The "Private Activity Bond Modernization Act of 2025" seeks to update the regulations governing private activity bonds in Oklahoma by amending specific sections of the Oklahoma Private Activity Bond Allocation Act. Key changes include the introduction of new definitions such as "Housing Pool" and "Manufacturing jobs," which clarify eligible projects for bond allocations. The bill also modifies the allocation percentages for various pools, reducing the Student Loan Pool while increasing the Economic Development Pool. Additionally, it establishes a Discretionary Pool for qualified private activity bonds, allowing for more flexible allocations without prior limitations, while capping any single project or issuer at 25% of the state ceiling from this pool.

The bill further streamlines the application process for bond allocations, emphasizing the importance of job creation and economic growth by requiring recommendations from the Director of the Oklahoma Department of Commerce and approval from the Council of Bond Oversight for allocations from the Economic Development Pool. It introduces new requirements for applications related to student loan bonds, including historical lending activity and demand surveys, and grants the Deputy Treasurer for Debt Management the authority to reject incomplete applications. The act also adjusts confirmation dates for bond issuance and establishes a process for carryforward allocations, ensuring comprehensive record-keeping and transparency. The changes are set to take effect on November 1, 2025.