Transportation; creating certain time limit for certain liability. Effective date. Emergency.

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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 interests therein
as in its discretion may be necessary for the purpose of
establishing, constructing, and maintaining state highways or
relocations thereof, and facilities 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

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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, imperfect titles, and owners whose whereabouts cannot
be ascertained with reasonable diligence, the Department shall give
the owner an opportunity to sell the necessary lands 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 by 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 publication in two issues of a newspaper
in general circulation in the county (the ten-day period to begin

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with the first publication), shall direct the sheriff of the county
to summon three disinterested freeholders, to be selected by the
judge as commissioners, 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 copy 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 same 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

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obstructions thereon, by sale or otherwise. If the landowner shall
refuse to deliver up possession 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 in
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 cause shown.
Provided, that in the event a new appraisement is ordered, the
Department shall have the continuing right of possession obtained
under the first appraisal, unless and until its right to condemn has
finally been determined otherwise; or either party 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 manner 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 whom 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

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commissioners as above provided has elapsed. Provided, that if,
after the filing of exceptions 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 landowner
shall be restored to possession of the premises, or part thereof,
and the Department shall 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 Commissioners
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 filing 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 parties 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

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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 demand 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 Court
from the decision of the district court on exceptions to the report
of commissioners, or jury trial; but such review or appeal shall not

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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 such 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 legal guardian, the administrator or
executor of the estate, or guardian of the minor or incompetent
person, shall have the authority to execute all instruments of
conveyance provided for in this title on behalf of the estate, minor

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or incompetent person without other proceedings than approval by the
judge of the district court endorsed on the instrument 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 the 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 who 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 actually 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

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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 determination 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 AERONAUTICS AND TRANSPORTATION
February 17, 2025 - DO PASS