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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 2466 By: Lowe (Dick)
AS INTRODUCED
An Act relating to public finance; amending 62 O.S.
2011, Sections 851, 852 and 865, which relate to the
Local Development Act; modi fying purpose and
guidelines; requiring certain written agreements
under specified circumstance; requiring adoption of
certain agreement by governing body under specified
circumstance; and providing an effective date.
BE IT ENACTED BY THE PEOP LE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2011, Section 851, is
amended to read as follows:
Section 851. The Local Development Act shall serve to implement
and execute Section 6C of Article X of the Oklahoma Cons titution as
approved by the voters of the State of Oklahoma on November 6, 1990,
by:
1. Providing for the granting of incentives and exemptions from
taxation within certain areas, placing restrictions thereon, and
limiting the time period for the exemptio ns, as authorized by
subsection A thereof;
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2. Providing for apportionment of an increment of local taxes
and fees, placing restrictions thereon, and limiting the time period
for the apportionment, as authorized by subsection B thereof; and
3. Providing for the planning, financing, and carrying out of
development and redevelopment within certain areas, as authorized by
subsection C thereof.
Nothing in the Local Development Act shall be construed in a
manner contrary to or inconsistent with the provisions o f said
constitutional provision.
The Legislature hereby finds that historic preservation,
reinvestment or enterprise areas as defined under this act are may
be unproductive, undeveloped, underdeveloped or blighted areas
pursuant to subsection C of Section 6 of Article X of the Oklahoma
Constitution.
SECTION 2. AMENDATORY 62 O.S. 2011, Section 852, is
amended to read as follows:
Section 852. It is the intent of the Legislature that the
provisions of this act be used in accordance w ith the following
guidelines:
1. That the tools of this act be used in those cases where
investment, development and economic growth is difficult, but is
possible if the provisions of this act are available;
2. That the tools of this act not be used in a reas where
investment, development and economic growth is occurring at a rate
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consistent with, or greater than, the governing body's jurisdiction
as a whole or would have occurred anyway and that the governing body
take care to exclude areas that do not me et this criteria;
3. That the tools of this act be used to supplement and not
supplant or replace normal public functions and services;
4. That the tools of this act work in conjunction with existing
programs and efforts such as the Oklahoma Main Street Program,
Oklahoma Enterprise Zone Act, historic preservation and other
locally implemented economic development efforts;
5. That any proposed districts be delineated with particular
emphasis not to have boundaries that dissect a similar area or
create unfair competitive advantage;
6. That the governing body recognizes the need for residential
and neighborhood treatment, capital improvements to neighborhood
public schools, as well as commercial/industrial development;
7. That where possible partial credit s or credits that do not
utilize the full time frame allowed be pursued;
8. That maximum effort be made to allow full public knowledge
and participation in the local use of this act;
9. That conservation, preservation and rehabilitation be
emphasized while demolition, clearance and relocation be minimized
where possible; and
10. That the governing bodies develop and apply clear
standards, criteria and threshold limits that are applicable to all
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similar property and areas and that the governing bodies ena ct
protection against nearby relocations to utilize incentives.
SECTION 3. AMENDATORY 62 O.S. 2011, Section 865, is
amended to read as follows:
Section 865. A. In accordance with the requirements of Section
6C of Article X of th e Oklahoma Constitution, the tax incentives or
exemptions granted pursuant to the provisions of Section 860 of this
title shall only be allowed for that portion of the tax under
jurisdiction of another local taxing entity by written agreement
between said other local taxing entity and the governing body of the
city, town or county.
B. Tax increments as described under Section 850 et seq. of
this title shall only be allowed for that portion of the tax under
jurisdiction of another local taxing entity by wri tten agreement
between the other local taxing entity and the governing body of the
city, town or county.
C. In order for the tax incentives or, exemptions or increments
to be granted for that portion of the tax under the jurisdiction of
each taxing entity within the district, the governing body of the
taxing entity must adopt the agreement provided for in subsection A
or B of this section upon a majority vote of those members eligible
to vote as determined by Section 857 of this title. Action on the
agreement by these governing bodies must occur within sixty (60)
days after the governing body of the city, town or county submits
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the proposed agreement to the governing bodies of such taxing
entities.
SECTION 4. This act shall become effectiv e November 1, 2021.
58-1-6610 AMM 01/06/21