SB 243 — An Act amending the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, in disposition of Commonwealth surplus land, further providing for limited definitions, for annual property survey, for property disposition and for conditions upon conveyances; and making an editorial change.

PRINTER'S NO.   196

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 243
                                               Session of
                                                 2025

     INTRODUCED BY COLEMAN, ROTHMAN AND STEFANO, FEBRUARY 13, 2025

     REFERRED TO STATE GOVERNMENT, FEBRUARY 13, 2025


                                    AN ACT
 1   Amending the act of April 9, 1929 (P.L.177, No.175), entitled
 2      "An act providing for and reorganizing the conduct of the
 3      executive and administrative work of the Commonwealth by the
 4      Executive Department thereof and the administrative
 5      departments, boards, commissions, and officers thereof,
 6      including the boards of trustees of State Normal Schools, or
 7      Teachers Colleges; abolishing, creating, reorganizing or
 8      authorizing the reorganization of certain administrative
 9      departments, boards, and commissions; defining the powers and
10      duties of the Governor and other executive and administrative
11      officers, and of the several administrative departments,
12      boards, commissions, and officers; fixing the salaries of the
13      Governor, Lieutenant Governor, and certain other executive
14      and administrative officers; providing for the appointment of
15      certain administrative officers, and of all deputies and
16      other assistants and employes in certain departments, boards,
17      and commissions; providing for judicial administration; and
18      prescribing the manner in which the number and compensation
19      of the deputies and all other assistants and employes of
20      certain departments, boards and commissions shall be
21      determined," in disposition of Commonwealth surplus land,
22      further providing for limited definitions, for annual
23      property survey, for property disposition and for conditions
24      upon conveyances; and making an editorial change.
25      The General Assembly of the Commonwealth of Pennsylvania
26   hereby enacts as follows:
27      Section 1.    Article XXIV-A heading of the act of April 9,
28   1929 (P.L.177, No.175), known as The Administrative Code of
29   1929, is amended to read:
 1                               ARTICLE XXIV-A
 2               DISPOSITION OF COMMONWEALTH [SURPLUS] LAND
 3      Section 2.   The definition of "surplus property" in section
 4   2401-A of the act is amended to read:
 5      Section 2401-A.     Limited Definitions.--The following words
 6   and phrases when used in this article shall have, unless the
 7   context clearly indicates otherwise, the meanings given to them
 8   in this section:
 9      * * *
10      "Surplus property."    Any buildings, land or other real estate
11   owned by the Commonwealth that under section 2402-A(a) has been
12   deemed surplus to the needs of the administering agency which
13   has current use of the property. The definition of and the
14   designation of surplus property shall not apply to any lands
15   designated as State parks or State forests or any lands acquired
16   by the Pennsylvania Fish and Boat Commission or the Pennsylvania
17   Game Commission.
18      Section 3.   Sections 2402-A(c), 2403-A and 2405-A of the act
19   are amended to read:
20      Section 2402-A.     Annual Property Survey.--* * *
21      (c)   For all [real property identified as surplus by an
22   agency] surplus property, the department shall determine whether
23   any other agencies have an appropriate use for the property. If
24   it is desirable and appropriate to transfer surplus property to
25   another agency [property that has been deemed surplus by the
26   administering agency currently using the property], the
27   department shall prepare a plan for transfer of the surplus
28   property. Upon approval of the transfer plan by the General
29   Counsel and the Secretary of Budget and Administration, use of
30   the surplus property shall be transferred to the agency that can

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 1   make the best use of the surplus property.
 2      Section 2403-A.   Surplus Property Disposition [Plan.--] Plan;
 3   and Commonwealth Land Disposition.--(a)   The department shall
 4   annually develop a plan for the orderly disposition of all [real
 5   property deemed surplus by the agency currently in possession of
 6   the property, which property is not suitable for use by another
 7   agency] surplus property.
 8      (b)   The plan shall consider the following factors in
 9   proposing the manner and schedule for property disposition:
10      (1)   Whether the property should be leased, transferred in
11   fee simple, or transferred with a restriction as to use, right
12   of reversion, or other special deed provisions.
13      (2)   Whether the land should be retained in agricultural use
14   or as open space for recreation or conservation. A determination
15   whether land should be preserved as open space or in
16   agricultural use shall be made in consultation with the
17   Department of Agriculture, the Department of Conservation and
18   Natural Resources, the Department of Environmental [Resources]
19   Protection and the Department of Community [Affairs] and
20   Economic Development.
21      (3)   Likely cost savings and expenses to the Commonwealth
22   arising from the proposed property disposition.
23      (4)   The needs of local governments, charitable institutions,
24   and local volunteer fire and rescue squads.
25      (5)   The likely revenue to be generated by the sale of the
26   property and the needs of the Commonwealth for those revenues.
27      (c)   The plan for the disposition of surplus property shall,
28   for each parcel, identify the proposed manner of disposition,
29   when the property will be disposed of, likely revenues and
30   costs, the assessed market value of the property, and the

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 1   Commonwealth's acquisition cost for the property.
 2      (d)   Any Commonwealth lands acquired by condemnation which is
 3   later determined to be surplus land shall be disposed pursuant
 4   to and consistent with the provisions of section 2003(e) and the
 5   provisions of the act of June 22, 1964 (Sp.Sess., P.L.84, No.6),
 6   known as the "Eminent Domain Code."
 7      (e)   The department may only sell Commonwealth lands, other
 8   than surplus property, upon an act of the General Assembly and
 9   in accordance with the conditions specified in section 2405-
10   A(b).
11      Section 2405-A.   Conditions Upon Conveyances.--(a)   Any
12   proposed disposition of surplus property shall be subject to the
13   following conditions and limitations:
14      (1)   The department may sell real estate only to [an
15   individual, an organization, a firm or corporation,] a political
16   subdivision of the Commonwealth, or to the Government of the
17   United States or a branch or agency thereof.
18      (2)   Following approval of the property disposition plan,
19   information regarding the availability and sale of each parcel
20   of surplus property shall be provided through the publication of
21   legal notice in the Pennsylvania Bulletin and such State
22   newspapers as the department shall direct.
23      (3)   The remuneration for a conveyance of surplus property
24   shall be based on fair consideration. Fair consideration
25   requires either the payment of the current fair market value of
26   the property or the demonstration of equivalent or greater
27   return to the Commonwealth within five years due to the proposed
28   use of the property by the entity receiving the conveyance.
29      (4)   After appropriate public notice, the sale of declared
30   surplus property by the department shall be open to public

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 1   review and inspection. Acceptance of an offer shall be subject
 2   to a minimum price requirement as established by the department,
 3   which shall not be less than the fair market value. Declared
 4   surplus property shall be sold by the department through either
 5   a competitive sealed bidding process in which prospective buyers
 6   submit sealed offers through the mail or at an auction conducted
 7   by an auctioneer holding a license under the provisions of the
 8   act of December 22, 1983 (P.L.327, No.85), known as the
 9   "Auctioneer and Auction Licensing Act." The use of either method
10   of sale shall be at the department's discretion. Except as
11   provided in clause (3), sale of the declared surplus property
12   shall be to the highest bidder, provided that no offer may be
13   accepted which is below the fair market value, established
14   through independent appraisal.
15      (5)   The disposition of surplus property shall be made upon
16   such terms and conditions of sale as the department may
17   prescribe. The sale of such real estate may be in the form of a
18   lump sum purchase, installment purchase or lease purchase and
19   may include use restrictions and reverter clauses. The term and
20   conditions of sale and the form of purchase shall reflect
21   current market conditions, shall afford maximum protection of
22   Commonwealth assets and shall prescribe procedures to be
23   utilized in the event of default. In the case of the sale of
24   authority properties, the sale of such property shall be in
25   accordance to the applicable bond indentures.
26      (6)   The deed of conveyance shall expressly reserve all oil,
27   gas and mineral rights to the Commonwealth.
28      (b)   Any proposed disposition of real property of the
29   Commonwealth, other than surplus property, shall be subject to
30   the following conditions and limitations:

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 1      (1)   The department may sell real estate only to a political
 2   subdivision of the Commonwealth, or to the Government of the
 3   United States or a branch or agency thereof.
 4      (2)   Following enactment of an act of the General Assembly
 5   authorizing the conveyance of the real property, the department
 6   shall transmit information regarding the availability and sale
 7   of each parcel to the Legislative Reference Bureau for
 8   publication in the next available issue of the Pennsylvania
 9   Bulletin and may publish the information in State newspapers.
10      (3)   The remuneration for a conveyance of surplus property
11   shall be based on fair consideration. Fair consideration
12   requires either the payment of the current fair market value of
13   the property or the demonstration of equivalent or greater
14   return to the Commonwealth within five years due to the proposed
15   use of the property by the entity receiving the conveyance.
16      (4)   After appropriate public notice, the sale of the real
17   property by the department shall be open to public review and
18   inspection. Acceptance of an offer shall be subject to a minimum
19   price requirement as established by the department, which shall
20   not be less than the fair market value. The real property shall
21   be sold by the department through either a competitive sealed
22   bidding process in which prospective buyers submit sealed offers
23   through the mail or at an auction conducted by an auctioneer
24   holding a license under the provisions of the "Auctioneer and
25   Auction Licensing Act." The use of either method of sale shall
26   be at the department's discretion. Except as provided in clause
27   (3), sale of the real property shall be to the highest bidder,
28   provided that no offer may be accepted which is below the fair
29   market value, established through independent appraisal.
30      (5)   The disposition of the real property shall be made upon

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 1   such terms and conditions of sale as the department may
 2   prescribe. The sale of the real property may be in the form of a
 3   lump sum purchase, installment purchase or lease purchase and
 4   may include use restrictions and reverter clauses. The term and
 5   conditions of sale and the form of purchase shall reflect
 6   current market conditions, shall afford maximum protection of
 7   Commonwealth assets and shall prescribe procedures to be
 8   utilized in the event of default. In the case of the sale of
 9   authority real property, the sale shall be in accordance to the
10   applicable bond indentures.
11      (6)   The deed of conveyance shall expressly reserve all oil,
12   gas and mineral rights to the Commonwealth.
13      Section 4.   This act shall take effect in 60 days.




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