HB2758 creates the Preserving and Advancing County Transportation Fund (PACT Fund) in the State Treasury and directs certain gross production tax revenues into it beginning July 1, 2025. The fund is designed to support county transportation infrastructure by allocating two-thirds of its money to county highway construction and maintenance and one-third to county bridge reconstruction on major collector routes. The county highway portion is distributed to raise counties toward a target of $4,000 per county road mile, with remaining funds split between county road miles and county bridge counts. The bridge-reconstruction portion requires counties to submit projects to the Department of Transportation for review and confirmation before funds are released, and projects are evaluated using criteria such as readiness, structural condition, safety, serviceability, and public-use importance.
The bill also amends Oklahoma’s gross production tax apportionment statute, 68 O.S. Section 1004, to redirect a portion of oil and gas tax revenue into the new PACT Fund and to adjust several existing revenue-sharing formulas. Most notably, beginning July 1, 2025, 40% of the revenue from the 5% natural gas gross production tax is directed to the PACT Fund, capped at $75 million per fiscal year, with any excess going to the General Revenue Fund. The bill also revises the distribution of oil and gas gross production tax proceeds among the General Revenue Fund, county highway funds, school districts, the Revenue Stabilization Fund, education-related revolving funds, water and conservation funds, the County Bridge and Road Improvement Fund, and the Statewide Circuit Engineering District Revolving Fund. It also imposes an overall annual cap of $150 million on certain education, water, tourism, conservation, and related deposits, with excess amounts reverting to General Revenue.
The bill’s impact on state law is primarily fiscal and administrative. It creates a new continuing revolving fund, establishes new statutory allocation formulas for county transportation and bridge projects, and changes how gross production tax revenues are divided among state and local recipients. Counties, county treasurers, the Department of Transportation, the Oklahoma Tax Commission, and school districts are all affected by the revised apportionment structure. The measure also adds a state-level review step for bridge projects, giving ODOT a gatekeeping role before county bridge funds can be spent on eligible projects.
Overall sentiment around HB2758 appears strongly supportive. The bill passed the House and Senate with large margins, including unanimous or near-unanimous committee and floor votes in the House and a solid majority in the Senate. The voting history suggests broad bipartisan agreement that county transportation infrastructure needs additional, dedicated funding. The emergency clause and effective-date provisions also indicate an intent to move the funding changes into place quickly.
The main point of contention appears to be the reallocation of gross production tax revenue, especially the diversion of oil and gas proceeds away from the General Revenue Fund and other existing beneficiaries. The bill balances county transportation needs against competing claims from education, water, conservation, tourism, and general state operations, and the statutory caps on certain deposits suggest lawmakers were trying to limit the fiscal impact on other programs. The Department of Transportation’s confirmation authority over bridge projects may also be a practical point of concern for counties seeking flexibility, though the bill text frames that review as a safeguard to ensure projects meet objective criteria.
HB2758 adds a new Section 508 to Title 69 creating the PACT Fund and amends 68 O.S. Section 1004 to redirect specified gross production tax revenues into county transportation uses. It changes state revenue apportionment formulas for oil and gas taxes, establishes caps on certain deposits, and requires Department of Transportation confirmation before county bridge-reconstruction funds can be allocated. Counties, school districts, the Oklahoma Tax Commission, ODOT, and several state revolving funds are directly affected by the revised distribution scheme.
The bill appears to have enjoyed broad support, with strong committee and floor votes in both chambers and no recorded opposition in the House committee and final House votes. The Senate votes were also favorable, though with some dissent on the floor, suggesting general agreement on the need for county transportation funding but some reservations about the revenue shifts. The emergency clause and effective date indicate urgency and a desire for prompt implementation.
The principal contention is fiscal: the bill diverts gross production tax revenue from the General Revenue Fund and other existing recipients to a new county transportation fund, which can affect education, water, conservation, tourism, and general state spending priorities. Another possible point of concern is the Department of Transportation’s role in confirming bridge projects before funds are released, which adds state oversight and may limit county discretion. Supporters likely view these provisions as necessary to target infrastructure needs, while critics may focus on reduced flexibility in how tax revenues are used.