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Committee advances bill easing appraisal rules for small DOT surplus parcels

TRANSPORTATION, TECHNOLOGY & LEGISLATIVE AFFAIRS - SENATE · March 23, 2021
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Summary

Senate Bill 579 was advanced after sponsor Bob Ballinger described changing the three‑appraisal requirement that can make small surplus highway parcels impractical to sell; the bill reduces appraisal burdens based on a $50,000 threshold and adds an in‑house appraisal.

Senate Bill 579, introduced in the Senate Transportation Committee, would change how the Department of Transportation values and disposes of surplus highway property by adjusting appraisal requirements for small parcels.

Senator Bob Ballinger (District 5) told the committee the bill grew from his personal experience attempting to buy a small, surplus DOT parcel. He said the statutory or administrative requirement for three independent appraisals made small transactions economically infeasible when appraisal fees run into the thousands for properties with low market value. "The requirement for the 3 appraisals, it really was in an effort to try to clear up the process," Ballinger said, adding that for small parcels the cost of appraisals could exceed the value of the land.

Under the changes described in committee, if the Department values a surplus parcel at more than $50,000, two outside appraisals plus the department's in‑house appraisal would be used; if the department values the parcel under $50,000, only one appraisal would be required. Ballinger said the department already has an in‑house appraiser and that the bill aims to reduce transactional barriers for small sales. Director Laurie Tudor said the modification "is gonna make it a lot easy for us to dispose of surplus property at the department." Senator Stearches cited a similar constituency case.

Senator Chesterfield moved to advance SB 579; Senator Tucker seconded. The committee conducted a voice vote and advanced the measure. The chair then announced the committee would pass over autonomous vehicles until the next meeting and adjourned.