Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1858 By: Frix
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6 AS INTRODUCED
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7 An Act relating to development incentives;
7 authorizing public entities to enter into taxpayer
8 agreements with owners of real property within
8 increment districts; prescribing applications of
9 agreements; providing construing language;
9 prescribing lien requirements pursuant to the
10 agreement; prescribing designation and enforcement of
10 delinquent payments and collections; authorizing the
11 assignment of agreement and any lien; authorizing
11 certain bonds issued by public entities to be secured
12 by agreements; authorizing the public entity to grant
12 certain security interest; prescribing limitations to
13 bonds secured by agreement; providing for repayment
13 of secured bonds; authorizing public entities to
14 assign powers to certain trustee or bondholder;
14 providing for codification; and declaring an
15 emergency.
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18 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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19 SECTION 1. NEW LAW A new section of law to be codified
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20 in the Oklahoma Statutes as Section 869.1 of Title 62, unless there
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21 is created a duplication in numbering, reads as follows:
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22 A. A public entity, as defined in Section 853 of Title 62 of
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23 the Oklahoma Statutes, designated to exercise the powers enumerated
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24 pursuant to Section 854 of Title 62 of the Oklahoma Statutes may
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Req. No. 2935 Page 1
1 enter into a taxpayer agreement with the owner or developer of real
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2 property located within an increment district as authorized by
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3 Section 861 of Title 62 of the Oklahoma Statutes. A taxpayer
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4 agreement may be used to:
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5 1. Guarantee, enhance, or otherwise secure the repayment of
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6 bonds, notes, or other obligations issued by the public entity;
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7 2. Provide for payments in lieu of or in addition to tax
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8 increment revenues; and
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9 3. Provide for any payment obligation designed to support the
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10 financing or refinancing of project costs.
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11 B. A taxpayer agreement entered into pursuant to this section
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12 constitutes a voluntary and binding payment obligation of the
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13 property owner or developer and shall not constitute a pledge of the
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14 credit or taxing power of a public entity. Nothing in this act
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15 shall be construed to require a public entity to enter into a
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16 taxpayer agreement.
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17 C. If a taxpayer agreement provides that payments due under the
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18 agreement are secured by a lien on real property, then:
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19 1. The lien shall be in full force and effect automatically
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20 upon execution of the agreement;
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21 2. The lien shall constitute and be treated in the same manner
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22 as a tax lien on real and personal property pursuant to Section 3103
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23 of Title 68 of the Oklahoma Statutes;
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1 3. The lien shall have parity with tax liens on property,
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2 taking priority over any existing or subsequent mortgage judgment,
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3 lien, or encumbrance except for previously filed tax liens on
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4 property; and
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5 4. The lien may be enforced, collected, and foreclosed in the
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6 same manner as ad valorem tax liens as provided for in Sections 3102
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7 through 3106 of Title 68 of the Oklahoma Statutes.
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8 D. A taxpayer agreement containing a lien pursuant to
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9 subsection C of this section may be recorded with the recorder of
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10 deeds in the county in which the property is located. Recordation
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11 provides constructive notice and perfects the lien without further
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12 action.
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13 E. Payments due pursuant to a taxpayer agreement shall be
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14 deemed delinquent when unpaid on the required date. A delinquency
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15 may be certified and enforced in the same manner as delinquent ad
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16 valorem taxes, including:
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17 1. Collection by a taxing jurisdiction;
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18 2. Collection by a county pursuant to Section 3103 of Title 68
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19 of the Oklahoma Statutes;
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20 3. Collection by the public entity or designee; and
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21 4. All interest, penalties, fees, and collection costs
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22 applicable to delinquent ad valorem taxes which shall apply to
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23 delinquent taxpayer agreement payments.
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1 F. A taxpayer agreement and any lien securing it may be
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2 assigned to a trustee or purchaser of bonds secured by the taxpayer
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3 agreement. The assignee shall possess all enforcement rights held
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4 by the public entity.
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5 G. Upon full payment of all obligations secured by the taxpayer
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6 agreement, the public entity shall execute and record a release of
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7 lien, which shall extinguish the lien effective upon recording.
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8 H. Bonds or notes issued pursuant to the authorization in
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9 Section 863 of Title 62 of the Oklahoma Statutes may be secured by:
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10 1. Payments due pursuant to a taxpayer agreement authorized by
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11 this section;
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12 2. Any lien created by a taxpayer agreement; or
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13 3. Reserves, guaranties, or private security.
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14 I. The public entity may pledge, assign, or grant a security
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15 interest in such payments, liens, revenues, or other security to a
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16 trustee or purchaser of the bonds.
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17 J. Bonds issued pursuant to Section 863 of Title 62 of the
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18 Oklahoma Statutes and secured pursuant to this section:
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19 1. Are payable solely from the security pledged;
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20 2. Do not constitute a general obligation of a public entity of
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21 this state;
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22 3. Do not constitute municipal debt for the purposes of any
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23 statutory or constitutional debt limitations; and
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1 4. Impose no financial obligation on a municipality beyond
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2 receipt and remittance of pledged payments.
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3 K. A public entity issuing bonds secured pursuant to this
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4 section acts solely as a conduit issuer, and repayment shall be
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5 limited to:
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6 1. Taxpayer agreement payments;
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7 2. Pledged incremental tax revenues; and
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8 3. Any additional private security.
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9 L. The public entity may assign to a trustee or bondholders:
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10 1. The right of the public entity to receive payments pursuant
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11 to a taxpayer agreement;
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12 2. Any lien securing such payments;
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13 3. Any enforcement rights authorized pursuant to this section;
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14 and
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15 4. All enforcement powers held by the public entity.
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16 M. The powers granted by this section are supplemental to the
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17 existing powers of public entities under all other laws.
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18 SECTION 2. It being immediately necessary for the preservation
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19 of the public peace, health or safety, an emergency is hereby
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20 declared to exist, by reason whereof this act shall take effect and
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21 be in full force from and after its passage and approval.
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23 60-2-2935 QD 1/15/2026 1:55:29 AM
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Req. No. 2935 Page 5Every fact on this page links to its source, starting with the official bill record.