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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
HOUSE BILL 4070 By: Wallace and Sims of the
House
and
Hall of the Senate
COMMITTEE SUBSTITUTE
An Act relating to county economic developm ent;
creating the Rural County Economic Development Act of
2024; providing short title; authorizing the creation
of certain county organization; providing process for
formation of certain county organization;
establishing purpose of certain county organiza tion;
providing for appointment of members to certain
county organization; prohibiting compensation for
members; authorizing certain reimbursement for
members; authorizing certain actions; providing
certain powers; authorizing certain delegation of
powers and duties; authorizing certain contracting;
authorizing certain county -option sales tax levy;
limiting levy; requiring submission to voters at
special election; requiring certain fund creation and
accounting; amending 68 O.S. 2021, Section 1370,
which relates to county sales tax; providing for
certain exception; updating statutory language;
providing for noncodificat ion; providing for
codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
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This act shall be known and may be cited as the “Rural County
Economic Development Act of 2024 ”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 899. 1 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. The board of county commissioners of a county with a
population of one hundred thousand (10 0,000) or less according to
the latest Federal Decennial Census may, by adoption of a resolution
by a majority of the members of the board, form a county economic
development organization for the purpose of implementing or
enhancing economic development pr ograms and initiatives, including
but not limited to efforts to encourage economic development that
generates new jobs and increases capital investment in the co unty.
B. Each organization created pursuant to this section shall be
a public body, corporate and politic, with the powers and duties
specified in this act.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 899. 2 of Title 62, unless there
is created a duplication in numbering, reads a s follows:
A. Each county commissioner of a county with a county economic
development organization shall appoint from the county two (2)
persons to serve as members of the county economic development
organization. Each organization member shall serve at the pleasure
of his or her appointing county commissioner.
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B. The members of the organization shall elect a chair, a vice
chair, and a treasurer from among its membership. A majority of the
organization shall constitute a quorum, the affirmative vote of
which shall be necessary for any action taken by the organization.
Each member of the organization shall receive no compensation for
services to the organization but may be reimbursed by the political
subdivision responsible for such appointment for expen ses incurred
for attending meetings of the organization.
C. Each organization member shall have been a qualified elector
in the county from which the member is appointed for a period not
less than three (3) years from the date of appointment. No person
shall be eligible for appointment as a member of an organization who
has been convicted of a felony.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 899. 3 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. A county economic development organization created under the
provisions of this act may:
1. Adopt bylaws for the regulation of its affairs and conduct
of its business;
2. Maintain an office as needed;
3. Sue and be sued, in contract, reverse condemnation, equity,
mandamus, and similar actions in its own name, plea d and be
impleaded. Any action against the organization shall be brought in
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the county in which the principal office of the organization is
located or the county where the cause of action a rose;
4. Acquire, hold, and dispose of real and personal property in
the exercise of its powers and the performance of its duties;
5. Make and enter into all contracts and agreements necessary
or incidental to the performance of its duties and the execution of
its powers;
6. Adopt such rules and regulations necessary to carry out the
powers and duties expressly granted in this section; and
7. Budget and expend funds made available to the organization
in accordance with the provisions of this act.
B. The authority provided in subsection A of this section may
be performed directly by a county economic development organization
or delegated to a third -party entity under the provisions of a
contract entered int o between the county economic development
organization and the third -party entity.
SECTION 5. AMENDATORY 68 O.S. 2021, Section 1370, is
amended to read as follows:
Section 1370. A. In accordance with the provisions of Section
1 1354.36 of this act title, except as provided in Section 6 of this
act, any county of this state may levy a sales tax of not to exceed
two percent (2%) upon the gross proceeds or gross receipts derived
from all sales or services in the county upon which a consumer’s
sales tax is levied by this state. Before a sales tax may be levied
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by the county, the imposition of t he tax shall first be approved by
a majority of the registered voters of the county voting thereon at
a special election called by the board o f county commissioners or by
initiative petition signed by not less than five percent (5%) of the
registered voters of the county who were registered at the time of
the last general election. However, if a majority of the registered
voters of a county vot ing fail to approve such a tax, the board of
county commissioners shall not call another special election for
such purpose for six (6) months. Any sales tax approved by the
registered voters of a county shall be applicable only when the
point of sale is within the territorial limits of such county. Any
sales tax levied or any change in the rate of a sales tax levied
pursuant to the provisions of this section shall become effective on
the first day of the calendar quarter following approval by the
voters of the county unless another effective date, which shall also
be on the first day of a calendar quarter, is specifi ed in the
ordinance or resolution levying the sales tax or changing the rate
of sales tax.
B. The Oklahoma Tax Commission shall give notice t o all vendors
of a rate change at least sixty (60) days prior to the effective
date of the rate change. Provided, for purchases from printed
catalogs wherein the purchaser computed the tax based upon local tax
rates published in the catalog, the rate chan ge shall not be
effective until the first day of a calendar quarter after a minimum
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of one hundred twenty (120) da ys’ notice to vendors. Failure to
give notice as required by this section shall delay the effective
date of the rate change to the first day of the next calendar
quarter.
C. Initiative petitions calling for a special election
concerning county sales tax proposals shall be in accordance with
Sections 2, 3, 3.1, 6, 18 and 24 of Title 34 of the Oklahoma
Statutes. Petitions shall be submitted to the office of the county
clerk for approval as to form prior to circulation. Following
approval, the petitioner s hall have ninety (90) days to secure the
required signatures. After securing the requisite number of
signatures, the petitioner shall submit the petition and signatures
to the county clerk. Following the verification of signatures, the
county clerk shall present the petition to the board of county
commissioners. The special election shall be held within sixty (60)
days of receiving the petiti on. The ballot title presented to the
voters at the special election shall be identical to the ballot as
presented in the initiative petition.
D. Subject to the provisions of Section 1357.10 of this title,
all items that are exempt from the state sales t ax shall be exempt
from any sales tax levied by a county.
E. Any sales tax which may be levied by a county shall be
designated for a particular purpose. Such purposes may include, but
are not limited to, projects owned by the state, any agency or
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instrumentality thereof, the county and/or any political subdivision
located in whole or in part within such county, regi onal
development, economic development, common education, general
operations, capital improvements, county roads, weather modification
or any other purpose deemed, by a majority vote of the county
commissioners or as stated by initiative petition, to be necessary
to promote safety, security and the general well -being of the
people, including any authorized purpose pursuant to the Oklahoma
Community Economic Development Pooled Finance Act. The county shall
identify the purpose of the sales tax when it is pr esented to the
voters pursuant to the provisions of subsection A of this section.
Except as otherwise provided in this section and except as required
by the Oklahoma Community Economic Development Pooled Finance Act,
the proceeds of any sales tax levied by a county shall be deposited
in the general revenue or sales tax revolving fund of the county and
shall be used only for the purpose for whic h such sales tax was
designated. If the proceeds of any sales tax levied by a county
pursuant to this section are pledged for the purpose of retiring
indebtedness incurred for the specific purpose for which the sales
tax is imposed, the sales tax shall no t be repealed until such time
as the indebtedness is retired. However, in no event shall the life
of the tax be extended beyond the duration approved by the voters of
the county.
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F. 1. Notwithstanding any other provisions of law, any county
that has approved a sales tax for the construction, support or
operation of a county hospital may continue to collect such tax if
such hospital is subsequently sold. Such collection shall only
continue if the county remains indebted for the past construction,
support or operation of such hospital. The collection may continue
only until the debt is repaid or for the stated term of the sales
tax, whichever period is shorter.
2. If the construction, support or operation of a hospital is
funded through the levy of a cou nty sales tax pursuant to this
section and such hospital is subsequently sold, the county levying
the tax may dissolve the governing board of such hospital following
the sale. Upon the sale of the hospital and dissolution of any
governing board, the count y is relieved of any future liability for
the operation of such hospital.
G. Proceeds from any sales tax levied that is designated to be
used solely by the sheriff for the operation of the office of
sheriff shall be placed in the special revenue account o f the
sheriff.
H. The life of the tax could be limited or unlimited in
duration. The county shall identify the d uration of the tax when it
is presented to the voters pursuant to the provisions of subsections
A and C of this section. The maximum duration of a levy imposed
pursuant to Section 891.14 of Title 62 of the Oklahoma Statutes
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shall be no longer than allowed pursuant to the Oklahoma Community
Economic Development Pooled Finance Act.
I. Except for the levies imposed pursuant to Section 891.14 of
Title 62 of the Oklahoma Statutes, there are hereby created one or
more county sales tax revolving funds in each co unty which levies a
sales tax under this section if any or all of the proceeds of such
tax are not to be deposited in the general revenue fund of the
county or comply with the provisions of subsection G of this
section. Each such revolving fund shall be designated for a
particular purpose and shall consist of all monies generated by such
sales tax which are designated for such purpose. Monies in such
funds shall only be expended for the purposes specifically
designated as required by this section. A coun ty sales tax
revolving fund shall be a continuing fund not subject to fiscal year
limitations.
J. In the case of a levy submitted for voter a pproval pursuant
to Section 891.14 of Title 62 of the Oklahoma Statutes, taxes levied
by a county shall not become valid until the ordinance or resolution
setting the rate of the levy shall have been approved by a majority
vote of the registered voters of each such county voting on such
question at a special election. Elections conducted pursuant to
questions submitted pursuant to Section 891.14 of Title 62 of the
Oklahoma Statutes shall be conducted on the same date or in a
sequence that provides that the last vote required for approval by
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all participating counties or municipalities occurs not later than
thirty (30) days after the date upon which the first vote occurs.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1370.10 of Title 68, unless
there is created a duplication in numbering, reads as foll ows:
A. In accordance with the provisions of this act, any county of
this state with a population of one hundred thousand (100,000) or
less according to the latest Federal Decennial Census may levy a
sales tax not to exceed seventy -five one-hundredths of one percent
(0.75%) upon the gross proceeds or gross receipts derived from all
sales or services in the county upon which a consumer ’s sales tax is
levied by the state, except as provided in paragraph 8 of Section
1357 of Title 68 of the Oklahoma Statutes, subject to the following
conditions:
1. The proceeds of such sales tax shall be used solely for the
purposes provided for in this act; and
2. Before a sales tax may be levied by the county, the
imposition of the tax shall first be approved by a majority of the
registered voters of the county voting thereon at a special election
called by resolution of the board of county commissioner s.
B. The board of county commissioners shall create a limited -
purpose fund and deposit therein any revenue generated by a sales
tax levied pursuant to the provisions of subsection A of this
section. The fund shall be placed in an insured or collateralized
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interest-bearing account and the interest which accrues to the fund
shall be retained in the fund. Monies in the limited -purpose fund
shall be expended only as accumulated and only for the purposes
specifically authorized by this act.
SECTION 7. This act shall become effective November 1, 2024.
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