2000 Legislation
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HOUSE BILL NO. 516 – Real property/state/surplus/disposl

HOUSE BILL NO. 516

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H0516......................................................by STATE AFFAIRS
STATE PROPERTY - Amends existing law to provide an exception to the
disposal of surplus real property; and to revise the procedure utilized by
the State Board of Land Commissioners for the disposal of surplus real
property of the state of Idaho.
                                                                        
02/07    House intro - 1st rdg - to printing
02/08    Rpt prt - to Rev/Tax
02/15    Rpt out - ref'd to St Aff
02/16    Rpt out - rec d/p - to 2nd rdg
02/17    2nd rdg - to 3rd rdg
02/25    3rd rdg - PASSED - 59-0-11
      AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Bruneel,
      Callister, Cheirrett, Clark, Crow, Cuddy, Denney, Field(13),
      Field(20), Gagner, Geddes, Hadley, Hammond, Hansen(23), Hansen(29),
      Henbest, Hornbeck, Jaquet, Judd, Kempton, Kendell, Kunz, Lake,
      Linford, Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moss,
      Moyle, Pearce, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff,
      Stone, Taylor, Tilman, Trail(Miller), Wheeler, Wood, Zimmermann
      NAYS -- None
      Absent and excused -- Barrett, Campbell, Chase, Deal, Ellsworth,
      Gould, Jones, Kellogg, Loertscher, Pischner, Mr Speaker
    Floor Sponsor - Hansen(23)
    Title apvd - to Senate
02/28    Senate intro - 1st rdg - to St Aff
03/09    Rpt out - rec d/p - to 2nd rdg
03/10    2nd rdg - to 3rd rdg
03/29    3rd rdg - PASSED - 32-0-3
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Ipsen, King-Barrutia, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Thorne, Whitworth, Williams
      NAYS--None
      Absent and excused--Davis, Keough, Wheeler
    Floor Sponsors - Bunderson, Davis
    Title apvd - to House
03/30    To enrol
03/31    Rpt enrol - Sp signed
04/03    Pres signed - to Governor
04/14    Governor signed
         Session Law Chapter 305
         Effective: 07/01/00

Bill Text


 H0516
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 516
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO DISPOSAL OF SURPLUS PROPERTY OF THE STATE OF IDAHO; AMENDING  SEC-
  3        TION  58-331,  IDAHO CODE, TO PROVIDE AN EXCEPTION TO THE DISPOSAL OF SUR-
  4        PLUS REAL PROPERTY; AMENDING SECTION 58-332, IDAHO  CODE,  TO  REVISE  THE
  5        PROCEDURE  UTILIZED  BY THE STATE BOARD OF LAND COMMISSIONERS FOR THE DIS-
  6        POSAL OF SURPLUS REAL PROPERTY OF THE STATE OF  IDAHO;  AND  PROVIDING  AN
  7        EFFECTIVE DATE.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION  1.  That  Section  58-331, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
                                                                        
 11        58-331.  DESIGNATION OF SURPLUS REAL PROPERTY. Real property of the  state
 12    of  Idaho,  the  use of which by any department, officer, board, commission or
 13    other administrative agency of the state shall be terminated by law, and  real
 14    property  in the custody and control of any such agency which the agency shall
 15    declare to be no longer useful to or usable by it, shall  be  deemed  surplus,
 16    and,  except as set forth in section 67-5709A, Idaho Code, custody and control
 17    thereof shall thereupon be vested in and title be  transferred  to  the  state
 18    board  of  land  commissioners, subject to disposition by said board in accor-
 19    dance with the provisions of this act.
                                                                        
 20        SECTION 2.  That Section 58-332, Idaho Code, be, and the  same  is  hereby
 21    amended to read as follows:
                                                                        
 22        58-332.  DISPOSAL  OF  SURPLUS  REAL PROPERTY. (1)  Upon transfer to it of
 23    such surplus real property the state board of land commissioners shall  ascer-
 24    tain  if  such  property is suitable for other state use, and if it determines
 25    that suitable use can be had is, then control and  custody  thereof  shall  be
 26    relinquished  by  said  the board to the agency by whom it shall determine the
 27    best use can be made. If no such use be determined, then the  state  board  of
 28    land  commissioners  shall  either by public sale, after notice by publication
 29    for four (4) consecutive weeks in a newspaper published in the county in which
 30    the property is situate, sell the same to the highest  and  best  bidder  upon
 31    terms and conditions to be determined by the board and specified in the notice
 32    of sale; or if the property is suitable for use by any tax-supported agency or
 33    unit  of the state of Idaho or the United States other than the state of Idaho
 34    or its agencies, may, by negotiated sale or  exchange,  transfer  or  exchange
 35    such  property  with such tax-supported agency or unit which can make best use
 36    of the property. Such disposition may be by negotiated sale or exchange;  pro-
 37    vided,  however,  that such negotiated sales, transfers, or exchanges shall be
 38    for adequate and valuable consideration.
 39        (2)  If no state agency acquires the surplus property, the board may  dis-
 40    pose  of the surplus property to any tax-supported agency or unit of the state
 41    of Idaho or the United States other than the state of Idaho or  its  agencies.
                                                                        
                                           2
                                                                        
  1    Such disposition may be by negotiated sale or exchange; provided however, that
  2    such  negotiated sales, transfers or exchanges shall be for adequate and valu-
  3    able consideration.
  4        (a)  In the event of any such contemplated sale, transfer or exchange  the
  5        state  board of land commissioners shall cause to be published a notice of
  6        such contemplated sale, transfer or exchange,  setting  out  in  full  the
  7        description  of  the  property concerned, both as to what is being offered
  8        and what is to be received, and the proposed use of the  property  by  the
  9        tax-supported unit which proposes to acquire such property.
 10        (b)    Such  notice  shall  be  published  in a newspaper published in the
 11        county in which the property is situate for  four  (4)  consecutive  weeks
 12        prior  to  a  certain fixed date therein, designating a time and place for
 13        public hearing in the matter.
 14        (c)  The state board of land commissioners shall determine within ten (10)
 15        days at the next regularly scheduled meeting subsequent to such hearing as
 16        to acceptance or rejection of such proposed sale,  transfer  or  exchange,
 17        and  if  accepted, the tax-supported unit shall thereafter have sixty (60)
 18        days in which to accept or reject the proffer, following such decision.
 19        (d)  If such negotiations fail, then the property may be subject to public
 20        sale as hereinabove set forth in this section.
 21        (3)  If no tax-supported agency or unit of  the  state  of  Idaho  or  the
 22    United  States  acquires the surplus property, the state board of land commis-
 23    sioners may offer at public sale, after notice of  publication  for  four  (4)
 24    consecutive weeks in a newspaper published in the county in which the property
 25    is  situate,  and  sell the same to the highest and best bidder upon terms and
 26    conditions to be determined by the board and specified in the notice of  sale.
 27    If  the property does not sell at public auction, the board may have the prop-
 28    erty appraised and enter into negotiations with any party(s) to effect  dispo-
 29    sition  of  the property for adequate and valuable consideration.  Sale may be
 30    by any method that will help dispose of the property including, but  not  lim-
 31    ited to, direct negotiations with interested parties, use of advertising, hir-
 32    ing real estate agents and public auction.
 33        (4)  In  all cases, the compensation received by the board for the sale of
 34    surplus property shall be returned to the agency which declared  the  property
 35    surplus  to  be  placed  in  such account as may be appropriate. The board may
 36    deduct the costs of the sale from any proceeds before  transmitting  the  pro-
 37    ceeds back to the agency which declared the property surplus.
                                                                        
 38        SECTION  3.  This  act shall be in full force and effect on and after July
 39    1, 2000.

Statement of Purpose / Fiscal Impact


STATEMENT OF PURPOSE

RS09741

STATE BUILDINGS MANAGEMENT REFORM - this is the fourth in a
package of six bills needed to improve cost-control and
efficiency over management of state building facilities.

This legislation applies only to the procedures followed in the
disposal of surplus real property held by a state agency for
purposes other than administrative sites (building and grounds)
that, by law, is handled by the Department of Lands (DOL).

Endowment lands are under the control of the State Land Board.
Administrative land and buildings under control of the
Department of Administration and are excluded from this
legislation.  Surplus or unusable land held by the Departments
of Parks and Recreation, Fish and Game and Transportation and
other agencies when the land to be disposed of is not used for
administrative purposes is included in this legislation.

Essentially, it provides that state agencies have the first
right of refusal to buy the property.  If not taken by a state
agency, it is offered to other state tax supported entities. 
Next in line would be federal agencies, followed by the general
public.  Sales price to other government agencies may be
negotiated.  Sales to the general public requires first to bid
at public auction.

It then enumerates procedures of sale or exchange to the public
that allows disposal at the highest price possible. 



                          FISCAL NOTE

No negative fiscal impact.  Will produce greater efficiency
that should result in cost savings.




CONTACT:  Senator Hal Bunderson (208) 332-1000
          Representative Randy Hansen (208) 332-1000


STATEMENT OF PURPOSE/ FISCAL NOTE                  Bill No. H 51