BILL REQ. #:  H-4169.3 

Read first time 01/20/10.   Referred to Committee on State Government & Tribal Affairs.

     AN ACT Relating to transparency in the sale of public property to public employees or former public employees; amending RCW 47.12.063, 54.16.180, and 79.11.040; reenacting and amending RCW 79.11.130; adding a new section to chapter 35.21 RCW; adding a new section to chapter 35.22 RCW; adding a new section to chapter 35.23 RCW; adding a new section to chapter 35.27 RCW; adding a new section to chapter 35.57 RCW; adding a new section to chapter 36.34 RCW; adding a new section to chapter 36.100 RCW; adding a new section to chapter 43.17 RCW; adding a new section to chapter 53.08 RCW; adding a new section to chapter 57.08 RCW; adding a new section to chapter 79A.05 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that there is a need to avoid insider trading in the public sector. This act creates a mechanism so that public land sales offer transparency in the process and avoid the appearance of favoritism when they include public or former public employees.

NEW SECTION.  Sec. 2   A new section is added to chapter 35.21 RCW to read as follows:
     Whenever a public employee or a person who was employed by a public entity within the past twelve months enters into contract to purchase public lands held by a public corporation created pursuant to RCW 35.21.730 or 35.21.660, the county legislative authority must ratify the sale by majority vote at an open public meeting.

NEW SECTION.  Sec. 3   A new section is added to chapter 35.22 RCW to read as follows:
     Whenever a public employee or a person who was employed by a public entity within the past twelve months enters into contract to purchase public lands held by a city, the city's legislative authority must ratify the sale by majority vote at an open public meeting.

NEW SECTION.  Sec. 4   A new section is added to chapter 35.23 RCW to read as follows:
     Whenever a public employee or a person who was employed by a public entity within the past twelve months enters into contract to purchase public lands held by a city, the city's legislative authority must ratify the sale by majority vote at an open public meeting.

NEW SECTION.  Sec. 5   A new section is added to chapter 35.27 RCW to read as follows:
     Whenever a public employee or a person who was employed by a public entity within the past twelve months enters into contract to purchase public lands held by a town, the town's legislative authority must ratify the sale by majority vote at an open public meeting.

NEW SECTION.  Sec. 6   A new section is added to chapter 35.57 RCW to read as follows:
     Whenever a public employee or a person who was employed by a public entity within the past twelve months enters into contract to purchase public lands held by a public facilities district, the city's legislative authority must ratify the sale by majority vote at an open public meeting.

NEW SECTION.  Sec. 7   A new section is added to chapter 36.34 RCW to read as follows:
     Whenever the winning bidder for county property sold pursuant to RCW 36.34.080 is a public employee or a person who was employed by a public entity within the past twelve months, the county legislative authority must ratify the sale by majority vote at an open public meeting.

NEW SECTION.  Sec. 8   A new section is added to chapter 36.100 RCW to read as follows:
     Whenever a public employee or a person who was employed by a public entity within the past twelve months enters into contract to purchase public lands held by a public facilities district, the city's legislative authority must ratify the sale by majority vote at an open public meeting.

NEW SECTION.  Sec. 9   A new section is added to chapter 43.17 RCW to read as follows:
     When selling real property, each department must publish a notice listing any bidder who is a public employee or who was employed by a public entity within the previous twelve months.

Sec. 10   RCW 47.12.063 and 2006 c 17 s 2 are each amended to read as follows:
     (1) It is the intent of the legislature to continue the department's policy giving priority consideration to abutting property owners in agricultural areas when disposing of property through its surplus property program under this section.
     (2) Whenever the department determines that any real property owned by the state of Washington and under the jurisdiction of the department is no longer required for transportation purposes and that it is in the public interest to do so, the department may sell the property or exchange it in full or part consideration for land or improvements or for construction of improvements at fair market value to any of the following governmental entities or persons:
     (a) Any other state agency;
     (b) The city or county in which the property is situated;
     (c) Any other municipal corporation;
     (d) Regional transit authorities created under chapter 81.112 RCW;
     (e) The former owner of the property from whom the state acquired title;
     (f) In the case of residentially improved property, a tenant of the department who has resided thereon for not less than six months and who is not delinquent in paying rent to the state;
     (g) Any abutting private owner but only after each other abutting private owner (if any), as shown in the records of the county assessor, is notified in writing of the proposed sale. If more than one abutting private owner requests in writing the right to purchase the property within fifteen days after receiving notice of the proposed sale, the property shall be sold at public auction in the manner provided in RCW 47.12.283;
     (h) To any person through the solicitation of written bids through public advertising in the manner prescribed by RCW 47.28.050;
     (i) To any other owner of real property required for transportation purposes;
     (j) In the case of property suitable for residential use, any nonprofit organization dedicated to providing affordable housing to very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510 and is eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW; or
     (k) A federally recognized Indian tribe within whose reservation boundary the property is located.
     (3) Sales to purchasers may at the department's option be for cash, by real estate contract, or exchange of land or improvements. Transactions involving the construction of improvements must be conducted pursuant to chapter 47.28 RCW or Title 39 RCW, as applicable, and must comply with all other applicable laws and rules.
     (4) Conveyances made pursuant to this section shall be by deed executed by the secretary of transportation and shall be duly acknowledged.
     (5) Unless otherwise provided, all moneys received pursuant to the provisions of this section less any real estate broker commissions paid pursuant to RCW 47.12.320 shall be deposited in the motor vehicle fund.
     (6) When selling real property, the department must publish a notice listing any bidder or purchaser who is a public employee or who was employed by a public entity within the previous twelve months.

NEW SECTION.  Sec. 11   A new section is added to chapter 53.08 RCW to read as follows:
     Whenever a public employee or a person who was employed by a public entity within the past twelve months enters into contract to purchase public lands held by a port district, the commission must ratify the sale by majority vote at an open public meeting.

Sec. 12   RCW 54.16.180 and 2008 c 198 s 5 are each amended to read as follows:
     (1) A district may sell and convey, lease, or otherwise dispose of all or any part of its works, plants, systems, utilities and properties, after proceedings and approval by the voters of the district, as provided for the lease or disposition of like properties and facilities owned by cities and towns. The affirmative vote of three-fifths of the voters voting at an election on the question of approval of a proposed sale((,)) shall be necessary to authorize such a sale.
     (2) A district may, without the approval of the voters, sell, convey, lease, or otherwise dispose of all or any part of the property owned by it that is located:
     (a) Outside its boundaries, to another public utility district, city, town or other municipal corporation; or
     (b) Within or without its boundaries, which has become unserviceable, inadequate, obsolete, worn out or unfit to be used in the operations of the system and which is no longer necessary, material to, and useful in such operations, to any person or public body.
     (3) A district may sell, convey, lease or otherwise dispose of items of equipment or materials to any other district, to any cooperative, mutual, consumer-owned or investor-owned utility, to any federal, state, or local government agency, to any contractor employed by the district or any other district, utility, or agency, or any customer of the district or of any other district or utility, from the district's stores without voter approval or resolution of the district's board, if such items of equipment or materials cannot practicably be obtained on a timely basis from any other source, and the amount received by the district in consideration for any such sale, conveyance, lease, or other disposal of such items of equipment or materials is not less than the district's cost to purchase such items or the reasonable market value of equipment or materials.
     (4) A district located within a county with a population of from one hundred twenty-five thousand to less than two hundred ten thousand may sell and convey to a city of the first class, which owns its own water system, all or any part of a water system owned by the district where a portion of it is located within the boundaries of the city, without approval of the voters, upon such terms and conditions as the district shall determine.
     (5) A district located in a county with a population of from twelve thousand to less than eighteen thousand and bordered by the Columbia river may, separately or in connection with the operation of a water system, or as part of a plan for acquiring or constructing and operating a water system, or in connection with the creation of another or subsidiary local utility district, provide for the acquisition or construction, additions or improvements to, or extensions of, and operation of, a sewage system within the same service area as in the judgment of the district commission is necessary or advisable to eliminate or avoid any existing or potential danger to public health due to lack of sewerage facilities or inadequacy of existing facilities.
     (6) A district located within a county with a population of from one hundred twenty-five thousand to less than two hundred ten thousand bordering on Puget Sound may sell and convey to any city or town with a population of less than ten thousand all or any part of a water system owned by the district without approval of the voters upon such terms and conditions as the district shall determine.
     (7) A district may sell and convey, lease, or otherwise dispose of, to any person or entity without approval of the voters and upon such terms and conditions as it determines, all or any part of an electric generating project owned directly or indirectly by the district, regardless of whether the project is completed, operable, or operating, as long as:
     (a) The project is or would be powered by an eligible renewable resource as defined in RCW 19.285.030; and
     (b) The district, or the separate legal entity in which the district has an interest in the case of indirect ownership, has:
     (i) The right to lease the project or to purchase all or any part of the energy from the project during the period in which it does not have a direct or indirect ownership interest in the project; and
     (ii) An option to repurchase the project or part thereof sold, conveyed, leased, or otherwise disposed of at or below fair market value upon termination of the lease of the project or termination of the right to purchase energy from the project.
     (8) Districts are municipal corporations for the purposes of this section. A commission shall be held to be the legislative body, a president and secretary shall have the same powers and perform the same duties as a mayor and city clerk, and the district resolutions shall be held to be ordinances within the meaning of statutes governing the sale, lease, or other disposal of public utilities owned by cities and towns.
     (9) When selling real property, the district must publish a notice listing any bidder or purchaser who is a public employee or who was employed by a public entity within the previous twelve months.

NEW SECTION.  Sec. 13   A new section is added to chapter 57.08 RCW to read as follows:
     When selling real property, the district must publish a notice listing any bidder or purchaser who is a public employee or who was employed by a public entity within the previous twelve months.

Sec. 14   RCW 79.11.040 and 2003 c 334 s 311 are each amended to read as follows:
     Any person desiring to purchase any state lands shall file an application on the forms provided by the department and accompanied by the fees authorized under RCW 79.02.250. If a person desiring to purchase state lands is a public employee or was employed by a public entity within the previous twelve months, the sale must conform to the requirements of chapter 42.52 RCW.

Sec. 15   RCW 79.11.130 and 2003 c 381 s 4 and 2003 c 334 s 346 are each reenacted and amended to read as follows:
     (1) The department shall give notice of the sale by advertisement published not fewer than two times during a four-week period prior to the time of sale in at least one newspaper of general circulation in the county in which the whole, or any part of any lot, block, or tract of land to be sold is situated, and by posting a copy of the notice in a conspicuous place in the department's Olympia office, the region headquarters administering such sale, and in the office of the county auditor of such county. The notice shall specify the place, date, and time of sale, the appraised value of the land, describe with particularity each parcel of land to be sold, and specify that the terms of sale will be available in the region headquarters and the department's Olympia office. In addition, the notice shall include the names of any public employees or former public employees who left public employment in the previous twelve months making any offer to purchase the state land, the amount of the public employee's offer, the terms and conditions of the offer, and when and how the offer was made. The notice must also include a statement that all offers from any other individuals and entities will be accepted and that the property shall be sold only to the highest and best bidder.
     (2) The advertisement is for informational purposes only, and under no circumstances does the information in the notice of sale constitute a warranty that the purchaser will receive the stated values, volumes, or acreage. All purchasers are expected to make their own measurements, evaluations, and appraisals.
     (3) The department shall print a list of all public lands and the appraised value thereof, that are to be sold. This list should be published in a pamphlet form to be issued at least four weeks prior to the date of any sale of the lands. The list should be organized by county and by alphabetical order, and provide sale information to prospective buyers. The department shall retain for free distribution in the Olympia office and the region offices sufficient copies of the pamphlet, to be kept in a conspicuous place, and, when requested so to do, shall mail copies of the pamphlet as issued to any requesting applicant. The department may seek additional means of publishing the information in the pamphlet, such as on the internet, to increase the number of prospective buyers.
     (4) The sale of valuable materials appraised at an amount not exceeding two hundred fifty thousand dollars, as described in RCW ((79.01.200)) 79.11.090 and as authorized by the board of natural resources, are exempt from the requirements of subsection (3) of this section.

NEW SECTION.  Sec. 16   A new section is added to chapter 79A.05 RCW to read as follows:
     When selling real property, the commission must publish a notice listing any bidder or purchaser who is a public employee or who was employed by a public entity within the previous twelve months.

NEW SECTION.  Sec. 17   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.