# COMAR Title 34 — Department of Planning

## Subtitle 02 — State Clearinghouse

### Chapter 02 — State Clearinghouse Procedures for the Reporting and Processing of Excess and Substantial Changes in State-Owned Real Property and Requests for the Granting of Rights-of-Way and Easements Across State-Owned Real Property

**Authority:** State Finance and Procurement Article, §§5-310, 5-504, and 5-505,and Title 10, Subtitle 3, Annotated Code of Maryland

**Administrative History:** Effective date: May 12, 1976 (3:10 Md. R. 530)

**Administrative History:** (Chapter recodified from COMAR 16.00.04 to 16.02.02)

**Administrative History:** Chapter recodified from COMAR 16.02.02 to COMAR 14.24.05 in July, 1989

**Administrative History:** Chapter recodified from COMAR 14.24.05 to COMAR 34.02.02

#### Regulation .01 Scope.

*COMAR 34.02.02.01*

These regulations are applicable to all State-owned real property except that the following State-owned property need not be reported as excess property:

A. Residential property acquired by the Department of Economic and Community Development by foreclosure or similar means in the course of operation of a State lending or insuring program administered by that department;

B. Real property under the control or jurisdiction of the Department of Natural Resources to be sold or leased to an electric company under the Power Plant Siting and Research Program; and

C. Real property under the control and jurisdiction of the Department of Transportation, State Highway Administration, which is less than 3 acres in size or which comes under the provisions of Transportation Article, §8-309(b)(2), Annotated Code of Maryland, unless the seller, assignor, or heir has rejected the prior right to purchase the property and the property is 3 acres or larger in size.

#### Regulation .02 Purpose.

*COMAR 34.02.02.02*

Proper management and use of State resources requires a continuing and critical review of the real property held by the State to assure that it is being properly utilized. All State agencies are encouraged to initiate and conduct on a continuing basis a survey of all real property under their control and jurisdiction to identify those properties which are not utilized, are under-utilized, or are not being put to optimum use and are not required to meet future needs. These regulations are intended to provide guidance to State agencies for the reporting of excess and substantial changes in State- owned real property and requests for the granting of rights-of-way or easements and to establish the coordination procedures associated with the reports submitted. This program will reduce the necessity for the expenditure of State funds for the acquisition of real property when State agency needs can be met by utilizing real property currently owned by the State, and insure that maximum benefits to the State are realized by the utilization or disposal of this property for the most appropriate use which is compatible with the plans and programs of State and local agencies. Further, it will reduce the necessity for the expenditure of State funds for the operation, care, and maintenance of property not needed to meet current or projected requirements.

#### Regulation .03 Definitions.

*COMAR 34.02.02.03*

For the purpose of these regulations, the following terms have the meanings indicated:

A. “Excess property” means any real property under the control or jurisdiction of a State agency which the head of that agency determines is not required for the current or projected needs or the discharge of the responsibilities of that agency.

B. “Real property” means any freehold, fee, or leasehold interest in land, including improvements of any kind, structures and fixtures located on the premises, and appurtenances.

C. “State agency” means a department or independent agency of State government.

D. “Substantial change” means any change in use that would:

  (1) Result in a major alteration in the functions or services being provided through or by the facility concerned;

  (2) Require physical alteration to a structure or structures whose estimated cost of alteration is $50,000 or more;

  (3) Require the demolition or removal of a usable structure whose estimated value is $15,000 or more.

E. “Surplus property” means any real property which the Board of Public Works determines is not required for current or projected needs or the discharge of responsibilities of the State or its political subdivisions, and which will be disposed of under certain conditions as the Board may require.

#### Regulation .04 Reporting Excess Property.

*COMAR 34.02.02.04*

A. Once a State agency has determined that real property under its control and jurisdiction is excess property, it shall report that property to the Department of Planning. This report shall include the following information:

  (1) Size, location, and general description;

  (2) Adequate map, plat, plan sheet, or mosaic showing the property, including structures located on it;

  (3) Access to the property;

  (4) Availability of utilities (water, sewer, electricity), if known;

  (5) Date of availability;

  (6) Any known interest in the excess property;

  (7) If structures are involved, a general description of the physical condition of the structures, floor plans, and an indication of the potential use of the structures as office space or other appropriate use;

  (8) Any other special characteristics of the property which might be of interest to potential applicants, e.g., flood plain, wetlands;

  (9) For State Highway Administration property, price and conditions if property is acquired by another State agency or political subdivision;

  (10) Name of the person to be contacted if additional information is required.

B. Upon receipt of this information, the Department of Planning will make a preliminary site survey report on the property.

C. Upon completion of this survey and within 10 days of receipt, the Department of Planning will notify all State agencies whose functions require the use of real property, and appropriate county and municipal executive authorities, of the availability of the excess property, including the site survey report, to determine the interest which each may have in acquiring the property. For excess property located in Montgomery and Prince George's counties, the notification of availability will also be sent to the Maryland-National Capital Park and Planning Commission and the Washington Suburban Sanitary Commission.

D. State and local agencies are encouraged to inspect the property if it appears from the descriptive data provided that any part or all of the property may be suitable to meet current or future agency needs. If additional information is desired, direct communication should be made with the designated contact person.

E. State agencies and county and municipal executive authorities shall submit their indications of interest in acquiring the property, to include negative interest, within 30 days of the date of the Department of Planning's notification of availability. If interested in acquiring the property, the response shall include the following information:

  (1) Contemplated use of the property;

  (2) Whether funds are currently available for acquisition of the property; if not, the period of time required to obtain funds, if applicable;

  (3) The name of the grantee to appear on the deed of conveyance, as applicable.

F. Upon receipt of replies, the Department of Budget and Management, after consultation with the Department of General Services, will make a recommendation to the Board of Public Works as to what disposition should be made of the property. This will include a recommendation as to which agency should have priority of acquisition if there are unresolved competing interests in the property. This recommendation will be made through the agenda of the Department of Transportation when the holding or using agency is the Department of Transportation (including its modal administrations), and through the agenda of the Department of General Services when the holding or using agency is any other State agency. Copies of the recommendation will be provided to the State agency reporting the excess property and all agencies who have indicated an interest in the property.

G. Determination by the Board of Public Works.

  (1) The Board of Public Works shall determine whether the property should be:

    (a) Disposed of to a State agency, county, or municipality, including certain conditions;

    (b) Retained by the State for possible future use, including the State agency to have control and jurisdiction over the property; or

    (c) Declared surplus and disposed of to other than a State agency, county, or municipality in accordance with the conditions it may require.

  (2) This determination shall be forwarded to the Department of Transportation or the Department of General Services, as appropriate, with copies to the Department of Budget and Management and the Department of Planning.

#### Regulation .05 Post-Determination Actions.

*COMAR 34.02.02.05*

A. Disposal of Excess Surplus Property. Property which the Board of Public Works determines should be disposed of shall be disposed of by the Department of Transportation or the Department of General Services in accordance with the conditions imposed by the Board of Public Works. The Department of Budget and Management and the Department of Planning shall be advised when actual disposition or transfer of property has been accomplished.

B. Retention of Excess Property. The Department of Planning will maintain a list of those properties that the Board of Public Works determines should be retained for possible future use by the State. The Department of Planning will publish and distribute this list to State agencies and appropriate county and municipal authorities on a quarterly basis. If at any time a State agency, county, or municipality has an interest in acquiring any property on the list, it should notify the Department of Budget and Management and the Department of Planning according to Regulation .04E of this chapter, and the Department will process the request according to Regulation .04F and G of this chapter.

C. Security, Care, and Maintenance. The State agency having control and jurisdiction over State-owned property, including excess or surplus property, shall be responsible for providing adequate security, care, and maintenance to prevent deterioration from vandalism or climatic extremes until the deed or other evidence of conveyance has been properly executed or control and jurisdiction passed to another agency.

#### Regulation .06 Substantial Change.

*COMAR 34.02.02.06*

A. Any State agency proposing to make a substantial change in use of State-owned property (see Regulation .03D of this chapter) shall forward a notification of the proposed change to the Department of Planning. This notification shall include the following information:

  (1) Current use of the property;

  (2) Summary of the proposed changes to be made in the use of the property, including certain requirements;

  (3) Time-frame for accomplishment of the changes;

  (4) Estimated impact of the changes on the State operating budget and capital budget; and

  (5) Name of person to be contacted if additional information is required.

B. Within 10 days of receipt, the Department of Planning shall forward the notification of proposed change to appropriate State and local governmental agencies, requesting review and comment. Review agencies shall have 30 days from the date of the review request letter to submit their comments on the proposed change.

C. Comments and Recommendations.

  (1) Comments and recommendations, as may be appropriate, should include, but need not be limited to, the extent to which the proposed change:

    (a) Is in consonance with comprehensive and functional planning for the State, area, or locality;

    (b) Is in consonance with the master plan for the facility concerned; and

    (c) Impacts adversely on the property itself, the neighborhood, and the local social, economic, and natural environment.

  (2) If review agencies require additional information in order to complete their reviews, they should communicate directly with the designated contact person.

D. The Department of Planning shall forward the comments and recommendations received as a result of this review to the agency proposing the change. If Board of Public Works approval is required for implementation of the change, a summary of the Department of Planning review letter shall accompany the request to the Board of Public Works.

#### Regulation .07 Rights-of-Way and Easements.

*COMAR 34.02.02.07*

A. A request for the granting of a right-of-way or easement across or through State-owned property which is not for the specific purpose of serving the State-owned site or facility only shall be forwarded to the Department of Planning for review and comment. Information submitted shall include:

  (1) Name of the agency or individual requesting the right-of-way or easement;

  (2) Purpose for which the right-of-way or easement is requested;

  (3) Site plan or map indicating the preliminary alignment of the proposed right-of-way or easement; and

  (4) Recommendation as to whether or not compensation should be required.

B. Within 10 days of receipt, the Department of Planning shall forward the proposal to appropriate State agencies and county and municipal executive authorities, requesting review and comment. Review agencies shall submit their comments and recommendations on the proposal within 30 days of the date of the Department of Planning review request letter. Comments and recommendations may include, but need not be limited to, information about the extent to which the proposal:

  (1) Is in consonance with or contributes to the fulfillment of comprehensive and functional planning for the State, area, or locality;

  (2) Is in consonance with the master plan for the facility concerned;

  (3) Impacts adversely on the operational use of the property itself, the adjoining neighborhood, and the social, economic, or natural environment.

C. Based upon the comments and recommendations received from this review, the Department of Planning shall forward a recommendation to the Department of General Services or the State Highway Administration, as applicable, as to whether or not the request should be rejected or processed for forwarding to the Board of Public Works for final approval. A copy of this recommendation shall be provided to the agency or organization making the request. The recommendation shall indicate whether or not compensation should be obtained for the granting of the right-of-way or easement. The Department of General Services or the State Highway Administration, as applicable, shall be responsible for presenting the right-of-way or easement agreement to the Board of Public Works.

D. The request for Board of Public Works approval shall include a summation of the review comments and the recommendations of the Department of Planning.

#### Regulation .08 Monetary Compensation.

*COMAR 34.02.02.08*

In accordance with State Finance and Procurement Article, Title 10, Subtitle 3, Annotated Code of Maryland, if the consideration received for the disposition of State-owned real property is cash, in whole or in part, the proceeds shall be accounted for and remitted to the State Treasurer, except that any consideration received in cash for the disposition of a capital asset shall be applied solely to the State Annuity Bond Fund Account, and if the capital asset was originally purchased with any special funds, the proceeds shall revert to that fund only.