To amend title 40, U.S. Code, to modify bargain-price purchase options
Dec 21, 2022
Statute: 136 Stat. 2371
Became law: Dec 21, 2022
Dec 21, 2022
Statute: 136 Stat. 2371
Became law: Dec 21, 2022
Summary
Requires future approval from Congress before a discounted purchase option in a federal property lease agreement can be used.
What problem does this solve?
The government could enter into lease agreements that allow federal property to be sold at a discount without direct approval from Congress for the sale itself. This law ensures that Congress must explicitly approve the sale of property through these discounted options before they can be exercised, giving lawmakers more oversight.
What does this law do?
Requires congressional approval for bargain-price purchase options
Prohibits the use of any discounted option to buy federal property in a lease agreement made on or after January 1, 2021, unless Congress passes a specific law to allow it.
Who does this affect?
- Federal government agencies
- Companies leasing federal property
What is the real world impact?
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Increases congressional oversight
Ensures that the executive branch cannot sell federal property at a discount through lease agreements without specific approval from Congress, preventing potential loss of value to the taxpayer.
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Prevents potential sweetheart deals
By requiring a separate Act of Congress to exercise a bargain-price option, the law makes it harder for deals that might unfairly benefit a private entity at the public's expense to go through without scrutiny.
When does this start?
This law's rule applies to all federal lease agreements made on or after January 1, 2021.