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Committee advances bill to expand original owner right of first refusal on surplus ODOT land

2320469 · February 13, 2025
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Summary

Lawmakers recommended House Bill 1103, which would expand and extend first‑right‑of‑refusal rules for property ODOT acquired and later declared surplus, with exclusions for parcels purchased with federal funds; committee vote was 14-2.

The Government Oversight Committee recommended House Bill 1103 after Representative Gann explained the bill is a constituent-request measure aimed at ensuring original landowners are notified and given the first opportunity to repurchase surplus property acquired by the Oklahoma Department of Transportation.

Representative Gann said the bill grew from a case in which ODOT acquired land for a planned four‑lane project that ultimately required only a two‑lane road. The original owner was not notified when ODOT later sold the excess property and discovered the sale through a third party, Gann said. “I think the intent is to give the original landowner the first and foremost opportunity to buy his land back,” Representative Gann said.

Members pressed for details on price and time limits. The bill would require notice by registered mail to the last known address and extend a notice period from 30 days to 90 days, according to the sponsor’s reading of the draft. The statutory offer language in the bill states an offer would be for an amount “not greater than the amount for which the property was originally obtained by the commission,” though committee members asked whether federal participation in the original purchase would alter that rule. Representative Gann and others said federal participation would trigger a different requirement: land purchased with federal funds or with federal–state commingling generally would have to be sold at market value to meet federal requirements.

Committee members raised concerns that extending a first‑refusal right in perpetuity could allow heirs or trusts to repurchase land decades later at the original price and that landowners who sold under duress might still have been disadvantaged. Representative Fugate urged holding the bill in committee to allow additional review; Representative Gann and others said the bill aimed to prevent the state from profiting off land originally taken from families.

After debate the committee voted to report the bill favorably, 14 ayes and 2 nays. The transcript shows members asked for clarifications and suggested minor drafting changes; the sponsor agreed to work with chairs and return with cleaned language. The committee recorded the recommendation to report the bill out as do pass.