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Oklahoma Legislature· SB 1205Second Reading referred to Judiciary

An act relating to municipalities, the official text

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1                            STATE OF OKLAHOMA

1

2                  2nd Session of the 60th Legislature (2026)

2

3 SENATE BILL 1205              By: Daniels
3

4

4

5

5

6                               AS INTRODUCED

6

7   An Act relating to municipalities; creating the

7   Oklahoma Safe Neighborhoods Act of 2026; providing

8   short title; defining terms; allowing certain

8   individuals to submit certain claims for compensation

9   from municipality; providing requirements for certain

9   compensation; requiring municipality take certain

10  action within certain period; providing for certain

10  cause of action; allowing for certain additional

11  compensation in certain circumstance; providing

11  certain exemptions; allowing certain individuals to

12  submit certain claims for compensation from county;

12  providing requirements for certain compensation;

13  requiring county take certain action within certain

13  period; providing for certain cause of action;

14  allowing for certain additional compensation in

14  certain circumstances; providing certain exemptions;

15  providing for noncodification; providing for

15  codification; providing an effective date; and

16  declaring an emergency.

16

17

17

18

18

19 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
19

20  SECTION 1.      NEW LAW     A new section of law not to be

20

21 codified in the Oklahoma Statutes reads as follows:
21

22  This act shall be known and may be cited as the "Oklahoma Safe

22

23 Neighborhoods Act of 2026".
23

24

24

    Req. No. 2389                                              Page 1
1   SECTION 2.     NEW LAW        A new section of law to be codified

1

2 in the Oklahoma Statutes as Section 22-166 of Title 11, unless there
2

3 is created a duplication in numbering, reads as follows:
3

4   As used in Sections 3 through 6 of this act:

4

5   1. "Fair market value" means the value or price at which a

5

6 willing buyer would purchase property and a willing seller would
6

7 sell property if both parties are knowledgeable about the property
7

8 and its uses and if neither party is under any undue pressure to buy
8

9 or sell, and for real property shall mean the value for the highest
9

10 and best use for which such property was actually used, or was
10

11 previously classified for use, during the calendar year next
11

12 preceding the applicable January 1 assessment date;
12

13  2. "Illegal public camping" means the act of constructing or

13

14 arranging any tent, shelter, or bedding for the purpose of or in
14

15 such way to permit overnight use on a property not designated for
15

16 such use;
16

17  3. "Loitering" means to stand or wait around idly or without

17

18 apparent or rational purpose;
18

19  4. "Panhandling" means the process of occupying areas adjacent

19

20 to public rights-of-way with the intent of soliciting donations for
20

21 any purpose with the knowledge that there will be a likelihood of
21

22 those seeking such donations stepping into the public right-of-way
22

23 where vehicular traffic is or may be present;
23

24

24

    Req. No. 2389                                           Page 2
1   5. "Policy, pattern, or practice" means an act that is

1

2 systemic, pervasive, or organized, or of a generalized nature such
2

3 that it is the standard operating procedure, but does not include
3

4 isolated, sporadic, or accidental acts;
4

5   6. "Property owner" means one or more persons, jointly or

5

6 severally, in whom is vested:
6

7   a. all or any part of the legal title to a real property,

7

8                  or

8

9   b. all or any part of the beneficial ownership and a

9

10                 right to present use and enjoyment of the property,

10

11                 and such term includes a mortgagee in possession; and

11

12  7. "Triple net leaseholder" means the lessee of a commercial

12

13 lease where the lessee pays rent and utilities as well as insurance,
13

14 maintenance, and property taxes on such leased property.
14

15  SECTION 3.         NEW LAW   A new section of law to be codified

15

16 in the Oklahoma Statutes as Section 22-167 of Title 11, unless there
16

17 is created a duplication in numbering, reads as follows:
17

18  A. 1. Any property owner or triple net leaseholder with real

18

19 property located within a municipality with a population over one
19

20 hundred thirty thousand (130,000), according to the latest Federal
20

21 Decennial Census, may submit a written claim for compensation if the
21

22 municipality where such real property is located:
22

23

23

24

24

    Req. No. 2389                                            Page 3
1   a. adopts any ordinance, policy, practice, or law

1

2                  declining to enforce existing laws, ordinances, or

2

3                  rules prohibiting:

3

4                  (1) illegal public camping,

4

5                  (2) obstructing public thoroughfares,

5

6                  (3) loitering,

6

7                  (4) panhandling,

7

8                  (5) public urination or defecation,

8

9                  (6) public consumption of alcoholic beverages,

9

10                 (7) possession or use of illegal substances, or

10

11                 (8) shoplifting,

11

12  and such owner or leaseholder incurs and documents an

12

13  expense to mitigate the effects of such on the owner's or

13

14  leaseholder's real property, or

14

15  b. maintains a public nuisance, and such owner incurs and

15

16                 documents an expense to mitigate the effects of such

16

17                 public nuisance on the owner's or leaseholder's real

17

18                 property.

18

19  2. For any claim submitted under the provisions of this

19

20 subsection, a property owner or triple net leaseholder shall receive
20

21 as compensation an amount equal to the documented expenses incurred
21

22 by such owner or leaseholder that were reasonably necessary to
22

23 mitigate the effects of such ordinance, policy, practice, law, or
23

24 public nuisance on such owner's or leaseholder's real property.
24

    Req. No. 2389                                         Page 4
1   B. 1. Any property owner or triple net leaseholder with real

1

2 property located within a municipality with a population over one
2

3 hundred thirty thousand (130,000), according to the latest Federal
3

4 Decennial Census, may submit a written claim for compensation if the
4

5 municipality where such real property is located:
5

6   a. adopts any ordinance, policy, practice, or law

6

7                  declining to enforce existing laws, ordinances, or

7

8                  rules prohibiting:

8

9                  (1) illegal public camping,

9

10                 (2) obstructing public thoroughfares,

10

11                 (3) loitering,

11

12                 (4) panhandling,

12

13                 (5) public urination or defecation,

13

14                 (6) public consumption of alcoholic beverages,

14

15                 (7) possession or use of illegal substances, or

15

16                 (8) shoplifting,

16

17  and the fair market value of such property owner's or

17

18  leaseholder's private real property is reduced by such, or

18

19  b. maintains a public nuisance, and the fair market value

19

20                 of such property owner's or leaseholder's private real

20

21                 property is reduced by such public nuisance.

21

22  2. For any claim submitted under the provisions of this

22

23 subsection, a property owner or triple net leaseholder shall receive
23

24 as compensation an amount equal to the reduction in fair market
24

    Req. No. 2389                                                Page 5
1 value of such owner's or leaseholder's private real property
1

2 resulting from the ordinance, policy, practice, law, or public
2

3 nuisance.
3

4   SECTION 4.     NEW LAW  A new section of law to be codified

4

5 in the Oklahoma Statutes as Section 22-168 of Title 11, unless there
5

6 is created a duplication in numbering, reads as follows:
6

7   Any compensation paid under the provisions of Section 3 of this

7

8 act:
8

9   1. Shall be in lieu of any claim for monetary damages; and

9

10  2. May not exceed the amount paid by the property owner or

10

11 triple net leaseholder in primary property taxes for the prior tax
11

12 year on such property. If the total amount of the claim for
12

13 compensation is greater than such amount paid by the owner or
13

14 leaseholder, and such claim is accepted, the municipality shall pay
14

15 such owner or leaseholder an amount equal to the amount paid by such
15

16 owner or leaseholder in primary property taxes for the prior tax
16

17 year. The property owner may submit a claim for the remaining
17

18 portion of compensation in the following and subsequent tax years,
18

19 as needed.
19

20  SECTION 5.     NEW LAW  A new section of law to be codified

20

21 in the Oklahoma Statutes as Section 22-169 of Title 11, unless there
21

22 is created a duplication in numbering, reads as follows:
22

23  A. 1. Within thirty (30) days of a property owner or triple

23

24 net leaseholder submitting a written claim for compensation to a
24

    Req. No. 2389                                            Page 6
1 municipality, as provided by Section 3 of this act, the municipality
1

2 shall either accept or reject such claim.
2

3   2. If a municipality accepts such claim, it shall pay the

3

4 compensation requested by such owner or leaseholder.
4

5   3. If a municipality rejects such claim, or does not respond to

5

6 the claim within thirty (30) days, such owner or leaseholder may
6

7 file a cause of action in the district court of the county in which
7

8 the real property is located to challenge the rejection of the
8

9 claim. The questions of whether the property owner is entitled to
9

10 such compensation and whether the amount of the claim is reasonable
10

11 are judicial questions in a cause of action filed pursuant to this
11

12 paragraph. The municipality shall have the burden of proof to
12

13 demonstrate that its rejection is lawful or that the amount of the
13

14 claim is unreasonable. The property owner or triple net leaseholder
14

15 shall not be liable to the municipality for attorney fees or costs.
15

16 If such owner or leaseholder prevails, they shall be awarded
16

17 reasonable attorney fees and costs.
17

18  B. 1. A property owner or triple net leaseholder shall not be

18

19 required to submit any claim besides that provided for in Section 3
19

20 of this act as a prerequisite to demanding or receiving
20

21 compensation.
21

22  2. A property owner or triple net leaseholder may only submit a

22

23 claim under the provisions of Section 3 of this act once per tax
23

24 year.
24

    Req. No. 2389                                           Page 7
1   C. If the ordinance, policy, practice, law, or public nuisance

1

2 remains in place after the property owner or triple net leaseholder
2

3 submits a claim as provided in Section 3 of this act, and such owner
3

4 or leaseholder files a claim for compensation in a subsequent tax
4

5 year, the owner or leaseholder shall be entitled to request
5

6 reasonable additional compensation unless the municipality and such
6

7 owner or leaseholder enter into a knowing and voluntary settlement,
7

8 or the municipality ends or abates the ordinance, policy, practice,
8

9 law, or public nuisance.
9

10  SECTION 6.     NEW LAW   A new section of law to be codified

10

11 in the Oklahoma Statutes as Section 22-170 of Title 11, unless there
11

12 is created a duplication in numbering, reads as follows:
12

13  A. This act shall not be construed as prohibiting a property

13

14 owner or triple net leaseholder from entering into a knowing and
14

15 voluntary settlement with a municipality for an amount less than
15

16 such owner's or leaseholder's claim for compensation submitted under
16

17 the provisions of Section 3 of this act.
17

18  B. The provisions of this act shall not apply to:

18

19  1. Decisions by municipal authorities to exercise prosecutorial

19

20 discretion not to prosecute alleged offenders, if such discretion is
20

21 exercised on a case-by-case basis and the justifications for each
21

22 decision are published monthly by the municipality;
22

23  2. Acts of clemency; or

23

24  3. Acts or omissions mandated by federal law.

24

    Req. No. 2389                                            Page 8
1   SECTION 7.     NEW LAW        A new section of law to be codified

1

2 in the Oklahoma Statutes as Section 390.1 of Title 19, unless there
2

3 is created a duplication in numbering, reads as follows:
3

4   As used in Sections 8 through 11 of this act:

4

5   1. "Fair market value" means the value or price at which a

5

6 willing buyer would purchase property and a willing seller would
6

7 sell property if both parties are knowledgeable about the property
7

8 and its uses and if neither party is under any undue pressure to buy
8

9 or sell, and for real property shall mean the value for the highest
9

10 and best use for which such property was actually used, or was
10

11 previously classified for use, during the calendar year next
11

12 preceding the applicable January 1 assessment date;
12

13  2. "Illegal public camping" means the act of constructing or

13

14 arranging any tent, shelter, or bedding for the purpose of or in
14

15 such way to permit overnight use on a property not designated for
15

16 such use;
16

17  3. "Loitering" means to stand or wait around idly or without

17

18 apparent or rational purpose;
18

19  4. "Panhandling" means the process of occupying areas adjacent

19

20 to public rights-of-way with the intent of soliciting donations for
20

21 any purpose with the knowledge that there will be a likelihood of
21

22 those seeking such donations stepping into the public right-of-way
22

23 where vehicular traffic is or may be present;
23

24

24

    Req. No. 2389                                           Page 9
1   5. "Policy, pattern, or practice" means an act that is

1

2 systemic, pervasive, or organized, or of a generalized nature such
2

3 that it is the standard operating procedure, but does not include
3

4 isolated, sporadic, or accidental acts;
4

5   6. "Property owner" means one or more persons, jointly or

5

6 severally, in whom is vested:
6

7   a. all or any part of the legal title to a real property,

7

8                  or

8

9   b. all or any part of the beneficial ownership and a

9

10                 right to present use and enjoyment of the property,

10

11                 and such term includes a mortgagee in possession; and

11

12  7. "Triple net leaseholder" means the lessee of a commercial

12

13 lease where the lessee pays rent and utilities as well as insurance,
13

14 maintenance, and property taxes on such leased property.
14

15  SECTION 8.         NEW LAW   A new section of law to be codified

15

16 in the Oklahoma Statutes as Section 390.2 of Title 19, unless there
16

17 is created a duplication in numbering, reads as follows:
17

18  A. 1. Any property owner or triple net leaseholder with real

18

19 property located within a municipality with a population over one
19

20 hundred thirty thousand (130,000), according to the latest Federal
20

21 Decennial Census, may submit a written claim for compensation if the
21

22 county where such real property is located:
22

23

23

24

24

    Req. No. 2389                                            Page 10
1   a. adopts any ordinance, policy, practice, or law

1

2                  declining to enforce existing laws, ordinances, or

2

3                  rules prohibiting:

3

4                  (1) illegal public camping,

4

5                  (2) obstructing public thoroughfares,

5

6                  (3) loitering,

6

7                  (4) panhandling,

7

8                  (5) public urination or defecation,

8

9                  (6) public consumption of alcoholic beverages,

9

10                 (7) possession or use of illegal substances, or

10

11                 (8) shoplifting,

11

12  and such owner or leaseholder incurs and documents an

12

13  expense to mitigate the effects of such on the owner's or

13

14  leaseholder's real property, or

14

15  b. maintains a public nuisance, and such owner incurs and

15

16                 documents an expense to mitigate the effects of such

16

17                 public nuisance on the owner's or leaseholder's real

17

18                 property.

18

19  2. For any claim submitted under the provisions of this

19

20 subsection, a property owner or triple net leaseholder shall receive
20

21 as compensation an amount equal to the documented expenses incurred
21

22 by such owner or leaseholder that were reasonably necessary to
22

23 mitigate the effects of such ordinance, policy, practice, law, or
23

24 public nuisance on such owner's or leaseholder's real property.
24

    Req. No. 2389                                         Page 11
1   B. 1. Any property owner or triple net leaseholder with real

1

2 property located within a municipality with a population over one
2

3 hundred thirty thousand (130,000), according to the latest Federal
3

4 Decennial Census, may submit a written claim for compensation if the
4

5 county where such real property is located:
5

6   a. adopts any ordinance, policy, practice, or law

6

7                  declining to enforce existing laws, ordinances, or

7

8                  rules prohibiting:

8

9                  (1) illegal public camping,

9

10                 (2) obstructing public thoroughfares,

10

11                 (3) loitering,

11

12                 (4) panhandling,

12

13                 (5) public urination or defecation,

13

14                 (6) public consumption of alcoholic beverages,

14

15                 (7) possession or use of illegal substances, or

15

16                 (8) shoplifting,

16

17  and the fair market value of such property owner's or

17

18  leaseholder's private real property is reduced by such, or

18

19  b. maintains a public nuisance, and the fair market value

19

20                 of such property owner's or leaseholder's private real

20

21                 property is reduced by such public nuisance.

21

22  2. For any claim submitted under the provisions of this

22

23 subsection, a property owner or triple net leaseholder shall receive
23

24 as compensation an amount equal to the reduction in fair market
24

    Req. No. 2389                                                Page 12
1 value of such owner's or leaseholder's private real property
1

2 resulting from the ordinance, policy, practice, law, or public
2

3 nuisance.
3

4   SECTION 9.     NEW LAW  A new section of law to be codified

4

5 in the Oklahoma Statutes as Section 390.3 of Title 19, unless there
5

6 is created a duplication in numbering, reads as follows:
6

7   Any compensation paid under the provisions of Section 8 of this

7

8 act:
8

9   1. Shall be in lieu of any claim for monetary damages; and

9

10  2. May not exceed the amount paid by the property owner or

10

11 triple net leaseholder in primary property taxes for the prior tax
11

12 year on such property. If the total amount of the claim for
12

13 compensation is greater than such amount paid by the owner or
13

14 leaseholder, and such claim is accepted, the county shall pay such
14

15 owner or leaseholder an amount equal to the amount paid by such
15

16 owner or leaseholder in primary property taxes for the prior tax
16

17 year. The property owner may submit a claim for the remaining
17

18 portion of compensation in the following and subsequent tax years,
18

19 as needed.
19

20  SECTION 10.    NEW LAW  A new section of law to be codified

20

21 in the Oklahoma Statutes as Section 390.4 of Title 19, unless there
21

22 is created a duplication in numbering, reads as follows:
22

23  A. 1. Within thirty (30) days of a property owner or triple

23

24 net leaseholder submitting a written claim for compensation to a
24

    Req. No. 2389                                            Page 13
1 county, as provided by Section 8 of this act, the county shall
1

2 either accept or reject such claim.
2

3   2. If a county accepts such claim, it shall pay the

3

4 compensation requested by such owner or leaseholder.
4

5   3. If a county rejects such claim, or does not respond to the

5

6 claim within thirty (30) days, such owner or leaseholder may file a
6

7 cause of action in the district court of the county in which the
7

8 real property is located to challenge the rejection of the claim.
8

9 The questions of whether the property owner is entitled to such
9

10 compensation and whether the amount of the claim is reasonable are
10

11 judicial questions in a cause of action filed pursuant to this
11

12 paragraph. The county shall have the burden of proof to demonstrate
12

13 that its rejection is lawful or that the amount of the claim is
13

14 unreasonable. The property owner or triple net leaseholder shall
14

15 not be liable to the county for attorney fees or costs. If such
15

16 owner or leaseholder prevails, they shall be awarded reasonable
16

17 attorney fees and costs.
17

18  B. 1. A property owner or triple net leaseholder shall not be

18

19 required to submit any claim besides that provided for in Section 8
19

20 of this act as a prerequisite to demanding or receiving
20

21 compensation.
21

22  2. A property owner or triple net leaseholder may only submit a

22

23 claim under the provisions of Section 8 of this act once per tax
23

24 year.
24

    Req. No. 2389                                           Page 14
1   C. If the ordinance, policy, practice, law, or public nuisance

1

2 remains in place after the property owner or triple net leaseholder
2

3 submits a claim as provided in Section 8 of this act, and such owner
3

4 or leaseholder files a claim for compensation in a subsequent tax
4

5 year, the owner or leaseholder shall be entitled to request
5

6 reasonable additional compensation unless the county and such owner
6

7 or leaseholder enter into a knowing and voluntary settlement, or the
7

8 county ends or abates the ordinance, policy, practice, law, or
8

9 public nuisance.
9

10  SECTION 11.     NEW LAW  A new section of law to be codified

10

11 in the Oklahoma Statutes as Section 390.5 of Title 19, unless there
11

12 is created a duplication in numbering, reads as follows:
12

13  A. This act shall not be construed as prohibiting a property

13

14 owner or triple net leaseholder from entering into a knowing and
14

15 voluntary settlement with a county for an amount less than such
15

16 owner's or leaseholder's claim for compensation submitted under the
16

17 provisions of Section 8 of this act.
17

18  B. The provisions of this act shall not apply to:

18

19  1. Decisions by county authorities to exercise prosecutorial

19

20 discretion not to prosecute alleged offenders, if such discretion is
20

21 exercised on a case-by-case basis and the justifications for each
21

22 decision are published monthly by the county;
22

23  2. Acts of clemency; or

23

24  3. Acts or omissions mandated by federal law.

24

    Req. No. 2389                                            Page 15
1   SECTION 12. This act shall become effective July 1, 2026.

1

2   SECTION 13. It being immediately necessary for the preservation

2

3 of the public peace, health or safety, an emergency is hereby
3

4 declared to exist, by reason whereof this act shall take effect and
4

5 be in full force from and after its passage and approval.
5

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    Req. No. 2389                                            Page 16
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