2005 Legislation
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SENATE BILL NO. 1083 – Transp Dept, surplus property sale

SENATE BILL NO. 1083

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Bill Status



S1083.....................................................by TRANSPORTATION
IDAHO TRANSPORTATION DEPARTMENT - SURPLUS PROPERTY - Amends existing law to
authorize the sale or exchange of surplus real property of the Idaho
Transportation Department to certain tax-supported local government
entities for less than the appraised value in accordance with specified
conditions.
                                                                        
02/02    Senate intro - 1st rdg - to printing
02/03    Rpt prt - to Transp
02/18    Rpt out - rec d/p - to 2nd rdg
02/21    2nd rdg - to 3rd rdg
02/22    3rd rdg - PASSED - 27-0-8
      AYES -- Andreason, Broadsword, Bunderson, Cameron, Coiner, Compton,
      Corder, Darrington, Davis, Gannon, Geddes, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- Brandt, Burkett, Burtenshaw, Goedde, Hill,
      Noble, Sweet, Williams
    Floor Sponsor - Marley
    Title apvd - to House
02/23    House intro - 1st rdg - to Transp
03/01    Rpt out - rec d/p - to 2nd rdg
03/02    2nd rdg - to 3rd rdg
03/09    3rd rdg - PASSED - 69-0-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bell,
      Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark,
      Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson,
      Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
      McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
      Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
      Wills, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Bedke
    Floor Sponsor - Shepherd(2)
    Title apvd - to Senate
03/10    To enrol
03/11    Rpt enrol - Pres signed
03/14    Sp signed
03/15    To Governor
03/21    Governor signed
         Session Law Chapter 100
         Effective: 07/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1083
                                                                        
                                BY TRANSPORTATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SURPLUS REAL PROPERTY  OF  THE  IDAHO  TRANSPORTATION  DEPARTMENT;
  3        AMENDING SECTION 58-335A, IDAHO CODE, TO AUTHORIZE THE SALE OR EXCHANGE OF
  4        SURPLUS  REAL  PROPERTY TO CERTAIN TAX-SUPPORTED LOCAL GOVERNMENT ENTITIES
  5        FOR LESS THAN THE APPRAISED VALUE IN ACCORDANCE WITH SPECIFIED CONDITIONS.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION 1.  That Section 58-335A, Idaho Code, be, and the same  is  hereby
  8    amended to read as follows:
                                                                        
  9        58-335A.  OTHER  LANDS  EXEMPT FROM ACT. The provisions of sections 58-331
 10    through 58-335, Idaho Code, shall not apply to surplus real properties of  the
 11    Idaho  transportation department, with the exclusion of office and maintenance
 12    yard sites. The Idaho transportation board shall promulgate  rules  to  govern
 13    the  sale  of  surplus real properties under this section, provided that in no
 14    case shall a property be sold or exchanged for a value less than  that  estab-
 15    lished  through  the appraisal process; and provided further that surplus real
 16    property may be offered for sale or exchange to any  tax-supported  agency  or
 17    political  subdivision of the state of Idaho, other than the state of Idaho or
 18    its agencies, in whose jurisdiction the property is located, at  a  negotiated
 19    price  not  to  exceed  the  appraised  value.  Such  surplus property sold or
 20    exchanged for less than the appraised value must be used in perpetuity  exclu-
 21    sively  for a public purpose which shall be stated in the deed of transfer. If
 22    the stated use shall cease, the property shall revert to the ownership of  the
 23    Idaho transportation department.
 24        For  the purpose of acquiring highway rights-of-way, the Idaho transporta-
 25    tion board is authorized to exchange surplus real property of  the  department
 26    for  other  parcels of real property. In exchanging real properties, the board
 27    shall cause both parcels of real property to  be  appraised,  and  either  the
 28    owner or the department shall pay to the other the difference in value.
 29        Before  the department disposes of surplus property at public sale, if the
 30    property is valued at less than ten thousand dollars ($10,000), the department
 31    shall first notify any person who owns real property which is contiguous  with
 32    the  surplus  property  of the department that he has first option to purchase
 33    the surplus property for an amount not less than  the  established  value.  If
 34    more  than  one  (1) adjoining owner wants to purchase the property, a private
 35    auction shall be held for such parties. If  no  owner  of  adjoining  property
 36    exercises his option to buy, the department may proceed to public sale.

Statement of Purpose / Fiscal Impact


                  STATEMENT  OF  PURPOSE

                        RS 14461C1

Idaho Code 58-335A requires that Idaho Transportation Department 
surplus property be sold for not less than its appraised value.  
The Department has the option of transferring surplus property at 
no cost to other government entities if it will be used for a 
transportation purpose.  Local government tax supported entities 
sometimes desire to acquire surplus Department property located in 
their jurisdiction for a public purpose other than one related to 
transportation. Because of budgets, the difficulty of governing 
entities making financial commitments beyond their term of office 
and the timing of sales by the Department, local government 
entities may not have funds to purchase property at the appraised 
value.  If they could acquire surplus Idaho Transportation 
Department property at a negotiated price less than the appraised 
value it would provide an opportunity to convert surplus Idaho 
Transportation Department land and buildings to a public purpose 
unrelated to transportation.  Examples include parks, playgrounds, 
public infrastructure and municipal parking. If property is 
purchased for less than the appraised price a reservation clause 
in the deed would prevent it from being sold or used for other 
than a public purpose. 


                         FISCAL  IMPACT

Assuming 10% of parcels presently sold or traded by ITD, which 
have netted $1.53 million per year over the past eight years, were 
claimed by local government entities at a negotiated price 
averaging 50% of the appraised price the revenue returned to the 
state highway fund would be reduced by $76,500 each year.



CONTACT	
Name:	  Leonard Hill
Agency:	  Idaho Transportation Department
Phone:	  334-8520

Statement of Purpose/Fiscal Impact	                S 1083