Req. No. 3228 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 2nd Session of the 59th Legislature (2024) SENATE BILL 1781 By: Boren AS INTRODUCED An Act relating to water and water rights; creating the Municipal Waterworks Repair Grant Program; providing for certain priority scoring ; defining term; providing for rescission of funds; providing for certain notification ; requiring certain enti ties to provide certain assistance ; creating the Municipal Waterworks Repair Grant Program Revolving Fund; stating purpose of fund; establishing f und source; providing for allocation of certain funds; amending 68 O.S. 2021, Section 1353, as amended by Section 2, Chapter 290, O.S.L. 2023 (68 O.S. Supp. 2023, Section 1353), which relates to the apportionment of sales tax revenue; providing apportionme nt to the Municipal Waterworks Repair Grant Program Revolving Fund; providing for codification; providing an effective date; 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 37-129 of Title 11, unless there is created a duplication in numbering, reads as follows: A. 1. The Oklahoma Water Resources Board shall establish and administer a Municipal Wa terworks Repair Grant Program. The Program shall include development of competitive grants to be awarded to municipalities seeking to maintain or repair existing w aterworks. Req. No. 3228 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 The Board shall promulgate rules to effectuate the pr ovisions of this section and award criteria for the Grant Program. 2. Grant applicants with a demonstrated lack of funds to effectuate needed maintenance or repair of existing waterworks shall be awarded a higher score in the grant awards process established by the Board. B. All grant awards authorized pursuant to the provisions of this section shall include a clawback provision. For purposes of this subsection, a “clawback provision” shall mean a condition precedent to participate in the Progra m whereby a grant recipient formally agrees to reimburse the Program all or part of a grant award upon the failure of the recipient to fulfill contract terms included in the grant award. C. A municipal governing body of a municipality shall notify the Oklahoma Water Resources Board, as well as the board of county commissioners of the county in which such municipality is located, if the municipal waterworks of the mun icipality are in need of maintenance or repair. Such notification shall be done either via mail or electronically. The Oklahoma Water Resources Board or the board of county commissioners shall provide assistance to the municipality in developing the application for the Program. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statute s as Section 37-130 of Title 11, unless there is created a duplication in numbering, reads as follows: Req. No. 3228 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 There is hereby created in the State Treasury a revolving fund for the Oklahoma Water R esources Board to be designated the “Municipal Waterworks Repair Grant Program Revolving Fund”. The fund shall be a continuing fund, no t subject to fiscal year limitations, and shall consist of all mo nies apportioned pursuant to subsection D of Section 1353 of Title 68 of the Oklahoma Statutes. All monies accruing to the credit of the fund are hereby appropriated and may be budgeted and expended by the Board for the purposes provided in 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 S ervices for approval and payment. SECTION 3. AMENDATORY 68 O.S. 2021, Section 1353, as last amended by Section 2, Chapter 290, O.S.L. 2023 (68 O .S. Supp. 2023, Section 1353), is amended to read as follows: Section 1353. A. It is hereby declared to be the purpose of the Oklahoma Sales Tax Code to provide funds for the financing of the program provided for by the Oklahoma Social Security Act and to provide revenues for the support of the functions of the state government of Oklahoma, and for this purpose it is hereby expressly provided that, revenues derived pursuant to the provisions of the Oklahoma Sales Tax Code, subject to the apportionment requirements for the Oklahoma Tax Commission and Office of Management and Req. No. 3228 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Enterprise Services Joint Computer Enhancement Fund provided by Section 265 of this title, shall be apportioned as follows: 1. Except as provided in subsection subsections C and D of this section, the following amounts shall be paid to the State Treasurer to be placed to the credit of the General Revenue Fund to be paid out pursuant to direct appropriation by the Legislature: Fiscal Year Amount FY 2003 and FY 2004 86.04% FY 2005 85.83% FY 2006 85.54% FY 2007 85.04% FY 2008 through FY 2022 83.61% FY 2023 through FY 2027 83.36% FY 2028 and each fiscal year thereafter 83.61%; 2. The following amounts shall be paid to the State Treasurer to be placed to the credit of the Education Reform Revolving Fund of the State Department of Education: a. for FY 2003, FY 2004 and FY 2005, ten and forty-two one-hundredths percent (10.42%), b. for FY 2006 through FY 2020, ten and forty-six one- hundredths percent (10.46%), c. for FY 2021: Req. No. 3228 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (1) for the month beginning July 1, 2020, through the month ending August 31, 2020, ten and forty-six one-hundredths percent (10.46%), and (2) for the month beginning September 1, 2020, through the month ending June 30, 2021, eleven and ninety-six one-hundredths percent (11.96%), d. for FY 2022 and each fiscal year thereafter, ten and forty-six one-hundredths percent (10.46%); 3. The following amounts shall be paid to the State Treasurer to be placed to the credit of the Teachers’ Retirement System Dedicated Revenue Revolving Fund: Fiscal Year Amount FY 2003 and FY 2004 3.54% FY 2005 3.75% FY 2006 4.0% FY 2007 4.5% FY 2008 through FY 2020 5.0% FY 2021: a. for the month beginning July 1, 2020, through the month ending August 31, 2020 5.0% b. for the month beginning September 1, 2020, through Req. No. 3228 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the month ending June 30, 2021 3.5% FY 2022 5.0% FY 2023 through FY 2027 5.25% FY 2028 and each fiscal year thereafter 5.0%; 4. a. except as otherwise provided in subparagraph b of this paragraph, for the fiscal year beginning July 1, 2022, and for each fiscal year thereafter, eighty-seven one- hundredths percent (0.87%) shall be paid to the State Treasurer to be further apportioned as follows: (1) twenty-four percent (24%) shall be placed to the credit of the Oklahoma Tourism Promotion Revolving Fund, but in no event shall such apportionment exceed Five Million Dollars ($5,000,000.00) in any fiscal year, (2) forty-four percent (44%) shall be placed to the credit of the Oklahoma Tourism Capital Improvement Revolving Fund, but in no event shall such apportionment exceed Nine Million Dollars ($9,000,000.00) in any fiscal year, and (3) thirty-two percent (32%) shall be placed to th e credit of the Oklahoma Route 66 Commission Revolving Fund, but in no event shall such apportionment exceed Six Million Six Hundred Req. No. 3228 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Thousand Dollars ($6,600,000.00) in any fiscal year, and b. any amounts which exceed the limitations of subparagraph a of this paragraph shall be placed to the credit of the General Revenue Fund; and 5. For the fiscal year beginning July 1, 2015, and for each fiscal year thereafter, six one-hundredths percent (0.06%) shall be placed to the credit of the Oklahoma Historical Society Capital Improvement and Operations Revolving Fund, but in no event shall such apportionment exceed the total amount apportioned pursuant to this paragraph for the fiscal year ending on June 30, 2015. Any amounts which exceed the limitations of this paragraph shall be placed to the credit of the General Revenue Fund. B. Provided, for the fiscal year beginning July 1, 2007, and every fiscal year thereafter, an amount of revenue shall be apportioned to each municipality or county which levies a sales tax subject to the provisions of Section 1357.10 of this title and subsection F of Section 2701 of this title equal to the amount of sales tax revenue of such municipality or county exempted by the provisions of Section 1357.10 of this title and subsection F of Section 2701 of this title. The Oklahoma Tax Commission shall promulgate and adopt rules necessary to implement the provisions of this subsection. Req. No. 3228 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. From the monies that would otherwise be apportioned to the General Revenue Fund pursuant to subsection A of this section, there shall be apportioned the following amounts: 1. For the month ending August 31, 2019: a. Nine Million Six Hundred Thousand Dollars ($9,600,000.00) to the credit of the State Highway Construction and Maintenance Fund created in Section 1501 of Title 69 of the Oklahoma Statutes, and b. Two Million Dollars ($2,000,000.00) to the credit of the Oklahoma Railroad Maintenance Revolving Fund created in Section 309 of Title 66 of the Oklahoma Statutes; 2. For the month ending September 30, 2019: a. Twenty Million Dollars ($20,000,000.00) to the credit of the State Highway Construction and Maintenance Fund created in Section 1501 of Title 69 of the Oklahoma Statutes, and b. Two Million Dollars ($2,000,000.00) to the credit of the Oklahoma Railroad Maintenance Revolving Fund created in Section 309 of Title 66 of the Oklahoma Statutes; 3. For the month ending October 31, 2019: a. Twenty Million Dollars ($20,000,000.00) to the credit of the State Highway Construction and Maintenance Fund Req. No. 3228 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 created in Section 1501 of Title 69 of the Oklahoma Statutes, and b. Two Million Dollars ($2,000,000.00) to the credit of the Oklahoma Railroad Maintenance Revolving Fund created in Section 309 of Title 66 of the Oklahoma Statutes; 4. For the month ending November 30, 2019: a. Twenty Million Dollars ($20,000,000.00) to the credit of the State Highway Construction and Maintenance Fund created in Section 1501 of Title 69 of the Oklahoma Statutes, and b. Two Million Dollars ($2,000,000.00) to the credit of the Oklahoma Railroad Maintenance Revolving Fund created in Section 309 of Title 66 of the Oklahoma Statutes; and 5. For the month ending December 31, 2019: a. Twenty Million Dollars ($20,000,000.00) to the credit of the State Highway Construction and Maintenance Fund created in Section 1501 of Title 69 of the Oklahoma Statutes, and b. Two Million Dollars ($2,000,000.00) to the credit of the Oklahoma Railroad Maintenance Revolving Fund created in Section 309 of Title 66 of the Oklahoma Statutes. Req. No. 3228 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 D. For the fiscal year ending June 30, 2025, and for subsequent fiscal years, before any other apportionment otherwise required by this section is made to the General Revenue Fund, there shall be apportioned to the Municipal Waterworks Repair Grant Program Revolving Fund created pursuant to Section 2 of this act the amount of Two Hundred Fifty Million Dollars ($250,000,000.00). SECTION 4. This act shall become effective July 1, 2024. SECTION 5. It being immediately necessary for the p reservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof thi s act shall take effect and be in full force from and after its passage and approval . 59-2-3228 MSBB 1/17/2024 2:23:50 PM