CHAPTER 200
HOUSE BILL No. 3009
An  Act concerning state agencies; relating to state property operations, parking, leasing
and surplus real estate; amending K.S.A. 75-4506, 75-4508 and 75-4510a and K.S.A.
2001 Supp. 75-6609 and repealing the existing sections; also repealing K.S.A. 75-6406.

Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 75-4506 is hereby amended to read as follows: 75-
4506. No motor vehicle, whether privately or publicly owned, may be
parked upon parking lots, facilities or drives of any state owned or op-
erated property or building in Shawnee county, Kansas, except on prop-
erties listed as exceptions in K.S.A. 75-4503, or except as authorized under
rules and regulations adopted by the secretary of administration as pro-
vided in K.S.A. 75-3706 and amendments thereto or, in the case of the
statehouse grounds, in accordance with signs posted by the capitol area
security patrol. Such rules and regulations may fix and provide for col-
lection of rents, charges or fees and administrative fines and procedures
for violation of such rules and regulations to be imposed in connection
with and for the use of the parking facilities so owned and operated, and
the secretary of administration may enter into any contract or contracts
therefor with any state officer or employee or with any board, commis-
sion, agency or instrumentality of the state of Kansas. The secretary of
administration may design and issue parking permits or other forms of
authorization to facilitate the best use of any such parking lots, facilities
or drives. Parking permits to park on the statehouse grounds shall be
designed and issued in accordance with rules or instructions of the leg-
islative coordinating council. Notwithstanding the foregoing provisions of
this section, the secretary of administration shall provide not less than
one hundred forty (140) 140 parking spaces to meet the needs of the
legislative branch and whenever the legislative coordinating council shall
determine that additional parking spaces are necessary the secretary of
administration shall provide such number of additional parking spaces as
may be specified by the legislative coordinating council.

      Sec.  2. K.S.A. 75-4508 is hereby amended to read as follows: 75-
4508. (a) Except as provided in subsection (b), any person who shall vi-
olate any of the provisions of K.S.A. 75-4505, 75-4506 or 75-4507 and
amendments thereto, or any rule or regulation made thereunder shall be
guilty of a misdemeanor and, upon conviction, shall be punished by a fine
of not more than twenty-five dollars ($25) $25 or by imprisonment in the
county jail for not more than thirty (30) 30 days or by both such fine and
imprisonment.

      (b)  (1) The secretary of administration is authorized to adopt rules
and regulations establishing administrative fines for parking violations in
areas where a fee for parking is assessed, except that this subsection shall
not apply to parking on the statehouse grounds. Persons paying any such
fine shall not be subject to prosecution pursuant to subsection (a) relating
to such offense. The secretary of administration shall assign responsibility
for enforcement of parking violations under this subsection to the capitol
area security patrol, the department of administration or other personnel
designated by the secretary.

      (2) Any administrative fines received under this subsection (b) shall
be remitted by the secretary of administration to the state treasurer in
accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount in the state treasury to the credit of the state
general fund.

      Sec.  3. K.S.A. 75-4510a is hereby amended to read as follows: 75-
4510a. Unlawful statehouse parking is parking a vehicle within the state-
house grounds bounded by 8th street, 10th street, Jackson street and
Harrison street in the city of Topeka, Kansas:

      (a) Contrary to any sign posted by the capitol area security patrol;

      (b) Contrary to any order of an officer of the capitol area security
patrol; or

      (c) Without a permit issued under authority of the legislative coor-
dinating council, except for guests in parking spaces posted for guests,
emergency vehicles and delivery or maintenance vehicles on authorized
business.

      Any person found guilty of unlawful statehouse parking shall pay a fine
of five dollars ($5) in accordance with K.S.A. 8-2118, and amendments
thereto.

      New Sec.  4. (a) The secretary of administration may lease real estate
titled in the name of the state of Kansas or any state agency, other than
real estate which is held by a state agency under the jurisdiction and
control of the state board of regents or by the Kansas department of
transportation, upon a finding that such real estate is not currently re-
quired for state purposes. No such lease shall be executed until the sec-
retary of administration has consulted with and reviewed the lease with
the joint committee on state building construction. Except as otherwise
specifically provided by law, the state buildings operating fund shall be
utilized for the operating expenses and revenues of any such leased prop-
erty.

      (b) Any real estate leased by the state pursuant to this section shall
be exempt from ad valorem taxation as long as such property is owned
by the state of Kansas and such property is:

      (1) Used by the state of Kansas or any of its agencies;

      (2) vacant;

      (3) leased by an entity exempt from the payment of ad valorem tax-
ation; or

      (4) used for a purpose that is exempt from the payment of ad valorem
taxation.

      The provisions of K.S.A. 79-201 et seq., and amendments thereto, re-
quiring the requesting and filing of property tax exemptions shall not
apply to the exemption provided by this section.

      (c) The only portion of state-owned property that shall not be exempt
from ad valorem taxation is the actual space leased by a person or entity
that is not exempt from the payment of ad valorem taxation and is not
used for a tax exempt purpose. Any common area used by such a lessee
that is also used by the state, an entity exempt from the payment of ad
valorem taxation or used for the purpose that is exempt from the payment
of ad valorem taxation, shall be exempt from ad valorem taxation.

      (d) The provisions of K.S.A. 41-719 and amendments thereto relating
to alcoholic liquor and the provisions of K.S.A. 75-3337 et seq. and amend-
ments thereto relating to vending facilities on state property shall not be
applicable to property leased pursuant to this section unless the lessee is
a governmental entity.

      Sec.  5. K.S.A. 2001 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 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 secretary may offer such
property for sale by one of the following means: (A) Public auction; (B)
by listing the surplus property with a licensed real estate broker or sales-
person; or (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 improvements 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 any
cost of appraisal of the surplus real estate, shall be deposited in the state
treasury as prescribed by this subsection, unless otherwise authorized by
law. On and after the effective date of this act, a portion 20% 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 prescribed 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 oth-
erwise required by state or federal 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 ex-
penditures for community mental health organizations if the real estate
sold was at a state mental health institution or for community develop-
mental disabilities organizations if the real estate sold was at a state mental
retardation institution, and, in any such case, shall be expended in ac-
cordance with the provisions of appropriation acts. After crediting the
amount designated by the state finance council, the remainder The re-
maining 80% of the proceeds from each such sale deposited 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,
moneys 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. The provisions of this section shall not be ap-
plicable to real estate given as an endowment, bequest, or gift to a state
educational institution as defined in subsection (g) of K.S.A. 72-4412, and
amendments thereto, or to the university of Kansas medical center.

      (h) Sale of the Olathe travel information center shall not be subject
to the provisions of this section.

      Sec.  6. K.S.A. 75-4506, 75-4508, 75-4510a, and 75-6406 and K.S.A.
2001 Supp. 75-6609 are hereby repealed.

      Sec.  7. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved May 29, 2002.
 Published in the Kansas Register June 6, 2002.
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