Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB71 Compare Versions

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4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 58th Legislature (2021)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 71 By: Bergstrom of the Senate
7	37
8	38		and
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10	40		McDugle of the House
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15	45		An Act relating to the Oklahoma Local Development and
16	46		Enterprise Zone Incentive Leverage Act; amending 62
17	47		O.S. 2011, Sections 842, as last amended by Section
18	48		1, Chapter 69, O.S.L. 2020 and 847 (62 O.S. Supp.
19	49		2020, Section 842), which relate to program
20	50		administration; modifying required content of
21	51		specified rules promulgated by Oklahoma Department of
22	52		Commerce; deleting obsolete reference; requiring
23	53		certain information be included in specified Oklahoma
24	54		Tax Commission report; and providing an effective
25	55		date.
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31		-	SUBJECT: Oklahoma Local Development and Enterprise Zone Incentive
32		-	Leverage Act
33		-
34	61		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
35		-
36	62		SECTION 1. AMENDATORY 62 O.S. 2011, Section 842, as last
37	63		amended by Section 1, Chapter 69, O.S.L. 2020 (62 O.S. Supp. 2020,
38	64		Section 842), is amended to read as follows:
39		-
40	65		Section 842. A. An enterprise which locates its facility
41	66		within an enterprise zone or which expands its existing facility
42	67		after the designation of an enterprise zone as authorized by law and
43	68		which is located in an incentive district as authorized pursuant to
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44	96		the provisions of the Local Development Act shall be eli gible for
45	97		the state local enterprise matching payment authorized pursuant to
46	98		subsection A of Section 844 of this title.
47		-
48		-	ENR. S. B. NO. 71 Page 2
49		-
50	99		B. 1. A local governmental entity which approves a project
51	100		plan pursuant to the provisions of the Local Development Act within
52	101		an enterprise zone or in support of a major tourism destination
53	102		project which the local governmental entity determines is likely to
54	103		significantly benefit contiguous or nearby enterprise zone census
55	104		tracts shall be eligible for the state local government matching
56	105		payment authorized pursuant to subsection D of Section 844 of this
57	106		title; provided, no state local government matching payment shall be
58	107		made for project costs in relation to:
59		-
60	108		a. any gambling establishment, or
61		-
62	109		b. any development within a project plan that p rovides
63	110		for more than fifty percent (50%) of the net leasable
64	111		space of such development to be used for retail
65	112		purposes except for such portions of a development
66	113		which includes grocery or specialty food store
67	114		enterprises defined under NAICS Manual Industry Group
68	115		No. 4451 or 4452 that provide healthy nutrition
69	116		options including fresh fruits, vegetables, whole
70	117		grains, seeds, nuts and healthy protein and that
71	118		improve access within one -half (1/2) mile of any low
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72	146		income and low access geographies identified by th e
73	147		United States Department of Agriculture.
74		-
75	148		State local government matching payments shall not be used to
76	149		supplant local revenue currently being expended within the increment
77	150		district boundaries.
78		-
79	151		2. In order to be eligible for state local government matchi ng
80	152		payments for approving a project within an enterprise zone, a local
81	153		governmental entity shall provide to the Oklahoma Department of
82	154		Commerce as part of the application provided for in subsection J of
83	155		this section:
84		-
85	156		a. an estimate of incremental revenues likely to be
86	157		derived from the project, and
87		-
88	158		b. certification that all projects described within the
89	159		related project plan will generate, in the aggregate,
90	160		a minimum of either One Million Dollars
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92		-	ENR. S. B. NO. 71 Page 3
93	161		($1,000,000.00) in payroll, exclusive of payroll for
94	162		construction, or Five Million Dollars ($5,000,000.00)
95	163		in investment.
96		-
97	164		3. In order to be eligible for state local government matching
98	165		payments in support of a major tourism destination project, a local
99	166		governmental entity shall provide to the Oklahoma Department of
100	167		Commerce as part of the application provided for in subsection J of
101	168		this section:
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103	196		a. an estimate of incremental revenues new to the state
104	197		likely to be derived from the project,
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106	198		b. certification that the major tourism destination meets
107	199		the applicable criteri a described in paragraph 12 of
108	200		Section 841 of this title, and
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110	201		c. an agreement to provide payment to the Oklahoma
111	202		Department of Commerce to defray the costs of the
112	203		study required by paragraph 4 of this subsection.
113		-
114	204		4. To determine if a project qualifies as a major tourism
115	205		destination project pursuant to subparagraph b of paragraph 12 of
116	206		Section 841 of this title and to assist in other required
117	207		determinations, the Oklahoma Department of Commerce shall cause a
118	208		market and feasibility study to be conducted by an independent
119	209		consultant with experience in the conduct of such studies. Upon
120	210		review of the feasibility report, the Oklahoma Department of
121	211		Commerce shall make its finding as to the reasonable probability
122	212		that the proposed project is a major tourism destina tion project as
123	213		provided in subparagraph b of paragraph 12 of Section 841 of this
124	214		title.
125		-
126	215		C. For purposes of the Oklahoma Local Development and
127	216		Enterprise Zone Incentive Leverage Act, an enterprise engaged in a
128	217		retail activity, where otherwise prohibited b y the Oklahoma
129	218		Enterprise Zone Act for purposes of the benefits and incentives
130	219		extended pursuant to the Oklahoma Enterprise Zone Act, shall be
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131	247		considered an eligible enterprise for purposes of the state local
132	248		enterprise matching payment authorized by the O klahoma Local
133	249		Development and Enterprise Zone Incentive Leverage Act.
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136		-	ENR. S. B. NO. 71 Page 4
137	250		D. The maximum amount of state local enterprise matching
138	251		payments for an enterprise per fiscal year shall not exceed Two
139	252		Hundred Thousand Dollars ($200,000.00).
140		-
141	253		E. Except as provided i n subsection H of this section, for
142	254		purposes of the Oklahoma Local Development and Enterprise Zone
143	255		Incentive Leverage Act, the maximum amount of aggregate investment
144	256		in all qualifying facilities located in any single county which can
145	257		qualify for a state lo cal enterprise matching payment pursuant to
146	258		subsection A of Section 844 of this title shall be computed for each
147	259		county of the state by multiplying Two Hundred Dollars ($200.00)
148	260		times the population of the county according to the most recent
149	261		estimate provided by the United States Bureau of the Census prior to
150	262		the date an application is made.
151		-
152	263		F. The computation required by subsection E of this section
153	264		shall be the maximum amount of aggregated investment qualifying for
154	265		the purposes of all enterprises for the duration of the Oklahoma
155	266		Local Development and Enterprise Zone Incentive Leverage Act.
156		-
157	267		G. The aggregate investment limit for all facilities located
158	268		within a county which may qualify for the state local enterprise
159	269		matching payments pursuant to subsection A of Section 844 of this
160	270		title shall:
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162	298		1. Not be less than Twenty Million Dollars ($20,000,000.00) for
163	299		counties with a population of less than one hundred thousand
164	300		(100,000) persons; and
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166	301		2. Not be greater than Forty Million Dollars ($40,000,000.00)
167	302		for all other counties of the state.
168		-
169	303		H. The aggregate limit for all state local government matching
170	304		payments made to any public entity on behalf of any local
171	305		governmental entity within a single county pursuant to subsection D
172	306		of Section 844 of this title for th e duration of the Oklahoma Local
173	307		Development and Enterprise Zone Incentive Leverage Act shall be an
174	308		amount equal to the net benefit rate multiplied by the taxable gross
175	309		sales derived from the project over the period of apportionment of
176	310		local sales taxes, a s certified by the Secretary of Commerce.
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180	311		I. The payments authorized by Section 844 of this title shall
181	312		be available for business and governmental entities qualifying
182	313		pursuant to the Local Development Act for investments made within an
183	314		incentive district or for improvements made within an increment
184	315		district prior to December 31, 2007, or for which an incentive
185	316		district or an increment district has been created prior to December
186	317		31, 2028, if the investments or improvements are begun not later
187	318		than December 31, 2029.
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189	319		J. The Oklahoma Department of Commerce shall promulgate rules
190	320		to establish for administration of the Oklahoma Local Development
191	321		and Enterprise Zone Incentive Leverage Act. Such rules shall:
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193	349		1. Include a procedure for an enterprise or local gov ernmental
194	350		entity to make application for state local enterprise and state
195	351		local government matching payments pursuant to this section . Such
196	352		rules shall reflect;
197		-
198	353		2. Reflect the intent that the Oklahoma Local Development and
199	354		Enterprise Zone Incentive Lever age Act be fiscally neutral to the
200	355		state; and
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202	356		3. Establish reporting requirements for successful applicants
203	357		which allow data collection and analysis by the Department on
204	358		employment, capital investment, changes in assessed value of a
205	359		project and other impa cts resulting from payments and reporting of
206	360		such data by the Department to the Oklahoma Tax Commission for the
207	361		purposes of subsection B of Section 847 of this title .
208		-
209	362		SECTION 2. AMENDATORY 62 O.S. 2011, Section 847, is
210	363		amended to read as follows:
211		-
212	364		Section 847. A. The Oklahoma Tax Commission shall maintain a
213	365		record of state local enterprise matching payments and state local
214	366		government matching payments made pursuant to Section 844 of this
215	367		title and a record of income tax credits cl aimed pursuant to Section
216	368		2357.81 of Title 68 of the Oklahoma Statutes . Local sales taxes
217	369		apportioned under the applicable project plan shall be reported,
218	370		collected, remitted, and disbursed in the same manner as other local
219	371		sales taxes under Title 68 of t he Oklahoma Statutes.
220	372
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223	399		B. The Tax Commission shall prepare a report separately
224	400		identifying the amounts described in subsection A of this section
225	401		and data collection and analysis prepared by the Oklahoma Department
226	402		of Commerce pursuant to subsection J of Se ction 842 of this title .
227	403		The Commission shall submit the report prior to April 1 each year to
228	404		the Governor, the Speaker of the House of Representatives and the
229	405		President Pro Tempore of the Senate.
230		-
231	406		SECTION 3. This act shall become effectiv e November 1, 2021.
232	407
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234		-	ENR. S. B. NO. 71 Page 7
235		-	Passed the Senate the 2nd day of March, 2021.
236		-
237		-
238		-
239		-	Presiding Officer of the Senate
240		-
241		-
242		-	Passed the House of Representatives the 14th day of April, 2021.
243		-
244		-
245		-
246		-	Presiding Officer of the House
247		-	of Representatives
248		-
249		-	OFFICE OF THE GOVERNOR
250		-	Received by the Office of the Governor this _______ _____________
251		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
252		-	By: _______________________________ __
253		-	Approved by the Governor of the State of Oklahoma this _____ ____
254		-	day of ___________________, 20_______, at _______ o'clock _______ M.
255		-
256		-	_________________________________
257		-	Governor of the State of Oklahoma
258		-
259		-
260		-	OFFICE OF THE SECRETARY OF STATE
261		-	Received by the Office of the Secretary of State this _______ ___
262		-	day of __________________, 20 _______, at _______ o'clock _______ M.
263		-	By: _______________________________ __
	408	+	COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE, dated
	409	+	04/07/2021 - DO PASS.