An Act
ENROLLED HOUSE
BILL NO. 3037 By: Boles, Conley, Roe,
Crosswhite Hader, Lowe
(Dick), Davis, and
Patzkowsky of the House
and
Allen, Paxton, David, and
Pederson of the Senate
An Act relating to cities and towns; amending 68 O.S.
2021, Section 1353, which relates to apportionment of
sales tax revenues; modifying apportionment of sales
tax revenue; providing for apportionment to Municipal
Road Drilling Activity Revolving Fund; creating the
Municipal Road Drilling Activity Revolving Fund ;
providing for expenditures; pr escribing procedures
for applications by cer tain municipalities; requiring
matching funds amount; prescribing purpose of
allocated funds; providing for review of applications
by Oklahoma Department of Transportation; providing
for codification; providing an effective date; and
declaring an emergen cy.
SUBJECT: Cities and towns
BE IT ENACTED BY THE PEOPL E OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1353, is
amended to read as follows:
Section 1353. A. It is hereby declared to be the purpose of
the Oklahoma Sales Tax Code to p rovide funds for the financin g of
the program provided for by the Oklahoma S ocial Security Act and to
provide revenues for the support of the functions of the state
government of Oklahoma, and for this purp ose it is hereby expressly ENR. H. B. NO. 3037 Page 2
provided that, revenues derived pursuant to the prov isions of the
Oklahoma Sales Tax Code, subject to the apportionment requirements
for the Oklahoma Tax Commission and Office of Management and
Enterprise Services Joint Computer Enhancement Fund provided by
Section 265 of this t itle, shall be apportioned as follows:
1. Except as provided in subsections C and, D, and E of this
section, the following amounts shall be paid to the State Treasurer
to be placed to the credit of the General Revenue Fund to be paid
out pursuant to direc t appropriation by the Legisl ature:
Fiscal Year Amount
FY 2003 and FY 2004 86.04%
FY 2005 85.83%
FY 2006 85.54%
FY 2007 85.04%
FY 2008 through FY 2022 83.61%
FY 2023 through FY 2027 83.36%
FY 2028 and each fiscal year thereafter 83.61%;
2. The following amounts shall be paid to the S tate Treasurer
to be placed to the cre dit of the Education Reform Revolving Fund of
the State Department of Education:
a. for FY 2003, FY 2004 and FY 2005, ten and forty -two
one-hundredths percent (10.42%),
b. for FY 2006 through FY 2020, ten and forty -six one-
hundredths percent (10.46%),
c. for FY 2021:
(1) for the month beginning July 1, 2020, through the
month ending August 31, 2020, ten and forty-six
one-hundredths percent (10.46%), and
ENR. H. B. NO. 3037 Page 3
(2) for the month beginning September 1, 2020,
through the month en ding June 30, 2021, eleven
and ninety-six one-hundredths percent (11.96%),
d. for FY 2022 and each fiscal year thereafter, ten and
forty-six one-hundredths percent (10.46%);
3. The following amou nts shall be paid to the Sta te Treasurer
to be placed to the credit of the Teachers' Retirement System
Dedicated Revenue Revolving Fund:
Fiscal Year Amount
FY 2003 and FY 2004 3.54%
FY 2005 3.75%
FY 2006 4.0%
FY 2007 4.5%
FY 2008 through FY 2020 5.0%
FY 2021:
a. for the month beginni ng July
1, 2020, through the month
ending August 31, 2020 5.0%
b. for the month beginning
September 1, 2020, through
the month ending June 30,
2021 3.5%
FY 2022 5.0%
FY 2023 through FY 2027 5.25%
FY 2028 and each fiscal year the reafter 5.0%;
4. a. except as otherwise provided in subparagraph b of this
paragraph, for the fiscal year beginning July 1, 2015,
and for each fiscal year thereafter, eighty-seven one-
hundredths percent (0.87%) shall be paid to the State
Treasurer to be further apportioned as follows: ENR. H. B. NO. 3037 Page 4
(1) thirty-six percent (36%) shall be placed to the
credit of the Oklahoma Tourism Promotion
Revolving Fund, but in no event shall such
apportionment exceed Five Million Dollars
($5,000,000.00) in any fiscal year, and
(2) sixty-four percent (64%) shall be placed to the
credit of the Oklahoma Tourism Capital
Improvement Revolving Fund, but in no event shall
such apportionment exceed Nine Million Dollars
($9,000,000.00) in any fiscal year, and
b. any amounts which exceed the limi tations of
subparagraph a of this paragraph shall be placed to
the credit of the General Revenue Fund; and
5. For the fiscal year beginning July 1, 2015, and for each
fiscal year thereafter, six one-hundredths percent (0.06%) shall be
placed to the credit of the Oklahoma Historical S ociety Capital
Improvement and Operations Revolving Fund, but in no event shall
such apportionment exceed the total amount apportioned pursuant to
this paragraph for the fiscal year ending on June 30, 2015. Any
amounts which exceed the limitations of this paragraph shall be
placed to the credit of the General Revenue Fund.
B. Provided, for the fiscal year beginning July 1, 2007, and
every fiscal year thereafter, an amount of revenue shall be
apportioned to each municipality or county which levies a sales tax
subject to the provisions of Section 1357.10 of this title and
subsection F of Section 2701 of this title equal to the amount of
sales tax revenue of such municipality or county exempted by the
provisions of Section 1357.10 of this title and subsection F of
Section 2701 of this title. The Oklahoma Tax Commission shall
promulgate and adopt rules necessary to implement the provisions of
this subsection.
C. From the monies that would otherwise be apportioned to the
General Revenue Fund pursuant to subsec tion A of this section, there
shall be apportioned the following amounts:
1. For the month ending August 31, 2019:
a. Nine Million Six Hundred Thousand Dollars
($9,600,000.00) to the credit of the State Highway ENR. H. B. NO. 3037 Page 5
Construction and Maintenance Fund created in Section
1501 of Title 69 of the Oklahoma Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
2. For the month ending September 30, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
3. For the month ending October 31, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Constru ction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
4. For the month ending N ovember 30, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credi t
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000, 000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Ti tle 66 of the Oklahoma
Statutes; and
5. For the month ending December 31, 2019: ENR. H. B. NO. 3037 Page 6
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Mainten ance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Okla homa
Statutes.
D. For fiscal year 2023, and each subsequent fiscal year,
before any other apportionment otherwise required by this section is
made to the General Revenue Fund, there shall be apportioned to the
State Public Common School Building Equalizat ion Fund an amount, if
any, as required pursuant to Section 3-104 of Title 70 of the
Oklahoma Statutes, not to exceed the state sales tax generated by
medical marijuana sales in the preceding fiscal year as reported by
the Oklahoma Tax Commission .
E. For the fiscal year ending June 30, 2023, and for each
fiscal year thereafter, after the apportionment required by
subsection D of this section, but before any other appo rtionment to
the General Revenue Fund is made, there shall be apportioned to the
Municipal Road Drilling Activity Revolvi ng Fund created pursuant to
Section 2 of this act the amount of Five Million Dollars
($5,000,000.00) for use by municipalities to repair roads as
prescribed pursuant to the requirements of Section 2 of this act.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 37-501 of Title 11, unless there
is created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a rev olving fund
for the Oklahoma Department of Transportation to be designated the
"Municipal Road Drilling Activity Revolving Fund". The fund shall
be a continuing fund, not subject to fiscal ye ar limitations, and
shall consist of all monies received by the Oklahoma Department of
Transportation from the apportionment of sales tax prescribed by
subsection E of Section 1353 of Title 68 of the Oklahoma Statutes.
All monies accruing to the credit of sa id fund are hereby
appropriated and may be budgeted and expen ded by the Oklahoma
Department of Transportation for the purposes prescribed by and
according to the requirements of Section 3 of this act.
Expenditures from said fund shall be made upon warrant s issued by ENR. H. B. NO. 3037 Page 7
the State Treasurer against claims filed as presc ribed by law with
the Director of the Office of Management and Enterprise Services for
approval and payment .
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 37-502 of Title 11, unless there
is created a duplication in nu mbering, reads as follows:
A. The monies in the Municipal Road Drilling Activity Revolving
Fund shall be allocated by the Oklahoma Department of Transportation
only to municipalities having a population of less than fifteen
thousand (15,000) persons according to the Federal Decennial Census
or most recent population estimate to repair damage to municipal
roads caused by or reasonably caused by increased use of such roads
resulting from oil or gas drilling activity. The damage may be
attributable to traffic associated with exploration and drilling
activity, completion of an oil or gas well, production from an o il
or gas well, servicing during the period of production , repairs or
other necessary activity associated with the drilling or production
activity, and other actions necessary for the operation or cessation
of drilling or production activities.
B. A municipality seeking funds for distributio n pursuant to
the provisions of Section 2 of this act and this section shall make
application to the Oklahoma Department of Transportation on such
forms as may be prescribed by the Department for such purpose. The
initial application shall be filed not later than May 1, 2023.
C. A municipality shall be required to provide twenty-five
percent (25%) of the total project costs in order to be eligible for
distribution of funds from the Municipal Road Drilling Activity
Revolving Fund.
D. The Department shall review applications in the order in
which they are recei ved and shall make distribution of f unds based
on analysis of consid erations of public safety, volume of tr affic
which contributes to the need for repairs, and such other factors as
the Department may determine to be rel evant. The initial
distribution of funds shall take place not later tha n October 1,
2023.
E. If the Department determines that the damage to a road has
been caused or reasonably has been caused by increased traffic
related to oil and gas drilling or production activity as provided
by this section, the Department shall transfer the eligible amount ENR. H. B. NO. 3037 Page 8
of funds to the municipality for deposit into the municipal genera l
fund or such other public fund as the municipality shall specify in
its application.
F. Funds distributed pursuant to the provisions of this section
shall only be used by a municipality for the repair of roads
according to the requirements of this act and shall not be used to
construct a new road unless the damage to an existing road has
become extensive enough to require such replacement.
SECTION 4. This act shall become effective July 1, 2022.
SECTION 5. It being immediately n ecessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passage and approval.
ENR. H. B. NO. 3037 Page 9
Passed the House of Representatives the 9th day of May, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the 20th day of April, 2022.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _____ ____
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at __ _____ o'clock _______ M.
By: _________________________________