AB 317

Currently, with certain exceptions, the Department of Administration (DOA)

or the Building Commission may sell or lease state-owned real property if DOA or

the commission determines that the sale or lease is in the best interest of the state.

Any sale by DOA is subject to approval of the commission and any sale by DOA or

the commission is subject to approval by the Joint Committee on Finance (JCF). Any

sale may be either on the basis of competitive bids, with DOA or the commission

reserving the right to reject any bid in the best interest of the state, or on the basis

of negotiated prices as determined through a competitive or transparent process.

Any sale may be with or without the approval of the agency having jurisdiction over

the property to be sold. The authority does not apply to any property for which the

cost of acquisition, construction, or improvement was financed at least 50 percent by

gifts or grants or at least 50 percent by federal funds and does not apply to any

property that is owned or leased by the investment board. Also currently, various

state agencies have authority to sell or lease real property under their jurisdictions

subject to various conditions and limitations if DOA or the commission has not

exercised its authority to sell or lease the property and no sale or lease is pending.

The net proceeds of any sale by DOA or the commission are first used to retire any

public debt that was used to finance the acquisition, construction, or improvement

of the property that is sold. Thereafter, the net proceeds are used to pay the costs of

federal tax law compliance applicable to the debt. Thereafter, the net proceeds are

used to retire any revenue obligation debt in the fund that was used to acquire,

construct, or improve the property that was sold and thereafter, to pay the costs of

federal tax law compliance applicable to the debt and thereafter to retire any similar

revenue obligations. If the property was acquired, constructed, or improved with

federal financial assistance, DOA must pay to the federal government any of the net

proceeds required by federal law. If the property was acquired by gift or grant or with

gift or grant funds, DOA must adhere to any restriction governing use of the

proceeds. Thereafter, the net proceeds are used to retire other outstanding public

debt. Currently, if any property that is proposed to be sold by DOA or the commission

is co-owned by a nonstate entity, DOA or the commission must afford the co-owner

the right of first refusal to purchase the share of the property owned by the state on

reasonable financial terms established by DOA or the commission.

Currently, if DOA sells or leases a state-owned heating, cooling, or power plant,

DOA may contract with the purchaser to purchase the output of the plant. Currently,

if DOA or the commission sells any real property that was under the jurisdiction of

a state agency prior to the sale, the agency must convey all systems, fixtures, or other

property interests specified by DOA or the commission to the purchaser on terms

specified by DOA or the commission. Current law also provides that if DOA or the

commission sells or leases any property that was under the jurisdiction of a state

agency prior to the sale or lease, DOA may decrease the authorized full-time