1| STATE OF OKLAHOMA | | | 2| 1st Session of the 59th Legislature (2023) | | | 3|SENATE BILL 416 By: Pemberton | | | 4| | | | 5| | | | 6| AS INTRODUCED | | | 7| An Act relating to public buildings and public works; | | amending 61 O.S. 2021, Section 327, as amended by | 8| Section 47, Chapter 238, O.S.L. 2022 (61 O.S. Supp. | | 2022, Section 327), which relates to procedures for | 9| disposal or lease of certain real property; modifying | | list of exemptions; and providing an effective date. | 10| | | | 11| | | | 12|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | | | 13| SECTION 1. AMENDATORY 61 O.S. 2021, Section 327, as | | | 14|amended by Section 47, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2022, | | | 15|Section 327), is amended to read as follows: | | | 16| Section 327. A. Unless procedures for state agency real | | | 17|property transactions are otherwise specifically provided for by | | | 18|law, no state agency shall sell, lease, exchange, or otherwise | | | 19|dispose of such real property subject to its jurisdiction, or lease, | | | 20|purchase or otherwise acquire real property subject to its | | | 21|jurisdiction, except as authorized by subsection L of this section | | | 22|and as otherwise provided for in this section. As used in this | | | 23|section, "state agency" means any department, board, commission, | | | 24|institution, agency or entity of state government. | | | Req. No. 749 Page 1 ___________________________________________________________________________
1| B. 1. Every state agency shall request the Office of | | | 2|Management and Enterprise Services to dispose of real property upon: | | | 3| a. legislative authorization, | | | 4| b. authorization by the Long-Range Capital Planning | | | 5| Commission, or | | | 6| c. a determination, in writing, by the Office of | | | 7| Management and Enterprise Services or the state agency | | | 8| that a parcel of real property subject to its | | | 9| jurisdiction is no longer needed. | | | 10| 2. Upon the request of the state agency to dispose of real | | | 11|property, the Office of Management and Enterprise Services shall | | | 12|estimate the value of the property, and: | | | 13| a. for properties with an estimated value of greater than | | | 14| Twenty-five Thousand Dollars ($25,000.00), obtain at | | | 15| least one complete appraisal made by a person | | | 16| certified by the Real Estate Appraiser Board of the | | | 17| Oklahoma Insurance Department, who shall ascertain: | | | 18| (1) the present fair value of the property, | | | 19| (2) the present value of the improvements on such | | | 20| property, and | | | 21| (3) the actual condition of the improvements on the | | | 22| property, | | | 23| b. after completion of the provisions of subsection L of | | | 24| this section, cause notice of such sale to be | | | Req. No. 749 Page 2 ___________________________________________________________________________
1| published for at least one (1) day in a newspaper of | | | 2| general statewide circulation authorized to publish | | | 3| legal notices, and weekly for three (3) consecutive | | | 4| weeks in a newspaper of general circulation published | | | 5| in the county or counties in which the property is | | | 6| located. The notice shall contain the legal | | | 7| description of each parcel of real property to be | | | 8| offered for sale, the appraised value thereof, the | | | 9| time and location of the sale or opening of the bids, | | | 10| and terms of the sale including the fact that no | | | 11| parcel of property shall be sold for less than ninety | | | 12| percent (90%) of the appraised value of the real | | | 13| property; provided, in lieu of such procedure, the | | | 14| information may be published electronically on the | | | 15| Office of Management and Enterprise Services' website | | | 16| if the notice of sale and instructions on accessing | | | 17| the public information are published in a newspaper of | | | 18| general circulation in the county or counties in which | | | 19| the property is located weekly for three (3) | | | 20| consecutive weeks, | | | 21| c. offer the property through electronic auction, public | | | 22| auction or sealed bids within three (3) weeks after | | | 23| the last publication of the notice. The property | | | 24| shall be sold to the highest bidder. The Office of | | | Req. No. 749 Page 3 ___________________________________________________________________________
1| Management and Enterprise Services shall not accept a | | | 2| bid of less than ninety percent (90%) of the average | | | 3| appraised fair value of the property and the | | | 4| improvements on such property, | | | 5| d. if the property is being disposed of in compliance | | | 6| with Section 908 of Title 62 of the Oklahoma Statutes, | | | 7| the Office may auction the property at public or | | | 8| electronic auction provided proper public notice is | | | 9| given in compliance with this section and the property | | | 10| has been approved for liquidation by the Long-Range | | | 11| Capital Planning Commission. The Office of Management | | | 12| and Enterprise Services is authorized to reject all | | | 13| bids, | | | 14| e. if the property has an estimated value of less than | | | 15| Twenty-five Thousand Dollars ($25,000.00), the Office | | | 16| of Management and Enterprise Services may establish | | | 17| the value through market comparison and may dispose of | | | 18| the property based on estimated value without | | | 19| obtaining a certified appraisal; provided, however, | | | 20| the sale shall comply with all other requirements of | | | 21| statute, and | | | 22| f. if the property is landlocked, the Office of | | | 23| Management and Enterprise Services may offer the | | | 24| property through indirect sale to the adjacent | | | Req. No. 749 Page 4 ___________________________________________________________________________
1| property owner for not less than ninety percent (90%) | | | 2| of fair market value, as determined in compliance with | | | 3| this section. All sales costs, including any required | | | 4| surveys and appraisals, shall be at the expense of the | | | 5| buyer. | | | 6| 3. The cost of the appraisal required by the provisions of this | | | 7|section, together with other necessary expenses incurred pursuant to | | | 8|this section, shall be paid by the state agency for which the real | | | 9|property is to be sold from funds available to the state agency for | | | 10|such expenditure. All monies received from the sale or disposal of | | | 11|the property, except those monies necessary to pay the expenses | | | 12|incurred pursuant to this section, shall be deposited in the | | | 13|Maintenance of State Buildings Revolving Fund unless otherwise | | | 14|provided by law. | | | 15| 4. The Office of Management and Enterprise Services may dismiss | | | 16|from consideration any appraisal found to be incomplete or flawed. | | | 17| C. Unless otherwise provided by law, the Office of Management | | | 18|and Enterprise Services shall review and approve state agency real | | | 19|property transactions. A state agency shall not lease or acquire | | | 20|real property, or lease, dispose of or transfer state-owned real | | | 21|property until the Office provides notice of transaction approval to | | | 22|the state agency. Prior to approval, a state agency shall provide | | | 23|documents to the Office and provide reference to statutory or other | | | 24|legal authority of the state agency to lease or acquire real | | | Req. No. 749 Page 5 ___________________________________________________________________________
1|property, or lease, dispose of or transfer state-owned real | | | 2|property. If the state agency intends to lease or acquire real | | | 3|property, the state agency shall state the intended use of the real | | | 4|property, and shall provide the Office with required telework | | | 5|documentation. Within thirty (30) days of receipt, the Office shall | | | 6|provide notice of transaction approval or disapproval to the state | | | 7|agency. | | | 8| D. The provisions of this section shall not apply to the lease | | | 9|of office space or real property subject to supervision of the | | | 10|Commissioners of the Land Office, institutions comprising The | | | 11|Oklahoma State System of Higher Education, or district boards of | | | 12|education. | | | 13| E. 1. The Office of Management and Enterprise Services shall | | | 14|maintain a comprehensive inventory of state-owned real property and | | | 15|its use excluding property of the public schools and property | | | 16|subject to the jurisdiction of the Commissioners of the Land Office. | | | 17| 2. Each state agency shall, within thirty (30) days of the | | | 18|closing date for lands newly acquired, provide to the Office a list | | | 19|of records, deeds, abstracts and other title instruments showing the | | | 20|description of and relating to any and all such lands or interests | | | 21|therein. | | | 22| 3. The provisions of paragraph 2 of this subsection shall apply | | | 23|to all lands of public trusts having a state agency as the primary | | | 24|beneficiary, but shall not apply to lands of municipalities, | | | Req. No. 749 Page 6 ___________________________________________________________________________
1|counties, school districts, or agencies thereof, or Department of | | | 2|Transportation rights-of-way. | | | 3| 4. A state agency that sells or otherwise disposes of land | | | 4|shall notify the Office within thirty (30) days of the disposition | | | 5|closing date. | | | 6| F. This section shall not be construed to authorize any state | | | 7|agency, not otherwise authorized by law, to sell, lease, or | | | 8|otherwise dispose of any real property owned by the state. | | | 9| G. The Office of Management and Enterprise Services and the | | | 10|Secretary of the Commissioners of the Land Office, or designee, as | | | 11|provided in subsection L of this section may provide services to | | | 12|sell, transfer, trade or purchase real property for other state | | | 13|agencies. | | | 14| H. The Director of the Office of Management and Enterprise | | | 15|Services shall, pursuant to the Administrative Procedures Act, | | | 16|promulgate rules to effect procedures necessary to the fulfillment | | | 17|of its responsibilities under this section. | | | 18| I. The Oklahoma Ordnance Works Authority and its lands, and the | | | 19|Northeast Oklahoma Public Facilities Authority, the Oklahoma | | | 20|Historical Society, the Oklahoma Department of Transportation, the | | | 21|Oklahoma Turnpike Authority, institutions comprising The Oklahoma | | | 22|State System of Higher Education, and the Department of Wildlife | | | 23|managed lands shall be exempt from the application of this section. | | | 24|The Grand River Dam Authority and its lands shall be exempt from the | | | Req. No. 749 Page 7 ___________________________________________________________________________
1|application of this section for any real property disposed of prior | | | 2|to November 1, 2006. | | | 3| J. Unless otherwise provided for by law, the procedures | | | 4|established pursuant to this section for the sale or exchange of | | | 5|real estate or personal property as authorized pursuant to Sections | | | 6|2222 and 2223 of Title 74 of the Oklahoma Statutes shall be followed | | | 7|unless the sale is to an entity of state government. | | | 8| K. The Director of the Office of Management and Enterprise | | | 9|Services shall contract with experts, professionals or consultants | | | 10|as necessary to perform the duties of the Office. Selections shall | | | 11|be made using the qualifications-based procedures established in | | | 12|Section 62 of this title and the rules promulgated by the Director | | | 13|for the selection of construction managers and design consultants. | | | 14| L. 1. No state agency shall sell, lease, exchange, or | | | 15|otherwise dispose of such real property subject to its jurisdiction, | | | 16|or lease, purchase or otherwise acquire real property subject to its | | | 17|jurisdiction, until such agency or the Office of Management and | | | 18|Enterprise Services acting on the agency's behalf has presented to | | | 19|the Secretary of the Commissioners of the Land Office, or designee, | | | 20|all information collected pursuant to subparagraph a of paragraph 2 | | | 21|of subsection B of this section, and provided the Secretary of the | | | 22|Commissioners of the Land Office or designee a twenty-calendar-day | | | 23|period to provide a proposal for the acquisition or disposal of | | | 24|applicable real property. | | | Req. No. 749 Page 8 ___________________________________________________________________________
1| 2. The Secretary of the Commissioners of the Land Office or | | | 2|designee may decline to provide such a proposal; provided such | | | 3|notice of decline is communicated to the Office of Management and | | | 4|Enterprise Services in written or electronic form. Upon the | | | 5|reception of such notice of decline by the Office of Management and | | | 6|Enterprise Services, the twenty-calendar-day period otherwise | | | 7|required by this subsection shall be deemed to have expired. | | | 8| SECTION 2. This act shall become effective November 1, 2023. | | | 9| | | | 10| 59-1-749 KR 1/16/2023 4:04:25 PM | | | 11| | | | 12| | | | 13| | | | 14| | | | 15| | | | 16| | | | 17| | | | 18| | | | 19| | | | 20| | | | 21| | | | 22| | | | 23| | | | 24| | | | Req. No. 749 Page 9