Req. No. 10536 Page 1
STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1069 By: Gann
AS INTRODUCED
An Act relating to public finance; amending 62 O.S.
2021, Sections 851, 853, and 855, which relate to the
Local Development Act; modifying definitions;
modifying references to blight; modifying procedures
for approval of certain district, plan or project;
requiring submission of question to voters of
applicable jurisdiction; requiring approval of
district, plan or project by majority vote; mo difying
provisions related to supermajority approval by
governing board; requiring separate approval by local
taxing jurisdictions; modifying provisions related to
confidential information; prohibiting members of
review committees from receiving things of value;
requiring members of review committees to complete
certain instruction; requiring annual meetings of
review committees; requiring for certain
presentations to review committees; requiring review
committees to obtain certain professional opinions;
imposing limitation based upon certain advice
provided to governing body or othe r entities;
requiring review committee to obtain certain
information; requiring economic impact statement;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 851, is
amended to read as follows: Req. No. 10536 Page 2
Section 851. The Local Development Act shall serve to implement
and execute Section 6C of Arti cle X of the Oklahoma Constitution as
approved by the voters of the State of O klahoma on November 6, 1990,
by:
1. Providing for the granting of incentives and exemptions from
taxation within certain areas, placing restrictions thereon, and
limiting the time period for the exemptions, as authorized by
subsection A thereof;
2. Providing for apportionment of an increment of local taxes
and fees, placing restrictions thereon, and limiting the time period
for the apportionment, as authorized by subsection B th ereof; and
3. Providing for the planning, financing, and carrying out of
development and redevelopment within certain areas, as authorized by
subsection C thereof.
Nothing in the Local Development Act shall be construed in a
manner contrary to or inconsis tent with the provisions of said
constitutional provision.
The Legislature hereby finds that historic preservation,
reinvestment or enterprise areas as defined under this act are
unproductive, undeveloped, or underdeveloped or blighted areas
pursuant to subsection C of Section 6 of Article X of the Oklahoma
Constitution.
SECTION 2. AMENDATORY 62 O.S. 2021, Section 853, is
amended to read as follows: Req. No. 10536 Page 3
Section 853. As used in Section 850 et seq. of this title:
1. "Apportionment" means the direction by a governing body,
authorized by the Legislature pursuant to Section 6C of Article X of
the Oklahoma Constitution, to apply all or any portion of an
increment of ad valorem taxes and all or any portion of sales taxes,
other local taxes or local fees, or any combination thereof, to
financing a plan and project in a ccordance with this act;
2. "Apportionment area" means the same as an increment district
as defined under this act;
3. "Bonds" means evidences of indebtedness, tax apportionmen t
bonds or other obligations issued by a public entity pursuant to the
provisions of Section 863 of this title to finance project costs,
pursuant to a project plan, which are to be repaid in whole or part
with apportioned increments;
4. "District" means either an incentive district as authorized
by Section 860 of this title or an i ncrement district as authorized
by Section 861 of this title. A district may consist of all or a
portion of a project area;
5. "Enterprise area" means any area within a designa ted state
or federal enterprise zone;
6. "Enterprise zone" means an enterprise zone as designated by
the Department of Commerce pursuant to the provisions of Section
690.3 of this title or as designated by the federal government; Req. No. 10536 Page 4
7. "Governing body" means the city council of a city, the board
of trustees of a town or the board of county commissioners;
8. "Historic preservation area " means a geographic area listed
in or nominated by the State Historic Preservation Officer to the
National Register of Histo ric Places, an historic structure or
structures listed individually in or nominated by the State Historic
Preservation Officer to the National Register of Historic Places,
with such area or structure being subject to historic preservation
zoning, or for purposes of ad valorem tax exemptions provided for in
subsection D of Section 86 0 of this title, a structure subject to
historic preservation zoning. Rehabilitation undertaken in an
historic preservation area shall meet the Secretary of the
Interior's Standards for Rehabilitation, latest revision, in order
to be eligible for the incentives or exemptions granted pursuant to
Section 860 of this title;
9. "Increment" means that portion of ad valorem taxes in excess
of the amount of that portion of the taxes wh ich are produced by the
levy at the rate fixed each year by or for each such a d valorem
taxing entity upon the base assessed value of the district or as to
an area later added to the district, the effective date of the
modification of the plan, or that por tion of sales taxes, other
local taxes or local fees collected each year reasonably determined
by a formula approved by the governing body to be generated by the
project, regardless of taxable location or recipient local public Req. No. 10536 Page 5
taxing entity, which may be apportioned for specific project costs
or as a specific revenue source for oth er public entities in the
area in which the project costs take place;
10. "Local taxes" means ad valorem taxes, sales taxes and other
local taxes which are levied by or on the b ehalf of a taxing entity;
11. "Planning commission" means an organization established for
local planning by local government or governments in accordance with
the laws of this state;
12. "Project" means all development activities pursuant to the
objectives of the project plan;
13. "Project area" means the geographic boundaries wi thin which
development activities will occur. The project area may be
coextensive or larger than the increment district;
14. "Project costs" means the expenditures made or esti mated to
be made and monetary obligations incurred or estimated to be
incurred which are listed in the project plan as costs of and
incidental to planning, approval and implementation of the project
plan. Any income, special assessments, or other revenues received,
or reasonably expected to be received, by the city, town or county
in connection with the implementation of the project plan may be
used to pay project costs. Project costs include, but are not
limited to:
a. capital costs, including the actual costs of the
acquisition and construction of public works, public Req. No. 10536 Page 6
improvements, new public or private buildings,
structures, and fixtures; the actual costs of the
acquisition, demolition, alteration, remodeling,
repair, or reconstruction of existing publi c or
private buildings, structures, and fixtures; and the
actual costs of the acquisition of land and equipment
for public works, public improvements and public
buildings and the actual costs of clearing and grading
of such land and environmental remediati on related
thereto,
b. financing costs, including interest paid to holders of
evidences of indebtedness or other obligations issued
to pay for project costs and premium paid over the
principal amount of the obligations because of the
redemption of the obli gations before maturity,
c. real property assembly costs, including clearance and
preparation costs,
d. professional service costs, including those incurred
for architectural, planning, engineering, legal and
financial advice and services,
e. direct administrative costs, including reasonable
charges for the time spent by employees of the city,
town or county in connection with the implementation
of a project plan or employees of private entities Req. No. 10536 Page 7
under contract with a public entity for project
planning or implementation,
f. organizational costs, including the costs of
conducting environmental impact studies or other
impact studies, the cost of publicizing the
consideration of the project plan, costs incidental to
creation of the district, and the cost of impl ementing
the project plan for the district,
g. interest, before and during construction and for two
(2) years after completion of construction, whether or
not capitalized,
h. fees for bond guarantees, letters of credit and bond
insurance,
i. the amount of any contributions offset made in
connection with the implementation of the pro ject
plan,
j. the costs for determining or redetermining the base
assessed value of a district,
k. costs of construction of public works or improvements,
including but not limite d to highways, roads, streets,
bridges, sewers, traffic control systems and devices,
telecommunications systems, parks, water distribution
and supply systems, curbing, sidewalks and any similar
public improvements, common utility or service Req. No. 10536 Page 8
facilities, landscaping, parking, and water
detention/retention systems,
l. all or a portion of another taxing jurisdiction 's
capital costs resulting from the development or
redevelopment project necessarily incurred or to be
incurred in furtherance of the objectives of the plan
and project, to the extent the governing body by
written agreement accepts and approves such costs,
m. relocation costs to the extent that a governing body
determines that relocation costs shall be paid or are
required to be paid by federal or sta te law,
n. all costs incurred in the maintenance, management,
marketing and other services provided through an
active Main Street Program recognized as such by the
Oklahoma Department of Commerce, and
o. assistance in development financing to the extent th e
governing body approves such financing;
15. "Project plan" means the approved plans of a city, town or
county which may include a designated district or districts under
this act in conformance with its comprehensive plan, which is
intended by the paymen t of costs through apportionment of the
increment or by the granting of incent ives or exemptions to reduce
or eliminate those conditions, the existence of which qualified the
district, and to thereby enhance private investment of the tax bases Req. No. 10536 Page 9
of the taxing entities which extend into the district. Project
plans may be a part of and incorporate existing neighborhood,
renewal, economic development, public school and other such plans.
Each project plan shall conform to the requirements specified by
this act;
16. "Public entity" means any city, town, county, board,
commission, authority, district, urban renewal authority or public
trust;
17. "Reinvestment area" means any area located within the
limits of a city, town or county requiring public improvements,
including but not limited to transportation -related projects
identified by any transportation authority pursuant to Section
1370.7 of Title 68 of the Oklahoma Statutes, to reverse economic
stagnation or decline, to serve as a catalyst for retaining or
expanding employment, to attract major investment in the area or to
preserve or enhance the tax base or in which fifty percent (50%) or
more of the structures in the area have an age of thirty -five (35)
years or more. Such an area is detrimental to the public health,
safety, morals or welfare. Such an area may become a blighted an
underdeveloped area because of any one or more of the following
factors: dilapidation; obsolescence; deterioration; illegal use of
individual structures; presence of structures bel ow minimum code
standards; abandonment; excessive vacancies; overcrowding of
structures and community facilities; lack of ventilation, light or Req. No. 10536 Page 10
sanitary facilities; inadequate utilities; excessive land coverage;
deleterious land use or layout; depreciation of physical
maintenance; and lack of community planning . Such an area includes
a blighted area as defined in Section 38 -101 of Title 11 of the
Oklahoma Statutes at the time of approval of the project plan ; and
18. "Taxing entity" or "taxing jurisdiction" means a city,
town, county, school district, political subdivision or other local
entity in which local taxes or fees are levied by or on its behalf.
SECTION 3. AMENDATORY 62 O.S. 2021, Section 855, is
amended to read as follows :
Section 855. A. Prior to the adoption and approval of a
project plan and the ordinance or resolution required under Section
856 of this title and prior to the public hearing required under
Section 859 of this title, the governing body shall appoint a r eview
committee to review and make a recommendation concerning the
proposed district, plan or project. The membership of the review
committee shall consist of the following: a representative of the
governing body who shall serve as chairperson; a represen tative of
the planning commission having jurisdiction over the proposed
district; a representative designated by each taxing jurisdiction
within the proposed district whose ad valorem taxes might be
impacted according to the plan; and three members represe nting the
public at large and selected by the other committee members from a
list of seven names submitted by the chairperson of the review Req. No. 10536 Page 11
committee; provided, at least one of the members representing the
public at large shall be a representative of the b usiness community
in the city, town, or county considering the proposed plan and
project, and if a proposed plan objective is development of
principally commercial retail, such representative shall be either a
retailer or a representative of a retail organ ization.
B. The review committee shall consider and make its findings
and recommendations to the governing body with respect to the
conditions establishing the eligibility of the proposed district.
The review committee recommendations shall include the a nalysis used
to project revenues over the life of the project plan, the effect on
the taxing entities and the appropriateness of the approval of the
proposed plan and project. The review committee may recommend that
the project plan be approved, denied or approved subject to
conditions set forth by the committee.
C. Prior to approval by the governing body, the review
committee shall consider and determine whether the proposed plan and
project will have a financial impact on any taxing jurisdiction and
business activities within the proposed district and shall report
its findings to the governing body. Such considerations shall be
concurrent with or subsequent to the review and consideration of the
committee provided for in subsection B of this section. T he
approval of any district plan or project by the governing body shall
address any findings of such impact by the review committee. Req. No. 10536 Page 12
D. In the event of any changes in the area to be included in
the proposed district or any substantial changes in the propo sed
plan and project or for any other reason deemed appropriate by the
governing body, the review committee shall consider and may modify
its findings and recommendations made pursuant to the provisions of
subsection B of this section.
E. Approval of the proposed district or the proposed plan or
project by the governing body which is in accord with the
recommendation of the review committee shall be by a majority vote
of the governing body. Such approval which is not in accord with
the recommendations and /or conditions set forth by the review
committee shall be by a two -thirds (2/3) majority vote voters of the
applicable jurisdiction. If the district, plan or project is
sponsored by a county, the question for creation of the district,
plan or project shal l be submitted to a vote of the eligible voters
of the county. If the distric t, plan or project is sponsored by a
city or town, the question for creation of the district, plan or
project shall be submitted to a vote of the eligible voters of the
applicable city or town. No district, plan or project shall be
created or approved unless a majority of the eligible voters voting
on such question as provided by this subsection approve the creation
of the district. Any local taxing jurisdiction that does not
separately approve the formation of an increment district shall not Req. No. 10536 Page 13
be included in the district and its tax revenues shall not be
apportioned for use by an increment district .
F. Meetings of the review committee shall be subject to the
Oklahoma Open Meeting Act. Any information relating to the
marketing plans, financial statements, trade secrets or any other
proprietary information submitted to the review committee by a
person or entity seeking adoption and approval of a proposed
district, plan or project s hall be confidential, except to the
extent that the person or entity which pro vided the information
consents to disclosure. Executive sessions may be held to discuss
such information if deemed necessary by the review committee.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 855.1 -A of Title 62, unless
there is created a duplication in numbering, reads as follows:
A. No member of a review committee shall accept anything of
value from a person, firm, partnership, limited partnership, limited
liability partnership, li mited liability company, corporation , or
other legal entity that would benefit, directly or indirectly, from
the formation of an incentive district or an increment district.
B. No member of a review committee shall accept anything of
value from any person or legal entity acting on behalf of an entity
described in subsection A of this section.
C. Before a review committee votes to recommend the creation of
an incentive district o r increment district pursuant to the Req. No. 10536 Page 14
provisions of the Local Development Act, each member of the
committee shall be required to complete at least twelve (12) hours
of instruction which includes the provisions of the Local
Development Act, applicable concep ts related to the utilization of
sales tax revenue or other locally authorized revenues, including ad
valorem tax revenue, in either an incentive district or an increment
district. The provider for the instruction shall issue a
certificate of completion t o a person who successfully completes the
course of instruction required by th is subsection.
D. A review committee shall be required to meet at least once
each calendar year.
E. Before a review committee makes a recommendation to the
applicable governing body for the creation of an incentive district
or an increment district, the review committee shall call for a
presentation in support of the decision and a presentation in
opposition to the decision.
F. Before a review committee makes a recommendation to the
applicable governing body related to the formation of an incentive
district or an increment district, the review committee shall obtain
the professional opinion of such legal and financial advisors as the
committee may select to evaluate the proposa l. No person or firm
providing advice to either the applicable governing body or to any
legal entity described in subsection A of this section shall be Req. No. 10536 Page 15
eligible to provide advice to the review committee pursuant to the
provisions of this subsection.
G. Before a review committee makes any recommendation to a
governing body related to the formation of an incentive district or
an increment district, the review committee shall be provided with
the following information related to each and every for -profit
business enterprise as described in subsection A of this section:
1. Whether the equity interest of the entity is traded publicly
and if so, the market in or upon which the equity securities are
listed for purposes of trading;
2. Whether the legal entity is formed pursuant to the laws of a
state of the United States or if not, the ju risdiction pursuant to
the laws of which the legal entity is organized or authorized to do
business;
3. The North American Industry Classification Code, with
sufficient specificity to identify the actual business activity to
be conducted, for the business enterprise, inclusive of any and all
business activity that would be conducted within the boundary of an
incentive district or an increment district;
4. Whether the legal entit y pursues or has adopted
environmental, social , or governance policies that ar e inconsistent
with profit maximization; and
5. Whether the legal entity pursues or has adopted diversity,
equity, or inclusion policies. Req. No. 10536 Page 16
H. Before a review committee makes any recommendation to a
governing body related to the formation of an incentive district or
an increment district, the review committee shall prepare or have a
qualified third party prepare an economic impact study which shall
include the effect of any apport ioned tax revenues on local taxing
jurisdictions, the economic effects likely to occur as a result of
the completion of the project and such other information as the
review committee may determine to be relevant.
SECTION 5. This act shall become effective November 1, 202 5.
60-1-10536 MAH 12/30/24