Bill > SB1124

This bill introduces new regulations for school district sinking funds and bond redemption, requiring that the property tax (ad valorem tax) millage rate for bond redemption be sufficient to pay off the bond and interest within the proposed period. If a bond is redeemed below its face value (par) before maturity, the bill mandates that the district reduce its redemption tax levy to zero for at least one full tax year and prohibits issuing a new bond for the same purpose for at least one year. The State Auditor and Inspector is empowered to enforce these provisions, create rules, and require documentation. If a school district fails to comply, it will receive a notice of noncompliance. Subsequent non-compliance results in the district transferring 5% of its State Aid to the Education Reform Revolving Fund for the following school year. For districts without State Aid, any bond issuance will be limited to a tax rate no higher than 50% of the district's maximum authorized levy until compliance is achieved. The bill is set to take effect on November 1, 2025, and applies to school districts (excluding technology center school districts).

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb1124&Session=2600