Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB41 Latest Draft

Bill / Introduced Version Filed 12/15/2022

                             
 
 
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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.   
 
 
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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   
 
 
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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;   
 
 
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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,   
 
 
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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.   
 
 
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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.   
 
 
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SECTION 5.  This act shall become effective November 1, 2023. 
 
59-1-441 TEK 12/15/2022 3:16:33 PM