Sale or lease of state property

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 equivalent positions for the agency and may lapse or transfer appropriated moneys from any appropriation made to the agency, other than a sum sufficient appropriation, an appropriation made to the Board of Regents of the University of Wisconsin System, or an appropriation of segregated or federal revenues, to account for discontinuance of the operation of the facility by the agency.

Currently, with limited exceptions, each state agency must submit a biennial report to DOA containing an inventory of all real property under its jurisdiction together with the estimated fair market value of each property. Each agency must specifically identify underutilized assets in the inventory. Following receipt of the inventories, DOA must obtain appraisals of all property in the inventories identified by DOA for potential sale and submit to the commission an inventory containing the location, description, and fair market value of each property identified for potential sale.

Under this bill, with certain exceptions, DOA may sell or lease state-owned real property if DOA determines that the sale is in the best interest of the state and the Building Commission approves the sale. Any sale may be either on the basis of public bids, with DOA reserving the right to reject any bid in the best interest of the state, or negotiated prices. Sales are not subject to the approval of JCF. The bill also permits state agencies to sell real property under their jurisdictions to the extent permitted by law. Generally, DOA's authority does not extend to property that another agency has authority to sell. In addition, DOA's authority does not operate to permit the closure or sale of any facility or institution the operation of which is required by law and does not apply to property under the jurisdiction of the Board of Regents of the University of Wisconsin System and certain property under the jurisdiction of the Department of Health Services at the Northern Center for the Developmentally Disabled. Any sale by DOA may be with or without the approval of the agency having jurisdiction over the property to be sold. The bill does not afford to any entity the right of first refusal with respect to the proposed sale of any property and does not permit DOA to decrease the full-time equivalent positions or to lapse or transfer moneys from the appropriations of any agency. The net proceeds of any sale are used to retire any outstanding public debt that was incurred to acquire, construct, or improve the property being sold and if the property was acquired, constructed, or improved with federal financial assistance, to repay the federal government to the extent 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. DOA must use any remaining net proceeds to retire other outstanding public debt.

The bill also permits the Building Commission, with certain exceptions, to sell state-owned real property where this authority is not given to another state agency by law and to transfer land under its jurisdiction among agencies. Sales may be accomplished in a manner similar to the manner in which sales are accomplished by DOA, except that sales of surplus land having a value of $20,000 are subject to the approval of JCF. Under the bill, the commission does not have the authority to sell a parcel of state-owned real property once DOA notifies the commission that an offer of sale or sale with respect to the parcel is pending. The net proceeds of any sales by the commission are used to retire any public debt that was used to acquire or construct any improvements on the property being sold. The remaining net proceeds must be deposited in the budget stabilization fund.

The bill does not require state agencies to file biennial reports with respect to all real property under their jurisdictions but instead directs state agencies to report biennially to the commission concerning parcels of surplus land under their jurisdictions and directs the commission to compile biennially and transmit to JCF an inventory of state-owned surplus land.