OLR Bill Analysis

SB 336

AN ACT AMENDING THE PROCESS FOR THE SALE OF LAND OBTAINED BY THE STATE FOR HIGHWAY PURPOSES INCLUDING THE PROPERTY BY THOSE ABUTTING ROUTE 6.

SUMMARY:

This bill alters the process for disposing of surplus state property obtained for or in connection with highways to allow original property owners to repurchase it from the Department of Transportation (DOT) at a price that may be below its appraised value.

By law, DOT must get surplus property appraised before it is sold, except when the property is a single family residence that is being sold to the municipality within which it is located. The bill eliminates a requirement for DOT to get a second appraisal before it disposes of surplus property valued at over $ 100,000 outside of a public bid or auction.

EFFECTIVE DATE: October 1, 2009

PROCESS FOR DISPOSING OF SURPLUS PROPERTY

Under current law, if DOT (1) purchases land containing a single family residence for highway purposes and (2) decides within 25 years of the date of acquisition that the property is no longer needed, it must offer the previous property owners the option to buy it back, without negotiations, at its current appraised value before selling or transferring it. DOT must withdraw any offer that is not accepted within 60 days of the date it is mailed.

The bill requires DOT to include in the offer of first refusal the right to negotiate the purchase price of the property. The previous property owners can negotiate to repurchase the property for a price at or below its appraised value. Like the offer to purchase, the offer to negotiate terminates unless the previous owners accept it within 60 days after it was mailed.

If the property owners notify DOT of their decision to accept the offer to negotiate within the 60 days, DOT must immediately start negotiations and conclude them 120 days later. If the previous owners do not accept the offer to negotiate or negotiations break down, the department must offer property that meets local residential or commercial zoning requirements to other state agencies. It must offer property that does not meet these requirements to abutting property owners.

By law, unchanged by the bill, if DOT makes a good faith effort to determine the identity of the last owner and mails notice to the last known address of the owner it can identify, the failure to actually notify the people entitled to notice does not invalidate any subsequent disposition of the property.

COMMITTEE ACTION

Government Administration and Elections Committee

Joint Favorable