HB 2195 Summary

• Oklahoma is prohibited from incurring debt obligations where total annual debt service payments from the General Revenue Fund exceed 5% of the average general fund revenue for the preceding 5 fiscal years.

• The Legislature may declare an emergency by a two-thirds vote in both houses to permit debt service payments to exceed the 5% limit.

• The state is not in violation if declining general fund revenues cause debt service payments to exceed 5%, but may not incur additional debt while payments remain above the threshold.

• Master lease program payments (Title 70, Sections 3206.6 and 3206.6a) and general obligation bonds issued under Article X, Section 39A of the Oklahoma Constitution are excluded from the debt calculation.

• The act becomes effective November 1, 2013.