CHAPTER 7. DISPOSITION OF PROPERTY
IC 4-20.5-7
Chapter 7. Disposition of Property
IC 4-20.5-7-1
Application of chapter
Sec. 1. (a) This chapter applies to the disposition of state property,with or without consideration.
(b) This chapter does not authorize the transfer of property heldin trust by the state unless the transfer is consistent with the terms ofthe trust.
(c) Except as provided in IC 8-23-7-15, this chapter does notapply to the sale of state property, including structures to be removedfrom state property, under the control of the department oftransportation.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-2
Transferring agency head; duties
Sec. 2. The agency head of a transferring agency must do thefollowing:
(1) Find that the property is surplus to the needs of the agency.
(2) Notify the department that the agency wants to transfer theproperty.
(3) Provide the details of the proposed transfer as required bythe department.
(4) Submit a request to the budget agency, in writing, that thegovernor approve the transfer of the property.
Subdivisions (1) and (4) do not apply to a lease of state property.
As added by P.L.7-1993, SEC.7. Amended by P.L.246-2005, SEC.41.
IC 4-20.5-7-2.5
Transfer of real property at Evansville State Hospital; prohibitionof fences and bleachers
Sec. 2.5. (a) This section applies to real property that is part ofEvansville State Hospital.
(b) The transfer of real property of Evansville State Hospital mustinclude a provision that no fences or bleachers may be constructedon the real property being transferred. The deed transferring realproperty must include a provision that the real property reverts to thestate if bleachers or fences are constructed on the real property.
As added by P.L.244-2005, SEC.2.
IC 4-20.5-7-3
Verifications by land offices
Sec. 3. The land office must verify the following:
(1) That the state holds title to the property.
(2) That the description of the property is accurate andappropriate.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-4
Survey
Sec. 4. (a) The commissioner may order a survey of the propertyif the land office finds a discrepancy between:
(1) the description of the property in the instrument by whichthe state acquired title to the property; and
(2) information contained in the land office.
(b) The survey plat and field notes of a survey conducted underthis section shall be filed in the land office.
(c) The transferring agency shall pay the cost of the survey madeunder this section.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-4.7
References to Brothers of Saint Joseph in record filed with orcreated by state or local government
Sec. 4.7. A reference to the Brothers of Saint Joseph in a recordfiled with or created by the state or a political subdivision is areference to the Brothers of Holy Cross, Inc.
As added by P.L.20-2010, SEC.2.
IC 4-20.5-7-5
Environmental audit
Sec. 5. (a) The commissioner shall order that an environmentalaudit be conducted if either of the following applies:
(1) There is reason to believe the property is contaminated.
(2) An environmental audit is required by law.
(b) An environmental audit must be conducted by a qualifiedperson.
(c) The transferring agency shall pay the cost of an environmentalaudit performed under this section.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-6
Notice of proposed transfer
Sec. 6. The department shall notify the following of the proposedtransfer:
(1) Other state agencies.
(2) State educational institutions.
(3) The division of historic preservation and archeology of thedepartment of natural resources as required by IC 14-21-1-14.
As added by P.L.7-1993, SEC.7. Amended by P.L.1-1995, SEC.35;P.L.267-1999, SEC.5.
IC 4-20.5-7-7
Transfer of property between agencies or educational institutions
Sec. 7. (a) Surplus property may, under the policies prescribed bythe budget agency, be transferred to another agency or a stateeducational institution.
(b) The policies of the budget agency must include a requirement
that the agency head of the accepting agency or the state educationalinstitution do the following:
(1) Find that the property is necessary or convenient to theaccepting agency's or state educational institution's use orpurpose.
(2) Request, in writing, approval of the governor to transferpossession of the property from the transferring agency.
(c) With the approval of the budget agency, the accepting agencyor state educational institution may transfer funds to the transferringagency in consideration of the transfer.
(d) The offer to the transferring agency must remain open forthirty (30) days after the offer was made. If an offer has not beenrejected or accepted by the agency within thirty (30) days, thedepartment may dispose of the property as otherwise permitted underthis chapter.
As added by P.L.7-1993, SEC.7. Amended by P.L.39-1995, SEC.2;P.L.267-1999, SEC.6; P.L.246-2005, SEC.42.
IC 4-20.5-7-7.1
Transfer of property between agencies or educational institutions;notice of availability; disposal of property
Sec. 7.1. (a) At the time the department notifies state agencies andstate educational institutions of the availability of the property, thedepartment:
(1) shall notify:
(A) the municipality within which the property is located;and
(B) the county within which the property is located; and
(2) may notify any other political subdivision within which theproperty is located;
of the availability of the property.
(b) If the state does not receive a response from a municipality,county, or other political subdivision within thirty (30) days, the statemay dispose of the property as provided for under this chapter.
As added by P.L.39-1995, SEC.3. Amended by P.L.267-1999, SEC.7.
IC 4-20.5-7-7.3
Priority for transfers
Sec. 7.3. If more than one (1) state agency, state educationalinstitution, or political subdivision expresses interest in acquiringsurplus property, the department shall give priority for transfer of theproperty in the following order:
(1) To a state agency.
(2) To a state educational institution.
(3) To a political subdivision.
As added by P.L.267-1999, SEC.8.
IC 4-20.5-7-8
Transfer to political subdivision or public utility or sale
Sec. 8. If the commissioner finds that another agency cannot use
the property, the property may be:
(1) transferred to a political subdivision under section 10 of thischapter;
(2) transferred to a public utility under section 10.5 of thischapter; or
(3) sold under sections 11 through 16 of this chapter.
As added by P.L.7-1993, SEC.7. Amended by P.L.33-1995, SEC.10.
IC 4-20.5-7-9
Appraisal
Sec. 9. (a) This section applies only to the following:
(1) The transfer of property to a political subdivision undersection 10 of this chapter.
(2) The sale of property under sections 11 through 16 of thischapter.
(b) This section does not apply under the followingcircumstances:
(1) The lease of property for a term of four (4) years or less.
(2) If the commissioner determines that the value of theproperty is likely to be less than either of the following:
(A) Five thousand dollars ($5,000).
(B) An amount established by the department in rulesadopted under IC 4-22-2.
(c) The property shall be appraised by an appraiser who has thequalifications determined by the commissioner.
(d) The transferring agency shall pay for the cost of the appraisal.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-10
Transfer to political subdivision by gift or sale; preference topolitical subdivisions
Sec. 10. (a) Section 15 of this chapter does not apply to thetransfer of property to a political subdivision under this section.
(b) State property may be transferred to a political subdivision.
(c) The property may be transferred to the political subdivision asa gift or for the price as the state and the political subdivisiondetermine.
(d) The state shall give preference to political subdivision requestsfor the property.
As added by P.L.7-1993, SEC.7. Amended by P.L.39-1995, SEC.4.
IC 4-20.5-7-10.3
Appraisal of property transferred to public utility
Sec. 10.3. (a) This section applies only to the transfer of propertyto a public utility under section 10.5 of this chapter.
(b) If property transferred under this section requires an appraisal,the commissioner may do one (1) of the following:
(1) Require the public utility to pay for the appraisal.
(2) Accept the public utility's appraisal.
(c) An appraisal under this section must be performed by an
appraiser who has the qualifications required by the commissioner.
(d) The public utility shall pay for the cost of the appraisal and forany other costs involved in the transfer.
As added by P.L.33-1995, SEC.11.
IC 4-20.5-7-10.5
Transfer to public utility; consideration
Sec. 10.5. (a) The commissioner may, at the request of an agencyhead, transfer state property to a public utility (as defined inIC 8-1-2-1(a)) for the purpose of a right-of-way.
(b) Consideration for the transfer of property under subsection (a)is as follows:
(1) If the transfer is approved by the governor under section 15of this chapter and the state will benefit from the transfer, thepublic utility shall pay only the costs, as determined by thecommissioner, involved in the transfer of the property.
(2) For property not described in subdivision (1), the publicutility shall pay the appraised value of the property determinedunder section 10.3 of this chapter in addition to the costsinvolved in the transfer of the property.
As added by P.L.33-1995, SEC.12.
IC 4-20.5-7-10.7
Transfer of property to person for property of like value
Sec. 10.7. (a) This section does not apply if the value of the stateproperty is more than ten thousand dollars ($10,000).
(b) The department may transfer state property to a person inexchange for property of like value transferred by the person to thestate:
(1) to settle a dispute relating to either or both of the properties;and
(2) without offering to transfer the state property:
(A) to state agencies, state educational institutions, or apolitical subdivision under this chapter; or
(B) after a sale of the property under this chapter.
(c) The department must establish that properties exchangedunder this section are of like value through appraisals or other meansapproved by the commissioner.
As added by P.L.267-1999, SEC.9.
IC 4-20.5-7-11
Sale through competitive bids or auction
Sec. 11. The department may sell the property through either ofthe following:
(1) Competitive bids.
(2) By auction.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-12
Notice of sale Sec. 12. (a) The department must give notice of a sale as requiredby this section.
(b) Notice of a sale must satisfy the following:
(1) The notice must state the time, place, and terms of the sale.
(2) The notice must be published as follows:
(A) In accordance with IC 5-3.
(B) In every county in which the property is located.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-13
Bid procedure
Sec. 13. (a) Bids shall be opened publicly in the presence of atleast one (1) witness at the time and place designated in the notice ofthe sale.
(b) Bids shall be:
(1) unconditionally accepted without alteration or correction,except as provided in subsections (e) through (g); and
(2) evaluated based on the requirements set forth in the noticeof sale.
(c) Subject to section 15 of this chapter, the property shall be soldwith reasonable promptness to the bidder who submits the highestbid and whose bid meets the requirements and criteria set forth in thenotice of sale.
(d) The department shall permit correction or withdrawal ofinadvertently erroneous bids before or after bids are opened.
(e) If a bidder inserts terms not specified in the notice of sale, thedepartment may do any of the following:
(1) Find the bidder to be nonresponsive.
(2) Permit the bidder to withdraw the additional terms to meetthe requirements and criteria set forth in the notice of sale.
(3) Subject to subsections (f)(1) and (h)(2), accept any of theproposed terms.
(f) The department may not:
(1) accept proposed additional terms; or
(2) permit a change in a bid after bids are opened;
prejudicial to the interest of the state or fair competition.
(g) The department may cancel a sale only as permitted in eitherof the following:
(1) As stated in the notice of the sale.
(2) Under rules adopted by the department under IC 4-22-2.
(h) The commissioner must make a written determinationsupporting any of the following:
(1) Permitting the correction or withdrawal of a bid.
(2) A decision of the department to accept proposed additionalterms under subsection (e)(3).
(3) Canceling the sale.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-14
Auction procedure Sec. 14. (a) As used in this section, "auctioneer" refers to anauctioneer licensed under IC 25-6.1.
(b) Instead of taking bids, the department may engage anauctioneer to advertise the sale and to conduct a public auction of theproperty.
(c) The advertising by an auctioneer under this section mustinclude a detailed description of the property to be sold.
(d) In addition to advertising given to the sale by an auctioneer,notice of the sale must be given as required by section 12 of thischapter.
(e) The transferring agency shall pay the costs of an auctionconducted under this section.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-15
Sale at less than appraised value; grant of easement
Sec. 15. (a) Except as provided in subsection (b) and section 10of this chapter, the governor must approve a sale of the property fora price less than the appraised value of the property.
(b) The department may grant an easement in property without:
(1) money consideration; and
(2) the approval of the governor.
As added by P.L.7-1993, SEC.7. Amended by P.L.267-1999, SEC.10.
IC 4-20.5-7-16
Cash sale; proceeds depository
Sec. 16. (a) A sale of property must be made for cash.
(b) Subject to Article 8, Section 2 of the Constitution of the Stateof Indiana, the proceeds of a sale, after payment of expenses, shall bedeposited in the state treasury and credited to the fund from whichthe property was purchased.
(c) If the fund from which the property was purchased cannot bedetermined, the proceeds shall be deposited in the fund designated bythe budget agency.
(d) The proceeds of the sale are subject to allotment by the budgetagency with the approval of the governor.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-16.5
Proceeds credited to separate account for purchase of other realproperty
Sec. 16.5. The proceeds from the sale of property subject to themanagement or control of the department of natural resources shallbe credited to a separate account to be used for the purchase of otherreal property to be managed or controlled by the department ofnatural resources.
As added by P.L.49-1997, SEC.22.
IC 4-20.5-7-17
Instrument of transfer; signatures Sec. 17. (a) If the property is transferred, an instrument shall beprepared as directed by the department.
(b) The instrument prepared under subsection (a) must be signedby the following:
(1) The agency head of the transferring agency or a designee ofthe agency head.
(2) If the transfer involves two (2) agencies, the agency head ofthe accepting agency or a designee of the agency head.
(3) The governor or a designee of the governor.
(4) The attorney general for form and compliance with thischapter.
(c) The signatures of the individuals listed in subsection (b)(1)through (b)(3) must be acknowledged.
(d) An individual required by this section to sign or approve theinstrument may sign or approve the instrument after the agency forwhom the individual is signing or approving has completed allactions of the agency required under this chapter.
(e) The authority of a designee signing the instrument undersubsection (b) must be indicated in writing and filed with thedepartment.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-18
Recordation and filing
Sec. 18. (a) Except as provided in subsection (b), this sectionapplies to any transfer under this chapter.
(b) This section does not apply if the instrument is a lease for aterm of four (4) years or less.
(c) The instrument shall be recorded in each county in which theproperty is located.
(d) Except as provided in subsection (e), a copy of the instrumentshall be filed in the land office.
(e) If the transfer involves two (2) agencies, the instrument shallalso be filed in the land office.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-19
Rules
Sec. 19. The department may adopt rules under IC 4-22-2 toimplement this chapter.
As added by P.L.7-1993, SEC.7.
IC 4-20.5-7-20
Old Pathology Building and Dead House at Central State Hospital;leases; use of real estate; conditions of long term lease
Sec. 20. (a) As used in this section, "real estate and theimprovements" refers to the real estate and the improvementsgenerally known as the Old Pathology Building and the Dead Housethat are held by Central State Hospital and that are described asfollows: Part of the Southwest Quarter of Section 4, Township 15 North,Range 3 East, Marion County, Indiana, and being moreparticularly described as follows: Beginning at a point on theNorth line of said quarter section being North 88 degrees 20minutes 04 seconds East (assumed bearing) 615.07 feet fromthe Northwest corner thereof; thence continue North 88 degrees20 minutes 04 seconds East along said North line 298.15 feet;thence South 0 degrees 25 minutes 14 seconds West 986.30feet; thence North 88 degrees 39 minutes 18 seconds West184.05 feet; thence North 6 degrees 15 minutes 40 secondsWest 979.13 feet to the point of beginning and containing 5.423acres, more or less. Subject to right-of-way for Vermont Streetoff the entire North side thereof and all other legal easementsand rights-of-way of record. Also subject to and together withan easement for ingress and egress being a part of theSouthwest Quarter of Section 4, Township 15 North, Range 3East, Marion County, Indiana, and being more particularlydescribed as follows: Beginning at a point on the North line ofsaid quarter section being North 88 degrees 20 minutes 04seconds East (assumed bearing) 823.22 feet from the Northwestcorner thereof; thence continue North 88 degrees 20 minutes 04seconds East along said North line 90.00 feet; thence South 0degrees 25 minutes 14 seconds West 61.00 feet; thence South57 degrees 55 minutes 21 seconds West 71.07 feet; thenceSouth 0 degrees 25 minutes 14 seconds West 886.15 feet;thence North 88 degrees 39 minutes 18 seconds West 30.00feet; thence North 0 degrees 25 minutes 14 seconds East 368.57feet; thence North 67 degrees 14 minutes 53 seconds West155.70 feet; thence North 6 degrees 15 minutes 40 secondsWest 25.00 feet; thence South 75 degrees 48 minutes 59seconds East 151.27 feet; thence North 0 degrees 25 minutes 14seconds East 565.00 feet to the point of beginning andcontaining in said easement 0.905 acres, more or less, subjectto all legal easements and rights-of-way of record.
(b) Notwithstanding any other law, the appropriate officials,acting on behalf and in the name of the state, shall enter into a leasewith the Indiana Medical History Museum, Inc., or its successor, atthe sole option of the Indiana Medical History Museum, Inc., at theexpiration of the lease described in P.L.245-1986, SECTION 2 or atany time during the lease described in P.L.245-1986, SECTION 2,leasing the real estate and the improvements.
(c) The Indiana Medical History Museum, Inc., shall use the realestate and the improvements for public charitable, educational,scientific, and general museum purposes.
(d) The lease described in subsection (b) must:
(1) be for a period of ninety-nine (99) years at a rental of onedollar ($1) per year with the option to renew the lease for anadditional ninety-nine (99) years at a rental of one dollar ($1)per year;
(2) allow the Indiana Medical History Museum, Inc., to
purchase services from Central State Hospital at the cost ofthose services to Central State Hospital (the lease must providea method of determining these costs; however, the method maybe amended with the consent of the parties);
(3) provide that the Indiana Medical History Museum, Inc., isresponsible for the maintenance of the real estate and theimprovements;
(4) allow the Indiana Medical History Museum, Inc., to relocatethe improvements generally known as the Old PathologyBuilding and the Dead House to a new site that is generallyavailable to the people of Indiana;
(5) require the Indiana Medical History Museum, Inc., to taketitle to any improvement described in subdivision (4) that istransferred to a site that is not owned by the state or aninstrumentality of the state, subject to a covenant, enforceableby the state, restricting the use of the improvement to acharitable, educational, scientific, and general museum purpose;
(6) provide for the termination of the lease with respect to anyimprovement described in subdivision (4) that is moved to a sitethat is not owned by the state or an instrumentality of the state;
(7) provide for the termination of the lease with respect to thereal estate described in subsection (a) after all improvementsdescribed in subdivision (4) are transferred to another site,regardless of whether the site is owned by the state or aninstrumentality of the state;
(8) allow the state to terminate the lease if any of the real estateand improvements are subleased without the consent of the stateor used for a purpose other than a public charitable, educational,scientific, or general museum purpose; and
(9) permit amendments at any time with the consent of allparties to the lease.
As added by P.L.20-2010, SEC.3.
IC 4-20.5-7-21
State lease agreement with city of Madison for heritage trail;staked survey; use of trail
Sec. 21. (a) As used in this section, "city" refers to the city ofMadison, Indiana.
(b) As used in this section, "heritage trail" refers to a multiplepurpose public use trail.
(c) As used in this section, "hospital" refers to the Madison StateHospital or its successor.
(d) As used in this section, "real estate" refers to the real estateand improvements that are:
(1) held by the hospital;
(2) located on the grounds of the hospital; and
(3) designated as a heritage trail by agreement of the city andthe hospital.
(e) The city, at its expense, shall have a staked survey performedand prepare a legal description of the real estate that meets the
approval of the governor and the commissioner of the Indianadepartment of administration.
(f) The governor and the commissioner of the Indiana departmentof administration are authorized and directed on behalf of and in thename of the state of Indiana to enter into a lease agreement with thecity that contains the following:
(1) A lease of the real estate surveyed and described insubsection (e) to the city for thirty (30) years at a rental of onedollar ($1) per year.
(2) A provision for maintenance of the heritage trail by the cityor the hospital.
(3) A statement that the city may purchase services from thehospital at the cost of those services to the hospital, includingthe method of determining the costs. The method ofdetermining costs may be amended with the consent of allparties to the lease.
(4) An easement to the real estate to allow visitor access to thereal estate. The easement may be amended with the consent ofall parties to the lease.
(5) A statement that the state may terminate the lease if any partof the real estate is:
(A) subleased without the consent of the state; or
(B) used for a purpose other than a heritage trail.
(g) The city shall use the real estate leased under this section forheritage trail purposes.
As added by P.L.20-2010, SEC.4.