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SENATE FLOOR VERSION
April 18, 2024
COMMITTEE SUBSTITUTE
FOR ENGROSSED
HOUSE BILL NO. 3854 By: Cornwell of the House
and
Bergstrom of the Senate
[ revenue and taxation – investment rebate program -
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 numbering, 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
thousand (5,000) and seven thousand (7,000), according to t he 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:
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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 expenditures are to provide se rvices for an
establishment, to be placed in se rvice 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 Hundred Million Dollars ($100,000,000.00);
3. Provide documentation th at 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, Section 850 et seq. of Title
62 of the Oklahoma Statutes; and
4. Have made expenditures of no less than twenty percent (20%)
of the water and wastewater infrastructure expenditure plan outlined
in the application submitted by the municipality.
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 shall disapprove all applications and claims
or any portion of appli cations and claims for rebates that would
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exceed the balance of available funds in the Water Infrastructure
for Economic Development Fund.
3. The total amount of applications approved and investment
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 the
eligibility application 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 municipality .
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 f unds, pre-encumber funds, or otherwise
allocate resources that would result in the allocation of investment
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 codifi ed
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
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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 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 issued by the State
Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise 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 Treasurer for dep osit 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
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
April 18, 2024 - DO PASS AS AMENDED BY CS