Cities and towns; prohibiting imposition of certain taxes and fees on certain bond revenue; municipal taxation; conforming language; emergency.

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ENGROSSED HOUSE
BILL NO. 1220 By: West (Kevin), Fugate and
McCane of the House

and

Standridge of the Senate

An Act relating to securitization revenue stream of
certain obligations issued by the Oklahoma
Development Finance Authority pursuant to the
February 2021 Regulated Utility Consumer Protection
Act; and pursuant to the February 2021 Unregulated
Utility Consumer Protection Act; making legislative
findings with regard to matters of statewide concern;
imposing restriction on certain municipalities with
respect to franchise fees; imposing restriction on
certain municipalities with respect to locally
imposed taxes; providing for noncodification;
providing for codification; and declaring an
emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
The Legislature finds that it had the authority to enact the
provisions of the "February 2021 Regulated Utility Consumer
Protection Act" (hereinafter "the Act"). The Legislature finds that
cities and towns of the state have imposed certain franchise fees on
the securitization revenue stream which is required for defeasance
of the obligations issued by the Oklahoma Development Finance

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Authority pursuant to the Act. The Legislature finds that the
purpose of the Act was a matter of statewide concern and not a
matter of purely local or municipal concern. The Legislature finds
that certain municipalities have imposed franchise fees on the
securitization revenue stream contrary to legislative intent. The
Legislature finds that municipalities have imposed certain local
taxes upon the securitization revenue stream contrary to legislative
intent.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9083 of Title 74, unless there
is created a duplication in numbering, reads as follows:
A. No municipality shall impose any franchise fee upon or with
respect to the securitization revenue stream required pursuant to
the provisions of the Act, any bond indenture related to the
obligations issued by the Oklahoma Development Finance Authority
pursuant to the Act, or any order of the Oklahoma Corporation
Commission authorizing an affected public utility to impose charges
which constitute the securitization revenue stream to defease the
obligations issued by the Oklahoma Development Finance Authority
pursuant to the Act.
B. The provisions of this section shall be applicable to the
securitization revenue stream for bonds or other obligations issued
by the Oklahoma Development Finance Authority as described in
subsection A of this section and shall also be applicable to the

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securitization revenue stream for any bonds or other obligations
issued by the Oklahoma Development Finance Authority on or after the
effective date of this act for a purpose similar to the obligations
issued by the Oklahoma Development Finance Authority pursuant to the
Act.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9084 of Title 74, unless there
is created a duplication in numbering, reads as follows:
A. No municipality shall impose any sales tax, use tax or any
other tax authorized pursuant to the provisions of Section 2701 et
seq. of Title 68 of the Oklahoma Statutes on or with respect to the
securitization revenue stream for bonds or other obligations issued
by the Oklahoma Development Finance Authority as described in
subsection A of Section 2 of this act.
B. The provisions of this section shall be applicable to the
securitization revenue stream for bonds or other obligations issued
by the Oklahoma Development Finance Authority pursuant to the Act
and shall also be applicable to the securitization revenue stream
for any bonds or other obligations issued by the Oklahoma
Development Finance Authority on or after the effective date of this
act for a purpose similar to the obligations issued by the Oklahoma
Development Finance Authority pursuant to the Act.
SECTION 4. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:

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The Legislature finds that it had the authority to enact the
provisions of the "February 2021 Unregulated Utility Consumer
Protection Act" (hereinafter "the Act"). The Legislature finds that
cities and towns of the state have imposed certain franchise fees on
the securitization revenue stream which is required for defeasance
of the obligations issued by the Oklahoma Development Finance
Authority pursuant to the Act. The Legislature finds that the
purpose of the Act was a matter of statewide concern and not a
matter of purely local or municipal concern. The Legislature finds
that certain municipalities have imposed franchise fees on the
securitization revenue stream contrary to legislative intent. The
Legislature finds that municipalities have imposed certain local
taxes upon the securitization revenue stream contrary to legislative
intent.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9061 of Title 74, unless there
is created a duplication in numbering, reads as follows:
A. No municipality shall impose any franchise fee upon or with
respect to the securitization revenue stream required pursuant to
the provisions of the Act, any bond indenture related to the
obligations issued by the Oklahoma Development Finance Authority
pursuant to the Act, or any order of the Oklahoma Corporation
Commission authorizing an affected public utility to impose charges
which constitute the securitization revenue stream to defease the

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obligations issued by the Oklahoma Development Finance Authority
pursuant to the Act.
B. The provisions of this section shall be applicable to the
securitization revenue stream for bonds or other obligations issued
by the Oklahoma Development Finance Authority as described in
subsection A of this section and shall also be applicable to the
securitization revenue stream for any bonds or other obligations
issued by the Oklahoma Development Finance Authority on or after the
effective date of this act for a purpose similar to the obligations
issued by the Oklahoma Development Finance Authority pursuant to the
Act.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9062 of Title 74, unless there
is created a duplication in numbering, reads as follows:
A. No municipality shall impose any sales tax, use tax or any
other tax authorized pursuant to the provisions of Section 2701 et
seq. of Title 68 of the Oklahoma Statutes on or with respect to the
securitization revenue stream for bonds or other obligations issued
by the Oklahoma Development Finance Authority as described in
subsection A of Section 5 of this act.
B. The provisions of this section shall be applicable to the
securitization revenue stream for bonds or other obligations issued
by the Oklahoma Development Finance Authority pursuant to the Act
and shall also be applicable to the securitization revenue stream

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for any bonds or other obligations issued by the Oklahoma
Development Finance Authority on or after the effective date of this
act for a purpose similar to the obligations issued by the Oklahoma
Development Finance Authority pursuant to the Act.
SECTION 7. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
Passed the House of Representatives the 3rd day of March, 2025.

Presiding Officer of the House
of Representatives

Passed the Senate the ___ day of __________, 2025.

Presiding Officer of the Senate