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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1406 By: Bergstrom
AS INTRODUCED
An Act relating to economic development; creating
investment rebate program until certain date;
providing qualifying criteria; requirin g submission
of application; requiring the Oklahoma Department of
Commerce to approve or disapprove certain claims and
issue payment; limiting source of payments; making
payments contingent upon deposits to certain fund;
providing amount of rebate; a uthorizing conditional
pre-qualification; creating the Water Infrastructure
for Economic Development Fund ; establishing fund
procedures; providing sources of funds; providing for
expenditures from fund; directing transfer of
unencumbered fund upon certain date; making an
appropriation; directing deposit in certain fund;
providing for codification; providing an effective
date; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAH OMA:
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, 20 29, 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 the lates t
Federal Decennial Census.
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B. To be eligible for consideration for an investment rebate
payment awarded under the provisions of this act, the municipality
shall:
1. Submit an application and documentation to the Oklahoma
Department of Commerce, as requ ired by the Department, outlining the
planned water and wastewater infrastructure expenditures of at least
Thirty-five Million Dollars ( $35,000,000.00);
2. Provide documentation that the w ater and wastewater
infrastructure expenditures are to provide services 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 and whose capital investment exceeds One
Hundred Million Dollars ( $100,000,000.00); and
3. Have made expenditures of no less than twenty percent (20%)
of the water and wastewater i nfrastructure expenditure plan outlined
in the application submitted by the municipality.
C. 1. The Oklahoma Department of Commerce shall approve o r
disapprove claims for rebates and shall issue payment f or 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 applications and claims for rebates that would
exceed the balance of available funds in the Water Infrastructure
for Economic Development Fund .
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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 a nd ongoing review of the
eligibility application by the Oklahoma Department of Co mmerce, 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 .
2. The Department is authorized to conditionally pre -qualify
and account for anticipated future investment rebate payments. T he
Oklahoma Department of Commerce shall not pre -qualify investment
rebate payments, encumber funds, pre -encumber funds, or otherwis e
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 Devel opment 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 f or deposit to the fund by law.
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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 in this act. Expenditures
from the fund shall be made u pon 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 deposit in the General
Revenue Fund.
SECTION 3. There is hereby appropriated to the Oklahoma
Department of Commerce for deposit in the Water Infrastructure for
Economic Development Fund , from any monies not otherwise
appropriated from the General Revenue Fund of the State Treasury for
the fiscal year ending June 30, 202 3, the sum of Thirty-five Million
Dollars ($35,000,000.00).
SECTION 4. This act shall become effec tive July 1, 2024.
SECTION 5. 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.
59-2-2271 QD 12/15/2023 3:29:03 PM