SB 367

Existing law requires the State Department of Finance to develop and maintain an inventory of all facilities and lands owned, leased, rented, or otherwise occupied and maintained by any agency of the state or the judicial branch. Existing law also provides procedures for the sale and lease of state owned property

This bill would require all state agencies to self-report facilities and lands they own or lease to the State Department of Finance; would further provide for the sale or transfer of surplus lands; would provide for the distribution of proceeds from the sale of surplus lands to both the General Fund and the agency that owned or maintained the property; and would provide penalties

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment

Relating to state-owned lands; to amend Sections 9-15-70, 9-15-74, 9-15-75, 9-15-76, 9-15-80, 9-15-82, 9-15-83, 9-15-84, and 41-4-18, Code of Alabama 1975; to require all state agencies to self-report lands they own or lease to the Department of Finance; to further provide for the sale or transfer of surplus lands; to provide for a distribution of proceeds from the sale of surplus lands to both the General Fund and the agency that owned or maintained the property; to provide penalties; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.

Section 1

Sections 9-15-70, 9-15-74, 9-15-75, 9-15-76, 9-15-80, 9-15-82, 9-15-83, 9-15-84, and 41-4-18, Code of Alabama 1975, are amended to read as follows:

§9-15-70.

This article applies to all real property and interests therein owned by the State of Alabama and the departments, boards, bureaus, commissions, institutions, corporations, and agencies of the state with the exception of those sales, transfers, and reversions set out in Section 9-15-82. As used in this article, real property shall include land, lots, buildings or other structures, and all things and interests, including leasehold interests, pertaining thereto, and all other things annexed or attached to the land which would pass to a vendee by conveyance of the land or lot, including mineral and gas and oil interests. The state has the right to reserve all or any part of the mineral, oil, or gas interests and also the right of ingress and egress thereto to the land.

§9-15-74.

(a) After obtaining an appraisal on the real property and consulting with the chief executive officer of the department, board, bureau, commission, institution, corporation, or agency which desires to sell or lease the real property, the Lands Division shall establish and publish the minimum amount for which the real property may be sold or leased. The determination to sell or lease the real property shall be made by the chief executive officer of the department, board, bureau, commission, institution, corporation, or agency desiring to sell or lease the real property with the approval of the Governor after giving due consideration to the results of the appraisal made upon the real property. With the approval of the Governor, the chief executive officer shall have the right to accept or reject all bids submitted for the purchase of the real property under these provisions. The chief executive officer and the Governor in consultation with the Director of the Lands Division of the state Department of Conservation and Natural Resources shall determine if the sale or lease of real property is to be by free and open competitive advertised public auction or advertised sealed bids.

(b) For properties made available pursuant to Section 41-4-18, the Lands Division shall first provide notice of the availability of the property to other state agencies, and shall give priority to state agencies it determines to be in need of land. If no other state agency expresses an interest in the property within 60 days, the Lands Division shall then advertise the availability of the property to the municipality or county in which it is located.

(c) If a municipal agency or county government agency does not submit a bid for a property offered to it under subsection (b) within 60 days, then the Lands Division may advertise the property for sale publicly.

§9-15-75.

Every proposal to make a sale or lease under this article, other than those provided for by subsection (b) of Section 9-15-74, shall be advertised for at least once a week for four weeks in advance of the date fixed for receiving bids or public auction. The advertisement shall appear at least once a week for four consecutive weeks in a newspaper of general circulation in the county or counties where the property is located, and at least one time in three other newspapers of general circulation throughout the state. Property located outside the State of Alabama shall be advertised at least one time in three newspapers of general circulation throughout the state. A copy of the proposal shall simultaneously be posted on a readily accessible public bulletin board at the main office of the Lands Division of the state Department of Conservation and Natural Resources, as well as at the property itself. Persons who request notification of the sale or lease of real property by the state and who provide their mailing address or e-mail address with the Lands Division shall be sent notice of the sale or lease. Advertisements for bids shall state the real property to be sold, by description, where the property is located, and the dates and times when the property may be inspected. The advertisements shall further state the date, time, and place of auction or opening of sealed bids. The advertisements shall state that all bids may be rejected by the state. No bid shall be received at any time after the time advertised.

§9-15-76.

Each person or corporation submitting a bid on real property or an interest therein to be sold or leased by the State of Alabama under this article shall present with his or her bid, payable to the Lands Division of the state Department of Conservation and Natural Resources, a certified check or bank cashier's check in the amount to be determined by the Lands Division not to exceed 20 percent of his or her bid, as a binder on the real property upon which he or she has bid. If the property is being sold at public auction, the Lands Division shall determine the amount of the binder required. The binder shall be forfeited by the person or corporation to whom the bid is awarded if the person or corporation does not complete purchase by presenting to the state a cashier's check or certified check for the amount due less the amount of the binder previously submitted on the real property within 30 days after receiving notice in writing and by e-mail that he or she is the successful bidder. The binder shall be applied to the purchase price of the successful bid. The Director of the Lands Division for good cause shown may extend the period for completing the sale for one additional period of seven days. Certified checks submitted as binders by those persons or corporations not awarded the bid shall be returned to the persons or corporations.

§9-15-80.

(a) Officers and employees of the department selling or leasing the real property and officers and employees of the Department of Conservation and Natural Resources, as well as members of their families, shall be excluded from bidding on the property at a public auction or by sealed bids.

(b) It shall be unlawful for any individual to bid on or purchase property offered pursuant to this article for the benefit of any state employee or any relative of any state employee who is excluded from bidding on the property by this article. Violation of this subsection shall constitute a Class C misdemeanor.

(c) Except as otherwise provided in subsection (a), Other officers or employees of the state shall not be excluded from bidding may bid on or purchasing purchase the real property at public sale or sealed bid.

§9-15-82.

(a) This Except as otherwise provided in this article, this article shall not apply to the transfers of real property between departments, boards, bureaus, commissions, institutions, corporations, or agencies of the state. These transfers may be made by mutual agreements between the chief executive officers of the respective departments with the approval of the Governor. This article shall not apply to any of the following:

(1) the The leasing or sale of timber from unused lands under Section 9-15-1 et seq.; to

(2) the The leasing or sale of timber from school lands and swamp and overflowed lands under Section 9-15-30 et seq.;

(3) to the The leasing of oil, gas, and other minerals under Section 9-17-60 et seq.; real

(4) Real property sold by the Department of Revenue under tax sales and redemptions.; to the

(5) The sale of property by the Alabama Historical Commission under Section 41-9-249(7).; to reversions

(6) Reversions made under Section 31-4-18.; to the

(7) The sale or conveyance of real property by the Alabama Housing Finance Authority or the Alabama Mental Health Finance Authority.; to the

(8) The sale or lease of any interest in real property owned for investment purposes by any trust fund administered by the Division of Risk Management.; or to property

(9) Property traded in right of way negotiations or sales of excess right of way or uneconomic remnants by the State Department of Transportation.

(b) Notwithstanding any other provisions of this article, and except as provided in Section 41-4-18, the Alabama Forestry Commission shall have the authority to conduct real property sales in accordance with this article without going through the Lands Division. In so doing, the Alabama Forestry Commission shall comply with all other provisions of this article.

(c) This article shall not apply to the granting of easements, rights-of-way for utilities, roads, streets, and sidewalks where there is no competitive market.

(d) Notwithstanding any other provision of this article, institutions and systems of higher education with separately constituted boards of trustees, or those institutions of higher education subject to the supervision and authority of the State Board of Education that have written policies and procedures governing transfers of interest in real property, shall have the authority to conduct real property sales and leases by public auction or publicly sought sealed bid in accordance with procedures in the article for advertising and receiving bids, without going through the Lands Division of the state Department of Conservation and Natural Resources. Furthermore, in those

(e) In cases in which it can be economically justified and it is deemed to be in the best interest of the institution or system and the State of Alabama, an institution of higher education described in subsection (d) may to offer an interest in real property for sale or lease through a listing with a duly licensed real estate broker who shall publicize the offer in accordance with customary practices or through negotiation after publicly announced requests for proposals to sell or lease the property are made, rather than through a procedure otherwise described in this article, the institution or system may do so, provided that a if:

(1) A written declaration setting forth the specific reasons why it is deemed to be in the best interest of the institution or system and the State of Alabama to make the specific sale or lease in question in such manner is made by an agent of the institution authorized by the board of trustees or the State Board of Education, and subsequently.

(2) That declaration is ratified by the board of trustees or the State Board of Education. and the

(3) The document shall be is retained and made a part of the permanent file and shall be is made open to public inspection.

(f) Sales and leases transacted as described in this section shall be deemed to be in compliance with all provisions of this article. Ground leases and leases of facilities by institutions of higher education to social or professional organizations, faculty members, employees, or for institution-related purposes which are designed to enhance the operation of the institution and are declared to be in the best interest of the institution by the board of trustees or the State Board of Education, are exempt from the provisions of this article. Such declaration shall be maintained as aforesaid.

(b) Except as set out hereinafter, nothing herein contained (g) Except as otherwise provided in this article, this article shall not be construed to apply in any manner to the sale or lease of any real property or any interest therein owned in whole or in part by any county or municipal board of education, any county or municipal government or any of their respective boards, agencies, departments, corporations, or instrumentalities including corporations and/or boards in regard to which any county or municipal governing body is a determining or appointing authority.

Provided that nothing herein contained shall be construed to apply in any manner to the sale or lease of any real property or interest therein owned by the State of Alabama and the departments, boards, bureaus, commissions, instrumentalities, corporations, and agencies of the state to the United States government, any county or municipal board of education, any county or municipal governing body or any of their respective boards, agencies, departments, corporations, or instrumentalities including corporations and/or boards in regard to which any county or municipal governing body is a determining or appointing authority, subject to the condition that such property or any interest therein is not resold, leased, or otherwise transferred in whole or in part, within three years, to any private person, firm, or corporation without compliance with the provisions of this article. Provided, however, that if the

(h) If any state property sold to a municipal agency or county agency is to be sold by that municipal agency or county agency within three years from the date it was acquired purchased, the state shall have the right to repurchase the property at the price it was sold by the state. Provided, further, that all such

(i) All real property transactions between the United States government, any county or municipal board of education, any county or municipal government, or any of their respective boards, agencies, departments, corporations, or instrumentalities including corporations or boards and the state or any department, board, bureau, commissions, instrumentalities, corporations, and agencies of the state shall have the approval of the Governor and written notice of such the transaction shall be given to the Lands Division of the Department of Conservation and Natural Resources at least ays before the closing of such the transaction.

(c)(j) Notwithstanding any other provision of this article, this article shall not apply to lease-leaseback transactions entered into by institutions and systems of higher education with separately constituted boards of trustees provided that any such the institution or system of higher education shall at all times remain the owner of any real property that is the subject of any such the lease-leaseback transaction.

(d)(k) Notwithstanding any other provision of this article, this section shall not apply to the sale, lease, or transfer of any property owned by a municipal commercial development authority subject to Article 6, commencing with Section 11-54-170, of Chapter 54 of Title 11.

§9-15-83.

(a) Whenever any real property is sold or leased under this article, the proceeds from the sale, less the expenses of the sale or lease, shall be deposited to the credit of the fund of the state department, commission, board, bureau, institution, corporation, or agency which offered the real property for sale.

(b) Whenever any real property is sold or leased under this article and pursuant to the requirements of Section 41-4-18, the proceeds from the sale, less the expenses of the sale or lease, shall be divided evenly between the General Fund and the state department, commission, board, bureau, institution, corporation, or agency which owned, leased, rented, or otherwise occupied or maintained the property.

§9-15-84.

The Lands Division is authorized to promulgate such shall adopt any rules and regulations as may be necessary to implement the provisions of this article for implementing the requirements imposed by the act amending this section no later than 180 days after the effective date of the act.

§41-4-18.

(a)(1) The State Department of Finance shall develop and maintain an automated online inventory of all facilities and lands owned, leased, rented, or otherwise occupied or maintained by any agency of the state or by the judicial branch, except for the following:. The facilities inventory shall include the location, occupying agency, and ownership.

a. Tax-deeded land.

b. Land held for highway purposes.

c. Land that has escheated to the state.

d. Land that has been distributed to the state by court decree in estates of deceased persons.

(2) All state agencies shall self-report facilities and lands owned, leased, rented, or otherwise occupied or maintained by them to the State Department of Finance. The online inventory shall contain all of the information required in subdivision (6).

(2)(3) For the purposes of this section, the term facility means buildings, structures, and building systems, and does not include facilities of the State Department of Transportation or the Alabama State Port Authority.

(3)(4) The State Department of Transportation shall develop and, maintain, and make available to the public an online inventory of their its own facilities, which inventories should be available to the public online and lands. The State Department of Transportation shall provide the department with all of the information contained in its inventory, and the State Department of Finance shall publish any updates to its online inventory as they occur.

(4)(5) The Alabama Commission on Higher Education and the State Department of Postsecondary Education, respectively, shall develop and maintain a facilities inventory, in the manner prescribed by the State Department of Finance, of all state university and community college facilities and, shall make the data available in a format acceptable to the State Department of Finance, and shall provide updates to the state Department of Finance. The department shall update its online inventory with information from the updates as soon as they are provided.

(5)(6) The lands inventory shall include the location and ownership. All state agencies shall self-report the following information regarding facilities and lands owned, leased, rented, or otherwise occupied or maintained by them:

a. The location of the property, including street address, city, and county.

b. The size of the property, including its acreage.

c. The date of acquisition of the property, if available.

d. The manner in which the property was purchased and the purchase price, if available.

e. A detailed description of the current uses of the property, and whether the property is fully utilized, partially utilized, or surplus.

f. A detailed description of every lease, license, or other agreement relating to the use of the property.

g. Any projected future uses of the property during the next five years, or detailed information regarding the need to continue ownership or management of the property.

h. A concise description of each major structure located on the property.

i. The estimated value of property declared surplus by the agency and real property where the agency has not identified a current or potential use.

j. Any other property data the State Department of Finance requires by rule.

(6)(7) The State Department of Finance shall utilize any available information from existing inventories of facilities and lands to develop, and maintain, and update the inventory as required by this section, including any information about state lands managed by the State Lands Division of the Department of Conservation and Natural Resources.

(7)(8) This section shall not require the Retirement Systems of Alabama to disclose any lease of a facility between the Retirement Systems of Alabama as a lessor and any person or entity as a lessee. Notwithstanding the foregoing, any agency of the state or judicial branch shall disclose any lease of a facility between that entity as a lessee and the Retirement Systems of Alabama as a lessor.

(b) The State Department of Finance shall update the automated online inventory, and cause to be updated the other inventories required by subsection (a), at least one time every 3 years. Notwithstanding the foregoing, the inventories shall be updated to reflect acquisitions of new facilities and lands and any other significant changes in existing facilities and lands as they occur. The State Department of Finance shall provide each agency and the judicial branch with the most recent inventory applicable to that agency or branch upon request. Each agency and branch, in the manner prescribed by the State Department of Finance, shall report significant changes in the inventory as they occur.

(c) The automated inventory required by this section shall be maintained on the website of the State Department of Finance for access by the public.

(d) All state agencies shall make a complete self-report of all facilities and lands owned, leased, rented, or otherwise occupied or maintained by them to the State Department of Finance no later than July 1, 2019. Failure to meet the deadline by any agency shall result in a one thousand dollar ($1,000) fine to that agency. Each day a state agency fails to submit a complete report to the State Department of Finance beyond the deadline date shall result in an additional fine.

(e) All state agencies shall self-report facilities and lands as accurately as possible. Any intentional omission, alteration, or fabrication of any aspect of a self-report of lands under this section by any agency shall result in a one thousand dollar ($1,000) fine to that agency per occurrence.

(f) If a state agency reports property owned by it to be surplus, and does not identify a projected use for the property for the next five years as required by subsection (a), the Department of Finance shall notify the Lands Division of the availability of the property for transfer of the property to another state agency, sale to a municipal agency or county agency, or sale to a private party or organization. Disposition of state property pursuant to this subdivision shall be effected pursuant to Article 3 of Chapter 15 of Title 9.

(g) Any sale or transfer of land under this section shall be conducted pursuant to Article 3 of Chapter 15 of Title 9.

(h) The State Department of Finance shall adopt any rules necessary for implementing the requirements imposed by the act adding this subsection no later than 180 days after the effective date of the act."

Section 2

Although this bill would have as its purpose or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Amendment 621, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, because the bill defines a new crime or amends the definition of an existing crime.

Section 3

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.