HB 1220: Cities and towns; prohibiting imposition of certain taxes and fees on certain bond revenue; municipal taxation; conforming language; emergency. - Oklahoma

Floor (House) → Floor (Senate) · 3 edits

MINOR

The bill was amended to clarify its application to both regulated and unregulated utilities, including electric cooperatives, and to ensure consistency with the February 2021 Unregulated Utility Consumer Protection Act. The Senate version reorganized sections to better align with the legislative intent of preventing municipalities from imposing franchise fees and taxes on securitization revenue streams used for utility financing.

Scope change

The bill's scope was expanded to explicitly include unregulated utilities and electric cooperatives in addition to regulated public utilities, ensuring broader protection against local taxation of utility financing revenue.

SCOPE

Added explicit reference to unregulated utilities and electric cooperatives to clarify they are covered by the bill's protections.

REQUIREMENT

Reorganized and clarified the language defining what constitutes a securitization revenue stream to ensure consistent application across different utility types.

TECHNICAL

Updated section numbering and statutory references to align with the Senate's formatting standards and ensure proper codification in Title 74 of the Oklahoma Statutes.

Senate Committee Substitute for House Bill → Floor (House) · 5 edits

MODERATE

The bill was renumbered and restructured from a Committee Substitute version to a Floor version, with the title and legislative findings updated to focus on securitization revenue streams rather than cities and towns. The substantive policy content remains largely the same, prohibiting municipalities from imposing franchise fees and certain taxes on revenue streams used to defease bonds issued by the Oklahoma Development Finance Authority.

Scope change

The bill's scope was slightly narrowed in its title and findings, shifting focus from general 'cities and towns' to specifically addressing securitization revenue streams from the Oklahoma Development Finance Authority's bond obligations.

TECHNICAL

Bill title and sponsor information were updated to reflect floor version formatting and renumbered sections.

New header information added indicating this is the House Floor version with bold face denoting committee amendments.

SCOPE

Legislative findings were rewritten to emphasize statewide concern regarding securitization revenue streams rather than general municipal taxation.

DEFINITION

Section 1 now explicitly defines the February 2021 Regulated Utility Consumer Protection Act as 'the Act' for reference purposes.

REQUIREMENT

Section 2 was renumbered to Section 4 and Section 3 to Section 5, with minor wording adjustments to clarify applicability to bonds issued on or after the effective date.

Engrossed → Proposed Policy Committee Substitute 1 · 1 edit

MINOR

The bill was completely rewritten by the Policy Committee, replacing the original Engrossed version with a new substitute that maintains the same core restrictions on municipal franchise fees and taxes applied to securitization revenue streams from the Oklahoma Development Finance Authority. The substantive policy content appears unchanged, with the same prohibitions on municipalities imposing fees or taxes on these revenue streams.

Scope change

The bill's scope remains the same - it continues to restrict municipalities from imposing franchise fees, sales taxes, or use taxes on securitization revenue streams required for defeasance of Oklahoma Development Finance Authority obligations.

TECHNICAL

The entire bill text was replaced with a Policy Committee substitute version, which is a procedural change rather than a substantive policy modification.

Introduced → Engrossed · 5 edits · Mar 3, 2025

MODERATE

The bill was significantly rewritten from its original version, changing its title from 'Utilities Updating Act of 2025' to focus on securitization revenue streams for the Oklahoma Development Finance Authority. The new version adds specific protections preventing municipalities from imposing franchise fees or taxes on these revenue streams, which was not clearly stated in the original introduced version.

Scope change

The bill's scope expanded from a general utilities updating act to specifically address securitization revenue streams for the Oklahoma Development Finance Authority, with new restrictions on municipal franchise fees and taxes.

SCOPE

Bill title and purpose changed from general utilities updating to specifically protecting securitization revenue streams for the Oklahoma Development Finance Authority

REQUIREMENT

New provisions explicitly prohibiting municipalities from imposing franchise fees on securitization revenue streams required for defeasance of bonds

New provisions explicitly prohibiting municipalities from imposing sales, use, or other taxes on securitization revenue streams

TECHNICAL

Bill structure changed from non-codified to codified sections in Oklahoma Statutes Title 74

TIMELINE

Added references to effective dates and applicability to future bonds issued after the act's effective date

House Committee Substitute → Senate Committee Substitute for House Bill · 8 edits

MODERATE

The bill was restructured from a House Committee Substitute to a Senate Committee Substitute, significantly expanding the legislative sponsors to include multiple House and Senate members. The scope of the bill was broadened from focusing solely on securitization revenue streams to explicitly addressing cities and towns more generally, while maintaining protections against local taxes and franchise fees on utility financing.

Scope change

The bill's scope was expanded from narrowly focusing on securitization revenue streams to explicitly addressing cities and towns more broadly, while maintaining the core protection against local taxes and franchise fees on utility financing revenue streams.

SCOPE

The bill title and introductory language were changed from focusing on 'securitization revenue stream' to explicitly addressing 'cities and towns' more broadly, indicating a broader legislative intent.

ELIGIBILITY

Additional sponsors were added to the bill, including Fugate, McCane, Roberts, Kendrix, and Standridge, expanding the bipartisan support and legislative backing.

DEFINITION

The legislative findings were expanded to clarify that the February 2021 Unregulated Utility Consumer Protection Act applies to unregulated utilities including electric cooperatives that used private financing methods.

REQUIREMENT

Section 2 was renumbered and its language was updated to apply to the February 2021 Unregulated Utility Consumer Protection Act rather than just the regulated utility act, expanding the scope of protected revenue streams.

Section 3 was renumbered and updated to clarify that revenue streams created by rates and charges used solely for repayment of private financing that avoided burdening consumers shall not be considered securitization revenue streams subject to local taxes.

Section 4 was renumbered and its language was updated to apply to the February 2021 Unregulated Utility Consumer Protection Act, maintaining the prohibition on franchise fees on protected revenue streams.

Section 5 was renumbered and updated to clarify that revenue streams created by rates and charges used solely for repayment of private financing shall not be subject to sales, use, or other taxes.

Section 6 was renumbered and updated to apply franchise fee prohibitions to the February 2021 Regulated Utility Consumer Protection Act, maintaining consistency across both utility acts.

Proposed Policy Committee Substitute 1 → House Committee Substitute · 3 edits

MINOR

The bill was amended to remove the 'Proposed Policy Committee Substitute' designation and reclassify it as a standard 'Committee Substitute.' Additionally, the page numbering and request numbers were updated to reflect the House Committee's version. These changes are primarily technical and administrative rather than substantive policy changes.

TECHNICAL

Removed 'Proposed Policy Committee Substitute' title and replaced with 'Committee Substitute' designation, indicating the bill has moved from the policy committee stage to the House committee stage.

Updated page and request number references from 'Req. No. 12350' to 'Req. No. 12930' to reflect the new House Committee version.

Added blank lines and spacing adjustments throughout the document to conform to House Committee formatting standards.

Cities and towns; prohibiting imposition of certain taxes and fees on certain bond revenue; municipal taxation; conforming language; emergency.

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