CHAPTER 153 HOUSE BILL No. 2406 An  Act concerning real estate; relating to surplus real estate owned by state agencies;
relating to the review of plats; amending K.S.A. 68-404 and 75-3516 and K.S.A. 2000
Supp. 58-2005 and 75-6609 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2000 Supp. 58-2005 is hereby amended to read as
follows: 58-2005. Before a subdivision plat or plat of survey may be re-
corded, it shall be reviewed by the county surveyor. In the absence of the
county surveyor, the county engineer may contract with a land surveyor
who shall review such subdivision plat or plat of survey and certify the
same if in compliance with the requirements of this act. If the county
does not have a designated county surveyor, the county engineer shall
review the plat if the county engineer also is a registered land surveyor.
In the absence of both a county surveyor and a county engineer who is a
registered land surveyor the plat shall be reviewed by a registered land
surveyor designated by the county. All cost for plat review and approval
shall be charged back to the applicant for plat approval. The county shall
be responsible for the enforcement of this act. The county surveyor or
county engineer shall certify that such plat meets all the requirements of
this act. If any such plat is required to be submitted to any planning
commission for review and approval or disapproval, such review and
approval duly certified upon the face of such plat shall not constitute full
compliance with the review required in this section unless reviewed by
the county surveyor or county engineer.

      Sec.  2. K.S.A. 68-404 is hereby amended to read as follows: 68-404.
The secretary of transportation shall have the following powers, duties,
authority and jurisdiction:

      (a) General supervision over the administration of all road and bridge
laws and over the construction and maintenance of all roads, bridges and
culverts throughout the state, except that such supervision by the secre-
tary shall not extend to township roads, except that any township road for
which federal aid is granted shall be under the supervision of the secre-
tary;

      (b) to compile information concerning the road, bridge and culvert
materials of the state and furnish such information to boards of county
commissioners, township highway commissioners, county engineers and
other highway officials; the secretary shall answer all inquiries of such
officials concerning highway construction and maintenance and shall ad-
vise them of the reasonable prices for materials and construction work;

      (c) devise and adopt standard plans and specifications for road, bridge
and culvert construction and maintenance suited to the needs of the dif-
ferent counties of the state and furnish them to county engineers;

      (d) make a biennial report for the use of the legislature and may issue
bulletins and pamphlets, which shall be printed as public documents;

      (e) carry on such other highway educational work, and may cooperate
with the state and national organizations for the support and advancement
of highway construction;

      (f) may make investigations of the highway conditions in any county,
assist boards of county commissioners and the attorney general in the
prosecution or defense of patent suits relative to road and bridge con-
struction when so requested, and the secretary shall report any violations
of the law to the attorney general who shall take such steps as are nec-
essary regarding such violations;

      (g) to enter upon any property to make surveys, examinations, inves-
tigations, and tests, and to acquire other necessary and relevant data in
contemplation of (1) establishing the location of a road, street or highway;
(2) acquiring land, property, and road building materials; or (3) perform-
ing other operations incident to highway construction, reconstruction or
maintenance. Prior to entering upon any such property the secretary shall
first request permission of the landowner to do so. Where consent to do
the things authorized in this subsection (g) is not given to the secretary
by the owner or occupant of the land involved, the secretary may proceed
as authorized after giving 10 days written notice to landowner or occupant
of the secretary's intention to conduct such surveys, examinations, inves-
tigations and tests. Entry upon any property, pursuant to this subsection,
shall not be considered to be a legal trespass and no damages shall be
recoverable on that account alone. In case of any actual or demonstrable
damages to the premises, the secretary shall pay the owner of the prem-
ises the amount of the damages. Upon failure of the landowner and such
secretary to agree upon the amount of damages the landowner may file
an action against the secretary in the district court of the county in which
the land is situated to recover such damages;

      (h) to make tests, do research, to inspect and test all materials, sup-
plies, equipment, and machinery used for state highway purposes or high-
way projects involving federal funds, and to develop methods and pro-
cedures for this purpose. Tests of such materials, supplies or equipment
may be made available, upon payment of actual costs therefor, to any
federal agency or political subdivision of the state;

      (i) to maintain and develop testing laboratories to carry out the
requirements of this act;

      (j) to perform such other acts and duties and exercise such authority
as will give the provisions of this act and other laws relating to the sec-
retary or department of transportation full force and effect;

      (k) to adopt rules and regulations to carry out the provisions of this
act and any other laws relating to the secretary or department of trans-
portation; and

      (l) to adopt rules and regulations relating to debarment and suspen-
sion of contractors for cause.; and

      (m) to prepare a report and make a presentation to the legislature as
required by section 3 and amendments thereto.

      Sec.  3. K.S.A. 75-3516 is hereby amended to read as follows: 75-
3516.  (a) Each state agency shall have the legal custody of all deeds to
real estate held or acquired by such state agency for and in the name of
the state of Kansas, together with the abstracts of title thereto and the
title insurance policies therefor, and of all other original instruments re-
lating to real estate transactions of such state agency. It shall be the duty
of Each state agency to shall keep, preserve and file all such deeds, ab-
stracts of title, title insurance policies and other instruments, and all such
instruments in the custody of the secretary of state on the effective date
of this act shall be and are hereby transferred to the custody of the re-
spective state agencies.

      (b) It shall be the duty of Each state agency to shall record or cause
to be recorded all deeds to real estate acquired by it the state agency with
the register of deeds of the county where the real estate is located and
any other instruments relating to its the agency's real estate transactions
provided by law to be recorded.

      (c) The director of accounts and reports shall maintain inventory re-
cords of the real property owned by the state, which records shall reflect
all real property held and every real estate transaction engaged in by each
state agency except the secretary of transportation. Such inventory re-
cords shall include, but not be limited to, the acreage, the location by city
and county, a brief legal description and the use and purpose of each lot,
tract or parcel of land held by a state agency.

      (d)  (1) The secretary of transportation shall deliver to the secretary
of the senate and the chief clerk of the house of representatives on or
before January 30, 2002, and January 30th of each year thereafter, a
written report concerning the department of transportation's system of
inventory of records pertaining to all real property owned by the depart-
ment of transportation and all real estate transactions engaged in by the
department of transportation. Each report shall describe the current
status of the inventory system and the steps taken during the past year to
improve such inventory system and comply with the requirements of this
section. The secretary of transportation shall notify each member of the
legislature of the availability of copies of the report.

      (2) On or before January 30, 2002, and January 30th of each year
thereafter, the secretary of transportation shall make a presentation to
the joint committee on state building construction on the report described
in paragraph (1).

      Sec.  4. K.S.A. 2000 Supp. 75-6609 is hereby amended to read as
follows: 75-6609. (a) When used in this section, ``surplus real estate''
means real estate which is no longer needed by the state agency which
owns such real estate as determined in accordance with this section.

      (b)  (1) The secretary of administration shall develop criteria for the
identification of surplus real estate, including but not limited to, a review
of any legal restrictions associated with the real estate and the reasons for
the state agency to keep the real estate. In accordance with such criteria,
the secretary shall assist state agencies in the identification of surplus real
estate. The secretary of administration shall periodically review the status
of all real estate of state agencies subject to this section to determine if
any of the real estate owned by state agencies is potentially surplus real
estate. If any real estate owned by a state agency is determined by the
secretary of administration, in consultation with the head of the state
agency, to be surplus real estate in accordance with the criteria developed
under subsection (a), then the secretary of administration shall recom-
mend to the governor that such real estate be sold under the procedures
prescribed by this section.

      (2) The secretary of administration shall develop guidelines for the
sale of surplus real estate. In accordance with such guidelines and upon
the written consent of approval of the governor, after consultation with
the head of the state agency which owns such surplus real estate, after
consultation with the joint committee on state building construction and
after approval by the state finance council under subsection (c), the sec-
retary may offer such property for sale by one of the following means: (1)
(A) Public auction; (2) (B) by listing the surplus property with a licensed
real estate broker or salesperson; or (3) (C) by sealed bid. Subject to the
approval of the state finance council as required by subsection (c), the
secretary of administration may sell surplus real estate and any improve-
ments thereon on behalf of the state agency which owns such property.

      (c) Prior to the sale of any surplus real estate under subsection (b),
the state finance council shall approve the sale, which is hereby charac-
terized as a matter of legislative delegation and subject to the guidelines
prescribed in subsection (c) of K.S.A. 75-3711, and amendments thereto.
The matter may be submitted to the state finance council for approval at
any time, including periods of time during which the legislature is in
session.

      (d) Prior to offering any real estate for sale, such property shall be
appraised pursuant to K.S.A. 75-3043a, and amendments thereto, unless
the appraisal is waived as provided in this subsection. The secretary of
administration may waive the requirement for appraisal for any parcel
of surplus real estate that is to be sold at public auction under this section
if the secretary of administration determines that it is in the best interests
of the state to waive the requirement for appraisal for such parcel of
surplus real estate. The costs of any such appraisal may be paid from the
proceeds of the sale.

      (e) Conveyance of title in surplus real estate offered for sale by the
secretary of administration shall be executed on behalf of the state agency
by the secretary of administration. The deed for the conveyance may be
by warranty deed or by quitclaim deed as determined to be in the best
interests of the state by the secretary of administration in consultation
with the head of the state agency which owns the surplus real estate.

      (f)(1) Any proceeds from the sale of surplus real estate and any im-
provements thereon, after deduction of the expenses of such sale and the
any cost of the appraisal of the surplus real estate, shall be deposited in
the state treasury and credited to the state general fund as prescribed by
this subsection, unless otherwise authorized by law. On and after the
effective date of this act, a portion of the proceeds from each such sale
deposited in the state treasury shall be determined and designated by the
state finance council acting on this matter which is hereby characterized
as a matter of legislative delegation and subject to the guidelines pre-
scribed in subsection (c) of K.S.A. 75-3711c and amendments thereto and
acting on this matter in conjunction with approval of such sale under
subsection (c), to be credited to the surplus real estate fund or another
appropriate special revenue fund of the state agency which owned the
surplus real estate, as is prescribed by law or as may be determined by
the state agency, except that such portion shall not exceed the amount
equal to 50% of such proceeds unless otherwise required by state or fed-
eral law or by the limitations or restrictions of the state's title to the real
estate being sold. In the case of proceeds from the sale of surplus real
estate at a state mental health institution or a state mental retardation
institution, such portion of the proceeds shall be credited to the client
benefit fund of such institution or to another special revenue fund of such
institution for (A) rehabilitation and repair or other capital improvements
for such institution, or (B) one-time expenditures for community mental
health organizations if the real estate sold was at a state mental health
institution or for community developmental disabilities organizations if
the real estate sold was at a state mental retardation institution, and, in
any such case, shall be expended in accordance with the provisions of
appropriation acts. After crediting the amount designated by the state
finance council, the remainder of the proceeds from each such sale de-
posited in the state treasury shall be credited to the state general fund.

      (2) The amount of expenses and the cost of appraisal for each sale of
surplus real estate pursuant to this section shall be transferred and cred-
ited to the property contingency fund created under K.S.A. 75-3652, and
amendments thereto, and may be expended for any operations of the
department of administration.

      (3) Any state agency owning real estate may apply to the director of
accounts and reports to establish a surplus real estate special revenue fund
in the state treasury. Subject to the provisions of appropriation acts, mon-
eys in a surplus real estate special revenue fund may be expended for the
operating expenditures of the state agency.

      (g) Any sale of property by the secretary of transportation pursuant
to K.S.A. 68-413, and amendments thereto, shall not be subject to the
provisions of this section.

      New Sec.  5. If a mental health institution or mental retardation in-
stitution is closed and all or part of the real estate of such institution is
sold, the proceeds from the sale of such real estate, after deduction of
the costs of the sale and any costs of appraisal of such surplus real estate,
shall be deposited in the state treasury to the credit of a new or existing
special revenue fund. All expenditures of such moneys in any such special
revenue fund shall be in accordance with the provisions of appropriation
acts and shall be used (a) for capital improvement or operating expend-
itures for another state institution providing either mental health services
or mental retardation services, whichever were provided by the closed
institution or (b) to provide either mental health services or mental re-
tardation services, whichever was provided by the closed institution,
through community organizations in communities.

 Sec.  6. K.S.A. 68-404 and 75-3516 and K.S.A. 2000 Supp. 58-2005
and 75-6609 are hereby repealed.
 Sec.  7. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 7, 2001.
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