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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 2092 By: Sims
AS INTRODUCED
An Act relating to counties and county officers;
creating the Oklahoma Natural Disaster Mitigation and
Recovery Act; permitting counties to initiate
creation of districts; directing resolution be
submitted to the registered voters of the county;
conferring powers; describing territory of a
district; creating Trust Authority; providing for
management and budget ary oversight; developing
administrative policies and procedures; requiring
county to pay for election; providing for notice of
election; stating question to be placed on ballot;
describing eligible voters; providing for conduct of
election subject to gene ral or special election laws;
declaring establishment of district upon majority
vote; providing for levy of annual assessment on
certain property based on assessed value and
specifying purposes thereof; eliminating assessment
automatically after certain ti me; prohibiting
assessment to be used in exchange for appropriations;
providing exception; providing minimum amount of
assessment be used for certain purpose in certain
rural counties; specifying certain permitted
improvements made by rural counties; providing for a
lien against property if assessment is unpaid;
stating priority of lien; directing specified
accounting procedures by certain county officers;
directing certain costs be paid from the proceeds of
the district; requiring interest to be charged on
delinquent assessment; permitting dissolution of a
district upon certain majority vote; authorizing
certain cooperative agreements with tribal entities;
requiring certain quarterly reports; amending 68 O.S.
2011, Section 2915, which relates to statement t o
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taxpayers; adding information to be included on
certain statement; providing for codification ;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501.1 of Title 19, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Oklahoma
Natural Disaster Mitigation and Recovery Act".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501.2 of Title 19, unless there
is created a duplication in numbering, reads as follows:
The governing body of a county may initiate the creation of a
Natural Disaster Mitigation and Recovery District by the adoption of
a resolution calling for the question to be placed before the
registered voters of the county of whether to organize a Natural
Disaster Mitigation and Recovery District. The resolution shall be
submitted to registered voters of the county at a countywide special
or general election. When a district is organized, it shall have
the powers conferred by the Oklahoma Natural Disaster Mitigation and
Recovery Act.
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SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501.3 of Title 19, unless there
is created a duplication in numbering, reads as follows:
A. A Natural Disaster Mitigation and Recovery District shall
include all territory located within the county.
B. To administer the Natural Disaster Mitigation and Recovery
District, a Natural Disaster Mitigation and Recovery Trust Authority
shall be created to be responsible for the administration,
determination of projects and programs to be funded, to create,
amend and oversee the budget and to approve the expenditures of the
collected assessment. The Authority shall have seven (7 ) trustees
which shall include the three members of the board of county
commissioners, the mayor or other elected officials from three
municipalities within the county selected by the b oard of county
commissioners and one member at large selected by the b oard of
county commissioners. Operational management of the Natural
Disaster Mitigation and Recovery District as it pertains to the
approval of any capital improvements constructed and any short -term
and long-term capital acquisitions and other expenditures as
provided in paragraphs 1 through 13 of subsection C of Section 6 of
this act shall be vested within the Natural Disaster Mitigation and
Recovery Trust Authority.
C. Budgetary oversight, prioritization of capital and
noncapital projects funded and the development of the necessary
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administrative policies and procedures shall be vested within the
Natural Disaster Mitigation and Recovery Trust Authority .
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501.4 of Title 19, unless there
is created a duplication in numbering, reads as follows:
A. The costs of an election to establish a district shall be
paid by the county as determined by the county elect ion board
conducting the countywide special or general election.
B. The election to determine whether a district shall be
established, and the notice thereof, shall be conducted in the same
manner as other county questions which are submitted to the
electorate of the county. The notice shall require the registered
voters of the county to cast ballots which contain the words:
1. "Natural Disaster Mitigation and Recovery District - Yes";
and
2. "Natural Disaster Mitigation and Recovery District - No",
or words equivalent thereto.
All residents of the county who are qualified electors shall be
qualified to vote on the proposi tion. The district election shall
be conducted in accordance with the general or special election laws
of the state, and the regular election officials shall be in charge
at the usual polling place of each regular precinct, or part of a
precinct, which shall include lands within the boundaries of the
county.
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SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501.5 of Title 19, unless there
is created a duplication in numbering, reads as follow s:
If the certified election results show that greater than sixty
percent (60%) of all the votes cast are "Natural Disaster Mitigation
and Recovery District - Yes", the governing body of the county
shall, by adoption of a resolution, declare the hazard mit igation
assessment district established. Any resolution establishing a
district shall be filed in the office of the county clerk in the
county where the election was held.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501. 6 of Title 19, unless there
is created a duplication in numbering, reads as follows:
A. There shall be levied an annual assessment no greater than
two (2) mills on the dollar of assessed value on the types of
property in the district as provided in paragraphs 1, 2 and 3 of
subsection A of Section 2803 of Title 68 of the Oklahoma Statutes.
B. The annual assessment provided in subsection A of this
section shall not apply to real property zoned for agricultural land
use, livestock utilized in support of the family and personal
property owned by for -profit agricultural business entities. A
property that is exempt from the assessment at the time when the
voters approve the assessment shall remain exempt even if the
property is rezoned to a nonexempt category at a later time.
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Government-owned and nonprofit properties shall be exempt from the
annual assessment. Properties located within a tax increment
financing district shall be subject to the assessment.
C. The proceeds of the assessments shall be used for the short -
term and long-term capital acquisitions and capital improvements of
the Natural Disaster Mitigation and Recovery District, as well as
expenses related to any of the following, or combination of the
following, purposes:
1. Planning, designing, installing, constructing, operating and
maintaining natural disaster mitigation capital improvements;
2. Creating a fund balance equal to ten percent (10%) of the
amount of assessment collected annually to be used by the county
where the district is located or any municipality located within the
district for matching any funding requirements by the state or
federal government in order to qualify and to receive state or
federal government disaster relief funds;
3. Purchasing and maintaining equipment and vehicles required
to implement projects in a FEMA -approved hazard mitigation plan;
4. Providing funds in support of efforts to acquire and
demolish or relocate, if technically feasible, or elevate structures
located in areas prone to flooding , including expenses to ensure
that people whose real property is acquired using federal funds, or
who move as a result of projects receiving funds, will be treated
fairly and equitably, pursuant to the Uniform Relocation Assistance
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and Real Property Acquisition Policies Act of 1970 , Sections 4601
through 4655 of Title 42 of the United States Code , and receive
assistance in moving from the property they occupy;
5. Providing funding to county health departments for the
creation of and implementation of public health natural disaster
mitigation plans;
6. Funding for studies, evaluations, consulting services and
professional services related directly or indirectly to pu rposes in
paragraphs 1 through 5 of this subsection;
7. Providing and receiving natural disaster mitigation
training;
8. Providing administrative costs not to exceed five percent
(5%) of the total amount of assessment collected annually for the
administration of the natural disaster mitigation plan;
9. Providing for costs incurred by the county for including
hazard mitigation assessment information in the tax statement as
provided in subsection B of Section 2915 of Title 68 of the Oklahoma
Statutes;
10. Providing any funds required as a deductible on the
municipal and county property insurance policies that cover any
property, buildings, facilities, equipment, vehicles and materials
located within the district damaged or destroyed as a result of the
hazard for which an insurance claim is filed. For purposes of this
subsection, "hazard" shall mean a condition with the potential
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threat or actual loss or harm to humans, property, the community or
environment that is naturally occurring or a human -induced disaster
or event which poses or results in great risk or danger or damag e;
11. Providing for any required matching funds in order to
receive hazard mitigation grants from the state or federal
government or any private sector or nonprofit organization provided
grant funds;
12. Providing natural mitigation and recovery funding to public
authorities and trusts which are responsible for the management,
operation, construction, maintenance and preservation of public
property; and
13. Providing funds for any cleanup, demolition, debris removal
and hazardous material removal follow ing any hazard.
D. The establishment of the assessment shall terminate five (5)
years after the passage by the voters of the county unless renewed
by the voters of the county.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501.7 of Title 19, unless there
is created a duplication in numbering, reads as follows:
No portion of annual assessment shall be used to supplant or be
used in exchange for any current appropriations dedicated for and
expended for natural disaster mitigation or recovery expenditures.
The annual assessment shall only be used in addition to or to
supplement current appropriations and expenditures for natural
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disaster mitigation or disaster recovery. The prohibition provided
in this subsection shall not apply to federal Community Development
Block Grant (CDBG) funding which a county or municipality is using
for natural disaster mitigation or disaster recovery. In those
cases, the annual assessment shall be used to replace any CDBG
funding which has been dir ected towards natural disaster mitigation,
recovery expenditures or both natural disaster mitigation and
recovery expenditures.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501.8 of Title 19, unless there
is created a duplication in numbering, reads as follows:
In counties determined by the most recent Federal Decennial
Census to be completely or mostly rural, no less than forty percent
(40%) of the annual assessment collected in the county shall be used
for mitigation improvements, disaster recovery or both mitigation
improvements and disaster recovery impacting agricultural property.
Improvements made by rural counties under this section may also
be used to develop and implement communication infrastructure,
including, but not limited to, broadband and fiber to provide
emergency communications, warnings, advisories and other public
safety and health services.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501. 9 of Title 19, unless there
is created a duplication in numbering, reads as follows:
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Every assessment levied under the authority of the Natural
Disaster Mitigation and Recovery Trust Authority shall be a lien
against the tract of land on which it has been levied, until paid,
and the lien shall be coequal with the lien of ad valorem and other
taxes, including special assessments, and prior and superior to all
other liens, and the asses sment shall draw interest and shall be
collected in the same manner as ad valorem taxes.
SECTION 10. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501. 10 of Title 19, unless there
is created a duplication in numbering, reads as follows:
The county assessor shall compute and enter , in respective
columns of the tax rolls , the respective sums in dollars and cents
to be paid on each piece of property therein enumerated. The county
clerk shall certify to the county treasurer in the county where the
district, or any part thereof, is located the amount of assessment
in each fund levied upon each tract. The county treasurer shall
enter the amount of each in separate columns of the tax list of the
county. The assessments shall be collected by the county treasurer
at the same time and in the same manner as all other taxes are
collected in this state. Costs associated with the collection of
the assessments incurred by the county treasurer shall be paid from
the proceeds of the district. If any assessment becomes delinquent,
it shall draw interest as a penalty after delinquency at the rate of
eighteen percent (18%) per annum. All assessments and penalties
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collected or received from the Oklahoma Natural Disaster Mitigation
and Recovery Act shall be paid to the county treasurer.
SECTION 11. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501. 11 of Title 19, unless there
is created a duplication in numbering, reads as follows:
A district may be dissolved by a majority vote of the registered
voters at an election called for that purpose by the governing body
of the county.
SECTION 12. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501.12 of Title 19, unless there
is created a duplication in numbering, reads as follows:
The governing body of the county is authorized to negotiate and
enter into intergovernmental cooperative agreements on behalf of the
district with a federally recognized Indian tribal government within
this state, owner of restricted property, beneficiaries of trust
property and the federal Bureau of Indian Affairs to address
payments in lieu of assessments and other issues of mutual interest.
SECTION 13. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 501.13 of Title 19, unless there
is created a duplication in numbering, reads as follows:
The governing body of the county shall prepare, pre sent and file
quarterly reports on the activities of the Natural Disaster
Mitigation and Recovery District. The reports shall include, but
shall not be limited to , the current receipts, the current
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expenditures, the projects funded, the projects to be fun ded in the
next quarter, and any other information regarding the activities and
actions taken.
SECTION 14. AMENDATORY 68 O.S. 2011, Section 2915, is
amended to read as follows:
Section 2915. A. It shall be the duty of every person subject
to taxation under the Ad Valorem Tax Code, Section 2801 et seq. of
this title, to attend the treasurer's office and pay taxes, and if
any person neglects to attend and pay taxes until after they have
become delinquent, the treasurer shall collect t he same in the
manner provided by law. If any person owing taxes , removes from one
county to another in this state, the county treasurer shall forward
the tax claim to the treasurer of the county to which the person has
removed, and the taxes shall be col lected by the county treasurer of
the latter place as other taxes and returned to the proper county,
less legal charges. The county treasurer may visit, in person or by
deputy, places other than the county seat for the purpose of
receiving taxes. Nothing herein shall be so construed as to prevent
an agent of any person subject to taxation from paying the taxes.
B. The county treasurer of each county shall, within thirty
(30) days after the tax rolls have been completed and delivered to
the office of the county treasurer by the county assessor, mail to
each taxpayer at the taxpayer's last -known address a statement
showing separately the amount of all ad valorem taxes assessed
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against the taxpayer's real and personal property for the current
year and, all delinquent taxes remaining unpaid thereon for previous
years and, if applicable, any assessments levied on properties
within a Natural Disaster Mitigation and Recovery District pursuant
to Section 6 of this act. At the county treasurer' s option, in lieu
of regular mailing, the treasurer may instead send the tax statement
to the taxpayer by electronic mail provided the taxpayer has
submitted a written request to receive such statements by electronic
mail instead of by regular mail. It is expressly provided, however,
that failure of any taxpayer to receive such statement, or failure
of the treasurer to so mail the same, shall not in any way extend
the date by which such taxes or assessments shall be due and payable
nor relieve the taxpayer or property owner of the duty and
responsibility of paying same as provided by law.
C. The statement required by this section shall contain an
explanation of how the ad valorem tax bill is calculated using
language so that a person of common understanding would know what is
intended. The statement shall also contain an explanation of the
manner in which ad valorem taxes are apportioned between the county,
school district or other jurisdiction levying ad valorem taxes and
shall identify the apportionment of the taxes for the current year
on the subject property. The State Auditor and Inspector shall
promulgate rules necessary to implement the provisions of this
subsection.
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D. It shall be the mandatory duty of the county treasurer to
request an appropriation for necessary po stage and expense to defray
the cost of furnishing taxpayers the statement herein provided and
it shall be the mandatory duty of the board of county commissioners
and the county excise board to make such appropriation.
SECTION 15. This act shall become effective July 1, 2021 .
SECTION 16. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON COUNTY AND MUNICIPAL GOVERNMENT,
dated 02/22/2021 - DO PASS.