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Bill

Bill

SB 1740

State government; creating the Anti-Perverse Incentive Act. Effective date. Emergency.

2026 Regular Session Introduced by Shane Jett

Oklahoma bill creates statutory framework to identify and prevent state government incentive programs from producing unintended counterproductive outcomes.

Second Reading referred to Rules Committee then to Appropriations Committee
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Bill Summary · SB 1740

Legislative bill overview

SB 1740, the Anti-Perverse Incentive Act, creates statutory provisions designed to prevent state government policies and incentive structures from producing unintended negative consequences or counterproductive outcomes. The bill is designated as emergency legislation, suggesting its sponsors believe immediate implementation is necessary. Specific details on which policies or incentives are targeted are not provided in the available legislative summary.

Why is this important

Government incentive programs—whether tax breaks, subsidies, or regulatory frameworks—can sometimes produce results opposite to their intended purpose. This bill attempts to establish guardrails against such perverse incentives at the state level, potentially affecting economic development programs, benefit systems, and regulatory policy. The emergency designation indicates the authors view this as a time-sensitive governance issue.

Potential points of contention

  • Vagueness of scope: The bill's title doesn't specify which existing state incentives or policies it targets, making it unclear whether this is broad preventive legislation or addresses specific known problems
  • Implementation burden: Creating mechanisms to identify and prevent perverse incentives across state government could require significant administrative oversight and increase bureaucratic complexity
  • Political disagreement on what constitutes "perverse": Different stakeholders may disagree on whether particular incentives are actually counterproductive or represent legitimate policy choices

Compiled from official sources — confirm details with the bill’s official record.

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