House Bill No. 1166, introduced by Kelley, amends the annexation procedures for cities and towns in Oklahoma. The bill modifies the requirement for annexing territory without the consent of the majority of landowners, stipulating that municipalities must now prepare a plan to extend municipal services—such as water, sewer, and law enforcement—prior to publishing notice of the proposed annexation. This plan must be included in the notices published and mailed to property owners, and the municipality is required to complete the implementation of the plan within 120 months unless a different timeline is agreed upon during the public hearing. If the services are not substantially complete within this timeframe, the annexed territory will be detached from the municipality.

Additionally, the bill clarifies that municipalities with populations of 12,000 or less can only annex up to eight square miles at a time, requiring consent from at least 65% of landowners and 25% of the population in the area to be annexed. It also establishes that the prevailing property owner in any annexation dispute is entitled to court costs and reasonable attorney fees if the municipality withdraws or reverses the ordinance in response to litigation. The bill is set to take effect on November 1, 2025.