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 align the statutory language with the February 2021 Unregulated Utility Consumer Protection Act. The changes ensure that municipalities cannot impose franchise fees or local taxes on securitization revenue streams used to repay private financing that avoids burdening utility customers with immediate costs.

Scope change

The bill's scope was expanded from only regulated utilities to include unregulated utilities and electric cooperatives that used private financing methods to avoid burdening customers.

SCOPE

Added explicit reference to unregulated utilities and electric cooperatives as entities covered by the bill's protections against municipal franchise fees and taxes.

DEFINITION

Clarified that revenue streams created by rates and charges used to repay private financing that avoided burdening consumers with immediate costs qualify as securitization revenue streams.

TECHNICAL

Reorganized and renumbered sections to conform with Senate floor procedures and updated statutory citation numbers.

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

MODERATE

The bill was revised from a committee substitute version to a floor version with updated formatting and some text reorganization. The substantive policy content regarding restrictions on franchise fees and taxes on securitization revenue streams remains consistent, though the legislative findings and section numbering were adjusted for clarity and consistency.

Scope change

The bill's scope remains the same - it restricts municipalities from imposing franchise fees and certain taxes on securitization revenue streams related to bonds issued by the Oklahoma Development Finance Authority under the 2021 Utility Consumer Protection Acts.

TECHNICAL

Formatting and page numbering were updated to reflect floor version standards with proper committee substitute headers.

Legislative sponsor names were reorganized to show House sponsors first, then Senate sponsors, which is standard floor version formatting.

Bill title was updated to more clearly describe the subject matter as relating to securitization revenue streams and the 2021 Consumer Protection Acts.

Section numbering and organization were restructured for better flow, with some sections renumbered and content consolidated.

DEFINITION

The definition of 'securitization revenue stream' was clarified to include revenue from bonds or obligations issued on or after the effective date of the act.

House Committee Substitute → Senate Committee Substitute for House Bill · 4 edits

MODERATE

The bill was renumbered and reorganized from a House Committee Substitute to a Senate Committee Substitute, with significant changes to the legislative findings and statutory sections. The original version focused on the Oklahoma Development Finance Authority and the February 2021 Utility Consumer Protection Acts, while the Senate version broadens the scope to include cities and towns more explicitly and clarifies the legislative intent regarding franchise fees and local taxes on securitization revenue streams.

Scope change

The bill's scope was expanded to more clearly define the applicability of restrictions on franchise fees and local taxes across both regulated and unregulated utility contexts, with updated statutory citations and a clearer legislative intent statement.

SCOPE

The bill title and legislative findings were rewritten to explicitly mention 'cities and towns' and clarify that the restrictions apply to securitization revenue streams used for defeasance of obligations issued by the Oklahoma Development Finance Authority under both the Regulated and Unregulated Utility Consumer Protection Acts.

DEFINITION

The definition of 'securitization revenue stream' was updated to include revenue streams created by rates and charges used to repay private financing that avoided burdening consumers with immediate payment of extraordinary costs, as defined in Section 9052 of Title 74.

REQUIREMENT

Section 2 was renumbered and reworded to prohibit municipalities from imposing franchise fees on securitization revenue streams utilized under the February 2021 Unregulated Utility Consumer Protection Act, while Section 3 was similarly updated to prohibit sales, use, and other taxes on such revenue streams.

TECHNICAL

The bill was reorganized with new section numbers and updated statutory citations (e.g., Section 9061 and 9062 of Title 74), with page numbers and requirement numbers changed to reflect the Senate Committee Substitute format.

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

MINOR

The bill was amended to update committee substitute formatting and add new sections that expand the scope of tax restrictions on securitization revenue streams. The House Committee Substitute adds provisions ensuring that municipalities cannot impose sales, use, or other taxes on securitization revenue streams for bonds issued by the Oklahoma Development Finance Authority, extending protections to future obligations issued after the act's effective date.

Scope change

The bill's scope was expanded to include securitization revenue streams for bonds or obligations issued on or after the effective date of the act, not just those issued pursuant to the February 2021 Regulated Utility Consumer Protection Act.

TECHNICAL

Updated bill header from 'Proposed Policy Committee Substitute' to 'Committee Substitute' to reflect legislative process status.

Changed page reference numbers from 12350 to 12930 throughout the document.

REQUIREMENT

Added new Section 5 extending tax restrictions to securitization revenue streams for bonds issued on or after the effective date of the act, broadening protection beyond just obligations issued under the 2021 Act.

Engrossed → Proposed Policy Committee Substitute 1 · 4 edits

MODERATE

The Policy Committee Substitute completely rewrites HB 1220 by deleting the original text and replacing it with substantially identical language, indicating this is a procedural amendment to conform the bill title and formatting to committee standards rather than a substantive policy change. The core provisions regarding restrictions on franchise fees and taxes on securitization revenue streams remain unchanged.

Scope change

No substantive change to the bill's scope or applicability; the amendment is primarily technical/formatting to conform to committee substitute standards.

TECHNICAL

Original bill header and formatting removed

New committee substitute header and formatting added

Bill title and page numbering reformatted to match committee substitute standards

POLICY

All substantive policy provisions regarding franchise fee and tax restrictions on securitization revenue streams remain identical

Introduced → Engrossed · 5 edits · Mar 3, 2025

MODERATE

The bill was significantly rewritten from its original version, changing its title and purpose from a general 'Utilities Updating Act' to a specific 'Securitization Revenue Stream Protection Act.' The new version focuses exclusively on protecting revenue streams from the Oklahoma Development Finance Authority from municipal franchise fees and local taxes. The bill now includes two separate sections (Sections 2 and 3) that prohibit municipalities from imposing franchise fees or sales/use taxes on this specific revenue stream, which was not clearly defined in the original version.

Scope change

The bill's scope narrowed from a broad utilities update to specifically address securitization revenue streams related to the Oklahoma Development Finance Authority, protecting them from municipal fees and taxes.

SCOPE

Bill title and subject matter changed from general utilities updating to specific protection of securitization revenue streams

REQUIREMENT

New Section 2 prohibits municipalities from imposing franchise fees on securitization revenue streams

New Section 3 prohibits municipalities from imposing sales, use, or other taxes on securitization revenue streams

TIMELINE

Removed original effective date of November 1, 2025; new effective date not specified in this excerpt

DEFINITION

Added specific references to 'February 2021 Regulated Utility Consumer Protection Act' and 'February 2021 Unregulated Utility Consumer Protection Act' as the governing authority

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

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