Rural Development Legislation Advances

Rural communities would have the ability to pool resources with other entities for economic development bond projects under legislation approved today.

“This legislation gives our rural communities greater ability to pay for economic development efforts,” said Rep. Skye McNiel, R-Bristow. “This will help many parts of rural Oklahoma attract news businesses and create new jobs.”

House Bill 2067, by McNiel, creates the Oklahoma Community Economic Development Pooled Finance Act. The legislation allows the Oklahoma Development Finance Authority (ODFA) to issue up to $100 million in bonds for joint local government projects through two new programs: the Economic Development Pool and the Infrastructure Pool.

Under the legislation, one or more government entities and for-profit businesses could pool resources to pay off bonds issued through the ODFA for economic development or infrastructure projects.

Local government entities would be allowed to capture various incentive payments to go towards repayment of bonds.

All pooled financing projects involving a municipal government would have to receive voter approval.

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