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ENGROSSED HOUSE AMENDME NTS
TO
ENGROSSED SENATE BILL NO . 951 By: Murdock of the Senate
and
Archer of the House
An Act relating to the Commissioners of the Land
Office; amending 64 O.S. 2021, Section 1023, which
relates to the granting of comme rcial and
agricultural leases; providing for appraisal of
certain improvements; directing certain lease to
require certain reimbursement; providing condition
for lease default; prohibiting charging of certain
fees; providing for promulgation of rules; upda ting
statutory reference; updating statutory language; and
providing an effective date .
AUTHOR: Add the following House Coauthor: Burns
AMENDMENT NO. 1. Page 1, lines 6 through 10 1/2, strike the title
to read:
"[ Commissioners of the Land Office - commercial and
agricultural leases - appraisal of improvements –
reimbursement – default – fees – rules - effective
date ]"
AMENDMENT NO. 2. Page 1, line 13, strike the enacting clause
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Passed the House of Representatives the 22nd day of April, 2025.
Presiding Officer of the House of
Representatives
Passed the Senate the ____ day of __________, 2025.
Presiding Officer of the Senate
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ENGROSSED SENATE
BILL NO. 951 By: Murdock of the Senate
and
Archer of the House
An Act relating to the Commissioners of the Land
Office; amending 64 O.S. 2021, Section 1023, which
relates to the granting of commercial and
agricultural leases; pr oviding for appraisal of
certain improvements; directing certain lease to
require certain reimbursement; pro viding condition
for lease default; prohibiting charging of certain
fees; providing for promulgation of rules; updating
statutory reference; updatin g statutory language; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAH OMA:
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 commercial leases and agricultural leases in
trust property.
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 not less than fair market value. All
commercial leases shall provide for fair market value throughout t he
term of the lease.
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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.
The granting of any interest in trust property at less than fair
market value or not in compliance with this section is void.
Any permanent improvement made on commercial trust property from
and 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 agric ultural leases,
the Commissioners of the Land Office shall, unless otherwise
exempted by the Constitution or laws of Oklahoma this state:
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 the Commissioners o f the Land
Office from any financial obligation relate d to land, financing , or
operation.
C. An appraiser selected by the Commissioners of the Land
Office shall appraise any improvements approved by the Commissioners
of the Land Office made to the propert y leased as an agricultural
lease by the current lessee that cannot be removed without manifest
injury to the land. When the Commissioners enter into a new lease
for the property, the lease shall require the new lessee to
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reimburse the previous lessee for the appraised value of any
improvements made by the p revious lessee by the date the new lessee
is permitted to take occupancy of the property. It shall be
considered a default of the lease of the property to the new lessee
if such reimbursement is not ma de. Provided, no fees may be charged
to a lessee above those included in the originally accepted bid to
irrigate land used for agricultural purposes if the water is not
sourced from lands owned or managed by the Commissioners.
D. The Commissioners of the Land Office may refuse to accept
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 refuse to accept
any bid or lease contract where the interested party cannot show
adequate creditworthiness as determined by the Land Office.
F. The Commissioners of the Land Office shall promulgate rules
to implement the provisi ons of this section.
SECTION 2. This act shall become effective November 1, 2025.
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Passed the Senate the 26th day of March, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2025.
Presiding Officer of the House
of Representatives