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SENATE FLOOR VERSION
February 20, 2025
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 237 By: Murdock of the Senate
and
Newton of the House
[ Commissioners of the Land Office - properties -
payment - method for computation - information -
effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 64 O.S. 2021, Section 1023, is
amended to read as follows:
Section 1023. A. The Commissioners of the Land Office are
authorized to grant co mmercial leases and agricultural leases in
trust property. subject to the following conditions:
1. Commercial leases shall not exceed fifty -five (55) years.
The granting of any commercial lease in excess of three (3) years
shall be by public bidding at n ot less than fair market value. All
commercial leases shall provide for fair market value throughout the
term of the lease.;
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2. Agricultural leases of trust property shall be limited to a
maximum of five (5) years and shall be by public bidding at not le ss
than fair market value .;
3. The granting of any interest in trust property at less than
fair market value or not in compliance with this section is void .;
and
4. Any permanent improvement made on commercial trust property
from and on or after the passage of this act July 1, 1989, shall
revert to the trust at the end of the lease.
B. In connection with any commercial and agricultural leases,
the Commissioners of the Land Office shall, unless otherwise
exempted by the Oklahoma Constitution or laws of Ok lahoma:
1. Require payment of ad valorem property taxes on any
improvements and structures on state school land, which would
otherwise be subject to ad valorem property taxation if constructed
on privately owned land; and
2. Indemnify and hold harmless t he Commissioners of the Land
Office from any financial obligation related to land, financing or
operation.
C. Upon the effective date of this act, the Commissioners of
the Land Office shall be required to make a payment in lieu of ad
valorem taxes with re spect to real property located in any county of
this state if title to more than ten percent (10%) of all real
property in the county, as measured by acreage, is held by the
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Commissioners of the Land Office. The county assessor of each
county to which payment is owed pursuant to the provisions of this
subsection shall make a determination of the average tax rate per
acre for agricultural land in the county for the preceding
assessment year and shall communicate that information to the
Commissioners of the Land Office not later than September 1 each
year. The Commissioners of the Land Office shall make the required
payment to the county treasurer of the county not later than
December 31 of each year.
D. The Commissioners of the Land Office may refuse to ac cept
any bid or lease on a commercial, agricultural or mineral lease
where the party is in default of any installment due or in violation
of any provisions contained in a prior or current lease contract.
D. E. The Commissioners of the Land Office may refu se to accept
any bid or lease contract where the interested party cannot show
adequate creditworthiness as determined by the Land Office.
SECTION 2. This act shall become effective January 1, 2026.
COMMITTEE REPORT BY: COMMITTEE ON APPROPR IATIONS
February 20, 2025 - DO PASS AS AMENDED