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ENGROSSED SENATE
BILL NO. 416 By: Pemberton of the Senate
and
Moore of the House
An Act relating to public buildings and pu blic works;
amending 61 O.S. 2021, Sectio n 327, as amended by
Section 47, Chapter 238, O.S.L. 2022 (61 O.S. Supp.
2022, Section 327), which relates to procedures for
disposal or lease of certain real property; modifying
list of exemptions; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OK LAHOMA:
SECTION 1. AMENDATORY 61 O.S. 2021, Section 327, as
amended by Section 47, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2022,
Section 327), is amended to read as follows:
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 prop erty subject to its jurisdiction, or lease,
purchase or otherwise acquire real property 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 department, board, commission,
institution, agency or entity of state government.
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B. 1. Every state agency shall request the Office of
Management and Enterprise Services to dispose of rea l property upon:
a. legislative authorization,
b. authorization by the Long-Range Capital Planning
Commission, or
c. a determination, in writing, by the Office of
Management and Enterprise Servi ces or the state agency
that a parcel of real property subject to its
jurisdiction is no long er needed.
2. Upon the request of the state agency to dispose of real
property, the Office of Management and Enterprise Services shall
estimate the value of the property, and:
a. for properties with an estimated value of gre ater than
Twenty-five Thousand Dollars ($25,000.00), obtain at
least one complete appraisal made by a person
certified by the Real Estate Appraiser Board of the
Oklahoma Insurance Department, wh o shall ascertain:
(1) the present fair value of the property,
(2) the present value of the i mprovements 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
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published for at least one (1) day in a newspaper of
general statewide circulatio n authorized to publish
legal notices, and weekly for thr ee (3) consecutive
weeks in a newspaper of general circulation published
in the county or counties in which the property is
located. The notice shall contain the 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 than ninety
percent (90%) of the apprais ed value of the real
property; provided, in lieu of such procedure, the
information may be published electronically on the
Office of Management and Enterprise Services’ website
if the notice of sale an d instructions on accessing
the public information are published in a newspaper of
general circulation in the co unty or counties in which
the property is located weekly for three (3)
consecutive weeks,
c. offer the property through electronic auction, public
auction or sealed bids withi n three (3) weeks after
the last publication of the notice. The property
shall be sold to the highest bidder. The Office of
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Management and Enterprise Service s 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,
d. if the property is being disposed of in compliance
with Section 908 of Title 62 of the Oklahoma Sta tutes,
the Office may auction the property at public o r
electronic auction provided proper public no tice 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 authorized to reject all
bids,
e. if the property has an es timated value of less than
Twenty-five Thousand Dollars ($25,000.00), the Office
of Management and Enterprise Services may establish
the value through market co mparison and may dispose of
the property based on estimated va lue without
obtaining a certified appraisal; provided, however,
the sale shall comply with all other requirements o f
statute, and
f. if the property is landlocked, the Office of
Management and Enterprise Services may offer the
property through indirect sale to the adjacent
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property owner for not less than ninety percent (90%)
of fair market value, as determined in com pliance with
this section. All sales costs, including any required
surveys and appraisals, shall be at the expense of the
buyer.
3. The cost of the appraisal required by the provisions of this
section, together with other necessary expenses incurred pursu ant to
this section, shall be paid by the state agency for which the real
property is to be sold from funds available to the state agency for
such expenditure. All monies received from the sale o r 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 O ffice of Management
and Enterprise Services shall review and ap prove 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 not ice of transaction approval to
the state agency. Prior to approval, a state agency shall provide
documents to the Off ice and provide reference to statutory or other
legal authority of the state agency to lease or acquire real
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property, or lease, dispose o f or transfer state-owned real
property. If the state agency i ntends to lease or acquire real
property, the state age ncy 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 transac tion approval or disapproval to th e state
agency.
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, institutions comprising The
Oklahoma State System of Higher Education, or district 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 p roperty
subject to the jurisdiction of the Commissioners of the Land Office.
2. Each state agency shall, within thirt y (30) days of the
closing date for lands newly acquired, provide to the Office a list
of records, deeds, abstracts and other title instru ments showing the
description of and relating to any and all such lands or interests
therein.
3. The provisions of pa ragraph 2 of this subsection shall apply
to all lands of public trusts having a state agency as the primary
beneficiary, but shall not app ly to lands of municipalities,
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counties, school districts, or agencies thereof, or D epartment 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 authorized by law, to sell, lease, or
otherwise dispose of any real property owned by the state.
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 section may provide services to
sell, transfer, trade or purchase real property for other state
agencies.
H. The Director of the Office of Management and En terprise
Services shall, pursuant to the Administrative Procedures Act,
promulgate rules to effect procedures necessar y 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, the Oklahoma
Historical Society, the Oklaho ma Department of Transportation , the
Oklahoma Turnpike Authority, institutions comprising The Oklahoma
State System of Higher Education, and the Department of Wildlife
managed lands shall be exempt from the application of this section.
The Grand River Dam Authority and its lands shall be exempt from the
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application of this section for any real property disposed of prior
to November 1, 2006.
J. Unless otherwise provided for by l aw, the procedures
established pursuant to this section for the sale or exchange of
real estate or personal 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 E nterprise
Services shall contract with experts, professionals or consultants
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 promulg ated 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 su bject to its jurisdiction,
or lease, purchase or otherwise acquire rea l 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 Commissi oners of the Land Office, or designee,
all information collected pursu ant to subparagraph a of paragraph 2
of subsection B of this section, and provided the Secretary of the
Commissioners of the Land Office or designee a twenty-calendar-day
period to provide a proposal for the acquisition or disposal of
applicable real prope rty.
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2. The Secretary of the Commissioners of the Land Office or
designee may decline to provide such a proposal; provided such
notice of decline is communicated to the Office of Mana gement and
Enterprise Services in written or electronic form. Upon the
reception of such notice of decline by the Office of Management and
Enterprise Services, the twenty-calendar-day period otherwise
required by this subsection shall be deemed to have ex pired.
SECTION 2. This act shall become effective November 1, 2023.
Passed the Senate the 13th day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2023.
Presiding Officer of the House
of Representatives