Oklahoma 2025 Regular Session

Oklahoma House Bill HB1069 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Req. No. 10536 Page 1
2	2	STATE OF OKLAHOMA
3	3
4	4	1st Session of the 60th Legislature (2025)
5	5
6	6	HOUSE BILL 1069 By: Gann
7	7
8	8
9	9
10	10
11	11
12	12	AS INTRODUCED
13	13
14	14	An Act relating to public finance; amending 62 O.S.
15	15	2021, Sections 851, 853, and 855, which relate to the
16	16	Local Development Act; modifying definitions;
17	17	modifying references to blight; modifying procedures
18	18	for approval of certain district, plan or project;
19	19	requiring submission of question to voters of
20	20	applicable jurisdiction; requiring approval of
21	21	district, plan or project by majority vote; mo difying
22	22	provisions related to supermajority approval by
23	23	governing board; requiring separate approval by local
24	24	taxing jurisdictions; modifying provisions related to
25	25	confidential information; prohibiting members of
26	26	review committees from receiving things of value;
27	27	requiring members of review committees to complete
28	28	certain instruction; requiring annual meetings of
29	29	review committees; requiring for certain
30	30	presentations to review committees; requiring review
31	31	committees to obtain certain professional opinions;
32	32	imposing limitation based upon certain advice
33	33	provided to governing body or othe r entities;
34	34	requiring review committee to obtain certain
35	35	information; requiring economic impact statement;
36	36	providing for codification; and providing an
37	37	effective date.
38	38
39	39
40	40
41	41
42	42	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
43	43	SECTION 1. AMENDATORY 62 O.S. 2021, Section 851, is
44	44	amended to read as follows: Req. No. 10536 Page 2
45	45	Section 851. The Local Development Act shall serve to implement
46	46	and execute Section 6C of Arti cle X of the Oklahoma Constitution as
47	47	approved by the voters of the State of O klahoma on November 6, 1990,
48	48	by:
49	49	1. Providing for the granting of incentives and exemptions from
50	50	taxation within certain areas, placing restrictions thereon, and
51	51	limiting the time period for the exemptions, as authorized by
52	52	subsection A thereof;
53	53	2. Providing for apportionment of an increment of local taxes
54	54	and fees, placing restrictions thereon, and limiting the time period
55	55	for the apportionment, as authorized by subsection B th ereof; and
56	56	3. Providing for the planning, financing, and carrying out of
57	57	development and redevelopment within certain areas, as authorized by
58	58	subsection C thereof.
59	59	Nothing in the Local Development Act shall be construed in a
60	60	manner contrary to or inconsis tent with the provisions of said
61	61	constitutional provision.
62	62	The Legislature hereby finds that historic preservation,
63	63	reinvestment or enterprise areas as defined under this act are
64	64	unproductive, undeveloped, or underdeveloped or blighted areas
65	65	pursuant to subsection C of Section 6 of Article X of the Oklahoma
66	66	Constitution.
67	67	SECTION 2. AMENDATORY 62 O.S. 2021, Section 853, is
68	68	amended to read as follows: Req. No. 10536 Page 3
69	69	Section 853. As used in Section 850 et seq. of this title:
70	70	1. "Apportionment" means the direction by a governing body,
71	71	authorized by the Legislature pursuant to Section 6C of Article X of
72	72	the Oklahoma Constitution, to apply all or any portion of an
73	73	increment of ad valorem taxes and all or any portion of sales taxes,
74	74	other local taxes or local fees, or any combination thereof, to
75	75	financing a plan and project in a ccordance with this act;
76	76	2. "Apportionment area" means the same as an increment district
77	77	as defined under this act;
78	78	3. "Bonds" means evidences of indebtedness, tax apportionmen t
79	79	bonds or other obligations issued by a public entity pursuant to the
80	80	provisions of Section 863 of this title to finance project costs,
81	81	pursuant to a project plan, which are to be repaid in whole or part
82	82	with apportioned increments;
83	83	4. "District" means either an incentive district as authorized
84	84	by Section 860 of this title or an i ncrement district as authorized
85	85	by Section 861 of this title. A district may consist of all or a
86	86	portion of a project area;
87	87	5. "Enterprise area" means any area within a designa ted state
88	88	or federal enterprise zone;
89	89	6. "Enterprise zone" means an enterprise zone as designated by
90	90	the Department of Commerce pursuant to the provisions of Section
91	91	690.3 of this title or as designated by the federal government; Req. No. 10536 Page 4
92	92	7. "Governing body" means the city council of a city, the board
93	93	of trustees of a town or the board of county commissioners;
94	94	8. "Historic preservation area " means a geographic area listed
95	95	in or nominated by the State Historic Preservation Officer to the
96	96	National Register of Histo ric Places, an historic structure or
97	97	structures listed individually in or nominated by the State Historic
98	98	Preservation Officer to the National Register of Historic Places,
99	99	with such area or structure being subject to historic preservation
100	100	zoning, or for purposes of ad valorem tax exemptions provided for in
101	101	subsection D of Section 86 0 of this title, a structure subject to
102	102	historic preservation zoning. Rehabilitation undertaken in an
103	103	historic preservation area shall meet the Secretary of the
104	104	Interior's Standards for Rehabilitation, latest revision, in order
105	105	to be eligible for the incentives or exemptions granted pursuant to
106	106	Section 860 of this title;
107	107	9. "Increment" means that portion of ad valorem taxes in excess
108	108	of the amount of that portion of the taxes wh ich are produced by the
109	109	levy at the rate fixed each year by or for each such a d valorem
110	110	taxing entity upon the base assessed value of the district or as to
111	111	an area later added to the district, the effective date of the
112	112	modification of the plan, or that por tion of sales taxes, other
113	113	local taxes or local fees collected each year reasonably determined
114	114	by a formula approved by the governing body to be generated by the
115	115	project, regardless of taxable location or recipient local public Req. No. 10536 Page 5
116	116	taxing entity, which may be apportioned for specific project costs
117	117	or as a specific revenue source for oth er public entities in the
118	118	area in which the project costs take place;
119	119	10. "Local taxes" means ad valorem taxes, sales taxes and other
120	120	local taxes which are levied by or on the b ehalf of a taxing entity;
121	121	11. "Planning commission" means an organization established for
122	122	local planning by local government or governments in accordance with
123	123	the laws of this state;
124	124	12. "Project" means all development activities pursuant to the
125	125	objectives of the project plan;
126	126	13. "Project area" means the geographic boundaries wi thin which
127	127	development activities will occur. The project area may be
128	128	coextensive or larger than the increment district;
129	129	14. "Project costs" means the expenditures made or esti mated to
130	130	be made and monetary obligations incurred or estimated to be
131	131	incurred which are listed in the project plan as costs of and
132	132	incidental to planning, approval and implementation of the project
133	133	plan. Any income, special assessments, or other revenues received,
134	134	or reasonably expected to be received, by the city, town or county
135	135	in connection with the implementation of the project plan may be
136	136	used to pay project costs. Project costs include, but are not
137	137	limited to:
138	138	a. capital costs, including the actual costs of the
139	139	acquisition and construction of public works, public Req. No. 10536 Page 6
140	140	improvements, new public or private buildings,
141	141	structures, and fixtures; the actual costs of the
142	142	acquisition, demolition, alteration, remodeling,
143	143	repair, or reconstruction of existing publi c or
144	144	private buildings, structures, and fixtures; and the
145	145	actual costs of the acquisition of land and equipment
146	146	for public works, public improvements and public
147	147	buildings and the actual costs of clearing and grading
148	148	of such land and environmental remediati on related
149	149	thereto,
150	150	b. financing costs, including interest paid to holders of
151	151	evidences of indebtedness or other obligations issued
152	152	to pay for project costs and premium paid over the
153	153	principal amount of the obligations because of the
154	154	redemption of the obli gations before maturity,
155	155	c. real property assembly costs, including clearance and
156	156	preparation costs,
157	157	d. professional service costs, including those incurred
158	158	for architectural, planning, engineering, legal and
159	159	financial advice and services,
160	160	e. direct administrative costs, including reasonable
161	161	charges for the time spent by employees of the city,
162	162	town or county in connection with the implementation
163	163	of a project plan or employees of private entities Req. No. 10536 Page 7
164	164	under contract with a public entity for project
165	165	planning or implementation,
166	166	f. organizational costs, including the costs of
167	167	conducting environmental impact studies or other
168	168	impact studies, the cost of publicizing the
169	169	consideration of the project plan, costs incidental to
170	170	creation of the district, and the cost of impl ementing
171	171	the project plan for the district,
172	172	g. interest, before and during construction and for two
173	173	(2) years after completion of construction, whether or
174	174	not capitalized,
175	175	h. fees for bond guarantees, letters of credit and bond
176	176	insurance,
177	177	i. the amount of any contributions offset made in
178	178	connection with the implementation of the pro ject
179	179	plan,
180	180	j. the costs for determining or redetermining the base
181	181	assessed value of a district,
182	182	k. costs of construction of public works or improvements,
183	183	including but not limite d to highways, roads, streets,
184	184	bridges, sewers, traffic control systems and devices,
185	185	telecommunications systems, parks, water distribution
186	186	and supply systems, curbing, sidewalks and any similar
187	187	public improvements, common utility or service Req. No. 10536 Page 8
188	188	facilities, landscaping, parking, and water
189	189	detention/retention systems,
190	190	l. all or a portion of another taxing jurisdiction 's
191	191	capital costs resulting from the development or
192	192	redevelopment project necessarily incurred or to be
193	193	incurred in furtherance of the objectives of the plan
194	194	and project, to the extent the governing body by
195	195	written agreement accepts and approves such costs,
196	196	m. relocation costs to the extent that a governing body
197	197	determines that relocation costs shall be paid or are
198	198	required to be paid by federal or sta te law,
199	199	n. all costs incurred in the maintenance, management,
200	200	marketing and other services provided through an
201	201	active Main Street Program recognized as such by the
202	202	Oklahoma Department of Commerce, and
203	203	o. assistance in development financing to the extent th e
204	204	governing body approves such financing;
205	205	15. "Project plan" means the approved plans of a city, town or
206	206	county which may include a designated district or districts under
207	207	this act in conformance with its comprehensive plan, which is
208	208	intended by the paymen t of costs through apportionment of the
209	209	increment or by the granting of incent ives or exemptions to reduce
210	210	or eliminate those conditions, the existence of which qualified the
211	211	district, and to thereby enhance private investment of the tax bases Req. No. 10536 Page 9
212	212	of the taxing entities which extend into the district. Project
213	213	plans may be a part of and incorporate existing neighborhood,
214	214	renewal, economic development, public school and other such plans.
215	215	Each project plan shall conform to the requirements specified by
216	216	this act;
217	217	16. "Public entity" means any city, town, county, board,
218	218	commission, authority, district, urban renewal authority or public
219	219	trust;
220	220	17. "Reinvestment area" means any area located within the
221	221	limits of a city, town or county requiring public improvements,
222	222	including but not limited to transportation -related projects
223	223	identified by any transportation authority pursuant to Section
224	224	1370.7 of Title 68 of the Oklahoma Statutes, to reverse economic
225	225	stagnation or decline, to serve as a catalyst for retaining or
226	226	expanding employment, to attract major investment in the area or to
227	227	preserve or enhance the tax base or in which fifty percent (50%) or
228	228	more of the structures in the area have an age of thirty -five (35)
229	229	years or more. Such an area is detrimental to the public health,
230	230	safety, morals or welfare. Such an area may become a blighted an
231	231	underdeveloped area because of any one or more of the following
232	232	factors: dilapidation; obsolescence; deterioration; illegal use of
233	233	individual structures; presence of structures bel ow minimum code
234	234	standards; abandonment; excessive vacancies; overcrowding of
235	235	structures and community facilities; lack of ventilation, light or Req. No. 10536 Page 10
236	236	sanitary facilities; inadequate utilities; excessive land coverage;
237	237	deleterious land use or layout; depreciation of physical
238	238	maintenance; and lack of community planning . Such an area includes
239	239	a blighted area as defined in Section 38 -101 of Title 11 of the
240	240	Oklahoma Statutes at the time of approval of the project plan ; and
241	241	18. "Taxing entity" or "taxing jurisdiction" means a city,
242	242	town, county, school district, political subdivision or other local
243	243	entity in which local taxes or fees are levied by or on its behalf.
244	244	SECTION 3. AMENDATORY 62 O.S. 2021, Section 855, is
245	245	amended to read as follows :
246	246	Section 855. A. Prior to the adoption and approval of a
247	247	project plan and the ordinance or resolution required under Section
248	248	856 of this title and prior to the public hearing required under
249	249	Section 859 of this title, the governing body shall appoint a r eview
250	250	committee to review and make a recommendation concerning the
251	251	proposed district, plan or project. The membership of the review
252	252	committee shall consist of the following: a representative of the
253	253	governing body who shall serve as chairperson; a represen tative of
254	254	the planning commission having jurisdiction over the proposed
255	255	district; a representative designated by each taxing jurisdiction
256	256	within the proposed district whose ad valorem taxes might be
257	257	impacted according to the plan; and three members represe nting the
258	258	public at large and selected by the other committee members from a
259	259	list of seven names submitted by the chairperson of the review Req. No. 10536 Page 11
260	260	committee; provided, at least one of the members representing the
261	261	public at large shall be a representative of the b usiness community
262	262	in the city, town, or county considering the proposed plan and
263	263	project, and if a proposed plan objective is development of
264	264	principally commercial retail, such representative shall be either a
265	265	retailer or a representative of a retail organ ization.
266	266	B. The review committee shall consider and make its findings
267	267	and recommendations to the governing body with respect to the
268	268	conditions establishing the eligibility of the proposed district.
269	269	The review committee recommendations shall include the a nalysis used
270	270	to project revenues over the life of the project plan, the effect on
271	271	the taxing entities and the appropriateness of the approval of the
272	272	proposed plan and project. The review committee may recommend that
273	273	the project plan be approved, denied or approved subject to
274	274	conditions set forth by the committee.
275	275	C. Prior to approval by the governing body, the review
276	276	committee shall consider and determine whether the proposed plan and
277	277	project will have a financial impact on any taxing jurisdiction and
278	278	business activities within the proposed district and shall report
279	279	its findings to the governing body. Such considerations shall be
280	280	concurrent with or subsequent to the review and consideration of the
281	281	committee provided for in subsection B of this section. T he
282	282	approval of any district plan or project by the governing body shall
283	283	address any findings of such impact by the review committee. Req. No. 10536 Page 12
284	284	D. In the event of any changes in the area to be included in
285	285	the proposed district or any substantial changes in the propo sed
286	286	plan and project or for any other reason deemed appropriate by the
287	287	governing body, the review committee shall consider and may modify
288	288	its findings and recommendations made pursuant to the provisions of
289	289	subsection B of this section.
290	290	E. Approval of the proposed district or the proposed plan or
291	291	project by the governing body which is in accord with the
292	292	recommendation of the review committee shall be by a majority vote
293	293	of the governing body. Such approval which is not in accord with
294	294	the recommendations and /or conditions set forth by the review
295	295	committee shall be by a two -thirds (2/3) majority vote voters of the
296	296	applicable jurisdiction. If the district, plan or project is
297	297	sponsored by a county, the question for creation of the district,
298	298	plan or project shal l be submitted to a vote of the eligible voters
299	299	of the county. If the distric t, plan or project is sponsored by a
300	300	city or town, the question for creation of the district, plan or
301	301	project shall be submitted to a vote of the eligible voters of the
302	302	applicable city or town. No district, plan or project shall be
303	303	created or approved unless a majority of the eligible voters voting
304	304	on such question as provided by this subsection approve the creation
305	305	of the district. Any local taxing jurisdiction that does not
306	306	separately approve the formation of an increment district shall not Req. No. 10536 Page 13
307	307	be included in the district and its tax revenues shall not be
308	308	apportioned for use by an increment district .
309	309	F. Meetings of the review committee shall be subject to the
310	310	Oklahoma Open Meeting Act. Any information relating to the
311	311	marketing plans, financial statements, trade secrets or any other
312	312	proprietary information submitted to the review committee by a
313	313	person or entity seeking adoption and approval of a proposed
314	314	district, plan or project s hall be confidential, except to the
315	315	extent that the person or entity which pro vided the information
316	316	consents to disclosure. Executive sessions may be held to discuss
317	317	such information if deemed necessary by the review committee.
318	318	SECTION 4. NEW LAW A new section of law to be codified
319	319	in the Oklahoma Statutes as Section 855.1 -A of Title 62, unless
320	320	there is created a duplication in numbering, reads as follows:
321	321	A. No member of a review committee shall accept anything of
322	322	value from a person, firm, partnership, limited partnership, limited
323	323	liability partnership, li mited liability company, corporation , or
324	324	other legal entity that would benefit, directly or indirectly, from
325	325	the formation of an incentive district or an increment district.
326	326	B. No member of a review committee shall accept anything of
327	327	value from any person or legal entity acting on behalf of an entity
328	328	described in subsection A of this section.
329	329	C. Before a review committee votes to recommend the creation of
330	330	an incentive district o r increment district pursuant to the Req. No. 10536 Page 14
331	331	provisions of the Local Development Act, each member of the
332	332	committee shall be required to complete at least twelve (12) hours
333	333	of instruction which includes the provisions of the Local
334	334	Development Act, applicable concep ts related to the utilization of
335	335	sales tax revenue or other locally authorized revenues, including ad
336	336	valorem tax revenue, in either an incentive district or an increment
337	337	district. The provider for the instruction shall issue a
338	338	certificate of completion t o a person who successfully completes the
339	339	course of instruction required by th is subsection.
340	340	D. A review committee shall be required to meet at least once
341	341	each calendar year.
342	342	E. Before a review committee makes a recommendation to the
343	343	applicable governing body for the creation of an incentive district
344	344	or an increment district, the review committee shall call for a
345	345	presentation in support of the decision and a presentation in
346	346	opposition to the decision.
347	347	F. Before a review committee makes a recommendation to the
348	348	applicable governing body related to the formation of an incentive
349	349	district or an increment district, the review committee shall obtain
350	350	the professional opinion of such legal and financial advisors as the
351	351	committee may select to evaluate the proposa l. No person or firm
352	352	providing advice to either the applicable governing body or to any
353	353	legal entity described in subsection A of this section shall be Req. No. 10536 Page 15
354	354	eligible to provide advice to the review committee pursuant to the
355	355	provisions of this subsection.
356	356	G. Before a review committee makes any recommendation to a
357	357	governing body related to the formation of an incentive district or
358	358	an increment district, the review committee shall be provided with
359	359	the following information related to each and every for -profit
360	360	business enterprise as described in subsection A of this section:
361	361	1. Whether the equity interest of the entity is traded publicly
362	362	and if so, the market in or upon which the equity securities are
363	363	listed for purposes of trading;
364	364	2. Whether the legal entity is formed pursuant to the laws of a
365	365	state of the United States or if not, the ju risdiction pursuant to
366	366	the laws of which the legal entity is organized or authorized to do
367	367	business;
368	368	3. The North American Industry Classification Code, with
369	369	sufficient specificity to identify the actual business activity to
370	370	be conducted, for the business enterprise, inclusive of any and all
371	371	business activity that would be conducted within the boundary of an
372	372	incentive district or an increment district;
373	373	4. Whether the legal entit y pursues or has adopted
374	374	environmental, social , or governance policies that ar e inconsistent
375	375	with profit maximization; and
376	376	5. Whether the legal entity pursues or has adopted diversity,
377	377	equity, or inclusion policies. Req. No. 10536 Page 16
378	378	H. Before a review committee makes any recommendation to a
379	379	governing body related to the formation of an incentive district or
380	380	an increment district, the review committee shall prepare or have a
381	381	qualified third party prepare an economic impact study which shall
382	382	include the effect of any apport ioned tax revenues on local taxing
383	383	jurisdictions, the economic effects likely to occur as a result of
384	384	the completion of the project and such other information as the
385	385	review committee may determine to be relevant.
386	386	SECTION 5. This act shall become effective November 1, 202 5.
387	387
388	388	60-1-10536 MAH 12/30/24