SENATE FLOOR VERSION - SB952 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 9, 2023 SENATE BILL NO. 952 By: Kidd An Act relating to county surplus equipment; am ending 19 O.S. 2021, Section 421, which relates to disposition of certain county property to be ent ered in minutes; raising value of certain equipment that is entered into certain meeting minutes; amend ing 19 O.S. 2021, Section 421.1, which relates to sale of certain county property; raising value of equipment and adding equipment eligible to be sold or traded in using certain procedures; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 19 O.S. 2021, Section 421, is amended to read as follows: Section 421. From and after the effectiv e date of this act After November 1, 2009, each board of county commissioners of the several counties in the state shall within thirty (30) days after the disposition of a ny tools, apparatus, machine ry, and equipment belonging to the county or leased or ot herwise let to it or any department thereof, the original cost of which is more than Five Hundred Dollars ($500.00) Two Thousand Five Hundred Dollars ($2,500.00), whether sold, exchanged, junked, leased or let where authorized by statute, shall enter, or cause to be entered, in the SENATE FLOOR VERSION - SB952 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 minutes of the proceedings of the board the fact of such disposition, including complete description of ite m, serial number, the date property was acquired, the name and address of the person or firm from whom property was acquired, the cost price at time of acquisition or contract price if acquired under lease -rental agreement, the date of disposition, the nam e and address of the person or firm to whom property transferred, the price received therefor and the reason fo r disposition. SECTION 2. AMENDATORY 19 O.S. 2021, Section 421.1, is amended to read as follows: Section 421.1. A. The board of county commissioners is he reby authorized to use any tools, apparatus, machinery or equipment belonging to the county, the original cost of which ex ceeded Five Hundred Dollars ($500.00) Two Thousand Five Hundred Dollars ($2,500.00), as a trade-in on a cash purchase or lease purchas e of any other tools, apparatus, machinery or equipment. B. To establish an appraise d value for an item to be sold at public auction or traded in, the purchasing agent may refer to an industry-recognized appraisal manua l for used construction equipment to estimate the value of the item being sold, or obtain appraisal quotes from at least two vendors in the business of selling items like the one being sold. C. Except when such items are disposed of pursuant to subsection E, F or I of this section, the foll owing procedures shall SENATE FLOOR VERSION - SB952 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 be used for the sale, by the board of county commissioners, of any tools, apparatus, machinery or equipment, the original cost of which exceeded Five Hundred Dollars ($500.00) Two Thousand Five Hundred Dollars ($2,500.00) or any information technology hardware or software having an original cost of Five Hundred Dolla rs ($500.00) or more, belonging to the county: 1. The board of county commissioners shall give notice of such sale by publication in a newspaper of general paid circulati on in the county for two successive weekly issues; 2. Bids for such tools, apparatus, machinery or equipment on sale shall be in writing, sealed and delivered to the county clerk of such county; 3. At the next regular meeting of the board of county commissioners after the expiration of fifteen (15) days from the date of first publication of notice of the sale, the board of county commissioners shall open such bids and award such tools, apparatus, machinery or equipment to the highest and best bidder with the option of rejecting all bids; and 4. The board of county commissioners may hold a public auction or use an Internet auction, which may include online bidding, in lieu of advertising for sealed bids as provided above . Such auction shall be advertised as provided herein. D. A board of county commissioners may sell any materi als, tools, apparatus, machinery or equipment to a tribal governmental SENATE FLOOR VERSION - SB952 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 entity or state agency, if the agency is subject to the Oklahoma Central Purchasing Act. The board of county commissioners may purchase materials, tools, apparatus, machinery or equipm ent from a state agency, if the agency is subject to the Oklahoma Central Purchasing Act. E. The board of county commissioners may, by resolutio n, enter into an agreement with any tribal governmental entity or other county or political subdivision for the purpose of selling, transferring, trading or otherwise disposing of equipment or materials at a price agreed upon by both governing bodies. Transactions made pursuant to this subs ection shall not be subject to the requirements in subsection C of this sec tion. F. Advertisement of surplus property consigned to sell at a Circuit Engineering District auction shall be provided by the auction company under contract to conduct the sale. Advertising shall be provided to attract the most potential buyers. Adver tising media may include, but not be limited to, sale flyers, newspapers, radio, television, and Internet postings. G. Pursuant to the authority of Section 1 of this title, boards of county commissioners shall have authority, under such statute and in consideration of the procedures in this section to sell real property belonging to the county without declaring such property surplus under the foll owing conditions: SENATE FLOOR VERSION - SB952 SFLR Page 5 (Bold face denotes Committee Amendments) 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. A certified appraisal of the county property shall be performed to determine the market v alue of the property and accepted by the board of county commissioners; 2. After acceptance of the certified appraisal, the board of county commissioners shall, pursuant to the req uirements of this section, give notice of such sale by publication in a new spaper of general paid circulation in the county for two successive weekly issues; 3. Bids for the real property shall be in writing, sealed and delivered to the county clerk of su ch county; 4. At the next regular meeting of the board of county commissioners after the expiration of fifteen (15) days from the date of first publication of notice of sale, the board of county commissioners shall open such bids; 5. A successful bid mus t be no less than the market value of the real property to be considered by the board of county commissioners for acceptance. The board of county commissioners reserves the right to reject any and all bids; 6. If more than one bid is above the market val ue of the real property, the board of county commissioners shall have the r ight to compel the potential buyers of the real property who have bid above the market amount to enter into public auction conducted by the chairman of the board of county commissio ners after the opening of such bids, to establish the highest bid for the p roperty in order to SENATE FLOOR VERSION - SB952 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 assure that the county is receiving adequate consideration for the property; 7. A majority vote of the board of county commi ssioners shall be required to determ ine the successful bidder of the real property. Upon awarding the bid, eit her through sealed bid or by conducting a public auction of those bidders who bid more than the market value of the real property, the board of c ounty commissioners shall have the right to pledge the occupied property, using an irrevocable bond or letter of credit, as provided for in paragraph 10 of this subsection, as collateral in order to finance bonds to purchase other real property or build a replacement building, or both; 8. If the sale price is less than the estimated cost of new land purchase or construction, then said sales contract shall be contingent upon the public approval of bond funding or other authorized funding to allow the comple te payment of the contemplated project; 9. The board of county commissioners shall have authority pursuant to paragraphs 5 and 6 of Section 1 of this title to make any order concerning the sale of such property contingent upon a closing date in the future in order to continue to use said re al property until a replacement building is completed. Upon completion of the replacement building, the board of county commissioners shall execute all documents and title transfers pertaining to said real property to the successful bidder; SENATE FLOOR VERSION - SB952 SFLR Page 7 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 10. The successful bidder shall execute an irrevocable bond or letter of credit with a s urety company or bank licensed to do business in the State of Oklahoma and organized under the corporate laws of the State of Oklahoma and regist ered with the Secretary of State of Oklahoma equal to the amount of the purchase price of the real property within fifteen (15) days of awarding of the bid. Failure to provide either an irrevocable bond or letter of credit in favor of the board of county commissioners within said time limitation shall act as a rejection and cancellation by the board of the award of bid and said board may, at that point, enter into a contract with any secondary or subsequent bidder that meets the aforementioned qualificatio ns without further notice; and 11. If there are no bids submitted or all submitted bids are less than the market value of the real property after the expiration of fifteen (15) days from the date of first publication of notice of sale, the board of county commissioners shall publish the not ice of sale and accept bids for a second time complying with the requirements of paragraphs 2 through 4 of this subsection. If there are no bids submitted or all submitted bids are less than the market value of the real property after the expiration of fi fteen (15) days from the date of second publication of notice of sale, the board of county commissioners shall have the right to sell real property, upon majority vote, without any bidding procedure or auction, directly to any person or entity for an amoun t that is not less than SENATE FLOOR VERSION - SB952 SFLR Page 8 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the highest bid previously submitted through any pr evious bidding procedures provided in this subsection. H. The board of county commissioners may solicit telephone bids for the removal of recycl able materials. I. The board of cou nty commissioners shall have the authority to trade in equipment to a vendo r or on statewide contract by acquiring used equipment values pursuant to subsection B of this section. SECTION 3. This act shall become effective November 1, 2023. COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT February 9, 2023 - DO PASS