SB 1358

1STATE OF OKLAHOMA
1
22nd Session of the 60th Legislature (2026)
2
3 SENATE BILL 1358  By: Nice
3
4
4
5
5
6AS INTRODUCED
6
7An Act relating to roads and bridges; amending 68
7O.S. 2021, Section 1353, as last amended by Section
84, Chapter 441, O.S.L. 2024 (68 O.S. Supp. 2025,
8Section 1353), which relates to the apportionment of
9revenues derived from sales tax; modifying
9apportionment for certain fiscal years; creating the
10Preserving and Advancing City and Town Transportation
10Fund; providing for allocation of funds; requiring
11certain confirmation from Department of
11Transportation; updating statutory references;
12providing for codification; providing an effective
12date; and declaring an emergency.
13
13
14
14
15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
15
16     SECTION 1.       AMENDATORY     68 O.S. 2021, Section 1353, as
16
17 last amended by Section 4, Chapter 441, O.S.L. 2024 (68 O.S. Supp.
17
18 2025, Section 1353), is amended to read as follows:
18
19     Section 1353.    A.   It is hereby declared to be the purpose of
19
20 the Oklahoma Sales Tax Code to provide funds for the financing of
20
21 the program provided for by the Oklahoma Social Security Act and to
21
22 provide revenues for the support of the functions of the state
22
23 government of Oklahoma, and for this purpose it is hereby expressly
23
24 provided that, revenues derived pursuant to the provisions of the
24
Req. No. 2687  Page 1
1 Oklahoma Sales Tax Code, subject to the apportionment requirements
1
2 for the Oklahoma Tax Commission and Office of Management and
2
3 Enterprise Services Joint Computer Enhancement Fund provided by
3
4 Section 265 of this title, and further subject to the apportionment
4
5 requirement provided in subsection D of this section, shall be
5
6 apportioned as follows:
6
7    1.   Except as provided in subsection C of this section, the
7
8 following amounts shall be paid to the State Treasurer to be placed
8
9 to the credit of the General Revenue Fund to be paid out pursuant to
9
10 direct appropriation by the Legislature:
10
11    Fiscal Year  Amount
11
12    FY 2003 and FY 2004  86.04%
12
13    FY 2005  85.83%
13
14    FY 2006  85.54%
14
15    FY 2007  85.04%
15
16    FY 2008 through FY 2022  83.61%
16
17    FY 2023 through FY 2027  83.36%
17
18    FY 2028 and each fiscal year thereafter  83.61% 83.11%;
18
19    2.   The following amounts shall be paid to the State Treasurer
19
20 to be placed to the credit of the Education Reform Revolving Fund of
20
21 the State Department of Education:
21
22a.      for FY 2003, FY 2004 and FY 2005, ten and forty-two
22
23one-hundredths percent (10.42%),
23
24
24
Req. No. 2687  Page 2
1b.      for FY 2006 through FY 2020, ten and forty-six one-
1
2hundredths percent (10.46%),
2
3c.      for FY 2021:
3
4(1)   for the month beginning July 1, 2020, through the
4
5month ending August 31, 2020, ten and forty-six
5
6one-hundredths percent (10.46%), and
6
7(2)   for the month beginning September 1, 2020,
7
8through the month ending June 30, 2021, eleven
8
9and ninety-six one-hundredths percent (11.96%),
9
10and
10
11d.      for FY 2022 and each fiscal year thereafter, ten and
11
12forty-six one-hundredths percent (10.46%);
12
13    3.   The following amounts shall be paid to the State Treasurer
13
14 to be placed to the credit of the Teachers’ Retirement System
14
15 Dedicated Revenue Revolving Fund:
15
16    Fiscal Year  Amount
16
17    FY 2003 and FY 2004  3.54%
17
18    FY 2005  3.75%
18
19    FY 2006  4.0%
19
20    FY 2007  4.5%
20
21    FY 2008 through FY 2020  5.0%
21
22    FY 2021:
22
23
23
24
24
Req. No. 2687  Page 3
1a.      for the month beginning July
1
21, 2020, through the month
2
3ending August 31, 2020  5.0%
3
4b.      for the month beginning
4
5September 1, 2020, through
5
6the month ending June 30,
6
72021  3.5%
7
8    FY 2022  5.0%
8
9    FY 2023 through FY 2027  5.25%
9
10    FY 2028 and each fiscal year thereafter  5.0%;
10
11    4.   a.      except as otherwise provided in subparagraph b of this
11
12paragraph, for the fiscal year beginning July 1, 2022,
12
13and for each fiscal year thereafter, eighty-seven one-
13
14hundredths percent (0.87%) shall be paid to the State
14
15Treasurer to be further apportioned as follows:
15
16(1)    twenty-four percent (24%) shall be placed to the
16
17credit of the Oklahoma Tourism Promotion
17
18Revolving Fund, but in no event shall such
18
19apportionment exceed Five Million Dollars
19
20($5,000,000.00) in any fiscal year,
20
21(2)    forty-four percent (44%) shall be placed to the
21
22credit of the Oklahoma Tourism Capital
22
23Improvement Revolving Fund, but in no event shall
23
24
24
Req. No. 2687  Page 4
1such apportionment exceed Nine Million Dollars
1
2($9,000,000.00) in any fiscal year, and
2
3(3)   thirty-two percent (32%) shall be placed to the
3
4credit of the Oklahoma Route 66 Commission
4
5Revolving Fund, but in no event shall such
5
6apportionment exceed Six Million Six Hundred
6
7Thousand Dollars ($6,600,000.00) in any fiscal
7
8year, and
8
9b.     any amounts which exceed the limitations of
9
10subparagraph a of this paragraph shall be placed to
10
11the credit of the General Revenue Fund; and
11
12     5.   For the fiscal year beginning July 1, 2015, and for each
12
13 fiscal year thereafter, six one-hundredths percent (0.06%) shall be
13
14 placed to the credit of the Oklahoma Historical Society Capital
14
15 Improvement and Operations Revolving Fund, but in no event shall
15
16 such apportionment exceed the total amount apportioned pursuant to
16
17 this paragraph for the fiscal year ending on June 30, 2015.      Any
17
18 amounts which exceed the limitations of this paragraph shall be
18
19 placed to the credit of the General Revenue Fund; and
19
20     6.   For fiscal year 2028 and subsequent fiscal years, fifty one-
20
21 hundredths percent (0.50%) shall be placed to the credit of the
21
22 Preserving and Advancing City and Town Transportation Fund created
22
23 in Section 2 of this act.
23
24
24
Req. No. 2687  Page 5
1    B.   Provided, for the fiscal year beginning July 1, 2007, and
1
2 every fiscal year thereafter, an amount of revenue shall be
2
3 apportioned to each municipality or county which levies a sales tax
3
4 subject to the provisions of Section 1357.10 of this title and
4
5 subsection F of Section 2701 of this title equal to the amount of
5
6 sales tax revenue of such municipality or county exempted by the
6
7 provisions of Section 1357.10 of this title and subsection F of
7
8 Section 2701 of this title.    The Oklahoma Tax Commission shall
8
9 promulgate and adopt rules necessary to implement the provisions of
9
10 this subsection.
10
11    C.   From the monies that would otherwise be apportioned to the
11
12 General Revenue Fund pursuant to subsection A of this section, there
12
13 shall be apportioned the following amounts:
13
14    1.   For the month ending August 31, 2019:
14
15a.      Nine Million Six Hundred Thousand Dollars
15
16($9,600,000.00) to the credit of the State Highway
16
17Construction and Maintenance Fund created in Section
17
181501 of Title 69 of the Oklahoma Statutes, and
18
19b.      Two Million Dollars ($2,000,000.00) to the credit of
19
20the Oklahoma Railroad Maintenance Revolving Fund
20
21created in Section 309 of Title 66 of the Oklahoma
21
22Statutes;
22
23    2.   For the month ending September 30, 2019:
23
24
24
Req. No. 2687  Page 6
1a.      Twenty Million Dollars ($20,000,000.00) to the credit
1
2of the State Highway Construction and Maintenance Fund
2
3created in Section 1501 of Title 69 of the Oklahoma
3
4Statutes, and
4
5b.      Two Million Dollars ($2,000,000.00) to the credit of
5
6the Oklahoma Railroad Maintenance Revolving Fund
6
7created in Section 309 of Title 66 of the Oklahoma
7
8Statutes;
8
9    3.   For the month ending October 31, 2019:
9
10a.      Twenty Million Dollars ($20,000,000.00) to the credit
10
11of the State Highway Construction and Maintenance Fund
11
12created in Section 1501 of Title 69 of the Oklahoma
12
13Statutes, and
13
14b.      Two Million Dollars ($2,000,000.00) to the credit of
14
15the Oklahoma Railroad Maintenance Revolving Fund
15
16created in Section 309 of Title 66 of the Oklahoma
16
17Statutes;
17
18    4.   For the month ending November 30, 2019:
18
19a.      Twenty Million Dollars ($20,000,000.00) to the credit
19
20of the State Highway Construction and Maintenance Fund
20
21created in Section 1501 of Title 69 of the Oklahoma
21
22Statutes, and
22
23b.      Two Million Dollars ($2,000,000.00) to the credit of
23
24the Oklahoma Railroad Maintenance Revolving Fund
24
Req. No. 2687  Page 7
1created in Section 309 of Title 66 of the Oklahoma
1
2Statutes; and
2
3    5.   For the month ending December 31, 2019:
3
4a.      Twenty Million Dollars ($20,000,000.00) to the credit
4
5of the State Highway Construction and Maintenance Fund
5
6created in Section 1501 of Title 69 of the Oklahoma
6
7Statutes, and
7
8b.      Two Million Dollars ($2,000,000.00) to the credit of
8
9the Oklahoma Railroad Maintenance Revolving Fund
9
10created in Section 309 of Title 66 of the Oklahoma
10
11Statutes.
11
12    D.   For fiscal year 2029, and each subsequent fiscal year, Fifty
12
13 Million Dollars ($50,000,000.00) shall be placed to the credit of
13
14 the Oklahoma Capital Assets Maintenance and Protection Fund created
14
15 in Section 2 188B of this act Title 73 of the Oklahoma Statutes.
15
16    SECTION 2.        NEW LAW       A new section of law to be codified
16
17 in the Oklahoma Statutes as Section 509 of Title 69, unless there is
17
18 created a duplication in numbering, reads as follows:
18
19    A.   There is hereby created in the State Treasury a revolving
19
20 fund to be known as the “Preserving and Advancing City and Town
20
21 Transportation Fund”.       The fund shall be a continuing fund, not
21
22 subject to fiscal year limitations, and shall consist of all
22
23 appropriations and transfers made by the Legislature and the
23
24 apportionments made pursuant to Section 1353 of Title 68 of the
24
Req. No. 2687  Page 8
1 Oklahoma Statutes.    All monies accruing to the credit of the fund
1
2 are hereby appropriated and may be budgeted and expended beginning
2
3 with the fiscal year ending June 30, 2027, and each fiscal year
3
4 thereafter pursuant to subsection B of this section.     Expenditures
4
5 from the fund shall be made upon warrants issued by the State
5
6 Treasurer against claims filed as prescribed by law with the
6
7 Director of the Office of Management and Enterprise Services for
7
8 approval and payment.
8
9     B.    The funds apportioned pursuant to Section 1353 of Title 68
9
10 of the Oklahoma Statutes shall be used as necessary for the
10
11 construction, reconstruction, and maintenance of municipal roads or
11
12 bridges as defined by the Transportation Commission.     Prior to any
12
13 funds for such projects being allocated, the municipality seeking
13
14 such funds shall submit the proposed project to the Department of
14
15 Transportation, which shall evaluate and confirm whether the
15
16 proposed projects are in accordance with the criteria provided for
16
17 in this subsection.     Roads and bridges proposed for construction,
17
18 reconstruction, and maintenance will be generally evaluated based on
18
19 the state of project innovation, readiness, structural adequacy,
19
20 safety, serviceability, necessity for public use, structural
20
21 deficiency, and special reductions for characteristics such as
21
22 detour length, traffic safety features, and current school bus
22
23 routes.   Upon confirmation by the Department of Transportation that
23
24 a proposed project is in accordance with the criteria provided for
24
Req. No. 2687  Page 9
1 in this subsection, funds shall be allocated to the municipality for
1
2 use in such project.
2
3    SECTION 3.   This act shall become effective July 1, 2026.
3
4    SECTION 4.   It being immediately necessary for the preservation
4
5 of the public peace, health or safety, an emergency is hereby
5
6 declared to exist, by reason whereof this act shall take effect and
6
7 be in full force from and after its passage and approval.
7
8
8
9    60-2-2687      MSBB      12/30/2025 2:39:25 PM
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24
Req. No. 2687  Page 10