PRINTER'S NO. 1304
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1023
Session of
2024
INTRODUCED BY COLEMAN AND ROTHMAN, JANUARY 2, 2024
REFERRED TO STATE GOVERNMENT, JANUARY 2, 2024
AN ACT
Amending the act of April 9, 1929 (P.L.177, No.175), entitled
"An act providing for and reorganizing the conduct of the
executive and administrative work of the Commonwealth by the
Executive Department thereof and the administrative
departments, boards, commissions, and officers thereof,
including the boards of trustees of State Normal Schools, or
Teachers Colleges; abolishing, creating, reorganizing or
authorizing the reorganization of certain administrative
departments, boards, and commissions; defining the powers and
duties of the Governor and other executive and administrative
officers, and of the several administrative departments,
boards, commissions, and officers; fixing the salaries of the
Governor, Lieutenant Governor, and certain other executive
and administrative officers; providing for the appointment of
certain administrative officers, and of all deputies and
other assistants and employes in certain departments, boards,
and commissions; providing for judicial administration; and
prescribing the manner in which the number and compensation
of the deputies and all other assistants and employes of
certain departments, boards and commissions shall be
determined," in disposition of Commonwealth surplus land,
further providing for definitions, for annual property
survey, for property disposition and for conditions upon
conveyance; and making an editorial change.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Article XXIV-A heading of the act of April 9,
1929 (P.L.177, No.175), known as The Administrative Code of
1929, is amended to read:
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ARTICLE XXIV-A
DISPOSITION OF COMMONWEALTH [SURPLUS] LAND
Section 2. The definition of "surplus property" in section
2401-A of the act is amended to read:
Section 2401-A. Limited Definitions.--The following words
and phrases when used in this article shall have, unless the
context clearly indicates otherwise, the meanings given to them
in this section:
* * *
"Surplus property." Any buildings, land or other real estate
owned by the Commonwealth that under section 2402-A(a) has been
deemed surplus to the needs of the administering agency which
has current use of the property. The definition of and the
designation of surplus property shall not apply to any lands
designated as State parks or State forests or any lands acquired
by the Pennsylvania Fish and Boat Commission or the Pennsylvania
Game Commission.
Section 3. Sections 2402-A(c), 2403-A and 2405-A of the act
are amended to read:
Section 2402-A. Annual Property Survey.--* * *
(c) For all [real property identified as surplus by an
agency] surplus property, the department shall determine whether
any other agencies have an appropriate use for the property. If
it is desirable and appropriate to transfer surplus property to
another agency [property that has been deemed surplus by the
administering agency currently using the property], the
department shall prepare a plan for transfer of the surplus
property. Upon approval of the transfer plan by the General
Counsel and the Secretary of Budget and Administration, use of
the surplus property shall be transferred to the agency that can
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make the best use of the surplus property.
Section 2403-A. Surplus Property Disposition Plan; and
Commonwealth Land Disposition.--(a) The department shall
annually develop a plan for the orderly disposition of all [real
property deemed surplus by the agency currently in possession of
the property, which property is not suitable for use by another
agency] surplus property.
(b) The plan shall consider the following factors in
proposing the manner and schedule for property disposition:
(1) Whether the property should be leased, transferred in
fee simple, or transferred with a restriction as to use, right
of reversion, or other special deed provisions.
(2) Whether the land should be retained in agricultural use
or as open space for recreation or conservation. A determination
whether land should be preserved as open space or in
agricultural use shall be made in consultation with the
Department of Agriculture, the Department of Conservation and
Natural Resources, the Department of Environmental [Resources]
Protection and the Department of Community [Affairs] and
Economic Development.
(3) Likely cost savings and expenses to the Commonwealth
arising from the proposed property disposition.
(4) The needs of local governments, charitable institutions,
and local volunteer fire and rescue squads.
(5) The likely revenue to be generated by the sale of the
property and the needs of the Commonwealth for those revenues.
(c) The plan for the disposition of surplus property shall,
for each parcel, identify the proposed manner of disposition,
when the property will be disposed of, likely revenues and
costs, the assessed market value of the property, and the
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Commonwealth's acquisition cost for the property.
(d) Any Commonwealth lands acquired by condemnation which is
later determined to be surplus land shall be disposed pursuant
to and consistent with the provisions of section 2003(e) and the
provisions of the act of June 22, 1964 (Sp.Sess., P.L.84, No.6),
known as the "Eminent Domain Code."
(e) The department may only sell Commonwealth lands, other
than surplus property, upon an act of the General Assembly and
in accordance with the conditions specified in section 2405-
A(b).
Section 2405-A. Conditions Upon Conveyances.--(a) Any
proposed disposition of surplus property shall be subject to the
following conditions and limitations:
(1) The department may sell real estate only to [an
individual, an organization, a firm or corporation,] a political
subdivision of the Commonwealth, or to the Government of the
United States or a branch or agency thereof.
(2) Following approval of the property disposition plan,
information regarding the availability and sale of each parcel
of surplus property shall be provided through the publication of
legal notice in the Pennsylvania Bulletin and such State
newspapers as the department shall direct.
(3) The remuneration for a conveyance of surplus property
shall be based on fair consideration. Fair consideration
requires either the payment of the current fair market value of
the property or the demonstration of equivalent or greater
return to the Commonwealth within five years due to the proposed
use of the property by the entity receiving the conveyance.
(4) After appropriate public notice, the sale of declared
surplus property by the department shall be open to public
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review and inspection. Acceptance of an offer shall be subject
to a minimum price requirement as established by the department,
which shall not be less than the fair market value. Declared
surplus property shall be sold by the department through either
a competitive sealed bidding process in which prospective buyers
submit sealed offers through the mail or at an auction conducted
by an auctioneer holding a license under the provisions of the
act of December 22, 1983 (P.L.327, No.85), known as the
"Auctioneer and Auction Licensing Act." The use of either method
of sale shall be at the department's discretion. Except as
provided in clause (3), sale of the declared surplus property
shall be to the highest bidder, provided that no offer may be
accepted which is below the fair market value, established
through independent appraisal.
(5) The disposition of surplus property shall be made upon
such terms and conditions of sale as the department may
prescribe. The sale of such real estate may be in the form of a
lump sum purchase, installment purchase or lease purchase and
may include use restrictions and reverter clauses. The term and
conditions of sale and the form of purchase shall reflect
current market conditions, shall afford maximum protection of
Commonwealth assets and shall prescribe procedures to be
utilized in the event of default. In the case of the sale of
authority properties, the sale of such property shall be in
accordance to the applicable bond indentures.
(6) The deed of conveyance shall expressly reserve all oil,
gas and mineral rights to the Commonwealth.
(b) Any proposed disposition of real property of the
Commonwealth, other than surplus property, shall be subject to
the following conditions and limitations:
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(1) The department may sell real estate only to a political
subdivision of the Commonwealth, or to the Government of the
United States or a branch or agency thereof.
(2) Following enactment of an act of the General Assembly
authorizing the conveyance of the real property, information
regarding the availability and sale of each parcel shall be
provided through the publication of legal notice in the
Pennsylvania Bulletin and such State newspapers as the
department shall direct.
(3) The remuneration for a conveyance of surplus property
shall be based on fair consideration. Fair consideration
requires either the payment of the current fair market value of
the property or the demonstration of equivalent or greater
return to the Commonwealth within five years due to the proposed
use of the property by the entity receiving the conveyance.
(4) After appropriate public notice, the sale of the real
property by the department shall be open to public review and
inspection. Acceptance of an offer shall be subject to a minimum
price requirement as established by the department, which shall
not be less than the fair market value. The real property shall
be sold by the department through either a competitive sealed
bidding process in which prospective buyers submit sealed offers
through the mail or at an auction conducted by an auctioneer
holding a license under the provisions of the "Auctioneer and
Auction Licensing Act." The use of either method of sale shall
be at the department's discretion. Except as provided in clause
(3), sale of the real property shall be to the highest bidder,
provided that no offer may be accepted which is below the fair
market value, established through independent appraisal.
(5) The disposition of the real property shall be made upon
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such terms and conditions of sale as the department may
prescribe. The sale of the real property may be in the form of a
lump sum purchase, installment purchase or lease purchase and
may include use restrictions and reverter clauses. The term and
conditions of sale and the form of purchase shall reflect
current market conditions, shall afford maximum protection of
Commonwealth assets and shall prescribe procedures to be
utilized in the event of default. In the case of the sale of
authority real property, the sale shall be in accordance to the
applicable bond indentures.
(6) The deed of conveyance shall expressly reserve all oil,
gas and mineral rights to the Commonwealth.
Section 4. This act shall take effect in 60 days.
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