ENGR. H. B. NO. 4067 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED HOUSE BILL NO. 4067 By: Wallace of the House and Hall of the Senate An Act relating to state property; amending 62 O.S. 2021, Section 908, as amended by Section 1, Chapter 188, O.S.L. 2023 (62 O.S. Sup p. 2023, Section 908), which relates to the Oklahoma State Government Asset Reduction and Cost Savings Program; modifying reven ue source for the Maintenance of State Buildings Revolving Fund; amending 74 O.S. 2021, Section 61.8, which relates to long -range capital planning; directing certain liquidation proceeds to the Legacy Capital Financing Fund; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 62 O.S. 2021, Section 908, as amended by Section 1, Chapter 188, O.S.L. 2023 (62 O.S. Supp. 2023, Section 908), is amended to read as follows: Section 908. A. There is hereby establish ed the Oklahoma State Government Asset Reduction and Cost Savings Program. B. No later than December 31 each year, the Director of the Office of Management and Enterprise Services shall publish a comprehensive report detailing state -owned properties. C. The report mandated in accordance with the provisions of this section shall list th e five percent (5%) most underutilized ENGR. H. B. NO. 4067 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 state-owned properties. The report shall describe the value of properties falling within the description in this subsection, assess the potential for purchase should the properties be offered for sale, and describe the impact on local-level tax rolls in the event the properties are purchased by a nongovernmental entity. D. The Director of the Office of Management and Enterprise Services shall promulgate rules establishing procedures by which each state agency, board, commission, and public trust having the state as a beneficiary, excluding those otherwise exempted under Section 327 of Title 61 of the Oklahoma Statutes, shall submit the necessary data to the Office of Management and Enterprise Services for the development of this report. E. State agencies, boards, commissions, and public trusts having the state as a beneficiary shall comply with procedures promulgated pursuant to the ter ms of this section. F. The report and data collected pu rsuant to this section shal l be published as a data feed on the data.ok.gov website. G. In addition to the requirements of subsection C of this section, the Office of Management and Enterprise Servic es may make recommendations for the sale of other state -owned properties based upon the value of the property and the potential for net gain for the state based upon the data obtained for the Oklahoma State Government Asset Reduction and Cost Savings Progr am. ENGR. H. B. NO. 4067 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 H. There is hereby created the Maintenance of State Buildings Revolving Fund. The fund shall be a continuing fund, not subject to fiscal year limitations, and shall serve as the depository for proceeds from the sale of state -owned properties pursuant to the Oklahoma State Government Asset Reduction and Co st Savings Program. The fund shall further consist of monies appropriated thereto and other funds designated for deposit therein consist of all monies received and directed for deposit in accordance with law. All monies accruing to the credit of the fund are hereby appropriated and may be expended exclus ively for maintaining and repairing state- owned properties and buildings pursuant to the procedur es set forth in Section 901.1 of Title 62 of the Okl ahoma Statutes and for acquisition of information technology tools or resources tha t state agencies, boards, commissions, and public trusts having the state as a beneficiary shall use in carrying out their obligations in accordance with this act. The tota l expenditure for information technology resources shall not exceed One Hundred Tho usand Dollars ($100,000.00). Expenditures from the fund shall b e made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Directo r of the Office of Management and Enterprise Services for approval and payment. Ex penditures from the Maintenance of State Buildings Revolving Fun d shall be detailed in a data feed and made available through the data.ok.gov web portal. ENGR. H. B. NO. 4067 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I. The Director of the Office of Management and Enterprise Services shall notify entities found by th e Office to be out of compliance with the reporting provisions o f this section in writing. J. This section shall not be applicable to the foll owing or their lands, properti es, buildings, funds, or revenue: 1. The Oklahoma Ordnance Works Authority; 2. The Commissioners of the L and Office; and 3. Institutions com prising The Oklahoma State System of Higher Education, except as to the data reporting requirements in this section. K. The report required in subsection B of this section shall include an indication of whether a proper ty is owned by the Oklahoma Historical Society, is listed on the National Register of Historic Places or with the Natio nal Trust for Historic Preserv ation, or is potentially of historical significance. The Office of Management and Enterprise Services shal l notify the Oklahoma Historical Soc iety and obtain its appro val prior to the sale of any such property. SECTION 2. AMENDATORY 74 O.S. 2021, Section 61.8, is amended to read as follows: Section 61.8 A. The Long-Range Capital Planning Commission shall work to decrease the amount of property owned by Oklahoma state government, return state -owned property to private sector ownership, better maintain and utilize the state 's needed capital ENGR. H. B. NO. 4067 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 assets and, whenever possible, eliminate the practice of state agencies leasing real property not owned by the state. B. Each year, the Director of the Office of Management and Enterprise Services at the direction of the Long -Range Capital Planning Commission, shall take action to approve the privat ization of state-owned real property as identified pursuant to the Oklahoma State Government Asset Reduction and Cost Savings Program. Proceeds from the liquidation of real properties shall be deposited into the Maintenance of State Buildings Revolving Fu nd Legacy Capital Financing Fund. C. Prior to entering into or renewing a lease for real property, each state agency, board, commission, and public trust having the State of Oklahoma as a be neficiary shall receive a pproval for entering into the lease from the Office of Management and Enterprise Services. D. Prior to making a purchase of real property or constructing a building, each state agency, bo ard, commission, and public trust having the State of Oklahoma as a beneficiary shall receive approval for the purchase or construction from the Director of the Office of Management and Enterprise Services; provided, if such purchase or construction is deemed by the Director of the Office of Manage ment and Enterprise Servi ces to be within the authority of the Lo ng-Range Capital Planning Commission, the Director shall not approve the ENGR. H. B. NO. 4067 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 purchase or construction and shall refer the request to the Commission for action. E. Prior to approval or referral p ursuant to subsection C o r D of this section, the Office of Manag ement and Enterprise Services shall determine if the applicant entity can utilize already existing state-owned real property as an alternative to le asing non-state- owned real property or purc hasing or constructing ne w real property. If such existing state -owned real property is owned by the Oklahoma Historical Society, is listed on the National Register of Historic Places or with the National Trust f or Historic Preservation, or is potentially of historical significan ce, the Office of Management and Enterprise Services shall notify the Oklahoma Historical Society and obtain its approval prior to approving an application for its reuse. F. No state agency, board, commission or public trust havin g the state as its benefi ciary shall transfer any real property o wned by the agency, board, commission or trust to any other state agency, board, commission, state beneficiary trust or any public or private entity unless the transfer is first approved by t he Long-Range Capital Planning Commission. Any transfer made wit hout the prior approval of the Long-Range Capital Planning Commission as required by this subsection may be reversed by the Long -Range Capital Planning Commission and if a transfer is reverse d the agency, board, commission, state beneficiary trust or other state government entity to which the real property has been impermissibly transferred shall ENGR. H. B. NO. 4067 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 take such actions to convey the subject property to the entity from which the asset was acquired n ot later than thirty (30) days from the date an order for such tr ansfer is entered by the Long-Range Capital Planning Commission. The Commission shall not approve any transfer unless proceeds from the sale shall be deposited within the Maintenance of State Buildings Revolving Fun d as established by Section 908 of Title 62 of the Oklahoma Statutes Legacy Capital Financing Fund. G. By February 1 of each year, the Office of Management and Enterprise Services shall p ublish a report for the preceding calendar year listing the parcels of previously state-owned property sold, detailing the reduction in the amount of space leased by the state, describing the source of funds and expenditures from the Maintenance of State B uildings Revolving Fund and showing the manner in which deferred mai ntenance needs are being met. The repor t shall be provided to the Governor, Speaker of the House of Representatives, President Pro Tempore of the Senate and placed on the documents.ok.gov web portal. H. This section shall not be applicable to the followi ng or their lands, properties, buildings , funds or revenue: 1. The Oklahoma Ordnance Works Authority; 2. The Commissioners of the Land Office; 3. The Oklahoma Department of Transportati on; and 4. The Oklahoma Turnpike Authority. ENGR. H. B. NO. 4067 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I. The Director of the Office of Management and Enterprise Services may make recommendations to the Long -Range Capital Planning Commission for liquidation of underutilized properties that have environmental issues, create a liability for the state, or create expenses that make the continued ownership of the underutil ized property undesirable and the property has been offered through two public auctions or sealed bids and no viable bids were received. If the Long-Range Capital Planning Commission approves the liquidation of the property, the Office of Management and E nterprise Services may accept a bid of less than ninety percent (90%) of the appraised value in accordance with Section 327 of Title 61 of the Oklah oma Statutes. SECTION 3. This act shall becom e effective November 1, 2024. Passed the House of Representatives the 19th day of February, 2024. Presiding Officer of the House of Representatives Passed the Senate the ___ day of __________ , 2024. Presiding Officer of the Senate