sb 0164

CHAPTER 212

SB 164-FN – FINAL VERSION

AN ACT relative to the disposal of real property purchased with highway or turnpike funds.

SPONSORS: Sen. Clegg, Dist 14; Sen. Morse, Dist 22; Sen. Larsen, Dist 15; Sen. Foster, Dist 13; Rep. Rausch, Rock 5; Rep. Graham, Hills 18; Rep. Cloutier, Sull 4

I. Requires the department of transportation to use the services of a qualified, licensed real estate broker when it sells surplus commercial and industrial real estate.

II. Requires the department to return any proceeds from the sale of surplus commercial and industrial real estate to the highway fund or the turnpike fund, whichever was the original source of the funds to purchase the real estate.

III. Removes the requirement for approval by the council on resources and development before the disposal of property purchased with state or federal highway funds, or both, or with turnpike funds.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to the disposal of real property purchased with highway or turnpike funds.

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

212:1 Intent. The intent of this act is to require the department of transportation to contract with licensed real estate professionals to sell excess commercial and industrial property owned by the department. The proceeds from the sale of the properties will be deposited into either the highway fund or the turnpike fund, depending on which fund was used to obtain the property.

212:2 New Section; Disposal of Highway or Turnpike Funded Real Estate. Amend RSA 228 by inserting after section 31-a the following new section:

(a) “Professional real estate services” means those professional services of licensed real estate professionals, as well as incidental services that members of the profession and those in their employ may logically and justifiably perform.

(b) “Licensed real estate professional” means any individual, firm, partnership, corporation, association, or other legal entity permitted by law to practice the real estate profession in this state under RSA 331-A.

II. The general court hereby declares that it shall be the policy of the department of transportation to negotiate contracts for professional real estate services on the basis of demonstrated competence and qualifications for the type of professional services required, and at fair and reasonable prices, to sell surplus commercial and industrial property obtained with funds derived from the highway fund or the turnpike fund.

III. The department shall publish a request for qualifications for professional real estate services to be procured. The department shall select licensed real estate professionals who have demonstrated competence and qualifications to market and sell highway and turnpike funded surplus commercial and industrial property.

IV. The department shall prepare a description of its procedures for procurement of professional real estate services. These descriptions shall be distributed to interested professionals subject to the provisions of this section.

V. The department shall negotiate a contract with the highest qualified firm for professional real estate services at compensation which the agency determines is fair and reasonable to the state. In making such determination, the department shall take into account the estimated value, scope, complexity, and professional nature of the services to be rendered.

VI. If the department is unable to negotiate a satisfactory contract with the firm considered to be the most qualified, at a price determined to be fair and reasonable to the state, the department shall terminate negotiations with that firm. The department shall then undertake negotiations with the second most qualified firm. Failing accord with the second most qualified firm, the department shall terminate negotiations. The department shall then undertake negotiations with the third most qualified firm.

VII. If the department is unable to negotiate a satisfactory contract with any of the selected firms, the department shall select additional firms in order of their competence and qualification and continue negotiations in accordance with this section until an agreement is reached.

VIII. All requests for disposal of surplus commercial and industrial property owned by the department of transportation shall be reviewed and approved by the long range capital planning and utilization committee prior to submission to the governor and council for approval.

IX. The sale of surplus commercial and industrial property owned by the department which was purchased with highway or turnpike fund money shall be exempt from review by the council on resources and development under RSA 162-C.

X. All proceeds from sales of surplus commercial and industrial property owned by the department shall be deposited in the fund from which they originated.

212:3 New Paragraph; Required Rulemaking; Use of Real Estate Professionals for Sales of Surplus Real Property. Amend RSA 21-L:12 by inserting after paragraph XLV the following new paragraph:

XLVI. Application procedures and approved criteria for real estate professionals for sales of surplus commercial and industrial property under RSA 228:31-b.

212:4 Disposal of Real Estate; Highway or Turnpike Funded Real Estate Exempt. Amend RSA 4:40, I to read as follows:

I. Except as provided in RSA 4:39-a, RSA 4:39-c, RSA 228:31-b, and RSA 204-D, upon recommendation of the head of any state department 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 governor and council shall first offer it to the town, city, or county in which the property is located. If the town, city, or county refuses the offer, the governor and council may sell, convey, transfer, or lease the real property.