SENATE FLOOR VERSION - SB836 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 17, 2025 SENATE BILL NO. 836 By: Rader of the Senate and Tedford of the House An Act relating to right-of-way; amending 69 O.S. 2021, Section 1203, which relates to acquisition of lands or interests by purchase, donation, or condemnation; creating certain time limit for certain liability; updating statutory language; providing an effective date; and declaring an emergency . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 69 O.S. 2021, Section 1203, is amended to read as follows: Section 1203. (a) A. The Department shall have authority to acquire in fee simple in the name of the State of Oklahoma, by purchase, donation or condemnation, lands or such interest s therein as in its discretion may be necessary for the purpose of establishing, constructing , and maintaining state highways or relocations thereof, and facilitie s necessary or incident thereto, including borrow areas, channel changes , and deposits of rock, gravel, sand and other road building material for use in highway construction and maintenance. Such acquisition may be for immediate SENATE FLOOR VERSION - SB836 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 or future use. The Department may acquire reasonable amounts of land adjacent to its normal right -of-way for the purpose of screening unsightly areas adjacent to highways, landscaping safety , rest areas, and scenic overlook areas. (b) B. In determining the amount of land required , or width of right-of-way necessary for such state highways, the Department shall take into consideration the present and probable future needs in connection with maintaining and reconstructing the highways, and the prevention of traffic congestion and hazards. (c) C. Except in instances where there are nonresident owners, unknown heirs, imperfe ct titles, and owners whose whereabouts cannot be ascertained with reasonable diligence, the Department shall give the owner an opportunity to sell the necessary l ands or interests therein to the State of Oklahoma before resort to condemnation may be had. The Department may condemn such lands or interests therein in the following manner: The district judge of the county in which the real property may be situated, upon petition of either party, and after ten (10) days ’ notice to the opposite party, either b y personal service or by leaving a copy thereof at his usual place of residence with some member of his family over fifteen (15) years of age, or, in the case of nonresidents, unknown heirs or other persons whose whereabouts cannot be ascertained, by publi cation in two issues of a newspaper in general circulation in the county (the ten -day period to begin SENATE FLOOR VERSION - SB836 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 with the first publication), shall direct the sheriff of the county to summon three disinterested freeholders, to be selected by the judge as commissioner s, and who shall not be interested in a like question. The commissioners shall be sworn to perform their duties impartially and justly; and they shall inspect the real property and consider the injury which the owner may sustain by reason of the condemnation, and they shall assess the just compensation to which the owner is entitled; and they shall forthwith make a report in writing to the clerk of the court, setting forth the quantity, boundaries and just compensation for the property taken, and amount of injury done to the property, either directly or indirectly, which they assess to the owner, which report must be filed and recorded by the clerk. A certified cop y of the report may be transmitted to the county clerk of the county where the land lies, to be filed and recorded by the county clerk (without further acknowledgment or proof) in the same manner and with like force and effect as is provided for the recording of deeds. The procedure for service by publication as authorized herein shall be the sam e as provided by law for service by publication in civil actions, except summons need not be issued and served, and except as otherwise provided herein. (d) D. Immediately upon payment to the clerk of the court for the use of the owner the sum so assessed and reported to the court clerk as aforesaid, the Department shall thereby be authorized to enter upon the condemned premises, and remove and dispose of any SENATE FLOOR VERSION - SB836 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 obstructions thereon, by sale or otherwise. If the landowner shall refuse to deliver up possessio n to the Department, the court shall issue an order to the sheriff of the county to place the Department in possession thereof. (e) E. (1) 1. The report of commissioners may be reviewed by the district court, on written exceptions filed by either party i n the clerk’s office within thirty (30) days after the filing of such report, and the court, after hearing had, shall make such order therein as right and justice may require, either by confirmation, rejection or by ordering a new appraisement on good caus e shown. Provided, that in the event a new appraisement is ordered, the Department shall have the continuing right of possession obtained under the first appraisa l, unless and until its right to condemn has finally been determined otherwise; or either par ty may within sixty (60) days after the filing of such report file with the clerk a written demand for a trial by jury, in which case the amount of damages shall be assessed by a jury, and the trial shall be conducted and judgment entered in the same manne r as civil actions in the district court. If the party demanding such trial does not recover a verdict more favorable to the party than the assessment of the commissioners, all costs in the district court shall be taxed against the party. No owner upon w hom proper service by publication has been had, as provided in this title, shall be let in to defend after expiration of time for appeal or review of the report of SENATE FLOOR VERSION - SB836 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 commissioners as above provided has elapsed. Provided, that if, after the filing of excepti ons to the report of commissioners as hereinafter provided, the Department shall fail to establish its right to condemn such premises, or any part thereof, the lan downer shall be restored to possession of the premises, or part thereof, and the Department s hall pay for any damages sustained through the occupation by the Department, and if such damages cannot be determined by amicable settlement they shall be determined by jury trial in the same proceedings. (2) 2. Within ten (10) days after the Report of Co mmissioners is filed, the court clerk shall forward to the attorney of record for the condemnor, the attorney of record for each condemnee, and to all unrepresented condemnees, a copy of the commissioners ’ report and a notice, stating the time limits for f iling an exception or demand for jury trial as specified in paragraph (A) of Section 55 of Title 66 of the Oklahoma Statutes. The attorney of record for the condemnor shall provide the clerk of the court with the names and last-known addresses of the part ies to whom notice and the report of the commissioners shall be mailed, sufficient copies of the notice and report to be mailed, and pre -addressed, postage-paid envelopes. This notice shall be on a form prepared by the Court Administrator, which shall be approved by the Supreme Court, and shall be distributed to all clerks of the district court by the Court Administrator. If a party has been served by publication, the clerk SENATE FLOOR VERSION - SB836 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 shall forward a copy of the report of commissioners and notice of time limits for filing an exception or demand for jury trial to the last-known mailing address, if any, and shall cause a copy of the notice of time limits to be published in one issue of a newspaper qualified to publish legal notices, as defined in Section 106 of Title 25 of the Oklahoma Statutes. After issuing the notices provided herein the court clerk shall endorse on the notice form filed in the case the date and that a copy of the report together with the notice form filed in the case was forwarded to each condemnee and each attorney of record, or the date the notice was published in compliance with the provisions hereof. (3) 3. The time limits for filing an exception and de mand for jury trial, as prescribed in paragraph (A) of Section 55 of Title 66 of the Oklahoma Statutes, shall be calculated from the date the report of the commissioners is filed in the case. On failure of the court clerk to give notice within the time prescribed in paragraph (B) of Section 55 of Title 66 of the Oklahoma Statutes, the court, on application of any party, may extend the time for filing an exception to the report, or a demand for trial by jury for a period not to exceed twenty (20) days from the date the application is heard. (f) F. Either party aggrieved may appeal to the Supreme C ourt from the decision of the district court on exceptions to the report of commissioners, or jury trial; but such review or appeal shall not SENATE FLOOR VERSION - SB836 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 delay the prosecution of the work on such highway over the premises in question if the award of commissioners, or jury, as the case may be, has been deposited with the clerk for such owner, and in no case shall the Department be liable for the costs on such review or appeal unless the owner of the real property shall be adjudged entitled, upon either review or appeal, to a greater amount of damages than was awarded by the commissioners. The Department shall in all cases pay the cost of the commissioners ’ fees and expenses, for their services, as determined and ordered paid by the judge of the district court in which s uch case is pending, however, poundage fees and condemnation fees shall only be paid by the Department in the event of appeal resulting in a jury verdict in excess of the commissioners’ award, but under no circumstances shall any poundage fees or condemnation fees be assessed against the recipient of the award. And in case of review or appeal, a certified copy of the final order or judgment shall be transmitted by the clerk of the court, duly certified, to the proper county clerk, to be filed and recorded as hereinabove provided for the recording of the report, and with like effect. (g) G. When an estate is being probated, or a minor or incompetent person has a leg al guardian, the administrator or executor of the estate, or guardian of the minor or incompe tent person, shall have the authority to execute all instruments of conveyance provided for in this title on behalf of the estate, minor SENATE FLOOR VERSION - SB836 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 or incompetent person without other proceedings than approval by the judge of the district court endorsed on the instru ment of conveyance. (h) H. “Just compensation”, as used in this section, shall mean the value of the property taken, and in addition, any injury to any part of the property not taken. Any special and direct benefits to the part of the property not taken may be offset only against any injury to the property not taken. If only a part of a tract is taken, just compensation shall be ascertained by determining the difference between the fair market value of the whole tract immediately before the taking and th e fair market value of that portion left remaining immediately after the taking. (i) I. 1. In the event that the determination of just compensation of a property is less than the commissioners ’ award for such real property, any mortgagee or lien holder w ho received payment from the commissioners ’ award in an amount in excess of the finding of just compensation value of the real property taken will only be liable for and required to pay back to the condemnor no more than the difference between what was act ually received by the mortgagee or lien holder from the commissioners ’ award and the jury’s just compensation value. 2. In all respects a mortgagee or lien holder will only be liable to return to the condemnor any sums actually paid to and received by such party in excess of the determination of just SENATE FLOOR VERSION - SB836 SFLR Page 9 (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 compensation for the real property. The mortgagor would be and remain liable to the mortgagee or lien holder for the excess that is paid by the mortgagee or lienholder to the condemning authority. 3. The mortgagee or lien holder shall only be liable for and required to pay back to the condemnor the monies required in paragraph 1 of this subsection if such determinatio n of just compensation is made within one (1) year of the mortgagee or lien holder receiving payment from the commissioners ’ award. SECTION 2. This act shall become effective July 1, 2025. SECTION 3. It being immediately necessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval. COMMITTEE REPORT BY: COMMITTEE ON AERO NAUTICS AND TRANSPORTATION February 17, 2025 - DO PASS