The Private Activity Bond Modernization Act of 2025 seeks to update the regulations governing private activity bonds in Oklahoma by amending sections 695.23 and 695.24 of Title 62 of the Oklahoma Statutes. The bill introduces new definitions, such as "Housing Pool" and "Manufacturing jobs," while removing outdated terms to clarify eligible projects for bond allocations. Notably, it adjusts the percentage allocations for various pools, reducing the Student Loan Pool from 15.5% to 10% and increasing the Economic Development Pool from 12% to 25%. Additionally, the bill establishes a new Discretionary Pool, reserving 25% of the state ceiling for qualified private activity bonds, and sets a cap that no single project or issuer can receive more than 25% of this pool.

The legislation also outlines a new application process for state ceiling allocations, prioritizing applications based on their receipt order and establishing a fee structure. It mandates that applications for qualified student loan bonds include historical lending activity and demand surveys when necessary. The Deputy Treasurer for Debt Management is empowered to manage the allocation process, including the authority to reject incomplete applications. Furthermore, the bill modifies confirmation dates for private activity bonds and mortgage credit certificate programs, changing the expiration date to December 1, and includes compliance provisions with penalties for overissuance. The act is set to take effect on November 1, 2025.