Commissioners of the Land Office

Summary of Policy Considerations and Agency Recommendations

Policy Considerations

The Legislature may consider the following policy changes: 

• Directing CLO to adopt a plan to divest of surface land investments as leases expire and convert the value of the holding to interest-bearing investments. 
• As land holdings are liquated, allow for a graduated increase in the limit for percent of funds invested in securities.
• Prohibit CLO from making direct investments in companies not publicly traded.
• Require school districts to annually report the amount of distributions received from CLO and a description of how those distributions were used.
• Amend 64 O.S. § 1002A to require CLO to submit a fiscal impact analysis to the taxing district governing body prior to the exchange or purchase of commercial properties, reflecting the impact to ad valorem tax collections.
• Repeal language in 61 O.S. § 327 that authorizes the Secretary of the Commissioners of the Land Office to provide services to sell, transfer, trade, or purchase real property for State agencies to remove any potential conflicts of interest in opposing priorities.
• Specify permissible uses of money remaining in the Commissioners of the Land Office Fund after CLO operations are funded through appropriations.
• Create a distribution stabilization fund, to be funded out of remaining money in the Commissioners of the Land Office Fund after CLO’s operating budget is withdrawn, to smooth amounts school districts receive. 

Agency Considerations

The Commissioners of the Land Office should: 

• Change administrative rules to allow sublease of agricultural lands for compatible uses.
• To save litigation costs, use the Royalty Compliance Division to pursue and capture due royalties on the front end, rather than retroactively recovering revenues after audits determine full payment was not remitted.
• Provide an annual report to the Legislature detailing all funds expended from the Commissioners of the Land Office Fund that are not already included in the agency’s appropriated budget.