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SENATE FLOOR VERSION
February 12, 2024
SENATE BILL NO. 2017 By: Rader of the Senate
and
Sims of the House
An Act relating to development incentives; amending
62 O.S. 2021, Section 842, which relates to the
Oklahoma Local Devel opment and Enterprise Zone
Incentive Leverage Act; prescribing reporting
requirements; requiring the Oklahoma Department of
Commerce to make certain reported information
available; updating statutory reference; and
providing an effective date.
BE IT ENACTED BY THE PEO PLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 842, is
amended to read as follows:
Section 842. A. An enterprise which locates its facility
within an enterprise zone or which expands its existing facil ity
after the designation of an enterprise zone as authorized by law and
which is located in an incentive district as authorized pursuant to
the provisions of the Local Development Act shall be eligible for
the state local enterprise matching payment autho rized pursuant to
subsection A of Section 844 of this title.
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B. 1. A local governmental entity which approves a project
plan pursuant to the provisions of the Local Development Act within
an enterprise zone or in support of a major tourism destination
project which the local governmental entity determines is likely to
significantly benefit contiguous or nearby enterprise zone census
tracts shall be eligible for the state local government matching
payment authorized pursuant t o subsection D of Section 844 of this
title; provided, no state local government matching p ayment shall be
made for project costs in relation to:
a. any gambling establishment, or
b. any development within a project plan that provides
for more than fifty percent (50%) of the net leasab le
space of such development to be used for retail
purposes except for such portions of a development
which includes grocery or specialty food store
enterprises defined under NAICS Manual Industry Group
No. 4451 or 4452 that p rovide healthy nutrition
options including fresh fruits, vegetables, whole
grains, seeds, nuts and healthy protein and that
improve access within one-half (1/2) mile of any low
income and low access geographies identified by the
United States Department of Agriculture.
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State local government matching payments shall not be used to
supplant local revenue currently being expended within the increment
district boundaries.
2. In order to be eligible for state local government matching
payments for approving a p roject within an enterprise zo ne, a local
governmental entity shall provide to the Oklahoma Department of
Commerce as part of the app lication provided for in subsecti on J of
this section:
a. an estimate of incremental revenues likely to be
derived from the project, and
b. certification that all projects described within the
related project plan will generate, in the aggregate,
a minimum of either One Million Dollars
($1,000,000.00) in payroll, exclusive of payroll for
construction, or Five Million Dollars ( $5,000,000.00)
in investment.
3. In order to be eligible for state local government matchi ng
payments in support of a major tourism destination project, a local
governmental entity shall provide to the Oklahoma Department of
Commerce as part of the application provided for in subsecti on J K
of this section:
a. an estimate of incremental revenues new to the state
likely to be derived from the project,
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b. certification that the major tourism destination meets
the applicable criteria described in paragraph 12 of
Section 841 of this title, and
c. an agreement to provide payment to the Oklahoma
Department of Commerce to defray the costs of the
study required by paragraph 4 of this subsection.
4. To determine if a project qualifies as a major tourism
destination project pursuant to subparagr aph b of paragraph 12 of
Section 841 of this title and to assist in other required
determinations, the Oklahoma Department of Commerce shall cause a
market and feasibility study to be conducted by an independent
consultant with experience in the conduct of such studies. Upon
review of the feasibility report, the Okla homa Department of
Commerce shall make its finding as to the reasonable pro bability
that the proposed project is a major tourism destination project as
provided in subparagraph b of paragraph 1 2 of Section 841 of this
title.
C. For purposes of the Oklahoma Local Development and
Enterprise Zone Incentive Leverage Act, an enterprise engaged in a
retail activity, where otherwise prohibited by the Oklahoma
Enterprise Zone Act for purposes of the be nefits and incentives
extended pursuant to the Oklahoma Enterpr ise Zone Act, shall be
considered an eligible enterprise for purposes of th e state local
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enterprise matching payment authorized by the Oklahoma Local
Development and Enterprise Zone Incentive L everage Act.
D. The maximum amount of state local enterprise matching
payments for an enterprise per fiscal year shall not exceed Two
Hundred Thousand Dollars ($200,000.00).
E. Except as provided in subsection H of this secti on, for
purposes of the Oklah oma Local Development and Enterprise Zone
Incentive Leverage Ac t, the maximum amount of aggregate investm ent
in all qualifying facilities located in any single county which can
qualify for a state local enterprise matching payment pursuant to
subsection A of Section 844 of this title shall be computed for each
county of the state by multiplying Two Hundred Dollars ($200.00)
times the population of the county according to the most recent
estimate provided by the United States Bur eau of the Census prior to
the date an application is made.
F. The computation required by subsection E of this section
shall be the maximum amount of aggregated inve stment qualifying for
the purposes of all enterprises for the duration of the Oklahoma
Local Development and Enterpris e Zone Incentive Leverage Act.
G. The aggregate investment limit for all facilities located
within a county which may qualify for the state local enterprise
matching payments pursuant to subsection A of Section 844 of this
title shall:
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1. Not be less than Twenty Million Dollars ($20,000,000.00) for
counties with a population of less than one hundred thousan d
(100,000) persons; and
2. Not be greater than Forty Million Dollars ($40,000,000.00)
for all other counties of the state.
H. The aggregate limit fo r all state local government matching
payments made to any public entity on behalf of any local
governmental entity within a single county pursuant to subsection D
of Section 844 of this title for the duration of the Oklahoma L ocal
Development and Enterpri se Zone Incentive Leverage Act shall be an
amount equal to the net benefit rate multiplied by the taxable gross
sales derived from the pro ject over the period of apportionment of
local sales taxes, as certified by the Secretary of Commerce.
I. The payments authorized by Section 844 of this title shall
be available for business and governmental entities qualifying
pursuant to the Local Development Act for investments made within an
incentive district or for improvements made wit hin an increment
district prior to December 31, 2007, or for which an incentive
district or an increment district has been created pri or to December
31, 2028, if the investments or improvements are begun not later
than December 31, 2029.
J. An enterprise or entity receiving paymen ts authorized
pursuant to the provisions of Section 844 of this title shal l
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annually report to the Oklahoma Department of Commerce the
following:
1. All employment resulting from the project or facility
location or expansion, including payroll amounts;
2. Capital investment amounts resulting from the project or
facility location or expansion ; and
3. Changes in the a ssessed value of property resulting from the
project or facility location or expansion.
The Department shall make availab le on the Department website
the information reported pursuant to this subsection .
K. The Oklahoma Department of Commerce shall promulgate rules
for administration of the Oklahoma Local Development and Enterprise
Zone Incentive Leverage Act. Such r ules shall:
1. Include a procedure for an enterprise or local governmental
entity to make application for state local enterprise and state
local government matching payments pursuant to this section;
2. Reflect the intent that the Oklahoma Local Development and
Enterprise Zone Incen tive Leverage Act be fiscally neutral to the
state; and
3. Establish reporting requirements , including the requirements
provided in subsection J of this section, for successful applicants
which allow data collection and analys is by the Department on
employment, capital investment, changes in assessed value of a
project and other impacts resulting from payments and reporting of
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such data by the Department to the Oklahoma Tax Commission for the
purposes of subsection B of Section 847 of this title.
SECTION 2. This act shall become effective November 1, 2024.
COMMITTEE REPORT BY: COMMITTEE ON FINANCE
February 12, 2024 - DO PASS