Federal Capital Revolving Fund
SEC. 9. REQUIREMENTS FOR PROJECTS TO BE HELD IN THE GSA INVENTORY.
In addition to any other existing requirements in law, the requirements in this section shall apply only to any purchase transfer to a purchasing agency that acquires real property space and services through the GSA. This Act neither provides new real property landholding or landmanaging authority to such purchasing agency nor otherwise affects any agency’s existing real property landholding or landmanaging authority.
(a) Approved Projects.—If an appropriations Act approves a purchase transfer to a purchasing agency other than the GSA for the costs of a project to be held in the GSA inventory, the following requirements shall apply.
(1) The purchasing agency shall immediately pay the purchase transfer amount, excluding any amount included for furniture, fixtures, and equipment, to the Administrator for deposit into the Federal Buildings Fund.
(2) The Administrator shall use such purchase transfer only to pay the costs of the approved project. The Administrator shall not charge a fee beyond the one-time administrative fee for the execution of the project.
(3) The project shall be under the custody and control of the Administrator.
(4) The occupancy agreement that the purchasing agency enters into with the GSA will recognize the purchasing agency’s investment in the project by providing for shell rent abatement, as follows:
(A) Rent payments to GSA start with occupancy.
(B) Rent payments to GSA shall equal operating costs only for the first five years (shell rent abatement).
(C) For years 6 through 25, rent payments shall equal operating costs plus a reduced shell rent negotiated between GSA and the agency such that the cumulative difference between the appraised market rent rate and operating rent equals the purchase transfer.
(D) The cumulative rent abatement shall not exceed the purchase transfer amount.
(5) The purchasing agency shall continue to be responsible for making annual repayments to the Fund in accordance with section 6(b).
The Federal Capital Revolving Fund Act of 2018 is proposed legislation that would reform the way the Federal Government purchases capital assets.
The structure of this section reflects an odd drafting style: An introduction such as seen here is not usual. In general, Congressional drafting begins with a section heading (numbered), and then is followed immediately by the subsection in lower case roman script. In certain circumstances, such as when definitions are used a lead in may be followed by paragraphs. This example may be seen in section 3 of the Congressional Budget Act of 1974. Having a paragraph before identifying section headings is unusual.
Also unusual is having a section heading (a) that is not followed by a subsection (b). Here, subsection (a), with the sideheading of ” Approved Projects”, is not followed by any subsection (b).
Section-by-Section for the Federal Capital Revolving Fund Act of 2018
Sec.9. Requirements for Projects to be Held in the GSA Inventory: This section applies to only to purchasing agencies that do not have authority under current law to be landholding or landmanaging agencies, and instead rely on GSA to provide their real property space and services. The purchasing agency shall transfer the purchase cost minus furniture, fixture, and equipment to GSA, and GSA shall use such amount to pay for construction. The facility, once complete, will be under the custody and control of GSA. Consistent with GSA current practice, this section provides the purchasing agency with rent credit toward the shell rent cost over up to a twenty five year period, reflecting the purchasing agency investment in the facility. The purchasing agency will continue to be responsible for making annual repayments in accordance with section 6.
[From the Budget Process section of the Analytical Perspectives volume of the President’s Fiscal Year 2020 Presidential Submission; pp. 138-140.]