H. B. 4582
(By Delegates Wakim, G. White, Boggs and Butcher)
[Introduced February 15, 2006; referred to the
Committee on Government Organization.]
A BILL to amend and reenact §17-2A-19 of the Code of West Virginia,
1931, as amended, relating to leasing of property held by the
Division of Highways; allowing the Commissioner of the
Division of Highways to lease certain property owned by the
division to organizations qualified under Section 501(c)(3) of
the Internal Revenue Code of 1986, as amended, which owns
property abutting or which is in close proximity to the
property to be leased, for less than the fair market value.
Be it enacted by the Legislature of West Virginia:
That §17-2A-19 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 2A. WEST VIRGINIA COMMISSIONER OF HIGHWAYS.
§17-2A-19. Sale, exchange, or lease of real property.
(a) The Division of Highways, subject to the provisions of
this section, may sell, exchange or lease real property, or any interest or right in the property, held by the Division of
Highways. When the real property, or any interest or right in the
property, is being held for future road purposes, it may be leased.
(b) This subsection applies to property held by the division,
including a right-of-way, that was not acquired for use, or used,
as a highway. When the real property, or any part of the property,
or any interest or right in the property, is considered by the
commissioner not necessary, or desirable for present or presently
foreseeable future Division of Highways purposes, it may be
exchanged for other real property, or any interest or right in the
property, considered by the commissioner to be necessary or
desirable for present or presently foreseeable future Division of
Highways purposes, or it may be sold. In addition the division may
exchange real property, or any part of the property, or any
interest or right in the property, even though it may be necessary
or desirable for present or presently foreseeable future Division
of Highways purposes, if the exchange is made for other real
property, or any interest or right in the property, in close
proximity to the property which the commissioner considers of equal
or superior useful value for present or presently foreseeable
future Division of Highways purposes. In making exchanges the
division may make allowances for differences in the value of the
properties being exchanged and may move or pay the cost of moving
buildings, structures or appurtenances in connection with the exchange.
Every sale of real property, or any interest or right in the
property or structure on the property, shall be at public auction
in the county in which the real property, or the greater part of
the property, is located, and the division shall advertise, by
publication or otherwise, the time, place, and terms of the sale at
least twenty days prior to the sale. The property shall be sold in
the manner which will bring the highest and best price. The
division may reject any or all bids received at the sale. The
commissioner shall keep a record, open to public inspection,
indicating the manner in which the real property, or any interest
or right in the property or structure on the property, was publicly
advertised for sale, the highest bid received and from whom, the
person to whom sold, and payment received. The record shall be
kept for a period of five years and may be destroyed after five
years.
(c)(1) This subsection applies to property held by the
division, including a right-of-way, that was acquired for use, or
used, as a highway. The commissioner may transfer, sell or
otherwise dispose of any right-of-way properties or any interest or
right in the property, owned by or to be acquired by the Division
of Highways which the commissioner in his or her sole discretion
determines are not necessary or desirable for present or presently
foreseeable future highway purpose by first offering the property to the principal abutting landowners without following the
procedure for public auction provided in subsection (b) of this
section.
(2) The commissioner shall propose rules for legislative
approval in accordance with the provisions of article three,
chapter twenty-nine-a of this code governing and controlling the
making of any leases or sales pursuant to the provisions of this
subsection. The rules may provide for the giving of preferential
treatment in making leases to the persons from whom the properties
or rights or interests in the property were acquired, or their
heirs or assigns and shall also provide for granting a right of
first refusal to abutting landowners at fair market value in the
sale of any real estate or any interest or right in the property,
owned by the Division of Highways.
(3)(A) With respect to real property acquired subsequent to
the year one thousand nine hundred seventy-three for use as a
highway through voluntary real estate acquisition or exercise of
the right of eminent domain, which real estate the commissioner has
determined should be sold as not necessary for highways purposes,
the commissioner shall give preferential treatment to an abutting
landowner if it appears that:
(i) A principal abutting landowner is an individual from whom
the real estate was acquired or his or her surviving spouse or
descendant. In order to qualify for preferential treatment, the surviving spouse or descendant need not be a beneficiary of the
individual. The terms used in this subdivision are as defined in
section one, article one, chapter forty-two of this code; and
(ii) The primary use of the abutting property has not
substantially changed since the time of the acquisition.
(B) When the provisions of paragraph (A) of this subdivision
are met, the commissioner shall offer the property for sale to the
principal abutting landowner at a cost equal to the amount paid by
the Division of Highways in acquiring the real estate. If
improvements on the property have been removed since the time of
the acquisition, the cost shall be reduced by an amount
attributable to the value of the improvements removed. The cost
may be adjusted to reflect interest at a rate equal to the increase
in the consumer price index for all urban consumers as reported by
the United States Department of Labor since the time of
disbursement of the funds.
(d) The commissioner may insert in any deed or conveyance,
whether it involves an exchange, lease or sale, the conditions as
are in the public interest and have been approved in advance by the
Governor.
(e) All moneys received from the exchange, sale, or lease of
real property, or any right or interest in the property, shall be
paid into the State Treasury and credited to the State Road Fund.
(f) Notwithstanding the provisions of this section, property may not be transferred, sold or otherwise disposed of unless the
commissioner finds that the right-of-way or other property has no
significant value to the state as a hiking trail and does not serve
as a link between two or more state-owned properties. This
subsection does not apply to property that lies within six hundred
feet of any dwelling house.
(g) Notwithstanding any provision of this section to the
contrary, the commissioner may lease property owned by the Division
of Highways which the commissioner, in his or her discretion,
determines is presently not necessary or desirable for Division of
Highways purposes, to an organization qualified under Section
501(c)(3) of the Internal Revenue code of 1986, as amended, which
owns property abutting or which is in close proximity to the
property to be leased, for nominal consideration or for a
consideration of less than the fair market value of the property.
NOTE: The purpose of this bill is to allow the Commissioner of
the Division of Highways to lease certain property owned by the
division to organizations qualified under Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended, which owns property
abutting or which is in close proximity to the property to be
leased, for less than the fair market value.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.