Bill Text For SB0416 - Introduced

 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
© 2010-24 Quorum Call, LLC. ALL RIGHTS RESERVED.

As provided by this agreement access to bill tracking / capitol news services is restricted to the registered User. The User shall have no right to divulge, publish, loan, give or sell any of the information provided under this agreement. Information retrieved from system may not be reproduced, transmitted, transcribed, stored in a retrieval system or translated into any language in any form by any means without the written permission of Quorum Call, LLC. All other rights reserved. If a person uses a copyrighted work without permission of the rights holder, he or she is open to a charge of copyright infringement. Additional terms and conditions governing the access to and use of Quorum Call website and the services and materials provided by Quorum Call are set forth in the Quorum Call Subscriber Agreement posted on the Quorum Call website.