HB 335 update

House Bill 335, sponsored by Representative Larry Elkins, former county judge/executive of Calloway County, amends the county surplus property statute to make it more efficient and business friendly. The bill passed with overwhelming support in the House and Senate and now heads to Gov. Matt Bevin’s desk to be signed into law.

HB 335 amends the county surplus property statute to allow for the transfer of surplus property for economic development purposes and for surplus property to be sold by the Finance Cabinet under an agreement with the county.

Under this legislation, counties may also forgo an auction or sealed bid process for the sale of surplus property valued at $5,000 or less, as long as the county receives at least fair market value. This property could not be sold to a county officer or employee. Property valued at more than $5,000 would still be required to be sold via auction or sealed bid. In addition, HB 335 allows counties to dispose of items for scrap value or as garbage if the property has nominal or no value.

“This legislation, in summary, makes the surplus property statute efficient and economical,” said Rich Ornstein, staff attorney for the Kentucky Association of Counties. “It provides an important, new economic tool for counties to utilize across the state.”

HB 335 passed in the House 99-0 and in the Senate 37-0.