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ENGROSSED SENATE
BILL NO. 1020 By: Howard and Bullard of the
Senate
and
Caldwell (Trey) of the
House
An Act relating to the Office of the State Treasurer;
amending 61 O.S. 2021, Section 327, as amended by
Section 47, Chapter 238, O.S.L. 2022 (61 O.S. Supp.
2024, Section 327), which relates to procedures for
state agency transactions; allowing Office of the
State Treasurer to make certain property
acquisitions; amending 74 O.S. 2021, Section 63,
which relates to the Office of Management and
Enterprise Services; conforming language; providing
for codification; providing an effective date; and
declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 61 O.S. 2021, Section 327, as
amended by Section 47, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2024,
Section 327), is amended to read as follows:
Section 327. A. Unless procedures for state agency real
property transactions are otherwise specifically provided for by
law, no state agency shall sell, lease, exchange, or otherwise
dispose of such real property subject to its jurisdiction, or lease,
purchase or otherwise acquire real property subject to its
jurisdiction, except as authorized by subsection L of this section
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and as otherwise provided for in this section. As used in this
section, “state agency” means any department, board, commission,
institution, agency or entity of state government.
B. 1. Every state agency shall request the Office of
Management and Enterprise Services to dispose of real property upon:
a. legislative authorization,
b. authorization by the Long-Range Capital Planning
Commission, or
c. a determination, in writing, by the Office of
Management and Enterprise Services or the state agency
that a parcel of real property subject to its
jurisdiction is no longer needed.
2. Upon the request of the state agency to dispose of real
property, the Office of Management and Enterprise Services shall
estimate the value of the property, and:
a. for properties with an estimated value of greater than
Twenty-five Thousand Dollars ($25,000.00), obtain at
least one complete appraisal made by a person
certified by the Real Estate Appraiser Board of the
Oklahoma Insurance Department, who shall ascertain:
(1) the present fair value of the property,
(2) the present value of the improvements on such
property, and
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(3) the actual condition of the improvements on the
property,
b. after completion of the provisions of subsection L of
this section, cause notice of such sale to be
published for at least one (1) day in a newspaper of
general statewide circulation authorized to publish
legal notices, and weekly for three (3) consecutive
weeks in a newspaper of general circulation published
in the county or counties in which the property is
located. The notice shall contain the legal
description of each parcel of real property to be
offered for sale, the appraised value thereof, the
time and location of the sale or opening of the bids,
and terms of the sale including the fact that no
parcel of property shall be sold for less than ninety
percent (90%) of the appraised value of the real
property; provided, in lieu of such procedure, the
information may be published electronically on the
Office of Management and Enterprise Services’ website
if the notice of sale and instructions on accessing
the public information are published in a newspaper of
general circulation in the county or counties in which
the property is located weekly for three (3)
consecutive weeks,
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c. offer the property through electronic auction, public
auction or sealed bids within three (3) weeks after
the last publication of the notice. The property
shall be sold to the highest bidder. The Office of
Management and Enterprise Services shall not accept a
bid of less than ninety percent (90%) of the average
appraised fair value of the property and the
improvements on such property,
d. if the property is being disposed of in compliance
with Section 908 of Title 62 of the Oklahoma Statutes,
the Office may auction the property at public or
electronic auction provided proper public notice is
given in compliance with this section and the property
has been approved for liquidation by the Long-Range
Capital Planning Commission. The Office of Management
and Enterprise Services is authorized to reject all
bids,
e. if the property has an estimated value of less than
Twenty-five Thousand Dollars ($25,000.00), the Office
of Management and Enterprise Services may establish
the value through market comparison and may dispose of
the property based on estimated value without
obtaining a certified appraisal; provided, however,
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the sale shall comply with all other requirements of
statute, and
f. if the property is landlocked, the Office of
Management and Enterprise Services may offer the
property through indirect sale to the adjacent
property owner for not less than ninety percent (90%)
of fair market value, as determined in compliance with
this section. All sales costs, including any required
surveys and appraisals, shall be at the expense of the
buyer.
3. The cost of the appraisal required by the provisions of this
section, together with other necessary expenses incurred pursuant to
this section, shall be paid by the state agency for which the real
property is to be sold from funds available to the state agency for
such expenditure. All monies received from the sale or disposal of
the property, except those monies necessary to pay the expenses
incurred pursuant to this section, shall be deposited in the
Maintenance of State Buildings Revolving Fund unless otherwise
provided by law.
4. The Office of Management and Enterprise Services may dismiss
from consideration any appraisal found to be incomplete or flawed.
C. Unless otherwise provided by law, the Office of Management
and Enterprise Services shall review and approve state agency real
property transactions. A state agency shall not lease or acquire
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real property, or lease, dispose of or transfer state-owned real
property until the Office provides notice of transaction approval to
the state agency. Prior to approval, a state agency shall provide
documents to the Office and provide reference to statutory or other
legal authority of the state agency to lease or acquire real
property, or lease, dispose of or transfer state-owned real
property. If the state agency intends to lease or acquire real
property, the state agency shall state the intended use of the real
property, and shall provide the Office with required telework
documentation. Within thirty (30) days of receipt, the Office shall
provide notice of transaction approval or disapproval to the state
agency.
D. The provisions of this section shall not apply to the lease
of office space or real property subject to supervision of the
Commissioners of the Land Office or district boards of education.
E. 1. The Office of Management and Enterprise Services shall
maintain a comprehensive inventory of state-owned real property and
its use excluding property of the public schools and property
subject to the jurisdiction of the Commissioners of the Land Office.
2. Each state agency shall, within thirty (30) days of the
closing date for lands newly acquired, provide to the Office a list
of records, deeds, abstracts and other title instruments showing the
description of and relating to any and all such lands or interests
therein.
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3. The provisions of paragraph 2 of this subsection shall apply
to all lands of public trusts having a state agency as the primary
beneficiary, but shall not apply to lands of municipalities,
counties, school districts, or agencies thereof, or Department of
Transportation rights-of-way.
4. A state agency that sells or otherwise disposes of land
shall notify the Office within thirty (30) days of the disposition
closing date.
F. This section shall not be construed to authorize any state
agency, not otherwise authorized by law, to sell, lease, or
otherwise dispose of any real property owned by the state.
G. The Office of Management and Enterprise Services and the
Secretary of the Commissioners of the Land Office, or designee, as
provided in subsection L of this section may provide services to
sell, transfer, trade or purchase real property for other state
agencies.
H. The Director of the Office of Management and Enterprise
Services shall, pursuant to the Administrative Procedures Act,
promulgate rules to effect procedures necessary to the fulfillment
of its responsibilities under this section.
I. The Oklahoma Ordnance Works Authority and its lands, and the
Northeast Oklahoma Public Facilities Authority, the Oklahoma
Historical Society, the Oklahoma Department of Transportation, the
Oklahoma Turnpike Authority and the Department of Wildlife managed
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lands shall be exempt from the application of this section. The
Grand River Dam Authority and its lands shall be exempt from the
application of this section for any real property disposed of prior
to November 1, 2006. The Office of the State Treasurer shall be
exempt from the application of this section for the purchase of a
state depository facility.
J. Unless otherwise provided for by law, the procedures
established pursuant to this section for the sale or exchange of
real estate or personal property as authorized pursuant to Sections
2222 and 2223 of Title 74 of the Oklahoma Statutes shall be followed
unless the sale is to an entity of state government.
K. The Director of the Office of Management and Enterprise
Services shall contract with experts, professionals or consultants
as necessary to perform the duties of the Office. Selections shall
be made using the qualifications-based procedures established in
Section 62 of this title and the rules promulgated by the Director
for the selection of construction managers and design consultants.
L. 1. No state agency shall sell, lease, exchange, or
otherwise dispose of such real property subject to its jurisdiction,
or lease, purchase or otherwise acquire real property subject to its
jurisdiction, until such agency or the Office of Management and
Enterprise Services acting on the agency’s behalf has presented to
the Secretary of the Commissioners of the Land Office, or designee,
all information collected pursuant to subparagraph a of paragraph 2
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of subsection B of this section, and provided the Secretary of the
Commissioners of the Land Office or designee a twenty-calendar-day
period to provide a proposal for the acquisition or disposal of
applicable real property.
2. The Secretary of the Commissioners of the Land Office or
designee may decline to provide such a proposal; provided such
notice of decline is communicated to the Office of Management and
Enterprise Services in written or electronic form. Upon the
reception of such notice of decline by the Office of Management and
Enterprise Services, the twenty-calendar-day period otherwise
required by this subsection shall be deemed to have expired.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 63, is
amended to read as follows:
Section 63. A. The Office of Management and Enterprise
Services shall have power to promulgate rules not inconsistent with
the laws of this state.
B. The Office of Management and Enterprise Services shall have
charge of the construction, repair, maintenance, insurance, and
operation of all buildings owned, used, or occupied by or on behalf
of the state including buildings owned by the Oklahoma Capitol
Improvement Authority where such services are carried out by
contract with the Authority, except as otherwise provided by law.
Whenever feasible, the Office of Management and Enterprise Services
may utilize the Construction Division of the Department of
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Corrections for the construction and repair of buildings for the
Department of Corrections.
C. The Director of the Office of Management and Enterprise
Services shall have authority to purchase all material and perform
all other duties necessary in the construction, repair, and
maintenance of all buildings under its management or control, shall
make all necessary contracts by or on behalf of the state for any
buildings or rooms rented for the use of the state or any of the
officers thereof, and shall have charge of the arrangement and
allotment of space in such buildings among the different state
officers except as otherwise provided by law.
D. The Office of Management and Enterprise Services shall not
have any authority or responsibility for buildings, rooms or space
under the management or control of the University Hospitals
Authority.
E. The Office of Management and Enterprise Services shall have
the custody and control of all state property, and all other
property managed or used by the state, except military stores and
such property under the control of the State Banking Department and
the two houses of the State Legislature, shall procure all necessary
insurance thereon against loss and shall allot the use of the
property to the several offices of the state, and prescribe where
the property shall be kept for public use.
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F. The Office of Management and Enterprise Services shall keep
an accurate account of all property purchased for the state or any
of the departments or officers thereof, except that purchased for
and by the two houses of the State Legislature. The two houses
shall have the exclusive use, care, and custody of their respective
chambers, committee rooms, furniture, and property, and shall keep
their respective records of said furniture and property.
G. The Office of Management and Enterprise Services shall not
have any authority or responsibility for property purchased for or
under the management or control of the University Hospitals
Authority except as expressly provided by law.
H. The Office of Management and Enterprise Services shall not
have any authority or responsibility for property purchased for or
under the management or control of CompSource Oklahoma if CompSource
Oklahoma is operating pursuant to a pilot program authorized by
Sections 3316 and 3317 of this title.
I. The Office of Management and Enterprise Services shall not
have any authority or responsibility for purposes of purchasing and
operating a state depository under the Office of the State
Treasurer.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 374 of Title 74, unless there is
created a duplication in numbering, reads as follows:
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The Office of the State Treasurer may purchase, acquire, lease,
and otherwise manage the properties of the Office, and shall not be
subject to the provisions of Section 327 of Title 61 of the Oklahoma
Statutes for the purposes of purchasing or acquiring such property.
SECTION 4. This act shall become effective July 1, 2025.
SECTION 5. 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.
Passed the Senate the 24th day of March, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2025.
Presiding Officer of the House
of Representatives