SENATE FLOOR VERSION - SB994 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 23, 2021 SENATE BILL NO. 994 By: Dahm An Act relating to eminent domain; amending 27 O.S. 2011, Sections 5 and 17, which r elate to local governments and resale of surp lus property; conforming language; defining terms; prohibiting taking of private property unless for certain uses and with compensation; placing burden of proof on condemning authority; granting certain rights to private property owners; requiring court to stric tly construe certain provisions; proh ibiting expand of eminent domain powers absent statutory authority; providing exception; prov iding for codificatio n; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 27 O.S. 2011, Section 5, is amended to read as follows: Section 5. Any county, city, town, township, school dis trict, or board of education, or any board or offici al having charge of cemeteries created and existing under the laws of this state, sh all have power to condemn lands in like manner as railroad companies, for highways, rights-of-way, building sites, cemet eries, public parks and other public purposes uses. SECTION 2. AMENDATORY 27 O.S. 2011, Section 17, is amended to read as follows: SENATE FLOOR VERSION - SB994 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 17. A. In the event that a portion of the total amount of real property taken by eminent domain unde r the procedures set forth in Title 27 of the Oklahoma Statutes for a public purpose use as described in Secti on 9 of Title 27 of the Oklahoma Statutes this title is not used for the purposes uses for which it was condemned or for another public use by the agency or other entity which acquired the real prop erty, the portion of the real property that is not used shall be declared surplus and shall be first offered for resale to the person from whom the property was taken or the heirs of the person at the appraised valu e or the original price at which the acquiring agency or entity purchased that portion of the property, whichever is less. B. For purposes of complying with subsection A of this section, the agency or entity which acquired the real property by condemnation shall notify the former landowner of th e right of first refusal by sending notice by certified mail, return rece ipt requested, to the last-known address of the person as provided by the person. If the mail is returned as not subject to delivery or the former landowner is deceased, notice of th e right of first refusal shall be provided by publication in a newspaper of general circulation in the community where the real property is located. The notice shall contain the name of the former landowner and a legal description of the surplus property. If the offer to repurchase is not accepted within ninety (90) days from the date of SENATE FLOOR VERSION - SB994 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 notice or if the offer to repurchase is no t accepted from the date the resale price on the property is determined, the property m ay then be sold at public sale. C. This section shall not apply to conveyances for redevelopment under Sections 3 8-101 through 38-123 of Title 11 of the Oklahoma Statutes. SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 41 of Title 27, unless there is created a duplication in numb ering, reads as follo ws: For the purposes of this act: 1. “Abandoned property” means property: a. that has been substantially unoccupied or unused for any commercial or residential purpose for at least o ne (1) year by a person with a legal or equitable right to occupy the property, b. has been cited for housing, maintenance or building code violations that have not been remedied within a reasonable time after two notices to cure the noncompliance, and c. for which property taxes have not been paid for at least two years; 2. “Blighted property” means a structure that: a. was inspected by the appropriate local governme nt and cited for one or more enforceable housing , SENATE FLOOR VERSION - SB994 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 maintenance, or building code violation s that affect the safety of the occupants or the public and involve one or more of the following: (1) a roof and roof framing element , (2) support walls, beams and headers, (3) foundation, footings and subgrade conditions, (4) light and ventilation , (5) fire protection including egress, (6) internal utilities including electricity, gas and water, (7) flooring and flooring elements, or (8) walls, insulation and exterior envelope , b. the satisfaction of th e enforceable, cited and uncured housing, maintenance and building code violations listed in subparagraph a of this paragraph cost more than fifty percent (50%) of the assessor’s taxable market value for the building, excluding land value, for property taxes pay able in the year in which the condemnation is commenced, and c. the housing, maintenance or building code violations have not been remedied within a reasonable time after two notices to cure the noncompliance; and 3. “Public use” means: SENATE FLOOR VERSION - SB994 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a. the possession, occupation, ownership and enjoyment of the land by the general public, or by public agencies , b. the possession, occupation and ownership of land necessary for operations of a public utility that serves the general public, c. the remediation of a blighted property, or d. the possession of an abandoned property. SECTION 4. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 42 of Title 27, unless there is created a duplication in numb ering, reads as foll ows: A. Private property may not be take n or damaged by a condemning authority unless the taking or damage i s necessary for a public use and with just compensation . The public purpose or public benefit of economic development including an increase in ta x base, tax revenues, employment or general economic health, does not constitute a public use. B. A condemning authority bears the burden of proving by clear and convincing evidence that: 1. The land, real estate, premises or other property the authority seeks to acquire is required for the pub lic use in the petition for condemnation; and 2. The public use iden tified in the petition for condemnation cannot be accomplished by using or acquiring other property with the consent of the owner. SENATE FLOOR VERSION - SB994 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. The owner of private property has a right to have a court determine whether private property is being taken for a public or private use, to remediate an abandoned property, to remediate blighted property, or if such taking is required to fulf ill the public use as stated in the petition for condemnation . The court shall strictly construe eminent domain statutes in favor of t he property owner and against the condemning authority. D. A governmental body subordinate to the state may not exercise, create, extend or expa nd a power of eminent domain in the absence of statutory authority. Additional procedures, remedies or limitations that do not deny or diminish the substantive and procedural rights and protections of property owners under this section may be provided by other law, ordinance or charter. SECTION 5. This act shall become effective November 1, 2021. COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY February 23, 2021 - DO PASS