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Posted by on in Laws Chat

The 2019 Legislative session brought many changes to municipal finance state statutes.   The summary below is prepared from the OML Sine Die Document.  The document with links to each bill is available on the Oklahoma Municipal League website.

Public Construction/Bond Retainage: HB 1114 amends 61 O.S. Section 226 impacting a construction contract subject to a bond. It requires the retainage not to exceed 5 percent to be reduced to 2.5 percent with respect to the balance of the work to be performed, once the contractor’s work is determined by the holder to be at least 50 percent complete. A subcontract “shall” include retainage – current law is “may”. The terms of the subcontract retainage are the same as above. This bill takes effect November 1, 2019

Law Enforcement/Training & Salary Repayments: HB 1207 requires that if an officer leaves the original employing agency which paid for CLEET training later than one year, but less than two years, after initial employment, the second agency or the person receiving the training must reimburse the original employing agency 50 percent of the cost of CLEET training and salary paid to the person while completing the basic police course by the original employing agency. It deletes language relating to the use of a promissory note to recoup academy training expenses. This bill takes effect November 1, 2019.

Service Fees: HB 1425 allows municipalities to apply a service fee to online or in-person transactions to offset bank processing fees. It exempts municipal courts not of records. This bill takes effect November 1, 2019.

Municipal Court Clerks/Digitized Receipts: HB 1428 requires a municipal treasurer to credit deposits for the municipal court to the fund designated by the municipal governing body. It requires the court clerk to make a receipt for the fees, fines, and forfeitures collected which will be retained by the municipality together with a detailed statement of all costs, the style of the case in which they were paid, and the name of the defendant. It allows the receipt and detailed statement retained by the municipality to be saved and produced in an electronic format. This bill takes effect November 1, 2019.

Public Bidding/Local Bid Preference: HB 1885 amends 60 O.S. Section 176 and 61 O.S. Section 103 by providing that construction contracts “may provide” for a local bid preference of not more than 5  percent if the awarding governing body determines there is an economic benefit to the local area or economy. No preference shall be granted unless the local bidding entity is the second lowest qualified bid. The local bidder or contractor must agree to perform the contract for the same price and terms as the bid proposed by the nonlocal bidder or contractor. “Local bid” means the bidding person is authorized to do business in Oklahoma and maintains a bona fide establishment for transacting business within this state. This provision does not apply to any construction contract for which federal funds are available for expenditure when its provisions may be in conflict with federal law or regulation. The local preference amendment to 61 O.S. Section 103 is the same except it applies to public construction contracts exceeding $50,000. The bill contains details. This bill takes effect November 1, 2019.

Street & Road Construction Projects: SB 400 modifies the population requirement where the board of county commissioners may construct, improve, repair or maintain any of the streets of a municipality if the municipality has passed a sales tax or dedicated fee with the proceeds earmarked for that purpose. It requires the municipality to have a population of 5,000 or greater and for the county to have a population of less than 150,000. This bill takes effect November 1, 2019.

Sales & Use Tax: SB 513 requires a remote seller that had aggregate sales of tangible personal property within Oklahoma or delivered to locations within Oklahoma subject to tax under provisions therein worth at least $100,000 during the preceding or current calendar year to collect and remit the tax imposed under provisions therein. It requires the duty to collect and remit tax to apply to the first calendar month succeeding the month when the threshold provided therein is met. It prohibits sales by a remote seller made through a marketplace forum or a referrer's platform where the tax is collected and remitted by the marketplace facilitator or referrer from being included in determining whether the remote seller has met the threshold amount provided therein. This bill takes effect November 1, 2019.


Sales Tax Exemptions:

Sales Tax Exemption/American Legion: HB 1003 provides a sales tax exemption to American Legion organizations chartered by the United States Congress or entities organized under the laws of Oklahoma or another state pursuant to the authority of the national American Legion organization. This bill takes effect July 1, 2019.

Sales Tax Exemption/Medical Items: : HB 1262 exempts from sales tax, when administered, distributed or prescribed by a medical practitioner who is authorized by law to administer, distribute or prescribe such items, prosthetic devices, durable medical equipment used in the home and mobility-enhancing equipment. This bill takes effect July 1, 2019.

Sales Tax Exemption/Manufacturing & Digital Fabrication Tools: HB 2530 exempts from sales tax sales of tangible personal property or services to or by an organization which is exempt from taxation pursuant to the provisions of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3), verified with a letter from the MIT Fab Foundation as an official member of the Fab Lab Network in compliance with the Fab Charter, and able to provide documentation that their primary and principal purpose is to provide community access to advanced 21st century manufacturing and digital fabrication tools for science, technology, engineering, art and math (STEAM) learning skills, developing inventions, creating and sustaining businesses and producing personalized products. This bill takes effect November 1, 2019.

Sales Tax Exemption/Railroad Rolling Stock: SB 18 modifies the sales tax exemption for railroad rolling stock. It extends the sunset day on the sales tax exemption to July 1, 2024, from July 1, 2019. The bill clarifies language that the exemption applies to leases, as well as sales. It adds railroad car maintenance and retrofitting to the exemption. This bill takes effect July 1, 2019.

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Posted by on in Laws Chat

The 2018 Legislative session has come to an end and with brings a few changes to municipal finance state laws.  The summary below is prepared from the OML Sine Die Document.  You can access the entire Sine Die document with links to each bill on the Oklahoma Municipal League website.  

HB 1019XX – Creates a new law under Title 68 O.S. Section 1391 requiring marketplace facilitators and referrers who meet certain sales thresholds to file an election with the OTC to collect and remit sales tax imposed under Title 68.

HB 3347 - Amends Title 11 O.S. Section 17-208 by expanding the notice of a public hearing on a  proposed municipal budget to include posting “on the municipality’s website” in addition to a newspaper of  general circulation in the municipality not less than five (5) days before the date of the hearing. The bill also removes current law regarding the limited publication requirements for small municipalities when the total operating budget, not including debt service, does not exceed $12,000 per year. Under current law, for these small communities the proposed budget and notice may be posted at the governing body’s principal headquarters in lieu of publication in a newspaper. The bill takes effect on November 1, 2018.

SB 1042 - Amends 11 O.S. Section 17-105.1 regarding required auditor filings with the State Auditor and Inspector who may contract for the “preparation” and reporting of the information submitted on the annual municipal finance survey  form. Previous law required a “compilation" rather than “preparation”. Effective November 1, 2018.

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Posted by on in Laws Chat


The Second Session of the 55th legislature recently came to a close bringing several new laws of interest to municipal finance.   Below is a brief summary from the OML Sine Die of the laws.

Unemployment Benefits: HB 2253 makes a number of changes to the Employment Security Act including definitions of “wages”, “taxable wages”, “assigned tax rate” and “earned tax rate”. In addition, changes include appeal rules, benefit overpayments, benefit wage ratio, rate reduction for technology reinvestment apportionment, rate of employer unemployment tax and the like. In addition, the bill creates the OESC Technology Fund which from January 1, 2017 to December 31, 2021 shall be funded by each employer subject to 40 O.S. Sections 3-109, 2-110.1 and 3-113 equal to five percent of the unemployment taxes that would be owed to the OESC before any rate reduction is made pursuant to Section 9 of this Act. This apportionment shall be in addition to any contribution which that employer is required to make pursuant to the employment Security Act of 1980. The bill also contains a repealer section. The bill takes effect on November 1, 2016.

Cable Television/Municipal Authority: HB 2358 amends 11 O.S. Section 22-107.1 and 107.2 regarding municipal authority concerning ordinances, certificates, licenses, permits or franchises for cable television. Among the changes in this detailed bill: “video services is substituted for “cable television”, rental payment for use of the public ways and grounds within the municipality shall not exceed 5% of the annual gross revenues derived by the video services provider from the provision of video services within the municipality, provision is made for ordinances regulating video services pursuant to the police power. The bill defines “video services”. The bill went into effect on April 12, 2016.

Open Records/Social Security Numbers: HB amends the Open Records Act 51 O.S. Section 24A.5. It provides that all social security numbers included in a record "may" be confidential regardless of the person's status as a public employee or private individual and "may" be redacted or deleted prior to release of the record by the public body. The bill takes effect on November 1, 2016.

Employment/Disability Insurance: HB 2785 amends 74 O.S. Section 1335 to authorize a city to participate in the Disability Insurance Program administered by the Oklahoma Employees Insurance and Benefits Board. A city, upon adoption of a resolution by the municipal governing body, may participate in the Disability Insurance Program administered by the Oklahoma Employees Insurance and Benefits Board. Upon the filing of a certified copy of the resolution with the Board, the city shall become a participant on the first day of the second full month following the filing of the resolution. All employees of any city electing to participate in the Program shall have disability insurance coverage. The city shall forward to the Board, at such times as determined by the Board, the contributions necessary to pay for the disability insurance coverage of the employees of the city. The Board shall determine the amount of contribution required for the disability insurance coverage. The bill takes effect on November 1, 2016.

9-1-1 Reform: HB 3126 creates the Oklahoma 9-1-1 Management Authority Act with rule making authority given to the Oklahoma Department of Emergency Management. The bill specifies the Authority’s organization, duties and limitations. A monthly fee of 75 cents is created on each wireless telephone connection and other communication device or service connection with the ability to dial 9-1-1 for emergency calls, services that are enabled by Voice over Internet Protocol (VoIP) or Internet Protocol (IP) and prepaid wireless retail transactions. Funds shall be used by public agencies only for services, equipment and operations related to 9-1-1 emergency telephone systems. The definition of “public agency” is expanded to also include “public district, public trust, sub-state planning district, public authority or tribal authority located within this state”. It repeals 63 O.S. Sections 2821, 2841, 2842, 2843, 2843.1, 2843.2, 2844, 2847, 2851, 2852 and 2853. Sections 1 through 13 take effect on November 1, 2016. Section 14 repealing numerous sections takes into effect on January 1, 2017.

Municipal Courts/DUI: HB 3146 is a detailed bill creating the Impaired Driving Elimination Act (IDEA) impacting municipal courts not of record. It preempts municipal ordinances relating to DUI or operating a motor vehicle while impaired. The preemption will not apply to municipal criminal courts of record for these offenses. A new $15 fee is assessed for the Oklahoma Impaired Driver Database Revolving Fund via amendments to 11 O.S. Section 14-111 and 28 O.S. Section 153. In addition, 28 O.S. Section 153.1 is amended to decrease from one-half to 25% the costs paid in these cases to municipalities with 25% also paid to the DA’s Council. New law is created to require municipal law enforcement officers who make an arrest to enter an impaired driver arrest report into the impaired driver database. The bill takes effect on November 1, 2016.

Unemployment Benefits/Seasonal Workers: HB 3164 creates new law regarding unemployment benefits by a seasonal worker performed in seasonal employment. Benefits are payable only for weeks of unemployment that occur during the normal seasonal work period. Benefits shall not be paid based on services performed in seasonal employment for any week of unemployment that begins during the period between two (2) successive normal seasonal work periods under certain conditions. The bill contains details including the application procedure to be designated a seasonal employer, notice requirements and definitions. The bill takes effect on November 1, 2016.

Sales & Use Tax/Refund Claims: HB 3205 amends 68 O.S. Section 227 by authorizing a taxpayer to claim a refund for erroneously paid sales tax and use tax “within two (2) years from the date of payment”. The Oklahoma Tax Commission (OTC) may accept an amended sale or use tax report or return as a verified claim for refund if they established a liability less than the original report or return previously filed. The bill takes effect on August 25, 2016.

Bidding/Public Trusts/Emergency: SB 154 amends 60 O.S. Section 176 by increasing the bidding requirement for an emergency from $50,000 to $75,000. The bill was signed by the Governor on April 6, 2016. Since the emergency clause failed in the House, the bill will go into effect August 25, 2016.

Municipal Audits/Income: SB 888 amends the municipal audit requirements of 11 O.S. Section 17-105. Municipal income shall not include any grant monies provided to a municipality from any federal, state or other governmental entity. The bill takes effect August 25, 2016.

Public Trust/Indebtedness: SB 1011 amends 60 O.S. Sections 176. A municipality with a governing body consisting of fewer than 7 members shall be required to approve the creation of an indebtedness or obligation by a three-fifths (3/5) vote of the governing body. The bill takes effect on November 1, 2016.

Water/Delinquent Account: SB 1029 creates new law regarding termination for a delinquent account where water service is provided to real property by one public entity but that property receives sewer or waste water service from another public entity. Under conditions in the bill, the governing body providing sewer or wastewater service may request the public entity providing water service to terminate water service. The bill takes effect on November 1, 2016.


Public Finance/City Manager: SB 1102 amends 11 O.S. Section 8-116 impacting a municipality with a population of less than 5,000 who employs a part-time city manager or a part-time city planner. 26 © 2016 Oklahoma Municipal League, Inc. The financial assistance via the Department of Commerce in current law is removed. The bill takes effect August 25, 2016.

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Posted by on in Laws Chat

The 2015 Legislative session ended a few months ago and with it brings a few changes related to municipal finance.   Below is a brief summary from the OML Sine Die of those laws.


HB 1376 limits the Oklahoma Public Employees Retirement System exception section requiring a defined contribution system for those hired on or after November 1, 2015. This amendment to the exception in 74 O.S. Section 935.2, which includes municipal employees, limits participation in the defined benefit plan “only as long as he or she continues to be employed in a position” described in the exception. In addition, the employee and employer contributions are changed. The bill takes effect on November 1, 2015.


HB 1734 requires any person, firm or entity required to pay a tax, fine or other cost to the state or a local government to make the instrument payable to the state office of government and not an individual who holds public office. The bill takes effect on November 1, 2015.


HB 1825 modifies the list of governmental entities that may file certain claims to collect delinquent balances to include as qualified entities such as state agencies, municipal courts, district courts, public housing authorities and district attorneys seeking to collect unpaid court-ordered monetary obligations. It also repeals Title 68, Section 205.2, which is similar language in this same section. The bill went into effect on May 8, 2015.


HB 1965 creates the Trooper Nicholas Dees and Trooper Keith Burch Act. The bill bans the use of hand-held electronic devices to “manually compose, send or read an electronic text message” while operating a motor vehicle. The bill makes it a primary offense to text while driving. The bill levies a $100 fine and prohibits the Department of Public Safety from recording or assessing points on any license. It also makes exceptions for a device that is physically or electronically integrated into a motor vehicle, or a voice-operated global positioning or navigation system that is affixed to a motor vehicle, or a hands-free device that allows the user to write, send, or read a text message without the use of either hand except to activate, deactivate, or initiate a feature or function. Municipalities may enact and municipal police officers may enforce ordinances prohibiting and penalizing texting while driving. The ordinances shall not be more stringent and the fine and court costs for municipal ordinance violations shall be the same or less than the $100 fine. The bill takes effect on November 1, 2015.


HB 2005 amends the Firefighter Pension System regarding volunteers. It states a person 45 years old or older, as of the first date volunteer services are performed, shall not be eligible for the Pension System for any purpose and shall not receive any benefit or service credit. The Fire Chief shall make the final determination on applicants for volunteer firefighter services if the applicant is over age 45 based on local rules, ordinances and standard operating procedures. The bill takes effect on November 1, 2015.


HB 2119 permits the Division or awarding public agency to extend a contract award period no more than 120 days from the bid opening date upon the mutual written agreement between the lowest responsible bidder or bidders and the awarding public agency. The bill takes effect on November 1, 2015.


SSB 297 creates the Heritage Preservation Act creating a grant program for financial assistance to cities, counties, nonprofit 21 © 2015 Oklahoma Municipal League, Inc. organizations and tribal governments to operate and improve effectiveness of museums and historical organizations. The bill takes effect on August 20, 2015.


SB 327 repeals a number of sections in Title 8 regarding cemeteries, including cemeteries in towns, cemetery associations, cemetery funds and county cemetery associations. Of particular importance is the repeal of 8 O.S. Sections 81-87, 90, 91, 94, 111-115 and 131-141, which is language related to deposit of funds and County Cemetery Associations except references to invalidity clause and acceptance and use of monies and other items. In addition, any county of this state may use its employees and equipment for opening and closing graves and maintaining and improving any publicly owned or other cemetery within the county not owned and maintained by an individual or private organization. A reasonable fee may be charged. The bill takes effect on November 1, 2015.


SB 336 creates a sales tax exemption for organizations exempt from taxation via Section 501(c)(3) related to a fundraising event sponsored by the organization or entity when the event does not exceed any five (5) consecutive days and when the sales are not in the organization’s or the entity’s regular course of business. Provided, the exemption provided in this paragraph shall be limited to tickets sold for admittance to the fundraising event and items which were donated to the organization or entity for sale at the event. The bill takes effect on November 1, 2015.


SB 376 allows a municipality or a public trust with a municipality as its beneficiary to charge a convenience fee. The convenience fee shall be limited to bank processing fees and financial transaction fees, the cost of providing for secure transaction, portal fees, and fees necessary to compensate for increased bandwidth incurred as a result of providing for an online transaction. The bill also applies to the Uniform Consumer Credit Code. The bill takes effect on November 1, 2015.



Municipal Finance in Oklahoma is constantly changing, make sure your check the blog frequently for updates on Oklahoma Statute changes and the latest from GASB.  

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Posted by on in Laws Chat

HB 2541 Requires municipal courts to keep confidential all personal identifying information of the parties involved in any case, including credit card numbers, Social Security numbers and bank account numbers. It provides an exception for the Oklahoma Tax Commission for the purpose of collecting municipal court fees. The bill goes into effect on November, 1, 2010.

HB 2653 Creates a nine-member Task Force on Municipal Finance to examine the laws governing municipal finance for all forms of municipal government. It requires the task force to submit a report to the House speaker, Senate president pro tempore and governor by Jan. 31, 2011. It states that the task force is to terminate effective Feb. 1, 2011.

HB 3054 Creates the Municipal Fiscal Impact Act requiring a fiscal impact statement for a bill the legislative committee wishes to consider or approve. This will slow down legislative enactments of unfunded mandates. The bill goes into effect on November 1, 2010.

HB 2556 Establishes a 50-cent prepaid wireless 911 fee to be collected by the seller and remitted to the Oklahoma Tax Commission. It requires the Tax Commission to pay remitted prepaid wireless 911 fees to the governing bodies that the Statewide 911 Advisory Board has certified as eligible to receive the funds, and it requires the commission to develop a formula for allocation based on population. It directs revenue distributed to governing bodies to be used only for services related to 911 emergency wireless telephone services, including automatic number identification and automatic location information services. It prohibits any additional tax, fee, surcharge or other charge on prepaid wireless 911 services from being imposed by the state, any political subdivision or any intergovernmental agency for 911 funding purposes. The bill goes into effect on January 1, 2011.

HB 3313 Increases the amount from $25,000 to $50,000 for contracts for construction, labor, equipment, material or repairs to be awarded by public trusts to the lowest and best competitive bidder. It allows the trust to use funds in an amount exceeding $50,000 to award a contract without public notice or competitive bids if an immediate emergency exists and the use is necessary to avoid loss of life, substantial damage to property or damage to the public peace or safety. It also modifies language to require other construction contracts for the purpose of making any public improvements or constructing or making repairs to any public building for $50,000 or less to be awarded to the lowest responsible bidder by receipt of written bids or awarded on the basis of competitive quotes to the lowest responsible qualified contractor. It allows work to be commenced in accordance with the purchasing policy of the public agency. The bill also modifies language to allow other construction contracts for less than $25,000 to be negotiated with a qualified contractor. The bill goes into effect on November 1, 2010.

HB 2359 Allows municipalities to enforce or augment Oklahoma Tax Commission enforcement of their sales and use taxes through audits performed either directly or through contract with private auditors.

SB 1998 Allows boards of county commissioners to construct, improve, repair or maintain any streets of a municipality with a population of less than 5,000, subject to an agreement between the county and municipal governing bodies, without regard to whether the municipality has passed a sales tax with proceeds earmarked to construct, improve, repair or maintain any of the streets or roadways of the municipality. It clarifies that language pertinent to a municipality with a population of less than 15,000 pertains to a municipality with a population of less than 15,000 and more than 5,000. It allows a board of county commissioners to construct, improve, repair or maintain streets of such a municipality even if it has passed a sales tax. It also allows boards of county commissioners to construct, improve, repair or maintain any of the streets of a municipality if the county has a population in excess of 500,000, regardless of whether the municipality has passed a sales tax with proceeds earmarked for such construction or improvements. The bill went into effect on May 13, 2010.

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