Req. No. 1613 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) COMMITTEE SUBSTITUTE FOR SENATE BILL 274 By: Rader of the Senate and West (Tammy) of the House COMMITTEE SUBSTITUTE An Act relating to landlord and tenant; amending 41 O.S. 2021, Section 201, which relates to lease conditions for tenant felony conviction; requiring criminal history screening policy for award of certain tax credit; requiring certain components for screening policy; prohibiting inclusion of certain statements; requiring consideration of certain factors in individualized review; requiring review of certain plans by Oklahoma Housing Finance A gency; updating statutory language; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA: SECTION 1. AMENDATORY 41 O.S. 2021, Section 201, is amended to read as follows: Section 201. A. The owner of any real property , including any improvements consisting of dwelling units , acquired or improved in connection with an allocation of income tax credits pursuant to the provisions of Section 42 of the Internal Re venue Code of 1986, as amended, or in connection with an allocation of income tax credits Req. No. 1613 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 pursuant to the provisions of Section 2357.403 of Title 68 of the Oklahoma Statutes shall have the right to impose conditions in any lease agreement for the occupancy of any dwelli ng located on real property as described by this section which allow the owner to accept or decline to enter into the lease agreement, or to terminate a previously executed lease agreement based upon the discovery of incomplete or false infor mation, with respect to the prior felony conviction of any person identified as a tenant pursuant to the terms of the lease agreement, including occupan ts of the dwelling whether or not those occupants formally execute a lease agreement. B. The owner of real property a s described in subsection A of this section may either accept or decline to enter into a lease agreement or to terminate a previously exec uted lease agreement based upon felony convictions, whether pursuant to federal law or the laws of any state or other governmental jurisdiction, for the following types of offenses: 1. Possession of any drug or chemical; 2. Possession of any drug or chem ical with intent to manufacture or distribute; 3. Sex offenses, including , but not limited to, any form of sexual assault, rape, indecent exposure, or other sexually related offense if such offense was a felony; 4. Assault or battery or both if the offen se was a felony; 5. Any felony involving violence against another person; and Req. No. 1613 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6. Such other felony off enses as the owner of the real property as described in subsection A of this section includes in the terms of the lease agreement. C. The provisions of this section shall supersede the administrative rule of any state agency, board, commission, department, statewide be neficiary public trust or other entity of state government to the extent of any conflict. D. The provisions of subsections A and B of this section shall be applicable with respect to lease transactions occurring on or after the effective date of this act April 29, 2019, without regard to the construction date of the improvements to real property as described by subsection A of this section. E. For awards beginning on or after January 1, 2026, an award recipient for the income tax credits pursuant to the provisions of Section 42 of the Internal Revenue Code of 1986, as amended, or in connection with income tax credits allocated pursua nt to Section 2357.403 of Title 68 of the Oklahoma Statutes shall have a clearly defined criminal history scree ning policy in a tenant selection plan that establishes criteria for renting to prospective residents and shall include, but not be limited to , the following: 1. An individualized review that considers the safety of residents and property; provided, an applicant with a criminal conviction may be denied housing only after conducting such review; Req. No. 1613 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. The amount of time following a conviction during which criminal records will be considered in determining the approval of a lease application; and 3. An established procedure for conducting individualized reviews of applicants with a criminal record which shall include, but not be limited to, a notification to the applicant that an individualized review will be conducted and the right of the applicant to provide supporting documentation and mitigating evidence for the individualized review. The screening policy shall not include any statements such as “Any applicants with criminal convictions will be denied ”. F. An individualized review conducted pursuant to sub section E of this section shall include consideration of the following factors: 1. The seriousness of the offense, especially with respect to the effect of the offense on other residents; 2. The age of the individual at the time the offense was committed; 3. The length of time since the offense occurred; 4. Evidence of rehabilitation such as employment, job training, educational achievement, treatment program completion, or letters of recommendation; and 5. Whether the offense has any connection to how the tenant or household member would perform as a tenant, resident, or neighbor. Req. No. 1613 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 G. The Oklahoma Housing Finance Agency shall review the tenant selection plan to ensure compliance with subsection E of this section during compliance monitoring review. The Agency shall provide guidance to owners of real property who receive an award of affordable housing tax credit as it pertains to creation of policies and practices to comply with this section. SECTION 2. This act shall become effective N ovember 1, 2025. 60-1-1613 TEK 2/17/2025 9:57:37 AM