Session of 1999
         
HOUSE BILL No. 2170
         
By Joint Committee on State Building Construction
          
1-28
          
  9             AN  ACT concerning certain real estate owned by state agencies; relating
10             to the sale thereof; amending K.S.A. 75-3352 and repealing the existing
11             section.
12      
13       Be it enacted by the Legislature of the State of Kansas:
14             New Section  1. (a) When used in this section, "surplus real estate"
15       means real estate which is no longer needed by the state agency which
16       owns such real estate.
17             (b) The secretary of administration shall develop criteria for the iden-
18       tification of surplus real estate. In accordance with such criteria, the sec-
19       retary shall assist state agencies in the identification of surplus real estate.
20             The secretary of administration shall develop guidelines for the sale of
21       surplus real estate. In accordance with such guidelines and upon the writ-
22       ten consent of the head of the state agency which owns such surplus real
23       estate, the secretary may offer such property for sale. Subject to the ap-
24       proval of the state finance council as required by subsection (c), the sec-
25       retary of administration may sell surplus real estate and any improvements
26       thereon on behalf of the state agency which owns such property.
27             (c) Prior to the sale of any surplus real estate under subsection (b),
28       the state finance council shall approve the sale, which is hereby charac-
29       terized as a matter of legislative delegation and subject to the guidelines
30       prescribed in subsection (c) of K.S.A. 75-3711, and amendments thereto.
31       The matter may be submitted to the state finance council for approval at
32       any time, including periods of time during which the legislature is in
33       session.
34             (d) Prior to offering any real estate for sale, such property shall be
35       appraised pursuant to K.S.A. 75-3043a, and amendments thereto. The
36       costs of such appraisal may be paid from the proceeds of the sale.
37             (e) Conveyance of title in surplus real estate offered for sale by the
38       secretary of administration shall be executed on behalf of the state agency
39       by the secretary of administration. The deed for the conveyance may be
40       by warranty deed or by quitclaim deed as determined to be in the best
41       interests of the state by the secretary of administration in consultation
42       with the head of the state agency which owns the surplus real estate.
43             (f) Any proceeds from the sale of surplus real estate and any improve-

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  1       ments thereon, shall be credited to a surplus real estate special revenue
  2       fund of the state agency established under subsection (g) or any other
  3       special revenue fund that is available to the state agency. The costs of
  4       appraisal as provided under subsection (d), other costs of the sale and the
  5       administrative fee charged by the secretary pursuant to this subsection
  6       shall be paid from the special revenue fund to which the proceeds of the
  7       sale are credited.
  8             The secretary of administration shall direct the director of accounts
  9       and reports to transfer from the special revenue fund to which the pro-
10       ceeds of the sale of surplus property is credited an administrative fee in
11       an amount equal to 15% of the gross proceeds of the sale. The adminis-
12       trative fee shall be transferred and credited to the property contingency
13       fund created under K.S.A. 75-3652, and amendments thereto, and may
14       be expended for any operations of the department administration.
15             (g) Any state agency may apply to the director of accounts and reports
16       for authority to establish a surplus real estate special revenue fund in the
17       state treasury. State agencies may deposit in a surplus real estate special
18       revenue fund the proceeds from the sale of surplus real estate. Subject
19       to the provisions of appropriations acts, moneys in a surplus real estate
20       special revenue fund may be expended for operations of the agency.
21             Sec.  2. K.S.A. 75-3352 is hereby amended to read as follows: 75-
22       3352. (a) Before any property shall be is sold under the provisions of this
23       act, the real estate described in K.S.A. 75-3351 shall be appraised by three
24       (3) disinterested appraisers acquainted with land values in the county in
25       which such land is located and appointed as provided in K.S.A. 75-3043a.
26       Such appraisement, and amendments thereto. The appraisal shall be in
27       writing and filed with the secretary, and the cost of the appraisement
28       appraisal shall be paid from the proceeds of the sale.
29             Upon the filing of such appraisement appraisal, the secretary of social
30       and rehabilitation services shall advertise for sealed bids on the real estate
31       described in K.S.A. 75-3351, and amendments thereto, for not less than
32       three consecutive weeks by publications in a newspaper of general cir-
33       culation in Mitchell county, Kansas, and authorized by law to publish legal
34       notices. Such sale shall be made to the highest responsible bidder whose
35       bid is submitted within thirty (30) 30 days after the last publication of
36       such notice, except that said. The secretary may reject any and all bids,
37       and in case. If all bids are rejected, bids may be called for again as in the
38       first instance. Each bid shall be accompanied by a certified check in the
39       amount of five percent (5%) 5% of such bid which sum shall be forfeited
40       in case of default by any bidder whose bid is accepted. In no event shall
41       such Real estate shall not be sold for less than the appraisement thereof
42       appraisal value.
43             Upon acceptance of any such bid, a deed conveying such real estate

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  1       shall be executed by the secretary, and duly acknowledged by him or her
  2       the secretary before an officer authorized by law to take acknowledg-
  3       ments. Said The deed shall contain a recital of all proceedings in compli-
  4       ance with this act, and said. Such recital shall be prima facie evidence
  5       that said the proceedings were had conducted in the manner and form
  6       recited. Such deed shall be approved as to form by the attorney general.
  7       When such real estate shall be so is sold, the proceeds thereof, after
  8       deduction of the expenses of such sale and the cost of the appraisement
  9       appraisal of the real estate, shall be paid into the state treasury.
10             (b) The provisions of subsection (a) shall not apply to any portion of
11       the real estate described in K.S.A. 75-3351, and amendments thereto,
12       which is identified as surplus real estate as provided in section 1, and
13       amendments thereto. Any portion of the real estate which is identified as
14       surplus real estate may be sold in accordance with section 1, and amend-
15       ments thereto.  
16       Sec.  3. K.S.A. 75-3352 is hereby repealed.
17        Sec.  4. This act shall take effect and be in force from and after its
18       publication in the statute book.