Oklahoma 2024 Regular Session

Oklahoma House Bill HB4070 Compare Versions

Version 1 (Old)

Version 2 (New)

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29		-	SENATE FLOOR VERSION
30		-	April 11, 2024
	28	+	STATE OF OKLAHOMA
31	29
	30	+	2nd Session of the 59th Legislature (2024)
32	31
33	32		COMMITTEE SUBSTITUTE
34	33		FOR ENGROSSED
35		-	HOUSE BILL ~~NO.~~ 4070 By: Wallace and Sims of the
	34	+	HOUSE BILL 4070 By: Wallace and Sims of the
36	35		House
37	36
38	37		and
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40		-	~~Garvin~~ of the Senate
	39	+	Hall of the Senate
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	44	+	COMMITTEE SUBSTITUTE
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45	46		An Act relating to county economic developm ent;
46	47		creating the Rural County Economic Development Act of
47	48		2024; providing short title; authorizing the creation
48	49		of certain county organization; providing process for
49	50		formation of certain county organization;
50	51		establishing purpose of certain county organiza tion;
51	52		providing for appointment of members to certain
52	53		county organization; prohibiting compensation for
53	54		members; authorizing certain reimbursement for
54	55		members; authorizing certain actions; providing
55	56		certain powers; authorizing certain delegation of
56	57		powers and duties; authorizing certain contracting;
57	58		authorizing certain county -option sales tax levy;
58	59		limiting levy; requiring submission to voters at
59	60		special election; requiring certain fund creation and
60	61		accounting; amending 68 O.S. 2021, Section 1370,
61	62		which relates to county sales tax; providing for
62	63		certain exception; updating statutory language;
63	64		providing for noncodificat ion; providing for
64	65		codification; and providing an effective date.
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69	70		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
70	71		SECTION 1. NEW LAW A new section of law not to be
71	72		codified in the Oklahoma Statutes reads as follows:
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99	99		This act shall be known and may be cited as the “Rural County
100	100		Economic Development Act of 2024 ”.
101	101		SECTION 2. NEW LAW A new section of law to be codified
102	102		in the Oklahoma Statutes as Section 899. 1 of Title 62, unless there
103	103		is created a duplication in numbering, reads as follows:
104	104		A. The board of county commissioners of a county with a
105	105		population of one hundred thousand (10 0,000) or less according to
106	106		the latest Federal Decennial Census may, by adoption of a resolution
107	107		by a majority of the members of the board, form a county economic
108	108		development organization for the purpose of implementing or
109	109		enhancing economic development pr ograms and initiatives, including
110	110		but not limited to efforts to encourage economic development that
111	111		generates new jobs and increases capital investment in the co unty.
112	112		B. Each organization created pursuant to this section shall be
113	113		a public body, corporate and politic, with the powers and duties
114	114		specified in this act.
115	115		SECTION 3. NEW LAW A new section of law to be codified
116	116		in the Oklahoma Statutes as Section 899. 2 of Title 62, unless there
117	117		is created a duplication in numbering, reads a s follows:
118	118		A. Each county commissioner of a county with a county economic
119	119		development organization shall appoint from the county two (2)
120	120		persons to serve as members of the county economic development
121	121		organization. Each organization member shall serve at the pleasure
122	122		of his or her appointing county commissioner.
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150	149		B. The members of the organization shall elect a chair, a vice
151	150		chair, and a treasurer from among its membership. A majority of the
152	151		organization shall constitute a quorum, the affirmative vote of
153	152		which shall be necessary for any action taken by the organization.
154	153		Each member of the organization shall receive no compensation for
155	154		services to the organization but may be reimbursed by the political
156	155		subdivision responsible for such appointment for expen ses incurred
157	156		for attending meetings of the organization.
158	157		C. Each organization member shall have been a qualified elector
159	158		in the county from which the member is appointed for a period not
160	159		less than three (3) years from the date of appointment. No person
161	160		shall be eligible for appointment as a member of an organization who
162	161		has been convicted of a felony.
163	162		SECTION 4. NEW LAW A new section of law to be codified
164	163		in the Oklahoma Statutes as Section 899. 3 of Title 62, unless there
165	164		is created a duplication in numbering, reads as follows:
166	165		A. A county economic development organization created under the
167	166		provisions of this act may:
168	167		1. Adopt bylaws for the regulation of its affairs and conduct
169	168		of its business;
170	169		2. Maintain an office as needed;
171	170		3. Sue and be sued, in contract, reverse condemnation, equity,
172	171		mandamus, and similar actions in its own name, plea d and be
173	172		impleaded. Any action against the organization shall be brought in
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201	199		the county in which the principal office of the organization is
202	200		located or the county where the cause of action a rose;
203	201		4. Acquire, hold, and dispose of real and personal property in
204	202		the exercise of its powers and the performance of its duties;
205	203		5. Make and enter into all contracts and agreements necessary
206	204		or incidental to the performance of its duties and the execution of
207	205		its powers;
208	206		6. Adopt such rules and regulations necessary to carry out the
209	207		powers and duties expressly granted in this section; and
210	208		7. Budget and expend funds made available to the organization
211	209		in accordance with the provisions of this act.
212	210		B. The authority provided in subsection A of this section may
213	211		be performed directly by a county economic development organization
214	212		or delegated to a third -party entity under the provisions of a
215	213		contract entered int o between the county economic development
216	214		organization and the third -party entity.
217	215		SECTION 5. AMENDATORY 68 O.S. 2021, Section 1370, is
218	216		amended to read as follows:
219	217		Section 1370. A. In accordance with the provisions of Section
220	218		1 1354.36 of this act title, except as provided in Section 6 of this
221	219		act, any county of this state may levy a sales tax of not to exceed
222	220		two percent (2%) upon the gross proceeds or gross receipts derived
223	221		from all sales or services in the county upon which a consumer’s
224	222		sales tax is levied by this state. Before a sales tax may be levied
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252	249		by the county, the imposition of t he tax shall first be approved by
253	250		a majority of the registered voters of the county voting thereon at
254	251		a special election called by the board o f county commissioners or by
255	252		initiative petition signed by not less than five percent (5%) of the
256	253		registered voters of the county who were registered at the time of
257	254		the last general election. However, if a majority of the registered
258	255		voters of a county vot ing fail to approve such a tax, the board of
259	256		county commissioners shall not call another special election for
260	257		such purpose for six (6) months. Any sales tax approved by the
261	258		registered voters of a county shall be applicable only when the
262	259		point of sale is within the territorial limits of such county. Any
263	260		sales tax levied or any change in the rate of a sales tax levied
264	261		pursuant to the provisions of this section shall become effective on
265	262		the first day of the calendar quarter following approval by the
266	263		voters of the county unless another effective date, which shall also
267	264		be on the first day of a calendar quarter, is specifi ed in the
268	265		ordinance or resolution levying the sales tax or changing the rate
269	266		of sales tax.
270	267		B. The Oklahoma Tax Commission shall give notice t o all vendors
271	268		of a rate change at least sixty (60) days prior to the effective
272	269		date of the rate change. Provided, for purchases from printed
273	270		catalogs wherein the purchaser computed the tax based upon local tax
274	271		rates published in the catalog, the rate chan ge shall not be
275	272		effective until the first day of a calendar quarter after a minimum
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303	299		of one hundred twenty (120) da ys’ notice to vendors. Failure to
304	300		give notice as required by this section shall delay the effective
305	301		date of the rate change to the first day of the next calendar
306	302		quarter.
307	303		C. Initiative petitions calling for a special election
308	304		concerning county sales tax proposals shall be in accordance with
309	305		Sections 2, 3, 3.1, 6, 18 and 24 of Title 34 of the Oklahoma
310	306		Statutes. Petitions shall be submitted to the office of the county
311	307		clerk for approval as to form prior to circulation. Following
312	308		approval, the petitioner s hall have ninety (90) days to secure the
313	309		required signatures. After securing the requisite number of
314	310		signatures, the petitioner shall submit the petition and signatures
315	311		to the county clerk. Following the verification of signatures, the
316	312		county clerk shall present the petition to the board of county
317	313		commissioners. The special election shall be held within sixty (60)
318	314		days of receiving the petiti on. The ballot title presented to the
319	315		voters at the special election shall be identical to the ballot as
320	316		presented in the initiative petition.
321	317		D. Subject to the provisions of Section 1357.10 of this title,
322	318		all items that are exempt from the state sales t ax shall be exempt
323	319		from any sales tax levied by a county.
324	320		E. Any sales tax which may be levied by a county shall be
325	321		designated for a particular purpose. Such purposes may include, but
326	322		are not limited to, projects owned by the state, any agency or
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354	349		instrumentality thereof, the county and/or any political subdivision
355	350		located in whole or in part within such county, regi onal
356	351		development, economic development, common education, general
357	352		operations, capital improvements, county roads, weather modification
358	353		or any other purpose deemed, by a majority vote of the county
359	354		commissioners or as stated by initiative petition, to be necessary
360	355		to promote safety, security and the general well -being of the
361	356		people, including any authorized purpose pursuant to the Oklahoma
362	357		Community Economic Development Pooled Finance Act. The county shall
363	358		identify the purpose of the sales tax when it is pr esented to the
364	359		voters pursuant to the provisions of subsection A of this section.
365	360		Except as otherwise provided in this section and except as required
366	361		by the Oklahoma Community Economic Development Pooled Finance Act,
367	362		the proceeds of any sales tax levied by a county shall be deposited
368	363		in the general revenue or sales tax revolving fund of the county and
369	364		shall be used only for the purpose for whic h such sales tax was
370	365		designated. If the proceeds of any sales tax levied by a county
371	366		pursuant to this section are pledged for the purpose of retiring
372	367		indebtedness incurred for the specific purpose for which the sales
373	368		tax is imposed, the sales tax shall no t be repealed until such time
374	369		as the indebtedness is retired. However, in no event shall the life
375	370		of the tax be extended beyond the duration approved by the voters of
376	371		the county.
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404	398		F. 1. Notwithstanding any other provisions of law, any county
405	399		that has approved a sales tax for the construction, support or
406	400		operation of a county hospital may continue to collect such tax if
407	401		such hospital is subsequently sold. Such collection shall only
408	402		continue if the county remains indebted for the past construction,
409	403		support or operation of such hospital. The collection may continue
410	404		only until the debt is repaid or for the stated term of the sales
411	405		tax, whichever period is shorter.
412	406		2. If the construction, support or operation of a hospital is
413	407		funded through the levy of a cou nty sales tax pursuant to this
414	408		section and such hospital is subsequently sold, the county levying
415	409		the tax may dissolve the governing board of such hospital following
416	410		the sale. Upon the sale of the hospital and dissolution of any
417	411		governing board, the count y is relieved of any future liability for
418	412		the operation of such hospital.
419	413		G. Proceeds from any sales tax levied that is designated to be
420	414		used solely by the sheriff for the operation of the office of
421	415		sheriff shall be placed in the special revenue account o f the
422	416		sheriff.
423	417		H. The life of the tax could be limited or unlimited in
424	418		duration. The county shall identify the d uration of the tax when it
425	419		is presented to the voters pursuant to the provisions of subsections
426	420		A and C of this section. The maximum duration of a levy imposed
427	421		pursuant to Section 891.14 of Title 62 of the Oklahoma Statutes
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455	448		shall be no longer than allowed pursuant to the Oklahoma Community
456	449		Economic Development Pooled Finance Act.
457	450		I. Except for the levies imposed pursuant to Section 891.14 of
458	451		Title 62 of the Oklahoma Statutes, there are hereby created one or
459	452		more county sales tax revolving funds in each co unty which levies a
460	453		sales tax under this section if any or all of the proceeds of such
461	454		tax are not to be deposited in the general revenue fund of the
462	455		county or comply with the provisions of subsection G of this
463	456		section. Each such revolving fund shall be designated for a
464	457		particular purpose and shall consist of all monies generated by such
465	458		sales tax which are designated for such purpose. Monies in such
466	459		funds shall only be expended for the purposes specifically
467	460		designated as required by this section. A coun ty sales tax
468	461		revolving fund shall be a continuing fund not subject to fiscal year
469	462		limitations.
470	463		J. In the case of a levy submitted for voter a pproval pursuant
471	464		to Section 891.14 of Title 62 of the Oklahoma Statutes, taxes levied
472	465		by a county shall not become valid until the ordinance or resolution
473	466		setting the rate of the levy shall have been approved by a majority
474	467		vote of the registered voters of each such county voting on such
475	468		question at a special election. Elections conducted pursuant to
476	469		questions submitted pursuant to Section 891.14 of Title 62 of the
477	470		Oklahoma Statutes shall be conducted on the same date or in a
478	471		sequence that provides that the last vote required for approval by
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506	498		all participating counties or municipalities occurs not later than
507	499		thirty (30) days after the date upon which the first vote occurs.
508	500		SECTION 6. NEW LAW A new section of law to be codified
509	501		in the Oklahoma Statutes as Section 1370.10 of Title 68, unless
510	502		there is created a duplication in numbering, reads as foll ows:
511	503		A. In accordance with the provisions of this act, any county of
512	504		this state with a population of one hundred thousand (100,000) or
513	505		less according to the latest Federal Decennial Census may levy a
514	506		sales tax not to exceed seventy -five one-hundredths of one percent
515	507		(0.75%) upon the gross proceeds or gross receipts derived from all
516	508		sales or services in the county upon which a consumer ’s sales tax is
517	509		levied by the state, except as provided in paragraph 8 of Section
518	510		1357 of Title 68 of the Oklahoma Statutes, subject to the following
519	511		conditions:
520	512		1. The proceeds of such sales tax shall be used solely for the
521	513		purposes provided for in this act; and
522	514		2. Before a sales tax may be levied by the county, the
523	515		imposition of the tax shall first be approved by a majority of the
524	516		registered voters of the county voting thereon at a special election
525	517		called by resolution of the board of county commissioner s.
526	518		B. The board of county commissioners shall create a limited -
527	519		purpose fund and deposit therein any revenue generated by a sales
528	520		tax levied pursuant to the provisions of subsection A of this
529	521		section. The fund shall be placed in an insured or collateralized
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557	548		interest-bearing account and the interest which accrues to the fund
558	549		shall be retained in the fund. Monies in the limited -purpose fund
559	550		shall be expended only as accumulated and only for the purposes
560	551		specifically authorized by this act.
561	552		SECTION 7. This act shall become effective November 1, 2024.
562		-	~~COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT~~
563		-	~~April~~ 11, 2024 ~~- DO PASS AS AMENDED BY CS~~
	553	+
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