OK
Oklahoma Senate Bill SB951

Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB951 Compare Versions

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3-ENGR. H. A. to ENGR. S. B. NO. 951 Page 1 1
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28-ENGROSSED HOUSE AMENDME NTS
29- TO
30-ENGROSSED SENATE BILL NO . 951 By: Murdock of the Senate
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
30+
31+STATE OF OKLAHOMA
32+
33+1st Session of the 60th Legislature (2025)
34+
35+ENGROSSED SENATE
36+BILL NO. 951 By: Murdock of the Senate
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3238 and
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3440 Archer of the House
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40-An Act relating to the Commissioners of the Land
41-Office; amending 64 O.S. 2021, Section 1023, which
42-relates to the granting of comme rcial and
43-agricultural leases; providing for appraisal of
44-certain improvements; directing certain lease to
45-require certain reimbursement; providing condition
46-for lease default; prohibiting charging of certain
47-fees; providing for promulgation of rules; upda ting
48-statutory reference; updating statutory language; and
49-providing an effective date .
45+[ Commissioners of the Land Office - commercial and
46+agricultural leases - appraisal of improvements –
47+reimbursement – default – fees – rules - effective
48+date ]
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54-AUTHOR: Add the following House Coauthor: Burns
53+BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
54+SECTION 1. AMENDATORY 64 O.S. 2021, Section 1023, is
55+amended to read as follows:
56+Section 1023. A. The Commissioners of the Land Office are
57+authorized to grant commercial leases and agricultural leases in
58+trust property.
59+Commercial leases shall not exceed fifty -five (55) years. The
60+granting of any commercial lease in excess of three (3) years shall
61+be by public bidding at not less than fair market value. All
5562
56-AMENDMENT NO. 1. Page 1, lines 6 through 10 1/2, strike the title
57-to read:
58-
59-"[ Commissioners of the Land Office - commercial and
60-agricultural leases - appraisal of improvements –
61-reimbursement – default – fees – rules - effective
62-date ]"
63-
64-AMENDMENT NO. 2. Page 1, line 13, strike the enacting clause
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66-ENGR. H. A. to ENGR. S. B. NO. 951 Page 2 1
63+SB951 HFLR Page 2
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91-Passed the House of Representatives the 22nd day of April, 2025.
89+commercial leases shall provide for fair market value throughout the
90+term of the lease.
91+Agricultural leases of trust property shall be limited to a
92+maximum of five (5) y ears and shall be by public bidding at not less
93+than fair market value.
94+The granting of any interest in trust property at less than fair
95+market value or not in compliance with this section is void.
96+Any permanent improvement made on commercial trust propert y from
97+and after the passage of this act July 1, 1989, shall revert to the
98+trust at the end of the lease.
99+B. In connection with any commercial and agricultural leases,
100+the Commissioners of the Land Office shall, unless otherwise
101+exempted by the Constituti on or laws of Oklahoma this state:
102+1. Require payment of ad valorem property taxes on any
103+improvements and structures on state school land, which would
104+otherwise be subject to ad valorem property taxation if constructed
105+on privately owned land; and
106+2. Indemnify and hold harmless the Commissioners of the Land
107+Office from any financial obligation related to land, financing , or
108+operation.
109+C. An appraiser selected by the Commissioners of the Land
110+Office shall appraise any improvements approved by the Commiss ioners
111+of the Land Office made to the property leased as an agricultural
112+lease by the current lessee that cannot be removed without manifest
92113
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97-Presiding Officer of the House of
98- Representatives
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101-Passed the Senate the ____ day of __________, 2025.
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107-Presiding Officer of the Senate
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110-ENGR. S. B. NO. 951 Page 1 1
114+SB951 HFLR Page 3
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135-ENGROSSED SENATE
136-BILL NO. 951 By: Murdock of the Senate
137-
138- and
139-
140- Archer of the House
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142-
143-
144-
145-An Act relating to the Commissioners of the Land
146-Office; amending 64 O.S. 2021, Section 1023, which
147-relates to the granting of commercial and
148-agricultural leases; pr oviding for appraisal of
149-certain improvements; directing certain lease to
150-require certain reimbursement; pro viding condition
151-for lease default; prohibiting charging of certain
152-fees; providing for promulgation of rules; updating
153-statutory reference; updatin g statutory language; and
154-providing an effective date .
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159-BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAH OMA:
160-SECTION 1. AMENDATORY 64 O.S. 2021, Section 1023, is
161-amended to read as follows:
162-Section 1023. A. The Commissioners of the Land Office are
163-authorized to grant commercial leases and agricultural leases in
164-trust property.
165-Commercial leases shall not exceed fifty -five (55) years. The
166-granting of any commercial lease in excess of three (3) years shall
167-be by public bidding at not less than fair market value. All
168-commercial leases shall provide for fair market value throughout t he
169-term of the lease.
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171-ENGR. S. B. NO. 951 Page 2 1
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196-Agricultural leases of trust property shall be limited to a
197-maximum of five (5) years and shall be by public bidding at not le ss
198-than fair market value.
199-The granting of any interest in trust property at less than fair
200-market value or not in compliance with this section is void.
201-Any permanent improvement made on commercial trust property from
202-and after the passage of this act July 1, 1989, shall revert to the
203-trust at the end of the lease.
204-B. In connection with any commercial and agric ultural leases,
205-the Commissioners of the Land Office shall, unless otherwise
206-exempted by the Constitution or laws of Oklahoma this state:
207-1. Require payment of ad valorem property taxes on any
208-improvements and structures on state school land, which would
209-otherwise be subject to ad valorem property taxation if constructed
210-on privately owned land; and
211-2. Indemnify and hold harmless the Commissioners o f the Land
212-Office from any financial obligation relate d to land, financing , or
213-operation.
214-C. An appraiser selected by the Commissioners of the Land
215-Office shall appraise any improvements approved by the Commissioners
216-of the Land Office made to the propert y leased as an agricultural
217-lease by the current lessee that cannot be removed without manifest
218140 injury to the land. When the Commissioners enter into a new lease
219141 for the property, the lease shall require the ne w lessee to
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246142 reimburse the previous lessee for the appraised value of any
247143 improvements made by the previous lessee by the date the new lessee
248144 is permitted to take occupancy of the property. It shall be
249145 considered a default of the lease of the property to t he new lessee
250146 if such reimbursement is not made. Provided, no fees may be charged
251147 to a lessee above those included in the originally accepted bid to
252148 irrigate land used for agricultural purposes if the water is not
253149 sourced from lands owned or managed by th e Commissioners.
254150 D. The Commissioners of the Land Office may refuse to accept
255151 any bid or lease on a commercial, agricultural , or mineral lease
256152 where the party is in default of any installment due or in violation
257153 of any provisions contained in a prior or c urrent lease contract.
258154 D. E. The Commissioners of the Land Office may refuse to accept
259155 any bid or lease contract where the interested party cannot show
260156 adequate creditworthiness as determined by the Land Office.
261157 F. The Commissioners of the Land Office sh all promulgate rules
262158 to implement the provisions of this section.
263159 SECTION 2. This act shall become effective November 1, 2025.
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290-Passed the Senate the 26th day of March, 2025.
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294- Presiding Officer of the Senate
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297-Passed the House of Representatives the ____ day of __________,
298-2025.
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302- Presiding Officer of the House
303- of Representatives
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161+COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
162+04/16/2025 - DO PASS, As Amended.