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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
HOUSE BILL 3854 By: Cornwell of the House
and
Bergstrom of the Senate
COMMITTEE SUBSTITUTE
[ revenue and taxation – investment rebate pr ogram -
qualifying criteria – application – Oklahoma
Department of Commerce – claims and payments – amount
of rebate – conditional prequalification – Water
Infrastructure for Economic Development Fund –
appropriation – codification – effective date –
emergency ]
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 Section 3648.1 of Title 68, unless there
is created a duplication in num bering, reads as follows:
A. There is hereby created until July 1, 2029, an investment
rebate program for the cost of water and wastewater infrastructure
investments by municipalities with a population between five
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thousand (5,000) and seven thousand (7,0 00), according to the l atest
Federal Decennial Census.
B. To be eligible for consideration for an investment reba te
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 wastewater infrastructure expenditures of at least
Thirty Million Dollars ($30,000,000.00) ;
2. Provide documentation that the water and wastewater
infrastructure expenditure s are to provide servic es for an
establishment, to be placed in service after the effective date of
this act, that is defined or classified in the NAICS Manual under
Industry Group No. 721211 or 71311 and whose combined capital
investment exceeds One Hundr ed Million Dollars ($100,000,000.00);
3. Provide documentation that the water and wastewater
infrastructure expenditures are to provide services for an
establishment within an incentive or increment district formed
pursuant to the Local Development Act, S ection 850 et seq. of T itle
62 of the Oklahoma Statutes; and
4. Have made expenditures of no less than twenty per cent (20%)
of the water and wastewater infrastructure expenditure plan outlined
in the application submitted by the municipality.
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C. 1. The Oklahoma Department 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 Fund created in Section 2 of this act.
2. The Department sh all disapprove all appl ications and claims
or any portion of applications and claims for rebates that would
exceed the balance of available funds in the Water Infrastructure
for Economic Development Fund.
3. The total amount of applications approved and i nvestment
rebate payments awarded under the provisions of this act shall not
exceed the total amount of monies designated by law for deposit to
the Water Infrastructure for Economic Development Fund.
D. 1. Subject to the approval and ongoing review of th e
eligibility applicati on by the Oklahoma Department of Commerce, the
investment rebate payment authorized by this act shall be equal to
the cost of the water and wastewater infrastructure expenditures in
the year of expenditure , not to exceed Thirty-five Million Dollars
($35,000,000.00) for any municip ality.
2. The Department is authorized to conditionally prequalify and
account for anticipated future investment rebate payments. The
Oklahoma Department of Commerce shall not prequalify investment
rebate payments, encumber funds, pre -encumber funds, or otherwise
allocate resources that would result in the allocation o f investment
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rebate payments in excess of the balance of available 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:
A. There is hereby created in the State Treasury a fund for the
Oklahoma Department of Commerce to be designated the “Water
Infrastructure for Economic Development Fund ”. The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies designated for deposit to the fund by law.
All monies accruing to the credit of the fun d 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 issued by t he State
Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Ent erprise Services for
approval and payment.
B. All unencumbered funds remaining in the Water Infrastructure
for Economic Development Fund upon July 1, 2029, shall be
transferred to the State Trea surer for deposit in the General
Revenue Fund.
SECTION 3. This act shall become effective July 1, 2024.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall ta ke effect and
be in full force from and after its passage and approval.
59-2-3749 QD 4/18/2024 5:26:19 PM