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SENATE FLOOR VERSION
April 7, 2021
AS AMENDED
ENGROSSED HOUSE
BILL NO. 2863 By: Wallace of the House
and
Thompson of the Senate
An Act relating to public buildings and public works;
amending 74 O.S. 2011, Section 129.4, as renumbered
by Section 39, Chapter 209, O.S.L. 2013, and as last
amended by Section 2, Chapter 204, O.S.L. 2019 (61
O.S. Supp. 2020, Section 327), which relates to
disposal or lease of certain state -owned real
property; limiting certain real property
transactions; making completion of certain process
prerequisite to cert ain procedures; requiring certain
information be provided to the Commissioners of the
Land Office; providing certain calendar day period
for certain proposals for acquisition or disposal;
authorizing the Commissioners of the Land Office to
provide notice of decline; providing notice of
decline be provided in certain forms; providing that
notice of decline ends calendar day period; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE O F THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2011, Section 129.4, as
renumbered by Section 39, Chapter 209, O.S.L. 2013, and as last
amended by Section 2, Chapter 204, O.S.L. 2019 (61 O.S. Supp. 2020,
Section 327), is amended to read as follows:
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Section 327. A. Unless procedures for state agency real
property transactions are otherwise specifically provided for by
law, no state agency shall sell, lease, exchange, or otherwise
dispose of such real property subject to its jurisdiction, or lease,
purchase or otherwise acquire real p roperty subject to its
jurisdiction, except as authorized by subsection L of this section
and as otherwise provided for in this section. As used in this
section, "state agency" means any departm ent, board, commission,
institution, agency or entity of stat e government.
B. 1. Every state agency shall request the Office of
Management and Enterprise Services to dispose of real property upon:
a. legislative authorization,
b. authorization by the Lon g-Range Capital Planning
Commission, or
c. a determination, in writing, by the Office of
Management and Enterprise Services or the state agency
that a parcel of real property subject to its
jurisdiction is no longer needed.
2. Upon the request of the stat e agency to dispose of real
property, the Office of Managemen t and Enterprise Services shall:
a. obtain at least one complete appraisal made by a
person certified by the Real Estate Appraiser Board of
the Oklahoma Insurance Department, who shall
ascertain:
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(1) the present fair value of the property,
(2) the present value of the improvements on such
property, and
(3) the actual condition of the improvements on the
property,
b. after completion of the provisions of subsection L of
this section, cause notice of such sale to be
published for at least one (1) day in a new spaper of
general statewide circulation authorized to publish
legal notices, and weekly for three (3) consecutive
weeks in a newspaper of general circulation published
in the county or counties i n which the property is
located. The notice shall contain th e legal
description of each parcel of real property to be
offered for sale, the appraised value thereof, the
time and location of the sale or opening of the bids,
and terms of the sale including the fact that no
parcel of property shall be sold for less th an ninety
percent (90%) of the appraised value of the real
property; provided, in lieu of such procedure, the
information may be published electronically on the
Office of Management and Enterpris e Services' website
if the notice of sale and instructions on accessing
the public information are published in a newspaper of
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general circulation in the county or counties in which
the property is located weekly for three (3)
consecutive weeks,
c. offer the property through public auction or sealed
bids within three (3) weeks after the last publication
of the notice. The property shall be sold to the
highest bidder. The Office of Management and
Enterprise Services shall not accept a bid of less
than ninety percent (90%) of the average appraised
fair value of the property and the improvements on
such property, and
d. if the property is being disposed of in compliance
with Section 908 of Title 62 of the Oklahoma Statutes,
the Office may auction the property at public or
electronic auction provided proper public notic e is
given in compliance with this section and the property
has been approved for liquidation by the Long -Range
Capital Planning Commission. The Office of Management
and Enterprise Services is a uthorized to reject all
bids.
3. The cost of the appraisal r equired by the provisions of this
section, together with other necessary expenses incurred pursuant to
this section, shall be paid by the state agency for which the real
property is to be sold fr om funds available to the state agency for
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such expenditure. All monies received from the sale or disposal of
the property, except those monies necessary to pay the expenses
incurred pursuant to this section, shall be deposited in the
Maintenance of State Buildings Revolving Fund unless otherwise
provided by law.
4. The Office of Management and Enterprise Services may dismiss
from consideration any appraisal found to be incomplete or flawed.
C. Unless otherwise provided by law, the Office of Management
and Enterprise Services shall review and approve state agency real
property transactions. A state agency shall not lease or acquire
real property, or lease, dispose of or transfer state -owned real
property until the Office provides notice of transaction ap proval to
the state agency. Prior to approval, a state agenc y shall provide
documents to the Office and provide reference to statutory or other
legal authority of the state agency to lease or acquire real
property, or lease, dispose of or transfer state -owned real
property. If the state agency intends to lease or acquire real
property, the state agency shall state the intended use of the real
property, and shall provide the Office with required telework
documentation. Within thirty (30) days of receipt, the Office shall
provide notice of transaction approval or di sapproval to the state
agency.
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D. The provisions of this section shall not apply to the lease
of office space or real property subject to supervision of the
Commissioners of the Land Office or d istrict boards of education.
E. 1. The Office of Management and Enterprise Services shall
maintain a comprehensive inventory of state -owned real property and
its use excluding property of the public schools and property
subject to the jurisdiction of the Commissioners of the Land Office.
2. Each state agency shal l, within thirty (30) days of the
closing date for lands newly acquired, provide to the Office a list
of records, deeds, abstracts and other title instruments showing the
description of and relat ing to any and all such lands or interests
therein.
3. The provisions of paragraph 2 of this subsection shall apply
to all lands of public trusts having a state agency as the primary
beneficiary, but shall not apply to lands of municipalities,
counties, school districts, or agencies thereof, or Department of
Transportation rights-of-way.
4. A state agency that sells or otherwise disposes of land
shall notify the Office within thirty (30) days of the disposition
closing date.
F. This section shall not be construed to authorize any state
agency, not otherwise author ized by law, to sell, lease, or
otherwise dispose of any real property owned by the state.
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G. The Office of Management and Enterprise Services and the
Secretary of the Commissioners of the Land Office, or designee, as
provided in subsection L of this sect ion may provide services to
sell, transfer, trade or purchase real property for other state
agencies.
H. The Director of the Office of Management and Enterprise
Services shall, pursuant to the A dministrative Procedures Act,
promulgate rules to effect proc edures necessary to the fulfillment
of its responsibilities under this section.
I. The Oklahoma Ordnance Works Authority and its lands, and the
Northeast Oklahoma Public Facilities Authority, th e Oklahoma
Historical Society, the Oklahoma Department of Tra nsportation and
the Oklahoma Turnpike Authority , and the Department of Wildlif e
managed lands shall be exempt from the application of this section.
The Grand River Dam Authority and its lands sh all be exempt from the
application of this section for any real property disposed of prior
to November 1, 2006.
J. Unless otherwise provided for by law, the procedures
established pursuant to this section for the sale or exchange of
real estate or persona l property as authorized pursuant to Sections
2222 and 2223 of Title 74 of the Oklahoma Statutes shall be followed
unless the sale is to an entity of state government.
K. The Director of the Office of Management and Enterprise
Services shall contract with experts, professionals or consultants
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as necessary to perform the duties of the Office. Selections shall
be made using the qualifications -based procedures established in
Section 62 of this title , and the rules promulgated by the Director
for the selection of construction managers and design consultants.
L. 1. No state agency shall sell, lease, exchange or otherwise
dispose of such real property subject to its jurisdiction, or lease,
purchase or otherwise acquire real property subject to its
jurisdiction, until such agency or the Office of Management and
Enterprise Services acting on the agency's behalf has presented to
the Secretary of the Commissioners of the Land Office , or designee,
all information collected pursuant to subparagraph a of paragraph 2
of subsection B of this section, and provided the Secretary of the
Commissioners of the Land Office or des ignee a twenty-calendar-day
period to provide a proposal for the acquisition or disposal of
applicable real property.
2. The Secretary of the Commiss ioners of the Land Office or
designee may decline to provide such a proposal, provided such
notice of decline is communicated to the Office of Management and
Enterprise Services in written or electronic form. Upon the
reception of such notice of decline b y the Office of Management and
Enterprise Services, the twenty -calendar-day period otherwise
required by the subsection shall be deemed to have expired.
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SECTION 2. This act shall become effective November 1, 2021.
COMMITTEE REPORT BY: COM MITTEE ON APPROPRIATIONS
April 7, 2021 - DO PASS AS AMENDED