OK
Oklahoma Senate Bill SB2017

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB2017 Compare Versions

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4-An Act
5-ENROLLED SENATE
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
30+
31+STATE OF OKLAHOMA
32+
33+2nd Session of the 59th Legislature (2024)
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35+ENGROSSED SENATE
636 BILL NO. 2017 By: Rader of the Senate
737
838 and
939
1040 Sims of the House
1141
1242
1343
1444
1545 An Act relating to development incentives; amending
1646 62 O.S. 2021, Section 842, which relates to the
1747 Oklahoma Local Development and Enterprise Zone
1848 Incentive Leverage Ac t; prescribing reporting
1949 requirements; requiring the Oklahoma Department of
2050 Commerce to make certain reported information
2151 available; updating statutory reference; and
2252 providing an effective date .
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27-SUBJECT: Oklahoma Local Development and Enterprise Zone Incentive
28-Leverage Act
29-
3057 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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3258 SECTION 1. AMENDATORY 62 O.S. 2021, Section 842, is
3359 amended to read as follows:
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3560 Section 842. A. An enterprise which locates i ts facility
3661 within an enterprise zone or which expands its existing facility
3762 after the designation of an enterprise zone as authorized by law and
3863 which is located in an incentive district as authorized pursuant to
3964 the provisions of the Local Development Ac t shall be eligible for
4065 the state local ente rprise matching payment authorized pursuant to
4166 subsection A of Section 844 of this title.
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4394 B. 1. A local governmental entity which approves a project
4495 plan pursuant to the provisions of the Local Development Act within
4596 an enterprise zone or in support of a major tourism destination
4697 project which the local government al entity determines is likely to
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4998 significantly benefit contiguous or nearby enterprise zone census
5099 tracts shall be eligible for the state local govern ment matching
51100 payment authorized pursuant to subsection D of Section 844 of this
52101 title; provided, no stat e local government matching payment shall be
53102 made for project costs in relation to:
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55103 a. any gambling establishment, or
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57104 b. any development within a proje ct plan that provides
58105 for more than fifty percent (50%) of the net leasable
59106 space of such development to be used for retail
60107 purposes except for such portions of a development
61108 which includes grocery or specialty food store
62109 enterprises defined under NAICS Ma nual Industry Group
63110 No. 4451 or 4452 that pr ovide healthy nutrition
64111 options including fresh fruits, veget ables, whole
65112 grains, seeds, nuts and healthy protein and that
66113 improve access within one -half (1/2) mile of any low
67114 income and low access geographies id entified by the
68115 United States Department of Agriculture.
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70143 State local government matching payments shall n ot be used to
71144 supplant local revenue currently being expended within the increment
72145 district boundaries.
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74146 2. In order to be eligible for state local gov ernment matching
75147 payments for approving a pr oject within an enterprise zone, a local
76148 governmental entity shall provide to the Oklahoma Department of
77149 Commerce as part of the application provided for in subsection J of
78150 this section:
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80151 a. an estimate of increme ntal revenues likely to be
81152 derived from the project, and
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83153 b. certification that all projects described wit hin the
84154 related project plan will generate, in the aggregate,
85155 a minimum of either One Million Dollars
86156 ($1,000,000.00) in payroll, exclusive of payroll for
87157 construction, or Five Million Dollars ($ 5,000,000.00)
88158 in investment.
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92159 3. In order to be eligible for state local government matching
93160 payments in support of a major tourism destination project, a local
94161 governmental entity shall provide to the Oklahoma D epartment of
95162 Commerce as part of the application provided for in subsection J K
96163 of this section:
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98164 a. an estimate of incremental revenues new to the state
99165 likely to be derived from the project,
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100192
101193 b. certification that the major tourism destination meets
102194 the applicable criteria described in paragraph 12 of
103195 Section 841 of this title, and
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105196 c. an agreement to provide payment to the Oklahoma
106197 Department of Commerce to defray the costs of the
107198 study required by paragraph 4 of this subsection.
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109199 4. To determine if a proje ct qualifies as a major tourism
110200 destination project pursuant to subparagraph b of paragraph 12 of
111201 Section 841 of this title and to assist in other required
112202 determinations, the Oklahoma Department of Commerce shall cause a
113203 market and feasibility study to be conducted by an independent
114204 consultant with experience in the conduct of such studies. Upon
115205 review of the feasibility report, the Oklahoma Department of
116206 Commerce shall make its finding as to the reasonable probability
117207 that the proposed project is a major tourism destination project as
118208 provided in subparagraph b of paragraph 12 of Section 841 of this
119209 title.
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121210 C. For purposes of the Oklahoma Local Development and
122211 Enterprise Zone Incentive Leverage Act, an enterprise engaged in a
123212 retail activity, where otherw ise prohibited by the Oklahoma
124213 Enterprise Zone Act for purposes of the benefits and incentives
125214 extended pursuant to the Oklahoma Enterprise Zone Act, shall be
126215 considered an eligible enterprise for purposes of the state local
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127243 enterprise matching payment aut horized by the Oklahoma Local
128244 Development and Enterprise Zone Incentive Leverage Act.
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130245 D. The maximum amount of state local enterprise matching
131246 payments for an enterprise per fiscal year shall not exceed Two
132247 Hundred Thousand Dollars ($200,000.00).
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136248 E. Except as provided in subsection H of this secti on, for
137249 purposes of the Oklahoma Local Development and Enterp rise Zone
138250 Incentive Leverage Act, the maximum amount of aggregate investment
139251 in all qualifying facilities located in any single county which can
140252 qualify for a state local enterprise matching payment pursuant to
141253 subsection A of Section 844 of this title sha ll be computed for each
142254 county of the state by multiplying Two Hundred Dollars ($200.00)
143255 times the population of the county according to the most recen t
144256 estimate provided by the United States Bur eau of the Census prior to
145257 the date an application is made.
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147258 F. The computation required by subsection E of this section
148259 shall be the maximum amount of aggregated investment qualifying for
149260 the purposes of all ent erprises for the duration of the Oklahoma
150261 Local Development and Enterprise Zone Incentive Leverage Act.
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152262 G. The aggregate investment limit for all facilities located
153263 within a county which may qualify for the state local enterprise
154264 matching payments pursuan t to subsection A of Section 844 of this
155265 title shall:
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157293 1. Not be less than Twenty Million Dollars ($20,00 0,000.00) for
158294 counties with a population of less than one hundred thousand
159295 (100,000) persons; and
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161296 2. Not be greater than Forty Million Dollars ($40,00 0,000.00)
162297 for all other counties of the state.
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164298 H. The aggregate limit for all state local government mat ching
165299 payments made to any public entity on behalf of any local
166300 governmental entity within a single county pursuant to subsection D
167301 of Section 844 of this title for the duration of the Oklahoma L ocal
168302 Development and Enterprise Zone Incentive Leverage Act s hall be an
169303 amount equal to the net benefit rate multiplied by the taxable gross
170304 sales derived from the project over the period of apportionment of
171305 local sales taxes, as certified by the Secretary of Commerce.
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173306 I. The payments authorized by Section 844 of t his title shall
174307 be available for business and governmental entities qualifying
175308 pursuant to the Local Development Act for investments made within an
176309 incentive district or for improvements made wit hin an increment
177310 district prior to December 31, 2007, or for which an incentive
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180311 district or an increment district has been created prior to December
181312 31, 2028, if the investments or improvements are begun not late r
182313 than December 31, 2029.
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184314 J. An enterprise or entity receiving payments authorized
185315 pursuant to the provi sions of Section 844 of this title shall
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186343 annually report to the Oklahoma Department of Commerce the
187344 following:
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189345 1. All employment resulting from the pr oject or facility
190346 location or expansion, inc luding payroll amounts;
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192347 2. Capital investment amounts result ing from the project or
193348 facility location or expansion ; and
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195349 3. Changes in the assessed value of property resulting from the
196350 project or facility locati on or expansion.
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198351 The Department shall make available on the Department website
199352 the information reported p ursuant to this subsection.
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201353 K. The Oklahoma Department of Commerce shall promulgate rules
202354 for administration of the Oklahoma Local Development and Ent erprise
203355 Zone Incentive Leverage Act. Such r ules shall:
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205356 1. Include a procedure for an enterprise or loca l governmental
206357 entity to make application for state local enterprise and state
207358 local government matching payments pursuant to this section;
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209359 2. Reflect the intent that the Oklahoma Local Development and
210360 Enterprise Zone Incentive Leverage Act be fiscally ne utral to the
211361 state; and
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213362 3. Establish reporting requirements , including the requirements
214363 provided in subsection J of this section, for successful appli cants
215364 which allow data collection and analys is by the Department on
216365 employment, capital investment, chang es in assessed value of a
217366 project and other impacts resulting from payments and reporting of
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218394 such data by the Department to the Oklahoma Tax Commission for the
219395 purposes of subsection B of Section 847 of this title.
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221396 SECTION 2. This act shall become effective November 1, 2024.
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225-Passed the Senate the 4th day of March, 2024.
226-
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229- Presiding Officer of the Senate
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232-Passed the House of Representatives the 23rd day of April, 2024.
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236- Presiding Officer of the House
237- of Representatives
238-
239-OFFICE OF THE GOVERNOR
240-Received by the Office of the Governor this _______ _____________
241-day of _________________ __, 20_______, at _______ o'clock _______ M.
242-By: _________________________________
243-Approved by the Governor of the State of Oklahoma this _______ __
244-day of _________________ __, 20_______, at _______ o'clock _______ M.
245-
246- _________________________________
247- Governor of the State of Oklahoma
248-
249-
250-OFFICE OF THE SECRETARY OF STATE
251-Received by the Office of the Secretary of State this _______ ___
252-day of _________________ _, 20 _______, at _______ o'clock _______ M.
253-By: _________________________________
398+COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE, dated
399+04/11/2024 - DO PASS.