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Oklahoma Legislature· SB 2060Approved by Governor 04/17/2026

An act relating to public infrastructure districts, the official text

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1                     STATE OF OKLAHOMA

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

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3 SENATE BILL 2060                    By: Haste
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6                               AS INTRODUCED

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7   An Act relating to public infrastructure districts;

7   amending 11 O.S. 2021, Sections 39-102 and 39-103,

8   which relate to the creation of certain districts;

8   defining terms; providing certain requirements for

9   approval of applications for the creation of certain

9   districts; granting authority to make certain

10  improvements; authorizing districts to take certain

10  actions; amending 11 O.S. 2021, Section 39-115, which

11  relates to the issuance of certain bonds; authorizing

11  the issuance of certain bonds by districts; providing

12  for codification; and providing an effective date.

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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16  SECTION 1.        AMENDATORY      11 O.S. 2021, Section 39-102, is

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17 amended to read as follows:
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18  Section 39-102. As used in the Improvement District Act, the

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19 singular includes the plural and:
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20  1. "Acquired" means the acquisition of property or interests in

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21 property by purchase, gift, condemnation or other lawful means;
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22  2. "City" means any city or town incorporated pursuant to the

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23 laws of Oklahoma;
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    Req. No. 3373                                              Page 1
1   3. "Engineer" means a city engineer, city official, employee or

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2 other person competent to advise and assist the governing body in
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3 planning and making an improvement;
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4   4. "Cost" means any cost necessarily or reasonably incurred in

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5 making the improvement, including but not limited to cost of:
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6   a. preparation of preliminary reports,

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7   b. preparation of plans and specifications,

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8   c. preparation and publication of notices of hearings,

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9                  resolutions, ordinances and other proceedings,

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10  d. fees and expenses for engineers, attorneys, laborers

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11                 and other personal services,

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12  e. rights-of-way, materials and other lawful expenses

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13                 incurred in making any improvement, and

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14  f. capitalized interest, funding of reserves, premiums

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15                 for reserve surety bonds, and obtaining bond

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16                 insurance, letters of credit or other credit

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17                 enhancements or liquidity instruments;

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18  5. "District" means an area designated by the governing body to

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19 be benefited by an improvement and subjected to payment of special
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20 assessments for all or a portion of the cost of the improvement;
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21  6. "Governing body" means the city council, city commission or,

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22 board of trustees of an incorporated city or town, or the board of
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23 supervisors of a master development district;
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    Req. No. 3373                                                Page 2
1   7. "Governing document" means the document governing the

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2 creation of the improvement district or master development district;
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3   8. "Improve" means to construct, reconstruct, maintain,

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4 restore, replace, renew, repair, install, equip, extend, purchase,
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5 alter or otherwise perform any work which provides a new facility,
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6 or enhances, extends or restores the value or usefulness of an
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7 existing facility;
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8   8. 9. "Improvement" means any type of improvement made by

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9 authority of this Improvement District Act and includes
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10 reimprovement of any prior improvement made pursuant to any other
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11 act;
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12  9. 10. "Mail" means by first-class mail;

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13  10. 11. "Master development district" means an area of a

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14 municipality with defined limits and boundaries that operates
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15 separately and distinctly from the municipality and subject to the
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16 provisions of this act including, but not limited to, special levies
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17 against the real property therein for the financing or repayment of
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18 the costs of the master development district's public improvements;
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19  12. "Trustee" means a city acting pursuant to this act;

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20  11. 13. "Street" means any highway, street, alley, boulevard,

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21 avenue, right-of-way, public ground, or other public facility, or
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22 any part thereof; and
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    Req. No. 3373                                          Page 3
1   12. 14. "Surface property owner" means the owner or owners of

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2 record of the surface of the property included in a proposed master
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3 development district or improvement district; and
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4   15. "Publish" or "publication" means printing in a newspaper

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5 which maintains an office in the city or town and is of general
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6 circulation within the city or town, or, if there is no newspaper
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7 which maintains an office in the city or town, a newspaper of
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8 general circulation within the city or town and in two (2) separate
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9 issues thereof, at least seven (7) days apart.
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10  SECTION 2.     AMENDATORY   11 O.S. 2021, Section 39-103, is

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11 amended to read as follows:
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12  Section 39-103. A. The governing body of any city may create

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13 one or more districts improvement districts for the purpose of
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14 making or causing to be made any improvement or combination of
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15 improvements that confer special benefit upon property within the
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16 district.
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17  B. Upon receipt of an application for a proposed master

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18 development district, the governing body of any city shall approve
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19 the creation of the master development district if the applicant
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20 demonstrates the following:
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21  1. One hundred percent (100%) of the surface owners within the

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22 boundaries of the proposed master development district have
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23 consented in writing to its creation and approved the master
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24 development district's governing document; and
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    Req. No. 3373                                               Page 4
1   2. The project area comprises at least two hundred fifty (250)

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2 acres or the projected private-sector investment within the district
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3 boundaries exceeds Two Hundred Fifty Million Dollars
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4 ($250,000,000.00).
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5   C. A master development district's governing document shall

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6 create an independent board of supervisors, which shall be the
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7 governing body of the master development district. The board of
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8 supervisors shall have the same rights and powers as the governing
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9 body of a city has over improvement districts, but shall be
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10 independent of the municipal governing body.
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11  D. The governing bodies of improvement districts and master

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12 development districts shall have authority to make such improvements
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13 or combinations of improvements as it deems beneficial to the
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14 district. Such improvement or combination of improvements may
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15 include the following, without limitation because of enumeration:
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16  1. Acquisition of property or interest in property when

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17 necessary for any of the purposes authorized by the Improvement
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18 District Act;
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19  2. Opening, creating, widening and extending or altering of

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20 streets to improve paving, and surfacing, constructing and
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21 reconstructing gutters, curbs, sidewalks, crosswalks, driveway
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22 entrances and structures, drainage facilities, and service
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23 connections from sewers, water, gas, electricity and other utility
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24 mains, conduits or pipes;
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    Req. No. 3373                                              Page 5
1   3. Constructing or improving main and lateral storm water

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2 drains and sanitary sewer systems and facilities;
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3   4. Installation or improvement of street lights and street

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4 lighting systems;
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5   5. Construction or improvement of water mains and waterworks

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6 systems;
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7   6. Improvement of parks, playgrounds and recreational

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8 facilities;
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9   7. Improvement of any street, parking or other facility by

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10 landscaping, or planting of trees, shrubs and other plants;
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11  8. Constructing or improving dikes, levees and other flood

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12 control works, gates, lift stations, bridges and streets appurtenant
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13 thereto;
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14  9. Constructing or improving vehicle and pedestrian bridges,

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15 overpasses and tunnels;
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16  10. Constructing or improving retaining walls and area walls on

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17 public ways or land abutting thereon;
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18  11. Constructing or improving property for off-street parking

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19 facilities, including construction and equipment of buildings
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20 thereon;
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21  12. Constructing or improving pedestrian malls; or

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22  13. Acquiring or installing pieces of art;

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23  14. Acquiring, constructing, or improving libraries,

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24 recreational facilities, or other buildings or facilities; or
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    Req. No. 3373                                               Page 6
1   15. Constructing or improving offsite facilities or

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2 infrastructure serving all or a portion of land within a district;
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3 notwithstanding that, such facilities or infrastructure may also
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4 serve areas outside a district, but subject to cost apportionment
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5 requirements of subsection A of Section 39-110 of this title.
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6   SECTION 3.       NEW LAW  A new section of law to be codified

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7 in the Oklahoma Statutes as Section 39-103.2 of Title 11, unless
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8 there is created a duplication in numbering, reads as follows:
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9   A. A district is authorized to purchase, construct, acquire,

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10 own, operate, maintain, repair, improve, or extend inside and
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11 outside its boundaries any and all works, improvements, facilities,
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12 plants, equipment, and appliances necessary to accomplish the
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13 purposes of the district authorized by law, including all works,
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14 improvements, facilities, plants, equipment, and appliances
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15 incident, helpful, or necessary to:
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16  1. Supply water for municipal uses, domestic uses, power,

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17 commercial purposes and all other beneficial uses or controls;
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18  2. Collect, transport, process, dispose of, and control all

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19 domestic, industrial, or communal wastes whether in fluid, solid, or
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20 composite state;
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21  3. Gather, conduct, divert, and control local storm water or

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22 other local harmful excesses of water in a district;
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23  4. Irrigate the land in a district;

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24  5. Alter land elevation in a district where it is needed; and

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    Req. No. 3373                                               Page 7
1   6. Navigate coastal and inland waters of the district.

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2   B. To ensure the financial stability of a master development

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3 district and the security of its assessments, the municipality and
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4 the master development district shall enter into a master
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5 development agreement.
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6   C. The master development agreement shall legally vest the

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7 development rights including, but not limited to, permitted uses,
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8 densities, and intensities of use, for the duration of the
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9 district's existence. The municipality shall not apply subsequent
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10 changes to zoning or land-use regulations that materially impair the
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11 district's ability to generate the revenue necessary to service its
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12 bonded indebtedness.
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13  SECTION 4.     AMENDATORY   11 O.S. 2021, Section 39-115, is

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14 amended to read as follows:
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15  Section 39-115. A. To pay all or any part of the cost of the

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16 improvement, the governing body may issue, in the name of the city
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17 or a public trust entity acting on behalf of the city, the district
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18 may issue bonds in one or more series and in amounts not exceeding
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19 the total cost of the improvement financed by each series, including
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20 costs of issuance, capitalized interest, funding of reserves,
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21 premiums for reserve surety bonds, and obtaining bond insurance,
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22 letters of credit or other credit enhancement or liquidity
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23 instruments in connection with each series. If the bonds recite
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24 that:
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    Req. No. 3373                                              Page 8
1       1. The proceedings relating to making the improvement and

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2 levying the assessments to pay for the improvement have been done in
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3 compliance with law; and
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4       2. All prerequisites to the fixing of the assessment lien

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5 against the tract or parcel of land benefited by the improvement
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6 have been performed;
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7 such recital shall be conclusive evidence of the facts recited.
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8       B. The bonds shall:

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9       1. Recite the terms and conditions for their issuance;

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10      2. Be payable from the money collected from the assessment

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11 authorized in Section 39-111 of this title;
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12      3. Bear a rate of interest not less than two percent (2%) of

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13 the rate of interest on the deferred installments of the assessment;
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14 and
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15      4. Mature not later than thirty (30) years after the date of

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16 issuance of the bonds of a particular series.
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17      C. Payment of the bonds issued for a storm sewer, lighting,

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18 street, alley, curb, gutter or sidewalk improvement may be
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19 supplemented from gasoline tax money remitted by the State of
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20 Oklahoma on or before a date not more than twelve (12) months after
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21 the last deferred installment of an assessment is due from the owner
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22 of a tract or parcel of land so assessed. Payment of the bonds
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23 issued for a water, sewer, gas, electric or other improvement may be
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24 supplemented from the funds received by the water, sewer, gas,
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    Req. No. 3373                                               Page 9
1 electric or other facility on or before a date not more than twelve
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2 (12) months after the last deferred installment of an assessment is
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3 due from the owner of a tract or parcel of land so assessed.
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4   D. The bonds may be issued to the contractor in payment for the

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5 construction of the improvement or may be issued and sold:
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6   1. In payment of the city's proportion of the cost of the

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7 improvement;
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8   2. In payment of the proportionate cost if the improvement is

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9 done in cooperation with another governmental agency;
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10  3. In payment of the construction of the improvement done under

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11 contract; or
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12  4. In reimbursement to the city district if the city district

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13 constructed the improvement with city district owned or leased
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14 equipment and city district employees.
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15  E. Any city may contract for the issuance and sale of bonds or

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16 assignable certificates.
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17  F. Bonds or assignable certificates may be sold at a public or

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18 private sale at a discount.
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19  G. After the passage of thirty (30) days from the publication

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20 of the ordinance or resolution authorizing the issuance of district
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21 bonds, any action attacking the validity of any proceedings had or
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22 taken by the governing body of the city preliminary to and in the
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23 authorization and issuance of the bonds described in the notice is
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24 perpetually barred.
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    Req. No. 3373                                             Page 10
1   H. Bonds issued pursuant to this section shall not:

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2   1. Constitute public debt, liability, or obligation on behalf

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3 of the municipality; or
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4   2. Be considered for any purpose of any constitutional,

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5 statutory, or charter debt limitation applicable to the municipality
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6 or impair the municipality's bonding authority.
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7   SECTION 5. This act shall become effective November 1, 2026.

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9   60-2-3373      BRC     1/15/2026 11:26:45 AM

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    Req. No. 3373                                        Page 11
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