Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1863 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SENATE FLOOR VERSION - SB1863 SFLR Page 1
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29		-	SENATE FLOOR VERSION
30		-	February 26, 2024
31		-	AS AMENDED
	53	+	STATE OF OKLAHOMA
32	54
33		-	SENATE BILL NO. 1863 By: Stewart
	55	+	2nd Session of the 59th Legislature (2024)
	56	+
	57	+	SENATE BILL 1863 By: Stewart
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39		-	[ incentives - Local Development Act - districts -
40		-	effective date ]
	63	+
	64	+
	65	+	AS INTRODUCED
	66	+
	67	+	An Act relating to incentives; amending 62 O.S. 2021,
	68	+	Section 856, which relates to the Local Development
	69	+	Act; expanding areas in which a county is authorized
	70	+	to create certain districts; and providing an
	71	+	effective date.
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45	79		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
46	80		SECTION 1. AMENDATORY 6 2 O.S. 2021, Section 856, is
47	81		amended to read as fo llows:
48	82		Section 856. A. The governing body shall designate and adopt
49	83		the proposed boundaries of any district and the proposed boundaries
50	84		of any project area. Except as otherwise provided in this
51	85		subsection, any district s created by a city or town shall b e
52	86		confined to that territory within the corporate limits of such city
53	87		or town and any districts created by a county shall be c onfined to
54	88		that territory within the unincorporated areas of the county. Any
55		-	city, town, or county may by agreement jointly create a dis trict
56		-	with another entity.
57		-	B. Upon the adoption and approval of the project plan, the
58		-	governing body shall adopt an or dinance or resolution, whichever is
59		-	applicable, which:
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61		-	SENATE FLOOR VERSION - SB1863 SFLR Page 2
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	140	+	city, town, or county may by agreement jointly creat e a district
	141	+	with another entity.
	142	+	B. Upon the adoption and approval of the pro ject plan, the
	143	+	governing body shall adopt an or dinance or resolution, whichever is
	144	+	applicable, which:
87	145		1. Describes the boundaries of districts and project areas
88	146		sufficiently definite to identify with ordinary and reasonable
89	147		certainty the territory included in them;
90	148		2. Creates the district as of a d ate provided in it or defers
91	149		determination of such date, provided such date must b e no more than
92	150		ten (10) years after the date of ap proval of the project plan;
93	151		3. Assigns a name to the district for identificati on purposes.
94	152		The first district created sha ll be known as either an Incentive
95	153		District or Increment District Number One, City, Town , or County of
96	154		__________, whichever is appli cable. Each subsequently created
97	155		district shall be appropriately named and shall be assigned the next
98	156		consecutive number; a nd
99	157		4. Contains findings that:
100	158		a. the project area or district meets at least one of the
101	159		following criteria:
102	160		(1) is a reinvestment area,
103	161		(2) is a historic preservation area,
104	162		(3) is an enterprise area, or
105		-	(4) is a combination of the areas specified in
106		-	divisions (1), (2), and (3) of this subparagraph,
107		-	b. the improvement of the are a is likely to enhance the
108		-	value of other real property in the area and to
109		-	promote the general public interest. It shall not be
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111		-	SENATE FLOOR VERSION - SB1863 SFLR Page 3
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	214	+	(4) is a combination of the areas specified in
	215	+	divisions (1), (2), and (3) of this subparagraph,
	216	+	b. the improvement of the area is likely to enhance the
	217	+	value of other real property in the area and to
	218	+	promote the general public interest. It shall not be
137	219		necessary to identify the specific parcels meet ing the
138	220		criteria,
139	221		c. the guidelines specified in paragraphs 1 and 2 of
140	222		Section 852 of this title shall be followed,
141	223		d. the aggregate net assessed value of the taxable
142	224		property in all districts as determined pursuant t o
143	225		Section 862 of this title within th e city or town
144	226		shall not exceed twenty-five percent (25%) of the
145	227		total net assessed value of taxable propert y within
146	228		the city or town for ci ties or towns having a
147	229		population of fifty thousand (50,000) or more or shall
148	230		not exceed thirty-five percent (35%) o f the total net
149	231		assessed value of taxable property within the city or
150	232		town for cities or t owns having a population of less
151	233		than fifty thousand (50,000),
152	234		e. for projects approved by a county, the aggregate net
153	235		assessed value of the taxable property in all
154	236		districts as determined pursuant to Section 862 of
155	237		this title within the county shall not exceed fifteen
156		-	percent (15%) of the total net assessed value of the
157		-	taxable property within the county,
158		-	f. the aggregate net assessed value of the ta xable
159		-	property in all districts as determined pursuant to
160		-	Section 862 of this title within the city, the town,
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162		-	SENATE FLOOR VERSION - SB1863 SFLR Page 4
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	289	+	percent (15%) of the total net asses sed value of the
	290	+	taxable property within the county,
	291	+	f. the aggregate net assessed value of the taxable
	292	+	property in all districts as determined pursuant to
	293	+	Section 862 of this title within the city, the tow n,
188	294		or the county shall not exceed twenty -five percent
189	295		(25%) of the total net assessed value of any affected
190	296		school district locat ed within the city, town , or
191	297		county, and
192	298		g. the land area of this district and all other districts
193	299		within the city, the town , or the county shall no t
194	300		exceed twenty-five percent (25%) of the total land
195	301		area of the city, the town , or the county.
196	302		For districts that are wholly or partially comprised or become
197	303		comprised of industries operating under NAICS code 518210, the
198	304		provisions of subparagraphs d through g of this paragraph shall not
199	305		apply.
200	306		C. It is the intention of the Legisla ture in adopting the Local
201	307		Development Act that no long-term contractual obligation be created
202	308		by the mere adoption of an ordinance or resolution establishing an
203	309		increment district. Notwithstanding any pro vision contained in an
204	310		ordinance, resolution , or project plan, an ordinance or resolution
205	311		establishing an increment district shall constitute a legislative
206	312		act and may be repealed, modified , or amended at any time during the
207		-	term of the increment district, by sub sequent action of the
208		-	governing body except as otherwise authorized pursuant to Sect ions
209		-	854 and 863 of this t itle; provided, however, that no such ordinance
210		-	shall be repealed, modified , or amended during the time that any
211		-	bonds payable from incremental rev enues are outstanding without the
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213		-	SENATE FLOOR VERSION - SB1863 SFLR Page 5
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	364	+	term of the increment district, by subsequent action of the
	365	+	governing body except as otherwise authorized purs uant to Sections
	366	+	854 and 863 of this t itle; provided, however, that no such ordinance
	367	+	shall be repealed, modified , or amended during the time that any
	368	+	bonds payable from increme ntal revenues are outstanding without the
239	369		consent of the bondholders, if such bonds are issu ed pursuant to the
240	370		provisions of Article X, Section 35 of the Oklahoma Constitution
241	371		following its amendment by Sta te Question No. 693.
242	372		D. However, nothing in the L ocal Development Act shall restrict
243	373		the ability of:
244	374		1. Any city, town, or county to:
245	375		a. issue debt in accordance wi th the applicable
246	376		provisions of Article X of the Oklahoma Constitution,
247	377		and any statutes enacted in connection therewith, and
248	378		b. use incremental revenues derived from an increment
249	379		district to pay principal, interest , or premium
250	380		associated with such indebte dness; or
251	381		2. Any public entity, other than a city, town , or county, to:
252	382		a. issue tax apportionment bonds or notes in accordance
253	383		with Section 863 of this title or to issue other types
254	384		of revenue bonds or notes in accord ance with other
255	385		applicable provision s of Oklahoma law, and
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256	437		b. use incremental revenues derived from an increment
257	438		district to pay principal, interest , or premium
258	439		associated with such indebtedness.
259	440		SECTION 2. This act shall become effective November 1, 2024.
260		-	~~COMMITTEE REPORT BY: COMMITTEE ON FINANCE~~
261		-	~~February 26,~~ 2024 ~~- DO PASS~~
	441	+
	442	+	59-2-3102 QD 1/17/2024 11:05:41 PM