Federal Triangle Development Act Amendments of 1990

Federal Triangle Development Act Amendments of 1990 - Amends the Federal Triangle Development Act to exempt from any State and local sales taxation any materials, supplies, equipment, and goods connected with the development of the Federal Triangle property. Declares that no transfer or lease made pursuant to this Act, no instrument executed in connection with financing development of such property, and no lease or sublease of space by the International Cultural and Trade Center Commission to any nonprofit entity established for the exclusive purpose of operating, maintaining, and managing the international cultural and trade center shall be subject to State or local real or personal property tax, recordation tax, transfer tax, or special assessment.

Grants the Pennsylvania Avenue Development Corporation authority to obtain financing for the development of the Federal Triangle property from appropriate persons (including Federal agencies and instrumentalities).

Provides for the Board of Directors of the Corporation to pay a maximum of three Corporation officers or employees Senior Executive Service pay rates.

Adds the Secretary of the Treasury and the Secretary of Labor to the International Cultural and Trade Center Commission. Provides that a Commissioner's term of office, after initial appointment, shall be six years.

Prohibits the Commission staff from being composed of more than 15 individuals after the center's occupancy date (thus permitting a larger staff up to such date).

States that, on or before the center's occupancy date, Federal personnel shall be detailed and office space, supplies, equipment, and support services shall be provided on a nonreimbursable basis.

Authorizes the Commission to enter into contracts, leases, and agreements under such Act notwithstanding other provisions of law relating to acquisition, disposal, and use of property.

Removes the annual limitation on the Commission's expenses for overhead costs for the period before occupancy of the center. Excludes certain operation and maintenance expenses from overhead expenses of the center.

Authorizes appropriations for the Commission and the center for FY 1991. Provides for reimbursement of the Commission by a Federal agency for any program the agency requests.

Requires the Commission to prepare a business plan for operating the center that contains the amount of space necessary for such operation before entering into an agreement with the General Services Administration (GSA)to lease space in the center. Requires the Commission to submit such plan to specified congressional committees and GSA. Requires GSA to approve the plan if it assures that the Commission will fulfill its responsibilities under the lease.

Provides for annual payment to the GSA for various costs related to lease of space for the center.

Authorizes nonprofit entities that manage the international cultural and trade center to purchase supplies directly from GSA under the conditions and terms applicable to Federal agencies.

Defines "occupancy date" as the date on which the building and the center are substantially completed and available for public use and occupancy.

 
HR 5071 IH
101st CONGRESS
2d Session
 H. R. 5071
To amend the Federal Triangle Development Act relating to the financing,
planning, construction, and operation of the international and cultural
trade center, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
June 19, 1990
Mr. BOSCO introduced the following bill; which was referred jointly to the
Committees on Public Works and Transportation and Interior and Insular Affairs
A BILL
To amend the Federal Triangle Development Act relating to the financing,
planning, construction, and operation of the international and cultural
trade center, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Federal Triangle Development Act Amendments
  of 1990'.
SEC. 2. APPLICABILITY OF CERTAIN STATE AND LOCAL TAX LAWS.
  (a) CONSTRUCTION OF BUILDING- Section 5(f) of the Federal Triangle
  Development Act (40 U.S.C. 1104(f)) is amended to read as follows:
  `(f) APPLICABILITY OF CERTAIN LAWS-
  `(1) BUILDING PERMITS AND INSPECTION- Any person who enters into an agreement
  with the Corporation under subsection (b) for development of the Federal
  Triangle property shall not, with respect to such development, be subject to
  any State or local law relating to building permits and building inspection.
  `(2) STATE AND LOCAL SALES TAXES- No State and local sales, use, and
  similar taxes shall apply to any of the following:
  `(A) Materials, supplies, equipment, and goods used in connection with
  the development of the Federal Triangle property to the extent of such use.
  `(B) Materials, supplies, equipment, and goods physically incorporated
  into the construction of the building under this section.
  `(C) Materials, supplies, equipment, and goods transferred to the United
  States for use in the building after its construction.
  `(3) STATE AND LOCAL PROPERTY TAXES- No State or local real or personal
  property tax, recordation tax, transfer tax, or special assessment shall
  apply to any of the following:
  `(A) The Federal Triangle property and any improvements thereto.
  `(B) A transfer made under section 3.
  `(C) A lease entered into under subsection (b), section 6(a), or section
  8(a).
  `(D) An instrument executed in connection with financing development of
  the Federal Triangle property.'.
  (b) OPERATION, MAINTENANCE, AND MANAGEMENT- Section 8 of such Act (40
  U.S.C. 1107) is amended by redesignating subsection (h) as subsection (g)
  and by inserting after subsection (d) the following new subsection:
  `(e) APPLICABILITY OF STATE AND LOCAL SALES, USE, AND SIMILAR TAX LAWS- For
  purposes of State and local sales, use, and similar tax laws, any nonprofit
  entity established for the exclusive purpose of operating, maintaining,
  and managing the international and cultural trade center, described in
  section 501(c)(3) of the Internal Revenue Code of 1986, and exempt from
  tax under section 501(a) of such Code shall, with respect to materials,
  supplies, equipment, goods, labor, or services to be provided for operating,
  maintaining, and managing such center, be treated as the Commission would
  be treated under such laws if the Commission were providing such materials,
  supplies, equipment, goods, labor, or services.'.
  (c) LEASES OF SPACE IN INTERNATIONAL CULTURAL AND TRADE CENTER- Section
  8 of such Act is further amended by inserting before subsection (g), as
  redesignated by subsection (b) of this section, the following new subsection:
  `(f) APPLICABILITY OF STATE AND LOCAL PROPERTY TAX LAWS TO LEASES OF SPACE-
  No State or local real or personal property tax, recordation tax, transfer
  tax, or special assessment shall apply to any lease or sublease of space
  under this section entered into by the Commission or a nonprofit entity
  described in subsection (e).'.
SEC. 3. FINANCING.
  Section 5(h) of the Federal Triangle Development Act (40 U.S.C. 1104)
  is amended to read as follows:
  `(h) POWERS OF THE CORPORATION-
  `(1) IN GENERAL- The Corporation shall have with respect to its duties under
  this Act any powers which the Corporation has under section 6 (other than
  paragraphs (9) and (10)) of the Pennsylvania Avenue Development Corporation
  Act of 1972 (40 U.S.C. 875) with respect to its duties under such Act.
  `(2) AGENCY AGREEMENTS- The Corporation may enter into agreements with any
  Federal agency or the Commission with respect to this Act or as permitted
  or authorized by section 1535 of title 31, United States Code.
  `(3) Financing agreements-
  `(A) IN GENERAL- Notwithstanding any other provision of law, the Corporation,
  in consultation with the Administrator and the Commission, may obtain
  financing for the development of the Federal Triangle property from such
  persons (including agencies and instrumentalities of the United States) as
  the Corporation determines appropriate and may enter into such agreements
  with such persons as may be necessary to obtain such financing, including
  agreements necessary for the issuance and sale through such a person of
  securities representing or backed by the obligation of the Administrator
  to make payments under the lease agreement entered into under section 6.
  `(B) USE OF PROCEEDS- If, under this paragraph, the Corporation obtains
  financing or enters into an agreement which authorizes a person to issue
  and sell securities, the Corporation may--
  `(i) expend the funds received under this paragraph for development of
  the Federal Triangle property;
  `(ii) direct such person as to the expenditure of such funds for the
  development or as to the investment in obligations of the United States
  or obligations the principal and interest of which are guaranteed by the
  United States;
  `(iii) direct such person as to the disposition of funds received through
  the sale of such securities pending their use for the development; and
`  (iv) invest funds received under this paragraph in such obligations
pending their use for the development.'.
SEC. 4. SES SALARY RATES FOR CERTAIN PADC EMPLOYEES.
  Section 5 of the Federal Triangle Development Act (40 U.S.C. 1104) is amended
  by redesignating subsection (i), and any references thereto, as subsection
  (j) and by inserting after subsection (h) the following new subsection:
  `(i) Salary Rates for Certain Corporation Employees-
  `(1) INCREASE TO SES RATES- Notwithstanding any other provision of law,
  the Board of Directors of the Corporation may, at any time before the date
  on which development of the Federal Triangle property is completed, pay
  each of not to exceed 3 officers or employees of the Corporation at any
  rate under section 5382 of title 5, United States Code (relating to rates
  of pay for the Senior Executive Service), which exceeds the rate of basic
  pay which would otherwise be payable to the officer or employee involved.
  `(2) NONESTABLISHMENT OF SES POSITION- Nothing in this subsection shall be
  considered to establish any Senior Executive Service position or to entitle
  any individual selected to receive a higher rate of basic pay under paragraph
  (1) to be treated as a member of the Senior Executive Service.'.
SEC. 5. MEMBERSHIP OF INTERNATIONAL AND CULTURAL TRADE CENTER COMMISSION.
  (a) ADDITION OF SECRETARIES OF THE TREASURY AND LABOR- Section 7(c)(1)
  the Federal Triangle Development Act (40 U.S.C. 1106(c)(1)) is amended--
  (1) by striking `15' and inserting `17';
  (2) by redesignating subparagraphs (D), (E), (F), (G), (H), (I), and (J)
  as subparagraphs (F), (G), (H), (I), (J), (K), and (L), respectively; and
  (3) by inserting after subparagraph (C) the following new subparagraphs:
  `(D) The Secretary of the Treasury or the Secretary's delegate.
  `(E) The Secretary of Labor or the Secretary's delegate.'.
  (b) TERMS OF MEMBERS- Section 7(c)(2)(A) of such Act is amended by striking
  `Members' and inserting `members of the Commission' and by adding at the
  end the following new sentence: `Thereafter, the terms of office of the
  private sector members shall be 6 years.'.
  (c) CONFORMING AMENDMENTS- Section 7(c) of such Act is further amended--
  (1) in each of subparagraphs (A), (B), and (C) of paragraph (1) by striking
  `his' and inserting `the Secretary's';
  (2) in paragraph (1)(F), as redesignated by subsection (a) of this section,
  by striking `his' and inserting `the Trade Representative's';
  (3) in paragraph (1)(G), as so redesignated, by striking `his' and inserting
  `the Administrator's';
  (4) in paragraph (1)(H), as so redesignated, by striking `his' and inserting
  `the Director's';
  (5) in paragraph (1)(I), as so redesignated, by striking `his' and inserting
  `the Chairman's';
  (6) in paragraph (1)(J), as so redesignated, by striking `his' and inserting
  `the Mayor's';
  (7) in paragraph (1)(K), as so redesignated, by striking `his' and inserting
  `the Chairman's';
  (8) in paragraph (3) by striking `(1)(J)' and inserting `(1)(L)';
  (9) in paragraph (4) by striking `8' and inserting `9'; and
  (10) in paragraph (5) by striking `(1)(J)' and inserting `(1)(L)'.
SEC. 6. STAFF OF COMMISSION.
  (a) OVERALL STAFF CEILING- Section 7(d)(1) of the Federal Triangle
  Development Act (40 U.S.C. 1106(d)(1)) is amended by inserting after `at
  any time' the following: `after the occupancy date of the international
  cultural and trade center'.
  (b) CEILING FOR APPOINTED STAFF; MAXIMUM PAY- Section 7(d)(2) of such Act
  is amended--
  (1) by striking `not to exceed 10 individuals' and inserting `a staff';
  (2) by inserting after the first sentence the following new sentence:
  `The staff may not exceed 10 individuals after the occupancy date of the
  international and cultural trade center.'; and
  (3) by striking `for GS-17 of the General Schedule' and inserting `to a
  member of the Senior Executive Service'.
  (c) DETAILED STAFF- Section 7(d)(3) of such Act is amended--
  (1) by inserting `the Secretary of the Treasury, the Secretary of Labor,'
  after `Secretary of Agriculture,';
  (2) by striking `, on a reimbursable basis,'; and
  (3) by adding at the end thereof the following new sentence: `Personnel
  detailed under this paragraph shall be detailed on a nonreimbursable
  basis on or before the occupancy date of the international cultural and
  trade center. Thereafter, personnel detailed under this paragraph may be
  detailed on a reimbursable or nonreimbursable basis as may be agreed upon
  by the Commission and the detailer.'.
SEC. 7. POWERS OF COMMISSION.
  (a) OFFICE SPACE AND SUPPLIES- Section 7(e) of the Federal Triangle
  Development Act (40 U.S.C. 1106(e)) is amended--
  (1) by inserting `the Secretary of the Treasury, the Secretary of Labor,'
  after `Secretary of Agriculture,';
  (2) by striking `, on a reimbursable basis,'; and
  (3) by adding at the end thereof the following new sentence: `Office space,
  supplies, equipment, and support services provided under this subsection
  shall be provided on a nonreimbursable basis on or before the occupancy
  date of the international cultural and trade center and on a reimbursable
  basis thereafter.'.
  (b) POWERS OF COMMISSION- Section 7(f)(6) of such Act is amended--
  (1) by striking `Subject to applicable provisions of law, the' and inserting
  `The'; and
  (2) by striking `or agreements' and all that follows through the period
  and inserting `(including personal service contracts), leases, and other
  agreements (including subleasing agreements and operation, maintenance,
  and management agreements for its space in the building to be constructed
  under section 5) to carry out any of the duties or functions of the
  Commission under this Act with such persons as the Commission considers
  appropriate. Notwithstanding any other provision of law relating to
  acquisition, disposal, or use of property (including provisions relating
  to advertising or other competitive procedures), such contracts, leases,
  and agreements may be entered into and shall contain such terms and
  conditions as the Commission determines to be appropriate to carry out
  the objectives of this Act. The Commission shall issue such regulations
  as may be necessary to establish procedures for the Commission to enter
  into contracts to carry out its duties under this Act.'.
  (c) Limitation on Expenses-
  (1) MAXIMUM AMOUNT- Section 7(g) of such Act is amended by striking paragraph
  (1) and inserting the following:
  `(1) MAXIMUM AMOUNT- The maximum aggregate amount of expenses which the
  Commission may incur for its overhead costs in any fiscal year beginning
  after the occupancy date of the international cultural and trade center
  may not exceed $1,000,000. Such costs include rent for the offices of the
  Commission and its staff, salaries, travel, temporary and intermittent
  services, and expenses under personal service contracts. Such costs do
  not include expenses incurred for operation and maintenance of the center,
  including rent and rehabilitation costs allocable to space utilized for the
  center and costs of management agreements, programs, and other operations
  of the center.'.
  (2) INFLATION ADJUSTMENT- Section 7(g)(2) of such Act is amended by inserting
  `beginning on the date of the enactment of this Act' after `adjusted'.
SEC. 8. FUNDING OF COMMISSION.
  Section 7(h) of the Federal Triangle Development Act (40 U.S.C. 1106(h))
  is amended to read as follows:
  `(h) Funding-
  `(1) AUTHORIZATION OF APPROPRIATIONS- For carrying out this section
  and section 8, there is authorized to be appropriated to the Commission
  $4,000,000 for fiscal year 1991 and $6,100,000 for fiscal year 1992. Such
  sums shall remain available until expended.
  `(2) REIMBURSEMENT- If the Commission conducts an activity or program at
  the request of any other Federal agency, the Commission may request such
  agency to reimburse the Commission for amounts expended by the Commission
  in carrying out such request. Such agency may reimburse the Commission from
  funds appropriated to such agency by interagency transfer in such amounts as
  the agency considers necessary to reimburse the Commission for such expenses.
  `(3) Transfers-
  `(A) REQUESTS- If the Commission incurs any expenses in carrying out its
  duties under this Act which are not reimbursed under paragraph (2), the
  Commission may request the Secretary of State, the Administrator, or any
  other official referred to in subsection (c)(1) to transfer to the Commission
  an amount equal to such expenses from funds appropriated to such official.
  `(B) AUTHORITY TO MAKE- Subject to subparagraphs (C) and (D), any official
  referred to in subsection (c)(1) may transfer such amounts from funds
  appropriated to such official as may be necessary to enable the Commission
  to carry out its duties under this Act.
  `(C) MAXIMUM AMOUNT- The aggregate amount of request for transfers, and
  the aggregate amount of transfers, under this paragraph may not exceed
  $1,000,000 in any fiscal year.
  `(D) LIMITATION ON EFFECT- This paragraph shall not be effective with
  respect to any fiscal year beginning after the occupancy date of the
  international cultural and trade center.
  `(4) DEPOSIT OF RECEIPTS- The Commission shall deposit all amounts it
  receives under this subsection into the account established by section
  8(d).'.
SEC. 9. OPERATION AND MANAGEMENT OF TRADE CENTER.
  (a) TERMS OF LEASE- Section 8(3)(B) of the Federal Triangle Development Act
  (40 U.S.C. 1107(a)(3)(B)) is amended to read as follows:
  `(B) Notwithstanding section 210(j) of the Federal Property and
  Administrative Services Act of 1949 (40 U.S.C. 490(j)), the Commission
  shall pay the Administrator for deposit into the Federal Building Fund--
  `(i) the annual amount necessary to amortize, over the term of the lease
  between the Administrator and the person selected to construct the building
  under section 5, the cost directly attributable to construction of the
  portion of the building leased by the Commission for the international
  cultural and trade center or such lesser amount as the Administrator and
  the Commission may agree;
  `(ii) on an annual basis, an amount equal to the actual cost of the
  operation and maintenance of such center to the extent that such center
  is not being operated by the Commission or a nonprofit entity described
  in section 8(e); and
  `(iii) on an annual basis, such amount as the Commission and Administrator
  may agree as is necessary for reserves to cover projected costs of major
  repairs, improvements, reconstructions, and replacements on the portion
  of the building so leased and other capital expenditures on such portion.'.
  (b) AUTHORITY FOR MANAGER TO PURCHASE SUPPLIES DIRECTLY FROM GSA- Section
  8(b) of such Act is amended by adding at the end the following new paragraph:
  `(5) AUTHORITY FOR MANAGER TO PURCHASE SUPPLIES DIRECTLY FROM GSA- If the
  Commission enters into a contract with a nonprofit entity to operate,
  maintain, and manage the international and cultural trade center, the
  Administrator of General Services shall furnish, upon request, such supplies
  and services to such person as the Administrator is authorized to provide
  to Federal agencies. Such supplies and services shall be supplied at such
  prices and subject to such terms and conditions as apply to supplies and
  services provided to Federal agencies.'.
  (c) Conforming Amendments-
  (1) RENTS AND FEES- Section 8(c)(1) of such Act is amended by striking
  `the first day the Commission deposits under this subsection funds into
  the account established under subsection (d),' and inserting `the occupancy
  date of the international cultural and trade center,'.
  (2) AVAILABILITY OF AMOUNTS IN ACCOUNT- Section 8(d)(3) of such Act is
  amended by striking subparagraph (B) and inserting the following new
  subparagraph:
  `(B) all expenses incurred by the Commission for its overhead, as described
  in section 7(g)(1), but not exceeding $1,000,000 in any fiscal year beginning
  after the occupancy date of the international cultural and trade center.'.
SEC. 10. OCCUPANCY DATE DEFINED.
  Section 10 of the Federal Triangle Development Act (40 U.S.C. 1109) is
  amended by adding at the end the following new paragraph:
  `(6) OCCUPANCY DATE- The term `occupancy date' as used with respect to the
  international cultural and trade center means the later of the following
  dates:
  `(A) The date on which construction of the building is substantially
  completed under section 5.
  `(B) The date on which all areas of the center are substantially available
  for public use and occupancy.'.