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SENATE FLOOR VERSION
April 8, 2025
ENGROSSED HOUSE
BILL NO. 1420 By: West (Josh) of the House
and
Bergstrom of the Senate
An Act relating to state government; amending 74 O.S.
2021, Section 61.8, which relates to reduction of
property owned and leased by the state; modifying
exemption from section; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. 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
assets and, whenever possible, eliminate the practice of state
agencies leasing real prop erty 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 privatization
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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 th e
Maintenance of State Buildings Revolving 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 beneficiary shall receive approval
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, board, 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 Management
and Enterprise Services to be within the auth ority of the Long-Range
Capital Planning Commission, the Director shall not approve the
purchase or construction and shall refer the request to the
Commission for action.
E. Prior to approval or referral pursuant to subsection C or D
of this section, the Office of Management and Enterprise Services
shall determine if the applicant entity can utilize already existing
state-owned real property as an alternative to leasing non -state-
owned real property or purchasing or constructing new real property.
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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 for Historic Preservation, or is
potentially of historical significance, the Office of Managem ent 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 having
the state as its beneficiary shall transfer any real property owned
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 the Long -Range
Capital Planning Commission. Any tr ansfer made without the prior
approval of the Long -Range Capital Planning Commission as r equired
by this subsection may be reversed by the Long -Range Capital
Planning Commission and if a transfer is reversed the agency, board,
commission, state beneficiary trust or other state government entity
to which the real property has been impermissibly transferred shall
take such actions to convey the subject property to the entity from
which the asset was acquired not later than thirty (30) days from
the date an order for such transfer is entered by the Long -Range
Capital Planning Commission. The Comm ission shall not approve any
transfer unless proceeds from the sale shall be deposited within the
Maintenance of State Buildings Revolving Fund as established by
Section 908 of Title 62 of the Oklahoma Statutes.
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G. By February 1 of each year, the Office of Management and
Enterprise Services shall publish 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 Buildings Revolving Fund and showing the manner
in which deferred maintenance needs are being met. The report 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 following or
their lands, properties, buildings, funds or reve nue:
1. The Oklahoma Ordnance Works Authority;
2. The Commissioners of the Land Office;
3. The Oklahoma Department of Transportation; and
4. The Oklahoma Turnpike Authority ; and
5. The Grand River Dam Authority .
I. The Director of the Office of Manag ement 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 ow nership of the underutilized
property undesirable and the property has been offered throu gh two
public auctions or sealed bids and no viable bids were received. If
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the Long-Range Capital Planning Commission approves the liquidation
of the property, the Of fice of Management and Enterprise 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 Oklahoma
Statutes.
SECTION 2. This act shall become effective November 1 , 2025.
COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND GOVERNMENT
RESOURCES
April 8, 2025 - DO PASS