2ESHB 2016 -
By Committee on Judiciary
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1 A new section is added to chapter 8.25 RCW
to read as follows:
(1) At the time the condemnor provides written notice of its intent
to acquire the property to a property owner or at least ninety days
prior to the time the condemnor issues its notice of planned final
action under RCW 8.25.290, whichever occurs first, the condemnor shall
inform the owner that his or her property may be the subject of
condemnation. The condemnor shall include a written statement
documenting the condemnor's consideration of and reasons for rejecting
alternatives to the condemnation sought or to the nature or extent of
the condemnation sought. The condemnor shall further inform the owner
that the condemnor must consider any reasonable alternative to
condemnation or any reasonable alternative to the nature and extent of
condemnation suggested by the property owner in writing as provided in
subsection (3) of this section.
(2) The condemnor's written notice of intent to acquire property or
its written offer of just compensation shall be delivered personally,
or in the same manner as provided in RCW 8.25.290(2)(a)(i).
(3) The condemnor shall accept for consideration all reasonable
alternatives submitted by the owner up to ninety days after the
condemnor provides written notice to acquire the property to the
property owner or no later than ninety days after the condemnor
provides notice of consideration of other alternatives, whichever
occurs first. The condemnor shall give thorough consideration to all
reasonable alternatives and provide a written response to the owner
regarding its decision on the alternatives prior to taking final action
as defined in RCW 8.25.290. If the condemnor does not adopt an
alternative proposed by the property owner, it shall include in its
response an explanation of the reasons the alternative was rejected.
Reasonable alternatives must be related to the specific property to be
condemned and shall not include alternatives to the overall project for
which the condemnation is sought.
(4) This section does not affect or alter the standard of judicial
review of public use and necessity in a condemnation action.
(5) For purposes of this section, "property" means real property or
a portion of real property.
Sec. 2 RCW 8.25.020 and 1999 c 52 s 1 are each amended to read as
follows:
There shall be paid by the condemnor in respect of each parcel of
real property acquired by eminent domain or by consent under threat
thereof, in addition to the fair market value of the property, a sum
equal to the ((various expenditures actually and reasonably))
reasonable expenses actually incurred by those with an interest or
interests in said parcel in the process of evaluating the condemnor's
offer to buy the same, but not to exceed ((a total of seven hundred
fifty dollars)) the lesser of: (1) Ten thousand dollars; or (2) one
percent of the value of the parcel as determined by the condemnor's
fair market value appraisal or seven hundred fifty dollars, whichever
is greater. Reasonable expenses shall be limited to the evaluation of
the sufficiency of the offer to purchase real property and shall not
include costs incurred to evaluate or propose reasonable alternatives
to the condemnation in section 1 of this act or to evaluate or
challenge the legality of the condemnation process or the legality of
the ongoing project for which the condemnation is sought. In the case
of multiple interests in a parcel, the division of such sum shall be
determined by the court or by agreement of the parties.
NEW SECTION. Sec. 3 A new section is added to chapter 8.25 RCW
to read as follows:
When real property is acquired through condemnation or under the
threat of condemnation, the owner of the property shall have an option
to repurchase the property in accordance with this section. It shall
be a part of the purchase and sale agreement or other agreement for the
transfer of the property to the acquiring entity. The option to
repurchase should be recorded in the real property records of the
county where the property is located.
(1) If, within twenty years after the date real property was
transferred to an acquiring entity through or under the threat of
condemnation, the acquiring entity determines that all or a portion of
the property or an interest in the property is no longer necessary for
a public purpose, a former owner may exercise the option to repurchase
the property in accordance with this section.
(a) At least ninety days prior to the date on which the acquiring
entity will announce a public process for property disposition or, if
the sale is to be negotiated, at least ninety days prior to the date on
which a purchase and sale agreement or similar document is to be
signed, the acquiring entity shall (i) publish notice of its
determination to sell the property or a portion of the property in a
legal newspaper of general circulation in the area where the property
to be sold is located, (ii) describe generally any easements, other
restrictions, or reserved rights the acquiring entity intends to retain
upon sale, and (iii) mail notice of the determination to the former
owner of the property at the former owner's last known address or to a
forwarding address if that owner has provided the acquiring entity with
a forwarding address by written notice to the department or office
responsible for the acquisition.
(b) If the former owner notifies the acquiring entity in writing
within ninety days of the date of notice provided under (a) of this
subsection that the former owner intends to exercise the repurchase
option granted by this section, the acquiring entity shall, unless it
already has a completed current independent appraisal for the property,
immediately arrange for an independent appraisal to determine the fair
market value of the property or portion of property subject to
repurchase. In addition, the independent appraisal shall separately
state the value of any physical changes to the property, such as
improvements or removal of structures. Within thirty days of receipt
of the former owner's notice of intent to exercise the repurchase
option or following the acquiring entity's receipt of the appraisal,
the acquiring entity shall provide the former owner with a written copy
of the appraisal. All costs of appraisal shall be paid by the
acquiring entity. If the former owner does not provide timely written
notice to the acquiring entity of the intent to exercise a repurchase
option, that option is extinguished and the acquiring entity is
relieved of any further obligation under this section.
(c) Within thirty days of the date the acquiring entity provides a
written copy of the appraisal to the former owner under (b) of this
subsection, or within thirty days following the former owner's failure
to initiate a lawsuit or failure to demand binding arbitration under
(e) of this subsection, or within thirty days of the completion of any
proceedings under (e) of this subsection, the former owner may exercise
the repurchase option granted by this section by delivering to the
acquiring entity earnest money or a deposit in a form determined by the
acquiring entity in an amount equal to five percent of the appraised
value, together with a written promise to pay, within thirty days, the
following:
(i) The lesser of (A) the appraised value less the earnest money or
deposit, or (B) an amount equal to the compensation received from the
acquiring entity when the property or portion of property was condemned
or sold under threat of condemnation adjusted for inflation, and with
the amount adjusted to reflect the value of any physical changes to the
property, such as improvements or removal of structures, as determined
by the independent appraisal, less the earnest money or deposit; and
(ii) All required fees and costs otherwise required for the
transfer of real property.
(d) Upon receipt of the full payment required in (c) of this
subsection, the acquiring entity shall transfer title to the former
owner, subject to any easements, other restrictions, or reserved rights
retained by the acquiring entity. If the former owner fails to
complete the sale, the earnest money or deposit is forfeited to the
acquiring entity, the former owner's repurchase option is extinguished,
and the acquiring entity is relieved of any further obligation under
this section.
(e) If the acquiring entity and the former owner cannot agree on
the amount of compensation paid for a portion of the property under
(c)(i)(B) of this subsection within thirty days of the date the
acquiring entity provides a written copy of the appraisal to the former
owner under (b) of this subsection, the acquiring entity and the former
owner shall each arrange for an independent appraisal of the just
compensation allocation to the portion of the property to be sold. If
the acquiring entity and the former owner cannot then agree on the
amount, the former owner may initiate a lawsuit to determine the
amount, or may demand, in writing, binding arbitration in which case
all appraisals shall be submitted to a third, independent appraiser.
The third appraiser shall sit as an arbitrator and determine the amount
of just compensation under (c)(i)(B) of this subsection. The
arbitrator's decision shall be final and binding. The acquiring entity
and former owner shall bear their own costs and fees, and pay equally
the costs and fees of the arbitrator.
(2) The acquiring entity may reject a notice of intent under
subsection (1)(b) of this section received from a person claiming to be
a successor or assignee that is not accompanied by evidence sufficient
to demonstrate that the person is the successor or assignee of the
person from whom the acquiring entity acquired title.
(3) The obligations imposed on an acquiring entity in this section
are in addition to any provided by law for the surplusing or sale of
public property to private parties. Nothing in this section precludes
an acquiring entity from retaining the property and determining not to
surplus and sell the property.
(4) Notwithstanding subsections (1) through (3) of this section,
this section shall not apply if:
(a) The United States government or an agency thereof determines
that application of this section is inconsistent with federal laws,
regulations, or policies or would reduce eligibility for federal
funding;
(b) Transfer of title to all or a portion of the property to
another governmental entity or party is required as part of the project
or public purpose for which the property was originally acquired; and
(c) The sale or disposal of property to a public entity is for a
public purpose.
(5) For the purposes of this section:
(a) "Former owner" means the person or persons from whom the
acquiring entity acquired title or that person's or those persons'
successors or assigns to the property or property interest that is
subject to the repurchase right.
(b) "Market rate" means two percentage points above the equivalent
coupon issue yield, as published by the board of governors of the
federal reserve system, of the average bill rate for twenty-six week
treasury bills as determined at the first bill market auction conducted
during the calendar month immediately following the date when the
acquiring entity provided compensation to the former owner at the time
the property was condemned or sold under threat of condemnation.
(c) "Property" means real property or a portion of real property.
Sec. 4 RCW 28A.335.120 and 2006 c 263 s 913 are each amended to
read as follows:
(1) The board of directors of any school district of this state
may:
(a) Sell for cash, at public or private sale, and convey by deed
all interest of the district in or to any of the real property of the
district which is no longer required for school purposes; and
(b) Purchase real property for the purpose of locating thereon and
affixing thereto any house or houses and appurtenant buildings removed
from school sites owned by the district and sell for cash, at public or
private sale, and convey by deed all interest of the district in or to
such acquired and improved real property.
(2) When the board of directors of any school district proposes a
sale of school district real property pursuant to this section and the
value of the property exceeds seventy thousand dollars, the board shall
publish a notice of its intention to sell the property. The notice
shall be published at least once each week during two consecutive weeks
in a legal newspaper with a general circulation in the area in which
the school district is located. The notice shall describe the property
to be sold and designate the place where and the day and hour when a
hearing will be held. The board shall hold a public hearing upon the
proposal to dispose of the school district property at the place and
the day and hour fixed in the notice and admit evidence offered for and
against the propriety and advisability of the proposed sale.
(3) The board of directors of any school district desiring to sell
surplus real property shall publish a notice in a newspaper of general
circulation in the school district. School districts shall not sell
the property for at least forty-five days following the publication of
the newspaper notice.
(4) Private schools shall have the same rights as any other person
or entity to submit bids for the purchase of surplus real property and
to have such bids considered along with all other bids.
(5) Any sale of school district real property authorized pursuant
to this section shall be preceded by a market value appraisal by a
professionally designated real estate appraiser as defined in RCW
74.46.020 or a general real estate appraiser certified under chapter
18.140 RCW selected by the board of directors and no sale shall take
place if the sale price would be less than ninety percent of the
appraisal made by the real estate appraiser: PROVIDED, That if the
property has been on the market for one year or more the property may
be reappraised and sold for not less than seventy-five percent of the
reappraised value with the unanimous consent of the board.
(6) If in the judgment of the board of directors of any district
the sale of real property of the district not needed for school
purposes would be facilitated and greater value realized through use of
the services of licensed real estate brokers, a contract for such
services may be negotiated and concluded: PROVIDED, That the use of a
licensed real estate broker will not eliminate the obligation of the
board of directors to provide the notice described in this section:
PROVIDED FURTHER, That the fee or commissions charged for any broker
services shall not exceed seven percent of the resulting sale value for
a single parcel: PROVIDED FURTHER, That any professionally designated
real estate appraiser as defined in RCW 74.46.020 or a general real
estate appraiser certified under chapter 18.140 RCW selected by the
board to appraise the market value of a parcel of property to be sold
may not be a party to any contract with the school district to sell
such parcel of property for a period of three years after the
appraisal.
(7) If in the judgment of the board of directors of any district
the sale of real property of the district not needed for school
purposes would be facilitated and greater value realized through sale
on contract terms, a real estate sales contract may be executed between
the district and buyer.
(8) This section is subject to and operates only to the extent its
application is not inconsistent with the operation of section 3 of this
act with respect to property acquired through or under the threat of
condemnation.
Sec. 5 RCW 35.58.340 and 1993 c 240 s 9 are each amended to read
as follows:
Except as otherwise provided herein, a metropolitan municipal
corporation may sell, or otherwise dispose of any real or personal
property acquired in connection with any authorized metropolitan
function and which is no longer required for the purposes of the
metropolitan municipal corporation in the same manner as provided for
cities. When the metropolitan council determines that a metropolitan
facility or any part thereof which has been acquired from a component
city or county without compensation is no longer required for
metropolitan purposes, but is required as a local facility by the city
or county from which it was acquired, the metropolitan council shall by
resolution transfer it to such city or county. This section is subject
to and operates only to the extent its application is not inconsistent
with the operation of section 3 of this act with respect to property
acquired through or under the threat of condemnation.
Sec. 6 RCW 35.80A.030 and 1989 c 271 s 241 are each amended to
read as follows:
A county, city, or town may dispose of real property acquired
pursuant to this section to private persons only under such reasonable,
competitive procedures as it shall prescribe. The county, city, or
town may accept such proposals as it deems to be in the public interest
and in furtherance of the purposes of this chapter. Thereafter, the
county, city, or town may execute and deliver contracts, deeds, leases,
and other instruments of transfer. This section is subject to and
operates only to the extent its application is not inconsistent with
the operation of section 3 of this act with respect to property
acquired through or under the threat of condemnation.
Sec. 7 RCW 35.94.040 and 1973 1st ex.s. c 95 s 1 are each amended
to read as follows:
Whenever a city shall determine, by resolution of its legislative
authority, that any lands, property, or equipment originally acquired
for public utility purposes is surplus to the city's needs and is not
required for providing continued public utility service, then such
legislative authority by resolution and after a public hearing may
cause such lands, property, or equipment to be leased, sold, or
conveyed. Such resolution shall state the fair market value or the
rent or consideration to be paid and such other terms and conditions
for such disposition as the legislative authority deems to be in the
best public interest.
The provisions of RCW 35.94.020 and 35.94.030 shall not apply to
dispositions authorized by this section.
This section is subject to and operates only to the extent its
application is not inconsistent with the operation of section 3 of this
act with respect to property acquired through or under the threat of
condemnation.
Sec. 8 RCW 36.68.010 and 1963 c 4 s 36.68.010 are each amended to
read as follows:
Counties may establish park and playground systems for public
recreational purposes and for such purposes shall have the power to
acquire lands, buildings and other facilities by gift, purchase, lease,
devise, bequest and condemnation. A county may lease or sell any park
property, buildings or facilities surplus to its needs, or no longer
suitable for park purposes: PROVIDED, That such park property shall be
subject to the requirements and provisions of notice, hearing, bid or
intergovernmental transfer as provided in chapter 36.34 RCW: PROVIDED
FURTHER, That nothing in this section shall be construed as authorizing
any county to sell any property which such county acquired by
condemnation for park or playground or other public recreational
purposes on or after January 1, 1960, until held for five years or more
after such acquisition: PROVIDED FURTHER, That funds acquired from the
lease or sale of any park property, buildings or facilities shall be
placed in the park and recreation fund to be used for capital purposes.
This section is subject to and operates only to the extent its
application is not inconsistent with the operation of section 3 of this
act with respect to property acquired through or under the threat of
condemnation.
NEW SECTION. Sec. 9 A new section is added to chapter 39.33 RCW
to read as follows:
This chapter is subject to and operates only to the extent its
application is not inconsistent with the operation of section 3 of this
act with respect to property acquired through or under the threat of
condemnation.
Sec. 10 RCW 43.43.115 and 1993 c 438 s 1 are each amended to read
as follows:
Whenever real property owned by the state of Washington and under
the jurisdiction of the Washington state patrol is no longer required,
it may be sold at fair market value. All proceeds received from the
sale of real property, less any real estate broker commissions, shall
be deposited into the state patrol highway account: PROVIDED, That if
accounts or funds other than the state patrol highway account have
contributed to the purchase or improvement of the real property, the
office of financial management shall determine the proportional equity
of each account or fund in the property and improvements, and shall
direct the proceeds to be deposited proportionally therein. This
section is subject to and operates only to the extent its application
is not inconsistent with the operation of section 3 of this act with
respect to property acquired through or under the threat of
condemnation.
Sec. 11 RCW 43.82.010 and 2007 c 506 s 8 are each amended to read
as follows:
(1) The director of general administration, on behalf of the agency
involved and after consultation with the office of financial
management, shall purchase, lease, lease purchase, rent, or otherwise
acquire all real estate, improved or unimproved, as may be required by
elected state officials, institutions, departments, commissions,
boards, and other state agencies, or federal agencies where joint state
and federal activities are undertaken and may grant easements and
transfer, exchange, sell, lease, or sublease all or part of any surplus
real estate for those state agencies which do not otherwise have the
specific authority to dispose of real estate. This section does not
transfer financial liability for the acquired property to the
department of general administration.
(2) Except for real estate occupied by federal agencies, the
director shall determine the location, size, and design of any real
estate or improvements thereon acquired or held pursuant to subsection
(1) of this section. Facilities acquired or held pursuant to this
chapter, and any improvements thereon, shall conform to standards
adopted by the director and approved by the office of financial
management governing facility efficiency unless a specific exemption
from such standards is provided by the director of general
administration. The director of general administration shall report to
the office of financial management and the appropriate committees of
the legislature annually on any exemptions granted pursuant to this
subsection.
(3) The director of general administration may fix the terms and
conditions of each lease entered into under this chapter, except that
no lease shall extend greater than twenty years in duration. The
director of general administration may enter into a long-term lease
greater than ten years in duration upon a determination by the director
of the office of financial management that the long-term lease provides
a more favorable rate than would otherwise be available, it appears to
a substantial certainty that the facility is necessary for use by the
state for the full length of the lease term, and the facility meets the
standards adopted pursuant to subsection (2) of this section. The
director of general administration may enter into a long-term lease
greater than ten years in duration if an analysis shows that the life-cycle cost of leasing the facility is less than the life-cycle cost of
purchasing or constructing a facility in lieu of leasing the facility.
(4) Except as permitted under chapter 39.94 RCW, no lease for or on
behalf of any state agency may be used or referred to as collateral or
security for the payment of securities offered for sale through a
public offering. Except as permitted under chapter 39.94 RCW, no lease
for or on behalf of any state agency may be used or referred to as
collateral or security for the payment of securities offered for sale
through a private placement without the prior written approval of the
state treasurer. However, this limitation shall not prevent a lessor
from assigning or encumbering its interest in a lease as security for
the repayment of a promissory note provided that the transaction would
otherwise be an exempt transaction under RCW 21.20.320. The state
treasurer shall adopt rules that establish the criteria under which any
such approval may be granted. In establishing such criteria the state
treasurer shall give primary consideration to the protection of the
state's credit rating and the integrity of the state's debt management
program. If it appears to the state treasurer that any lease has been
used or referred to in violation of this subsection or rules adopted
under this subsection, then he or she may recommend that the governor
cause such lease to be terminated. The department of general
administration shall promptly notify the state treasurer whenever it
may appear to the department that any lease has been used or referred
to in violation of this subsection or rules adopted under this
subsection.
(5) It is the policy of the state to encourage the colocation and
consolidation of state services into single or adjacent facilities,
whenever appropriate, to improve public service delivery, minimize
duplication of facilities, increase efficiency of operations, and
promote sound growth management planning.
(6) The director of general administration shall provide
coordinated long-range planning services to identify and evaluate
opportunities for colocating and consolidating state facilities. Upon
the renewal of any lease, the inception of a new lease, or the purchase
of a facility, the director of general administration shall determine
whether an opportunity exists for colocating the agency or agencies in
a single facility with other agencies located in the same geographic
area. If a colocation opportunity exists, the director of general
administration shall consult with the affected state agencies and the
office of financial management to evaluate the impact colocation would
have on the cost and delivery of agency programs, including whether
program delivery would be enhanced due to the centralization of
services. The director of general administration, in consultation with
the office of financial management, shall develop procedures for
implementing colocation and consolidation of state facilities.
(7) The director of general administration is authorized to
purchase, lease, rent, or otherwise acquire improved or unimproved real
estate as owner or lessee and to lease or sublet all or a part of such
real estate to state or federal agencies. The director of general
administration shall charge each using agency its proportionate rental
which shall include an amount sufficient to pay all costs, including,
but not limited to, those for utilities, janitorial and accounting
services, and sufficient to provide for contingencies; which shall not
exceed five percent of the average annual rental, to meet unforeseen
expenses incident to management of the real estate.
(8) If the director of general administration determines that it is
necessary or advisable to undertake any work, construction, alteration,
repair, or improvement on any real estate acquired pursuant to
subsection (1) or (7) of this section, the director shall cause plans
and specifications thereof and an estimate of the cost of such work to
be made and filed in his or her office and the state agency benefiting
thereby is hereby authorized to pay for such work out of any available
funds: PROVIDED, That the cost of executing such work shall not exceed
the sum of twenty-five thousand dollars. Work, construction,
alteration, repair, or improvement in excess of twenty-five thousand
dollars, other than that done by the owner of the property if other
than the state, shall be performed in accordance with the public works
law of this state.
(9) In order to obtain maximum utilization of space, the director
of general administration shall make space utilization studies, and
shall establish standards for use of space by state agencies. Such
studies shall include the identification of opportunities for
colocation and consolidation of state agency office and support
facilities.
(10) The director of general administration may construct new
buildings on, or improve existing facilities, and furnish and equip,
all real estate under his or her management. Prior to the construction
of new buildings or major improvements to existing facilities or
acquisition of facilities using a lease purchase contract, the director
of general administration shall conduct an evaluation of the facility
design and budget using life-cycle cost analysis, value-engineering,
and other techniques to maximize the long-term effectiveness and
efficiency of the facility or improvement.
(11) All conveyances and contracts to purchase, lease, rent,
transfer, exchange, or sell real estate and to grant and accept
easements shall be approved as to form by the attorney general, signed
by the director of general administration or the director's designee,
and recorded with the county auditor of the county in which the
property is located.
(12) The director of general administration may delegate any or all
of the functions specified in this section to any agency upon such
terms and conditions as the director deems advisable. By January 1st
of each year, beginning January 1, 2008, the department shall submit an
annual report to the office of financial management and the appropriate
committees of the legislature on all delegated leases.
(13) This section does not apply to the acquisition of real estate
by:
(a) The state college and universities for research or experimental
purposes;
(b) The state liquor control board for liquor stores and
warehouses; and
(c) The department of natural resources, the department of fish and
wildlife, the department of transportation, and the state parks and
recreation commission for purposes other than the leasing of offices,
warehouses, and real estate for similar purposes.
(14) Notwithstanding any provision in this chapter to the contrary,
the department of general administration may negotiate ground leases
for public lands on which property is to be acquired under a financing
contract pursuant to chapter 39.94 RCW under terms approved by the
state finance committee.
(15) The department of general administration shall report annually
to the office of financial management and the appropriate fiscal
committees of the legislature on facility leases executed for all state
agencies for the preceding year, lease terms, and annual lease costs.
The report must include leases executed under RCW 43.82.045 and
subsection (12) of this section.
(16) This section is subject to and operates only to the extent its
application is not inconsistent with the operation of section 3 of this
act with respect to property acquired through or under the threat of
condemnation.
Sec. 12 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) This section is subject to and operates only to the extent its
application is not inconsistent with the operation of section 3 of this
act with respect to property acquired through or under the threat of
condemnation.
Sec. 13 RCW 47.12.283 and 1979 ex.s. c 189 s 1 are each amended
to read as follows:
(1) Whenever the department of transportation determines that any
real property owned by the state of Washington and under the
jurisdiction of the department is no longer required for highway
purposes and that it is in the public interest to do so, the department
may, in its discretion, sell the property under RCW 47.12.063 or under
subsections (2) through (6) of this section.
(2) Whenever the department determines to sell real property under
its jurisdiction at public auction, the department shall first give
notice thereof by publication on the same day of the week for two
consecutive weeks, with the first publication at least two weeks prior
to the date of the auction, in a legal newspaper of general circulation
in the area where the property to be sold is located. The notice shall
be placed in both the legal notices section and the real estate
classified section of the newspaper. The notice shall contain a
description of the property, the time and place of the auction, and the
terms of the sale. The sale may be for cash or by real estate
contract.
(3) The department shall sell the property at the public auction,
in accordance with the terms set forth in the notice, to the highest
and best bidder providing the bid is equal to or higher than the
appraised fair market value of the property.
(4) If no bids are received at the auction or if all bids are
rejected, the department may, in its discretion, enter into
negotiations for the sale of the property or may list the property with
a licensed real estate broker. No property shall be sold by
negotiations or through a broker for less than the property's appraised
fair market value. Any offer to purchase real property pursuant to
this subsection shall be in writing and may be rejected at any time
prior to written acceptance by the department.
(5) Before the department shall approve any offer for the purchase
of real property having an appraised value of more than ten thousand
dollars, pursuant to subsection (4) of this section, the department
shall first publish a notice of the proposed sale in a local newspaper
of general circulation in the area where the property is located. The
notice shall include a description of the property, the selling price,
the terms of the sale, including the price and interest rate if sold by
real estate contract, and the name and address of the department
employee or the real estate broker handling the transaction. The
notice shall further state that any person may, within ten days after
the publication of the notice, deliver to the designated state employee
or real estate broker a written offer to purchase the property for not
less than ten percent more than the negotiated sale price, subject to
the same terms and conditions. A subsequent offer shall not be
considered unless it is accompanied by a deposit of twenty percent of
the offer in the form of cash, money order, cashiers check, or
certified check payable to the Washington state treasurer, to be
forfeited to the state (for deposit in the motor vehicle fund) if the
offeror fails to complete the sale if the offeror's offer is accepted.
If a subsequent offer is received, the first offeror shall be informed
by registered or certified mail sent to the address stated in his
offer. The first offeror shall then have ten days, from the date of
mailing the notice of the increased offer, in which to file with the
designated state employee or real estate broker a higher offer than
that of the subsequent offeror. After the expiration of the ten day
period, the department shall approve in writing the highest and best
offer which the department then has on file.
(6) All moneys received pursuant to this section, less any real
estate broker's commissions paid pursuant to RCW 47.12.320, shall be
deposited in the motor vehicle fund.
(7) This section is subject to and operates only to the extent its
application is not inconsistent with the operation of section 3 of this
act with respect to property acquired through or under the threat of
condemnation.
Sec. 14 RCW 47.52.050 and 1971 ex.s. c 39 s 1 are each amended to
read as follows:
(1) For the purpose of this chapter the highway authorities of the
state, counties and incorporated cities and towns, respectively, or in
cooperation one with the other, may acquire private or public property
and property rights for limited access facilities and service roads,
including rights of access, air, view and light, by gift, devise,
purchase, or condemnation, in the same manner as such authorities are
now or hereafter may be authorized by law to acquire property or
property rights in connection with highways and streets within their
respective jurisdictions. Except as otherwise provided in subsection
(2) of this section all property rights acquired under the provisions
of this chapter shall be in fee simple. In the acquisition of property
or property rights for any limited access facility or portion thereof,
or for any service road in connection therewith, the state, county,
incorporated city and town authority may, in its discretion, acquire an
entire lot, block or tract of land, if by so doing the interest of the
public will be best served, even though said entire lot, block or tract
is not immediately needed for the limited access facility. This
subsection is subject to and operates only to the extent its
application is not inconsistent with the operation of section 3 of this
act with respect to property acquired through or under the threat of
condemnation.
(2) The highway authorities of the state, counties, and
incorporated cities and towns may acquire by gift, devise, purchase, or
condemnation a three dimensional air space corridor in fee simple over
or below the surface of the ground, together with such other property
in fee simple and other property rights as are needed for the
construction and operation of a limited access highway facility, but
only if the acquiring authority finds that the proposal will not:
(a) impair traffic safety on the highway or interfere with the free
flow of traffic; or
(b) permit occupancy or use of the air space above or below the
highway which is hazardous to the operation of the highway.
Sec. 15 RCW 53.08.090 and 1994 c 26 s 1 are each amended to read
as follows:
(1) A port commission may, by resolution, authorize the managing
official of a port district to sell and convey port district property
of ten thousand dollars or less in value. The authority shall be in
force for not more than one calendar year from the date of resolution
and may be renewed from year to year. Prior to any such sale or
conveyance the managing official shall itemize and list the property to
be sold and make written certification to the commission that the
listed property is no longer needed for district purposes. Any large
block of the property having a value in excess of ten thousand dollars
shall not be broken down into components of ten thousand dollars or
less value and sold in the smaller components unless the smaller
components be sold by public competitive bid. A port district may sell
and convey any of its real or personal property valued at more than ten
thousand dollars when the port commission has, by resolution, declared
the property to be no longer needed for district purposes, but no
property which is a part of the comprehensive plan of improvement or
modification thereof shall be disposed of until the comprehensive plan
has been modified to find the property surplus to port needs. The
comprehensive plan shall be modified only after public notice and
hearing provided by RCW 53.20.010.
Nothing in this section shall be deemed to repeal or modify
procedures for property sales within industrial development districts
as set forth in chapter 53.25 RCW.
(2) The ten thousand dollar figures in subsection (1) of this
section shall be adjusted annually based upon the governmental price
index established by the department of revenue under RCW 82.14.200.
(3) This section is subject to and operates only to the extent its
application is not inconsistent with the operation of section 3 of this
act with respect to property acquired through or under the threat of
condemnation.
Sec. 16 RCW 53.25.040 and 1989 c 167 s 1 are each amended to read
as follows:
(1) A port commission may, after a public hearing thereon, of which
at least ten days' notice shall be published in a newspaper of general
circulation in the port district, create industrial development
districts within the district and define the boundaries thereof, if it
finds that the creation of the industrial development district is
proper and desirable in establishing and developing a system of harbor
improvements and industrial development in the port district.
(2) The boundaries of an industrial development district created by
subsection (1) of this section may be revised from time to time by
resolution of the port commission, to delete land area therefrom, if
the land area to be deleted was acquired by the port district with its
own funds or by gift or transfer other than pursuant to RCW 53.25.050
or 53.25.060.
As to any land area to be deleted under this subsection that was
acquired or improved by the port district with funds obtained through
RCW 53.36.100, the port district shall deposit funds equal to the fair
market value of the lands and improvements into the fund for future use
described in RCW 53.36.100 and such funds shall be thereafter subject
to RCW 53.36.100. The fair market value of the land and improvements
shall be determined as of the effective date of the port commission
action deleting the land from the industrial development district and
shall be determined by an average of at least two independent
appraisals by professionally designated real estate appraisers as
defined in RCW 74.46.020 or licensed real estate brokers. The funds
shall be deposited into the fund for future use described in RCW
53.36.100 within ninety days of the effective date of the port
commission action deleting the land area from the industrial district.
Land areas deleted from an industrial development district under this
subsection shall not be further subject to the provisions of this
chapter. This subsection shall apply to presently existing and future
industrial development districts. Land areas deleted from an
industrial development district under this subsection that were
included within such district for less than two years, if the port
district acquired the land through condemnation or as a consequence of
threatened condemnation, shall be offered for sale, for cash, at the
appraised price, to the former owner of the property from whom the
district obtained title. Such offer shall be made by certified or
registered letter to the last known address of the former owner. The
letter shall include the appraised price of the property and notice
that the former owner must respond in writing within thirty days or
lose the right to purchase. If this right to purchase is exercised,
the sale shall be closed by midnight of the sixtieth day, including
nonbusiness days, following close of the thirty-day period. This
section is subject to and operates only to the extent its application
is not inconsistent with the operation of section 3 of this act with
respect to property acquired through or under the threat of
condemnation.
Sec. 17 RCW 70.44.300 and 1997 c 332 s 17 are each amended to
read as follows:
(1) The board of commissioners of any public hospital district may
sell and convey at public or private sale real property of the district
if the board determines by resolution that the property is no longer
required for public hospital district purposes or determines by
resolution that the sale of the property will further the purposes of
the public hospital district.
(2) Any sale of district real property authorized pursuant to this
section shall be preceded, not more than one year prior to the date of
sale, by market value appraisals by three licensed real estate brokers
or professionally designated real estate appraisers as defined in RCW
74.46.020 or three independent experts in valuing health care property,
selected by the board of commissioners, and no sale shall take place if
the sale price would be less than ninety percent of the average of such
appraisals.
(3) When the board of commissioners of any public hospital district
proposes a sale of district real property pursuant to this section and
the value of the property exceeds one hundred thousand dollars, the
board shall publish a notice of its intention to sell the property.
The notice shall be published at least once each week during two
consecutive weeks in a legal newspaper of general circulation within
the public hospital district. The notice shall describe the property
to be sold and designate the place where and the day and hour when a
hearing will be held. The board shall hold a public hearing upon the
proposal to dispose of the public hospital district property at the
place and the day and hour fixed in the notice and consider evidence
offered for and against the propriety and advisability of the proposed
sale.
(4) If in the judgment of the board of commissioners of any
district the sale of any district real property not needed for public
hospital district purposes would be facilitated and greater value
realized through use of the services of licensed real estate brokers,
a contract for such services may be negotiated and concluded. The fee
or commissions charged for any broker service shall not exceed seven
percent of the resulting sale price for a single parcel. No licensed
real estate broker or professionally designated real estate appraisers
as defined in RCW 74.46.020 or independent expert in valuing health
care property selected by the board to appraise the market value of a
parcel of property to be sold may be a party to any contract with the
public hospital district to sell such property for a period of three
years after the appraisal.
(5) This section is subject to and operates only to the extent its
application is not inconsistent with the operation of section 3 of this
act with respect to property acquired through or under the threat of
condemnation.
Sec. 18 RCW 79.36.330 and 2004 c 199 s 217 are each amended to
read as follows:
In the event the department should determine that the property
interests acquired under the authority of this chapter are no longer
necessary for the purposes for which they were acquired, the department
shall dispose of the same in the following manner, when in the
discretion of the department it is to the best interests of the state
of Washington to do so, except that property purchased with educational
funds or held in trust for educational purposes shall be sold only in
the same manner as are state lands:
(1) Where the state property necessitating the acquisition of
private property interests for access purposes under authority of this
chapter is sold or exchanged, the acquired property interests may be
sold or exchanged as an appurtenance of the state property when it is
determined by the department that sale or exchange of the state
property and acquired property interests as one parcel is in the best
interests of the state.
(2) If the acquired property interests are not sold or exchanged as
provided in subsection (1) of this section, the department shall notify
the person or persons from whom the property interest was acquired,
stating that the property interests are to be sold, and that the person
or persons shall have the right to purchase the same at the appraised
price. The notice shall be given by registered letter or certified
mail, return receipt requested, mailed to the last known address of the
person or persons. If the address of the person or persons is unknown,
the notice shall be published twice in an official newspaper of general
circulation in the county where the lands or a portion thereof is
located. The second notice shall be published not less than ten nor
more than thirty days after the notice is first published. The person
or persons shall have thirty days after receipt of the registered
letter or five days after the last date of publication, as the case may
be, to notify the department, in writing, of their intent to purchase
the offered property interest. The purchaser shall include with his or
her notice of intention to purchase, cash payment, certified check, or
money order in an amount not less than one-third of the appraised
price. No instrument conveying property interests shall issue from the
department until the full price of the property is received by the
department. All costs of publication required under this section shall
be added to the appraised price and collected by the department upon
sale of the property interests.
(3) If the property interests are not sold or exchanged as provided
in subsections (1) and (2) of this section, the department shall notify
the owners of land abutting the property interests in the same manner
as provided in subsection (2) of this section and their notice of
intent to purchase shall be given in the manner and in accordance with
the same time limits as are set forth in subsection (2) of this
section. However, if more than one abutting owner gives notice of
intent to purchase the property interests, the department shall
apportion them in relation to the lineal footage bordering each side of
the property interests to be sold, and apportion the costs to the
interested purchasers in relation thereto. Further, no sale is
authorized by this section unless the department is satisfied that the
amounts to be received from the several purchasers will equal or exceed
the appraised price of the entire parcel plus any costs of publishing
notices.
(4) If no sale or exchange is consummated as provided in
subsections (1) through (3) of this section, the department shall sell
the properties in the same manner as state lands are sold.
(5) Any disposal of property interests authorized by this chapter
shall be subject to any existing rights previously granted by the
department.
(6) This section is subject to and operates only to the extent its
application is not inconsistent with the operation of section 3 of this
act with respect to property acquired through or under the threat of
condemnation.
Sec. 19 RCW 80.28.230 and 1961 c 14 s 80.28.230 are each amended
to read as follows:
Any property or interest acquired as provided in RCW 80.28.220
shall be used exclusively for the purposes for which it was acquired:
PROVIDED, HOWEVER, That if any such property be sold or otherwise
disposed of by said corporations, such sale or disposition shall be by
public sale or disposition and advertised in the manner of public sales
in the county where such property is located. This section is subject
to and operates only to the extent its application is not inconsistent
with the operation of section 3 of this act with respect to property
acquired through or under the threat of condemnation.
Sec. 20 RCW 80.40.030 and 1963 c 201 s 4 are each amended to read
as follows:
Any natural gas company having received an order under RCW
80.40.040 shall have the right of eminent domain to be exercised in the
manner provided in and subject to the provisions of chapter 8.20 RCW to
acquire for its use for the underground storage of natural gas any
underground reservoir, as well as such other property or interests in
property as may be required to adequately maintain and utilize the
underground reservoir for the underground storage of natural gas,
including easements and rights of way for access to and egress from the
underground storage reservoir. The right of eminent domain granted
hereby shall apply to property or property interests held in private
ownership, provided condemnor has exercised good faith in negotiations
for private sale or lease. No property shall be taken or damaged until
the compensation to be made therefor shall have been ascertained and
paid. Any property or interest therein so acquired by any natural gas
company shall be used exclusively for the purposes for which it was
acquired. Any decree of appropriation hereunder shall define and limit
the rights condemned and shall provide for the reversion of such rights
to the defendant or defendants or their successors in interest upon
abandonment of the underground storage project. Good faith exploration
work or development work relative to the storage reservoir is
conclusive evidence that its use has not been abandoned. The court may
include in such decree such other relevant conditions, covenants and
restrictions as it may deem fair and equitable. This section is
subject to and operates only to the extent its application is not
inconsistent with the operation of section 3 of this act with respect
to property acquired through or under the threat of condemnation.
Sec. 21 RCW 81.112.080 and 1992 c 101 s 8 are each amended to
read as follows:
An authority shall have the following powers in addition to the
general powers granted by this chapter:
(1) To carry out the planning processes set forth in RCW
81.104.100;
(2) To acquire by purchase, condemnation, gift, or grant and to
lease, construct, add to, improve, replace, repair, maintain, operate,
and regulate the use of high capacity transportation facilities and
properties within authority boundaries including surface, underground,
or overhead railways, tramways, busways, buses, bus sets, entrained and
linked buses, ferries, or other means of local transportation except
taxis, and including escalators, moving sidewalks, personal rapid
transit systems or other people-moving systems, passenger terminal and
parking facilities and properties, and such other facilities and
properties as may be necessary for passenger, vehicular, and vessel
access to and from such people-moving systems, terminal and parking
facilities and properties, together with all lands, rights of way,
property, equipment, and accessories necessary for such high capacity
transportation systems. When developing specifications for high
capacity transportation system operating equipment, an authority shall
take into account efforts to establish or sustain a domestic
manufacturing capacity for such equipment. The right of eminent domain
shall be exercised by an authority in the same manner and by the same
procedure as or may be provided by law for cities of the first class,
except insofar as such laws may be inconsistent with the provisions of
this chapter. Public transportation facilities and properties which
are owned by any city, county, county transportation authority, public
transportation benefit area, or metropolitan municipal corporation may
be acquired or used by an authority only with the consent of the agency
owning such facilities. Such agencies are hereby authorized to convey
or lease such facilities to an authority or to contract for their joint
use on such terms as may be fixed by agreement between the agency and
the authority.
The facilities and properties of an authority whose vehicles will
operate primarily within the rights of way of public streets, roads, or
highways, may be acquired, developed, and operated without the corridor
and design hearings that are required by RCW 35.58.273 for mass transit
facilities operating on a separate right of way;
(3) To dispose of any real or personal property acquired in
connection with any authority function and that is no longer required
for the purposes of the authority, in the same manner as provided for
cities of the first class. When an authority determines that a
facility or any part thereof that has been acquired from any public
agency without compensation is no longer required for authority
purposes, but is required by the agency from which it was acquired, the
authority shall by resolution transfer it to such agency. This
subsection is subject to and operates only to the extent its
application is not inconsistent with the operation of section 3 of this
act with respect to property acquired through or under the threat of
condemnation;
(4) To fix rates, tolls, fares, and charges for the use of such
facilities and to establish various routes and classes of service.
Fares or charges may be adjusted or eliminated for any distinguishable
class of users.
NEW SECTION. Sec. 22 A new section is added to chapter 8.04 RCW
to read as follows:
(1) No public entity that is subject to this chapter or that
derives authority from this chapter may take private property solely
for the purpose of:
(a) Increasing tax revenues or the tax base;
(b) Increasing employment; or
(c) Transferring the private property to another private person or
entity.
(2)(a) This section does not apply to the use of eminent domain by
a county, city, or town, under chapter 35.80A RCW, or under chapter
35.81 RCW, the community renewal law.
(b) This section does not apply to port districts, or to public
service companies as defined in RCW 80.04.010, or to common carriers as
defined in RCW 81.04.010, and does not by implication increase,
decrease, or alter the powers of eminent domain of those districts,
public service companies, or common carriers.
NEW SECTION. Sec. 23 A new section is added to chapter 8.08 RCW
to read as follows:
(1) No public entity that is subject to this chapter or that
derives authority from this chapter may take private property solely
for the purpose of:
(a) Increasing tax revenues or the tax base;
(b) Increasing employment; or
(c) Transferring the private property to another private person or
entity.
(2)(a) This section does not apply to the use of eminent domain by
a county, city, or town, under chapter 35.80A RCW, or under chapter
35.81 RCW, the community renewal law.
(b) This section does not apply to port districts, or to public
service companies as defined in RCW 80.04.010, or to common carriers as
defined in RCW 81.04.010, and does not by implication increase,
decrease, or alter the powers of eminent domain of those districts,
public service companies, or common carriers.
NEW SECTION. Sec. 24 A new section is added to chapter 8.12 RCW
to read as follows:
(1) No public entity that is subject to this chapter or that
derives authority from this chapter may take private property solely
for the purpose of:
(a) Increasing tax revenues or the tax base;
(b) Increasing employment; or
(c) Transferring the private property to another private person or
entity.
(2)(a) This section does not apply to the use of eminent domain by
a county, city, or town, under chapter 35.80A RCW, or under chapter
35.81 RCW, the community renewal law.
(b) This section does not apply to port districts, or to public
service companies as defined in RCW 80.04.010, or to common carriers as
defined in RCW 81.04.010, and does not by implication increase,
decrease, or alter the powers of eminent domain of those districts,
public service companies, or common carriers.
NEW SECTION. Sec. 25 A new section is added to chapter 8.16 RCW
to read as follows:
(1) No public entity that is subject to this chapter or that
derives authority from this chapter may take private property solely
for the purpose of:
(a) Increasing tax revenues or the tax base;
(b) Increasing employment; or
(c) Transferring the private property to another private person or
entity.
(2)(a) This section does not apply to the use of eminent domain by
a county, city, or town, under chapter 35.80A RCW, or under chapter
35.81 RCW, the community renewal law.
(b) This section does not apply to port districts, or to public
service companies as defined in RCW 80.04.010, or to common carriers as
defined in RCW 81.04.010, and does not by implication increase,
decrease, or alter the powers of eminent domain of those districts,
public service companies, or common carriers.
NEW SECTION. Sec. 26 A new section is added to chapter 8.20 RCW
to read as follows:
(1) No public entity that is subject to this chapter or that
derives authority from this chapter may take private property solely
for the purpose of:
(a) Increasing tax revenues or the tax base;
(b) Increasing employment; or
(c) Transferring the private property to another private person or
entity.
(2)(a) This section does not apply to the use of eminent domain by
a county, city, or town, under chapter 35.80A RCW, or under chapter
35.81 RCW, the community renewal law.
(b) This section does not apply to port districts, or to public
service companies as defined in RCW 80.04.010, or to common carriers as
defined in RCW 81.04.010, and does not by implication increase,
decrease, or alter the powers of eminent domain of those districts,
public service companies, or common carriers.
NEW SECTION. Sec. 27 A new section is added to chapter 8.25 RCW
to read as follows:
(1) No public entity may take private property solely for the
purpose of:
(a) Increasing tax revenues or the tax base;
(b) Increasing employment; or
(c) Transferring the private property to another private person or
entity.
(2)(a) This section does not apply to the use of eminent domain by
a county, city, or town, under chapter 35.80A RCW, or under chapter
35.81 RCW, the community renewal law.
(b) This section does not apply to port districts, or to public
service companies as defined in RCW 80.04.010, or to common carriers as
defined in RCW 81.04.010, and does not by implication increase,
decrease, or alter the powers of eminent domain of those districts,
public service companies, or common carriers.
NEW SECTION. Sec. 28 This act applies to condemnation
proceedings commenced on or after the effective date of this act."
2ESHB 2016 -
By Committee on Judiciary
On page 1, line 1 of the title, after "domain;" strike the remainder of the title and insert "amending RCW 8.25.020, 28A.335.120, 35.58.340, 35.80A.030, 35.94.040, 36.68.010, 43.43.115, 43.82.010, 47.12.063, 47.12.283, 47.52.050, 53.08.090, 53.25.040, 70.44.300, 79.36.330, 80.28.230, 80.40.030, and 81.112.080; adding new sections to chapter 8.25 RCW; adding a new section to chapter 39.33 RCW; adding a new section to chapter 8.04 RCW; adding a new section to chapter 8.08 RCW; adding a new section to chapter 8.12 RCW; adding a new section to chapter 8.16 RCW; adding a new section to chapter 8.20 RCW; and creating a new section."