OK SB1124

School districts must set sinking fund ad valorem tax rates sufficient to redeem bonds and pay interest within the proposed bond period, excluding technology center school districts.

If a bond is redeemed below par before maturity, the tax levy must be reduced to zero for at least one full tax year following redemption, and the district cannot issue a new bond for the same purpose for at least one year.

State Auditor and Inspector enforces compliance and may promulgate rules and require documentation.

School districts receiving a second notice of noncompliance must transfer 5% of State Aid allocation to the Education Reform Revolving Fund; districts without State Aid are limited to issuing bonds requiring no more than 50% of the maximum authorized levy rate until compliance is achieved.

Effective date is November 1, 2025.