Bill Text For HB2863 - Senate Floor Version

 1|                        SENATE FLOOR VERSION                           |
  |                            April 7, 2021                              |
 2|                             AS AMENDED                                |
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 3|ENGROSSED HOUSE                                                        |
  |BILL NO. 2863                        By: Wallace of the House          |
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  |                                         Thompson of the Senate        |
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 8|       An Act relating to public buildings and public works;           |
  |       amending 74 O.S. 2011, Section 129.4, as renumbered             |
 9|       by Section 39, Chapter 209, O.S.L. 2013, and as last            |
  |       amended by Section 2, Chapter 204, O.S.L. 2019 (61              |
10|       O.S. Supp. 2020, Section 327), which relates to                 |
  |       disposal or lease of certain state-owned real                   |
11|       property; limiting certain real property                        |
  |       transactions; making completion of certain process              |
12|       prerequisite to certain procedures; requiring certain           |
  |       information be provided to the Commissioners of the             |
13|       Land Office; providing certain calendar day period              |
  |       for certain proposals for acquisition or disposal;              |
14|       authorizing the Commissioners of the Land Office to             |
  |       provide notice of decline; providing notice of                  |
15|       decline be provided in certain forms; providing that            |
  |       notice of decline ends calendar day period; and                 |
16|       providing an effective date.                                    |
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19|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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20|    SECTION 1.     AMENDATORY     74 O.S. 2011, Section 129.4, as      |
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21|renumbered by Section 39, Chapter 209, O.S.L. 2013, and as last        |
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22|amended by Section 2, Chapter 204, O.S.L. 2019 (61 O.S. Supp. 2020,    |
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23|Section 327), is amended to read as follows:                           |
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 1|    Section 327.  A.  Unless procedures for state agency real          |
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 2|property transactions are otherwise specifically provided for by       |
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 3|law, no state agency shall sell, lease, exchange, or otherwise         |
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 4|dispose of such real property subject to its jurisdiction, or lease,   |
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 5|purchase or otherwise acquire real property subject to its             |
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 6|jurisdiction, except as authorized by subsection L of this section     |
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 7|and as otherwise provided for in this section.  As used in this        |
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 8|section, "state agency" means any department, board, commission,       |
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 9|institution, agency or entity of state government.                     |
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10|    B.  1.  Every state agency shall request the Office of             |
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11|Management and Enterprise Services to dispose of real property upon:   |
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12|         a.    legislative authorization,                              |
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13|         b.    authorization by the Long-Range Capital Planning        |
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14|              Commission, or                                           |
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15|         c.    a determination, in writing, by the Office of           |
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16|              Management and Enterprise Services or the state agency   |
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17|              that a parcel of real property subject to its            |
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18|              jurisdiction is no longer needed.                        |
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19|    2.  Upon the request of the state agency to dispose of real        |
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20|property, the Office of Management and Enterprise Services shall:      |
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21|         a.   obtain at least one complete appraisal made by a         |
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22|              person certified by the Real Estate Appraiser Board of   |
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23|              the Oklahoma Insurance Department, who shall             |
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24|              ascertain:                                               |
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arsid872303 SENATE FLOOR VERSION - HB2863 SFLR                     Page 2
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 1|              (1)   the present fair value of the property,            |
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 2|              (2)  the present value of the improvements on such       |
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 3|                   property, and                                       |
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 4|              (3)   the actual condition of the improvements on the    |
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 5|                   property,                                           |
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 6|         b.    after completion of the provisions of subsection L of   |
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 7|              this section, cause notice of such sale to be            |
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 8|              published for at least one (1) day in a newspaper of     |
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 9|              general statewide circulation authorized to publish      |
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10|              legal notices, and weekly for three (3) consecutive      |
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11|              weeks in a newspaper of general circulation published    |
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12|              in the county or counties in which the property is       |
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13|              located.  The notice shall contain the legal             |
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14|              description of each parcel of real property to be        |
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15|              offered for sale, the appraised value thereof, the       |
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16|              time and location of the sale or opening of the bids,    |
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17|              and terms of the sale including the fact that no         |
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18|              parcel of property shall be sold for less than ninety    |
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19|              percent (90%) of the appraised value of the real         |
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20|              property; provided, in lieu of such procedure, the       |
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21|              information may be published electronically on the       |
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22|              Office of Management and Enterprise Services' website    |
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23|              if the notice of sale and instructions on accessing      |
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24|              the public information are published in a newspaper of   |
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arsid872303 SENATE FLOOR VERSION - HB2863 SFLR                     Page 3
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 1|              general circulation in the county or counties in which   |
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 2|              the property is located weekly for three (3)             |
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 3|              consecutive weeks,                                       |
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 4|         c.    offer the property through public auction or sealed     |
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 5|              bids within three (3) weeks after the last publication   |
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 6|              of the notice.  The property shall be sold to the        |
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 7|              highest bidder.  The Office of Management and            |
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 8|              Enterprise Services shall not accept a bid of less       |
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 9|              than ninety percent (90%) of the average appraised       |
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10|              fair value of the property and the improvements on       |
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11|              such property, and                                       |
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12|         d.    if the property is being disposed of in compliance      |
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13|              with Section 908 of Title 62 of the Oklahoma Statutes,   |
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14|              the Office may auction the property at public or         |
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15|              electronic auction provided proper public notice is      |
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16|              given in compliance with this section and the property   |
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17|              has been approved for liquidation by the Long-Range      |
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18|              Capital Planning Commission.  The Office of Management   |
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19|              and Enterprise Services is authorized to reject all      |
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20|              bids.                                                    |
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21|    3.  The cost of the appraisal required by the provisions of this   |
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22|section, together with other necessary expenses incurred pursuant to   |
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23|this section, shall be paid by the state agency for which the real     |
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24|property is to be sold from funds available to the state agency for    |
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arsid872303 SENATE FLOOR VERSION - HB2863 SFLR                     Page 4
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 1|such expenditure.  All monies received from the sale or disposal of    |
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 2|the property, except those monies necessary to pay the expenses        |
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 3|incurred pursuant to this section, shall be deposited in the           |
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 4|Maintenance of State Buildings Revolving Fund unless otherwise         |
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 5|provided by law.                                                       |
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 6|    4.  The Office of Management and Enterprise Services may dismiss   |
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 7|from consideration any appraisal found to be incomplete or flawed.     |
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 8|    C.  Unless otherwise provided by law, the Office of Management     |
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 9|and Enterprise Services shall review and approve state agency real     |
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10|property transactions.  A state agency shall not lease or acquire      |
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11|real property, or lease, dispose of or transfer state-owned real       |
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12|property until the Office provides notice of transaction approval to   |
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13|the state agency.  Prior to approval, a state agency shall provide     |
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14|documents to the Office and provide reference to statutory or other    |
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15|legal authority of the state agency to lease or acquire real           |
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16|property, or lease, dispose of or transfer state-owned real            |
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17|property.  If the state agency intends to lease or acquire real        |
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18|property, the state agency shall state the intended use of the real    |
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19|property, and shall provide the Office with required telework          |
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20|documentation.  Within thirty (30) days of receipt, the Office shall   |
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21|provide notice of transaction approval or disapproval to the state     |
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22|agency.                                                                |
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 1|    D.  The provisions of this section shall not apply to the lease    |
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 2|of office space or real property subject to supervision of the         |
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 3|Commissioners of the Land Office or district boards of education.      |
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 4|    E.  1.  The Office of Management and Enterprise Services shall     |
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 5|maintain a comprehensive inventory of state-owned real property and    |
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 6|its use excluding property of the public schools and property          |
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 7|subject to the jurisdiction of the Commissioners of the Land Office.   |
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 8|    2.  Each state agency shall, within thirty (30) days of the        |
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 9|closing date for lands newly acquired, provide to the Office a list    |
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10|of records, deeds, abstracts and other title instruments showing the   |
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11|description of and relating to any and all such lands or interests     |
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12|therein.                                                               |
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13|    3.  The provisions of paragraph 2 of this subsection shall apply   |
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14|to all lands of public trusts having a state agency as the primary     |
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15|beneficiary, but shall not apply to lands of municipalities,           |
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16|counties, school districts, or agencies thereof, or Department of      |
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17|Transportation rights-of-way.                                          |
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18|    4.  A state agency that sells or otherwise disposes of land        |
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19|shall notify the Office within thirty (30) days of the disposition     |
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20|closing date.                                                          |
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21|    F.  This section shall not be construed to authorize any state     |
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22|agency, not otherwise authorized by law, to sell, lease, or            |
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23|otherwise dispose of any real property owned by the state.             |
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 1|    G.  The Office of Management and Enterprise Services and the       |
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 2|Secretary of the Commissioners of the Land Office, or designee, as     |
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 3|provided in subsection L of this section may provide services to       |
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 4|sell, transfer, trade or purchase real property for other state        |
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 5|agencies.                                                              |
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 6|    H.  The Director of the Office of Management and Enterprise        |
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 7|Services shall, pursuant to the Administrative Procedures Act,         |
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 8|promulgate rules to effect procedures necessary to the fulfillment     |
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 9|of its responsibilities under this section.                            |
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10|    I.  The Oklahoma Ordnance Works Authority and its lands, and the   |
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11|Northeast Oklahoma Public Facilities Authority, the Oklahoma           |
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12|Historical Society, the Oklahoma Department of Transportation and      |
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13|the Oklahoma Turnpike Authority, and the Department of Wildlife        |
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14|managed lands shall be exempt from the application of this section.    |
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15|The Grand River Dam Authority and its lands shall be exempt from the   |
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16|application of this section for any real property disposed of prior    |
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17|to November 1, 2006.                                                   |
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18|    J.  Unless otherwise provided for by law, the procedures           |
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19|established pursuant to this section for the sale or exchange of       |
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20|real estate or personal property as authorized pursuant to Sections    |
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21|2222 and 2223 of Title 74 of the Oklahoma Statutes shall be followed   |
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22|unless the sale is to an entity of state government.                   |
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23|    K.  The Director of the Office of Management and Enterprise        |
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24|Services shall contract with experts, professionals or consultants     |
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 1|as necessary to perform the duties of the Office.  Selections shall    |
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 2|be made using the qualifications-based procedures established in       |
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 3|Section 62 of this title, and the rules promulgated by the Director    |
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 4|for the selection of construction managers and design consultants.     |
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 5|    L.  1.  No state agency shall sell, lease, exchange or otherwise   |
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 6|dispose of such real property subject to its jurisdiction, or lease,   |
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 7|purchase or otherwise acquire real property subject to its             |
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 8|jurisdiction, until such agency or the Office of Management and        |
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 9|Enterprise Services acting on the agency's behalf has presented to     |
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10|the Secretary of the Commissioners of the Land Office, or designee,    |
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11|all information collected pursuant to subparagraph a of paragraph 2    |
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12|of subsection B of this section, and provided the Secretary of the     |
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13|Commissioners of the Land Office or designee a twenty-calendar-day     |
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14|period to provide a proposal for the acquisition or disposal of        |
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15|applicable real property.                                              |
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16|    2.  The Secretary of the Commissioners of the Land Office or       |
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17|designee may decline to provide such a proposal, provided such         |
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18|notice of decline is communicated to the Office of Management and      |
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19|Enterprise Services in written or electronic form.  Upon the           |
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20|reception of such notice of decline by the Office of Management and    |
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21|Enterprise Services, the twenty-calendar-day period otherwise          |
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22|required by the subsection shall be deemed to have expired.            |
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 1|    SECTION 2.  This act shall become effective November 1, 2021.      |
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 2|COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS                       |
  |April 7, 2021 - DO PASS AS AMENDED                                     |
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