Committee approves bill to let local governments flag unused state land for reuse

FRANKFORT, Ky. — The House State Government Committee adopted a committee substitute and voted to report House Bill 467 favorably after Representative D.J. Johnson said the measure would let local governments and private citizens raise interest in underutilized state property earlier in the disposal process.

Johnson, the sponsor, told the committee the bill "creates a transparent process allowing local governments upfront ... to notify the state of an interest in a [land] or underutilized state owned property encouraging productive reuse and collaboration between the state and local entities." He emphasized the bill applies to real property and not to items such as furniture.

Questions from members focused on scope and process. Johnson said existing disposition processes remain in place — agencies still identify property and Finance and Administration coordinates disposition and offers right of first refusal to local governments — but the bill puts locals and private citizens "at the front end of the process" so properties are less likely to sit dormant.

Representative Williams described a local example where a 200-plus acre parcel under the Transportation Cabinet was treated as "junk," delaying a private investment for about eight months and causing the county to lose an economic development opportunity.

The committee adopted the committee substitute and voted to report House Bill 467 favorably by roll call; the clerk recorded 17 yeas, 0 nays and 0 passes. The bill will be referred to the full House for consideration.

Next steps: The committee-recommended version advances to the House floor.