1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1780 By: Seifried
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5 AS INTRODUCED
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6 An Act relating to the Department of Transportation;
6 amending 69 O.S. 2021, Sections 1001 and 1003, which
7 relate to the disposition of surplus property;
7 directing certain notice to be available online;
8 removing certain conditions on value of property;
8 increasing time period for certain response;
9 modifying procedures for sale of certain property;
9 directing certain funds to the General Revenue Fund;
10 updating statutory language; updating statutory
10 references; and providing an effective date.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 69 O.S. 2021, Section 1001, is
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15 amended to read as follows:
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16 Section 1001. A. The Transportation Commission shall have
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17 authority to sell any lands, or interest therein, which may have
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18 been acquired for highway purposes, or facilities necessary and
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19 incident thereto, and any equipment, materials, or supplies which in
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20 the opinion of the Commission are no longer serviceable, useful, or
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21 necessary for the state highway system or the operation of the
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22 Department of Transportation. Such authority shall be subject at
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23 all times to the continuing right to the use of the lands by any
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24 entity operating a sewer, water, or gas system, telephone or
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 1 electrical services, and by public service corporations and rural
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2 electric and telephone cooperatives for the construction,
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3 reconstruction, maintenance, operation, and repair of their
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4 facilities of service which may be upon the lands. However, any
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5 such land which was acquired by the Commission from a governmental
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6 subdivision as a gift, or for a nominal consideration, may be
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7 reconveyed to the governmental subdivision by the Commission, upon
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8 repayment by the governmental subdivision to the Commission of any
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9 consideration for the original conveyance.
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10 B. Any surplus land which has been leased to a political
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11 subdivision by the Commission may be sold and conveyed to the
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12 political subdivision for the present fair market value as
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13 determined by a competent appraisal and the political subdivision
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14 may have credited toward the purchase price of any such property the
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15 lease payments which the political subdivision shall have previously
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16 made to the Commission.
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17 C. Except as otherwise herein provided, the lands, materials,
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18 equipment, and supplies shall be sold for cash to the highest and
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19 best bidder after notice by publication in a newspaper published in
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20 the county where the land is situated, or where the materials,
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21 equipment, or supplies are located, in two consecutive weekly issues
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22 of the newspaper.
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23 D. 1. If the land originally comprised a partial taking,
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24 leaving an abutting remainder, then prior to conducting such
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 1 advertisement and solicitation of bids for the sale of any lands or
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2 interests therein, the Commission shall notify the person, firm, or
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3 corporation which originally conveyed the property to the Commission
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4 or present successor to the original remainder that same has been
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5 declared surplus and is to be offered for sale. Such notice shall
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6 be sent by registered mail addressed to the last-known address of
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7 such person, firm, or corporation, with return receipt requested.
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8 Such notice shall also be made available on the website of the
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9 Department of Transportation. Such notice shall contain an offer to
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10 sell such property to such person, firm, or corporation for an
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11 amount not greater than the amount for which the property was
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12 originally obtained by the Commission for a period of five (5) years
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13 from the original taking. Following the five-year period, the sale
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14 of such property may be offered at fair market value. The amount of
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15 the Commission’s requested purchase price based on such appraisal
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16 shall be stated in the notice, and the The person, firm, or
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17 corporation receiving such notice and offer shall be informed
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18 therein that unless such person, firm, or corporation notifies the
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19 Commission in writing within thirty (30) ninety (90) days from the
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20 date of receipt of the notice that the Commission’s offer of sale is
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21 accepted by such person, firm, or corporation, the Commission shall
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22 proceed to sell the property at public auction as provided for in
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23 this section. After the expiration of thirty (30) ninety (90) days
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24 from the date of receipt of the notice by the person, firm, or
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 1 corporation to whom it is addressed, if such person, firm, or
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2 corporation has not notified the Commission in writing of the
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3 acceptance of the Commission’s offer of sale, the Commission shall
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4 proceed to sell such property by public auction and no attempt to
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5 accept the Commission’s offer by such person, firm, or corporation
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6 after the expiration of such thirty (30) ninety (90) days shall be
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7 honored by the Commission. However, such person, firm, or
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8 corporation may submit a bid at the public auction of the property
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9 in the same manner as any other qualified bidder.
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10 2. If the land to be disposed of originally comprised a total
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11 taking, leaving no abutting remainder, then such shall be sold to
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12 the highest bidder, or as otherwise herein provided except that
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13 then, prior to conducting such advertisement and solicitation of
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14 bids for the sale of lands or interests therein, the Commission
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15 shall notify the person, firm, or corporation which originally
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16 conveyed the property to the Commission, or present successor. The
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17 notice shall be sent by registered mail addressed to the last-known
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18 address of such person, firm, or corporation, with return receipt
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19 requested. Such notice shall also be made available on the website
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20 of the Department of Transportation. The notice shall contain an
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21 offer to sell such property to such person, firm, or corporation
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22 subject to the same conditions as set forth in paragraph 1 of this
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23 subsection. If such person, firm, or corporation has not notified
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24 the Commission in writing of the acceptance of the Commission’s
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 1 offer of sale, and if the land to be disposed of originally
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2 comprised a total taking of less than three (3) acres, leaving only
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3 one abutting property owner of record, then prior to conducting such
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4 advertisement and solicitation of bids for the sale of any such
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5 lands or interest therein, the Commission shall notify the sole
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6 abutting property owner of record to the taking that such has been
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7 declared surplus and is to be offered for sale. Such notice shall
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8 be sent by registered mail addressed to the last-known address of
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9 such person, firm, or corporation, with return receipt requested.
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10 Such notice shall also be made available on the website of the
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11 Department of Transportation. Such notice shall contain an offer to
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12 sell such property to such person, firm, or corporation subject to
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13 the same conditions as set forth in paragraph 1 of this subsection.
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14 3. For the purposes of this section, the Commission shall not
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15 distinguish between persons from whom surplus lands or interest
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16 therein were acquired by negotiated sale or gift and persons from
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17 whom such property was acquired by condemnation proceedings.
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18 E. The Commission may, in its discretion, exchange any such
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19 lands for other lands needed for highway purposes, or may lease or
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20 rent any lands which are owned by the Department, and are not
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21 immediately necessary for highway purposes, on such terms as the
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22 Commission determines for the best interests of the state.
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23 F. On an annual basis, for every parcel of land:
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24 1. Owned by the Transportation Commission; and
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 1 2. Deemed surplus for ten (10) years or more,
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2 the Commission shall submit a waiver request to the Federal Highway
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3 Administration of the United States Department of Transportation
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4 seeking exception from any federal regulation preventing the sale of
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5 such land for less than fair market value.
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6 G. When the Department of Transportation determines that any
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7 equipment or vehicle becomes excess, obsolete, antiquated, unused,
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8 or otherwise surplus, the Department shall notify the Office of
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9 Management and Enterprise Services in writing that such equipment or
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10 vehicle is surplus. The notice shall identify:
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11 1. The type, brand or make, and country of manufacture of the
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12 equipment or vehicle;
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13 2. The age of the equipment or vehicle including but not
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14 limited to mileage;
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15 3. Whether the equipment or vehicle is in good working
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16 condition or not;
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17 4. If the equipment or vehicle is not in good working
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18 condition, whether it is in repairable condition at reasonable cost;
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19 5. Original cost of the equipment or vehicle; and
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20 6. Present value of the equipment or vehicle, if known.
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21 The Office of Management and Enterprise Services, with any other
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22 notice of surplus property, shall notify the eligible individuals or
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23 entities as provided in subsection H of this section of the
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 1 availability of the surplus property of the Department of
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2 Transportation.
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3 H. Prior to any advertised public auction or advertised sealed
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4 bids to all individuals and entities eligible for participation in
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5 the surplus program, the Department, thirty (30) days prior to the
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6 advertised auction date, shall offer, at fair market value, the
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7 equipment or vehicles to the individuals or entities, in the
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8 following order of priority:
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9 1. Other state agencies;
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10 2. Political subdivisions of the state;
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11 3. Rural fire departments located in this state; and
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12 4. Rural water districts located in this state.
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13 Any equipment or vehicles purchased pursuant to this subsection
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14 shall be made available to the purchaser on the date of purchase.
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15 I. The Department is authorized to act on behalf of the
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16 Commission in transactions authorized pursuant to this section,
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17 except as may be otherwise provided by rule or regulation of the
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18 Commission; and, all prior transactions of the Department which are
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19 otherwise in conformity with this section are deemed authorized and
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20 approved.
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21 J. When the Department of Transportation determines that any
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22 road or bridge materials or supplies become excess, unused, or
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23 otherwise surplus, the Department shall make such road or bridge
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24 material or supplies available to all governmental entities eligible
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 1 for participation in the surplus program. The Department may be
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2 reimbursed for any cost incurred in the recovery or storage of such
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3 road or bridge material or supplies. The governmental entity
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4 requesting the excess, unused, or otherwise surplus road or bridge
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5 materials or supplies shall retrieve such materials or supplies from
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6 the Department of Transportation within one hundred eighty (180)
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7 days from the completion of the project for which the materials or
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8 supplies are declared excess or surplus.
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9 The Department, upon request of a local government, may transfer
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10 surplus bridge beams to the local government for use in the
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11 construction or repair of public roadway bridges. The local
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12 government shall not sell the surplus beams. Prior to the transfer,
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13 the local government shall cause the surplus beams to be inspected
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14 by a registered professional engineer. The local government shall
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15 assume full responsibility for the cost of transporting the beams
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16 and for the use of the beams including, but not limited to, the
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17 proper removal and disposal of lead-based paint. The Department
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18 shall retain the surplus beams for the requesting local government
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19 for a period not exceeding one hundred eighty (180) days, after
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20 which the Department may otherwise dispose of the surplus beams.
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21 SECTION 2. AMENDATORY 69 O.S. 2021, Section 1003, is
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22 amended to read as follows:
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23 Section 1003. The proceeds from the sale or rental of any
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24 lands, or from the sale of equipment, materials, or supplies, and
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 1 any funds received as the result of the settlement or litigation of
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2 claims for damages to or loss of property, equipment, or facilities
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3 owned by or under the control of the Department of Transportation or
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4 Transportation Commission, shall be deposited in the State Highway
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5 Construction and Maintenance Fund General Revenue Fund.
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6 SECTION 3. This act shall become effective November 1, 2024.
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8 59-2-2960 MSBB 1/17/2024 2:16:46 PM
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