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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1205 By: Daniels
AS INTRODUCED
An Act relating to municipalities; creating the
Oklahoma Safe Neighborhoods Act of 2026; providing
short title; defining terms; allowing certain
individuals to submit certain claims for compensation
from municipality; providing requirements for certain
compensation; requiring municipality take certain
action within certain period; providing for certain
cause of action; allowing for certain additional
compensation in certain circumstance; providing
certain exemptions; allowing certain individuals to
submit certain claims for compensation from county;
providing requirements for certain compensation;
requiring county take certain action within certain
period; providing for certain cause of action;
allowing for certain additional compensation in
certain circumstances; providing certain exemptions;
providing for noncodification; providing for
codification; providing an effective date; 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:
This act shall be known and may be cited as the “Oklahoma Safe
Neighborhoods Act of 2026”.
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SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 22-166 of Title 11, unless there
is created a duplication in numbering, reads as follows:
As used in Sections 3 through 6 of this act:
1. “Fair market value” means the value or price at which a
willing buyer would purchase property and a willing seller would
sell property if both parties are knowledgeable about the property
and its uses and if neither party is under any undue pressure to buy
or sell, and for real property shall mean the value for the highest
and best use for which such property was actually used, or was
previously classified for use, during the calendar year next
preceding the applicable January 1 assessment date;
2. “Illegal public camping” means the act of constructing or
arranging any tent, shelter, or bedding for the purpose of or in
such way to permit overnight use on a property not designated for
such use;
3. “Loitering” means to stand or wait around idly or without
apparent or rational purpose;
4. “Panhandling” means the process of occupying areas adjacent
to public rights-of-way with the intent of soliciting donations for
any purpose with the knowledge that there will be a likelihood of
those seeking such donations stepping into the public right-of-way
where vehicular traffic is or may be present;
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5. “Policy, pattern, or practice” means an act that is
systemic, pervasive, or organized, or of a generalized nature such
that it is the standard operating procedure, but does not include
isolated, sporadic, or accidental acts;
6. “Property owner” means one or more persons, jointly or
severally, in whom is vested:
a. all or any part of the legal title to a real property,
or
b. all or any part of the beneficial ownership and a
right to present use and enjoyment of the property,
and such term includes a mortgagee in possession; and
7. “Triple net leaseholder” means the lessee of a commercial
lease where the lessee pays rent and utilities as well as insurance,
maintenance, and property taxes on such leased property.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 22-167 of Title 11, unless there
is created a duplication in numbering, reads as follows:
A. 1. Any property owner or triple net leaseholder with real
property located within a municipality with a population over one
hundred thirty thousand (130,000), according to the latest Federal
Decennial Census, may submit a written claim for compensation if the
municipality where such real property is located:
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a. adopts any ordinance, policy, practice, or law
declining to enforce existing laws, ordinances, or
rules prohibiting:
(1) illegal public camping,
(2) obstructing public thoroughfares,
(3) loitering,
(4) panhandling,
(5) public urination or defecation,
(6) public consumption of alcoholic beverages,
(7) possession or use of illegal substances, or
(8) shoplifting,
and such owner or leaseholder incurs and documents an
expense to mitigate the effects of such on the owner’s or
leaseholder’s real property, or
b. maintains a public nuisance, and such owner incurs and
documents an expense to mitigate the effects of such
public nuisance on the owner’s or leaseholder’s real
property.
2. For any claim submitted under the provisions of this
subsection, a property owner or triple net leaseholder shall receive
as compensation an amount equal to the documented expenses incurred
by such owner or leaseholder that were reasonably necessary to
mitigate the effects of such ordinance, policy, practice, law, or
public nuisance on such owner’s or leaseholder’s real property.
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B. 1. Any property owner or triple net leaseholder with real
property located within a municipality with a population over one
hundred thirty thousand (130,000), according to the latest Federal
Decennial Census, may submit a written claim for compensation if the
municipality where such real property is located:
a. adopts any ordinance, policy, practice, or law
declining to enforce existing laws, ordinances, or
rules prohibiting:
(1) illegal public camping,
(2) obstructing public thoroughfares,
(3) loitering,
(4) panhandling,
(5) public urination or defecation,
(6) public consumption of alcoholic beverages,
(7) possession or use of illegal substances, or
(8) shoplifting,
and the fair market value of such property owner’s or
leaseholder’s private real property is reduced by such, or
b. maintains a public nuisance, and the fair market value
of such property owner’s or leaseholder’s private real
property is reduced by such public nuisance.
2. For any claim submitted under the provisions of this
subsection, a property owner or triple net leaseholder shall receive
as compensation an amount equal to the reduction in fair market
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value of such owner’s or leaseholder’s private real property
resulting from the ordinance, policy, practice, law, or public
nuisance.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 22-168 of Title 11, unless there
is created a duplication in numbering, reads as follows:
Any compensation paid under the provisions of Section 3 of this
act:
1. Shall be in lieu of any claim for monetary damages; and
2. May not exceed the amount paid by the property owner or
triple net leaseholder in primary property taxes for the prior tax
year on such property. If the total amount of the claim for
compensation is greater than such amount paid by the owner or
leaseholder, and such claim is accepted, the municipality shall pay
such owner or leaseholder an amount equal to the amount paid by such
owner or leaseholder in primary property taxes for the prior tax
year. The property owner may submit a claim for the remaining
portion of compensation in the following and subsequent tax years,
as needed.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 22-169 of Title 11, unless there
is created a duplication in numbering, reads as follows:
A. 1. Within thirty (30) days of a property owner or triple
net leaseholder submitting a written claim for compensation to a
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municipality, as provided by Section 3 of this act, the municipality
shall either accept or reject such claim.
2. If a municipality accepts such claim, it shall pay the
compensation requested by such owner or leaseholder.
3. If a municipality rejects such claim, or does not respond to
the claim within thirty (30) days, such owner or leaseholder may
file a cause of action in the district court of the county in which
the real property is located to challenge the rejection of the
claim. The questions of whether the property owner is entitled to
such compensation and whether the amount of the claim is reasonable
are judicial questions in a cause of action filed pursuant to this
paragraph. The municipality shall have the burden of proof to
demonstrate that its rejection is lawful or that the amount of the
claim is unreasonable. The property owner or triple net leaseholder
shall not be liable to the municipality for attorney fees or costs.
If such owner or leaseholder prevails, they shall be awarded
reasonable attorney fees and costs.
B. 1. A property owner or triple net leaseholder shall not be
required to submit any claim besides that provided for in Section 3
of this act as a prerequisite to demanding or receiving
compensation.
2. A property owner or triple net leaseholder may only submit a
claim under the provisions of Section 3 of this act once per tax
year.
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C. If the ordinance, policy, practice, law, or public nuisance
remains in place after the property owner or triple net leaseholder
submits a claim as provided in Section 3 of this act, and such owner
or leaseholder files a claim for compensation in a subsequent tax
year, the owner or leaseholder shall be entitled to request
reasonable additional compensation unless the municipality and such
owner or leaseholder enter into a knowing and voluntary settlement,
or the municipality ends or abates the ordinance, policy, practice,
law, or public nuisance.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 22-170 of Title 11, unless there
is created a duplication in numbering, reads as follows:
A. This act shall not be construed as prohibiting a property
owner or triple net leaseholder from entering into a knowing and
voluntary settlement with a municipality for an amount less than
such owner’s or leaseholder’s claim for compensation submitted under
the provisions of Section 3 of this act.
B. The provisions of this act shall not apply to:
1. Decisions by municipal authorities to exercise prosecutorial
discretion not to prosecute alleged offenders, if such discretion is
exercised on a case-by-case basis and the justifications for each
decision are published monthly by the municipality;
2. Acts of clemency; or
3. Acts or omissions mandated by federal law.
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SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 390.1 of Title 19, unless there
is created a duplication in numbering, reads as follows:
As used in Sections 8 through 11 of this act:
1. “Fair market value” means the value or price at which a
willing buyer would purchase property and a willing seller would
sell property if both parties are knowledgeable about the property
and its uses and if neither party is under any undue pressure to buy
or sell, and for real property shall mean the value for the highest
and best use for which such property was actually used, or was
previously classified for use, during the calendar year next
preceding the applicable January 1 assessment date;
2. “Illegal public camping” means the act of constructing or
arranging any tent, shelter, or bedding for the purpose of or in
such way to permit overnight use on a property not designated for
such use;
3. “Loitering” means to stand or wait around idly or without
apparent or rational purpose;
4. “Panhandling” means the process of occupying areas adjacent
to public rights-of-way with the intent of soliciting donations for
any purpose with the knowledge that there will be a likelihood of
those seeking such donations stepping into the public right-of-way
where vehicular traffic is or may be present;
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5. “Policy, pattern, or practice” means an act that is
systemic, pervasive, or organized, or of a generalized nature such
that it is the standard operating procedure, but does not include
isolated, sporadic, or accidental acts;
6. “Property owner” means one or more persons, jointly or
severally, in whom is vested:
a. all or any part of the legal title to a real property,
or
b. all or any part of the beneficial ownership and a
right to present use and enjoyment of the property,
and such term includes a mortgagee in possession; and
7. “Triple net leaseholder” means the lessee of a commercial
lease where the lessee pays rent and utilities as well as insurance,
maintenance, and property taxes on such leased property.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 390.2 of Title 19, unless there
is created a duplication in numbering, reads as follows:
A. 1. Any property owner or triple net leaseholder with real
property located within a municipality with a population over one
hundred thirty thousand (130,000), according to the latest Federal
Decennial Census, may submit a written claim for compensation if the
county where such real property is located:
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a. adopts any ordinance, policy, practice, or law
declining to enforce existing laws, ordinances, or
rules prohibiting:
(1) illegal public camping,
(2) obstructing public thoroughfares,
(3) loitering,
(4) panhandling,
(5) public urination or defecation,
(6) public consumption of alcoholic beverages,
(7) possession or use of illegal substances, or
(8) shoplifting,
and such owner or leaseholder incurs and documents an
expense to mitigate the effects of such on the owner’s or
leaseholder’s real property, or
b. maintains a public nuisance, and such owner incurs and
documents an expense to mitigate the effects of such
public nuisance on the owner’s or leaseholder’s real
property.
2. For any claim submitted under the provisions of this
subsection, a property owner or triple net leaseholder shall receive
as compensation an amount equal to the documented expenses incurred
by such owner or leaseholder that were reasonably necessary to
mitigate the effects of such ordinance, policy, practice, law, or
public nuisance on such owner’s or leaseholder’s real property.
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B. 1. Any property owner or triple net leaseholder with real
property located within a municipality with a population over one
hundred thirty thousand (130,000), according to the latest Federal
Decennial Census, may submit a written claim for compensation if the
county where such real property is located:
a. adopts any ordinance, policy, practice, or law
declining to enforce existing laws, ordinances, or
rules prohibiting:
(1) illegal public camping,
(2) obstructing public thoroughfares,
(3) loitering,
(4) panhandling,
(5) public urination or defecation,
(6) public consumption of alcoholic beverages,
(7) possession or use of illegal substances, or
(8) shoplifting,
and the fair market value of such property owner’s or
leaseholder’s private real property is reduced by such, or
b. maintains a public nuisance, and the fair market value
of such property owner’s or leaseholder’s private real
property is reduced by such public nuisance.
2. For any claim submitted under the provisions of this
subsection, a property owner or triple net leaseholder shall receive
as compensation an amount equal to the reduction in fair market
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value of such owner’s or leaseholder’s private real property
resulting from the ordinance, policy, practice, law, or public
nuisance.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 390.3 of Title 19, unless there
is created a duplication in numbering, reads as follows:
Any compensation paid under the provisions of Section 8 of this
act:
1. Shall be in lieu of any claim for monetary damages; and
2. May not exceed the amount paid by the property owner or
triple net leaseholder in primary property taxes for the prior tax
year on such property. If the total amount of the claim for
compensation is greater than such amount paid by the owner or
leaseholder, and such claim is accepted, the county shall pay such
owner or leaseholder an amount equal to the amount paid by such
owner or leaseholder in primary property taxes for the prior tax
year. The property owner may submit a claim for the remaining
portion of compensation in the following and subsequent tax years,
as needed.
SECTION 10. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 390.4 of Title 19, unless there
is created a duplication in numbering, reads as follows:
A. 1. Within thirty (30) days of a property owner or triple
net leaseholder submitting a written claim for compensation to a
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county, as provided by Section 8 of this act, the county shall
either accept or reject such claim.
2. If a county accepts such claim, it shall pay the
compensation requested by such owner or leaseholder.
3. If a county rejects such claim, or does not respond to the
claim within thirty (30) days, such owner or leaseholder may file a
cause of action in the district court of the county in which the
real property is located to challenge the rejection of the claim.
The questions of whether the property owner is entitled to such
compensation and whether the amount of the claim is reasonable are
judicial questions in a cause of action filed pursuant to this
paragraph. The county shall have the burden of proof to demonstrate
that its rejection is lawful or that the amount of the claim is
unreasonable. The property owner or triple net leaseholder shall
not be liable to the county for attorney fees or costs. If such
owner or leaseholder prevails, they shall be awarded reasonable
attorney fees and costs.
B. 1. A property owner or triple net leaseholder shall not be
required to submit any claim besides that provided for in Section 8
of this act as a prerequisite to demanding or receiving
compensation.
2. A property owner or triple net leaseholder may only submit a
claim under the provisions of Section 8 of this act once per tax
year.
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C. If the ordinance, policy, practice, law, or public nuisance
remains in place after the property owner or triple net leaseholder
submits a claim as provided in Section 8 of this act, and such owner
or leaseholder files a claim for compensation in a subsequent tax
year, the owner or leaseholder shall be entitled to request
reasonable additional compensation unless the county and such owner
or leaseholder enter into a knowing and voluntary settlement, or the
county ends or abates the ordinance, policy, practice, law, or
public nuisance.
SECTION 11. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 390.5 of Title 19, unless there
is created a duplication in numbering, reads as follows:
A. This act shall not be construed as prohibiting a property
owner or triple net leaseholder from entering into a knowing and
voluntary settlement with a county for an amount less than such
owner’s or leaseholder’s claim for compensation submitted under the
provisions of Section 8 of this act.
B. The provisions of this act shall not apply to:
1. Decisions by county authorities to exercise prosecutorial
discretion not to prosecute alleged offenders, if such discretion is
exercised on a case-by-case basis and the justifications for each
decision are published monthly by the county;
2. Acts of clemency; or
3. Acts or omissions mandated by federal law.
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SECTION 12. This act shall become effective July 1, 2026.
SECTION 13. 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.
60-2-2389 MSBB 11/26/2025 8:37:57 AM