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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 3854 By: Cornwell
COMMITTEE SUBSTITUTE
An Act relating to revenue and taxation; creat ing
investment rebate program until certain date;
providing qualifying criteria; requiring submission
of application; requiring the Oklahoma Department of
Commerce to approve or disa pprove certain claims and
issue payment; limiting source of payments; making
payments contingent upon deposi ts to certain fund;
providing amount of rebate; authori zing conditional
prequalification; creating the Water Infrastructure
for Economic Development Fund; establishing fund
procedures; providing sources of funds; directing
transfer of unencumbered f und upon certain date;
making an appropriation; and providing for
codification.
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 Sect ion 3648.1 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created until July 1, 2029, an investme nt
rebate program for the cost of water and wastewater infrastructure
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investments by municipalities wit h a population between five
thousand (5,000) and seven thousan d (7,000), according to the latest
Federal Decennial Census.
B. To be eligible for consideration for an investment rebate
payment awarded under the provisions of this act, the municipality
shall:
1. Submit an application and documentation to the Oklahoma
Department of Commerce, as required by the Department, outlining the
planned water and was tewater infrastructure expenditures of at least
Thirty-five Million Dollars ($35,000,000.00) ;
2. Provide documentation that the water and wastewater
infrastructure expenditures are to provide services for an
establishment, to be placed in service after th e effective date of
this act, that is defined or classified in the NAICS Manual under
Industry Group No. 721211 and whose capital investment exceeds One
Hundred Million Dollars ($ 100,000,000.00); and
3. Have made expenditures of no less than twenty percent (20%)
of the water and wastewater infrastructure expenditure plan outlined
in the application submitt ed by the municipality.
C. 1. The Oklahoma Departme nt of Commerce shall approve or
disapprove claims for rebates and shall issue payment for all
approved claims from funds held in the Water Infrastructure for
Economic Development Fun d created in Section 2 of this act.
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2. The Department shall disapprove a ll applications and claims
or any portion of applications and claims for rebates that would
exceed the balance of available fu nds in the Water Infrastructure
for Economic Development Fund.
3. The total amount of applications approved and investment
rebate payments awarded under the provisions of th is act shall not
exceed the total amount of monies design ated by law for deposit to
the Water Infrastructure for Economic Develop ment Fund.
D. 1. Subject to the approval and ongoing review of the
eligibility application by the Oklahoma Department of Commerce, the
investment rebate payment authorized by th is act shall be equal to
the cost of the water and wastewater infrastructure expenditures in
the year of expenditure.
2. The Department is authorized to conditionally prequalify and
account for anticipated future investment rebate payments. The
Oklahoma Department of Commerce shall not pre qualify investment
rebate payments, encumber funds, pre-encumber funds, or otherwise
allocate resources that would result in the a llocation of investment
rebate payments in excess of the balance of av ailable funds in the
Water Infrastructure for Economic Development Fund.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3648.2 of Title 68, unless there
is created a duplication in numbering, reads as follows:
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A. There is hereby created in the State Treasur y a fund for the
Oklahoma Department of Commerce to be desi gnated the "Water
Infrastructure for Economic Development Fund ". The fund shall be a
continuing fund, not subject to fiscal ye ar limitations, and shall
consist of all monies designated for deposit to the fund by law.
All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Department for
the purpose of paying rebates as provided by this act. Expenditures
from the fund shall be made upon warrants i ssued by the State
Treasurer against claims filed as pre scribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
B. All unencumbered funds remaining in t he Water Infrastructure
for Economic Develop ment Fund upon July 1, 2029 , shall be
transferred to the Sta te Treasurer for deposit in the General
Revenue Fund.
59-2-10653 JM 02/29/24