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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1399 By: Provenzano
AS INTRODUCED
An Act relating to public indebtedness; amending 62
O.S. 2021, Section 574, which relates to the Bond
Issue Proceeds Act; modifying expenditure of certain
allocated monies; amending Section 1, Chapter 157,
O.S.L. 2023 (70 O.S. Supp. 2024, Section 15-110),
which relates to bond issue transparency; prohibiting
substitution of previously approved projects with
like-kind projects; providing an exception if
approved by a certain percentage of electors; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 574, is
amended to read as follows:
Section 574. A. At any election upon the question of issuing
bonds, which if approved would require an ad valorem tax levy or
pledging the full faith and credit of the State of Oklahoma, the
governmental entity calling such election shall set forth in each
proposition to be voted upon the general purpose for which the bond
proceeds will be expended. This shall not require the proposition
or the bond to recite specific projects and dollar amounts.
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B. At any election upon the question of issuing bonds, which if
approved would require an ad valorem tax levy or pledging the full
faith and credit of the State of Oklahoma, the governmental entity
calling such election shall set forth in the call of election, in a
legally qualified newspaper of general circulation in the area
wherein said bond issue proceeds are to be expended, a general
statement of all purposes and specific projects for which seventy
percent (70%) of the proceeds shall be expended, with a further
listing of the dollar amounts to be expended on each specific
project. The dollar figure left unlisted as to specific projects
shall not exceed thirty percent (30%) of the total amount of the
bond issue.
C. If any such bond issue is approved at an election, the
particular governmental entity shall expend all of the proceeds of
such bond issue for the purposes set out in the proposition voted
upon and shall expend not less than eighty-five percent (85%)
seventy percent (70%) of the monies allocated to each specific
project, unless such project can be completed for a smaller amount
of money, on that project as published according to Section 4(B) of
this act and for which the bond issue was approved. Provided,
however, that if any money becomes available from any source outside
the bond proceeds for any specific project, the outside funds would
be used to reduce the amount of bond funds to be expended on that
specific project. In such event, the governmental entity may expend
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that amount less than the specified eighty-five percent (85%)
seventy percent (70%) and may use the surplus funds on other
projects within the same general purpose or to reduce the sinking
fund. This section shall not apply in the event a final judicial
determination or federal or state laws, regulations or rules
preclude the undertaking or completion of a specific project.
SECTION 2. AMENDATORY Section 1, Chapter 157, O.S.L.
2023 (70 O.S. Supp. 2024, Section 15-110), is amended to read as
follows:
Section 15-110. A. When a school district board of education
calls an election for the purpose of issuing bonds pursuant to
Section 15-102 of Title 70 of the Oklahoma Statutes, the school
district shall, at least thirty (30) days prior to the election,
post on its website a copy of the bond proposal, including each
project to be funded by the bond proceeds, the purpose of the
project, a description of each project, and the estimated cost for
each project.
B. If electors approve the issuing of bonds at an election, the
school district shall continue to post on its website the bond
information required by subsection A of this section for the
duration of the bond and one year after completion of all bond
projects. The information posted on the school district website
shall also include updates when there is a material change in the
scope of the projects and their purpose as stated at the time the
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board of education calls the bond election. The updated information
shall be posted online within thirty (30) days following approval of
the project changes by the board of education.
C. This act shall not apply to any bond projects approved by
electors prior to the effective date of this act.
D. School district boards of education shall not substitute
previously approved bond issue projects with like-kind projects.
Any proposed substitution of a bond issue project shall be put to a
vote of the electorate during a regularly scheduled election and
shall be approved by a sixty percent (60%) vote of the electorate.
SECTION 3. This act shall become effective November 1, 2025.
60-1-11237 AQH 12/27/24