Senate rejects CLO modernization bill after concerns about investment authority and online auctions
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Summary
The Senate voted down SB 14‑76, a Commissioner of Land Office (CLO) reform package that would have added online sales, allowed limited private equity/credit investments and a 25‑year lease cap for investment properties; opponents warned the bill broadened investment risk and could harm agricultural lessees and local taxing districts.
Senator Rader introduced a CLO housekeeping and modernization bill intended to streamline operations, permit online sales auctions for property, allow limited purchases of vehicles for field operations and add a 25‑year lease cap on certain investment properties. He characterized much of the package as "house cleaning" to make the agency more efficient and to focus the CLO on its core mission of maximizing returns for common education.
But the measure drew sustained pushback across the floor. Minority leader Kurt urged caution, saying the bill would broaden CLO’s investment authority into private equity and private credit without sufficient guardrails; he flagged unresolved investigations and the need for stronger structural protections before expanding the agency’s investment toolbox. "This bill creates too many potential risks for our public money," Kurt said.
Several senators from rural districts described local impacts if CLO holdings and lease practices change. Senator Murdoch and others warned that moving ag leases to online sales or auctions could disadvantage local producers, reduce in‑person economic activity tied to auctions and invite out‑of‑state bidders. Concerns also surfaced that CLO land ownership already depresses local property tax rolls in counties with large CLO holdings.
Proponents, including Rader, said the bill addressed complaints and inefficiencies at the CLO and that online sales apply to property sales not agricultural leases (the bill retains in‑person leasing). After extended debate the Senate voted: 11 aye, 33 nay. The presiding officer declared SB 14‑76 failed; Senator Rader served notice he would seek reconsideration at a future date.
