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SENATE FLOOR VERSION - SB1332 SFLR Page 1
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SENATE FLOOR VERSION
March 4, 2026
AS AMENDED
SENATE BILL NO. 1332 By: Kirt of the Senate
and
Lawson of the House
[ Oklahoma Water Resources Board - program - clawback
- report - prioritization - rules - Revolving Fund –
allocation - codification - effective date ]
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 “Targeted
Housing and Responsible Infrastructure for Vital Economies (THRIVE)
Act”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1085.66 of Title 82, unless
there is created a duplication in numbering, reads as follows:
A. 1. The Oklahoma Water Resources Board shall establish and
administer the Targeted Housing and Responsible Infrastructure for
Vital Economies (THRIVE) Communities Program. The purpose of the
program shall be to develop competitive zero-interest loans for
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eligible entities seeking to implement housing plans that need
water, wastewater, or stormwater projects for housing development
completion.
2. The Board shall develop an application preference rating
system for approval based on the following criteria including, but
not limited to:
a. project alignment with long-term vision and goals for
housing in the community,
b. expansion of housing stock options and fulfilling
identified housing needs in the area of the proposed
project,
c. defined opportunity for economic development with
additional housing units developed,
d. opportunity to expand workforce housing availability,
e. available financing for the housing development,
f. conservation and fiscal sustainability efforts for the
infrastructure, and
g. pledge of matching funds, either through the entity or
a third-party source.
3. For the purposes of this section, “eligible entity” shall
have the same meaning as provided in Section 1085.32 of Title 82 of
the Oklahoma Statutes.
B. All loans authorized pursuant to the provisions of this act
shall include a clawback provision in the funding agreement with an
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eligible entity. For purposes of this subsection, a “clawback
provision” means a condition precedent to participate in the program
whereby a loan recipient agrees in writing, signed by all parties,
to reimburse the program all or any part of the loan disbursed to
the recipient upon the failure of the recipient to fulfill loan
contract terms.
C. The Board shall publish an annual report on the Board’s
website regarding the projects completed pursuant to the provisions
of this act. The report shall also display the status of proposed
and approved projects, estimated completion dates, resulting housing
units completed, unused or misaligned funds recaptured, and any
other information deemed necessary by the Board.
D. Any eligible entity receiving monies pursuant to the THRIVE
Communities Program shall prioritize the utilization of contractors,
businesses, and other vendors that are based in this state pursuant
to Section 85.17A of Title 74 of the Oklahoma Statutes.
E. The Board shall promulgate rules to effectuate the
provisions of this act and loan criteria for the program.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1085.67 of Title 82, unless
there is created a duplication in numbering, reads as follows:
A. 1. There is hereby created in the State Treasury a
revolving fund for the Oklahoma Water Resources Board to be
designated the “THRIVE Communities Program Revolving Fund”. The
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fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of all monies appropriated to the
fund by law. All monies accruing to the credit of the fund are
hereby appropriated and may be budgeted and expended by the Board
for the purposes provided in this act. The Board may enter into
contracts with financial institutions and execute such instruments
as may be necessary to hold and disseminate loan funds in accordance
with applicable regulations and Board policies.
2. Notwithstanding any other provisions of law, income and
investment return on fund principal and interest income and
repayment of principal on loans made from the balance of the fund
shall accrue to the fund.
B. 1. The Board may have full discretion of all monies within
the fund for enhancements, leveraging, and reserve capacities for
the Board loan and grant programs, system evaluation and risk
assessment assistance, and long-range infrastructure planning.
2. The Board may reserve up to two percent (2%) per year from
the fund for the purpose of administering the THRIVE Communities
Program. Any remaining funds may be allocated to satisfy the
purposes of paragraph 1 of this subsection.
C. The funds remaining following reserves and allocations made
pursuant to subsection B of this section shall be loaned to eligible
entities as prescribed by the program. Loan monies shall be
allocated based on the most current census data available from the
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Federal Decennial Census or American Community Survey and shall be
as follows:
1. Thirty-three percent (33%) of the allocated funds shall be
for approved projects located within a municipality or county with a
population of more than four hundred thousand (400,000), or the
equivalent thereof for other eligible entities as prescribed by the
Board;
2. Thirty-three percent (33%) of the allocated funds shall be
for approved projects located within a municipality or county with a
population that is greater than thirty thousand (30,000) but less
than four hundred thousand (400,000), or the equivalent thereof for
other eligible entities as prescribed by the Board; and
3. Thirty-four percent (34%) of the allocated funds shall be
for approved projects located within a municipality or county with a
population of less than thirty thousand (30,000), or the equivalent
thereof for other eligible entities as prescribed by the Board.
After fiscal year 2027, remaining reserves may be accessed by
any eligible entities. The Oklahoma Water Resources Board shall
establish rules to update allocations to ensure geographic
representation while maximizing the number and scale of projects
completed.
SECTION 4. This act shall become effective November 1, 2026.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
March 4, 2026 - DO PASS AS AMENDED