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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
CONFERENCE COMMITTEE
SUBSTITUTE
FOR ENGROSSED
HOUSE BILL NO. 3854 By: Cornwell of the House
and
Bergstrom of the Senate
CONFERENCE 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; limiti ng 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; providing for codification;
and declaring an 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 i nvestment
rebate program for the cost of water and wastewater infrastructure
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investments by municipalities with a population between five
thousand (5,000) and seven thousand (7,000), according to the lat est
Federal Decennial Census.
B. To be eligible for consideration for an in vestment rebate
payment awarded under the provisions of this act, the municipality
shall:
1. Submit an application and docume ntation to the Oklahoma
Department of Commerce, as r equired by the Department, outlining the
planned water and wastewater infrastr ucture expenditures of at least
Thirty Million Dollars ($30,000,000.00);
2. Provide documentation that the water and wastewa ter
infrastructure expenditures are to provide servi ces 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 capita l
investment exceeds One Hundred Million Dollars ($1 00,000,000.00);
3. Provide documentation that the water and wastewater
infrastructure expenditures are to provide services for an
establishment within an incentive or increment district created and
approved 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.
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C. 1. The Oklahoma Department of Commerce shall approve or
disapprove claims for rebates and shall is sue payment for all
approved claims from funds held in the Water Infrastructure for
Economic Development Fund created i n Section 2 of this act.
2. The Department shall dis approve all applications and claims
or any portion of appli cations and claims for re bates that would
exceed the balance of available funds in the Water Infrastructure
for Economic Development Fund.
3. The total amount of applications approved and investme nt
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, t he
investment rebate pay ment 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 Com merce shall not prequalify investment
rebate payments, encumber funds, pre -encumber funds, or otherwise
allocate resources that would res ult in the allocation of investment
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rebate payments in excess of the balance of available funds in the
Water Infrastructure for Economic Development Fund.
E. If the entity which is described by NAICS Manual Industry
Group No. 71311 in paragraph 2 of subsection B of this section does
not begin receiving gross revenue from the sale of tickets within
sixty (60) months, any incentive payments paid by the Oklahoma
Department of Commerce that have been paid pursuant to this section
shall be required to be repaid by the establishment not later than
90 days after a formal written demand for payment is communicated to
the establishment.
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 Tre asury 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 fi scal year limitations, and shall
consist of all monies designated for dep osit 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 D epartment for
the purpose of paying rebates as provided by this act. Expenditures
from the fund shall be made upon war rants issued by the State
Treasurer against claims filed as prescribed by law with the
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Director of the Office of Management and Enterpris e Services for
approval and payment.
B. All unencumbered funds remaining in the Water Infrastructure
for Economic Development Fund upon July 1, 2029, sh all be
transferred to the State Treasurer for dep osit in the General
Revenue Fund.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is here by
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage an d approval.
59-2-11107 AO 05/21/24