2017 Regular Session ENROLLED SENATE BILL NO. 164 BY SENATOR PEACOCK Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. 1 AN ACT 2 To amend and reenact R.S. 17:87.6(A) and R.S. 41:891 and 892(A) and (F), and to enact 3 R.S. 41:892(G), relative to school lands; to provide for the sale of certain school 4 lands by school boards; to provide for the sale by a licensed real estate broker; to 5 provide for the appraisement of school lands; to provide procedures, terms, 6 conditions, and requirements of the sale; and to provide for related matters. 7 Be it enacted by the Legislature of Louisiana: 8 Section 1. R.S. 17:87.6(A) is hereby amended and reenacted to read as follows: 9 §87.6. School property; alienation by school boards 10 A. Any city, parish, or other local public school board may sell, lease or 11 otherwise dispose of, at public or private sale, for cash or on terms of credit, any 12 school site, building, facility, or personal property which is not used and, in the 13 judgment of the school board, is not needed in the operation of any school or schools 14 within its jurisdiction. Any such sale, lease, or disposal of such school property shall 15 be on such terms and conditions and for such consideration as the school board shall 16 prescribe. Any sale shall be in accordance with the provisions of R.S. 41:891 and 17 892. 18 * * * 19 Section 2. R.S. 41:891 and 892(A) and (F) are hereby amended and reenacted and 20 R.S. 41:892(G) is hereby enacted to read as follows: 21 §891. Sale of unused school lands 22 Whenever the school board of any parish or city determines that any school 23 lands or other immovable property under its control are no longer needed for school 24 purposes and that the best interest of the public school system would be served by 25 the sale of such lands, the school board shall have authority to dispose of such lands ACT No. 249 Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 164 ENROLLED 1 at public auction or, under sealed bids, by licensed real estate broker in accordance 2 with the procedure set forth in this subpart Subpart; provided that this subpart 3 Subpart shall not apply to the sale of sixteenth section lands, school indemnity 4 lands, or any other school lands for the sale of which the law already has provided 5 a procedure in Chapter 6 of Title 41 of the Louisiana Revised Statutes or elsewhere 6 in the law. 7 §892. Procedure; deed of sale 8 A. Whenever a sale of property described in R.S. 41:891 is ordered by the 9 school board, the sale shall be made by the president of the school board in person, 10 or through an auctioneer designated by the school board, or through a licensed real 11 estate broker. The school board may obtain appraisals from up to three 12 Louisiana state-certified appraisers to ascertain the current value of the 13 property. The appraisals shall be obtained within six months prior to the 14 conducting of the sale. 15 * * * 16 F.(1) In lieu of public auction or sealed bids, and when it is in the best 17 interest of the school board, the school board may contract under policies 18 adopted by the school board for the services of a licensed real estate broker to 19 conduct the sale of the property. Such policies shall include the qualifications 20 for a licensed real estate broker and appraiser. 21 (2) The term of the contract shall not exceed six months. A minimum 22 sale price and a time period within which the sale is to occur shall be specified 23 by the school board as conditions of the contract. Payment shall not exceed five 24 percent of the sale price and shall be contingent upon completion of the sale in 25 accordance with the terms and conditions of the contract. The school board 26 shall have the right to cancel the contract at any time for any reason prior to the 27 sale and conduct the sale as otherwise provided by law. 28 (3) No member or immediate family, as defined in R.S. 42:1102, of the 29 school board or legislature shall perform the services of appraiser or real estate 30 broker authorized by this Section. Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 164 ENROLLED 1 G. The deed of the president of the school board shall be full and complete 2 evidence of the sale, shall convey a good and valid title to the property sold, and 3 shall have the force and effect of a notarial act. PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.