The "Private Activity Bond Modernization Act of 2025" seeks to update the regulations governing private activity bonds in Oklahoma by amending several sections of the Oklahoma Statutes, particularly 62 O.S. 2021. The bill introduces new definitions, such as "Housing Pool" and "Manufacturing jobs," while removing outdated terms. It significantly increases the allocation for the Economic Development Pool from 12% to 25% and establishes a new Student Loan Pool, reserving 10% of the state ceiling for it. Additionally, the bill sets a limit on allocations, ensuring that no single project or issuer can receive more than 25% of the state ceiling, while allowing for subsequent allocations after previous ones have been issued.

The legislation also revises the application process for state ceiling allocations, emphasizing transparency and efficiency. It mandates that applications must demonstrate a structure for financing and allows the Deputy Treasurer for Debt Management to reject incomplete applications. The confirmation expiration date is adjusted from December 20 to December 1, and a new provision for carryforward allocations is introduced. The Deputy Treasurer is tasked with maintaining records of private activity bonds and enforcing penalties for issuers who overissue mortgage credit certificates or bonds. The act is set to take effect on November 1, 2025.