SENATE BILL REPORT

ESHB 2722

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of February 21, 2012

Title: An act relating to surplus property.

Brief Description: Concerning surplus property.

Sponsors: House Committee on Capital Budget (originally sponsored by Representatives Parker, Dunshee, Warnick, Zeiger, Angel and Santos).

Brief History: Passed House: 2/13/12, 98-0.

Committee Activity: Ways & Means: 2/20/12.

SENATE COMMITTEE ON WAYS & MEANS

Staff: Jenny Greenlee (786-7711)

Background: Department of Enterprise Services. The Department of Enterprise Services (DES) is authorized to sell property that belongs to the state if the agency having custody of the property no longer needs it. State agencies have first right of refusal and then other public entities before property is made available for sale to the general public. The proceeds of the sale of the property is deposited into the fund from which the property was originally purchased, or the state General Fund if the original fund no longer exists.

DES must maintain a record of any surplus property disposed of including the date of sale, method of disposal, identity of recipient, and approximate value.

Summary of Bill: DES must report every two years to the Legislature a list of surplus property including the listing price, the date it was listed, and sale price if it was sold. DES must report to the Legislature and the Office of Financial Management any property to be actively listed for sale at least nine months prior to listing the property.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: CON: The community and technical colleges should be exempted from the requirement to report property that will be sold nine months in advance. The community and technical colleges have authority in statute to surplus their own property but they use DES's real estate services to save money. If they are subject to this requirement it will impede the colleges' ability to use their property in a flexible manner and react to changing enrollment.

OTHER: Clover Park Technical College is working collaboratively with the local school district to create a joint campus that will serve kindergarten through college. This innovative approach has required months of negotiations and involves the sale of property from Clover Park to the school district. That sale is being presented to the school board in March. This bill would create a six-month delay in that sale, which will prevent this collaboration from moving forward. Please exempt community and technical colleges from this requirement.

Persons Testifying: CON: Wayne Doty, State Board for Community and Technical Colleges.

OTHER: John Walstrum, Clover Park Technical College.