Legislation to modernize the process of selling state-owned railroad assets in Oklahoma is headed to Gov. Kevin Stitt’s desk.
Senate Bill 341, introduced by state Rep. Dell Kerbs (R-Shawnee) will require the Oklahoma Department of Transportation to begin a Request for Proposal process when selling any railroad assets by the state. Any interested parties would then have 120 days to respond to the ROP.
“This bill reflects our responsibility to manage state resources wisely and transparently,” Kerbs said. “By outlining a fair and open process for selling surplus rail properties, we’re not only protecting taxpayer interests but also creating opportunities for local development. It’s a practical solution that balances accountability with the potential for private-sector innovation.”
It would be ODOT’s responsibility to evaluate the proposals and conduct and economic impact or activity study as part of the evaluation process. The ODOT must then present a recommendation to the Oklahoma Transportation Commission within 90 days of reviewing the proposals. The bill also clarifies that any purchases made under the lease-purchase agreement must also be approved by the Transportation Commission.
State Sen. Avery Frix (R-Muskogee) said the legislation provides the state with a way to move assets out of state control.
“With the Legislature’s approval of Senate Bill 341, we’re opening doors for economic development and growth by making it easier to transfer underutilized state-owned railroads to the private sector,” Frix said. “Putting these rail lines back in the hands of the private sector will strengthen our state’s railroads and our transportation system overall. This bill is an important step toward modernizing our rail infrastructure, and I look forward to seeing it signed into law.”
The legislation passed in the House by a vote of 81-8.