1| SENATE FLOOR VERSION | | February 16, 2023 | 2| | | | 3|SENATE BILL NO. 416 By: Pemberton of the Senate | | | 4| and | | | 5| Moore of the House | | | 6| | | | 7| | | | 8| An Act relating to public buildings and public works; | | amending 61 O.S. 2021, Section 327, as amended by | 9| Section 47, Chapter 238, O.S.L. 2022 (61 O.S. Supp. | | 2022, Section 327), which relates to procedures for | 10| disposal or lease of certain real property; modifying | | list of exemptions; and providing an effective date. | 11| | | | 12| | | | 13|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | | | 14| SECTION 1. AMENDATORY 61 O.S. 2021, Section 327, as | | | 15|amended by Section 47, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2022, | | | 16|Section 327), is amended to read as follows: | | | 17| Section 327. A. Unless procedures for state agency real | | | 18|property transactions are otherwise specifically provided for by | | | 19|law, no state agency shall sell, lease, exchange, or otherwise | | | 20|dispose of such real property subject to its jurisdiction, or lease, | | | 21|purchase or otherwise acquire real property subject to its | | | 22|jurisdiction, except as authorized by subsection L of this section | | | 23|and as otherwise provided for in this section. As used in this | | | 24| | | | arsid5046559 SENATE FLOOR VERSION - SB416 SFLR Page 1 ___________________________________________________________________________
1|section, "state agency" means any department, board, commission, | | | 2|institution, agency or entity of state government. | | | 3| B. 1. Every state agency shall request the Office of | | | 4|Management and Enterprise Services to dispose of real property upon: | | | 5| a. legislative authorization, | | | 6| b. authorization by the Long-Range Capital Planning | | | 7| Commission, or | | | 8| c. a determination, in writing, by the Office of | | | 9| Management and Enterprise Services or the state agency | | | 10| that a parcel of real property subject to its | | | 11| jurisdiction is no longer needed. | | | 12| 2. Upon the request of the state agency to dispose of real | | | 13|property, the Office of Management and Enterprise Services shall | | | 14|estimate the value of the property, and: | | | 15| a. for properties with an estimated value of greater than | | | 16| Twenty-five Thousand Dollars ($25,000.00), obtain at | | | 17| least one complete appraisal made by a person | | | 18| certified by the Real Estate Appraiser Board of the | | | 19| Oklahoma Insurance Department, who shall ascertain: | | | 20| (1) the present fair value of the property, | | | 21| (2) the present value of the improvements on such | | | 22| property, and | | | 23| (3) the actual condition of the improvements on the | | | 24| property, | | | arsid5046559 SENATE FLOOR VERSION - SB416 SFLR Page 2 ___________________________________________________________________________
1| b. after completion of the provisions of subsection L of | | | 2| this section, cause notice of such sale to be | | | 3| published for at least one (1) day in a newspaper of | | | 4| general statewide circulation authorized to publish | | | 5| legal notices, and weekly for three (3) consecutive | | | 6| weeks in a newspaper of general circulation published | | | 7| in the county or counties in which the property is | | | 8| located. The notice shall contain the legal | | | 9| description of each parcel of real property to be | | | 10| offered for sale, the appraised value thereof, the | | | 11| time and location of the sale or opening of the bids, | | | 12| and terms of the sale including the fact that no | | | 13| parcel of property shall be sold for less than ninety | | | 14| percent (90%) of the appraised value of the real | | | 15| property; provided, in lieu of such procedure, the | | | 16| information may be published electronically on the | | | 17| Office of Management and Enterprise Services' website | | | 18| if the notice of sale and instructions on accessing | | | 19| the public information are published in a newspaper of | | | 20| general circulation in the county or counties in which | | | 21| the property is located weekly for three (3) | | | 22| consecutive weeks, | | | 23| c. offer the property through electronic auction, public | | | 24| auction or sealed bids within three (3) weeks after | | | arsid5046559 SENATE FLOOR VERSION - SB416 SFLR Page 3 ___________________________________________________________________________
1| the last publication of the notice. The property | | | 2| shall be sold to the highest bidder. The Office of | | | 3| Management and Enterprise Services shall not accept a | | | 4| bid of less than ninety percent (90%) of the average | | | 5| appraised fair value of the property and the | | | 6| improvements on such property, | | | 7| d. if the property is being disposed of in compliance | | | 8| with Section 908 of Title 62 of the Oklahoma Statutes, | | | 9| the Office may auction the property at public or | | | 10| electronic auction provided proper public notice is | | | 11| given in compliance with this section and the property | | | 12| has been approved for liquidation by the Long-Range | | | 13| Capital Planning Commission. The Office of Management | | | 14| and Enterprise Services is authorized to reject all | | | 15| bids, | | | 16| e. if the property has an estimated value of less than | | | 17| Twenty-five Thousand Dollars ($25,000.00), the Office | | | 18| of Management and Enterprise Services may establish | | | 19| the value through market comparison and may dispose of | | | 20| the property based on estimated value without | | | 21| obtaining a certified appraisal; provided, however, | | | 22| the sale shall comply with all other requirements of | | | 23| statute, and | | | 24| | | | arsid5046559 SENATE FLOOR VERSION - SB416 SFLR Page 4 ___________________________________________________________________________
1| f. if the property is landlocked, the Office of | | | 2| Management and Enterprise Services may offer the | | | 3| property through indirect sale to the adjacent | | | 4| property owner for not less than ninety percent (90%) | | | 5| of fair market value, as determined in compliance with | | | 6| this section. All sales costs, including any required | | | 7| surveys and appraisals, shall be at the expense of the | | | 8| buyer. | | | 9| 3. The cost of the appraisal required by the provisions of this | | | 10|section, together with other necessary expenses incurred pursuant to | | | 11|this section, shall be paid by the state agency for which the real | | | 12|property is to be sold from funds available to the state agency for | | | 13|such expenditure. All monies received from the sale or disposal of | | | 14|the property, except those monies necessary to pay the expenses | | | 15|incurred pursuant to this section, shall be deposited in the | | | 16|Maintenance of State Buildings Revolving Fund unless otherwise | | | 17|provided by law. | | | 18| 4. The Office of Management and Enterprise Services may dismiss | | | 19|from consideration any appraisal found to be incomplete or flawed. | | | 20| C. Unless otherwise provided by law, the Office of Management | | | 21|and Enterprise Services shall review and approve state agency real | | | 22|property transactions. A state agency shall not lease or acquire | | | 23|real property, or lease, dispose of or transfer state-owned real | | | 24|property until the Office provides notice of transaction approval to | | | arsid5046559 SENATE FLOOR VERSION - SB416 SFLR Page 5 ___________________________________________________________________________
1|the state agency. Prior to approval, a state agency shall provide | | | 2|documents to the Office and provide reference to statutory or other | | | 3|legal authority of the state agency to lease or acquire real | | | 4|property, or lease, dispose of or transfer state-owned real | | | 5|property. If the state agency intends to lease or acquire real | | | 6|property, the state agency shall state the intended use of the real | | | 7|property, and shall provide the Office with required telework | | | 8|documentation. Within thirty (30) days of receipt, the Office shall | | | 9|provide notice of transaction approval or disapproval to the state | | | 10|agency. | | | 11| D. The provisions of this section shall not apply to the lease | | | 12|of office space or real property subject to supervision of the | | | 13|Commissioners of the Land Office, institutions comprising The | | | 14|Oklahoma State System of Higher Education, or district boards of | | | 15|education. | | | 16| E. 1. The Office of Management and Enterprise Services shall | | | 17|maintain a comprehensive inventory of state-owned real property and | | | 18|its use excluding property of the public schools and property | | | 19|subject to the jurisdiction of the Commissioners of the Land Office. | | | 20| 2. Each state agency shall, within thirty (30) days of the | | | 21|closing date for lands newly acquired, provide to the Office a list | | | 22|of records, deeds, abstracts and other title instruments showing the | | | 23|description of and relating to any and all such lands or interests | | | 24|therein. | | | arsid5046559 SENATE FLOOR VERSION - SB416 SFLR Page 6 ___________________________________________________________________________
1| 3. The provisions of paragraph 2 of this subsection shall apply | | | 2|to all lands of public trusts having a state agency as the primary | | | 3|beneficiary, but shall not apply to lands of municipalities, | | | 4|counties, school districts, or agencies thereof, or Department of | | | 5|Transportation rights-of-way. | | | 6| 4. A state agency that sells or otherwise disposes of land | | | 7|shall notify the Office within thirty (30) days of the disposition | | | 8|closing date. | | | 9| F. This section shall not be construed to authorize any state | | | 10|agency, not otherwise authorized by law, to sell, lease, or | | | 11|otherwise dispose of any real property owned by the state. | | | 12| G. The Office of Management and Enterprise Services and the | | | 13|Secretary of the Commissioners of the Land Office, or designee, as | | | 14|provided in subsection L of this section may provide services to | | | 15|sell, transfer, trade or purchase real property for other state | | | 16|agencies. | | | 17| H. The Director of the Office of Management and Enterprise | | | 18|Services shall, pursuant to the Administrative Procedures Act, | | | 19|promulgate rules to effect procedures necessary to the fulfillment | | | 20|of its responsibilities under this section. | | | 21| I. The Oklahoma Ordnance Works Authority and its lands, and the | | | 22|Northeast Oklahoma Public Facilities Authority, the Oklahoma | | | 23|Historical Society, the Oklahoma Department of Transportation, the | | | 24|Oklahoma Turnpike Authority, institutions comprising The Oklahoma | | | arsid5046559 SENATE FLOOR VERSION - SB416 SFLR Page 7 ___________________________________________________________________________
1|State System of Higher Education, and the Department of Wildlife | | | 2|managed lands shall be exempt from the application of this section. | | | 3|The Grand River Dam Authority and its lands shall be exempt from the | | | 4|application of this section for any real property disposed of prior | | | 5|to November 1, 2006. | | | 6| J. Unless otherwise provided for by law, the procedures | | | 7|established pursuant to this section for the sale or exchange of | | | 8|real estate or personal property as authorized pursuant to Sections | | | 9|2222 and 2223 of Title 74 of the Oklahoma Statutes shall be followed | | | 10|unless the sale is to an entity of state government. | | | 11| K. The Director of the Office of Management and Enterprise | | | 12|Services shall contract with experts, professionals or consultants | | | 13|as necessary to perform the duties of the Office. Selections shall | | | 14|be made using the qualifications-based procedures established in | | | 15|Section 62 of this title and the rules promulgated by the Director | | | 16|for the selection of construction managers and design consultants. | | | 17| L. 1. No state agency shall sell, lease, exchange, or | | | 18|otherwise dispose of such real property subject to its jurisdiction, | | | 19|or lease, purchase or otherwise acquire real property subject to its | | | 20|jurisdiction, until such agency or the Office of Management and | | | 21|Enterprise Services acting on the agency's behalf has presented to | | | 22|the Secretary of the Commissioners of the Land Office, or designee, | | | 23|all information collected pursuant to subparagraph a of paragraph 2 | | | 24|of subsection B of this section, and provided the Secretary of the | | | arsid5046559 SENATE FLOOR VERSION - SB416 SFLR Page 8 ___________________________________________________________________________
1|Commissioners of the Land Office or designee a twenty-calendar-day | | | 2|period to provide a proposal for the acquisition or disposal of | | | 3|applicable real property. | | | 4| 2. The Secretary of the Commissioners of the Land Office or | | | 5|designee may decline to provide such a proposal; provided such | | | 6|notice of decline is communicated to the Office of Management and | | | 7|Enterprise Services in written or electronic form. Upon the | | | 8|reception of such notice of decline by the Office of Management and | | | 9|Enterprise Services, the twenty-calendar-day period otherwise | | | 10|required by this subsection shall be deemed to have expired. | | | 11| SECTION 2. This act shall become effective November 1, 2023. | | | 12|COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT | |February 16, 2023 - DO PASS | 13| | | | 14| | | | 15| | | | 16| | | | 17| | | | 18| | | | 19| | | | 20| | | | 21| | | | 22| | | | 23| | | | 24| | | | arsid5046559 SENATE FLOOR VERSION - SB416 SFLR Page 9