Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB575 Compare Versions

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3		-	SB575 HFLR Page 1
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	3	+	ENGR. S. B. NO. 575 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 60th Legislature (2025)
34	27
35	28		ENGROSSED SENATE
36	29		BILL NO. 575 By: Rader of the Senate
37	30
38	31		and
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40	33		Pae of the House
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45	38		An Act relating to development incentives; amending
46	39		62 O.S. 2021, Section 842, as amended by Section 1,
47	40		Chapter 183, O.S.L. 2024 (62 O.S. Supp. 2024, Section
48	41		842), which relates to the Oklahoma Local Development
49	42		and Enterprise Zone Incentive Leverage Act;
50	43		prescribing reporting requirements; requiring the
51	44		Oklahoma Department of Commerce to make certain
52	45		reported information available; updating statutory
53	46		language; and providing an effective date .
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59	52		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
60	53		SECTION 1. AMENDATORY 62 O.S. 2021, Section 842, as
61	54		amended by Section 1, Chapter 183, O.S.L. 2024 (62 O.S. Supp. 2024,
62	55		Section 842), is amended to r ead as follows:
63	56		Section 842. A. An enterprise which locates its facility
64	57		within an enterprise zone or which expands its existing facility
65	58		after the designation of an enterprise zone as authorized by law and
66	59		which is located in an incentive district as au thorized pursuant to
67	60		the provisions of the Local Development Act shall be eligible for
	61	+	the state local enterprise matching payment authorized pursuant to
	62	+	subsection A of Section 844 of this title.
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69		-	SB575 HFLR Page 2
70		-	BOLD FACE denotes Committee Amendments. 1
	64	+	ENGR. S. B. NO. 575 Page 2 1
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95		-	the state local enterprise matching payment authorized pursuant to
96		-	subsection A of Section 844 of this title.
97	89		B. 1. A local governmental entity which approves a projec t
98	90		plan pursuant to the provisions of the Local Development Act within
99	91		an enterprise zone or in support of a major tourism destination
100	92		project which the local governmental entity determines is likely to
101	93		significantly benefit contiguous or nearby enterprise zone census
102	94		tracts shall be eligible for the state local government matching
103	95		payment authorized pursuant to subsection D of Section 844 of this
104	96		title; provided, no state local government matching payment shall be
105	97		made for project costs in relation to:
106	98		a. any gambling establishment, or
107	99		b. any development within a project plan that provides
108	100		for more than fifty percent (50%) of the net leasable
109	101		space of such development to be used for retail
110	102		purposes except for such portions of a development
111	103		which includes grocery or specialty foo d store
112	104		enterprises defined under NAICS Manual Industry Group
113	105		No. 4451 or 4452 that provide healthy nutrition
114	106		options including fresh fruits, vegetables, whole
115	107		grains, seeds, nuts and healthy protein and that
116	108		improve access within one -half (1/2) mile of any low
117	109		income and low access geographies identified by the
118	110		United States Department of Agriculture.
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120		-	SB575 HFLR Page 3
121		-	BOLD FACE denotes Committee Amendments. 1
	112	+	ENGR. S. B. NO. 575 Page 3 1
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146	137		State local government matching payments shall not be used to
147	138		supplant local revenue currently being expended within the increment
148	139		district boundaries.
149	140		2. In order to be eligible for state local government matching
150	141		payments for approving a project within an enterprise zone, a local
151	142		governmental entity shall provide to the Oklahoma Department of
152	143		Commerce as part of the application provided for in subsection J of
153	144		this section:
154	145		a. an estimate of incremental revenues likely to be
155	146		derived from the project, and
156	147		b. certification that all projects described within the
157	148		related project plan will generate, in the aggregate,
158	149		a minimum of either One Mi llion Dollars
159	150		($1,000,000.00) in payroll, exclusive of payroll for
160	151		construction, or Five Million Dollars ($5,000,000.00)
161	152		in investment.
162	153		3. In order to be eligible for state local government matching
163	154		payments in support of a major tourism destination proje ct, a local
164	155		governmental entity shall provide to the Oklahoma Department of
165	156		Commerce as part of the application provided for in subsection K of
166	157		this section:
167	158		a. an estimate of incremental revenues new to the state
168	159		likely to be derived from the project,
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170		-	SB575 HFLR Page 4
171		-	BOLD FACE denotes Committee Amendments. 1
	161	+	ENGR. S. B. NO. 575 Page 4 1
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196	186		b. certification that th e major tourism destination meets
197	187		the applicable criteria described in paragraph 12 of
198	188		Section 841 of this title, and
199	189		c. an agreement to provide payment to the Oklahoma
200	190		Department of Commerce to defray the costs of the
201	191		study required by paragraph 4 of this subsection.
202	192		4. To determine if a project qualifies as a major tourism
203	193		destination project pursuant to subparagraph b of paragraph 12 of
204	194		Section 841 of this title and to assist in other required
205	195		determinations, the Oklahoma Department of Commerce shall ca use a
206	196		market and feasibility study to be conducted by an independent
207	197		consultant with experience in the conduct of such studies. Upon
208	198		review of the feasibility report, the Oklahoma Department of
209	199		Commerce shall make its finding as to th e reasonable probability
210	200		that the proposed project is a major tourism destination project as
211	201		provided in subparagraph b of paragraph 12 of Section 841 of this
212	202		title.
213	203		C. For purposes of the Oklahoma Local Development and
214	204		Enterprise Zone Incentive Leverage Act, an enterprise en gaged in a
215	205		retail activity, where otherwise prohibited by the Oklahoma
216	206		Enterprise Zone Act for purposes of the benefits and incentives
217	207		extended pursuant to the Oklahoma Enterprise Zone Act, shall be
218	208		considered an eligible enterprise fo r purposes of the state local
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220		-	SB575 HFLR Page 5
221		-	BOLD FACE denotes Committee Amendments. 1
	210	+	ENGR. S. B. NO. 575 Page 5 1
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246	235		enterprise matching payment authorized by the Oklahoma Local
247	236		Development and Enterprise Zone Incentive Leverage Act.
248	237		D. The maximum amount of state local enterprise matching
249	238		payments for an enterprise per fiscal year shall no t exceed Two
250	239		Hundred Thousand Dollars ($200,000.00).
251	240		E. Except as provided in subsection H of this section, for
252	241		purposes of the Oklahoma Local Development and Enterprise Zone
253	242		Incentive Leverage Act, the maximum amount of aggregate investment
254	243		in all qualifying facilities located in any single county which can
255	244		qualify for a state local enterprise matching payment pursuant to
256	245		subsection A of Section 844 of this title shall be computed for each
257	246		county of the state by multiplying Two Hundred Dollars ($200.00)
258	247		times the population o f the county according to the most recent
259	248		estimate provided by the United States Bureau of the Census prior to
260	249		the date an application is made.
261	250		F. The computation required by subsection E of this section
262	251		shall be the maximum amount of aggregated investment qualifying for
263	252		the purposes of all enterprises for the duration of the Oklahoma
264	253		Local Development and Enterprise Zone Incentive Leverage Act.
265	254		G. The aggregate investment limit for all facilities located
266	255		within a county which may qua lify for the state lo cal enterprise
267	256		matching payments pursuant to subsection A of Section 844 of this
268	257		title shall:
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270		-	SB575 HFLR Page 6
271		-	BOLD FACE denotes Committee Amendments. 1
	259	+	ENGR. S. B. NO. 575 Page 6 1
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296	284		1. Not be less than Twenty Million Dollars ($20,000,000.00) for
297	285		counties with a population of less than one hundred thousand
298	286		(100,000) persons; and
299	287		2. Not be greater than Forty Million Dollars ($40,000,000.00)
300	288		for all other counties of the state.
301	289		H. The aggregate limit for all state local government matching
302	290		payments made to any public entity on behalf of any local
303	291		governmental entity within a single county purs uant to subsection D
304	292		of Section 844 of this title for the duration of the Oklahoma Local
305	293		Development and Enterprise Zone Incentive Leverage Act shall be an
306	294		amount equal to the net benefit rate multiplied by the taxable gross
307	295		sales derived from the project over the period of apportionment of
308	296		local sales taxes, as certified by the Secretary of Commerce.
309	297		I. The payments authorized by Section 844 of this title shall
310	298		be available for business and governmental entities qualifying
311	299		pursuant to the Local Developmen t Act for investments made within an
312	300		incentive district or for improvements made within an increment
313	301		district prior to December 31, 2007, or for which an incentive
314	302		district or an increment district has been created prior to December
315	303		31, 2028, if the investments or improvements are begun not later
316	304		than December 31, 2029.
317	305		J. An enterprise or entity receiving payments authorized
318	306		pursuant to the provisions of Section 844 of this title shall
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320		-	SB575 HFLR Page 7
321		-	BOLD FACE denotes Committee Amendments. 1
	308	+	ENGR. S. B. NO. 575 Page 7 1
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346	333		annually report to the Oklahoma Department of Com merce the
347	334		following:
348	335		1. All employment resulting from the project or facility
349	336		location or expansion, including payroll amounts;
350	337		2. Capital investment amounts resulting from the project or
351	338		facility location or expansion; and
352	339		3. Changes in the assessed va lue of property resulting from the
353	340		project or facility location or expansion.
354	341		The enterprise or entity shall also provide consent for the
355	342		Department to furnish the reported information to the Incentive
356	343		Evaluation Commission only for evaluation purposes by the Commission
357	344		or a designee. The information furnished to the Commission shall be
358	345		disaggregated and on a per project basis. The Department shall make
359	346		available on the Department website the information reported
360	347		pursuant to this subsection.
361	348		K. The Oklahoma Department of Commerce shall promulgate rules
362	349		for administration of the Oklahoma Local Development and Enterprise
363	350		Zone Incentive Leverage Act. Such rules shall:
364	351		1. Include a procedure for an enterprise or local governmental
365	352		entity to make application for state local ente rprise and state
366	353		local government matching payments pursuant to this section;
367	354		2. Reflect the intent that the Oklahoma Local Development and
368	355		Enterprise Zone Incentive Leverage Act be fiscally neutral to the
369	356		state; and
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371		-	SB575 HFLR Page 8
372		-	BOLD FACE denotes Committee Amendments. 1
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397	383		3. Establish reporting requirements, including the requirements
398	384		provided in subsection J of this section, for successful applicants
399	385		which allow data collection and analysis by the Department on
400	386		employment, capital investment, changes in assessed value of a
401	387		project and other impacts resulting from payments and reporting of
402	388		such data by the Department to the Oklahoma Tax Commission for the
403	389		purposes of subsection B of Section 847 of this title.
404	390		SECTION 2. This act shall become effective November 1, 2025.
	391	+	Passed the Senate the 13th day of March, 2025.
405	392
406		-	COMMITTEE REPORT BY: OVERSIGHT COMMITTEE ON COMMERCE AND ECONOMIC
407		-	DEVELOPMENT, dated - 04/17/2025 – DO PASS.
	393	+
	394	+
	395	+	Presiding Officer of the Senate
	396	+
	397	+
	398	+	Passed the House of Representatives the ____ day of __________,
	399	+	2025.
	400	+
	401	+
	402	+
	403	+	Presiding Officer of the House
	404	+	of Representatives
	405	+