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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 317 By: Pemberton
AS INTRODUCED
An Act relating to development incentives; amending
62 O.S. 2021, Section 842, which relates to the
Oklahoma Local Development and Ent erprise Zone
Incentive Leverage Act ; adding certain reporting
requirements pursuant to the promulgation of rules by
the Oklahoma Department of Commerce ; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 842, is
amended to read as follows:
Section 842. A. An enterprise which locates its facility
within an enterprise zone or which expands its existing facility
after the designation of an e nterprise zone as authorized by law and
which is located in an incenti ve district as authorized pursuant to
the provisions of the Local Development Act shall be eligible for
the state local enterprise matc hing payment authorized pursuant to
subsection A of Section 844 of this title.
B. 1. A local governmental entity which approves a project
plan pursuant to the provisions of the Local Development Act within
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an enterprise zone or i n support of a major tour ism destination
project which the local governmenta l entity determines is likely to
significantly benefit contiguous or n earby enterprise zone census
tracts shall be eligible for the state local government matching
payment authorized pursuant to subsection D of Section 844 of this
title; provided, no state local government matching payment shall be
made for project costs in relation to:
a. any gambling establishment, or
b. any development within a project plan that provides
for more than fifty percent (50%) of the net leasable
space of such development to b e used for retail
purposes except for such portions of a development
which includes grocery or specialty food store
enterprises defined under NAICS Manual Industry Group
No. 4451 or 4452 that provide healt hy nutrition
options including fresh fruits, vegeta bles, whole
grains, seeds, nuts and healthy protein and that
improve access within one-half (1/2) mile of any low
income and low access geographies identified by the
United States Department of Agriculture .
State local government matching payments shall no t be used to
supplant local revenue currently being expended within th e increment
district boundaries.
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2. In order to be eligible for state local government matching
payments for approving a project withi n an enterprise zone, a local
governmental entity s hall provide to the Oklahoma Department of
Commerce as part of the app lication provided for in subsection J of
this section:
a. an estimate of incremental revenues likely to be
derived from the project, an d
b. certification that all projects described with in the
related project plan will generate, in the aggregate,
a minimum of either One Million Dollars
($1,000,000.00) in payroll, exclusive of payroll for
construction, or Five Mill ion Dollars ($5,000,000.0 0)
in investment.
3. In order to be eligible for s tate local government matching
payments in support of a major tourism destination project, a local
governmental entity shall provide to the Oklahoma Department of
Commerce as part of the application provid ed for in subsection J of
this section:
a. an estimate of incremental revenues new to the state
likely to be derived from the project,
b. certification that the major tourism destination meets
the applicable criteria described in p aragraph 12 of
Section 841 of this title, and
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c. an agreement to provide pay ment to the Oklahoma
Department of Commerce to defray the costs of the
study required by paragraph 4 of this subsection.
4. To determine if a project qualifies as a major tourism
destination project pursu ant to subparagraph b of paragraph 12 of
Section 841 of this title and to assist in other required
determinations, the Ok lahoma Department of Commerce shall cause a
market and feasibility study to be conducted by an independent
consultant with experience i n the conduct of such studies. Upon
review of the feasibility report, the Oklahoma Department of
Commerce shall make its finding as to the reasonable probability
that the proposed project is a major tourism destination project as
provided in subparagraph b of paragraph 12 of Section 841 of this
title.
C. For purposes of the Oklahoma Local Development and
Enterprise Zone Incentive Leverage Act, an enterprise engaged in a
retail activity, where otherwise prohibited by the Oklahoma
Enterprise Zone Act for pu rposes of the benefits and incentives
extended pursuant to the Oklahoma Enterprise Zone Act, shall be
considered an eligible enterprise for purposes of the state local
enterprise matching payment authorized by the Oklahoma Local
Development and Enterprise Zone Incentive Leverage Act.
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D. The maximum amount of state local enterprise matching
payments for an enterprise per fis cal year shall not exceed Two
Hundred Thousand Dollars ($200,000.00).
E. Except as provided in subsection H o f this section, for
purposes of the Oklahoma Local Development and Enterpris e Zone
Incentive Leverage Act, the maximum amount of aggregate investm ent
in all qualifying facilities located in any single county which can
qualify for a state local enterprise m atching payment pursuant to
subsection A of Section 844 of this title shall be computed for each
county of the state by multiplying Two Hundred Do llars ($200.00)
times the population of the county according to the most recent
estimate provided by the Unite d States Bureau of the Ce nsus prior to
the date an application is made.
F. The computation required by subsection E of this section
shall be the maximum amount of aggregated investment qualifying for
the purposes of all enterprises for the duration of the Oklahoma
Local Development and Enterprise Zone Incentive Leverage Act.
G. The aggregate investment limit for all facilities located
within a county which may qualify for the state local enterprise
matching payments pursuant to subsection A of Section 844 of this
title shall:
1. Not be less than Twenty Million Dollars ($20,000,0 00.00) for
counties with a population of less than one hundred thousan d
(100,000) persons; and
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2. Not be greater than Forty Million Dollars ($40,000,000.00)
for all other counties of the state.
H. The aggregate limit for all state local government matchi ng
payments made to any public entity on behalf of any local
governmental entity within a single county pursuant to subsection D
of Section 844 of this title for the duration of th e Oklahoma Local
Development and Enterprise Zone Incentive Leverage Act shal l be an
amount equal to the net benefit rate multiplied by the taxable gross
sales derived from the project over the period of apportionment of
local sales taxes, as certified by t he Secretary of Commerce.
I. The payments authorized by Section 844 of this title shall
be available for business and governmental entities quali fying
pursuant to the Local Development Act for investments made within an
incentive district or for improveme nts made within an increm ent
district prior to December 31, 2007, or for whi ch an incentive
district or an increment district has been created pri or to December
31, 2028, if the investments or improvements are begun not later
than December 31, 2029.
J. The Oklahoma Department of Commerce shall promulgate rules
for administration of the Oklahoma Local Development and Enterprise
Zone Incentive Levera ge Act. Such rules shall:
1. Include a procedure for an enterprise or local governmental
entity to make application for state local e nterprise and state
local government matching payme nts pursuant to this section;
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2. Reflect the intent that the Oklahoma Local Development and
Enterprise Zone Incentive Leverage Act be fiscally neutral to the
state; and
3. Establish reporting requirement s for successful applicants
which allow data collec tion and analysis by the Department on
employment, capital investment, changes in assessed value of a
project and other impacts resulting from payments and reporting of
such data by the Department to the O klahoma Tax Commission for the
purposes of subsecti on B of Section 847 of this title ; and
4. Establish reporting requirements for local governmental
entities that approve a project plan pursuant to the provisions of
the Local Development Act within an ent erprise zone or in support of
a major tourism desti nation project which shall include:
a. the name of the increment or incentive district,
b. whether the increment o r incentive district was
created by a municipality or county gover nment,
c. a map with a defined boundary of the increment o r
incentive district,
d. the length of the project and its date of expiration,
e. the base assessed value, as certified by the county
assessor, if required pursuant to Section 862 of this
title,
f. the total annual value of the increment, as defined in
Section 853 of this title, and
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g. a list of the taxing jurisdic tions affected and their
respective total millage levies.
The report developed pursuant to the requirements of this parag raph
shall be provided to each taxing jurisdiction affected by the
increment or incentive district.
SECTION 2. This act shall become effective November 1, 2023.
59-1-892 QD 1/12/2023 6:53:06 PM