ENGR. H. B. NO. 2776 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
ENGROSSED HOUSE
BILL NO. 2776 By: Pfeiffer of the House
and
Montgomery of the Senate
An Act relating to school funding; creating the
Protecting Revenues for Oklahoma Teachers,
Educators and Students (PROTEST) Fund; describing
type and contents of fund; providing purpose of
fund; providing for expenditures; providing for
reimbursement of claims; directing disbursement
of funds; requiring repayment of disbursed funds;
authorizing State Department of Education to
promulgate rules; amending 62 O .S. 2011, Section
193, as amended by Section 457, Chapter 304,
O.S.L. 2012 (62 O.S. Supp. 2020, Section 193),
which relates to the Ad Valorem Reimbursement
Fund; modifying apportionment of funds; 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 3 -111.1 of Title 70, unless
there is created a duplication in numbering, reads as follows:
A. There is hereby created in the State Treasury a revolving
fund for the State Department of Education to be designated the
"Protecting Revenues for Oklahoma Teachers, Educators and Students
(PROTEST) Fund". The fund shall be a continuing fund, not subject
to fiscal year limitations, and shall consist of all monies received
ENGR. H. B. NO. 2776 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
by the State Department of Education from ad valorem funds which are
under protest pursuant to Section 2884 of Title 68 of the Oklahoma
Statutes. All monies accruing to the credit of said fund are hereby
appropriated and may be budgeted and expended by the State
Department of Education for the purpose of providing funding to
school districts which are affected by protested ad valorem taxes.
Expenditures from said fund shall be made upon warrants issued by
the State Treasurer against claims filed as prescribed by law for
approval and payment.
B. The board of education of each school district seeking
reimbursement for lost revenue from the Protecting Revenues for
Oklahoma Teachers, Educators and Students (PROTEST) Fund shall make
claims for reimbursement on forms prescribed by the State Department
of Education. If the claim is approved by the State Department of
Education, funds shall be disbursed to th e school district board of
education. Once the ad valorem funds which are under protest are
settled and disbursed to the school district, the school district
board of education shall reimburse the PROTEST F und.
C. The State Department of Education may pr omulgate rules to
implement the provisions of this act.
SECTION 2. AMENDATORY 62 O.S. 2011, Section 193, as
amended by Section 457, Chapter 304, O.S.L. 2012 (62 O.S. Supp.
2020, Section 193), is amended to read as follows:
ENGR. H. B. NO. 2776 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Section 193. A. There is hereby created in the State Treasury
a revolving fund for the Oklahoma Tax Commission to be designated
the "Ad Valorem Reimbursement Fund". The fund shall be a continuing
fund, not subject to fiscal year limitations. Monies apportioned to
this fund shall be expended as follows:
1. To For the fiscal year ending June 30, 2022, the first Five
Million Dollars ($5, 000,000.00) of revenue derived pursuant to the
provisions of Section 1 of this act shall be apportioned to the
Protecting Revenues for Oklahoma Teachers, Educators and Students
(PROTEST) Fund.
2. The remainder of such revenue for the fiscal year ending
June 30, 2022, and all such revenue for each fiscal year thereafter
shall be expended as follows:
a. to reimburse school districts of this state for loss
of revenue due to ad valorem funds which are under
protest pursuant to Section 2884 of Title 68 of the
Oklahoma Statutes by apportioning an amount to ensure
the PROTEST Fund balance is not less than Five Million
Dollars ($5,000,000.00),
b. to reimburse counties of this state for loss of
revenue due to exemptions of ad valorem taxes for new
or expanded manufacturing or research and development
facilities;,
2. To
ENGR. H. B. NO. 2776 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
c. to reimburse counties of this state for loss of
revenue for school di strict and county purposes due to
exemptions granted pursuant to the provisions of
Section 2890 of Title 68 of the Oklahoma Statutes ;,
and
3. To
d. to reimburse counties of this state for loss of
revenue due to decreased valuation and assessment for
buffer strips pursuant to Section 2817.2 of Title 68
of the Oklahoma Statutes.
Provided that it shall be the duty of the Tax Commission to
assess the valuation of all property for new or expanded
manufacturing or research and development facilities which are
exempt from ad valorem taxes.
Monies apportioned to this fund the Ad Valorem Reimbursement
Fund also may be transferred to other state funds or otherwise
expended as directed by the Legislature by law.
B. The county commissioners of each county seeking
reimbursement for lost revenue from the Ad Valorem Reimbursement
Fund shall make claims for reimbursement on forms prescribed by the
Tax Commission prior to April 30 of each year. Claims for
reimbursement for loss of revenue due to exemptions of ad valorem
taxes for new or expanded manufacturing or research and development
facilities shall be made separately from claims for reimbursement
ENGR. H. B. NO. 2776 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
for loss of revenue for school district and county purposes due to
exemptions granted pursuant to the provisions of Section 2890 of
Title 68 of the Oklahoma Statutes and separately from claims for
reimbursement for loss of revenue for decreased valuation and
assessment of buffer strips. Provided, the assessed valuation of a
school district as stated in the claim for reimburse ment shall be
the same as reported to the State Department of Education on the
Estimate of Need and shall include the total valuation of property
exempt from taxation pursuant to Section 2902 of Title 68 of the
Oklahoma Statutes. The claims shall be eithe r approved or
disapproved in whole or in part by the Tax Commission by June 15 of
each year. A claim for reimbursement for loss of revenue due to an
exemption of ad valorem taxes for a new or expanded manufacturing or
research and development facility sha ll be disapproved if a county
or school district has received any payment in lieu of ad valorem
taxes from such facility, to the extent of the amount of such
reimbursement. If the Tax Commission determines that an exemption
has been erroneously or unlawfu lly granted, it shall notify the
appropriate county assessor who shall immediately value and assess
the property and place it on the rolls for ad valorem taxation.
Disbursements from the fund shall be made on warrants issued by the
State Treasurer against claims filed by the Tax Commission with the
Office of Management and Enterprise Services for payment. Such
disbursements shall be exempt from all agency expenditure ceilings.
ENGR. H. B. NO. 2776 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
The county treasurer shall apportion or disburse such funds for
expenditures in the same manner as other ad valorem tax collections.
C. In the event monies apportioned to the Ad Valorem
Reimbursement Fund are insufficient to pay all claims for
reimbursement made pursuant to subsection B of this section, claims
for reimbursement for loss of revenue due to exemptions of ad
valorem taxes for new or expanded manufacturing or research and
development facilities shall be paid first, and any remaining funds
shall be distributed proportionally among the counties making claims
for reimbursement for loss of revenue for school district and county
purposes due to exemptions granted pursuant to the provisions of
Section 2890 of Title 68 of the Oklahoma Statutes, according to the
amount of the claim made by each county. If any funds remain after
paying all claims for reimbursement for loss of revenue due to
exemptions of ad valorem taxation for new or expanded manufacturing
or research and development facilities and for reimbursement for
loss of revenue for school district and county purposes due to
exemptions granted pursuant to the provisions of Section 2890 of
Title 68 of the Oklahoma Statutes, the remaining funds shall be
distributed proportionally among the counties making claims for
reimbursement for loss of revenue for decreased valuation an d
assessment for buffer strips pursuant to Section 2817.2 of Title 68
of the Oklahoma Statutes.
SECTION 3. This act shall become effective July 1, 2021.
ENGR. H. B. NO. 2776 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
SECTION 4. 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.
Passed the House of Representatives the 10th day of March, 2021.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2021.
Presiding Officer of the Senate