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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1573 By: Frix
AS INTRODUCED
An Act relating to the Rural Economic Action Plan of
1996; amending 62 O.S. 2021, Section 2003, as amended
by Section 1, Chapter 77, O.S.L. 2025 (62 O.S. Supp.
2025, Section 2003), which relates to the
administration of appropriations to the Oklahoma
Water Resources Board; expanding entities eligible to
receive monies; expanding eligible water quality
projects; updating statutory language; and declaring
an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 2003, as
amended by Section 1, Chapter 77, O.S.L. 2025 (62 O.S. Supp. 2025,
Section 2003), is amended to read as follows:
Section 2003. A. Monies appropriated by law to the Oklahoma
Water Resources Board for the purpose of funding the Rural Economic
Action Plan grant program and the Rural Economic Action Plan Water
Projects Fund shall be administered by the Oklahoma Water Resources
Board as provided by this section.
B. The monies referred to in subsection A of this section shall
be distributed to eligible cities and towns, unincorporated areas,
irrigation districts, rural water districts, or other qualified
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entities located within the areas represented by the following
organizations:
1. Association of Central Oklahoma Governments (ACOG);
2. Association of South Central Oklahoma Governments (ASCOG);
3. Central Oklahoma Economic Development District (COEDD);
4. Eastern Oklahoma Economic Development District (EOEDD)
(EODD);
5. Grand Gateway Economic Development Association (GGEDA);
6. Indian Nations Council of Governments (INCOG);
7. Kiamichi Economic Development District of Oklahoma (KEDDO);
8. Northern Oklahoma Development Association Authority (NODA);
9. Oklahoma Economic Development Association Authority (OEDA);
10. Southern Oklahoma Development Association (SODA); and
11. South Western Oklahoma Development Authority (SWODA).
C. The monies referred to in subsection A of this section shall
not be expended for the benefit of cities or towns with a population
in excess of seven thousand (7,000) persons according to the latest
Federal Decennial Census. Funds may also be expended for any city
or town with a population below seven thousand (7,000) persons based
upon the current population estimate according to the U.S. Census
Bureau. Funds may be expended for such cities and towns until the
next following Federal Decennial Census. Any municipality may enter
into an agreement with an entity described in subsection B of this
section to apply for available funds described by this section if
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the municipality is located within the area served by the entity.
Upon approval of the application, funds shall be paid to the
municipality requesting the funds.
D. An entity described in subsection B of this section may
apply for a grant to be used for the benefit of an unincorporated
area within a county served by that entity if the area benefited
does not contain a population in excess of seven thousand (7,000)
persons. Any county may enter into an agreement with an entity
described in subsection B of this section if the county is located
within the area served by the entity. Upon approval of the
application, funds shall be paid to the county requesting the funds.
E. The monies referred to in subsection A of this section may
be expended for water quality projects, including, but not limited
to, sewer line construction or repair and related storm or sanitary
sewer projects, water line construction or repair, improvements and
repairs to existing water infrastructure of rural water districts
and irrigation districts, water treatment, water acquisition,
distribution or recovery and related projects.
F. Any city or town with a population less than one thousand
seven hundred fifty (1,750) persons according to the latest Federal
Decennial Census shall have a higher priority for funds allocated by
the Oklahoma Water Resources Board from the amount referred to in
subsection A of this section than jurisdictions of greater size.
Among such cities or towns, those municipalities having relatively
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weaker fiscal capacity shall have a priority for project funding in
preference to other municipalities.
G. The Oklahoma Water Resources Board shall establish ten
separate accounts containing one-tenth (1/10) of the amount annually
appropriated to the Rural Economic Action Plan Water Projects Fund
per account. Each account shall be available for distribution to
qualified entities located within the area served by entities
described in subsection A of Section 2007 of this title or for
distribution to benefit unincorporated areas with the exception of
one account which shall be divided equally into two subaccounts.
Each one of the two subaccounts shall be available for distribution
to qualified entities located within the respective jurisdiction of
one of the entities described by subsection B of Section 2007 of
this title or for distribution to benefit unincorporated areas. No
funds deposited into one account or subaccount shall be transferred
to any other account. The total expenditure from any one account or
subaccount for each fiscal year may not exceed the amount of funds
available to each account as may be provided by law.
H. No city, town or other entity to which funds will be awarded
pursuant to this section shall be required to provide any form of
match to obtain the funds, whether through cash, services or any
other method.
I. The Oklahoma Water Resources Board shall not be allowed to
retain any of the funds referred to in subsection A of this section
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for administration. All such funds shall be distributed to eligible
entities as authorized by law.
J. In order to ensure fair and equitable distribution of the
funds referred to in subsection A of this section, the Oklahoma
Water Resources Board shall promulgate rules for administering,
determining priority of, approving and funding applications for such
funds. The rules shall implement the provisions of this section
including the following:
1. No qualified entity shall be approved nor funded for more
than Three Hundred Fifty Thousand Dollars ($350,000.00) from such
funds in any twelve-month period;
2. If a qualified entity has previously been approved for or
received such funds and makes a subsequent application, that
subsequent application may be assigned lower priority than an
application by qualified entities who have not previously been
approved for or received such funds;
3. In order to prevent substantially the same entity or area
from receiving an undue advantage, a political subdivision and all
its public trusts and similar subordinate entities together shall be
treated as one and the same qualified entity; provided rural water
or sewer districts shall not be construed to be subordinate entities
of counties unless the effect would be to make multiple grants to
substantially the same entity or service area; and
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4. The Oklahoma Water Resources Board may establish limited
time periods for processing applications for available funds.
SECTION 2. 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.
60-2-3222 QD 1/12/2026 10:18:45 PM