Req. No. 441 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 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 OF OKLAHOMA 1st Session of the 59th Legislature (2023) SENATE BILL 41 By: Dahm AS INTRODUCED An Act relating to eminent domain; amending 27 O.S. 2021, Sections 5 and 17, which relate to local governments and resale of surp lus property; conforming language; modifying requirements for disposition of surplus property; defining terms; prohibiting taking of p rivate 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 strictly construe certain provisions; prohibiting expansion of eminent domain powers absent statutory authority; providing exception; prov iding for codification; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 27 O.S. 2021, Section 5, is amended to read as follows: Section 5. Any county, city, town, township , school district, or board of education, or any boa rd or official having charge of cemeteries created and existing under the laws of this state, shall have power to condemn lands in like manner as railroad companies, for highways, rights-of-way, building sites, cemeteries, public parks and other public purposes uses. Req. No. 441 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 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 2. AMENDATORY 27 O.S. 2021, Section 17 , is amended to read as follows: Section 17. A. In the event that a portion of the total amount of real property taken by eminent domain under the procedures set forth in Title 27 of the Oklahoma Statut es this title for a public purpose 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 proper ty, the portion of the real property that is not used shall be declared surplus and shall be first offered for resale returned at no cost to the person from whom the property was taken or the heirs of the person at the appraised value or the original price at which the acquiring agency or entity purchased that portion of the property, whichever is less. B. For purposes of complyin g with subsection A of this section, the agency or entity which acquired the real property by condemnation shall notify the form er landowner of the right of first refusal return of the surplus property by sending notice by certified mail, return receipt requested, to the last -known address of the person as provided by the person. If the mail is retu rned as not subject to delivery or the former landowner is deceased, notice of the right of first refusal return of the surplus property shall be provided by publication in a newspaper of general circulation in the community where the real property is loca ted. The notice shall Req. No. 441 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 contain the name of the former landowner and a legal description of the surplus property. If the offer to repurchase return the surplus property is not accepted within ninety (90 ) days from the date of notice or if the offer to repurchase is not accepted from the date the resale price on the property is determined , the property may then be sold at public sale. C. This section shall not apply to conveyances for redevelopment under Sections 38-101 through 38-123 of Title 11 of the Oklahoma Statutes. SECTION 3. NEW LAW A new section of law to be codifie d in the Oklahoma Statutes as Section 41 of Title 27, unless there is created a duplication in numbering, reads as follows: 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 one (1) year by a person with a legal or equitable right to occupy the property, b. that has been cited for housing, maintenance, building, or property code violations that have not been remedied within a reason able time after two notices to cure the noncompliance, or c. for which property taxes have not been paid for at least two (2) years; Req. No. 441 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. “Blighted property” means a structure that meets any two (2) of the following factors : a. was inspected by the appropri ate local government and cited for one or more enforceable housing, maintenance, building, or property code violations that affect the safety of the occupants or the public involving 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 the enforceable, cited, and uncured housing, maintenance, building, or property 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 payable in the year in which the condemnation is commenced, Req. No. 441 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 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 housing, maintenance, or building code violations have not been remedied within a reasonable time after two notices to cure the noncompliance, or d. was inspected and cited by the appropriate local government for any violation of health and safety codes; and 3. “Public use” means: 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 numbering, reads as foll ows: A. Private property may not be take n or damaged by a condemning authority unless the taking or damage is 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. Req. No. 441 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 B. In cases where addressing blight is the public use provided by the condemning authority, the 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 public use stated in the petition for condemnation; and 2. The public use stated in the petition for condemnation cannot be accomplished by using or acquiring property that offers similar access with the consent of the ow ner of the similar property without undue financial burden. C. The owner of private property being condemned for blight 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 fulfill 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 expand 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. Req. No. 441 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 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 5. This act shall become effective November 1, 2023. 59-1-441 TEK 12/15/2022 3:16:33 PM