OK
Oklahoma Senate Bill SB1084

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1084 Compare Versions

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5353 STATE OF OKLAHOMA
5454
5555 1st Session of the 59th Legislature (2023)
5656
5757 SENATE BILL 1084 By: Haste
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6363 AS INTRODUCED
6464
6565 An Act relating to public finance; creating the
6666 Oklahoma Public Infrastructure District s Act;
6767 providing for short title; allowing for the
6868 implementation of public infrastructure districts in
6969 Oklahoma following the passage of a proposed
7070 constitutional amendment by the voters of this state;
7171 authorizing the Legislature to allow municipalities
7272 to approve the creation of these districts, which may
7373 incur indebtedness and issue public infrastructure
7474 bonds for the payment of costs associated with public
7575 improvements; defining terms; prohibiting a public
7676 infrastructure district to b e formed without certain
7777 conditions; stipulating manner by which a public
7878 infrastructure district operates within a
7979 municipality; allowing for a municipality to
8080 establish criteria in dete rmining the approval or
8181 rejection of a public infrastructure district ;
8282 providing for construction and function of a public
8383 infrastructure district’s board upon organization;
8484 establishing criteria for the g overning document
8585 provided to the municipality prior to formation of
8686 the public infrastructure district; requiring a vote
8787 for amendment to governing documents; authorizing
8888 public infrastructure districts to issue bonds for
8989 the financing of costs associated with proposed
9090 public improvements within the district; crea ting a
9191 public infrastructure district bond; establishing
9292 criteria by which a bond may be issued by the
9393 district; preventing certain conditions to occur o n
9494 the issuance of the bond; allowing for legal re course
9595 under certain conditions; prohibiting the sale of
9696 bonds under certain conditi ons; allowing for
9797 administrative fees to be assessed for certain
9898 associated costs; establishing mill rate pursuant to
9999 the Oklahoma Constitution; requiring notice to be
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151151 filed with certain entities following formation
152152 within certain timef rame; allowing for a fee to be
153153 assessed for nonpayment not to exceed certain limits;
154154 authorizing the retention of municipal authority over
155155 certain conditions within the public infrastructure
156156 districts; requiring inclusion of all existing and
157157 connected infrastructure between a municipality and a
158158 public infrastructure district; requiring transfer of
159159 certain infrastructure free of liens or financial
160160 encumbrances; providing for civil action under
161161 certain circumstances; establishing procedures for
162162 legal action to occur; requiring certain notice to be
163163 provided to purchaser of property within a public
164164 infrastructure district prior to sale by seller;
165165 establishing criteria for notice; providing for
166166 codification; providing an effective date; and
167167 providing a conditional effective date .
168168
169169
170170
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173173 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
174174 SECTION 1. NEW LAW A new section of law to be codified
175175 in the Oklahoma Statutes as Section 39-201 of Title 11, unless there
176176 is created a duplication in numbering, reads as follows:
177177 This act shall be known a nd may be cited as the “Oklahoma Public
178178 Infrastructure Distr icts Act”.
179179 SECTION 2. NEW LAW A new section of law to be codified
180180 in the Oklahoma Statutes as Section 39-202 of Title 11, unless there
181181 is created a duplication in numbering, read s as follows:
182182 The purpose of the Oklahoma Public Infrastructure Districts Act
183183 is to implement the provisions of Section 9E of Article X of the
184184 Oklahoma Constitution, as referred to the people for their approval
185185 or rejection by the Secretary of State pursua nt to the provisions of
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236236
237237 Enrolled Senate Joint Resolution No. ____ of the 1st Session of the
238238 59th Oklahoma Legislature. Upon passage of the state que stion, the
239239 Oklahoma Legislature authorize municipalities to approve the
240240 creation of public infrastructure districts, which may incur
241241 indebtedness and issue public infrastructure district bonds created
242242 in Section 7 of this act to pay for all or part of the cost of
243243 public improvements within such districts. The cost of all
244244 indebtedness so incurred shall be levie d and assessed by the board
245245 of trustees of a public infrastructure district on the property
246246 benefited by such improvements. The board shall collect the special
247247 assessments so levied and use the same to reimburse the public
248248 infrastructure district for the amount paid or to be paid by it on
249249 the bonds issued for such improvements.
250250 SECTION 3. NEW LAW A new section of law to be codified
251251 in the Oklahoma Statutes as Sect ion 39-203 of Title 11, unless there
252252 is created a duplication in numbe ring, reads as follows:
253253 As used in this act:
254254 1. “Board” means the board of tru stees of a public
255255 infrastructure district as created by the governing docu ment;
256256 2. “District applicant” means the person proposing the cr eation
257257 of the public infrastructure district to the municipality where the
258258 proposed public infrastructure district shall reside ;
259259 3. “Division” means a portion within a public infrastructure
260260 district:
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312312 a. that is relatively equal in number of eligible voters
313313 or potential eligible vo ters to all other divisions
314314 within the public infrastructure distri ct, taking into
315315 account existing or potential developments, which,
316316 when completed, would increase or decrease the
317317 population within the public infrastructure district ,
318318 and
319319 b. which a member of the board represents;
320320 4. “Governing document” means the document governing the public
321321 infrastructure district presented by the district applicant to and
322322 approved by the municipality before the creation o f the public
323323 infrastructure district;
324324 5. “Public infrastructure bond” means a bond:
325325 a. that is directly payable fr om and secured by ad
326326 valorem property taxes that are levied:
327327 (1) by the public infrastructure district th at issues
328328 the bond, and
329329 (2) on taxable property within the district,
330330 b. that is the obligation of the public infrastructure
331331 district, and
332332 c. for which the ad valorem property ta x levy repayment
333333 of the bond does not exce ed the mill rate limit
334334 pursuant to Section 9 of this act for any fiscal year.
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386386 A public infrastructure bond shall not mean a general obligation
387387 bond;
388388 6. “Public infrastructure district” means an area of a
389389 municipality with defined limits and boundaries which is created by
390390 vote that operates separate and distinct from the municipality and
391391 subject to the provisions of this act including, but not limited to
392392 special assessments against the real property therein for the
393393 financing or repayment of the costs of the public infrastructure
394394 district’s improvements; and
395395 7. “Surface property owner” means the owner or owners of record
396396 of the surface of the property included in a proposed public
397397 infrastructure district and may not be registered voters of the
398398 property.
399399 SECTION 4. NEW LAW A new section of law to be codified
400400 in the Oklahoma Statutes as Section 39-204 of Title 11, unless there
401401 is created a duplication in numbering, reads as follows:
402402 A. Notwithstanding the other provisions of this act, a public
403403 infrastructure district shall not be created unless:
404404 1. A petition, if there are any registered voters within the
405405 applicable area, is filed with the municipality that contains the
406406 signatures of one hundred percent (100%) of regis tered voters within
407407 the applicable area approving the creation of the public
408408 infrastructure district; or
409409
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460460 2. A petition is filed with the municipality that contains the
461461 signatures of one hundred percent (10 0%) of surface property owners
462462 within the applicable area consenting to the creation of the public
463463 infrastructure district.
464464 B. The municipality may impose limitations on the powers of the
465465 public infrastructure district through the governing document .
466466 C. 1. A public infrastructure district is separate and
467467 distinct from the municipality in which it resides.
468468 2. a. Except as provided in sub paragraph b of this
469469 paragraph, any financial burden of a public di strict:
470470 (1) is borne solely by the public infrastructure
471471 district, and
472472 (2) is not borne by the municipality, county, or any
473473 other public subdivisions .
474474 b. Notwithstanding subparagraph a of this paragraph, the
475475 governing document may require:
476476 (1) the district applicant to bear the initial costs
477477 of the public infrastructure district, and
478478 (2) the public infrastructure district to reimburse
479479 the district applicant for the initial costs the
480480 municipality bears.
481481 3. Any liability, judgement, or claim against a pub lic
482482 infrastructure district:
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534534 a. is the responsibility of the public infrastructure
535535 district, and
536536 b. does not constitute a liability, judgement, or claim
537537 against the state municipality, county or any or other
538538 political subdivision.
539539 4. a. (1) The public infrastructure district solely bears
540540 the responsibility of any collection, enforcement, or
541541 foreclosure proceeding with regard to any tax, fee, or
542542 assessment the public infrastructure imposes.
543543 (2) The municipality does not bear the responsibility
544544 described in division (1) of subparagraph a of
545545 paragraph 4 of this subsection.
546546 b. A public infrastructure district, and not the
547547 municipality, shall undertake the enf orcement
548548 responsibility.
549549 D. The municipality may establish criteria in determining
550550 whether to approve or disapprove the creation of a public
551551 infrastructure district including, but not limited to:
552552 1. Historical performance of the district applicant;
553553 2. Compliance with the municipality’s master plan;
554554 3. Credit worthiness of the district applicant ;
555555 4. Plan of finance of the public infrastructure district; and
556556 5. Proposed development within the public infrastructure
557557 district.
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609609 E. 1. The creation of a public infrastructure district is
610610 subject to the sole discr etion of the governing board of the
611611 municipality responsible for approving or rejecting the creation of
612612 the public infrastructure district .
613613 2. The proposed municipality bears no liability for rejecting
614614 the proposed creation of a public infrastructure district.
615615 SECTION 5. NEW LAW A n ew section of law to be codified
616616 in the Oklahoma Statutes as Section 39-205 of Title 11, unless there
617617 is created a duplication in numbering, read s as follows:
618618 A. The legislative body of the municipality that approved the
619619 creation of a public infrastructur e district shall appoint the
620620 initial members of the board, in accordance with the governing
621621 document.
622622 B. 1. Unless otherwise limited in the gover ning document, the
623623 initial term of each member shall be four (4) years.
624624 2. At least half of all members of the initial board shall
625625 serve six-year terms so as to provide for elections every two (2)
626626 years.
627627 3. A board may elect that a majority of the board serve a n
628628 initial term of six (6) years.
629629 4. After the initial term, each member shall serve for four (4)
630630 years.
631631 C. 1. A board member may not be required to be a resident
632632 within the boundarie s of the public infrastructure if:
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684684 a. all of the surface property owners’ consent to the
685685 waiver of the residency requiremen t,
686686 b. there are no residents within the boundaries of the
687687 public infrastructure distr ict, or
688688 c. no qualified candidate timely files to be considered
689689 for appointment to the board .
690690 2. An individual who is n ot a resident within the boundaries of
691691 the public infrastructure district may not serve as a board member
692692 unless the individual is:
693693 a. an owner of land or an agent or officer of the ow ner
694694 of land within the boundaries of the public
695695 infrastructure distri ct, and
696696 b. a registered voter at the in dividual’s primary
697697 residence.
698698 3. The district applicant, or spouse or immediate family member
699699 of the district applica nt, shall not be appointed to the board,
700700 unless:
701701 a. one hundred percent (100%) of the surface property
702702 owners’ consent to the inclusion of the district
703703 applicant, or spouse or immediate family member of the
704704 district applicant to the board, or
705705 b. there are no registered voters at the ti me of
706706 consideration for appoint ments to the board.
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758758 D. 1. The governing document shall provide for a transition
759759 from legislative body appointments by the municipality pursuant to
760760 subsection A of this section to a method of election of registered
761761 voters based upon milestones or events that the governing document
762762 identifies.
763763 2. Regardless of whether a board mem ber is elected under
764764 paragraph 1 of subsection D of this section, the position of each
765765 remaining board member shall continue to be appointed under
766766 subsection A of this section until the member’s respective division
767767 or board position surpasses the density m ilestone pursuant to the
768768 governing document.
769769 E. 1. Pursuant to paragraph 3 of this subsecti on, the board
770770 may, in the board’s discretion, but no more than every four (4)
771771 years, reestablish the boundaries of each division so that each
772772 division that has reached a mil estone specified in the governing
773773 document, as provided in paragraph 1 of subsection D of this
774774 section, has, as nearly as possible, the same number of eligible
775775 voters.
776776 2. In reestablishing division boundaries under paragraph 1 of
777777 this subsection, the board shall conside r existing or potential
778778 developments within the divisions which, whe n completed, would
779779 increase or decrease the number o f eligible voters within the
780780 division.
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832832 3. The governing document may prohibit the board from
833833 reestablishing, without the consent of the municipality, the
834834 division boundaries as described in paragraph 1 of this subsection.
835835 F. The public infrastructure district may not compensate a
836836 board member for the member ’s service on the board.
837837 G. The governing document shall:
838838 1. Include a boundar y description and a map of the public
839839 infrastructure district, which may include, but not limited to, an
840840 estimate of the district’s population;
841841 2. Provide a description of proposed services;
842842 3. Provide a financi al plan showing how the proposed services
843843 are to be financed, including the proposed operating revenue derived
844844 from tax assessments, all proposed indebtedness for the district,
845845 and all other necessary budgetary conditions;
846846 4. A preliminary engineering or architectural survey showing
847847 how the proposed services are to be provided;
848848 5. A general description of the facilities to be cons tructed
849849 and the standards of such cons truction, including a statement of how
850850 the facility and services standards of the proposed public
851851 infrastructure district are compatible with facility and service
852852 standard of any municipality or county within which all or any
853853 portion of the proposed district is to be located;
854854 6. A general description of the estimated cost of acquiring
855855 land engineering services, legal services , administrative services,
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907907 and any other major expen ses related to organization and initial
908908 operation of the district;
909909 7. State the number of board members;
910910 8. Establish the electoral procedure of appointment for board
911911 members as described in this section ;
912912 9. Detail any and all divisions within the public
913913 infrastructure district;
914914 10. Detail any and all applicable milestones establis hed for
915915 the public infrastructure district;
916916 11. Provide notice of mill rate limit as prescribed by Section
917917 ___ of Article ___ of the Oklahoma Constitution for the public
918918 infrastructure district;
919919 12. Establish any applicable limitation on the principal a mount
920920 of indebtedness for the public infrastructure dis trict;
921921 13. Provide notice of procedural process for the authorization
922922 of the public infrastructure district to issue public infrastructure
923923 district bonds as provided in this act;
924924 14. Any funds created for any charges, fines, or fees that the
925925 public infrastructure district may assess;
926926 15. File annual reports with the municipality regarding the
927927 public infrastructure district’s action; and
928928 16. Include other information that th e public infrastructure
929929 district or the municipality determines to be necessary or
930930 advisable.
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982982 H. 1. Except as oth erwise provided in paragraph 2 of this
983983 subsection, the board and the governing body of the municipality may
984984 amend a governing document by eac h adopting a resolution t hat
985985 approves the amended governing document.
986986 2. Any amendment to a property tax mill limit ation requires;
987987 provided, the amendment to a p roperty tax mill limitation does not
988988 exceed the tax mill limit as provided in Section 9E of Article X of
989989 the Oklahoma Constitution pursuant to the provisions of Enrolled
990990 Senate Joint Resolution No. ____ of the 1st Session of the 59th
991991 Oklahoma Legislature:
992992 a. before the adoption of the resolution of the
993993 municipality pursuant to paragraph 1 of this
994994 subsection, the public inf rastructure district shall
995995 provide notice for a public hearing with at least one
996996 member of the governing body of the municipality
997997 attending the public hearing, or
998998 b. the consent of:
999999 (1) One hundred percent (100%) of surface property
10001000 owners within the boundaries of the public
10011001 infrastructure district, and
10021002 (2) One hundred percent (100%) of the registered
10031003 voters, if any, within the boundaries of the
10041004 public infrastructure district.
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10561056 SECTION 6. NEW LAW A new section of law to be codified
10571057 in the Oklahoma Statutes as Secti on 39-206 of Title 11, unless there
10581058 is created a duplication in numbering, reads as follows:
10591059 A. A public infrastructure district may:
10601060 1. Issue a public infrastructure bond to pay:
10611061 a. all or part of the costs of acquiring, ac quiring an
10621062 interest in, improving, constructing, installing,
10631063 completing, or extending any of the public
10641064 improvements, facilities, or property for the benefit
10651065 of the public infrastructure district,
10661066 b. the acquisition, construction, installation, or
10671067 completion of public improvements related to th e
10681068 provision of residential or commercial developments ,
10691069 and
10701070 c. all or part of the capital costs related to the
10711071 financing, acquisition, construction, installation, or
10721072 completion of public transportation;
10731073 2. Enter into an interlocal agreement pursuant to Section 1001
10741074 et seq. of Title 74 of the Oklahoma Statutes; provided, that the
10751075 interlocal agreement shall not expand the power s of the public
10761076 infrastructure district;
10771077 3. Acquire completed or par tially completed improvements for
10781078 fair market value as reasonably determined by:
10791079 a. the board,
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11311131 b. the municipality, if required in the govern ing
11321132 document, or
11331133 c. a surveyor or engineer that a public infrastructure
11341134 district employs or engages to perform th e necessary
11351135 engineering services for and to supervise the
11361136 construction or inst allation of the improvements; and
11371137 4. Contract with the municipality for the municipality to
11381138 provide administrative services on behalf of the public
11391139 infrastructure district, when a greed to by both parties, in order to
11401140 achieve cost savings and economic efficiencies, at the discretion of
11411141 the municipality.
11421142 B. A public infrastructure district may issue additional public
11431143 infrastructure bonds; provided, the public infrastructure district
11441144 follows the procedures as described in subsection B of Section 7 of
11451145 this act for each additional bond iss ued.
11461146 SECTION 7. NEW LAW A new sec tion of law to be codified
11471147 in the Oklahoma Statutes as Section 39-207 of Title 11, unless there
11481148 is created a duplicatio n in numbering, reads as f ollows:
11491149 A. A public infrastructure district bond:
11501150 1. Shall mature within not more than thirty (30) years of the
11511151 date of issuance;
11521152 2. May not be secured by any improvement or facility paid for
11531153 by the public infrastructure district;
11541154 3. May not be subject to acceleration; and
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12061206 4. May be refunded or refinanced in accordance with the
12071207 applicable laws of this state .
12081208 B. 1. A public infrastructure district may issue the public
12091209 infrastructure district bond:
12101210 a. with the consent of one hundred percent (100%) of
12111211 surface property owners within the boundaries of the
12121212 public infrastructure district and one hundred percent
12131213 (100%) of the registered voters, if any, within the
12141214 boundaries of the proposed public infrastructure
12151215 district, or
12161216 b. upon approval of a majority of th e registered voters
12171217 within the boundaries of the public infrast ructure
12181218 district voting in an election.
12191219 2. A public infrastructure district bond:
12201220 a. is not subject to the limitations on a general
12211221 obligation bond described in Section 411 et seq. of
12221222 Title 62 of the Oklahoma Statutes, and
12231223 b. is subject to a limitation, if any, on the principal
12241224 amount of indebtedness pursuant to the governing
12251225 document.
12261226 C. The public infrastructure district bonds may be issued in
12271227 denominations of not less than Five Hundred Tho usand Dollars
12281228 ($500,000.00) and in integral multiples above Five Hundred Thousand
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12801280 Dollars ($500,000.00) of not less than One Thousand Dollars
12811281 ($1,000.00) each.
12821282 D. There is no limitation on the duration of revenues that a
12831283 public infrastructure district may receive to cover any shortfall in
12841284 the payment of principal of a nd interest on a bond that the public
12851285 infrastructure issues.
12861286 E. A public infrastructure district shall not be considered a
12871287 municipality or county for purposes of Section 35 of Article X of
12881288 the Oklahoma Constitution.
12891289 F. The board, by resolution, may delegate to one or more
12901290 officers of the public infrastructure district the authority to:
12911291 1. Approve the final interest rate, price, principal amount,
12921292 maturity, redemption features, and other terms of the bond;
12931293 2. Approve and execute any document relating to the issuance of
12941294 a bond; and
12951295 3. Approve any contract related to the acq uisition and
12961296 construction of the improvements, facilities, or p roperty to be
12971297 financed with a bond.
12981298 G. Any person may contest the legality of the issuance of a
12991299 public infrastructure dist rict bond or any provisions for the
13001300 security and payment of the bo nd after publication of the notice of
13011301 bond and resolution authorizing the bond. Notwithstanding the
13021302 foregoing, no legal or equitable act ion brought with respect to any
13031303 legislative acts or p roceedings in connection with the authorization
13041304
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13551355 or issuance of bonds by a publ ic infrastructure district shall be
13561356 commenced after the statut e of limitations in accordanc e with the
13571357 laws of this state.
13581358 H. The total amount of the public infrastructure district
13591359 indebtedness for all such divisions shall not exceed ten percent
13601360 (10%) of:
13611361 1. The assessed valuation of all taxable tangible property in
13621362 the public infrastructure district, as shown by the last completed
13631363 property assessment for state or local purposes, within the city or
13641364 county; or
13651365 2. The opinion of value as reported by a licensed appraiser.
13661366 I. The bonds may be sold by competitive bid pursuant to Rule
13671367 144A, 17 C.F.R. Sec. 230.144A; provided, the public infrastructure
13681368 district shall not award the purchase of the bonds to a district
13691369 applicant, member of the public infrastructure district’s board, or
13701370 individual who voted in favor for issuance of the public
13711371 infrastructure district bond.
13721372 SECTION 8. NEW LAW A new section of law to be codified
13731373 in the Oklahoma Statutes as Section 39-208 of Title 11, unless there
13741374 is created a duplication in numbering, reads as follows:
13751375 A public infrastructure district may ch arge a fee or other
13761376 charge for an administrative service that the public infrastructure
13771377 district provides to pay costs associated to:
13781378
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14291429 1. Acquiring, improving, or extending improvements, facilities,
14301430 or property; or
14311431 2. Legal fees.
14321432 SECTION 9. NEW LAW A new section of law to be codified
14331433 in the Oklahoma Statutes as Section 39-209 of Title 11, unless there
14341434 is created a duplication in numbering, reads as follows:
14351435 A. The property tax levy of a public infrastructure district,
14361436 for all purposes may not exceed ten (10) mills on the dollar of
14371437 taxable value of taxable property in the distr ict pursuant to
14381438 Section 9E of Article X of the Oklahoma Constitution pursuant to the
14391439 provisions of Enrolled Senate Joint Resolution No. ____ of the 1st
14401440 Session of the 59th Oklahoma Legislature.
14411441 B. 1. Within thirty (30) days after the day on which the
14421442 municipality adopts the resolution creating the public
14431443 infrastructure district, the board shall record a notice with the
14441444 county clerk in which property within the public infrastructure
14451445 district resides.
14461446 2. The notice shall include:
14471447 a. a description of the boundaries of the public
14481448 infrastructure district ,
14491449 b. a copy of the governing documents on file at the
14501450 office of the municipality and applicable count y
14511451 district court system, and
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15031503 c. the maximum rate the public infrastructure district
15041504 may levy.
15051505 SECTION 10. NEW LAW A new section of law to be codified
15061506 in the Oklahoma Statutes as Section 39-210 of Title 11, unless there
15071507 is created a duplication in numbering, reads as f ollows:
15081508 A. In the event of nonpayment of any tax, fee, or charge that a
15091509 public infrastructure district imposes, the public infrastructure
15101510 district may impose a property tax penalty at an a nnual rate of no
15111511 more than seven percent (7%), in addition to any other lawful
15121512 penalty for nonpayment of property tax; provided, any penalty
15131513 assessed for nonpayment of a fee or charge shall not exceed th e
15141514 nonpayment amount.
15151515 B. All funds derived from a penalty assessed for nonpayment
15161516 shall be deposited to a fund designated for use as provided in the
15171517 public infrastructure district’s governing document.
15181518 SECTION 11. NEW LAW A new secti on of law to be codified
15191519 in the Oklahoma Statutes as Section 39-211 of Title 29, unless there
15201520 is created a duplication in numbering, reads as follows:
15211521 A. The municipality, as applicable, retains the municipal’s
15221522 authority over all zoni ng, planning, design specifica tions and
15231523 approvals, and permitting within the public infrastructure district.
15241524 B. The inclusion of property within the boundaries of a public
15251525 infrastructure district does not preclude the inclu sion of the
15261526 property within any other local district.
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15781578 C. 1. All infrastructure that is conn ected to another
15791579 municipality’s system:
15801580 a. belongs to that municipality, regardless of inclusion
15811581 within the boundaries of the public infrastructure
15821582 district, unless the pub lic infrastructure district
15831583 and the municipality creates otherwise agree, and
15841584 b. shall comply with the de sign, inspection requirements,
15851585 and other standards of the municipality.
15861586 2. The public infrastructure district shall convey or transfer
15871587 the infrastructure described in paragraph 1 of this subsection free
15881588 of liens or financial encumbrances to the municipality or county in
15891589 which it resides, or a poti on of its boundaries resides, at no cost
15901590 to the municipality or county.
15911591 SECTION 12. NEW LAW A new section of law to be codified
15921592 in the Oklahoma Statutes as Section 39-212 of Title 11, unless there
15931593 is created a duplication in numbering, reads as follows:
15941594 A. A person who contests a tax or fee or any proceeding to
15951595 create a public infrastructure district, levy a tax, or impose a fee
15961596 may bring a civil action against the public infrastructure distri ct
15971597 or the municipality to:
15981598 1. Set aside the proceeding; or
15991599 2. Enjoin the levy, imposition, or collection of a tax or fee.
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16511651 B. The person bringing an action shall bring the action in the
16521652 district court with jurisdiction in the county in which the public
16531653 infrastructure district is located.
16541654 C. An action under subsection A of th is section is the
16551655 exclusive remedy of a person who:
16561656 1. Claims an error or irregularity in a tax or fee o r in any
16571657 proceeding to create a public infrastructure district, levy a tax,
16581658 or impose a fee; and
16591659 2. Challenges a bondholder’s right to repayment.
16601660 D. A bond issued or to b e issued with respect to a public
16611661 infrastructure district and any tax levied or fee imposed becomes
16621662 incontestable against any person who has not brought an action and
16631663 served a summons in accordance with this section.
16641664 E. 1. This section does not insulate a public infrastructure
16651665 district from a claim of mis use of funds.
16661666 2. a. Except as provided in subparagraph b of this
16671667 paragraph, an action in the nature of mandamu s is the
16681668 sole form of relief available to a party challenging
16691669 the issue of funds.
16701670 b. The limitation in subparagraph a of this paragraph
16711671 does not prohibit the filing of criminal charges
16721672 against or the prosecution of a party for the misuse
16731673 of funds.
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17251725 SECTION 13. NEW LAW A new section of law to be codified
17261726 in the Oklahoma Statutes as Section 39-213 of Title 11, unless there
17271727 is created a duplication in numbering, reads as follows:
17281728 A. Each owner of real property that se lls real property inside
17291729 the boundaries of the public infrastructure district , concurrently
17301730 with or prior to the exec ution of a contract to se ll the property,
17311731 shall provide to the purchaser of the property a paper copy or
17321732 electronic copy with the following:
17331733 1. The public infrastructure district’s governing document;
17341734 2. The maximum debt service the public infrastructure district
17351735 is permitted to impose;
17361736 3. The estimate of the property taxes levied by the
17371737 municipality that are applicable to the property for collection
17381738 during the year in which the sale occurs; and
17391739 4. A copy of the most c urrent county assessor ’s property tax
17401740 certificate applicable to the property as an estimate of the sum of
17411741 additional property taxes levied.
17421742 B. Along with the information required in s ubsection A of this
17431743 section, the seller shall include a notice with the following
17441744 statement:
17451745 “This estimate only provides an estimat ion of the amount of the
17461746 new property taxes that may be due and owing after the property has
17471747 been reassessed and, in some instances, reclassified as residential
17481748 property. This estimate is not a statement of the actual and fu ture
17491749
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18001800 taxes that may be due. First year property taxes may be based on a
18011801 previous year’s tax classification, whi ch may not include the full
18021802 value of the property and , consequently, taxes may be higher in
18031803 subsequent years. A seller has c omplied with this disc losure
18041804 statement as long as t he disclosure is based upon a good-faith
18051805 effort to provide accurate es timates and information.”
18061806 SECTION 14. This act shall become effective Novembe r 1, 2023.
18071807 SECTION 15. The provisions of this act shall be contingent upon
18081808 the approval of Section 9E of Article X of the Oklahoma
18091809 Constitution, as referred to the people for their approval or
18101810 rejection by the Secretary of State pursuant to the provisions of
18111811 Enrolled Senate Joint Resolution No. ____ of the 1st Session of the
18121812 59th Oklahoma Legislature and shall not become operative as law
18131813 otherwise
18141814
18151815 59-1-180 MR 1/19/2023 2:03:42 PM