govt.fyi
Back to SB 265
Oklahoma Legislature· SB 265Placed on General Order

An act relating to water and water rights, the official text

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

1

2                 1st Session of the 60th Legislature (2025)

2

3 SENATE BILL 265           By: Murdock
3

4

4

5

5

6

6

7                           AS INTRODUCED

7

8   An Act relating to water and water rights; creating

8   the Oklahoma Water Infrastructure Loan Program;

9   providing program purpose; specifying eligible

9   projects and entities; creating the Oklahoma Water

10  Infrastructure Revolving Fund; establishing purpose

10  of fund; stating source of fund; providing for

11  allocation of certain funds; requiring promulgation

11  of rules; requiring annual reporting; subjecting

12  program to annual auditing; providing for

12  codification; and declaring an emergency.

13

13

14

14

15

15

16

16

17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
17

18  SECTION 1.     NEW LAW  A new section of law to be codified

18

19 in the Oklahoma Statutes as Section 1085.66 of Title 82, unless
19

20 there is created a duplication in numbering, reads as follows:
20

21  A. 1. The Oklahoma Water Resources Board shall establish an

21

22 Oklahoma Water Infrastructure Loan Program. The program shall be
22

23 utilized to:
23

24

24

    Req. No. 593                                              Page 1
1   a. finance the development of water infrastructure

1

2                 improvements through low-interest loans and grants to

2

3                 municipalities, rural water districts, and other

3

4                 eligible entities for approved water infrastructure

4

5                 projects, and

5

6   b. provide technical assistance and administrative

6

7                 expense support for water infrastructure project

7

8                 implementation.

8

9   2. Approved water infrastructure projects shall include, but

9

10 not be limited to:
10

11  a. the construction, repair, and rehabilitation of water

11

12                treatment plants, pipelines, and storage facilities,

12

13  b. projects to ensure water quality and conservation, and

13

14  c. other projects deemed necessary by the Board to

14

15                address current and future water needs.

15

16  B. The Board shall promulgate rules for project eligibility,

16

17 application procedures, and fund disbursement.
17

18  C. 1. The Board shall submit an annual report electronically

18

19 to the President Pro Tempore of the Senate, the Speaker of the House
19

20 of Representatives, and the Governor, detailing the following:
20

21  a. fund revenues and expenditures,

21

22  b. projects financed and the current status of such

22

23                projects,

23

24  c. future funding needs and recommendations, and

24

    Req. No. 593                                           Page 2
1  d. any other information deemed necessary for inclusion

1

2                by the Board or its staff.

2

3  2. The program shall be subject to an annual independent audit

3

4 of expenditures from the fund.
4

5  SECTION 2.    NEW LAW          A new section of law to be codified

5

6 in the Oklahoma Statutes as Section 1085.67 of Title 82, unless
6

7 there is created a duplication in numbering, reads as follows:
7

8  A. 1. There is hereby created in the State Treasury a

8

9 revolving fund for the Oklahoma Water Resources Board to be
9

10 designated the "Oklahoma Water Infrastructure Revolving Fund". The
10

11 fund shall be a continuing fund, not subject to fiscal year
11

12 limitations, and shall consist of all monies received by the Board
12

13 from the sources prescribed in subsection B of this section provided
13

14 for the purpose of funding water infrastructure projects as
14

15 prescribed by this act. All monies accruing to the credit of the
15

16 fund are hereby appropriated and may be budgeted and expended by the
16

17 Board for the purpose provided for in this act. Expenditures from
17

18 the fund shall be made upon warrants issued by the State Treasurer
18

19 against claims filed as prescribed by law with the Director of the
19

20 Office of Management and Enterprise Services for approval and
20

21 payment. The Board may enter into contracts with financial
21

22 institutions and execute such instruments as may be necessary to
22

23 hold and disseminate program funds in accordance with applicable
23

24 regulations and Board policies.
24

   Req. No. 593                                                 Page 3
1   2. Notwithstanding any other provisions of law, income and

1

2 investment return on fund principal and interest income and
2

3 repayment of principal on loans made from the balance of the fund
3

4 shall accrue to the fund.
4

5   3. Not less than ten percent (10%) of the fund's annual revenue

5

6 shall be allocated to projects in rural or underserved communities,
6

7 as determined by the Board.
7

8   B. Monies deposited to the fund shall include, but not be

8

9 limited to:
9

10  1. Proceeds derived from the sale of surplus water from state-

10

11 owned water resources. Provided:
11

12  a. all proceeds from the sale of state-owned water shall

12

13                be deposited into the fund within thirty (30) days of

13

14                receipt, and

14

15  b. the sale of water under this section shall not violate

15

16                existing water rights agreements;

16

17  2. Fees collected from the leasing of state-owned water rights

17

18 or usage agreements;
18

19  3. Grants, donations, or contributions from federal, state, or

19

20 private entities; and
20

21  4. Interest and investment returns generated from fund

21

22 balances.
22

23  SECTION 3. It being immediately necessary for the preservation

23

24 of the public peace, health or safety, an emergency is hereby
24

    Req. No. 593                                               Page 4
1 declared to exist, by reason whereof this act shall take effect and
1

2 be in full force from and after its passage and approval.
2

3

3

4   60-1-593      RD  12/30/2024 7:25:33 PM

4

5

5

6

6

7

7

8

8

9

9

10

10

11

11

12

12

13

13

14

14

15

15

16

16

17

17

18

18

19

19

20

20

21

21

22

22

23

23

24

24

    Req. No. 593                                             Page 5
Every fact on this page links to its source, starting with the official bill record.