HLS 10RS-815 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 729
BY REPRESENTATIVE CARMODY
PUBLIC BUILDINGS/GROUNDS: Provides with respect to the sale of surplus property
by school boards
AN ACT1
To amend and reenact R.S. 41:892(C), (D), and (E) and to enact R.S. 41:892(F), relative to2
surplus property of school boards; to provide relative to the minimum bid which may3
be accepted when a school board attempts to sell such property; and to provide for4
related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 41:892(C), (D), and (E) are hereby amended and reenacted and R.S.7
41:892(F) is hereby enacted to read as follows:8
ยง892. Procedure; deed of sale9
* * *10
C. On the day named in the advertisement, the property shall be sold at11
public auction at the school board office, between the hours of eleven o'clock A.M.12
a.m. and four o'clock P.M. p.m., with appraisement, to the last and highest bidder,13
upon such terms and conditions as the school board shall determine. The deeds shall14
contain the usual security clauses and a stipulation to pay ten per cent attorney's fees15
in the event it becomes necessary to secure the services of an attorney for the16
purpose of collection. In the event If the highest bid received is not equal to or17
greater than the appraisement of the property minimum bid as provided in Subsection18
E of this Section, the sale shall be cancelled and no bid shall be accepted.19 HLS 10RS-815 ORIGINAL
HB NO. 729
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D. On the date named in the advertisement if the property is to be sold under1
sealed bids, the bids shall be opened in the offices of the school board at the hour2
designated in the advertisement. The property shall be sold to the highest bidder3
upon such terms and conditions as the school board shall determine. The deed shall4
contain the usual security clauses and a stipulation to pay ten per cent percent5
attorney's attorney fees in the event it becomes necessary to secure the services of6
an attorney for the purpose of collection. The school board shall reserve the right to7
reject any and all bids, and all bids shall be rejected in the event if the highest bid8
received is not equal to or greater than the appraised value of the property to be sold9
minimum bid as provided in Subsection E of this Section.10
E.(1) The first time a school board offers a particular property for sale11
pursuant to this Section, the minimum bid shall be eighty-five percent of the12
appraised value of the property.13
(2) If the school board fails to sell the property because the maximum bid14
received was not equal to or greater than the minimum bid established in Paragraph15
(1) of this Subsection, the school board may make a second effort to sell the property16
following the procedures outlined in this Section. The minimum bid for a second17
effort to sell the same property shall be eighty percent of the appraised value.18
(3) If the school board has twice failed to sell property because the maximum19
bid received was not equal to or greater than the minimum bid otherwise provided20
in this Subsection, there shall be no minimum bid at the third effort to sell the21
property, and the school board may sell the property to the highest bidder as22
otherwise provided by this Section.23
F. The deed of the president of the school board shall be full and complete24
evidence of the sale, shall convey a good and valid title to the property sold , and25
shall have the force and effect of a notarial act.26
Section 2. This Act shall be applied prospectively only. No sale attempted prior to27
the effective date of this Act or for which notice as required by R.S. 41:892(B) has been28 HLS 10RS-815 ORIGINAL
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given at least once prior to the effective date of this Act constitutes an effort to sell as1
contemplated by R.S. 41:892(E) as amended by this Act.2
Section 3. This Act shall become effective upon signature by the governor or, if not3
signed by the governor, upon expiration of the time for bills to become law without signature4
by the governor, as provided in Article III, Section 18 of the Constitution of Louisiana. If5
vetoed by the governor and subsequently approved by the legislature, this Act shall become6
effective on the day following such approval.7
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Carmody HB No. 729
Abstract: Provides relative to the minimum bid when a school board is selling surplus
property as follows: 85% of appraised value at 1st attempt to sell, 80% of appraised
value at second attempt to sell, and no minimum bid at third attempt. Present law
provides that appraised value is the minimum for which property may be sold.
Present law authorizes a local school board to sell immovable property no longer needed for
school purposes at public auction or under sealed bids. Prior to such sale, the school board
is required to advertise the sale. Present law specifies procedures for such advertising.
Provides procedures for both public auction and sale under sealed bid. Proposed law retains
present law.
Present law provides that the minimum bid for a sale by either procedure is the appraised
value of the property; prohibits sale for less than the appraised value.
Proposed law provides relative to the minimum bid at such sales. Provides that at the first
effort to sell, the minimum bid is 85% of the appraised value. If the school board receives
no bids that are equal to or greater than the minimum bid, it may attempt to sell the property
again, and the minimum bid at such second sale is 80% of the appraised value. If the
property again fails to sell, there is no minimum bid at the third attempt to sell.
Proposed law provides that it is prospective only and that any attempt to sell that was begun
prior to the effective date of proposed law is not considered an attempt to sell under
proposed law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 41:892(C), (D), and (E); Adds R.S. 41:892(F))