PRINTER'S NO. 1464
No. 1196 Session of 1997
INTRODUCED BY GERLACH, MOWERY AND THOMPSON, NOVEMBER 17, 1997
REFERRED TO STATE GOVERNMENT, NOVEMBER 17, 1997
AN ACT
1 Amending the act of April 9, 1929 (P.L.177, No.175), entitled
2 "An act providing for and reorganizing the conduct of the
3 executive and administrative work of the Commonwealth by the
4 Executive Department thereof and the administrative
5 departments, boards, commissions, and officers thereof,
6 including the boards of trustees of State Normal Schools, or
7 Teachers Colleges; abolishing, creating, reorganizing or
8 authorizing the reorganization of certain administrative
9 departments, boards, and commissions; defining the powers and
10 duties of the Governor and other executive and administrative
11 officers, and of the several administrative departments,
12 boards, commissions, and officers; fixing the salaries of the
13 Governor, Lieutenant Governor, and certain other executive
14 and administrative officers; providing for the appointment of
15 certain administrative officers, and of all deputies and
16 other assistants and employes in certain departments, boards,
17 and commissions; and prescribing the manner in which the
18 number and compensation of the deputies and all other
19 assistants and employes of certain departments, boards and
20 commissions shall be determined," further regulating leases,
21 conveyances and costs.
22 The General Assembly of the Commonwealth of Pennsylvania
23 hereby enacts as follows:
24 Section 1. Section 2402(i) of the act of April 9, 1929
25 (P.L.177, No.175), known as The Administrative Code of 1929,
26 amended December 19, 1980 (P.L.1333, No.244), is amended to
27 read:
1 Section 2402. Grounds, Buildings and Monuments in General.--
2 The Department of General Services shall have the power, and its
3 duty shall be:
4 * * *
5 (i) To rent to individuals, firms or corporations, or the
6 Government of the United States or any branch or agency thereof,
7 such real estate, owned by the Commonwealth, as is not being
8 used in connection with the work of any department, board, or
9 commission thereof, upon such terms and conditions as the
10 Secretary of General Services may prescribe, with the approval
11 of the Governor in writing: Provided, however, That no lease
12 executed under the authority hereby conferred shall be for a
13 longer term than [five] ten years, except that State owned
14 airports, or any part of the facilities thereof, may be leased
15 for terms not longer than twenty years when the lessee proposes
16 to make a major capital investment in the construction or
17 purchase of facilities at said State owned airport, or for five
18 years in other cases, and except leases made in the interest of
19 national defense to the Government of the United States or any
20 branch or agency thereof, which leases may be for such terms as
21 are approved by the Governor.
22 * * *
23 Section 2. Section 2405-A(3) and (4) of the act, amended or
24 added July 1, 1981 (P.L.143, No.48) and February 23, 1996
25 (P.L.27, No.10), are amended to read:
26 Section 2405-A. Conditions Upon Conveyances.--Any proposed
27 disposition of property shall be subject to the following
28 conditions and limitations:
29 * * *
30 (3) The remuneration for a conveyance of surplus property
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1 shall be based on fair consideration. Fair consideration
2 requires either the payment of the current fair market value of
3 the property or the demonstration of equivalent or greater
4 return to the Commonwealth within [five] ten years due to the
5 proposed use of the property by the entity receiving the
6 conveyance.
7 (4) After appropriate public notice, the sale of declared
8 surplus property by the department shall be open to public
9 review and inspection. Acceptance of an offer shall be subject
10 to a minimum price requirement as established by the department,
11 which shall not be less than the fair market value. Declared
12 surplus property shall be sold by the department through either
13 a competitive sealed bidding process in which prospective buyers
14 submit sealed offers through the mail or at an auction conducted
15 by an auctioneer holding a license under the provisions of the
16 act of December 22, 1983 (P.L.327, No.85), known as the
17 "Auctioneer and Auction Licensing Act." The use of either method
18 of sale shall be at the department's discretion. Except as
19 provided in clause (3), sale of the declared surplus property
20 shall be to the highest bidder, provided that no offer may be
21 accepted which is [below] less than twenty per centum (20%) of
22 the fair market value, established through independent
23 appraisal.
24 * * *
25 Section 3. Section 2406-A of the act, amended February 23,
26 1996 (P.L.27, No.10), is amended to read:
27 Section 2406-A. Allocation of Sale Proceeds.--The proceeds
28 of the sale of real estate under the provisions of section 2405-
29 A shall be paid into the State Treasury, through the Department
30 of Revenue and deposited in the Capital Facilities Redemption
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1 Fund, or if the land was acquired by moneys wholly or mainly out
2 of a special fund, such proceeds shall be credited to the proper
3 special fund, and all proceeds of the sale of authority
4 properties shall be paid to the respective fiscal agent of the
5 authority in accordance with the bond resolution. The costs and
6 fees incurred by the Department of General Services, including
7 but not limited to costs of auctions or sales at auction, title
8 searches, notice, surveys and appraisals, maintenance, security,
9 broker's fee and advertising costs shall be deducted from the
10 purchase price and that amount shall be an executively
11 authorized augmentation to the appropriation from which the
12 costs and fees were paid by the department.
13 Section 4. This act shall take effect in 60 days.
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