OK
Oklahoma Senate Bill SB903

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB903 Compare Versions

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3-An Act
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29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
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31+STATE OF OKLAHOMA
32+
33+1st Session of the 58th Legislature (2021)
34+
35+ENGROSSED SENATE
536 BILL NO. 903 By: Leewright of the Senate
637
738 and
839
9- Echols and Manger of the
10-House
40+ Echols of the House
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1545 An Act relating to Oklahoma Tourism Development Act;
16-amending 68 O.S. 2021, Section 2396, which relates to
46+amending Section 6, Chapter 196, O.S.L. 2017, as
47+amended by Section 4, Chapter 443, O.S.L. 2019 (68
48+O.S. Supp. 2020, Section 2396), which relates to
1749 tourism project agreements; modifying the term of
18-certain agreement; and increasing term of agreement
19-for certain businesses on certain date.
50+certain agreement; increasing term of agreement for
51+certain businesses on certain date; and providing an
52+effective date.
2053
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2255
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24-SUBJECT: Oklahoma Tourism Development Act agreements
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2657 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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28-SECTION 1. AMENDATORY 68 O.S. 2021, Section 2396, is
29-amended to read as follows:
30-
58+SECTION 1. AMENDATORY Section 6, Chapter 196, O.S.L.
59+2017, as amended by Section 4, Chapter 443, O.S.L. 2019 (68 O.S.
60+Supp. 2020, Section 2396), is amended to read as follows:
3161 Section 2396. A. Upon granting final approval, the Executive
3262 Director of the Oklahoma Tourism and Recreation Department may enter
3363 into an agreement with an approved company with respect to it s
3464 tourism attraction project. The terms and provisions of each
3565 agreement shall include, but shall not be limited to:
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3793 1. The amount of approved costs, which shall be determined by
3894 negotiations between the Executive Director and the approved
3995 company;
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4196 2. A date certain by which the approved company shall have
4297 completed the tourism attraction project or an individual component
4398 or phase of the project if the tourism attraction project is an
4499 Entertainment District. Within three (3) months of the completion
45100 date of the whole or an individual component or phase of the
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48101 project, the approved company shall document its actual costs of the
49102 project through a certification of the costs by an independent
50103 certified public accountant acceptable to the Executive Director;
51104 and
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53105 3. The following provisions:
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55106 a. the term of the agreement shall be ten (10) years
56107 fifteen (15) years from the later of:
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58108 (1) the date of the final approval of the tourism
59109 attraction project, or
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61110 (2) the completion date specified in the agreement,
62111 if the completion date is within three (3) years
63112 of the date of the final approval of the tourism
64113 attraction project. However, the term of the
65114 agreement may be extended for up to two (2)
66115 additional years by the Executive Director, with
67116 the advice and consent o f the Oklahoma Tax
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68144 Commission, if the Executive Director determines
69145 that the failure to complete the tourism
70146 attraction project within three (3) years
71147 resulted from:
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73148 (a) unanticipated and unavoidable delay in the
74149 construction of the tourism attraction
75150 project,
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77151 (b) an original completion date for the tourism
78152 attraction project, as originally planned,
79153 which will be more than three (3) years from
80154 the date construction began, or
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82155 (c) a change in business structure resulting
83156 from a merger or acquisition .
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85157 Provided, however, the businesses that have existing
86158 agreements with the Oklahoma Tourism and Recreation
87159 Department under the Tourism Development Act on the
88160 effective date of this act shall be allowed to increase the
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91161 total number of years on their agreements to fi fteen (15)
92162 years upon approval of the Executive Director ,
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94163 b. in any tax year during which an agreement is in
95164 effect, if the amount of sales tax to be remitted by
96165 the approved company or an Entertainment District
97166 Tenant Party, if applicable, exceeds the sal es tax
98167 credit available to the approved company or
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99195 Entertainment District Tenant Party, if applicable,
100196 then the approved company or Entertainment District
101197 Tenant Party, if applicable, shall pay the excess to
102198 this state as sales tax,
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104199 c. within forty-five (45) days after the end of each
105200 calendar year the approved company shall supply the
106201 Executive Director with such reports and
107202 certifications as the Executive Director may request
108203 demonstrating to the satisfaction of the Executive
109204 Director that the approved co mpany is in compliance
110205 with the provisions of the Oklahoma Tourism
111206 Development Act, and
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113207 d. the approved company or an Entertainment District
114208 Tenant Party, if applicable, shall not receive an
115209 inducement with respect to any calendar year if:
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117210 (1) with respect to any tourism attraction project
118211 that is not an Entertainment District in any
119212 calendar year following the fourth year of the
120213 agreement, the tourism attraction project fails
121214 to attract at least fifteen percent (15%) of its
122215 visitors from among persons who are not residents
123216 of this state, or
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125217 (2) in any calendar year following the first year of
126218 the project or the tourism attraction project is
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127246 not operating and open to the public on a regular
128247 and consistent basis, which for a tourism
129248 attraction project that is an Entertainment
130249 District shall mean that a substantial portion of
131250 the Entertainment District is not operating and
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134251 open to the public on a regular and consistent
135252 basis.
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137253 B. The agreement shall not be transferable or assignable by the
138254 approved company with out the written consent of the Executive
139255 Director but, with respect to a tourism attraction project that is
140256 an Entertainment District, the approved company can elect to pass -
141257 through all or a portion of the sales tax credit to one or more
142258 Entertainment District Tenant Parties in accordance with Section
143259 2397 of this title.
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145260 C. If the approved company utilizes or receives inducements
146261 which are subsequently disallowed then the approved company will be
147262 liable for the payment to the Tax Commission of an amount eq ual to
148263 (i) all taxes resulting from the disallowance of the inducements
149264 plus applicable penalties and interest, whether owed by the approved
150265 company or an Entertainment District Tenant Party to which the
151266 credits have been passed -through in accordance with Section 2397 of
152267 this title, and/or (ii) all incentive payments previously received
153268 by the approved company, plus applicable penalties and interest.
154269 Only the approved company originally allowed a sales tax credit
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155297 shall be held liable to make such payments and not any Entertainment
156298 District Tenant Party to whom the credit has been passed -through in
157299 accordance with Section 2397 of this title.
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159300 D. The Executive Director shall provide a copy of each
160301 agreement entered into with an approved company to the Tax
161302 Commission.
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163303 E. For a tourism attraction project that is an Entertainment
164304 District and anticipated to have multiple components or phases, the
165305 Executive Director may enter into more than one agreement with
166306 different approved companies for the different compone nts or phases
167307 of the Entertainment District and such agreements may be entered
168308 into at different times as though the different components or phases
169309 of the Entertainment District are their own separate project. In
170310 such case, the Executive Director shall no t be required to obtain a
171311 separate consultant’s report (referred to in subsection C of Section
172312 2394 of this title) for each individual component or phase of the
173313 Entertainment District, but only one consultant ’s report for the
174314 entire Entertainment District.
315+SECTION 2. This act shall become effective November 1, 2021.
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177-ENR. S. B. NO. 903 Page 5
178-Passed the Senate the 9th day of March, 2021.
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182- Presiding Officer of the Senate
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185-Passed the House of Representatives the 7th day of April, 2022.
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189- Presiding Officer of the House
190- of Representatives
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192-OFFICE OF THE GOVERNOR
193-Received by the Office of the Governor this _______ _____________
194-day of _________________ __, 20_______, at _______ o'clock _______ M.
195-By: _______________________________ __
196-Approved by the Governor of the State of Oklahoma this _____ ____
197-day of _________________ __, 20_______, at _______ o'clock _______ M.
198-
199- _________________________________
200- Governor of the State of Oklahoma
201-
202-
203-OFFICE OF THE SECRETARY OF STATE
204-Received by the Office of the Secretary of State this _______ ___
205-day of __________________, 20 _______, at _______ o'clock _______ M.
206-By: _______________________________ __
317+COMMITTEE REPORT BY: COMMITTEE ON TOURISM, dated 04/01/2021 - DO
318+PASS.