House Bill No. 1220 aims to regulate the imposition of franchise fees and taxes by municipalities on the securitization revenue stream associated with obligations issued by the Oklahoma Development Finance Authority under the February 2021 Regulated and Unregulated Utility Consumer Protection Acts. The bill asserts that the Legislature has the authority to enact these provisions and finds that certain municipalities have imposed fees and taxes contrary to legislative intent, which is deemed a matter of statewide concern.

The bill includes new legal provisions that prohibit municipalities from imposing any franchise fees or taxes on the securitization revenue stream related to these obligations. Specifically, it establishes that no municipality shall impose such fees or taxes on the revenue stream required for the defeasance of obligations issued by the Oklahoma Development Finance Authority. The bill also declares an emergency, allowing it to take effect immediately upon passage and approval.