A bill to amend the Federal Property and Administrative Services Act of 1949 to permit the disposal of surplus property to States and local governments for correctional facility use.

Amends the Federal Property and Administrative Services Act of 1949 to authorize the Administrator of General Services to sell or lease to State and local governments surplus property that the Attorney General recommends to be suitable and necessary for correctional facility use.

Directs the Administrator, when fixing the value of such property, to consider any benefit that may accrue to the United States from the use of such property by a State or local government. Entitles any such government that purchased surplus property for correctional facility use between January 1, 1982, and the enactment of this Act to a refund of any amount the government paid exceeding the value of such property as determined under this Act.