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ENGROSSED HOUSE
BILL NO. 1549 By: Lepak of the House
and
Bergstrom of the Senate
An Act relating to public finance; creating the
Private Activity Bond Modernization Act of 2025;
amending 62 O.S. 2021, Section 695.23, which relates
to definitions; modifying definitions; amending 62
O.S. 2021, Section 695.24, which relates to
designation of various pools; modifying designation
of pools and amounts reserved; amending 62 O.S. 2021,
Section 695.25, which relates to the determination of
maximum total volume of bonds that may be issued for
year, publication, and application by issuers for
allocation of state ceilings; modifying the
application by issuers for allocation of state
ceilings; modifying expiration date for confirmation
date for issue of pri vate activity bonds and mortgage
credit certificate programs; providing for
noncodification; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
This act shall be known and may be cited as the "Private
Activity Bond Modernization Act of 2025 ".
SECTION 2. AMENDATORY 62 O.S. 2021, Section 695.23, is
amended to read as f ollows:
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Section 695.23. As used in the Oklahoma Private Activity Bond
Allocation Act:
1. "Application for state ceiling all ocation" means the written
application form provided by the Deputy Treasurer for Debt
Management which shall be filed by or on beha lf of the issuer in
compliance with the requirements of this act;
2. "Beginning Agricultural Producer Pool " means the portion of
the state ceiling reserved for bonds relating to the Oklahoma
Beginning Agricultural Producer Pool Act;
3. 2. "Carryforward" shall have the same meaning as in Section
146(f) of the Internal Revenue Code;
4. 3. "Confirmation" means a written confirma tion of allocation
issued by the Deputy Treasurer for Debt Management;
5. 4. "Consolidated Pool" means an aggregation of unallocat ed
sums of the state ceiling derived from pools as set forth in
subsection M of Section 695.24 of this title;
6. 5. "Economic Development Pool " means that portion of the
state ceiling reserved for projects specifically authorized by the
Council of Bond Oversight, as provided for in subsection B of
Section 695.24 of this title;
7. "Exempt facility bonds " means exempt facility b onds as
defined in Section 142(a) of the Internal Revenue Code;
8. "Exempt Facility Pool " means the portion of the state
ceiling reserved for exempt facility bonds;
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9. 6. "Final certification" or "final certificate" means a
certification or certificate filed with the Deputy Treasurer for
Debt Management by or on behalf of the issuer specifying the exact
amount of indebtedness issued by an issuer, or, in the case of
mortgage credit certificates, a copy of the document or election
filed with the Internal Re venue Service exchanging bond issuance
authority for mortgage credit certificate issuance authority;
7. "Housing Pool" means that portion of the state ceiling
reserved for single-family mortgage revenue bonds, multifamily
revenue bonds, and mortgage credit certificates;
10. 8. "Internal Revenue Code " means the Internal Revenue Code
of 1986 (26 U.S.C., Section 1 et seq.), as amended;
11. 9. "Issued" means any issue of bonds which have been
delivered and the purchase price therefor remitted to or for the
account of the issuer, or a copy of the document or election filed
with the Internal Revenue Service exchanging bond issuance author ity
for mortgage credit certificate issuance authority;
12. 10. "Issuer" or "issuing authority" means any public trust
or other entity which is authorized to issue tax -exempt bonds, notes
and other like obligations, or has the authority to exchange single -
family mortgage bond authority for mortgage credit certificate
authority, under the Constitution or laws of the state;
13. 11. "Local issuer" means any municipality, county or public
trust having counties or municipalities or combinations thereof as
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beneficiary, or a public trust having the state as beneficiary with
jurisdiction limited to one county of the state;
14. "Local Issuer Single Family Pool " means the portion of the
state ceiling reserved for local issuers of single -family, mortgage
revenue bonds and mortgage credit certificates;
15. "Metropolitan Area Housing Pool " means the portion of the
state ceiling reserved pu rsuant to subsection I of Section 695.24 of
this title;
12. "Manufacturing jobs" means jobs created by manufacturing
facilities as that term is defined in subparagraphs a, b, and c of
paragraph 1 of subsection B of Section 2902 of Title 68 of the
Oklahoma Statutes.
16. 13. "Mortgage credit certificate election " means a document
or election filed by an issuer with the Internal Revenu e Service
exchanging single-family mortgage bond issuance authority for
mortgage credit certificate issuance authority;
17. 14. "Mortgage credit certificates " shall have the same
meaning as in Section 25(c) of the Internal Revenue Code;
18. "Oklahoma Housing Finance Agency Pool " means that portion
of the state ceiling reserved for single -family bonds, multifamily
bonds, and mortgage credit certificates issued by the Oklahoma
Housing Finance Agency;
19. 15. "Private activity bonds " or "bonds" means any bonds or
notes or other evidence of indebtedness, the interest on which is
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exempt from tax pursuant to the Internal Revenue Cod e, and mortgage
credit certificates, except those bonds or certificates specifically
excluded from the state ceiling under the term s of federal
legislation;
20. "Qualified small issue " used in the context of "bond" or
"bonds" or the "Qualified Small Issue Pool " shall have the meaning
as in Section 144(a) of the Internal Revenue Code;
21. "Qualified Small Issue Pool " means the portion of the state
ceiling reserved for qualified small issue bonds;
22. 16. "Qualified student loan bonds " shall have the same
meaning as in Section 144(b) of the Internal Revenue Code;
23. "Rural Area Housing Pool " means the portion of the state
ceiling reserved pursuant to subsection J of Section 695.24 of this
title;
24. 17. "State" means the State of Oklahoma;
25. "State Bond Advisor" means the Deputy Treasurer for Debt
Management or his or her designee;
26. 18. "State ceiling" means the limit which i s prescribed by
the Internal Revenue Code in Section 146 and in such other
applicable sections of the Internal Revenue Code o n the amount of
private activity bonds which may be issued collectively by all of
the issuers of the state during a calendar year;
27. 19. "State issuer" means any public trust having the state
as beneficiary or any state agency or other entity with powers to
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issue private activity bonds, provided that the term shall not
include a public trust or any local issuer with the state as
beneficiary whose jurisdiction is limited to one county; and
28. "State Issuer Pool" means the portion of the state ceiling
reserved for state issuers of qualified small issuer projects; and
29. 20. "Student Loan Pool" means the portion of the state
ceiling reserved for qualified student loan bonds.
SECTION 3. AMENDATORY 62 O.S. 2021, Section 695.24, is
amended to read as follows:
Section 695.24. A. For the period January 1 through June 30 of
each calendar year, the state ceiling shall be reserved and placed
in pools according to the following:
1. Fifteen and five-tenths percent (15.5%) Ten percent (10%)
of the state ceiling shall be reserved and placed in a pool
designated as the Student Loan Pool . Allocations from this pool m ay
be made only to qualified student loan bonds issued by eligible
state issuers;
2. For the period January 1 through September 1 of each
calendar year, the Student Loan Pool shall be allocated to qualified
student loan bonds issued by eligible state issu ers. Allocations
will be available to issuers on a first -come, first-serve basis.
B. Twelve percent (12%) Twenty-five percent (25%) of the state
ceiling shall be reserved and placed in a pool designated as the
Economic Development Pool. For the period January 1 through
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September 1 of each calendar year, allocations Allocations from this
pool may be made only upon the recommendation of the Director of the
Oklahoma Department of Commerce and following review and approval by
the Council of Bond Oversight. In order to approve the
recommendation, the Council of Bond Oversight must find that the
project seeking an allocation from t his pool will result in the
creation of manufacturing jobs in this state or will in some other
way contribute to an economic develo pment objective of this state .
For purposes of this subsection, "manufacturing jobs" means jobs
created by manufacturing facilities as that term is defined in
subparagraphs a, b, and c of paragraph 1 of subsection B of Section
2902 of Title 68 of the Okla homa Statutes.
C. 1. Twelve percent (12%) of the state ceiling shall be
reserved and placed in a pool to be designated the Qualified Small
Issue Pool.
2. For the period January 1 through September 1 of each
calendar year, the Qualified Small Issue Pool shall be allocated to
qualified small issue bond projects undertaken by either state or
local issuers. Allocations will be available to issuers on a first -
come, first-serve basis.
D. 1. One percent (1%) of the state ceiling shall be reserved
and placed in a pool to be designated the Beginning Agricultural
Producer Pool.
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2. For the period January 1 through September 1 of each
calendar year, the Beginning Agricultural Producer Pool shall be
allocated pursuant to the criteria established in Section 5063.23 of
Title 74 of the Oklahoma Statutes.
E. 1. Two and five -tenths percent (2.5%) of the state ceiling
shall be reserved and placed in a pool to be designated the Exempt
Facility Pool.
2. For the period January 1 through September 1 of each
calendar year, the Exempt Facility Pool shall be allocated to exempt
facility bonds issued by either state or local issuers. Allocations
will be available to issuers on a first -come, first-serve basis.
F. 1. Except as otherwise provided by this subsection, fifteen
percent (15%);
3. Forty percent (40%) of the state ceiling shall be reserved
and placed in a pool to be designated as the Oklahoma Housing
Finance Agency Pool. Allocations from this pool may be made only to
qualified single-family bonds, multifamily bonds, or mortgage credit
certificates. Provided, however, that the allocation of the state
ceiling to the Oklahoma Housing Finance Agency as otherwise
authorized pursuant to this subsection shall be increased up to ten
percent (10%) of the state ceiling amount for any calendar year
subsequent to a certification by the Oklahoma Strategic Military
Planning Commission that the available housing stock in an area
located on or near a military installation at risk for closure or
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adverse realignment pursuant to federal law is inadequate and an
increase in available funds for construction or rehabilitation of
such housing would make closure or an adverse realignment of the
military installation less likely. The certification by the
Oklahoma Strategic Military Planning Commission shall be made and
communicated to the Deputy Treasurer for Debt Management not later
than November 15 each year. The Oklahoma Strategic Military
Planning Commission shall make a specific recommendation to the
Deputy Treasurer for Debt Management regarding the percentage
increase to be adopted for the Oklahoma Housing Finance Agency pool
for the ensuing year. The Deputy Treasurer for Debt Management
shall make the final determination regarding the amount of such
increase. Any certification made by the Oklahoma Strategic Military
Planning Commission shall be valid only for the calendar year
immediately following such certification.
2. a. For the period January 1 through September 1 of each
year, the Oklahoma Housing Finance Agency Pool shall
be allocated to qualified single family bonds,
multifamily bonds, or mortgage credit certificates
issued by the Oklahoma Housing Finance Agency.
b. Provided, thirty-five percent (35%) of the allocation
from the Oklahoma Housing Finance Ag ency Pool shall be
set aside for at least three (3) months for the
origination of single -family loans in counties with
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populations of three hundred thousand (300,000) or
less.
G. 1. Four percent (4%) of the state ceiling shall be reserved
and placed in a pool to be designated the State Issuer Pool. For
the period commencing January 1 of each calendar year through
September 1 of the same year, the State Issuer Pool shall be
allocated to those qualified small issuer projects undertaken by
state issuers which have issued in excess of Seventy -five Million
Dollars ($75,000,000.00) in qualified small issue bonds.
2. Notwithstanding the provisions of this section, a state
issuer specifically limited in jurisdiction to one county shall be
treated as a local issu er for the purposes of allocation.
H. Seventeen and five -tenths percent (17.5%) of the state
ceiling shall be reserved and p laced in a pool to be designated the
Local Issuer Single Family Pool. For the period commencing January
1 of each calendar year th rough September 1 of the same year, the
Local Issuer Single Family Pool shall be allocated to single -family
projects undertaken by local issuers in counties with populations of
three hundred thousand (300,000) or less on a first -come, first-
serve basis with no single local issuer or project to receive an
allocation in excess of Ten Million Dollars ($10,000,000.00) from
the Local Issuer Single Family Pool. An issuer which has not
received any allocation from the State Issuer Pool and having a
single-family project limited in jurisdiction to twenty counties or
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less, each of which has a population of three hundred thousand
(300,000) or less, shall be considered a local issuer for the
purposes of this subsection.
I. Twelve and five-tenths percent (12.5%) of th e state ceiling
shall be reserved and placed in a pool to be designated the
Metropolitan Area Housing Pool. Allocations from the Metropolitan
Area Housing Pool may only be made to any public trust created to
provide single-family housing having a county w ith a population in
excess of three hundred thousand (300,000) as its sole beneficiary
and which has issued tax exempt single -family housing revenue bonds
in the amount of at least Four Hundred Million Dollars
($400,000,000.00). Provided, no more than fif ty percent (50%) of
the amount allocated pursuant to this subsection shall be awarded to
any single county.
J. Eight percent (8%) of the state ceiling shall be reserved
and placed in a pool to be designated the Rural Area Housing Pool
which shall be alloc ated to single-family projects undertaken by
other local issuers in counties with populations of three hundred
thousand (300,000) persons or less on a first -come, first-serve
basis with no single local issuer or project to receive an
allocation in excess o f four percent (4%) of the state ceiling.
K. Provided, however, that the percentage otherwise authorized
by subsections A, B, C, D, E, F, G, H, I and J of this section shall
be proportionately reduced by the amount of increase in the
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percentage authorized to the Oklahoma Housing Finance Agency as a
result of a recommendation by the Oklahoma Strategic Military
Planning Commission pursuant to paragraph 1 of subsection F of this
section.
L. The state ceiling for each calendar year shall be allocated
within the categories set forth in subsections A, B, C, D, E, F, G,
H, I and J of this section to all private activity bonds, as
follows:
1. Except as provided in Section 695.21 et seq. of this title,
the state ceiling shall be allocated in the order in which
confirmations are issued;
2. The Deputy Treasurer for Debt Management shall issue
confirmations in the order in which fully and properly completed
applications for state ceiling allocation are received. The Deputy
Treasurer for Debt Management shall have th e limited authority to
defer or deny confirmation on applications for state ceiling
allocation which appear to be incomplete or premature based upon
information submitted or which fail to show demand for funds
pursuant to subsections F and G of Section 695 .25 of this title; and
3. The Deputy Treasurer for Debt Management shall have no
discretionary control regarding the issuance of confirmations,
except as specifically provided in the Oklahoma Private Activity
Bond Allocation Act.
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In the event a confirmati on or application is denied, the Deputy
Treasurer for Debt Management, within five (5) business days
following such denial, s hall send written notice of such denial to
the applicant together with a brief recital of the reason therefor.
M. 1. On September 2 of each calendar year, nonallocated sums
remaining in the Economic Development Pool, Qualified Small Issue
Pool, the Beginning Agricultural Producer Pool, the Exempt Facility
Pool, the Student Loan Pool, the Oklahoma Housing Finance Agency
Pool, the State Issuer Pool, the Local Issuer Single Family Pool,
the Metropolitan Area Housing Pool and the Rural Area Housing Pool
shall be consolidated into the Consolidated Pool.
2. All local issuers and state issuers shall be entitled to
obtain allocations from t he Consolidated Pool for any private
activity bond or mortgage credit certificate program based on the
chronological order of completed applications received after January
1 of each calendar year which applications have not received an
allocation.
a. No single project or issuer shall be eligible to
receive an allocation or allocations in excess of
twenty-five percent (25%) of th e state ceiling under
this paragraph.
b. Notwithstanding subparagraph a of this paragraph, an
issuer shall be eligible to receive s ubsequent
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allocations provided that any previous allocations
have already issued;
4. Twenty-five percent (25%) of the state ceiling shall be
reserved and placed in a pool to be designated the Discretionary
Pool. Allocations from this pool may be made to any qualified
private activity bond, as provided by Section 141 of the Internal
Revenue Code, that is not subject to paragrap h 1, 2, or 3 of this
subsection.
a. Before June 30 of any calendar year, an amount not to
exceed ten percent (10%) of the state cei ling may be
reserved and placed from the Discretionary Pool to any
of the pools defined in paragraph 1, 2, or 3 of this
subsection.
b. Reservation and placement from the Discretionary Pool
shall be at the discretion of the Deputy Treasurer for
Debt Management and subject to the approval of the
Council of Bond Oversight ; and
5. Projects subject to one or more pools shall be elig ible to
receive an allocation from the pool designated by the Deputy
Treasurer for Debt Management .
a. No pool designation shall be made for the purpose of
denying or delaying an allocation by intentionally
selecting a pool containing insufficient amounts of
available state ceiling .
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b. Any appeal from such designation shall be made to the
Council of Bond Oversight .
B. On July 1 of each calendar year, any unallocated sums
remaining in the pools of subsection A of this section shall be
reserved and placed in the Consolidated Pool.
C. Notwithstanding subsection H of Section 695.25, no later
than 9:00 a.m. on December 1 of each calendar year, any previous
allocations that fail to issue, or unallocated sums remaining in the
Consolidated Pool, shall be reclaimed or reserved for qualified
carryforward projects, as said term is used in Section 103(n)(10)
and 146(f) of the Internal Revenue Cod e.
SECTION 4. AMENDATORY 62 O.S. 2021, Section 695.25, is
amended to read as follows:
Section 695.25. A. On January 1 of each calendar year or the
first business day thereafter, the Deputy Treasurer for Debt
Management shall det ermine the maximum total volume of private
activity bonds that may be issued pursuant to federal law by the
state during that year.
B. On or before February 15 of each calendar year, the Deputy
Treasurer for Debt Management shall cause to be published in The
Oklahoma Register, or any successor publication, a notice specifying
the amount of the state ceiling for the calendar yea r.
C. Allocations Complete applications for state ceiling
allocations from the pools set forth in Section 695.24 of this title
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will shall be processed on the basis of the in chronological order
of receipt of completed applications for state ceiling allocation
unless otherwise provided in said section, and on the basis of the
information and provisions set forth in subsections D, E, F , G and H
of this section. Allocations from the Consolidated Pool will be
processed on the basis of the system set out in su bsection M of
Section 695.24 of this title and on the basis of information and
provisions set forth in subsections D, E, F, G and H of this
section.
1. The state ceiling reserved and placed pursuant to subsection
A of Section 695.24 shall be allocated in the order in which
applications are received, subject to the following:
a. applications exceeding the available amount of the
state ceiling reserved and placed in a pool pursuant
to subsection A of section 695.24, provided that the
Deputy Treasurer for Deb t Management does not exercise
the discretion provided under subparagraph a of
paragraph 4 of subsection A of Section 695.24 of thi s
title, shall be held, but retain chronological
priority, for the remaining amounts of the state
ceiling that are reserved and placed in the
Consolidated Pool, and
b. applications from issuers or projects that previously
received allocations but failed to issue within the
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120-day timeframe as required by subsection H of this
section, notwithstanding the no fee provision of
subparagraph a of paragraph 4 of this subsection,
shall be subject to the fee provision of Consolidated
Pool applications as provided i n subparagraph b of
paragraph 4 of this subsection and eligible to apply
for an allocation under subsection A of Section 695.24
with a new priority date.
2. The state ceiling reserved and placed pursuant to subsection
B of Section 695.24 shall be allocate d in the order in which
applications are received, subject to the following:
a. applications held pursuant to subparagraph a of
paragraph 1 of this subsection or new applications,
but not applications submitted pursuant to
subparagraph b of paragraph 1 of this subsection,
shall receive first priority based on the
chronological issuance of confirmation ,
b. applications from issuers or projects that previously
received allocations under subsection B of Section
695.24 but failed to issue within the 120 -day
timeframe required pursuant to subsection H shall be
subject to the fee provision of carryforward
applications as provided in su bparagraph c of
paragraph 4 of this subsection and eligible to apply
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for an allocation under subsection B of Section 695.24
with a new priority date, and
c. applications from issuers or projects that previously
received allocations under subsection A of Section
695.24, but failed to issue within the 120 -day
timeframe required pursuant to subsection H of this
section shall not be eligible to receive a priority
date for the Consolidated Pool prior to August 1 ;
3. The state ceiling reclaimed or reserved for q ualified
carryforward projects pursuant to subsection C of Section 695.24
shall be allocated in the order in which confirmations ar e issued,
subject to the following:
a. applications submitted under subsection B of Section
695.24 or new applications, but not applications
submitted pursuant to subparagraph b of paragraph 1 of
this subsection shall receive first priority based on
the chronological issuance of confirmation ,
b. applications from issuers or projects that previously
received allocations but faile d to issue within the
120-day timeframe required pursuant to subsection H of
this section, shall not be eligible to receive a
priority date prior to December 20 , and
c. applications exceeding the amount of the state ceiling
reclaimed or reserved for qualified carryforward
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projects pursuant to subsection C of Section 695.24
shall be permitted to reduce the requested amount,
without losing priority, and receive eligible
carryforward at the discretion of the Deputy Treasurer
for Debt Management;
4. All applications shall be subject to the following fee
structure, which shall be apportioned to the Bond Oversight
Revolving Fund created pur suant to Section 695.8a of this title:
a. no application fee shall be assessed to issuers or
projects for an allocation of the state ceiling under
subsection A of Section 695.24,
b. applications for an allocation of the state ceiling
under subsection B of Section 695.24 shall be subject
to a fee of one-half (0.5) basis point (0.005
percent), provided that no application shall be
subject to a fee if held pursuant to a request that
exceeded the pool amount under subparagraph a of
paragraph 1 of this subsectio n, and
c. applications for an allocation of the state ceiling
for carryforward under subsection C of Section 695.24
shall be subject to a fee of one (1) basis point (0.01
percent);
5. The Deputy Treasurer for Debt Management shall have the
limited authority to defer, retain priority, or deny confirmation on
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applications for state ceiling allocation that appear to be
incomplete or premature based upon information submitted or that
fail to show demand for funds pursuant to subsections F and G of
this section. In the event a confirmation or application is denied,
the Deputy Treasurer for Debt Management, within five (5) business
days following such denial, shall send written notice to the
applicant together with a brief recital of the reasons for denial .
D. An issuer which that proposes to issue private activity
bonds for a specific project or purpose shall make application for
an allocation of a portion of the state ceiling for the particular
project or purpose by submitting to the Deputy Treasurer for Debt
Management an application for state ceiling allocation together with
copies of the following:
1. A certified copy of the resolution or other action adopted
by the issuer for the purpose of taking "official action" as
required by the Treasury Regulations r elating to Section 103 of the
Internal Revenue Code, if the issuer of private activity bonds for
which the allocation is requ ested requires "official action" under
applicable Treasury Regulations and the Internal Revenue Code; and
2. A final resolution of the beneficiary of the issuer
evidencing its approval of the issuance of the issuer 's obligations,
if the issuer is a municipal or county public trust, or a
certificate signed by the Governor of the state evidencing his
approval of the issuance of the iss uer's obligations, to the extent
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required under the Internal Revenue Code, if the issuer is a public
trust having the state a s its beneficiary.
E. The application for state ceiling allocation shall contain
the following information:
1. The name and maili ng address of the issuer, the beneficiary
and jurisdiction thereof, the name of the presiding officer of the
issuer and the respective pool from which an allocation is
requested;
2. The name and mailing address or other definitive description
of the location of the project or bonds and the purpose for which an
allocation of the state ceiling is requested, the name and mailing
address of both the initial owner or operator of the project, where
applicable, and an appropriate person from whom information
regarding the project or bonds can be obtained, and the name and
address of the person to whom the confirmation should be sent;
3. The amount of the state ceiling which the Issuer issuer is
requesting;
4. A statement of bond counsel for the issuer that the p roposed
issue requires, pursuant to Section 103, Section 146 or such other
applicable sections of the Internal Revenue Code, an allocation of a
portion of the state ceiling; and
5. Where applicable, the intention to exchange single -family
mortgage bond authority for mortgage credit certificates.
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F. 1. Applications for single -family mortgage bonds or
mortgage credit certificate programs shall also include the
submission of information demonstrating a reasonable expectation to
use an allocation of the stat e ceiling for its intended purpose.
This information shall include historical usage of mortgage revenue
bond proceeds or mor tgage credit certificates in the geographic area
subject to an application over the previous twenty -four-month period
and the impact of known or possible competing programs that would
act to reduce demand. This information may also include demand
surveys. Provided, in cases where historical usage cannot be
documented, demand surveys shall be included with an application.
2. Applications for qualified student loan bonds shall also
include the submission of information showing a reasonable
expectation to use the state ceiling for its intended purpose. This
information shall include historical lending activity over the
previous twenty-four-month period as well as a demonstration of need
based upon such factors as increased enrollment costs, enrollment
increases, or new federal regulations that act to increase demand by
making changes to eligibility requirements to certain federally
guaranteed or subsidized student loan programs. This information
may also include demand surveys. Provided, in cases where
historical usage cannot be documented, demand surveys shall be
included with an application.
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3. Applications shall also include evide nce of a structure to
deliver the financing derived from single -family mortgage bond
proceeds or mortgage credit certificates or from qualified student
loan bond proceeds to ultimate users, particularly the extent of
lender participation in the case of mor tgage revenue bonds or
mortgage credit certificate programs.
G. 1. Upon receipt of the completed application for state
ceiling allocation, copies of the official action and final
resolutions or certificates as required by subsection D of this
section and the information required by subsections E and F of this
section and assuming availability of the sum requested and
compliance with the Oklahoma Private Activity Bond Allocation Act,
the Deputy Treasurer for Debt Management shall send, within five (5)
business days of the receipt thereof, a confirmation of the
allocation of the state ceiling for the subject project or purpose
to the person designated in the application for state ceiling
allocation. Provided, the Deputy Treasurer for Debt Management may
reject an application or deny a confirmation pursuant to the
provisions of this subsection.
2. The Deputy Treasurer for Debt Management may reject any
application which is incomplete or filed with insufficient
information. The Deputy Treasurer for Debt Mana gement may reject
any application where, in the Deputy Treasurer for Debt Management
judgment, a reasonable likelihood has no t been shown that single -
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family mortgage and student loan bond proceeds or mortgage credit
certificates will be used for their inte nded public purposes. In
the event an application or confirmation is denied, within five (5)
business days following such denial, the Deputy Treasurer for Debt
Management shall send the applicant written notice of the denial of
an application or confirmat ion together with the reason or reasons
therefor. In the case of disapprovals of applications or
confirmations, an applicant may appeal the disapproval by submitting
a new application to the Council of Bond Oversight, along with an
explanation addressing the reasons for disapproval cited in the
Deputy Treasurer for Debt Management letter. The Council of Bond
Oversight, through affirmative action of the Council, may accept an
application rejected by the Deputy Treasurer for Debt Management, or
order the Deputy Treasurer for Debt Management to issue a
confirmation of allocation, subject to provisions of the Oklahoma
Private Activity Bond Allocation Act. Applicants may submit only
one new application based on an appeal of any specific application
previously submitted.
3. Only complete applications, as determined by the Deputy
Treasurer for Debt Management, shall be used to establish the
chronological order of applications. In the case of a new
application submitted based on an appeal, chronological order sh all
be established at the time the new application is submitted.
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H. An original confirmation shall cease to be effective to
assure allocation of any portion of the state ceiling unless the
bonds, notes, other evidences of indebtedness, or the appropriate
election filed with the Internal Revenue Service exchanging mortgage
bond authority for mortgage credit certificate authority have been
issued or filed within one hundred twenty (120) days after the date
of such confirmation. No extensions shall be grante d. Such
issuance shall be evidenced by the mailing, transmittal or delivery
of a final certification to the Deputy Treasurer for Debt Management
within the time specified by this subsection. Receipt by an issuer
of a confirmation as contemplated by this section shall entitle the
issuer to rely conclusively upon the accuracy of the Deputy
Treasurer for Debt Management 's mathematical calculation and the
allocation for purposes of closing.
I. The confirmation given in advance of bond issuance or
mortgage credit certificate election will assure allocation for only
the amount of such bonds or mortgage credit certificate authority a s
is therein set forth, unless a supplementary application for state
ceiling allocation for an increase in amount is filed with and a
supplementary confirmation is issued by the Deputy Treasurer for
Debt Management for such requested allocation prior to such bond
issuance or such election, pursuant to the Oklahoma Private Activity
Bond Allocation Act. The supplementary confirmation s hall be
effective for the same period as the prior confirmation which it
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supplements. Provided, however, no supplementary co nfirmation shall
be effective to preempt any intervening confirmation as to
allocation of a portion of the state ceiling.
J. Notwithstanding the provisions of this section, all
confirmation dates for an issue of private activity bonds or
mortgage credit certificate programs expire on December 20 1 of each
calendar year. Final certification of issuance shall be delivered
to the Deputy Treasurer for Debt Management by 9:00 a.m. on December
20 1 of each calendar year.
K. On or after 9:00 a.m. on December 20 1 of each calendar
year, issuing authorities may apply to the Deputy Treasurer for Debt
Management to carry forward a portion of t he state ceiling for such
calendar year allocated to any qualified carryforward project, as
said term is used in Section 103(n)(10) and 146(f) of the Internal
Revenue Code and which shall be evidenced by the issuance of
confirmations for all carryforward p rojects within the limitations
of the state ceiling. Provided, issuers or projects with more than
Twenty Million Dollars ($2 0,000,000.00) of carryforward outstanding
as of the date of the application for carryforward shall only be
eligible for carryforwar d allocations to the extent other issuers
with less than Twenty Million Dollars ($20,000,000.00) of
outstanding carryforward authority do not fully commit the state
ceiling. Allocations on carryforward projects shall be processed on
the basis of the chron ological receipt of applications , subject to
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paragraph 3 of subsection C of this section. No portion of the
state ceiling carried forward for any given year may be carried
forward for a period in excess of three (3) calendar years following
the calendar year in which the carryforward arose, except as
otherwise permitted under federal law.
L. The Deputy Treasurer for Debt Management shall maintain
continuous and cumulative records which shall include a list and
cumulative dollar total of the private activi ty bonds for which:
1. Private activity bonds have been issued or state ceiling
exchanged for mortgage credit certificate au thority and final
certifications have been received by the Deputy Treasurer for Debt
Management;
2. Confirmations of carryforward have been issued; and
3. Confirmations in effect and outstanding for which no private
activity bonds or mortgage credit certificate elections have been
issued or filed.
The Deputy Treasurer for Debt Management shall keep continuous and
cumulative records and totals for each of the categories specified
in paragraphs 1, 2 and 3 of this subsection as well as the aggregate
total of all categories. The Deputy Treasurer for Debt Management
shall not give further confirmations at such time as the aggregate
amount of bonds, other indebtedness, carryforward or mortgage credit
certificate elections specified by paragraphs 1, 2 and 3 of this
subsection equals the state ceiling authorized for the applicable
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year. The Deputy Treasurer for Debt Management shall not awa rd a
confirmation if such award would cause indebtedness, carryforward or
elections as specified by paragraphs 1, 2 and 3 of this subsection
to exceed the state ceiling. Confirmation records shall be compiled
and furnished to any local issuer and state is suer upon written
request and payment of a fee of Fifteen Dollars ($15.00) which shall
be apportioned to the General Revenue Fund . Upon issuance of a
confirmation, the amounts of the proposed bond issue, mortgage
credit certificate election and carryforwa rd confirmation shall be
included in the continuing, mathematical calculation, until the same
shall have been terminated in a ccordance with this section.
M. The person signing any confirmation for any allocations
granted pursuant to the Oklahoma Private A ctivity Bond Allocation
Act shall certify under penalty of perjury that such allocation was
not made in consideration of any bribe, gift, gratuity or direct or
indirect contribution to any political campaign.
N. A state or local issuer, who intentionally overissues
mortgage credit certificates or bonds, shall be prohibited from
making application for an allocation of the state ceiling for any
purpose for a period of three (3) years following discovery of such
over issuance.
SECTION 5. This act shall become effective November 1, 2025.
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Passed the House of Representatives the 17th day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the _____ day of __________, 2025.
Presiding Officer of the S enate