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. Specifically, it mandates that municipalities must obtain written consent from at least a majority of the acres to be annexed and hold a public hearing on the proposed annexation. Additionally, the bill introduces a requirement for municipalities to prepare a plan for extending municipal services—such as water, sewer, and fire protection—prior to the publication of notice regarding the annexation. This plan must be included in the notices published and mailed to property owners, and municipalities are required to complete the implementation of the plan within 120 months unless otherwise agreed upon.

The bill also includes provisions for the detachment of territory if municipal services are not substantially complete within the prescribed time frame. It clarifies that parcels of land used for agricultural purposes that are annexed will be exempt from certain land use restrictions, provided they meet specific criteria. Furthermore, the bill establishes that the prevailing property owner in any annexation dispute is entitled to court costs and reasonable attorney fees. The act is set to become effective on November 1, 2025.