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SENATE FLOOR VERSION - SB1858 SFLR Page 1
(Bold face denotes Committee Amendments)
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SENATE FLOOR VERSION
February 16, 2026
AS AMENDED
SENATE BILL NO. 1858 By: Frix of the Senate
and
Fetgatter of the House
[ development incentives - taxpayer agreements - lien
- delinquent payments and collections - bonds -
security interest - powers - codification -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 869.1 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. A public entity, as defined in Section 853 of Title 62 of
the Oklahoma Statutes, designated to exercise the powers enumerated
pursuant to Section 854 of Title 62 of the Oklahoma Statutes may
enter into a taxpayer agreement with the owner or developer of real
property located within an increment district as authorized by
Section 861 of Title 62 of the Oklahoma Statutes. A taxpayer
agreement may be used to:
SENATE FLOOR VERSION - SB1858 SFLR Page 2
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1. Guarantee, enhance, or otherwise secure the repayment of
bonds, notes, or other obligations issued by the public entity;
2. Provide for payments in lieu of or in addition to tax
increment revenues; and
3. Provide for any payment obligation designed to support the
financing or refinancing of project costs.
B. A taxpayer agreement entered into pursuant to this section
constitutes a voluntary and binding payment obligation of the
property owner or developer and shall not constitute a pledge of the
credit or taxing power of a public entity. Nothing in this act
shall be construed to require a public entity to enter into a
taxpayer agreement.
C. If a taxpayer agreement provides that payments due under the
agreement are secured by a lien on real property, then:
1. The lien shall be in full force and effect automatically
upon execution of the agreement;
2. The lien shall constitute and be treated in the same manner
as a tax lien on real and personal property pursuant to Section 3103
of Title 68 of the Oklahoma Statutes;
3. The lien shall have parity with tax liens on property,
taking priority over any existing or subsequent mortgage judgment,
lien, or encumbrance except for previously filed tax liens on
property; and
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4. The lien may be enforced, collected, and foreclosed in the
same manner as ad valorem tax liens as provided for in Sections 3102
through 3106 of Title 68 of the Oklahoma Statutes.
D. A taxpayer agreement containing a lien pursuant to
subsection C of this section shall be recorded with the recorder of
deeds in the county in which the property is located. Recordation
provides constructive notice and perfects the lien without further
action.
E. Payments due pursuant to a taxpayer agreement shall be
deemed delinquent when unpaid on the required date. A delinquency
may be certified and enforced in the same manner as delinquent ad
valorem taxes, including:
1. Collection by a taxing jurisdiction;
2. Collection by a county pursuant to Section 3103 of Title 68
of the Oklahoma Statutes;
3. Collection by the public entity or designee; and
4. All interest, penalties, fees, and collection costs
applicable to delinquent ad valorem taxes which shall apply to
delinquent taxpayer agreement payments.
F. A taxpayer agreement and any lien securing it may be
assigned to a trustee or purchaser of bonds secured by the taxpayer
agreement. The assignee shall possess all enforcement rights held
by the public entity.
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G. Upon full payment of all obligations secured by the taxpayer
agreement, the public entity shall execute and record a release of
lien, which shall extinguish the lien effective upon recording.
H. Bonds or notes issued pursuant to the authorization in
Section 863 of Title 62 of the Oklahoma Statutes may be secured by:
1. Payments due pursuant to a taxpayer agreement authorized by
this section;
2. Any lien created by a taxpayer agreement; or
3. Reserves, guaranties, or private security.
I. The public entity may pledge, assign, or grant a security
interest in such payments, liens, revenues, or other security to a
trustee or purchaser of the bonds.
J. Bonds issued pursuant to Section 863 of Title 62 of the
Oklahoma Statutes and secured pursuant to this section:
1. Are payable solely from the security pledged;
2. Do not constitute a general obligation of a public entity of
this state;
3. Do not constitute municipal debt for the purposes of any
statutory or constitutional debt limitations; and
4. Impose no financial obligation on a municipality beyond
receipt and remittance of pledged payments.
K. A public entity issuing bonds secured pursuant to this
section acts solely as a conduit issuer, and repayment shall be
limited to:
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1. Taxpayer agreement payments;
2. Pledged incremental tax revenues; and
3. Any additional private security.
L. The public entity may assign to a trustee or bondholders:
1. The right of the public entity to receive payments pursuant
to a taxpayer agreement;
2. Any lien securing such payments;
3. Any enforcement rights authorized pursuant to this section;
and
4. All enforcement powers held by the public entity.
M. The powers granted by this section are supplemental to the
existing powers of public entities under all other laws.
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.
COMMITTEE REPORT BY: COMMITTEE ON REVENUE AND TAXATION
February 16, 2026 - DO PASS AS AMENDED