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SENATE FLOOR VERSION
February 27, 2024
AS AMENDED
SENATE BILL NO. 1780 By: Seifried of the Senate
and
Lepak of the House
An Act relating to the Department of Transportation;
amending 69 O.S. 2021, Section 1001, which relates to
the disposition of surplus property; directing
certain notice to be available online; removi ng
certain conditions on value of property; increasing
time period for certain response; modifying
procedures for sale of certain prop erty; updating
statutory language; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 69 O.S. 2021, Section 1001, is
amended to read as follows:
Section 1001. A. The Transportation Commi ssion shall have
authority to sell any lands, or interest therein, which may have
been acquired for highway purposes, or facilities necessary and
incident thereto, and any equipment, materials , or supplies which in
the opinion of the Commission are no longer service able, useful, or
necessary for the stat e highway system or the operation of the
Department of Transportation. Such authority shall be subject at
all times to the continuing right to the use of the lands by any
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entity operating a sewer, water , or gas system, telephone or
electrical services, and by public service corporations and rural
electric and telephone cooperatives for the construction,
reconstruction, maintenance, operation , and repair of their
facilities of service which may be upon the lands. Howe ver, any
such land which was acquired b y the Commission from a governmental
subdivision as a gift, or for a nominal consideration, may be
reconveyed to the governmental subdivision by the Commission, upon
repayment by the governmental subdivision to the Commission of a ny
consideration for the original conveyance.
B. Any surplus land whic h has been leased to a political
subdivision by the Commission may be sold and conveyed to the
political subdivision for the present fair market value as
determined by a competent appraisal and the political sub division
may have credited toward the purchase price of any such property the
lease payments which the political subdivision shall have previously
made to the Commission.
C. Except as otherwise herein provi ded, the lands, materia ls,
equipment, and supplies shall be sold for cash to the highest and
best bidder after notice by publication in a newspaper published in
the county where the land is situated, or where the materials,
equipment, or supplies are located, in two consecutive weekly issues
of the newspaper.
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D. 1. If the land originally comprised a partial taking ,
leaving an abutting remainder, then prior to conducting such
advertisement and solicitation of bids for the sale of any lands or
interests therein, the Commission sh all notify the person, firm, or
corporation which originally conveyed the property to the Commission
or present successor to the original remainder that same has been
declared surplus and is to be offered for sale. Such notice shall
be sent by registered mail addressed to the last -known address of
such person, firm, or corporation, with return receipt requested.
Such notice shall also be made available on the website of the
Department of Transportation . Such notice shall contain an offer to
sell such property to such person, firm, or corporation for an
amount not greater than the amount for which the property was
originally obtained by the Commission for a period of five (5) years
from the original taking. Following the five -year period, the sale
of such property may be offered a t fair market value. The amount of
the Commission’s requested purchase price based on such appraisal
shall be stated in the notice, and the The person, firm, or
corporation receiving such notice and offer s hall be informed
therein that unless such person , firm, or corporation notifies the
Commission in writing within thirty (30) ninety (90) days from the
date of receipt of the notice that the Commission ’s offer of sale is
accepted by such person, firm , or corporation, the Commission shall
proceed to sell the property at public auction as provided for in
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this section. After the expiration of thirty (30) ninety (90) days
from the date of receipt of the notice by the person, firm , or
corporation to whom it is a ddressed, if such perso n, firm, or
corporation has not notified the Commission in writing of the
acceptance of the Commission ’s offer of sale, the Commission shall
proceed to sell such property by public auction and no attempt to
accept the Commission ’s offer by such person, firm, or corporation
after the expiration of such thirty (30) ninety (90) days shall be
honored by the Commission. However, such person, firm , or
corporation may submit a bid at the public auction of the property
in the same manner as any other qualified bid der.
2. If the land to b e disposed of originally comprised a total
taking, leaving no abutting remainder, then such shall be sold to
the highest bidder, or as otherwise herein provided except that
then, prior to conducting such a dvertisement and solicitation of
bids for the sale of lands or interests therein, the Commission
shall notify the person , firm, or corporation which originally
conveyed the property to the Commission, or present successor. The
notice shall be sent b y registered mail addressed to the last-known
address of such person, firm, or corporation , with return receipt
requested. Such notice shall also be made available on the website
of the Department of Transportation . The notice shall contain an
offer to sell such property to such person, firm, or corporation
subject to the same conditions as set forth in paragraph 1 of this
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subsection. If such person, firm, or corporation has not notified
the Commission in writing of the acceptance of the Commission ’s
offer of sale, and if the land to be disposed of originally
comprised a total taking of less than three (3) ac res, leaving only
one abutting property owner of record, then prior to conducting such
advertisement and solicitatio n of bids for the sale of any such
lands or interest therein, the Commission shall notify the sole
abutting property owner of record to the taking that such has been
declared surplus and is to be offered for sale. Such notice shall
be sent by registered mail addressed to the last -known address of
such person, firm, or corporation, with return receipt requested.
Such notice shall also be made available on the website of the
Department of Transportation . Such notice shall contain an offer to
sell such property to such person, firm , or corporation subject to
the same conditions as set forth in paragraph 1 of this subsection.
3. For the purposes of this section, the Commission shall not
distinguish between persons from whom surplus lands or interest
therein were acquired by negotiated s ale or gift and persons from
whom such property was acquired by condemnation proceedings.
E. The Commission may , in its discretion, exchange any such
lands for other lands needed for highway purposes, or may lease or
rent any lands which are owned by t he Department, and are not
immediately necessary for highway purposes, on such terms as the
Commission determines for the best interests of the state.
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F. On an annual basis, for every parcel of land:
1. Owned by the Transportation Commission; and
2. Deemed surplus for ten (10) years or more,
the Commission shall submit a waiver request to the Federal Highway
Administration of the United States Department of Transportation
seeking exception from any federal regulation preventing the sale of
such land for less than fair market valu e.
G. When the Department of Transportation determines that any
equipment or vehicle becomes excess, obsolete, antiquated, unused ,
or otherwise surplus, the Department shall notify the Office of
Management and Enterprise Services in writing that such equipment or
vehicle is surplus. The notice shall identify:
1. The type, brand or make, and country of manufacture of the
equipment or vehicle;
2. The age of the equipment or vehicle including but not
limited to mileage;
3. Whether the equipment or vehicle is in good working
condition or not;
4. If the equipment or vehicle is not in good working
condition, whether it is in repairable condition at reasonable cost;
5. Original cost of the equipment or vehicle; and
6. Present value of the equipment or vehicle, if known.
The Office of Management and Enterprise Services, with any other
notice of surplus property, shall notify the eligible individuals or
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entities as provided in subsection H of this section of the
availability of the surplus property of the Depa rtment of
Transportation.
H. Prior to any advertised public auction or advertised sealed
bids to all individuals and entities elig ible for participation in
the surplus program, the Department, thirty (30) days prior to the
advertised auction date, shall offer, at fair mar ket value, the
equipment or vehicles to the individuals or entities, in the
following order of priority:
1. Other state agencies;
2. Political subdivisions of the state;
3. Rural fire departments located in this state; and
4. Rural water districts located in this state.
Any equipment or vehicles purchased pursuant to this subsection
shall be made available to the purchaser on the date of purchase.
I. The Department is authorized to act on behalf of the
Commission in transactions authorized pursuant to this section,
except as may be otherwise provided by rule or regulation of the
Commission; and, all prior transactions of the Department which are
otherwise in conformity with this sectio n are deemed authorized and
approved.
J. When the Department of Transportation determines that any
road or bridge materials or supplies become excess, unused, or
otherwise surplus, t he Department shall make such road or bridge
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material or supplies available to all governmental entiti es eligible
for participation in the sur plus program. The Department may be
reimbursed for any cost incurred in the recovery or storage of such
road or bridge material or supplies. The governmental entity
requesting the exces s, unused, or otherwise surplus road or bridge
materials or supplies shall retrieve such materials or supplies from
the Department of Transportation within one hundred eighty (180)
days from the completion of the project for which the materials or
supplies are declared excess or surplus.
The Department, upon request of a lo cal government, may transfer
surplus bridge beams to the local government f or use in the
construction or repair of public roadway bridges. The local
government shall not sell the surplus bea ms. Prior to the transfer,
the local government shall cause the surplus beams to be inspected
by a registered professional engineer. The local government shall
assume full responsib ility for the cost of tra nsporting the beams
and for the use of the beams including, but not limited t o, the
proper removal and disposal o f lead-based paint. The Department
shall retain the surplus beams for the requesting local government
for a period not exceeding one hundred eighty (180) days, after
which the Department may otherwise dispose of the surplus beams .
SECTION 2. This act shall bec ome effective November 1, 2024.
COMMITTEE REPORT BY: COMMITTEE ON AERONAUTICS AND TRANSPORTATION
February 27, 2024 - DO PASS AS AMENDED