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SENATE FLOOR VERSION
February 4, 2021
SENATE BILL NO. 903 By: Leewright
An Act relating to Oklahoma Tourism Develo pment Act;
amending Section 6, Chapter 19 6, O.S.L. 2017, as
amended by Section 4, Chapter 443, O.S.L. 2019 (68
O.S. Supp. 2020, Section 2396), which relates to
tourism project agreements; modifying the term of
certain agreement; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 6, Chapter 196, O.S.L.
2017, as amended by Section 4, Chapter 443, O.S.L. 2019 (68 O.S.
Supp. 2020, Section 2396), is amended to re ad as follows:
Section 2396. A. Upon granting final approval, the Executive
Director of the Oklahoma Tourism and Recreati on Department may enter
into an agreement with an approved company with respect to its
tourism attraction project. The terms and pro visions of each
agreement shall includ e, but shall not be limited to:
1. The amount of approved costs, which shall be dete rmined by
negotiations between the Executive Director and the approved
company;
2. A date certain by which the approved company shal l have
completed the tourism attractio n project or an individual component
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or phase of the project if the tourism attractio n project is an
Entertainment District. Within three (3) months of the completion
date of the whole or an individual component or ph ase of the
project, the approved compa ny shall document its actual costs of the
project through a certification of the cost s by an independent
certified public accountant acceptable to the Executive Director;
and
3. The following provisions:
a. the term of the agreement shall be ten (10) years
fifteen (15) years from the later of:
(1) the date of the final approval of the tou rism
attraction project, or
(2) the completion date specified in the agreement,
if the completion date is within three (3) years
of the date of the final approval of the t ourism
attraction project. However, the term of the
agreement may be extended for up to two (2)
additional years by the Executive Director, with
the advice and consent of the Oklahoma Tax
Commission, if the Executive Director determines
that the failure to complete the tourism
attraction project within three (3) years
resulted from:
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(a) unanticipated and unavoidable delay in the
construction of the tourism attraction
project,
(b) an original completion d ate for the tourism
attraction project, as originally planned,
which will be more than three (3) years from
the date construction began, o r
(c) a change in business structure resulting
from a merger or acquisition,
b. in any tax year during which an agreem ent is in
effect, if the amount of sales tax to be re mitted by
the approved company or an Entertainment District
Tenant Party, if applicab le, exceeds the sales tax
credit available to the approved company or
Entertainment District Tenant Party, if applicab le,
then the approved company or Entertainment Distri ct
Tenant Party, if applicable, shall pay the excess to
this state as sales tax,
c. within forty-five (45) days after the end of each
calendar year the approved company shall supply the
Executive Director with such reports and
certifications as the Executi ve Director may request
demonstrating to the satisfaction of the Executive
Director that the approved company is in compliance
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with the provisions of the Oklahoma Tourism
Development Act, and
d. the approved company or an Entertainment District
Tenant Party, if applicable, shall not receive an
inducement with respect to any calendar year i f:
(1) with respect to any tourism attraction project
that is not an Entertainment District in any
calendar year following the fourth year of the
agreement, the tourism at traction project fails
to attract at least fifteen percent (15%) of its
visitors from among persons who are not residents
of this state, or
(2) in any calendar year following the first year of
the project or the tourism attraction project is
not operating and open to the public on a regular
and consistent basis, which for a tourism
attraction project that is an Entertainment
District shall mean that a substantial portion of
the Entertainment District is n ot operating and
open to the public on a regular and consistent
basis.
B. The agreement shall not be transferable or assignable by the
approved company without the written consent of the Executive
Director but, with respect to a tourism attraction project that is
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an Entertainment District, the approved comp any can elect to pass -
through all or a portion of the sales tax credit to one or more
Entertainment District Tenant Parties in accordance with Section
2397 of this title.
C. If the approved company util izes or receives inducements
which are subsequently d isallowed then the approved company will be
liable for the payment to the Tax Commiss ion of an amount equal to
(i) all taxes resulting from the disallowance of the inducements
plus applicable penalties a nd interest, whether owed by the approved
company or an Entertainment District Tenant Party to which the
credits have been passed -through in accordance with Section 2397 of
this title, and/or (ii) all incentive payments previously received
by the approved company, plus applicable penalties and interest.
Only the approved company originally allowed a sales tax credit
shall be held liable to make such payments and not any Entertainment
District Tenant Party to whom the credit has been passed -through in
accordance with Section 2397 of this title.
D. The Executive Director shall provide a copy of each
agreement entered into with an approved com pany to the Tax
Commission.
E. For a tourism attraction project that is an Entertainment
District and anticipated to have multiple components or phases, the
Executive Director may enter into more than one agreement with
different approved companies for th e different components or phases
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of the Entertainment District and such agreements may be entered
into at different ti mes as though the different components or phases
of the Entertainment District are their own separate project. In
such case, the Executiv e Director shall not be required to obtain a
separate consultant’s report (referred to in subsection C of Section
2394 of this title) for each individual component or phas e of the
Entertainment District, but only one consultant ’s report for the
entire Entertainment District.
SECTION 2. This act shall become effective November 1, 2021.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM
February 4, 2021 - DO PASS