Bill Text - HB528 (2005)

Relative to acquisitions of state surplus real property by municipalities.


Revision: Jan. 21, 2010, midnight

HB 528-FN-LOCAL – AS INTRODUCED

2005 SESSION

05-0099

05/01

HOUSE BILL 528-FN-LOCAL

AN ACT relative to acquisitions of state surplus real property by municipalities.

SPONSORS: Rep. C. Hamm, Merr 4; Rep. Owen, Merr 4; Rep. Hammond, Graf 11

COMMITTEE: Public Works and Highways

ANALYSIS

This bill establishes a procedure for transferring surplus state property to counties, cities, and towns for a nominal amount if the property is used for certain purposes.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-0099

05/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT relative to acquisitions of state surplus real property by municipalities.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Disposal of Real Estate. Amend RSA 4:40, I to read as follows:

I. Annually, on or before the first Monday in March, the head of any agency with jurisdiction over real property owned by the state shall provide a list of surplus state-owned property to the long range capital planning and utilization committee. Except as provided in RSA 4:39-a and RSA 204-D, upon recommendation of the head of any [state department] agency having jurisdiction over the same and with the approval of the council on resources and development, all requests for the disposal or leasing of state-owned properties shall be reviewed and approved by the long range capital planning and utilization committee prior to submission to the governor and council for approval. Upon determination that the property is no longer needed by the state, the long range capital planning and utilization committee, on behalf of the governor and council, shall first offer it to the [town] county, city, or [county] town in which the property is located pursuant to paragraph II-a. If the [town] county, city, or [county] town refuses the offer, the governor and council may sell, convey, transfer, or lease the real property pursuant to paragraph III.

2 New Paragraph; Disposal of Real Estate; Procedure for Transfer of State Surplus Property to Municipality. Amend RSA 4:40 by inserting after paragraph II the following new paragraph:

II-a. The long range capital planning and utilization committee shall notify the county whose boundary contains surplus land and offer acquisition for the sum of $1 if the property is for county or non-profit use. If the county determines that it has no interest in acquiring the surplus state-owned property, the committee shall then offer it to the city or town whose boundary contains surplus land for the sum of $1 if the property is to be used for non-profit, municipal, or school purposes.

(a) In the event a county, city, or town that acquires property under this paragraph determines the land no longer has value, it shall first provide the state the opportunity to reacquire the property for $1. If the state sells any property reacquired from a county, city, or town, it shall pay 1/3 of the fair market value to the county, city, or town that returned the property.

(b) If the state refuses the acquisition, then the county, city, or town that acquired the property under this paragraph may sell the surplus state-owned property, and shall pay 1/2 of the fair market value received to the state, which shall discharge any further obligation to the state.

(c) No agency with jurisdiction over real property owned by the state shall be required to identify property as surplus property and available for any county, city, or town when such designation is unwarranted.

3 Effective Date. This act shall take effect January 1, 2006.

LBAO

05-0099

12/17/04

HB 528-FN-LOCAL - FISCAL NOTE

AN ACT relative to acquisitions of state surplus real property by municipalities.

FISCAL IMPACT:

      The Department of Administrative Services states this bill may decrease state highway fund revenue by $61,198 in FY 2006, and by $152,995 in FY 2007 and each year thereafter. The Association of Counties and New Hampshire Municipal Association states this bill may reduce county and local expenditures by an indeterminable amount in FY 2006 and each year thereafter. There will be no fiscal impact on county and local revenue, or state expenditures.

METHODOLOGY:

    The Department of Administrative Services states this bill requires the sale of surplus real property to be at market value. The bill allows counties, cities, and towns to purchase surplus real property for $1 instead of market value, thus reducing or delaying potential revenue from the sale of surplus real property to the State. The Department of Transportation (DOT) is the major holder of surplus real property, and estimates that the value of their surplus real property is approximately $18,000,000. DOT sold 25 properties in 2002 totaling $765,000 and sold 20 properties in 2003 totaling $43,500. The Department estimates that 12 properties will be sold in FY 2006, and 25 properties will be sold in FY 2007 and each year thereafter. The Department estimates that 2 of the properties sold in FY 2006, and 5 of the properties sold in FY 2007 will be purchased for $1 by a county or municipality. Assuming an average property value of $30,600 (based on 2002 numbers), the Department estimates the fiscal impact as follows:

                      FY 2007

                      FY 2006 & Thereafter

    Property sales to counties

    or municipalities $ 2 $ 5

    Property sales to other parties 306,000 612,000

    Total Projected Sales $306,002 $612,005

    Minus potential property sales

    under current law $367,200 $765,000

    Estimated Revenue Impact ($ 61,198) ($152,995)

    The New Hampshire Municipal Association states this bill alters the order in which surplus State-owned real estate is offered to political subdivisions, so that such real estate would be offered to the county first, then to the city or town in which it is located. This bill also provides for the political subdivision to acquire the surplus property for $1, grants the State a right of first refusal, and establishes other terms for the later relinquishment of that property should the political subdivision find the parcel is no longer of value. This bill will have limited impact on municipalities, as it will only affect those municipalities where State surplus property is located and those municipalities that are interested in purchasing such property. While the terms for the later disposal of such property by the municipality are new and call for a share of the proceeds to be paid to the State, these are terms which the municipality would be aware of before entering into the purchase of State surplus property.

    The Association of Counties states this bill alters how the State disposes of certain surplus real and other property. This bill outlines favorable purchasing conditions for the counties, which may reduce county expenditures on certain purchases. This bill does not compel any expenditure by the counties. The Association cannot determine the exact fiscal impact at this time.

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