This bill establishes new regulations regarding sinking funds for bonds issued by school districts in Oklahoma, excluding technology center school districts. It mandates that the millage rate for the sinking fund must be sufficient to cover both the redemption of the bond and the payment of interest within the same period for which the bond was issued. Additionally, if a bond is redeemed before its maturity date and below par, the tax levied for its redemption must be reduced to zero for at least one full tax year following the redemption. The bill also prohibits the issuance of new bonds for the same purpose for at least one year after such a redemption.

To ensure compliance, the State Auditor and Inspector is tasked with enforcing these provisions and may create rules and require documentation for enforcement. Noncompliant school districts will face a penalty, requiring them to transfer 10% of their State Aid allocation to the Education Reform Revolving Fund in the following school year. Furthermore, districts that do not receive State Aid will be restricted from issuing bonds that would require a tax levy exceeding 50% of the maximum authorized rate until they achieve compliance. The bill is set to take effect on November 1, 2025.