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ENGROSSED HOUSE
BILL NO. 1166 By: Kelley, Miller, and
Steagall of the House
and
Howard of the Senate
An Act relating to cities and towns; amending 11 O.S.
2021, Section 21-103, which relates to procedures for
annexation; modifying procedure fo r annexation of
territory without the consent of majority of owners;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 11 O.S. 2021, Section 21 -103, is
amended to read as follows:
Section 21-103. A. Before the governing body of a city or town
may annex any territory adjacent or contiguous to the city or town,
it must obtain the written consent of the owners of at least a
majority of the acres to be annexed to the mun icipality and provide
for notice and a public hearing on the proposed annexation of the
territory in the manner provided in subsection B of this section.
The annexation of land by a connecting strip serving no municipal
purpose other than to establish sta tutory contiguity or
adjacentness, or to capture territory within the area to be annexed,
constitutes an impermissible exercise of state -delegated authority
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by a municipality and shall be prohibited. Municipalities with a
population of twelve thousand (12 ,000) or less may only annex up to
eight (8) square miles in one area at any one time provided the
municipality obtains the written consent of the owners of at least
sixty-five percent (65%) of the acres to be annexed and twenty -five
percent (25%) of the p opulation to be annexed.
B. The governing body shall provide the notice and public
hearing required in subsection A of this section in the following
manner:
1. The governing body of the municipality shall direct that
notice of the proposed annexation of the territory be published in a
legally qualified newspaper of general circulation in the territory
and shall describe the boundaries of the territory proposed to be
annexed by reference to a map, geographical locations, legal or
physical description or ot her reasonable designation. The notice
shall state the date, time, and place the governing body shall
conduct a public hearing on the question of annexing the territory.
The notice shall be published in a legal newspaper of general
circulation in the ter ritory sought to be annexed within fourteen
(14) days following the date the governing body directed the notice
to be published;
2. A copy of the notice of annexation shall be mailed by first -
class mail to all owners of property to be annexed as shown by the
current year's ownership rolls in the office of the county treasurer
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and to all owners of property abutting any public right -of-way that
forms the boundary of the territory proposed to be annexed and to
the Sales and Use Tax Division of the Oklahoma Ta x Commission;
provided that the notice of annexation shall be mailed by certified
mail to every person who owns a parcel of land of five (5) acres or
more used for agricultural purposes; and
3. The public hearing of such annexation shall be held no
earlier than fourteen (14) days nor more than thirty (30) days
following the publication and mailing of the notice.
C. Unless otherwise provided by law, a roadway or road right -
of–way that is adjacent or contiguous to the territory to be annexed
shall be considered a part and parcel to the territory to be
annexed.
D. Before any territory is annexed to a munic ipality, without
the written consent of the owners of at least a majority of the
acres to be annexed to the municipality in accordance with
subsection A of this section, the governing body of the municipality
shall direct that notice of the proposed annexation of the territory
be published in a legally qualified newspaper of general circulation
in the territory and shall hold a public hearing on the proposed
annexation. Prior and prior to the publication of notice pursuant
to subsection B of this section , the municipality shall prepare a
plan to extend municipal services including, but not limited to,
water, sewer, fire protection, law enforcement and the co st of such
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services appropriate to the proposed annexed territory. The plan
shall be included in the notices published and mailed pursuant to
subsection B of this section. The plan shall provide that the
municipality complete the implementation of the pl an in accordance
with any existing capital improvement plan applicable to the portion
of the municipality adjacent to the territory proposed to be
annexed. If no such capital improvement plan has been adopted, the
municipality shall complete the service p lan within one hundred
twenty (120) months from the date of annexation unless a different
time is determined by consensus between property owners and the
municipality at the hearing. The time for completion of the service
plan shall be set forth in the or dinance annexing the territory. If
municipality services are not substantially complete within the
prescribed time, then the territory shall immediately be detached by
from the governing body as provided in Section 21 -110 of this title
upon expiration of the one hundred twenty (120) months . For
purposes of this subsection, services may be provided by any method
or means available to the municipality to extend municipal services
to any other area of the city or town. Such notice, hearing and
plan shall be subject to the following provisions:
1. The notice shall describe the boundaries of the territory
proposed to be annexed by reference to a map, geographical
locations, legal or physical description or other reasonable
designation and shall state that the proposed service plan is
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available for inspection at a specified location. The notice shall
state the date, time, and place when the governing body shall
conduct a public hearing on the question of annexing the territory.
The notice shall be published i n a legal newspaper of general
circulation in the territory sought to be annexed within fourteen
(14) days following the date the governing body directed the notice
to be published. A copy of the notice of annexation shall be mailed
by first-class mail to all owners of property to be annexed as shown
by the current year's ownership rolls in the office of the county
treasurer and to the Department of Transportation for purposes of
clarifying any road maintenance responsibilities; provided that the
notice of annexation shall be mailed by certified mail to every
person who owns parcel of land of five (5) acr es or more used for
agricultural purposes and to the board of county commissioners of
the respective county where the proposed annexation is located. If
the territory to be annexed encroaches upon any adjacent county, a
copy of the notice of annexation shall be mailed by first -class mail
to the board of county commissioners of the adjacent county and of
the county where the proposed annexation is located;
2. The public hearing of such annexation shall be held no
earlier than fourteen (14) days nor more th an thirty (30) days
following the publication and mailing of the notice; and
3. The proposed service plan shall be available for inspection
and be explained to the property owners of the territory to be
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annexed at the public hearing. The plan may be amended through
negotiation at the hearing. The final service plan shall be
incorporated into and made part of the ordinance annexing the
territory.
E. In any situation where the territory to be annexed by any
city or town includes land owned by a state bene ficiary public trust
or that was previously owned and conveyed by a state beneficiary
public trust, annexation shall not be carried out under the
provisions of subsection D of this section, but instead shall
require the written consent of all of said trust and transferees of
said trust.
F. E. The prevailing property owner in an annexation dispute
shall be entitled to court costs and reasonable attorney fees ,
including, but not limited to, when a municipality withdraws,
revokes or otherwise reverses the ord inance at issue in response to
litigation before issuance of a final judgment.
G. F. As used in this section:
1. "Airport" means any facility owned by an y legal entity or by
a county, a municipality or a public trust having at least one
county or municipality as its beneficiary which is used primarily
for the purpose of providing air transportation of persons or goods
or both by aircraft powered through th e use of propellers,
turboprops, jets or similar propulsion systems;
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2. "Military installation" mean s those facilities constituting
the active or formerly active bases owned by the Department of
Defense or other applicable entity of the United States gove rnment
or by any entity of local government after transfer of title to such
installation; and
3. "Spaceport" means any area as defined pursuant to Section
5202 of Title 74 of the Oklahoma Statutes.
H. G. Except for ordinances enacted pursuant to Section 43-
101.1 of this title, parcels of land five (5) acres or more used for
agricultural purposes annexed into the municipal limits on or after
July 1, 2003, or parcels of land forty (40) acres or more used for
agricultural purposes prior to annexation and hav e continued in
uninterrupted agriculture use annexed into the municipal limits
shall be exempt from ordinances restricting land use and building
construction to the extent such land use or construction is related
to agricultural purposes. Where there is n o residence within fifty
(50) feet of the boundaries of such a parcel of land, the property
shall not be subject to ordinances regulating conduct that would not
be an offense under state law; provided, that any such property that
discharges into the munici pal water, wastewater, or sewer system
shall be subject to any ordinances or regulations related to
compliance with environmental standards for that system.
I. H. Parcels of land situated within an area that is or may be
subject to any form of land use or other regulatory control as a
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result of proximity to an airport, spaceport or military
installation shall not be exempt from municipal ordinances or other
laws regulating property for the purpose of operations necessary for
the use of an airport, spacepor t or military installation and such
parcels of land shall be subject to all ordinances enacted pursuant
to Section 43-101.1 of this title.
J. I. If territory is annexed pursuant to this section, the
annexing governing body shall provide notice by first -class mail
together with a map and plat of the annexed territory to the Sales
and Use Tax Division of t he Oklahoma Tax Commission prior to the
effective date of such annexation. The Tax Commission shall notify
the known sales tax vendors within the boundari es of the annexed
territory as provided by Section 119 of Title 68 of the Oklahoma
Statutes.
SECTION 2. This act shall become effective November 1, 2025.
Passed the House of Representatives the 24th day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the _____ day of __________, 2025.
Presiding Officer of the Senate
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