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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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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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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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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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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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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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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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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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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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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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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 11Every fact on this page links to its source, starting with the official bill record.