) Recovery of costs incurred in sales of personal property

    The Administrator may retain from the proceeds of sales of personal 
property conducted by the General Services Administration amounts 
necessary to recover, to the extent practicable, costs incurred by the 
General Services Administration (or its agent) in conducting such sales. 
The Administrator shall deposit amounts retained into the General Supply 
Fund established under section 756(a) of this title and may use such 
portion of amounts so deposited as is necessary to pay (1) direct costs 
incurred by the General Services Administration in conducting sales of 
personal property, and (2) indirect costs incurred by the General 
Services Administration that are reasonably related to those sales. 
Amounts retained that are not needed to pay the direct and indirect 
costs incurred shall periodically, but not less than annually, be 
transferred from the General Supply Fund to the general fund or another 
appropriate account in the Treasury.

(June 30, 1949, ch. 288, title II, Sec. 204, 63 Stat. 388; Aug. 31, 
1954, ch. 1178, 68 Stat. 1051; Pub. L. 86-215, Sept. 1, 1959, 73 Stat. 
446; Pub. L. 96-41, Sec. 3(d), July 30, 1979, 93 Stat. 325; Pub. L. 100-
612, Sec. 6, Nov. 5, 1988, 102 Stat. 3181; Pub. L. 101-510, div. B, 
title XXVIII, Sec. 2805, Nov. 5, 1990, 104 Stat. 1786; Pub. L. 103-123, 
title IV, Sec. 7, Oct. 28, 1993, 107 Stat. 1247; Pub. L. 104-106, div. 
A, title XV, Sec. 1502(f)(7), div. B, title XXVIII, Sec. 2818(b), Feb. 
10, 1996, 110 Stat. 510, 555; Pub. L. 106-65, div. A, title X, 
Sec. 1067(18), Oct. 5, 1999, 113 Stat. 775.)

                       References in Text

    This Act, referred to in subsecs. (b) and (h)(1), is act June 30, 
1949, ch. 288, 63 Stat. 377, as amended, known as the Federal Property 
and Administrative Services Act of 1949. For complete classification of 
this Act to the Code, see Short Title note set out under section 471 of 
this title and Tables.
    For classification and history of the Surplus Property Act of 1944, 
referred to in subsec. (g), see note set out under section 473 of this 
title.

                          Codification

    Section was formerly classified to section 234 of Title 41, Public 
Contracts.


                            Prior Provisions

    Provisions similar to those comprising subsec. (a) of this section 
were contained in act June 30, 1949, ch. 286, title I, Sec. 101, 63 
Stat. 363; June 30, 1949, ch. 288, title I, Sec. 102(a), 63 Stat. 380, 
which was classified to section 314a of this title.


                               Amendments

    1999--Subsec. (h)(3). Pub. L. 106-65 substituted ``and the Committee 
on Armed Services'' for ``and the Committee on National Security''.
    1996--Subsec. (h)(3). Pub. L. 104-106, Sec. 1502(f)(7), substituted 
``Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives'' for ``Committees on 
Armed Services of the Senate and of the House of Representatives''.
    Subsec. (h)(4), (5). Pub. L. 104-106, Sec. 2818(b), added par. (4) 
and redesignated former par. (4) as (5).
    1993--Subsec. (i). Pub. L. 103-123 added subsec. (i).
    1990--Subsec. (a). Pub. L. 101-510, Sec. 2805(1), substituted 
``subsections (b), (c), (d), (e), and (h)'' for ``subsections (b), (c), 
(d), and (e)''.
    Subsec. (b). Pub. L. 101-510, Sec. 2805(2), substituted ``Except as 
provided in subsection (h) of this section, all the proceeds'' for ``All 
the proceeds''.
    Subsec. (h). Pub. L. 101-510, Sec. 2805(3), added subsec. (h).
    1988--Subsec. (b). Pub. L. 100-612 substituted ``Office of 
Management and Budget'' for ``Bureau of the Budget'' in two places and 
inserted ``for costs of environmental and historic preservation 
services,'' after ``realty brokers,''.
    1979--Subsec. (f). Pub. L. 96-41 substituted ``the President'' for 
``the Munitions Board''.
    1959--Subsec. (b). Pub. L. 86-215 substituted ``utilization of 
excess property and the disposal'' for ``dispositions'' in second 
sentence.
    1954--Subsecs. (b) to (g). Act Aug. 31, 1954, added subsec. (b) and 
redesignated former subsecs. (b) to (f) as (c) to (g), respectively.

                          Transfer of Functions

    War Assets Administration abolished June 30, 1949, and its functions 
transferred for liquidation to General Services Administration by act 
June 30, 1949, ch. 288, Sec. 105, 63 Stat. 381.

                         Delegation of Functions

    Functions of President under subsec. (f) of this section delegated 
to Secretary of Defense, see section 3 of Ex. Ord. No. 12626, Feb. 25, 
1988, 53 F.R. 6114, set out as a note under section 98 of Title 50, War 
and National Defense.


                            Cross References

    Crediting of proceeds from sales of surplus property to 
miscellaneous receipts of the Treasury, see section 460l-5 of Title 16, 
Conservation.

                  Section Referred to in Other Sections

    This section is referred to in sections 483, 484, 490, 513 of this 
title; title 10 section 2831; title 16 section 460l-5; title 38 section 
8165.
