12 LC
35 2502
House
Bill 968
By:
Representatives Hill of the
21st,
Neal of the
1st,
and Jerguson of the
22nd
A
BILL TO BE ENTITLED
AN ACT
To
amend Article 2 of Chapter 16 of Title 50 of the Official Code of Georgia
Annotated, relating to the state properties code, so as to revise certain
provisions relating to the disposition of state property; to remove oversight,
review, and approval by the General Assembly of real property transfers and
conveyances; to provide the State Properties Commission the authority to accept
sealed bids or best and final offers for the lease or sale of property; to
authorize the commission to utilize licensed real estate brokers to perform
transaction management services; to authorize the commission to make a lease or
sale of property without public competitive bidding; to provide for related
matters; to provide an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
2 of Chapter 16 of Title 50 of the Official Code of Georgia Annotated, relating
to the state properties code, is amended by revising paragraph (8) of Code
Section 50-16-31, relating to definitions, as follows:
"(8)
'Property' means:
(A)
The Western and Atlantic Railroad including all the property associated with the
railroad as of December 26, 1969, unless the same has otherwise been provided
for by Act or resolution of the General Assembly;
(B)
All the property owned by the state in Tennessee other than that property
included in subparagraph (A) of this paragraph;
(C)
The state owned property facing Peachtree, Cain, and Spring streets in the City
of Atlanta, Fulton County, Georgia, upon which the Governor's mansion once stood
and which is commonly referred to and known as the 'Henry Grady Hotel property'
or 'old Governor's mansion site property';
(D)
Any state owned real property the custody and control of which has been
transferred to the commission by executive order of the Governor;
and
(E)
Any state owned real property the custody and control of which has been
transferred to the commission by an Act or resolution of the General Assembly
without specific instructions as to its
disposition;
and
(F)
Any state owned real property which a state entity, upon a declaration or
resolution adopted by the governing body of such entity, has determined to be
surplus to the needs of the
entity."
SECTION
2.
Said
article is further amended in Code Section 50-16-34, relating to powers and
duties of the State Properties Commission generally, as follows:
"50-16-34.
The
commission, in addition to other powers and duties set forth in other Code
sections of this article, shall have the power and duty to:
(1)
Inspect, control, manage, oversee, and preserve the property;
(2)
Maintain at all times a current inventory of the property;
(3)
Authorize the payment of any tax or assessment legally levied by the State of
Tennessee or any governmental subdivision thereof upon any part of the property
situated within the State of Tennessee;
(4)
Prepare lease or sale proposals affecting the property
for
submission to the General
Assembly;
(5)
Subject to the limitation contained in this article, determine all of the terms
and conditions of each instrument prepared or executed by it;
(6)
Have prepared, in advance of
advertising
for bids
consideration
by the commission of a lease or contract of sale or deed of the
property as provided for in Code Section
50-16-39, a thorough report of such data as will enable the commission to arrive
at a fair valuation of the property
involved in
such advertisement; and to include within
the report at least
two
one
written
appraisals
appraisal
of the value of the
property.,
which appraisals
If the
appraisal values the property at more than $100,000.00, a second written
appraisal shall be ordered; provided, however, that a second appraisal shall not
be required when the contemplated lease or sale of the property is to a public
entity. Appraisals shall be made by a
person or persons familiar with property values in the area where the property
is situated; provided, however, that one of the appraisals shall be made by a
member of a nationally recognized appraisal organization; and provided, further,
that in the case of the Western and Atlantic Railroad, the appraisal, other than
the one required to be made by a member of a nationally recognized appraisal
organization, may be the latest valuation report of the Western and Atlantic
Railroad prepared by the Interstate Commerce Commission;
(7)
Contract with any person for the preparation of studies or reports as
to:
(A)
The value of such property including, but not limited to, sale value, lease
value, and insurance value;
(B)
The proper utilization to be made of such property; and
(C)
Any other data necessary or desirable to assist the commission in the execution
and performance of its duties;
(8)
Insure the improvements on all or any part of the property against loss or
damage by fire, lightning, tornado, or other insurable casualty; and insure the
contents of the improvements against any such loss or damage;
(9)
Inspect as necessary any of the property which may be under a lease, rental
agreement, or revocable license agreement in order to determine whether the
property is being kept, preserved, cared for, repaired, maintained, used, and
operated in accordance with the terms and conditions of the lease, rental
agreement, or revocable license agreement and to take such action necessary to
correct any violation of the terms and conditions of the lease, rental
agreement, or revocable license agreement;
(10)
Deal with and dispose of any unauthorized encroachment upon, or use or occupancy
of, any part of the property, whether the encroachment, use, or occupancy is
permissive or adverse, or whether with or without claim of right therefor; to
determine whether the encroachment, use, or occupancy shall be removed or
discontinued or whether it shall be permitted to continue and, if so, to what
extent and upon what terms and conditions; to adjust, settle, and finally
dispose of any controversy that may exist or arise with respect to any such
encroachment, use, or occupancy in such manner and upon such terms and
conditions as the commission may deem to be in the best interest of the state;
to take such action as the commission may deem proper and expedient to cause the
removal or discontinuance of any such encroachment, use, or occupancy; and to
institute and prosecute for and on behalf of and in the name of the state such
actions and other legal proceedings as the commission may deem appropriate for
the protection of the state's interest in or the assertion of the state's title
to such property;
(11)
Settle, adjust, and finally dispose of any claim, dispute, or controversy of any
kind whatsoever arising out of the terms and conditions, operation, or
expiration of any lease of the property or grant of rights in the
property;
(12)
Negotiate and prepare
for
submission to the General Assembly
amendments to any existing lease
of the
property,
which amendments shall not, for the purposes of paragraph (4) of this Code
section and Code Section 50-16-39, be interpreted as lease proposals or
proposals to lease, provided:
(A)
That the lessee of the lease as it is to be amended shall be either the lessee,
a successor, an assignee, or a sublessee as to all or a portion of the property
described in the lease as first executed or as heretofore amended;
and
(B)
That unless otherwise provided in the lease as first executed or as heretofore
amended:
(i)
The commission shall prepare each amendment in at least four counterparts all of
which shall immediately be signed by the lessee, whose signature shall be
witnessed in the manner required by the applicable law for public recording of
conveyances of real estate. The signing shall constitute an offer by the lessee
and shall not be subject to revocation by the lessee unless it is rejected by
the General Assembly or the Governor as provided in this Code section. A
resolution containing an exact copy of the amendment, or to which an exact copy
of the amendment is attached, shall be introduced in the General Assembly in
either the House of Representatives, the Senate, or both, if then in regular
session, or, if not in regular session at such time, at the next regular session
of the General Assembly. The resolution, in order to become effective, shall
receive the same number of readings and, in both the House of Representatives
and the Senate, go through the same processes and procedures as a
bill;
(ii)
If either the House of Representatives or the Senate fails to adopt (pass) the
resolution during the regular session by a constitutional majority vote in each
house, the offer shall be considered rejected by the General
Assembly;
(iii)
If the resolution is adopted (passed) during the regular session by a
constitutional majority vote of both the House of Representatives and the Senate
but is not approved by the Governor, the offer shall be considered rejected by
the Governor;
(iv)
If the resolution is adopted (passed) during the regular session by a
constitutional majority vote of both the House of Representatives and the Senate
and is approved by the Governor, whenever in the judgment of the chairperson of
the commission all of the precedent terms and conditions of the amendment and
the resolution, if there are any, have been fulfilled or complied with, the
chairperson of the commission, in his or her capacity as Governor of the state,
shall execute and deliver to the lessee the amendment for and on behalf of and
in the name of the state. The Governor's signature shall be attested by the
secretary of the commission in his or her capacity as Secretary of State. The
Secretary of State shall also affix the great seal of the state to the
amendment; and
(v)
On or before December 31 in each year the executive director of the State
Properties Commission shall submit a report describing all amendments negotiated
during that year or under negotiation at the date of the report to the chairmen
of the Senate Finance Committee and the State Institutions and Property
Committee of the House;
(13)
Exercise such other powers and perform such other duties as may be necessary or
desirable to inspect, control, manage, oversee, and preserve the
property;
(14)
Do all things and perform all acts necessary or convenient to carry out the
powers and fulfill the duties given to the commission in this
article;
(15)
Perform all terms including, but not limited to, termination, satisfy all
conditions, fulfill all requirements, and discharge all obligations and duties
contained in all leases or contracts of sale of the property which provide that
the commission is empowered to act or shall act for and on behalf of the state
(lessor or seller)
and which
leases or contracts of sale have heretofore been approved and adopted (passed)
or authorized by a resolution of the General Assembly or which leases or
contracts of sale may be approved and adopted (passed) or authorized by a
resolution of the General Assembly with the latter resolution being approved by
the Governor;
(16)
Perform all terms, satisfy all conditions, fulfill all requirements, discharge
all obligations, and otherwise implement the disposition of real property for
and on behalf of the
state;
when the
General Assembly so provides in any enactment, including Acts or resolutions,
authorizing or directing a disposition of real property of the state or of any
instrumentality of the state; and
(17)
Provide or perform acquisition related services to or for all state
entities;
and
(18)
Contract with licensed real estate brokers through a competitive selection
process to perform transaction management services on behalf of the commission.
For purposes of this paragraph, 'transaction management' means the management of
all tasks relative to the acquiring and disposing of real property assets,
whether leased, subleased, or
owned."
SECTION
3.
Said
article is further amended in Code Section 50-16-39, relating to public
competitive bidding procedure for sales and leases, acceptance or rejection of
bids by the commission, General Assembly, or Governor, and execution of leases
and deed, as follows:
"50-16-39.
(a)
Any proposal to lease, other than a lease of mineral resources provided for in
Code Section 50-16-43, or sell any part of the property pursuant to the power
granted by paragraph (4) of Code Section 50-16-34 shall be initiated and carried
out in accordance with this Code section.
(b)
Any such lease or sale
shall
may
be made upon public competitive bidding
and the
invitation for bids shall be advertised once a week for four consecutive weeks
in the legal organ and in one or more newspapers of general circulation in the
county or counties wherein is situated the property to be bid upon and in the
legal organ of Fulton County, Georgia. Prior to such advertising, the
commission shall prepare a proposed form of lease or contract of sale and deed
and appropriate instructions which shall be furnished to prospective bidders
under such conditions as the commission may
prescribe
in accordance
with policies to be established by the commission. Such policies shall include
the ability of the commission to take sealed bids or best and final offers for
any lease or sale of the
property.
(c)
Sealed
For any lease
or sale which shall be based upon the taking of sealed
bids, bids shall be submitted to the
secretary of the commission and each bid shall be accompanied by a bid bond or
such other security as may be prescribed by the commission. All bids shall be
opened in public on the date and at the time and place specified in the
invitation for bids. The commission shall formally determine and announce which
bid and bidder it considers to be most advantageous to the state. The
commission shall have the right to reject any or all bids and bidders and the
right to waive formalities in bidding.
(d)
When the
commission formally determines and announces which bid and bidder it considers
to be most advantageous to the state, the commission shall then prepare the
instrument of lease or contract of sale and deed in at least four counterparts,
which lease or contract of sale shall be immediately signed by the prospective
lessee or purchaser, whose signature shall be witnessed in the manner required
by the applicable law for public recording of conveyances of real estate. The
signing shall constitute a bid by the prospective lessee or purchaser and shall
not be subject to revocation by the prospective lessee or purchaser unless it is
rejected by the General Assembly or the Governor as provided in this Code
section. A resolution containing an exact copy of the proposed lease or
contract of sale and deed, or to which an exact copy of the proposed lease or
contract of sale and deed is attached, shall be introduced in the General
Assembly in either the House of Representatives, the Senate, or both, if then in
regular session, or, if not in regular session at such time, at the next regular
session of the General Assembly. The resolution, in order to become effective,
shall receive the same number of readings and, in both the House of
Representatives and the Senate, go through the same processes and procedures as
a bill.
All terms and
conditions of the proposed lease or contract of sale and deed shall be provided
to the commission for consideration.
(e)
If either
the House of Representatives or the Senate fails to adopt (pass) the resolution
during the regular session by a constitutional majority vote in each house, the
bid shall be considered rejected by the General Assembly.
(f)
If the resolution is adopted (passed) during the regular session by a
constitutional majority vote of both the House of Representatives and the Senate
but is not approved by the Governor, the bid shall be considered rejected by the
Governor.
(g)
If the resolution is adopted (passed) during the regular session by a
constitutional majority vote of both the House of Representatives and the Senate
and is approved by the Governor, the chairperson of the commission, in his or
her capacity as Governor of the state, shall execute and deliver to the
purchaser the contract of sale for and on behalf of and in the name of the
state, and thereupon both parties to the agreement shall be bound thereby. The
Governor's signature shall be attested by the secretary of the commission in his
or her capacity as Secretary of State. The Secretary of State shall also affix
the great seal of the state to the contract of
sale.
If the terms
and conditions of the proposed lease or contract of sale and deed is adopted by
resolution of the commission during any regular or called meeting of the
commission, the chairperson of the commission, in his or her capacity as
Governor of the state, shall execute and deliver to the purchaser the contract
of sale for and on behalf of and in the name of the state, and thereupon both
parties to the agreement shall be bound by such agreement. The Governor's
signature shall be attested to by the secretary of the commission in his or her
capacity as Secretary of State or in accordance with Code Section 50-16-35. The
Secretary of State or the executive director shall also affix the great seal of
the state to the contract of sale.
Whenever, in the judgment of the chairperson of the commission, all of the terms
and conditions of the contract of sale, or all of the precedent terms and
conditions of the contract of sale, or all of the precedent terms and conditions
of the lease have been fulfilled or complied with, the chairperson of the
commission in his or her capacity as Governor of the state shall execute and
deliver to the purchaser or lessee the deed or lease for and on behalf of and in
the name of the state. The Governor's signature shall be attested by the
secretary of the commission in his or her capacity as Secretary of State. The
Secretary of State shall also affix the great seal of the state to the deed or
lease."
SECTION
4.
Said
article is further amended in Code Section 50-16-40, relating to interesse
termini provisions not considered, as follows:
"50-16-40.
The
commission shall not
submit to
the General Assembly for its consideration
consider for
approval any lease which provides that
either:
(1)
The lessee will not obtain possession of the leased premises within a period of
five years from the
commencement
date of the regular session of the General Assembly
to
date of the
commission meeting at which the lease is
submitted for consideration; or
(2)
The term of the lease will not commence within a period of five years from the
commencement
date of the regular session of the General Assembly
to
date of the
commission meeting at which the lease is
submitted for consideration."
SECTION
5.
Said
article is further amended in subsection (a) of Code Section 50-16-41, relating
to rental agreements without competitive bidding authorized, limitations,
commission charged with managing administrative space of all state entities,
standards governing the utilization of administrative space, reassignment of
administrative space, and rules and regulations, as follows:
"(a)
Notwithstanding any provisions and requirements of law to the contrary and
particularly notwithstanding the requirements of Code Section 50-16-39, the
commission is authorized to negotiate, prepare, and enter into in its own name
rental agreements whereby a part of the property is rented, without public
competitive bidding, to a person for a length of time not to exceed one year and
for adequate
monetary
consideration
(in no
instance to be less than a rate of $250.00 per
year), which shall be determined by the
commission, and pursuant to such terms and conditions as the commission shall
determine to be in the best interest of the state. The same property or any
part thereof shall not be the subject matter of more than one such rental
agreement to the same person unless the commission shall determine that there
are extenuating circumstances present which would make additional one-year
rental agreements beneficial to the state; provided, however, the same property
or any part thereof shall not after April 24, 1975, be the subject matter of
more than a total of three such one-year rental agreements to the same
person.
SECTION
6.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
7.
All
laws and parts of laws in conflict with this Act are repealed.