This bill amends 64 O.S. 2021, Section 1023, concerning the management of properties owned by the Commissioners of the Land Office in Oklahoma. It introduces new conditions for granting commercial and agricultural leases on trust property, specifying that commercial leases cannot exceed 55 years and must be awarded through public bidding at fair market value. Agricultural leases are limited to a maximum of 5 years under similar bidding requirements. Additionally, any interest granted in trust property below fair market value is rendered void, and any permanent improvements made on commercial trust property after July 1, 1989, will revert to the trust at the end of the lease.

The bill also establishes a requirement for the Commissioners of the Land Office to make payments in lieu of ad valorem taxes for real property held in counties where they own more than 10% of the land. This payment is contingent upon initiating or renewing a lease and is calculated based on the average tax rate for agricultural land in the county. The county assessor is tasked with providing this tax rate information by September 1 each year, and the payment must be made to the county treasurer by December 31. Furthermore, the required payment will be included in the minimum bidding requirement for leases in the respective counties. The act is set to take effect on January 1, 2026.